Fifth Third Bank 2013 Annual Report Download - page 153

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
151 Fifth Third Bancorp
2013 2012 2011
Weighted- Weighted- Weighted-
Average Average Average
Grant -Date Grant -Date Grant -Date
RSAs (shares in thousands) Shares Fair Value Shares Fair Value Shares Fair Value
Nonvested at January 1 6,379 $14.32 4,764 $15.95 5,158 $18.89
Granted 3,583 16.21 3,863 14.33 1,702 13.19
Exercised (2,720) 14.71 (1,826) 18.37 (1,646) 22.52
Forfeited (532) 14.97 (422) 15.35 (450) 15.34
Nonvested at December 31 6,710 $15.11 6,379 $14.32 4,764 $ 15.95
The following table summarizes unvested RSAs by grant-date fair value at December 31, 2013:
Nonvested RSAs
Weighted-Average
Number of Remaining
RSAs at Year End Contractual Life
Grant-Date Fair Value Per Share (000s) (in years)
$5.01-$10.00 62 1.7
$10.01-$15.00 3,363 1.1
$15.01-$20.00 3,285 1.8
A
ll RSAs 6,710 1.4
Stock options
The grant-date fair value of stock options is measured using the
Black-Scholes option-pricing model. There were no stock options
granted during 2013, 2012 and 2011.
The total intrinsic value of options exercised was $1 million in
2013 and 2012 and was immaterial to the Bancorp’s Consolidated
Financial Statements in 2011. Cash received from options exercised
was $2 million in 2013 and 2012 and $1 million in 2011. The tax
benefit realized from exercised options was immaterial to the
Bancorp’s Consolidated Financial Statements during 2013, 2012,
and 2011. All stock options were vested as of December 31, 2008,
therefore, no stock options vested during 2013, 2012, or 2011. As of
December 31, 2013, the aggregate intrinsic value of both
outstanding options and exercisable options was $3 million.
2013 2012 2011
Weighted- Weighted- Weighted-
Number of Average Number of Average Number of Average
Stock Options (Number of Options in thousands) Options Exercise Price Options Exercise Price Options Grant Price
Outstanding at January 1 3,877 $45.00 7,584 $53.88 11,859 $52.01
Exercised (190) 11.88 (205) 10.32 (96) 9.25
Forfeited or expired (3,141) 51.23 (3,502) 66.25 (4,179) 49.61
Outstanding at December 31 546 $20.72 3,877 $45.00 7,584 $53.88
Exercisable at December 31 546 $20.72 3,877 $45.00 7,584 $53.88
The following table summarizes outstanding and exercisable stock options by exercise price at December 31, 2013:
Outstanding and Exercisable Stock Options
Number of
Options at Year
End (000s)
Weighted-
A
verage
Remaining
Contractual Life
(in years)
Weighted-
Average
Exercise price per share Exercise Price
Under $10.00 1 $ 8.59 5.0
$10.01-$20.00 385 13.42 1.6
$20.01-$30.00 1 24.41 4.0
$30.01-$40.00 133 36.38 0.3
Over $40.00 26 49.46 1.1
A
ll stock options 546 $ 20.72 1.3
Other stock-based compensation
The Bancorp’s Board of Directors previously approved the use of
phantom stock units as part of its compensation for executives in
connection with changes made in reaction to the TARP
compensation rules. On February 22, 2011, the Bancorp redeemed
its Series F preferred stock held by the U.S. Treasury under the
CPP. As a result of this redemption, the last payment of phantom
stock occurred in April of 2011. The phantom stock units were
issued under the Bancorp’s 2008 Incentive Compensation Plan. The
number of phantom stock units was determined each pay period by
dividing the amount of salary to be paid in phantom stock units for
that pay period, by the reported closing price of the Bancorp’s
common stock on the pay date for such pay period. The phantom
stock units vested immediately on issuance. Phantom stock was