8-KOther EventsExhibits & Filings

FIFTH THIRD BANCORP 8-K Report, Corporate Update (Aug 2, 2011)

Filed August 2, 2011For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) filed an 8-K on August 2, 2011, announcing its intention to redeem specific trust preferred securities. The company has issued redemption notices to the trustees for two sets of securities, with redemption dates set for September 19, 2011. This action aligns with previous communications regarding potential capital actions that did not face objection from the Federal Reserve Board as part of their Comprehensive Capital Analysis and Review. The redemptions, totaling $40 million across two trusts ($25 million for First National Bankshares Statutory Trust II and $15 million for R&G Capital Trust IV, LLT), will be funded by the company's readily available excess cash. This move suggests a strategic effort by Fifth Third Bancorp to manage its capital structure and potentially reduce its cost of capital by retiring these securities.

Key Highlights

  • 1Fifth Third Bancorp is redeeming $40 million of trust preferred securities.
  • 2The redemptions are scheduled for September 19, 2011.
  • 3Securities from First National Bankshares Statutory Trust II ($25 million) and R&G Capital Trust IV, LLT ($15 million) are being redeemed.
  • 4The Federal Reserve Board did not object to these potential capital actions.
  • 5The redemptions will be funded by existing excess cash held by the company.
  • 6This action indicates a proactive approach to capital management by FITB.

Frequently Asked Questions

This 8-K filing announces Fifth Third Bancorp's (FITB) intention to redeem specific trust preferred securities. It details the amounts, the trusts involved, and the redemption dates, indicating a planned action to manage the company's capital structure.

The company is redeeming these trust preferred securities as a capital action, which was previously reviewed by the Federal Reserve Board as part of their Comprehensive Capital Analysis and Review, and received no objection. The redemptions are funded by excess cash and likely represent a strategy to optimize the company's capital structure or reduce interest expense.

The total value of the trust preferred securities being redeemed is $40 million. This includes $25 million from First National Bankshares Statutory Trust II and $15 million from R&G Capital Trust IV, LLT.

The redemptions will be funded using excess cash that is currently available to Fifth Third Bancorp.