Fidelity Southern Corporation Earns $6.8 Million In Fourth Quarter; Record $39.1 Million In 2015

21 Jan, 2016, 14:24 ET from Fidelity Southern Corporation

ATLANTA, Jan. 21, 2016 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the quarter and year ended December 31, 2015.

KEY RESULTS

  • Net income of $6.8 million and $39.1 million, or $0.28 and $1.64 per diluted share, for the quarter and year ended December 31, 2015
  • Net interest margin increased 7 basis points during the quarter to 3.23%
  • Total assets at December 31, 2015 of $3.8 billion increased 10.0% in the fourth quarter and 24.8% in 2015
  • Loan portfolio increased by $313.3 million, or 10.5%, during the quarter and $672.5 million, or 25.6%, year over year, to $3.3 billion
  • Loans serviced for others grew by $255.6 million, or 3.3%, during the quarter and $1.5 billion, or 22.4%, year over year, to $8.0 billion
  • Total deposits increased by $267.5 million or 9.2%, during the quarter and $721.5 million, or 29.4%, year over year, to $3.2 billion
  • Total revenues of $61.7 million and $244.7 million for the quarter and year ended December 31, 2015
  • Return on Average Assets of 0.72% and 1.16% for the quarter and year ended December 31, 2015
  • On October 2, 2015, the Bank acquired approximately $281 million in assets, including $145 million in loans, and assumed approximately $266 million in customer deposits of The Bank of Georgia under an FDIC-assisted transaction
  • On October 26, 2015, the Company announced a Purchase and Assumption agreement with American Enterprise Bankshares, Inc. ("AEB") in which the Company will acquire all of the common stock of AEB. The transaction is expected to close in the first quarter of 2016. As of September 30, 2015, AEB reported approximately $205 million in assets, $156 million in loans, and $177 million in deposits

Fidelity's Chairman, Jim Miller, said, "We are optimistic about 2016.  We are taking market share so earnings have remained strong, even in an economy which seems mostly fueled by real estate, and also with help from the consumer.  Diversity of product has certainly helped as has expansion of our service teams with more branches and locations around the Southeast, which lets us offer our relationship banking to more companies and individuals.  Build-out of Trust Services continues and will contribute this year.  As we focus on profitability, more branching is planned, as well as growth of our recent acquisitions."

BALANCE SHEET

Total assets at December 31, 2015, grew to $3.8 billion, an increase of $349.6 million, or 10.0%, compared to September 30, 2015, and $763.9 million, or 24.8%, compared to December 31, 2014. These increases are primarily attributable to acquisitions made during the quarter and year, as well as organic growth in the indirect and mortgage loan portfolios held for investment.

On October 2, 2015, the Bank acquired substantially all the assets and liabilities of The Bank of Georgia in a Purchase and Assumption agreement with the FDIC. The Bank received $266 million in deposits, $144.7 million in loans at fair value, $2.2 million in core deposit intangible, $9.0 million in premises and equipment, and $6.4 million in other real estate. The transaction was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. Fair values are subject to refinement for up to one year after the closing date of the acquisition.

Loans

Total loans held for investment at December 31, 2015, grew to $2.9 billion, an increase of $255.1 million, or 9.7%, compared to September 30, 2015, and $643.6 million, or 28.6%, compared to December 31, 2014. The quarter and year over year increase includes the $144.7 million in loans acquired from The Bank of Georgia in the fourth quarter.

Indirect loans grew by $49.5 million and $230.2 million, or 3.5% and 18.9%, respectively, as the Bank continued to expand in the auto loan market. Mortgage loans increased by $59.2 million and $179.1 million, or 16.5% and 75.3%, respectively, compared to September 30, 2015 and December 31, 2014. $31.3 million of this increase related to organic growth, with the remaining $27.9 million added as part of The Bank of Georgia FDIC-assisted transaction. Commercial loans increased by $124.0 million and $179.1 million, or 21.4% and 34.2%, respectively, compared to September 30, 2015 and December 31, 2014. $31.8 million of the increase in commercial loans for the quarter was related to organic growth, with the remaining $92.2 million added as part of The Bank of Georgia FDIC-assisted transaction.

Total loans held for sale at December 31, 2015, grew to $397.8 million, an increase of $58.2 million, or 17.1%, compared to September 30, 2015, and $28.9 million, or 7.8%, compared to December 31, 2014. The quarter and year over year increases are due to increased production in indirect and mortgage loans held for sale.

Servicing rights showed steady growth as well, growing to $84.9 million at December 31, 2015, a net increase of $2.3 million, or 2.8%, compared to September 30, 2015, and $20.0 million, or 30.9%, compared to December 31, 2014, as residential mortgage, SBA, and indirect loan sales continue to grow.

Asset Quality

Nonaccrual loans increased $5.0 million for the quarter, to $34.3 million. This increase was primarily due to nonaccrual loans acquired as part of The Bank of Georgia FDIC-assisted transaction of $6.4 million, offset by a decrease in the existing nonaccrual loan portfolio of $1.4 million.

Other real estate increased $4.0 million for the quarter, to $18.7 million. This increase was primarily due to other real estate acquired as part of The Bank of Georgia FDIC-assisted transaction of $6.4 million, offset by a decrease in the existing other real estate portfolio of $2.4 million.

Classified loans increased $36.2 million for the quarter, to $84.1 million. This increase was primarily due to classified loans acquired as part of The Bank of Georgia FDIC-assisted transaction of $47.5 million, offset by a decrease in the existing classified loan portfolio of $11.3 million.

Deposits

Total deposits at December 31, 2015, of $3.2 billion increased $267.5 million, or 9.2%, compared to September 30, 2015, and $721.5 million, or 29.4%, compared to December 31, 2014.

The year over year net increase occurred primarily due to organic growth of $253.8 million, as well as the acquisition of deposits from The Bank of Georgia FDIC-assisted transaction during October 2015 of $278.2 million, eight branches in Florida during September 2015 of $151.3 million, and one branch in Florida during January 2015 of $38.2 million.

Average core deposits, including noninterest-bearing demand deposits, grew by $284.3 million, or 15.2%, during the quarter and $476.4 million, or 28.4%, year over year, increasing to $2.2 billion, particularly in commercial accounts and through the acquisition of branch deposits discussed above.

Borrowings

Other borrowings increased by $72.5 million, or 52.9%, during the quarter and decreased $81.4 million, or 27.9%, year over year. The quarterly and year over year fluctuations occurred due to changes in short-term borrowings. The Bank manages short-term liquidity needs through short-term FHLB advances and Fed funds purchased.

Subordinated debt increased by $74.0 million year over year due to the issuance of $75 million in subordinated notes, net of issuance costs, during May 2015. The additional subordinated debt was issued to support general corporate purposes and acquisitions.

INCOME STATEMENT

Interest Income

Interest income was $33.0 million and $116.6 million for the quarter and year ended December 31, 2015, respectively, an increase of $6.4 million and $15.0 million, or 24.1% and 14.7%, respectively, as compared to the same periods in 2014. The increase was primarily due to a year over year increase in average loans of $611.6 million, or 26.8%, mainly in the indirect and mortgage portfolios, while the yield on loans decreased by 9 basis points, from 4.02% to 3.93%, as new loans, on average, were originated at lower yields over the previous twelve months.

On a linked-quarter basis, interest income increased by $3.4 million, or 10 basis points, primarily due to a $230.0 million increase in average loans. This increase was primarily due to an organic growth of $52.8 million, as well as the acquisition of $144.7 million in loans from The Bank of Georgia in the fourth quarter of 2015, and $30.2 million in loans from First Bank late in the third quarter of 2015.

Interest Expense

Interest expense was $4.9 million and $15.8 million for the quarter and year ended December 31, 2015, an increase of $1.9 million and $4.6 million, or 62.3% and 40.8%, respectively, as compared to the same periods in 2014. These increases occurred primarily due to an increase in average subordinated debt of $74.0 million and $44.0 million for the quarter and year ended December 31, 2015, compared to the same periods in 2014, due to the addition of $75 million in subordinated debt in May 2015, as well as an increase in average interest bearing deposits of $535.9 million and $364.9 million for the quarter and year ended December 31, 2015, compared to the same periods in 2014. Part of this increase in average interest bearing deposits was due to acquisitions, with $208.2 million in interest bearing deposits added in the fourth quarter from The Bank of Georgia, and $365.8 million added through the year from all acquisitions.

On a linked-quarter basis, interest expense increased by $437,000, or 9.8%, primarily due to the increase in the average balance of interest bearing deposits of $330.2 million for the quarter. This increase includes $208.2 million in interest-bearing deposits acquired from The Bank of Georgia FDIC-assisted transaction during the fourth quarter of 2015, and $124.5 million in interest-bearing deposits acquired from First Bank late in the third quarter of 2015.

Provision for Loan Losses

The provision for loan losses was $3.1 million and $4.4 million for the quarter and year ended December 31, 2015, an increase of $2.5 million and $3.8 million, respectively, as compared to the same periods in 2014. These increases are due to the net growth in the total loan portfolio, excluding acquired loans, which increased $487.2 million compared to December 31, 2014, to $2.7 billion.

Net Interest Margin

The net interest margin was 3.23% and 3.24% for the quarter and year ended December 31, 2015, compared to 3.47% and 3.62% for the same periods in 2014. The decrease was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2015. Although the net interest margin decreased year over year, net interest income (tax equivalent) rose to $28.3 million and $101.2 million for the quarter and year ended December 31, 2015, compared to $23.7 million and $90.8 million for the same periods in 2014. These increases were due primarily to an increase of 27.8% and 24.3% in interest earning assets for the quarter and year ended December 31, 2015 compared to the same periods in 2014, due to a combination of organic growth and acquisitions previously described.

On a linked-quarter basis, the net interest margin increased 7 basis points. This increase is primarily due to loans acquired in The Bank of Georgia FDIC-assisted transaction in the fourth quarter of 2015 having higher yields than the existing portfolio.

Noninterest Income

Noninterest income was $28.7 million and $128.0 million for the quarter and year ended December 31, 2015, an increase of $4.0 million and $32.7 million, or 16.0% and 34.3%, respectively, as compared to the same periods in 2014. The increases were primarily related to increases in mortgage banking income as compared to the prior year.

Noninterest income from mortgage banking activities increased by $3.3 million and $29.8 million for the quarter and year, respectively, as compared to the same periods in 2014. Gains on mortgage loan sales increased $3.3 million and $26.7 million for the quarter and year, respectively, as compared to the same periods in 2014. Quarterly mortgage loan production increased by $52.4 million, or 10.2%, to $567.9 million while quarterly mortgage loan sales increased by $44.8 million, or 9.4%, to $520.7 million, as compared to the same periods in 2014. Year over year mortgage loan production increased by $739.2 million, or 38.2%, to $2.7 billion while year over year mortgage loan sales increased by $696.4 million, or 39.0%, to $2.5 billion.

On a linked-quarter basis, noninterest income decreased by $1.9 million, or 6.3%, primarily attributable to a decrease in income from mortgage banking activities of $2.0 million, due to lower gain on sale of mortgage servicing in the fourth quarter of 2015. See "Analysis of Mortgage Lending" tables below. This decrease was partially offset by an increase in service charges and other fees of $479,000, or 18.7%, as a result of growth in loan and deposit accounts.

Noninterest Expense

Noninterest expense was $43.2 million and $163.1 million for the quarter and year ended December 31, 2015, an increase of $6.6 million and $24.3 million, or 18.0% and 17.5%, respectively, as compared to the same periods in 2014.

During the quarter, Fidelity Bank continued its strategy of increasing its footprint across a larger geographic area, and increasing production as well. The Bank of Georgia FDIC-assisted transaction in October 2015 was the primary reason for increased noninterest expense in many areas. Salaries, benefits and commissions for the quarter and year increased $3.2 million and $17.2 million, or 13.8% and 19.8%, compared to the same periods in 2014. Occupancy expense for the quarter and year increased $1.3 million and $3.0 million, or 37.1% and 23.4%, compared to the same periods in 2014. Other noninterest expense for the quarter and year ended December 31, 2015 increased by $1.9 million and $3.6 million, or 22.4% and 10.4%, compared to the same periods in 2014, which is primarily due to increases associated with acquisitions and new locations.

On a linked-quarter basis, noninterest expense increased by $3.2 million, or 8.0%, primarily due to a $1.6 million increase in salaries, benefits and commissions, primarily due to The Bank of Georgia FDIC-assisted transaction in the fourth quarter of 2015 and First Bank branch acquisition late in the third quarter of 2015 increasing the Bank's headcount, along with an increase of $541,000 in occupancy costs due to the increased number of locations due to acquisition and expansion.

ABOUT FIDELITY SOUTHERN CORPORATION

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and trust and wealth management services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2014 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(UNAUDITED)

As of or for the Quarter Ended

($ in thousands, except per share data)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

INCOME STATEMENT DATA:

Interest income

$

33,043

$

29,597

$

27,516

$

26,486

$

26,633

Interest expense

4,897

4,460

3,502

2,945

3,018

Net interest income

28,146

25,137

24,014

23,541

23,615

Provision for loan losses

3,097

1,328

(182)

108

556

Noninterest income

28,676

30,619

36,695

32,038

24,711

Noninterest expense

43,237

40,049

41,165

38,635

36,645

Net income

6,777

9,217

12,451

10,690

7,213

PERFORMANCE:

Earnings per common share - basic

$

0.29

$

0.41

$

0.58

$

0.50

$

0.34

Earnings per common share - diluted

0.28

0.39

0.52

0.45

0.31

Total revenues

$

61,719

$

60,216

$

64,211

$

58,524

$

51,344

Book value per common share

$

13.03

$

12.83

$

12.90

$

12.85

$

12.40

Tangible book value per common share

12.66

12.55

12.70

12.64

12.22

Cash dividends paid per common share

$

0.10

$

0.10

$

0.10

$

0.09

$

0.09

Return on average assets

0.72

%

1.07

%

1.55

%

1.40

%

0.99

%

Return on average shareholders' equity

9.08

%

12.69

%

17.97

%

16.20

%

10.99

%

Net interest margin

3.23

%

3.16

%

3.24

%

3.35

%

3.47

%

END OF PERIOD BALANCE SHEET SUMMARY:

Total assets

$

3,849,063

$

3,499,465

$

3,374,938

$

3,205,293

$

3,085,135

Earning assets

3,491,642

3,157,693

3,050,960

2,883,778

2,790,259

Loans, excluding Loans Held-for-Sale

2,896,948

2,641,814

2,411,143

2,317,581

2,253,306

Total loans

3,294,782

2,981,465

2,885,410

2,723,098

2,622,241

Total deposits

3,179,511

2,912,038

2,639,248

2,652,896

2,458,022

Shareholders' equity

301,459

295,286

285,946

274,898

264,951

Assets serviced for others

8,033,479

7,777,854

7,292,561

6,900,870

6,562,505

DAILY AVERAGE BALANCE SHEET SUMMARY:

Total assets

$

3,751,012

$

3,423,373

$

3,228,867

$

3,098,079

$

2,921,650

Earning assets

3,465,703

3,164,897

2,980,741

2,858,827

2,711,139

Loans, excluding Loans Held-for-Sale

2,873,658

2,516,582

2,361,146

2,298,789

2,192,383

Total loans

3,186,124

2,956,109

2,778,117

2,656,556

2,509,552

Total deposits

3,146,089

2,731,407

2,624,412

2,530,988

2,416,139

Shareholders' equity

296,195

288,220

277,961

267,561

260,309

Assets serviced for others

7,902,116

7,521,391

7,104,630

6,742,214

6,413,357

ASSET QUALITY RATIOS:

Net charge-offs/(recoveries), annualized to average loans

0.18

%

0.05

%

(0.03)%

0.29

%

0.50

%

Allowance to period-end loans

0.91

%

0.94

%

0.97

%

1.03

%

1.13

%

Nonperforming assets to total loans, ORE and repossessions

1.93

%

1.86

%

2.01

%

2.33

%

2.61

%

Allowance to nonperforming loans, ORE and repossessions

0.47x

0.50x

0.48x

0.44x

0.43x

SELECTED RATIOS:

Loans to total deposits

91.11

%

90.72

%

91.36

%

87.36

%

91.67

%

Average total loans to average earning assets

91.93

%

93.40

%

93.20

%

92.92

%

92.56

%

Noninterest income to total revenue

46.46

%

50.85

%

57.15

%

54.74

%

48.13

%

Leverage ratio

8.84

%

9.41

%

9.77

%

9.89

%

10.40

%

Common equity tier 1 capital

8.21

%

8.82

%

8.96

%

9.12

%

N/A

Tier 1 risk-based capital

9.50

%

10.25

%

10.46

%

10.69

%

11.07

%

Total risk-based capital

12.40

%

13.40

%

13.71

%

11.50

%

12.01

%

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

($ in thousands)

December 31, 2015

September 30, 2015

December 31, 2014

ASSETS

Cash and cash equivalents

$

86,133

$

87,373

$

71,605

Investment securities available-for-sale

172,397

155,749

149,590

Investment securities held-to-maturity

14,398

12,816

7,349

Loans held-for-sale

397,834

339,651

368,935

Loans

2,896,948

2,641,814

2,253,306

Allowance for loan losses

(26,464)

(24,750)

(25,450)

Loans, net of allowance for loan losses

2,870,484

2,617,064

2,227,856

Premises and equipment, net

79,629

69,356

60,857

Other real estate, net

18,677

14,707

22,564

Bank owned life insurance

66,109

66,008

59,553

Servicing rights, net

84,944

82,659

64,897

Other assets

58,458

54,082

51,929

Total assets

$

3,849,063

$

3,499,465

$

3,085,135

LIABILITIES

Deposits

Noninterest-bearing demand deposits

$

786,779

$

722,771

$

558,018

Interest-bearing deposits

  Demand and money market

1,040,281

956,149

788,373

  Savings

362,793

317,766

321,621

  Time deposits

989,658

915,352

790,010

    Total deposits

3,179,511

2,912,038

2,458,022

Short-term borrowings

209,730

137,186

291,087

Subordinated debt, net

120,322

120,289

46,303

Other liabilities

38,041

34,666

24,772

Total liabilities

3,547,604

3,204,179

2,820,184

SHAREHOLDERS' EQUITY

Preferred stock

Common stock

169,782

166,989

162,575

Accumulated other comprehensive income, net

1,610

2,702

2,814

Retained earnings

130,067

125,595

99,562

Total shareholders' equity

301,459

295,286

264,951

Total liabilities and shareholders' equity

$

3,849,063

$

3,499,465

$

3,085,135

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

For the Quarter Ended

For the Year Ended

($ in thousands, except per share data)

December 31, 2015

September 30, 2015

December 31, 2014

December 31, 2015

December 31, 2014

INTEREST INCOME

Loans, including fees

$

31,493

$

28,462

$

25,382

$

111,626

$

96,664

Investment securities

1,523

1,108

1,242

4,936

4,918

Federal funds sold and bank deposits

27

27

9

80

85

Total interest income

33,043

29,597

26,633

116,642

101,667

INTEREST EXPENSE

Deposits

3,308

2,866

2,609

11,349

9,707

Other borrowings

133

179

130

650

406

Subordinated debt

1,456

1,415

279

3,805

1,113

Total interest expense

4,897

4,460

3,018

15,804

11,226

Net interest income

28,146

25,137

23,615

100,838

90,441

Provision for loan losses

3,097

1,328

556

4,351

531

Net interest income after provision for loan losses

25,049

23,809

23,059

96,487

89,910

NONINTEREST INCOME

Service charges on deposit accounts

1,447

1,230

1,229

4,955

4,438

Other fees and charges

1,589

1,327

1,189

5,356

4,349

Mortgage banking activities

18,806

20,799

15,489

85,540

55,781

Indirect lending activities

3,774

4,037

3,847

18,821

18,457

SBA lending activities

1,477

1,494

1,305

5,265

4,987

Bank owned life insurance

952

496

304

2,440

1,673

Securities losses

(329)

(329)

Other

960

1,236

1,348

5,980

5,635

Total noninterest income

28,676

30,619

24,711

128,028

95,320

NONINTEREST EXPENSE

Salaries and employee benefits

20,581

17,800

17,926

76,871

67,006

Commissions

6,118

7,270

5,545

27,342

19,988

Occupancy, net

4,811

4,270

3,508

16,017

12,985

Communication

1,203

1,083

1,068

4,336

3,897

Other

10,524

9,626

8,598

38,520

34,878

Total noninterest expense

43,237

40,049

36,645

163,086

138,754

Income before income tax expense

10,488

14,379

11,125

61,429

46,476

Income tax expense

3,711

5,162

3,912

22,294

16,440

NET INCOME

$

6,777

$

9,217

$

7,213

$

39,135

$

30,036

EARNINGS PER SHARE:

Basic earnings per share

$

0.29

$

0.41

$

0.34

$

1.77

$

1.41

Diluted earnings per share

$

0.28

$

0.39

$

0.31

$

1.64

$

1.28

Weighted average common shares outstanding-basic

23,083

22,604

21,343

22,137

21,313

Weighted average common shares outstanding-diluted

24,071

23,903

23,544

23,863

23,468

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)

($ in thousands)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

Commercial

$

703,292

$

579,319

$

533,853

$

519,062

$

524,145

SBA

135,993

138,078

138,819

138,198

134,766

      Total commercial and SBA loans

839,285

717,397

672,672

657,260

658,911

Construction loans

177,033

154,335

146,778

134,456

123,994

Indirect automobile

1,449,480

1,399,932

1,281,978

1,251,044

1,219,232

Installment

14,055

12,236

11,698

12,209

13,222

      Total consumer loans

1,463,535

1,412,168

1,293,676

1,263,253

1,232,454

Residential mortgage

302,378

248,697

210,740

180,424

158,498

Home equity lines of credit

114,717

109,217

87,277

82,188

79,449

 Total mortgage loans

417,095

357,914

298,017

262,612

237,947

 Loans

2,896,948

2,641,814

2,411,143

2,317,581

2,253,306

Loans held-for-sale:

Residential mortgage

233,525

218,308

310,793

241,974

181,424

SBA

14,309

11,343

13,474

13,543

12,511

Indirect automobile

150,000

110,000

150,000

150,000

175,000

     Total loans held-for-sale

397,834

339,651

474,267

405,517

368,935

          Total loans

$

3,294,782

$

2,981,465

$

2,885,410

$

2,723,098

$

2,622,241

Noncovered loans

$

2,874,308

$

2,617,991

$

2,385,489

$

2,287,422

$

2,218,493

Covered loans

22,640

23,823

25,654

30,159

34,813

Loans held-for-sale

397,834

339,651

474,267

405,517

368,935

          Total loans

$

3,294,782

$

2,981,465

$

2,885,410

$

2,723,098

$

2,622,241

 

 

DEPOSITS BY CATEGORY

(UNAUDITED)

For the Three Months Ended

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

($ in millions)

Average Amount

Rate

Average Amount

Rate

Average Amount

Rate

Average Amount

Rate

Average Amount

Rate

Noninterest-bearing demand deposits

$

761,507

%

676,976

%

$

650,467

%

$

605,762

%

$

567,423

—%

Interest-bearing demand deposits

1,020,241

0.26

%

881,456

0.25

%

843,226

0.24

%

812,833

0.23

%

783,896

0.25

%

Savings deposits

369,536

0.35

%

308,503

0.34

%

301,599

0.33

%

309,393

0.33

%

323,605

0.35

%

Time deposits

994,805

0.92

%

864,472

0.94

%

829,120

0.94

%

803,000

0.90

%

741,215

0.98

%

Total average deposits

$

3,146,089

0.42

%

$

2,731,407

0.42

%

$

2,624,412

0.41

%

$

2,530,988

0.40

%

$

2,416,139

0.43

%

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)

($ in thousands)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

NONPERFORMING ASSETS

Nonaccrual loans

$

34,325

$

29,374

$

30,756

$

32,432

$

34,856

Loans past due 90 days or more and still accruing

1,284

3,968

836

1,006

827

Repossessions

1,561

1,435

1,041

1,002

1,183

Other real estate (ORE)

18,677

14,707

16,070

19,988

22,564

Nonperforming assets

$

55,847

$

49,484

$

48,703

$

54,428

$

59,430

NONPERFORMING ASSET RATIOS

Loans 30-89 days past due

$

9,353

$

7,018

$

3,653

$

3,934

$

4,551

Loans 30-89 days past due to loans

0.32

%

0.27

%

0.15

%

0.17

%

0.20

%

Loans past due 90 days or more and still accruing to loans

0.04

%

0.15

%

0.03

%

0.04

%

0.04

%

Nonperforming assets to loans, ORE, and repossessions

1.93

%

1.86

%

2.01

%

2.33

%

2.61

%

ASSET QUALITY RATIOS

Classified Asset Ratio (3)

28.38

%

17.56

%

18.59

%

20.45

%

21.49

%

Nonperforming loans as a % of loans

1.24

%

1.26

%

1.31

%

1.44

%

1.58

%

ALL to nonperforming loans

74.32

%

74.23

%

74.15

%

71.05

%

71.32

%

Net charge-offs/(recoveries), annualized to average loans

0.18

%

0.05

%

(0.03)

%

0.29

%

0.50

%

ALL as a % of loans

0.91

%

0.94

%

0.97

%

1.03

%

1.13

%

ALL as a % of loans excluding acquired loans(4)

0.96

%

0.94

%

0.97

%

1.03

%

1.13

%

CLASSIFIED ASSETS

Classified loans (1)

$

84,093

$

47,906

$

49,561

$

52,684

$

53,415

ORE and repossessions

17,125

12,750

13,209

14,508

17,218

Total classified assets (2)

$

101,218

$

60,656

$

62,770

$

67,192

$

70,633

       (1) Amount of SBA guarantee included

$

4,680

$

3,970

$

5,256

$

5,802

$

5,271

       (2) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share.

       (3) Classified asset ratio is defined as classified assets as a percentage of the sum of Tier 1 capital plus allowance for loan losses.

       (4) Allowance calculation excludes acquired loans, due to valuation calculated at acquisition.

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF INDIRECT LENDING

(UNAUDITED)

As of or for the Quarter Ended

($ in thousands)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

Average loans outstanding (1)

$

1,563,498

$

1,486,077

$

1,407,848

$

1,389,570

$

1,329,306

Loans serviced for others

$

1,117,210

$

1,117,721

$

1,091,644

$

1,025,569

$

902,823

Past due loans:

Amount 30+ days past due

$

1,829

$

1,381

$

1,098

$

1,222

$

1,547

Number 30+ days past due

235

170

128

132

143

30+ day performing delinquency rate (2)

0.11

%

0.10

%

0.08

%

0.09

%

0.11

%

Nonperforming loans

$

1,117

$

810

$

527

$

778

$

715

Nonperforming loans as a percentage of period end loans (2)

0.07

%

0.06

%

0.04

%

0.06

%

0.05

%

Net charge-offs

$

1,014

$

605

$

495

$

866

$

901

Net charge-off rate (3)

0.28

%

0.17

%

0.16

%

0.36

%

0.30

%

Number of vehicles repossessed during the period

131

120

106

134

128

Average beacon score

757

755

755

755

753

Production by state:

Alabama

$

17,758

$

20,886

$

18,831

$

22,056

$

26,780

Arkansas

39,436

46,704

39,174

35,786

41,912

North Carolina

20,378

21,484

20,536

21,809

25,059

South Carolina

13,661

13,339

16,021

16,273

16,132

Florida

95,054

98,087

91,725

96,688

102,465

Georgia

48,241

54,497

52,735

60,402

69,288

Mississippi

27,032

23,424

21,281

19,537

23,736

Tennessee

18,156

16,946

19,295

19,479

22,880

Virginia

12,640

14,829

16,349

16,919

18,590

Texas

36,127

37,673

35,739

41,527

50,987

Louisiana

27,147

24,490

24,095

21,042

13,531

Oklahoma (4)

82

Total production by state

$

355,712

$

372,359

$

355,781

$

371,518

$

411,360

Loan sales

$

111,683

$

142,132

$

177,820

$

219,784

$

121,973

Portfolio yield (1)

2.79

%

2.75

%

2.79

%

2.88

%

3.07

%

(1) 

Includes held-for-sale

(2) 

Calculated by dividing loan category as of the end of the period by period-end loans including held for sale for the specified loan portfolio

(3) 

Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category

(4) 

Expanded into Oklahoma in November 2015

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF MORTGAGE LENDING

(UNAUDITED)

As of or for the Quarter Ended

($ in thousands)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

Average loans outstanding (1)

$

450,263

$

511,317

$

449,097

$

337,122

$

300,652

Loans serviced for others

$

6,652,700

$

6,393,874

$

5,942,063

$

5,622,102

$

5,413,781

% of loan production for purchases

77.5

%

81.4

%

74.0

%

58.8

%

74.9

%

% of loan production for refinance loans

22.5

%

18.6

%

26.0

%

41.2

%

25.1

%

Production by region:

Georgia

$

341,115

$

424,554

$

468,795

$

342,121

$

311,846

Florida/Alabama

44,873

53,815

58,607

51,590

42,485

Virginia/Maryland

109,685

147,387

182,850

158,289

126,151

North and South Carolina (2)

20,973

11,398

8,002

3,858

Total retail

516,646

637,154

718,254

555,858

480,482

Wholesale

51,224

66,490

70,169

57,125

34,961

Total production by region

$

567,870

$

703,644

$

788,423

$

612,983

$

515,443

Loan sales

$

520,742

$

744,621

$

665,738

$

552,085

$

475,930

INCOME FROM MORTGAGE BANKING ACTIVITIES

(UNAUDITED)

As of or for the Quarter Ended

(in thousands)

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

Marketing gain, net

$

15,407

$

17,573

$

17,099

$

19,746

$

12,076

Origination points and fees

2,914

3,871

3,726

2,757

2,744

Loan servicing revenue

4,377

4,059

3,762

3,646

3,473

MSR amortization and impairment adjustments

(3,892)

(4,704)

30

(4,830)

(2,804)

Total mortgage banking activities

$

18,806

$

20,799

$

24,617

$

21,319

$

15,489

Noncash items included in income from mortgage banking activities:

Capitalized MSR, net

$

2,399

$

6,461

$

5,829

$

4,429

$

3,333

Valuation on MSR

(999)

(2,215)

2,611

(2,469)

(709)

Mark to market adjustments

648

(1,028)

(1,098)

3,967

588

   Total noncash items

$

2,048

$

3,219

$

7,342

$

5,926

$

3,212

(1) Includes held-for-sale

(2) Expanded into North and South Carolina in January 2015

 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)

For the Quarter Ended

December 31, 2015

December 31, 2014

Average

Income/

Yield/

Average

Income/

Yield/

($ in thousands)

Balance

Expense

Rate

Balance

Expense

Rate

Assets

Interest-earning assets:

Loans, net of unearned income (1) 

$

3,186,124

$

31,558

3.93

%

$

2,509,552

$

25,427

4.02

%

Investment securities (1) 

217,375

1,566

2.86

%

169,254

1,301

3.05

%

Federal funds sold and bank deposits

62,204

27

0.17

%

32,333

9

0.11

%

Total interest-earning assets

3,465,703

33,151

3.79

%

2,711,139

26,737

3.91

%

Noninterest-earning assets:

Cash and due from banks

19,346

12,461

Allowance for loan losses

(24,919)

(28,328)

Premises and equipment, net

79,066

60,496

Other real estate

17,157

25,045

Other assets

194,659

140,837

Total assets

$

3,751,012

$

2,921,650

Liabilities and shareholders' equity

Interest-bearing liabilities:

Demand deposits

$

1,020,241

$

669

0.26

%

$

783,896

$

485

0.25

%

Savings deposits

369,536

328

0.35

%

323,605

285

0.35

%

Time deposits

994,805

2,311

0.92

%

741,215

1,839

0.98

%

Total interest-bearing deposits

2,384,582

3,308

0.55

%

1,848,716

2,609

0.56

%

Other borrowings

154,772

133

0.34

%

173,991

130

0.30

%

Subordinated debt

120,305

1,456

4.80

%

46,301

279

2.39

%

Total interest-bearing liabilities

2,659,659

4,897

0.73

%

2,069,008

3,018

0.58

%

Noninterest-bearing liabilities and shareholders' equity:

Demand deposits

761,507

567,423

Other liabilities

33,651

24,910

Shareholders' equity

296,195

260,309

Total liabilities and shareholders' equity

$

3,751,012

$

2,921,650

Net interest income/spread

$

28,254

3.06

%

$

23,719

3.33

%

Net interest margin

3.23

%

3.47

%

(1) Interest income includes the effect of taxable-equivalent adjustment using a 35% tax rate.

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)

For the Year Ended

December 31, 2015

December 31, 2014

($ in thousands)

Average

Balance

Income/

Expense

Yield/

Rate

Average

Balance

Income/

Expense

Yield/

Rate

Assets

Interest-earning assets:

Loans, net of unearned income(1)

$

2,895,847

$

111,828

3.86

%

$

2,284,245

$

96,830

4.24

%

Investment securities(1)

176,382

5,117

2.90

%

175,174

5,141

2.93

%

Fed funds sold and interest-bearing deposits

47,106

80

0.17

%

50,828

85

0.17

%

Total interest-earning assets

3,119,335

117,025

3.75

%

2,510,247

102,056

4.07

%

Noninterest-earning assets:

Cash and due from banks

16,092

13,605

Allowance for loan losses

(24,443)

(30,363)

Premises and equipment, net

67,192

52,666

Other real estate

18,375

26,327

Other assets

180,578

143,175

Total assets

$

3,377,129

$

2,715,657

Liabilities and shareholders' equity

Interest-bearing liabilities:

Demand deposits

$

889,985

$

2,164

0.24

%

$

722,448

$

1,889

0.26

%

Savings deposits

322,385

1,096

0.34

%

316,439

1,147

0.36

%

Time deposits

873,352

8,089

0.93

%

681,915

6,671

0.98

%

Total interest-bearing deposits

2,085,722

11,349

0.54

%

1,720,802

9,707

0.56

%

Other borrowings

215,685

650

0.30

%

134,513

406

0.30

%

Subordinated debt

90,303

3,805

4.21

%

46,291

1,113

2.40

%

Total interest-bearing liabilities

2,391,710

15,804

0.66

%

1,901,606

11,226

0.59

%

Noninterest-bearing liabilities and shareholders' equity:

Demand deposits

674,114

539,023

Other liabilities

28,724

26,245

Shareholders' equity

282,581

248,783

Total liabilities and shareholders' equity

$

3,377,129

$

2,715,657

Net interest income/spread

$

101,221

3.09

%

$

90,830

3.48

%

Net interest margin

3.24

%

3.62

%

(1) Interest income includes the effect of taxable-equivalent adjustment using a 35% tax rate.

 

Contacts:    Martha Fleming, Steve Brolly                   Fidelity Southern Corporation (404) 240-1504

SOURCE Fidelity Southern Corporation



RELATED LINKS

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