August 31, 200717 yr Author In reality I can see Nat City acquiring 5/3 Sorry but there are only a handful of banks that are large enough to acquire a bank like 5/3, National City, or Key...and to be honest it would be too much for one of them to acquire one of the others. They'd be acquiring another business almost as large as they are...those are usually recipes for disaster. Those 3 banks only have the BIG boys to worry about (Bank of America, Wachovia, etc).
September 3, 200717 yr nat city wont be buying 5/3 and 5/3 will not be buying nat city. There is too much overlap in their footprint to gain any significant economies of scale and the banking regulators would never allow a bank with that much market share to compete in its primary markets. A merger between the two would make it the 2nd largest in Chicago, give it over 50% market share in Col, Cle, Day, Cinti, and Tol. Not a good potential fit for the two. A Key Nat city merger has much less overlap once you leave the cleveland area.
September 4, 200717 yr I guess I should've used an emoticon as that was a tongue in cheek comment :thenewlyinventedtongueincheekemoticon:
September 5, 200717 yr Author Project Search to expand BY JEFF MCKINNEY | CINCINNATI ENQUIRER September 5, 2007 DOWNTOWN -- Fifth Third Bank will expand its Project Search program to downtown Cincinnati today with the formal opening of a new classroom at its 530 Walnut St. location. The expansion, part of a partnership with Cincinnati Public Schools, will allow the bank to make the job-preparation program for students with mental or physical disabilities available to CPS students for the first time and expand it beyond the Madisonville campus on Kingsley Drive. Eight CPS students are currently taking the classes that started last week at the Walnut Street site. Michelle Evans, vice president of human resources at Fifth Third, said four spots remain open for CPS students at the downtown location.
September 14, 200717 yr Author Mortgage woes pinch Fifth Third Analyst: Charge-off rate worst in peer group BY STEVE WATKINS | CINCINNATI BUSINESS COURIER September 14, 2007 CINCINNATI - As problems wash over the home mortgage industry, local banks are getting mixed results in their battles to keep their loan portfolios clean. Credit problems are on the rise at Cincinnati's largest locally based bank. Fifth Third Bancorp's home loan charge-offs rose in the second quarter to 0.67 percent of all residential real estate loans. To put that in perspective, that figure marked the worst results for any of the peer group of 17 banks that Friedman, Billings, Ramsey & Co. analyst Gary Townsend follows. That group's median charge-off rate was just one-third of Fifth Third's rate.
September 22, 200717 yr Author Fifth Third settles class-action privacy rights lawsuit BY JON NEWBERRY | CINCINNATI BUSINESS COURIER September 21, 2007 CINCINNATI - Fifth Third Bank reached an out-of-court settlement with a handful of Cincinnati-area consumers who charged that the bank had improperly reviewed their credit records. Terms were not disclosed, and the plaintiffs agreed not to talk about it as part of the deal, said Bellevue lawyer Steven Shane. He said only that the settlement was "mutually advantageous" to the parties to the lawsuit, which was filed as a class action in the U.S. District Court for the Southern District of Ohio in Cincinnati in March.
September 25, 200717 yr 5/3 strikes again!!! ... and again in the Dirty-South! 5/3 to acquire Atlanta banks STAFF REPORTS E-mail | Print | digg us! | del.icio.us! Fifth Third Bancorp has agreed to buy nine First Horizon Bank branches in the Atlanta area for an undisclosed price, First Horizon said today. The latest move by Cincinnati-based Fifth Third – the region’s largest bank and nation’s 13th largest bank with assets of $101 billion – will give it substantial operations in metro Atlanta. Last month, the bank announced the buyout of Charlotte, N.C.-based First Charter, which has operations in Atlanta’s suburbs. The Fifth Third purchase of First Horizon’s branches is expected to close by the first quarter of 2008. http://news.enquirer.com/apps/pbcs.dll/article?AID=/AB/20070925/BIZ01/309250024/
September 25, 200717 yr Author This makes me happy for more than one reason! BTW, here is a little better article from the Business Courier... Fifth Third buying 9 more Atlanta branches BY JON NEWBERRY | CINCINNATI BUSINESS COURIER September 25, 2007 CINCINNATI - Fifth Third Bank has agreed to acquire nine First Horizon Bank branches in the Atlanta area, increasing its presence in a key Southeast market. Terms were not disclosed. The agreement will give Cincinnati-based Fifth Third 11 branches in Atlanta, including two branches it's getting with its earlier announced acquisition of Charlotte, N.C.-based First Charter Corp. The nine First Horizon branches will deliver about $150 million of deposits and $200 million of loans to Fifth Third, according to spokeswoman Debra DeCourcy in Cincinnati.
October 2, 200717 yr Another one bites the dust ... Fifth Third gets go-ahead for R-G acquisition BY CINCINNATI BUSINESS COURIER October 2, 2007 Federal regulators have given the OK for Fifth Third Bancorp to acquire a Florida bank, the bank said Tuesday. "We are happy to announce that we have received approval on all applications we filed with bank regulatory agencies related to our purchase of R-G Crown," said Kevin Kabat, president and CEO of Cincinnati-based Fifth Third, in a news release.
October 26, 200717 yr Author Fifth Third hopes Chicago, South will boost prospects BY STEVE WATKINS | CINCINNATI BUSINESS COURIER October 26, 2007 CINCINNATI - Fifth Third Bancorp is striving to transform itself by getting into high-growth markets, even as its stock is hitting a 10-year low and earnings growth remains elusive. Cincinnati's largest locally based bank, and the 13th largest in the nation, is targeting the Southeast and mid-Atlantic states, as well as Chicago, for most of its growth. Its goal is to transform the bank from one focused on tepid Rust Belt markets to one targeting boom towns.
October 26, 200717 yr Long gone are the days of $67/share, unfortunately. They're doing the right things. I have a friend who still works there and he says they're going through the portfolio and kicking out anything that even smells funny. P + 5%, have a nice day. Mostly in real estate (big surprise) Clean out the deadwood and focus on quality growth. They're putting up branches like monopoly houses in NE Ohio, so the article is right, they still are looking to grow in the midwest.
October 27, 200717 yr The markets are just tough right now with financial stocks, given the mortgage/housing crisis and continued margin compression. Still, if stocks like AKS can go from $1-2 a share to over $50, I think 5/3 could make a comeback as well when the economy strengthens. So it may be a good time to buy. However, a lower stock price makes it a more attractive acquisition.
January 18, 200817 yr Author First Charter shareholders approve Fifth Third merger January 18, 2008 | CINCINNATI BUSINESS COURIER CINCINNATI - Shareholders of First Charter Corp. have approved the Charlotte, N.C., company's acquisition by Fifth Third Bancorp. "We are pleased with the overwhelming shareholder support of the upcoming merger and look forward to introducing the Fifth Third brand to our markets," says Bob James, chief executive of First Charter. The $1.1 billion deal, originally slated to close this quarter, likely will be delayed until the second quarter.
January 22, 200817 yr Bad loans hurt Fifth Third's earnings BY STEVE WATKINS | CINCINNATI BUSINESS COURIER January 22, 2008 One-time charges and bad loans pummeled Fifth Third Bancorp's fourth-quarter earnings. Cincinnati's largest locally based bank earned 7 cents per share, down 42 percent from the 12 cents it earned in the year-ago quarter. But Fifth Third took a few noncash charges that lowered earnings in the fourth quarter. Those included 29 cents a share to reflect a lower surrender value of one of its bank-owned life insurance policies and 12 cents for the estimated costs to settle future litigation involving Visa members. It also took a charge of 1 cent per share related to its November acquisition of R-G Crown in Florida.
January 23, 200817 yr I wonder how bad the housing market situation is going to get. Michigan and Florida are the big culprits for Fifth Third, and it might get worse before getting better. At least they made money I guess - it looks like some are showing losses.
January 23, 200817 yr ^ The next batch of ARM's will reset in three months. Most of the people that I have talked to are pessimistic about short to mid term in the mortgage market. EDIT: Ohio is towards has one of the highest default rates in the country. If Michigan and Florida are the two major sources of default for 5/3, it could get uglier!
February 8, 200817 yr Author Deal by 5/3 blows up February 8, 2008 | ASSOCIATED PRESS CINCINNATI - Fifth Third Bancorp said today it may sue First Horizon National Corp. after the bank allegedly backed out of a deal to sell nine branches in the Atlanta area. Memphis-based First Horizon, which lost $170.1 million last year, had reached deals to sell 34 branches outside its core market so the bank could focus more on Tennessee. The sale of 10 branches in the Dallas/Forth Worth area to Sterling Bank is still scheduled to be completed today, and the bank sold 13 branches in Virginia and Maryland to M&T Bank Corp. and two branches in Georgia to FMBC Holdings Inc. last year.
February 15, 200817 yr Author Developer sues Fifth Third over data error BY JON NEWBERRY | CINCINNATI BUSINESS COURIER February 15, 2008 CINCINNATI - Months after Fifth Third Bank first learned of a data reporting error that corrupted thousands of credit scores and said it was fixing the problem, some borrowers are still having difficulties. Central Florida developer Mark Blythe has sued Fifth Third for slander in Orange County (Orlando) court, alleging that the mistake prevented him from closing loans for the acquisition of properties he intended to rehab, ruining his business. He is claiming more than $80,000 in damages.
April 4, 200817 yr Author 5/3 in hunt for NatCity? BY ALEXANDER COOLIDGE | CINCINNATI ENQUIRER April 3, 2008 CINCINNATI - Fifth Third Bancorp is the latest in the line of potential suitors for distressed National City, according to news reports today. Reuters reported the Cincinnati-based regional bank is in preliminary discussions with National City about acquiring the Cleveland-based regional bank, which has been battered by its exposure to subprime loans and the foreclosure crisis.
April 4, 200817 yr This does not seem likely to me as 5/3 has made it clear they are concentrating on the Southeast and Chicago. It seems they already have enough of a presence in the Midwest and this would bulk up that region even more. One interesting take is potentially having multiple buyers take pieces, which might make a sale more likely. It could be that nothing happens, but with all the press from NC they must be pushing hard for a sale. Personally, I think it would be great to increase the overall size of 5/3, but I am not too keen on one Ohio bank buying another. We all saw what NC did to the Provident HQ when they bought them - the overall number of jobs in the state goes down.
April 4, 200817 yr I can't imagine 5/3 swallowing NCB whole either, but splitting with Key would make some sense and probably lessen anti-trust issues. Key could get stronger in SE OH, while 5/3 grows in the NE, and then divide out of state stuff.
April 4, 200817 yr Author Yup...the only way I see 5/3 being involved in this, is if NatCity is broken up and 5/3 takes a portion of 5/3.
April 4, 200817 yr this acquisition is too big, and as Cincy1 said, doesn't really match up well with their growth ambitions. And given the pain the Old Kent acquisition caused them (I lived through that pain), I can't imagine they're looking to acquire something as big as NCC. Old Kent ended up being a black eye for Schaefer, with the charge offs, the Fed investigation, and ultimately a complete turnover in senior management. Growing that big/that fast also impacts your culture, something 5/3 always prided itself on. That hard charging sales culture, and much of the swagger that the bank had in the old days is now gone.
April 4, 200817 yr The 5/3 story will never happen. I gurantee is what is happening is that Goldman Sachs "leaks" these rumors to the WSJ to see how the market reacts. When the Key story leaked, NCB's stock actually dropped - sensing if that is a reality then NCB is in worse shape then most think. By drumming interest through "unnamed sources" it can cause an artificial bidding war between any likely suitors.
April 16, 200817 yr Author Visa deal to give Fifth Third boost BY STEVE WATKINS | CINCINNATI BUSINESS COURIER April 11, 2008 CINCINNATI - Fifth Third Bancorp will report some whopping one-time numbers as part of its first-quarter earnings report on April 22. Look for Cincinnati's largest locally based bank to record a gain of some $350 million as a result of Visa Inc.'s initial public stock offering. Boost to capital levels The Visa gain also should boost Fifth Third's capital levels. That could be significant. Its capital position isn't a problem yet, but it's been getting worse, as it has at many banks because of all the write-offs due to problem loans. Its Tier I capital - a key regulatory measure of a bank's financial strength - was at 7.7 percent of assets at year-end, while the Federal Reserve considers 6 percent "well-capitalized." Still, Fifth Third's capital was down from 8.4 percent in 2006 and more than 10 percent three years ago. Brokered loans A sizable amount of Fifth Third's home equity loans were made through brokers rather than directly from the bank, George said. That tends to result in larger losses. In Fifth Third's case, brokered home equity loans made up half of all home equity charge-offs last year but were just 23 percent of its home equity loans. Fifth Third cut out brokered home equity loans at the end of last year but still has many on the books.
April 16, 200817 yr Author Fed approves Fifth Third buyout of First Charter April 15, 2008 | CINCINNATI BUSINESS COURIER CINCINNATI - The Federal Reserve Board has approved Fifth Third Bancorp's acquisition of First Charter Corp. of Charlotte, N.C. The $1.1 billion deal is slated to close this quarter. According to the Aug. 15 merger agreement, Fifth Third will pay $31 per share for First Charter. That's a premium of more than 50 percent, based on First Charter's price of $20.25 before the announcement. The number of Fifth Third shares issued would depend on the market price just before closing.
April 16, 200817 yr Author CEO: 5/3 will survive, grow BY MIKE BOYER | CINCINNATI ENQUIRER April 16, 2008 CINCINNATI - This is the worst operating climate in his 30 years in banking, but Kevin T. Kabat, Fifth Third Bancorp president and CEO, told investors Tuesday that Cincinnati's largest bank will survive the credit crunch and grow. "We're well-positioned relative to some of our peers to weather the storm," he said at the anual meeting at the Duke Energy Center downtown. "Some of our peers won't survive." One could be Cleveland-based National City, which is shopping for a potential acquirer, reportedly including Fifth Third.
May 5, 200817 yr http://pittsburgh.bizjournals.com/pittsburgh/stories/2008/05/05/daily3.html?surround=lfn Fifth Third gains foothold in Atlanta Pittsburgh Business Times Fifth Third Bancorp has completed its effort to purchase nine First Horizon National Corp. branches in Atlanta, a deal that was derailed in February and got back on track in March.
June 22, 200816 yr CEO's lucrative raise rendered worthless by depressed stock price Fifth Third BY ALEXANDER COOLIDGE | [email protected] http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080622/BIZ01/806220348/1076/BIZ
July 3, 200816 yr Author Baird analyst: Fifth Third has enough capital http://cincinnati.bizjournals.com/cincinnati/stories/2008/06/30/daily32.html
August 13, 200816 yr Author 2 parts of 5/3 for sale? http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080812/BIZ01/308120069/1055/NEWS Fifth Third Bancorp is shopping at least part of its processing operations as well as its asset management business for potential divestiture, according to a report this afternoon on FT.com, the Web site of the Financial Times.
September 19, 200816 yr Author Fifth Third repositions N.C. strategy after bank buyout http://cincinnati.bizjournals.com/cincinnati/stories/2008/09/22/story10.html Fifth Third Bancorp is pitching its arrival in Charlotte, N.C., with a glitzy new ad campaign. But the Cincinnati bank is sending another message to the investment community – commercial real estate lending is out, at least temporarily. Fifth Third, which completed its purchase of Charlotte-based First Charter about three months ago, is burdened by souring commercial and residential real estate loans in Florida and Michigan. Just weeks after the deal closed, Fifth Third executives told analysts and investors it had “suspended all new developer and non-owner-occupied commercial property lending.”
September 22, 200816 yr 5/3 defines middle market as $15MM in revenues up to about $250MM or so. They're going to play in a smaller market than what Plath is indicating. Still a competitive market, but with a max lending threshold of typically $25-35MM, they're not looking to be the sole player for those larger companies. In that instance, they prefer to be a participant in a syndicated deal.
September 22, 200816 yr Author Fifth Third adds 24-hour online foreign exchange trading http://cincinnati.bizjournals.com/cincinnati/stories/2008/09/22/daily9.html Fifth Third Bancorp is expanding its 10 foreign exchange trading desks with an Internet platform that will allow its clients 24-hour access to foreign exchange markets.
September 29, 200816 yr With Wells-Fargo bidding to buy Wachovia, would that purchase eliminate the decade-old speculation that it was going to buy 5/3 to expand into this region? Wachovia does not have any branches in Ohio, but it has many in the south and the northeast where Wells-Fargo has no presence.
September 29, 200816 yr Personally i think mergers into something larger are coming to an end. These companies are way too big to begin with. One reason they failed. The old saying is true. Never put all your eggs into one basket.
September 29, 200816 yr ^I disagree, historically in just about every industry the end result is polarization - where the only things left are a handful of "mega" companies and the rest are much smaller, niche-oriented. Anything in the middle will be acquired or merged into non-existence. And this morning it was announced that Citigroup is buying Wachovia's assets. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
September 29, 200816 yr Author The current financial situation is going to further accelerate the consolidation of the financial industry. From my projections 5/3 could end up being one of the 10 largest banking institutions by the end of this year. They started the year around 18th in the nation. This of course hinges upon 5/3 taking over BB&T which is just about the same size as 5/3.
September 29, 200816 yr Author All financial stocks will get hit hard. But I still believe that 5/3 will emerge as one of the large banks/power players as a result of them being the best of the worst for the large banking/financial institutions. They played the housing market and mortgage game conservatively...that will be their saving grace.
September 30, 200816 yr True, but they have been hurt by their Florida and Michigan positions. The purchase of Old Kent continues to poison the well, ten years later.
October 27, 200816 yr Author It seems like 5/3 will follow the path of NatCity unless something drastic happens. A acquisition of BB&T could save 5/3 and position them to be one of the major players once this whole rapid consolidation period comes to an end.
October 27, 200816 yr Fifth Third Bancorp (FITB, Fortune 500), based in Cincinnati, said late Sunday that it applied for $3.4 billion from the program, and that it expects "our application will be approved shortly by Treasury."
October 27, 200816 yr Fifth Third Bancorp (FITB, Fortune 500), based in Cincinnati, said late Sunday that it applied for $3.4 billion from the program, and that it expects "our application will be approved shortly by Treasury." Granted, as well as 2.5 billion for Key, so looks like they are both safe for now!
October 27, 200816 yr Sounds like the Treasury has their priorities in order. Go 5/3. I have a super cheap car loan with them and no fee checking and saving accounts.
October 27, 200816 yr 5/3 and BB&T would be a merger of equals. It will be interesting to see how these things play out since Key and Huntington are both going to get some money and USBank already got some in the first issuance. I'm just looking forward to PNC in Cbus.
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