FIFTH THIRD BANCORP - FORM 8-K - EX-99.3

Attached files

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d87593d8k.htm
EX-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d87593dex991.htm
EX-99.2 - EX-99.2 - FIFTH THIRD BANCORP	d87593dex992.htm

Exhibit 99.3

October 2015

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QUARTERLY FINANCIAL SUPPLEMENT

Investment Community Member:

To assist in your financial analysis, the following supplement of most requested information concerning Fifth Third Bancorp is provided.

Numbers are unaudited for quarterly information.

If you need further information, please fax or e-mail your request to Fifth Third’s Investor Relations Department at (513) 534-0629 or IR@53.com

Jim Eglseder

SVP / Investor Relations

(513) 534-8424

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Quarterly Data	Three Months Ended
	September		June		March		December		September		June		March		December
	2015		2015		2015		2014		2014		2014		2014		2013
Ratios (percent)
Return on average assets		1.07		0.90		1.06		1.13		1.02		1.34		1.00		1.24
Return on average common equity		10.0		8.1		9.7		10.0		9.2		11.9		9.0		10.8
Average total Bancorp shareholders’ equity as a percent of average assets		11.24		11.32		11.49		11.54		11.71		11.57		11.53		11.51
Net interest margin^(a)		2.89		2.90		2.86		2.96		3.10		3.15		3.22		3.21
Efficiency^(a)		58.2		65.4		62.3		59.6		62.1		58.2		64.9		61.5
Net losses charged-off as a percent of average portfolio loans and leases		0.80		0.37		0.41		0.83		0.50		0.45		0.76		0.67
ALLL as a percent of portfolio loans and leases		1.35		1.39		1.42		1.47		1.56		1.61		1.65		1.79
Allowance for credit losses as a percent of portfolio loans and leases		1.49		1.54		1.57		1.62		1.71		1.77		1.82		1.97
Nonperforming assets as a percent of portfolio loans, leases and other assets, including OREO^(b)		0.65		0.67		0.76		0.82		0.88		0.92		1.05		1.10
Allowance for loan and lease losses as a percent of nonperforming assets^(b)		208		206		188		178		178		175		157		161
Allowance for credit losses as a percent of nonperforming assets^(b)		230		228		207		196		195		192		173		178
Common Share Data
Earnings per share—basic	$	0.46	$	0.36	$	0.42	$	0.44	$	0.39	$	0.49	$	0.36	$	0.44
Earnings per share—diluted	$	0.45	$	0.36	$	0.42	$	0.43	$	0.39	$	0.49	$	0.36	$	0.43
Cash dividends per common share		0.13		0.13		0.13		0.13		0.13		0.13		0.12		0.12
Book value per share		18.22		17.62		17.83		17.35		16.87		16.74		16.27		15.85
Common shares outstanding, excluding treasury		795,439,309		810,054,148		815,190,210		824,046,952		834,261,897		844,488,849		847,568,728		855,305,745
Market price per share:
High	$	21.71	$	21.69	$	20.21	$	20.69	$	21.75	$	23.19	$	23.39	$	21.04
Low		18.23		18.91		17.22		17.74		19.52		20.03		20.50		17.50
End of period		18.91		20.82		18.85		20.38		20.02		21.35		22.96		21.03
Supplemental Data
Common dividends declared ($ in millions)	$	103	$	105	$	106	$	107	$	108	$	110	$	102	$	103
Full-time equivalent employees		18,311		18,527		18,471		18,351		18,503		18,732		19,080		19,446
Banking centers		1,295		1,299		1,303		1,302		1,308		1,309		1,311		1,320
ATMs		2,650		2,630		2,637		2,638		2,639		2,619		2,614		2,586

(a)

Presented on a fully taxable equivalent basis (FTE).

(b)

Excludes nonperforming assets held for sale.

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Quarterly Data	Three Months Ended
	September			June			March			December			September			June			March			December
	2015			2015			2015			2014			2014			2014			2014			2013
Income Statement ($ in millions)
Interest income (FTE)	$	1,031		$	1,008		$	975		$	1,016		$	1,023		$	1,013		$	998		$	1,007
Interest expense		125			116			123			128			115			108			100			102

Net interest income (FTE)		906			892			852			888			908			905			898			905
Provision for loan and lease losses		156			79			69			99			71			76			69			53
Noninterest income:
Service charges on deposits		145			139			135			142			145			139			133			142
Investment advisory revenue		103			105			108			100			103			102			102			98
Corporate banking revenue		104			113			63			120			100			107			104			94
Mortgage banking net revenue		71			117			86			61			61			78			109			126
Card and processing revenue		77			77			71			76			75			76			68			71
Other noninterest income		213			1			163			150			33			226			41			170
Securities gains, net		—			4			4			4			3			8			7			2

Total noninterest income		713			556			630			653			520			736			564			703
Noninterest expense:
Salaries, wages and incentives		387			383			369			366			357			368			359			388
Employee benefits		72			78			99			79			75			79			101			78
Net occupancy expense		77			83			79			77			78			79			80			77
Technology and communications		56			54			55			54			53			52			53			53
Equipment expense		31			31			31			30			30			30			30			29
Card and processing expense		40			38			36			36			37			37			31			37
Other noninterest expense		280			280			254			276			258			309			296			327

Total noninterest expense		943			947			923			918			888			954			950			989
Income before income taxes (FTE)		520			422			490			524			469			611			443			566
Taxable equivalent adjustment		5			5			5			5			5			5			5			5

Income before income taxes		515			417			485			519			464			606			438			561
Applicable income tax expense		134			108			124			134			124			167			119			159

Net income	$	381		$	309		$	361		$	385		$	340		$	439		$	319		$	402
Less: Net income attributable to noncontrolling interests		—			(6	)		—			—			—			—			1			—

Net income attributable to Bancorp	$	381		$	315		$	361		$	385		$	340		$	439		$	318		$	402
Dividends on preferred stock		15			23			15			23			12			23			9			19

Net income available to common shareholders	$	366		$	292		$	346		$	362		$	328		$	416		$	309		$	383


	Basel III Transitional									Basel I
*Regulatory Capital Data ($ in millions)^(a)***
CET1 capital	$	11,574		$	11,582		$	11,543			N/A			N/A			N/A			N/A			N/A
Additional tier I capital		1,340			1,340			1,339			N/A			N/A			N/A			N/A			N/A

Tier I capital	$	12,914		$	12,922		$	12,882		$	12,764		$	12,661		$	12,644		$	12,182		$	12,094
Tier II capital		3,935			3,909			4,112			4,131			4,103			4,101			4,174			4,337

Total regulatory capital	$	16,849		$	16,831		$	16,994		$	16,895		$	16,764		$	16,745		$	16,356		$	16,431

Risk-weighted assets	$	123,140	^(b)	$	122,986	^(b)	$	121,310	^(b)	$	117,878		$	116,917		$	117,117		$	116,622		$	115,969

CET1 capital ratio		9.40	%^(b)		9.42	%^(b)		9.52	%^(b)		N/A			N/A			N/A			N/A			N/A
Tier I risk-based capital ratio		10.49	%^(b)		10.51	%^(b)		10.62	%^(b)		10.83	%		10.83	%		10.80	%		10.45	%		10.43	%
Total risk-based capital ratio		13.68	%^(b)		13.69	%^(b)		14.01	%^(b)		14.33	%		14.34	%		14.30	%		14.02	%		14.17	%
Tier I leverage ratio		9.38	%		9.44	%		9.59	%		9.66	%		9.82	%		9.86	%		9.71	%		9.73	%
Tier I common equity ratio		N/A			N/A			N/A			9.65	%^(c)		9.64	%^(c)		9.61	%^(c)		9.51	%^(c)		9.45	%^(c)
CET1 capital ratio (fully phased-in)		9.30	%^(b)(c)		9.31	%^(b)(c)		9.41	%^(b)(c)		N/A			N/A			N/A			N/A			N/A

(a)

Current period regulatory capital data and ratios are estimated.

(b)

Under the banking agencies’ risk-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 together, along with the measure for market risk, resulting in the Bancorp’s total risk-weighted assets.

(c)

This ratio has been included herein to facilitate a greater understanding of the Bancorp’s capital structure and financial condition. This is a Non-GAAP measure.

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Quarterly Data	As of
	September 2015			June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013
Balance Sheet ($ in millions, except share data)
Assets
Cash and due from banks	$	2,455		$	2,785		$	2,920		$	3,091		$	3,125		$	3,312		$	3,153		$	3,178
Available-for-sale and other securities		28,799			27,987			26,409			22,408			22,912			22,814			20,749			18,597
Held-to-maturity securities		157			157			177			187			191			194			195			208
Trading securities		374			370			392			360			389			361			347			343
Other short-term investments		1,994			3,451			4,919			7,914			3,637			2,386			2,202			5,116

Total cash and securities		33,779			34,750			34,817			33,960			30,254			29,067			26,646			27,442
Loans held for sale		994			995			724			1,261			641			682			780			944
Portfolio loans and leases		93,574			92,703			91,244			90,084			90,624			90,484			89,705			88,614

Total loans and leases		94,568			93,698			91,968			91,345			91,265			91,166			90,485			89,558
Allowance for loan and lease losses		(1,261	)		(1,293	)		(1,300	)		(1,322	)		(1,414	)		(1,458	)		(1,483	)		(1,582	)
Bank premises and equipment		2,264			2,298			2,433			2,465			2,467			2,491			2,528			2,531
Operating lease equipment		680			670			695			728			732			667			714			730
Goodwill		2,416			2,416			2,416			2,416			2,416			2,416			2,416			2,416
Intangible assets		13			13			14			15			16			17			18			19
Servicing rights		757			854			789			858			935			931			975			971
Other real estate owned^(a)		149			163			187			217			242			266			291			299
Other assets		8,553			8,089			8,451			8,024			7,275			6,999			7,064			8,059

Total assets	$	141,918		$	141,658		$	140,470		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443

Liabilities
Deposits:
Demand	$	34,832		$	35,449		$	35,343		$	34,809		$	32,258		$	32,140		$	31,234		$	32,634
Interest checking		24,832			27,074			27,191			26,800			24,930			24,744			25,472			25,875
Savings		14,632			14,976			15,355			15,051			15,355			16,087			16,867			17,045
Money market		18,887			17,900			18,105			17,083			16,199			14,216			13,208			11,644
Foreign office		754			728			811			1,114			1,577			1,418			1,922			1,976
Other time		4,041			4,050			4,044			3,960			3,856			3,724			3,660			3,530
Certificates—$100,000 and over		2,915			2,846			2,566			2,895			3,117			3,623			4,511			6,571

Total deposits		100,893			103,023			103,415			101,712			97,292			95,952			96,874			99,275
Federal funds purchased		132			126			200			144			148			153			268			284
Other short-term borrowings		4,904			4,136			1,413			1,556			2,730			3,146			2,717			1,380
Other liabilities		4,604			5,214			5,483			4,662			4,239			3,842			3,698			5,245
Long-term debt		15,527			13,521			14,055			14,967			14,336			13,961			11,233			9,633

Total liabilities	$	126,060		$	126,020		$	124,566		$	123,041		$	118,745		$	117,054		$	114,790		$	115,817

Equity
Common and preferred equity	$	17,867		$	17,578		$	17,421		$	17,169		$	16,889		$	16,661		$	16,122		$	15,802
Net unrealized gains:
Available-for-sale securities		528			327			608			475			338			410			231			121
Qualifying cash flow hedges		58			29			47			23			12			22			16			13
Accumulated other comprehensive income related to employee benefit plans		(64	)		(65	)		(67	)		(69	)		(49	)		(50	)		(51	)		(52	)
Treasury stock, at cost		(2,563	)		(2,264	)		(2,145	)		(1,972	)		(1,786	)		(1,574	)		(1,492	)		(1,295	)

Total Bancorp shareholders’ equity		15,826			15,605			15,864			15,626			15,404			15,469			14,826			14,589
Noncontrolling interests		32			33			40			39			39			39			38			37

Total equity	$	15,858		$	15,638		$	15,904		$	15,665		$	15,443		$	15,508		$	14,864		$	14,626

Total liabilities and equity	$	141,918		$	141,658		$	140,470		$	138,706		$	134,188		$	132,562		$	129,654		$	130,443

Share Data
Preferred shares outstanding—Series H		24,000			24,000			24,000			24,000			24,000			24,000			24,000			24,000
Preferred shares outstanding—Series I		18,000			18,000			18,000			18,000			18,000			18,000			18,000			18,000
Preferred shares outstanding—Series J		12,000			12,000			12,000			12,000			12,000			12,000			—			—
Common shares outstanding, excluding treasury		795,439,309			810,054,148			815,190,210			824,046,952			834,261,897			844,488,849			847,568,728			855,305,745
Treasury shares held		128,453,272			113,838,433			108,702,371			99,845,629			89,630,684			79,403,732			76,323,853			68,586,836

(a)

Includes OREO related to government insured loans. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure,” government guaranteed loans meeting certain criteria were reclassified to other receivables rather than OREO upon foreclosure.

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Quarterly Data
	Three Months Ended
	September 2015			June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013
Average Balance Sheet ($ in millions, except share data)
Assets
Interest-earning assets:
Loans and leases	$	94,329		$	92,739		$	91,659		$	91,581		$	91,428		$	91,241			90,238		$	88,865
Taxable securities		28,251			27,344			23,102			22,364			22,594			21,706			20,385			18,383
Tax exempt securities		52			59			59			64			50			52			46			48
Other short-term investments		1,799			3,160			5,877			5,176			2,283			2,182			2,509			4,612

Total interest-earning assets		124,431			123,302			120,697			119,185			116,355			115,181			113,178			111,908
Cash and due from banks		2,503			2,636			2,830			3,008			2,862			2,847			2,850			2,956
Other assets		15,097			15,354			15,446			14,800			14,461			14,417			14,478			14,986
Allowance for loan and lease losses		(1,292	)		(1,300	)		(1,322	)		(1,413	)		(1,458	)		(1,480	)		(1,576	)		(1,671	)

Total assets	$	140,739		$	139,992		$	137,651		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179

Liabilities
Interest-bearing liabilities:
Interest checking	$	25,590		$	26,894		$	26,885		$	25,478		$	24,926		$	25,222		$	25,911		$	24,650
Savings		14,868			15,156			15,174			15,173			15,759			16,509			16,903			17,323
Money market		18,253			18,071			17,492			17,023			15,222			13,942			12,439			11,285
Foreign office		718			955			861			1,439			1,663			2,200			2,017			1,717
Other time		4,057			4,074			4,022			3,936			3,800			3,693			3,616			3,529
Certificates—$100,000 and over		2,924			2,558			2,683			2,998			3,339			3,840			5,576			7,456
Other deposits		222			—			—			—			—			—			—			—
Federal funds purchased		1,978			326			172			161			520			606			547			301
Other short-term borrowings		1,897			1,705			1,602			1,481			1,973			2,234			1,808			2,177
Long-term debt		14,697			13,773			14,448			14,855			13,955			12,524			10,313			9,135

Total interest-bearing liabilities		85,204			83,512			83,339			82,544			81,157			80,770			79,130			77,573
Demand deposits		35,231			35,384			33,760			33,301			31,790			31,275			30,626			30,765
Other liabilities		4,458			5,215			4,693			4,052			3,749			3,724			4,274			5,045

Total liabilities		124,893			124,111			121,792			119,897			116,696			115,769			114,030			113,383
Equity		15,846			15,881			15,859			15,683			15,524			15,196			14,900			14,796

Total liabilities and equity	$	140,739		$	139,992		$	137,651		$	135,580		$	132,220		$	130,965		$	128,930		$	128,179

Average loans and leases (excluding held for sale)	$	93,373		$	92,173		$	90,508		$	91,041		$	90,799		$	90,549		$	89,530		$	87,895
Share Data
Average common shares outstanding - basic		795,792,825			803,965,057			810,209,585			819,057,247			829,391,505			838,492,046			845,860,065			868,077,089
Average common shares outstanding - diluted		805,022,588			812,842,540			818,672,259			827,831,317			838,324,420			848,245,111			857,923,596			877,510,663

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Quarterly Data	Three Months Ended
	September 2015			June 2015			March 2015			December 2014			September 2014			June 2014			March 2014			December 2013
End of Period Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	42,970		$	42,812		$	42,062		$	40,801		$	41,111		$	41,364		$	40,692		$	39,347
Commercial mortgage loans		7,084			7,165			7,210			7,410			7,566			7,807			7,959			8,069
Commercial construction loans		3,101			2,709			2,303			2,071			1,704			1,426			1,220			1,041
Commercial leases		3,901			3,882			3,787			3,721			3,555			3,572			3,577			3,626

Subtotal - commercial		57,056			56,568			55,362			54,003			53,936			54,169			53,448			52,083
Consumer:
Residential mortgage loans		14,197			13,792			13,258			13,582			13,520			13,250			13,275			13,570
Home equity		8,460			8,591			8,714			8,886			8,987			9,056			9,125			9,246
Automobile loans		11,829			11,914			11,873			12,037			12,121			12,050			12,088			11,984
Credit card		2,330			2,278			2,291			2,401			2,317			2,261			2,177			2,294
Other consumer loans and leases		696			555			470			436			384			380			372			381

Subtotal - consumer		37,512			37,130			36,606			37,342			37,329			36,997			37,037			37,475

Total loans and leases	$	94,568		$	93,698		$	91,968		$	91,345		$	91,265		$	91,166		$	90,485		$	89,558

Average Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	43,162		$	42,554		$	41,462		$	41,313		$	41,525		$	41,451		$	40,409		$	38,846
Commercial mortgage loans		7,038			7,149			7,248			7,482			7,637			7,886			7,983			8,051
Commercial construction loans		2,966			2,549			2,198			1,911			1,565			1,364			1,118			955
Commercial leases		3,847			3,776			3,716			3,601			3,576			3,556			3,607			3,579

Subtotal - commercial		57,013			56,028			54,624			54,307			54,303			54,257			53,117			51,431
Consumer:
Residential mortgage loans		13,976			13,375			13,515			13,526			13,342			13,202			13,304			13,544
Home equity		8,521			8,655			8,802			8,937			9,009			9,101			9,194			9,296
Automobile loans		11,881			11,902			11,933			12,073			12,105			12,070			12,023			12,019
Credit card		2,277			2,296			2,321			2,324			2,295			2,232			2,230			2,202
Other consumer loans and leases		661			483			464			414			374			379			370			373

Subtotal - consumer		37,316			36,711			37,035			37,274			37,125			36,984			37,121			37,434

Total average loans and leases	$	94,329		$	92,739		$	91,659		$	91,581		$	91,428		$	91,241		$	90,238		$	88,865

Asset Quality ($ in millions)
Nonaccrual portfolio loans and leases	$	205		$	217		$	231		$	269		$	305		$	323		$	398		$	387
Nonaccrual loans held for sale		1			1			2			24			4			5			3			6
Restructured loans - (nonaccrual) held for sale		1			—			—			15			3			—			—			—
Restructured loans and leases (nonaccrual) portfolio		253			258			295			310			315			317			335			364
OREO and other repossessed property^(a)		148			151			165			165			176			192			213			229

Total nonperforming assets	$	608		$	627		$	693		$	783		$	803		$	837		$	949		$	986

Ninety days past due loans and leases	$	70		$	70		$	78		$	87		$	87		$	94		$	94		$	103

Nonperforming Loans ($ in millions)^{(nonaccrual plus renegotiated)}
Commercial and industrial loans and leases	$	171		$	182		$	200		$	241		$	267		$	249		$	301		$	287
Commercial mortgage loans		110			106			126			146			121			141			147			146
Commercial construction loans		6			—			1			2			4			10			19			31
Residential mortgage loans		54			62			70			94			111			117			141			165
Home equity		82			88			90			93			85			93			94			93
Other consumer loans and leases		37			38			41			42			39			35			34			35

Total nonperforming loans and leases (including held for sale)	$	460		$	476		$	528		$	618		$	627		$	645		$	736		$	757

Credit Charge-Offs ($ in millions)
Losses charged-off	($	209	)	($	112	)	($	115	)	($	215	)	($	146	)	($	127	)	($	190	)	($	183	)
Recoveries of losses previously charged-off		21			26			24			24			31			26			22			35

Net losses charged-off	($	188	)	($	86	)	($	91	)	($	191	)	($	115	)	($	101	)	($	168	)	($	148	)

(a)

Excludes OREO related to government insured loans. The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure,” government guaranteed loans meeting certain criteria will be reclassified to other receivables rather than OREO upon foreclosure.

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