Taylor Scott
Fifth Third Bank, founded in 1858, is one of the largest banks in the United States, with over 20,000 employees and 1,100 branches across 11 states. The bank is a subsidiary of Fifth Third Bancorp, a bank holding company headquartered in Cincinnati, Ohio, and is ranked 321st on the Fortune 500 list. Fifth Third Bank has a rich history, with its name derived from the merger of two predecessor companies, Third National Bank and Fifth National Bank, in 1908. Over the years, the bank has been involved in various acquisitions and settlements, facing allegations of discrimination and illegal cross-selling practices.
| Characteristics | Values |
|---|---|
| Parent company | Fifth Third Bancorp |
| Year founded | 1858 |
| Number of employees | 20,000 |
| Number of branches | 1,100 |
| Number of ATMs | 2,400 |
| Number of states | 11 |
| States | Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia |
| Commercial banking | Also in Texas and California |
| Stock symbol | FITB |
| Ranking | 321st on the Fortune 500 |
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What You'll Learn
Fifth Third Bank's parent company, Fifth Third Bancorp
Fifth Third Bank is a financial institution that offers services such as online and mobile banking, allowing customers to check balances, transfer money, deposit cheques, and more. The name "Fifth Third" is derived from the merger of two predecessor companies, Third National Bank and Fifth National Bank, in 1908.
Fifth Third Bank's parent company is Fifth Third Bancorp, a bank holding company headquartered in Cincinnati, Ohio. Fifth Third Bancorp is ranked 321st on the Fortune 500 list and is among the largest banks in the United States. It operates 1,100 branches and 2,400 automated teller machines across 11 states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia.
Fifth Third Bancorp has a rich history that began in 1858 when the Bank of the Ohio Valley was founded by William W. Scarborough in Cincinnati, Ohio. Over the years, the bank has grown and evolved, with the name changing to Third National Bank in 1863 and later merging with Fifth National Bank in 1908 to become Fifth Third National Bank of Cincinnati. The hyphen was later dropped, and the name underwent further changes until it became Fifth Third Bank in 1969.
Fifth Third Bancorp has a strong commitment to its customers, employees, communities, and shareholders. It strives to be the nation's highest-performing regional bank and to be the most valued and trusted financial institution. The company has been recognised for its ethical practices and has been named one of Ethisphere's World's Most Ethical Companies for several years.
Fifth Third Bancorp has made significant acquisitions and partnerships over the years. In 2018, it acquired MB Financial, and in 2020, it partnered with Trust & Will. The company has also been an industry leader in innovation, becoming the first bank in the world to achieve 100% renewable power through a single solar project in North Carolina. In 2021, it introduced Fifth Third Momentum Banking, an everyday banking solution to help customers manage their finances and protect their identity.
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The bank's history of discrimination allegations
Fifth Third Bank has a long history dating back to 1858 when it was founded as the Bank of the Ohio Valley. Over the years, the bank has grown to become one of the largest banks in the United States, with over 20,000 employees and a presence in 11 states. The bank has also been recognised for its commitment to ethical practices and has been named one of Ethisphere's World's Most Ethical Companies for several years.
However, Fifth Third Bank has also faced several allegations of discrimination, particularly in its lending practices. In September 2015, the US Department of Justice and the Consumer Financial Protection Bureau (CFPB) announced an $18 million settlement to resolve allegations that the bank engaged in a pattern of discrimination against African-American and Hispanic borrowers in its indirect auto lending business. The settlement included compensation for affected borrowers and required the bank to change the way it priced automobile loans, limiting dealer markup to reduce disparities in pricing.
The investigation by the Department of Justice and the CFPB found that Fifth Third's previous system of discretionary markups directly resulted in qualified African-American and Hispanic borrowers paying higher interest rates than non-Hispanic white borrowers. This practice was found to be in violation of the Equal Credit Opportunity Act (ECOA), which prohibits discrimination in all forms of lending. The settlement also required Fifth Third to improve its monitoring and compliance systems to prevent future discrimination.
In March 2020, the CFPB charged Fifth Third with illegal cross-selling, which was resolved in 2024 with the bank paying $20 million. Additionally, a class action lawsuit was filed by former MB Financial shareholders, alleging that Fifth Third's cross-selling strategy artificially inflated its stock price, resulting in unfair compensation for MB Financial shareholders during the acquisition.
In March 2024, the Minnesota Attorney General filed a lawsuit against a Fifth Third subsidiary, Dividend Finance, alleging that they charged customers hidden fees on loans for residential solar panels, violating state laws against deceptive trade practices and illegally high-interest rates. These allegations further contribute to the concerns surrounding Fifth Third Bank's lending practices.
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Fifth Third Bank's commitment to ethical practices
Fifth Third Bank has demonstrated its commitment to ethical practices through various initiatives and recognitions. The bank has been recognized by Ethisphere, a global leader in defining and advancing ethical business practices, as one of the World's Most Ethical Companies® for several consecutive years. This recognition highlights Fifth Third Bank's commitment to business integrity, robust ethics, compliance, and governance programs.
Fifth Third Bank has set ambitious environmental and social goals, including a $100 billion environmental and social finance target to be achieved by 2030. They have also taken concrete steps towards racial equality, equity, and inclusion with their $2.8 billion Accelerating Racial Equality, Equity and Inclusion initiative. This includes the Fifth Third Bank Empowering Black Futures Neighborhood Program, which provides targeted neighborhoods with capital, expertise, and collaboration to foster equitable growth and economic mobility.
The bank has a long history dating back to 1858, when it was founded as the Bank of the Ohio Valley. Over the years, Fifth Third Bank has become synonymous with stability, community impact, and innovation. They have consistently adapted to changing times while remaining true to their core values, earning them a reputation as one of the nation's highest-performing regional banks.
Fifth Third Bank has faced some legal challenges, including allegations of discrimination in lending practices and violations of telemarketing laws. However, they have worked towards resolving these issues through settlements and remedial actions. The bank has also been recognized for its commitment to taking care of its customers, employees, communities, and shareholders, striving to be the bank that people most value and trust.
Overall, Fifth Third Bank's commitment to ethical practices is evident through its dedication to integrity, social responsibility, and community impact. By embracing innovation and adapting to the changing landscape, the bank has positioned itself as a trusted and valued financial institution.
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The bank's merger with Emerald Financial in 1999
Fifth Third Bank, also known as 5/3 Bank, is a financial institution with a rich history that dates back to 1858. The bank has grown and evolved over the years, and in 1999, it made a significant move by acquiring Emerald Financial Corporation. This acquisition was a notable event in the history of Fifth Third Bank, and here is more information about it.
In 1999, Fifth Third Bank continued its expansion by acquiring Emerald Financial for $204 million. This acquisition was a significant step for the bank as it strengthened its presence in Ohio, particularly in the Cleveland area. Emerald Financial, based in Strongsville, Ohio, was the parent company of Strongsville Savings Bank, which had $670 million in assets and 15 branches in Cleveland. By merging Strongsville Savings Bank into its northeastern Ohio unit, Fifth Third Bank created an 80-branch subsidiary, further solidifying its position in the region.
The deal with Emerald Financial was structured as a stock transaction, with Fifth Third offering 0.3 shares for each share of Emerald Financial. This merger demonstrated Fifth Third Bank's commitment to growth and expansion, building upon its strong foundation and history. The bank has always aimed to create a trusted institution that serves as a catalyst for economic growth and prosperity in the communities it serves.
The acquisition of Emerald Financial was part of Fifth Third Bank's strategy to expand its reach and influence while maintaining shareholder value. This merger was one of several acquisitions and strategic moves made by the bank to solidify its position as one of the largest banks in the United States. Fifth Third Bank has a long history of adapting to changing times, innovating, and remaining true to its core values, which has contributed to its success and reputation as a stable and trusted financial institution.
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Fifth Third Bank's presence in 11 states
Fifth Third Bank has a presence in 11 states across the US. The bank is headquartered in Cincinnati, Ohio, and has over 1,100 branches and 2,400 ATMs across the country.
Fifth Third Bancorp is the parent company of Fifth Third Bank, which was founded in 1858 as the Bank of the Ohio Valley by William W. Scarborough. The name "Fifth Third" comes from the merger of two predecessor companies, Third National Bank and Fifth National Bank, in 1908.
The bank's presence spans the following 11 states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia. In addition to its retail branches, Fifth Third also offers commercial banking and wealth and asset management services in Texas and California.
Fifth Third Bank has been recognised for its commitment to ethical practices and innovation. It was named one of Ethisphere's World's Most Ethical Companies for several years and was the first bank in the world to achieve 100% renewable power through a single solar project in North Carolina. The bank has also been recognised for its mobile banking app experience, ranking highly in a J.D. Power survey.
With approximately 20,000 employees, Fifth Third Bank is one of the largest banks in the United States, ranked 321st on the Fortune 500. The bank has a rich history of stability and community impact, adapting to changing times while remaining true to its core values.
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Frequently asked questions
Fifth Third Bank was founded in 1858 as the Bank of the Ohio Valley by a group of visionaries led by William W. Scarborough. The name "Fifth Third" is derived from the names of the bank's two predecessor companies, Third National Bank and Fifth National Bank, which merged in 1908.
Fifth Third Bancorp is the parent company of Fifth Third Bank. It is headquartered in Cincinnati, Ohio, and provides banking and financial services, retail and commercial banking, consumer lending services, and investment advisory services through Fifth Third Bank.
Some key milestones include:
- 1999: Acquired Emerald Financial for $204 million.
- 2008: The United States Department of the Treasury invested $3.4 billion in the company as part of the Troubled Asset Relief Program.
- 2011: The company repurchased the investment from the Treasury.
- 2015: The US Department of Justice and the Consumer Financial Protection Bureau announced an $18 million settlement for allegations of discrimination in lending practices.
- 2018: Fifth Third acquired MB Financial in a $4.7 billion transaction and became the first bank to achieve 100% renewable power through a single solar project.
Fifth Third Bank operates in 11 states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia. It has approximately 20,000 employees, 1,100 branches, and 2,400 automated teller machines.
Fifth Third Bank is ranked 321st on the Fortune 500 list and is one of the largest banks in the United States. It has been named among Ethisphere's World's Most Ethical Companies for several years and is known for its commitment to its customers, employees, communities, and shareholders.
