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<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 17, 1999
FIFTH THIRD BANCORP
(Exact name of registrant as specified in its charter)
Ohio 0-8076 31-0854434
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Fifth Third Center
38 Fountain Square Plaza, Cincinnati, Ohio 45263
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 579-5300
Not Applicable
(Former name or address, if changed since last report.)
================================================================================
<PAGE> 2
Item 5. Other Events
Fifth Third Bancorp has prepared the attached unaudited condensed
financial statements and supplemental financial data for the years ended
December 31, 1998, 1997, 1996, 1995, 1994 and for the three months ended
September 30, 1999, June 30, 1999, March 31, 1999, December 31, 1998, September
30, 1998, June 30, 1998 and March 31, 1998. The unaudited condensed financial
statements and supplemental financial data preliminarily reflect the effect of
Fifth Third Bancorp's acquisitions of CNB Bancshares, Inc., Peoples Bank
Corporation of Indianapolis, and Enterprise Federal Bancorp, Inc., as if all the
entities had been combined for all the periods presented. The attached
information has been prepared, without audit, to assist financial analysts and
other interested parties in determining the effect of such acquisitions on Fifth
Third Bancorp. Fifth Third Bancorp's December 31, 1999 audited financial
statements will reflect restated financial statements, footnote disclosures and
related financial information for prior years required by generally accepted
accounting principles to reflect the effect of the above referenced
acquisitions.
Item 7. Financial Statements and Exhibits
Exhibit 99 -Quarterly Financial Supplement - 1Q98 - 3Q99.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Fifth Third Bancorp
(Registrant)
December 17, 1999 /s/ Roger W. Dean
---------------------------------
Roger W. Dean, Controller
<PAGE> 1
Exhibit 99
December 1999
[LOGO] FIFTH THIRD BANCORP
QUARTERLY FINANCIAL SUPPLEMENT
1Q98 - 3Q99
Investment Community Member:
To assist in your financial analysis, the following supplement of most requested
information concerning Fifth Third Bancorp is provided. All information, except
market price and dividends per common share, has been restated to reflect the
acquisitions of Enterprise Federal Bancorp (5/14/99), CNB Bancshares, Inc.
(10/29/99) and Peoples Bank of Indianapolis (11/19/99) accounted for as
pooling-of-interests. Numbers are unaudited for both year-end and quarterly
information.
If you need further information, please fax or e-mail your request to Fifth
Third's Investor Relations Department at (513) 579-6246 or
[email protected].
/s/Neal E. Arnold /s/Randy M. Keeling
Neal E. Arnold Randy M. Keeling
EVP/Chief Financial Officer VP/External Reporting Manager
(513)579-4356 (513) 579-5286
<PAGE> 2
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------------------
September 30, June 30, March 31, December 31,
1999 1999 1999 1998
----------------- --------------- -------------- ----------------
<S> <C> <C> <C> <C>
RATIOS (%)
- ----------
Return on Average Assets* 1.90 1.86 1.91 1.93
Return on Average Equity* 19.2 18.6 19.0 19.3
Average Equity/Average Assets 9.94 9.96 10.03 10.00
Net Interest Margin 3.93 4.09 4.14 4.03
Overhead** 42.9 45.0 45.1 43.7
Net Charge-Offs/Average Loans & Leases* 0.30 0.40 0.38 0.44
Reserve/Loans & Leases Outstanding 1.48 1.48 1.48 1.48
Nonperforming Assets/Loans, Leases and OREO 0.38 0.37 0.38 0.41
Underperforming Assets/Loans, Leases and OREO 0.73 0.71 0.78 0.80
Loan Loss Reserve/Nonperforming Assets 385.64 394.87 391.01 364.44
Loan Loss Reserve/Underperforming Assets 202.33 207.78 189.68 186.31
* - excludes merger-related charges
** - excludes one-time SAIF assessment
SHARE DATA
- ----------
Earnings Per Share $ 0.64 $ 0.59 $ 0.58 $ 0.59
Diluted Earnings Per Share 0.63 0.58 0.57 0.57
Diluted Operating Earnings Per Share 0.63 0.58 0.57 0.57
Dividends Per Common Share 0.24 0.20 0.20 0.20
Book Value Per Share 12.67 12.68 12.85 12.56
Shares Outstanding
(net of treasury) 308,399,313 304,776,996 302,520,286 302,064,369
High $ 69.88 $ 74.25 $ 75.44 $ 74.13
Low 58.63 61.63 62.38 50.31
Close 60.84 66.56 65.94 71.31
Price/Earnings Ratio 25.89 29.19 35.07 40.06
SUPPLEMENTAL DATA
- -----------------
Common Dividends Declared (000's) $ 65,983 $ 54,262 $ 53,475 $ 53,384
Employees (FTE) 11,963 11,870 11,521 11,354
Banking Centers 648 639 637 631
ATMs 1,380 1,389 1,458 1,455
</TABLE>
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------
September 30, June 30, March 31,
1998 1998 1998
---------------- --------------- ---------------
<S> <C> <C> <C>
RATIOS (%)
- ----------
Return on Average Assets* 1.90 1.76 1.64
Return on Average Equity* 19.1 18.2 17.7
Average Equity/Average Assets 9.95 9.67 9.26
Net Interest Margin 3.98 3.87 3.87
Overhead** 45.0 44.3 46.6
Net Charge-Offs/Average Loans & Leases* 0.46 0.44 0.54
Reserve/Loans & Leases Outstanding 1.48 1.48 1.43
Nonperforming Assets/Loans, Leases and OREO 0.46 0.56 0.60
Underperforming Assets/Loans, Leases and OREO 0.85 0.81 0.83
Loan Loss Reserve/Nonperforming Assets 319.63 262.80 240.03
Loan Loss Reserve/Underperforming Assets 174.77 181.99 173.40
* - excludes merger-related charges
** - excludes one-time SAIF assessment
SHARE DATA
- ----------
Earnings Per Share $ 0.56 $ 0.18 $ 0.48
Diluted Earnings Per Share 0.56 0.18 0.47
Diluted Operating Earnings Per Share 0.56 0.52 0.47
Dividends Per Common Share 0.17 0.17 0.17
Book Value Per Share 12.37 12.10 11.53
Shares Outstanding
(net of treasury) 301,870,083 303,041,664 298,054,146
High $ 67.25 $ 63.13 $ 58.83
Low 49.25 47.50 49.50
Close 57.50 63.00 57.00
Price/Earnings Ratio 34.64 39.88 30.88
SUPPLEMENTAL DATA
- -----------------
Common Dividends Declared (000's) $ 45,343 $ 46,852 $ 41,131
Employees (FTE) 11,089 11,358 11,049
Banking Centers 631 642 655
ATMs 1,439 1,281 1,250
</TABLE>
<PAGE> 3
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------------------
September 30, June 30, March 31, December 31,
1999 1999 1999 1998
---------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
INCOME STATEMENT ($000s)
- ------------------------
Interest Income-FTE $ 721,802 $ 686,951 $ 658,532 $ 658,744
Interest Expense 345,535 316,275 301,711 312,701
---------------- ------------- ------------- ---------------
Net Interest Income-FTE 376,267 370,676 356,821 346,043
Loan Loss Provision 29,648 35,271 25,391 30,097
Merger-Related Provision - - - -
Operating Income:
Investment Advisory Income 49,352 45,661 42,439 40,528
Service Charges on Deposits 45,317 42,901 39,497 41,138
Data Processing Income 46,214 41,904 38,396 41,254
Other Non-Interest Income 84,045 86,955 81,479 84,024
Securities Gains (Losses) (3,003) 988 1,632 3,395
Foreign Exchange Income 3,134 2,803 3,151 2,624
---------------- ------------- ------------- ---------------
Total Operating Income 222,059 221,212 206,594 212,963
Operating Expenses:
Salaries, Wages & Incentives 107,474 110,376 101,183 97,963
Employee Benefits 18,209 23,335 22,974 15,656
Equipment Expenses 12,005 12,260 12,039 12,285
Net Occupancy Expenses 18,797 17,555 17,401 17,150
Deposit Insurance Expense 1,884 1,852 1,889 1,936
Foreclosed Property Expense 390 572 353 576
Other Expenses 97,743 100,292 98,472 98,995
Merger-Related Charges - - - -
---------------- ------------- ------------- ---------------
Total Operating Expenses 256,502 266,242 254,311 244,561
---------------- ------------- ------------- ---------------
Pre-Tax Income-FTE 312,176 290,375 283,713 284,348
Tax Equivalent Adjustment 18,980 18,355 17,726 16,997
---------------- ------------- ------------- ---------------
Income Before Income Taxes 293,196 272,020 265,987 267,351
Applicable Income Taxes 97,748 91,848 89,645 89,554
---------------- ------------- ------------- ---------------
Net Income $ 195,448 $ 180,172 $ 176,342 $ 177,797
================ ============= ============= ===============
Operating Earnings** $ 195,448 $ 180,172 $ 176,342 $ 177,797
REGULATORY CAPITAL DATA ($000s)
- -------------------------------
Tier 1 Capital 4,062,989 3,933,200 3,761,690 3,648,480
Tier 2 Capital 625,805 602,228 582,169 577,016
---------------- ------------- ------------- ---------------
Total Risk-Based Capital $ 4,688,794 $ 4,535,428 $ 4,343,859 $ 4,225,496
================ ============= ============= ===============
Total Risk-Adjusted Assets $31,419,593 $30,109,468 $29,946,771 $29,257,928
Leverage Ratio 9.98% 10.10% 10.04% 9.99%
Tier 1 Risk-Based Capital Ratio 12.93% 13.06% 12.56% 12.47%
Total Risk-Based Capital Ratio 14.92% 15.06% 14.51% 14.44%
</TABLE>
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------
September 30, June 30, March 31,
1998 1998 1998
-------------- ------------- --------------
<S> <C> <C> <C>
INCOME STATEMENT ($000s)
- ------------------------
Interest Income-FTE $ 661,350 $ 667,397 $ 659,600
Interest Expense 326,223 338,469 338,554
-------------- ------------- ------------
Net Interest Income-FTE 335,127 328,928 321,046
Loan Loss Provision 17,123 30,378 29,189
Merger-Related Provision - 16,702 -
Operating Income:
Investment Advisory Income 41,545 34,110 30,581
Service Charges on Deposits 40,526 39,675 34,447
Data Processing Income 36,168 33,073 30,476
Other Non-Interest Income 74,427 68,859 63,187
Securities Gains (Losses) 2,755 1,386 4,816
Foreign Exchange Income 2,462 564 1,524
-------------- ------------- ------------
Total Operating Income 197,883 177,667 165,031
Operating Expenses:
Salaries, Wages & Incentives 100,071 94,175 90,033
Employee Benefits 19,558 14,150 22,767
Equipment Expenses 11,090 11,170 10,784
Net Occupancy Expenses 17,229 16,421 15,979
Deposit Insurance Expense 2,054 2,155 2,080
Foreclosed Property Expense 459 645 606
Other Expenses 89,280 85,873 84,020
Merger-Related Charges - 131,047 -
-------------- ------------- ------------
Total Operating Expenses 239,741 355,636 226,269
-------------- ------------- ------------
Pre-Tax Income-FTE 276,146 103,879 230,619
Tax Equivalent Adjustment 15,113 14,785 14,269
-------------- ------------- ------------
Income Before Income Taxes 261,033 89,094 216,350
Applicable Income Taxes 89,962 35,833 71,967
-------------- ------------- ------------
Net Income $ 171,071 $ 53,261 $ 144,383
============== ============= ============
Operating Earnings** $ 171,071 $ 159,047 $ 144,383
REGULATORY CAPITAL DATA ($000s)
- -------------------------------
Tier 1 Capital 3,548,654 3,495,164 3,179,396
Tier 2 Capital 568,803 618,589 597,432
-------------- ------------- ------------
Total Risk-Based Capital $ 4,117,457 $ 4,113,753 $ 3,776,828
============== ============= ============
Total Risk-Adjusted Assets $28,297,449 $28,136,530 $28,932,501
Leverage Ratio 9.94% 9.63% 8.91%
Tier 1 Risk-Based Capital Ratio 12.54% 12.42% 10.99%
Total Risk-Based Capital Ratio 14.55% 14.62% 13.05%
</TABLE>
<PAGE> 4
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------------------
September 30, June 30, March 31, December 31,
1999 1999 1999 1999
---------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
BALANCE SHEET - ASSETS ($000s)
- ------------------------------
Cash and Cash Equivalents $ 891,346 $ 941,901 $ 901,638 $ 1,045,368
Available-for-Sale Securities 12,761,330 12,638,561 12,353,721 11,183,935
Held-to-Maturity Securities 132,207 101,687 124,282 121,880
Other Short-Term Investments 394,831 147,682 143,534 164,760
---------------- ------------- ------------- ---------------
Total Securities 13,288,368 12,887,930 12,621,537 11,470,575
---------------- ------------- ------------- ---------------
Total Cash and Securities 14,179,714 13,829,831 13,523,175 12,515,943
Loans Held for Sale 189,827 276,101 458,171 588,972
Loans and Leases Held for Investment (before reserve) 25,250,958 23,700,856 22,652,735 22,356,524
---------------- ------------- ------------- ---------------
Total Loans and Leases 25,440,785 23,976,957 23,110,906 22,945,496
Loan Loss Reserve (373,242) (350,486) (336,377) (331,621)
Goodwill 201,031 184,040 175,859 167,827
Other Intangibles 235,521 230,778 241,929 247,365
---------------- ------------- ------------- ---------------
Intangible Assets 436,552 414,818 417,788 415,192
Mortgage Servicing Rights 101,442 95,468 86,145 81,657
Other Real Estate Owned 12,215 12,679 13,369 12,622
Other Assets 1,649,022 2,007,748 1,246,112 1,452,977
---------------- ------------- ------------- ---------------
Total Assets $41,446,488 $39,987,015 $38,061,118 $ 37,092,266
================ ============= ============= ===============
BALANCE SHEET - LIABILITIES ($000s)
- -----------------------------------
Deposits $25,006,594 $25,601,981 $24,668,315 $ 24,495,784
Borrowings:
Short-Term 8,979,955 6,717,762 5,693,158 4,514,636
Long-Term 2,371,239 2,609,964 2,542,160 3,063,590
Convertible Subordinated Debentures 172,500 172,500 172,500 172,500
Other Liabilities 1,008,458 1,019,066 1,096,955 1,050,702
---------------- ------------- ------------- ---------------
Total Liabilities 37,538,746 36,121,273 34,173,088 33,297,212
================ ============= ============= ===============
BALANCE SHEET - EQUITY ($000s)
- ------------------------------
Common Equity 4,097,879 3,952,783 3,835,875 3,758,293
Net Unrealized Gains (Losses) on
Securities Available for Sale (190,137) (82,412) 81,455 94,720
Treasury Stock, at Cost -- (4,629) (29,300) (57,959)
---------------- ------------- ------------- ---------------
Total Shareholders' Equity $ 3,907,742 $ 3,865,742 $ 3,888,030 $ 3,795,054
================ ============= ============= ===============
Common Shares Outstanding (net of treasury) 308,399,313 304,776,996 302,520,286 302,064,369
Treasury Shares Held -- 73,636 466,111 922,028
</TABLE>
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------
September 30, June 30, March 31,
1998 1998 1998
-------------- ------------- ------------
<S> <C> <C> <C>
BALANCE SHEET - ASSETS ($000s)
- ------------------------------
Cash and Cash Equivalents $ 935,300 $ 1,164,871 $ 945,601
Available-for-Sale Securities 11,085,982 10,348,202 11,322,910
Held-to-Maturity Securities 116,467 132,830 122,896
Other Short-Term Investments 152,120 96,699 103,129
-------------- ------------- ------------
Total Securities 11,354,569 10,577,731 11,548,935
-------------- ------------- ------------
Total Cash and Securities 12,289,869 11,742,602 12,494,536
Loans Held for Sale 488,935 394,222 626,632
Loans and Leases Held for Investment (before reserve) 21,981,021 22,417,647 21,978,115
-------------- ------------- ------------
Total Loans and Leases 22,469,956 22,811,869 22,604,747
Loan Loss Reserve (325,294) (331,841) (314,960)
Goodwill 173,008 177,188 112,799
Other Intangibles 239,158 244,497 250,066
-------------- ------------- ------------
Intangible Assets 412,166 421,685 362,865
Mortgage Servicing Rights 82,058 78,575 75,563
Other Real Estate Owned 12,969 16,086 16,079
Other Assets 1,267,812 1,215,128 1,232,425
-------------- ------------- ------------
Total Assets $ 36,209,536 $ 35,954,104 $ 36,471,255
============== ============= ============
BALANCE SHEET - LIABILITIES ($000s)
- -----------------------------------
Deposits $ 24,210,315 $ 24,251,755 $ 24,188,934
Borrowings:
Short-Term 4,449,118 4,570,947 5,402,357
Long-Term 2,630,210 2,370,260 2,548,620
Convertible Subordinated Debentures 172,500 172,500 --
Other Liabilities 1,012,743 922,691 894,309
-------------- ------------- ------------
Total Liabilities 32,474,886 32,288,153 33,034,064
============== ============= ============
BALANCE SHEET - EQUITY ($000s)
- ------------------------------
Common Equity 3,670,275 3,567,300 3,518,672
Net Unrealized Gains (Losses) on
Securities Available for Sale 135,645 98,651 93,375
Treasury Stock, at Cost (71,270) -- (175,012)
-------------- ------------- ------------
Total Shareholders' Equity $ 3,734,650 $ 3,665,951 $ 3,437,035
============== ============= ============
Common Shares Outstanding (net of treasury) 302,064,369 301,870,083 298,054,146
Treasury Shares Held 1,116,365 -- 5,131,205
</TABLE>
<PAGE> 5
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------------------------------
September 30, June 30, March 31, December 31,
1999 1999 1999 1998
----------------- ----------------- -------------- ------------------
AVERAGE BALANCE SHEET ($000s)
- -----------------------------
<S> <C> <C> <C> <C>
Taxable Securities $ 12,252,758 $ 11,815,761 $ 11,147,693 $ 10,550,686
Tax Exempt Securities 777,102 776,717 759,215 719,944
Loans & Leases 24,966,886 23,719,691 23,017,230 22,777,747
------------- ------------- ------------- -------------
Total Earning Assets 37,996,746 36,312,169 34,924,138 34,048,377
------------- ------------- ------------- -------------
Cash and Due from Banks 920,016 887,620 926,914 965,848
Other Assets 2,158,038 2,098,078 1,957,719 1,823,124
Reserve for Credit Losses (361,846) (346,087) (334,201) (327,199)
------------- ------------- ------------- -------------
Total Assets $ 40,712,954 $ 38,951,780 $ 37,474,570 $ 36,510,150
============= ============= ============= =============
Interest Checking $ 3,807,051 $ 3,767,039 $ 3,644,779 $ 3,538,872
Savings & Money Market 6,165,627 6,086,599 6,004,936 5,913,052
Time Deposits 11,763,754 11,053,893 10,876,707 11,282,268
Short-Term Borrowings 7,412,048 6,690,933 6,035,053 4,876,107
Long-Term Borrowings 2,482,571 2,482,537 2,393,322 2,534,512
------------- ------------- ------------- -------------
Total Interest-Bearing Liabilities 31,631,051 30,081,001 28,954,797 28,144,811
Demand Deposits 3,739,707 3,702,126 3,568,937 3,562,680
Other Liabilities 1,294,515 1,287,229 1,191,865 1,153,006
------------- ------------- ------------- -------------
Total Liabilities 36,665,273 35,070,356 33,715,599 32,860,496
Common Equity 4,047,681 3,881,424 3,758,970 3,649,654
------------- ------------- ------------- -------------
Total Liabilities & Shareowners' Equity $ 40,712,954 $ 38,951,780 $ 37,474,570 $ 36,510,150
============= ============= ============= =============
Average Loans and Leases (excluding held for sale) $ 24,594,885 $ 23,197,628 $ 22,338,142 $ 22,176,213
Average Shares Outstanding
Basic 307,344,344 304,196,929 303,150,955 302,772,206
Diluted 315,732,310 312,946,846 312,171,701 310,660,004
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------------
September 30, June 30, March 31,
1998 1998 1998
--------------- --------------- ----------------
AVERAGE BALANCE SHEET ($000s)
- -----------------------------
<S> <C> <C> <C>
Taxable Securities $ 10,172,781 $ 10,700,836 $ 10,861,176
Tax Exempt Securities 693,126 644,842 545,519
Loans & Leases 22,528,704 22,718,284 22,198,658
------------- ------------- -------------
Total Earning Assets 33,394,611 34,063,962 33,605,353
------------- ------------- -------------
Cash and Due from Banks 870,602 845,934 808,681
Other Assets 1,755,527 1,697,646 1,574,712
Reserve for Credit Losses (320,193) (318,623) (315,396)
------------- ------------- -------------
Total Assets $ 35,700,547 $ 36,288,919 $ 35,673,350
============= ============= =============
Interest Checking $ 3,450,772 $ 3,256,406 $ 3,096,284
Savings & Money Market 5,787,290 5,988,888 5,927,012
Time Deposits 11,490,211 11,507,606 11,767,949
Short-Term Borrowings 4,516,659 5,513,303 5,446,283
Long-Term Borrowings 2,452,454 2,452,990 2,330,291
------------- ------------- -------------
Total Interest-Bearing Liabilities 27,697,386 28,719,193 28,567,819
Demand Deposits 3,353,619 3,236,589 3,039,294
Other Liabilities 1,095,775 824,593 764,014
------------- ------------- -------------
Total Liabilities 32,146,780 32,780,375 32,371,127
Common Equity 3,553,767 3,508,544 3,302,223
------------- ------------- -------------
Total Liabilities & Shareowners' Equity $ 35,700,547 $ 36,288,919 $ 35,673,350
============= ============= =============
Average Loans and Leases (excluding held for sale) $ 22,145,030 $ 22,215,635 $ 21,813,347
Average Shares Outstanding
Basic 303,132,371 300,705,273 298,481,281
Diluted 311,887,118 306,530,429 304,366,168
</TABLE>
<PAGE> 6
FIFTH THIRD BANCORP
QUARTER ENDED
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------------------------------
September 30, June 30, March 31, December 31,
1999 1999 1999 1998
---------------- ---------- ------------ -------------
ASSET QUALITY ($000s)
- ---------------------
<S> <C> <C> <C> <C>
Non-Accrual Loans $ 83,750 $ 75,210 $ 71,780 $ 77,177
Renegotiated Loans 820 871 879 1,195
Other Real Estate Owned 12,215 12,679 13,369 12,622
--------- --------- --------- ---------
Total Non-Performing Assets 96,785 88,760 86,028 90,994
Loans 90+ Days Past Due 87,686 79,920 91,311 87,002
--------- --------- --------- ---------
Total NPAs Plus Loans Over 90 Days $ 184,471 $ 168,680 $ 177,339 $ 177,996
========= ========= ========= =========
LOAN PORTFOLIO ($ IN MILLIONS)
(NET OF UNEARNED DISCOUNT)
- -----------------------------
Construction & Land Development $ 1,023 $ 958 $ 834 $ 826
Commercial Mortgages 2,615 2,402 2,223 2,193
Commercial Loans & Leases 7,743 7,436 7,156 6,974
Residential Mortgages 5,969 5,606 5,931 6,200
Home Equity Loans 1,993 1,800 1,672 1,705
Credit Card Outstandings 299 313 300 360
Other Consumer 5,798 5,462 4,995 4,687
--------- --------- --------- ---------
Total Loans & Leases $ 25,440 $ 23,977 $ 23,112 $ 22,945
========= ========= ========= =========
NON-PERFORMING LOANS ($000s)
(NON-ACCRUAL PLUS RENEGOTIATED)
- -------------------------------
Construction & Land Development $ -- $ 237 $ 198 $ 542
Commercial Mortgages 19,720 18,699 13,649 14,452
Commercial Loans & Leases 40,623 34,246 33,155 36,928
Residential 20,932 20,031 22,114 22,655
Installment 3,295 2,868 3,543 3,795
--------- --------- --------- ---------
Total $ 84,570 $ 76,081 $ 72,659 $ 78,372
========= ========= ========= =========
NET CHARGE-OFFS ($000s)
- -----------------------
Commercial Real Estate $ 257 $ (544) $ (789) $ 423
Commercial Loans & Leases 1,965 6,640 5,396 5,956
Residential Mortgages 350 174 431 625
Consumer 9,700 11,293 11,430 11,187
Leases 6,627 5,316 4,569 6,280
--------- --------- --------- ---------
Total $ 18,899 $ 22,879 $ 21,037 $ 24,471
========= ========= ========= =========
Gross Charge-Offs 28,612 33,578 29,107 33,638
Recoveries (9,713) (10,699) (8,070) (9,167)
--------- --------- --------- ---------
Net Charge-Offs $ 18,899 $ 22,879 $ 21,037 $ 24,471
========= ========= ========= =========
* - 2Q98 includes the effect of merger-related charge-offs of $5,952.
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
----------------------------------------------
September 30, June 30, March 31,
1998 1998 1998
---------------- ---------- ---------------
ASSET QUALITY ($000s)
- ---------------------
<S> <C> <C> <C>
Non-Accrual Loans $ 87,844 $ 109,864 $ 114,208
Renegotiated Loans 960 323 928
Other Real Estate Owned 12,969 16,086 16,079
--------- --------- ---------
Total Non-Performing Assets 101,773 126,273 131,215
Loans 90+ Days Past Due 84,351 56,068 50,425
--------- --------- ---------
Total NPAs Plus Loans Over 90 Days $ 186,124 $ 182,341 $ 181,640
========= ========= =========
LOAN PORTFOLIO ($ IN MILLIONS)
(NET OF UNEARNED DISCOUNT)
- -----------------------------
Construction & Land Development $ 779 $ 768 $ 761
Commercial Mortgages 2,135 2,168 2,212
Commercial Loans & Leases 6,745 6,583 6,320
Residential Mortgages 6,321 7,062 7,092
Home Equity Loans 1,570 1,388 1,382
Credit Card Outstandings 324 334 334
Other Consumer 4,595 4,509 4,504
--------- --------- ---------
Total Loans & Leases $ 22,469 $ 22,812 $ 22,605
========= ========= =========
NON-PERFORMING LOANS ($000s)
(NON-ACCRUAL PLUS RENEGOTIATED)
- --------------------------------
Construction & Land Development $ 1,415 $ 4,430 $ 7,245
Commercial Mortgages 13,467 13,280 11,808
Commercial Loans & Leases 42,459 55,859 59,228
Residential 27,720 32,178 33,102
Installment 3,743 4,440 3,753
--------- --------- ---------
Total $ 88,804 $ 110,187 $ 115,136
========= ========= =========
NET CHARGE-OFFS ($000s)
- -----------------------
Commercial Real Estate $ (11) $ 1,579 $ 6,207
Commercial Loans & Lease 12,343 12,679 7,428
Residential Mortgages 8 586 145
Consumer 7,382 9,944 10,390
Leases 6,061 5,642 4,975
--------- --------- ---------
Total $ 25,783 $ 30,430 $ 29,145
========= ========= =========
Gross Charge-Offs 33,127 39,501 36,525
Recoveries (7,344) (9,071) (7,380)
--------- --------- ---------
Net Charge-Offs $ 25,783 $ 30,430 $ 29,145
========= ========= =========
* - 2Q98 includes the effect of merger-related charge-offs of $5,952.
</TABLE>
<PAGE> 7
FIFTH THIRD BANCORP
YEAR ENDED
- ----------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
1998 1997 1996 1995 1994
-----------------------------------------------------------------------------
RATIOS %
<S> <C> <C> <C> <C> <C>
Return on Average Assets* 1.80 1.57 1.52 1.47 1.42
Return on Average Equity* 18.4 17.2 16.3 15.9 15.6
Average Equity/Average Assets 9.80 9.16 9.28 9.24 9.10
Net Interest Margin 3.93 3.86 3.83 3.76 3.95
Overhead** 44.9 46.8 48.3 50.1 52.5
Net Charge-Offs/Average Loans & Leases * 0.47 0.43 0.40 0.23 0.15
Reserve/Loans & Leases Outstanding 1.48 1.43 1.41 1.47 1.50
Nonperforming Assets/Loans, Leases and OREO 0.41 0.54 0.62 0.71 0.55
Underperforming Assets/Loans, Leases and OREO 0.80 0.79 0.85 0.85 0.66
Loan Loss Reserve/Nonperforming Assets 364.44 265.41 228.08 206.69 272.84
Loan Loss Reserve/Underperforming Assets 186.31 180.05 164.61 172.61 226.89
* - excludes merger-related charges
** - excludes one-time SAIF assessment
SHARE DATA
Earnings Per Share $ 1.81 $ 1.78 $ 1.48 $ 1.36 $ 1.16
Diluted Earnings Per Share 1.78 1.75 1.45 1.32 1.12
Diluted Operating Earnings Per Share 2.12 1.75 1.55 1.32 1.12
Dividends Per Common Share 0.71 .56 8/9 .48 8/9 .42 2/3 .35 5/9
Book Value Per Share 12.56 11.28 10.35 9.15 7.71
Shares Outstanding (net of treasury) 302,064,369 297,760,466 303,013,639 290,579,395 282,869,895
Market Price Per Share:
High $ 74.13 $ 55.67 $ 33.00 $ 22.67 $ 16.30
Low 47.50 27.00 19.33 13.93 13.33
Close 71.31 54.50 27.92 21.70 14.22
Price/Earnings Ratio 40.06 31.14 19.26 16.44 12.70
SUPPLEMENTAL DATA
Common Dividends Declared (000's) $ 186,710 $ 137,288 $ 118,477 $ 97,214 $ 82,581
Employees (FTE) 11,354 11,246 10,858 10,220 9,605
Banking Centers 631 654 654 620 594
</TABLE>
* - excludes merger-related charges
** - excludes one-time SAIF assessment
<PAGE> 8
FIFTH THIRD BANCORP
YEAR ENDED
- ------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME STATEMENT ($000S)
Interest Income-FTE $ 2,647,091 $ 2,528,690 $ 2,317,176 $ 1,987,539 $ 1,573,829
Interest Expense 1,315,947 1,304,077 1,189,309 1,045,392 720,291
------------------------------------------------------------------------------------
Net Interest Income-FTE 1,331,144 1,224,613 1,127,867 942,147 853,538
Loan Loss Provision 106,787 116,946 82,880 54,819 49,264
Merger-Related Provision 16,702 -- -- -- --
Operating Income:
Trust Income 146,764 111,779 91,785 75,875 66,119
Service Charges on Deposits 155,786 132,340 115,436 92,503 82,681
Data Processing Income 140,971 112,506 88,930 75,888 64,986
Other Non-Interest Income 290,497 220,659 185,933 151,653 134,593
Securities Gains (Losses) 12,352 8,471 9,208 8,915 (4,061)
Foreign Exchange Income 7,174 4,673 2,732 2,326 1,317
------------------------------------------------------------------------------------
Total Operating Income 753,544 590,428 494,024 407,160 345,635
Operating Expenses:
Staff Expense 454,373 402,338 381,541 328,616 309,198
Equipment Expenses 45,329 40,393 38,551 34,751 33,032
Net Occupancy Expenses 66,779 63,493 60,549 51,468 46,756
Deposit Insurance Expenses 8,225 7,487 17,109 28,711 37,007
Foreclosed Property Expense 2,286 1,891 2,092 1,885 1,219
Other Expenses 358,168 334,300 283,919 229,967 202,694
One-Time SAIF Assessment -- -- 49,600 -- --
Merger-Related Charges 131,047 -- -- -- --
------------------------------------------------------------------------------------
Total Operating Expenses 1,066,207 849,902 833,361 675,398 629,906
------------------------------------------------------------------------------------
Pre-Tax Income-FTE 894,992 848,193 705,650 619,090 520,003
Tax Equivalent Adjustment 61,164 51,078 45,127 37,615 29,553
------------------------------------------------------------------------------------
Income Before Income Taxes 833,828 797,115 660,523 581,475 490,450
Applicable Income Taxes 287,316 267,736 217,647 192,458 164,704
------------------------------------------------------------------------------------
Net Income $ 546,512 $ 529,379 $ 442,876 $ 389,017 $ 325,746
====================================================================================
Operating Earnings * $ 652,298 $ 529,379 $ 474,135 $ 389,017 $ 325,746
------------------------------------------------------------------------------------
REGULATORY CAPITAL DATA ($000S)
Tier 1 Capital 3,648,480 3,082,730 2,764,558 2,458,874 2,121,345
Tier 2 Capital 577,016 590,232 577,363 610,035 353,940
------------------------------------------------------------------------------------
Total Risk-Based Capital $ 4,225,496 $ 3,672,962 $ 3,341,921 $ 3,068,909 $ 2,475,285
====================================================================================
Total Risk-Adjusted Assets $29,257,928 $27,335,898 $23,355,708 $20,918,979 $ 17,874,938
Leverage Ratio 10.09% 9.15% 8.84% 9.28% 9.25%
Tier 1 Risk-Based Capital Ratio 12.47% 11.28% 11.84% 11.75% 11.87%
Total Risk-Based Capital Ratio 14.44% 13.44% 14.31% 14.67% 13.85%
</TABLE>
<PAGE> 9
FIFTH THIRD BANCORP
YEAR ENDED
- --------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE SHEET - ASSETS ($000S)
Cash and Cash Equivalents $ 1,045,368 $ 963,840 $ 1,085,847 $ 875,291 $ 941,689
Available-for-Sale Securities 11,183,935 10,215,015 9,456,784 6,870,255 2,396,384
Held-to-Maturity Securities 121,880 315,913 688,829 605,885 4,070,378
Other Short-Term Investments 164,760 211,528 352,903 307,064 279,575
-------------------------------------------------------------------------------------
Total Securities 11,470,575 10,742,456 10,498,516 7,783,204 6,746,337
-------------------------------------------------------------------------------------
Total Cash and Securities 12,515,943 11,706,296 11,584,363 8,658,495 7,688,026
Loans Held for Sale 588,972 315,156 93,279 390,938 55,541
Loans and Leases Held for Investment
(before reserve) 22,356,524 21,898,954 20,207,880 18,422,675 16,389,089
-------------------------------------------------------------------------------------
Total Loans and Leases 22,945,496 22,214,110 20,301,159 18,813,613 16,444,630
Loan Loss Reserve (331,621) (312,264) (284,284) (271,006) (245,925)
Goodwill 167,827 111,837 77,360 83,420 64,988
Other Intangibles 247,365 255,246 277,049 86,254 48,369
-------------------------------------------------------------------------------------
Total Intangible Assets 415,192 367,083 354,409 169,674 113,357
Mortgage Servicing Rights 81,657 73,348 57,280 31,268 41,330
Other Real Estate Owned 12,622 13,798 22,762 21,202 28,973
Other Assets 1,452,977 1,117,802 1,099,362 878,725 728,065
-------------------------------------------------------------------------------------
Total Assets $ 37,092,266 $ 35,180,173 $ 33,135,051 $ 28,301,971 $ 24,798,456
=====================================================================================
BALANCE SHEET - LIABILITIES ($000S)
Deposits $ 24,495,784 $ 24,289,566 $ 23,306,020 $ 20,825,573 $ 18,063,542
Borrowings:
Short-Term 4,514,636 4,391,386 4,263,311 2,474,043 3,174,550
Long-Term 3,063,590 2,305,341 1,795,069 1,781,708 969,811
Convertible Subordinated Debentures 172,500 -- -- -- --
Other Liabilities 1,050,702 835,340 635,238 562,010 410,873
-------------------------------------------------------------------------------------
Total Liabilities $ 33,297,212 $ 31,821,633 $ 29,999,638 $ 25,643,334 $ 22,618,776
=====================================================================================
BALANCE SHEET - EQUITY ($000S)
Common Equity 3,758,293 3,437,551 3,124,960 2,634,795 2,246,585
Net Unrealized Gains (Losses) on
Securities Available for Sale 94,720 105,569 10,630 23,842 (66,905)
Treasury Stock, at Cost (57,959) (184,580) (177) -- --
-------------------------------------------------------------------------------------
Total Shareholders' Equity $ 3,795,054 $ 3,358,540 $ 3,135,413 $ 2,658,637 $ 2,179,680
=====================================================================================
Common Shares Outstanding (net of treasury) 302,064,369 297,760,466 303,013,639 290,579,395 282,869,895
Treasury Shares Held 922,028 5,424,885 8,844 -- --
</TABLE>
<PAGE> 10
FIFTH THIRD BANCORP
YEAR ENDED
- ----------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AVERAGE BALANCE SHEET ($000'S)
Taxable Securities $ 10,379,152 $ 9,731,043 $ 8,823,177 $ 6,489,508 $ 5,343,293
Tax Exempt Securities 673,195 538,700 646,106 614,162 499,883
Loans & Leases 22,542,611 21,129,681 19,632,693 17,641,384 15,466,674
Other Earning Assets 255,654 346,241 333,649 281,441 308,697
-------------------------------------------------------------------------------------
Total Earning Assets 33,850,612 31,745,665 29,435,625 25,026,495 21,618,547
-------------------------------------------------------------------------------------
Cash and Due from Banks 884,254 727,910 744,674 767,418 747,303
Other Assets 1,752,598 1,495,234 1,380,721 949,430 798,532
Reserve for Credit Losses (319,867) (292,320) (280,485) (257,885) (238,740)
-------------------------------------------------------------------------------------
Total Assets $ 36,167,597 $ 33,676,489 $ 31,280,535 $ 26,485,458 $ 22,925,642
=====================================================================================
Interest Checking $ 3,347,400 $ 2,921,380 $ 2,598,806 $ 2,231,242 $ 2,368,532
Savings 4,082,081 3,023,342 2,696,634 1,679,057 2,008,867
Money Market Deposits 1,821,374 2,666,815 2,915,344 2,747,673 2,372,389
Other Consumer Time 9,353,237 9,912,459 9,740,352 8,240,829 7,173,858
CDs $100,000 & Over 1,930,045 1,560,393 1,444,592 1,107,924 628,565
Foreign Deposits 232,381 401,741 522,216 780,475 529,434
Short-Term Borrowings 5,101,509 4,481,564 3,577,166 3,258,147 2,519,201
Long-Term Borrowings 2,494,953 2,114,867 1,732,919 1,277,027 898,368
-------------------------------------------------------------------------------------
Total Interest-Bearing Liabilities 28,362,980 27,082,561 25,228,029 21,322,374 18,499,214
Demand Deposits 3,308,743 2,832,970 2,539,569 2,223,145 1,952,151
Other Liabilities 951,392 677,756 611,438 491,846 389,117
-------------------------------------------------------------------------------------
Total Liabilities 32,623,115 30,593,287 28,379,036 24,037,365 20,840,482
-------------------------------------------------------------------------------------
Common Equity 3,544,482 3,083,202 2,901,499 2,448,093 2,085,160
-------------------------------------------------------------------------------------
Total Liabilities & Shareholders'
Equity $ 36,167,597 $ 33,676,489 $ 31,280,535 $ 26,485,458 $ 22,925,642
=====================================================================================
Average Loans and Leases
(excluding held for sale) $ 22,188,229 $ 20,972,385 $ 19,485,730 $ 17,524,154 $ 15,275,086
Average Shares Outstanding
Basic 301,334,859 297,864,106 299,174,576 285,500,909 280,625,800
Diluted 308,751,636 302,827,072 305,760,252 295,251,724 290,285,582
</TABLE>
<PAGE> 11
FIFTH THIRD BANCORP
YEAR ENDED
- ----------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
1998 1997 1996 1995 1994
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSET QUALITY ($000s)
Non-Accrual Loans $ 77,177 $ 102,059 $ 98,819 $ 107,638 $ 58,291
Renegotiated Loans 1,195 1,795 3,062 2,274 2,870
Other Real Estate Owned 12,622 13,798 22,762 21,202 28,973
----------------------------------------------------------------------------
Total Non-Performing Assets 90,994 117,652 124,643 131,114 90,134
Loans 90+ Days Past Due 87,002 55,779 48,060 25,893 18,255
----------------------------------------------------------------------------
Total NPAs Plus Loans Over 90 Days $ 177,996 $ 173,431 $ 172,703 $ 157,007 $ 108,389
============================================================================
LOAN PORTFOLIO ($ IN MILLIONS)
(net of unearned discount)
Construction & Land Development $ 826 $ 723 $ 708 $ 623 $ 540
Commercial Mortgages 2,193 1,779 1,697 1,619 1,852
Commercial Loans & Leases 6,974 6,925 6,280 5,404 4,152
Residential Mortgages 6,200 6,849 6,120 5,800 5,602
Home Equity Loans 1,705 1,335 886 626 481
Credit Card Outstandings 360 370 437 395 337
Other Consumer 4,687 4,233 4,173 4,347 3,480
----------------------------------------------------------------------------
Total Loans & Leases $ 22,945 $ 22,214 $ 20,301 $ 18,814 $ 16,444
============================================================================
NON-PERFORMING LOANS ($000s)
(non-accrual plus renegotiated)
Construction & Land Development $ 542 $ 3,152 $ 9,324 $ 2,354 $ 4,789
Commercial Mortgages 14,452 12,152 18,208 34,371 18,937
Commercial Loans & Leases 36,928 49,562 39,487 41,846 16,357
Residential 22,655 35,450 30,431 26,867 18,197
Installment 3,795 3,538 4,431 4,474 2,881
----------------------------------------------------------------------------
Total $ 78,372 $ 103,854 $ 101,881 $ 109,912 $ 61,161
============================================================================
NET CHARGE-OFFS ($000s)
Commercial Real Estate $ 8,198 $ 5,812 $ 2,529 $ 1,910 $ 391
Commercial Loans & Leases 38,406 11,965 11,984 7,362 8,526
Residential Mortgages 1,364 3,928 2,931 3,123 928
Consumer 38,903 52,748 49,449 24,755 10,871
Leases 22,958 16,719 10,419 3,691 1,479
----------------------------------------------------------------------------
Total $ 109,829 $ 91,172 $ 77,312 $ 40,841 $ 22,195
============================================================================
Gross Charge-Offs 142,791 121,707 103,556 58,047 40,597
Recoveries (32,962) (30,535) (26,244) (17,206) (18,402)
----------------------------------------------------------------------------
Net Charge-Offs $ 109,829 $ 91,172 $ 77,312 $ 40,841 $ 22,195
============================================================================
</TABLE>
* - 1998 includes the effect of 2Q merger-related charge-offs of $5,952.
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