As filed with the Securities and
Exchange Commission on July 19, 2019
Registration No. 333-232335
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1
to
FORM S-4
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
________________________________________________________________________________________________________________
(Exact name of registrant as specified
in its charter)
Ohio
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6022
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31-0854434
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(State or other jurisdiction of
incorporation or organization)
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(Primary Standard Industrial
Classification Code Number)
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(I.R.S. Employer
Identification Number)
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Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45202
(800) 972-3030
________________________________________________________________________________________________________________
(Address, including zip code, and telephone
number, including area code, of registrant’s principal executive offices)
Susan B. Zaunbrecher
Executive Vice President, Corporate
Secretary and Chief Legal Officer
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45202
(800) 972-3030
________________________________________________________________________________________________________________
(Name, address, including zip code,
and telephone number, including area code, of agent for service)
Copy to:
Saema Somalya
H. Samuel Lind
Fifth Third Bancorp
38 Fountain Square Plaza
MD 10909F
Cincinnati, Ohio 45263
(513) 534-4300
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William L. Taylor
Byron B. Rooney
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, New York 10017
(212) 450-4000
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Approximate date of commencement of proposed sale of the
securities to the public: As soon as practicable after this registration statement becomes effective and upon completion of the
merger.
If the securities being registered on this Form are being offered
in connection with the formation of a holding company and there is compliance with General Instruction G, check the following
box: ☐
If this Form is filed to register additional securities for
an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. ☐
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions
of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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☐
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If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
If applicable, place an X in the box to designate the appropriate
rule provision relied upon in conducting this transaction:
Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer)
☐
Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender
Offer) ☐
The registrant hereby amends this registration statement
on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission,
acting pursuant to said Section 8(a), may determine.
CALCULATION OF REGISTRATION FEE
Title of each class of
securities to be registered
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Amount
to be
registered
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Proposed
maximum
offering price
per unit
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Proposed
maximum
aggregate
offering price
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Amount of
registration fee
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6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A, with no par value
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200,000
(1)
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N/A
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$200,000,000
(2)
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$24,240.00
(3) (5)
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Depositary Shares, each representing a 1/40
th
interest in a share of 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A, with no par value
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(4)
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(4)
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(4)
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(4)
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(1)
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Represents the maximum number of shares of Fifth Third 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A (the “new Fifth Third preferred stock”) estimated to be issuable in connection with the merger, and is based on the product of (x) 1.0, the exchange ratio for such shares in the merger and (y) 200,000, which is the number of shares of MB Financial 6.00% Non-Cumulative Perpetual Preferred Stock, Series C (“MB Financial preferred stock”) issued and outstanding as of June 25, 2019.
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(2)
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The proposed maximum aggregate offering price of the registrant’s preferred stock was calculated based upon the book value per share of MB Financial preferred stock as of June 25, 2019 pursuant to Rule 457(f)(2) under the Securities Act.
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(3)
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Calculated pursuant to Rule 457 of the Securities Act by multiplying the proposed maximum aggregate offering price of securities to be registered by .0001212.
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(4)
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No separate registration fee will be payable in respect of the depositary shares each representing a 1/40
th
interest in a share of the new Fifth Third preferred stock.
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(5)
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Amount previously paid in connection with
Fifth Third’s filing of Registration Statement on Form S-4 (No. 333-232335), which was filed with the Securities and
Exchange Commission on June 25, 2019.
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The
information contained in this prospectus/information statement is subject to completion or amendment. A registration statement
relating to the new Fifth Third preferred stock and related depositary shares to be issued in the merger has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This prospectus/information statement shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale
is not permitted or would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
PRELIMINARY PROSPECTUS/INFORMATION
STATEMENT
DATED JULY 19, 2019,
SUBJECT TO COMPLETION
MERGER PROPOSED
July [●], 2019
Dear Stockholder:
On June 24, 2019, MB Financial, Inc., which we refer
to as MB Financial, entered into an Agreement and Plan of Merger, which we refer to as the merger agreement, with Fifth Third Bancorp,
which we refer to as Fifth Third. The merger agreement provides for the merger of MB Financial with and into Fifth Third, with
Fifth Third as the surviving corporation, which we refer to as the merger.
Fifth Third owns all of the shares of MB Financial’s common
stock, par value $0.01, which we refer to as MB Financial common stock. In the merger, each outstanding share of MB Financial common
stock will be cancelled. Additionally, each share of MB Financial’s 6.00% Non-Cumulative Perpetual Preferred Stock, Series
C, which we refer to as MB Financial preferred stock, will be converted into the right to receive one share of a newly created
series of preferred stock of Fifth Third having substantially the same terms as MB Financial preferred stock. The newly created
series of preferred stock is the Fifth Third 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A, with no par value,
which we refer to as the new Fifth Third preferred stock.
Based on the number of shares of MB Financial preferred
stock and the number of depositary shares, each representing a 1/40
th
interest in a share of MB Financial preferred
stock, outstanding as of July 18, 2019, the total number of shares of the new Fifth Third preferred stock expected to be issued
in connection with the merger is 200,000 and the total number of depositary shares expected to be issued in respect of the new
Fifth Third preferred stock is 8,000,000. The depositary shares issued in respect of the new Fifth Third preferred stock are expected
to be listed on the NASDAQ Global Select Market. The holders of shares of the new Fifth Third preferred stock will vote together
with the holders of shares of Fifth Third’s common stock, no par value, which we refer to as the Fifth Third common stock,
as a single class on all matters on which the holders of shares of the Fifth Third common stock are entitled to vote, with the
holder of each share of the new Fifth Third preferred stock being entitled to 24 votes for each such share and the holder of each
share of the Fifth Third common stock being entitled to one vote for each such share. Based on the number of issued and outstanding
shares of Fifth Third common stock and the number of issued and outstanding shares of MB Financial preferred stock, in each case
as of July 18, 2019, and based on the exchange ratio of one share of the new Fifth Third preferred stock per share of MB Financial
preferred stock, the holders of shares of MB Financial preferred stock immediately prior to the closing of the merger will hold,
in the aggregate, approximately 0.65% of the voting power of the shares of the Fifth Third common stock and the Fifth Third
preferred stock, voting together as a single class.
MB Financial will hold a special meeting of its stockholders
at which the holders of shares of MB Financial common stock, and the holders of shares of MB Financial preferred stock, which
we refer to as MB Financial preferred stockholders, voting together as a single class, will be asked to approve the merger. The
special meeting will be held on August 23, 2019, at 10:00 a.m., local time, at The Horizon Center, located on the second floor
of 580 Walnut Street, Cincinnati, Ohio 45202. Fifth Third holds approximately 95% of the votes entitled to be cast by all classes
of MB Financial capital stock outstanding and entitled to vote on the merger. The holders of shares of MB Financial preferred
stock collectively hold approximately 5% of the votes entitled to be cast by all classes of MB Financial capital stock outstanding
and entitled to vote on the merger. The merger cannot be completed unless the holders of a majority of the votes entitled to be
cast on the merger by all classes of MB Financial capital stock outstanding and entitled to vote thereon, voting together as a
single class, approve the merger. It is expected that Fifth Third will vote all of its shares of MB Financial common stock in
favor of the merger and in that event the merger will be approved regardless of how the holders of shares of MB Financial preferred
stock vote.
American Stock Transfer & Trust Company, LLC, which
we refer to as the depositary, holds of record all of the outstanding shares of MB Financial preferred stock on behalf of the
holders of depositary shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock. The
depositary is required to vote the shares of MB Financial preferred stock in accordance with the instructions of the holders
of the depositary shares. Where we refer to holders of shares of MB Financial preferred stock or MB Financial preferred
stockholders, this includes holders of depositary shares representing interests in MB Financial preferred stock unless the
context indicates otherwise.
We Are Not Asking You for a Proxy and You are Requested Not
to Send Us a Proxy.
This prospectus/information statement provides you with
detailed information about the proposed transaction. It also contains or references information about Fifth Third and MB Financial
and certain related matters. You are encouraged to read this prospectus/information statement carefully.
In particular, you
should read the “
Risk Factors
” section beginning on page 12 for a discussion of the risks you should
consider in evaluating the proposed transaction and how it may affect you.
Sincerely,
Susan B. Zaunbrecher
Executive Vice President, Corporate Secretary and Chief Legal
Officer
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of the merger or the issuance of the new Fifth Third preferred stock in connection
with the merger or the other transactions described in this prospectus/information statement, or passed upon the adequacy or accuracy
of the disclosures in this prospectus/information statement. Any representation to the contrary is a criminal offense.
The securities to be issued in connection with the merger
are not savings accounts, deposits or other obligations of any bank or savings association and are not insured by the Federal Deposit
Insurance Corporation or any other governmental agency.
This prospectus/information statement is dated July [●],
2019, and is first being mailed to stockholders of MB Financial on or about July [●], 2019.
WHERE YOU CAN FIND MORE INFORMATION
Fifth Third files annual, quarterly and special reports, proxy
statements and other business and financial information with the Securities and Exchange Commission, which we refer to as the SEC.
In addition, Fifth Third files reports and other business and financial information with the SEC electronically. The SEC maintains
a website located at www.sec.gov containing this information, and reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC. You will also be able to obtain these documents, free of charge, from
Fifth Third at ir.53.com under “SEC Filings”.
Fifth Third has filed a registration statement on Form S-4
of which this prospectus/information statement forms a part. As permitted by SEC rules, this prospectus/information statement
does not contain all of the information included in the registration statement or in the exhibits or schedules to the registration
statement. You may obtain a free copy of the registration statement, including any amendments, schedules and exhibits at the addresses
set forth below. Statements contained in this prospectus/information statement as to the contents of any contract or other documents
referred to in this prospectus/information statement are not necessarily complete. In each case, you should refer to the copy
of the applicable contract or other document filed as an exhibit to the registration statement. This prospectus/information statement
incorporates by reference documents that Fifth Third has previously filed with the SEC. These documents contain important business
and financial information about Fifth Third and its financial condition that is not included in or delivered with this prospectus/information
statement. See
“Incorporation of Certain Documents by Reference”
beginning on page 54. These documents are
available without charge to you upon written or oral request to Fifth Third’s Investor Relations department. The address
and telephone number of such department is listed below.
Fifth Third Bancorp
Fifth Third Center
38 Fountain Square Plaza
MD 1090QC
Cincinnati, Ohio 45202
(866) 670-0468
To obtain timely delivery of these documents, you must
request the information no later than August 16, 2019 in order to receive them before the special meeting of MB Financial stockholders.
Shares of Fifth Third’s common stock, no par value, are
traded on the NASDAQ Global Select Market, which we refer to as the NASDAQ, under the symbol “FITB”.
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON AUGUST 23, 2019
NOTICE IS HEREBY GIVEN that a special meeting of stockholders
of MB Financial, Inc., which we refer to as “MB Financial”, will be held on August 23, 2019, at 10:00 a.m. local time,
at The Horizon Center, located on the second floor of 580 Walnut Street, Cincinnati, Ohio 45202, for the following purpose:
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For the holders of shares of MB Financial’s common stock, par value $0.01, which we refer to as MB Financial common stock, and the holders of shares of MB Financial’s 6.00% Non-Cumulative Perpetual Preferred Stock, Series C, which we refer to as MB Financial preferred stock, voting together as a single class, to approve the merger of MB Financial with and into Fifth Third Bancorp, which we refer to as Fifth Third, with Fifth Third surviving the merger, which we refer to as the merger. We refer to this proposal as the merger proposal.
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The affirmative vote of the holders of a majority of the votes
entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger proposal, voting
together as a single class, is required to approve the merger proposal. Fifth Third owns all of the shares of MB Financial common
stock, which hold approximately 95% of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and
entitled to vote on the merger proposal. The holders of shares of MB Financial preferred stock collectively hold approximately
5% of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger
proposal. It is expected that Fifth Third will vote all of its shares of MB Financial common stock in favor of the merger and in
that event the merger will be approved regardless of how the holders of shares of MB Financial preferred stock vote.
No other matters may be brought before the special meeting.
The prospectus/information statement accompanying this notice
explains the merger agreement and the transactions contemplated thereby, as well as the merger proposal to be considered at the
special meeting.
The MB Financial Board of Directors has set July 19, 2019
as the record date for the special meeting. Only holders of record of shares of MB Financial common stock and MB Financial preferred
stock at the close of business on July 19, 2019 will be entitled to notice of and to vote at the special meeting and any adjournments
or postponements thereof.
Fifth Third owns all of the shares of MB Financial common
stock. American Stock Transfer & Trust Company, LLC, which we refer to as the depositary, holds of record all of the
outstanding shares of MB Financial preferred stock on behalf of the holders of depositary shares, each representing a
1/40
th
interest in a share of MB Financial preferred stock. The depositary is required to vote the shares of MB
Financial preferred stock in accordance with the instructions of the holders of the depositary shares. Where we refer to the
holders of shares of MB Financial preferred stock or MB Financial preferred stockholders, this includes holders of the
depositary shares representing interests in the shares of MB Financial preferred stock unless the context indicates
otherwise. The depositary will vote the shares of MB Financial preferred stock in accordance with the instructions it
receives from holders of depositary shares representing interests in the shares of MB Financial preferred stock.
MB Financial stockholders may not participate in the special
meeting by remote communications. Only Fifth Third, as the sole record holder of the shares of MB Financial common stock, and the
depositary, as the sole record holder of the shares of MB Financial preferred stock, or any person granted a proxy by such stockholders
of record, may attend the special meeting and vote in person. Holders of depositary shares may instruct the depositary how to vote
the shares of MB Financial preferred stock under the terms of the deposit agreement among MB Financial, the depositary and the
holders of the depositary receipts evidencing such depositary shares. If your depositary shares are held in “street name”
through a broker, bank or other nominee, your broker, bank or other nominee will send you instructions describing the procedure
for voting your depositary shares.
By Order of the Board of Directors
Susan B. Zaunbrecher
Executive Vice President, Corporate Secretary and Chief
Legal Officer
Chicago, Illinois
July [●], 2019
TABLE OF CONTENTS
QUESTIONS AND ANSWERS ABOUT THE MERGER
AND THE SPECIAL MEETING
The following are answers to certain questions that you may
have regarding the merger and the special meeting. We urge you to read carefully the remainder of this prospectus/information statement.
Additional important information is also contained in the appendices to, and the documents incorporated by reference in, this prospectus/information
statement.
Q:
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WHAT IS THE MERGER?
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A:
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Fifth Third Bancorp, an Ohio corporation, which we refer to as Fifth Third, and MB Financial, Inc., a Maryland corporation and a subsidiary of Fifth Third, which we refer to as MB Financial, have entered into an Agreement and Plan of Merger, dated as of June 24, 2019, as it may be amended from time to time, which we refer to as the merger agreement. The merger agreement provides for the merger of MB Financial with and into Fifth Third, with Fifth Third as the surviving corporation, which we refer to as the merger.
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MB Financial will hold a special meeting of its stockholders
to obtain the required stockholder approvals, which we refer to as the special meeting. A copy of the merger agreement is attached
to this prospectus/information statement as Appendix A. We urge you to read carefully this prospectus/information statement and
the merger agreement in their entirety.
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WHY AM I RECEIVING THIS DOCUMENT?
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A:
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This document
constitutes both an information statement of MB Financial and a prospectus of Fifth Third. It is an information statement
with respect to, and provides notice of, the special meeting of the stockholders of MB Financial to be held on August 23,
2019. It is a prospectus because Fifth Third is offering in connection with the merger, shares of its newly created series
of preferred stock designated 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A, which we refer to as the new
Fifth Third preferred stock, and depositary shares in respect thereof, in exchange for the outstanding shares of MB Financial’s
6.00% Non-Cumulative Perpetual Preferred Stock, Series C, which we refer to as MB Financial preferred stock, and depositary
shares in respect thereof.
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Q:
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WHAT WILL MB FINANCIAL COMMON STOCKHOLDERS RECEIVE IN THE MERGER?
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A:
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All shares of MB Financial common stock are owned by Fifth Third. If the merger is completed, each share of MB Financial common stock issued and outstanding immediately prior to the effective time of the merger will be cancelled.
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Q:
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WHAT WILL MB FINANCIAL PREFERRED STOCKHOLDERS RECEIVE IN THE MERGER?
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A:
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If the merger is completed, each share of MB Financial preferred stock will be converted into the right to receive one share of the new Fifth Third preferred stock. The new Fifth Third preferred stock will have substantially the same terms as MB Financial preferred stock, and in any event the powers, preferences and special rights of the new Fifth Third preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred stock than the powers, preferences and special rights of the MB Financial preferred stock, taken as a whole. There are certain differences that are not material, such as (i) the MB Financial preferred stock has a par value of $0.01 per share and the new Fifth Third preferred stock has no par value, and (ii) dividend payment dates. If declared by the MB Financial Board of Directors, dividends are currently payable on shares of MB Financial preferred stock quarterly, in arrears, on February 25, May 25, August 25 and November 25 of each year. If declared by the Fifth Third Board of Directors, dividends will be payable on shares of the new Fifth Third preferred stock quarterly, in arrears, on March 31, June 30, September 30 and December 31 of each year. It is anticipated that the MB Financial Board of Directors will declare a dividend on the shares of MB Financial preferred stock for the August 25 payment date and in accordance with the terms of the MB Financial preferred stock that dividend will be payable on August 26, 2019, which is the first business day after August 25, 2019 and is also the expected date of the closing of the merger agreement. The first dividend payable on shares of the new Fifth Third preferred stock will accrue starting on August 25, 2019 and, if declared by the Fifth Third Board of Directors, will be paid on September 30, 2019.
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Q:
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WHAT WILL HAPPEN TO THE DEPOSITARY SHARES REPRESENTING MB FINANCIAL PREFERRED STOCK?
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A:
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American Stock
Transfer & Trust Company, LLC, which we refer to as the depositary, holds of record all of the outstanding shares of MB
Financial preferred stock on behalf of the holders of depositary shares, each representing a 1/40
th
interest in a
share of MB Financial preferred stock. Upon the completion of the exchange of MB Financial preferred stock for the new Fifth
Third preferred stock by the depositary, as the record holder of the MB Financial preferred stock, the depositary will call
for the surrender of the depositary receipts evidencing the depositary shares, each representing a 1/40
th
interest
in a share of MB Financial preferred stock, pursuant to the deposit agreement among MB Financial, the depositary and the
holders of such depositary receipts, and cancel such surrendered depositary receipts. The depositary will then issue new
depositary receipts, each representing a 1/40
th
interest in a share of the new Fifth Third preferred stock to the
former holders of the depositary shares, each representing a 1/40
th
interest in a share of the new Fifth Third
preferred stock. Unless the context otherwise requires, references to “depositary shares” means the depositary
shares representing a 1/40
th
interest in a share of MB Financial preferred stock or the depositary shares
representing a 1/40
th
interest in a share of the new Fifth Third preferred stock, as applicable, and references to
“depositary receipts” means the depositary receipts representing the applicable depositary shares.
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Q:
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WILL THE DEPOSITARY SHARES REPRESENTING INTERESTS IN THE NEW FIFTH THIRD PREFERRED STOCK BE LISTED ON THE NASDAQ FOLLOWING COMPLETION OF THE MERGER?
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A:
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Prior to the effective time of the merger, Fifth Third will seek to cause the depositary shares representing interests in the new Fifth Third preferred stock to be approved for listing on the NASDAQ.
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Q:
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WHEN WILL THE MERGER BE COMPLETED?
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A:
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The parties expect that the merger will be completed on August 26, 2019. However, neither Fifth Third nor MB Financial can assure you of when or if the merger will be completed, and it is possible that factors outside of the control of both companies could result in the merger being completed at a different time or not at all. In addition, Fifth Third can terminate the merger agreement at any time, including after the MB Financial stockholders approve the merger at the special meeting.
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Q:
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WHAT ARE MB FINANCIAL STOCKHOLDERS BEING ASKED TO VOTE ON?
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A:
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Holders of shares of MB Financial common stock, which we refer to as MB Financial common stockholders, and holders of shares of MB Financial preferred stock, which we refer to as MB Financial preferred stockholders, are being asked to vote on a proposal to approve the merger, which we refer to as the merger proposal. We refer to MB Financial common stockholders and MB Financial preferred stockholders collectively as MB Financial stockholders.
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All
shares of MB Financial common stock are owned by Fifth Third. American Stock Transfer & Trust Company, LLC, which we
refer to as the depositary, holds of record all of the outstanding shares of MB Financial preferred stock on behalf of the
holders of depositary shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock. The
depositary is required to vote the shares of MB Financial preferred stock in accordance with the instructions of the holders
of the depositary shares. Where we refer to “holders of shares of MB Financial preferred stock” or “MB
Financial preferred stockholders,” this includes holders of the depositary shares representing interests in shares of
MB Financial preferred stock unless the context indicates otherwise.
The
merger cannot be completed unless the holders of a majority of the votes entitled to be cast by all classes of MB Financial capital
stock outstanding and entitled to vote on the merger, voting together as a single class, approve the merger. It is expected that
Fifth Third will vote all of its shares of MB Financial common stock in favor of the merger and in that event the merger will
be approved regardless of how the holders of shares of MB Financial preferred stock vote.
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Q:
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WHAT CONSTITUTES A QUORUM AT THE SPECIAL MEETING?
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A:
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The holders of
a majority of the votes entitled to be cast by all classes of MB Financial capital stock entitled to vote at the special meeting,
as of July 19, 2019, which we refer to as the record date, present in person or represented by proxy, will constitute a quorum
at the special meeting.
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Q:
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WHAT VOTE IS REQUIRED TO APPROVE THE MERGER PROPOSAL AT THE SPECIAL MEETING?
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A:
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The affirmative vote of the holders of a majority of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger proposal, voting together as a single class, is required to approve the merger proposal. Through its ownership of all of the shares of MB Financial common stock, Fifth Third holds approximately 95% of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger proposal. It is expected that Fifth Third will vote all of its shares of MB Financial common stock in favor of the merger and in that event the merger will be approved regardless of how the holders of shares of MB Financial preferred stock vote.
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Q:
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HAS THE MB FINANCIAL BOARD OF DIRECTORS APPROVED THE MERGER?
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A:
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Yes. The MB Financial Board of Directors has approved the merger.
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Q:
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WHEN AND WHERE IS THE SPECIAL MEETING?
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A:
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The special meeting
will be held on August 23, 2019, at 10:00 a.m. local time, at The Horizon Center, located
on the second floor of 580 Walnut Street, Cincinnati, Ohio 45202.
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Q:
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HOW DO I VOTE?
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A:
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Depositary shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock, may be voted only by providing voting instructions to the depositary, and the depositary will vote the shares of MB Financial preferred stock represented thereby in accordance with such instructions. Holders of depositary shares may instruct the depositary how to vote the shares of MB Financial preferred stock under the terms of the deposit agreement among MB Financial, the depositary and the holders of the depositary receipts evidencing such depositary shares. If your depositary shares are held in “street name” through a broker, bank or other nominee, your broker, bank or other nominee will send you instructions describing the procedure for voting your depositary shares.
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Q:
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IF MY DEPOSITARY SHARES ARE HELD IN “STREET NAME” BY A BROKER, BANK OR OTHER NOMINEE, WILL MY BROKER, BANK OR OTHER NOMINEE VOTE MY DEPOSITARY SHARES FOR ME?
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A:
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If you hold depositary shares representing interests in MB Financial preferred stock, in “street name” through a broker, bank or other holder of record, you must provide the record holder of your depositary shares with instructions on how to vote your depositary shares. Please follow the voting instructions provided by the broker or bank. If you hold depositary shares representing interests in MB Financial preferred stock in street name and do not instruct your broker, bank or other nominee on how to vote your depositary shares, your broker, bank or other nominee will not vote your depositary shares on the merger proposal. This will have the same effect as a vote cast against the merger proposal.
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Q:
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WHAT IF I ATTEND THE SPECIAL MEETING AND ABSTAIN OR DO NOT VOTE?
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A:
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For purposes of the special meeting, an abstention occurs when an MB Financial stockholder attends the MB Financial special meeting, either in person or by proxy, but abstains from voting. An abstention or failure to vote will have the same effect as a vote cast against the merger proposal.
|
|
|
Q:
|
ARE MB FINANCIAL STOCKHOLDERS ENTITLED TO APPRAISAL RIGHTS?
|
|
|
A:
|
MB Financial
held a special meeting of its stockholders on July 18, 2019, which we refer to as the MB Financial charter amendment special
meeting, to vote on a proposal to amend MB Financial’s charter, which we refer to as the MB Financial charter, to (i)
clarify that MB Financial stockholders shall not be entitled to exercise any rights of an objecting stockholder provided for
under the Maryland General Corporation Law and (ii) remove provisions relating to the approval of certain business combinations
with an interested stockholder (as defined in the MB Financial charter) in their entirety. We refer to this amendment as the
MB Financial charter amendment and this proposal as the MB Financial charter amendment proposal. The affirmative vote of the
holders of a majority of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and entitled
to vote on the MB Financial charter amendment proposal, voting together as a single class, was required to approve the MB
Financial charter amendment proposal. The MB Financial charter amendment proposal was approved at the MB Financial charter
amendment special meeting and the MB Financial charter amendment became effective on July 18, 2019. As such, MB Financial
stockholders will not be entitled to appraisal rights in connection with the merger.
|
|
|
Q:
|
WHAT ARE THE MATERIAL UNITED STATES FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER TO MB FINANCIAL PREFERRED STOCKHOLDERS?
|
A:
|
It is expected that the merger will qualify as a reorganization
within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended, which we refer to as the Code. Based on
customary representations made by Fifth Third and MB Financial, Fifth Third expects to receive, at or prior to the completion of
the merger, an opinion from Davis Polk & Wardwell LLP, counsel to Fifth Third, to the effect that, based on the law as of the
date thereof, the merger will qualify as a reorganization under Section 368(a) of the Code. If the merger qualifies as a reorganization
for U.S. federal income tax purposes, beneficial owners of MB Financial preferred stock who receive solely new Fifth Third preferred
stock in the merger will not recognize any gain or loss for U.S. federal income tax purposes.
If the shares of Fifth Third preferred stock are treated, for
U.S. federal income tax purposes, as issued for an amount that exceeds a
de minimis
premium to the amount for which Fifth
Third can redeem the Fifth Third preferred stock in the future, it is possible that the shares of Fifth Third preferred stock will
qualify as “fast-pay stock” that is part of a “fast-pay arrangement.” In addition, dividends on the Fifth
Third preferred stock will begin to accrue prior to issuance, which could also result in the United States Internal Revenue Service,
which we refer to as the IRS, taking the position that the Fifth Third preferred stock is fast-pay stock. If the Fifth Third preferred
shares are part of a fast-pay arrangement, beneficial owners of the Fifth Third preferred stock would have to comply with certain
reporting requirements relating to “reportable transactions.” For a more detailed discussion, please see the section
of this prospectus/information statement entitled “
Material United States Federal Income Tax Consequences of the Merger—Possible
Fast-Pay Arrangement
.”
For a more detailed discussion of the material United
States federal income tax consequences of the transaction, see “
Material United States Federal Income Tax Consequences
of the Merger
.”
|
SUMMARY
This summary highlights selected information included
in this prospectus/information statement and does not contain all of the information that may be important to you. You should
read this entire document and its appendices and the other documents to which we refer. In addition, we incorporate by reference
important business and financial information about Fifth Third into this prospectus/information statement. See “Where You
Can Find More Information” in the forepart of this prospectus/information statement and “Incorporation of Certain
Documents by Reference” beginning on page 54. Each item in this summary includes a page reference directing you to a more
complete description of that item.
The Merger and the Merger Agreement
(page 18)
The terms and conditions of the merger are contained in the
merger agreement, which is attached as Appendix A to this prospectus/information statement. We encourage you to read the merger
agreement carefully, as it is the legal document that governs the merger.
If the merger is approved by the MB Financial stockholders and
the merger is subsequently completed, MB Financial will merge with and into Fifth Third, with Fifth Third surviving the merger.
Merger Consideration
(page 18)
All shares of MB Financial common stock issued and outstanding
are held by Fifth Third, and will be cancelled at the effective time of the merger.
Each share of MB Financial preferred stock issued and outstanding
immediately prior to the effective time of the merger will automatically be converted into the right to receive a share of the
new Fifth Third preferred stock with the terms as set forth on Appendix B. The new Fifth Third preferred stock will have substantially
the same terms as MB Financial preferred stock, and in any event the powers, preferences and special rights of the new Fifth Third
preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred stock than the powers,
preferences and special rights of the MB Financial preferred stock, taken as a whole. There are certain differences that are not
material, such as (i) the MB Financial preferred stock has a par value of $0.01 per share and the new Fifth Third preferred stock
has no par value, and (ii) dividend payment dates. If declared by the MB Financial Board of Directors, dividends are currently
payable on shares of MB Financial preferred stock quarterly, in arrears, on February 25, May 25, August 25 and November 25 of each
year. If declared by the Fifth Third Board of Directors, dividends will be payable on shares of the new Fifth Third preferred stock
quarterly, in arrears, on March 31, June 30, September 30 and December 31 of each year. It is anticipated that the MB Financial
Board of Directors will declare a dividend on the shares of MB Financial preferred stock for the August 25 payment date and in
accordance with the terms of the MB Financial preferred stock that dividend will be payable on August 26, 2019, which is the first
business day after August 25, 2019 and is also the expected date of the closing of the merger agreement. The first dividend payable
on shares of the new Fifth Third preferred stock will accrue starting on August 25, 2019 and, if declared by the Fifth Third Board
of Directors, will be paid on September 30, 2019.
MB Financial Special Meeting
of Stockholders (page 15)
The special meeting will be held on August 23, 2019, at
10:00 a.m. local time, at The Horizon Center, located on the second floor of 580 Walnut Street, Cincinnati, Ohio 45202.
The special meeting is being held for MB Financial stockholders
to vote on the merger proposal.
The MB Financial Board of Directors has fixed the close
of business on July 19, 2019 as the record date for determining MB Financial common stockholders and MB Financial preferred stockholders
entitled to receive notice of and to vote at the special meeting.
As of the record date, there were 85,000,000 shares of MB
Financial common stock outstanding and entitled to vote on the merger proposal, all of which were held of record by Fifth
Third. Each share of MB Financial common stock entitles the holder thereof as of the record date to one vote at the special
meeting on each proposal to be considered at the special meeting. As of the record date, there were 200,000 shares of MB
Financial preferred stock outstanding and entitled to vote on the merger proposal, all of which were held by American Stock
Transfer & Trust Company, LLC, which we refer to as the depositary, on behalf of the holders of depositary shares each
representing a 1/40
th
interest in a share of MB Financial preferred stock. Each share of MB Financial preferred
stock entitles the holder thereof as of the record date to 24 votes at the special meeting on the proposal to be considered
at the special meeting. Under the terms of the deposit agreement among MB Financial, the depositary and the holders from time
to time of the depositary receipts evidencing the depositary shares, the depositary is required to vote the shares of MB
Financial preferred stock in accordance with the instructions of the holders of the depositary shares. Where we refer to
“holders of MB Financial preferred stock” or “MB Financial preferred stockholders”, this includes
holders of the depositary shares unless the context indicates otherwise.
As of July 15, 2019, the directors and executive officers
of MB Financial and their affiliates beneficially owned no depositary shares representing interests in shares of MB Financial
preferred stock. As of July 15, 2019, excluding shares held in a fiduciary or agency capacity, Fifth Third and its directors and
executive officers and their affiliates beneficially owned no depositary shares representing interests in shares of MB
Financial preferred stock.
The holders of a majority of the votes entitled to be cast by
all classes of MB Financial capital stock entitled to vote at the special meeting, as of the record date, present in person or
represented by proxy, will constitute a quorum at the special meeting.
The affirmative vote of the holders of a majority of the votes
entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger proposal, voting
together as a single class, is required to approve the merger proposal. Through its ownership of all of the shares of MB Financial
common stock, Fifth Third holds approximately 95% of the votes entitled to be cast by all classes of MB Financial capital stock
outstanding and entitled to vote on the merger proposal. It is expected that Fifth Third will vote all of its shares of MB Financial
common stock in favor of the merger and in that event the merger will be approved regardless of how the holders of shares of MB
Financial preferred stock vote.
Regulatory Approvals
or Waivers Required for the Merger (page 23)
Completion of the merger is subject to approval from the
Board of Governors of the Federal Reserve System, which we refer to as the Federal Reserve Board, or the waiver of such approval
requirements by the Federal Reserve Board. We have obtained all required regulatory approvals or waivers.
Appraisal Rights (page
51)
MB Financial held the MB Financial charter amendment special
meeting on July 18, 2019 to vote on a proposal to amend the MB Financial charter to (i) clarify that MB Financial stockholders
shall not be entitled to exercise any rights of an objecting stockholder provided for under the Maryland General Corporation Law
and (ii) remove provisions relating to the approval of certain business combinations with an interested stockholder (as defined
in the MB Financial charter) in their entirety. The affirmative vote of the holders of a majority of the votes entitled to be
cast by all classes of MB Financial capital stock outstanding and entitled to vote on the MB Financial charter amendment proposal,
voting together as a single class, was required to approve the MB Financial charter amendment proposal. The MB Financial charter
amendment proposal was approved at the MB Financial charter amendment special meeting and the MB Financial charter amendment became
effective on July 18, 2019. As such, MB Financial stockholders will not be entitled to appraisal rights in connection with the
merger.
Conditions to the Merger (page
26)
The obligations of Fifth Third and MB Financial to complete
the merger are each subject to the satisfaction (or waiver, if permitted) of the following conditions:
|
•
|
|
receipt of the requisite approval of MB Financial stockholders of the merger;
|
|
|
|
|
|
•
|
|
receipt of the requisite approval of MB Financial stockholders of the MB Financial charter amendment;
|
|
|
|
|
|
•
|
|
the receipt of all required regulatory approvals or waivers that are necessary to consummate the transactions contemplated by the merger agreement; and
|
|
•
|
|
the absence of any order, injunction, decree, statute, rule, regulation or other legal restraint or prohibition preventing the consummation of, or which prohibits or makes illegal the consummation of, the transactions contemplated by the merger agreement.
|
Termination (page 26)
The merger agreement may be terminated by Fifth Third at any
time prior to the effective time of the merger, whether before or after approval of the merger by MB Financial stockholders.
The Rights of MB Financial
Preferred Stockholders Will Change as a Result of the Merger (page 31)
The rights of MB Financial preferred stockholders will change
as a result of the merger. The rights of MB Financial stockholders are governed by Maryland law and by the MB Financial charter
and MB Financial’s bylaws, which we refer to as the MB Financial bylaws. Upon completion of the merger, MB Financial preferred
stockholders will become stockholders of Fifth Third, and their rights will be governed by Ohio law and Fifth Third’s articles
of incorporation, which we refer to as the Fifth Third articles, and Fifth Third’s code of regulations, which we refer to
as the Fifth Third regulations. For more information, see “
Comparison of Stockholders’ Rights
” beginning
on page 31.
If the merger is completed, each share of MB Financial preferred
stock will be converted into the right to receive one share of the new Fifth Third preferred stock. The new Fifth Third preferred
stock will have substantially the same terms as MB Financial preferred stock and in any event the powers, preferences and special
rights of the new Fifth Third preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred
stock than the powers, preferences and special rights of the MB Financial preferred stock, taken as a whole. For more information,
see “
Description of Fifth Third Capital Stock
” beginning on page 42.
Risk Factors (page 12)
You should consider all the information contained in or
incorporated by reference into this prospectus/information statement. In particular, you should consider the factors described
under “
Risk Factors
” beginning on page 12.
The Parties (page 17)
Fifth Third Bancorp
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Phone: (800) 972-3030
Fifth Third is an Ohio corporation that is registered as a bank
holding company under the Bank Holding Company Act of 1956, as amended, and has elected to be treated as a financial holding company
under the Gramm-Leach-Bliley Act of 1999 and regulations of the Federal Reserve Board. Fifth Third was organized in 1975 and serves
as the parent holding company for Fifth Third Bank, which we refer to as Fifth Third Bank, its principal subsidiary, through which
it provides most of its banking services. As of March 31, 2019, Fifth Third had total assets of $167.9 billion. Fifth Third and
its subsidiaries had 20,115 full-time equivalent employees as of March 31, 2019.
MB Financial, Inc.
800 West Madison Street
Chicago, Illinois 60607
Phone: (888) 422-6562
MB Financial is a Maryland corporation that is registered as
a bank holding company under the Bank Holding Company Act of 1956, as amended, and has elected to be treated as a financial holding
company under the Gramm-Leach-Bliley Act of 1999 and regulations of the Federal Reserve Board. On March 22, 2019, MB Financial
merged with a newly formed subsidiary of Fifth Third, with MB Financial as the surviving entity. As a result of the merger, MB
Financial became a wholly owned direct subsidiary of Fifth Third.
MB Financial was previously the holding company for MB
Financial Bank, N.A., which offered a broad range of financial services predominantly to small and middle market businesses
and individuals. On May 3, 2019, MB Financial Bank, N.A. merged with and into Fifth Third Bank, with Fifth Third Bank as the
surviving entity. MB Financial received an approximate 8% ownership interest in Fifth Third Financial Corporation (which is
a subsidiary of Fifth Third and the parent company of Fifth Third Bank) as the merger consideration in such merger. Through
its ownership interest in Fifth Third Financial Corporation, MB Financial is an approximately 8% indirect owner of Fifth
Third Bank. As a result of such merger of MB Financial Bank, N.A. with and into Fifth Third Bank, MB Financial no longer has
any material assets or operations, other than its ownership interest in Fifth Third Financial Corporation and its ownership
of 100% of the interests of certain statutory business trusts, which have issued trust preferred securities (TruPS) that are
guaranteed by MB Financial.
SELECTED HISTORICAL FINANCIAL DATA FOR
FIFTH THIRD
The following table presents selected financial results of Fifth
Third for the periods and at the dates indicated and should be read in conjunction with Fifth Third’s consolidated financial
statements and the notes to the consolidated financial statements contained in reports that Fifth Third has previously filed with
the SEC. Historical financial information for Fifth Third can be found in its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019 and its Annual Report on Form 10-K for the year ended December 31, 2018. See “
Where You Can Find More Information
”
in the forepart of this prospectus/information statement for instructions on how to obtain the information that has been incorporated
by reference into this prospectus/information statement. Financial amounts as of and for the three months ended March 31, 2019
and 2018 are unaudited (and are not necessarily indicative of the results of operations for the full year or any other interim
period), but management of Fifth Third believes that such amounts reflect all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of its results of operations and financial position as of the dates and for the
periods indicated. You should not assume the results of operations for past periods indicate results for any future period.
|
|
Three months ended
March 31,
|
|
Years ended December 31,
|
(dollars in millions, except per share data)
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
RESULTS OF OPERATIONS—
FOR THE PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
1,206
|
|
|
$
|
1,086
|
|
|
$
|
4,489
|
|
|
$
|
4,193
|
|
|
$
|
4,028
|
|
|
$
|
4,030
|
|
|
$
|
3,973
|
|
Interest expense
|
|
|
210
|
|
|
|
153
|
|
|
|
691
|
|
|
|
578
|
|
|
|
495
|
|
|
|
451
|
|
|
|
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
996
|
|
|
|
933
|
|
|
|
3,798
|
|
|
|
3,615
|
|
|
|
3,533
|
|
|
|
3,579
|
|
|
|
3,561
|
|
Provision for loan and lease losses
|
|
|
23
|
|
|
|
74
|
|
|
|
261
|
|
|
|
343
|
|
|
|
396
|
|
|
|
315
|
|
|
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan and lease losses
|
|
|
973
|
|
|
|
859
|
|
|
|
3,537
|
|
|
|
3,272
|
|
|
|
3,137
|
|
|
|
3,264
|
|
|
|
3,332
|
|
Noninterest income
|
|
|
909
|
|
|
|
523
|
|
|
|
3,224
|
|
|
|
2,696
|
|
|
|
3,003
|
|
|
|
2,473
|
|
|
|
3,227
|
|
Noninterest expense
|
|
|
1,046
|
|
|
|
986
|
|
|
|
3,990
|
|
|
|
3,903
|
|
|
|
3,775
|
|
|
|
3,709
|
|
|
|
3,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
836
|
|
|
|
396
|
|
|
|
2,771
|
|
|
|
2,065
|
|
|
|
2,365
|
|
|
|
2,028
|
|
|
|
2,598
|
|
Applicable income tax expense
|
|
|
132
|
|
|
|
91
|
|
|
|
577
|
|
|
|
505
|
|
|
|
659
|
|
|
|
545
|
|
|
|
772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
704
|
|
|
|
305
|
|
|
|
2,194
|
|
|
|
1,560
|
|
|
|
1,706
|
|
|
|
1,483
|
|
|
|
1,826
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(6
|
)
|
|
|
2
|
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Fifth Third
|
|
|
704
|
|
|
|
305
|
|
|
|
2,194
|
|
|
|
1,564
|
|
|
|
1,712
|
|
|
|
1,481
|
|
|
|
1,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Fifth Third common shareholders
|
|
$
|
689
|
|
|
$
|
290
|
|
|
$
|
2,119
|
|
|
$
|
1,489
|
|
|
$
|
1,637
|
|
|
$
|
1,414
|
|
|
$
|
1,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Fifth Third common shareholders
|
|
|
0.99
|
|
|
|
0.38
|
|
|
|
2.88
|
|
|
|
1.95
|
|
|
|
2.03
|
|
|
|
1.68
|
|
|
|
2.05
|
|
Net income attributable to Fifth Third common shareholders— assuming dilution
|
|
|
0.97
|
|
|
|
0.38
|
|
|
|
2.83
|
|
|
|
1.93
|
|
|
|
2.01
|
|
|
|
1.66
|
|
|
|
2.02
|
|
Cash dividends declared per share
|
|
|
0.16
|
|
|
|
0.14
|
|
|
|
0.60
|
|
|
|
0.53
|
|
|
|
0.52
|
|
|
|
0.51
|
|
|
|
0.47
|
|
Book value at period end
|
|
|
21.68
|
|
|
|
20.13
|
|
|
|
21.67
|
|
|
|
19.82
|
|
|
|
18.48
|
|
|
|
17.35
|
|
|
|
15.85
|
|
Dividend payout ratio
|
|
|
16.2
|
%
|
|
|
36.8
|
%
|
|
|
20.8
|
%
|
|
|
27.2
|
%
|
|
|
25.6
|
%
|
|
|
30.3
|
%
|
|
|
22.9
|
%
|
Weighted-average common shares outstanding—basic
(in thousands)
|
|
|
689,820
|
|
|
|
747,668
|
|
|
|
728,289
|
|
|
|
757,432
|
|
|
|
798,628
|
|
|
|
833,116
|
|
|
|
869,463
|
|
|
|
Three months ended
March 31,
|
|
Years ended December 31,
|
(dollars in millions, except per share data)
|
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding—diluted
(in thousands)
|
|
|
704,101
|
|
|
|
760,809
|
|
|
|
740,691
|
|
|
|
764,495
|
|
|
|
807,659
|
|
|
|
842,967
|
|
|
|
894,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA—AT PERIOD END
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including held for sale
|
|
$
|
92,687
|
|
|
$
|
92,244
|
|
|
$
|
92,462
|
|
|
$
|
92,849
|
|
|
$
|
93,485
|
|
|
$
|
91,345
|
|
|
$
|
89,558
|
|
Interest-earning assets
|
|
|
127,265
|
|
|
|
126,134
|
|
|
|
127,921
|
|
|
|
127,222
|
|
|
|
125,656
|
|
|
|
122,214
|
|
|
|
113,822
|
|
Total assets
|
|
|
141,500
|
|
|
|
140,200
|
|
|
|
142,193
|
|
|
|
142,177
|
|
|
|
141,082
|
|
|
|
138,706
|
|
|
|
130,443
|
|
Deposits
|
|
|
105,461
|
|
|
|
104,156
|
|
|
|
103,162
|
|
|
|
103,821
|
|
|
|
103,205
|
|
|
|
101,712
|
|
|
|
99,275
|
|
Long-term debt
|
|
|
14,800
|
|
|
|
13,658
|
|
|
|
14,904
|
|
|
|
14,388
|
|
|
|
15,844
|
|
|
|
14,967
|
|
|
|
9,633
|
|
Fifth Third common shareholders’ equity
|
|
|
14,853
|
|
|
|
15,099
|
|
|
|
15,034
|
|
|
|
14,874
|
|
|
|
14,508
|
|
|
|
14,295
|
|
|
|
13,555
|
|
Fifth Third shareholders’ equity
|
|
|
16,184
|
|
|
|
16,430
|
|
|
|
16,365
|
|
|
|
16,205
|
|
|
|
15,839
|
|
|
|
15,626
|
|
|
|
14,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets
|
|
|
2.02
|
%
|
|
|
0.88
|
%
|
|
|
1.56
|
%
|
|
|
1.10
|
%
|
|
|
1.22
|
%
|
|
|
1.12
|
%
|
|
|
1.48
|
%
|
Return on average common equity
|
|
|
18.6
|
|
|
|
7.8
|
|
|
|
13.9
|
|
|
|
9.8
|
|
|
|
11.3
|
|
|
|
10.0
|
|
|
|
13.1
|
|
Net interest margin (FTE)
|
|
|
3.18
|
|
|
|
3.02
|
|
|
|
3.03
|
|
|
|
2.88
|
|
|
|
2.88
|
|
|
|
3.10
|
|
|
|
3.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifth Third average shareholders’ equity to average assets
|
|
|
11.52
|
%
|
|
|
11.72
|
%
|
|
|
11.80
|
%
|
|
|
11.67
|
%
|
|
|
11.33
|
%
|
|
|
11.59
|
%
|
|
|
11.56
|
%
|
Fifth Third average common shareholders’ equity to average assets
|
|
|
10.58
|
|
|
|
10.77
|
|
|
|
10.85
|
|
|
|
10.73
|
|
|
|
10.38
|
|
|
|
10.68
|
|
|
|
11.07
|
|
Tier 1 risk-based capital
|
|
|
11.95
|
|
|
|
11.90
|
|
|
|
11.74
|
|
|
|
11.50
|
|
|
|
10.93
|
|
|
|
10.83
|
|
|
|
10.43
|
|
Total risk-based capital
|
|
|
15.25
|
|
|
|
15.45
|
|
|
|
15.16
|
|
|
|
15.02
|
|
|
|
14.13
|
|
|
|
14.33
|
|
|
|
14.17
|
|
Tier 1 leverage
|
|
|
10.11
|
|
|
|
10.15
|
|
|
|
10.01
|
|
|
|
9.90
|
|
|
|
9.54
|
|
|
|
9.66
|
|
|
|
9.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees
|
|
|
18,344
|
|
|
|
17,763
|
|
|
|
18,125
|
|
|
|
17,844
|
|
|
|
18,261
|
|
|
|
18,351
|
|
|
|
19,446
|
|
Branches
|
|
|
1,153
|
|
|
|
1,155
|
|
|
|
1,154
|
|
|
|
1,191
|
|
|
|
1,254
|
|
|
|
1,302
|
|
|
|
1,320
|
|
FTE = Fully taxable-equivalent
COMPARATIVE PER SHARE MARKET PRICE AND
DIVIDEND INFORMATION
The table below sets forth, for the calendar quarters indicated,
the high and low sales prices, as well as the dividend paid, per share of Fifth Third common stock, which trades on the NASDAQ
under the symbol “FITB”.
The shares of MB Financial common stock are not currently traded
on any public market and are not registered under Section 12 of the Securities Exchange Act of 1934. All of the shares of MB Financial
common stock are held by Fifth Third. Prior to March 22, 2019, MB Financial common stock was traded on the NASDAQ under the symbol
“MBFI”. The table below sets forth, for the calendar quarters indicated, the high and low sales prices, as well as
the dividend paid, per share of MB Financial common stock. If the merger is approved by MB Financial stockholders, all of the shares
of MB Financial common stock will be cancelled upon the effective time of the merger. There are no equity securities of MB Financial
authorized for issuance under any equity compensation plan of MB Financial.
|
|
|
Fifth
Third Common Stock
|
|
|
|
MB
Financial Common Stock
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
Dividend
|
|
|
|
High
|
|
|
|
Low
|
|
|
|
Dividend
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$
|
28.97
|
|
|
$
|
24.02
|
|
|
$
|
0.14
|
|
|
$
|
48.47
|
|
|
$
|
39.97
|
|
|
$
|
0.19
|
|
Second Quarter
|
|
|
26.69
|
|
|
|
23.20
|
|
|
|
0.14
|
|
|
|
45.22
|
|
|
|
39.20
|
|
|
|
0.21
|
|
Third Quarter
|
|
|
28.06
|
|
|
|
24.66
|
|
|
|
0.16
|
|
|
|
45.54
|
|
|
|
38.28
|
|
|
|
0.21
|
|
Fourth Quarter
|
|
|
31.83
|
|
|
|
27.38
|
|
|
|
0.16
|
|
|
|
47.64
|
|
|
|
42.39
|
|
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$
|
34.57
|
|
|
$
|
30.18
|
|
|
$
|
0.16
|
|
|
$
|
47.50
|
|
|
$
|
39.15
|
|
|
$
|
0.24
|
|
Second Quarter
|
|
|
34.67
|
|
|
|
28.55
|
|
|
|
0.18
|
|
|
|
51.59
|
|
|
|
39.68
|
|
|
|
0.24
|
|
Third Quarter
|
|
|
30.31
|
|
|
|
27.43
|
|
|
|
0.18
|
|
|
|
49.42
|
|
|
|
45.64
|
|
|
|
0.24
|
|
Fourth Quarter
|
|
|
29.00
|
|
|
|
22.12
|
|
|
|
0.22
|
|
|
|
47.68
|
|
|
|
37.13
|
|
|
|
0.24
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
(1)
|
|
$
|
29.00
|
|
|
$
|
23.11
|
|
|
$
|
0.22
|
|
|
$
|
47.46
|
|
|
$
|
39.05
|
|
|
|
N/A
|
|
Second Quarter
|
|
|
28.98
|
|
|
|
26.22
|
|
|
|
0.24
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Third Quarter (through July 18, 2019)
|
|
|
28.64
|
|
|
|
27.45
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
1
With respect to MB Financial, this reflects the
information in the first quarter of 2019 through March 21, 2019.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus/information statement contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Fifth Third’s
and MB Financial’s expectations or predictions of future financial or business performance or conditions. Forward-looking
statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,”
“target,” “estimate,” “continue,” “positions,” “plan,” “predict,”
“project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,”
“possible” or “potential,” by future conditional verbs such as “assume,” “will,”
“would,” “should,” “could” or “may,” or by variations of such words or by similar
expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made and we assume no duty to update forward-looking statements.
Actual results may differ materially from current projections.
In addition to factors previously disclosed in Fifth Third’s
reports filed with the SEC and those identified elsewhere in this filing (including the “
Risk Factors
” beginning
on page 12), the following factors among others, could cause actual results to differ materially from forward-looking statements
or historical performance:
|
•
|
the ability to satisfy
closing conditions to the merger on the expected terms and schedule;
|
|
•
|
delay in closing the
merger;
|
|
•
|
changes in asset quality
and credit risk;
|
|
•
|
the inability to sustain
revenue and earnings growth;
|
|
•
|
changes in interest
rates and capital markets;
|
|
•
|
customer acceptance
of Fifth Third’s products and services;
|
|
•
|
customer borrowing,
repayment, investment and deposit practices;
|
|
•
|
customer disintermediation;
|
|
•
|
the introduction, withdrawal,
success and timing of business initiatives;
|
|
•
|
competitive conditions;
|
|
•
|
the inability to realize
cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures;
|
|
•
|
economic conditions;
and
|
|
•
|
the impact, extent and
timing of technological changes, capital management activities, and other actions of the Federal Reserve Board and legislative
and regulatory actions and reforms.
|
For any forward-looking statements made in this
prospectus/information statement or in any documents incorporated by reference into this prospectus/information statement,
Fifth Third and MB Financial claim the protection of the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on these statements, which speak only
as of the date of this prospectus/information statement or the date of the applicable document incorporated by reference in
this prospectus/information statement. Except to the extent required by applicable law, Fifth Third and MB Financial do not
undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the
dates on which the forward-looking statements are made. All forward-looking statements, whether written or oral, concerning
the merger or other matters addressed in this prospectus/information statement and attributable to Fifth Third, MB Financial
or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or
referred to in this prospectus/information statement.
RISK FACTORS
In addition to the other information contained in or
incorporated by reference into this prospectus/information statement, including the matters addressed under the caption “Forward-Looking
Statements,” you should carefully consider the following risk factors in deciding how to vote on the proposal presented
in this prospectus/information statement. See “Where You Can Find More Information” in the forepart of this prospectus/information
statement and “Incorporation of Certain Documents by Reference” beginning on page 54.
Risks Related to the Merger
The Merger Agreement May Be Terminated in Accordance with
Its Terms and the Merger May Not Be Completed.
The merger agreement is subject to a number of conditions which
must be fulfilled in order to complete the merger. Those conditions include: approval of the merger by MB Financial stockholders,
approval of the MB Financial charter amendment by MB Financial stockholders, receipt of requisite regulatory approvals or waivers,
and absence of orders prohibiting completion of any of the proposed transactions. These conditions to the closing of the merger
may not be fulfilled in a timely manner or at all, and, accordingly, the merger may not be completed. In addition, Fifth Third
can decide to terminate the merger agreement at any time, before or after MB Financial stockholder approval.
MB Financial Stockholders Will Become Stockholders of an
Ohio Corporation and Will Have Their Rights As Stockholders Governed by Fifth Third’s Organizational Documents and Ohio Law.
Upon completion of the merger, holders of shares of MB Financial
preferred stock will become holders of shares of the new Fifth Third preferred stock, which will be governed by Fifth Third’s
organizational documents and the Ohio General Corporation Law. As a result, there will be differences between the rights currently
enjoyed by MB Financial preferred stockholders and the rights they expect to have as stockholders of Fifth Third. See “
Comparison
of Stockholders’ Rights
” beginning on page 31.
Potential Litigation Against MB Financial and Fifth Third
Could Result in an Injunction Preventing the Completion of the Merger or a Judgment Resulting in the Payment of Damages.
MB Financial preferred stockholders may file lawsuits against
Fifth Third, MB Financial and/or the directors and officers of either company in connection with the merger. These lawsuits could
prevent or delay the completion of the merger and result in significant costs to MB Financial and/or Fifth Third, including any
costs associated with the indemnification of directors and officers.
Additional Risks Relating to the Fifth Third Preferred Stock
or MB Financial Preferred Stock
Fifth Third’s Creditworthiness May Affect the Market
Value of the New Fifth Third Preferred Stock.
The value of the new Fifth Third preferred stock will be
affected, among other things, by Fifth Third’s general creditworthiness. For a discussion and analysis of known material
trends and events, and risks or uncertainties that are reasonably expected to have a material effect on Fifth Third’s business,
financial condition or results of operations, you should review the Fifth Third documents incorporated by reference into this
prospectus/information statement. See “
Incorporation of Certain Documents by Reference
” beginning on page 54.
Changes in Credit Ratings May Affect the Market Value of
the New Fifth Third Preferred Stock.
Real or anticipated changes in credit ratings on Fifth Third
or the new Fifth Third preferred stock may affect the market value of the new Fifth Third preferred stock. In addition, real or
anticipated changes in credit ratings can affect the cost at which Fifth Third can transact or obtain funding, and thereby affect
Fifth Third’s liquidity, business, financial condition or results of operations.
In the Event of Fifth Third’s Insolvency, the New Fifth
Third Preferred Stock Will Rank Junior to Other Securities.
In the event of Fifth Third’s insolvency, any new
Fifth Third preferred stock issued in the merger and outstanding will rank equally with certain of Fifth Third’s other outstanding
series of preferred stock. If Fifth Third becomes insolvent or is wound up, its assets must be used to pay its deposit liabilities
and other debt, including subordinated debt, before payments may be made on Fifth Third’s preferred stock, including the
new Fifth Third preferred stock. See “
Description of Fifth Third Capital Stock
” beginning on page 42.
Yields on Similar Securities Will Likely Affect the Market
Value of the New Fifth Third Preferred Stock.
Prevailing yields on securities similar to the new Fifth Third
preferred stock will likely affect the market value of the new Fifth Third preferred stock. Assuming all other factors remain unchanged,
the market value of the new Fifth Third preferred stock will likely decline as prevailing yields for similar securities rise, and
will likely increase as prevailing yields for similar securities decline.
An active trading market for the new Fifth Third preferred
stock (or related depositary shares) does not exist and may not develop and the market price and liquidity of the depositary shares
may be adversely affected.
The new Fifth Third preferred stock (and related depositary
shares) are new issues of securities with no established trading market. Fifth Third will seek to cause the depositary shares representing
interests in the new Fifth Third preferred stock to be approved for listing on the NASDAQ. However, Fifth Third cannot be certain
that the depositary shares will qualify for listing. If they do not qualify for listing, or if an active trading market does not
develop, holders of shares of the new Fifth Third preferred stock may have difficulty selling any of the shares of the new Fifth
Third preferred stock (or related depositary shares). Fifth Third cannot predict the extent to which investor interest in the new
Fifth Third preferred stock (or related depositary shares) will lead to the development of an active trading market on the NASDAQ
or how liquid that market might become. If an active, liquid market does not develop for the new Fifth Third preferred stock (or
related depositary shares), the market price and liquidity of the depositary shares may be adversely affected.
Risks Relating to U.S. Federal Income Tax
If the merger does not constitute a reorganization under
Section 368(a) of the Code, then MB Financial preferred stockholders may be responsible for payment of U.S. income taxes related
to the consideration they receive in the merger.
It is expected that the merger will qualify as a reorganization
under Section 368(a) of the Code. Based on customary representations made by Fifth Third and MB Financial, Fifth Third expects
to receive, at or prior to the completion of the merger, an opinion from Davis Polk & Wardwell LLP, counsel to Fifth Third,
to the effect that, based on the law as of the date thereof, the merger will qualify as a reorganization under Section 368(a)
of the Code. However, the closing of the merger is not conditioned upon the validity of such opinion, and the IRS may assert and
a court may agree that the merger does not qualify as a reorganization. If the merger does not qualify as a reorganization, each
MB Financial preferred stockholder would recognize gain or loss equal to the difference between the fair market value of the new
Fifth Third preferred stock received by the stockholder in the merger and such stockholder’s adjusted tax basis in the shares
of MB Financial preferred stock exchanged therefor.
Fifth Third preferred stock may be treated as fast-pay stock,
in which case holders of Fifth Third preferred stock would be subject to certain reporting obligations.
If the shares of the new Fifth Third preferred stock are issued
for an amount, as determined for U.S. federal income tax purposes, that exceeds a
de minimis
premium to the amount for which
Fifth Third can redeem the Fifth Third preferred stock in the future, they may be treated as “fast-pay stock” that
is part of a “fast-pay arrangement.” The amount for which the Fifth Third preferred stock will be treated as issued
is not entirely clear as a matter of law, and may depend on the value of the MB Financial preferred stock or the Fifth Third preferred
stock at the time of the merger. We will not have any control over such value. In addition, dividends on the Fifth Third preferred
stock will begin to accrue prior to issuance, which could also result in the IRS taking the position that the Fifth Third preferred
stock is fast-pay stock. If the Fifth Third preferred stock is treated as fast-pay stock, beneficial owners of Fifth Third preferred
stock would be treated as participating in a “listed transaction” for U.S. federal income tax purposes, and would be
required to comply with annual reporting requirements applicable to “reportable transactions,” as described more fully
in “
Material United States Federal Income Tax Consequences of the Merger—Possible Fast-Pay Arrangement
.”
In addition, in certain circumstances, the IRS may recast an arrangement involving fast-pay stock as an alternative transaction,
which could affect the U.S. federal income tax treatment of the beneficial owners of the Fifth Third preferred stock. Treatment
of the Fifth Third preferred stock as fast-pay stock could materially and adversely affect the liquidity and value of the Fifth
Third preferred stock.
Additional Risks Relating to Fifth Third After the Merger
Fifth Third’s business is, and will continue to be,
subject to the risks described in Part I, Item 1A in Fifth Third’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018, as such risks may be updated or supplemented in Fifth Third’s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2019 and subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K filed with the SEC and incorporated
by reference in this prospectus/information statement. See “
Incorporation of Certain Documents by Reference
”
beginning on page 54.
MB FINANCIAL SPECIAL MEETING OF STOCKHOLDERS
Date, Time and Place of the Special Meeting
The special meeting will be held on August 23, 2019, at
10:00 a.m. local time, at The Horizon Center, located on the second floor of 580 Walnut Street, Cincinnati, Ohio 45202.
Purpose of the Special Meeting
The special meeting is being held for MB Financial stockholders
to vote on the merger proposal. No other business will be held.
Approval of the MB Financial Board of Directors
The MB Financial Board of Directors has approved the merger
and directed the merger be submitted for consideration by the MB Financial stockholders at the special meeting.
Record Date and Quorum
The MB Financial Board of Directors has fixed the close
of business on July 19, 2019 as the record date for determining MB Financial common stockholders and MB Financial preferred stockholders
entitled to receive notice of and to vote at the special meeting. The MB Financial common stockholders and MB Financial preferred
stockholders will vote as a single class on the merger proposal to be voted at the special meeting.
As of the record date, there were 85,000,000 shares of MB Financial
common stock outstanding and entitled to vote on the merger proposal, all of which were held of record by Fifth Third. Each share
of MB Financial common stock entitles the holder thereof as of the record date to one vote at the special meeting on each proposal
to be considered at the special meeting.
As of the record date, there were 200,000 shares of MB
Financial preferred stock outstanding and entitled to vote on the merger proposal, all of which were held by American Stock
Transfer & Trust Company, LLC, which we refer to as the depositary, on behalf of the holders of depositary shares each
representing a 1/40
th
interest in a share of MB Financial preferred stock. Each share of MB Financial preferred
stock entitles the holder thereof as of the record date to 24 votes at the special meeting on the proposal to be considered
at the special meeting. Under the terms of the deposit agreement among MB Financial, the depositary and the holders from time
to time of the depositary receipts evidencing the depositary shares, the depositary is required to vote the shares of MB
Financial preferred stock in accordance with the instructions of the holders of the depositary shares. Where we refer to
“holders of MB Financial preferred stock” or “MB Financial preferred stockholders,” this includes
holders of the depositary shares unless the context indicates otherwise.
The holders of a majority of the votes entitled to be cast by
all classes of MB Financial capital stock entitled to vote at the special meeting, as of the record date, present in person or
represented by proxy, will constitute a quorum at the special meeting.
As of July 15, 2019, the directors and executive officers
of MB Financial and their affiliates beneficially owned no depositary shares representing interests in MB Financial preferred
stock. As of July 15, 2019, excluding shares held in a fiduciary or agency capacity, Fifth Third and its directors and executive
officers and their affiliates beneficially owned no depositary shares representing interests in MB Financial preferred
stock.
The following table contains information regarding the only
persons who, to our knowledge, beneficially own more than 5% of the shares of MB Financial preferred stock as of July 15, 2019,
based on publicly filed information by such persons as of the dates indicated below:
Title
of Class
|
Name
and Address of Beneficial Owner
|
Amount
and Nature of Beneficial Ownership
|
Percent
of Class
|
Depositary
shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock
|
Stonebridge Advisors LLC
10 Westport Road
Suite C-101
Wilton, CT 06897
|
1,200,735
(as of July 5, 2019)
|
15.01%
|
Depositary
shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock
|
Manulife Asset Management (US) LLC
197 Clarendon Street
Boston, MA 02116
|
995,888
(as of April 30, 2019)
|
12.45%
|
Depositary
shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock
|
Flaherty & Crumrine, Inc.
301 E. Colorado Blvd
Suite 720
Pasadena, CA 91101
|
429,871
(as of March 29, 2019)
|
5.37%
|
The beneficial owners of more than 5% of any class of Fifth Third’s voting securities, and Fifth Third’s equity securities
that are beneficially owned by directors and executive officers of Fifth Third, are set forth in Fifth Third’s Annual Report
on Form 10-K for the year ended December 31, 2018, which is filed with the SEC and incorporated by reference into this prospectus/information
statement. See “
Where You Can Find More Information
” in the forepart of this prospectus/information statement.
Required Vote
The affirmative vote of the holders of a majority of the votes
entitled to be cast by all classes of MB Financial capital stock outstanding and entitled to vote on the merger proposal, voting
together as a single class, is required to approve the merger proposal. Through its ownership of all of the shares of MB Financial
common stock, Fifth Third holds approximately 95% of the votes entitled to be cast by all classes of MB Financial capital stock
outstanding and entitled to vote on the merger proposal. It is expected that Fifth Third will vote all of its shares of MB Financial
common stock in favor of the merger proposal and in that event the merger will be approved regardless of how the holders of shares
of MB Financial preferred stock vote.
Treatment of Abstentions; Failure to Vote
For purposes of the special meeting, an abstention occurs when
an MB Financial stockholder attends the special meeting, either in person or by proxy, but abstains from voting. An abstention
or failure to vote will have the same effect as a vote cast against the merger proposal.
Voting Instructions and Changes to a Vote
The depositary is required to vote the shares of MB Financial
preferred stock in accordance with the instructions of the holders of the depositary shares.
Holders of depositary shares may instruct the depositary how
to vote the shares of MB Financial preferred stock under the terms of the deposit agreement among MB Financial, the depositary
and the holders of the depositary receipts evidencing such depositary shares.
If you hold depositary shares representing interests in MB Financial
preferred stock in “street name” through a broker, bank or other holder of record, you must provide the record holder
of your depositary shares with instructions on how to vote your depositary shares. Please follow the voting instructions provided
by the broker or bank. If you hold depositary shares representing interests in MB Financial preferred stock in street name and
do not instruct your broker, bank or other nominee on how to vote your depositary shares, your broker, bank or other nominee will
not vote your depositary shares on the merger proposal. This will have the same effect as a vote against the merger proposal. If
you have instructed a broker, bank or other nominee to vote your depositary shares, please follow the directions you receive from
your broker, bank or other nominee in order to change or revoke your vote.
Attending the Special Meeting
Only Fifth Third, as the sole record holder of the outstanding
shares of MB Financial common stock, and the depositary, as the sole record holder of the shares of MB Financial preferred stock,
or any person granted a proxy by such stockholders of record, may attend the special meeting and vote in person.
INFORMATION ABOUT THE COMPANIES
Fifth Third
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Phone: (800) 972-3030
Fifth Third Bancorp is an Ohio business corporation that is
registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, and has elected to be treated as a
financial holding company under the Gramm-Leach-Bliley Act of 1999 and regulations of the Federal Reserve Board. Fifth Third was
organized in 1975. As of March 31, 2019, Fifth Third had consolidated total assets of $167.9 billion and total deposits of $123.7
billion. Fifth Third and its subsidiaries had 20,115 full-time equivalent employees as of March 31, 2019.
Fifth Third is the parent holding company for Fifth Third
Bank, its principal subsidiary, through which most of its banking services are provided. Through Fifth Third Bank and certain
other subsidiaries, Fifth Third provides a wide range of services, including checking, savings and money market accounts, wealth
management solutions, payments and commerce solutions, insurance services and credit products such as commercial loans and leases,
mortgage loans, credit cards, installment loans, and auto loans to individual, corporate, and institutional clients. Fifth Third
serves individuals and businesses through its commercial banking, branch banking, consumer lending, and wealth & asset management
businesses. As of March 31, 2019, these products and services are provided through 1,207 full-service banking centers and 2,559
Fifth Third-branded ATMs located throughout ten states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina,
Ohio, Tennessee and West Virginia.
MB Financial, Inc.
800 West Madison Street
Chicago, Illinois 60607
Phone: (888) 422-6562
MB Financial is a Maryland corporation that is registered as
a bank holding company under the Bank Holding Company Act of 1956, as amended, and has elected to be treated as a financial holding
company under the Gramm-Leach-Bliley Act of 1999 and regulations of the Federal Reserve Board. On March 22, 2019, MB Financial
merged with a newly formed subsidiary of Fifth Third, with MB Financial as the surviving entity. As a result of the merger, MB
Financial became a wholly owned direct subsidiary of Fifth Third.
MB Financial was previously the holding company for MB Financial
Bank, N.A., which offered a broad range of financial services predominantly to small and middle market businesses and individuals.
On May 3, 2019, MB Financial Bank, N.A. merged with and into Fifth Third Bank, with Fifth Third Bank as the surviving entity. MB
Financial received an approximate 8% ownership interest in Fifth Third Financial Corporation (which is a subsidiary of Fifth
Third and the parent company of Fifth Third Bank) as the merger consideration in such merger. Through its ownership interest in
Fifth Third Financial Corporation, MB Financial is an approximately 8% indirect owner of Fifth Third Bank. As a result of such
merger of MB Financial Bank, N.A. with and into Fifth Third Bank, MB Financial no longer has any material assets or operations,
other than its ownership interest in Fifth Third Financial Corporation and its ownership of 100% of the interests of certain statutory
business trusts, which have issued trust preferred securities (TruPS) that are guaranteed by MB Financial.
THE MERGER
The following is a discussion of the merger and the material
terms of the merger agreement between Fifth Third and MB Financial. You are urged to read carefully the merger agreement in its
entirety, a copy of which is attached as Appendix A to this prospectus/information statement and incorporated by reference herein.
This summary does not purport to be complete and may not contain all of the information about the merger agreement that is important
to you. We encourage you to read the merger agreement carefully and in its entirety as it is the legal document that governs the
merger. This section is not intended to provide you with any factual information about Fifth Third or MB Financial. Such information
can be found elsewhere in this prospectus/information statement and in the public filings Fifth Third makes with the SEC. See
“
Where You Can Find More Information
”
in the forepart of this prospectus/information statement.
Terms of the Merger
Transaction Structure
The Fifth Third Board of Directors and the MB Financial Board
of Directors have approved the merger agreement and the merger. If the merger is approved by MB Financial stockholders, then, subject
to the other terms and conditions described herein, the merger agreement provides for the merger of MB Financial with and into
Fifth Third, with Fifth Third continuing as the surviving corporation.
Merger Consideration
Fifth Third owns all of the shares of MB Financial common stock.
Each share of MB Financial common stock issued and outstanding immediately prior to the effective time of the merger will be cancelled.
Each share of MB Financial preferred stock issued and outstanding immediately prior to the effective time of the merger will automatically
be converted into the right to receive a share of the new Fifth Third preferred stock. The new Fifth Third preferred stock will
have substantially the same terms as MB Financial preferred stock, and in any event the powers, preferences and special rights
of the new Fifth Third preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred
stock than the powers, preferences and special rights of the MB Financial preferred stock, taken as a whole. There are certain
differences that are not material, such as (i) the MB Financial preferred stock has a par value of $0.01 per share and the new
Fifth Third preferred stock has no par value, and (ii) dividend payment dates.
Conversion of Shares; Exchange and Payment Procedures
The conversion of the shares of MB Financial preferred stock
into the right to receive shares of the new Fifth Third preferred stock will occur automatically at the effective time of the merger.
After the effective time of the merger, Fifth Third will exchange certificates representing shares of MB Financial preferred stock
for the new Fifth Third preferred stock to be received in the merger.
Surrender and Payment
Each holder of shares of MB Financial preferred stock that
have been converted into the right to receive shares of the new Fifth Third preferred stock will, upon delivery to Fifth Third
of such instrument or evidence of transfer of such MB Financial preferred stock and such other information and documentation as
Fifth Third may reasonably request, be entitled to receive shares of the new Fifth Third preferred stock in respect of the shares
of MB Financial preferred stock owned by such holder at the time of the merger. The shares of the new Fifth Third preferred stock,
at Fifth Third’s option, will be in uncertificated book-entry form, unless a physical certificate is requested by a holder
of shares of MB Financial preferred stock or is otherwise required under applicable law. Until so surrendered or transferred,
as the case may be, each such certificate for shares of MB Financial preferred stock or uncertificated share of MB Financial preferred
stock will represent after the effective time of the merger for all purposes only the right to receive shares of the new Fifth
Third preferred stock and the right to receive any dividends or other distributions as described below.
After the effective time of the merger, there will be no further
registration of transfers of shares of MB Financial preferred stock. If, after the effective time of the merger, certificates for
shares of MB Financial preferred stock or uncertificated shares of MB Financial preferred stock are presented to Fifth Third, they
will be cancelled and exchanged for shares of the new Fifth Third preferred stock provided for, and in accordance with the procedures
set forth in, the merger agreement.
American Stock Transfer & Trust Company, LLC, which
we refer to as the depositary, holds of record all of the outstanding shares of MB Financial preferred stock on behalf of
the holders of depositary shares, each representing a 1/40
th
interest in a share of MB Financial preferred stock.
Upon the completion of the exchange described above by the depositary, as the record holder of the MB Financial preferred
stock, the depositary will call for the surrender of the depositary receipts evidencing the depositary shares, each
representing a 1/40
th
interest in a share of MB Financial preferred stock, pursuant to the deposit agreement among
MB Financial, the depositary and the holders of such depositary receipts, and cancel such surrendered depositary receipts.
The depositary will then issue new depositary receipts, each representing a 1/40
th
interest in a share of the new
Fifth Third preferred stock to the former holders of the depositary shares, each representing a 1/40
th
interest in
a share of MB Financial preferred stock.
Dividends and Distributions
No dividends or other distributions with respect to shares of
the new Fifth Third preferred stock will be paid to the holder of any certificate for shares of MB Financial preferred stock not
surrendered or of any uncertificated share of MB Financial preferred stock not transferred until such certificates or uncertificated
shares are surrendered or transferred, as the case may be, as provided in the merger agreement. Following such surrender or
transfer, there will be paid, without interest, to the person in whose name the shares of the new Fifth Third preferred stock have
been registered, (i) at the time of such surrender or transfer, the amount of all dividends or other distributions with a record
date after the effective time of the merger previously paid or payable on the date of such surrender with respect to such shares
and (ii) at the appropriate payment date, the amount of dividends or other distributions with a record date after the effective
time of the merger and prior to surrender or transfer and with a payment date subsequent to surrender or transfer payable with
respect to such shares.
Appraisal Rights
MB Financial held the MB Financial charter amendment special
meeting on July 18, 2019 to vote on a proposal to amend the MB Financial charter to (i) clarify that MB Financial stockholders
shall not be entitled to exercise any rights of an objecting stockholder provided for under the Maryland General Corporation Law
and (ii) remove provisions relating to the approval of certain business combinations with an interested stockholder (as defined
in the MB Financial charter) in their entirety. The affirmative vote of the holders of a majority of the votes entitled to be
cast by all classes of MB Financial capital stock outstanding and entitled to vote on the MB Financial charter amendment proposal,
voting together as a single class, was required to approve the MB Financial charter amendment proposal. The MB Financial charter
amendment proposal was approved at the MB Financial charter amendment special meeting and the MB Financial charter amendment became
effective on July 18, 2019. As such, MB Financial stockholders will not be entitled to appraisal rights in connection with the
merger.
Lost, Stolen or Destroyed Stock Certificates
If a certificate for shares of MB Financial preferred stock
has been lost, stolen or destroyed, Fifth Third will issue the shares of the new Fifth Third preferred stock properly payable under
the merger agreement upon the making of an affidavit of that fact by the holder of such certificate, and subject to appropriate
and customary indemnification.
Background of the Merger
On May 20, 2018, Fifth Third and its wholly owned subsidiary,
Fifth Third Financial Corporation, which we refer to as Intermediary, entered into an Agreement and Plan of Merger with MB Financial,
which we refer to as the prior merger agreement. The prior merger agreement provided for the combination of MB Financial and Fifth
Third, either through the merger of MB Financial with and into Intermediary, with Intermediary as the surviving corporation, which
we refer to as the direct merger, or through the merger of a newly formed subsidiary of Fifth Third with and into MB Financial,
with MB Financial as the surviving corporation, which we refer to as the alternative merger. If the direct merger was not approved
by the MB Financial preferred stockholders, the alternative merger would occur instead of the direct merger.
On September 18, 2018, MB Financial held a special meeting
of its stockholders at which MB Financial stockholders voted on proposals relating to the transactions contemplated by the prior
merger agreement. The direct merger was not approved by the MB Financial preferred stockholders. As a result, the combination
of MB Financial and Fifth Third would be effected through the alternative merger, which would result in MB Financial becoming
a wholly owned subsidiary of Fifth Third. After the direct merger failed to be approved by the MB Financial preferred stockholders,
Fifth Third began considering ways in which it could merge MB Financial with and into Fifth Third, with Fifth Third surviving
such merger without the need for a separate vote of the MB Financial preferred stockholders. Pursuant to the MB Financial charter,
the separate vote of the MB Financial preferred stockholders would not be required for such a merger so long as the MB Financial
preferred stockholders would receive as consideration in such merger Fifth Third preferred stock with terms not materially less
favorable to the holders of shares of MB Financial preferred stock than the powers, preferences and special rights of the MB Financial
preferred stock, taken as a whole. Under the then-current terms of the Fifth Third articles, Fifth Third was not authorized to
issue preferred stock that would satisfy that requirement.
On
March 21, 2019, MB Financial filed with the Maryland Department of Assessments and Taxation articles of amendment to its charter,
effective as of March 21, 2019, to give the holders of shares of MB Financial preferred stock the right to vote with the holders
of shares of MB Financial common stock as a single class on all matters submitted to a vote of the holders of shares of MB Financial
common stock, with the holders of shares of MB Financial preferred stock being entitled to 24 votes for each share of MB Financial
preferred stock held.
On March 22, 2019, in accordance with the prior merger agreement,
the alternative merger was effected pursuant to which a newly formed subsidiary of Fifth Third merged with MB Financial, with MB
Financial surviving the alternative merger as a subsidiary of Fifth Third.
On April 16, 2019, at Fifth Third’s 2019 annual meeting
of stockholders, the stockholders of Fifth Third approved an amendment to the Fifth Third articles to authorize a new class of
Fifth Third’s preferred stock with terms permitted under the Ohio General Corporation Law that were not available for the
class of Fifth Third preferred stock previously authorized in the Fifth Third articles, which charter amendment we refer to as
the Fifth Third charter amendment. The Fifth Third charter amendment incrementally provides the Fifth Third Board of Directors
with the ability to (1) tailor voting rights, (2) exercise discretion over both dividends and distribution rights including preferences,
(3) establish liquidation rights and preferences, in addition to liquidation price, (4) determine rights to alter express terms
of specific securities and (5) determine any other relative, participating, optional, or other special rights and privileges of,
and qualifications or restrictions on, the rights of holders of shares of any series of such new class of Fifth Third preferred
stock. As a result of the Fifth Third charter amendment, Fifth Third is able to issue shares of the new Fifth Third preferred stock
with terms substantially similar to those of the MB Financial preferred stock.
MB Financial was previously the holding company of MB Financial
Bank. On May 3, 2019, MB Financial Bank, N.A. merged with and into Fifth Third Bank, with Fifth Third Bank as the surviving entity.
MB Financial received an approximate 8% ownership interest in Fifth Third Financial Corporation (which is a subsidiary of Fifth
Third and the parent company of Fifth Third Bank) as the merger consideration in such merger. Through its ownership interest in
Fifth Third Financial Corporation, MB Financial is an approximately 8% indirect owner of Fifth Third Bank.
Fifth Third determined that it would be beneficial to streamline
this ownership structure. Therefore, in May 2019 and June 2019, Fifth Third prepared the merger agreement. On June 18, 2019, the
Fifth Third Board of Directors approved the merger and the merger agreement, and an amendment to the Fifth Third articles to create
a new series of Fifth Third preferred stock having substantially the same terms as MB Financial preferred stock. On June 18, 2019,
the MB Financial Board of Directors approved the merger and the merger agreement, and the MB Financial charter amendment.
On June 24, 2019, Fifth Third and MB Financial entered
into the merger agreement.
The MB Financial charter amendment special meeting was held
on July 18, 2019, and the MB Financial charter amendment was approved at this special meeting and became effective on July 18,
2019.
Approval of the MB Financial Board of Directors and Reasons
for the Merger
In reaching its decision to approve the merger agreement, the
merger and the other transactions contemplated by the merger agreement, the MB Financial Board of Directors evaluated the merger
agreement, the merger and the other transactions contemplated by the merger agreement, and considered a number of factors, including
the following:
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each of MB Financial’s and Fifth Third’s business, operations, financial condition, asset quality, earnings and prospects;
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•
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the fact that the merger would allow for the streamlining of the companies’ corporate organization and potentially reduce expenses;
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the fact that the new Fifth Third preferred stock has terms substantially similar to that of MB Financial preferred stock, and in any event the powers, preferences and special rights of the new Fifth Third preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred stock than the powers, preferences and special rights of the MB Financial preferred stock, taken as a whole;
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the fact that the shares of the new Fifth Third preferred stock are expected to be listed on the NASDAQ;
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although the dividend payment dates for the new Fifth Third preferred stock will be different from the dividend payment dates for the MB Financial preferred stock, it is anticipated that (i) the MB Financial Board of Directors will declare a dividend on the shares of MB Financial preferred stock for the August 25 payment date and in accordance with the terms of the MB Financial preferred stock that dividend will be payable on August 26, 2019, which is the first business day after August 25, 2019 and is also the expected date of the closing of the merger agreement, (ii) the first dividend payable on shares of the new Fifth Third preferred stock will accrue starting on August 25, 2019 and (iii) if declared by the Fifth Third Board of Directors, the first dividend on the shares of the new Fifth Third preferred stock will be paid on September 30, 2019;
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the expected tax treatment of the merger as a “reorganization” for United States federal income tax purposes;
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the possible treatment of the shares of new Fifth Third preferred stock as “fast-pay stock” for U.S. federal income tax purposes; and
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the terms of the merger agreement.
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The foregoing discussion of the information and factors considered
by the MB Financial Board of Directors is not intended to be exhaustive, but includes the material factors considered by the MB
Financial Board of Directors. In reaching its decision to approve the merger agreement, the merger and the other transactions contemplated
by the merger agreement, the MB Financial Board of Directors did not quantify or assign any relative weights to the factors considered,
and individual directors may have given different weights to different factors. The MB Financial Board of Directors considered
all these factors as a whole, and overall considered the factors to be favorable to, and to support, its determination.
The foregoing discussion of the information and factors
considered by the MB Financial Board of Directors is forward-looking in nature. This information should be read in light of the
factors described under the section entitled “
Cautionary Statement Regarding Forward-Looking Statements
” beginning
on page 11.
For the reasons set forth above, the MB Financial Board of Directors
approved the merger agreement and the transactions contemplated thereby.
Fifth Third Board of Directors’ Reasons for the Merger
Fifth Third’s reasons for entering into the merger agreement
include:
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the
fact that the merger would allow for the streamlining of the companies’ corporate organization and potentially reduce
expenses;
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the
fact that following the Fifth Third charter amendment, the Fifth Third Board of Directors is authorized to issue the new Fifth
Third preferred stock with terms substantially similar to that of MB Financial preferred stock;
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the
expected tax treatment of the merger as a “reorganization” for United States
federal income tax purposes;
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the possible treatment
of the shares of new Fifth Third preferred stock as “fast-pay stock” for U.S. federal income tax purposes; and
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the
terms of the merger agreement.
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The Fifth Third Board of Directors approved the merger agreement
after considering a number of factors, including those described above. The Fifth Third Board of Directors did not consider it
practicable to, and did not attempt to, quantify or otherwise assign relative weights to the specific factors it considered in
reaching its determination. The Fifth Third Board of Directors viewed its position as being based on all the information and the
factors presented to and considered by it. In addition, individual directors may have given different weights to different information
and factors.
It should be noted that this explanation of the Fifth Third
Board of Directors’ reasoning and all other information presented in this section is forward-looking in nature, and therefore
should be read in light of the factors discussed under the heading “
Cautionary Statement Regarding Forward-Looking Statements
”
beginning on page 11.
Management and Board of Directors of Fifth Third After the
Merger
The directors and executive officers of Fifth Third as of the
date of this prospectus/information statement will be the directors and executive officers of Fifth Third as the surviving corporation
in the merger. Information regarding the current directors and executive officers of Fifth Third, including biographical information,
compensation and stock ownership, related party transactions and independence, can be found in Fifth Third’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2018 and its Proxy Statement for its annual meeting of shareholders held on
April 16, 2019, which were filed with the SEC and are incorporated by reference into this prospectus/information statement. See
“
Where You Can Find More Information
” in the forepart of this prospectus/information statement.
REGULATORY APPROVALS OR WAIVERS REQUIRED
FOR THE MERGER
Completion of the merger is subject to the receipt of all
approvals required to complete the transactions contemplated by the merger agreement from the Federal Reserve Board, or the waiver
by the Federal Reserve Board of required approvals. We have obtained all required regulatory approvals or waivers.
ACCOUNTING TREATMENT
The March 22, 2019 merger of MB Financial with a newly formed
subsidiary of Fifth Third, with MB Financial as the surviving entity, which we refer to as the prior merger, was accounted for
using the acquisition method, with Fifth Third identified as the acquirer. As a result, the assets and liabilities of MB Financial
were recorded at their fair values at the date of the merger. In addition, all identified intangible assets were recorded at fair
value and included as part of the net assets acquired. To the extent that the purchase price exceeded the fair value of the net
assets acquired from MB Financial on the date the merger was completed, such amount was reported as goodwill. In accordance with
U.S. GAAP, goodwill was not amortized but will be evaluated for impairment at least annually. Identified intangible assets will
be amortized over their estimated useful lives, unless those lives are determined to be indefinite. Further, the acquisition method
of accounting resulted in the operating results of MB Financial being included in the operating results of Fifth Third beginning
from the date of completion of the prior merger.
In connection with the merger expected to
be completed by August 26, 2019, MB Financial will be merged into Fifth Third with all MB Financial common stock, which is wholly
owned by Fifth Third, cancelled upon the merger. Additionally, each share of MB Financial preferred stock will be converted into
the right to receive one share of a newly created series of preferred stock of Fifth Third having substantially the same terms
as MB Financial preferred stock. Upon this conversion, the newly created series of preferred stock will no longer be categorized
as a noncontrolling interest and will be disclosed in preferred stock on Fifth Third’s consolidated balance sheet.
RESALE OF THE NEW FIFTH THIRD PREFERRED
STOCK
All shares of the new Fifth Third preferred stock (or depositary
shares representing interests in the new Fifth Third preferred stock) received by MB Financial preferred stockholders in the merger
will be freely tradable for purposes of the Securities Act of 1933, as amended, which we refer to as the Securities Act, and the
Exchange Act, except for shares of the new Fifth Third preferred stock (or depositary shares representing interests in the new
Fifth Third preferred stock) received by any MB Financial preferred stockholder who is or becomes an “affiliate” of
Fifth Third after completion of the merger. This prospectus/information statement does not cover resales of the new Fifth Third
preferred stock (or depositary shares representing interests in the new Fifth Third preferred stock) received by any person upon
completion of the merger, and no person is authorized to make any use of this prospectus/information statement in connection with
any resale. The depositary shares issued in respect of the new Fifth Third preferred stock are expected to be listed on the NASDAQ.
THE MERGER AGREEMENT
This section describes the material terms of the merger agreement.
The description in this section and elsewhere in this prospectus/information statement is qualified in its entirety by reference
to the complete text of the merger agreement, a copy of which is attached as Appendix A and is incorporated by reference into this
prospectus/information statement. This summary does not purport to be complete and may not contain all of the information about
the merger agreement that is important to you. You are encouraged to read the merger agreement carefully and in its entirety. This
section is not intended to provide you with any factual information about Fifth Third or MB Financial. Such information can be
found elsewhere in this prospectus/ information statement and in the public filings Fifth Third makes with the SEC, as described
in the section entitled “Where You Can Find More Information” in the forepart of this prospectus/information statement.
Effects of the Merger; Merger Consideration
If MB Financial stockholders approve the merger proposal, then,
subject to the other terms and conditions described herein, MB Financial will merge with and into Fifth Third with Fifth Third
surviving the merger. The Fifth Third articles and the Fifth Third regulations as in effect immediately prior to the merger will
be the articles of incorporation and code of regulations of the surviving company.
All of the shares of MB Financial common stock are owned by
Fifth Third. Each share of MB Financial common stock issued and outstanding immediately prior to the effective time of the merger
will be cancelled. Each share of MB Financial preferred stock issued and outstanding immediately prior to the effective time of
the merger will automatically be converted into the right to receive a share of the new Fifth Third preferred stock. The new Fifth
Third preferred stock will have substantially the same terms as the MB Financial preferred stock.
Closing and Effective Time of the Merger
The closing of the merger will occur on a date at Fifth
Third’s election after the satisfaction or waiver of all the closing conditions, including the receipt of all required regulatory
approvals or waivers and the MB Financial stockholder approval. See “
—Conditions to the Merger
” beginning
on page 26 for a more complete description of the conditions that must be satisfied prior to closing.
On the closing date, the surviving corporation will effect the
merger legally by filing articles of merger with the Department of Assessments and Taxation of the State of Maryland and a certificate
of merger with the Secretary of State of the State of Ohio. The merger will become effective at such time as is specified in such
certificate of merger. The time at which the merger becomes effective is sometimes referred to in this prospectus/information statement
as the effective time.
As of the date of this prospectus/information statement, the
parties expect that the merger will be effective on August 26, 2019. However, there can be no assurance as to when or if the merger
will occur.
Conditions to the Merger
Conditions to Each Party’s Obligations
. The respective
obligations of each of Fifth Third and MB Financial to complete the merger are subject to the satisfaction of the following conditions:
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receipt of the requisite approval of MB Financial stockholders of the merger;
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receipt of the requisite approval of MB Financial stockholders of the MB Financial charter amendment;
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the receipt of all required regulatory approvals or waivers which are necessary to consummate the transactions contemplated by the merger agreement; and
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the absence of any order, injunction, decree, statute, rule, regulation or other legal restraint or prohibition preventing the consummation of, or which prohibits or makes illegal the consummation of, the transactions contemplated by the merger agreement.
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Termination
The merger agreement may be terminated at any time prior to
the effective time of the merger, whether before or after approval of the merger, by Fifth Third.
Amendment
The merger agreement may be amended by Fifth Third and MB Financial
at any time prior to the effective time of the merger, whether before or after approval of the merger by the stockholders of MB
Financial; provided that any amendment after such approval that requires further approval of such stockholders will be subject
to and conditioned on such approval.
MATERIAL UNITED STATES FEDERAL INCOME
TAX CONSEQUENCES OF THE MERGER
This section describes the anticipated material United States
federal income tax consequences of the merger to U.S. holders (as defined below) of MB Financial preferred stock whose shares of
MB Financial preferred stock are exchanged for shares of the new Fifth Third preferred stock pursuant to the merger.
For purposes of this discussion, a U.S. holder is a beneficial
owner of MB Financial preferred stock who for United States federal income tax purposes is:
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a citizen or individual resident of the United States;
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a corporation, or an entity treated as a corporation, created or organized in or under the laws of the United States or any State or the District of Columbia;
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a
trust if (1) a court within the United States is able to exercise primary supervision over the administration of the trust and
one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) such trust has a valid election
in effect under aplicable Treasury Regulations to be treated as a United States person; or
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an estate that is subject to United States federal income tax on its income regardless of its source.
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If a partnership (including for this purpose any entity treated
as a partnership for United States federal income tax purposes) holds MB Financial preferred stock, the tax treatment of a partner
generally will depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership
holding MB Financial preferred stock, you should consult your tax advisor.
This discussion addresses only those MB Financial preferred
stockholders that hold their MB Financial preferred stock as a capital asset within the meaning of Section 1221 of the Code, and
does not address all the United States federal income tax consequences that may be relevant to particular MB Financial preferred
stockholders in light of their individual circumstances or to MB Financial preferred stockholders that are subject to special rules,
such as:
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financial institutions;
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pass-through entities and investors in such entities;
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tax-exempt organizations;
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real estate investment trusts;
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regulated investment companies;
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traders in securities that elect to use a mark-to-market method of accounting;
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persons that hold MB Financial preferred stock as part of a straddle, hedge, constructive sale or conversion transaction;
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U.S. expatriates or former citizens or residents of the United States;
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U.S. holders whose functional currency is not the U.S. dollar; and
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stockholders who acquired their shares of MB Financial preferred stock through the exercise of an employee stock option or otherwise as compensation or through a tax-qualified retirement plan, individual retirement accounts or other tax-deferred accounts.
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In addition, the discussion does not address any alternative
minimum tax or any state, local or foreign tax consequences of the merger.
The following discussion is based on the Code, its legislative
history, existing and proposed regulations thereunder and published rulings and decisions, all as currently in effect as of the
date hereof, and all of which are subject to change, possibly with retroactive effect. Any such change could affect the continuing
validity of this discussion.
Fifth Third and MB Financial have structured the merger to qualify
as a reorganization within the meaning of Section 368(a) of the Code. Based on customary representations made by Fifth Third and
MB Financial, Fifth Third expects to receive, at or prior to the completion of the merger, an opinion from Davis Polk & Wardwell
LLP, counsel to Fifth Third, to the effect that, based on the law as of the date thereof, the merger will qualify as a reorganization
under Section 368(a) of the Code. However, the closing of the merger is not conditioned upon the validity of such opinion, and
Fifth Third and MB Financial have not requested and do not intend to request any ruling from the IRS as to the United States federal
income tax consequences of the merger. Consequently, no assurance can be given that the IRS will not assert, or that a court would
not sustain, a position contrary to any of those set forth below. Accordingly, each MB Financial preferred stockholder should consult
its tax advisor with respect to the particular tax consequence of the merger to such holder.
Tax Consequences of the Merger Generally to U.S. Holders
of MB Financial Preferred Stock.
If the merger is treated as a reorganization within the meaning of Section 368(a) of the Code,
the tax consequences to a U.S. holder of MB Financial preferred stock will be as follows:
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no gain or loss will be recognized;
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the aggregate basis of the new Fifth Third preferred stock will be the same as the aggregate basis of the MB Financial preferred stock for which it is exchanged; and
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the holding period of new Fifth Third preferred stock received in the merger will be the same as the holding period of the MB Financial preferred stock for which it was exchanged.
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If U.S. holders of MB Financial preferred stock acquired different
blocks of MB Financial preferred stock at different times or at different prices, such holders’ basis and holding period
in their shares of Fifth Third preferred stock will be determined by reference to each block of MB Financial preferred stock.
Possible Fast-Pay Arrangement
Under Treasury Regulations, a “fast-pay arrangement”
is any arrangement in which a corporation has “fast-pay stock” outstanding for any part of its taxable year. “Fast-pay
stock” is defined as stock structured such that dividends paid on the stock are economically “a return of the holder’s
investment (as opposed to only a return on the holder’s investment).” Treasury Regulations also provide that, unless
clearly demonstrated otherwise, stock is presumed to be fast-pay stock if it is structured to have a dividend rate that is reasonably
expected to decline, or if it is issued for an amount that exceeds, by more than a
de minimis
amount, the amount at which
the holder can be compelled to dispose of the stock.
Neither Treasury Regulations nor IRS guidance provide, for the
purposes of determining whether stock is fast-pay stock, how to determine the amount for which stock is issued in a transaction,
like the merger, in which the stock of one company is exchanged for stock of another company in a tax-free transaction. Although
not directly on point, this question is presented in an analogous context in regulations governing the determination of the issue
price for a debt instrument for U.S. federal income tax purposes. Pursuant to those regulations, the issue price of a publicly
traded debt instrument issued for property is equal to the fair market value of the debt instrument, determined as of the issue
date. Alternatively, the issue price of a debt instrument (that is not publicly traded) issued for publicly traded property is
equal to the fair market value of the property, determined as of the issue date. For these purposes, “issue date” is
the first date on which a substantial amount of the debt instruments in the issue is issued.
It is expected that, after the merger, the depositary shares,
each representing a 1/40
th
interest in a share of the new Fifth Third preferred stock, will be listed on the NASDAQ.
In addition, the Fifth Third preferred stock may accrue dividends prior to issuance. If the fair market value of the Fifth Third
preferred stock, based on, among other things, the trading price of the depositary shares, as of the date of the merger exceeds,
by more than a
de minimis
amount, the amount for which Fifth Third can redeem the Fifth Third preferred stock in the future,
we believe that it is possible that the IRS would take the position that the Fifth Third preferred stock constitutes fast-pay stock.
In addition, dividends on the Fifth Third preferred stock will begin to accrue prior to issuance, which could also result in the
IRS taking the position that the Fifth Third preferred stock is fast-pay stock.
If the Fifth Third preferred stock does constitute fast-pay
stock, all U.S. holders of Fifth Third preferred stock would be treated as having participated in a “listed transaction”
and would be required under applicable Treasury Regulations to file a disclosure statement (IRS Form 8886 or successor form) with
their U.S. federal income tax returns identifying their participation in a “reportable transaction” and to mail a
copy of such form to the IRS Office of Tax Shelter Analysis. Failure to comply with these disclosure requirements may result in
onerous penalties. In addition, in certain circumstances, the IRS may recast an arrangement involving fast-pay stock as an alternative
transaction, which could affect the U.S. federal income tax treatment of U.S. holders of the Fifth Third preferred stock. Although
we believe the issuance of Fifth Third preferred stock pursuant to the merger will not be susceptible to recast as an alternative
transaction, there is no guarantee that the IRS or a court will agree with our position. Treatment of the Fifth Third preferred
stock as fast-pay stock could materially and adversely affect the liquidity and value of the Fifth Third preferred stock.
If Fifth Third determines, at or after the completion of the
merger, that it is possible that the IRS would take the position that the new Fifth Third preferred stock constitutes fast-pay
stock, Fifth Third expects that it would file a protective disclosure statement on IRS Form 8886 with respect to the new Fifth
Third preferred stock. In addition, material advisors to a transaction that is treated as a “fast-pay arrangement”
are also required to file a disclosure statement with the IRS, and can be subject to penalties for failure to comply with this
requirement. Fifth Third has been informed by its U.S. tax counsel that, if its U.S. tax counsel determines that it is possible
that the IRS would take the position that the new Fifth Third preferred stock constitutes fast-pay stock, its U.S. tax counsel
expects that it would file a protective disclosure statement with the IRS.
All U.S. holders of Fifth Third preferred stock
are urged to consult their tax advisors as to the U.S. federal income tax consequences of the arrangements described herein, including
as to the advisability of filing disclosure statements with the IRS.
Information Reporting.
A U.S. holder of MB Financial
preferred stock who receives Fifth Third preferred stock as a result of the merger will be required to retain records pertaining
to the merger. Each U.S. holder of MB Financial preferred stock who is required to file a U.S. federal income tax return and who
is a “significant holder” that receives Fifth Third preferred stock in the merger will be required to file a statement
with such U.S. federal income tax return in accordance with Treasury Regulations Section 1.368-3 setting forth such holder’s
basis (determined immediately prior to the conversion into the right to receive Fifth Third preferred stock) in the MB Financial
preferred stock surrendered and the fair market value (determined immediately prior to the merger) of the MB Financial preferred
stock that is exchanged for shares of the new Fifth Third preferred stock by such significant holder. A “significant holder”
is a holder of MB Financial preferred stock who, immediately before the merger, owned at least 5% of the outstanding stock of MB
Financial or securities of MB Financial with a basis for federal income taxes of at least $1.0 million.
This summary of material U.S. federal income tax consequences
is for general information only and is not tax advice. You are urged to consult your tax advisor with respect to the application
of U.S. federal income tax laws to your particular situation as well as any tax consequences arising under the U.S. federal estate
or gift tax rules, or under the laws of any state, local, non-U.S. or other taxing jurisdiction or under any applicable tax treaty.
COMPARISON OF STOCKHOLDERS’ RIGHTS
General
MB Financial is incorporated under the laws of the State of
Maryland and the rights of MB Financial stockholders are governed by the laws of the State of Maryland, including the Maryland
General Corporation Law, which we refer to as the MGCL, the MB Financial charter and the MB Financial bylaws. As a result of the
merger, MB Financial preferred stockholders who receive shares of the new Fifth Third preferred stock will become Fifth Third stockholders.
Fifth Third is incorporated under the laws of the State of Ohio and the rights of Fifth Third stockholders are governed by the
laws of the State of Ohio, including the Ohio General Corporation Law, which we refer to as the OGCL, the Fifth Third articles
and the Fifth Third regulations. Thus, following the merger, the rights of MB Financial preferred stockholders who become Fifth
Third stockholders in the merger will no longer be governed by the laws of the State of Maryland, the MB Financial charter and
the MB Financial bylaws and instead will be governed by the laws of the State of Ohio, as well as by the Fifth Third articles and
the Fifth Third regulations.
Comparison of Stockholders’ Rights
Set forth below is a summary comparison of material differences
between the rights of Fifth Third stockholders under the OGCL, the Fifth Third articles and the Fifth Third regulations (right
column), and the rights of MB Financial stockholders under the MGCL, the MB Financial charter and the MB Financial bylaws (left
column). The Fifth Third regulations will be amended effective at the effective time of the merger, and the summary below reflects
the Fifth Third regulations as they will be amended as of such time. The summary set forth below is not intended to be complete
or to provide a comprehensive discussion of each company’s governing documents. This summary is qualified in its entirety
by reference to the full text of the Fifth Third articles and the Fifth Third regulations, and the MB Financial charter and the
MB Financial bylaws, as well as the relevant provisions of the OGCL and the MGCL. Copies of Fifth Third’s governing documents
are filed as exhibits to the reports of Fifth Third as incorporated by reference into this prospectus/information statement. See
the section entitled “
Where You Can Find More Information
” in the forepart of this prospectus/information statement.
MB Financial
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Fifth Third
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Authorized Capital Stock
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The MB Financial charter authorizes MB Financial
to issue up to 120,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock,
par value $0.01 per share. As of the record date, there were 85,000,000 shares of MB Financial common stock outstanding
and 200,000 shares of MB Financial preferred stock outstanding.
The MB Financial charter authorizes the MB Financial
Board of Directors to classify or reclassify any unissued shares of capital stock from time to time into one or more classes or
series of stock by setting or changing in one or more respects the preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends, qualifications or terms and conditions of redemption of such shares. MB Financial is authorized under
its charter to issue additional shares of capital stock, up to the amount authorized, generally without stockholder approval.
In addition, the MB Financial charter provides by its terms that it may be amended by the MB Financial Board of Directors, without
a stockholder vote, to change the number of shares of capital stock or the number of shares of any class or series that MB Financial
has authority to issue.
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Fifth
Third’s articles authorize Fifth Third to issue up to 2,000,000,000 shares of common stock, with no par value, 500,000
shares of preferred stock, with no par value, which we refer to as the original Fifth Third preferred stock, and 500,000 shares
of Class B preferred stock, with no par value, which we refer to as the Fifth Third Class B preferred stock. The original
Fifth Third preferred stock and the Fifth Third Class B preferred stock are referred to collectively as the Fifth Third preferred
stock. As of July 18, 2019, there were 732,100,288 shares of Fifth Third common stock outstanding, 54,000 shares of Fifth
Third preferred stock outstanding and no shares of Fifth Third Class B preferred stock outstanding.
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Number of Directors
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The MB Financial charter and bylaws provide that MB
Financial will have the number of directors set forth in its charter until changed to a number not greater than 25 by the MB Financial
Board of Directors by a vote of a majority of the total number of directors MB Financial would have if there were no vacancies
on the MB Financial Board of Directors, which we refer to as the whole Board. MB Financial currently has two directors.
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The Fifth Third regulations provide that the Fifth Third
Board of Directors shall be composed of 15 persons unless that number is changed from time to time by the vote of a majority of the Fifth Third Board of Directors then in office
or by the stockholders pursuant to the OGCL.
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Under the MGCL, the minimum number of directors is one.
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The Fifth Third Board of Directors may, by a majority
vote of directors then in office, increase the number of directors to not more than 30 persons or decrease the number of directors
to not less than 10 persons. The shareholders may fix or change the size of the Board of Directors notwithstanding the foregoing
range at a meeting of shareholders called for the purpose of electing directors at which a quorum is present by the affirmative
vote of the holders of shares entitling them to exercise a majority of the voting power of the Corporation that is represented
at the meeting and entitled to vote on the proposal. The Fifth Third Board of Directors presently consists of fourteen directors.
Under the OGCL, the number of directors of a corporation may
not be less than one.
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Classes of Directors
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The MB Financial Board of Directors is not classified. The MB Financial charter provides for the annual election of all directors.
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The Fifth Third Board of Directors is not classified.
The Fifth Third regulations provide for the annual election of all directors.
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Special Meetings of the Board of Directors
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The MB Financial bylaws provide that a special meeting of the MB Financial Board of Directors may be called by one-third of the directors then in office (rounded up to the nearest whole number) or by the Chairman of the MB Financial Board of Directors or the President. Notice of the place, date and time of each such special meeting must be given to each director by whom it is not waived by mailing written notice not less than five days before the meeting or by emailing or faxing of the same not less than 24 hours before the meeting.
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The Fifth Third regulations provide that a special meeting of the Fifth Third Board of Directors will be called by the Secretary whenever requested by the Chairman of the Fifth Third Board of Directors, Vice Chairman of the Board of Directors or the lead director of the Board of Directors, or in their absence, the President, any Vice President or five or more of the directors. Notice of each special meeting of the Fifth Third Board of Directors shall be given to each director personally or by telegram or cablegram, no later than two days before the meeting is to be held, or by mail, at least seven days before the day on which the meeting is to be held.
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Removal of Directors
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The MB Financial charter provides that, subject to the rights of the holders of any class or series of preferred or other stock outstanding, directors may be removed from office only for cause and only by the vote of the holders of a majority of the voting power of all of the then-outstanding shares of capital stock entitled to vote generally in the election of directors, which we refer to as MB Financial voting stock, voting together as a single class.
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The Fifth Third regulations provide that no director
shall be removed without cause during his term of office and that any director may be removed for cause at any time by the action
of the holders of a majority of the voting power of Fifth Third entitled to elect directors in place of those removed at a meeting
of the shareholders, and the vacancy in the Fifth Third Board of Directors caused by such removal may be filled by action of the
shareholders at such meeting or any subsequent meeting.
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Filling Vacancies on the Board of Directors
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The
MB Financial bylaws provide that, subject to the rights of the holders of any class or series of preferred or other stock
then outstanding, newly created directorships resulting from any increase in the authorized number of directors or any
vacancies in the MB Financial Board of Directors resulting from death, resignation, retirement, disqualification, removal from office or other cause may be filled by a majority vote of the directors then in office, though less than a quorum, and any director so chosen shall hold office until the next annual meeting of stockholders and until his or her successor is elected and qualified. No decrease in the number of directors constituting the MB Financial Board of Directors will shorten the term of any incumbent director. A vacancy resulting from the removal of a director may be filled by the stockholders.
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Ohio law provides that, unless the articles or the
regulations otherwise provide, the remaining directors, though less than a majority of the whole authorized number of directors,
may, by the vote of a majority of their number, fill any vacancy in the board of directors for the unexpired term. A vacancy exists if the shareholders increase
the authorized number of directors but fail at the meeting at which the increase is authorized, or an adjournment of that meeting,
to elect the additional directors provided for, or if the shareholders fail at any time to elect the whole authorized number of
directors. In case of any removal of a director, a new director may be elected at the same meeting for the unexpired term of each
director removed. Failure to elect a director to fill the unexpired term of any director removed is deemed to create a vacancy
on the board of directors.
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The Fifth Third regulations provide that, except for
vacancies created by the removal of a director, in the case of any increase in the number of directors, or any vacancy created
by the death, resignation or otherwise of a director, the additional director or directors may be elected or, as the case may
be, the vacancy or vacancies may be filled either: (1) by the Fifth Third Board of Directors at any meeting by the affirmative
vote of a majority of the remaining directors (though less than a quorum) or (2) by the Fifth Third shareholders entitled to vote
thereon, either at an annual meeting of shareholders or at a special meeting called for that purpose. The vacancy in the Fifth
Third Board of Directors caused by the removal of a director may be filled by action of the shareholders at a meeting of stockholders.
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Nomination of Director Candidates by
Stockholders
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The MB Financial bylaws provide that the Secretary must receive written notice of any stockholder director nomination for a meeting of stockholders not less than 90 days or more than 120 days before the date of the meeting. If, however, less than 100 days’ notice or prior public announcement of the date of the meeting is given or made to stockholders, notice of the nomination must be received by the Secretary no later than the 10
th
day following the day on which notice of the meeting is mailed or otherwise transmitted or public announcement of the meeting date is first made, whichever occurs first.
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The Fifth Third regulations provide that stockholders may nominate
persons for election to the Fifth Third Board of Directors at annual meetings and at any special meetings at which directors will
be elected. The nominating stockholder must be a stockholder of record both at the time of giving notice of such nomination and
at the time of the meeting and must be entitled to vote at such meeting. Notice of nominations must be delivered to the principal
executive offices of Fifth Third not less than 60 nor more than 90 days prior to the anniversary of the previous year’s annual
meeting. If, however, the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date,
for notice by the stockholder to be timely, it must be so delivered not earlier than the 90
th
day prior to such annual
meeting and not later than the 60
th
day prior to such annual meeting or, if the first public announcement of such annual
meeting is less than 100 days prior to the date of such annual meeting, the 10
th
day following the day on which such
public announcement is first made.
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Calling Special Meetings of Stockholders
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The MB Financial bylaws provide that special meetings of stockholders may be called by the President or the MB Financial Board of Directors by vote of a majority of the whole Board. In addition, the MB Financial bylaws provide that a special meeting of stockholders shall be called by the Secretary on the written request of stockholders entitled to cast at least a majority of all the votes entitled to be cast at the meeting.
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Under the Fifth Third regulations, a special meeting
of the holders of any or all classes or series of Fifth Third stock may be called at any time by the Fifth Third Board of Directors.
Special meetings of the holders of all classes and series of Fifth Third stock also will be called by the Secretary upon written
request made by holders of at least 25% of the outstanding shares of Fifth Third stock entitled to vote. Special meetings of the Fifth
Third common shareholders will be called by the Secretary upon written request made by holders of Fifth Third common stock who
hold of record collectively at least 25% of the outstanding shares of Fifth Third common stock.
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Stockholder Proposals
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The MB Financial bylaws provide that the Secretary must receive written notice of any stockholder proposal for business at an annual meeting of stockholders not less than 90 days or more than 120 days before the first anniversary of the preceding year’s annual meeting. If the date of the current year’s annual meeting is advanced by more than 20 days or delayed by more than 60 days from the anniversary date of the preceding year’s annual meeting, notice of the stockholder proposal must be received by the Secretary no earlier than the close of business on the 120
th
day prior to the date of the annual meeting and no later than the close of business on the later of (a) the 90
th
day prior to the annual meeting or (b) the 10
th
day following the day on which notice of the annual meeting is mailed or otherwise transmitted or public announcement of the annual meeting date is first made, whichever occurs first.
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The Fifth Third regulations provide that to properly
bring business before an annual meeting, a shareholder must deliver a shareholder’s notice to the principal executive offices
not less than 60 nor more than 90 days prior to the anniversary of the previous year’s annual meeting. If, however, the
date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, notice by the shareholder
to be timely must be delivered not earlier than the 90
th
day prior to such annual meeting and not later than the 60
th
day prior to such annual meeting or, if the first public announcement of such annual meeting is less than 100 days prior
to the date of such annual meeting, the 10
th
day following the day on which such public announcement is first made.
Such shareholder must hold their shares of record both on the date notice is provided to Fifth Third and on the date of the meeting
and must be entitled to vote at such meeting. The Fifth Third regulations will not affect any rights of shareholders to request
inclusion of proposals in Fifth Third’s proxy statement pursuant to Rule 14a-8 under the Exchange Act.
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Action by Written Consent
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The MB Financial bylaws provide that, except as described
in the following sentence, any action required or permitted to be taken at a meeting of stockholders may instead be taken without
a meeting if a unanimous written consent which sets forth the action is given in writing or by electronic transmission by each
stockholder entitled to vote on the matter. The MB Financial bylaws also provide that, unless the MB Financial charter provides
otherwise, the holders of any class of MB Financial voting stock, other than common stock, may act without a meeting if a consent
is given in writing or by electronic transmission by the holders entitled to cast the minimum number of votes that would be necessary
to approve the action at a meeting of stockholders.
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Under the OGCL, shareholders may take action, without a meeting, by the written unanimous consent of shareholders who would be entitled to notice of a shareholders’ meeting held for such purpose. Otherwise, shareholders are able to take action only at an annual or special meeting called in accordance with the Fifth Third regulations.
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Notice of Stockholder Meetings
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The MB Financial bylaws provide that, not less than 10 nor more than 90 days before each stockholders’ meeting, the Secretary will provide notice in writing or by electronic transmission to each stockholder entitled to vote at, and to each other stockholder entitled to notice of, such meeting of the time and place of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at the meeting, and, if the meeting is a special meeting or notice of the purpose is required by statute, the purpose of the meeting.
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The Fifth Third regulations provide that Fifth Third must give written notice, either by personal delivery or mail, not less than seven nor more than 60 days before any shareholders’ meeting, to each shareholder entitled to vote at such a meeting. The notice shall be in a form approved by the Fifth Third Board of Directors, and state the place, time and purposes of the meeting.
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Quorum at Stockholder Meetings
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The MB Financial bylaws provide that, at any meeting of stockholders, the holders of a majority of all the shares of stock entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum for all purposes, except to the extent that the presence of a larger number may be required by law.
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The Fifth Third regulations provide that the holders
of shares entitling them to exercise a majority of the voting power of the Corporation entitled to vote at the meeting on each
matter that is to be voted on shall constitute a quorum at any meeting of the shareholders.
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Stockholder Rights Plan
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MB Financial has not adopted a stockholder rights plan.
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Fifth Third has not adopted
a stockholder rights plan.
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Anti-Takeover Provisions and Other Stockholder
Protections
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Voting Limitation.
The MB Financial charter generally
prohibits any stockholder that beneficially owns more than 14.9% of the outstanding shares of MB Financial common stock from voting
shares in excess of this limit; provided that for so long as the MB Financial preferred stock is outstanding, this 14.9% limit
will not apply.
Control Share Acquisitions.
The MGCL contains a control
share acquisition statute which, in general terms, provides that where a stockholder acquires issued and outstanding shares of
a corporation’s voting stock, which we refer to as control shares, within one of several specified ranges (one-tenth or more
but less than one-third, one-third or more but less than a majority, or a majority or more), approval by stockholders of the control
share acquisition must be obtained before the acquiring stockholder may vote the control shares. The required stockholder vote
is two-thirds of all votes entitled to be cast, excluding “interested shares,” defined as shares held by the acquiring
person, officers of the corporation and employees who are also directors of the corporation. A corporation may, however, opt-out
of the control share statute through a charter or bylaw provision, which MB Financial has done pursuant to its bylaws. Accordingly,
the MGCL control share acquisition statute does not apply to acquisitions of shares of MB Financial stock.
Certain Business Combinations.
The MB Financial charter
provides that certain business combinations (e.g., mergers, share exchanges, significant asset sales and significant stock issuances)
involving “interested stockholders” of MB Financial require, in addition to any vote required by law, the approval
of a majority of the voting power of the outstanding shares of MB Financial stock entitled to vote in the election of directors,
which we refer to as the MB Financial voting stock, that is not beneficially owned by the interested stockholder in question,
voting together as a single class, unless, in the case of such a business combination that does not involve any cash or other
consideration being received by the stockholders, a majority of the disinterested directors have approved the business combination
or, in all other cases, (1) a majority of the disinterested directors have approved the business combination or (2) certain fair
price and procedure requirements are satisfied. An “interested stockholder” generally means a person who is a greater
than 14.9% stockholder of MB Financial or who is an affiliate of MB Financial and at any time within the past two years was a
greater than 14.9% stockholder of MB Financial, excluding any holding company or subsidiary of MB Financial. The MB Financial
charter amendment voted on at the special meeting of MB Financial stockholders held on July 18, 2019 removed this provision effective
as of July 18, 2019.
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The Fifth Third articles and Fifth Third regulations contain
various provisions that could make more difficult a change in control of Fifth Third or discourage a tender offer or other plan
to restructure Fifth Third. The ability of Fifth Third to issue shares of Fifth Third preferred stock may have the effect of delaying,
deferring or preventing a change in control of Fifth Third. Additionally, Ohio law contains provisions that would also make more
difficult a change in control of Fifth Third or discourage a tender offer or other plan to restructure Fifth Third. The following
discussion of some of these provisions is qualified in its entirety by reference to those particular statutory and regulatory provisions.
Ohio Control Share Acquisition Act.
Section 1701.831
of the Ohio Revised Code, the Ohio Control Share Acquisition Act, provides that any “control share acquisition” of
an Ohio issuing public corporation shall be made only with the prior authorization of the shareholders of the issuing public corporation
in accordance with the provisions of the Ohio Control Share Acquisition Act. A “control share acquisition” is defined
under the Ohio Control Share Acquisition Act to mean the acquisition, directly or indirectly, by any person of shares of an issuing
public corporation that, when added to all other shares of the issuing public corporation such person owns, would entitle such
person, directly or indirectly, to exercise voting power in the election of directors within the following ranges: more than 20%;
more than 33%; and a majority.
The Ohio Control Share Acquisition Act requires that the acquiring
person must deliver an acquiring person statement to the Ohio issuing public corporation. The Ohio issuing public corporation must
then call a special meeting of its shareholders to vote upon the proposed acquisition within 50 days after receipt of such acquiring
person statement, unless the acquiring person agrees to a later date.
The Ohio Control Share Acquisition Act further specifies
that the shareholders of the Ohio issuing public corporation must approve the proposed control share acquisition by certain percentages
at a special meeting of shareholders at which a quorum is present. In order to comply with the Ohio Control Share Acquisition
Act, the acquiring person may only acquire the shares of the
Ohio issuing public corporation upon the affirmative vote of (1) a majority of the voting power of the shares of the Ohio issuing
public corporation at the election of directors that is represented in person or by proxy at the separate special meeting and
(2) a majority of the voting power of the shares of the Ohio issuing public corporation at the election of directors that is represented
in person or by proxy at the special meeting excluding those shares of the Ohio issuing public corporation deemed to be “interested
shares” for purposes of the Ohio Control Share Acquisition Act.
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The
MGCL contains a business combination statute that prohibits a business combination between a corporation and an interested stockholder
(for purposes of the MGCL business combination statute, a person who beneficially owns 10% or more of the voting power of the
corporation’s outstanding voting stock or an affiliate or associate of the corporation, who, at any time within the two-year
period immediately prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding
stock of the corporation) or an affiliate of an interested stockholder for a period of five years after the most recent date on
which the interested stockholder became an interested stockholder. After the five-year period has elapsed, a corporation subject
to the statute may not consummate a business combination with an interested stockholder unless (1) the transaction has been recommended
by the board of directors and (2) the transaction has been approved by (a) 80% of the votes entitled to be cast by holders of
outstanding shares of voting stock of the corporation and (b) two-thirds of the votes entitled to be cast other than shares owned
by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate
or associate of the interested stockholder. These super-majority vote requirements do not apply if the corporation’s common
stockholders receive a minimum price, as defined under the MGCL, for their shares in the form of cash or other consideration in
the same form as previously paid by the interested stockholder for its shares. The statute permits various exemptions from its
provisions, including business combinations that are exempted by the board of directors prior to the time that the interested
stockholder becomes an interested stockholder. MB Financial has opted-out of the MGCL business combination statute through a provision
in its charter.
The MB Financial charter generally prohibits MB Financial from
acquiring any of its own equity securities from a beneficial owner of 5% or more of the MB Financial voting stock unless: (i) the
acquisition is approved by the holders of a majority of the MB Financial voting stock not owned by the seller, voting together
as a single class; (ii) the acquisition is made as part of a tender or exchange offer by MB Financial or a subsidiary of MB Financial
to purchase securities of the same class on the same terms to all holders of such securities; (iii) the acquisition is pursuant
to an open market purchase program approved by a majority of the MB Financial Board of Directors, including a majority of the disinterested
directors; or (iv) the acquisition is at or below the market price of the equity securities and is approved by a majority of the
Board of Directors, including a majority of the disinterested directors.
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Ohio Merger Moratorium Statute.
Chapter 1704 of the Ohio
Revised Code prohibits an issuing public corporation from engaging in certain transactions with an interested shareholder for a
period of three years following the date on which the person became an interested shareholder unless, prior to such date, the directors
of the issuing public corporation approve either the transaction or the acquisition of shares pursuant to which such person became
an interested shareholder. Fifth Third is an issuing public corporation for purposes of the statute. An interested shareholder
is any person who is the beneficial owner of a sufficient number of shares to allow such person, directly or indirectly, alone
or with others, including affiliates and associates, to exercise or direct the exercise of 10% of the voting power of the issuing
public corporation in the election of directors.
The transactions restricted by Chapter 1704 include:
• any merger, consolidation,
combination or majority share acquisition between or involving an issuing public corporation and an interested shareholder or an
affiliate or associate of an interested shareholder;
• certain transfers of property,
dividends and issuance or transfers of shares from or by an issuing public corporation or a subsidiary of an issuing public corporation
to, with or for the benefit of an interested shareholder or an affiliate or associate of an interested shareholder unless such
transaction is in the ordinary course of business of the issuing public corporation on terms no more favorable to the interested
shareholder than those acceptable to third parties as demonstrated by contemporaneous transactions; and
• certain transactions
that (1) increase the proportionate share ownership of an interested shareholder, (2) result in the adoption of a plan or proposal
for the dissolution, winding up of the affairs or liquidation of the issuing public corporation if such plan is proposed by or
on behalf of the interested shareholder or (3) pledge or extend the credit or financial resources of the issuing public corporation
to or for the benefit of the interested shareholder.
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After the initial three-year moratorium has expired, an issuing
public corporation may engage in a transaction subject to Chapter 1704 if: (1) the acquisition of shares pursuant to which the
person became an interested shareholder received the prior approval of the board of directors of the issuing public corporation,
(2) the transaction subject to Chapter 1704 is approved by the affirmative vote of the holders of shares representing at least
two-thirds of the voting power of the issuing public corporation and by the holders of shares representing at least a majority
of voting shares that are not beneficially owned by an interested shareholder or an affiliate or associate of an interested shareholder
or (3) the transaction subject to Chapter 1704 meets certain statutory tests designed to ensure that it be economically fair to
all shareholders.
Ohio Tender Offer Procedures.
Ohio law also
provides that an offeror may not make a tender offer or request an invitation for tenders that would result in the offeror beneficially
owning more than 10% of any class of the target company’s equity securities unless such offeror files certain information
with the Ohio Division of Securities and provides such information to the target company and the offerees within Ohio. The Ohio
Division of Securities may suspend the continuation of the control bid if it determines that the offeror’s filed information
does not provide full disclosure to the offerees of all material information concerning the control bid. The statute also provides
that an offeror may not acquire any equity security of a target company within two years of the offeror’s previous acquisition
of any equity security of the same target company pursuant to a control bid unless the Ohio offerees may sell such security to
the offeror on substantially the same terms as provided by the previous control bid. The statute does not apply to a transaction
if either the offeror or the target company is a savings and loan or bank holding company and the proposed transaction requires
federal regulatory approval.
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Indemnification of Directors and Officers
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The MB Financial charter provides that MB Financial will indemnify
and advance expenses to its directors and officers to the fullest extent required or permitted by the MGCL. The MB Financial charter
also provides that MB Financial will indemnify other employees and agents to the extent authorized by the Board of Directors and
permitted by law.
The MGCL permits a corporation to indemnify its directors,
officers, employees and agents against judgments, penalties, fines, settlements and reasonable expenses actually incurred unless
it is proven that (1) the conduct of the person was material to the matter giving rise to the proceeding and the person acted
in bad faith or with active and deliberate dishonesty, (2) the person actually received an improper personal benefit or (3) in
the case of a criminal proceeding, the person had reason to believe that his conduct was unlawful. However, under the MGCL, a
Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right
of the corporation or for a judgment of liability on the basis that personal benefit was improperly received, unless in either
case a court orders indemnification and then only for expenses. The MGCL provides that unless otherwise provided in the corporation’s
charter, a director or officer (but not an employee or agent) who is successful on the merits or otherwise in defense of any proceeding
must be indemnified against reasonable expenses.
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Under the OGCL, a corporation may indemnify directors
and officers from liability, other than in an action by or in the right of the corporation, by reason of the fact that the person
is or was a director or officer, if such person acted in good faith and in a manner reasonably believed to be in or not opposed
to the best interests of the corporation, and with respect to any criminal action or proceeding, if such person had no reasonable
cause to believe his or her conduct was unlawful. In the case of an action by or in the right of a corporation, a person may not
be indemnified (1) for negligence or misconduct in the performance of his duty to the corporation, unless the court in which such
action was brought determines such person is fairly and reasonably entitled to indemnification or (2) if liability asserted against
such person concerns certain unlawful distributions. The indemnification provisions of the OGCL require indemnification of a director
who has been successful on the merits or otherwise in defense of any action
that he was a party to by reason of the fact that he is or was a director of the corporation. The indemnification authorized by
the OGCL is not exclusive and is in addition to any other rights granted to directors under the articles of incorporation or regulations
of the corporation or to any agreement between the directors and the corporation.
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The
MGCL provides that reasonable expenses incurred by a director, officer, employee or agent who is a party to a proceeding may be
paid by the corporation in advance of the final disposition of the proceeding if the corporation receives a written affirmation
from the person to receive the advancement of that person’s good faith belief that he or she has met the standard of conduct
necessary for indemnification and a written undertaking by the person to repay the advanced amount if it is ultimately determined
that he or she has not met the standard of conduct.
The MB Financial charter provides, consistent with the MGCL, that the rights to indemnification and to
the advancement of expenses conferred by the charter are not exclusive of any other right which a person may have under any statute,
the MB Financial charter, the MB Financial bylaws, any agreement, any vote of stockholders or the MB Financial Board of Directors,
or otherwise.
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Under
the Fifth Third regulations, Fifth Third will indemnify, to the fullest extent permitted by the OGCL, directors, officers and
employees who serve at the request of the President as directors, trustees, officers, employees or agents of another corporation,
partnership, joint venture, trust or other enterprise. Under the OGCL, in the case of a merger into Fifth Third of a constituent
corporation which, if its separate existence had continued, would have been required to indemnify directors, officers or employees
in specified situations prior to the merger, any person who served as a director, officer or employee of the constituent corporation,
or served at the request of the constituent corporation as a director, trustee, officer or employee of a bank, other corporation,
partnership, joint venture, trust or other enterprise, will be entitled to indemnification by Fifth Third (as the surviving entity)
for acts, omissions or other events or occurrences prior to the merger to the same extent he or she would have been entitled to
indemnification by the constituent corporation if its separate existence had continued.
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Limitation on Directors’ and Officers’
Liability
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Consistent with the MGCL, the MB Financial charter provides
that an officer or director shall not be liable to MB Financial or its stockholders for money damages, except to the extent:
• it is
proved that the person actually received an improper benefit or profit in money, property or services, for the amount of such benefit
or profit actually received;
• a judgment
or other final adjudication adverse to the person is entered based on a finding that the person’s action, or failure to act,
was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or
• otherwise
provided by the MGCL.
Under the MGCL, a director whose duties were not performed
in accordance with the standard of conduct for directors under the MGCL and who votes for or assents to a distribution made in
violation of the corporation’s charter or the MGCL is personally liable to the corporation for the amount of the excess
distribution.
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Under the OGCL, a director or officer shall be liable in damages
for any action that such person takes or fails to take in such capacity only if it is proved by clear and convincing evidence that
such person’s action or failure to act involved an act or omission undertaken with deliberate intent to cause injury to the
corporation or undertaken with reckless disregard for the best interests of the corporation, unless the corporation’s regulations
or articles (or in the case of an officer, a written agreement with the corporation) specifically waive such limitation. Neither
the Fifth Third articles nor the Fifth Third regulations specifically waive this limitation.
Under the OGCL, directors or officers are liable for the unlawful
payment of dividends or distribution of assets, improper dissolution of the corporation or entering into an unapproved loan with
any director, officer or shareholder of the corporation, unless acting in good faith in reliance upon the corporation’s financial
statements or upon sound accounting or business principles, or in accordance with a stated employee ownership plan approved by
the corporation.
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Amendments to Articles/Certificate of
Incorporation and Bylaws
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The MB Financial charter generally may be amended upon
approval by the MB Financial Board of Directors and the holders of a majority of the votes entitled to be cast by all classes of capital
stock outstanding and entitled to vote thereon. The MB Financial charter provides by its terms that it may be amended by the MB
Financial Board of Directors, without a stockholder vote, to change the number of shares of capital stock or the number of shares
of any class or series that MB Financial has authority to issue. Under the MGCL, the MB Financial charter may also be amended by
a majority of the entire MB Financial Board of Directors, without action by the stockholders, to change the name of MB Financial
or the name or par value of any class or series of stock of MB Financial.
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Ohio
law provides that except in certain circumstances, amendments to a corporation’s articles of incorporation must be
adopted by the affirmative vote of the holders of shares entitling them to exercise two-thirds
of the voting power of the corporation on the proposal or, if the articles provide or permit, by the affirmative vote of a greater
or lesser proportion, but not less than a majority, of this voting power, and by such affirmative vote of the holders of shares
of any particular class as is required by the articles. Except for amendments by the Fifth Third Board of Directors
concerning the fixing of the terms of any series of Fifth Third preferred stock, the Fifth Third articles contain no other provisions
concerning amendments.
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The MB Financial bylaws may be amended either by
the MB Financial Board of Directors, by a vote of a majority of the whole Board, or by MB Financial stockholders by the affirmative
vote of the holders of a majority of the voting power of all of the then-outstanding shares of capital stock of MB Financial entitled
to vote generally in the election of directors, voting together as a single class.
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The Fifth Third regulations may only be amended (1)
at a meeting of shareholders, by the affirmative vote of the holders of shares entitling them to exercise a majority of the voting
power of Fifth Third on such proposal, (2) without a meeting, by the written consent of the holders of shares entitling them to
exercise two-thirds of the voting power of Fifth Third on such proposal or (3) by the Fifth Third Board of Directors, to the extent
permitted by the OGCL.
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Appraisal Rights
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Under the MGCL, stockholders of a corporation generally are
entitled to dissent from certain transactions, including a merger or consolidation, and obtain payment of the fair value of their
shares (so-called “appraisal rights”). Appraisal rights do not apply if, however, any one of several exceptions apply,
including if the charter of the corporation provides that stockholders are not entitled to exercise rights of objecting stockholders
under the MGCL or generally if the stock is listed on a national securities exchange.
MB Financial held a special meeting of its stockholders
on July 18, 2019 to approve the MB Financial charter amendment, which clarified that MB Financial stockholders shall not
be entitled to exercise any rights of an objecting stockholder provided for under the MGCL. The affirmative vote of the
holders of a majority of the votes entitled to be cast by all classes of MB Financial capital stock outstanding and entitled
to vote on the MB Financial charter amendment was required to approve the MB Financial charter amendment. The MB Financial
charter amendment was approved at the MB Financial charter amendment special meeting and the MB Financial charter amendment
became effective on July 18, 2019, and MB Financial stockholders will not be entitled to exercise appraisal rights.
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Under Ohio law, shareholders have the right to dissent from
certain corporate actions and receive the fair cash value for their shares if they follow certain procedures. Shareholders entitled
to relief as dissenting shareholders under Ohio law include shareholders:
• dissenting
from certain amendments to the corporation’s articles of incorporation;
• of a corporation
where all or substantially all of the assets of the corporation are being leased, sold, exchanged, transferred or otherwise disposed
of outside of the ordinary course of its business;
• of a corporation
that is being merged or consolidated into a surviving or new entity;
• of a surviving
corporation in a merger who are entitled to vote on the adoption of an agreement of merger (but only as to the shares so entitling
them to vote);
• other than
the parent corporation, of an Ohio subsidiary corporation that is being merged into its parent corporation;
• of an acquiring
corporation in a combination or a majority share acquisition who are entitled to vote on such transaction (but only as to the shares
so entitling them to vote);
• of an Ohio
subsidiary corporation into which one or more domestic or foreign corporations are being merged; and
• of a domestic
corporation that is being converted.
Fifth Third’s shareholders do not have any appraisal
rights in connection with the merger.
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Stockholder Inspection Rights
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Under the MGCL, only a stockholder of record or group
of stockholders of record of 5% or more of the outstanding stock of any class of the corporation for at least six months has the
right to inspect the corporation’s stock ledger, list of stockholders and books of account (in the case of books of account,
for any purpose related to monitoring or protecting the holder’s or holders’ equity investment in the corporation).
Any stockholder is entitled to inspect the corporation’s bylaws, minutes of stockholder meetings, annual statement of affairs
and any voting trust agreements.
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Under the OGCL, any shareholder has the right to inspect the articles of the corporation, its regulations, its books and records of account, minutes, records of shareholders and voting trust agreements, if any, for any proper purpose upon delivering a written demand stating the purpose of such inspection. The directors may adopt guidelines and procedures in order to verify that the person making the demand to inspect the records of shareholders is a shareholder.
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Non-Stockholder Constituency Provision
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The MB Financial charter provides that when evaluating any offer
of another person to (1) make a tender or exchange offer for any equity security of MB Financial, (2) merge or consolidate MB Financial
with another corporation or entity or (3) acquire all or substantially all of the properties and assets of MB Financial, or when
evaluating any other transaction which would or may involve a change in control of MB Financial, the MB Financial Board of Directors
may, in exercising its business judgment as to what is in the best interests of MB Financial and its stockholders and in making
any recommendation to MB Financial stockholders, give due consideration to all relevant factors, including, but not limited to:
• the immediate
and long-term economic effect upon MB Financial stockholders, including stockholders, if any, who do not participate in the transaction;
• the social
and economic effect on the employees, creditors and customers of, and others dealing with, MB Financial and its subsidiaries and
on the communities in which MB Financial and its subsidiaries operate or are located;
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Under the OGCL, a director, in determining what he reasonably
believes to be in the best interests of the corporation, shall consider the interests of the corporation’s shareholders and,
in his discretion, may consider any of the following:
• the interests
of the corporation’s employees, suppliers, creditors and customers;
• the economy
of the state and nation;
• community
and societal considerations; and
• the long-term
as well as short-term interests of the corporation and its shareholders, including the possibility that these interests may be
best served by the continued independence of the corporation.
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• whether
the proposal is acceptable based on the historical, current or projected future operating results or financial condition of MB
Financial;
• whether
a more favorable price could be obtained for MB Financial’s stock or other securities in the future;
• the reputation
and business practices of the other entity to be involved in the transaction and its management and affiliates as they would affect
the employees of MB Financial and its subsidiaries;
• the future
value of the stock or any other securities of MB Financial or the other entity to be involved in the proposed transaction;
• any antitrust
or other legal and regulatory issues that are raised by the proposal;
• the
business and historical, current or expected future financial condition or operating results of the other entity to be involved
in the proposed transaction, including, but not limited to, debt service and other existing financial obligations, financial obligations
to be incurred in connection with the proposed transaction, and other likely financial obligations of the other entity to be involved
in the proposed transaction; and
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• the ability
of MB Financial to fulfill its objectives as a financial institution holding company and on the ability of its subsidiary financial
institution(s) to fulfill the objectives of a federally insured financial institution.
If the MB Financial Board of Directors determines that any proposed
transaction of the type described above should be rejected, it may take any lawful action to defeat the transaction, including,
but not limited to, any or all of the following:
• advising
stockholders not to accept the proposal;
• instituting
litigation against the party making the proposal;
• filing
complaints with governmental and regulatory authorities;
•
acquiring
the stock or any other securities of MB Financial;
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• increasing
the authorized capital stock of MB Financial;
• selling
or otherwise issuing authorized but unissued stock, other securities or granting options or rights with respect to authorized but
unissued stock;
• acquiring
a company to create an antitrust or other regulatory problem for the party making the proposal; and
• obtaining
a more favorable offer from another individual or entity.
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DESCRIPTION OF FIFTH THIRD CAPITAL STOCK
MB Financial preferred stockholders who receive shares of
the new Fifth Third preferred stock in the merger will become Fifth Third stockholders. Their rights as Fifth Third stockholders
will be governed by Ohio law and the Fifth Third articles and Fifth Third regulations. The following description of the material
terms of Fifth Third’s capital stock, including the new Fifth Third preferred stock to be issued in the merger, reflects
the anticipated state of affairs upon completion of the merger. We urge you to read the applicable provisions of Ohio law, the
Fifth Third articles and Fifth Third regulations and federal law governing bank holding companies carefully and in their entirety
because they describe your rights as a holder of the new Fifth Third preferred stock.
General
Fifth Third is authorized to issue a total of 2,001,000,000
shares of all classes of stock. Of the total number of authorized shares of stock, 2,000,000,000 shares are shares of common stock,
no par value, 500,000 shares are shares of preferred stock, no par value, which we refer to as the original Fifth Third preferred
stock, and 500,000 shares are shares of Class B preferred stock, no par value, which we refer to as the Fifth Third Class B preferred
stock. We refer to the original Fifth Third preferred stock and the Fifth Third Class B preferred stock collectively as the Fifth
Third preferred stock.
The Fifth Third Board of Directors is not classified.
Shares of Common Stock
Fifth Third may issue shares of common stock in such amounts
and proportion and for such consideration as may be fixed by its Board of Directors or a properly designated committee thereof.
As of the date of this prospectus/information statement, Fifth Third is authorized to issue up to 2,000,000,000 shares of common
stock. As of July 18, 2019, Fifth Third had issued 732,100,288 shares of its common stock (excluding 191,792,293 shares of common
stock held in treasury). Shares of Fifth Third common stock are traded on the NASDAQ under the symbol “FITB”. The
transfer agent and registrar for Fifth Third common stock is American Stock Transfer & Trust Company, LLC.
General
Holders of shares of Fifth Third common stock are not entitled
to preemptive or preferential rights. Shares of Fifth Third common stock have no redemption or sinking fund provisions applicable
thereto. Shares of Fifth Third common stock do not have any conversion rights. The rights of holders of shares of Fifth Third common
stock will be subject to, and may be adversely affected by, the rights of holders of shares of Fifth Third’s currently outstanding
Series H Preferred Stock, Series I Preferred Stock and Series J Preferred Stock and any shares of Fifth Third preferred stock that
Fifth Third may issue in the future, including shares of the new Fifth Third preferred stock.
Fifth Third may issue authorized but unissued shares of common
stock in connection with several employee benefit and stock option and incentive plans maintained by it or its subsidiaries.
The outstanding shares of Fifth Third common stock are fully
paid and non-assessable and shares of Fifth Third common stock that Fifth Third issues in the future, when fully paid for, will
be non-assessable.
Dividends
When, as and if dividends are declared by the Fifth Third Board
of Directors on the Fifth Third common stock out of funds legally available for their payment, the holders of shares of Fifth Third
common stock are entitled to share equally, share for share, in such dividends. The payment of dividends on shares of Fifth Third
common stock is subject to the prior payment of dividends on outstanding shares of the Fifth Third preferred stock.
Liquidation
In the event of Fifth Third’s voluntary or involuntary
liquidation, dissolution and winding-up, the holders of shares of Fifth Third common stock are entitled to receive on a share-for-share
basis, any of Fifth Third’s assets or funds available for distribution after Fifth Third has paid in full all of its debts
and distributions and the full liquidation preferences of all series of shares of outstanding Fifth Third preferred stock.
Voting Rights
Subject to the rights, if any, of the holders of shares of any
series of the Fifth Third preferred stock, holders of shares of Fifth Third common stock have voting rights and are entitled to
one vote for each share of common stock on all matters voted upon by Fifth Third stockholders. Upon demand, holders of shares of
Fifth Third common stock have the right to cumulate their voting power in the election of directors under certain conditions.
Change of Control
Articles of Incorporation and Code of Regulations
. The
Fifth Third articles and Fifth Third regulations contain various provisions that could discourage or delay attempts to gain control
of Fifth Third, including, among others, provisions that:
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authorize
the Fifth Third Board of Directors to fix its size between 10 and 30 directors;
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provide that directors
may be removed only for cause and only by a vote of the holders of a majority of the voting power of all of the then-outstanding
shares of capital stock of Fifth Third entitled to vote generally in the election of directors, voting together as a single
class; and
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authorize directors
to fill vacancies on the Fifth Third Board of Directors that occur between annual stockholder meetings, except for vacancies
caused by a director’s removal by a stockholder vote.
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In addition, the ability of the Fifth Third Board of Directors
to issue authorized but unissued common shares or preferred stock could have an anti-takeover effect.
In order to amend the Fifth Third articles, the affirmative
vote of the holders of shares entitling them to exercise two-thirds of the voting power of Fifth Third is required. In order to
amend the Fifth Third regulations, the affirmative vote of the holders of shares entitling them to exercise a majority of the voting
power of Fifth Third is required at a meeting of stockholders, or by written consent of the holders of shares entitling them to
exercise two-thirds of the voting power of Fifth Third without a meeting. The Fifth Third regulations may also be altered and amended,
from time to time, by the Fifth Third Board of Directors to the extent permitted by the Ohio General Corporation Law.
Federal Bank Regulatory Limitations
. The ability of a
third party to acquire Fifth Third’s stock is also limited under applicable U.S. banking laws, including regulatory approval
requirements. Under the Change in Bank Control Act of 1978, as amended, and the Federal Reserve Board’s regulations thereunder,
any person, either individually or acting through or in concert with one or more persons, is prohibited from acquiring “control”
of a bank holding company unless:
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the Federal Reserve
Board has been given 60 days’ prior written notice of the proposed acquisition; and
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within
that time period or a longer time period if the Federal Reserve Board extends the period during which such a disapproval may
be issued, the Federal Reserve Board does not issue a notice disapproving the proposed acquisition.
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An acquisition of control may be made before expiration of the
disapproval period if the Federal Reserve Board issues written notice that it intends not to disapprove the action. The acquisition
of more than 10% of a class of voting securities of a bank holding company with publicly held securities, such as Fifth Third,
generally would constitute the acquisition of control of the bank holding company under the Change in Bank Control Act. An acquisition
of control is not subject to the Change in Bank Control Act notice requirement if it is otherwise subject to approval under the
Bank Merger Act or Section 3 of the BHC Act.
Under the BHC Act, and the Federal Reserve Board’s regulations
thereunder, any bank holding company would be required to obtain the approval of the Federal Reserve Board before acquiring, directly
or indirectly, more than 5% of the outstanding shares of any class of Fifth Third voting securities. In addition, any “company,”
as defined in the BHC Act, other than a bank holding company, would be required to obtain Federal Reserve Board approval before
acquiring “control” of Fifth Third. “Control” for purposes of the BHC Act generally means:
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the
ownership or control of 25% or more of a class of voting securities;
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the ability to elect
a majority of the directors; or
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the
ability otherwise to exercise a controlling influence over management and policies.
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A person, other than an individual, that controls Fifth Third
for purposes of the BHC Act is subject to regulation and supervision as a bank holding company under the BHC Act.
For purposes of the Federal Reserve Board approval requirements
described above, shares of stock issued by a single issuer are deemed to be the same class of voting shares, regardless of differences
in dividend rights or liquidation preference, if the shares are voted together as a single class on all matters for which the shares
have voting rights other than certain matters that affect solely the rights or preferences of the shares. In addition to assessing
the number of voting securities owned by an investor, the Federal Reserve Board also likely would assess the voting power associated
with an investor’s voting securities when determining what proportion of a class of voting securities is controlled by the
investor. Determinations of what constitutes a class of voting securities and calculations of the proportion of a class of voting
securities that is controlled by an investor are made by the Federal Reserve pursuant to applicable law, applicable regulations
and its practices. The foregoing discussion is not intended to describe all laws, regulations and regulatory practices relevant
to federal bank regulatory approval requirements.
Ohio Law
.
Ohio law contains provisions that also
could make more difficult a change of control of Fifth Third or discourage a tender offer or other plan to restructure Fifth Third.
The following discussion of some of these provisions is qualified in its entirety by reference to those particular statutory and
regulatory provisions.
Control Share Acquisition Act
. The Ohio Control Acquisition
Act provides that any “control share acquisition” of an Ohio issuing public corporation may be made only with the prior
authorization of the stockholders of the corporation in accordance with the provisions of the Control Share Acquisition Act, unless
the corporation’s articles of incorporation or regulations provide that the Control Share Acquisition Act does not apply
to control share acquisition of its shares. The Fifth Third articles and Fifth Third regulations do not so provide, and accordingly
Fifth Third is subject to the Control Share Acquisition Act. Subject to certain exceptions, a “control share acquisition”
means the acquisition, directly or indirectly, by any person of shares of the corporation that, when added to all other shares
in respect to which the person exercises voting power, would entitle that person, directly or indirectly, to exercise voting power
in the election of directors within the following ranges:
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20% or more, but
less than one-third;
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one-third
or more, but less than a majority; or
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a majority or more.
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The Control Share Acquisition Act also requires that the acquiring
person deliver an acquiring person statement to the corporation. The corporation must call a special meeting of its stockholders
to vote upon the proposed acquisition within 50 days after receipt of the acquiring person statement, unless the acquiring person
agrees to a later date.
The Control Share Acquisition Act further specifies that the
stockholders must approve the proposed control share acquisition by certain percentages at a special meeting of stockholders at
which a quorum is present. In order to comply with the Control Share Acquisition Act, the acquiring person may acquire shares only
upon the affirmative vote of:
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a majority of the voting power of the corporation entitled to vote in the election of directors that is represented in person or by proxy at the separate special meeting; and
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a majority of the voting power of the corporation entitled to vote in the election of directors that is represented in person or by proxy at the special meeting excluding those shares deemed to be “interested shares” for purposes of the Control Share Acquisition Act.
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“Interested shares” are shares the voting power
of which in the election of directors is controlled by:
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an acquiring person;
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any officer of the corporation;
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any employee who is also a director of the corporation; or
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any person who transfers such shares for value after the record date for the special meeting, if accompanied by the voting power in the form of a blank proxy, an agreement to vote as instructed by the transferee, or otherwise.
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“Interested shares” also includes shares that are
acquired by any person during the period beginning on the date of the first public disclosure of a proposed control share acquisition
or any proposed merger, consolidation or other transaction that would result in a change of control of the corporation or all or
substantially all of its assets and ending on the record date for the special meeting if either:
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the aggregate consideration paid by the person (and any other person acting in concert with the person) for shares of the corporation’s common shares exceeds $250,000; or
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the number of shares acquired by the person (and any other person acting in concert with the person) exceeds one-half of 1% of the outstanding shares of the corporation’s voting power entitled to vote in the election of directors.
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In order to comply with the Control Share Acquisition Act, the
proposed control share acquisition must be completed no later than 360 days following stockholder authorization.
Merger Moratorium Statute
.
Ohio corporation law
prohibits an issuing public corporation, such as Fifth Third, from engaging in certain transactions with an interested stockholder
for a period of three years following the date on which the person became an interested stockholder unless, prior to such date,
the directors of the corporation approve either the transaction or the acquisition of shares pursuant to which such person became
an interested stockholder. An interested stockholder is any person who is the beneficial owner of a sufficient number of shares
to allow such person, directly or indirectly, alone or with others, including affiliates and associates, to exercise or direct
the exercise of 10% of the voting power of the corporation in the election of directors.
The transactions covered include:
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any
merger, consolidation, combination or majority share acquisition between or involving the corporation or a subsidiary and
an interested stockholder or an affiliate or associate of an interested stockholder;
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certain transfers
of property, dividends and issuance or transfers of shares, from or by the corporation or a subsidiary to, with or for the
benefit of an interested stockholder or an affiliate or associate of an interested stockholder, unless the transaction is
in the ordinary course of the corporation’s business and on terms no more favorable to the interested stockholder than
those acceptable to third parties as demonstrated by contemporaneous transactions; and
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certain transactions
which:
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increase the proportionate share ownership of an interested stockholder;
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result in the adoption of a plan, proposed by or on behalf of the interested stockholder, providing for the dissolution, winding-up of the affairs, or liquidation of the corporation; or
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pledge or extend the credit or financial resources of the corporation to or for the benefit of the interested stockholder.
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After the initial three-year moratorium has expired, the corporation
may engage in a covered transaction if:
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the acquisition of shares pursuant to which the relevant person became an interested stockholder received the prior approval of the Board of Directors;
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the transaction is approved by the affirmative vote of the holders of shares representing at least two-thirds of the voting power of the corporation in the election of directors and by the holders of shares representing at least a majority of voting shares that are not beneficially owned by an interested stockholder or an affiliate or associate of an interested stockholder; or
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the transaction meets certain statutory tests designed to ensure that it is economically fair to all stockholders.
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Tender Offer Procedures
. Ohio corporation law also provides
that an offeror may not make a tender offer that would result in the offeror beneficially owning more than 10% of any class of
the corporation’s equity securities without first filing certain information with the Ohio Division of Securities and providing
such information to the corporation and stockholders within Ohio. The Ohio Division of Securities may suspend the continuation
of the tender offer if it determines that the offeror’s filed information does not provide full disclosure to the offerees
of all material information concerning the tender offer. The statute also provides that an offeror may not acquire any equity security
of the corporation within two years of the offeror’s previous acquisition of any equity security of the corporation pursuant
to a tender offer unless the Ohio stockholders may sell such security to the offeror on substantially the same terms as the previous
tender offer. The statute does not apply to a transaction if either the offeror or the target corporation is a savings and loan
or bank holding company and the proposed transaction requires federal regulatory approval. Consequently, this Ohio statute will
only apply if the proposed transaction does not trigger prior approval requirements discussed above under “Federal Bank Regulatory
Limitations.”
Dissenter’s Rights
. Under Ohio law, stockholders
have the right to dissent from certain corporate actions and receive the fair cash value for their shares if they follow certain
procedures. Stockholders entitled to relief as dissenting stockholders under Ohio law include stockholders:
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dissenting from certain amendments to the corporation’s articles of incorporation;
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of a corporation where all or substantially all of the assets of the corporation are being leased, sold, exchanged, transferred or otherwise disposed of outside of the ordinary course of its business;
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of a corporation that is being merged or consolidated into a surviving or new entity;
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of a surviving corporation in a merger who are entitled to vote on the adoption of an agreement of merger (but only as to the shares so entitling them to vote);
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other than the parent corporation, of an Ohio subsidiary corporation that is being merged into its parent corporation;
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of an acquiring corporation in a combination or a majority share acquisition who are entitled to vote on such transaction (but only as to the shares so entitling them to vote);
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of an Ohio subsidiary corporation into which one or more domestic or foreign corporations are being merged; and
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of a domestic corporation that is being converted.
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The existence of the above provisions could potentially result
in Fifth Third being less attractive to a potential acquiror, or result in our stockholders receiving less for their common stock
than otherwise might be available if there is a takeover attempt.
Ohio law has eliminated dissenter’s rights in connection
with the above corporate actions if the shares of the corporation for which a stockholder would make a demand are listed on a national
securities exchange and no proceedings are underway to delist the shares. Therefore, none of the Fifth Third stockholders who own
shares of Fifth Third stock listed on a national securities exchange could exercise dissenter’s rights with respect to such
shares unless, and until, such shares would be delisted.
Shares of the Original Fifth Third Preferred Stock
The Fifth Third Board of Directors has the right to adopt amendments
to the Fifth Third articles in respect of any unissued or treasury shares of the original Fifth Third preferred stock and fix or
change: (1) the division of such shares of the original Fifth Third preferred stock into series and the designation and authorized
number of shares of each series; (2) the dividend rate; (3) whether dividend rights shall be cumulative or non-cumulative; (4)
the dates of payment of dividends and the dates from which they are cumulative; (5) liquidation price; (6) redemption rights and
price; (7) sinking fund requirements; and (8) conversion rights; and restrictions on the issuance of such shares or any series
thereof.
As of July 18, 2019, 54,000 shares of the original
Fifth Third preferred stock were outstanding as described below, and 446,000 shares of undesignated preferred stock were
authorized and unissued.
Series H Preferred Stock
In May 2013, Fifth Third issued 600,000 depositary shares, each
representing a 1/25th ownership interest in a share of Series H Preferred Stock. The Series H Preferred Stock: (i) is nonvoting,
other than class voting rights on certain matters that could adversely affect the shares; (ii) pays a non-cumulative fixed-to-floating
rate dividend; and (iii) is not redeemable, except, subject to receiving all required regulatory approvals, at Fifth Third’s
option (1) in whole or in part, at any time, or from time to time, on or after June 30, 2023, and (2) in whole, but not in part,
at any time prior to June 30, 2023, following the occurrence of a “regulatory capital event,” as defined with respect
to the Series H Preferred Stock in the Fifth Third articles.
Through, but excluding June 30, 2023, dividends on the Series
H Preferred Stock will accrue, on a non-cumulative basis, at an annual rate of 5.10%. Commencing on June 30, 2023 and continuing
for so long as any shares of Series H Preferred Stock remain outstanding, dividends on the Series H Preferred Stock will accrue,
on a non-cumulative basis, at an annual rate equal to three-month LIBOR, reset quarterly, plus 3.033%. The Series H Preferred Stock
ranks senior to shares of Fifth Third common stock in the event of liquidation or dissolution of Fifth Third. In the event of the
liquidation or dissolution of Fifth Third, holders of shares of the Series H Preferred Stock are entitled to a liquidation preference
of $25,000 per share, plus any declared and unpaid dividends, before any distribution of assets is made to holders of shares of
Fifth Third common stock.
As of July 18, 2019, 600,000 depositary shares, each
representing a 1/25
th
ownership interest in a share of Series H Preferred Stock, were issued and
outstanding.
Series I Preferred Stock
In December 2013, Fifth Third issued 18,000,000 depositary shares,
each representing a 1/1000th ownership interest in a share of Series I Preferred Stock. The Series I Preferred Stock: (i) is nonvoting,
other than class voting rights on certain matters that could adversely affect the shares; (ii) pays a non-cumulative fixed-to-floating
rate dividend; and (iii) is not redeemable, except, subject to receiving all required regulatory approvals, at Fifth Third’s
option (1) in whole or in part, at any time, or from time to time, on or after December 31, 2023, and (2) in whole, but not in
part, at any time prior to December 31, 2023, following the occurrence of a “regulatory capital event,” as defined
with respect to the Series I Preferred Stock in the Fifth Third articles.
Through, but excluding December 31, 2023, dividends on the Series
I Preferred Stock will accrue, on a non-cumulative basis, at an annual rate of 6.625%. Commencing on December 31, 2023 and continuing
for so long as any shares of Series I Preferred Stock remain outstanding, dividends on the Series I Preferred Stock will accrue,
on a non-cumulative basis, at an annual rate equal to three-month LIBOR, reset quarterly, plus 3.71%. The Series I Preferred Stock
ranks senior to shares of Fifth Third common stock in the event of liquidation or dissolution of Fifth Third. In the event of the
liquidation or dissolution of Fifth Third, holders of shares of the Series I Preferred Stock are entitled to a liquidation preference
of $25,000 per share, plus any declared and unpaid dividends, before any distribution of assets is made to holders of shares of
Fifth Third common stock.
As of July 18, 2019, 18,000,000 depositary shares,
each representing a 1/1000th ownership interest in a share of Series I Preferred Stock, were issued and outstanding. The
depositary shares representing the Series I Preferred Stock are traded on the NASDAQ Global Select Market under the symbol
“FITBI”.
Series J Preferred Stock
In June 2014, Fifth Third issued 300,000 depositary shares,
each representing a 1/25th ownership interest in a share of Series J Preferred Stock. The Series J Preferred Stock: (i) is nonvoting,
other than class voting rights on certain matters that could adversely affect the shares; (ii) pays a non-cumulative fixed-to-floating
rate dividend; and (iii) is not redeemable, except, subject to receiving all required regulatory approvals, at Fifth Third’s
option (1) in whole or in part, at any time, or from time to time, on or after September 30, 2019, and (2) in whole, but not in
part, at any time prior to September 30, 2019, following the occurrence of a “regulatory capital event,” as defined
with respect to the Series J Preferred Stock in the Fifth Third articles.
Through, but excluding September 30, 2019, dividends on the
Series J Preferred Stock will accrue, on a non-cumulative basis, at an annual rate of 4.90%. Commencing on September 30, 2019 and
continuing for so long as any shares of Series J Preferred Stock remain outstanding, dividends on the Series J Preferred Stock
will accrue, on a non-cumulative basis, at an annual rate equal to three-month LIBOR, reset quarterly, plus 3.129%. The Series
J Preferred Stock ranks senior to shares of Fifth Third common stock in the event of liquidation or dissolution of Fifth Third.
In the event of the liquidation or dissolution of Fifth Third, holders of shares of the Series J Preferred Stock are entitled to
a liquidation preference of $25,000 per share, plus any declared and unpaid dividends, before any distribution of assets is made
to holders of shares of Fifth Third common stock.
As of July 18, 2019, 300,000 depositary shares, each
representing a 1/25th ownership interest in a share of Series J Preferred Stock, were issued and outstanding.
Shares of the Fifth Third Class B Preferred Stock
The Fifth Third Board of Directors has the right to adopt amendments
to the Fifth Third articles in respect of any unissued or treasury shares of the Fifth Third Class B preferred stock and fix or
change: (1) dividend or distribution rights, which may be cumulative or non-cumulative; at a specified rate amount or proportion;
with or without further participation rights; and in preference to, junior to, or on a parity, in whole or in part, with dividend
or distribution rights of shares of any other class; (2) liquidation rights, preferences and price; (3) redemption rights and price;
(4) sinking fund requirements, which may require Fifth Third to provide a sinking fund out of earnings or otherwise for the purchase
or redemption of the shares or for dividends or distributions on them; (5) voting rights, which may be full, limited or denied,
except as otherwise required by law; (6) preemptive rights, or the denial or limitation of them; (7) conversion rights; (8) restrictions
on the issuance of shares; (9) rights of alteration of express terms; (10) the division of any class of shares into series; (11)
the designation and authorized number of shares of each series; and (12) any other relative, participating, optional or other special
rights and privileges on, and qualifications or restrictions on, the rights of holders of shares of any class or series of the
Fifth Third Class B preferred stock.
As of July 18, 2019, no shares of the Class B Fifth Third
preferred stock were outstanding, and 500,000 shares of undesignated no par value Class B preferred stock were authorized and
unissued.
6.00% Non-Cumulative Perpetual Class B Preferred Stock,
Series A
Pursuant to the merger agreement and in connection with the
merger, Fifth Third will file with the Secretary of State of the State of Ohio the amended articles designating the new Fifth Third
preferred stock.
The shares of the new Fifth Third preferred stock will not be
convertible into, or exchangeable for, shares of any other class or series of Fifth Third’s shares or other securities and
will not be subject to any sinking fund or other obligation to redeem or repurchase. The new Fifth Third preferred stock represents
non-withdrawable capital, will not be an account of an insurable type, and will not be insured or guaranteed by the FDIC or any
other governmental agency or instrumentality.
The shares of the new Fifth Third preferred stock will rank,
as to the payment of dividends and/or distribution of assets upon Fifth Third’s liquidation, dissolution or wind-up, senior
to shares of Fifth Third common stock and either junior, senior or equal to any other class or series of shares issued by Fifth
Third that are designated as junior, senior or equal to the new Fifth Third preferred stock. The new Fifth Third preferred stock
will rank on parity, as to dividends and, upon liquidation, dissolution or winding-up of Fifth Third, in the distribution of assets,
with the outstanding Series H Preferred Stock, Series I Preferred Stock and Series J Preferred Stock.
Holders of the shares of the new Fifth Third preferred stock
will be entitled to receive, when, as and if declared by the Fifth Third Board of Directors out of funds legally available therefor,
non-cumulative cash dividends on the liquidation preference amount of $1,000 per share at a rate of 6.00% per annum. Dividends
on shares of the new Fifth Third preferred stock will be payable quarterly in arrears on each of March 31st, June 30th, September
30th and December 31st, with respect to the quarterly dividend period (or portion thereof) ending on the day preceding such respective
dividend payment date. The first dividend payable on shares of the new Fifth Third preferred stock will accrue starting on August
25, 2019 and, if declared by the Fifth Third Board of Directors, will be paid on September 30, 2019. When dividends are not paid
in full upon the shares of the new Fifth Third preferred stock and the new Fifth Third preferred stock parity securities, if any,
all dividends declared upon shares of the new Fifth Third preferred stock and the new Fifth Third preferred stock parity securities,
if any, will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the
same ratio that accrued dividends for the new Fifth Third preferred stock, and accrued dividends, including any accumulations,
on the Fifth Third preferred stock parity securities, if any, bear to each other for the then current dividend period.
The new Fifth Third preferred stock will not be subject to any
mandatory redemption, sinking fund or other similar provisions. The holders of shares of the new Fifth Third preferred stock will
not have the right to require the redemption or repurchase of shares of the new Fifth Third preferred stock.
The shares of the new Fifth Third preferred stock will be redeemable
by Fifth Third at its option (i) on any dividend payment date on or after November 25, 2022, in whole or in part, from time to
time, or (ii) within 90 days following the occurrence of a “regulatory capital treatment event,” as defined with respect
to the new Fifth Third preferred stock in the Fifth Third articles of incorporation, in whole but not in part, at any time, in
each case at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends on the shares of the new Fifth
Third preferred stock called for redemption. Dividends will cease to accrue on those shares on and after the redemption date. Redemption
of the shares of the new Fifth Third preferred stock is subject to Fifth Third’s receipt of any required prior approvals
from the Federal Reserve and to the satisfaction of any conditions set forth in the capital guidelines of the Federal Reserve applicable
to the redemption of the shares of the new Fifth Third preferred stock. However, unless the full dividends for the most recently
completed dividend period have been declared or paid on all outstanding shares of the new Fifth Third preferred stock, during a
dividend period, (i) no shares of capital stock ranking junior to the new Fifth Third preferred stock shall be repurchased, redeemed
or otherwise acquired for consideration by Fifth Third, subject to certain exceptions, nor shall any monies be paid to or made
available for a sinking fund for the redemption of any such shares by Fifth Third, and (ii) no shares of capital stock ranking
equal to the new Fifth Third preferred stock shall be repurchased, redeemed or otherwise acquired for consideration by Fifth Third,
other than pursuant to pro rata offers to purchase all, or a pro rata portion of the new Fifth Third preferred stock and such shares
ranking equal to the new Fifth Third preferred stock, except by conversion into or exchange for shares of capital stock ranking
junior to the new Fifth Third preferred stock.
In the event Fifth Third liquidates, dissolves or winds up its
business and affairs, either voluntarily or involuntarily, holders of shares of the new Fifth Third preferred stock will be entitled
to receive liquidating distributions of $1,000 per share, plus any declared and unpaid dividends, before Fifth Third makes any
distribution of assets to the holders of shares of Fifth Third common stock or any other class or series of shares ranking junior
to shares of the new Fifth Third preferred stock with respect to the distribution of assets. If the assets of Fifth Third are not
sufficient to pay in full all amounts payable, including declared but unpaid dividends, with respect to shares of the new Fifth
Third preferred stock and shares of any stock having the same rank as the new Fifth Third preferred stock with respect to the distribution
of assets, the holders of shares of the new Fifth Third preferred stock and shares of that other stock will share in any distribution
of assets in proportion to the respective aggregate liquidation preferences to which they are entitled. After the holders of shares
of the new Fifth Third preferred stock and shares of any stock having the same rank as the new Fifth Third preferred stock are
paid in full, they will have no right or claim to any of Fifth Third’s remaining assets.
Holders of shares of the new Fifth Third preferred stock will
vote together with holders of share of Fifth Third common stock as a single class on all matters on which the holders of shares
of Fifth Third common stock are entitled to vote, with the holders of shares of the new Fifth Third preferred stock being entitled
to 24 votes for each share of the new Fifth Third preferred stock standing in such holder’s name on the books of Fifth Third
and the holders of shares of Fifth Third common stock being entitled to one vote per share of Fifth Third common stock.
In addition, so long as there are any shares of the new Fifth
Third preferred stock outstanding, the affirmative vote of the holders of at least two-thirds of all of the shares of the new Fifth
Third preferred stock at the time outstanding, voting together as a single class, will be required to: (1) amend, alter or repeal
the provisions of the Fifth Third articles or the Fifth Third regulations so as to adversely affect the powers, preferences, privileges
or special rights of the new Fifth Third preferred stock, subject to certain exceptions; (2) amend or alter the Fifth Third articles
to authorize or increase the authorized amount of or issue shares of any class or series of stock, or reclassify any of Fifth Third’s
authorized capital stock into any shares of capital stock, ranking senior to the new Fifth Third preferred stock with respect to
payment of dividends or the distribution of assets upon liquidation, dissolution or winding-up of Fifth Third, or issue any obligation
or security convertible into or evidencing the right to purchase any such shares of senior stock; or (3) consummate a binding share
exchange, a reclassification involving the new Fifth Third preferred stock or a merger or consolidation of Fifth Third with or
into another entity, unless (i) the new Fifth Third preferred stock remains outstanding or, in the case of any such merger or consolidation
with respect to which Fifth Third is not the surviving or resulting entity, is converted into or exchanged for preferred securities
of the surviving or resulting entity (or its ultimate parent), and (ii) the new Fifth Third preferred stock remaining outstanding
or the new preferred securities, as the case may be, have such powers, preferences and special rights that will not be materially
less favorable to the holders thereof than the powers, preferences and special rights of the new Fifth Third preferred stock, taken
as a whole.
If and whenever dividends payable on the shares of the new Fifth
Third preferred stock shall have not been paid in an aggregate amount equal to full dividends for six or more dividend periods
(whether or not consecutive), which we refer to as a nonpayment event, the authorized number of directors then constituting the
Fifth Third Board of Directors shall be automatically increased by two and the holders of shares of the new Fifth Third preferred
stock, together with the holders of any other class or series of outstanding shares of Fifth Third preferred stock upon which similar
voting rights as described in this section have been conferred and are exercisable with respect to such matter, which we refer
to as the voting parity stock, voting together as a single class in proportion to their respective liquidation preferences, shall
be entitled to elect, by a plurality of the votes cast, the two additional directors. When dividends have been paid in full on
the new Fifth Third preferred stock for at least four consecutive dividend periods, then the right of the holders of shares of
the new Fifth Third preferred stock to elect the two additional directors will terminate.
The holders of shares of the new Fifth Third preferred stock
have exclusive rights on any amendment to the Fifth Third charter that would only alter the contract rights of the shares of the
new Fifth Third preferred stock.
Except as set forth above, the shares of the new Fifth Third
preferred stock will not have any voting rights except as required by Ohio law.
The new Fifth Third preferred stock will have substantially
the same terms as MB Financial preferred stock, and in any event, the powers, preferences and special rights of the new Fifth Third
preferred stock will not be materially less favorable to the holders of shares of MB Financial preferred stock than the powers,
preferences and special rights of the MB Financial preferred stock, taken as a whole. There are certain differences that are not
material, such as (i) the MB Financial preferred stock has a par value of $0.01 per share and the new Fifth Third preferred stock
has no par value and (ii) dividend payment dates. If declared by the MB Financial Board of Directors, dividends are currently payable
on shares of MB Financial preferred stock quarterly, in arrears, on February 25, May 25, August 25 and November 25 of each year.
If declared by the Fifth Third Board of Directors, dividends will be payable on shares of the new Fifth Third preferred stock quarterly,
in arrears, on March 31, June 30, September 30 and December 31 of each year.
The shares of the new Fifth Third preferred stock will be
deposited with American Stock Transfer & Trust Company, LLC, which we refer to as the depositary. The depositary will
issue depositary shares, in respect thereof each representing a 1/40
th
interest in one share of the new Fifth
Third preferred stock and represented by depositary receipts. The current deposit agreement among MB Financial, the
depositary and the holders of the depositary receipts evidencing the depositary shares representing interests in the MB
Financial preferred stock will be amended so that Fifth Third will replace MB Financial as the party to such agreement and
the shares of the new Fifth Third preferred stock will replace the shares of the MB Financial preferred stock as the shares
deposited under such agreement. We refer to this amended deposit agreement as the amended deposit agreement. The amended
deposit agreement will set forth the various rights and obligations of the parties thereto and establish the relationships
between Fifth Third as the issuer, the depositary and calculation agent, and the transfer agent and registrar. Subject to the
terms of the amended deposit agreement, each holder of a depositary share will be entitled, through the depositary, in
proportion to the applicable fraction of a share of the new Fifth Third preferred stock represented by such depositary share,
to all the rights and preferences of the new Fifth Third preferred stock represented thereby (including dividend, voting,
redemption and liquidation rights, as applicable). Fifth Third will seek to cause the depositary shares
representing interests in the new Fifth Third preferred stock to be approved for listing on the NASDAQ.
Please refer to “—
Federal Bank Regulatory Limitations
”
above for information regarding certain regulatory approval requirements under applicable U.S. banking laws that apply to certain
acquisitions of voting securities, including the new Fifth Third preferred stock. If the Federal Reserve Board were to determine
that, for purposes of such regulatory approvals, the new Fifth Third preferred stock represents a separate class of voting securities
distinct from the common stock, including as a result of the holders of the new Fifth Third preferred stock becoming entitled to
vote for the election of additional directors because dividends are in arrears, such regulatory approvals could be required based
on solely a shareholder’s proportionate ownership of the new Fifth Third preferred stock.
APPRAISAL RIGHTS
MB Financial held a special meeting of its stockholders
on July 18, 2019 to vote on a proposal to amend the MB Financial charter to (i) clarify that MB Financial stockholders shall not
be entitled to exercise any rights of an objecting stockholder provided for under the Maryland General Corporation Law and (ii)
remove provisions relating to the approval of certain business combinations with an interested stockholder (as defined in the
MB Financial charter) in their entirety. The affirmative vote of the holders of a majority of the votes entitled to be cast by
all classes of MB Financial capital stock outstanding and entitled to vote on the MB Financial charter amendment proposal, voting
together as a single class, was required to approve the MB Financial charter amendment proposal. The MB Financial charter amendment
proposal was approved at the MB Financial charter amendment special meeting and the MB Financial charter amendment became effective
on July 18, 2019. As such, MB Financial stockholders will not be entitled to appraisal rights in connection with the merger.
EXPERTS
The
consolidated financial statements incorporated in this prospectus by reference from Fifth Third Bancorp’s Annual Report
on Form 10-K for the year ended December 31, 2018, and the effectiveness of Fifth Third Bancorp’s internal control over
financial reporting as of December 31, 2018, have been audited by Deloitte & Touche LLP, an independent registered public
accounting firm, as stated in their reports (which reports (1) express an unqualified opinion on the financial statements and
include an explanatory paragraph regarding Fifth Third Bancorp’s election to retrospectively change the accounting for qualifying
Low-Income Housing Tax Credit investments from the equity method to the proportional amortization method and (2) express an unqualified
opinion on the effectiveness of internal control over financial reporting), which are incorporated herein by reference. Such consolidated
financial statements have been so incorporated in reliance upon the reports of such firm given upon their authority as experts
in accounting and auditing.
LEGAL OPINIONS
Based on customary representations made by Fifth Third and
MB Financial, Davis Polk & Wardwell LLP expects to deliver at or prior to the completion of the merger, an opinion to Fifth
Third as to certain United States federal income tax consequences of the merger. See
“Material United States Federal
Income Tax Consequences of the Merger”
beginning on page 28.
The legality of the new Fifth Third preferred stock offered
by this prospectus/information statement will be passed upon for Fifth Third by Thompson Hine LLP.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows Fifth Third to incorporate certain information
into this prospectus/information statement by reference to other information that has been filed with the SEC. The information
incorporated by reference is deemed to be part of this prospectus/information statement, except for any information that is superseded
by information in this prospectus/information statement. The documents that are incorporated by reference contain important information
about Fifth Third and you should read this prospectus/information statement together with any other documents incorporated by reference
in this prospectus/information statement.
This prospectus/information statement incorporates by reference
the following documents that have previously been filed with the SEC by Fifth Third (File No. 001-33653), other than information
furnished pursuant to Item 2.02 or Item 7.01 on a Current Report on Form 8-K or otherwise not deemed to be filed:
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Annual Report on Form 10-K for the year ended December 31, 2018;
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•
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Proxy Statement on Schedule 14A for the 2019 annual meeting of stockholders filed on March 6, 2019;
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•
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Quarterly Report on Form 10-Q for the quarter ended March 31, 2018; and
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Current Reports on Form 8-K filed on January 22, 2019,
January 25, 2019, March 7, 2019, March 11, 2019, 2018, March 15, 2019, March 18, 2019,
March 22, 2019, April 16, 2019, April 26, 2019, May 20, 2019, May 24, 2019, May 30, 2019,
June 20, 2019 and June 28, 2019 and Current Reports on Form 8-K/A filed on June 20, 2019
and July 3, 2019 (other than the portions of those documents not deemed to be filed).
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In addition, Fifth Third is incorporating by reference any documents
it may file under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus/information statement
and prior to the date of the special meeting, provided, however, that Fifth Third is not incorporating by reference any information
furnished (but not filed), except as otherwise specified herein.
Fifth Third files annual, quarterly and special reports, proxy
statements and other business and financial information with the SEC. You may obtain the information incorporated by reference
and any other materials Fifth Third files with the SEC without charge by following the instructions in the section entitled “
Where
You Can Find More Information
” in the forepart of this prospectus/information statement.
Neither Fifth Third nor MB Financial has authorized anyone
to give any information or make any representation about the merger or its companies that is different from, or in addition to,
that contained in this prospectus/information statement or in any of the materials that have been incorporated into this prospectus/information
statement. Therefore, if anyone does give you information of this sort, you should not rely on it. If you are in a jurisdiction
where offers to exchange or sell, or solicitations of offers to exchange or purchase, the securities offered by this prospectus/information
statement or the solicitation of proxies is unlawful, or if you are a person to whom it is unlawful to direct these types of activities,
then the offer presented in this prospectus/information statement does not extend to you. The information contained in this prospectus/information
statement speaks only as of the date of this prospectus/information statement unless the information specifically indicates that
another date applies.
APPENDIX A
AGREEMENT
AND PLAN OF MERGER
dated as of
June 24, 2019
between
Fifth Third Bancorp
and
MB Financial, Inc.
AGREEMENT
AND PLAN OF MERGER
AGREEMENT
AND PLAN OF MERGER dated as of June 24, 2019 (the “
Agreement
”), between Fifth Third Bancorp, an Ohio
corporation (“
Parent
”), and MB Financial, Inc., a Maryland corporation (“
Subsidiary
”).
W
I T N E S S E T H:
WHEREAS,
the Boards of Directors of Parent and Subsidiary have determined that it is advisable and in the best interests of their respective
companies and their shareholders to consummate the merger provided for herein, pursuant to which Subsidiary will, subject to the
terms and conditions set forth herein, merge with and into Parent (the “
Merger
”), so that Parent is the surviving
corporation (hereinafter sometimes referred to in such capacity as the “
Surviving Corporation
”) in the Merger;
WHEREAS,
the parties desire to make certain agreements in connection with the Merger and also to prescribe certain conditions to the Merger;
and
WHEREAS,
the parties intend that, for U.S. federal income tax purposes, the Merger will be treated as a reorganization within the meaning
of Section 368(a)(1)(A) of the Internal Revenue Code of 1986, as amended (the “
Code
”) and that this Agreement
constitute a “plan of reorganization” for purposes of Section 368 and related provisions of the Code.
NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein, and intending to be legally bound hereby,
the parties agree as follows:
Article
1
The Merger
Section
1.01.
The Merger
. Subject to the terms and conditions of this Agreement, in accordance with the Maryland General Corporation
Law (the “
MGCL
”) and the Ohio Revised Code (the “
Revised Code
”), at the Effective Time (as
defined below), Subsidiary shall merge with and into Parent. Parent shall be the Surviving Corporation in the Merger, and shall
continue its corporate existence under the laws of the State of Ohio. Upon consummation of the Merger, the separate corporate
existence of Subsidiary shall terminate.
Section
1.02.
Closing
. Subject to the terms and conditions of this Agreement, the closing of the Merger (the “
Closing
”)
will take place on a date (the “
Closing Date
”), at a time, and at a location, in each case as determined by
Parent after the satisfaction or waiver (subject to applicable law) of the latest to occur of the conditions set forth in Article
3 hereof (other than those conditions that by their nature can be satisfied only at the Closing, but subject to the satisfaction
or waiver thereof).
Section
1.03.
Effective Time
. Subject to the terms and conditions of this Agreement, on or before the Closing Date, Parent and
Subsidiary shall file or cause to be filed (a) articles of merger (the “
Articles of Merger
”) containing such
information as is required by the relevant provisions of the MGCL in order to effect the Merger with the Department of Assessments
and Taxation of the State of Maryland (the “
Department
”) and (b) a certificate of merger (the “
Certificate
of Merger
”) containing such information as is required by the relevant provisions of the Revised Code in order to effect
the Merger with the Secretary of State of the State of Ohio (the “
Secretary
”). The Merger shall become effective
at such time as is specified in the Certificate of Merger (such time, the “
Effective Time
”).
Section
1.04.
Effects of the Merger
. At and after the Effective Time, the Merger shall have the effects set forth in Section
3-114 of the MGCL and Section 1701.82 of the Revised Code. Without limiting the generality of the foregoing, and subject thereto,
at the Effective Time, (i) the Surviving Corporation shall possess all assets and property of every description, and every interest
in the assets and property, wherever located, and the rights, privileges, immunities, powers, franchises and authority, of a public
as well as of a private nature, of Subsidiary, (ii) subject to the limitations specified in Section 2307.97 of the Revised Code
(“
Section 2307.97
”), the Surviving Corporation shall possess all obligations belonging to or due to Subsidiary,
all of which are vested in the Surviving Corporation without further act or deed, (iii) title to any real estate or any interest
in the real estate vested in Subsidiary shall not revert or in any way be impaired by reason of the Merger, (iv) subject to the
limitations specified in Section 2307.97, the Surviving Corporation shall be liable for all the obligations of Subsidiary, (v)
any claim existing or any action or proceeding pending by or against Subsidiary may be prosecuted to judgment, with right of appeal,
as if the Merger had not taken place, or the Surviving Corporation may be substituted in its place and (vi) subject to the limitations
specified in Section 2307.97, all the rights of creditors of Subsidiary are preserved unimpaired, and all liens upon the property
of Subsidiary are preserved unimpaired, on only the property affected by those liens immediately prior to the Effective Date.
Section
1.05.
Subsidiary Common Stock
. At the Effective Time, by virtue of the Merger and without any action on the part of
Parent, Subsidiary, or any holder thereof, all shares of the common stock, par value $0.01 per share, of Subsidiary (the “
Subsidiary
Common Stock
”) issued and outstanding immediately prior to the Effective Time shall be cancelled and shall cease to
exist and no consideration shall be delivered in exchange therefor.
Section
1.06.
Subsidiary Preferred Stock
. At the Effective Time, by virtue of the Merger and without any action on the part
of Parent, Subsidiary or any holder thereof, each share of 6.00% Non-Cumulative Perpetual Preferred Stock, Series C, par value
$0.01 per share, of Subsidiary (the “
Subsidiary Preferred Stock
”) issued and outstanding immediately prior
to the Effective Time shall automatically be converted into the right to receive one share of 6.00% Non-Cumulative Perpetual Class
B Preferred Stock, Series A, a newly created series of preferred stock of Parent having the express terms set forth in Exhibit
A (the “
Merger Consideration
” and all shares of such newly created series, collectively, the “
New
Parent Preferred Stock
”) and, upon such conversion, the Subsidiary Preferred Stock shall no longer be outstanding and
shall automatically be cancelled and shall cease to exist as of the Effective Time.
Section
1.07.
Surrender and Payment.
(a)
Each holder of shares of Subsidiary Preferred Stock that have been converted into the right to receive the Merger Consideration
shall, upon delivery to the Surviving Corporation of such instrument or evidence of transfer of such Subsidiary Preferred Stock
and such other information and documentation as the Surviving Corporation shall reasonably request, be entitled to receive the
Merger Consideration in respect of the Subsidiary Preferred Stock owned by such holder. The shares of New Parent Preferred Stock,
at Parent’s option, shall be in uncertificated book-entry form, unless a physical certificate is requested by a holder of
shares of Subsidiary Preferred Stock or is otherwise required under applicable law. Until so surrendered or transferred, as the
case may be, each such certificate for Subsidiary Preferred Stock (a “
Certificate
”) or uncertificated share
of Subsidiary Preferred Stock (an “
Uncertificated Share
”) shall represent after the Effective Time for all
purposes only the right to receive such Merger Consideration and the right to receive any dividends or other distributions pursuant
to Section 1.07(e).
(b)
If any portion of the Merger Consideration is to be paid to a person other than the person in whose name the surrendered Certificate
or the transferred Uncertificated Share is registered, it shall be a condition to such payment that (i) either such Certificate
shall be properly endorsed or shall otherwise be in proper form for transfer or such Uncertificated Share shall be properly transferred
and (ii) the person requesting such payment shall pay to the Surviving Corporation any transfer or other taxes required as a result
of such payment to a person other than the registered holder of such Certificate or Uncertificated Share or establish to the satisfaction
of the Surviving Corporation that such tax has been paid or is not payable.
(c)
After the Effective Time, there shall be no further registration of transfers of shares of Subsidiary Preferred Stock. If, after
the Effective Time, Certificates or Uncertificated Shares are presented to the Surviving Corporation, they shall be canceled and
exchanged for the Merger Consideration provided for, and in accordance with the procedures set forth, in this Article 1.
(d)
Parent shall not be liable to any holder of shares of Subsidiary Preferred Stock for any amounts paid to a public official pursuant
to applicable abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of shares of Subsidiary
Preferred Stock two years after the Effective Time (or such earlier date, immediately prior to such time when the amounts would
otherwise escheat to or become property of any governmental authority) shall become, to the extent permitted by applicable law,
the property of Surviving Corporation free and clear of any claims or interest of any person previously entitled thereto.
(e)
No dividends or other distributions with respect to the New Parent Preferred Stock shall be paid to the holder of any Certificates
not surrendered or of any Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered
or transferred, as the case may be, as provided in this Section 1.07. Following such surrender or transfer, there shall be
paid, without interest, to the person in whose name the securities of Parent have been registered, (i) at the time of such surrender
or transfer, the amount of all dividends or other distributions with a record date after the Effective Time previously paid or
payable on the date of such surrender with respect to such securities, and (ii) at the appropriate payment date, the amount of
dividends or other distributions with a record date after the Effective Time and prior to surrender or transfer and with a payment
date subsequent to surrender or transfer payable with respect to such securities.
Section
1.08.
Withholding Rights
. Notwithstanding any provision contained herein to the contrary, the Surviving Corporation shall
be entitled to deduct and withhold from the consideration otherwise payable to any person pursuant to this Article 1 such
amounts as it is required to deduct and withhold with respect to the making of such payment under any provision of federal, state,
local or foreign tax law. If the Surviving Corporation so withholds amounts, such amounts shall be treated for all purposes of
this Agreement as having been paid to the holder of the shares of Subsidiary Preferred Stock in respect of which the Surviving
Corporation, made such deduction and withholding.
Section
1.09.
Lost Certificates
. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit
of that fact by the person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Corporation,
the posting by such person of a bond, in such reasonable amount as the Surviving Corporation may direct, as indemnity against
any claim that may be made against it with respect to such Certificate, the Surviving Corporation will issue, in exchange for
such lost, stolen or destroyed Certificate, the Merger Consideration to be paid in respect of the shares of Subsidiary Preferred
Stock represented by such Certificate, as contemplated by this Article 1.
Section
1.10.
Dividends
. If the Board of Directors of Subsidiary authorizes and the Subsidiary declares a dividend on the Subsidiary
Preferred Stock with a Payment Date (as such term is defined in the Articles Supplementary to the Subsidiary Charter (as defined
below) dated November 21, 2017) of August 25, 2019 and the Closing Date occurs on or prior to August 26, 2019, Subsidiary shall
cause such dividend to be paid on August 26, 2019, the first business day after August 25, 2019.
Article
2
The Surviving Corporation
Section
2.01.
Articles of Incorporation
. At the Effective Time, the Articles of Incorporation of Parent, as in effect immediately
prior to the Effective Time, shall be the Articles of Incorporation of the Surviving Corporation until thereafter amended in accordance
with applicable law.
Section
2.02.
Code of Regulations
. At the Effective Time, the Code of Regulations of Parent, as in effect immediately prior
to the Effective Time, shall be the Code of Regulations of the Surviving Corporation until thereafter amended in accordance with
applicable law.
Section
2.03.
Directors and Officers
. From and after the Effective Time, until successors are duly elected or appointed and
qualified in accordance with applicable law, (i) the directors of Parent at the Effective Time shall be the directors of the Surviving
Corporation and (ii) the officers of Parent at the Effective Time shall be the officers of the Surviving Corporation.
Article
3
Conditions Precedent
Section
3.01.
Conditions to Each Party’s Obligations to Effect the Merger
. The respective obligations of the parties to
effect the Merger shall be subject to the satisfaction (or, to the extent permitted by applicable law, waiver) at or prior to
the Closing of the following conditions:
(a)
the Merger shall have been duly approved by the stockholders of Subsidiary;
(b)
the stockholders of Subsidiary shall have approved amendments to the charter of Subsidiary (the “
Subsidiary Charter
”)
(i) to clarify that the stockholders of Subsidiary shall not be entitled to exercise any rights of an objecting stockholder provided
for under the MGCL and (ii) to remove provisions relating to the approval of certain business combinations with an interested
stockholder (as defined in the Subsidiary Charter);
(c)
all required regulatory approvals or waivers which are necessary to consummate the transactions contemplated by this Agreement
shall have been obtained; and
(d)
no order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition
preventing the consummation of the Merger or any of the other transactions contemplated by this Agreement shall be in effect,
and no statute, rule, regulation, order, injunction or decree shall have been enacted, entered, promulgated or enforced by any
governmental entity which prohibits or makes illegal consummation of the Merger or any of the other transactions contemplated
by this Agreement.
Article
4
Termination
Section
4.01.
Termination
. This Agreement may be terminated by Parent at any time prior to the Effective Time, whether before
or after approval of the Merger by the stockholders of Subsidiary.
Article
5
Miscellaneous
Section
5.01.
Binding Effect
. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.
Section
5.02.
Governing Law
. This Agreement shall be construed in accordance with and governed by the laws of the State of Ohio,
without giving effect to principles of conflicts of law.
Section
5.03
. Counterparts; Effectiveness
. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become
effective when each party hereto shall have received the counterpart hereof signed by the other party hereto.
Section
5.04.
Amendment
. This Agreement may be amended by the parties hereto at any time prior to the Effective Time, whether before
or after approval of the Merger by the stockholders of Subsidiary; provided that any amendment after such approval that requires
further approval of such stockholders shall be subject to and conditioned on such approval.
Section
5.05.
Tax Treatment
. The parties hereto acknowledge and agree that the Merger is intended to be treated as a reorganization
within the meaning of Section 368(a) of the Code and hereby adopt this Agreement as a “plan of reorganization” for
purposes of Section 368 and related provisions of the Code.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed.
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Fifth
Third Bancorp
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By:
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/s/
Susan B. Zaunbrecher
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Name:
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Susan B. Zaunbrecher
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Title:
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Executive Vice President, Corporate Secretary and Chief Legal Officer
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MB
FINANCIAL, INC.
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By:
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/s/
Susan B. Zaunbrecher
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Name:
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Susan B. Zaunbrecher
|
|
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Title:
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Executive Vice President, Corporate Secretary and
Chief Legal Officer
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Exhibit
A
AMENDMENT
TO THE AMENDED ARTICLES OF INCORPORATION
OF
FIFTH
THIRD BANCORP
Paragraph (A)(3)(a) of Article
Fourth of the Amended Articles of Incorporation of Fifth Third Bancorp is renumbered and redesignated as paragraph (A)(3)(b),
and a new Paragraph (A)(3)(a) of Article Fourth of the Amended Articles of Incorporation of Fifth Third Bancorp is added to read
as follows:
(a)
Section 1.
Designation and Number of Shares
. There is hereby created out of the authorized and unissued shares of Class B Preferred
Stock a series of Class B Preferred Stock designated as the “6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series
A ” (the “
Series A Class B Preferred Stock
”). The authorized number of shares of Series A Class B Preferred
Stock shall be 200,000 shares, with no par value, having a liquidation preference of $1,000 per share. The number of shares constituting
Series A Class B Preferred Stock may be increased from time to time in accordance with Ohio law up to the maximum number of shares
of Class B Preferred Stock authorized to be issued under these Articles of Incorporation, as amended or supplemented, less all
shares at the time authorized of any other series of Class B Preferred Stock, and any such additional shares of Series A Class
B Preferred Stock would form a single series with the shares of Series A Class B Preferred Stock already then issued. Shares of
Series A Class B Preferred Stock will be dated the date of issue. Shares of outstanding Series A Class B Preferred Stock that
are redeemed, purchased or otherwise acquired by the corporation, or converted into another series of Class B Preferred Stock,
shall be cancelled and shall revert to authorized but unissued shares of Class B Preferred Stock undesignated as to series.
Section 2.
Definitions
. The following terms are used in this Amendment as defined below:
(a)
“
Business Day
” means any weekday that is not a legal holiday in New York, New York and that is not a
day on which banking institutions in New York, New York or Cincinnati, Ohio are closed.
(b)
“
Class B Series A Dividend Payment Date
” has the meaning set forth in
Section
4(b).
(c)
“
Common Stock
” means the common stock, with no par value, of the Corporation.
(d)
“
DTC
” means The Depository Trust Company.
(e)
“
Nonpayment Event
” has the meaning set forth in Section 7(d).
(f)
“
Original Issue Date
” means the date of issue of the Series A Class B Preferred Stock.
(g)
“
Preferred Stock Directors
” has the meaning set forth in Section 7(d).
(h)
“
Regulatory Capital Treatment Event
” means the good faith determination by the corporation that, as
a result of (i) any amendment to, or change in, the laws or regulations of the United States or any political subdivision of or
in the United States that is enacted or becomes effective after the initial issuance of any share of Series A Class B Preferred
Stock; (ii) any proposed change in those laws or regulations that is announced after the initial issuance of any share of Series
A Class B Preferred Stock; or (iii) any official administrative decision or judicial decision or administrative action or other
official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any
share of Series A Class B Preferred Stock, there is more than an insubstantial risk that the Corporation will not be entitled
to treat the full liquidation value of the shares of Series A Class B Preferred Stock then outstanding as “Tier 1 Capital”
(or its equivalent) for purposes of the capital adequacy regulations and guidelines of Regulation Q of the Board of Governors
of the Federal Reserve System (or, as and if applicable, the capital adequacy guidelines or regulations of any successor appropriate
federal banking agency), as then in effect and applicable, for as long as any share of Series A Class B Preferred Stock is outstanding.
(i)
“
Series A Dividend Period
” means the period from and including a Class B Series A Dividend Payment Date
to but excluding the next Class B Series A Dividend Payment Date, except that the initial Series A Dividend Period will commence
on and include August 25, 2019 and will end on and include September 29, 2019.
(j)
“
Series A Class B Junior Securities
” has the meaning set forth in
Section
3(a).
(k)
“
Series A Class B Parity Securities
” has the meaning set forth in
Section
3(b).
(l)
“
Series A Class B Senior Securities
” has the meaning set forth in
Section
3(c).
(m)
“
Voting Parity Stock
” has the meaning set forth in Section 7(d).
Section 3.
Ranking
. The shares of Series A Class B Preferred Stock shall rank:
(a)
senior, as to dividends and, upon liquidation, dissolution or winding up of the corporation, in the distribution of assets,
to the Common Stock, and to any other class or series of capital stock of the corporation now or hereafter authorized, issued
or outstanding that, by its terms, does not expressly provide that it ranks
pari passu
with or senior to the Series A Class
B Preferred Stock as to dividends and upon liquidation, dissolution and winding up of the Corporation, in the distribution of
assets, as the case may be (collectively, the “
Series A Class B Junior Securities
”);
(b)
on a parity, as to dividends and, upon liquidation, dissolution or winding up of the Corporation, in the distribution of
assets, with the corporation’s outstanding Series H Preferred Stock, Series I Preferred Stock and Series J Preferred Stock
and any other class or series of capital stock of the Corporation now or hereafter authorized, issued or outstanding that, by
its terms, expressly provides that it ranks
pari passu
with the Series A Class B Preferred Stock as to dividends and, upon
liquidation, dissolution or winding up of the corporation, in the distribution of assets, as the case may be (collectively, the
“
Series A Class B Parity Securities
”); and
(c)
junior, to each other class or series of capital stock of the corporation, now or hereafter authorized, issued or outstanding
that, by its terms, expressly provides that it ranks senior to the Series A Class B Preferred Stock as to dividends or, upon liquidation,
dissolution or winding up of the corporation, in the distribution of assets (collectively, the “
Series A Class B Senior
Securities
”).
The corporation
may authorize and issue additional shares of Series A Class B Junior Securities and Series A Class B Parity Securities without
the consent of the holders of the Series A Class B Preferred Stock.
Section 4.
Dividends
.
(a)
Holders of Series A Class B Preferred Stock will be entitled to receive, when, as and if declared by the Board of Directors
or a duly authorized committee of the Board of Directors, out of assets legally available for the payment of dividends under Ohio
law, non-cumulative cash dividends based on the liquidation preference of the Series A Class B Preferred Stock at a rate equal
to 6.00% per annum for each Series A Dividend Period from the Original Issue Date of the Series A Class B Preferred Stock to,
but excluding, the redemption date of the Series A Class B Preferred Stock, if any.
(b)
If declared by the Board of Directors or a duly authorized committee of the Board of Directors, dividends will be payable
on the Series A Class B Preferred Stock (each such date, a “
Class B Series A Dividend Payment Date
”) quarterly,
in arrears, on March 31, June 30, September 30 and December 31 of each year, beginning on September 30, 2019. If any Class B Series
A Dividend Payment Date is not a Business Day, then the payment will be made on the next Business Day without any adjustment to
the amount of dividends paid.
(c)
Dividends will be payable to holders of record of Series A Class B Preferred Stock as they appear on the corporation’s
books on the applicable record date, which shall be the 15th calendar day before the applicable Class B Series A Dividend Payment
Date, or such other record date, no earlier than 30 calendar days before the applicable Class B Series A Dividend Payment Date,
as shall be fixed by the Board of Directors or a duly authorized committee of the Board of Directors.
(d)
Dividends payable on Series A Class B Preferred Stock will be computed on the basis of a 360-day year consisting of twelve
30-day months. Dollar amounts resulting from that calculation will be rounded to the nearest cent, with one-half cent being rounded
upwards. Dividends on the Series A Class B Preferred Stock will cease to accrue on the redemption date, if any, unless the Corporation
defaults in the payment of the redemption price of the Series A Class B Preferred Stock called for redemption.
(e)
Dividends on the Series A Class B Preferred Stock will not be cumulative. If the Board of Directors or a duly authorized
committee of the Board of Directors does not declare a dividend on the Series A Class B Preferred Stock in respect of a Series
A Dividend Period, then no dividend shall be deemed to have accrued for such Series A Dividend Period, be payable on the applicable
Class B Series A Dividend Payment Date or be cumulative, and the corporation will have no obligation to pay any dividend for that
Series A Dividend Period, whether or not the Board of Directors or a duly authorized committee of the Board of Directors declares
a dividend for any future Series A Dividend Period with respect to the Series A Class B Preferred Stock or any other class or
series of the Corporation’s Preferred Stock.
(f)
So long as any share of Series A Class B Preferred Stock remains outstanding, unless the full dividends for the most recently
completed Series A Dividend Period have been declared and paid (or declared and a sum sufficient for the payment thereof has been
set aside) on all outstanding shares of Series A Class B Preferred Stock, during a Series A Dividend Period:
(i)
no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside
for payment on any Series A Class B Junior Securities (other than (A) a dividend payable solely in Series A Class B Junior Securities
or (B) any dividend in connection with the implementation of a stockholders’ rights plan, or the redemption or repurchase
of any rights under any such plan);
(ii)
no shares of Series A Class B Junior Securities shall be repurchased, redeemed or otherwise acquired for consideration
by the corporation, directly or indirectly (other than (A) as a result of a reclassification of Series A Class B Junior Securities
for or into other Series A Class B Junior Securities, (B) the exchange or conversion of one share of Series A Class B Junior Securities
for or into another share of Series A Class B Junior Securities, (C) through the use of the proceeds of a substantially contemporaneous
sale of other shares of Series A Class B Junior Securities, (D) purchases, redemptions or other acquisitions of shares of Series
A Class B Junior Securities in connection with any employment contract, benefit plan or other similar arrangement with or for
the benefit of employees, officers, directors or consultants, (E) purchases of shares of Series A Class B Junior Securities pursuant
to a contractually binding requirement to buy Series A Class B Junior Securities existing prior to the most recently completed
Series A Dividend Period, including under a contractually binding stock repurchase plan or (F) the purchase of fractional interests
in shares of Series A Class B Junior Securities pursuant to the conversion or exchange provisions of such stock or the security
being converted or exchanged), nor shall any monies be paid to or made available for a sinking fund for the redemption of any
such securities by the Corporation; and
(iii)
no shares of Series A Class B Parity Securities shall be repurchased, redeemed or otherwise acquired for consideration
by the corporation, other than pursuant to
pro rata
offers to purchase all, or a
pro rata
portion, of the Series
A Class B Preferred Stock and such Series A Class B Parity Securities, except by conversion into or exchange for Series A Class
B Junior Securities, it being understood that the shares of any class or series of Series A Class B Parity Securities may be redeemed
in whole or in part so long as an offer is made to purchase the same portion of the Series A Class B Preferred Stock and all other
classes or series of Series A Class B Parity Securities as the portion of the class or series of Series A Class B Parity Securities
being so redeemed.
(g)
When dividends are not paid in full upon the shares of Series A Class B Preferred Stock and Series A Class B Parity Securities,
if any, all dividends declared upon shares of Series A Class B Preferred Stock and Series A Class B Parity Securities, if any,
will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the same ratio
that accrued dividends for the Series A Class B Preferred Stock, and accrued dividends, including any accumulations, on Series
A Class B Parity Securities, if any, bear to each other for the then current Class B Series A Dividend Period. Subject to the
foregoing, and not otherwise, dividends (payable in cash, stock or otherwise), as may be determined by the Board of Directors
or a duly authorized committee of the Board of Directors, may be declared and paid on the Common Stock and any other Series A
Class B Junior Securities or any Series A Class B Parity Securities from time to time out of any assets legally available for
such payment, and the holders of Series A Class B Preferred Stock shall not be entitled to participate in any such dividend.
(h)
Dividends on the Series A Class B Preferred Stock will not be declared, paid or set aside for payment to the extent such
act would cause the corporation to fail to comply with applicable laws and regulations, including applicable capital adequacy
guidelines.
Section 5.
Liquidation
.
(a)
Upon any voluntary or involuntary liquidation, dissolution or winding up of the corporation, holders of Series A Class
B Preferred Stock are entitled to receive out of assets of the corporation available for distribution to stockholders, after satisfaction
of liabilities to creditors and subject to the rights of holders of any Series A Class B Senior Securities, before any distribution
of assets is made to holders of Common Stock or any other Series A Class B Junior Securities, a liquidating distribution in the
amount of the liquidation preference of $1,000 per share plus any declared and unpaid dividends, without regard to, or accumulation
of, any undeclared dividends. Holders of Series A Class B Preferred Stock will not be entitled to any other amounts from the corporation
after they have received their full liquidating distribution.
(b)
In any such distribution, if the assets of the corporation are not sufficient to pay the liquidation preferences plus declared
and unpaid dividends in full to all holders of Series A Class B Preferred Stock and all holders of Series A Class B Parity Securities,
if any, as to such distribution with the Series A Class B Preferred Stock, the amounts paid to the holders of Series A Class B
Preferred Stock and to the holders of all Series A Class B Parity Securities, if any, will be paid
pro rata
in accordance
with the respective aggregate liquidating distribution owed to those holders. If the liquidation preference plus declared and
unpaid dividends has been paid in full to all holders of Series A Class B Preferred Stock and Series A Class B Parity Securities,
if any, the holders of the corporation’s Series A Class B Junior Securities shall be entitled to receive all remaining assets
of the corporation according to their respective rights and preferences.
(c)
For purposes of this section, the merger or consolidation of the corporation with any other entity, including a merger
or consolidation in which the holders of Series A Class B Preferred Stock receive cash, securities or property for their shares,
or the sale, lease or exchange of all or substantially all of the assets of the Corporation for cash, securities or other property,
shall not constitute a liquidation, dissolution or winding up of the Corporation.
Section 6.
Redemption
.
(a)
Series A Class B Preferred Stock is perpetual and has no maturity date. Series A Class B Preferred Stock is not subject
to any mandatory redemption, sinking fund or other similar provisions. On and after November 25, 2022, Series A Class B Preferred
Stock will be redeemable at the option of the corporation, in whole or in part, from time to time, on any Class B Series A Dividend
Payment Date, at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without regard to, or accumulation
of, any undeclared dividends, on the shares of Series A Class B Preferred Stock called for redemption, to but excluding the redemption
date, upon notice given as provided in Subsection (b) below. Holders of Series A Class B Preferred Stock will have no right
to require the redemption or repurchase of Series A Class B Preferred Stock. Notwithstanding the foregoing, within 90 days following
the occurrence of a Regulatory Capital Treatment Event, the Corporation, at its option, may redeem, at any time, all (but not
less than all) of the shares of the Series A Class B Preferred Stock at the time outstanding, at a redemption price equal to $1,000
per share, plus any declared and unpaid dividends, without regard to, or accumulation of, any undeclared dividends, on the shares
of Series A Class B Preferred Stock called for redemption, to but excluding the redemption date, upon notice given as provided
in Subsection (b) below.
(b)
If shares of Series A Class B Preferred Stock are to be redeemed, the notice of redemption shall be given by first class
mail to the holders of record of Series A Class B Preferred Stock to be redeemed, mailed not less than 30 days nor more than 60
days prior to the date fixed for redemption thereof (provided that, if the depositary shares representing Series A Class B Preferred
Stock are held in book-entry form through DTC, the corporation may give such notice in any manner permitted by DTC). Each notice
of redemption will include a statement setting forth: (i) the redemption date; (ii) the number of shares of Series A Class B Preferred
Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to be
redeemed from such holder; (iii) the redemption price; (iv) the place or places where the certificates evidencing shares of Series
A Class B Preferred Stock are to be surrendered for payment of the redemption price; and (v) that dividends on the shares to be
redeemed will cease to
accrue
on the redemption date. If notice of redemption of any shares of Series A Class B Preferred Stock has been duly given and if the
funds necessary for such redemption have been set aside by the corporation for the benefit of the holders of any shares of Series
A Class B Preferred Stock so called for redemption, then, on and after the redemption date, dividends will cease to accrue on
such shares of Series A Class B Preferred Stock, and such shares of Series A Class B Preferred Stock shall no longer be deemed
outstanding and all rights of the holders of such shares of Series A Class B Preferred Stock will terminate, except the right
to receive the redemption price plus any declared and unpaid dividends, to but excluding the redemption date.
(c)
In case of any redemption of only part of the shares of Series A Class B Preferred Stock at the time outstanding, the shares
to be redeemed shall be selected either
pro rata
or by lot. Subject to the provisions hereof, the Board of Directors shall
have full power and authority to prescribe the terms and conditions upon which shares of Series A Class B Preferred Stock shall
be redeemed from time to time.
(d)
Any redemption of the Series A Class B Preferred Stock is subject to receipt by the Corporation of any required prior approval
by the Board of Governors of the Federal Reserve System (including any successor appropriate federal banking agency) and to the
satisfaction of any conditions set forth in the capital regulations or guidelines of the Board of Governors of the Federal Reserve
System (including any successor appropriate federal banking agency) applicable to redemption of the Series A Class B Preferred
Stock.
Section 7.
Voting Rights
.
(a)
Except as provided below or elsewhere in these Articles of Incorporation or as expressly required by applicable law, the
holders of shares of Series A Class B Preferred Stock shall have no voting power, and no right to vote on any matter at any time,
either as a separate series or class or together with any other series or class of shares of capital stock.
(b)
For as long as the Series A Class B Preferred Stock is outstanding, the Series A Class B Preferred Stock shall vote together
with the Common Stock as a single class on all matters on which the holders of Common Stock are entitled to vote pursuant to these
Articles of Incorporation, the holders of the Series A Class B Preferred Stock being entitled to twenty-four votes for each share
of such Series A Class B Preferred Stock standing in the holder’s name of the books of the corporation and the holders of
Common Stock being entitled to one vote per share of Common Stock.
(c)
So long as any shares of Series A Class B Preferred Stock remain outstanding, the affirmative vote or consent of the holders
of at least two-thirds of all of the shares of Series A Class B Preferred Stock at the time outstanding, voting separately as
a class, shall be required to: (i) amend, alter or repeal the provisions of these Articles of Incorporation, or the corporation’s
code of regulations, whether by merger, consolidation or otherwise, so as to adversely affect the powers, preferences, privileges
or special rights of the Series A Class B Preferred Stock; provided, that any of the following
will
not be deemed to adversely affect such powers, preferences, privileges or special rights: (A) increases in the amount of the authorized
Common Stock or, except as provided in subclause (ii), preferred stock or Class B Preferred Stock; (B) increases or decreases
in the number of shares of any series of preferred stock or Class B Preferred Stock, which series is of Series A Class B Parity
Securities or Series A Class B Junior Securities; or (C) the authorization, creation and issuance of other classes or series of
capital stock (or securities convertible or exchangeable into such capital stock), which series or class is of Series A Class
B Parity Securities or Series A Class B Junior Securities; (ii) amend or alter these Articles of Incorporation to authorize or
increase the authorized amount of or issue shares of any class or series of stock, or reclassify any of the corporation’s
authorized capital stock into any shares of capital stock, ranking senior to the Series A Class B Preferred Stock with respect
to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of the corporation or issue
any obligation or security convertible into or evidencing the right to purchase any such shares of senior stock; or (iii) consummate
a binding share exchange, a reclassification involving the Series A Class B Preferred Stock or a merger or consolidation of the
corporation with or into another entity, provided, however, that the holders of Series A Class B Preferred Stock will have no
right to vote under this clause (iii) if in each case: (A) the Series A Class B Preferred Stock remains outstanding or, in
the case of any such merger or consolidation with respect to which the corporation is not the surviving or resulting entity, is
converted into or exchanged for preferred securities of the surviving or resulting entity (or its ultimate parent); and (B) the
Series A Class B Preferred Stock remaining outstanding or the new preferred securities, as the case may be, have such powers,
preferences and special rights as are not materially less favorable to the holders thereof than the powers, preferences and special
rights of the Series A Class B Preferred Stock, taken as a whole. The foregoing voting provisions will not apply if, at or prior
to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares
of Series A Class B Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds
shall have been set aside by the corporation for the benefit of the holders of Series A Class B Preferred Stock to effect such
redemption.
(d)
If and whenever dividends payable on Series A Class B Preferred Stock shall have not been paid in an aggregate amount equal
to full dividends for six or more Series A Dividend Periods (whether or not consecutive) (a “
Nonpayment Event
”),
the authorized number of directors then constituting the Board of Directors shall be automatically increased by two and the holders
of Series A Class B Preferred Stock, together with the holders of any other class or series of outstanding preferred stock or
Class B Preferred Stock upon which similar voting rights as described in this subsection have been conferred and are exercisable
with respect to such matter (any such other class or series being herein referred to as “
Voting Parity Stock
”),
voting together as a single class in proportion to their respective liquidation preferences, shall be entitled to elect by a plurality
of the votes cast the two additional directors (the “
Preferred Stock Directors
”); provided that it shall be
a qualification for election for any Preferred Stock Director that the election of such director shall not cause the corporation
to violate the corporate governance requirements of any securities exchange or other trading facility on which securities of the
corporation may then be listed or traded that listed or traded companies must have a majority of independent directors; provided,
further, that the Board of Directors shall at no time include more than two such Preferred Stock Directors, including all directors
that the holders of any series of Voting Parity Stock are entitled to elect pursuant to their voting rights.
In the event
that the holders of Series A Class B Preferred Stock and the holders of such Voting Parity Stock shall be entitled to vote for
the election of the Preferred Stock Directors following a Nonpayment Event, such directors shall be initially elected following
such Nonpayment Event only at a special meeting called at the request of the holders of record of shares representing at least
20% of the combined liquidation preference of the Series A Class B Preferred Stock and each series of Voting Parity Stock then
outstanding, voting together as a single class in proportion to their respective liquidation preferences (unless such request
for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the stockholders
of the corporation, in which event such election shall be held only at such next annual or special meeting of stockholders), and
at each subsequent annual meeting of stockholders of the corporation. Such request to call a special meeting for the initial election
of the Preferred Stock Directors after a Nonpayment Event shall be made by written notice, signed by the requisite holders of
Series A Class B Preferred Stock or Voting Parity Stock, and delivered to the Corporate Secretary of the corporation in such manner
as provided for in
Section 13 below, or as may otherwise
be required by applicable law. If the Corporate Secretary of the corporation fails to call a special meeting for the election
of the Preferred Stock Directors within 20 days of receiving proper notice, any holder of Series A Class B Preferred Stock may
call such a meeting at the corporation’s expense solely for the election of the Preferred Stock Directors, and for this
purpose only such Series A Class B Preferred Stock holder shall have access to the corporation’s stock ledger. The Preferred
Stock Directors elected at any such special meeting shall hold office until the next annual meeting of the stockholders if such
office shall not have previously terminated as provided below.
Any Preferred
Stock Director may be removed at any time without cause by the holders of record of shares of Series A Class B Preferred Stock
and Voting Parity Stock representing at least a majority of the combined liquidation preference of the Series A Class B Preferred
Stock and each series of Voting Parity Stock then outstanding, when they have the voting rights described above (voting together
as a single class in proportion to their respective liquidation preferences). In case any vacancy shall occur among the Preferred
Stock Directors, a successor shall be elected by the then remaining Preferred Stock Director or, if no Preferred Stock Director
remains in office, by a plurality of the votes cast by the holders of the outstanding shares of Series A Class B Preferred Stock
and such Voting Parity Stock, voting as a single class in proportion to their respective liquidation preferences. The Preferred
Stock Directors shall each be entitled to one vote per director on any matter that shall come before the Board of Directors for
a vote.
When dividends
have been paid in full on the Series A Class B Preferred Stock for at least four consecutive Series A Dividend Periods, then the
right of the holders of Series A Class B Preferred Stock to elect the Preferred Stock Directors shall terminate (but subject always
to revesting of such voting rights in the case of any future Nonpayment Event), and, if and when any rights of holders of Series
A Class B Preferred Stock and Voting Parity Stock to elect the Preferred Stock Directors shall have ceased, the terms of office
of all the Preferred Stock Directors shall forthwith terminate and the number of directors constituting the Board of Directors
shall automatically be reduced accordingly.
(e)
Except as expressly provided in this
Section 7, each
holder of Series A Class B Preferred Stock shall have one vote per share on any matter on which holders of Series A Class B Preferred
Stock are entitled to vote under this
Section 7. The holders
of the Series A Class B Preferred Stock shall have exclusive voting rights on any amendment to these Articles of Incorporation
that would alter only the contract rights, as expressly set forth in these Articles of Incorporation, of the Series A Class B
Preferred Stock.
Section 8.
Conversion Rights
. The holders of shares of Series A Class B Preferred Stock shall not have any rights to convert
such shares into shares of any other class or series of securities of the corporation.
Section 9.
Preemptive Rights
. The holders of shares of Series A Class B Preferred Stock will have no preemptive rights with
respect to any shares of the corporation’s capital stock or any of its other securities convertible into or carrying rights
or options to purchase any such capital stock.
Section 10.
Certificates
. The corporation may at its option issue shares of Series A Class B Preferred Stock without certificates.
Section
11.
Transfer Agent
. The
duly appointed transfer agent for the Series A Class B Preferred Stock shall be American Stock Transfer & Trust Company,
LLC. The corporation may, in its sole discretion, remove the transfer agent in accordance with the agreement between the
corporation and the transfer agent; provided that the corporation shall appoint a successor transfer agent who shall accept
such appointment prior to the effectiveness of such removal. Upon any such removal or appointment, the corporation shall send
notice thereof by first-class mail, postage prepaid, to the holders of the Series A Class B Preferred Stock.
Section
12.
Registrar
. The duly
appointed registrar for the Series A Class B Preferred Stock shall be American Stock Transfer & Trust Company, LLC. The
corporation may, in its sole discretion, remove the registrar in accordance with the agreement between the corporation and
the registrar; provided that the corporation shall appoint a successor registrar who shall accept such appointment prior to
the effectiveness of such removal. Upon any such removal or appointment, the corporation shall send notice thereof
by first-class mail, postage prepaid, to the holders of the Series A Class B Preferred Stock.
Section 13.
Notices
. All notices or communications in respect of the Series A Class B Preferred Stock shall be sufficiently
given if given in writing and delivered in
person
or by first class mail, postage prepaid, or if given in such other manner as may be permitted herein, in the articles of incorporation
or code of regulations of the Corporation or by applicable law. Notwithstanding the foregoing, if shares of Series A Class B Preferred
Stock or depositary shares representing an interest in shares of Series A Class B Preferred Stock are issued or held in book-entry
form through DTC or any other similar facility, notice of redemption may be given to the holders thereof at such time and in any
manner permitted by such facility.
APPENDIX
B
Form
of
AMENDMENT TO THE AMENDED ARTICLES OF INCORPORATION
OF
FIFTH
THIRD BANCORP
Paragraph (A)(3)(a) of Article
Fourth of the Amended Articles of Incorporation of Fifth Third Bancorp is renumbered and redesignated as paragraph (A)(3)(b),
and a new Paragraph (A)(3)(a) of Article Fourth of the Amended Articles of Incorporation of Fifth Third Bancorp is added to read
as follows:
(a)
Section 1.
Designation and Number of Shares
. There is hereby created out of the authorized and unissued shares of Class B Preferred
Stock a series of Class B Preferred Stock designated as the “6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series
A ” (the “
Series A Class B Preferred Stock
”). The authorized number of shares of Series A Class B Preferred
Stock shall be 200,000 shares, with no par value, having a liquidation preference of $1,000 per share. The number of shares constituting
Series A Class B Preferred Stock may be increased from time to time in accordance with Ohio law up to the maximum number of shares
of Class B Preferred Stock authorized to be issued under these Articles of Incorporation, as amended or supplemented, less all
shares at the time authorized of any other series of Class B Preferred Stock, and any such additional shares of Series A Class
B Preferred Stock would form a single series with the shares of Series A Class B Preferred Stock already then issued. Shares of
Series A Class B Preferred Stock will be dated the date of issue. Shares of outstanding Series A Class B Preferred Stock that
are redeemed, purchased or otherwise acquired by the corporation, or converted into another series of Class B Preferred Stock,
shall be cancelled and shall revert to authorized but unissued shares of Class B Preferred Stock undesignated as to series.
Section 2.
Definitions
. The following terms are used in this Amendment as defined below:
(a)
“
Business Day
” means any weekday that is not a legal holiday in New York, New York and that is not a
day on which banking institutions in New York, New York or Cincinnati, Ohio are closed.
(b)
“
Class B Series A Dividend Payment Date
” has the meaning set forth in
Section
4(b).
(c)
“
Common Stock
” means the common stock, with no par value, of the Corporation.
(d)
“
DTC
” means The Depository Trust Company.
(e)
“
Nonpayment Event
” has the meaning set forth in Section 7(d).
(f)
“
Original Issue Date
” means the date of issue of the Series A Class B Preferred Stock.
(g)
“
Preferred Stock Directors
” has the meaning set forth in Section 7(d).
(h)
“
Regulatory Capital Treatment Event
” means the good faith determination by the corporation that, as
a result of (i) any amendment to, or change in, the laws or regulations of the United States or any political subdivision of or
in the United States that is enacted or becomes effective after the initial issuance of any share of Series A Class B Preferred
Stock; (ii) any proposed change in those laws or regulations that is announced after the initial issuance of any share of Series
A Class B Preferred Stock; or (iii) any official administrative decision or judicial decision or administrative action or other
official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any
share of Series A Class B Preferred Stock, there is more than an insubstantial risk that the Corporation will not be entitled
to treat the full liquidation value of the shares of Series A Class B Preferred Stock then outstanding as “Tier 1 Capital”
(or its equivalent) for purposes of the capital adequacy regulations and guidelines of Regulation Q of the Board of Governors
of the Federal Reserve System (or, as and if applicable, the capital adequacy guidelines or regulations of any successor appropriate
federal banking agency), as then in effect and applicable, for as long as any share of Series A Class B Preferred Stock is outstanding.
(i)
“
Series A Dividend Period
” means the period from and including a Class B Series A Dividend Payment Date
to but excluding the next Class B Series A Dividend Payment Date, except that the initial Series A Dividend Period will commence
on and include August 25, 2019 and will end on and include September 29, 2019.
(j)
“
Series A Class B Junior Securities
” has the meaning set forth in
Section
3(a).
(k)
“
Series A Class B Parity Securities
” has the meaning set forth in
Section
3(b).
(l)
“
Series A Class B Senior Securities
” has the meaning set forth in
Section
3(c).
(m)
“
Voting Parity Stock
” has the meaning set forth in Section 7(d).
Section 3.
Ranking
. The shares of Series A Class B Preferred Stock shall rank:
(a)
senior, as to dividends and, upon liquidation, dissolution or winding up of the corporation, in the distribution of assets,
to the Common Stock, and to any other class or series of capital stock of the corporation now or hereafter authorized, issued
or outstanding that, by its terms, does not expressly provide that it ranks
pari passu
with or senior to the Series A Class
B Preferred Stock as to dividends and upon liquidation, dissolution and winding up of the Corporation, in the distribution of
assets, as the case may be (collectively, the “
Series A Class B Junior Securities
”);
(b)
on a parity, as to dividends and, upon liquidation, dissolution or winding up of the Corporation, in the distribution of
assets, with the corporation’s outstanding Series H Preferred Stock, Series I Preferred Stock and Series J Preferred Stock
and any other class or series of capital stock of the Corporation now or hereafter authorized, issued or outstanding that, by
its terms, expressly provides that it ranks
pari passu
with the Series A Class B Preferred Stock as to dividends and, upon
liquidation, dissolution or winding up of the corporation, in the distribution of assets, as the case may be (collectively, the
“
Series A Class B Parity Securities
”); and
(c)
junior, to each other class or series of capital stock of the corporation, now or hereafter authorized, issued or outstanding
that, by its terms, expressly provides that it ranks senior to the Series A Class B Preferred Stock as to dividends or, upon liquidation,
dissolution or winding up of the corporation, in the distribution of assets (collectively, the “
Series A Class B Senior
Securities
”).
The corporation
may authorize and issue additional shares of Series A Class B Junior Securities and Series A Class B Parity Securities without
the consent of the holders of the Series A Class B Preferred Stock.
Section 4.
Dividends
.
(a)
Holders of Series A Class B Preferred Stock will be entitled to receive, when, as and if declared by the Board of Directors
or a duly authorized committee of the Board of Directors, out of assets legally available for the payment of dividends under Ohio
law, non-cumulative cash dividends based on the liquidation preference of the Series A Class B Preferred Stock at a rate equal
to 6.00% per annum for each Series A Dividend Period from the Original Issue Date of the Series A Class B Preferred Stock to,
but excluding, the redemption date of the Series A Class B Preferred Stock, if any.
(b)
If declared by the Board of Directors or a duly authorized committee of the Board of Directors, dividends will be payable
on the Series A Class B Preferred Stock (each such date, a “
Class B Series A Dividend Payment Date
”) quarterly,
in arrears, on March 31, June 30, September 30 and December 31 of each year, beginning on September 30, 2019. If any Class B Series
A Dividend Payment Date is not a Business Day, then the payment will be made on the next Business Day without any adjustment to
the amount of dividends paid.
(c)
Dividends will be payable to holders of record of Series A Class B Preferred Stock as they appear on the corporation’s
books on the applicable record date, which shall be the 15th calendar day before the applicable Class B Series A Dividend Payment
Date, or such other record date, no earlier than 30 calendar days before the applicable Class B Series A Dividend Payment Date,
as shall be fixed by the Board of Directors or a duly authorized committee of the Board of Directors.
(d)
Dividends payable on Series A Class B Preferred Stock will be computed on the basis of a 360-day year consisting of twelve
30-day months. Dollar amounts resulting from that calculation will be rounded to the nearest cent, with one-half cent being rounded
upwards. Dividends on the Series A Class B Preferred Stock will cease to accrue on the redemption date, if any, unless the Corporation
defaults in the payment of the redemption price of the Series A Class B Preferred Stock called for redemption.
(e)
Dividends on the Series A Class B Preferred Stock will not be cumulative. If the Board of Directors or a duly authorized
committee of the Board of Directors does not declare a dividend on the Series A Class B Preferred Stock in respect of a Series
A Dividend Period, then no dividend shall be deemed to have accrued for such Series A Dividend Period, be payable on the applicable
Class B Series A Dividend Payment Date or be cumulative, and the corporation will have no obligation to pay any dividend for that
Series A Dividend Period, whether or not the Board of Directors or a duly authorized committee of the Board of Directors declares
a dividend for any future Series A Dividend Period with respect to the Series A Class B Preferred Stock or any other class or
series of the Corporation’s Preferred Stock.
(f)
So long as any share of Series A Class B Preferred Stock remains outstanding, unless the full dividends for the most recently
completed Series A Dividend Period have been declared and paid (or declared and a sum sufficient for the payment thereof has been
set aside) on all outstanding shares of Series A Class B Preferred Stock, during a Series A Dividend Period:
(i)
no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside
for payment on any Series A Class B Junior Securities (other than (A) a dividend payable solely in Series A Class B Junior Securities
or (B) any dividend in connection with the implementation of a stockholders’ rights plan, or the redemption or repurchase
of any rights under any such plan);
(ii)
no shares of Series A Class B Junior Securities shall be repurchased, redeemed or otherwise acquired for consideration
by the corporation, directly or indirectly (other than (A) as a result of a reclassification of Series A Class B Junior Securities
for or into other Series A Class B Junior Securities, (B) the exchange or conversion of one share of Series A Class B Junior Securities
for or into another share of Series A Class B Junior Securities, (C) through the use of the proceeds of a substantially contemporaneous
sale of other shares of Series A Class B Junior Securities, (D) purchases, redemptions or other acquisitions of shares of Series
A Class B Junior Securities in connection with any employment contract, benefit plan or other similar arrangement with or for
the benefit of employees, officers, directors or consultants, (E) purchases of shares of Series A Class B Junior Securities pursuant
to a contractually binding requirement to buy Series A Class B Junior Securities existing prior to the most recently completed
Series A Dividend Period, including under a contractually binding stock repurchase plan or (F) the purchase of fractional interests
in shares of Series A Class B Junior Securities pursuant to the conversion or exchange provisions of such stock or the security
being converted or exchanged), nor shall any monies be paid to or made available for a sinking fund for the redemption of any
such securities by the Corporation; and
(iii)
no shares of Series A Class B Parity Securities shall be repurchased, redeemed or otherwise acquired for consideration
by the corporation, other than pursuant to
pro rata
offers to purchase all, or a
pro rata
portion, of the Series
A Class B Preferred Stock and such Series A Class B Parity Securities, except by conversion into or exchange for Series A Class
B Junior Securities, it being understood that the shares of any class or series of Series A Class B Parity Securities may be redeemed
in whole or in part so long as an offer is made to purchase the same portion of the Series A Class B Preferred Stock and all other
classes or series of Series A Class B Parity Securities as the portion of the class or series of Series A Class B Parity Securities
being so redeemed.
(g)
When dividends are not paid in full upon the shares of Series A Class B Preferred Stock and Series A Class B Parity Securities,
if any, all dividends declared upon shares of Series A Class B Preferred Stock and Series A Class B Parity Securities, if any,
will be declared on a proportional basis so that the amount of dividends declared per share will bear to each other the same ratio
that accrued dividends for the Series A Class B Preferred Stock, and accrued dividends, including any accumulations, on Series
A Class B Parity Securities, if any, bear to each other for the then current Class B Series A Dividend Period. Subject to the
foregoing, and not otherwise, dividends (payable in cash, stock or otherwise), as may be determined by the Board of Directors
or a duly authorized committee of the Board of Directors, may be declared and paid on the Common Stock and any other Series A
Class B Junior Securities or any Series A Class B Parity Securities from time to time out of any assets legally available for
such payment, and the holders of Series A Class B Preferred Stock shall not be entitled to participate in any such dividend.
(h)
Dividends on the Series A Class B Preferred Stock will not be declared, paid or set aside for payment to the extent such
act would cause the corporation to fail to comply with applicable laws and regulations, including applicable capital adequacy
guidelines.
Section 5.
Liquidation
.
(a)
Upon any voluntary or involuntary liquidation, dissolution or winding up of the corporation, holders of Series A Class
B Preferred Stock are entitled to receive out of assets of the corporation available for distribution to stockholders, after satisfaction
of liabilities to creditors and subject to the rights of holders of any Series A Class B Senior Securities, before any distribution
of assets is made to holders of Common Stock or any other Series A Class B Junior Securities, a liquidating distribution in the
amount of the liquidation preference of $1,000 per share plus any declared and unpaid dividends, without regard to, or accumulation
of, any undeclared dividends. Holders of Series A Class B Preferred Stock will not be entitled to any other amounts from the corporation
after they have received their full liquidating distribution.
(b)
In any such distribution, if the assets of the corporation are not sufficient to pay the liquidation preferences plus declared
and unpaid dividends in full to all holders of Series A Class B Preferred Stock and all holders of Series A Class B Parity Securities,
if any, as to such distribution with the Series A Class B Preferred Stock, the amounts paid to the holders of Series A Class B
Preferred Stock and to the holders of all Series A Class B Parity Securities, if any, will be paid
pro rata
in accordance
with the respective aggregate liquidating distribution owed to those holders. If the liquidation preference plus declared and
unpaid dividends has been paid in full to all holders of Series A Class B Preferred Stock and Series A Class B Parity Securities,
if any, the holders of the corporation’s Series A Class B Junior Securities shall be entitled to receive all remaining assets
of the corporation according to their respective rights and preferences.
(c)
For purposes of this section, the merger or consolidation of the corporation with any other entity, including a merger
or consolidation in which the holders of Series A Class B Preferred Stock receive cash, securities or property for their shares,
or the sale, lease or exchange of all or substantially all of the assets of the Corporation for cash, securities or other property,
shall not constitute a liquidation, dissolution or winding up of the Corporation.
Section 6.
Redemption
.
(a)
Series A Class B Preferred Stock is perpetual and has no maturity date. Series A Class B Preferred Stock is not subject
to any mandatory redemption, sinking fund or other similar provisions. On and after November 25, 2022, Series A Class B Preferred
Stock will be redeemable at the option of the corporation, in whole or in part, from time to time, on any Class B Series A Dividend
Payment Date, at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without regard to, or accumulation
of, any undeclared dividends, on the shares of Series A Class B Preferred Stock called for redemption, to but excluding the redemption
date, upon notice given as provided in Subsection (b) below. Holders of Series A Class B Preferred Stock will have no right
to require the redemption or repurchase of Series A Class B Preferred Stock. Notwithstanding the foregoing, within 90 days following
the occurrence of a Regulatory Capital Treatment Event, the Corporation, at its option, may redeem, at any time, all (but not
less than all) of the shares of the Series A Class B Preferred Stock at the time outstanding, at a redemption price equal to $1,000
per share, plus any declared and unpaid dividends, without regard to, or accumulation of, any undeclared dividends, on the shares
of Series A Class B Preferred Stock called for redemption, to but excluding the redemption date, upon notice given as provided
in Subsection (b) below.
(b)
If shares of Series A Class B Preferred Stock are to be redeemed, the notice of redemption shall be given by first class
mail to the holders of record of Series A Class B Preferred Stock to be redeemed, mailed not less than 30 days nor more than 60
days prior to the date fixed for redemption thereof (provided that, if the depositary shares representing Series A Class B Preferred
Stock are held in book-entry form through DTC, the corporation may give such notice in any manner permitted by DTC). Each notice
of redemption will include a statement setting forth: (i) the redemption date; (ii) the number of shares of Series A Class B Preferred
Stock to be redeemed and, if less than all the shares held by such holder are to be redeemed, the number of such shares to be
redeemed from such holder; (iii) the redemption price; (iv) the place or places where the certificates evidencing shares of Series
A Class B Preferred Stock are to be surrendered for payment of the redemption price; and (v) that dividends on the shares to be
redeemed will cease to
accrue
on the redemption date. If notice of redemption of any shares of Series A Class B Preferred Stock has been duly given and if the
funds necessary for such redemption have been set aside by the corporation for the benefit of the holders of any shares of Series
A Class B Preferred Stock so called for redemption, then, on and after the redemption date, dividends will cease to accrue on
such shares of Series A Class B Preferred Stock, and such shares of Series A Class B Preferred Stock shall no longer be deemed
outstanding and all rights of the holders of such shares of Series A Class B Preferred Stock will terminate, except the right
to receive the redemption price plus any declared and unpaid dividends, to but excluding the redemption date.
(c)
In case of any redemption of only part of the shares of Series A Class B Preferred Stock at the time outstanding, the shares
to be redeemed shall be selected either
pro rata
or by lot. Subject to the provisions hereof, the Board of Directors shall
have full power and authority to prescribe the terms and conditions upon which shares of Series A Class B Preferred Stock shall
be redeemed from time to time.
(d)
Any redemption of the Series A Class B Preferred Stock is subject to receipt by the Corporation of any required prior approval
by the Board of Governors of the Federal Reserve System (including any successor appropriate federal banking agency) and to the
satisfaction of any conditions set forth in the capital regulations or guidelines of the Board of Governors of the Federal Reserve
System (including any successor appropriate federal banking agency) applicable to redemption of the Series A Class B Preferred
Stock.
Section 7.
Voting Rights
.
(a)
Except as provided below or elsewhere in these Articles of Incorporation or as expressly required by applicable law, the
holders of shares of Series A Class B Preferred Stock shall have no voting power, and no right to vote on any matter at any time,
either as a separate series or class or together with any other series or class of shares of capital stock.
(b)
For as long as the Series A Class B Preferred Stock is outstanding, the Series A Class B Preferred Stock shall vote together
with the Common Stock as a single class on all matters on which the holders of Common Stock are entitled to vote pursuant to these
Articles of Incorporation, the holders of the Series A Class B Preferred Stock being entitled to twenty-four votes for each share
of such Series A Class B Preferred Stock standing in the holder’s name of the books of the corporation and the holders of
Common Stock being entitled to one vote per share of Common Stock.
(c)
So long as any shares of Series A Class B Preferred Stock remain outstanding, the affirmative vote or consent of the holders
of at least two-thirds of all of the shares of Series A Class B Preferred Stock at the time outstanding, voting separately as
a class, shall be required to: (i) amend, alter or repeal the provisions of these Articles of Incorporation, or the corporation’s
code of regulations, whether by merger, consolidation or otherwise, so as to adversely affect the powers, preferences, privileges
or special rights of the Series A Class B Preferred Stock; provided, that any of the following
will
not be deemed to adversely affect such powers, preferences, privileges or special rights: (A) increases in the amount of the authorized
Common Stock or, except as provided in subclause (ii), preferred stock or Class B Preferred Stock; (B) increases or decreases
in the number of shares of any series of preferred stock or Class B Preferred Stock, which series is of Series A Class B Parity
Securities or Series A Class B Junior Securities; or (C) the authorization, creation and issuance of other classes or series of
capital stock (or securities convertible or exchangeable into such capital stock), which series or class is of Series A Class
B Parity Securities or Series A Class B Junior Securities; (ii) amend or alter these Articles of Incorporation to authorize or
increase the authorized amount of or issue shares of any class or series of stock, or reclassify any of the corporation’s
authorized capital stock into any shares of capital stock, ranking senior to the Series A Class B Preferred Stock with respect
to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of the corporation or issue
any obligation or security convertible into or evidencing the right to purchase any such shares of senior stock; or (iii) consummate
a binding share exchange, a reclassification involving the Series A Class B Preferred Stock or a merger or consolidation of the
corporation with or into another entity, provided, however, that the holders of Series A Class B Preferred Stock will have no
right to vote under this clause (iii) if in each case: (A) the Series A Class B Preferred Stock remains outstanding or, in
the case of any such merger or consolidation with respect to which the corporation is not the surviving or resulting entity, is
converted into or exchanged for preferred securities of the surviving or resulting entity (or its ultimate parent); and (B) the
Series A Class B Preferred Stock remaining outstanding or the new preferred securities, as the case may be, have such powers,
preferences and special rights as are not materially less favorable to the holders thereof than the powers, preferences and special
rights of the Series A Class B Preferred Stock, taken as a whole. The foregoing voting provisions will not apply if, at or prior
to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares
of Series A Class B Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds
shall have been set aside by the corporation for the benefit of the holders of Series A Class B Preferred Stock to effect such
redemption.
(d)
If and whenever dividends payable on Series A Class B Preferred Stock shall have not been paid in an aggregate amount equal
to full dividends for six or more Series A Dividend Periods (whether or not consecutive) (a “
Nonpayment Event
”),
the authorized number of directors then constituting the Board of Directors shall be automatically increased by two and the holders
of Series A Class B Preferred Stock, together with the holders of any other class or series of outstanding preferred stock or
Class B Preferred Stock upon which similar voting rights as described in this subsection have been conferred and are exercisable
with respect to such matter (any such other class or series being herein referred to as “
Voting Parity Stock
”),
voting together as a single class in proportion to their respective liquidation preferences, shall be entitled to elect by a plurality
of the votes cast the two additional directors (the “
Preferred Stock Directors
”); provided that it shall be
a qualification for election for any Preferred Stock Director that the election of such director shall not cause the corporation
to violate the corporate governance requirements of any securities exchange or other trading facility on which securities of the
corporation may then be listed or traded that listed or traded companies must have a majority of independent directors; provided,
further, that the Board of Directors shall at no time include more than two such Preferred Stock Directors, including all directors
that the holders of any series of Voting Parity Stock are entitled to elect pursuant to their voting rights.
In the event
that the holders of Series A Class B Preferred Stock and the holders of such Voting Parity Stock shall be entitled to vote for
the election of the Preferred Stock Directors following a Nonpayment Event, such directors shall be initially elected following
such Nonpayment Event only at a special meeting called at the request of the holders of record of shares representing at least
20% of the combined liquidation preference of the Series A Class B Preferred Stock and each series of Voting Parity Stock then
outstanding, voting together as a single class in proportion to their respective liquidation preferences (unless such request
for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the stockholders
of the corporation, in which event such election shall be held only at such next annual or special meeting of stockholders), and
at each subsequent annual meeting of stockholders of the corporation. Such request to call a special meeting for the initial election
of the Preferred Stock Directors after a Nonpayment Event shall be made by written notice, signed by the requisite holders of
Series A Class B Preferred Stock or Voting Parity Stock, and delivered to the Corporate Secretary of the corporation in such manner
as provided for in
Section 13 below, or as may otherwise
be required by applicable law. If the Corporate Secretary of the corporation fails to call a special meeting for the election
of the Preferred Stock Directors within 20 days of receiving proper notice, any holder of Series A Class B Preferred Stock may
call such a meeting at the corporation’s expense solely for the election of the Preferred Stock Directors, and for this
purpose only such Series A Class B Preferred Stock holder shall have access to the corporation’s stock ledger. The Preferred
Stock Directors elected at any such special meeting shall hold office until the next annual meeting of the stockholders if such
office shall not have previously terminated as provided below.
Any Preferred
Stock Director may be removed at any time without cause by the holders of record of shares of Series A Class B Preferred Stock
and Voting Parity Stock representing at least a majority of the combined liquidation preference of the Series A Class B Preferred
Stock and each series of Voting Parity Stock then outstanding, when they have the voting rights described above (voting together
as a single class in proportion to their respective liquidation preferences). In case any vacancy shall occur among the Preferred
Stock Directors, a successor shall be elected by the then remaining Preferred Stock Director or, if no Preferred Stock Director
remains in office, by a plurality of the votes cast by the holders of the outstanding shares of Series A Class B Preferred Stock
and such Voting Parity Stock, voting as a single class in proportion to their respective liquidation preferences. The Preferred
Stock Directors shall each be entitled to one vote per director on any matter that shall come before the Board of Directors for
a vote.
When dividends
have been paid in full on the Series A Class B Preferred Stock for at least four consecutive Series A Dividend Periods, then the
right of the holders of Series A Class B Preferred Stock to elect the Preferred Stock Directors shall terminate (but subject always
to revesting of such voting rights in the case of any future Nonpayment Event), and, if and when any rights of holders of Series
A Class B Preferred Stock and Voting Parity Stock to elect the Preferred Stock Directors shall have ceased, the terms of office
of all the Preferred Stock Directors shall forthwith terminate and the number of directors constituting the Board of Directors
shall automatically be reduced accordingly.
(e)
Except as expressly provided in this
Section 7, each
holder of Series A Class B Preferred Stock shall have one vote per share on any matter on which holders of Series A Class B Preferred
Stock are entitled to vote under this
Section 7. The holders
of the Series A Class B Preferred Stock shall have exclusive voting rights on any amendment to these Articles of Incorporation
that would alter only the contract rights, as expressly set forth in these Articles of Incorporation, of the Series A Class B
Preferred Stock.
Section 8.
Conversion Rights
. The holders of shares of Series A Class B Preferred Stock shall not have any rights to convert
such shares into shares of any other class or series of securities of the corporation.
Section 9.
Preemptive Rights
. The holders of shares of Series A Class B Preferred Stock will have no preemptive rights with
respect to any shares of the corporation’s capital stock or any of its other securities convertible into or carrying rights
or options to purchase any such capital stock.
Section 10.
Certificates
. The corporation may at its option issue shares of Series A Class B Preferred Stock without certificates.
Section
11.
Transfer Agent
. The
duly appointed transfer agent for the Series A Class B Preferred Stock shall be American Stock Transfer & Trust Company,
LLC. The corporation may, in its sole discretion, remove the transfer agent in accordance with the agreement between the
corporation and the transfer agent; provided that the corporation shall appoint a successor transfer agent who shall accept
such appointment prior to the effectiveness of such removal. Upon any such removal or appointment, the corporation shall send
notice thereof by first-class mail, postage prepaid, to the holders of the Series A Class B Preferred Stock.
Section
12.
Registrar
. The duly
appointed registrar for the Series A Class B Preferred Stock shall be American Stock Transfer & Trust Company, LLC. The
corporation may, in its sole discretion, remove the registrar in accordance with the agreement between the corporation and
the registrar; provided that the corporation shall appoint a successor registrar who shall accept such appointment prior to
the effectiveness of such removal. Upon any such removal or appointment, the corporation shall send notice thereof
by first-class mail, postage prepaid, to the holders of the Series A Class B Preferred Stock.
Section 13.
Notices
. All notices or communications in respect of the Series A Class B Preferred Stock shall be sufficiently
given if given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as
may be permitted herein, in the articles of incorporation or code of regulations of the Corporation or by applicable law. Notwithstanding
the foregoing, if shares of Series A Class B Preferred Stock or depositary shares representing an interest in shares of Series
A Class B Preferred Stock are issued or held in book-entry form through DTC or any other similar facility, notice of redemption
may be given to the holders thereof at such time and in any manner permitted by such facility.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Indemnification of Directors and Officers
Section 1701.13(E) of the Ohio Revised Code provides that a
corporation may indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party, to any threatened,
pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, other than an action
by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, trustee, officer, employee, member, manager or agent of another
corporation, domestic or foreign, nonprofit or for profit, a limited liability company, or a partnership, joint venture, trust
or other enterprise, against expenses, including attorney’s fees, judgments, fines and amounts paid in settlement actually
and reasonably incurred by him in connection with such action, suit or proceeding, if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action
or proceeding, if he had no reasonable cause to believe his conduct was unlawful.
The termination of any action, suit or proceeding by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or proceeding, that he had reasonable cause to believe that his conduct
was unlawful. Section 1701.13(E)(2) further specifies that a corporation may indemnify or agree to indemnify any person who was
or is a party, or is threatened to be made a party, to any threatened, pending or completed action or suit by or in the right of
the corporation to procure a judgment in its favor, by reason of the fact that he is or was a director, officer, employee or agent
of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, member, manager
or agent of another corporation, domestic or foreign, nonprofit or for profit, a limited liability company, or a partnership, joint
venture, trust or other enterprise, against expenses, including attorney’s fees, actually and reasonably incurred by him
in connection with the defense or settlement of such action or suit, if he acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of (a)
any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance
of his duty to the corporation unless, and only to the extent, that the court of common pleas or the court in which such action
or suit was brought determines, upon application, that, despite the adjudication of liability, but in view of all the circumstances
of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such
other court shall deem proper, and (b) any action or suit in which the only liability asserted against a director is pursuant to
Section 1701.95 of the Ohio Revised Code concerning unlawful loans, dividends and distribution of assets.
In addition, Section 1701.13(E) requires a corporation to pay
any expenses, including attorney’s fees, of a director in defending an action, suit or proceeding referred to above as they
are incurred, in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf
of the director in which he agrees to both (1) repay such amount if it is proved by clear and convincing evidence that his action
or failure to act involved an act or omission undertaken with deliberate intent to cause injury to the corporation or undertaken
with reckless disregard for the best interests of the corporation and (2) reasonably cooperate with the corporation concerning
the action, suit or proceeding. The indemnification provided by Section 1701.13(E) shall not be deemed exclusive of any other rights
to which those seeking indemnification may be entitled under the articles or regulations of Fifth Third.
The Fifth Third regulations provide that Fifth Third shall indemnify
each director and each officer of Fifth Third, and each person employed by Fifth Third who serves at the written request of the
President of Fifth Third as a director, trustee, officer, employee or agent of another corporation, domestic or foreign, nonprofit
or for profit, partnership, joint venture, trust or other enterprise, to the full extent permitted by Ohio law, subject to the
limits of applicable federal law and regulation. Fifth Third may indemnify assistant officers, employees and others by action of
the Board of Directors to the extent permitted by Ohio law, subject to the limits of applicable federal law and regulations.
Fifth Third carries directors’ and officers’ liability
insurance coverage which insures its directors and officers, and the directors and officers of its subsidiaries, in certain circumstances.
Exhibits and Financial Statement Schedules
Exhibit Index
*
|
Previously
filed with the registrant’s Registration Statement on Form S-4 (No. 333-232335), which was filed with the SEC on June
25, 2019.
|
**
|
Filed herewith.
|
Undertakings
The undersigned registrant hereby undertakes:
A.
|
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
|
|
1.
|
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933.
|
|
2.
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) that, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.
|
|
3.
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
|
B.
|
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
C.
|
To remove from registration by means of a post-effective amendment any of the securities being registered that remain unsold at the termination of the offering.
|
D.
|
That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
E.
|
That prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
|
F.
|
That every prospectus (1) that is filed pursuant to paragraph (E) immediately preceding, or (2) that purports to meet the requirements of Section 10(a)(3) of the Securities Act of 1933 and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
G.
|
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described above, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
|
H.
|
To respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11, or 13 of this form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.
|
I.
|
To supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.
|
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, as amended, the registrant has duly caused this Amendment No. 1 to the registration statement
to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Cincinnati, State of Ohio, on July 19,
2019.
|
FIFTH THIRD BANCORP
|
|
|
|
By:
|
|
/s/
Greg D. Carmichael
|
|
Name:
Title:
|
|
Greg D. Carmichael
Chairman of the Board, President and Chief Executive
Officer
|
Pursuant to the requirements of the Securities Act of 1933,
as amended, this Amendment No. 1 to the registration statement has been signed by the following persons in the capacities
and on the dates indicated.
Signature
|
|
Title
|
|
Date
|
/s/ Greg D. Carmichael
|
|
|
Greg D. Carmichael
|
|
Chairman
of the Board, President and Chief
Executive Officer
(Principal Executive Officer)
|
|
July
19, 2019
|
*
|
|
|
Tayfun Tuzun
|
|
Executive
Vice President and Chief
Financial Officer
(Principal Financial Officer)
|
|
July 19, 2019
|
*
|
|
|
Mark D. Hazel
|
|
Senior
Vice President and Controller
(Principal Accounting Officer)
|
|
July 19, 2019
|
*
|
|
|
Nicholas K. Akins
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
B. Evan Bayh III
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Jorge L. Benitez
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Katherine B. Blackburn
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Emerson L. Brumback
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Jerry W. Burris
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
|
|
C. Bryan Daniels
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Thomas H. Harvey
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
|
|
Gary R. Heminger
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
|
|
Jewell D. Hoover
|
|
Director
|
|
July
19, 2019
|
*
|
|
|
Eileen A. Mallesch
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Michael B. McCallister
|
|
Director
|
|
July 19, 2019
|
*
|
|
|
Marsha C. Williams
|
|
Director
|
|
July 19, 2019
|
* By:
|
/s/
Greg D. Carmichael
|
|
|
Greg D. Carmichael
|
|
|
(Attorney-in-Fact)
|
|
|
Pursuant to Powers of Attorney
|
|
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