8-KOther Events

FIFTH THIRD BANCORP 8-K Report (Mar 6, 2001)

Filed March 6, 2001For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

This 8-K filing by Fifth Third Bancorp (FITB) from March 6, 2001, primarily serves to inform investors about the anticipated impact of the acquisition of Old Kent Financial Corporation, which is expected to close in the second quarter of 2001. Due to the pooling-of-interests accounting method, Fifth Third's first quarter 2001 results will not include Old Kent's first quarter results. To aid in understanding the financial implications, the company has provided unaudited condensed pro forma financial statements and supplemental data as if the companies were combined for all presented periods ending December 31, 2000. The filing also outlines potential divestitures of certain non-core components of Old Kent's business, including specific parts of its mortgage banking operations (outside the combined Midwestern market areas), its subprime mortgage banking business, and Old Kent Leasing Services Corporation. These divestitures are being considered to refine the combined entity's strategic focus and are detailed with their approximate financial contributions in 2000. Investors are advised to consider this pro forma information alongside the potential impact of these divestitures and broader industry economic conditions.

Key Highlights

  • 1Fifth Third Bancorp has signed a definitive agreement to acquire Old Kent Financial Corporation in a pooling-of-interests transaction, expected to close in Q2 2001.
  • 2First quarter 2001 results for Fifth Third will not include Old Kent's first quarter 2001 financial performance.
  • 3Unaudited condensed pro forma financial statements and supplemental data reflecting the combined entities are being provided for periods ending December 31, 2000, to illustrate the potential financial impact.
  • 4Fifth Third is considering divestitures of certain Old Kent business segments, including parts of its mortgage banking business, subprime mortgage banking, and its leasing services corporation.
  • 5The filing provides financial metrics for the businesses slated for potential divestiture during the year ended December 31, 2000.
  • 6The company's board rescinded the authorization to purchase up to 5% of its outstanding shares, with a portion of previously purchased shares used in the Ottawa Financial Corporation acquisition.

Frequently Asked Questions

The acquisition of Old Kent Financial Corporation is expected to close in the second quarter of 2001.

No, due to the expected closing of the acquisition in the second quarter of 2001 and the pooling-of-interests accounting method, Fifth Third's first quarter 2001 results will not reflect Old Kent's first quarter 2001 results.

Fifth Third has provided unaudited condensed pro forma financial statement information and supplemental financial data for the year ended December 31, 2000, and for prior quarters of 2000, reflecting the transaction as if the entities had been combined using pooling-of-interests accounting.

Yes, Fifth Third is considering strategic alternatives for divesting certain components of Old Kent's business. This includes parts of Old Kent's mortgage banking business outside the combined Midwestern market areas, its subprime mortgage banking business, and Old Kent Leasing Services Corporation.