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Exhibit 99.1
| News Release | ||||
| CONTACT: | Bradley S. Adams (Analysts) | FOR IMMEDIATE RELEASE | ||
| (513) 534-0983 | July 20, 2006 | |||
| Debra DeCourcy (Media) | ||||
| (513) 534-4153 | ||||
FIFTH THIRD BANCORP REPORTS SECOND QUARTER 2006
EARNINGS OF $ 0.69 PER DILUTED SHARE
Fifth Third Bancorp’s second quarter 2006 earnings per diluted share were $.69 compared to $.65 in the first quarter of 2006 and $.75 per diluted share for the same period in 2005. Second quarter net income totaled $382 million compared to $363 million last quarter and $417 million in the same quarter last year. Return on average assets (ROA) and return on average equity (ROE) were 1.45 percent and 16.0 percent, respectively, compared to 1.63 percent and 18.1 percent in 2005’s second quarter.
“Second quarter trends in deposits, loans, fee income and credit quality reflect both an improving bottom line and outlook for the future,” stated George A. Schaefer, Jr., Chairman and CEO of Fifth Third Bancorp. “Our primary challenge, and focus for further improvement, lies in continuing to stabilize and improve the net interest margin. Over the last year and a half, we have maintained a disciplined, long-term balance sheet approach and have remained committed to not increasing leverage as short- and long-term interest rates have converged. With interest rate tightening appearing to be nearing an end and deposit trends showing positive momentum, significant potential exists to improve the net interest margin and drive positive operating leverage over the years to come. Fifth Third’s deposit and funding costs are competitive with market conditions and loan repricing into a higher rate environment remains strong. The employees of Fifth Third have demonstrated poise and perseverance during a difficult two years and I am very proud of their efforts to better serve our existing customers while continuing to maintain our historically strong track record of adding new customers. Through their hard work, I believe Fifth Third is positioned to improve shareholder returns by having taken the difficult, but necessary actions to reduce interest rate risk and ensure that consistently strong core banking performance reaches the bottom line.”
“In June, Fifth Third’s Board of Directors increased the quarterly cash dividend on its common shares to $.40 per share, an increase of 14 percent over the $.35 per share declared in June 2005 and a five percent increase over the $.38 per share declared in March 2006. This quarter’s dividend surpasses our level of current earnings growth but illustrates the importance we place on delivering value to our shareholders and the confidence we have in returning to better growth and profitability. On behalf of our management team and 22,000 employees, we thank our shareholders for their continued confidence and look forward to continuing to deliver improving performance.”
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Noninterest Income
Improved performance in certain business line revenue categories resulted in good noninterest income performance in the second quarter of 2006. Overall, noninterest income, excluding operating lease revenues and securities gains and losses, increased by five percent over the same quarter last year and 16 percent on an annualized sequential basis.
Electronic payment processing revenues increased 15 percent over the same quarter last year and 30 percent on an annualized sequential basis. Second quarter trends are representative of continuing momentum in attracting new customer relationships moderated by slower growth in the level of retail sales transaction volumes. Fifth Third remains confident in the near and intermediate term growth outlook in this business and continues to see significant opportunities in attracting new financial institution customers and retailers.
Sales of retail deposit accounts and corporate treasury management products led to an increase in deposit service revenues of two percent over the same quarter last year and 27 percent on an annualized sequential basis from seasonally weaker first quarter levels. Retail deposit revenues increased by three percent over the same quarter last year largely due to growth in the number of deposit accounts. Commercial deposit revenues increased by two percent over the same quarter last year with strong growth in relationships mitigated by the impact of higher interest rates on compensating balances in commercial deposit accounts.
Mortgage net service revenue totaled $41 million in the second quarter compared to $46 million in the same quarter last year. Mortgage originations remained strong and totaled $2.6 billion in the second quarter versus $2.2 billion last quarter and $2.6 billion in the second quarter of last year. Second quarter mortgage banking net service revenue was comprised of $27 million in total origination fees and loan sales and $14 million in net servicing revenue. Net servicing revenue was comprised of $30 million of gross servicing fees, less $17 million in amortization and plus $1 million of net valuation adjustments on mortgage servicing rights and losses and mark-to-market adjustments on both settled and outstanding free-standing derivative financial instruments utilized to hedge mortgage servicing rights. The mark-to-market adjustments and settlement of free-standing derivative financial instruments and corresponding valuation adjustments resulted from interest rate volatility and the resulting impact of changing prepayment speeds on the mortgage servicing portfolio. The mortgage servicing asset, net of the valuation reserve, was $483 million at June 30, 2006 on a servicing portfolio of $27.1 billion, compared to $462 million last quarter on a servicing portfolio of $26.4 billion.
Corporate banking revenue totaled $82 million in the second quarter this year, an increase of 10 percent over the $74 million delivered in the same quarter last year. Growth over the same quarter last year was highlighted by increases in loan and lease related fees and international revenues. Compared to the first quarter of 2006, corporate banking revenue increased $6 million due to growth in international revenues and customer interest rate derivative sales.
Investment advisory revenues increased by five percent over the same quarter last year and 22 percent on an annualized sequential basis. The increase in revenue compared to last year and the first quarter resulted primarily from improvements in brokerage and private client revenues. Fifth Third continues to focus its efforts on improving execution in retail brokerage and growing the institutional money management business by improving penetration and cross-sell in our large middle market commercial customer base. Fifth Third Investment Advisors, among the largest money managers in the Midwest, has $31 billion in assets under management and $203 billion in assets under care.
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Other noninterest income totaled $76 million in the second quarter, compared to $80 million last quarter and $93 million in the same quarter last year. The decrease in revenue relative to second quarter 2005 resulted primarily from continued runoff in the operating lease portfolio and declines in consumer loan and lease fees. Net securities gains totaled $14 million in the second quarter, compared to $15 million in the same quarter last year and $1 million last quarter. Second quarter 2006 net securities gains included a $24 million gain from the MasterCard Incorporated redemption of a portion of the common shares held by Fifth Third, partially offset by $10 million of losses on certain securities sold during the quarter.
Balance Sheet Trends
Retail transaction account growth and commercial customer additions resulted in good overall deposit growth in the second quarter of 2006 despite continuing mix shifts within the deposit base to higher cost time deposits. Compared to the second quarter last year, average core deposit balances increased by $3.8 billion, or seven percent, and average transaction account balances increased by $1.7 billion, or three percent. Compared to the first quarter of 2006, average core deposit balances increased by seven percent on an annualized basis and average transaction account balances increased by three percent on an annualized basis. Fifth Third is continuing to devote significant focus on attracting new deposit accounts and retaining existing accounts in order to fund loan growth.
Loan and lease balances exhibited continued strength with average loans and leases increasing by $6.3 billion, or nine percent, over second quarter last year and by $6.4 billion, or 10 percent on a period end basis. Compared to last quarter, average loan and lease balances increased by $1.5 billion, or eight percent on an annualized sequential basis. Average commercial loan and lease balances increased by 11 percent over the same quarter last year and by $1.0 billion, or 10 percent on an annualized sequential basis. Average consumer loan and lease balances, excluding residential mortgage, increased by nine percent over the same quarter last year with only modest growth relative to last quarter primarily due to reductions in the consumer lease portfolio and slowing growth in home equity loan balances.
Net Interest Income
Net interest income on a fully taxable equivalent basis decreased five percent, despite three percent growth in average earning assets, due to a 28 bp decline in the net interest margin compared to the second quarter of 2005. Margin compression resulted primarily from the prolonged and significant flattening of the yield curve, decreases in the net interest rate spread associated with increases in rates paid across deposit and other funding categories and continued mix shifts within the deposit base to higher cost time deposits. Earning asset growth trends relative to the same quarter last year have been muted, despite strong loan growth, by a $3.5 billion reduction in the average available-for-sale securities portfolio. Fifth Third is focused on maintaining recent strong loan growth trends and growing core deposit balances in order to improve the funding mix, more effectively fund future loan growth and improve net interest margin trends.
Compared to the first quarter of 2006, net interest income on a fully taxable equivalent basis was essentially unchanged due to 7 bp of contraction in the net interest margin. Margin compression in the second
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quarter was greater than initially expected and largely resulted from changes in short-term interest rate expectations during the quarter and the corresponding impact on the cost of certain non-core deposit funding categories.
Credit Quality
Net charge-offs as a percentage of average loans and leases were 37 bp in the second quarter, compared to 42 bp last quarter and 34 bp in the second quarter of 2005. Net charge-offs were $67 million in the second quarter, compared to $55 million in the same quarter last year and $73 million in the first quarter of 2006. Second quarter net charge-offs include losses related to the sale of approximately $39 million in nonaccrual loans and leases during the quarter. Nonperforming assets were 49 bp of total loans and leases and other real estate owned at June 30, 2006, compared to 51 bp last quarter and 51 bp in the year ago second quarter. Overall, the level of nonperforming loans and net charge-offs remains a small percentage of the total loan and lease portfolio. The provision for loan and lease losses totaled $71 million in the second quarter compared to $60 million in the same quarter last year and $78 million in the first quarter of 2006. The allowance for loan and lease losses represents 1.04 percent of total loans and leases outstanding as of June 30, 2006, compared to 1.05 percent last quarter and 1.09 percent in the same quarter last year.
Noninterest Expense
Total noninterest expense increased by four percent over the same quarter last year and increased by $28 million from first quarter 2006 levels. The increase in expenses compared to prior periods is primarily due to the recognition of approximately $9 million of incremental expense related to the adoption of SFAS No. 123(R) and the April 2006 issuance of stock-based awards to retirement-eligible employees, increases in volume-related bankcard expenditures and increases in occupancy expenditures related to the addition of de-novo banking centers.
Fifth Third expects growth in noninterest expenses in the second half of 2006 to continue to be modest with management focus in light of current revenue trends. Cost savings initiatives will be somewhat mitigated by continuing investment in certain high opportunity markets, including the expected addition of approximately 50 net new banking centers in 2006, in order to provide greater convenience to our customers and drive deposit and loan growth. Fifth Third’s efficiency ratio was 55.3 percent in the second quarter compared to 54.7 percent last quarter and 52.2 percent in the second quarter of 2005.
Conference Call
Fifth Third will host a conference call to discuss these second quarter financial results at 9:00 a.m. (Eastern Time) today. Investors, analysts and other interested parties may dial into the conference call at 877-309-0967 for domestic access and 706-679-3977 for international access (password: Fifth Third). A replay of the conference call will be available for approximately seven days by dialing 800-642-1687 for domestic access and 706-645-9291 for international access (passcode: 2837338#).
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Corporate Profile
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $106.1 billion in assets, operates 19 affiliates with 1,138 full-service Banking Centers, including 116 Bank Mart® locations open seven days a week inside select grocery stores and 2,034 Jeanie® ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania and Missouri. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2006, has $203 billion in assets under care, of which it manages $31 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed atwww.53.com. Fifth Third’s common stock is traded through the NASDAQ® National Global Select Market System under the symbol “FITB.”
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. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed with the United States Securities and Exchange Commission (SEC). Copies of this filing are available at no cost on the SEC’s Web site atwww.sec.gov or on the Registrant’s Web site atwww.53.com. 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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Quarterly Financial Review for June 30, 2006
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Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data
(unaudited)
| For the Three Months Ended | % Change | Year to Date | % Change | ||||||||||||||||
June 2006 | March 2006 | June 2005 | Yr/Yr | Seq | June 2006 | June 2005 | Yr/Yr | ||||||||||||
Income Statement Data | |||||||||||||||||||
Net interest income (a) | $716 | $718 | $758 | (5% | ) | - | $1,434 | $1,517 | (5% | ) | |||||||||
Noninterest income | 655 | 617 | 635 | 3% | 6% | 1,272 | 1,242 | 2% | |||||||||||
Total revenue (a) | 1,371 | 1,335 | 1,393 | (2% | ) | 3% | 2,706 | 2,759 | (2% | ) | |||||||||
Provision for loan and lease losses | 71 | 78 | 60 | 18% | (8% | ) | 149 | 127 | 17% | ||||||||||
Noninterest expense | 759 | 731 | 728 | 4% | 4% | 1,490 | 1,432 | 4% | |||||||||||
Net income | 382 | 363 | 417 | (8% | ) | 5% | 746 | 822 | (9% | ) | |||||||||
Common Share Data | |||||||||||||||||||
Earnings per share, basic | $0.69 | $0.66 | $0.75 | (8% | ) | 5% | $1.34 | $1.48 | (9% | ) | |||||||||
Earnings per share, diluted | 0.69 | 0.65 | 0.75 | (8% | ) | 6% | 1.34 | 1.47 | (9% | ) | |||||||||
Cash dividends per common share | 0.40 | 0.38 | 0.35 | 14% | 5% | 0.78 | 0.70 | 11% | |||||||||||
Book value per share | 17.13 | 17.01 | 16.82 | 2% | 1% | 17.13 | 16.82 | 2% | |||||||||||
Dividend payout ratio | 58.0% | 58.5% | 46.7% | 24% | (1% | ) | 58.2% | 47.6% | 22% | ||||||||||
Market price per share: | |||||||||||||||||||
High | $41.02 | $41.43 | $44.67 | (8% | ) | (1% | ) | $41.43 | $48.12 | (14% | ) | ||||||||
Low | 35.86 | 36.30 | 40.24 | (11% | ) | (1% | ) | 35.86 | 40.24 | (11% | ) | ||||||||
End of period | 36.95 | 39.36 | 41.17 | (10% | ) | (6% | ) | 36.95 | 41.17 | (10% | ) | ||||||||
Common shares outstanding (in thousands) | 557,894 | 556,501 | 555,938 | - | - | 557,894 | 555,938 | - | |||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||||||
Basic | 554,978 | 554,398 | 553,872 | - | - | 554,689 | 555,110 | - | |||||||||||
Diluted | 557,489 | 556,869 | 558,176 | - | - | 557,181 | 559,908 | - | |||||||||||
Market capitalization | $20,614 | $21,904 | $22,888 | (10% | ) | (6% | ) | $20,614 | $22,888 | (10% | ) | ||||||||
Price/earnings ratio (b) | 13.94 | 14.52 | 15.77 | (12% | ) | (4% | ) | 13.94 | 15.77 | (12% | ) | ||||||||
Financial Ratios | |||||||||||||||||||
Return on average assets | 1.45% | 1.41% | 1.63% | (11% | ) | 3% | 1.43% | 1.63% | (12% | ) | |||||||||
Return on average equity | 16.0% | 15.3% | 18.1% | (12% | ) | 5% | 15.7% | 18.1% | (13% | ) | |||||||||
Noninterest income as a percent of total revenue | 48% | 46% | 46% | 4% | 4% | 47% | 45% | 4% | |||||||||||
Average equity as a percent of average assets | 9.09% | 9.17% | 8.98% | 1% | (1% | ) | 9.13% | 9.00% | 1% | ||||||||||
Net interest margin (a) | 3.01% | 3.08% | 3.29% | (9% | ) | (2% | ) | 3.04% | 3.33% | (9% | ) | ||||||||
Efficiency (a) | 55.3% | 54.7% | 52.2% | 6% | 1% | 55.0% | 51.9% | 6% | |||||||||||
Effective tax rate | 28.5% | 30.7% | 30.1% | (5% | ) | (7% | ) | 29.6% | 30.5% | (3% | ) | ||||||||
Credit Quality | |||||||||||||||||||
Net losses charged off | $67 | $73 | $55 | 22% | (8% | ) | $140 | $118 | 18% | ||||||||||
Net losses charged off as a percent of average loans and leases | 0.37% | 0.42% | 0.34% | 9% | (12% | ) | 0.40% | 0.37% | 8% | ||||||||||
Allowance for loan and lease losses as a percent of loans and leases | 1.04% | 1.05% | 1.09% | (5% | ) | (1% | ) | 1.04% | 1.09% | (5% | ) | ||||||||
Allowance for credit losses as a percent of loans and leases | 1.14% | 1.14% | 1.20% | (5% | ) | - | 1.14% | 1.20% | (5% | ) | |||||||||
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned | 0.49% | 0.51% | 0.51% | (4% | ) | (4% | ) | 0.49% | 0.51% | (4% | ) | ||||||||
Average Balances | |||||||||||||||||||
Loans and leases, including held for sale | $73,093 | $71,634 | $66,762 | 9% | 2% | $72,367 | $65,924 | 10% | |||||||||||
Total securities and other short-term investments | 22,439 | 22,917 | 25,716 | (13% | ) | (2% | ) | 22,677 | 25,916 | (12% | ) | ||||||||
Total assets | 105,741 | 104,736 | 102,765 | 3% | 1% | 105,241 | 101,891 | 3% | |||||||||||
Transaction deposits | 49,282 | 48,951 | 47,624 | 3% | 1% | 49,116 | 47,603 | 3% | |||||||||||
Core deposits | 59,731 | 58,700 | 55,910 | 7% | 2% | 59,217 | 55,641 | 6% | |||||||||||
Interest-bearing deposits | 55,665 | 53,746 | 49,858 | 12% | 4% | 54,710 | 49,811 | 10% | |||||||||||
Short-term borrowings | 8,740 | 9,271 | 9,372 | (7% | ) | (6% | ) | 9,003 | 9,623 | (6% | ) | ||||||||
Long-term debt | 14,465 | 15,132 | 17,049 | (15% | ) | (4% | ) | 14,798 | 16,331 | (9% | ) | ||||||||
Shareholders’ equity | 9,607 | 9,601 | 9,224 | 4% | - | 9,604 | 9,166 | 5% | |||||||||||
Regulatory Capital Ratios (c) | |||||||||||||||||||
Tier I capital | 8.53% | 8.49% | 8.48% | 1% | - | 8.53% | 8.48% | 1% | |||||||||||
Total risk-based capital | 10.47% | 10.47% | 10.80% | (3% | ) | - | 10.47% | 10.80% | (3% | ) | |||||||||
Tier I leverage | 8.35% | 8.24% | 7.76% | 8% | 1% | 8.35% | 7.76% | 8% | |||||||||||
Operations | |||||||||||||||||||
Banking centers | 1,138 | 1,132 | 1,098 | 4% | 1% | 1,138 | 1,098 | 4% | |||||||||||
ATMs | 2,034 | 2,025 | 1,994 | 2% | - | 2,034 | 1,994 | 2% | |||||||||||
Full-time equivalent employees | 21,230 | 21,497 | 21,594 | (2% | ) | (1% | ) | 21,230 | 21,594 | (2% | ) | ||||||||
| (a) | Presented on a fully taxable equivalent basis |
| (b) | Based on the most recent twelve-month diluted earnings per share and end of period stock prices |
| (c) | Current period regulatory capital ratios are estimates |
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Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data
(unaudited)
| For the Three Months Ended | ||||||||||
June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | ||||||
Income Statement Data | ||||||||||
Net interest income (a) | $716 | $718 | $735 | $745 | $758 | |||||
Noninterest income | 655 | 617 | 636 | 622 | 635 | |||||
Total revenue (a) | 1,371 | 1,335 | 1,371 | 1,367 | 1,393 | |||||
Provision for loan and lease losses | 71 | 78 | 134 | 69 | 60 | |||||
Noninterest expense | 759 | 731 | 763 | 732 | 728 | |||||
Net income | 382 | 363 | 332 | 395 | 417 | |||||
Common Share Data | ||||||||||
Earnings per share, basic | $0.69 | $0.66 | $0.60 | $0.71 | $0.75 | |||||
Earnings per share, diluted | 0.69 | 0.65 | 0.60 | 0.71 | 0.75 | |||||
Cash dividends per common share | 0.40 | 0.38 | 0.38 | 0.38 | 0.35 | |||||
Book value per share | 17.13 | 17.01 | 17.00 | 16.93 | 16.82 | |||||
Dividend payout ratio | 58.0% | 58.5% | 63.3% | 53.5% | 46.7% | |||||
Market price per share: | ||||||||||
High | $41.02 | $41.43 | $42.50 | $43.99 | $44.67 | |||||
Low | 35.86 | 36.30 | 35.04 | 36.38 | 40.24 | |||||
End of period | 36.95 | 39.36 | 37.72 | 36.75 | 41.17 | |||||
Common shares outstanding (in thousands) | 557,894 | 556,501 | 555,623 | 554,400 | 555,938 | |||||
Average common shares outstanding (in thousands): | ||||||||||
Basic | 554,978 | 554,398 | 553,591 | 553,855 | 553,872 | |||||
Diluted | 557,489 | 556,869 | 556,322 | 557,681 | 558,176 | |||||
Market capitalization | $20,614 | $21,904 | $20,958 | $20,374 | $22,888 | |||||
Price/earnings ratio (b) | 13.94 | 14.52 | 13.57 | 14.76 | 15.77 | |||||
Financial Ratios | ||||||||||
Return on average assets | 1.45% | 1.41% | 1.27% | 1.51% | 1.63% | |||||
Return on average equity | 16.0% | 15.3% | 13.9% | 16.6% | 18.1% | |||||
Noninterest income as a percent of total revenue | 48% | 46% | 46% | 46% | 46% | |||||
Average equity as a percent of average assets | 9.09% | 9.17% | 9.12% | 9.11% | 8.98% | |||||
Net interest margin (a) | 3.01% | 3.08% | 3.11% | 3.16% | 3.29% | |||||
Efficiency (a) | 55.3% | 54.7% | 55.6% | 53.5% | 52.2% | |||||
Effective tax rate | 28.5% | 30.7% | 28.9% | 29.2% | 30.1% | |||||
Credit Quality | ||||||||||
Net losses charged off | $67 | $73 | $117 | $64 | $55 | |||||
Net losses charged off as a percent of | 0.37% | 0.42% | 0.67% | 0.38% | 0.34% | |||||
Allowance for loan and lease losses as a | 1.04% | 1.05% | 1.06% | 1.06% | 1.09% | |||||
Allowance for credit losses as a percent of loans and leases | 1.14% | 1.14% | 1.16% | 1.16% | 1.20% | |||||
Nonperforming assets as a percent of loans, leases | 0.49% | 0.51% | 0.52% | 0.51% | 0.51% | |||||
Average Balances | ||||||||||
Loans and leases, including held for sale | $73,093 | $71,634 | $70,489 | $68,556 | $66,762 | |||||
Total securities and other short-term investments | 22,439 | 22,917 | 23,274 | 24,915 | 25,716 | |||||
Total assets | 105,741 | 104,736 | 103,988 | 103,699 | 102,765 | |||||
Transaction deposits | 49,282 | 48,951 | 48,937 | 47,568 | 47,624 | |||||
Core deposits | 59,731 | 58,700 | 58,080 | 56,298 | 55,910 | |||||
Interest-bearing deposits | 55,665 | 53,746 | 52,038 | 50,402 | 49,858 | |||||
Short-term borrowings | 8,740 | 9,271 | 9,179 | 9,620 | 9,372 | |||||
Long-term debt | 14,465 | 15,132 | 15,956 | 16,914 | 17,049 | |||||
Shareholders’ equity | 9,607 | 9,601 | 9,480 | 9,451 | 9,224 | |||||
Regulatory Capital Ratios (c) | ||||||||||
Tier I capital | 8.53% | 8.49% | 8.38% | 8.45% | 8.48% | |||||
Total risk-based capital | 10.47% | 10.47% | 10.45% | 10.57% | 10.80% | |||||
Tier I leverage | 8.35% | 8.24% | 8.08% | 7.93% | 7.76% | |||||
Operations | ||||||||||
Banking centers | 1,138 | 1,132 | 1,119 | 1,106 | 1,098 | |||||
ATMs | 2,034 | 2,025 | 2,024 | 1,996 | 1,994 | |||||
Full-time equivalent employees | 21,230 | 21,497 | 21,681 | 21,674 | 21,594 | |||||
| (a) | Presented on a fully taxable equivalent basis |
| (b) | Based on the most recent twelve-month diluted earnings per share and end of period stock prices |
| (c) | Current period regulatory capital ratios are estimates |
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Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions
(unaudited)
| For the Three Months Ended | % Change | Year to Date | % Change | ||||||||||||||||
| June 2006 | March 2006 | June 2005 | Yr/Yr | Seq | June 2006 | June 2005 | Yr/Yr | ||||||||||||
Interest Income | |||||||||||||||||||
Interest and fees on loans and leases | $1,227 | $1,146 | $936 | 31% | 7% | $2,375 | $1,803 | 32% | |||||||||||
Interest on securities: | |||||||||||||||||||
Taxable | 239 | 242 | 268 | (10% | ) | (1% | ) | 481 | 534 | (10% | ) | ||||||||
Exempt from income taxes | 8 | 8 | 10 | (25% | ) | (6% | ) | 16 | 20 | (24% | ) | ||||||||
Total interest on securities | 247 | 250 | 278 | (11% | ) | (1% | ) | 497 | 554 | (10% | ) | ||||||||
Interest on other short-term investments | 3 | 2 | 1 | 137% | 31% | 4 | 2 | 91% | |||||||||||
Total interest income | 1,477 | 1,398 | 1,215 | 22% | 6% | 2,876 | 2,359 | 22% | |||||||||||
Interest Expense | |||||||||||||||||||
Interest on deposits: | |||||||||||||||||||
Interest checking | 102 | 99 | 71 | 42% | 3% | 201 | 134 | 49% | |||||||||||
Savings | 87 | 76 | 35 | 150% | 14% | 163 | 61 | 166% | |||||||||||
Money market | 64 | 55 | 28 | 129% | 18% | 119 | 53 | 123% | |||||||||||
Other time | 105 | 89 | 61 | 72% | 16% | 194 | 113 | 72% | |||||||||||
Certificates - $100,000 and over | 61 | 48 | 29 | 114% | 28% | 109 | 54 | 102% | |||||||||||
Foreign office | 52 | 44 | 29 | 80% | 19% | 96 | 56 | 73% | |||||||||||
Total interest on deposits | 471 | 411 | 253 | 86% | 14% | 882 | 471 | 87% | |||||||||||
Interest on federal funds purchased | 48 | 51 | 29 | 65% | (5% | ) | 99 | 54 | 83% | ||||||||||
Interest on short-term bank notes | - | - | 2 | (100% | ) | NM | - | 6 | (100% | ) | |||||||||
Interest on other short-term borrowings | 52 | 44 | 34 | 53% | 17% | 97 | 61 | 60% | |||||||||||
Interest on long-term debt | 196 | 181 | 147 | 33% | 9% | 377 | 267 | 42% | |||||||||||
Total interest expense | 767 | 687 | 465 | 65% | 12% | 1,455 | 859 | 69% | |||||||||||
Net Interest Income | 710 | 711 | 750 | (5% | ) | - | 1,421 | 1,500 | (5% | ) | |||||||||
Provision for loan and lease losses | 71 | 78 | 60 | 18% | (8% | ) | 149 | 127 | 17% | ||||||||||
Net interest income after provision for loan and lease losses | 639 | 633 | 690 | (7% | ) | 1% | 1,272 | 1,373 | (7% | ) | |||||||||
Noninterest Income | |||||||||||||||||||
Electronic payment processing revenue | 211 | 196 | 183 | 15% | 7% | 407 | 354 | 15% | |||||||||||
Service charges on deposits | 135 | 126 | 132 | 2% | 7% | 261 | 253 | 3% | |||||||||||
Mortgage banking net revenue | 41 | 47 | 46 | (10% | ) | (12% | ) | 88 | 87 | 1% | |||||||||
Investment advisory revenue | 96 | 91 | 92 | 5% | 6% | 187 | 182 | 3% | |||||||||||
Corporate banking revenue | 82 | 76 | 74 | 10% | 8% | 157 | 136 | 16% | |||||||||||
Other noninterest income | 76 | 80 | 93 | (19% | ) | (5% | ) | 157 | 200 | (23% | ) | ||||||||
Securities gains (losses), net | 14 | 1 | 15 | (6% | ) | 1,479% | 15 | 30 | (48% | ) | |||||||||
Total noninterest income | 655 | 617 | 635 | 3% | 6% | 1,272 | 1,242 | 2% | |||||||||||
Noninterest Expense | |||||||||||||||||||
Salaries, wages and incentives | 303 | 284 | 295 | 3% | 7% | 586 | 561 | 5% | |||||||||||
Employee benefits | 69 | 87 | 67 | 4% | (21% | ) | 156 | 148 | 5% | ||||||||||
Equipment expense | 29 | 27 | 25 | 16% | 9% | 56 | 50 | 12% | |||||||||||
Net occupancy expense | 59 | 58 | 54 | 9% | 2% | 118 | 108 | 9% | |||||||||||
Other noninterest expense | 299 | 275 | 287 | 4% | 9% | 574 | 565 | 1% | |||||||||||
Total noninterest expense | 759 | 731 | 728 | 4% | 4% | 1,490 | 1,432 | 4% | |||||||||||
Income before income taxes and cumulative effect | 535 | 519 | 597 | (11% | ) | 3% | 1,054 | 1,183 | (11% | ) | |||||||||
Applicable income taxes | 153 | 160 | 180 | (16% | ) | (5% | ) | 312 | 361 | (14% | ) | ||||||||
Income before cumulative effect | 382 | 359 | 417 | (8% | ) | 6% | 742 | 822 | (10% | ) | |||||||||
Cumulative effect of change in accounting principle, net of tax (b) | - | 4 | - | NM | (100% | ) | 4 | - | NM | ||||||||||
Net income | $382 | $363 | $417 | (8% | ) | 5% | $746 | $822 | (9% | ) | |||||||||
Net income available to common shareholders (a) | $382 | $363 | $417 | (8% | ) | 5% | $745 | $821 | (9% | ) | |||||||||
| (a) | Dividends on preferred stock are $.185 million for all quarters presented |
| (b) | Reflects a benefit of $3.5 million (net of $1.7 million of tax) for the adoption of SFAS No. 123(R) as of January 1, 2006 due to the recognition of an estimate of forfeiture experience to be realized for all stock-based awards |
9
Table of Contents
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income (Taxable Equivalent)
$ in millions
(unaudited)
| For the Three Months Ended | ||||||||||
June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | ||||||
Interest Income | ||||||||||
Interest and fees on loans and leases | $1,227 | $1,146 | $1,098 | $1,017 | $936 | |||||
Interest on securities: | ||||||||||
Taxable | 239 | 242 | 243 | 255 | 268 | |||||
Exempt from income taxes | 8 | 8 | 9 | 10 | 10 | |||||
Total interest on securities | 247 | 250 | 252 | 265 | 278 | |||||
Interest on other short-term investments | 3 | 2 | 2 | 1 | 1 | |||||
Total interest income | 1,477 | 1,398 | 1,352 | 1,283 | 1,215 | |||||
Taxable equivalent adjustment | 6 | 7 | 7 | 8 | 8 | |||||
Total interest income (taxable equivalent) | 1,483 | 1,405 | 1,359 | 1,291 | 1,223 | |||||
Interest Expense | ||||||||||
Interest on deposits: | ||||||||||
Interest checking | 102 | 99 | 94 | 86 | 71 | |||||
Savings | 87 | 76 | 67 | 48 | 35 | |||||
Money market | 64 | 55 | 50 | 37 | 28 | |||||
Other time | 105 | 89 | 81 | 68 | 61 | |||||
Certificates - $100,000 and over | 61 | 48 | 40 | 34 | 29 | |||||
Foreign office | 52 | 44 | 37 | 34 | 29 | |||||
Total interest on deposits | 471 | 411 | 369 | 307 | 253 | |||||
Interest on federal funds purchased | 48 | 51 | 49 | 35 | 29 | |||||
Interest on short-term bank notes | - | - | - | - | 2 | |||||
Interest on other short-term borrowings | 52 | 44 | 36 | 41 | 34 | |||||
Interest on long-term debt | 196 | 181 | 170 | 163 | 147 | |||||
Total interest expense | 767 | 687 | 624 | 546 | 465 | |||||
Net interest income (taxable equivalent) | 716 | 718 | 735 | 745 | 758 | |||||
Provision for loan and lease losses | 71 | 78 | 134 | 69 | 60 | |||||
Net interest income (taxable equivalent) after | 645 | 640 | 601 | 676 | 698 | |||||
Noninterest Income | ||||||||||
Electronic payment processing revenue | 211 | 196 | 204 | 190 | 183 | |||||
Service charges on deposits | 135 | 126 | 133 | 137 | 132 | |||||
Mortgage banking net revenue | 41 | 47 | 42 | 45 | 46 | |||||
Investment advisory revenue | 96 | 91 | 87 | 89 | 92 | |||||
Corporate banking revenue | 82 | 76 | 92 | 71 | 74 | |||||
Other noninterest income | 76 | 80 | 77 | 82 | 93 | |||||
Securities gains (losses), net | 14 | 1 | 1 | 8 | 15 | |||||
Total noninterest income | 655 | 617 | 636 | 622 | 635 | |||||
Noninterest Expense | ||||||||||
Salaries, wages and incentives | 303 | 284 | 287 | 285 | 295 | |||||
Employee benefits | 69 | 87 | 65 | 70 | 67 | |||||
Equipment expense | 29 | 27 | 29 | 26 | 25 | |||||
Net occupancy expense | 59 | 58 | 59 | 54 | 54 | |||||
Other noninterest expense | 299 | 275 | 323 | 297 | 287 | |||||
Total noninterest expense | 759 | 731 | 763 | 732 | 728 | |||||
Income before income taxes and cumulative effect (taxable equivalent) | 541 | 526 | 474 | 566 | 605 | |||||
Taxable equivalent adjustment | 6 | 7 | 7 | 8 | 8 | |||||
Income before income taxes and cumulative effect | 535 | 519 | 467 | 558 | 597 | |||||
Applicable income taxes | 153 | 160 | 135 | 163 | 180 | |||||
Income before cumulative effect | 382 | 359 | 332 | 395 | 417 | |||||
Cumulative effect of change in accounting principle, net of tax (b) | - | 4 | - | - | - | |||||
Net income | $382 | $363 | $332 | $395 | $417 | |||||
Net income available to common shareholders (a) | $382 | $363 | $332 | $395 | $417 | |||||
| (a) | Dividends on preferred stock are $.185 million for all quarters presented |
| (b) | Reflects a benefit of $3.5 million (net of $1.7 million of tax) for the adoption of SFAS No. 123(R) as of January 1, 2006 due to the recognition of an estimate of forfeiture experience to be realized for all stock-based awards |
10
Table of Contents
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
(unaudited)
| As of | % Change | ||||||||||||||
June 2006 | March 2006 | June 2005 | Yr/Yr | Annual Seq | |||||||||||
Assets | |||||||||||||||
Cash and due from banks | $2,670 | $2,494 | $2,781 | (4% | ) | 28% | |||||||||
Available-for-sale and other securities (a) | 20,345 | 21,276 | 24,647 | (17% | ) | (18% | ) | ||||||||
Held-to-maturity securities (b) | 358 | 365 | 307 | 17% | (8% | ) | |||||||||
Trading securities | 173 | 156 | 84 | 105% | 42% | ||||||||||
Other short-term investments | 207 | 159 | 113 | 84% | 123% | ||||||||||
Loans held for sale | 931 | 744 | 783 | 19% | 101% | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial loans | 20,618 | 19,878 | 18,013 | 14% | 15% | ||||||||||
Construction loans | 6,698 | 6,600 | 6,201 | 8% | 6% | ||||||||||
Commercial mortgage loans | 9,792 | 9,861 | 9,091 | 8% | (3% | ) | |||||||||
Commercial lease financing | 4,899 | 4,911 | 4,639 | 6% | (1% | ) | |||||||||
Residential mortgage loans | 7,875 | 7,708 | 7,042 | 12% | 9% | ||||||||||
Consumer loans | 22,556 | 22,210 | 20,610 | 9% | 6% | ||||||||||
Consumer lease financing | 1,420 | 1,577 | 1,994 | (29% | ) | (40% | ) | ||||||||
Unearned income | (1,281 | ) | (1,323 | ) | (1,294 | ) | (1% | ) | (13% | ) | |||||
Portfolio loans and leases | 72,577 | 71,422 | 66,296 | 9% | 6% | ||||||||||
Allowance for loan and lease losses | (753 | ) | (749 | ) | (722 | ) | 4% | 2% | |||||||
Portfolio loans and leases, net | 71,824 | 70,673 | 65,574 | 10% | 7% | ||||||||||
Bank premises and equipment | 1,853 | 1,798 | 1,581 | 17% | 12% | ||||||||||
Operating lease equipment | 150 | 137 | 161 | (7% | ) | 38% | |||||||||
Goodwill | 2,194 | 2,194 | 2,178 | 1% | - | ||||||||||
Intangible assets | 185 | 189 | 231 | (20% | ) | (9% | ) | ||||||||
Servicing rights | 489 | 468 | 378 | 29% | 18% | ||||||||||
Other assets | 4,732 | 4,391 | 4,342 | 9% | 31% | ||||||||||
Total assets | $106,111 | $105,044 | $103,160 | 3% | 4% | ||||||||||
Liabilities | |||||||||||||||
Deposits: | |||||||||||||||
Demand | $14,078 | $14,134 | $14,393 | (2% | ) | (2% | ) | ||||||||
Interest checking | 16,788 | 17,511 | 18,811 | (11% | ) | (17% | ) | ||||||||
Savings | 12,061 | 11,902 | 9,653 | 25% | 5% | ||||||||||
Money market | 6,505 | 6,399 | 4,732 | 37% | 7% | ||||||||||
Other time | 10,627 | 10,105 | 8,513 | 25% | 21% | ||||||||||
Certificates - $100,000 and over | 5,691 | 5,085 | 3,986 | 43% | 48% | ||||||||||
Foreign office | 4,773 | 3,874 | 3,089 | 55% | 93% | ||||||||||
Total deposits | 70,523 | 69,010 | 63,177 | 12% | 9% | ||||||||||
Federal funds purchased | 2,493 | 3,715 | 4,523 | (45% | ) | (132% | ) | ||||||||
Short-term bank notes | - | - | - | NM | NM | ||||||||||
Other short-term borrowings | 5,275 | 4,472 | 4,972 | 6% | 72% | ||||||||||
Accrued taxes, interest and expenses | 1,995 | 2,169 | 2,456 | (19% | ) | (32% | ) | ||||||||
Other liabilities | 1,767 | 1,463 | 1,185 | 49% | 83% | ||||||||||
Long-term debt | 14,502 | 14,746 | 17,494 | (17% | ) | (7% | ) | ||||||||
Total liabilities | 96,555 | 95,575 | 93,807 | 3% | 4% | ||||||||||
Total shareholders’ equity (c) | 9,556 | 9,469 | 9,353 | 2% | 4% | ||||||||||
Total liabilities and shareholders’ equity | $106,111 | $105,044 | $103,160 | 3% | 4% | ||||||||||
(a) Amortized cost | $21,376 | $22,127 | $24,814 | (14% | ) | (14% | ) | ||||||||
(b) Market values | 358 | 365 | 307 | 17% | (8% | ) | |||||||||
(c) Common shares, stated value $2.22 per share (in thousands): |
| ||||||||||||||
Authorized | 1,300,000 | 1,300,000 | 1,300,000 | - | - | ||||||||||
Outstanding, excluding treasury | 557,894 | 556,501 | 555,938 | - | 1% | ||||||||||
Treasury | 25,533 | 26,926 | 27,489 | (7% | ) | (21% | ) | ||||||||
11
Table of Contents
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
(unaudited)
| As of | |||||||||||||||
June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | |||||||||||
Assets | |||||||||||||||
Cash and due from banks | $2,670 | $2,494 | $3,078 | $3,372 | $2,781 | ||||||||||
Available-for-sale and other securities (a) | 20,345 | 21,276 | 21,924 | 22,537 | 24,647 | ||||||||||
Held-to-maturity securities (b) | 358 | 365 | 389 | 332 | 307 | ||||||||||
Trading securities | 173 | 156 | 117 | 105 | 84 | ||||||||||
Other short-term investments | 207 | 159 | 158 | 113 | 113 | ||||||||||
Loans held for sale | 931 | 744 | 1,304 | 1,237 | 783 | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial loans | 20,618 | 19,878 | 19,174 | 18,591 | 18,013 | ||||||||||
Construction loans | 6,698 | 6,600 | 7,037 | 6,529 | 6,201 | ||||||||||
Commercial mortgage loans | 9,792 | 9,861 | 9,188 | 9,138 | 9,091 | ||||||||||
Commercial lease financing | 4,899 | 4,911 | 4,852 | 4,731 | 4,639 | ||||||||||
Residential mortgage loans | 7,875 | 7,708 | 7,152 | 7,353 | 7,042 | ||||||||||
Consumer loans | 22,556 | 22,210 | 22,084 | 21,786 | 20,610 | ||||||||||
Consumer lease financing | 1,420 | 1,577 | 1,751 | 1,910 | 1,994 | ||||||||||
Unearned income | (1,281 | ) | (1,323 | ) | (1,313 | ) | (1,284 | ) | (1,294 | ) | |||||
Portfolio loans and leases | 72,577 | 71,422 | 69,925 | 68,754 | 66,296 | ||||||||||
Allowance for loan and lease losses | (753 | ) | (749 | ) | (744 | ) | (727 | ) | (722 | ) | |||||
Portfolio loans and leases, net | 71,824 | 70,673 | 69,181 | 68,027 | 65,574 | ||||||||||
Bank premises and equipment | 1,853 | 1,798 | 1,726 | 1,643 | 1,581 | ||||||||||
Operating lease equipment | 150 | 137 | 143 | 159 | 161 | ||||||||||
Goodwill | 2,194 | 2,194 | 2,169 | 2,176 | 2,178 | ||||||||||
Intangible assets | 185 | 189 | 208 | 220 | 231 | ||||||||||
Servicing rights | 489 | 468 | 441 | 417 | 378 | ||||||||||
Other assets | 4,732 | 4,391 | 4,387 | 4,270 | 4,342 | ||||||||||
Total assets | $106,111 | $105,044 | $105,225 | $104,608 | $103,160 | ||||||||||
Liabilities | |||||||||||||||
Deposits: | |||||||||||||||
Demand | $14,078 | $14,134 | $14,609 | $14,294 | $14,393 | ||||||||||
Interest checking | 16,788 | 17,511 | 18,282 | 18,169 | 18,811 | ||||||||||
Savings | 12,061 | 11,902 | 11,276 | 10,437 | 9,653 | ||||||||||
Money market | 6,505 | 6,399 | 6,129 | 5,855 | 4,732 | ||||||||||
Other time | 10,627 | 10,105 | 9,313 | 8,867 | 8,513 | ||||||||||
Certificates - $100,000 and over | 5,691 | 5,085 | 4,343 | 4,195 | 3,986 | ||||||||||
Foreign office | 4,773 | 3,874 | 3,482 | 3,678 | 3,089 | ||||||||||
Total deposits | 70,523 | 69,010 | 67,434 | 65,495 | 63,177 | ||||||||||
Federal funds purchased | 2,493 | 3,715 | 5,323 | 3,548 | 4,523 | ||||||||||
Short-term bank notes | - | - | - | - | - | ||||||||||
Other short-term borrowings | 5,275 | 4,472 | 4,246 | 6,075 | 4,972 | ||||||||||
Accrued taxes, interest and expenses | 1,995 | 2,169 | 2,142 | 2,136 | 2,456 | ||||||||||
Other liabilities | 1,767 | 1,463 | 1,407 | 1,447 | 1,185 | ||||||||||
Long-term debt | 14,502 | 14,746 | 15,227 | 16,522 | 17,494 | ||||||||||
Total liabilities | 96,555 | 95,575 | 95,779 | 95,223 | 93,807 | ||||||||||
Total shareholders’ equity (c) | 9,556 | 9,469 | 9,446 | 9,385 | 9,353 | ||||||||||
Total liabilities and shareholders’ equity | $106,111 | $105,044 | $105,225 | $104,608 | $103,160 | ||||||||||
(a) Amortized cost | $21,376 | $22,127 | $22,533 | $22,993 | $24,814 | ||||||||||
(b) Market values | 358 | 365 | 389 | 332 | 307 | ||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): |
| ||||||||||||||
Authorized | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | ||||||||||
Outstanding, excluding treasury | 557,894 | 556,501 | 555,623 | 554,400 | 555,938 | ||||||||||
Treasury | 25,533 | 26,926 | 27,804 | 29,027 | 27,489 | ||||||||||
12
Table of Contents
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Shareholders’ Equity
$ in millions
(unaudited)
| For the Three Months Ended | Year to Date | |||||||||||
June 2006 | June 2005 | June 2006 | June 2005 | |||||||||
Total shareholders’ equity, beginning | $9,469 | $8,888 | $9,446 | $8,924 | ||||||||
Net income | 382 | 417 | 746 | 822 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||
Change in unrealized gains and (losses): | ||||||||||||
Available-for-sale securities | (117 | ) | 164 | (275 | ) | (59 | ) | |||||
Qualifying cash flow hedges | 2 | 24 | 5 | 33 | ||||||||
Change in additional pension liability | - | - | - | 60 | ||||||||
Comprehensive income | 267 | 605 | 476 | 856 | ||||||||
Cash dividends declared: | ||||||||||||
Common stock | (223 | ) | (195 | ) | (434 | ) | (389 | ) | ||||
Preferred stock (a) | - | - | - | - | ||||||||
Stock-based awards exercised, including treasury shares issued | 9 | 15 | 24 | 40 | ||||||||
Stock-based compensation expense | 30 | 19 | 38 | 37 | ||||||||
Loans repaid (issued) related to exercise of stock-based awards, net | 2 | 2 | 5 | 4 | ||||||||
Change in corporate tax benefit related to stock-based compensation | 1 | 12 | - | 14 | ||||||||
Shares acquired for treasury | - | (5 | ) | - | (1,645 | ) | ||||||
Shares issued in business combination | - | 11 | - | 1,509 | ||||||||
Other | 1 | 1 | 1 | 3 | ||||||||
Total shareholders’ equity, ending | $9,556 | $9,353 | $9,556 | $9,353 | ||||||||
| (a) | Dividends on preferred stock are $.185 million for all quarters presented |
13
Table of Contents
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
| For the Three Months Ended | % Change | ||||||||||||||
June 2006 | March 2006 | June 2005 | Yr/Yr | Annual Seq | |||||||||||
Assets | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans and leases | $73,093 | $71,634 | $66,762 | 9% | 8% | ||||||||||
Taxable securities | 21,642 | 22,116 | 24,771 | (13% | ) | (9% | ) | ||||||||
Tax exempt securities | 616 | 644 | 815 | (24% | ) | (18% | ) | ||||||||
Other short-term investments | 181 | 157 | 130 | 39% | 60% | ||||||||||
Total interest-earning assets | 95,532 | 94,551 | 92,478 | 3% | 4% | ||||||||||
Cash and due from banks | 2,564 | 2,668 | 2,822 | (9% | ) | (16% | ) | ||||||||
Other assets | 8,393 | 8,261 | 8,182 | 3% | 6% | ||||||||||
Allowance for loan and lease losses | (748 | ) | (744 | ) | (717 | ) | 4% | 2% | |||||||
Total assets | $105,741 | $104,736 | $102,765 | 3% | 4% | ||||||||||
Liabilities | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||
Interest checking | $17,025 | $17,603 | $19,267 | (12% | ) | (13% | ) | ||||||||
Savings | 12,064 | 11,588 | 9,697 | 24% | 16% | ||||||||||
Money market | 6,429 | 6,086 | 4,755 | 35% | 23% | ||||||||||
Other time | 10,449 | 9,749 | 8,286 | 26% | 29% | ||||||||||
Certificates - $100,000 and over | 5,316 | 4,670 | 3,946 | 35% | 55% | ||||||||||
Foreign office | 4,382 | 4,050 | 3,907 | 12% | 33% | ||||||||||
Federal funds purchased | 3,886 | 4,553 | 3,952 | (2% | ) | (59% | ) | ||||||||
Short-term bank notes | - | - | 230 | (100% | ) | NM | |||||||||
Other short-term borrowings | 4,854 | 4,718 | 5,190 | (6% | ) | 12% | |||||||||
Long-term debt | 14,465 | 15,132 | 17,049 | (15% | ) | (18% | ) | ||||||||
Total interest-bearing liabilities | 78,870 | 78,149 | 76,279 | 3% | 4% | ||||||||||
Demand deposits | 13,764 | 13,674 | 13,905 | (1% | ) | 3% | |||||||||
Other liabilities | 3,500 | 3,312 | 3,357 | 4% | 23% | ||||||||||
Total liabilities | 96,134 | 95,135 | 93,541 | 3% | 4% | ||||||||||
Shareholders’ equity | 9,607 | 9,601 | 9,224 | 4% | - | ||||||||||
Total liabilities and shareholders’ equity | $105,741 | $104,736 | $102,765 | 3% | 4% | ||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||
Basic | 554,978 | 554,398 | 553,872 | - | - | ||||||||||
Diluted | 557,489 | 556,869 | 558,176 | - | - | ||||||||||
Yield Analysis | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans and leases | 6.75% | 6.51% | 5.64% | ||||||||||||
Taxable securities | 4.43% | 4.44% | 4.33% | ||||||||||||
Tax exempt securities | 7.33% | 7.59% | 7.29% | ||||||||||||
Other short-term investments | 5.60% | 4.98% | 3.28% | ||||||||||||
Total interest-earning assets | 6.23% | 6.03% | 5.30% | ||||||||||||
Interest-bearing liabilities: | |||||||||||||||
Interest checking | 2.39% | 2.28% | 1.49% | ||||||||||||
Savings | 2.90% | 2.67% | 1.44% | ||||||||||||
Money market | 4.01% | 3.64% | 2.37% | ||||||||||||
Other time | 4.00% | 3.74% | 2.93% | ||||||||||||
Certificates - $100,000 and over | 4.64% | 4.15% | 2.92% | ||||||||||||
Foreign office | 4.77% | 4.39% | 2.98% | ||||||||||||
Federal funds purchased | 4.97% | 4.50% | 2.97% | ||||||||||||
Short-term bank notes | - | - | 2.84% | ||||||||||||
Other short-term borrowings | 4.31% | 3.82% | 2.63% | ||||||||||||
Long-term debt | 5.45% | 4.85% | 3.46% | ||||||||||||
Total interest-bearing liabilities | 3.90% | 3.57% | 2.44% | ||||||||||||
Ratios: | |||||||||||||||
Net interest margin (taxable equivalent) | 3.01% | 3.08% | 3.29% | ||||||||||||
Net interest rate spread (taxable equivalent) | 2.33% | 2.46% | 2.86% | ||||||||||||
Interest-bearing liabilities to interest-earning assets | 82.56% | 82.65% | 82.48% | ||||||||||||
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Table of Contents
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
| Year to Date | % Change | ||||||||
June 2006 | June 2005 | Yr/Yr | |||||||
Assets | |||||||||
Interest-earning assets: | |||||||||
Loans and leases | $72,367 | $65,924 | 10% | ||||||
Taxable securities | 21,878 | 24,852 | (12% | ) | |||||
Tax exempt securities | 630 | 835 | (25% | ) | |||||
Other short-term investments | 169 | 229 | (26% | ) | |||||
Total interest-earning assets | 95,044 | 91,840 | 3% | ||||||
Cash and due from banks | 2,616 | 2,721 | (4% | ) | |||||
Other assets | 8,327 | 8,046 | 3% | ||||||
Allowance for loan and lease losses | (746 | ) | (716 | ) | 4% | ||||
Total assets | $105,241 | $101,891 | 3% | ||||||
Liabilities | |||||||||
Interest-bearing liabilities: | |||||||||
Interest checking | $17,312 | $19,618 | (12% | ) | |||||
Savings | 11,827 | 9,519 | 24% | ||||||
Money market | 6,258 | 4,770 | 31% | ||||||
Other time | 10,101 | 8,038 | 26% | ||||||
Certificates - $100,000 and over | 4,995 | 3,744 | 33% | ||||||
Foreign office | 4,217 | 4,122 | 2% | ||||||
Federal funds purchased | 4,217 | 4,060 | 4% | ||||||
Short-term bank notes | - | 501 | (100% | ) | |||||
Other short-term borrowings | 4,786 | 5,062 | (5% | ) | |||||
Long-term debt | 14,798 | 16,331 | (9% | ) | |||||
Total interest-bearing liabilities | 78,511 | 75,765 | 4% | ||||||
Demand deposits | 13,719 | 13,696 | - | ||||||
Other liabilities | 3,407 | 3,264 | 4% | ||||||
Total liabilities | 95,637 | 92,725 | 3% | ||||||
Shareholders’ equity | 9,604 | 9,166 | 5% | ||||||
Total liabilities and shareholders’ equity | $105,241 | $101,891 | 3% | ||||||
Average common shares outstanding (in thousands): | |||||||||
Basic | 554,689 | 555,110 | - | ||||||
Diluted | 557,181 | 559,908 | - | ||||||
Yield Analysis | |||||||||
Interest-earning assets: | |||||||||
Loans and leases | 6.63% | 5.53% | |||||||
Taxable securities | 4.44% | 4.33% | |||||||
Tax exempt securities | 7.47% | 7.32% | |||||||
Other short-term investments | 5.31% | 2.06% | |||||||
Total interest-earning assets | 6.13% | 5.22% | |||||||
Interest-bearing liabilities: | |||||||||
Interest checking | 2.34% | 1.38% | |||||||
Savings | 2.79% | 1.30% | |||||||
Money market | 3.83% | 2.26% | |||||||
Other time | 3.87% | 2.83% | |||||||
Certificates - $100,000 and over | 4.41% | 2.92% | |||||||
Foreign office | 4.59% | 2.72% | |||||||
Federal funds purchased | 4.72% | 2.68% | |||||||
Short-term bank notes | - | 2.60% | |||||||
Other short-term borrowings | 4.07% | 2.41% | |||||||
Long-term debt | 5.14% | 3.29% | |||||||
Total interest-bearing liabilities | 3.74% | 2.29% | |||||||
Ratios: | |||||||||
Net interest margin (taxable equivalent) | 3.04% | 3.33% | |||||||
Net interest rate spread (taxable equivalent) | 2.39% | 2.93% | |||||||
Interest-bearing liabilities to interest-earning assets | 82.60% | 82.50% | |||||||
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Table of Contents
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
| For the Three Months Ended | |||||||||||||||
June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | |||||||||||
Assets | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans and leases | $73,093 | $71,634 | $70,489 | $68,556 | $66,762 | ||||||||||
Taxable securities | 21,642 | 22,116 | 22,376 | 24,013 | 24,771 | ||||||||||
Tax exempt securities | 616 | 644 | 698 | 787 | 815 | ||||||||||
Other short-term investments | 181 | 157 | 200 | 115 | 130 | ||||||||||
Total interest-earning assets | 95,532 | 94,551 | 93,763 | 93,471 | 92,478 | ||||||||||
Cash and due from banks | 2,564 | 2,668 | 2,847 | 2,742 | 2,822 | ||||||||||
Other assets | 8,393 | 8,261 | 8,105 | 8,207 | 8,182 | ||||||||||
Allowance for loan and lease losses | (748 | ) | (744 | ) | (727 | ) | (721 | ) | (717 | ) | |||||
Total assets | $105,741 | $104,736 | $103,988 | $103,699 | $102,765 | ||||||||||
Liabilities | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||
Interest checking | $17,025 | $17,603 | $17,828 | $18,498 | $19,267 | ||||||||||
Savings | 12,064 | 11,588 | 11,036 | 9,939 | 9,697 | ||||||||||
Money market | 6,429 | 6,086 | 5,974 | 5,154 | 4,755 | ||||||||||
Other time | 10,449 | 9,749 | 9,143 | 8,730 | 8,286 | ||||||||||
Certificates - $100,000 and over | 5,316 | 4,670 | 4,354 | 4,156 | 3,946 | ||||||||||
Foreign office | 4,382 | 4,050 | 3,703 | 3,925 | 3,907 | ||||||||||
Federal funds purchased | 3,886 | 4,553 | 4,771 | 4,001 | 3,952 | ||||||||||
Short-term bank notes | - | - | - | - | 230 | ||||||||||
Other short-term borrowings | 4,854 | 4,718 | 4,408 | 5,619 | 5,190 | ||||||||||
Long-term debt | 14,465 | 15,132 | 15,956 | 16,914 | 17,049 | ||||||||||
Total interest-bearing liabilities | 78,870 | 78,149 | 77,173 | 76,936 | 76,279 | ||||||||||
Demand deposits | 13,764 | 13,674 | 14,099 | 13,977 | 13,905 | ||||||||||
Other liabilities | 3,500 | 3,312 | 3,236 | 3,335 | 3,357 | ||||||||||
Total liabilities | 96,134 | 95,135 | 94,508 | 94,248 | 93,541 | ||||||||||
Shareholders’ equity | 9,607 | 9,601 | 9,480 | 9,451 | 9,224 | ||||||||||
Total liabilities and shareholders’ equity | $105,741 | $104,736 | $103,988 | $103,699 | $102,765 | ||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||
Basic | 554,978 | 554,398 | 553,591 | 553,855 | 553,872 | ||||||||||
Diluted | 557,489 | 556,869 | 556,322 | 557,681 | 558,176 | ||||||||||
Yield Analysis | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans and leases | 6.75% | 6.51% | 6.20% | 5.90% | 5.64% | ||||||||||
Taxable securities | 4.43% | 4.44% | 4.31% | 4.22% | 4.33% | ||||||||||
Tax exempt securities | 7.33% | 7.59% | 7.51% | 7.42% | 7.29% | ||||||||||
Other short-term investments | 5.60% | 4.98% | 4.41% | 3.49% | 3.28% | ||||||||||
Total interest-earning assets | 6.23% | 6.03% | 5.75% | 5.48% | 5.30% | ||||||||||
Interest-bearing liabilities: | |||||||||||||||
Interest checking | 2.39% | 2.28% | 2.10% | 1.84% | 1.49% | ||||||||||
Savings | 2.90% | 2.67% | 2.41% | 1.90% | 1.44% | ||||||||||
Money market | 4.01% | 3.64% | 3.32% | 2.82% | 2.37% | ||||||||||
Other time | 4.00% | 3.74% | 3.50% | 3.14% | 2.93% | ||||||||||
Certificates - $100,000 and over | 4.64% | 4.15% | 3.66% | 3.28% | 2.92% | ||||||||||
Foreign office | 4.77% | 4.39% | 3.92% | 3.41% | 2.98% | ||||||||||
Federal funds purchased | 4.97% | 4.50% | 4.04% | 3.50% | 2.97% | ||||||||||
Short-term bank notes | - | - | - | - | 2.84% | ||||||||||
Other short-term borrowings | 4.31% | 3.82% | 3.27% | 2.92% | 2.63% | ||||||||||
Long-term debt | 5.45% | 4.85% | 4.25% | 3.80% | 3.46% | ||||||||||
Total interest-bearing liabilities | 3.90% | 3.57% | 3.21% | 2.82% | 2.44% | ||||||||||
Ratios: | |||||||||||||||
Net interest margin (taxable equivalent) | 3.01% | 3.08% | 3.11% | 3.16% | 3.29% | ||||||||||
Net interest rate spread (taxable equivalent) | 2.33% | 2.46% | 2.54% | 2.66% | 2.86% | ||||||||||
Interest-bearing liabilities to interest-earning assets | 82.56% | 82.65% | 82.31% | 82.31% | 82.48% | ||||||||||
16
Table of Contents
Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millions
(unaudited)
| For the Three Months Ended | ||||||||||
| June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | ||||||
Average Loans and Leases (including unearned income) | ||||||||||
Commercial: | ||||||||||
Commercial loans | $20,239 | $19,461 | $18,909 | $18,203 | $17,768 | |||||
Commercial mortgage | 9,980 | 9,441 | 9,159 | 9,095 | 9,042 | |||||
Commercial construction | 5,840 | 6,211 | 6,051 | 5,700 | 5,467 | |||||
Commercial leases | 3,729 | 3,686 | 3,611 | 3,537 | 3,436 | |||||
Subtotal - commercial | 39,788 | 38,799 | 37,730 | 36,535 | 35,713 | |||||
Consumer: | ||||||||||
Residential mortgage | 8,756 | 8,351 | 8,444 | 8,271 | 8,453 | |||||
Residential construction | 735 | 706 | 673 | 624 | 576 | |||||
Credit card | 897 | 855 | 825 | 778 | 755 | |||||
Home equity | 12,193 | 12,072 | 11,884 | 11,702 | 11,325 | |||||
Other consumer loans | 9,340 | 9,311 | 9,251 | 8,868 | 8,089 | |||||
Consumer leases | 1,384 | 1,540 | 1,682 | 1,778 | 1,851 | |||||
Subtotal - consumer | 33,305 | 32,835 | 32,759 | 32,021 | 31,049 | |||||
Total average loans and leases | $73,093 | $71,634 | $70,489 | $68,556 | $66,762 | |||||
End of Period Loans and Leases Serviced | ||||||||||
Commercial: | ||||||||||
Commercial loans | $20,618 | $19,878 | $19,174 | $18,591 | $18,013 | |||||
Commercial mortgage | 9,792 | 9,861 | 9,188 | 9,138 | 9,091 | |||||
Commercial construction | 5,950 | 5,883 | 6,342 | 5,880 | 5,590 | |||||
Commercial leases | 3,740 | 3,726 | 3,695 | 3,619 | 3,527 | |||||
Subtotal - commercial | 40,100 | 39,348 | 38,399 | 37,228 | 36,221 | |||||
Consumer: | ||||||||||
Residential mortgage | 7,875 | 7,708 | 7,152 | 7,353 | 7,042 | |||||
Residential construction | 748 | 717 | 695 | 649 | 611 | |||||
Credit card | 945 | 851 | 866 | 805 | 749 | |||||
Home equity | 12,277 | 12,087 | 12,000 | 11,766 | 11,521 | |||||
Other consumer loans | 9,334 | 9,272 | 9,218 | 9,215 | 8,340 | |||||
Consumer leases | 1,298 | 1,439 | 1,595 | 1,738 | 1,812 | |||||
Subtotal - consumer | 32,477 | 32,074 | 31,526 | 31,526 | 30,075 | |||||
Total portfolio loans and leases | 72,577 | 71,422 | 69,925 | 68,754 | 66,296 | |||||
Loans held for sale | 931 | 744 | 1,304 | 1,237 | 783 | |||||
Operating lease equipment | 150 | 137 | 143 | 159 | 161 | |||||
Loans and Leases Serviced for Others: | ||||||||||
Residential mortgage (a) | 27,057 | 26,399 | 25,669 | 24,525 | 24,497 | |||||
Commercial mortgage (b) | 890 | 2,183 | 2,126 | 2,095 | 2,067 | |||||
Commercial loans (c) | 3,332 | 3,182 | 2,744 | 2,528 | 2,346 | |||||
Commercial leases (b) | 258 | 271 | 264 | 240 | 269 | |||||
Consumer loans (d) | 677 | 774 | 871 | 972 | 1,089 | |||||
Total loans and leases serviced for others | 32,214 | 32,809 | 31,674 | 30,360 | 30,268 | |||||
Total loans and leases serviced | $105,872 | $105,112 | $103,046 | $100,510 | $97,508 | |||||
| (a) | Fifth Third sells certain residential mortgage loans, primarily conforming and fixed-rate in nature and retains servicing responsibilities |
| (b) | Fifth Third sells certain commercial mortgage loans and commercial leases and retains servicing responsibilities |
| (c) | Fifth Third transfers, subject to credit recourse and with servicing retained, certain investment grade commercial loans to an unconsolidated qualified special purpose entity, which is wholly-owned by an independent third party |
| (d) | Fifth Third sells certain consumer loans and retains servicing responsibilities |
17
Table of Contents
Fifth Third Bancorp and Subsidiaries
Regulatory Capital (a)
$ in millions
(unaudited)
| As of | |||||||||||||||
June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | |||||||||||
Tier I capital: | |||||||||||||||
Shareholders’ equity | $9,556 | $9,469 | $9,446 | $9,385 | $9,353 | ||||||||||
Goodwill and certain other intangibles | (2,379 | ) | (2,357 | ) | (2,377 | ) | (2,396 | ) | (2,409 | ) | |||||
Unrealized (gains) losses | 674 | 561 | 405 | 310 | 127 | ||||||||||
Other | 773 | 761 | 735 | 731 | 712 | ||||||||||
Total tier I capital | $8,624 | $8,434 | $8,209 | $8,030 | $7,783 | ||||||||||
Total risk-based capital: | |||||||||||||||
Tier I capital | $8,624 | $8,434 | $8,209 | $8,030 | $7,783 | ||||||||||
Qualifying allowance for credit losses | 849 | 840 | 838 | 823 | 819 | ||||||||||
Qualifying subordinated notes | 1,109 | 1,126 | 1,193 | 1,193 | 1,312 | ||||||||||
Total risk-based capital | $10,582 | $10,400 | $10,240 | $10,046 | $9,914 | ||||||||||
Risk-weighted assets | $101,082 | $99,368 | $97,994 | $95,083 | $91,791 | ||||||||||
Ratios: | |||||||||||||||
Average shareholders’ equity to average assets | 9.09% | 9.17% | 9.12% | 9.11% | 8.98% | ||||||||||
Regulatory capital: | |||||||||||||||
Tier I capital | 8.53% | 8.49% | 8.38% | 8.45% | 8.48% | ||||||||||
Total risk-based capital | 10.47% | 10.47% | 10.45% | 10.57% | 10.80% | ||||||||||
Tier I leverage | 8.35% | 8.24% | 8.08% | 7.93% | 7.76% | ||||||||||
| (a) | Current period regulatory capital data and ratios are estimated |
18
Table of Contents
Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions
(unaudited)
| For the Three Months Ended | |||||||||||||||
| June 2006 | March 2006 | December 2005 | September 2005 | June 2005 | |||||||||||
Summary of Credit Loss Experience | |||||||||||||||
Losses charged off: | |||||||||||||||
Commercial loans | ($31 | ) | ($35 | ) | ($35 | ) | ($24 | ) | ($24 | ) | |||||
Commercial mortgage loans | (5 | ) | (2 | ) | (3 | ) | (5 | ) | (3 | ) | |||||
Construction loans | (3 | ) | - | (3 | ) | (1 | ) | - | |||||||
Residential mortgage loans | (6 | ) | (4 | ) | (5 | ) | (3 | ) | (5 | ) | |||||
Consumer loans | (46 | ) | (50 | ) | (58 | ) | (41 | ) | (40 | ) | |||||
Commercial lease financing | (2 | ) | (1 | ) | (28 | ) | (1 | ) | - | ||||||
Consumer lease financing | (3 | ) | (4 | ) | (5 | ) | (4 | ) | (4 | ) | |||||
Total losses | (96 | ) | (96 | ) | (137 | ) | (79 | ) | (76 | ) | |||||
Recoveries of losses previously charged off: | |||||||||||||||
Commercial loans | 9 | 3 | 10 | 5 | 6 | ||||||||||
Commercial mortgage loans | 1 | - | 1 | - | 1 | ||||||||||
Construction loans | - | - | - | - | - | ||||||||||
Residential mortgage loans | - | - | - | - | - | ||||||||||
Consumer loans | 16 | 15 | 8 | 9 | 12 | ||||||||||
Commercial lease financing | 1 | 2 | - | - | 1 | ||||||||||
Consumer lease financing | 2 | 3 | 1 | 1 | 1 | ||||||||||
Total recoveries | 29 | 23 | 20 | 15 | 21 | ||||||||||
Net losses charged off: | |||||||||||||||
Commercial loans | (22 | ) | (32 | ) | (25 | ) | (19 | ) | (18 | ) | |||||
Commercial mortgage loans | (4 | ) | (2 | ) | (2 | ) | (5 | ) | (2 | ) | |||||
Construction loans | (3 | ) | - | (3 | ) | (1 | ) | - | |||||||
Residential mortgage loans | (6 | ) | (4 | ) | (5 | ) | (3 | ) | (5 | ) | |||||
Consumer loans | (30 | ) | (35 | ) | (50 | ) | (32 | ) | (28 | ) | |||||
Commercial lease financing | (1 | ) | 1 | (28 | ) | (1 | ) | 1 | |||||||
Consumer lease financing | (1 | ) | (1 | ) | (4 | ) | (3 | ) | (3 | ) | |||||
Total net losses charged off | ($67 | ) | ($73 | ) | ($117 | ) | ($64 | ) | ($55 | ) | |||||
Allowance for loan and lease losses, beginning | $749 | $744 | $727 | $722 | $717 | ||||||||||
Total net losses charged off | (67 | ) | (73 | ) | (117 | ) | (64 | ) | (55 | ) | |||||
Provision for loan and lease losses | 71 | 78 | 134 | 69 | 60 | ||||||||||
Allowance for loan and lease losses, ending | $753 | $749 | $744 | $727 | $722 | ||||||||||
Reserve for unfunded commitments, beginning | $69 | $70 | $69 | $71 | $67 | ||||||||||
Provision for unfunded commitments | 5 | (1 | ) | 1 | (2 | ) | 4 | ||||||||
Acquisitions | - | - | - | - | - | ||||||||||
Reserve for unfunded commitments, ending | $74 | $69 | $70 | $69 | $71 | ||||||||||
Components of allowance for credit losses: | |||||||||||||||
Allowance for loan and lease losses | $753 | $749 | $744 | $727 | $722 | ||||||||||
Reserve for unfunded commitments | 74 | 69 | 70 | 69 | 71 | ||||||||||
Total allowance for credit losses | $827 | $818 | $814 | $796 | $793 | ||||||||||
Nonperforming Assets and Delinquent Loans | |||||||||||||||
Nonaccrual loans and leases (a) | $281 | $291 | $294 | $285 | $273 | ||||||||||
Renegotiated loans and leases | - | - | - | 1 | 1 | ||||||||||
Other assets, including other real estate owned | 77 | 73 | 67 | 65 | 66 | ||||||||||
Total nonperforming assets | $358 | $364 | $361 | $351 | $340 | ||||||||||
Ninety days past due loans and leases (a) | $191 | $160 | $155 | $156 | $129 | ||||||||||
Ratios | |||||||||||||||
Net losses charged off as a percent of average loans and leases | 0.37% | 0.42% | 0.67% | 0.38% | 0.34% | ||||||||||
Allowance for loan and lease losses as a percent of loans and leases | 1.04% | 1.05% | 1.06% | 1.06% | 1.09% | ||||||||||
Allowance for credit losses as a percent of loans and leases | 1.14% | 1.14% | 1.16% | 1.16% | 1.20% | ||||||||||
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned | 0.49% | 0.51% | 0.52% | 0.51% | 0.51% | ||||||||||
| (a) | Nonaccrual includes $32 million and Ninety Days Past Due includes $45 million of residential mortgage loans as of June 30, 2006 |
19