Fifth Third Bank 2011 Annual Report Download - page 116

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
114 Fifth Third Bancorp
CDC, a wholly owned subsidiary of the Bancorp, was created
to invest in projects to create affordable housing, revitalize business
and residential areas, and preserve historic landmarks, which are
included above in partnership investments. The Bancorp has
determined that these entities are VIEs and the Bancorp’s
investments represent variable interests. See Note 11 for further
information.
A bankers’ acceptance is created when a time draft is drawn on
and accepted by a bank. By accepting the draft, the bank assumes
the credit risk of the underlying obligor, usually the buyer or the
seller of goods or their bank, and makes an unconditional promise
to pay the holder of the draft the amount of the draft at maturity,
which is generally less than one year from the date of the draft.
When the Bancorp is the accepting bank, it records the full amount
of the acceptance in both other assets and other liabilities on the
Consolidated Balance Sheets.
On June 30, 2009, the Bancorp sold an approximate 51%
interest in Vantiv Holding, LLC (formerly FTPS) to Advent
International. The Bancorp’s remaining approximate 49%
ownership in Vantiv Holding, LLC is accounted for under the
equity method of accounting.
OREO represents property acquired through foreclosure or
other proceedings and is carried at the lower of cost or fair value,
less costs to sell. See Note 1 for further information.
15. SHORT-TERM BORROWINGS
Borrowings with original maturities of one year or less are classified
as short term, and include federal funds purchased and other short-
term borrowings. Federal funds purchased are excess balances in
reserve accounts held at Federal Reserve Banks that the Bancorp
purchased from other member banks on an overnight basis. Other
short-term borrowings include securities sold under repurchase
agreements, derivative collateral, FHLB advances and other
borrowings with original maturities of one year or less.
A summary of short-term borrowings and weighted-average
rates follows:
2011 2010
($ in millions) Amount Rate Amount Rate
A
s of December 31:
Federal funds purchased $346 0.04% $279 0.18%
Other short-term borrowings 3,239 0.09 1,574 0.14
A
verage for the years ended December 31:
Federal funds purchased $345 0.11% $291 0.17%
Other short-term borrowings 2,777 0.12 1,635 0.21
Maximum month-end balance for the years ended December 31:
Federal funds purchased $451 $422
Other short-term borrowings 4,894 1,975