Fifth Third Bancorp Reports 18 Percent Increase in First Quarter 2001 Net Income

Apr 16, 2001, 01:00 ET from Fifth Third Bancorp

    CINCINNATI, April 16 /PRNewswire/ -- Fifth Third Bancorp's (Nasdaq: FITB)
 net income was $244,304,000 for the first quarter of 2001, up 18 percent over
 $206,369,000 for the same quarter last year.  Earnings per diluted share were
 $.51 for the first quarter, a 16 percent increase compared to $.44 per share
 in the first quarter of 2000.  Return on average assets (ROA) was
 2.18 percent, up from 1.90 percent in the first quarter of 2000.  Return on
 average equity (ROE) was 19.6 percent, improved from 19.4 percent for the same
 period in 2000.  Fifth Third achieved this high level of ROE performance with
 a strong capital base, as equity to assets exceeded 11 percent this quarter.
 Fifth Third's efficiency ratio improved to 41.9 percent compared to
 43.8 percent in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991117/FITBLOGO )
     "We are pleased to start the year with such strong results," stated
 George A. Schaefer, Jr., President and CEO.  "With a diversified business mix
 and the financial flexibility afforded by the recognized strength of our
 balance sheet, Fifth Third was well positioned to deliver a solid quarter
 highlighted by continued strong revenue growth across all of our businesses.
 We continue to see success in expanding our Retail and Commercial customer
 relationships and our fee businesses are performing very well.   The resulting
 revenue momentum provides the flexibility to be proactive on credit quality
 through more aggressive charge-offs."
     Schaefer continued, "I'd also like to welcome our new shareholders,
 employees and customers from the Old Kent merger, which occurred on April 2.
 We have been working closely with the Old Kent team since November and are
 well on our way to achieving the financial objectives of the combined company.
 The Old Kent merger added tremendous market opportunity and a great talent
 base for sustaining the quality earnings growth that our shareholders expect."
     "Our success this quarter certainly makes us optimistic about the
 remainder of 2001.  Although we are mindful of the challenges that the
 external environment is causing for all strong companies, Fifth Third has
 considerable flexibility to sustain quality earnings growth.  With the best-
 capitalized balance sheet in the industry, net interest margin expansion,
 solid sales results, market share upside throughout our footprint and expense
 flexibility in the Old Kent integration, we believe that we have built a good
 foundation to sustain our track record."
 
     Fee Revenue Advances 20 Percent - Better Than Expected
     Fifth Third's successful sales execution and continued focus on its fee-
 based businesses resulted in a 20 percent increase in non-interest income,
 excluding securities gains, over first quarter 2000.  Data processing again
 led the growth with a revenue increase of 31 percent, driven by double-digit
 revenue increases in both merchant processing and electronic funds transfer
 (EFT).  A steady pipeline of new customers, the high-speed growth and
 increased usage of debit cards and the popularity of our low cost e-commerce
 platform sustained better than 30 percent revenue growth for the fifth
 consecutive quarter.  Fifth Third expects to process approximately six billion
 ATM, point-of-sale and e-commerce transactions in 2001 for nearly 87,000
 retail locations and financial institutions worldwide.  Fifth Third reached an
 agreement in February 2001 to acquire 49 percent of Universal Companies, a
 privately-held, fully-integrated payment and e-commerce processor,
 headquartered in Milwaukee, Wisconsin.  The investment gives Fifth Third an
 increased presence in the smaller merchant market segment.
     Successful sales of Retail and Commercial deposit services and Corporate
 Treasury Management products fueled increases in total service charges on
 deposits of 18 percent for the quarter. Retail deposit service charges
 increased 19 percent year-over-year, driven by the success of sales campaigns
 in our banking centers and direct marketing programs in generating new account
 relationships.  Similarly, recent Commercial deposit sales campaigns helped
 fuel an increase of 17 percent in Commercial deposit service charges.
     Investment Advisory revenue returned to double-digit growth with a solid
 10 percent advance over the same quarter of last year.  Personal Trust
 revenues increased eight percent over first quarter last year in a difficult
 market and brokerage fees increased 21 percent on the strength of a more
 productive sales force and increased market activity.  Revenue from foundation
 and endowment services and custody services remains strong with double-digit
 growth rates across the board.  With the April 2, 2001 acquisition of Old
 Kent, Fifth Third Investment Advisors has approximately $173 billion in assets
 under care and $33 billion in assets under management, which includes $11.7
 billion in its proprietary funds, adding to our strong asset management
 platform.
     Other service charges and fees totaled $109.6 million, an increase of
 21 percent over last year's first quarter.  This increase is primarily
 attributable to increases in mortgage loan servicing fees, a 36 percent
 increase in Commercial banking fees and advances in credit card fees and loan
 and lease fees.  The securities gains resulted primarily from the first
 quarter restructuring of the acquired Capital Holdings' investment portfolio.
 
     Solid Deposit and Loan Growth; Improved Net Interest Margin
     Fifth Third continued its emphasis on attracting new deposit customers.
 In addition to strong fee income growth from providing services to these
 customers, the efforts paid off with 16 percent year-over-year growth in
 transaction account deposit balances.  The continued benefits of Fifth Third's
 successful Totally Free Checking and Platinum One sales campaigns are evident
 through a 20 percent increase in consumer checking account balances over the
 prior year.  On a sequential basis, average interest checking, savings and
 money market, and demand deposit balances increased five percent from last
 quarter, overcoming the effects of typical seasonal declines.  Similar success
 was exhibited in the 12 percent year-over-year increase in average Commercial
 deposits.  Our March 2001 Capital Holdings acquisition added approximately
 $150 million in interest checking, $122 million in savings and money market,
 and $63 million in demand deposit account balances; however, given that the
 acquisition occurred late in the quarter, the impact on average balances was
 much less significant.
     During the quarter, loan demand across all product lines remained steady.
 Commercial loan and lease balances grew 18 percent overall versus the first
 quarter of 2000.  This growth was achieved while also adding nearly
 $500 million in outstandings to Fifth Third's asset-backed commercial paper
 program, Fountain Square Funding Corporation.  Quarter-end Commercial loan and
 lease balances were increased by approximately $670 million upon the
 acquisition of Capital Holdings in March 2001, approximately $425 million of
 which were Commercial mortgages.  Excluding the effect of these Capital
 Holdings loans, Commercial loan and lease balances increased 12 percent
 compared to March 31, 2000.  Direct installment loan balances increased
 19 percent, compared to the same period last year, on originations of $698
 million during the quarter compared to $594 million in the 2000 first quarter
 and $606 million last quarter.
     Residential mortgage originations this quarter totaled $1.0 billion, up
 from last quarter's $890 million and from $631 million in the same quarter
 last year.  During the first quarter of 2001, Fifth Third securitized
 $583 million of mortgage loans, with $356 million retained in the investment
 securities portfolio and the remainder sold.  As these transactions occurred
 late in the quarter, only period-end balances are affected.  While Consumer
 lease balances increased four percent over December 31, 2000, comparisons to
 the 2000 first quarter are affected by the sale with servicing retained of
 $958 million in balances during September 2000.  Fifth Third's total loan
 servicing portfolio increased to $46.0 billion, with $18.3 billion of loans
 serviced for other investors, compared to $41.1 billion, with $15.2 billion
 serviced for others, at the end of the same quarter last year.
     Compared to the first quarter of 2000, net interest income on a fully-
 taxable equivalent basis increased seven percent due to a four percent growth
 in average earning assets and a 15 basis point (bp) increase in net interest
 margin to 3.97 percent. The positive effect of a 24 bp improvement in the
 yield on interest-earning assets was offset by a 25 bp increase in funding
 costs due to the repricing of borrowed funds and higher year-over-year deposit
 rates on existing accounts.  On a sequential quarter basis, net interest
 margin improved by 17 bp fueled primarily by a 40 bp decrease in funding cost
 attributable to a lower interest rate environment.
 
     Controlled Credit Quality; Low Percentage of Nonperforming Assets
     Nonperforming assets (NPAs) were unchanged from the last quarter at 39 bp
 of total loans and leases and other real estate owned at March 31, 2001,
 compared to 32 bp in the first quarter of 2000.  Fifth Third's ratio of NPAs
 to total loans continues to be one of the lowest in the industry, compared to
 recent industry averages for the top 50 banks of near 80 bp.  Underperforming
 assets (UPAs) were 71 bp of total loans and leases and other real estate owned
 at March 31, 2001, compared to 63 bp in the first quarter of 2000 and 72 bp
 last quarter.  As of March 31, 2001, NPAs totaled $105.5 million, an increase
 of $5.6 million over last quarter and $23.6 million over the end of the first
 quarter of 2000.  Residential mortgages in excess of 90 days past due with
 minimal loss exposure comprised $38.4 million of the UPAs at March 31, 2001,
 $35.0 million at December 31, 2000 and $46.8 million at March 31, 2000.
     The first quarter provision for loan losses totaled $30.3 million, a
 42 percent increase over the $21.4 million in last year's first quarter and
 31 percent over last quarter's $23.1 million. Net charge-offs for the quarter
 were $30.9 million, compared to $14.9 million in the first quarter of 2000 and
 $27.1 million last quarter.  As a percentage of total average loans and
 leases, first quarter net charge-offs were 47 bp, compared to 24 bp in 2000's
 first quarter and 41 bp last quarter.
     Strong fee revenue growth, expanding net interest margin, more favorable
 interest rates and a strong balance sheet give Fifth Third considerable
 flexibility to address credit quality.
 
     Sustained Expense Control
     Operating expenses increased seven percent compared to the first quarter
 of 2000, due to a three percent increase in salaries, incentives and employee
 benefits and a 12 percent increase in all other expenses.  On a sequential
 quarter basis, operating expenses increased by eight percent, as salaries,
 incentives and employee benefits increased nine percent and all other expenses
 increased six percent.  The sequential increase in operating expenses results
 largely from incremental expenses totaling approximately $10 million
 associated with the acquisitions of Ottawa Financial Corporation, Maxus
 Investment Group and Capital Holdings in December 2000, January 2001 and
 March 2001, respectively.
     The sequential increase in full-time equivalent positions was primarily
 due to the addition of approximately 80 employees in the Maxus and Capital
 Holdings acquisitions, along with the increase in employees in preparation for
 the integration of Old Kent.
 
     Conference Call
     Fifth Third will host a conference call to discuss these first quarter
 2001 financial results at 9 a.m. (Eastern Daylight Time) on April 16, 2001.
 Investors, analysts and other interested parties may dial into the conference
 call at 800-447-0521 for domestic access and 847-413-3238 for international
 access.  A replay of the conference call will be available until April 23,
 2001 by dialing 888-843-8996 for domestic access and 630-652-3044 for
 international access, (passcode: 3857919).
 
     Corporate Profile
     Fifth Third Bancorp is a diversified financial services company
 headquartered in Cincinnati, Ohio. Following the April 2, 2001 acquisition of
 Old Kent Financial Corporation, the Company has over $70 billion in assets,
 operates 17 affiliates with 974 full-service Banking Centers, including
 147 Bank Mart(R) locations open seven days a week inside select grocery stores
 and 1,905 Jeanie(R) ATMs in Ohio, Kentucky, Indiana, Florida, Arizona,
 Michigan and Illinois. A leader in e-commerce, Fifth Third was named #1
 e-business innovator by PC Week. The financial strength of Fifth Third's
 affiliate banks continues to be recognized by rating agencies with deposit
 ratings of AA- and Aa2 from Standard & Poor's and Moody's, respectively.
 Additionally, Fifth Third Bancorp continues to maintain the highest short-term
 ratings available at A-1+ and Prime-1, and has been recognized by Moody's with
 one of the highest senior debt ratings for any U.S. bank holding company of
 Aa3. Fifth Third operates four main businesses: Retail, Commercial, Investment
 Advisors and Midwest Payment Systems, the Bank's data processing subsidiary.
 Investor information and press releases can be viewed at http://www.53.com ;
 press releases are also available by fax at no charge by calling 800-758-5804,
 identification number 281775. The Company's common stock is traded in the
 over-the-counter market through The Nasdaq National Market under the symbol
 "FITB."
     This release contains forward-looking statements relating to present or
 future trends or factors affecting the banking industry and specifically the
 operations, markets and products of Fifth Third. Actual results could differ
 materially from those projected. Fifth Third undertakes no obligation to
 release revisions to these forward-looking statements or reflect events or
 circumstances after the date of this release.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Financial Highlights
     (unaudited)
                                                Three Months Ended
                                                     March 31,         Percent
                                                 2001        2000      Change
     Earnings ($000's except per share):
       Net Interest Income (FTE)               $412,735    385,488       7.1
       Net Income                               244,304    206,369      18.4
       Per Share (a)
         Earnings                                  0.52       0.45      15.6
         Diluted Earnings                          0.51       0.44      15.9
     Key Ratios (percent):
       Return on Average Assets                    2.18       1.90      14.7
       Return on Average Equity                    19.6       19.4       1.0
       Net Interest Margin                         3.97       3.82       3.9
       Efficiency Ratio                            41.9       43.8      (4.3)
       Average Shareholders' Equity to
         Average Assets                           11.14       9.80      13.7
       Risk-Based Capital Ratios (b):
         Tier I                                   13.03      11.62      12.1
         Total                                    14.76      13.38      10.3
     Common Stock Data (a):
       Cash Dividends Declared Per Share          $0.20       0.16      25.0
       Book Value Per Share                       11.03       8.94      23.4
       Market Price Per Share
         High                                     61.31      48.50      26.4
         Low                                      45.69      29.33      55.8
         End of Period                            53.44      42.00      27.2
       Price/Earnings Ratio (c)                   28.13      28.13        --
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Financial Highlights, continued
     (unaudited)
                                                          March 31,     Percent
                                                        2001     2000    Change
     Balance Sheet Data ($ in millions):
       Assets                                          $47,015  44,389     5.9
       Loans and Leases                                 26,767  25,411     5.3
       Interest-Earning Assets                          43,610  41,300     5.6
       Deposits                                         28,724  28,986    (0.9)
       Shareholders' Equity                              5,201   4,152    25.3
 
     Book Value and Market Price
      Range Per Share (a)
                                                                 Market Price
                                 Book Value Per Share          Range Per Share
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31     Low       High
 
     1996                 $6.05    $6.31    $6.55    $7.02    $12.89     $22.00
     1997                  6.44     6.74     7.12     7.52     18.00      37.11
     1998                  7.68     8.06     8.24     8.38     31.67      49.42
     1999                  8.56     8.45     8.44     8.80     38.58      50.29
     2000                  8.94     9.30     9.61    10.50     29.33      60.88
     2001                 11.03       --       --       --     45.69      61.31
 
     Earnings Per Share (a)
                                          Quarter Ended
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31  Year-to-Date
 
     1996                 $0.25    $0.24    $0.22    $0.28     $0.99
     1997                  0.28     0.29     0.31     0.31      1.18
     1998                  0.32     0.12     0.38     0.39      1.21
     1999                  0.39     0.40     0.42     0.25      1.46
     2000                  0.45     0.41     0.49     0.51      1.86
     2001                  0.52       --       --       --      0.52
 
     Earnings Per Diluted Share (a)
                                         Quarter Ended
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31  Year-to-Date
 
     1996                 $0.24    $0.23    $0.22    $0.28     $0.97
     1997                  0.27     0.28     0.31     0.31      1.17
     1998                  0.31     0.12     0.37     0.39      1.19
     1999                  0.38     0.39     0.42     0.25      1.43
     2000                  0.44     0.41     0.48     0.50      1.83
     2001                  0.51       --       --       --      0.51
 
     (a)  Per share amounts have been adjusted for the three-for-two stock
          split effected in the form of a stock dividend paid July 14, 2000.
     (b)  March 31, 2001 ratios are estimated.
     (c)  Based on the most recent twelve-month earnings per diluted share
          and end of period stock prices.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Statements of Income
     (unaudited) ($000's)
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
     INTEREST INCOME
     Interest and Fees on Loans and Leases           $554,029          507,287
     Interest on Securities
       Taxable                                        252,355          247,465
       Exempt from Income Taxes                         9,007            9,373
     Total Interest on Securities                     261,362          256,838
     Interest on Other Short-Term
      Investments                                       2,257            3,055
     Total Interest Income                            817,648          767,180
     INTEREST EXPENSE
     Interest on Deposits
       Interest Checking                               39,036           31,546
       Savings and Money Market                        53,664           42,779
       Time Deposits                                  191,191          171,018
     Total Interest on Deposits                       283,891          245,343
     Interest on Federal Funds Borrowed                33,145           72,072
     Interest on Short-Term Bank Notes                     --           15,207
     Interest on Other Short-Term Borrowings           37,005           37,538
     Interest on Long-Term Debt and Notes              70,672           33,576
     Total Interest Expense                           424,713          403,736
     NET INTEREST INCOME                              392,935          363,444
     Provision for Credit Losses                       30,290           21,352
     NET INTEREST INCOME AFTER PROVISION
      FOR CREDIT LOSSES                               362,645          342,092
     OTHER OPERATING INCOME
     Data Processing Income                            66,745           50,920
     Service Charges on Deposits                       56,168           47,655
     Investment Advisory Income                        55,735           50,763
     Other Service Charges and Fees                   109,608           90,303
     Securities Gains                                   4,236              522
     Total Other Operating Income                     292,492          240,163
     OPERATING EXPENSES
     Salaries, Wages & Incentives                     118,666          109,929
     Employee Benefits                                 20,397           25,681
     Equipment Expenses                                13,042           12,685
     Net Occupancy Expenses                            21,193           19,143
     Other Operating Expenses                         120,360          106,462
     Total Operating Expenses                         293,658          273,900
     INCOME BEFORE INCOME TAXES                       361,479          308,355
     Applicable Income Taxes                          117,175          101,986
     NET INCOME                                      $244,304          206,369
     Average Shares (000's): (a)
       Outstanding                                    467,532          463,780
       Diluted                                        482,023          474,623
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Statements of Changes in Shareholders' Equity
     (unaudited) ($000's)
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
 
     BALANCE AT DECEMBER 31                        $4,891,269        4,077,031
     Net Income                                       244,304          206,369
     Nonowner Changes in Equity, Net of Tax:
     Change in Unrealized Gains (Losses) on
      Securities Available for Sale                    23,545          (73,671)
     Net Income and Nonowner Changes in
      Equity                                          267,849          132,698
     Cash Dividends Declared (a):
       Fifth Third Bancorp (2001 - $.20 per
        share and 2000 - $.16 per share)              (94,377)         (74,323)
     Stock Options Exercised Including
      Treasury Shares Issued                           13,534           13,903
     Stock Issued in Acquisitions and Other           122,678            2,742
     BALANCE AT MARCH 31                           $5,200,953        4,152,051
 
     (a)  Average shares and per share amounts have been adjusted for the
          three-for-two stock split effected in the form of a stock dividend
          paid on July 14, 2000.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Condensed Consolidated Quarterly Statements of Income
     (unaudited) ($000's)
                                                  Quarter Ended
                                  Mar. 31   Dec. 31 Sept. 30  Jun. 30  Mar. 31
                                    2001     2000     2000     2000     2000
 
     Interest Income              $817,648  836,015  842,260  817,916  767,180
     Taxable
       Equivalent
       Adjustment                   19,800   24,550   23,691   22,544   22,044
     Taxable
       Equivalent
       Interest Income             837,448  860,565  865,951  840,460  789,224
     Interest Expense              424,713  464,857  471,266  453,196  403,736
     Net Interest Income           412,735  395,708  394,685  387,264  385,488
     Provision for
      Credit Losses                 30,290   23,111   18,235   26,339   21,352
     Net Interest Income
      After Provision for
      Credit Losses                382,445  372,597  376,450  360,925  364,136
     Other Operating
       Income                      292,492  270,104  254,378  248,061  240,163
     Operating Expenses            293,658  272,454  269,216  269,703  273,900
     Merger-Related and
       Special Charges                  --       --       --   33,548       --
     Income Before
       Income Taxes                381,279  370,247  361,612  305,735  330,399
     Applicable
       Income Taxes                117,175  109,295  109,895   91,103  101,986
     Taxable
       Equivalent
       Adjustment                   19,800   24,550   23,691   22,544   22,044
     Net Income                   $244,304  236,402  228,026  192,088  206,369
 
     Per Share:
      Earnings                       $0.52     0.51     0.49     0.41     0.45
      Diluted Operating Earnings      0.51     0.50     0.48     0.46     0.44
      Diluted Earnings                0.51     0.50     0.48     0.41     0.44
      Cash Dividends Declared         0.20     0.18     0.18     0.18     0.16
 
     Average Shares (000's):
      Outstanding                  467,532  462,789  464,086  464,740  463,780
      Diluted                      482,023  476,748  476,125  476,312  474,623
 
     Net Interest
       Margin (percent)               3.97     3.80     3.74     3.74     3.82
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Other Operating Income and Operating Expenses
     (unaudited) ($000's)
                                                  Quarter Ended
                                  Mar. 31   Dec. 31 Sept. 30  Jun. 30  Mar. 31
 
                                    2001     2000     2000     2000     2000
     OTHER OPERATING
      INCOME:
     Data Processing
      Income                       $66,745   71,987   62,037   56,695   50,920
     Service Charges
      on Deposits                   56,168   56,309   57,633   55,343   47,655
     Investment Advisory
      Income                        55,735   50,969   49,037   49,471   50,763
     Other Service
      Charges and Fees             109,608   88,342   85,255   86,712   90,303
       Subtotal                    288,256  267,607  253,962  248,221  239,641
     Securities
      Gains (Losses)                 4,236    2,497      416     (160)     522
     TOTAL OTHER
      OPERATING INCOME            $292,492  270,104  254,378  248,061  240,163
     OPERATING EXPENSES:
     Salaries, Incentives &
      Employee Benefits           $139,063  127,277  126,857  132,630  135,610
     Equipment
      Expenses                      13,042   12,405   12,409   12,237   12,685
     Net Occupancy
      Expenses                      21,193   19,836   18,914   19,448   19,143
     Other Operating
      Expenses                     120,360  112,936  111,036  105,388  106,462
     Merger-Related and Special
      Charges                           --       --       --   33,548       --
     TOTAL OPERATING
      EXPENSES                    $293,658  272,454  269,216  303,251  273,900
     Employees (Full-time
      Equivalents)                  11,851   11,611   11,124   11,451   11,599
     Banking Centers                   673      668      639      639      644
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Balance Sheets
     (unaudited) ($ in millions)
                                                     March 31,        March 31,
                                                        2001             2000
     ASSETS
     Cash and Due from Banks                            $755               948
     Securities Available for Sale (a)                15,806            14,875
     Securities Held to Maturity (b)                      22               139
     Other Short-Term Investments                        121               353
     Loans Held for Sale                                 894               522
     Loans and Leases
       Commercial Loans                                6,957             6,624
       Construction Loans                              1,570             1,085
       Commercial Mortgage Loans                       3,424             2,507
       Commercial Lease Financing                      2,875             2,293
       Residential Mortgage Loans                      3,745             4,796
       Consumer Loans                                  6,174             5,351
       Consumer Lease Financing                        3,066             3,675
       Unearned Income                                (1,044)             (920)
       Reserve for Credit Losses                        (396)             (373)
     Total Loans and Leases                           26,371            25,038
     Bank Premises and Equipment                         540               490
     Accrued Income Receivable                           372               318
     Other Assets                                      2,134             1,706
     TOTAL ASSETS                                    $47,015            44,389
     LIABILITIES
     Deposits
       Interest Checking                              $5,753             4,894
       Savings and Money Market                        5,881             5,303
       Consumer Time Deposits                          9,461             8,696
           Total Customer Deposits                    21,095            18,893
       Other Time Deposits                             2,931             6,163
       Demand                                          4,698             3,930
     Total Deposits                                   28,724            28,986
     Federal Funds Borrowed                            3,580             5,279
     Short-Term Bank Notes                                --                15
     Other Short-Term Borrowings                       2,757             2,604
     Accrued Taxes, Interest and Expenses              1,482               851
     Other Liabilities                                   375               486
     Long-Term Debt                                    4,723             1,843
     Guaranteed Preferred Beneficial
      Interests in
       Convertible Subordinated Debentures               173               173
     TOTAL LIABILITIES                                41,814            40,237
     TOTAL SHAREHOLDERS' EQUITY (c)                    5,201             4,152
     TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                          $47,015            44,389
 
     (a) Amortized cost:  March 31, 2001 - $15,729 and March 31,
         2000 - $15,340.
     (b) Market values:   March 31, 2001 - $22 and March 31, 2000 - $139.
     (c) Stated value $2.22 per share; authorized 1,300,000,000; outstanding
         March 31, 2001 - 471,565,129 and March 31, 2000 - authorized
         650,000,000; 464,519,307 outstanding.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Loan and Lease Portfolios
     (unaudited) ($ in millions)
                                                      Quarter Ended
                                     Mar. 31  Dec. 31 Sept. 30 Jun. 30  Mar. 31
                                      2001     2000     2000     2000     2000
     On Balance Sheet:
     Commercial Loans & Leases
      Commercial (a)                 $6,917    6,603    6,540    6,665   6,580
      Mortgage                        3,424    2,986    2,878    2,862   2,507
      Construction                    1,570    1,484    1,220    1,144   1,085
      Leases                          2,235    2,165    2,081    1,951   1,867
       Subtotal                      14,146   13,238   12,719   12,622  12,039
     Retail Loans & Leases
      Installment                     5,842    5,716    5,475    5,281   5,057
      Mortgage                        3,745    4,034    4,850    4,562   4,796
      Credit Card                       333      362      324      312     293
      Leases                          2,701    2,602    2,494    3,302   3,226
       Subtotal                      12,621   12,714   13,143   13,457  13,372
        Total On Balance Sheet       26,767   25,952   25,862   26,079  25,411
 
     Loans Held for Sale:               894      553      437      350     522
 
     Off Balance Sheet (b):
      Residential Mortgage           13,430   13,020   11,592   12,770  11,552
      Installment                         2        5       12       18      30
      Consumer leases                   875      916      958       --      --
      Commercial (a)                  3,993    4,091    3,765    3,701   3,616
       Total Off Balance Sheet       18,300   18,032   16,327   16,489  15,198
        Total Serviced              $45,961   44,537   42,626   42,918  41,131
 
     (a)  The Bancorp sells certain commercial loans to an asset-backed
          commercial paper program.  The outstanding balance of these loans was
          $1.9 billion, $1.9 billion, $1.5 billion, $1.4 billion, and $1.4
          billion at the end of 2001's first quarter and 2000's fourth, third,
          second and first  quarters, respectively.
     (b)  Includes loans which have been securitized or sold for which the
          Bancorp retains the servicing.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Average Balance Sheets, Yields and Rates
     Taxable Equivalent Basis
     (unaudited) ($ in millions)
                                                 Three Months Ended
                                                      March 31,
                                                2001             2000
                                                    Average           Average
                                                     Yield             Yield
                                           Average   /Rate   Average   /Rate
                                           Balance    (%)    Balance    (%)
     Assets:
     Interest-Earning Assets
      Loans and Leases                     $27,038    8.54   25,700    8.20
      Securities
       Taxable                              14,431    7.16   13,981    7.12
       Tax Exempt                              671    8.26      930    7.67
     Total Interest-Earning Assets          42,140    8.06   40,611    7.82
     Cash and Due from Banks                   805      --    1,006      --
     Other Assets                            2,938      --    2,456      --
     Reserve for Credit Losses                (386)     --     (366)     --
     Total Assets                          $45,497      --   43,707      --
 
     Liabilities:
     Interest-Bearing Liabilities
      Interest Checking                     $5,415    2.92    4,800    2.64
      Savings and Money Market               5,623    3.87    5,182    3.32
      Consumer Time Deposits                 9,408    6.02    8,763    5.25
        Total Customer Deposits             20,446    4.61   18,745    4.05
      Other Time Deposits                    3,627    5.77    3,998    5.69
      Federal Funds Borrowed                 2,261    5.95    5,270    5.50
      Short-Term Bank Notes                     --      --    1,076    5.68
      Other Short-Term Borrowings            2,983    5.03    2,959    5.10
      Long-Term Debt                         5,055    5.67    2,072    6.52
     Total Interest-Bearing Liabilities     34,372    5.01   34,120    4.76
     Demand Deposits                         4,237      --    3,858      --
     Other Liabilities                       1,820      --    1,445      --
     Total Liabilities                      40,429      --   39,423      --
     Shareholders' Equity                    5,068      --    4,284      --
     Total Liabilities and
       Shareholders' Equity                $45,497      --   43,707      --
     Net Interest Income Margin on
       a Taxable Equivalent Basis               --    3.97       --    3.82
     Net Interest Rate Spread                   --    3.05       --    3.06
     Interest-Bearing Liabilities
       to Interest-Earning Assets               --   81.57       --   84.02
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Analysis of Risk-Based Capital
     (unaudited) ($ in millions)
                                                  Quarter Ended
                                  Mar. 31  Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                    2001     2000     2000      2000     2000
     Tier I Capital:
     Shareholders'
      Equity and Other             $5,574    5,263    4,809    4,697    4,353
      Less: Goodwill and Certain
       Other Intangibles             (677)    (625)    (528)    (538)    (539)
      Adj: Unrealized (Gains)
       Losses                         (50)     (26)     156      263      298
     Total Tier I Capital           4,847    4,612    4,437    4,422    4,112
     Total Risk-Based
      Capital:
     Tier I Capital                 4,847    4,612    4,437    4,422    4,112
     Qualifying Reserve
      for Credit Losses               396      383      384      383      373
     Qualifying Subordinated Notes    249      249      249      249      248
     Total Risk-Based Capital      $5,492    5,244    5,070    5,054    4,733
     Net Risk-Weighted
      Assets                      $37,200   36,299   34,459   35,012   35,387
     Ratios:
     Average Shareholders'
      Equity to Average Assets      11.14%   10.24%    9.82%    9.35%    9.80%
     Risk-Based Ratios (a):
      Tier I                        13.03%   12.71%   12.88%   12.63%   11.62%
      Total Risk-Based Capital      14.76%   14.45%   14.71%   14.43%   13.38%
     Leverage Ratio                 10.65%   10.48%    9.99%   10.06%    9.52%
 
     (a) March 31, 2001 risk-based capital ratios are estimated.
 
 
     Intangibles
     (unaudited) ($000's)             As of and for the Quarter Ended
                                 Mar. 31   Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                   2001     2000      2000     2000     2000
 
     Intangibles                 $676,954  630,805  527,836  537,843  538,545
     Intangibles Amortization     $13,272   10,881   10,351   10,296    9,831
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Summary of Credit Loss Experience
     (unaudited) ($000's)
                                                  Quarter Ended
                                 Mar. 31   Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                   2001     2000      2000     2000     2000
     Reserve for Credit Losses,
      Beginning of Period        $383,495  383,923  382,524  373,337  366,640
     Losses Charged Off:
     Construction and
       Commercial Loans           (12,719) (13,443)  (5,038)  (8,424)  (3,634)
     Mortgage Loans                  (900)    (347)    (666)    (295)    (504)
     Consumer Loans               (16,664) (15,949) (12,643)  (8,349) (13,200)
     Leases                       (11,752)  (9,440)  (8,677)  (6,633)  (8,161)
      Total Losses                (42,035) (39,179) (27,024) (23,701) (25,499)
     Recoveries of Losses
      Previously Charged Off:
     Construction and
       Commercial Loans             1,818    3,151    3,185    1,281    2,287
     Mortgage Loans                     2      130       21     (164)     227
     Consumer Loans                 7,186    5,942    4,159    3,564    5,449
     Leases                         2,166    2,862    1,425    1,809    2,656
      Total
       Recoveries                  11,172   12,085    8,790    6,490   10,619
     Net Losses Charged Off:
     Construction and
       Commercial Loans           (10,901) (10,292)  (1,853)  (7,143)  (1,347)
     Mortgage Loans                  (898)    (217)    (645)    (459)    (277)
     Consumer Loans                (9,478) (10,007)  (8,484)  (4,785)  (7,751)
     Leases                        (9,586)  (6,578)  (7,252)  (4,824)  (5,505)
      Total
       Net Losses                 (30,863) (27,094) (18,234) (17,211) (14,880)
     Acquired & Other              12,771    3,555    1,398       59      225
     Operating Provision           30,290   23,111   18,235   26,339   21,352
     Reserve for Credit Losses,
      End of Period              $395,693  383,495  383,923  382,524  373,337
     Loans and Leases
      Outstanding
      ($ in millions)             $26,767   25,952   25,862   26,079   25,411
     Average Loans & Leases
      Outstanding
      ($ in millions) (a)         $26,443   26,194   26,566   25,737   25,250
     Reserve as a Percent
      of Loans & Leases
      Outstanding                    1.48     1.48     1.48     1.47     1.47
     Net Charge-Offs as a
      Percent
      of Average Loans &
      Leases Outstanding             0.47     0.41     0.27     0.27     0.24
 
     (a) Excludes average loans held for sale.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Underperforming Assets
     (unaudited) ($000's)
                                  Mar. 31  Dec. 31  Sep. 30  Jun. 30  Mar. 31
                                   2001      2000     2000     2000     2000
 
     Nonaccrual Loans and Leases  $97,190   90,245   71,514   66,634   71,134
     Other Real Estate Owned        8,353    9,742   10,627   12,564   10,798
     Total Nonperforming Assets   105,543   99,987   82,141   79,198   81,932
     Ninety Days Past Due Loans
      and Leases                   84,815   87,088   85,981   88,328   78,913
     Total Underperforming
      Assets                     $190,358  187,075  168,122  167,526  160,845
     Nonperforming Assets as a
      Percent of Loans, Leases and
      Other Real Estate Owned        0.39     0.39     0.32     0.30     0.32
     Underperforming Assets as a
      Percent of Loans, Leases and
      Other Real Estate Owned        0.71     0.72     0.65     0.64     0.63
 
 

SOURCE Fifth Third Bancorp
    CINCINNATI, April 16 /PRNewswire/ -- Fifth Third Bancorp's (Nasdaq: FITB)
 net income was $244,304,000 for the first quarter of 2001, up 18 percent over
 $206,369,000 for the same quarter last year.  Earnings per diluted share were
 $.51 for the first quarter, a 16 percent increase compared to $.44 per share
 in the first quarter of 2000.  Return on average assets (ROA) was
 2.18 percent, up from 1.90 percent in the first quarter of 2000.  Return on
 average equity (ROE) was 19.6 percent, improved from 19.4 percent for the same
 period in 2000.  Fifth Third achieved this high level of ROE performance with
 a strong capital base, as equity to assets exceeded 11 percent this quarter.
 Fifth Third's efficiency ratio improved to 41.9 percent compared to
 43.8 percent in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991117/FITBLOGO )
     "We are pleased to start the year with such strong results," stated
 George A. Schaefer, Jr., President and CEO.  "With a diversified business mix
 and the financial flexibility afforded by the recognized strength of our
 balance sheet, Fifth Third was well positioned to deliver a solid quarter
 highlighted by continued strong revenue growth across all of our businesses.
 We continue to see success in expanding our Retail and Commercial customer
 relationships and our fee businesses are performing very well.   The resulting
 revenue momentum provides the flexibility to be proactive on credit quality
 through more aggressive charge-offs."
     Schaefer continued, "I'd also like to welcome our new shareholders,
 employees and customers from the Old Kent merger, which occurred on April 2.
 We have been working closely with the Old Kent team since November and are
 well on our way to achieving the financial objectives of the combined company.
 The Old Kent merger added tremendous market opportunity and a great talent
 base for sustaining the quality earnings growth that our shareholders expect."
     "Our success this quarter certainly makes us optimistic about the
 remainder of 2001.  Although we are mindful of the challenges that the
 external environment is causing for all strong companies, Fifth Third has
 considerable flexibility to sustain quality earnings growth.  With the best-
 capitalized balance sheet in the industry, net interest margin expansion,
 solid sales results, market share upside throughout our footprint and expense
 flexibility in the Old Kent integration, we believe that we have built a good
 foundation to sustain our track record."
 
     Fee Revenue Advances 20 Percent - Better Than Expected
     Fifth Third's successful sales execution and continued focus on its fee-
 based businesses resulted in a 20 percent increase in non-interest income,
 excluding securities gains, over first quarter 2000.  Data processing again
 led the growth with a revenue increase of 31 percent, driven by double-digit
 revenue increases in both merchant processing and electronic funds transfer
 (EFT).  A steady pipeline of new customers, the high-speed growth and
 increased usage of debit cards and the popularity of our low cost e-commerce
 platform sustained better than 30 percent revenue growth for the fifth
 consecutive quarter.  Fifth Third expects to process approximately six billion
 ATM, point-of-sale and e-commerce transactions in 2001 for nearly 87,000
 retail locations and financial institutions worldwide.  Fifth Third reached an
 agreement in February 2001 to acquire 49 percent of Universal Companies, a
 privately-held, fully-integrated payment and e-commerce processor,
 headquartered in Milwaukee, Wisconsin.  The investment gives Fifth Third an
 increased presence in the smaller merchant market segment.
     Successful sales of Retail and Commercial deposit services and Corporate
 Treasury Management products fueled increases in total service charges on
 deposits of 18 percent for the quarter. Retail deposit service charges
 increased 19 percent year-over-year, driven by the success of sales campaigns
 in our banking centers and direct marketing programs in generating new account
 relationships.  Similarly, recent Commercial deposit sales campaigns helped
 fuel an increase of 17 percent in Commercial deposit service charges.
     Investment Advisory revenue returned to double-digit growth with a solid
 10 percent advance over the same quarter of last year.  Personal Trust
 revenues increased eight percent over first quarter last year in a difficult
 market and brokerage fees increased 21 percent on the strength of a more
 productive sales force and increased market activity.  Revenue from foundation
 and endowment services and custody services remains strong with double-digit
 growth rates across the board.  With the April 2, 2001 acquisition of Old
 Kent, Fifth Third Investment Advisors has approximately $173 billion in assets
 under care and $33 billion in assets under management, which includes $11.7
 billion in its proprietary funds, adding to our strong asset management
 platform.
     Other service charges and fees totaled $109.6 million, an increase of
 21 percent over last year's first quarter.  This increase is primarily
 attributable to increases in mortgage loan servicing fees, a 36 percent
 increase in Commercial banking fees and advances in credit card fees and loan
 and lease fees.  The securities gains resulted primarily from the first
 quarter restructuring of the acquired Capital Holdings' investment portfolio.
 
     Solid Deposit and Loan Growth; Improved Net Interest Margin
     Fifth Third continued its emphasis on attracting new deposit customers.
 In addition to strong fee income growth from providing services to these
 customers, the efforts paid off with 16 percent year-over-year growth in
 transaction account deposit balances.  The continued benefits of Fifth Third's
 successful Totally Free Checking and Platinum One sales campaigns are evident
 through a 20 percent increase in consumer checking account balances over the
 prior year.  On a sequential basis, average interest checking, savings and
 money market, and demand deposit balances increased five percent from last
 quarter, overcoming the effects of typical seasonal declines.  Similar success
 was exhibited in the 12 percent year-over-year increase in average Commercial
 deposits.  Our March 2001 Capital Holdings acquisition added approximately
 $150 million in interest checking, $122 million in savings and money market,
 and $63 million in demand deposit account balances; however, given that the
 acquisition occurred late in the quarter, the impact on average balances was
 much less significant.
     During the quarter, loan demand across all product lines remained steady.
 Commercial loan and lease balances grew 18 percent overall versus the first
 quarter of 2000.  This growth was achieved while also adding nearly
 $500 million in outstandings to Fifth Third's asset-backed commercial paper
 program, Fountain Square Funding Corporation.  Quarter-end Commercial loan and
 lease balances were increased by approximately $670 million upon the
 acquisition of Capital Holdings in March 2001, approximately $425 million of
 which were Commercial mortgages.  Excluding the effect of these Capital
 Holdings loans, Commercial loan and lease balances increased 12 percent
 compared to March 31, 2000.  Direct installment loan balances increased
 19 percent, compared to the same period last year, on originations of $698
 million during the quarter compared to $594 million in the 2000 first quarter
 and $606 million last quarter.
     Residential mortgage originations this quarter totaled $1.0 billion, up
 from last quarter's $890 million and from $631 million in the same quarter
 last year.  During the first quarter of 2001, Fifth Third securitized
 $583 million of mortgage loans, with $356 million retained in the investment
 securities portfolio and the remainder sold.  As these transactions occurred
 late in the quarter, only period-end balances are affected.  While Consumer
 lease balances increased four percent over December 31, 2000, comparisons to
 the 2000 first quarter are affected by the sale with servicing retained of
 $958 million in balances during September 2000.  Fifth Third's total loan
 servicing portfolio increased to $46.0 billion, with $18.3 billion of loans
 serviced for other investors, compared to $41.1 billion, with $15.2 billion
 serviced for others, at the end of the same quarter last year.
     Compared to the first quarter of 2000, net interest income on a fully-
 taxable equivalent basis increased seven percent due to a four percent growth
 in average earning assets and a 15 basis point (bp) increase in net interest
 margin to 3.97 percent. The positive effect of a 24 bp improvement in the
 yield on interest-earning assets was offset by a 25 bp increase in funding
 costs due to the repricing of borrowed funds and higher year-over-year deposit
 rates on existing accounts.  On a sequential quarter basis, net interest
 margin improved by 17 bp fueled primarily by a 40 bp decrease in funding cost
 attributable to a lower interest rate environment.
 
     Controlled Credit Quality; Low Percentage of Nonperforming Assets
     Nonperforming assets (NPAs) were unchanged from the last quarter at 39 bp
 of total loans and leases and other real estate owned at March 31, 2001,
 compared to 32 bp in the first quarter of 2000.  Fifth Third's ratio of NPAs
 to total loans continues to be one of the lowest in the industry, compared to
 recent industry averages for the top 50 banks of near 80 bp.  Underperforming
 assets (UPAs) were 71 bp of total loans and leases and other real estate owned
 at March 31, 2001, compared to 63 bp in the first quarter of 2000 and 72 bp
 last quarter.  As of March 31, 2001, NPAs totaled $105.5 million, an increase
 of $5.6 million over last quarter and $23.6 million over the end of the first
 quarter of 2000.  Residential mortgages in excess of 90 days past due with
 minimal loss exposure comprised $38.4 million of the UPAs at March 31, 2001,
 $35.0 million at December 31, 2000 and $46.8 million at March 31, 2000.
     The first quarter provision for loan losses totaled $30.3 million, a
 42 percent increase over the $21.4 million in last year's first quarter and
 31 percent over last quarter's $23.1 million. Net charge-offs for the quarter
 were $30.9 million, compared to $14.9 million in the first quarter of 2000 and
 $27.1 million last quarter.  As a percentage of total average loans and
 leases, first quarter net charge-offs were 47 bp, compared to 24 bp in 2000's
 first quarter and 41 bp last quarter.
     Strong fee revenue growth, expanding net interest margin, more favorable
 interest rates and a strong balance sheet give Fifth Third considerable
 flexibility to address credit quality.
 
     Sustained Expense Control
     Operating expenses increased seven percent compared to the first quarter
 of 2000, due to a three percent increase in salaries, incentives and employee
 benefits and a 12 percent increase in all other expenses.  On a sequential
 quarter basis, operating expenses increased by eight percent, as salaries,
 incentives and employee benefits increased nine percent and all other expenses
 increased six percent.  The sequential increase in operating expenses results
 largely from incremental expenses totaling approximately $10 million
 associated with the acquisitions of Ottawa Financial Corporation, Maxus
 Investment Group and Capital Holdings in December 2000, January 2001 and
 March 2001, respectively.
     The sequential increase in full-time equivalent positions was primarily
 due to the addition of approximately 80 employees in the Maxus and Capital
 Holdings acquisitions, along with the increase in employees in preparation for
 the integration of Old Kent.
 
     Conference Call
     Fifth Third will host a conference call to discuss these first quarter
 2001 financial results at 9 a.m. (Eastern Daylight Time) on April 16, 2001.
 Investors, analysts and other interested parties may dial into the conference
 call at 800-447-0521 for domestic access and 847-413-3238 for international
 access.  A replay of the conference call will be available until April 23,
 2001 by dialing 888-843-8996 for domestic access and 630-652-3044 for
 international access, (passcode: 3857919).
 
     Corporate Profile
     Fifth Third Bancorp is a diversified financial services company
 headquartered in Cincinnati, Ohio. Following the April 2, 2001 acquisition of
 Old Kent Financial Corporation, the Company has over $70 billion in assets,
 operates 17 affiliates with 974 full-service Banking Centers, including
 147 Bank Mart(R) locations open seven days a week inside select grocery stores
 and 1,905 Jeanie(R) ATMs in Ohio, Kentucky, Indiana, Florida, Arizona,
 Michigan and Illinois. A leader in e-commerce, Fifth Third was named #1
 e-business innovator by PC Week. The financial strength of Fifth Third's
 affiliate banks continues to be recognized by rating agencies with deposit
 ratings of AA- and Aa2 from Standard & Poor's and Moody's, respectively.
 Additionally, Fifth Third Bancorp continues to maintain the highest short-term
 ratings available at A-1+ and Prime-1, and has been recognized by Moody's with
 one of the highest senior debt ratings for any U.S. bank holding company of
 Aa3. Fifth Third operates four main businesses: Retail, Commercial, Investment
 Advisors and Midwest Payment Systems, the Bank's data processing subsidiary.
 Investor information and press releases can be viewed at http://www.53.com ;
 press releases are also available by fax at no charge by calling 800-758-5804,
 identification number 281775. The Company's common stock is traded in the
 over-the-counter market through The Nasdaq National Market under the symbol
 "FITB."
     This release contains forward-looking statements relating to present or
 future trends or factors affecting the banking industry and specifically the
 operations, markets and products of Fifth Third. Actual results could differ
 materially from those projected. Fifth Third undertakes no obligation to
 release revisions to these forward-looking statements or reflect events or
 circumstances after the date of this release.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Financial Highlights
     (unaudited)
                                                Three Months Ended
                                                     March 31,         Percent
                                                 2001        2000      Change
     Earnings ($000's except per share):
       Net Interest Income (FTE)               $412,735    385,488       7.1
       Net Income                               244,304    206,369      18.4
       Per Share (a)
         Earnings                                  0.52       0.45      15.6
         Diluted Earnings                          0.51       0.44      15.9
     Key Ratios (percent):
       Return on Average Assets                    2.18       1.90      14.7
       Return on Average Equity                    19.6       19.4       1.0
       Net Interest Margin                         3.97       3.82       3.9
       Efficiency Ratio                            41.9       43.8      (4.3)
       Average Shareholders' Equity to
         Average Assets                           11.14       9.80      13.7
       Risk-Based Capital Ratios (b):
         Tier I                                   13.03      11.62      12.1
         Total                                    14.76      13.38      10.3
     Common Stock Data (a):
       Cash Dividends Declared Per Share          $0.20       0.16      25.0
       Book Value Per Share                       11.03       8.94      23.4
       Market Price Per Share
         High                                     61.31      48.50      26.4
         Low                                      45.69      29.33      55.8
         End of Period                            53.44      42.00      27.2
       Price/Earnings Ratio (c)                   28.13      28.13        --
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Financial Highlights, continued
     (unaudited)
                                                          March 31,     Percent
                                                        2001     2000    Change
     Balance Sheet Data ($ in millions):
       Assets                                          $47,015  44,389     5.9
       Loans and Leases                                 26,767  25,411     5.3
       Interest-Earning Assets                          43,610  41,300     5.6
       Deposits                                         28,724  28,986    (0.9)
       Shareholders' Equity                              5,201   4,152    25.3
 
     Book Value and Market Price
      Range Per Share (a)
                                                                 Market Price
                                 Book Value Per Share          Range Per Share
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31     Low       High
 
     1996                 $6.05    $6.31    $6.55    $7.02    $12.89     $22.00
     1997                  6.44     6.74     7.12     7.52     18.00      37.11
     1998                  7.68     8.06     8.24     8.38     31.67      49.42
     1999                  8.56     8.45     8.44     8.80     38.58      50.29
     2000                  8.94     9.30     9.61    10.50     29.33      60.88
     2001                 11.03       --       --       --     45.69      61.31
 
     Earnings Per Share (a)
                                          Quarter Ended
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31  Year-to-Date
 
     1996                 $0.25    $0.24    $0.22    $0.28     $0.99
     1997                  0.28     0.29     0.31     0.31      1.18
     1998                  0.32     0.12     0.38     0.39      1.21
     1999                  0.39     0.40     0.42     0.25      1.46
     2000                  0.45     0.41     0.49     0.51      1.86
     2001                  0.52       --       --       --      0.52
 
     Earnings Per Diluted Share (a)
                                         Quarter Ended
                         Mar. 31  Jun. 30  Sep. 30  Dec. 31  Year-to-Date
 
     1996                 $0.24    $0.23    $0.22    $0.28     $0.97
     1997                  0.27     0.28     0.31     0.31      1.17
     1998                  0.31     0.12     0.37     0.39      1.19
     1999                  0.38     0.39     0.42     0.25      1.43
     2000                  0.44     0.41     0.48     0.50      1.83
     2001                  0.51       --       --       --      0.51
 
     (a)  Per share amounts have been adjusted for the three-for-two stock
          split effected in the form of a stock dividend paid July 14, 2000.
     (b)  March 31, 2001 ratios are estimated.
     (c)  Based on the most recent twelve-month earnings per diluted share
          and end of period stock prices.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Statements of Income
     (unaudited) ($000's)
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
     INTEREST INCOME
     Interest and Fees on Loans and Leases           $554,029          507,287
     Interest on Securities
       Taxable                                        252,355          247,465
       Exempt from Income Taxes                         9,007            9,373
     Total Interest on Securities                     261,362          256,838
     Interest on Other Short-Term
      Investments                                       2,257            3,055
     Total Interest Income                            817,648          767,180
     INTEREST EXPENSE
     Interest on Deposits
       Interest Checking                               39,036           31,546
       Savings and Money Market                        53,664           42,779
       Time Deposits                                  191,191          171,018
     Total Interest on Deposits                       283,891          245,343
     Interest on Federal Funds Borrowed                33,145           72,072
     Interest on Short-Term Bank Notes                     --           15,207
     Interest on Other Short-Term Borrowings           37,005           37,538
     Interest on Long-Term Debt and Notes              70,672           33,576
     Total Interest Expense                           424,713          403,736
     NET INTEREST INCOME                              392,935          363,444
     Provision for Credit Losses                       30,290           21,352
     NET INTEREST INCOME AFTER PROVISION
      FOR CREDIT LOSSES                               362,645          342,092
     OTHER OPERATING INCOME
     Data Processing Income                            66,745           50,920
     Service Charges on Deposits                       56,168           47,655
     Investment Advisory Income                        55,735           50,763
     Other Service Charges and Fees                   109,608           90,303
     Securities Gains                                   4,236              522
     Total Other Operating Income                     292,492          240,163
     OPERATING EXPENSES
     Salaries, Wages & Incentives                     118,666          109,929
     Employee Benefits                                 20,397           25,681
     Equipment Expenses                                13,042           12,685
     Net Occupancy Expenses                            21,193           19,143
     Other Operating Expenses                         120,360          106,462
     Total Operating Expenses                         293,658          273,900
     INCOME BEFORE INCOME TAXES                       361,479          308,355
     Applicable Income Taxes                          117,175          101,986
     NET INCOME                                      $244,304          206,369
     Average Shares (000's): (a)
       Outstanding                                    467,532          463,780
       Diluted                                        482,023          474,623
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Statements of Changes in Shareholders' Equity
     (unaudited) ($000's)
                                                        Three Months Ended
                                                             March 31,
                                                       2001             2000
 
     BALANCE AT DECEMBER 31                        $4,891,269        4,077,031
     Net Income                                       244,304          206,369
     Nonowner Changes in Equity, Net of Tax:
     Change in Unrealized Gains (Losses) on
      Securities Available for Sale                    23,545          (73,671)
     Net Income and Nonowner Changes in
      Equity                                          267,849          132,698
     Cash Dividends Declared (a):
       Fifth Third Bancorp (2001 - $.20 per
        share and 2000 - $.16 per share)              (94,377)         (74,323)
     Stock Options Exercised Including
      Treasury Shares Issued                           13,534           13,903
     Stock Issued in Acquisitions and Other           122,678            2,742
     BALANCE AT MARCH 31                           $5,200,953        4,152,051
 
     (a)  Average shares and per share amounts have been adjusted for the
          three-for-two stock split effected in the form of a stock dividend
          paid on July 14, 2000.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Condensed Consolidated Quarterly Statements of Income
     (unaudited) ($000's)
                                                  Quarter Ended
                                  Mar. 31   Dec. 31 Sept. 30  Jun. 30  Mar. 31
                                    2001     2000     2000     2000     2000
 
     Interest Income              $817,648  836,015  842,260  817,916  767,180
     Taxable
       Equivalent
       Adjustment                   19,800   24,550   23,691   22,544   22,044
     Taxable
       Equivalent
       Interest Income             837,448  860,565  865,951  840,460  789,224
     Interest Expense              424,713  464,857  471,266  453,196  403,736
     Net Interest Income           412,735  395,708  394,685  387,264  385,488
     Provision for
      Credit Losses                 30,290   23,111   18,235   26,339   21,352
     Net Interest Income
      After Provision for
      Credit Losses                382,445  372,597  376,450  360,925  364,136
     Other Operating
       Income                      292,492  270,104  254,378  248,061  240,163
     Operating Expenses            293,658  272,454  269,216  269,703  273,900
     Merger-Related and
       Special Charges                  --       --       --   33,548       --
     Income Before
       Income Taxes                381,279  370,247  361,612  305,735  330,399
     Applicable
       Income Taxes                117,175  109,295  109,895   91,103  101,986
     Taxable
       Equivalent
       Adjustment                   19,800   24,550   23,691   22,544   22,044
     Net Income                   $244,304  236,402  228,026  192,088  206,369
 
     Per Share:
      Earnings                       $0.52     0.51     0.49     0.41     0.45
      Diluted Operating Earnings      0.51     0.50     0.48     0.46     0.44
      Diluted Earnings                0.51     0.50     0.48     0.41     0.44
      Cash Dividends Declared         0.20     0.18     0.18     0.18     0.16
 
     Average Shares (000's):
      Outstanding                  467,532  462,789  464,086  464,740  463,780
      Diluted                      482,023  476,748  476,125  476,312  474,623
 
     Net Interest
       Margin (percent)               3.97     3.80     3.74     3.74     3.82
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Other Operating Income and Operating Expenses
     (unaudited) ($000's)
                                                  Quarter Ended
                                  Mar. 31   Dec. 31 Sept. 30  Jun. 30  Mar. 31
 
                                    2001     2000     2000     2000     2000
     OTHER OPERATING
      INCOME:
     Data Processing
      Income                       $66,745   71,987   62,037   56,695   50,920
     Service Charges
      on Deposits                   56,168   56,309   57,633   55,343   47,655
     Investment Advisory
      Income                        55,735   50,969   49,037   49,471   50,763
     Other Service
      Charges and Fees             109,608   88,342   85,255   86,712   90,303
       Subtotal                    288,256  267,607  253,962  248,221  239,641
     Securities
      Gains (Losses)                 4,236    2,497      416     (160)     522
     TOTAL OTHER
      OPERATING INCOME            $292,492  270,104  254,378  248,061  240,163
     OPERATING EXPENSES:
     Salaries, Incentives &
      Employee Benefits           $139,063  127,277  126,857  132,630  135,610
     Equipment
      Expenses                      13,042   12,405   12,409   12,237   12,685
     Net Occupancy
      Expenses                      21,193   19,836   18,914   19,448   19,143
     Other Operating
      Expenses                     120,360  112,936  111,036  105,388  106,462
     Merger-Related and Special
      Charges                           --       --       --   33,548       --
     TOTAL OPERATING
      EXPENSES                    $293,658  272,454  269,216  303,251  273,900
     Employees (Full-time
      Equivalents)                  11,851   11,611   11,124   11,451   11,599
     Banking Centers                   673      668      639      639      644
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Balance Sheets
     (unaudited) ($ in millions)
                                                     March 31,        March 31,
                                                        2001             2000
     ASSETS
     Cash and Due from Banks                            $755               948
     Securities Available for Sale (a)                15,806            14,875
     Securities Held to Maturity (b)                      22               139
     Other Short-Term Investments                        121               353
     Loans Held for Sale                                 894               522
     Loans and Leases
       Commercial Loans                                6,957             6,624
       Construction Loans                              1,570             1,085
       Commercial Mortgage Loans                       3,424             2,507
       Commercial Lease Financing                      2,875             2,293
       Residential Mortgage Loans                      3,745             4,796
       Consumer Loans                                  6,174             5,351
       Consumer Lease Financing                        3,066             3,675
       Unearned Income                                (1,044)             (920)
       Reserve for Credit Losses                        (396)             (373)
     Total Loans and Leases                           26,371            25,038
     Bank Premises and Equipment                         540               490
     Accrued Income Receivable                           372               318
     Other Assets                                      2,134             1,706
     TOTAL ASSETS                                    $47,015            44,389
     LIABILITIES
     Deposits
       Interest Checking                              $5,753             4,894
       Savings and Money Market                        5,881             5,303
       Consumer Time Deposits                          9,461             8,696
           Total Customer Deposits                    21,095            18,893
       Other Time Deposits                             2,931             6,163
       Demand                                          4,698             3,930
     Total Deposits                                   28,724            28,986
     Federal Funds Borrowed                            3,580             5,279
     Short-Term Bank Notes                                --                15
     Other Short-Term Borrowings                       2,757             2,604
     Accrued Taxes, Interest and Expenses              1,482               851
     Other Liabilities                                   375               486
     Long-Term Debt                                    4,723             1,843
     Guaranteed Preferred Beneficial
      Interests in
       Convertible Subordinated Debentures               173               173
     TOTAL LIABILITIES                                41,814            40,237
     TOTAL SHAREHOLDERS' EQUITY (c)                    5,201             4,152
     TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                          $47,015            44,389
 
     (a) Amortized cost:  March 31, 2001 - $15,729 and March 31,
         2000 - $15,340.
     (b) Market values:   March 31, 2001 - $22 and March 31, 2000 - $139.
     (c) Stated value $2.22 per share; authorized 1,300,000,000; outstanding
         March 31, 2001 - 471,565,129 and March 31, 2000 - authorized
         650,000,000; 464,519,307 outstanding.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Loan and Lease Portfolios
     (unaudited) ($ in millions)
                                                      Quarter Ended
                                     Mar. 31  Dec. 31 Sept. 30 Jun. 30  Mar. 31
                                      2001     2000     2000     2000     2000
     On Balance Sheet:
     Commercial Loans & Leases
      Commercial (a)                 $6,917    6,603    6,540    6,665   6,580
      Mortgage                        3,424    2,986    2,878    2,862   2,507
      Construction                    1,570    1,484    1,220    1,144   1,085
      Leases                          2,235    2,165    2,081    1,951   1,867
       Subtotal                      14,146   13,238   12,719   12,622  12,039
     Retail Loans & Leases
      Installment                     5,842    5,716    5,475    5,281   5,057
      Mortgage                        3,745    4,034    4,850    4,562   4,796
      Credit Card                       333      362      324      312     293
      Leases                          2,701    2,602    2,494    3,302   3,226
       Subtotal                      12,621   12,714   13,143   13,457  13,372
        Total On Balance Sheet       26,767   25,952   25,862   26,079  25,411
 
     Loans Held for Sale:               894      553      437      350     522
 
     Off Balance Sheet (b):
      Residential Mortgage           13,430   13,020   11,592   12,770  11,552
      Installment                         2        5       12       18      30
      Consumer leases                   875      916      958       --      --
      Commercial (a)                  3,993    4,091    3,765    3,701   3,616
       Total Off Balance Sheet       18,300   18,032   16,327   16,489  15,198
        Total Serviced              $45,961   44,537   42,626   42,918  41,131
 
     (a)  The Bancorp sells certain commercial loans to an asset-backed
          commercial paper program.  The outstanding balance of these loans was
          $1.9 billion, $1.9 billion, $1.5 billion, $1.4 billion, and $1.4
          billion at the end of 2001's first quarter and 2000's fourth, third,
          second and first  quarters, respectively.
     (b)  Includes loans which have been securitized or sold for which the
          Bancorp retains the servicing.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Consolidated Average Balance Sheets, Yields and Rates
     Taxable Equivalent Basis
     (unaudited) ($ in millions)
                                                 Three Months Ended
                                                      March 31,
                                                2001             2000
                                                    Average           Average
                                                     Yield             Yield
                                           Average   /Rate   Average   /Rate
                                           Balance    (%)    Balance    (%)
     Assets:
     Interest-Earning Assets
      Loans and Leases                     $27,038    8.54   25,700    8.20
      Securities
       Taxable                              14,431    7.16   13,981    7.12
       Tax Exempt                              671    8.26      930    7.67
     Total Interest-Earning Assets          42,140    8.06   40,611    7.82
     Cash and Due from Banks                   805      --    1,006      --
     Other Assets                            2,938      --    2,456      --
     Reserve for Credit Losses                (386)     --     (366)     --
     Total Assets                          $45,497      --   43,707      --
 
     Liabilities:
     Interest-Bearing Liabilities
      Interest Checking                     $5,415    2.92    4,800    2.64
      Savings and Money Market               5,623    3.87    5,182    3.32
      Consumer Time Deposits                 9,408    6.02    8,763    5.25
        Total Customer Deposits             20,446    4.61   18,745    4.05
      Other Time Deposits                    3,627    5.77    3,998    5.69
      Federal Funds Borrowed                 2,261    5.95    5,270    5.50
      Short-Term Bank Notes                     --      --    1,076    5.68
      Other Short-Term Borrowings            2,983    5.03    2,959    5.10
      Long-Term Debt                         5,055    5.67    2,072    6.52
     Total Interest-Bearing Liabilities     34,372    5.01   34,120    4.76
     Demand Deposits                         4,237      --    3,858      --
     Other Liabilities                       1,820      --    1,445      --
     Total Liabilities                      40,429      --   39,423      --
     Shareholders' Equity                    5,068      --    4,284      --
     Total Liabilities and
       Shareholders' Equity                $45,497      --   43,707      --
     Net Interest Income Margin on
       a Taxable Equivalent Basis               --    3.97       --    3.82
     Net Interest Rate Spread                   --    3.05       --    3.06
     Interest-Bearing Liabilities
       to Interest-Earning Assets               --   81.57       --   84.02
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Analysis of Risk-Based Capital
     (unaudited) ($ in millions)
                                                  Quarter Ended
                                  Mar. 31  Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                    2001     2000     2000      2000     2000
     Tier I Capital:
     Shareholders'
      Equity and Other             $5,574    5,263    4,809    4,697    4,353
      Less: Goodwill and Certain
       Other Intangibles             (677)    (625)    (528)    (538)    (539)
      Adj: Unrealized (Gains)
       Losses                         (50)     (26)     156      263      298
     Total Tier I Capital           4,847    4,612    4,437    4,422    4,112
     Total Risk-Based
      Capital:
     Tier I Capital                 4,847    4,612    4,437    4,422    4,112
     Qualifying Reserve
      for Credit Losses               396      383      384      383      373
     Qualifying Subordinated Notes    249      249      249      249      248
     Total Risk-Based Capital      $5,492    5,244    5,070    5,054    4,733
     Net Risk-Weighted
      Assets                      $37,200   36,299   34,459   35,012   35,387
     Ratios:
     Average Shareholders'
      Equity to Average Assets      11.14%   10.24%    9.82%    9.35%    9.80%
     Risk-Based Ratios (a):
      Tier I                        13.03%   12.71%   12.88%   12.63%   11.62%
      Total Risk-Based Capital      14.76%   14.45%   14.71%   14.43%   13.38%
     Leverage Ratio                 10.65%   10.48%    9.99%   10.06%    9.52%
 
     (a) March 31, 2001 risk-based capital ratios are estimated.
 
 
     Intangibles
     (unaudited) ($000's)             As of and for the Quarter Ended
                                 Mar. 31   Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                   2001     2000      2000     2000     2000
 
     Intangibles                 $676,954  630,805  527,836  537,843  538,545
     Intangibles Amortization     $13,272   10,881   10,351   10,296    9,831
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Summary of Credit Loss Experience
     (unaudited) ($000's)
                                                  Quarter Ended
                                 Mar. 31   Dec. 31  Sept. 30  Jun. 30  Mar. 31
                                   2001     2000      2000     2000     2000
     Reserve for Credit Losses,
      Beginning of Period        $383,495  383,923  382,524  373,337  366,640
     Losses Charged Off:
     Construction and
       Commercial Loans           (12,719) (13,443)  (5,038)  (8,424)  (3,634)
     Mortgage Loans                  (900)    (347)    (666)    (295)    (504)
     Consumer Loans               (16,664) (15,949) (12,643)  (8,349) (13,200)
     Leases                       (11,752)  (9,440)  (8,677)  (6,633)  (8,161)
      Total Losses                (42,035) (39,179) (27,024) (23,701) (25,499)
     Recoveries of Losses
      Previously Charged Off:
     Construction and
       Commercial Loans             1,818    3,151    3,185    1,281    2,287
     Mortgage Loans                     2      130       21     (164)     227
     Consumer Loans                 7,186    5,942    4,159    3,564    5,449
     Leases                         2,166    2,862    1,425    1,809    2,656
      Total
       Recoveries                  11,172   12,085    8,790    6,490   10,619
     Net Losses Charged Off:
     Construction and
       Commercial Loans           (10,901) (10,292)  (1,853)  (7,143)  (1,347)
     Mortgage Loans                  (898)    (217)    (645)    (459)    (277)
     Consumer Loans                (9,478) (10,007)  (8,484)  (4,785)  (7,751)
     Leases                        (9,586)  (6,578)  (7,252)  (4,824)  (5,505)
      Total
       Net Losses                 (30,863) (27,094) (18,234) (17,211) (14,880)
     Acquired & Other              12,771    3,555    1,398       59      225
     Operating Provision           30,290   23,111   18,235   26,339   21,352
     Reserve for Credit Losses,
      End of Period              $395,693  383,495  383,923  382,524  373,337
     Loans and Leases
      Outstanding
      ($ in millions)             $26,767   25,952   25,862   26,079   25,411
     Average Loans & Leases
      Outstanding
      ($ in millions) (a)         $26,443   26,194   26,566   25,737   25,250
     Reserve as a Percent
      of Loans & Leases
      Outstanding                    1.48     1.48     1.48     1.47     1.47
     Net Charge-Offs as a
      Percent
      of Average Loans &
      Leases Outstanding             0.47     0.41     0.27     0.27     0.24
 
     (a) Excludes average loans held for sale.
 
 
     FIFTH THIRD BANCORP AND SUBSIDIARIES
     Underperforming Assets
     (unaudited) ($000's)
                                  Mar. 31  Dec. 31  Sep. 30  Jun. 30  Mar. 31
                                   2001      2000     2000     2000     2000
 
     Nonaccrual Loans and Leases  $97,190   90,245   71,514   66,634   71,134
     Other Real Estate Owned        8,353    9,742   10,627   12,564   10,798
     Total Nonperforming Assets   105,543   99,987   82,141   79,198   81,932
     Ninety Days Past Due Loans
      and Leases                   84,815   87,088   85,981   88,328   78,913
     Total Underperforming
      Assets                     $190,358  187,075  168,122  167,526  160,845
     Nonperforming Assets as a
      Percent of Loans, Leases and
      Other Real Estate Owned        0.39     0.39     0.32     0.30     0.32
     Underperforming Assets as a
      Percent of Loans, Leases and
      Other Real Estate Owned        0.71     0.72     0.65     0.64     0.63
 
 SOURCE  Fifth Third Bancorp

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