Fifth Third Bank

From Wikipedia, the free encyclopedia
  (Redirected from Fifth-Third Bank)
Jump to: navigation, search
Fifth Third Bancorp
Type Public
Traded as NASDAQFITB
S&P 500 Component
Industry Banking
Financial services
Founded June 17, 1858
Headquarters Cincinnati, Ohio, U.S.
Number of locations 1,312 (December 2010)[1]
Key people

William Isaac, Chairman

Kevin Kabat, CEO
Revenue Increase US$ 7.218 billion (2010)[1]
Operating income Increase US$ 940 million (2012)[1]
Net income Increase US$ 753 million (2012)[1]
Total assets Increase US$ 111.007 billion (2012)[1]
Total equity Increase US$ 14.080 billion (2012)[1]
Employees 21,613 (December 2010)[1]
Website www.53.com

Fifth Third Bank (5/3 Bank) is a U.S. regional banking corporation, headquartered in Cincinnati, Ohio at Fifth Third Center and is the principal subsidiary of holding company Fifth Third Bancorp. The company operates under an Ohio charter.

The company's main areas of activity are as follows:

History[edit]

Fifth Third National Bank logo c.1922
Fifth Third Bank headquarters building in Cincinnati, Ohio
Fifth Third Bank offices at 1000 Town Center in Southfield, Michigan.
Fifth Third tower among the towers in Downtown Evansville, Indiana, including Evansville-based rival Old National Bank at left.

Fifth Third Bank's history can be traced back to June 17, 1858, when the Bank of the Ohio Valley opened in Cincinnati. The Third National Bank organized five years later, on June 23, 1863, and on April 29, 1871, the younger bank acquired the older one, beginning a 130-year history of banking acquisitions and mergers, with numerous smaller banks being absorbed and renamed.[2]

The Fifth Third name[edit]

Fifth Third's unusual name is the result of the June 1, 1908, merger of Third National Bank and Fifth National Bank, to become the Fifth Third National Bank of Cincinnati.[2] While Third National was the senior partner, the merger took place during a period when prohibitionist ideas were gaining popularity, and it is legend that "Fifth Third" was better than "Third Fifth," which could have been construed as a reference to three "fifths" of alcohol.[3] The name went through several changes over the years until March 24, 1969, when it was changed to Fifth Third Bank.[2]

New Fifth Third Bank branch in Springboro, Ohio.
Older Fifth Third location in Xenia, Ohio.

Fifth Third in the news[edit]

In January 2007, The New York Times published an article entitled Data Breach Could Affect Millions stating "Yesterday, Fifth Third Bank of Cincinnati was identified as the sponsoring bank that handles TJX’s accounts, which makes it responsible for ensuring that the retailer met the industry’s data security standards."[4] It was later found that potentially 45.7 million credit card numbers were compromised. This, from the Associated Press, "TJX says its computer systems were first breached in July 2005 by a hacker or hackers who accessed information from customer transactions dating to January 2003. TJX says it didn’t learn of the breach until about three months ago.... The filing also says, “We believe that the intruder had access to the decryption tool for the encryption software utilized by TJX.”[5]

Recent acquisitions and mergers[edit]

The Fifth Third footprint

In 1999, the company completed the acquisition of Enterprise Federal Bancorp Inc., one of the biggest thrifts in the Cincinnati area. The purchase, estimated at $96.4 million, provided Fifth Third with 11 additional branches in greater Cincinnati. Fifth Third also acquired Ashland Bankshares, Inc. and subsidiary Bank of Ashland, both based in Kentucky. The $80 million purchase gave Fifth Third four more branches, as well as $160 million in assets. Fifth Third also began to implement plans to expand further into Florida and acquired South Florida Bank Holding Corp. in June, adding another four branches to its Florida roster. Additional expansion into the Cleveland, Ohio, area came with the acquisition of Emerald Financial Corp. for $204 million. Fifth Third also acquired Cleveland-based Emerald Financial Corp. and its subsidiary, Strongsville Savings Bank.

In November 2000, Fifth Third announced the purchase of Old Kent Bank of Western Michigan. This added over 300 full-service banking centers in Indiana, Illinois and Michigan.[6]

In May 2007, Fifth Third announced the acquisition of R-G Crown Bank of Casselberry, Florida. This purchase added thirty branches in Florida and three in Georgia to Fifth Third's branch network. The transaction closed in the fourth quarter of 2007.[7]

August 16, 2007, Fifth Third announced the purchase of First Charter Bank of Charlotte, North Carolina.[8] As part of this transaction, Fifth Third entered the North Carolina market with 57 branches, and the Atlanta market with two branches.[9] The Federal Reserve Board approved the transaction for Fifth Third Bank to acquire First Charter, April 16, 2008.[10] The acquisition completed in June 2008.[11]

September 25, 2007, Fifth Third announced the acquisition of nine branch locations in Atlanta, GA, from First Horizon National Corporation.[12] First Horizon canceled the sale February 7, 2008, as the sale price suddenly became unacceptable to FHN. Then, news outlets reported that the sale was reinstated March 25, 2008.[13]

October 31, 2008, the Federal Deposit Insurance Corporation (FDIC) announced that all deposits of Florida-based Freedom Bank, which ceased operation that day, would be assumed by Fifth Third Bank.[14]

March 30, 2009, Fifth Third announced a joint venture with Advent International, in which Advent would purchase 51% of its credit card processing business, Fifth Third Processing Solutions. The new company Fifth Third Processing Solutions LLC began operation June 2009.[15]

Fifth Third was rumored to be one of the front runners alongside Huntington Bancshares to buy the National City branches in the Pittsburgh and Erie regions that the United States Department of Justice required PNC Financial Services to sell as part of PNC's 2008 acquisition of National City.[16] Had Fifth Third bought the branches, it would have greatly expanded the bank's presence in the Pittsburgh region where Fifth Third has opened a small handful of branches over the past few years as opposed to acquiring a rival bank, as well as enter the Erie market. Ultimately, PNC sold the bulk of the overlapping branches to First Niagara Bank.

October 28, 2014, Fifth Third announced plans to relocate its Michigan Regional Headquarters from Southfield to Downtown Detroit in what will be named the Fifth Third Bank Building at One Woodward. The bank will occupy approximately 62,000 sq ft (5,800 m2) of the structure and has also pledged an investment totaling $85 million to the city of Detroit to accompany the transition to its new regional headquarters.[17]

Naming rights[edit]

Fifth Third owns the naming rights to:

References[edit]

  1. ^ a b c d e f g "2010 Form 10-K, Fifth Third Bancorp". United States Securities and Exchange Commission. 
  2. ^ a b c "Fifth Third Bank History and Expansion (PDF)". Fifth Third Bank. Retrieved 2012-10-23. 
  3. ^ Adams, Cecil (2002-01-18). "The Straight Dope: What gives with Fifth Third Bank?". Chicago Reader. Retrieved 2006-09-02. 
  4. ^ Dash, Eric (19 January 2007). "Data Breach Could Affect Millions". The New York Times. Retrieved 2007-04-24. 
  5. ^ "T.J. Maxx data theft worse than first reported". NBC News. Associated Press. 29 March 2007. Retrieved 2007-04-24. 
  6. ^ "Fifth Third Bank Completes Old Kent Conversion". PR Newswire (Press release). Fifth Third Bank. 24 September 2001. Retrieved 2014-10-28. 
  7. ^ "Fifth Third Bancorp to Buy R-G Crown Bank". Reuters. 21 May 2007. Retrieved 2014-10-28. [dead link]
  8. ^ McLaughlin, Tim (16 August 2007). "Fifth Third to buy First Charter". Reuters. Retrieved 2014-10-28. 
  9. ^ Boye, Will (25 January 2008). "Fifth Third still committed to First Charter purchase". Charlotte Business Journal. Retrieved 2014-10-28. 
  10. ^ "Fed Approves Fifth Third's First Charter Buyout". Dayton Business Journal. 16 April 2008. Retrieved 2014-10-28. 
  11. ^ "Fifth Third Bank closes First Charter deal, enters North Carolina". Pittsburgh Business Times. 9 June 2008. Retrieved 2014-10-28. 
  12. ^ "Fifth Third to Expand Presence in Atlanta with Branch Purchase from First Horizon" (Press release). Fifth Third Bank. 25 September 2007. Retrieved 2014-10-28. 
  13. ^ "Fifth Third, First Horizon Agree on Sale of Atlanta-area Branches" (Press release). Fifth Third Bank. 26 March 2008. Retrieved 2014-10-28. 
  14. ^ "Fifth Third Bank Acquires All the Deposits of Freedom Bank, Bradenton, Florida" (Press release). Federal Deposit Insurance Corporation. 31 October 2008. Retrieved 2014-10-28. 
  15. ^ "Fifth Third Bancorp and Advent International Announce Fifth Third Processing Solutions Joint Venture". Fifth Third Bank. 30 March 2009. Retrieved 2014-10-28. 
  16. ^ Sabatini, Patricia (21 March 2009). "FNB won't buy National City units". Pittsburgh Post-Gazette. Retrieved 2014-10-28. 
  17. ^ Pinho, Kirk (28 October 2014). "Fifth Third Bank to move 150 employees downtown as part of $85M investment in Detroit". Crain's Detroit Business. Retrieved 2014-10-28. 

Marketing by Independent Sales Organization (ISO)/MSPs[edit]

Sponsored ISO/MSP's