e425
TABLE OF CONTENTS

Forward-Looking Statement
Disclosure
Transaction Summary
Transaction Rationale
Financially Attractive
Consistently Executing Low Risk Transactions
Pro Forma Financial Impact
Appendix

     
  Filed by Fifth Third Bancorp
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Old Kent Financial Corporation
Exchange Act File Number 000-14591
Text version of 425 filed on November 20, 2000

FIFTH THIRD BANCORP

acquisition of

OLD KENT FINANCIAL CORPORATION

November 20, 2000

 

Table of Contents

Forward-Looking Statement

This document contains forward-looking statements about Fifth Third Bancorp (“Fifth Third” or “FITB”), Old Kent Financial Corporation (“Old Kent” or “OK”) and the combined company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made in connection to the financial condition, results of operations, plans, objectives, future performance and business of Fifth Third and/or the combined company. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the states in which Fifth Third and Old Kent do business, are less favorable than expected; (5) legislative or regulatory changes adversely affect the business in which Fifth Third and Old Kent are engaged; and (6) changes in the securities markets. Further information on other factors which could effect the financial results of Fifth Third after the merger are included in Fifth Third’s and Old Kent’s filings with the SEC. These documents are available free of charge at the SEC’s website at http://www.sec.gov and/or from Fifth Third or Old Kent.

2

Table of Contents

Disclosure

Investors and security holders are advised to read the proxy statement/prospectus regarding the transactions referenced in this document when it becomes available, because it will contain important information. The proxy statement/prospectus will be filed with the Securities and Exchange Commission by Fifth Third and Old Kent. Security holders may receive a free copy of the proxy statement/prospectus (when available) and other related documents filed by Fifth Third and Old Kent at the Securities and Exchange Commission’s website at http://www.sec.gov and/or from Fifth Third or Old Kent.

Old Kent and its executive officers and directors may be deemed to be participants in the solicitation of proxies from stockholders of Old Kent with respect to the transactions contemplated by the merger agreement. Information regarding such officers and directors is included in Old Kent’s proxy statement for its 2000 Annual Meeting of shareholders filed with the Commission on February 25, 2000. This document is available free of charge at the Commission’s website at http://www.sec.gov and/or from Old Kent.

Fifth Third and its executive officers and directors may be deemed to be participants in the solicitation of proxies from stockholders of Fifth Third with respect to the transactions contemplated by the merger agreement. Information regarding such officers and directors is included in Fifth Third’s proxy statement for its 2000 Annual Meeting of shareholders filed with the Commission on February 9, 2000. This document is available free of charge at the Commission’s website at http://www.sec.gov and/or from Fifth Third.

3

Table of Contents

 

 

 

 

 

 

Transaction Summary

 

 

 

 

 

 

4

Table of Contents

Transaction Summary

     
Exchange Ratio: 0.74 Fifth Third Shares per Old Kent Share
 
Price per Old Kent Share: $35.57 (1)
 
Transaction Structure: Pooling-of-interests
Tax-free exchange
19.9% Lock-up
 
Transaction Value: $4.9 billion (2)
 
Board Representation: 3 Additional Directors to Fifth Third Bancorp Board
 
Expected Closing: Second Quarter 2001
 
Expected Restructuring Charges: $235 million, after-tax
 
Due Diligence: Completed (including credit, operations and mortgage)
 
Required Approvals: Regulatory
Fifth Third Shareholders
Old Kent Shareholders
 
Management: Significant roles for Old Kent Management

(1) Based on FITB closing price of $48.0625 on November 17, 2000.
(2) Based on 138.3 million average fully diluted shares outstanding for 3Q00.

5

Table of Contents

Transaction Summary

Transaction Rationale

  •   Completely consistent with stated strategies
 
  •   Expansion into Michigan and Chicago has been a priority
 
  •   Acquire significant market share (top 5 position) in 2 new markets
 
  •   #2 deposit market share in key MSAs within the 5 states we serve
 
  •   Excellent growth opportunity in the highly populated midwestern MSAs
 
  •   Attractive Old Kent Trust & Commercial banking platform in new markets
 
  •   Management accretive

Financially Attractive

  •   Immediately accretive, before synergies
 
  •   High IRR transaction
 
  •   Maintains high net income and revenue growth rates
 
  •   No diminution of superior performance measures
 
  •   Disciplined pricing

Minimal Risk

  •   Consistency in credit culture & operating philosophies
 
  •   Extremely conservative synergies assumptions — $ and timing

6

Table of Contents

 

 

 

 

 

 

Transaction Rationale

 

 

 

 

 

 

7

Table of Contents

Transaction Rationale

— Expansion into attractive Michigan & Chicago markets

  •   Combined franchise achieves a leading position in Michigan

        – ranks #3 at 9.4% share with $10.6 billion in deposits
 
        – Michigan is 10th largest deposit market in US, with $126 billion

  •   Adds a very strong Chicago franchise

        – ranks #5 at 3.6% share with $5.9 billion in deposits

  •   Enhances Fifth Third’s position in Illinois

        – ranks #5 at 3.1% share with $6.7 billion in deposits
 
        – Illinois is 4th largest deposit market in US, with $224 billion

— Adds over 1 million customers to Fifth Third franchise

— Incremental franchise area has 16 million potential customers for Fifth Third

— Achieves in one transaction what would otherwise require several transactions

N.B. Source: SNL Branch Migration Datasource as of June 30, 1999.

8

Table of Contents

Extension of Franchise
Dollars in billions.

Largest MSAs of
Pro Forma Franchise

                                 
Combined Company
Rank Deposits Mk. Share Branches
Chicago 5 $ 5,870 3.6 % 75
Cincinnati OH-KY-IN 1 5,700 22.1 115
Grand Rapids-Muskegon- 1 4,604 40.0 86
Holland MI
Dayton-Springfield OH 1 2,466 25.3 51
Columbus OH 3 2,420 11.5 62
Cleveland-Lorain-Elyria OH 6 2,075 4.5 62
Toledo OH 1 1,848 26.0 34
Detroit MI 8 1,689 2.8 60
Evansville-Henderson IN-KY 2 1,448 33.6 31
Indianapolis IN 3 1,437 7.3 52

Source: SNL Branch Migration Database as of June 30, 1999.
NB -combined FITB / OK data pre-divestiture (if required).

9

Table of Contents

Unique Consolidation Opportunity

    — Achieves in one transaction what would otherwise require several transactions
 
    — Adds significant Trust and Commercial Banking businesses that may not be fully developed in other      potential acquisition opportunities
                             
Market Market
Michigan Share Chicago MSA Share
1 Bank One Corp. 15.9 % 1 Bank One Corp. 17.5 %
2 Comerica Inc. 14.2 2 ABN AMRO 14.4
3 FITB / OK 9.4 3 Bank of Montreal 5.1
4 National City Corp. 8.9 4 Northern Trust Corp. 5.1
5 ABN AMRO 8.2 5 FITB / OK 3.6
6 Michigan National 7.2 6 Citigroup Inc. 2.6
7 Huntington Bancshares 4.2 7 Charter One Financial 2.3
8 Citizens Banking Corp. 3.5 8 First Midwest Bancorp 2.1
9 Charter One Financial 3.2 9 Bank of America Corp. 2.1
10 Chemical Financial 3.2 10 MAF Bancorp Inc. 1.8

Source: SNL Branch Migration Database as of June 30, 1999.
NB -combined FITB / OK data pre-divestiture (if required).

10

Table of Contents

Significant Presence and Upside for Growth

—   Only 1 out of 16 possible households is a Fifth Third customer
 
—   Best major-MSA concentration
 
—   Familiar Fifth Third competitors
 
—   Fragmented market

Indiana

     
Population 5.9 million
National Rank 14th
                             
Deposits Branches Market Share
1. Bank One Corp $ 12,333 219 17.5 %
2. National City Corp. 7,053 202 10.0
3. FITB / OK 5,386 162 7.7
4. Old National Bancorp 4,270 104 6.1
5. 1st Source Corp. 2,182 44 3.1

Illinois

     
Population 12.1 million
National Rank 5th
                             
Deposits Branches Market Share
1. Bank One Corp $ 30,166 244 13.8 %
2. ABN AMRO 23,260 122 10.6
3. Bank of Montreal 15,813 134 7.2
4. Northern Trust Corp. 8,285 17 3.8
5. FITB / OK 6,718 94 3.1

Ohio

     
Population 11.2 million
National Rank 7th
                             
Deposits Branches Market Share
1. Key Corp $ 18,953 225 12.1 %
2. Fifth Third 16,408 378 10.5
3. National City Corp. 15,624 349 10.0
4. Bank One Corp. 15,168 276 9.7
5. US Bancorp 9,034 307 5.8

Michigan

     
Population 9.8 million
National Rank 8th
                             
Deposits Branches Market Share
1. Bank One Corp $ 18,008 259 15.9 %
2. Comerica Inc. 16,053 251 14.2
3. FITB / OK 10,604 269 9.4
4. National City Corp. 10,040 275 8.9
5. ABN AMRO 9,268 151 8.2

Kentucky

     
Population 4.0 million
National Rank 25th
                             
Deposits Branches Market Share
1. National City $ 4,549 114 9.4 %
2. US Bancorp 4,036 134 8.4
3. Bank One 3,995 68 8.3
4. PNC Bank 3,322 56 6.9
5. Fifth Third 2,589 97 5.4

Source: SNL Branch Migration Database as of June 30, 1999.
NB -combined FITB / OK data pre-divestiture (if required).

11

Table of Contents

Similar Market Territory

Top 10 States for Business Expansion in 1999:

                                 
New/Expanded Facilities New Manufacturing Plants
> 1. Michigan 2,174 1. California 432
2. California 2,137 > 2. Michigan 296
> 3. Ohio 1,141 > 3. Ohio 200
4. Texas 939 > 4. Illinois 168
5. New York 934 5. Texas 137
> 6. Illinois 872 6. New York 117
7. North Carolina 793 7. North Carolina 110
8. Minnesota 435 8. Virginia 87
9. Pennsylvania 386 9. Pennsylvania 76
10. Virginia 357 10. Minnesota 72

Top 3 Metropolitan areas for Total Facilities

             
> 1. Detroit
> 2. Chicago
3. Orange County

Source: Site Selection Magazine’s “Top 10” States.

12

Table of Contents

Transaction Rationale

—   Completely Consistent With Stated Fifth Third Strategy

  •   Consistent Markets and Demographics
 
  •   Consistent Credit and Operating Philosophy
 
  •   Consistent Business Lines
 
  •   Builds on Fifth Third’s Decentralized Affiliate Bank Structure
 
  •   Compatible Risk Philosophy

13

Table of Contents

Expands Revenue Potential

—   Core Businesses Complimented by Other Business Expertise
             
Fifth Third Old Kent
Mid-sized Business Banking < > Small & Middle-Market
Retail Banking   Business Banking
Wealth Management   Retail Banking
   - Trust AUM      $22.2b Wealth Management
   - Mutual Funds  $5.3b    - Trust AUM      $11.9b
   - Mutual Funds  $6.5b
Deposit generation >
Robust fee income growth Local management talent
Merchant processing < High customer affinity
EFT processing

14

Table of Contents

Uninterrupted Growth Story

—   Fifth Third and Old Kent combined will continue to generate high revenue growth rates
 
—   Sources of revenue growth:

      Attractive new markets for Fifth Third products:

  -   Duplicate FITB’s deposit campaign successes in new markets
 
  -   Sell MPS’ e-commerce solutions in new markets
 
  - Enrich Commercial and Investment Advisory revenue mix

      Achieving FITB results on OK’s deposit base is a $48 million per year revenue opportunity :

  -   Improve Old Kent’s fee income to net revenue ratio*: FITB = 38%; OK = 26%
 
  -   Ratio of deposit fee revenue to core deposits: FITB = 1.54%; OK = 0.97%

* Ratios calculated excluding mortgage banking fees.

15

Table of Contents

 

 

 

 

 

 

Financially Attractive

 

 

 

 

 

 

16

Table of Contents

Consistent Shareholder M&A Focus

—   Immediately accretive to EPS, before cost savings
         
Estimated
EPS Accretion
2001 No Synergies 9.4 %
2001 with Phased-in Synergies (a) 11.3
2002 with Phased-in Synergies (a) 12.5

—   Conservative, identifiable and readily achievable cost savings

  •   Only 20% of Old Kent overhead
 
  •   Realistic Savings Timetable: 25% in ‘01    75% in ‘02    and 100% in ‘03
 
  •   Goal: - Protect and grow revenues
          - Positioned to roll-out typical Fifth Third enhancement programs

—   IRR well above cost of capital with conservative assumptions

(a) Assumes cost savings equal to 20% of Old Kent’s controllable non-interest expenses phased-in at 25% in 2001 and 75% in 2002

17

Table of Contents

Consistent Shareholder M&A Focus

—   No revenue enhancements assumed, but long standing track record of improving performance and revenue
 
—   Significant potential for revenue and productivity improvements
                 
Fifth Third Old Kent
- Net income per FTE $ 76.4 k $ 35.6 k
- Net revenue per FTE $ 226 k $ 141 k
- Earning assets per FTE $ 3.7 m $ 2.2 m
- Efficiency ratio 41.3 % 56.6 %

—   Demonstrated performance with CNB acquisition
         
- Net income per FTE at announcement (6/99) $ 35.0k
- Consol. Indiana NI per FTE — Q3 2000 $ 77.8k

18

Table of Contents

Disciplined Pricing

                                                     
FITB / OK Selected (3)
Fifth Third     Transaction Multiples         Transaction Multiples     Peer
Multiples Absolute Relative(2) Absolute Relative(2) Market(4)
Price as a Multiple of:
LTM EPS 26.9 x 15.7 x 58.5 % 14.8 x 91.3 % 16.0 x
2001E EPS 22.0 14.2 64.5 13.2 100.5 13.3
2001E EPS
Adj. for Synergies (1) 22.0 11.2 51.0 11.8 77.3 —
Book Value 4.43 2.88 65.0 2.34 70.6 2.46
Tangible Book Value 4.93 3.12 63.3 2.69 69.0 2.83
Pro Forma Target Ownership 18 % 16 %

(1) Assumes synergies are fully phased-in in 2001.
(2) Represents transaction multiple as a percentage of Fifth Third multiple.
(3) Median of the following transactions: CMA/IMP, FSR/USB, FBF/SUB, MTB/KSTN, WFC/FSCO, NCBC/CCB, BBT/OV, FITB/BNK, FSR/MTL, FBF/BKB.
(4) High Performing Bank Peer Group median include: MI, MRBK, MTB, NCBC, TCB, ZION.

19

Table of Contents

Ongoing Superior Performance Measures

                         
Pro Forma
LTM - 9/00 Fifth Third Old Kent Combined(1)
ROACE 20.0 % 20.7 % 21.8 %
ROAA 1.94 1.47 1.93
Efficiency Ratio (2) 41.3 56.6 42.9
 
Tangible Common Ratio 8.91 % 6.50 % 8.09 %
Leverage Ratio 9.99 7.24 9.04

(1) LTM 9/30 pro forma combined for ROACE, ROAA and Efficiency Ratio assuming full 20% of Old Kent controllable non-interest expenses, and excludes non-recurring items.
(2) LTM 9/30 excludes amortization of intangibles.

20

Table of Contents

FITB Continues to Deliver Industry-Leading Returns

ROE(1)

             
1 Bank Of New York 26.6 %
2 Mellon Financial 25.2
3 FITB / OK* 21.8
4 Northern Trust Corp. 21.8
5 Comerica 21.4
3 US Bancorp (pro forma)* 21.1
7 PNC Financial Serv. 20.8
8 Synovus Financial 20.0
9 FleetBoston Financial 17.8
10 Bank of America 17.1

ROA

             
1 Mellon Financial 2.11 %
2 Synovus Financial 1.94
3 FITB / OK * 1.93
4 US Bancorp (pro forma) * 1.89
5 Wells Fargo & Co. 1.86
6 Comerica 1.85
7 Bank Of New York 1.83
8 PNC Financial Serv. 1.78
9 National City Corp. 1.56
10 SunTrust Banks, Inc. 1.44

Data excludes Citigroup and companies that have announced control sales
(1) For U.S. banking institutions with leverage ratio > 6.75%

Efficiency

             
1 US Bancorp (pro forma)* 42.7 %
2 FITB / OK* 42.9
3 Comerica 46.6
4 Bank Of New York 49.5
5 Bank of America 51.4
6 Southtrust Corp. 51.4
7 BB&T Corp. 52.2
8 Wachovia Corp. 54.1
9 FleetBoston Financial 55.5
10 National City Corp. 56.9

LT Growth

         
1 FITB / OK 16.0%
2 State Street Corp. 15.0
3 Synovus Financial 15.0
4 US Bancorp 14.0
5 Wells Fargo & Co. 13.0
6 Bank Of New York 13.0
7 Mellon Financial 13.0
8 Northern Trust Corp. 13.0
9 FleetBoston Financial 12.0
10 BB&T Corp. 12.0

LT EPS Growth Rate Source: IBES
* 9/30 LTM combined financial data adjusted to reflect 100% of announced cost savings

21

Table of Contents

Accelerating EPS Growth

[*] Fifth Third Stand Alone IBES EPS
[  ] Pro Forma EPS

                                                                         
Post-Transaction: 18+%*
 
16% CAGR Wall Street Estimates: 15%
$0.88 $ 1.03 $ 1.17 $ 1.40 $ 1.61 $ 1.88 $ 2.18 $ 2.43 * $ 2.50 $ 2.81 *
1995 1996 1997 1998 1999 2000E 2001E 2001E * 2002E 2002E *

N.B. Fifth Third historical EPS restated for 3:2 stock split.

22

Table of Contents

Midwestern Powerhouse with Superior Performance

                                                             
Traditional Banking Growth Financial Services
Mkt Price/ LTM IBES L-T Mkt Price/ IBES L-T
Rank Institution Cap 2001E ROE Gr. Rate Rank Institution Cap 2001E Gr. Rate
1 Fifth Third / Old Kent $27.9 22.0x 21.9% 16.0% 1 Capital One $ 10.3 18.1x 25.0 %
1 Fifth Third 23.0 22.0 20.0 15.0 2 Charles Schwab 40.8 38.3 20.0
2 State Street 21.4 30.4 24.9 15.0 3 MBNA 31.0 19.7 20.0
3 Synovus 6.5 20.4 19.9 15.0 4 Fifth Third / Old Kent 27.9 22.0 16.0
4 U.S. Bancorp 31.4 10.2 19.9 14.0 4 State Street 21.4 30.4 15.0
5 Wells Fargo 79.7 15.4 17.7 13.0 5 Synovus 6.5 20.4 15.0
6 Bank of New York 41.4 24.8 24.6 13.0 6 AXA 23.9 19.8 15.0
7 Mellon Financial 22.8 19.8 24.9 13.0 7 Citigroup 229.5 16.6 15.0
8 Northern Trust 19.4 34.8 21.8 13.0 8 Morgan Stanley 78.3 12.4 14.5
9 Bank of America 72.0   7.0 18.3 12.0 9 AIG 225.2 34.8 14.0
10 J.P. Morgan Chase 77.4   9.5 18.1 12.0 10 American Express 74.6 23.9 13.8
11 FleetBoston 37.1   9.2 19.6 12.0 11 Northern Trust 19.4 34.8 13.0
12 BB&T 13.0 12.6 15.5 12.0 12 Bank of New York 41.4 24.8 13.0
13 SunTrust 14.5   9.8 18.8 11.5 13 Mellon 22.8 19.8 13.0
14 Old Kent 3.5 10.0 20.7 11.0 14 Merrill Lynch 51.7 15.8 13.0
15 Comerica 9.2   9.7 20.4 10.5 15 Goldman Sachs 42.3 13.4 13.0
Median $22.9 14.0x 20.0% 13.0% Median $ 35.9 20.1x 14.8 %

N.B. Implied pro forma market capitalization does not include synergies and based on announced transaction value.

23

Table of Contents

Selected Growth Companies

                                                         
Yahoo Cisco Coca Northern Pfizer
Inc Sys Inc Cola Co GE Trust AIG Inc.
Price / 2001E 88.4 52.8 35.5 35.3 34.8 34.8 33.3
 
P/2001E to 5-year IBES long term growth rate 1.84x 1.62x 2.54x 2.36x 2.68x 2.48x 1.59x

[Additional columns below]

[Continued from above table, first column(s) repeated]

                                                 
Colgate Pepsico Bank of FIFTH
Palmolive Merck Inc. New York THIRD IBM
Price / 2001E 31.1 27.8 27.0 24.8 22.0 20.3
 
P/2001E to 5-year IBES long term growth rate 2.40x 2.32x 2.07x 1.91x 1.47x 1.57x

N.B. Numbers inside bars represent P/2001E to 5-year IBES long-term growth rate. Numbers above bars represent price to 2001 earnings

24

Table of Contents

Consistently Executing

Low Risk Transactions

25

Table of Contents

Low Execution Risk

—   Proven acquisition track record augmented by:

  •   Combination of 2 superior performing banks
 
  •   Contiguous and similar Midwest markets
 
  •   Local management teams & traditional affiliate structure
 
  •   Both institutions on single operating platform
 
  •   Fifth Third experienced with integrating Old Kent’s systems

—   Thoughtful & deliberate approach to merger integration

  •   Conservative assumptions
 
  •   Realistic timetable (25% in ‘01....75% in ‘02.... and 100% in ‘03)
 
  •   Careful attention to preservation of revenues and growth rates
                                         
Previous FITB Transactions
At Announcement Realized
Old Kent. Market Market
Transaction In-Market Extension In-Market Extension
Cost Savings as % of Target Overhead 20 % 30 % 20 % >35 % >25 %

26

Table of Contents

Consistency of Culture

—   Both committed to superior financial performance

  •   Fifth Third & Old Kent each have over 25 consecutive years of increased earnings

—   Commitment to sales culture
 
—   Top-tier capital ratios and ratings
         
• Tangible Common Ratio – to remain at 9.00%*
Leverage Ratio – to remain at 10.00%*
Ratings – maintain AA/Aa ratings

—   Both Fifth Third and Old Kent maintain pristine asset quality profiles

*   Target ratio at closing

27

Table of Contents

Good Balance: Corporate, Retail & Fee Income

—   Continuity of business mix
 
—   Diversified sources
 
—   Core components:

  –   Corporate Banking
 
  –   Retail Banking
 
  –   Fee Generating Businesses
                                         
Net Income Old Kent Net Income Fifth Third Pro Forma Net Income
Business Percentage Business Percentage Business Percentage
Retail Banking 44 % Retail Banking 49 % Retail Banking 44 %
Corporate Banking 23 % Commercial Banking 30 % Commercial Banking 29 %
Treasury / Other 17 % Advisory Services 9 % Advisory Services 9 %
Investment / Insurance 10 % Data Processing 9 % Data Processing 7 %
Mortgage Banking 6 % Other 3 % Other 6 %
Mortgage Banking 5 %

N.B. Segment data shown for the nine months ended September 30, 2000

28

Table of Contents

Consistency of High Credit Quality Culture

—   No borrower or sector concentration issues
 
—   Average commercial loan balance = $2.8 m
 
—   History of high reserve coverage & low charge-offs
                                                                 
NPAs / Loans + Leases + OREO 1994 1995 1996 1997 1998 1999 Sep-00 Pro Forma 9/00*
FITB 0.66 % 0.83 % 0.85 % 0.78 % 0.78 % 0.58 % 0.64 % 0.68 %
OK 1.17 % 1.07 % 0.98 % 0.78 % 0.72 % 0.61 % 0.75 %
Lg. Cap. Bank Index 1.09 % 0.93 % 1.02 % 0.85 % 0.80 % 0.81 % 0.78 %
 
Loan Loss Reserve / NPAs 1994 1995 1996 1997 1998 1999 Sep-00 Pro Forma 9/00*
FITB 227 % 173 % 165 % 180 % 186 % 252 % 252 % 213 %
OK 195 % 203 % 186 % 198 % 201 % 225 % 225 %
Lg. Cap. Bank Index 204 % 254 % 271 % 308 % 316 % 258 % 202 %
 
Net Charge-offs / Average Loans 1994 1995 1996 1997 1998 1999 Sep-00 Pro Forma 9/00*
FITB 0.15 % 0.23 % 0.40 % 0.43 % 0.47 % 0.36 % 0.29 % 0.27 %
OK 0.14 % 0.17 % 0.50 % 0.50 % 0.34 % 0.20 % 0.20 %
Lg. Cap. Bank Index 0.36 % 0.40 % 0.52 % 0.62 % 0.62 % 0.54 % 0.54 %

NB: Large Cap Bank Index includes
BAC, BK, CMA, CMB, FBF, FSR, FTU, KEY, MEL, ONE, PNC, STI, USB, WB, WFC
* Pro forma combined Fifth Third and Old Kent

29

Table of Contents

Management Accretive

—   Adds experienced local management to expand Fifth
    Third’s affiliate bank network
 
—   Additional product line depth in Investment Advisory,
    Commercial and Residential Mortgage
 
—   Old Kent Management has same shareholder focus
             
Name Age New Position
David J. Wagner 46 Chairman & CEO - Michigan Bank
Robert H. Warrington 53 President - Mortgage Banking Business
Kevin T. Kabat 43 President - Grand Rapids Affiliate

30

Table of Contents

Maintain Decentralized Structure

—   Fifth Third affiliate bank structure designed to:

  •   Enhance growth
 
  •   Clear and local sales accountability and communication
 
  •   All product-lines report to local affiliate CEO
 
  •   Significant “at-risk” salesperson compensation structure

—   Local management and boards to best serve customers
 
—   Transaction creates 3 new Fifth Third affiliates:

  •   Grand Rapids
 
  •   Chicago (combined with existing Northern Indiana Fifth Third affiliate)
 
  •   Detroit
 
  •   Northern Michigan

31

Table of Contents

FITB Affiliate Banks

     
—   Old Kent affiliates will represent a significant portion of
the combined franchise

                                                 
FITB Affiliates Assets Deposits Branches President Years @ 5/3
Cincinnati $ 11.7 $ 8.0 100 G. Schaefer, Jr. 28
Grand Rapids 12.1 7.9 173 K. Kabat — OK Affiliate (c)
Chicago 8.0 6.7 100 B. Stampe  (a) 14 OK Affiliate
Southern Indiana 5.1 2.4 58 J. Daniel (b) 1
Dayton 4.9 2.8 65 D. Sadlier 9
Detroit 3.7 3.0 74 TBD — OK Affiliate
Columbus 4.1 2.5 59 P. Fehring 20
Toledo 4.1 2.6 44 B. Sullivan (b) 1
Central Indiana 3.9 2.6 82 M. Alley 14
Cleveland 3.7 2.4 75 R. King 24
Northern Michigan 1.5 1.1 21 TBD — OK Affiliate
Louisville 2.0 1.0 40 J. Gaunt 31
Northern Kentucky 1.3 0.9 28 T. Rawe 24
Arizona 1.0 0.4 11 B. Robert (b) 2
Lexington 1.0 0.4 17 S. Barnes 6
Ohio Valley 1.0 0.6 23 S. Greenlee 10
Florida 0.5 0.3 10 C. Kvetko 12

(a)   Current Fifth Third executive.
(b)   Indicates executives who have joined FITB from acquired institutions.
(c)   Includes pending acquisitions.

32

Table of Contents

Record of Successful Acquisition Integration

—   Proven ability to improve target profitability
 
—   Fifth Third has always delivered on acquisition promises
                                   
Year ROA at 2000 % of
Affiliate Acquired Purchase ROA Market Cap
Central Indiana (CNB Bancshares) 1999 1.38 % 1.75 % >
Southern Indiana ( “             “ ) 1999 1.42 1.50 > 9.9 %
Northern Indiana ( “             “ ) 1999 1.00 1.33 >
Western Ohio (CitFed*) 1998 0.87 1.64 4.7
Columbus, Ohio (State SB*) 1998 1.26 2.08 5.4
Louisville, Kentucky (Cumberland*) 1994 0.85 1.62 4.1
Northwestern Ohio 1989 0.97 2.18 20.1

*   Thrift Institution

33

Table of Contents

Perspective on Deal Size

—   No dimunition of FITB culture, OK easily assimilated
 
—   Fifth Third’s most recent acquisition (CNB) is fully
integrated and performing at FITB performance levels
 
—   As compared to many recent bank M&A transactions:

  •   Low deal value as % of market capitalization
 
  •   Lower year 1 phased-in cost savings assumptions
 
  •   Strong financial position affords Fifth Third the opportunity to preserve revenues and growth rates

—   IRR estimate exceeds previous Fifth Third transaction IRRs

34

Table of Contents

Linking Share Ownership to Behavior

—   Implementation of Fifth Third’s incentive programs
 
—   Key components

  –   Performance based incentive compensation
 
  –   Variable bonus level tied to high performance targets
 
  –   All front-line managers have and will continue to participate in Fifth Third option grant program
 
  –   Significant personal investment by Fifth Third team in FITB stock
 
  –   Old Kent executives will have significant ownership as well

—   Share ownership mindset:
                     
FITB OK
• % of Employees Owning Shares 77% 33%
• # of Officers Receiving Options 2,250 1,750
• % ownership by Employees & Directors 9.7% 6.5%

35

Table of Contents

Pro Forma Financial Impact

36

Table of Contents

Immediately Accretive to EPS

Dollars in millions, except per share amounts.

                             
Projected Net Income 2001 2002
Fifth Third $ 1,038 $ 1,190
Old Kent 346 373
Pro Forma Combined $ 1,384 $ 1,563
After Tax Cost Savings (1) 23 69
Pro Forma Earnings $ 1,407 $ 1,632
Average diluted shares O/S (millions) (2) 580 580
Pro Forma EPS $ 2.43 $ 2.81
Fifth Third Stand-Alone EPS 2.18 2.50
EPS Accretion 11.3 % 12.5 %

N.B.   Earnings based on mean IBES estimates as of November 16, 2000 and 9/30/00 average FD shares outstanding.
(1)   Assumes synergies are 25% realized in 2001, and 75% in 2002, and 100% thereafter.
(2)   Pro forma.

37

Table of Contents

Conservative Cost Savings

Dollars in millions.

                                 
Old Kent Cost % of
LTM (1) Takeout Old Kent
Salaries & Benefits $ 377 $ 95 25 %
Occupancy & Equipment 110 16 14
Other 224 31 14
Total $ 711 $ 142 20 %
Taxes (50 )
Cost Takeouts (After-Tax) $ 92

N.B. Synergies are expected to be realized 25% in 2001, 75% in 2002, and 100% thereafter.
(1)   Excludes amortization of intangibles and non-recurring expenses.

38

Table of Contents

Merger Related Charges

Dollars in millions.

           
Employee-related Costs $ 77
Conversion Costs 50
Duplicate Facilities / Equipment 39
Conforming Policies / Balance Sheet (1) 80
Other 58
Total (pre-tax) $ 304
Total (after-tax) (2) $ 235

(1)   Approximately equally divided between conforming credit adjustments and balance sheet items.
(2)   Effective tax rate reflects impact of nondeductible items.

39

Table of Contents

Transaction Summary

—   Good fit with Fifth Third existing business
 
—   Enhances revenue growth potential
 
—   Financially compelling / overall and on a per share basis
 
—   Low execution risk
 
—   Example of Fifth Third financial strength and valuation
providing flexibility to acquire attractive businesses

40

Table of Contents

Appendix

41

Table of Contents

    Combined Balance Sheet
 
    Dollars in millions.
                           
Fifth Third Old Kent Pro Forma
Cash & Securities $ 15,872 $ 4,660 $ 20,532
Gross Loans 26,299 15,617 41,916
Allowance for Loan Losses (384 ) (224 ) (608 )
Other Assets 2,609 2,466 5,075
Total Assets $ 44,396 $ 22,519 $ 66,915
 
Deposits $ 25,474 $ 16,758 $ 42,232
Other Liabilities 14,313 4,059 18,372
Capital Securities 173 100 273
Total Equity 4,436 1,602 6,038
Total Liabilities & Equity $ 44,396 $ 22,519 $ 66,915

N.B. Financial data as of September 30, 2000.

42

Table of Contents

Loan Comparison

      Dollars in millions.

                                                           
Fifth Third Old Kent Pro Forma
Loans % Loans % Loans %
Commercial & Industrial $ 8,665 33 % $ 4,277 27 % $ 12,942 31 %
Commercial Real Estate 2,878 11 3,190 20 6,068 14
Construction 1,220 4 1,644 11 2,864 7
Residential Real Estate 5,238 20 1,328 9 6,566 16
Consumer 8,298 32 5,178 33 13,476 32
Total $ 26,299 100 % $ 15,617 100 % $ 41,916 100 %
Yield 8.47 % 9.03 % 8.67 %

N.B. Financial data as of September 30, 2000.

43

Table of Contents

Deposit Comparison

      Dollars in millions.

                                                                   
Fifth Third Old Kent Pro Forma
Deposits % Deposits % Deposits %
Demand Deposits $ 4,041 16 % $ 2,239 13 % $ 6,280 15 %
Int.-bearing Transaction 9,863 39 6,145 37 16,008 38
Time & Foreign 11,570 45 8,374 50 19,944 47
Total $ 25,474 100.0 % $ 16,758 100 % $ 42,232 100.0 %
Rate 4.03 % 4.28 % 4.12 %

N.B. Financial data as of September 30, 2000.

44

Table of Contents

    Noninterest Income Comparison
 
    Dollars in millions.
                                                   
Fifth Third Old Kent Pro Forma
Amount % Amount % Amount %
Investment Advisory $ 195 20 % $ 85 19 % $ 280 20 %
Insurance — — 24 5 24 2
Data Processing 224 23 — — 224 16
Service Charges on Deposits 207 21 81 18 288 20
Mortgage Banking 82 8 183 40 265 18
Other 260 28 82 18 342 24
Securities Gains 2 — — — 2 —
Total $ 970 100 % $ 455 100 % $ 1,425 100 %

N.B. Financial data is for the twelve months ended September 30, 2000.

45

Table of Contents

Credit Quality

                         
Fifth Third Old Kent Pro Forma
Allowance / Loans + Leases 1.48 % 1.43 % 1.47 %
Net Charge-offs /
Average Loans + Leases 0.28 0.25 0.27
NPA’s / Loans + Leases + OREO 0.65 0.75 0.69
Allowance / Non-performing Assets 228 190 213

N.B. Non-performing assets include loans + leases 90 or more days past due still accruing.
Financial data as of September 30, 2000.

46