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

Attached files

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8-K - FORM 8-K - FIFTH THIRD BANCORP	d158907d8k.htm
EX-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d158907dex991.htm
EX-99.2 - EX-99.2 - FIFTH THIRD BANCORP	d158907dex992.htm

Exhibit 99.3

April 2016

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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


Sameer Gokhale		Jim Eglseder
SVP / Senior Director / Investor Relations		SVP / Director / Investor Relations
(513) 534-2219		(513) 534-8424

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Quarterly Data


	Three Months Ended
	March		December		September		June		March		December		September		June
	2016		2015		2015		2015		2015		2014		2014		2014
Ratios (percent)
Return on average assets		0.93		1.83		1.07		0.90		1.06		1.13		1.02		1.34
Return on average common equity		8.3		17.2		10.0		8.1		9.7		10.0		9.2		11.9
Average total Bancorp shareholders’ equity as a percent of average assets		11.57		11.26		11.24		11.32		11.50		11.54		11.72		11.58
Net interest margin^(a)		2.91		2.85		2.89		2.90		2.86		2.96		3.10		3.15
Efficiency^(a)		63.8		48.0		58.2		65.4		62.3		59.6		62.1		58.2
Net losses charged-off as a percent of average portfolio loansand leases		0.42		0.34		0.80		0.37		0.41		0.83		0.50		0.45
ALLL as a percent of portfolio loans and leases		1.38		1.37		1.35		1.39		1.42		1.47		1.56		1.61
Allowance for credit losses as a percent of portfolio loansand leases		1.54		1.52		1.49		1.54		1.57		1.62		1.71		1.77
Nonperforming portfolio assets as a percent of portfolio loansand leases and OREO^(b)		0.88		0.70		0.65		0.67		0.76		0.82		0.88		0.92
Allowance for loan and lease losses as a percent ofnonperforming assets^(b)		157		197		208		206		188		178		178		175
Allowance for credit losses as a percent of nonperformingassets^(b)		174		218		230		228		207		196		195		192

Common Share Data
Earnings per share - basic	$	0.40	$	0.80	$	0.46	$	0.36	$	0.42	$	0.44	$	0.39	$	0.49
Earnings per share - diluted	$	0.40	$	0.79	$	0.45	$	0.36	$	0.42	$	0.43	$	0.39	$	0.49
Cash dividends per common share		0.13		0.13		0.13		0.13		0.13		0.13		0.13		0.13
Book value per share		19.46		18.48		18.22		17.62		17.83		17.35		16.87		16.74

Common shares outstanding, excluding treasury		770,470,768		785,080,314		795,439,309		810,054,148		815,190,210		824,046,952		834,261,897		844,488,849
Market price per share:
High	$	19.61	$	21.06	$	21.71	$	21.69	$	20.21	$	20.69	$	21.75	$	23.19
Low		13.94		18.28		18.23		18.91		17.22		17.74		19.52		20.03
End of period		16.69		20.10		18.91		20.82		18.85		20.38		20.02		21.35

Supplemental Data
Common dividends declared ($ in millions)	$	100	$	102	$	103	$	105	$	106	$	107	$	108	$	110
Full-time equivalent employees		18,200		18,261		18,311		18,527		18,471		18,351		18,503		18,732
Banking centers		1,241		1,254		1,295		1,299		1,303		1,302		1,308		1,309
ATMs		2,556		2,593		2,650		2,630		2,637		2,638		2,639		2,619

(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
	March		December		September		June		March		December		September		June
	2016		2015		2015		2015		2015		2014		2014		2014
Income Statement ($ in millions)
Interest income (taxable equivalent)	$	1,044	$	1,035	$	1,031	$	1,008	$	975	$	1,016	$	1,023	$	1,013
Interest expense		135		131		125		116		123		128		115		108

Net interest income (taxable equivalent)		909		904		906		892		852		888		908		905
Provision for loan and lease losses		119		91		156		79		69		99		71		76
Noninterest income:
Service charges on deposits		137		144		145		139		135		142		145		139
Investment advisory revenue		102		102		103		105		108		100		103		102
Corporate banking revenue		102		104		104		113		63		120		100		107
Mortgage banking net revenue		78		74		71		117		86		61		61		78
Card and processing revenue		79		77		77		77		71		76		75		76
Other noninterest income		136		602		213		1		163		150		33		226
Securities gains, net		3		1		—		4		4		4		3		8

Total noninterest income		637		1,104		713		556		630		653		520		736
Noninterest expense:
Salaries, wages and incentives		403		386		387		383		369		366		357		368
Employee benefits		100		74		72		78		99		79		75		79
Net occupancy expense		77		83		77		83		79		77		78		79
Technology and communications		56		59		56		54		55		54		53		52
Equipment expense		30		32		31		31		31		30		30		30
Card and processing expense		35		40		40		38		36		36		37		37
Other noninterest expense		285		289		280		280		254		276		258		309

Total noninterest expense		986		963		943		947		923		918		888		954
Income before income taxes (taxable equivalent)		441		954		520		422		490		524		469		611
Taxable equivalent adjustment		6		5		5		5		5		5		5		5

Income before income taxes		435		949		515		417		485		519		464		606
Applicable income tax expense		108		292		134		108		124		134		124		167

Net income	$	327	$	657	$	381	$	309	$	361	$	385	$	340	$	439
Less: Net income attributable to noncontrolling interests		—		—		—		(6)		—		—		—		—

Net income attributable to Bancorp	$	327	$	657	$	381	$	315	$	361	$	385	$	340	$	439
Dividends on preferred stock		15		23		15		23		15		23		12		23

Net income available to common shareholders	$	312	$	634	$	366	$	292	$	346	$	362	$	328	$	416


*Regulatory Capital Data ($ in millions)^(a)***	Basel III Transitional										Basel I
CET1 capital	$	11,914	$	11,917	$	11,574	$	11,582	$	11,543		N/A		N/A		N/A
Additional tier I capital		1,330		1,343		1,340		1,340		1,339		N/A		N/A		N/A

Tier I capital	$	13,244	$	13,260	$	12,914	$	12,922	$	12,882	$	12,764	$	12,661	$	12,644
Tier II capital		4,553		3,874		3,935		3,909		4,112		4,131		4,103		4,101

Total regulatory capital	$	17,797	$	17,134	$	16,849	$	16,831	$	16,994	$	16,895	$	16,764	$	16,745

Risk-weighted assets	$	121,432^(b)	$	121,290^(b)	$	123,148^(b)	$	122,986^(b)	$	121,310^(b)	$	117,878	$	116,917	$	117,117

CET1 capital ratio		9.81%^(b)		9.82%^(b)		9.40%^(b)		9.42%^(b)		9.52%^(b)		N/A		N/A		N/A
Tier I risk-based capital ratio		10.91%^(b)		10.93%^(b)		10.49%^(b)		10.51%^(b)		10.62%^(b)		10.83%		10.83%		10.80%
Total risk-based capital ratio		14.66%^(b)		14.13%^(b)		13.68%^(b)		13.69%^(b)		14.01%^(b)		14.33%		14.34%		14.30%
Tier I leverage ratio		9.57%		9.54%		9.38%		9.44%		9.59%		9.66%		9.82%		9.86%

Tier I common equity ratio		N/A		N/A		N/A		N/A		N/A		9.65%^(c)		9.64%^(c)		9.61%^(c)
CET1 capital ratio (fully phased-in)		9.72%^(b) (c)		9.72%^(b)(c)		9.30%^(b)(c)		9.31%^(b)(c)		9.41%^(b)(c)		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
	March		December		September		June		March		December		September		June
	2016		2015		2015		2015		2015		2014		2014		2014
Balance Sheet ($ in millions, except share data)
Assets
Cash and due from banks	$	2,298	$	2,540	$	2,455	$	2,785	$	2,920	$	3,091	$	3,125	$	3,312
Available-for-sale and other securities		29,891		29,044		28,799		27,987		26,409		22,408		22,912		22,814
Held-to-maturity securities		64		70		157		157		177		187		191		194
Trading securities		405		386		374		370		392		360		389		361
Other short-term investments		1,778		2,671		1,994		3,451		4,919		7,914		3,637		2,386

Total cash and securities		34,436		34,711		33,779		34,750		34,817		33,960		30,254		29,067
Loans held for sale		803		903		994		995		724		1,261		641		682
Portfolio loans and leases		93,605		92,582		93,574		92,703		91,244		90,084		90,624		90,484

Total loans and leases		94,408		93,485		94,568		93,698		91,968		91,345		91,265		91,166
Allowance for loan and lease losses		(1,295)		(1,272)		(1,261)		(1,293)		(1,300)		(1,322)		(1,414)		(1,458)
Bank premises and equipment		2,185		2,239		2,264		2,298		2,433		2,465		2,467		2,491
Operating lease equipment		738		707		680		670		695		728		732		667
Goodwill		2,416		2,416		2,416		2,416		2,416		2,416		2,416		2,416
Intangible assets		11		12		13		13		14		15		16		17
Servicing rights		685		785		757		854		789		858		935		931
Other real estate owned		119		137		149		163		187		217^(a)		242^(a)		266^(a)
Other assets		8,727		7,828		8,518		8,059		8,418		7,988		7,239		6,963

Total assets	$	142,430	$	141,048	$	141,883	$	141,628	$	140,437	$	138,670	$	134,152	$	132,526

Liabilities
Deposits:
Demand	$	35,858	$	36,267	$	34,832	$	35,449	$	35,343	$	34,809	$	32,258	$	32,140
Interest checking		25,182		26,768		24,832		27,074		27,191		26,800		24,930		24,744
Savings		14,738		14,601		14,632		14,976		15,355		15,051		15,355		16,087
Money market		19,377		18,494		18,887		17,900		18,105		17,083		16,199		14,216
Foreign office		441		464		754		728		811		1,114		1,577		1,418
Other time		4,049		4,019		4,041		4,050		4,044		3,960		3,856		3,724
Certificates - $100,000 and over		2,830		2,592		2,915		2,846		2,566		2,895		3,117		3,623

Total deposits		102,475		103,205		100,893		103,023		103,415		101,712		97,292		95,952
Federal funds purchased		134		151		132		126		200		144		148		153
Other short-term borrowings		3,523		1,507		4,904		4,136		1,413		1,556		2,730		3,146
Other liabilities		4,638		4,505		4,604		5,214		5,483		4,662		4,239		3,842
Long-term debt		15,305		15,810		15,492		13,491		14,022		14,931		14,300		13,925

Total liabilities	$	126,075	$	125,178	$	126,025	$	125,990	$	124,533	$	123,005	$	118,709	$	117,018

Equity
Common and preferred equity	$	18,638	$	18,406	$	17,867	$	17,578	$	17,421	$	17,169	$	16,889	$	16,661
Net unrealized gains:
Available-for-sale securities		685		238		528		327		608		475		338		410
Qualifying cash flow hedges		61		22		58		29		47		23		12		22
Accumulated other comprehensive income related to employee benefit plans		(62)		(63)		(64)		(65)		(67)		(69)		(49)		(50)
Treasury stock, at cost		(2,999)		(2,764)		(2,563)		(2,264)		(2,145)		(1,972)		(1,786)		(1,574)

Total Bancorp shareholders’ equity		16,323		15,839		15,826		15,605		15,864		15,626		15,404		15,469
Noncontrolling interests		32		31		32		33		40		39		39		39

Total equity	$	16,355	$	15,870	$	15,858	$	15,638	$	15,904	$	15,665	$	15,443	$	15,508

Total liabilities and equity	$	142,430	$	141,048	$	141,883	$	141,628	$	140,437	$	138,670	$	134,152	$	132,526

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		12,000		12,000
Common shares outstanding, excluding treasury		770,470,768		785,080,314		795,439,309		810,054,148		815,190,210		824,046,952		834,261,897		844,488,849
Treasury shares held		153,421,813		138,812,267		128,453,272		113,838,433		108,702,371		99,845,629		89,630,684		79,403,732

(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
	March		December		September		June		March		December		September		June
	2016		2015		2015		2015		2015		2014		2014		2014
Average Balance Sheet ($ in millions, except share data)
Assets
Interest-earning assets:
Loans and leases	$	94,078	$	94,587	$	94,329	$	92,739	$	91,659	$	91,581		91,428	$	91,241
Taxable securities		29,619		28,951		28,251		27,344		23,102		22,364		22,594		21,706
Tax exempt securities		78		52		52		59		59		64		50		52
Other short-term investments		1,876		2,253		1,799		3,160		5,877		5,176		2,283		2,182

Total interest-earning assets		125,651		125,843		124,431		123,302		120,697		119,185		116,355		115,181
Cash and due from banks		2,335		2,466		2,503		2,636		2,830		3,008		2,862		2,847
Other assets		14,869		14,925		15,064		15,322		15,412		14,764		14,425		14,384
Allowance for loan and lease losses		(1,273)		(1,261)		(1,292)		(1,300)		(1,322)		(1,413)		(1,458)		(1,480)

Total assets	$	141,582	$	141,973	$	140,706	$	139,960	$	137,617	$	135,544	$	132,184	$	130,932
Liabilities
Interest-bearing liabilities:
Interest checking deposits	$	25,740	$	25,296	$	25,590	$	26,894	$	26,885	$	25,478	$	24,926	$	25,222
Savings deposits		14,601		14,615		14,868		15,156		15,174		15,173		15,759		16,509
Money market deposits		18,655		18,775		18,253		18,071		17,492		17,023		15,222		13,942
Foreign office deposits		483		736		718		955		861		1,439		1,663		2,200
Other time deposits		4,035		4,052		4,057		4,074		4,022		3,936		3,800		3,693
Certificates - $100,000 and over		2,815		3,305		2,924		2,558		2,683		2,998		3,339		3,840
Other deposits		—		7		222		—		—		—		—		—
Federal funds purchased		608		1,182		1,978		326		172		161		520		606
Other short-term borrowings		3,564		1,675		1,897		1,705		1,602		1,481		1,973		2,234
Long-term debt		14,949		15,738		14,664		13,741		14,414		14,819		13,919		12,491

Total interest-bearing liabilities		85,450		85,381		85,171		83,480		83,305		82,508		81,121		80,737
Demand deposits		35,201		36,254		35,231		35,384		33,760		33,301		31,790		31,275
Other liabilities		4,524		4,325		4,458		5,215		4,693		4,052		3,749		3,724

Total liabilities		125,175		125,960		124,860		124,079		121,758		119,861		116,660		115,736
Equity		16,407		16,013		15,846		15,881		15,859		15,683		15,524		15,196

Total liabilities and equity	$	141,582	$	141,973	$	140,706	$	139,960	$	137,617	$	135,544	$	132,184	$	130,932

Average loans and leases (excluding held for sale)	$	93,275	$	93,594	$	93,373	$	92,173	$	90,508	$	91,041	$	90,799	$	90,549

Share Data
Average common shares outstanding - basic		773,564,178		784,855,006		795,792,825		803,965,057		810,209,585		819,057,247		829,391,505		838,492,046
Average common shares outstanding - diluted		778,392,453		794,481,388		805,022,588		812,842,540		818,672,259		827,831,317		838,324,420		848,245,111

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Quarterly Data


	Three Months Ended
	March		December		September		June		March		December		September		June
	2016		2015		2015		2015		2015		2014		2014		2014
End of Period Loans and Leases ($ in millions) ^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	43,441	$	42,151	$	42,970	$	42,812	$	42,062	$	40,801	$	41,111	$	41,364
Commercial mortgage loans		6,874		6,991		7,084		7,165		7,210		7,410		7,566		7,807
Commercial construction loans		3,428		3,214		3,101		2,709		2,303		2,071		1,704		1,426
Commercial leases		3,956		3,854		3,901		3,882		3,787		3,721		3,555		3,572

Total commercial loans and leases		57,699		56,210		57,056		56,568		55,362		54,003		53,936		54,169
Consumer:
Residential mortgage loans		14,563		14,424		14,197		13,792		13,258		13,582		13,520		13,250
Home equity		8,131		8,336		8,460		8,591		8,714		8,886		8,987		9,056
Automobile loans		11,129		11,497		11,829		11,914		11,873		12,037		12,121		12,050
Credit card		2,235		2,360		2,330		2,278		2,291		2,401		2,317		2,261
Other consumer loans and leases		651		658		696		555		470		436		384		380

Total consumer loans and leases		36,709		37,275		37,512		37,130		36,606		37,342		37,329		36,997

Total loans and leases	$	94,408	$	93,485	$	94,568	$	93,698	$	91,968	$	91,345	$	91,265	$	91,166

Average Loans and Leases ($ in millions) ^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	43,127	$	43,175	$	43,162	$	42,554	$	41,462	$	41,313	$	41,525	$	41,451
Commercial mortgage loans		6,908		7,053		7,038		7,149		7,248		7,482		7,637		7,886
Commercial construction loans		3,297		3,141		2,966		2,549		2,198		1,911		1,565		1,364
Commercial leases		3,875		3,841		3,847		3,776		3,716		3,601		3,576		3,556

Total commercial loans and leases		57,207		57,210		57,013		56,028		54,624		54,307		54,303		54,257
Consumer:
Residential mortgage loans		14,405		14,315		13,976		13,375		13,515		13,526		13,342		13,202
Home equity		8,241		8,394		8,521		8,655		8,802		8,937		9,009		9,101
Automobile loans		11,285		11,674		11,881		11,902		11,933		12,073		12,105		12,070
Credit card		2,277		2,320		2,277		2,296		2,321		2,324		2,295		2,232
Other consumer loans and leases		663		674		661		483		464		414		374		379

Total consumer loans and leases		36,871		37,377		37,316		36,711		37,035		37,274		37,125		36,984

Total average loans and leases	$	94,078	$	94,587	$	94,329	$	92,739	$	91,659	$	91,581	$	91,428	$	91,241

Asset Quality ($ in millions)
Nonaccrual portfolio loans and leases	$	419	$	228	$	205	$	217	$	231	$	269	$	305	$	323
Nonaccrual loans held for sale		3		1		1		1		2		24		4		5
Nonaccrual restructured loans held for sale		2		11		1		—		—		15		3		—
Nonaccrual portfolio restructured loans and leases		282		278		253		258		296		310		315		317
OREO and other repossessed property^(a)		124		141		148		151		164		165		176		192

Total nonperforming assets	$	830	$	659	$	608	$	627	$	693	$	783	$	803	$	837

Ninety days past due loans and leases	$	73	$	75	$	70	$	70	$	78	$	87	$	87	$	94

Nonperforming Loans ($ in millions)^{(nonaccrual plus renegotiated)}
Commercial and industrial loans and leases	$	465	$	259	$	171	$	182	$	200	$	241	$	267	$	249
Commercial mortgage loans		83		93		110		106		126		146		121		141
Commercial construction loans		—		—		6		—		1		2		4		10
Residential mortgage loans		44		51		54		62		70		94		111		117
Home equity		80		79		82		88		90		93		85		93
Other consumer loans and leases		34		36		37		38		41		42		39		35

Total nonperforming loans and leases (including held for sale)	$	706	$	518	$	460	$	476	$	528	$	618	$	627	$	645

Credit Charge-Offs ($ in millions)
Total losses charged-off	($	116)	($	105)	($	209)	($	112)	($	115)	($	215)	($	146)	($	127)
Total recoveries of losses previously charged-off		20		25		21		26		24		24		31		26

Total net losses charged-off	($	96)	($	80)	($	188)	($	86)	($	91)	($	191)	($	115)	($	101)

(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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