Fifth Third Bank 2013 Annual Report Download - page 15

2013 ANNUAL REPORT
FINANCIAL CONTENTS
Glossary of Abbreviations and Acronyms 14
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Selected Financial Data 15
Overview 16
Non-GAAP Financial Measures 21
Recent Accounting Standards 23
Critical Accounting Policies 23
Risk Factors 27
Statements of Income Analysis 36
Business Segment Review 43
Fourth Quarter Review 50
Balance Sheet Analysis 53
Risk Management 58
Off-Balance Sheet Arrangements 84
Contractual Obligations and Other Commitments 85
Management’s Assessment as to the Effectiveness of Internal Control over Financial Reporting 86
Reports of Independent Registered Public Accounting Firm 87
Financial Statements
Consolidated Balance Sheets 88
Consolidated Statements of Income 89
Consolidated Statements of Comprehensive Income 90
Consolidated Statements of Changes in Equity 91
Consolidated Statements of Cash Flows 92
Notes to Consolidated Financial Statements
Summary of Significant Accounting and Reporting Policies 93 Commitments, Contingent Liabilities and Guarantees 131
Supplemental Cash Flow Information 101 Legal and Regulatory Proceedings 135
Restrictions on Cash and Dividends 101 Related Party Transactions 137
Securities 102 Income Taxes 138
Loans and Leases 104 Retirement and Benefit Plans 139
Credit Quality and the Allowance for Loan and Lease Losses 105 Accumulated Other Comprehensive Income 145
Bank Premises and Equipment 115 Common, Preferred and Treasury Stock 147
Goodwill 115 Stock-Based Compensation 149
Intangible Assets 116 Other Noninterest Income and Other Noninterest Expense 153
Variable Interest Entities 117 Earnings Per Share 154
Sales of Receivables and Servicing Rights 120 Fair Value Measurements 155
Derivative Financial Instruments 122 Certain Regulatory Requirements and Capital Ratios 165
Offsetting Derivative Financial Instruments 127 Parent Company Financial Statements 166
Other Assets 127 Business Segments 168
Short-Term Borrowings 128 Subsequent Events 171
Long-Term Debt 129
Annual Report on Form 10-K 172
Consolidated Ten Year Comparison 187
Directors and Officers 188
Corporate Information
FORWARD-LOOKING STATEMENTS
This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section
21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or
business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “estimate,” “forecast,” “projected,” “intends to,” or may include
other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,”
“can,” or similar verbs. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat
these statements as speaking only as of the date they are made and based only on information then actually known to us. There are a number of important factors that could cause future results to differ materially
from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy,
specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) deteriorating
credit quality; (3) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest
margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Third’s ability to maintain required capital levels and adequate sources of funding and liquidity; (7)
maintaining capital requirements may limit Fifth Third’s operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely
affect the banking industry and/or Fifth Third; (10) competitive pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting
policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect
Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged, including the Dodd-
Frank Wall Street Reform and Consumer Protection Act; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Third’s stock price; (16) ability to attract and retain key personnel; (17)
ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders’ ownership of Fifth Third; (19) effects of accounting or financial results of one or more
acquired entities; (20) difficulties from Fifth Third’s investment in or the results of operations of Vantiv, LLC; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on
Fifth Third’s earnings and future growth; (22) ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; and (23) the impact
of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.