FIFTH THIRD BANCORP - FORM 8-K - EX-99.4

Attached files

file	filename
EX-99.3 - EX-99.3 - FIFTH THIRD BANCORP	d285237dex993.htm
EX-99.2 - EX-99.2 - FIFTH THIRD BANCORP	d285237dex992.htm
EX-99.1 - EX-99.1 - FIFTH THIRD BANCORP	d285237dex991.htm
8-K - FORM 8-K - FIFTH THIRD BANCORP	d285237d8k.htm

Exhibit 99.4

January 2017

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ANNUAL 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 year-end 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

Senior Director

Investor Relations

(513) 534-2219

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Yearly Data


	Years Ended December 31,
	2016		2015		2014		2013		2012
Ratios (percent)
Return on average assets		1.10		1.22		1.12		1.48		1.34
Return on average common equity		9.8		11.3		10.0		13.1		11.6
Average total Bancorp shareholders’ equity as a percent of average assets		11.67		11.33		11.59		11.56		11.65
Net interest margin^(a)(d)		2.88		2.88		3.10		3.32		3.55
Efficiency^(a)(d)		61.6		57.6		61.1		58.2		61.7
Net losses charged-off as a percent of average portfolio loans and leases		0.39		0.48		0.64		0.58		0.85
ALLL as a percent of portfolio loans and leases		1.36		1.37		1.47		1.79		2.16
Allowance for credit losses as a percent of portfolio loans and leases^(c)		1.54		1.52		1.62		1.97		2.37
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO^(b)		0.80		0.70		0.82		1.10		1.49
Allowance for loan and lease losses as a percent of nonperforming assets^(b)		170		197		178		161		144
Allowance for credit losses as a percent of nonperforming assets^(b)		192		218		196		178		158

Common Share Data
Earnings per share - basic	$	1.95	$	2.03	$	1.68	$	2.05	$	1.69
Earnings per share - diluted	$	1.93	$	2.01	$	1.66	$	2.02	$	1.66
Cash dividends per common share		0.53		0.52		0.51		0.47		0.36
Book value per share		19.82		18.48		17.35		15.85		15.10

Common shares outstanding, excluding treasury		750,479,299		785,080,314		824,046,952		855,305,745		882,152,057
Market price per share:
High	$	27.97	$	21.71	$	23.39	$	21.04	$	16.16
Low		19.58		17.22		17.74		15.35		12.04
End of period		26.97		20.10		20.38		21.03		15.20

Supplemental Data
Common dividends declared ($ in millions)	$	406	$	417	$	427	$	407	$	325
Full-time equivalent employees		17,844		18,261		18,351		19,446		20,798
Banking centers		1,191		1,254		1,302		1,320		1,325
ATMs		2,495		2,593		2,638		2,586		2,415

(a)

Presented on a fully taxable equivalent basis (FTE).

(b)

Excludes nonperforming assets held for sale.

(c)

The allowance for credit losses is the sum of the ALLL and the reserve for unfunded commitments.

(d)

This is a non-GAAP measure.

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Yearly Data


	Years Ended December 31,
	2016		2015		2014		2013		2012
Income Statement ($ in millions)
Interest income (taxable equivalent)^(d)	$	4,218	$	4,049	$	4,051	$	3,993	$	4,125
Interest expense		578		495		451		412		512

Net interest income (taxable equivalent)^(d)		3,640		3,554		3,600		3,581		3,613
Provision for loan and lease losses		343		396		315		229		303
Noninterest income:
Service charges on deposits		558		563		560		549		522
Wealth and asset management revenue		404		418		407		393		374
Corporate banking revenue		432		384		430		400		413
Mortgage banking net revenue		285		348		310		700		845
Card and processing revenue		319		302		295		272		253
Other noninterest income		688		979		450		879		574
Securities gains, net		10		9		21		21		15
Securities gains, net - non-qualifying hedges on mortgage servicing rights		—		—		—		13		3

Total noninterest income		2,696		3,003		2,473		3,227		2,999
Noninterest expense:
Salaries, wages and incentives		1,612		1,525		1,449		1,581		1,607
Employee benefits		339		323		334		357		371
Net occupancy expense		299		321		313		307		302
Technology and communications		234		224		212		204		196
Equipment expense		118		124		121		114		110
Card and processing expense		132		153		141		134		121
Other noninterest expense		1,169		1,105		1,139		1,264		1,374

Total noninterest expense		3,903		3,775		3,709		3,961		4,081
Income before income taxes (taxable equivalent)^(d)		2,090		2,386		2,049		2,618		2,228
Taxable equivalent adjustment		25		21		21		20		18

Income before income taxes		2,065		2,365		2,028		2,598		2,210
Applicable income tax expense		505		659		545		772		636

Net income	$	1,560	$	1,706	$	1,483	$	1,826	$	1,574
Less: Net income attributable to noncontrolling interests		(4)		(6)		2		(10)		(2)

Net income attributable to Bancorp	$	1,564	$	1,712	$	1,481	$	1,836	$	1,576
Dividends on preferred stock		75		75		67		37		35

Net income available to common shareholders	$	1,489	$	1,637	$	1,414	$	1,799	$	1,541


*Regulatory Capital Data ($ in millions)^(a)***	Basel III Transitional				Basel I
CET1 capital		12,426	$	11,917		N/A		N/A		N/A
Additional tier I capital		1,330		1,343		N/A		N/A		N/A

Tier I capital	$	13,756	$	13,260	$	12,764	$	12,094	$	11,685
Tier II capital		4,164		3,874		4,131		4,337		4,126

Total regulatory capital	$	17,920	$	17,134	$	16,895	$	16,431	$	15,811

Risk-weighted assets	$	119,482^(b)	$	121,290^(b)	$	117,878	$	115,969	$	109,301

CET1 capital ratio		10.40%^(b)		9.82%^(b)		N/A		N/A		N/A
Tier I risk-based capital ratio		11.51%^(b)		10.93%^(b)		10.83%		10.43%		10.69%
Total risk-based capital ratio		15.00%^(b)		14.13%^(b)		14.33%		14.17%		14.47%
Tier I leverage ratio		9.90%		9.54%		9.66%		9.73%		10.15%

Tier I common equity ratio		N/A		N/A		9.65%^(c)		9.45%^(c)		9.54%^(c)
CET1 capital ratio (fully phased-in)		10.30%^(b)(c)(d)		9.72%^(b)(c)(d)		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.

(d)

These are non-GAAP measures.

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Yearly Data


	Years Ended December 31,
	2016		2015		2014		2013		2012
Balance Sheet ($ in millions, except share data)
Assets
Cash and due from banks	$	2,392	$	2,540	$	3,091	$	3,178	$	2,441
Available-for-sale and other securities		31,183		29,044		22,408		18,597		15,207
Held-to-maturity securities		26		70		187		208		284
Trading securities		410		386		360		343		207
Other short-term investments		2,754		2,671		7,914		5,116		2,421

Total cash and securities		36,765		34,711		33,960		27,442		20,560
Loans held for sale		751		903		1,261		944		2,939
Portfolio loans and leases		92,098		92,582		90,084		88,614		85,782

Total loans and leases		92,849		93,485		91,345		89,558		88,721
Allowance for loan and lease losses		(1,253)		(1,272)		(1,322)		(1,582)		(1,854)
Bank premises and equipment		2,065		2,239		2,465		2,531		2,542
Operating lease equipment		738		707		728		730		581
Goodwill		2,416		2,416		2,416		2,416		2,416
Intangible assets		9		12		15		19		27
Servicing rights		744		785		858		971		697
Other real estate owned		69		137		217^(a)		299^(a)		320^(a)
Other assets		7,775		7,828		7,988		8,031		7,859

Total assets	$	142,177	$	141,048	$	138,670	$	130,415	$	121,869

Liabilities
Deposits:
Demand	$	35,782	$	36,267	$	34,809	$	32,634	$	30,023
Interest checking		26,679		26,768		26,800		25,875		24,477
Savings		13,941		14,601		15,051		17,045		19,879
Money market		20,749		18,494		17,083		11,644		6,875
Foreign office		426		464		1,114		1,976		885
Other time		3,866		4,019		3,960		3,530		4,015
Certificates - $100,000 and over		2,378		2,592		2,895		6,571		3,284
Other foreign office		—		—		—		—		79

Total deposits		103,821		103,205		101,712		99,275		89,517
Federal funds purchased		132		151		144		284		901
Other short-term borrowings		3,535		1,507		1,556		1,380		6,280
Other liabilities		4,069		4,505		4,662		5,245		4,347
Long-term debt		14,388		15,810		14,932		9,605		7,060

Total liabilities		125,945		125,178		123,005		115,789		108,105

Equity
Common and preferred equity		19,579		18,406		17,169		15,802		13,975
Net unrealized gains:
Available-for-sale securities		101		238		475		121		412
Qualifying cash flow hedges		10		22		23		13		50
Accumulated other comprehensive income related to employee benefit plans		(52)		(63)		(69)		(52)		(87)
Treasury stock, at cost		(3,433)		(2,764)		(1,972)		(1,295)		(634)

Total Bancorp shareholders’ equity		16,205		15,839		15,626		14,589		13,716
Noncontrolling interests		27		31		39		37		48

Total equity		16,232		15,870		15,665		14,626		13,764

Total liabilities and equity	$	142,177	$	141,048	$	138,670	$	130,415	$	121,869

Share Data
Preferred shares outstanding - Series G		—		—		—		—		16,450
Preferred shares outstanding - Series H		24,000		24,000		24,000		24,000		—
Preferred shares outstanding - Series I		18,000		18,000		18,000		18,000		—
Preferred shares outstanding - Series J		12,000		12,000		12,000		—		—
Common shares outstanding, excluding treasury		750,479,299		785,080,314		824,046,952		855,305,745		882,152,057
Treasury shares held		173,413,282		138,812,267		99,845,629		68,586,836		41,740,524

(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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Yearly Data


	Years Ended December 31,
	2016		2015		2014		2013		2012
Average Balance Sheet ($ in millions, except share data)
Assets
Interest-earning assets:
Loans and leases	$	94,320	$	93,339	$	91,127	$	89,093	$	84,822
Taxable securities		30,019		26,932		21,770		16,395		15,262
Tax exempt securities		80		55		53		49		57
Other short-term investments		1,866		3,258		3,043		2,417		1,495

Total interest-earning assets		126,285		123,584		115,993		107,954		101,636
Cash and due from banks		2,303		2,608		2,892		2,482		2,355
Other assets		14,963		15,179		14,505		15,025		15,643
Allowance for loan and lease losses		(1,285)		(1,293)		(1,481)		(1,757)		(2,072)

Total assets	$	142,266	$	140,078	$	131,909	$	123,704	$	117,562

Liabilities
Interest-bearing liabilities:
Interest checking deposits	$	25,143	$	26,160	$	25,382	$	23,582	$	23,096
Savings deposits		14,346		14,951		16,080		18,440		21,393
Money market deposits		19,523		18,152		14,670		9,467		4,903
Foreign office deposits		497		817		1,828		1,501		1,528
Other time deposits		4,010		4,051		3,762		3,760		4,306
Certificates - $100,000 and over		2,735		2,869		3,929		6,339		3,102
Other deposits		333		57		—		17		27
Federal funds purchased		506		920		458		503		560
Other short-term borrowings		2,845		1,721		1,873		3,024		4,246
Long-term debt		15,394		14,644		12,894		7,886		8,991

Total interest-bearing liabilities		85,332		84,342		80,876		74,519		72,152
Demand deposits		35,862		35,164		31,755		29,925		27,196
Other liabilities		4,445		4,672		3,950		4,917		4,462

Total liabilities		125,639		124,178		116,581		109,361		103,810
Equity		16,627		15,900		15,328		14,343		13,752

Total liabilities and equity	$	142,266	$	140,078	$	131,909	$	123,704		117,562


Average loans and leases (excluding held for sale)	$	93,426	$	92,423	$	90,485		86,950		82,733

Share Data:
Average common shares outstanding - basic		757,366,766		798,628,173		833,116,349		869,462,977		904,425,226
Average common shares outstanding - diluted		764,429,828		807,658,669		842,967,356		894,736,445		945,554,102

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Yearly Data


	Years Ended December 31,
	2016		2015		2014		2013		2012
End of Period Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	41,736	$	42,151	$	40,801	$	39,347	$	36,077
Commercial mortgage loans		6,904		6,991		7,410		8,069		9,116
Commercial construction loans		3,903		3,214		2,071		1,041		707
Commercial leases		3,974		3,854		3,721		3,626		3,549

Total commercial loans and leases		56,517		56,210		54,003		52,083		49,449
Consumer:
Residential mortgage loans		15,737		14,424		13,582		13,570		14,873
Home equity		7,695		8,336		8,886		9,246		10,018
Automobile loans		9,983		11,497		12,037		11,984		11,972
Credit card		2,237		2,360		2,401		2,294		2,097
Other consumer loans and leases		680		658		436		381		312

Total consumer loans and leases		36,332		37,275		37,342		37,475		39,272

Total loans and leases	$	92,849	$	93,485	$	91,345	$	89,558	$	88,721

Average Loans and Leases ($ in millions)^{(net of unearned discount)}
Commercial:
Commercial and industrial loans	$	43,184	$	42,594	$	41,178	$	37,770	$	32,911
Commercial mortgage loans		6,899		7,121		7,745		8,481		9,686
Commercial construction loans		3,648		2,717		1,492		793		835
Commercial leases		3,916		3,796		3,585		3,565		3,502

Total commercial loans and leases		57,647		56,228		54,000		50,609		46,934
Consumer:
Residential mortgage loans		15,101		13,798		13,344		14,428		13,370
Home equity		7,998		8,592		9,059		9,554		10,369
Automobile loans		10,708		11,847		12,068		12,021		11,849
Credit card		2,205		2,303		2,271		2,121		1,960
Other consumer loans and leases		661		571		385		360		340

Total consumer loans and leases		36,673		37,111		37,127		38,484		37,888

Total average loans and leases	$	94,320	$	93,339	$	91,127	$	89,093	$	84,822

Asset Quality ($ in millions)
Nonaccrual portfolio loans and leases	$	403	$	228	$	269	$	387	$	665
Nonaccrual loans held for sale		4		1		24		6		25
Nonaccrual restructured loans held for sale		9		11		15		—		4
Nonaccrual portfolio restructured loans and leases		257		278		310		364		364
OREO and other repossessed property^(a)		78		141		165		229		257

Total nonperforming assets	$	751	$	659	$	783	$	986	$	1,315

Ninety days past due loans and leases	$	84	$	75	$	87	$	103	$	195

Nonperforming Loans ($ in millions)^{(nonaccrual plus renegotiated)}
Commercial and industrial loans and leases	$	491	$	259	$	241	$	287	$	345
Commercial mortgage loans		46		93		146		146		296
Commercial construction loans		—		—		2		31		85
Residential mortgage loans		34		51		94		165		237
Home Equity		73		79		93		93		53
Other consumer loans and leases		29		36		42		35		42

Total nonperforming loans and leases (including held for sale)	$	673	$	518	$	618	$	757	$	1,058

Credit Charge-Offs ($ in millions)
Total losses charged-off	($	456)	($	542)	($	679)	($	637)	($	837)
Total recoveries of losses previously charged-off		94		96		104		136		133

Total net losses charged-off	($	362)	($	446)	($	575)	($	501)	($	704)

(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 were reclassified to other receivables rather than OREO upon foreclosure.

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Yearly Data


Regulation G Non-GAAP Reconciliation ($ in millions)	Years Ended December 31,
Regulation G Non-GAAP Reconciliation ($ in millions)	2016		2015		2014		2013		2012
Net interest income (U.S. GAAP) (a)	$	3,615	$	3,533	$	3,579	$	3,561	$	3,595
Add: FTE Adjustment		25		21		21		20		18

Net interest income on an FTE basis (b)		3,640		3,554		3,600		3,581		3,613

Noninterest income (c)		2,696		3,003		2,473		3,227		2,999
Noninterest expense (d)		3,903		3,775		3,709		3,961		4,081
Average interest-earning assets (e)		126,285		123,584		115,993		107,954		101,636

Net interest margin (U.S. GAAP) (a)/(e)		2.86%		2.86%		3.09%		3.30%		3.54%
Net interest margin on an FTE basis (b)/(e)		2.88%		2.88%		3.10%		3.32%		3.55%

Efficiency ratio (d)/(b)+(c)		61.6%		57.6%		61.1%		58.2%		61.7%

Income before income taxes (U.S. GAAP)		2,065		2,365		2,028		2,598		2,210
Add: FTE Adjustment		25		21		21		20		18
Income before income taxes on an FTE basis		2,090		2,386		2,049		2,618		2,228

Basel III Final Rule - Transition to fully phased-in
CET1 capital (transitional)	$	12,426	$	11,917		N/A		N/A		N/A
Less: Adjustments to CET1 capital from transitional to fully phased-in⁽¹⁾		(4)		(8)		N/A		N/A		N/A

CET1 capital (fully phased-in) (f)		12,422		11,909		N/A		N/A		N/A

Risk-weighted assets (transitional)		119,482		121,290		N/A		N/A		N/A
Add: Adjustments to risk-weighted assets from transitional to fully phased-in⁽²⁾		1,116		1,178		N/A		N/A		N/A

Risk-weighted assets (fully phased-in) (g)	$	120,598		122,468		N/A		N/A		N/A

Estimated CET1 capital ratio under Basel III Final Rule (fully phased-in) (f)/(g)		10.30%		9.72%		N/A		N/A		N/A

(1)

Primarily relates to disallowed intangible assets (other than goodwill and MSRs, net of associated deferred tax liabilities).

(2)

Primarily relates to higher risk-weighting for MSRs.

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