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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2005

Commission File Number 0-8076

FIFTH THIRD BANCORP

(Exact name of Registrant as specified in its charter)

Fifth Third Center

Cincinnati, Ohio 45263

(Address of principal executive offices)

Registrant’s telephone number, including area code: (513) 534-5300

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  X        No          

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes  X        No          

There were 555,028,260 shares of the Registrant’s Common Stock, without par value, outstanding as of April 30, 2005.

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FIFTH THIRD BANCORP

INDEX

This report may contain forward-looking statements about the Registrant and/or the company as combined with acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. This report may contain certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Registrant and/or the combined company including statements preceded by, followed by or that include the words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the states in which the Registrant, one or more acquired entities and/or the combined company do business, are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) changes and trends in the securities markets; (7) legislative or regulatory changes or actions, or significant litigation, adversely affect the Registrant, one or more acquired entities and/or the combined company or the businesses in which the Registrant, one or more acquired entities and/or the combined company are engaged; (8) difficulties in combining the operations of acquired entities and (9) the impact of reputational risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity. The Registrant undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this report.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2)

The following is management’s discussion and analysis of certain significant factors that have affected Fifth Third Bancorp’s (“the Registrant” or “Fifth Third”) financial condition and results of operations during the periods included in the Condensed Consolidated Financial Statements, which are a part of this filing.

TABLE 1: Selected Financial Data

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Overview

This overview of management’s discussion and analysis highlights selected information in the financial results of the Registrant and may not contain all of the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources and critical accounting policies and estimates, you should carefully read this entire document. Each of these items could have an impact on the Registrant’s financial condition and results of operations.

The Registrant is a diversified financial services company headquartered in Cincinnati, Ohio. The Registrant has $102.7 billion in assets, operates 17 affiliates with 1,092 full-service Banking Centers including 130 Bank Mart^® locations open seven days a week inside select grocery stores and 1,988 Jeanie^® ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia and Pennsylvania. The financial strength of the Registrant’s largest banks, Fifth Third Bank and Fifth Third Bank (Michigan), continues to be recognized by rating agencies with deposit ratings of AA- and Aa1 from Standard & Poor’s and Moody’s, respectively. Additionally, the Registrant is recognized by Moody’s with one of the highest senior debt ratings for any U.S. bank holding company of Aa2. The Registrant operates four main businesses: Commercial Banking, Retail Banking, Investment Advisors and Fifth Third Processing Solutions.

The Registrant’s revenues are fairly evenly dependent on net interest income and noninterest income. For the three months ended March 31, 2005, net interest income, on a fully taxable equivalent (“FTE”) basis, and noninterest income provided 56% and 44% of total revenue, respectively. Changes in interest rates, credit quality, economic trends and the capital markets are primary factors that drive the performance of the Registrant. As discussed later in the Risk Management section, risk identification, measurement, monitoring, control and reporting are important to the management of risk and to strong financial performance and capital strength of the Registrant.

Net interest income is the difference between interest income earned on assets such as loans, leases and securities, and interest expense paid on liabilities such as deposits and borrowings. Net interest income is affected by the general level of interest rates, changes in interest rates and by changes in the amount and composition of interest-earning assets and interest-bearing liabilities. Generally, the rates of interest the Registrant earns on its assets and owes on its liabilities are established for a period of time. The change in market interest rates over time exposes the Registrant to interest rate risk and potential adverse changes in net interest income. The Registrant manages this risk by continually analyzing and adjusting the composition of its assets and liabilities based on their payment streams and interest rates, the timing of their maturities and their sensitivity to changes in market interest rates. Additionally, in the ordinary course of business, the Registrant enters into certain derivative transactions as part of its overall strategy to manage its interest rate and prepayment risks.

The Registrant is also exposed to the risk of losses on its loan and lease portfolio as a result of changing expected cash flows caused by loan defaults, inadequate collateral or changes in prepayment rates, among other factors.

Noninterest income is derived primarily from electronic funds transfer (“EFT”) and merchant transaction processing fees, fiduciary and investment management fees, banking fees and service charges, mortgage banking revenue and operating lease revenue.

Net interest income, net interest margin, net interest rate spread and the efficiency ratio are presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations on an FTE basis. The FTE basis adjusts for the tax-favored status of income from certain loans and securities held by the Registrant that are not taxable for federal income tax purposes. The Registrant believes this to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The Registrant completed its acquisition of Franklin Financial Corporation (“Franklin Financial”) in June of 2004 and has expanded its presence in the Nashville market. As of March 31, 2005, the Registrant has 17 banking centers within this market. In August of 2004, the Registrant announced an agreement to acquire First National Bankshares of Florida, Inc., (“First National”) a bank holding company with $5.6 billion in assets located primarily in Orlando, Tampa, Sarasota, Naples and Fort Myers. The acquisition was closed on January 1, 2005 and as previously announced the Registrant completed its conversion activity associated with this acquisition in the first quarter. As a result of this transaction the Registrant’s Florida affiliate has 85 full-service locations.

The Registrant’s net income was $405 million in the first quarter of 2005, a six percent decrease compared to $430 million for the same period last year. Earnings per diluted share were $.72 for the first quarter, a four percent decrease from $.75 for the same period last year. The Registrant’s quarterly dividend increased to $.35 per common share from $.32, an increase of nine percent on a year-over-year basis.

Net interest income was flat compared to the same period last year. The net interest margin increased from 3.35% in the fourth quarter of 2004 to 3.38% in the first quarter of 2005 primarily due to the balance sheet repositioning activities undertaken at the end of 2004. Noninterest income declined three percent primarily due to the decline in operating lease income and fewer gains on sales of securities. Noninterest expense increased nine percent versus the same period last year, primarily due to continued investment in additional salespeople, de-novo banking center expansions and the acquisition of First National.

The Registrant continues to invest in the geographic areas within its footprint that offer the best growth prospects as it believes this is the most cost efficient method of expansion within its largest affiliate markets. Additionally, the Registrant opened its first banking center in Pittsburgh during the first quarter of 2005. The Registrant opened 17 new banking centers that did not involve the relocation or consolidation of existing facilities during the first three months of 2005 and plans to continue adding banking centers in key markets throughout 2005 at levels similar to the 76 added in 2004.

Credit quality metrics improved in the first quarter of 2005 compared to the same period last year and are stable compared to the fourth quarter of 2004. Net charge-offs as a percent of average loans and leases declined to .40% in the first quarter of 2005 from .44% in the fourth quarter of 2004 and ..54% in the first quarter of 2004. Nonperforming assets as a percent of loans and leases at March 31, 2005 were .53% compared to .51% at December 31, 2004 and .57% at March 31, 2004.

The Registrant’s capital ratios exceed the “well-capitalized” guidelines as defined by the Board of Governors of the Federal Reserve System (“FRB”). As of March 31, 2005, the Tier 1 capital ratio was 8.40% and the total risk-based capital ratio was 10.78%. The Registrant’s capital strength and financial stability have enabled the Registrant to maintain a Moody’s credit rating that is equaled or surpassed by only four other U.S. bank holding companies.

Recent Accounting Standards

Note 2 of the Notes to Condensed Consolidated Financial Statements provides a complete discussion of the new accounting policies adopted by the Registrant during 2005 and 2004 and the expected impact of accounting policies issued but not yet required to be adopted.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Critical Accounting Policies

Allowance for Loan and Lease Losses

The Registrant maintains an allowance to absorb probable loan and lease losses inherent in the portfolio. The allowance is maintained at a level the Registrant considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectibility and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the allowance. Provisions for loan and lease losses are based on the Registrant’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. In determining the appropriate level of the allowance, the Registrant estimates losses using a range derived from “base” and “conservative” estimates. The Registrant’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality.

Larger commercial loans that exhibit probable or observed credit weaknesses are subject to individual review. Where appropriate, allowances are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Registrant. The review of individual loans includes those loans that are impaired as provided in Statements of Financial Accounting Standards (“SFAS”) No. 114, “Accounting by Creditors for Impairment of a Loan.” Any allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or fair value of the underlying collateral. The Registrant evaluates the collectibility of both principal and interest when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific allowance allocations. The loss rates are derived from a migration analysis, which computes the net charge-off experience sustained on loans according to their internal risk grade. The Registrant utilizes two risk grading systems for commercial loans and leases. The current risk grading system utilized for allowance analysis purposes encompasses ten categories. The Registrant also maintains a dual risk grading system that provides for 13 probability of default grade categories and an additional six grade categories measuring loss factors given an event of default. The probability of default and loss given default analyses are not separated in the ten grade risk rating system. The Registrant is in the process of completing significant validation and testing of the dual risk rating system prior to implementation for allowance analysis purposes. The dual risk rating system is consistent with Basel II expectations and allows for more precision in the analysis of commercial credit risk.

Homogenous loans, such as consumer installment, residential mortgage loans and automobile leases are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks. Allowances are established for each pool of loans based on the expected net charge-offs for one year. Loss rates are based on the average net charge-off history by loan category.

Historical loss rates for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors that management considers in the analysis include the effects of the national and local economies, trends in the nature and volume of loans (delinquencies, charge-offs and nonaccrual loans), changes in mix, credit score migration comparisons, 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 Registrant’s internal credit examiners.

An unallocated allowance is maintained to recognize the imprecision in estimating and measuring loss when evaluating allowances for individual loans or pools of loans. Allowances on individual loans and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Loans acquired by the Registrant through a purchased business combination are evaluated for possible credit impairment. Reduction to the carrying value of the acquired loans as a result of credit impairment is recorded as an adjustment to goodwill. The Registrant does not carry over the acquired company’s allowance for loan and lease losses nor does the Registrant add to its existing allowance for the acquired loans.

The Registrant’s primary market areas for lending are Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia and Pennsylvania. When evaluating the adequacy of allowances, consideration is given to this regional geographic concentration and the closely associated effect changing economic conditions have on the Registrant’s customers.

In the current year the Registrant has not substantively changed any aspect to its overall approach in the determination of allowance for loan and lease losses. There have been no material changes in assumptions or estimation techniques as compared to prior periods that impacted the determination of the current period allowance for loan and lease losses.

Based on the procedures discussed above, the Registrant is of the opinion that the allowance of $717 million was adequate, but not excessive, to absorb estimated credit losses associated with the loan and lease portfolio at March 31, 2005.

Valuation of Securities

Securities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities classified as held-to-maturity, and which management has both the intent and ability to hold to maturity, are reported at amortized cost. Available-for-sale and trading securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in accumulated other comprehensive income on the Condensed Consolidated Balance Sheets and noninterest income in the Condensed Consolidated Statements of Income, respectively. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments. Realized securities gains or losses are reported within noninterest income in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security’s performance, the creditworthiness of the issuer and the Registrant’s intent and ability to hold the security. A decline in value that is considered to be other-than-temporary is recorded as a loss within noninterest income in the Condensed Consolidated Statements of Income. At March 31, 2005, 94% of the unrealized losses in the available-for-sale security portfolio were comprised of securities issued by U.S. Treasury and Government agencies, U.S. Government sponsored agencies and states and political subdivisions as well as agency mortgage-backed securities. The Registrant believes the price movements in these securities are dependent upon the movement in market interest rates particularly given the negligible inherent credit risk for these securities. The Registrant also maintains its intent and ability to hold these securities.

Valuation of Servicing Rights

When the Registrant sells loans through either securitizations or individual loan sales in accordance with its investment policies, it may retain servicing rights. Servicing rights resulting from loan sales are amortized in proportion to and over the period of estimated net servicing revenues. Servicing rights are assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and permanent impairment recognized through a write-off of the servicing asset and related valuation reserve. Key economic assumptions used in measuring any potential impairment of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life of the loans, the discount rate, the

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

weighted-average coupon and the weighted-average default rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. The Registrant monitors risk and adjusts its valuation allowance as necessary to adequately reserve for any probable impairment in the portfolio. For purposes of measuring impairment, the servicing rights are stratified based on the financial asset type and interest rates. In addition, the Registrant obtains an independent third-party valuation of the mortgage servicing rights (“MSR”) portfolio on a quarterly basis. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income as loan payments are received. Costs of servicing loans are charged to expense as incurred.

At March 31, 2005, the change in the fair value of MSRs due to an immediate 10% and 20% adverse change in the current prepayment assumptions would be a decrease of approximately $17 million and $32 million, respectively, and due to an immediate 10% and 20% favorable change in the current prepayment assumption would be an increase of approximately $18 million and $38 million, respectively. The change in the fair value of the MSR portfolio at March 31, 2005, due to an immediate 10% and 20% adverse change in the discount rate assumptions would be a decrease of approximately $13 million and $24 million, respectively, and due to an immediate 10% and 20% favorable change in the discount rate assumption would be an increase of approximately $13 million and $27 million, respectively. Sensitivity analysis related to other consumer and commercial servicing rights is not material to the Registrant’s Condensed Consolidated Financial Statements. These sensitivities are hypothetical and should be used with caution. As the figures indicate, change in fair value based on a 10% and 20% variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interests is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

Statements of Income Analysis

Net Interest Income

Compared to the first quarter of 2004, net interest income on a fully taxable basis was essentially flat as the eight percent growth in average earning assets was mitigated by a 22 basis point (“bp”) decline in the net interest margin. The net interest margin was negatively impacted by the $1.6 billion repurchase of common stock, the growth in loans relative to the growth in core deposits and the corresponding increase in wholesale funding, the change in mix within core deposits, the impact of repricing timing in a rising rate environment on interest-bearing assets and liabilities and the continued flattening of the interest rate yield curve.

The growth in average loans and leases of $10.4 billion from the first quarter of 2004 to the first quarter of 2005 outpaced the $8.2 billion growth in core deposits in the same period resulting in additional higher cost wholesale funding. In the first quarter of 2005, the cost of wholesale funding averaged 2.77% compared to the cost of interest-bearing core deposits of 1.62%. Within interest-bearing core deposits, money market and other time deposit balances combined to represent 30% of the total in the first quarter of 2005 compared to 25% in the first quarter of 2004. Money market and other time deposit balances generally receive a higher rate of interest than on interest checking and savings balances. The combined rate paid on money market and other time deposit balances was 2.50% in the first quarter of 2005 compared to the combined rate of 1.24% on interest checking and savings balances. Net interest rate spread declined 32 bp from 3.33% in the first quarter of 2004 to 3.01% in the first quarter of 2005 due largely to the impact of the changing funding mix highlighted above and the continued flattening of the interest rate yield curve. The average interest rate spread between the 3-month Treasury bill and the 10-year Treasury note compressed from 307 bp in the first quarter of 2004 to 213 bp in the fourth quarter of 2004 to 171 bp in the first quarter of 2005 illustrating the relative pressure between shorter-term and longer-term funding costs and general security portfolio re-investment opportunities.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Despite the unfavorable year-over-year comparisons above, net interest margin and net interest spread expanded 3 bp and 2 bp, respectively, in the first quarter of 2005 from the fourth quarter of 2004, the first sequential expansion in four quarters, primarily due to the balance sheet initiatives undertaken in the fourth quarter of 2004 to reduce risks associated with increasing interest rates. These balance sheet initiatives included: (i) the sale of approximately $6.4 billion in the available-for-sale securities portfolio with a weighted-average coupon of 3.2%; (ii) the early retirement of approximately $2.8 billion of long-term debt with a weighted-average coupon of 5.4%; (iii) the termination of $2.8 billion in notional of receive-fixed/pay-variable interest rate swaps; and (iv) reductions in certain other wholesale borrowings.

Interest income (FTE) from loans and leases increased $198 million or 29% compared to the first quarter of 2004. The increase resulted from the growth in average loans and leases of $10.4 billion or 19% for the first quarter of 2005 over the comparable period in 2004 as well as an increase in average rates. The increase in average loans and leases included growth in commercial loans and leases of $6.8 billion or 24% compared to the first quarter of 2004 with the Registrant experiencing double-digit growth in average commercial loans in nearly all affiliate markets, with 20% or greater growth in Indianapolis, Chicago and Florida. Excluding the impact of the Franklin Financial acquisition completed in the second quarter of 2004 and the First National acquisition completed in the first quarter of 2005, average commercial loans and leases increased by 13%; comparisons being provided to supplement an understanding of fundamental trends. The Registrant continues to benefit from increased credit line usage from existing commercial customers as well as success in gaining new customers within its footprint. Average consumer loans and leases increased by $3.6 billion or 14% compared to the first quarter of 2004. Excluding the impact of the Franklin Financial and First National acquisitions as well as the $750 million auto loan securitization that occurred in the second quarter of 2004, average consumer loans increased by 12%; comparisons being provided to supplement an understanding of fundamental trends.

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TABLE 2: Components of Average Loans and Leases

The decrease in interest income (FTE) from average investment securities and short-term investments of $44 million or 13% during the first quarter of 2005 compared to the same period in 2004 was due to the reduction of the investment securities portfolio as a result of the balance sheet initiatives previously discussed. The Registrant has continued to migrate the investment portfolio to be more heavily weighted in adjustable-rate and shorter-term securities in connection with its efforts to reduce liability sensitivity. This has contributed to the relatively flat yield from the taxable securities portfolio compared to the first quarter of 2004.

The interest on core deposits increased $74 million or 80% in first quarter of 2005 over the comparable period in 2004 due to increases in short-term interest rates and increasing average balances. Average core deposits increased $8.2 billion or 17% compared to the first quarter of 2004. Excluding the impact from both Franklin Financial and First National, average core deposits increased $4.5 billion or 9% over the same period as last year; comparisons being provided to supplement an understanding of fundamental trends. The growth in noninterest-bearing funds and other core deposits is a critical component in the growth of net interest income. A key focus of the Registrant continues to be growing its transaction deposit products such as checking, savings and money market accounts in order to reduce its reliance on other sources to fund the expected growth in the balance sheet.

The interest on wholesale funding, long-term debt and short term bank notes increased by $80 million or 54% in the first quarter over the comparable period in 2004 due to the increase in the average balances of long-term debt coupled with increases in short-term rates. Average wholesale funding decreased $5.2 billion, or 23% while average long-term debt increased $5.3 billion or 52% in the first quarter of 2005 over the comparable period in 2004. Average short-term bank notes increased $275 million or 55% compared to the first quarter of 2004. Consistent with previous quarters, the Registrant has increased long-term debt to fund the growth in the balance sheet and to reduce its reliance on short-term wholesale funding.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 3: Consolidated Average Balance Sheets and Analysis of Net Interest Income (FTE)

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Provision for Loan and Lease Losses

The Registrant provides as an expense an amount for probable loan and lease losses within the loan portfolio that is based on factors discussed in Critical Accounting Policies. The provision is recorded to bring the allowance for loan and lease losses to a level deemed appropriate by the Registrant. Actual credit losses on loans and leases are charged against the allowance for loan and lease losses. The amount of loans actually removed from the Condensed Consolidated Balance Sheets is referred to as charge-offs. Net charge-offs include current charge-offs less recoveries in the current period on previously charged off assets.

The provision for loan and lease losses was $67 million in the first quarter of 2005 compared to $87 million in the same period last year. The decrease from the first quarter last year is due to the reduction in net charge-offs as a percentage of average loans and leases to .40% from .54% at the end of the first quarter of 2004. Net charge-offs decreased 12% to $63 million in the first quarter of 2005 compared to $71 million in the same period of 2004. The allowance for loan and lease losses as a percent of loans and leases declined to 1.11% from 1.32% at March 31, 2004. A portion of the decline in the allowance percentage is due to the acquisitions of Franklin Financial and First National and their respective loan portfolios being recorded at fair value and not carrying over their previously existing allowance. In addition, nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (“OREO”) declined to .53%, compared to .57% at March 31, 2004. Credit quality metrics and trends have continued to improve for the Registrant as the economy has shown improvement. Refer to the “Credit Risk Management” section for further information on the provision for loan and lease losses, net charge-offs, nonperforming assets and other factors considered by the Registrant in assessing the credit quality of the loan portfolio and the allowance for loan and lease losses.

Noninterest Income

For the three months ended March 31, 2005 noninterest income decreased by three percent on a year-over-year basis.

TABLE 4: Noninterest Income

Electronic payment processing revenue increased $20 million, or 13%, in the first quarter of 2005 compared to the same period last year. The sale of certain small merchant processing contracts in the second and third quarters of 2004 impact comparisons to prior periods. Excluding the $25 million revenue impact of sold contracts in the first quarter of 2004, revenues increased 36% over the same period last year; comparisons being provided to supplement an understanding of the fundamental revenue trends. The Registrant continues to realize strong sales momentum from the addition of new customer relationships, particularly in its merchant services and EFT businesses and good results in the level of retail sales activity. Compared to the same period in 2004, EFT revenue increased 23% and merchant processing revenue increased four percent. Excluding the revenue impact of sold contracts in the first quarter of 2004, merchant processing revenue increased 55%. The Registrant handles electronic processing for approximately 129,000 merchant locations and 1,400 financial institutions worldwide.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Service charges on deposits decreased one percent in the first quarter of 2005 compared to the same period last year. Both commercial and consumer service charges were essentially unchanged. Despite growth in the number of relationships and overall activity, commercial service charges were negatively impacted compared to the first quarter last year by the increased value of compensating balances in a higher interest rate environment. In respect to consumer service charges, the Registrant is currently evaluating and testing in certain markets fee level strategies and the corresponding impact on account retention. Growth in the number of retail checking account relationships and deposits continues to be a primary focus for the Registrant.

Mortgage banking net revenue declined to $41 million in the first quarter of 2005 from $44 million in the same period last year as a result of continued rising interest rates that has slowed residential mortgage refinancing activity. Mortgage originations were $1.9 billion in the first quarter of 2005 compared to $2.0 billion in the first quarter of 2004. The components of mortgage banking net revenue for the three months ended March 31, 2005 and 2004 are as follows:

TABLE 5: Components of Mortgage Banking Net Revenue

The increase in interest rates during the first quarter of 2005 and the resulting impact of decreasing prepayment speeds led to the recovery of $21 million in temporary impairment on the MSR portfolio in 2005 as compared to the $11 million in temporary impairment recognized in the first quarter of 2004. Servicing rights are deemed impaired when a borrower’s loan rate is distinctly higher than prevailing market rates. The Registrant recognized a net loss of $11 million and a net gain of $20 million in the first quarter of 2005 and 2004, respectively, related to changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio.

In the first quarter of 2005, the Registrant primarily used principal only swaps and swaptions to hedge the economic risk of the MSR portfolio as they are deemed to be the best available instrument for several reasons. Principal only swaps hedge the mortgage-LIBOR spread because they appreciate in value as a result of tightening spreads. They also provide prepayment protection as they increase in value as prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Swaptions are positive convexity hedges primarily used to hedge the negative convexity of the MSR portfolio. Due to an increasing interest rate environment, the Registrant has maintained the level of purchased options/swaptions used to economically hedge the MSR portfolio. As of March 31, 2005 and 2004, the Registrant held a combination of free-standing derivatives, including principal only swaps, swaptions and interest rate swaps with a net fair value of $4 million for both periods, on an outstanding notional amount of $2.7 billion and $2.4 billion, respectively.

The Registrant’s total residential mortgage loan servicing portfolio at March 31, 2005 and 2004 was $31.5 billion and $29.9 billion, respectively, with $23.3 billion and $24.1 billion, respectively, of loans serviced for others.

Investment advisory revenues decreased four percent in the first quarter of 2005 compared to the same period last year. The decrease resulted primarily from declines in retail brokerage related revenues. The Registrant continues to focus its sales efforts on integrating services across business lines and working closely with retail and commercial team members to take advantage of a diverse and expanding customer base. The Registrant expects near and intermediate term revenue trends to be driven by the degree of success in continuing to grow the institutional money management business and in penetrating a large middle market commercial customer base with retirement and wealth planning services. The Registrant is one of the largest money managers in the Midwest and as of March 31, 2005 had over $183 billion in assets under care and $34 billion in assets under management.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Operating lease revenue results from the consolidation in the third quarter of 2003 of a special purpose entity (“SPE”) formed for the purpose of the sale and subsequent leaseback of leased autos. The consolidation was the result of the Registrant’s implementation of Financial Accounting Standards Board’s (“FASB”) Interpretation No. 46R (“FIN46R”), “Consolidation of Variable Interest Entities – an interpretation of ARB 51 (revised December 2003).” The operating lease revenue declined $32 million from the first quarter of last year and will continue to decline as the leases mature.

The major components of other noninterest income for the three months ended March 31, 2005 and 2004 are as follows:

TABLE 6: Components of Other Noninterest Income

Compared to the first quarter of 2004, other noninterest income increased primarily due to improvement in revenue from commercial banking, including a 17% increase in international related services, and bank owned life insurance. The remaining components of other noninterest income were flat to down on a year-over-year basis. Comparisons to prior year are impacted by the acquisitions of First National and Franklin Financial.

Noninterest Expense

The Registrant continues to focus on efficiency initiatives as part of its core emphasis on operating leverage. These initiatives include increasing levels of process automation, the rationalization and reduction of non-core businesses as they relate to the Registrant’s retail and middle market customer base and an increased emphasis on required returns on invested capital.

Operating expense levels are often measured using the efficiency ratio (noninterest expense divided by the sum of net interest income (FTE) and noninterest income), which was 51.6% and 46.8% for the first quarter of 2005 and 2004, respectively.

TABLE 7: Noninterest Expense

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Noninterest expense increased nine percent in the first quarter of 2005 over the same period last year due to the acquisitions of First National and Franklin Financial in January 2005 and June 2004, respectively, and the continued investment in sales force additions and de-novo branch expansion. Salaries, wages and incentives increased eight percent due to the addition of 2,700 employees, of which over 2,300 are in revenue producing positions. Net occupancy expenses increased 25% due to the addition of 132 net banking centers. Operating lease expense declined 61% from the first quarter last year and is expected to continue to decline as leases mature.

The major components of other noninterest expense for the three months ended March 31, 2005 and 2004 are as follows:

TABLE 8: Components of Other Noninterest Expense

Other noninterest expense increased partially due to bankcard expense increasing $9 million based on increased transaction volume. In addition, comparisons to prior periods are notably impacted by the first quarter 2005 acquisition of First National, including $7 million in acquisition related expenses included in the other caption of other noninterest expense, a $4 million increase in marketing costs in Florida markets and $5 million in increased intangible amortization. Travel costs were also impacted by the acquisition and integration of First National. Information technology and operations costs increased due to continued investment in streamlining the Registrant’s processes. Loan and lease expenses declined $2 million primarily due to mortgage originations continuing to decrease from previous levels. The Registrant continues to adjust mortgage origination cost infrastructure to match the current volume of activity. The remaining categories are flat compared to the first quarter of 2004.

Applicable Income Taxes

The Registrant’s income before income taxes, applicable income tax expense and effective tax rate for each of the periods indicated were:

TABLE 9: Applicable Income Taxes

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Applicable income tax expense for all periods include the benefit from tax-exempt income, tax-advantaged investments and general business tax credits, partially offset by the effect of nondeductible expenses. The effective tax rate for the current quarter included certain favorable impacts resulting from statute expirations and the conclusion of certain tax examinations related to prior fiscal years.

Line of Business Results

The Registrant operates four main lines of business, as described in Note 14 to the Condensed Consolidated Financial Statements. For further detailed financial information on each line of business, see Note 14. In acquisitions accounted for under the purchase method, management “pools” historical results to improve comparability with the current period. The income and average assets of Franklin Financial and First National have been included in the respective segments and are then eliminated to agree to the prior period’s reported results. Net interest income is reported on a fully taxable equivalent basis. The Registrant manages interest rate risk centrally at the corporate level by employing a funds transfer pricing (“FTP”) methodology. This methodology insulates the lines of business from interest rate risk, enabling them to focus on servicing customers through loan originations and deposit taking. The FTP system assigns charge rates and credit rates to classes of assets and liabilities, respectively based on expected duration. The Registrant has not changed the conceptual application of FTP during 2004 or 2005. The net impact of the FTP methodology is included in Other/Eliminations. Net income by line of business is summarized as follows:

TABLE 10: Line of Business Results

Commercial Banking:

Net income increased $30 million, or 19%, compared to the first quarter of 2004 largely as a result of loan and deposit growth. Average commercial loans and leases included in the commercial banking segment increased 12% to $29.0 billion over the prior year period largely due to growth in commercial mortgage loans and construction loans of 18% and 43%, respectively, with over 20% growth in total average commercial loans and leases in the Chicago and Indianapolis markets. Average core deposits increased to $13.4 billion in the first quarter of 2005 from $11.6 billion in the first quarter of 2004, an increase of 15%, with over 30% growth in the Chicago, Detroit and Northern Kentucky markets. The increase in average core deposits and loans, and the related FTP impact, led to a $39 million, or 13%, increase in net interest income compared to the same quarter last year.

Noninterest income increased 13% compared to the same quarter last year due largely to an increase in international service revenue, including letters of credit and foreign currency services. The investment in sales personnel throughout 2004 and in 2005 primarily contributed to the 13% increase in noninterest expense compared to the same period last year as total full-time equivalent sales employees increased to 1,326 from 1,061 at the end of the first quarter of 2004 as a result of newly hired employees, the First National acquisition and transfers from other lines of business. Improved credit quality also contributed to net income growth as the provision decreased from $42 million in the first quarter of 2004 to $31 million in 2005 with the Cincinnati, Dayton, Indianapolis and Nashville markets showing the largest declines.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Retail Banking:

Net income increased $5 million or two percent compared to the same period last year. Net interest income increased 11% compared to the same period last year primarily due to an 11% increase in average loans and leases, with approximately 20% or greater growth in the Florida, Nashville and Cincinnati markets. The net effect of total average loan and lease and deposit balances also resulted in a net 23% increase in FTP credit over the same period last year, reflecting the impact of rising base rates on a core deposit base that exceeds loan and lease balances. Average core deposits increased five percent as double-digit growth in savings, money market and other time deposit balances more than offset a nine percent decrease in interest checking balances, with the Detroit, Florida and Cleveland markets generating the highest percentage growth in balances.

Noninterest income declined 12% from the first quarter of 2004 primarily due to a decrease in consumer and business fees and operating lease revenue. Noninterest expense was flat as lower mortgage origination costs and operating lease expenses offset the increased employee related expenses and net occupancy costs resulting from de-novo and acquisition growth in banking centers. Since the first quarter of 2004, acquisitions have accounted for 86 of the 132 net new banking centers, complementing the ongoing de-novo growth. The Registrant continues to position itself for sustained long-term growth through new banking center additions in key markets. The provision for loan and lease losses increased $10 million in the current quarter compared to the same period last year primarily due to increases in the Chicago, Indianapolis and Nashville markets.

Investment Advisors:

Net income increased six percent to $29 million in the first quarter of 2005 compared to the same period last year. This increase was the result of 38% growth in net interest income due to strong average loan and deposit growth, up 26% and 36%, respectively. Total average loans were $2.4 billion and total average deposits were $4.2 billion in the first quarter of 2005. Noninterest income declined slightly from the first quarter of last year due to a decline in retail brokerage related revenues as a result of decreased fixed-income annuity sales. Noninterest expense increased six percent as a result of increased headcount and information technology investments. In order to capitalize on an expanding customer base and additional growth opportunities, 164 full-time equivalent sales employees have been added since the first quarter of 2004, including 58 net new sales hires during the first quarter of 2005. The Registrant anticipates hiring approximately 150 additional sales personnel during the remainder of the year, with the largest increase to occur in the Florida market.

Processing Solutions:

Net income increased $11 million, or 52%, compared to the first quarter of 2004 due to strong revenue growth across all lines of business despite the loss of approximately $25 million in revenue from the small merchant processing contracts sold during the second and third quarters of 2004. EFT revenue was up 29% over first quarter of last year primarily due to new customer additions. Excluding the revenue impact of the sold contracts, merchant revenue increased 55% due to increased volume at existing customers and new customer additions. Noninterest expense was up due to headcount additions and investment in information technology. First quarter trends are representative of strong continuing momentum in attracting new customer relationships and good results in the level of retail sales activity. The Registrant continues to see significant opportunities to attract new financial institution customers and retailers within this line of business.

Other/Eliminations:

Other/Eliminations includes the unallocated portion of the investment portfolio, certain non-deposit funding, unassigned equity, elimination of the net effect of the FTP methodology and other items not attributed to the other segments. The results of Other/Eliminations were negatively impacted by the decrease of $44 million in interest income from the investment securities portfolio from the first quarter of 2004 due to the sale of approximately $6.4 billion in investment securities in the fourth quarter of 2004 as a result of the balance sheet repositioning. The $80 million increase in interest expense from wholesale funding in the first quarter of 2005 from the same period in 2004 also negatively impacted this category. This increase in interest expense resulted

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

from the average interest rate on wholesale funding increasing from 1.80% in the first quarter of 2004 to 2.77% in the first quarter of 2005. The Registrant’s increased reliance on longer-term wholesale funding in this rising interest rate environment also impacted the increase in wholesale funding interest expense.

Balance Sheet Analysis

Loans

The table below summarizes the end of period commercial and consumer loans and leases, including loans held for sale, by major category:

TABLE 11: Components of Loans and Leases (including held for sale)

Commercial loan and lease outstandings, including loans held for sale, increased 12% compared to December 31, 2004 and 24% compared to March 31, 2004. The increase in commercial loans and leases was attributable to strong sales results in several markets, including Chicago, Florida, Cincinnati and Indianapolis, the acquisition of $441 million of commercial loans obtained in the Franklin Financial transaction in the second quarter of 2004 and the acquisition of $2.8 billion of commercial loans obtained in the First National transaction in the first quarter of 2005. Excluding the impact of the acquisitions, commercial loans and leases increased three percent compared to December 31, 2004 and 12% compared to March 31, 2004; comparisons being provided to supplement an understanding of the fundamental lending trends.

Consumer loan and lease outstandings, including loans held for sale, increased five percent compared to December 31, 2004 and 13% compared to March 31, 2004. Consumer loan comparisons to the prior periods are impacted by the securitization and sale of $750 million of automotive loans in the second quarter of 2004, $140 million of consumer loans obtained in the Franklin Financial acquisition and $1.1 billion of consumer loans obtained in the First National acquisition. Exclusive of the auto loan securitization and the acquisitions, consumer loans and leases increased 11% compared to March 31, 2004 and were flat compared to year end; comparisons being provided to supplement an understanding of the fundamental lending trends. The Registrant is continuing to devote significant focus on producing retail loan originations given the strong credit performance and attractive yields available in these products. Residential mortgage and construction loans, including held for sale, increased 11% compared to December 31, 2004 and 43% compared to March 31, 2004. Exclusive of the impact of the acquisitions, residential mortgage and construction loans increased 29% compared to first quarter of 2004 and one percent compared to year end; comparisons being provided to supplement an understanding of the fundamental lending trends. Comparisons to prior periods are dependent upon the volume and timing of

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

originations as well as the timing of loan sales. Residential mortgage originations totaled $1.9 billion in the first quarter of 2005 compared to $2.0 billion in both the first and fourth quarters of 2004. Consumer lease balances decreased 7% during the first quarter compared to December 31, 2004 and 20% compared to March 31, 2004 largely resulting from continued competition from captive finance companies offering promotional lease rates.

Investment Securities

At March 31, 2005, total investment securities were $25.5 billion, compared to $25.0 billion at December 31, 2004 and $30.9 billion at March 31, 2004, representing an increase of two percent and a decrease of 17% over the respective period end balances. Rising interest rates during 2005 resulted in an increase in the net unrealized loss on the available-for-sale securities portfolio from $114 million at December 31, 2004 to $457 million at March 31, 2005. In response to the overall interest rate environment, the Registrant has allocated a greater portion of current purchases to adjustable-rate securities. At March 31, 2005, 17% of the debt securities in the available-for-sale portfolio were adjustable-rate instruments, compared to 14% at December 31, 2004. The estimated average life of the debt securities in the available-for-sale portfolio at March 31, 2005 was 4.7 years based on current prepayment expectations, compared to 4.4 years at December 31, 2004.

Information presented is on a weighted-average life basis, anticipating future prepayments. Yield information is presented on a fully taxable equivalent basis and is computed utilizing historical cost balances. Maturity and yield calculations for the total available-for-sale portfolio exclude equity securities that have no stated yield or maturity.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 12: Characteristics of Available-for-Sale Securities

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

TABLE 13: Components of Investment Securities (amortized cost basis)

Deposits

Total deposits increased 18% compared to March 31, 2004. The increase was attributable to strong growth in the money market and savings deposits as well as the addition of $3.8 billion in deposits from the First National acquisition in the first quarter of 2005 and $767 million in deposits from the Franklin Financial acquisition in the second quarter of 2004. Transaction deposits increased 14% compared to the first quarter of 2004. Excluding the impact of the $327 million of transaction deposits obtained in the Franklin Financial acquisition and the $2.5 billion of transaction deposits obtained in the First National acquisition, transaction deposits increased eight percent; comparisons being provided to supplement an understanding of the fundamental deposit trends. Overall, the Registrant experienced strong transaction deposit growth in the Chicago, Cleveland, Detroit and Grand Rapids markets.

Deposit balances represent an important source of funding and revenue growth opportunity. The Registrant is continuing to focus on transaction account deposit growth in its retail and commercial franchises and remains confident in its ability to competitively price and generate growth during an increasing interest rate environment by attracting new customer relationships across its footprint through its on-going deposit campaigns.

The foreign office deposits represent U.S. dollar denominated deposits of the Registrant’s foreign branch located in the Cayman Islands. The Registrant utilizes these deposit balances as a method to fund earning asset growth.

TABLE 14: Deposits

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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Borrowings

Given the expected continued rise in short-term interest rates, the Registrant continued to reduce its dependence on overnight wholesale borrowings this quarter as federal funds purchased totaled $2.7 billion, compared to $4.7 billion at December 31, 2004 and $7.5 billion at March 31, 2004. Long-term debt increased to $16.3 billion at March 31, 2005, compared to $14.0 billion at December 31, 2004 and $11.0 billion at March 31, 2004. During the first quarter of 2005, the Registrant issued $800 million in long-term senior bank notes with a maturity of five years and $500 million in long-term subordinated bank notes with a maturity of ten years. The Registrant continues to explore additional alternatives regarding the level and cost of various other sources of funding. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Registrant.

TABLE 15: Borrowings

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Quantitative and Qualitative Disclosure about Risk (Item 3)

Risk Management

Overview

Managing risk is an essential component of successfully operating a financial services company. The Registrant’s risk management function is responsible for the identification, measurement, monitoring, control and reporting of risk and avoidance of those risks that are inconsistent with the Registrant’s risk profile. The Enterprise Risk Management division, led by the Registrant’s Chief Risk Officer, ensures consistency in the Registrant’s approach to managing and monitoring risk including, but not limited to, credit, market, operational and regulatory compliance risk, within the structure of the Registrant’s affiliate operating model. In addition, the Internal Audit division provides an independent assessment of the Registrant’s internal control structure and related systems and processes. The Enterprise Risk Management division includes the following key functions: (i) a Risk Policy function that ensures consistency in the approach to risk management as the Registrant’s clearinghouse for credit, market and operational risk policies, procedures and guidelines; (ii) an Operational Risk Management function that is responsible for the risk self-assessment process, the change control evaluation process, business continuity planning and disaster recovery, fraud prevention and detection, and root cause analysis and corrective action plans relating to identified operational losses; (iii) an Insurance Risk Management function that is responsible for all property, casualty and liability insurance policies including the claims administration process for the Registrant; (iv) a Capital Markets Risk Management function that is responsible for establishing and monitoring proprietary trading limits, monitoring liquidity and interest rate risk and utilizing value at risk and earnings at risk models; (v) an Affiliate Risk Management function that is responsible for the coordination of risk management activities in each banking affiliate and division; (vi) a Credit Risk Review function that is responsible for evaluating the sufficiency of underwriting, documentation and approval processes for consumer and commercial credits; (vii) a Compliance Risk Management function that is responsible for oversight of compliance with all banking regulations; and (viii) a Risk Strategies and Reporting function that is responsible for quantitative analytics and Board of Directors and senior management reporting on credit, market and operational risk metrics.

All business lines and affiliates have a designated risk manager reporting jointly to a senior executive within the division or affiliate and to the Enterprise Risk Management division. Risk management oversight and governance is provided by the Risk and Compliance Committee of the Board of Directors and through multiple management committees whose membership includes a broad cross-section of line of business, affiliate and support representatives. The Risk and Compliance Committee of the Board of Directors consists of three outside directors and has the responsibility for the oversight of credit, market, operational, regulatory compliance and strategic risk management activities for the Registrant as well as for the Registrant’s overall aggregate risk profile. The Risk and Compliance Committee has approved the formation of key management governance committees that are responsible for evaluating risks and controls. These committees include the Market Risk Committee, the Credit Risk Committee and the Operational Risk Committee. There are also new products and new initiatives processes applicable to every line of business to ensure an appropriate standard readiness assessment is performed before launching a new product or initiative. Significant risk policies approved by the management governance committees are also reviewed and approved by the Board of Directors Risk and Compliance Committee.

Credit Risk Management

The objective of the Registrant’s credit risk management strategy is to quantify and manage credit risk on an aggregate portfolio basis as well as to limit the risk of loss resulting from an individual customer default. Credit risk is managed through a combination of conservative exposure limits and underwriting, documentation and collection standards and overall counterparty limits. The Registrant’s credit risk management strategy also

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Quantitative and Qualitative Disclosure about Risk (continued)

emphasizes diversification on a geographic, industry and customer level, regular credit examinations and monthly management reviews of large credit exposures and credits experiencing deterioration of credit quality. Lending officers with the authority to extend credit are delegated specific authority amounts, the utilization of which is closely monitored. Lending activities are largely decentralized, while the Enterprise Risk Management division manages the policy process centrally. The Credit Risk Review function, within the Enterprise Risk Management division, provides objective assessments of the quality of underwriting and documentation, the accuracy of risk grades and the charge-off and reserve analysis process.

The Registrant’s credit review process and overall assessment of required reserves is based on ongoing quarterly assessments of the probable estimated losses inherent in the loan and lease portfolio. In addition to the individual review of larger commercial loans that exhibit probable or observed credit weaknesses, the commercial credit review process includes the use of a risk grading system. The Registrant utilizes two risk grading systems for commercial loans and leases. The current risk grading system utilized for allowance analysis purposes encompasses ten categories. The Registrant also maintains a dual risk grading system that provides for 13 probability of default grade categories and an additional six grade categories measuring loss factors given an event of default. The probability of default and loss given default analyses are not separated in the ten grade risk rating system. The Registrant is in the process of completing significant validation and testing of the dual risk rating system prior to implementation for allowance analysis purposes. The dual risk rating system is consistent with Basel II expectations and allows for more precision in the analysis of commercial credit risk. Scoring systems and delinquency monitoring are used to assess the credit risk in the Registrant’s homogenous consumer loan portfolios.

The Registrant’s credit risk management strategy includes minimizing size risk and other concentrations of risk. Table 16 provides a breakout of the commercial loan and lease portfolio, including held for sale, by major industry classification, by size of credit and by state, illustrating the diversity and granularity of the Registrant’s portfolio.

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Quantitative and Qualitative Disclosure about Risk (continued)

TABLE 16: Commercial Loan and Lease Portfolio Exposure (a)