Fifth Third Bancorp Announces Expected Changes to Branch Network
June 22 2015 - 7:05AM
Business Wire
Fifth Third Bancorp (Nasdaq: FITB) today announced plans to
pursue changes to its branch network as it works to improve
efficiency, competitiveness and the quality of its customers’
experience.
“Consumer demographics and our customers’ preferred channels of
banking are undergoing significant changes,” said Kevin T. Kabat,
vice chairman and chief executive officer of Fifth Third Bancorp.
“Technology continues to impact our service delivery and revenue
generation tactics and strategies. We have been very successful in
growing our market share in our footprint as the most recent FDIC
data clearly shows, and we will continue to maintain the same focus
going forward by optimizing the size and density of our branch
network.”
The Company is pursuing this plan as part of its regular review
of customer preferences and usage patterns across its network and
all distribution channels. Fifth Third currently expects to
consolidate or sell approximately 100 branches and approximately 30
other properties purchased earlier for future branch expansion.
“This plan reflects the continued progression of our work on
providing an integrated customer experience,” Kabat said. “Meeting
the evolving preferences of how our customers interact with us is
our top priority. Over the past several years, we have made
significant improvements to our mobile banking options and our
sales and staffing models, and plan to tailor our branch network in
concert with these changes. We continue to believe an optimized
branch network plays a significant role in meeting the financial
needs of our customers, and in delivering an integrated customer
experience.”
In connection with these plans, Fifth Third Bancorp expects to
incur approximately $75-85 million in non-cash impairment charges
to be recognized in the second quarter of 2015. Fifth Third also
expects to recognize approximately $6 - 10 million in other costs,
primarily related to real estate contract terminations. The Bancorp
believes that these actions will result in annualized reduction of
approximately $60 million in ongoing operating expenses and are
expected to be fully executed by mid-2016.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2015, the
Company had $140 billion in assets and operated 15 affiliates with
1,303 full-service Banking Centers, including 101 Bank Mart®
locations, most open seven days a week, inside select grocery
stores and 2,637 ATMs in Ohio, Kentucky, Indiana, Michigan,
Illinois, Florida, Tennessee, West Virginia, Pennsylvania,
Missouri, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Investment Advisors. Fifth Third also has a 22.8%
interest in Vantiv Holding, LLC. Fifth Third is among the largest
money managers in the Midwest and, as of March 31, 2015, had $308
billion in assets under care, of which it managed $27 billion for
individuals, corporations and not-for-profit organizations.
Investor information and press releases can be viewed at
www.53.com. Fifth Third's common stock is traded on the NASDAQ®
Global Select Market under the symbol "FITB."
FORWARD-LOOKING STATEMENTS
This report contains statements that we believe are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and Section 21E of the Securities Exchange Act of 1934,
as amended, and Rule 3b-6 promulgated thereunder. These statements
relate to our financial condition, results of operations, plans,
objectives, future performance or business. They usually can be
identified by the use of forward-looking language such as “will
likely result,” “may,” “are expected to,” “anticipates,”
“potential,” “estimate,” “forecast,” “projected,” “intends to,” or
may include other similar words or phrases such as “believes,”
“plans,” “trend,” “objective,” “continue,” “remain,” or similar
expressions, or future or conditional verbs such as “will,”
“would,” “should,” “could,” “might,” “can,” or similar verbs. You
should not place undue reliance on these statements, as they are
subject to risks and uncertainties, including but not limited to
the risk factors set forth in our most recent Annual Report on Form
10-K as updated from time to time by our Quarterly Reports on Form
10-Q. When considering these forward-looking statements, you should
keep in mind these risks and uncertainties, as well as any
cautionary statements we may make. Moreover, you should treat these
statements as speaking only as of the date they are made and based
only on information then actually known to us.
There are a number of important factors that could cause future
results to differ materially from historical performance and these
forward-looking statements. The estimated amounts of cash and
non-cash restructuring and impairment charges described above could
change as a result of changes in estimates, and it is possible that
the implementation of the Branch Consolidation and Sales Plan, or
changes to that plan, could result in charges not currently
contemplated. Additional factors that might cause such a difference
include, but are not limited to: (1) general economic conditions
and weakening in the economy, specifically the real estate market
for properties affected by the Branch Consolidation and Sales Plan,
are less favorable than expected; (2) difficulties in separating
the operations of any branches or other assets divested in the
Branch Consolidation and Sales Plan; (3) inability to achieve
expected benefits from the Branch Consolidation and Sales Plan
within desired timeframes, if at all; (4) loss of income from
branches or other assets divested in the Branch Consolidation and
Sales Plan; (5) effects of critical accounting policies and
judgments and the use of estimates for results of current or future
periods; (6) changes in accounting policies or procedures as may be
required by the Financial Accounting Standards Board or other
regulatory agencies; (7) problems encountered by larger or
similar financial institutions may adversely affect the banking
industry and/or Fifth Third; (8) competitive pressures among
depository institutions increase significantly; and (9) the impact
of reputational risk created by these developments on such matters
as business generation and retention, funding and liquidity.
You should refer to our periodic and current reports filed with
the Securities and Exchange Commission, or “SEC,” for further
information on other factors, which could cause actual results to
be significantly different from those expressed or implied by these
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20150622005536/en/
Fifth Third BancorpJim Eglseder (Investors), 513-534-8424orLarry
Magnesen (Media), 513-534-8055
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