Fifth Third Bank Announces Redemption of Senior Bank Notes due October 27, 2025

Rhea-AI Summary

Fifth Third Bancorp (Nasdaq: FITB) announced that its subsidiary, Fifth Third Bank, National Association, will redeem all outstanding 5.852% fixed-to-floating rate senior notes due October 27, 2025 (CUSIP 31677QBT5). The $1.0 billion in principal amount of Bank notes will be redeemed on or after October 28, 2024, for 100% of the principal amount plus accrued and unpaid interest. Fifth Third Bank, founded in 1858, is known for its innovation and ethical practices, having been named among Ethisphere's World's Most Ethical Companies® for several years. The bank aims to be the nation's highest-performing regional bank and the most valued and trusted by customers, employees, communities, and shareholders.

Positive

• Redemption of $1.0 billion in senior notes, potentially improving the bank's debt profile
• Recognition as one of Ethisphere's World's Most Ethical Companies for several years, enhancing reputation

Negative

• None.

Insights

Financial Analyst

Fifth Third Bank's decision to redeem $1 billion in senior notes is a strategic move that could impact its capital structure and interest expenses. By redeeming these notes with a 5.852% fixed-to-floating rate, the bank may be positioning itself to take advantage of potentially lower interest rates in the future. This action could lead to reduced interest expenses, potentially boosting profitability. However, investors should consider how this redemption will be funded and its impact on the bank's liquidity position. The early redemption might also signal the bank's confidence in its financial stability and ability to manage its debt obligations effectively. Overall, this move reflects proactive balance sheet management, which could be viewed positively by the market.

Market Research Analyst

The redemption of these senior notes by Fifth Third Bank could be interpreted as a signal of the bank's outlook on future interest rates. By choosing to redeem these notes early, the bank may be anticipating a more favorable interest rate environment for refinancing or believes it can deploy capital more effectively elsewhere. This decision aligns with the broader trend in the banking sector of optimizing capital structures in response to changing market conditions. Investors should monitor how this move compares to actions taken by other regional banks, as it could provide insights into Fifth Third's competitive positioning and financial strategy. The market's reaction to this announcement could influence investor sentiment towards regional banking stocks in general.

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bancorp (Nasdaq: FITB) today announced that its subsidiary, Fifth Third Bank, National Association (the “Bank”), has submitted a redemption notice to the issuing and paying agent for redemption of all of the Bank’s outstanding 5.852% fixed-to-floating rate senior notes due October 27, 2025 (CUSIP 31677QBT5) issued in the principal amount of $1.0 billion. The Bank notes will be redeemed on or after the first business day following the October 27, 2024 redemption date pursuant to their terms and conditions for an amount equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

About Fifth Third

Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ^® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827769349/en/

Matt Curoe (Investor Relations)

matt.curoe@53.com | 513-534-2345

Jennifer Hendricks Sullivan (Media Relations)

Jennifer.Hendricks.Sullivan@53.com | 614-744-7693

Source: Fifth Third Bancorp

FAQ

What is Fifth Third Bank redeeming and when?

Fifth Third Bank is redeeming all outstanding 5.852% fixed-to-floating rate senior notes due October 27, 2025 (CUSIP 31677QBT5) on or after October 28, 2024.

What is the principal amount of the notes being redeemed by Fifth Third Bank (FITB)?

The principal amount of the notes being redeemed is $1.0 billion.

At what price will Fifth Third Bank (FITB) redeem the senior notes?

Fifth Third Bank will redeem the senior notes at 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.

What recognition has Fifth Third Bank (FITB) received for ethical practices?

Fifth Third Bank has been named among Ethisphere's World's Most Ethical Companies® for several years.