Fifth Third Bank 2014 Annual Report Download

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FIFTH
THIRD
BANCORP
2014
ANNUAL
REPORT

Table of contents

  • Page 1
    FIFTH THIRD BANCORP 2014 ANNUAL REPORT

  • Page 2
    ... Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 22.8% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in...

  • Page 3
    ...near-to-medium term climate for the financial services industry make the case for change. Our 2014 financial performance demonstrated our ability to effectively address those things and, equally effectively, execute on our business plans. Our results in the years ahead will reflect the repositioning...

  • Page 4
    .... 2014 net income available to common shareholders was $1.4 billion and earnings per diluted share were $1.66. Results included solid performance across our business lines highlighted by growth in corporate banking, payments processing, and investment advisory revenue. This contributed to a return...

  • Page 5
    ... card and processing revenue, investment advisory fees, and service charges on deposits. Our focus on expense management was evident and represents another cornerstone of our strategy to achieve our return targets. Total noninterest expense declined 6 percent from 2013 despite a 4 percent increase...

  • Page 6
    ... Average Loans benefits, and we continue to improve the features of our core credit card product offerings. We are committed to developing new, customer-focused solutions, which will be further accelerated by the creation of our new Payments and Commerce Solutions division. Our auto business is...

  • Page 7
    ... risk/return profile, like certain segments of commercial lending, and we have maintained our disciplined pricing methodology in indirect auto lending. Even as we scaled back, we increased portfolio loan balances to $90.1 billion, up 2 percent from 2013, with 4 BRANCH BANKING A strong Retail Bank...

  • Page 8
    ... a number of new services geared to improve the mobile customer experience. The most popular new feature, Now Balance, allows customers to access their account balances without logging in to mobile banking. Banking is a relationship business and we align our teams to place the customer in the center...

  • Page 9
    ... lives, offering retirement, investment and education planning, managed money, annuities and transactional brokerage services. 2014 HIGHLIGHTS $531 million Total Revenue $2.3 billion Average Loans • Fifth Third Insurance helps clients minimize risk and protect wealth through insurance products...

  • Page 10
    ... products to global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance. $34.8 billion Average Core Deposits This wide range of service...

  • Page 11
    ... management, commercial and consumer cards, and CPS through consolidated strategy, product development, and operational execution. We expect to leverage the Company's scale and extensive payments infrastructure to provide solutions for complex, high-transaction industries and to capture new market...

  • Page 12
    ...marketplace, and helping solve problems in our communities means building a better environment for us and our customers. I would personally like to thank William Isaac, Darryl Allen, and John Schiff Jr. who retired from the Fifth Third Bancorp Board of Directors in April 2014. These leaders provided...

  • Page 13
    ... programs include the Young Bankers Club for fifth-grade students; Dave Ramsey's Foundations in Personal Finance course for high-school students; and EmpowerU financial Randall Jackson was one of four original customers featured in a Fifth Third advertising and social media campaign designed...

  • Page 14
    ...us to offer products that pair a quality financial service with a community purpose. A prime example is the Fifth Third Stand Up To Cancer (SU2C) credit and debit cards we have offered since 2013. Last year, we ran special promotions that enabled customers opening a new checking account to earn $150...

  • Page 15
    ... 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...

  • Page 16
    ...Enterprise Risk Management Committee EVE: Economic Value of Equity FASB: Financial Accounting Standards Board FDIA: Federal Deposit Insurance Act FDIC: Federal Deposit Insurance Corporation FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FHLMC: Federal Home Loan Mortgage Corporation...

  • Page 17
    .... Includes demand, interest checking, savings, money market and foreign office deposits. Includes transaction deposits plus other time deposits. Includes certificates $100,000 and over, other deposits, federal funds purchased, other short-term borrowings and long-term debt. 15 Fifth Third Bancorp

  • Page 18
    ... RESULTS OF OPERATIONS OVERVIEW Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. At December 31, 2014, the Bancorp had $138.7 billion in assets, operated 15 affiliates with 1,302 full-service Banking Centers, including 101 Bank Mart® locations open...

  • Page 19
    ... Financial Statements. Legislative Developments On July 21, 2010, the DFA was signed into federal law. This act implements changes to the financial services industry and affects the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies...

  • Page 20
    ... 3, 2014, Fifth Third announced changes to its current deposit advance product for existing customers beginning January 1, 2015, including a lower transaction fee, an extended repayment period and a reduced maximum advance period. The Bancorp currently expects to continue to offer the service to...

  • Page 21
    ... Rule and substantially reducing uncertainty surrounding debit card interchange fees the Bancorp is permitted to charge. Refer to the Noninterest Income subsection of the Statements of Income Analysis section of MD&A for further information regarding the Bancorp's debit card interchange revenue...

  • Page 22
    ...in the mortgage business due to lower production levels and a decrease in base compensation and employee benefits as a result of a decline in the number of full-time equivalent employees. Other noninterest expense decreased $125 million in 2014 compared to 2013 primarily due to decreases in loan and...

  • Page 23
    ... rule. Generally, the LCR is designed to ensure banks maintain an adequate level of unencumbered HQLA to satisfy the estimated net cash outflows under a 30-day stress scenario. The Bancorp will be subject to the Modified LCR whereby TABLE 4: Non-GAAP Financial Measures - Liquidity Coverage Ratio...

  • Page 24
    ...-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk-weight of the category. The resulting weighted values are added...

  • Page 25
    ...; asset quality trends; risk management and loan administration; changes in the internal lending policies and credit standards; collection practices; and examination results from bank regulatory agencies and the Bancorp's internal credit reviewers. The Bancorp's primary market areas for lending are...

  • Page 26
    ... individual loan sales in accordance with its investment policies, it often obtains servicing rights. Servicing rights resulting from loan sales are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenue. Servicing rights...

  • Page 27
    ... for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. Derivatives Exchange-traded derivatives valued...

  • Page 28
    ...estimated. This reserve is included in Other Liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. 26 Fifth Third Bancorp

  • Page 29
    ... on the Bancorp's financial condition, the results of its operations, or its business. RISKS RELATING TO ECONOMIC AND MARKET CONDITIONS Changes and trends in the capital markets may affect Fifth Third's income and cash flows. Fifth Third enters into and maintains trading and investment positions in...

  • Page 30
    .... Fifth Third primarily relies on bank deposits to be a low cost and stable source of funding for the loans Fifth Third makes and the operations of Fifth Third's business. Core customer deposits, which include transaction deposits and other time deposits, have historically provided Fifth Third with...

  • Page 31
    ... investments, causing Fifth Third to lose a lower cost source of funding. Checking and savings account balances and other forms of customer deposits may decrease when customers perceive alternative investments, such as the stock market, as providing a better risk/return tradeoff. The Bancorp...

  • Page 32
    ... a change to previously announced financial results. Refer to the "Critical Accounting Policies" section of MD&A for more information regarding management's significant estimates. Fifth Third's mortgage banking revenue can be volatile from quarter to quarter. Fifth Third earns revenue from the fees...

  • Page 33
    ... credit card numbers and related information could result in losing the customers' confidence and thus the loss of their business as well as additional significant costs for privacy monitoring activities. Fifth Third's necessary dependence upon automated systems to record and process its transaction...

  • Page 34
    ... the issuance by the regulatory authority of a capital directive to increase capital, and the termination of deposit insurance by the FDIC. Fifth Third's business, financial condition and results of operations could be adversely affected by new or changed regulations and by the manner in which such...

  • Page 35
    ... proprietary trading for its own account and (ii) sponsoring or acquiring ownership interests in private equity or hedge funds. The Volcker Rule, however, contains a number of exceptions to these Fifth Third and/or its affiliates are or may become involved from time to time in information-gathering...

  • Page 36
    ... of action). Once finalized, the rules may raise the costs and liquidity burden associated with Fifth Third's derivatives businesses and adversely affect or cause Fifth Third to change its derivatives products. Financial institutions may be required, regardless of risk, to pay taxes or other fees to...

  • Page 37
    ... policy. The capital plan must reflect the revised capital framework that the FRB adopted in connection with the implementation of the Basel III accord, including the framework's minimum regulatory capital ratios and transition arrangements. Fifth Third's stress testing results and 2015 capital plan...

  • Page 38
    ..., loans and leases (including yield-related fees) and other interest-earning assets less the interest paid for core deposits (includes transaction deposits and other time deposits) and wholesale funding (includes certificates of deposit $100,000 and over, other deposits, federal funds purchased...

  • Page 39
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TABLE 8: CONSOLIDATED AVERAGE BALANCE SHEET AND ANALYSIS OF NET INTEREST INCOME For the years ended December 31 2014 2013 2012 Average Average Average Average Revenue/ Yield/ Average Revenue/ Yield/ Average ...

  • Page 40
    ... Interest-bearing liabilities: Interest checking $ 3 3 $ 4 4 Savings (2) (4) (6) (4) (11) (15) Money market 16 12 28 11 1 12 Foreign office deposits 1 1 Other time deposits (10) (10) (8) (10) (18) Certificates - $100,000 and over (20) 4 (16) 33 (29) 4 Federal funds purchased (1) (1) Other short-term...

  • Page 41
    ... to 2013. The increase was primarily due to an increase of $15 million in private client service fees due to growth in personal asset management fees, partially offset by a decrease in securities broker fees due to a decline in transactional brokerage revenue. The Bancorp had approximately $308...

  • Page 42
    ... Statements of Income. Card and processing revenue Card and processing revenue increased $23 million in 2014 compared to 2013. The increase was primarily the result of an increase in the number of actively used cards as well as higher processing fees related to additional ATM locations. Debit card...

  • Page 43
    ... 2013 due to lower loan closing and appraisal costs driven by a decline in mortgage originations. FDIC insurance and other taxes decreased $38 million in 2014 compared to 2013 primarily due to the change in the mix of the Bancorp's funding base and higher capital levels, a change in tax laws during...

  • Page 44
    ...sales of leveraged leases that are exempt from federal taxation and tax credits, partially offset by the effect of certain nondeductible expenses. The tax credits are associated with the Low-Income Housing Tax Credit program established under Section 42 of the IRC, the New Markets Tax Credit program...

  • Page 45
    ...on preferred stock Net income available to common shareholders The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities. The credit rate provided for demand deposit accounts is reviewed annually...

  • Page 46
    ... $ 819 Average Balance Sheet Data Commercial loans, including held for sale $ 51,310 Demand deposits 18,935 Interest checking deposits 8,068 Savings and money market deposits 5,946 Other time deposits and certificates - $100,000 and over 1,399 Foreign office deposits and other deposits 1,824 (a) The...

  • Page 47
    ... taxes Applicable income tax expense Net income Average Balance Sheet Data Consumer loans, including held for sale Commercial loans, including held for sale Demand deposits Interest checking deposits Savings and money market deposits Other time deposits and certificates - $100,000 and over 2014...

  • Page 48
    ...brokerage fees due to an increase in equity and bond market values. Card and processing revenue increased $12 million from the prior year due to higher transaction volumes, higher levels of consumer spending and the benefit of new products. Service charges on deposits increased $11 million from 2012...

  • Page 49
    ... charge-off related to the transfer of certain residential mortgage loans from the portfolio to held for sale in the fourth quarter of 2014, partially offset by improved delinquency metrics on home equity loans. Net charge-offs as a percent of average loans and leases increased to 77 bps for 2014...

  • Page 50
    ... clients and broker dealer services to the institutional marketplace. ClearArc Capital, Inc. provides asset management services. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services...

  • Page 51
    ... brokerage fees and private client service fees due to strong production and an increase in equity and bond market values. The decrease in other noninterest income was due to a decrease in gains on sales of held for sale loans and the impact of the gain on the sale of certain FTAM funds in the third...

  • Page 52
    ... an increase in personal asset management fees due to market-related growth, partially offset by a decrease in securities and brokerage fees. Mortgage banking net revenue was $61 million in both the fourth and third quarters of 2014 and $126 million in the fourth quarter of 2013. Fourth quarter 2014...

  • Page 53
    .... The stress testing results and capital plan were submitted by the Bancorp to the FRB on January 6, 2014. Additionally, the Bancorp entered into a number of accelerated share repurchase transactions in 2013. Refer to Note 23 of the Notes to Consolidated Financial Statements for more information on...

  • Page 54
    ... resulting from a strengthening economy and targeted marketing efforts. Commercial mortgage loans decreased $659 million, or eight percent, from December 31, 2013 due to continued run-off as the level of new originations was outpaced by increased repayments on the current portfolio. Consumer loans...

  • Page 55
    ...AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS million, or 88%, from December 31, 2013 primarily due to an increase in new loan origination activity and utilization resulting from a strengthening economy and targeted marketing efforts. Average commercial mortgage loans decreased $736...

  • Page 56
    ... deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates. Core deposits represented 71% of the Bancorp's asset funding base for both of the years ended December 31, 2014 and 2013. 54 Fifth Third Bancorp

  • Page 57
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TABLE 26: DEPOSITS As of December 31 ($ in millions) Demand Interest checking Savings Money market Foreign office Transaction deposits Other time Core deposits Certificates - $100,000 and over Other Total deposits...

  • Page 58
    ...,297 2012 901 6,280 7,085 14,266 2011 346 3,239 9,682 13,267 2010 279 1,574 9,558 11,411 Federal funds purchased decreased $140 million, or 49%, from December 31, 2013 driven by a decrease in excess balances in reserve accounts held at Federal Reserve Banks that the Bancorp purchased from other...

  • Page 59
    ...Bancorp's consumer loan growth strategies, ensuring portfolio optimization, appropriate risk controls and oversight, reporting, and monitoring of underwriting and credit administration processes; Operational Risk Management works with lines of business and affiliates to maintain processes to monitor...

  • Page 60
    ... for consumer and commercial credits, the accuracy of risk grades assigned to commercial credit exposure, nonaccrual status, specific reserves and monitoring for charge-offs. Credit Risk Review reports directly to the Risk and Compliance Committee of the Board of Directors and administratively to...

  • Page 61
    ... an underwriting process utilizing detailed origination policies, continuous loan level reviews, monitoring of industry concentration and product type limits and continuous portfolio risk management reporting. The origination policies for commercial real estate outline the risks and underwriting...

  • Page 62
    ... values, such as home price indices and recent asset dispositions, are monitored in order to determine whether changes to the appraisal adjustments are warranted. Other factors such as local market conditions or location may also be considered as necessary. The Bancorp assesses all real estate...

  • Page 63
    ...LOAN AND LEASE PORTFOLIO (EXCLUDING LOANS HELD FOR SALE) 2014 As of December 31 ($ in millions) Outstanding Exposure Nonaccrual Outstanding By industry: Manufacturing $ 10,315 20,496 55 $ 10,299 Financial services and insurance 6,097 13,557 20 5,998 Real estate 5,392 8,612 32 5,027 Business services...

  • Page 64
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following tables provide an analysis of nonowner-occupied commercial real estate loans (excluding loans held for sale): TABLE 37: NONOWNER-OCCUPIED COMMERCIAL REAL ESTATE(a) As of December 31, 2014 ($ in ...

  • Page 65
    ... consumer loan portfolio due to high loan amount to collateral value. The Bancorp does not update LTV ratios for the consumer portfolio subsequent to origination except as part of the charge-off process for real estate secured loans. Residential Mortgage Portfolio The Bancorp manages credit risk in...

  • Page 66
    ... LTV ratios after origination. However, the Bancorp monitors the local housing markets by reviewing various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring processes. For junior lien home equity loans which become 60 days or more...

  • Page 67
    ... % $ The Bancorp believes that home equity loans with a greater than 80% combined LTV ratio present a higher level of risk. The following table provides an analysis of the home equity loans outstanding in a senior and junior lien position by LTV at origination: TABLE 43: HOME EQUITY PORTFOLIO LOANS...

  • Page 68
    ... of foreign businesses as well as foreign financial institutions. These financial transactions are in the form of loans, loan commitments, letters of credit, derivatives and securities. The Bancorp's risk appetite for foreign country exposure is managed by having established country exposure limits...

  • Page 69
    ...Geographical market conditions continue to be a large driver of nonaccrual activity as Florida properties represent approximately 11% and seven percent of residential mortgage and home equity balances, respectively, but represent 32% and 15% of nonaccrual loans for each category at December 31, 2014...

  • Page 70
    ... construction loans Commercial leases 1 Residential mortgage loans 33 Home equity 21 Automobile loans 1 Credit card and other 41 Total nonperforming portfolio loans and leases(d) 579 OREO and other repossessed property(c) 165 Total nonperforming portfolio assets 744 Nonaccrual loans held for sale 39...

  • Page 71
    ... mortgage loans from the portfolio to loans held for sale during the fourth quarter of 2014. As a result of the transfer, the Bancorp recognized a charge-off of $87 million in 2014. As of December 31, 2014, the percentage of restructured residential mortgage loans, home equity loans, and credit card...

  • Page 72
    ... by a decrease in commercial mortgage loan net charge-offs, compared to 2013, due to improvements in general economic conditions and previous actions taken by the Bancorp to address problem loans. Net charge-offs for 2014 related to nonowner-occupied commercial real estate were $18 million compared...

  • Page 73
    ...AND RESULTS OF OPERATIONS TABLE 53: SUMMARY OF CREDIT LOSS EXPERIENCE For the years ended December 31 ($ in millions) Losses charged-off: Commercial and industrial loans Commercial mortgage loans Commercial construction loans Commercial leases Residential mortgage loans Home equity Automobile loans...

  • Page 74
    ... of future deterioration in the risk ratings or loss rates. Given current processes employed by the Bancorp, management believes the risk grades and estimated loss rates currently assigned are appropriate. 2014 $ 1,582 (679) 104 315 1,322 2013 1,854 (637) 136 229 1,582 2012 2,255 (837) 133 303...

  • Page 75
    ... on loan demand, credit losses, mortgage originations, the value of servicing rights and other sources of the Bancorp's earnings. Stability of the Bancorp's net income is largely dependent upon the effective management of interest rate risk. Management continually reviews the Bancorp's balance sheet...

  • Page 76
    ... the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (e.g., the current fiscal year). Further, EVE does not take into account factors such as future balance sheet growth, changes in product mix...

  • Page 77
    ... servicing fees are collected on repaid loans. The Bancorp maintains a non-qualifying hedging strategy relative to its mortgage banking activity in order to manage a portion of the risk associated with changes in the value of its MSR portfolio as a result of changing interest rates. Mortgage rates...

  • Page 78
    .... Certificates of deposit with a balance of $100,000 or more and deposits in the Bancorp's foreign branch located in the Cayman Islands are wholesale funding tools utilized to fund asset growth. Management does not rely on any one source of liquidity and manages availability in response to changing...

  • Page 79
    ... for execution oversight of the capital actions of the capital plan. risk. This includes providing training, tools, guidance and oversight to support implementation of key risk programs and systems as they relate to operational risk management, such as risk and control selfassessments, new product...

  • Page 80
    ... off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorp's total risk-weighted assets. Preferred Stock...

  • Page 81
    ... number of shares that may yet be repurchased under the Board of Directors' authorization. Stress Tests and CCAR In 2011, the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $50 billion or more to submit annual capital plans to the FRB for review. Under the rule...

  • Page 82
    .... As required, the Bancorp reported the mid-cycle stress test results to the FRB on July 7, 2014. In addition, the Bancorp published a Form 8-K providing a summary of the results under the severely adverse scenario on September 18, 2014, which is available on Fifth Third's website at https://www.53...

  • Page 83
    ... The Bancorp has certain commitments to make future payments under contracts, including commitments to extend credit, letters of credit, forward contracts related to held for sale mortgage loans, noncancelable lease obligations, capital commitments for private equity investments and purchase...

  • Page 84
    ... demand, interest checking, savings, money market and foreign office deposits. For additional information, refer to the Deposits discussion in the Balance Sheet Analysis section of MD&A. Interest-bearing obligations are principally used to fund interest-earning assets. As such, interest charges on...

  • Page 85
    ... reporting. Based on this evaluation, there has been no such change during the year covered by this report. Kevin T. Kabat Vice Chairman and Chief Executive Officer February 25, 2015 Tayfun Tuzun Executive Vice President and Chief Financial Officer February 25, 2015 83 Fifth Third Bancorp

  • Page 86
    ... opinion. A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other...

  • Page 87
    ...: Demand $ 34,809 32,634 Interest checking 26,800 25,875 Savings 15,051 17,045 Money market 17,083 11,644 Other time 3,960 3,530 Certificates - $100,000 and over 2,895 6,571 Foreign office 1,114 1,976 Total deposits 101,712 99,275 Federal funds purchased 144 284 Other short-term borrowings 1,556...

  • Page 88
    ...and lease losses Net Interest Income After Provision for Loan and Lease Losses Noninterest Income Service charges on deposits Corporate banking revenue Investment advisory revenue Mortgage banking net revenue Card and processing revenue Other noninterest income Securities gains, net Securities gains...

  • Page 89
    ... Comprehensive income attributable to Bancorp See Notes to Consolidated Financial Statements. $ 2014 1,483 2013 1,826 2012 1,574 378 (24) 39 (29) (25) 8 347 1,830 2 1,828 (295) 4 (8) (29) 25 10 (293) 1,533 (10) 1,543 (63) (10) 24 (54) (5) 13 (95) 1,479 (2) 1,481 $ 87 Fifth Third Bancorp

  • Page 90
    ...stock at $0.51 per share Preferred stock Shares acquired for treasury Issuance of preferred stock Impact of stock transactions under stock compensation plans, net Other Balance at December 31, 2014 See Notes to Consolidated Financial Statements. Bancorp Shareholders' Equity... 88 Fifth Third Bancorp

  • Page 91
    ... of equity method investments Net change in: Other short-term investments Loans and leases Operating lease equipment Net Cash Used in Investing Activities Financing Activities Net change in: Core deposits Certificates - $100,000 and over, including foreign office and other Federal funds purchased...

  • Page 92
    ... ACCOUNTING AND REPORTING POLICIES Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout...

  • Page 93
    ...at a stated interest rate lower than the current market rate for a new loan with similar risk. During the third quarter of 2012, the OCC, a national bank regulatory agency, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as...

  • Page 94
    ... at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans held for sale are placed on nonaccrual status consistent with the Bancorp's nonaccrual policy for portfolio loans and leases. Other Real Estate Owned OREO...

  • Page 95
    ...; asset quality trends; risk management and loan administration; changes in the internal lending policies and credit standards; collection practices; and examination results from bank regulatory agencies and the Bancorp's internal credit reviewers. The Bancorp's primary market areas for lending are...

  • Page 96
    ... values are reported in current period net income. Prior to entering into a hedge transaction, the Bancorp formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge transaction. This process...

  • Page 97
    ...in an orderly transaction between market participants at the measurement date. As none of the Bancorp's reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp's stock price. To determine the fair value of a reporting unit...

  • Page 98
    ... card associations) not controlled by the Bancorp. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding...

  • Page 99
    ... the measurement of the investments in qualified affordable housing projects and the related tax credits on the Bancorp's financial position and results of operation. The Bancorp adopted the amended guidance on January 1, 2015, and did not make an accounting policy election to apply the proportional...

  • Page 100
    ... for repurchase agreements, securities lending transactions, and repurchase-tomaturity transactions accounted for as secured borrowings are required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The Bancorp adopted the...

  • Page 101
    ... operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early adoption...

  • Page 102
    ... annual capital plans to the FRB for review. Under the rule, these capital plans must include detailed descriptions of the following: the BHC's internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends, and share repurchases...

  • Page 103
    ...objection or non-objection to each participating institution's capital plan submitted under CCAR. Additionally, as a CCAR institution, the Bancorp will be required to publicly disclose the results of its company run stress test as required by the DFA, within 15 days of the date the FRB discloses the...

  • Page 104
    ...-sale equity securities or held-to-maturity debt securities for the years ended December 31, 2014, 2013 and 2012. Less than one percent of unrealized losses in the available-forsale securities portfolio were represented by non-rated securities at December 31, 2014 and 2013. 102 Fifth Third Bancorp

  • Page 105
    ... loan and lease products with various payment terms and rate structures. Lending activities are concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp's commercial loan portfolio...

  • Page 106
    ... and 2013, respectively. The residual value write-downs related to commercial leases are recorded in corporate banking revenue in the Consolidated Statements of Income. At December 31, 2014, the minimum future lease payments receivable for each of the years 2015 through 2019 was $681 million, $625...

  • Page 107
    ... associated with a consolidated VIE, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $28 and an allowance of $11. A CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of monitoring the credit quality and...

  • Page 108
    ... a summary of the Bancorp's residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2014 ($ in millions) Performing Residential mortgage loans(a) $ 12,204 Home equity 8,793 Automobile loans 12,036 Credit card 2,360...

  • Page 109
    ... loans Commercial leases Residential mortgage loans(a)(b) Consumer: Home equity Automobile loans Credit card Other consumer loans and leases Total portfolio loans and leases(a) (a) (b) (c) Current Loans and Leases(c) $ 39,118 4,423 3,515 1,010 3,620 12,284 9,058 11,919 2,225 362 87,534 30-89 Days...

  • Page 110
    ... review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid 2014 Principal Recorded ($ in millions) Balance Investment ALLL With a related ALLL recorded: Commercial: Commercial and industrial loans $ 598 486 149 Commercial mortgage owner-occupied loans...

  • Page 111
    ...: Home equity Automobile loans Credit card Total impaired loans and leases with a related ALLL With no related ALLL recorded: Commercial: Commercial and industrial loans Commercial mortgage owner-occupied loans Commercial mortgage nonowner-occupied loans Commercial construction loans Commercial...

  • Page 112
    ... of the loan's maturity date(s) with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest. Modifying the terms of a loan may result in an increase or decrease...

  • Page 113
    ... 2014 ($ in millions)(a) Commercial: Commercial and industrial loans Commercial mortgage owner-occupied loans Commercial mortgage nonowner-occupied loans Residential mortgage loans Consumer: Home equity Automobile loans Credit card Total portfolio loans and leases Number of loans modified...

  • Page 114
    ...-occupied loans Commercial construction loans Residential mortgage loans Consumer: Home equity Automobile loans Credit card (revised) Total portfolio loans and leases (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. $ 112 Fifth Third Bancorp

  • Page 115
    ...intended for future branch expansion. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience of its retail transaction network. As part of this ongoing...

  • Page 116
    ...the acquisition of goodwill. Acquisition activity includes acquisitions in the respective period in addition to purchase accounting adjustments related to previous acquisitions. During the fourth quarter of 2008, the Bancorp determined that the Commercial Banking and Consumer Lending reporting units...

  • Page 117
    ... on existing asset balances as of December 31, 2014. Future amortization expense may vary from these projections. Estimated amortization expense for the years ending December 31, 2015 through 2019 is as follows: ($ in millions) 2015 2016 2017 2018 2019 Total 2 2 2 2 1 $ 115 Fifth Third Bancorp

  • Page 118
    ... include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. CDC Investments...

  • Page 119
    ..., invests as a limited partner in private equity funds which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp's commercial products. Each of the limited partnerships has an unrelated third-party...

  • Page 120
    ...of the Volcker Rule in the fourth quarter of 2013, the Bancorp recognized $4 million of OTTI on its investments in private equity funds during 2013. The Bancorp recognized no OTTI on its investments in private equity funds during 2014. Refer to Note 27 for further information. Loans Provided to VIEs...

  • Page 121
    ...The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp's mortgage banking activity, which...

  • Page 122
    ...-qualifying hedges on MSRs Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) (Provision for) recovery of MSR impairment (Mortgage banking net revenue) 2014 95 (65) 2013 13 (30) 192 2012 3 63 (103) $ As...

  • Page 123
    ... return swaps based on changes in the value of the underlying mortgage principal-only trust. TBAs are a forward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made. Foreign currency volatility occurs as the Bancorp...

  • Page 124
    ... related to held for sale mortgage loans Stock warrant associated with Vantiv Holding, LLC Swap associated with the sale of Visa, Inc. Class B shares Total free-standing derivatives - risk management and other business purposes Free-standing derivatives - customer accommodation: Interest rate...

  • Page 125
    ... gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Consolidated Statements of Income. Additionally, as part of the Bancorp's overall risk management strategy with respect to minimizing significant...

  • Page 126
    ...contracts related to mortgage loans held for sale Interest rate contracts related to MSR portfolio Interest rate swaps related to long-term debt Foreign exchange contracts: Foreign exchange contracts for risk management purposes Equity contracts: Stock warrant associated with Vantiv Holding, LLC Put...

  • Page 127
    ... for customers (credit portion of fair value adjustment) Foreign exchange contracts: Foreign exchange contracts - customers (contract revenue) Foreign exchange contracts - customers (credit portion of fair value adjustment) Consolidated Statements of Income Caption Corporate banking revenue Other...

  • Page 128
    ... the Consolidated Balance Sheets as of December 31: ($ in millions) Derivative instruments Partnership investments Bank owned life insurance Accounts receivable and drafts-in-process Investment in Vantiv Holding, LLC Accrued interest receivable OREO and other repossessed personal property Income tax...

  • Page 129
    ...its investments in private equity funds during 2014. Refer to Note 27 for further information. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. Certain BOLI policies have a stable value agreement...

  • Page 130
    ... are represented by a Global Security dated as of March 7, 2012. The senior notes bear a fixed-rate of interest of 3.50% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes will be due upon maturity on 128 Fifth Third Bancorp

  • Page 131
    ... increased the Bank's capacity to issue its senior and subordinated unsecured bank notes from $20 billion to $25 billion. As of December 31, 2014, $19.1 billion was available for future issuance under the global bank note program. For the subordinated fixed-rate bank notes due in 2015, the Bancorp...

  • Page 132
    ... a summary of significant commitments as of December 31: ($ in millions) Commitments to extend credit Letters of credit Forward contracts related to held for sale mortgage loans Noncancelable operating lease obligations Capital commitments for private equity investments Purchase obligations Capital...

  • Page 133
    ... a limited number of agreements for work related to banking center construction and to purchase goods or services. other liabilities in the Consolidated Balance Sheets. During 2009, the Bancorp suspended the practice of providing reinsurance of PMI for newly originated mortgage loans. Legal claims...

  • Page 134
    ... of residential mortgage loans held in its loan portfolio. Margin accounts FTS, a subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent...

  • Page 135
    ...fair value of the swap liability was $49 million and $48 million at December 31, 2014 and 2013, respectively. Refer to Notes 12 and 18 for further information. After the Bancorp's sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in...

  • Page 136
    ... antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York. The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations...

  • Page 137
    ... that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp's analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is...

  • Page 138
    ...STATEMENTS 19. RELATED PARTY TRANSACTIONS The Bancorp maintains written policies and procedures covering related party transactions to principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit...

  • Page 139
    .... Vantiv Holding, LLC did not draw upon its line of credit during the years ended December 31, 2014 or 2013. 20. INCOME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements...

  • Page 140
    ... to absorb bad debt losses, they will be subject to federal income tax at the current corporate tax rate.  21. RETIREMENT AND BENEFIT PLANS The Bancorp's qualified defined benefit plan's benefits were frozen in 1998, except for grandfathered employees. The Bancorp's other retirement plans consist...

  • Page 141
    ...194 6 (a) The Bancorp's defined benefit plan had an Overfunded status at December 31, 2013. The plan was Underfunded at December 31, 2014 and is reflected in the Underfunded Status table. Plans with an Underfunded Status ($ in millions) Fair value of plan assets at January 1 Actual return on assets...

  • Page 142
    ... stock using quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Mutual and exchange traded funds All of the plan's mutual and exchange traded funds are publicly traded. The plan measures the value of these investments...

  • Page 143
    ...higher returns involve some volatility and that periodic declines in the portfolio's value are tolerated in an effort to achieve real capital growth. There were no significant concentrations of risk associated with the investments of the Bancorp's benefit and retirement plan at December 31, 2014 and...

  • Page 144
    ..., of plan assets were managed by Fifth Third Bank, a subsidiary of the Bancorp. Plan assets included $4 million of Bancorp common stock as of December 31, 2014 and 2013, respectively. Plan assets are not expected to be returned to the Bancorp during 2015. The Bancorp's profit sharing plan expense...

  • Page 145
    ...Activity Effect Activity Total Accumulated Other Comprehensive Income Beginning Net Ending Balance Activity Balance ($ in millions) 2014 Unrealized holding gains on available-for-sale... to net periodic benefit costs Defined benefit pension plans, net Total $ 580 (37) 543 60...Fifth Third Bancorp

  • Page 146
    ... 31: Affected Line Item in the Consolidated Statements of Income Components of AOCI: ($ in millions) Net unrealized gains on available-for-sale securities:(b) Net gains (losses) included in net income 2014 2013 Securities gains, net Income before income taxes Applicable income tax expense...

  • Page 147
    ... December 31, 2013 Shares acquired for treasury Issuance of preferred shares, Series J Impact of stock transactions under stock compensation plans, net Other December 31, 2014 $ $ $ $ $ $ $ $ Preferred Stock-Series J On June 5, 2014, the Bancorp issued, in a registered public offering, 300...

  • Page 148
    ...the sale of Vantiv, Inc. common shares by either the Bancorp or Vantiv, Inc. As a result, on August 21, 2012, Fifth Third's Board of Directors authorized the Bancorp to repurchase up to 100 million shares of its outstanding common stock in the open market or in privately negotiated transactions, and...

  • Page 149
    ... Bancorp's equity compensation plans as of December 31, 2014: Plan Category (shares in thousands) Equity compensation plans approved by shareholders SARs Restricted stock Stock options(c) Phantom stock units Performance units Employee stock purchase plan Total shares (a) (b) (c) (d) (e) (f) Number...

  • Page 150
    ... dividend yield is based on annual dividends divided by the Bancorp's stock price. Annual dividends are based on projected dividends, estimated using an expected longterm dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within the contractual...

  • Page 151
    ... was immaterial to the Bancorp's Consolidated Financial Statements during 2014, 2013 and 2012. All stock options were vested as of December 31, 2008, therefore, no stock options vested during 2014, 2013 or 2012. As of December 31, 2014, the aggregate intrinsic value of both outstanding options...

  • Page 152
    ...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...

  • Page 153
    ... shares Operating lease income Equity method income from interest in Vantiv Holding, LLC Cardholder fees BOLI income Valuation adjustments on the warrant and put options associated with sale of Vantiv Holding, LLC Banking center income Consumer loan and lease fees Insurance income Gain on loan sales...

  • Page 154
    ... 31: 2014 Average Per Share Shares Amount 2013 Average Per Share Shares Amount 2012 Average Per Share Shares Amount (in millions, except per share data) Earnings per share: Net income attributable to Bancorp Dividends on preferred stock Net income available to common shareholders Less: Income...

  • Page 155
    ...recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: Fair Value Measurements Using December 31, 2014 ($ in millions) Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies Obligations of states...

  • Page 156
    ... and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued...

  • Page 157
    ...Business Finance Department, which reports to the Bancorp's Chief Financial Officer, are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales...

  • Page 158
    ... change in unrealized gains or losses relating to assets still held at December 31, 2012(c) (a) (b) (c) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total Securities Loans Net(a) Net(a) Fair Value...

  • Page 159
    ..., net Stock warrant associated with Vantiv Holding, LLC Fair Value Valuation Technique $ 108 Loss rate model 12 415 Discounted cash flow Black-Scholes option valuation model Discounted cash flow Significant Unobservable Inputs Interest rate risk factor Credit risk factor Loan closing rates Expected...

  • Page 160
    ... ($ in millions) Commercial loans held for sale(a) Commercial and industrial loans Commercial mortgage loans Commercial construction loans MSRs OREO Bank premises Private equity investment funds Total (a) Includes commercial nonaccrual loans held for sale. $ $ Fair Value Measurements Using Level...

  • Page 161
    ..., the Commercial Line of Business Finance Department, which reports to the Bancorp Chief Financial Officer, in conjunction with Accounting review all loan appraisal values, carrying values and vintages. Residential mortgage loans held for sale During 2014, the Bancorp transferred $720 million...

  • Page 162
    ...The Real Estate Valuation department, which reports to the Chief Risk Officer, is solely responsible for managing the appraisal process and evaluating the appraisal for all commercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis...

  • Page 163
    ... 2014 Residential mortgage loans measured at fair value Past due loans of 90 days or more Nonaccrual loans December 31, 2013 Residential mortgage loans measured at fair value Past due loans of 90 days or more Nonaccrual loans A Difference 26 - $ 982 1 2 962 2 2 20 (1) - 161 Fifth Third Bancorp

  • Page 164
    ... credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), federal funds purchased...

  • Page 165
    ... loss severities. Long-term debt Fair value of long-term debt was based on quoted market prices, when available, or a DCF calculation using LIBOR/swap interest rates and, in some cases, Fifth Third credit and/or debt instrument spreads for new issuances with similar terms. 163 Fifth Third Bancorp

  • Page 166
    ... that assign risk weightings to assets and off-balance sheet items, as well as define and set minimum regulatory capital requirements. All bank holding companies are required to maintain Tier I capital (core capital) of at least four percent of risk-weighted assets (Tier I risk-based capital ratio...

  • Page 167
    ... banking subsidiary paid dividends to the Bancorp's direct nonbank subsidiary holding company of $1.1 billion, $859 million and $2.0 billion for December 31, 2014, 2013 and 2012, respectively. 1,700 96 1,796 (220) 1,576 the years ended Condensed Statements of Comprehensive Income (Parent Company...

  • Page 168
    ... Preferred stock Capital surplus Retained earnings Accumulated other comprehensive income Treasury stock Noncontrolling interests Total Equity Total Liabilities and Equity Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) Operating Activities...

  • Page 169
    ... savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. Consumer Lending includes the Bancorp's mortgage, home...

  • Page 170
    ...a 2014 ($ in millions) Net interest income Provision for loan and lease losses Net interest income after provision for loan and lease losses Noninterest income: Service charges on deposits Corporate banking revenue Investment advisory revenue Mortgage banking net revenue Card and processing revenue...

  • Page 171
    ... FINANCIAL STATEMENTS 2013 ($ in millions) Net interest income Provision for loan and lease losses Net interest income after provision for loan and lease losses Noninterest income: Service charges on deposits Corporate banking revenue Investment advisory revenue Mortgage banking net revenue Card...

  • Page 172
    ... FINANCIAL STATEMENTS 2012 ($ in millions) Net interest income Provision for loan and lease losses Net interest income after provision for loan and lease losses Noninterest income: Service charges on deposits Corporate banking revenue Investment advisory revenue Mortgage banking net revenue Card...

  • Page 173
    ...Stock Market LLC 10-K Cross Reference Index PART I Item 1. Business Employees Segment Information Average Balance Sheets Analysis of Net Interest Income and Net Interest Income Changes Investment Securities Portfolio Loan and Lease Portfolio Risk Elements of Loan and Lease Portfolio Deposits Return...

  • Page 174
    ... and services to the retail, commercial, financial, governmental, educational and medical sectors, including a wide variety of checking, savings and money market accounts, and credit products such as credit cards, installment loans, mortgage loans and leases. Fifth Third Bank has deposit insurance...

  • Page 175
    ... applicable to banks and to BHCs regulate, among other matters, the scope of their business, their activities, their investments, capital and liquidity levels, their reserves against deposits, the timing of the availability of deposited funds, the amount of loans to individual and related borrowers...

  • Page 176
    ... its extension of credit to all affiliates to 20% of the banking subsidiary' s capital stock and surplus. Community Reinvestment Act The CRA generally requires insured depository institutions to identify the communities they serve and to make loans and investments and provide services that meet the...

  • Page 177
    ... to named executive officers in connection with sale transactions. The SEC adopted rules finalizing these say on pay provisions in January 2011. Pursuant to the DFA, in June 2012, the SEC adopted a final rule directing the stock exchanges to prohibit listing classes of equity securities if a company...

  • Page 178
    ... the Investment Company Act of 1940), executive compensation or any other significant matter, as determined by the SEC by rule. Credit Ratings The DFA includes a number of provisions that are targeted at improving the reliability of credit ratings. In August of 2014 the SEC adopted new requirements...

  • Page 179
    ... policy. The stress tests require increased involvement by boards of directors in stress testing and public disclosure of the results of both the FRB' s annual stress tests and a BHC' s annual supervisory stress tests, and semi-annual internal stress tests. The Bancorp submitted its capital plan...

  • Page 180
    ... of Tier I capital to adjusted average consolidated assets. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the conservation buffer will face limitations on the payment of dividends, common stock repurchases and discretionary cash payments to executive...

  • Page 181
    ... to as the net stable funding ratio ("NSFR"), which is designed to promote more medium-and long-term funding of the assets and activities of banks over a oneyear time horizon. Although the Basel Committee finalized its formulation of the NSFR in 2014, the U.S. banking agencies have not yet proposed...

  • Page 182
    ... Director of Business Planning and Analysis since 2006 and was the Chief Financial Officer of the Commercial Banking Division since 2001. Philip R. McHugh, 50, Executive Vice President of the Bancorp since December 2014. Previously, Mr. McHugh was Executive Vice President of Fifth Third Bank since...

  • Page 183
    ... plans of the Bancorp. These purchases are not included against the maximum number of shares that may yet be purchased under the Board of Directors authorization. See further discussion of stock-based compensation in Note 24 of the Notes to Consolidated Financial Statements. 181 Fifth Third...

  • Page 184
    ... Analysis The graphs below summarize the cumulative return experienced by the Bancorp's shareholders over the years 2009 through 2014, and 2004 through 2014, respectively, compared to the S&P 500 Stock and the S&P Banks indices.  FIFTH THIRD BANCORP VS. MARKET INDICES  182 Fifth Third Bancorp

  • Page 185
    ...ELECTION OF DIRECTORS," "COMPENSATION DISCUSSION AND ANALYSIS" and "COMPENSATION OF NAMED EXECUTIVE OFFICERS AND DIRECTORS" of the Bancorp' s Proxy Statement for the 2015 Annual Meeting of Shareholders. The information required by this item concerning Equity Compensation Plan information is included...

  • Page 186
    ...s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 9, 2013. Deposit Agreement dated June 5, 2014, among Fifth Third Bancorp, as issuer, Wilmington Trust, National Association, as depositary and calculation agent, American Stock Transfer & Trust Company, LLC as...

  • Page 187
    ... as of June 30, 2009 among Fifth Third Processing Solutions, LLC, FTPS Holding, LLC, Card Management Company, LLC, Fifth Third Holdings, LLC and Fifth Third Bank. Incorporated by reference to the Registrant' s Current Report on Form 8-K filed with the Commission on July 2, 2009. Registration Rights...

  • Page 188
    ... duly authorized. FIFTH THIRD BANCORP Registrant /s/ Kevin T. Kabat Kevin T. Kabat Vice Chairman and CEO Principal Executive Officer February 25, 2015 Pursuant to requirements of the Securities Exchange Act of 1934, this report has been signed on February 25, 2015 by the following persons on behalf...

  • Page 189
    ... Federal funds sold and interest-bearing deposits in banks are combined in other short-term investments in the Consolidated Financial Statements. Adjusted for accounting guidance related to the calculation of earnings per share, which was adopted retroactively on January 1, 2009. 187 Fifth Third...

  • Page 190
    ... Vice President & Chief Human Resources Officer Mary E. Tuuk Executive Vice President of Corporate Services & Board Secretary Tayfun Tuzun Executive Vice President & Chief Financial Officer AFFILIATE PRESIDENTS Donald Abel, Jr. Steven Alonso David A. Call Hal Clemmer  188 Fifth Third Bancorp

  • Page 191
    ... Declared Per Share $0.12 $0.12 $0.12 $0.11 Fifth Third's common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." FIFTH THIRD BANCORP Corporate Address 38 Fountain Square Plaza Cincinnati, OH 45263 Website: www.53.com Telephone: 1-800-972-3030 Investor Relations (For...

  • Page 192
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