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17. LONG-TERM DEBT 

The following table is a summary of the Bancorp’s long-term borrowings at December 31: 

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

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(a) Qualify as Tier I capital for regulatory capital purposes. See Note 29 for further information. 

(b) Qualify as Tier II capital for regulatory capital purposes. 

(c) Future periods of debt are floating. 

The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. Contractually obligated payments for long-term debt as of December 31, 2010 are due over the following periods: $14 million in 2011; $15 million in 2012, $1.9 billion in 2013, $30 million in 2014, $1.0 billion in 2015 and $6.6 billion after 2015. 

At December 31, 2010 the Bancorp had outstanding principal balances of $9.1 billion, discounts and premiums of negative $15 million and additions for mark-to-market adjustments on its hedged debt of $439 million. At December 31, 2009, the Bancorp had outstanding principal balances of $10.2 billion, discounts and premiums of negative $15 million and additions for mark-to- market adjustments on its hedged debt of $272 million. The Bancorp is in compliance with all debt covenants at December 31, 2010. 

Under recent regulatory developments, certain of the Bancorp’s trust preferred securities are callable at par as of certain dates, or may become callable at par under certain circumstances. 

## Parent Company Long-Term Borrowings 

In April 2008, the Bancorp issued $750 million of senior notes to third party investors. The senior notes bear a fixed rate of interest of 6.25% per annum. The Bancorp entered into interest rate swaps to convert $675 million to floating rate and, at December 31, 2010, paid a rate of 2.70%. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amount of the notes will be due upon maturity on May 1, 2013. The notes are not subject to redemption at the Bancorp's option at any time prior to maturity. The subordinated floating-rate notes due in 2016 pay interest at three-month LIBOR plus 42 bp. The Bancorp has entered into interest rate swaps to convert its subordinated fixed-rate notes due in 2017 and 2018 to floating-rate, which pay 

interest at three-month LIBOR plus 42 bp and 25 bp, respectively, at December 31, 2010. The rates paid on the swaps hedging the subordinated floating-rate notes due in 2017 and 2018 were 0.72% and 0.55%, respectively, at December 31, 2010. Of the $1.0 billion in 8.25% subordinated fixed rate notes due in 2038, $705 million were subsequently hedged to floating and paid a rate of 3.35% at December 31, 2010. 

The 6.50% junior subordinated notes due in 2067 pay a fixed rate of 6.50% until 2017, then convert to a floating rate at three- month LIBOR plus 137 bp until 2047. Thereafter, the notes pay a floating rate at one-month LIBOR plus 237 bp. Junior subordinated notes due in 2067, with a carrying amount of $613 million and an outstanding principal balance of $575 million at December 31, 2010, pay a fixed rate of 7.25% until 2057, then convert to a floating rate at three-month LIBOR plus 257 bp. The Bancorp entered into interest rate swaps to convert $500 million of the fixed-rate debt into a floating rate. At December 31, 2010, the weighted-average rate paid on these swaps was 1.01%. Junior subordinated notes due in 2067, with a carrying amount of $907 million and an outstanding principal balance of $863 million at December 31, 2010, pay a fixed rate of 7.25% until 2057, then convert to a floating rate at three-month LIBOR plus 303 bp thereafter. The Bancorp entered into interest rate swaps to convert $700 million of the fixed-rate debt into a floating rate. At December 31, 2010, the weighted-average rate paid on the swaps was 1.44%. The obligations were issued to Fifth Third Capital Trusts IV, V and VI, respectively. The Bancorp has fully and unconditionally guaranteed all obligations under the trust preferred securities issued by Fifth Third Capital Trusts IV, V and VI. In addition, the Bancorp entered into replacement capital covenants for the benefit of holders of long-term debt senior to the junior subordinated notes that limits, subject to certain 

