Fifth Third Bank 2012 Annual Report Download - page 57

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
55 Fifth Third Bancorp
TABLE 26: BORROWINGS
A
s of December 31 ($ in millions) 2012 2011 2010 2009 2008
Federal funds purchased $ 901 346 279 182 287
Other short-term borrowings 6,280 3,239 1,574 1,415 9,959
Long-term debt 7,085 9,682 9,558 10,507 13,585
Total borrowings $ 14,266 13,267 11,411 12,104 23,831
Federal funds purchased increased by $555 million, or 160%, from
December 31, 2011 driven by an increase in 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 increased $3.0 billion, or 94%, from
December 31, 2011 driven by an increase of $3.2 billion in short-
term FHLB borrowings offset by a decrease of $132 million in
securities sold under repurchase agreements which are accounted
for as collateralized financing transactions. The level of these
borrowings can fluctuate significantly from period to period
depending on funding needs and which sources are used to satisfy
those needs. Long-term debt decreased $2.6 billion, or 27%, from
December 31, 2011 driven by the redemption of $1.4 billion of
TruPS during the third quarter of 2012 and the extinguishment of
$1.0 billion of long-term FHLB advances during the fourth quarter
of 2012.
TABLE 27: AVERAGE BORROWINGS
A
s of December 31 ($ in millions) 2012 2011 2010 2009 2008
Federal funds purchased $ 560 345 291 517 2,975
Other short-term borrowings 4,246 2,777 1,635 6,463 7,785
Long-term debt 9,043 10,154 10,902 11,035 13,903
Total average borrowings $ 13,849 13,276 12,828 18,015 24,663
Average total borrowings increased $573 million, or four percent,
compared to December 31, 2011, primarily due to an increase in
average federal funds purchased and other short-term borrowings,
partially offset by a decrease in average long-term debt. Average
federal funds purchased increased $215 million, or 62%, primarily
due to an increase in excess balances in reserve accounts held at
Federal Reserve Banks that the Bancorp purchased from other
member banks on an overnight basis. Average other short-term
borrowings increased $1.5 billion, or 53%, primarily due to the
previously mentioned increase in short-term FHLB borrowings.
Average long-term debt decreased $1.1 billion, or 11%, primarily
due to the previously mentioned extinguishment of $1.0 billion in
long-term FHLB borrowings and the redemption of $1.4 billion of
certain TruPS during the year ended December 31, 2012.
Information on the average rates paid on borrowings is
discussed in the net interest income section of the MD&A. In
addition, refer to the Liquidity Risk Management section for a
discussion on the role of borrowings in the Bancorp’s liquidity
management.