Fifth Third Makes First Dividend Payment to U.S. Treasury
Fifth Third Bancorp (Nasdaq: FITB) today announced that it has made its first dividend payment to the U.S. Department of the Treasury under the Treasury's Capital Purchase Program (CPP).
The payment, which totaled $42.6 million, is the initial dividend payment from the Bank's sale of approximately $3.4 billion in preferred shares to the U.S. Treasury. Fifth Third issued 136,320 shares of Fixed Rate Cumulative Perpetual Stock, Series F to the Treasury on December 31, 2008.
The additional capital was made available on a voluntarily basis to healthy banks through the CPP and was designed to provide a firmer capital foundation for financial services companies and to increase credit availability to consumers and businesses.
"The CPP program has been very effective in supporting additional bank credit availability to help offset reduced lending by the secondary markets," said Kevin T. Kabat, chairman, president and CEO of Fifth Third Bancorp. "We continue to actively make loans to qualified borrowers throughout our footprint, and originated more than $5 billion of loans in January alone."
Kabat also noted that in the fourth quarter of 2008, Fifth Third Bank extended over $2.5 billion in first mortgages, $445 million in home equity lines of credit, $541 million in new credit card lines, nearly $1.2 billion in auto and other direct loans, $843 million in renewed Commercial and Industrial credit lines, $11.8 billion in entirely new Commercial loan commitments and $1.8 billion in new Commercial Real Estate commitments as well as $1.3 billion in renewals.
"In addition, last year we helped more than 8,000 families modify their mortgage loans to avoid foreclosure, and we're on pace to assist even more of our mortgage customers this year."
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $120 billion in assets, operates 16 affiliates with 1,309 full-service Banking Centers, including 95 Bank Mart(R) locations open seven days a week inside select grocery stores and 2,355 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2008, has $179 billion in assets under care, of which it managed $25 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(R) National Global Select Market under the symbol "FITB." Member FDIC. Equal Housing Lender.