Fifth Third Bank 2012 Annual Report Download - page 56

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
54 Fifth Third Bancorp
deposits increased $1.9 billion, or 38%, due to account migration
from savings deposits which decreased $1.9 billion, or nine percent,
from December 31, 2011. Other time deposits decreased primarily
as a result of continued run-off of certificates of deposits due to the
low interest rate environment, as customers have opted to maintain
balances in more liquid transaction accounts.
Included in core deposits are foreign office deposits, which are
primarily Eurodollar sweep accounts from the Bancorp’s
commercial customers. These accounts bear interest rates at slightly
higher than money market accounts and unlike repurchase
agreements the Bancorp does not have to pledge collateral.
The Bancorp uses certificates of deposit $100,000 and over, as
a method to fund earning asset growth. At December 31, 2012,
certificates $100,000 and over increased $245 million, or eight
percent, compared to December 31, 2011 due to the diversification
of funding sources through the issuance of retail and institutional
certificates of deposits in the fourth quarter of 2012.
The following table presents average deposits for the twelve months ending December 31:
TABLE 23: AVERAGE DEPOSITS
A
s of December 31 ($ in millions) 2012 2011 2010 2009 2008
Demand $ 27,196 23,389 19,669 16,862 14,017
Interest checking 23,096 18,707 18,218 15,070 14,191
Savings 21,393 21,652 19,612 16,875 16,192
Money market 4,903 5,154 4,808 4,320 6,127
Foreign office 1,528 3,490 3,355 2,108 2,153
Transaction deposits 78,116 72,392 65,662 55,235 52,680
Other time 4,306 6,260 10,526 14,103 11,135
Core deposits 82,422 78,652 76,188 69,338 63,815
Certificates - $100,000 and over 3,102 3,656 6,083 10,367 9,531
Other 27 7 6 157 2,067
Total average deposits $ 85,551 82,315 82,277 79,862 75,413
On an average basis, core deposits increased $3.8 billion, or five
percent, compared to December 31, 2011 due to an increase of $5.7
billion, or eight percent, in average transaction deposits partially
offset by a decrease of $2.0 billion, or 31%, in average other time
deposits. The increase in average transaction deposits was driven by
an increase in average demand deposits and average interest
checking deposits, partially offset by a decrease in average foreign
office deposits due to the reasons discussed in the end of period
section. The decrease in average other time deposits was due to the
reasons discussed in the end of period discussion.
On an end of period basis, other time deposits and certificates $100,000 and over totaled $7.3 billion and $7.7 billion at December 31, 2012 and
2011, respectively. All of these deposits were interest-bearing.
The contractual maturities of certificates $100,000 and over as of December 31, 2012 are summarized in the following table:
TABLE 24: CONTRACTUAL MATURITIES OF CERTIFICATES $100,000 AND OVER
A
s of December 31 ($ in millions) 2012
Three months or less $ 1,444
A
fter three months through six months 230
A
fter six months through 12 months 639
A
fter 12 months 971
Total $ 3,284
The contractual maturities of other time deposits and certificates $100,000 and over as of December 31, 2012 are summarized in the following
table:
TABLE 25: CONTRACTUAL MATURITIES OF OTHER TIME DEPOSITS AND CERTIFICATES $100,000 AND OVER
A
s of December 31 ($ in millions) 2012
Next 12 months $ 4,834
13-24 months 1,464
25-36 months 565
37-48 months 231
49-60 months 152
A
fter 60 months 53
Total $ 7,299
Borrowings
Total borrowings increased $1.0 billion, or eight percent, from
December 31, 2011 due to an increase in other short-term
borrowings and federal funds purchased, partially offset by a
decrease in long-term debt. Total borrowings as a percentage of
interest-bearing liabilities were 19% at both December 31, 2012 and
2011.