NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  2008 ($ in millions)  Commercial  Banking  Branch  Banking  Consumer Lending  Investment  Advisors  General  Corporate  Eliminations  Total Net interest income  (a) $1,567 1,714 481 191 (417) - 3,536 Provision for loan and lease losses  1,864  352  441  49  1,854  -  4,560 Net interest income (loss) after provision for loan  and lease losses  (297)  1,362  40  142  (2,271)  - (1,024) Noninterest income: Mortgage banking net revenue  -  13  184  1  1  -  199 Service charges on deposits  186  447  -  9  (1)  641 Corporate banking revenue  401  12  -  18  -  -  431 Investment advisory revenue  18  84  354  (6)  (84) (b) 366 Card and processing revenue 26  246  3  2  701  (66) (c ) 912 Other noninterest income  47  105  40  169  -  363 Securities gains (losses), net  -  -  124  -  (90)  34 Total noninterest income  678  907 351 386 774 (150) 2,946 Noninterest expense: Salaries, wages and incentives  208  409  111  133  476  -  1,337 Employee benefits 35 108 26 26 83 - 278 Net occupancy expense  17 159 8 10 106 300 Technology and communications  7  16  2  2  164  -  191 Equipment expense  4  44  1  1  80  130 Card and processing expense  1  45  6  -  222  -  274 Goodwill impairment 750 - 215 - - - 965 Other noninterest expense  646  512 251 204 (374) (150) 1,089 Total noninterest expense  1,668  1,293 620 376 757 (150) 4,564 Income (loss) before income taxes  (1,287)  976  (229)  152  (2,254)  -  (2,642) Applicable income tax expense (benefit)  (a) (554) 344 (81) 54 (292) - (529) Net income (loss)  (733)  632  (148)  98  (1,962)  -  (2,113) Dividends on preferred stock  -  -  -  -  67  -  67 Net income (loss) available to common  shareholders (733) 632 (148) 98 (2,029) - (2,180) Average assets  $47,834  46,182  23,294  5,496  (8,510)  -  114,296 (a) Includes FTE adjustments of $22.  (b) Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Consolidated Statements of Income.  (c) Card and processing revenues provided to the banking segments are eliminated in the Consolidated Statements of Income.  As further discussed in Note 24, on December 31, 2008, the  Bancorp issued $3.4 billion of Fixed Rate Cumulative Perpetual  Preferred Stock, Series F, and related warrants to the U.S.  Treasury under the U.S. Treasury’s CPP. On February 2, 2011, the Bancorp redeemed all 136,320  shares of its Series F Preferred Stock held by the U.S. Treasury.  The net proceeds from the Bancorp’s previously discussed  common stock and senior notes offerings and other funds were  used to redeem the $3.4 billion of Series F Preferred Stock.  In connection with the redemption of the Series F Preferred  Stock, the Bancorp accelerated the accretion of the remaining  issuance discount on the Series F Preferred Stock and recorded a  corresponding reduction in retained earnings of $153 million. This  resulted in a one-time, noncash reduction in net income available  to common shareholders and related basic and diluted earnings  per share. This transaction will be reflected in the Bancorp’s  Consolidated Financial Statements for the quarter ended March  31, 2011.  Dividends of $15 million were paid on February 2, 2011  when the Series F Preferred Stock was redeemed. The Bancorp notified the U.S. Treasury on February 17, 2011, of its intention to  negotiate for the purchase of the warrants issued to the U.S.  Treasury in connection with the CPP preferred stock investment.  On January 25, 2011, the Bancorp issued $1.0 billion of  senior notes to third party investors, and entered into a  Supplemental Indenture dated January 25, 2011 with Wilmington  Trust Company, as Trustee, which modifies the existing Indenture  for Senior Debt Securities dated April 30, 2008 between the  Bancorp and the Trustee. The Supplemental Indenture and the  Indenture define the rights of the Senior Notes, which Senior  Notes are represented by Global Securities dated as of January 25,  2011. The senior notes bear a fixed rate of interest of 3.625% per  annum. The notes are unsecured, senior obligations of the  Bancorp. Payment of the full principal amount of the notes will be  due upon maturity on January 25, 2016. The notes will not be  subject to the redemption at the Bancorp’s option at any time  prior to maturity.  On January 25, 2011, the Bancorp raised $1.7 billion in new  common equity through the issuance of 121,428,572 shares of  common stock in an underwriting offering with an initial price of  $14.00 per share. On January 24, 2011, the underwriters exercised  their option to purchase an additional 12,142,857 shares at the  offering price of $14.00 per share. In connection with this  exercise, the Bancorp entered into a forward sale agreement which  resulted in a final net payment of 959,821 shares on February 4,  2011.  Repurchase of outstanding TARP preferred stock  Common stock and senior notes offerings  32. SUBSEQUENT EVENTS  128 Fifth Third Bancorp