Fifth Third Bank 2014 Annual Report Download - page 58

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
56 Fifth Third Bancorp
The contractual maturities of certificates $100,000 and over as of December 31, 2014 are summarized in the following table:
TABLE 28: CONTRACTUAL MATURITIES OF CERTIFICATES $100,000 AND OVER
($ in millions) 2014
Three months or less $ 759
A
fte
r
three months through six months 203
A
fter six months through 12 months 273
A
fter 12 months 1,660
Total $ 2,895
The contractual maturities of other time deposits and certificates $100,000 and over as of December 31, 2014 are summarized in the following
table:
TABLE 29: CONTRACTUAL MATURITIES OF OTHER TIME DEPOSITS AND CERTIFICATES $100,000 AND OVER
($ in millions) 2014
Next 12 months $ 2,507
13-24 months 1,617
25-36 months 961
37-48 months 626
49-60 months 884
A
fter 60 months 260
Total $ 6,855
Borrowings
Total borrowings increased $5.4 billion, or 48%, from December
31, 2013 due to increases in other short-term borrowings and long-
term debt, partially offset by a decrease in federal funds purchased.
Total borrowings as a percentage of interest-bearing liabilities were
20% and 14% at December 31, 2014 and 2013, respectively.
TABLE 30: BORROWINGS
A
s of December 31 ($ in millions) 2014 2013 2012 2011 2010
Federal funds purchased $ 144 284 901 346 279
Other short-term borrowings 1,556 1,380 6,280 3,239 1,574
Long-term debt 14,967 9,633 7,085 9,682 9,558
Total borrowings $ 16,667 11,297 14,266 13,267 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 member banks on an overnight basis. Other
short-term borrowings increased $176 million, or 13%, from
December 31, 2013 driven by an increase in cash held as collateral
related to derivative agreements with various counterparties.
Additionally, the utilization of short-term funding remained low in
2014 due to strong deposit growth and to comply with regulatory
standards which require greater dependency on long-term and stable
funding. Long-term debt increased $5.3 billion, or 55%, from
December 31, 2013 primarily driven by the issuance of $2.9 billion
of unsecured senior bank notes and the issuance of asset-backed
securities by consolidated VIEs of $3.8 billion related to automobile
loan securitizations during 2014, partially offset by $1.4 billion of
paydowns on long-term debt associated with automobile loan
securitizations. For additional information regarding automobile
securitizations and long-term debt, refer to Note 10 and 16,
respectively, of the Notes to Consolidated Financial Statements.
TABLE 31: AVERAGE BORROWINGS
For the years ended December 31 ($ in millions) 2014 2013 2012 2011 2010
Federal funds purchased $ 458 503 560 345 291
Other short-term borrowings 1,873 3,024 4,246 2,777 1,635
Long-term debt 12,928 7,914 9,043 10,154 10,902
Total average borrowings $ 15,259 11,441 13,849 13,276 12,828
Average total borrowings increased $3.8 billion, or 33%, compared
to December 31, 2013, due to an increase in average long-term debt
partially offset by decreases in average federal funds purchased and
average other short-term borrowings. The increase in average long-
term debt of $5.0 billion, or 63%, was driven primarily by the
issuances of long-term debt as discussed above. The level of average
federal funds purchased and average other short-term borrowings
can fluctuate significantly from period to period depending on
funding needs and which sources are used to satisfy those needs.
Additionally, the utilization of short-term funding remained low in
2014 due to strong deposit growth and to comply with regulatory
standards which require greater dependency on long-term and stable
funding.
Information on the average rates paid on borrowings is
discussed in the net interest income section of 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.