Fidelity Southern Corporation Earns $6.1 Million In First Quarter Of 2014
ATLANTA, April 17, 2014 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the first quarter of 2014.
KEY RESULTS
- Earned $6.1 million in the first quarter of 2014 or $0.26 per diluted share
- Return on average assets of 0.97% for the quarter
- Increased tangible book value by $1.23 to $11.28 per share or 12.2%, year over year
- Core deposit growth for the quarter of $25.5 million or 1.7%
- Negative provision for loan losses for the quarter of $2.5 million, as asset quality continues to improve
- Funded closed mortgage production of $320.8 million for the quarter
- Loan sales of $535.2 million during the quarter
- Generated $42.5 million in gross revenue in the first quarter
Fidelity's Chairman, Jim Miller, said, "Our performance has proven sustainable and makes us optimistic about 2014. Our healthy and diverse loan revenue streams are serving us well, tempering the margin compression facing our industry. As expected, residential mortgage production, which we view as a core product, rebounded in March and continues strong in April. Additionally, the Wealth Management Department, just begun, has already shown there is a void in the market which we can service. We plan to grow by taking market share through adding strong individuals to our various teams and by continuing to branch, always with the aim of adding to shareholder value over the long term."
|
Three Months Ended | ||||||||||||
|
(in thousands, except per share data) |
March 31, |
December 31, |
March 31, | |||||||||
|
Net income |
$ |
6,063 |
$ |
3,863 |
$ |
5,668 | ||||||
|
Basic EPS (1) |
$ |
0.28 |
$ |
0.18 |
$ |
0.37 | ||||||
|
Diluted EPS (1) |
$ |
0.26 |
$ |
0.16 |
$ |
0.33 | ||||||
|
Weighted average shares (1) |
21,310 |
21,332 |
15,259 | |||||||||
|
Diluted weighted average shares (1) |
23,469 |
23,533 |
17,236 | |||||||||
|
(1) Historical periods adjusted for stock dividends |
||||||||||||
ASSET QUALITY
Asset quality continued to improve during the first quarter of 2014.
- Net (recovery)/charge-off ratio, annualized of (0.02)% for the first quarter of 2014, compared to 0.06% for the fourth quarter of 2013, and 0.86% for the first quarter of 2013
- Nonperforming asset ratio of 4.40% at March 31, 2014, a decrease from 4.77% and 6.55% at December 31, 2013, and March 31, 2013
- Decrease in classified assets of $3.6 million or 3.1% for the quarter, and $39.7 million year over year, or 25.7%
- Decrease of $6.5 million in ORE during the quarter, or 20.8%, and $16.8 million year over year, or 40.7%
The following table presents a comparison of the activity affecting the allowance for loan loss for the periods presented.
|
As of or for the Quarter Ended | ||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
March 31, | |||||||||
|
Charge-offs |
$ |
2,031 |
1,597 |
$ |
4,330 |
|||||||
|
Recoveries |
$ |
2,136 |
1,253 |
$ |
679 |
|||||||
|
Net (recoveries)/charge-offs |
$ |
(105) |
344 |
$ |
3,651 |
|||||||
|
Average Loans |
$ |
1,886,136 |
$ |
1,868,507 |
$ |
1,801,533 |
||||||
|
Net (recoveries)/charge-offs as a % of average loans, annualized |
(0.02) |
% |
0.06 |
% |
0.86 |
% | ||||||
|
(Recovery)/provision for loan losses |
$ |
(2,450) |
$ |
273 |
$ |
3,475 |
||||||
|
Allowance for loan losses |
$ |
30,797 |
$ |
33,684 |
$ |
33,910 |
||||||
|
Allowance for loan losses as a percentage of total loans |
1.67 |
% |
1.78 |
% |
1.86 |
% | ||||||
The following table presents certain credit quality metrics of the Bank's assets at the dates indicated.
|
($ in thousands) |
March 31, |
December 31, |
March 31, | |||||||||
|
Nonperforming assets (1) |
$ |
82,545 |
$ |
91,783 |
$ |
121,666 |
||||||
|
Classified assets (2) |
$ |
114,306 |
$ |
117,909 |
$ |
151,962 |
||||||
|
Nonperforming asset ratio |
4.40 |
% |
4.77 |
% |
6.55 |
% | ||||||
|
Classified asset ratio (3) |
27.14 |
% |
29.81 |
% |
38.13 |
% | ||||||
(1) Nonperforming assets include nonaccrual loans, net repossessions and ORE.
(2) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and ORE.
(3) Classified asset ratio is defined as classified assets as a percentage of Tier 1 capital plus allowance.
DEPOSITS
Core deposits increased by $25.5 million during the first quarter of 2014 and $191.5 million year over year. The Bank has continued to strategically focus on core deposit growth and realized continued benefits from the transaction account acquisition initiative which has continued into 2014. As a result, time deposits including brokered deposits, decreased by $27.6 million and $49.0 million for the quarter and year over year, respectively.
Total deposits of $2.2 billion at March 31, 2014 increased by $142.4 million from $2.1 billion as of March 31, 2013, due primarily to a $141.0 million year over year increase in noninterest-bearing demand deposits. Total deposits were flat on a net basis from December 31, 2013 to March 31, 2014. The $25.5 million increase in core deposits during the quarter almost completely offset the decrease in time deposits during the same period.
The following table summarizes average deposit composition and average rate paid for the periods presented.
|
For the Three Months Ended | |||||||||||||||||||||||||||||
|
March 31, 2014 |
December 31, 2013 |
March 31, 2013 | |||||||||||||||||||||||||||
|
($ in millions) |
Average |
Rate |
Percent of |
Average |
Rate |
Percent of |
Average |
Rate |
Percent of | ||||||||||||||||||||
|
Noninterest-bearing demand deposits |
$ |
478.0 |
— |
% |
22.1 |
% |
$ |
448.9 |
— |
% |
20.9 |
% |
$ |
368.5 |
— |
% |
18.1 |
% | |||||||||||
|
Interest-bearing demand deposits |
698.8 |
0.29 |
% |
32.4 |
% |
693.0 |
0.29 |
% |
32.2 |
% |
620.4 |
0.27 |
% |
30.5 |
% | ||||||||||||||
|
Savings deposits |
308.8 |
0.39 |
% |
14.3 |
% |
307.5 |
0.39 |
% |
14.3 |
% |
330.4 |
0.46 |
% |
16.3 |
% | ||||||||||||||
|
Time deposits |
675.0 |
1.01 |
% |
31.2 |
% |
701.2 |
1.01 |
% |
32.6 |
% |
712.6 |
1.04 |
% |
35.1 |
% | ||||||||||||||
|
Total average deposits |
$ |
2,160.6 |
0.47 |
% |
100.0 |
% |
$ |
2,150.6 |
0.48 |
% |
100.0 |
% |
$ |
2,031.9 |
0.52 |
% |
100.0 |
% | |||||||||||
NET INTEREST MARGIN
Net interest margin in the first quarter of 2014 was 3.56%, a three basis point decrease from the fourth quarter of 2013 result of 3.59%, and a decrease from the first quarter of 2013 result of 3.77%. The 21 basis point year over year decline occurred primarily due to lower market yields on newly originated loans as compared to higher rates on the loans sold or paid off since the first quarter of 2013.
INTEREST INCOME
Interest income for the first quarter of 2014 decreased to $23.1 million from $25.0 million compared to the first quarter of 2013. The decrease in interest income is primarily attributable to the decrease in mortgage loans held for sale production volume during the first quarter of 2014 as market trends in production have declined since the first half of 2013. In a linked-quarter comparison, interest income decreased by $699,000 due to lower market yields on new loan originations.
INTEREST EXPENSE
Interest expense for the first quarter of 2014 decreased to $2.8 million from $3.9 million compared to the first quarter of 2013, primarily due to a reduction of $592,000 in subordinated debt expense for the first quarter of 2014 from the repayment of $20.5 million in subordinated debt in the third quarter of 2013. On a linked-quarter basis, interest expense decreased by $112,000, primarily as a result of market rate changes on time deposits and borrowings.
NONINTEREST INCOME
For the first quarter of 2014, noninterest income was $19.4 million compared to $25.0 million in the first quarter of 2013. This decrease is primarily attributable to a $7.2 million decrease in noninterest income from mortgage banking activities, primarily due to decreased loans held for sale production volume for the first quarter of 2014. Closed mortgage loan funding was $320.8 million for the first quarter of 2014 compared to $656.2 million for the first quarter of 2013.
On a linked quarter basis, noninterest income increased by $1.6 million, or 9.2%, primarily due to an increase of $2.6 million in income from indirect lending activities in the first quarter of 2014. Indirect lending sales volume was $88.2 million in the fourth quarter of 2013 compared to $195.0 million in the first quarter of 2014. Included in these sales was a transfer of $51.2 million during the first quarter of 2014 from indirect loans held for investment at December 31, 2013 to indirect loans held for sale.
NONINTEREST EXPENSE
Noninterest expense for the first quarter of 2014 was relatively flat at $32.7 million compared to $32.5 million for the same period in 2013 and on a linked quarter basis when compared to the $32.5 million in noninterest expense recorded for the fourth quarter of 2013. Commissions expense was lower primarily due to a decrease in mortgage production for the first quarter of 2014. The cost of operation of ORE has also continued to decrease as the average balance of ORE has decreased year over year, primarily due to the continued disposition of properties, primarily from the acquired institutions. These reductions were offset by an increase in higher salaries and benefits and general operating costs during the first quarter of 2014 as the Bank continues to expand its employee base in both production and support departments.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking and wealth management services and credit-related insurance products through branches in Atlanta, Georgia, and in Jacksonville, 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 website 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 2013 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 Three Months Ended | |||||||||||||||||||
|
(in thousands, except per share data) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
RESULTS OF OPERATIONS |
|||||||||||||||||||
|
Net interest income |
$ |
20,271 |
$ |
20,858 |
$ |
21,529 |
$ |
20,133 |
$ |
21,075 |
|||||||||
|
(Recovery)/provision for loan losses |
(2,450) |
273 |
1,122 |
570 |
3,476 |
||||||||||||||
|
Noninterest income |
19,383 |
17,753 |
25,844 |
28,240 |
25,047 |
||||||||||||||
|
Noninterest expense |
32,656 |
32,538 |
34,102 |
33,159 |
32,524 |
||||||||||||||
|
Income tax expense |
3,385 |
1,937 |
4,298 |
5,211 |
3,631 |
||||||||||||||
|
Net income |
6,063 |
3,863 |
7,851 |
9,433 |
6,491 |
||||||||||||||
|
PERFORMANCE |
|||||||||||||||||||
|
Earnings per share - basic (1) |
$ |
0.28 |
$ |
0.18 |
$ |
0.33 |
$ |
0.52 |
$ |
0.37 |
|||||||||
|
Earnings per share - diluted (1) |
0.26 |
0.16 |
0.30 |
0.46 |
0.33 |
||||||||||||||
|
Return on average assets |
0.97 |
% |
0.61 |
% |
1.20 |
% |
1.47 |
% |
1.07 |
% | |||||||||
|
Return on average equity |
10.36 |
% |
6.54 |
% |
12.04 |
% |
17.40 |
% |
13.53 |
% | |||||||||
|
Yield on interest earning assets |
4.05 |
% |
4.09 |
% |
4.15 |
% |
4.05 |
% |
4.46 |
% | |||||||||
|
Cost of funds |
0.63 |
% |
0.64 |
% |
0.72 |
% |
0.77 |
% |
0.84 |
% | |||||||||
|
Net interest margin |
3.56 |
% |
3.59 |
% |
3.59 |
% |
3.42 |
% |
3.77 |
% | |||||||||
|
CAPITAL |
|||||||||||||||||||
|
Cash dividends paid per common share |
$ |
0.04 |
$ |
0.02 |
$ |
— |
$ |
— |
$ |
— |
|||||||||
|
Dividend payout ratio |
22.22 |
% |
6.06 |
% |
— |
% |
— |
% |
— |
% | |||||||||
|
Tier 1 risk-based capital |
13.21 |
% |
12.71 |
% |
12.97 |
% |
15.62 |
% |
12.22 |
% | |||||||||
|
Total risk-based capital |
14.46 |
% |
13.96 |
% |
14.23 |
% |
16.88 |
% |
13.48 |
% | |||||||||
|
Leverage ratio |
11.21 |
% |
11.02 |
% |
10.53 |
% |
12.96 |
% |
10.51 |
% | |||||||||
|
BALANCE SHEET SUMMARY |
|||||||||||||||||||
|
Loans held for sale |
$ |
180,550 |
$ |
187,366 |
$ |
216,736 |
$ |
355,017 |
$ |
325,941 |
|||||||||
|
Loans |
1,848,092 |
1,893,037 |
1,831,708 |
1,775,972 |
1,817,263 |
||||||||||||||
|
Allowance for loan losses |
(30,797) |
(33,684) |
(33,661) |
(33,309) |
(33,910) |
||||||||||||||
|
Total assets |
2,556,887 |
2,564,168 |
2,567,482 |
2,675,233 |
2,532,249 |
||||||||||||||
|
Total deposits |
2,200,389 |
2,202,452 |
2,169,275 |
2,155,047 |
2,058,151 |
||||||||||||||
|
Shareholders' equity |
242,391 |
236,230 |
233,300 |
273,102 |
199,301 |
||||||||||||||
|
STOCK PERFORMANCE |
|||||||||||||||||||
|
Market price: |
|||||||||||||||||||
|
Closing (1) |
$ |
13.97 |
$ |
16.50 |
$ |
15.15 |
$ |
12.13 |
$ |
11.18 |
|||||||||
|
High close (1) |
16.53 |
17.75 |
15.78 |
12.90 |
11.49 |
||||||||||||||
|
Low close (1) |
13.63 |
13.27 |
12.41 |
10.60 |
9.30 |
||||||||||||||
|
Daily average trading volume |
53,851 |
53,979 |
90,413 |
52,693 |
30,591 |
||||||||||||||
|
Shares of common stock outstanding (1) |
21,277 |
21,258 |
21,139 |
20,840 |
14,848 |
||||||||||||||
|
Book value per common share (1) |
$ |
11.39 |
$ |
11.11 |
$ |
11.04 |
$ |
10.81 |
$ |
10.22 |
|||||||||
|
Price to book value |
1.23 |
1.49 |
1.37 |
1.12 |
1.09 |
||||||||||||||
|
Tangible book value per common share (1) |
11.28 |
11.00 |
10.92 |
10.70 |
10.05 |
||||||||||||||
|
Price to tangible book value |
1.24 |
1.50 |
1.39 |
1.13 |
1.11 |
||||||||||||||
|
ASSET QUALITY |
|||||||||||||||||||
|
Total nonperforming loans |
$ |
56,600 |
$ |
59,582 |
$ |
61,458 |
$ |
72,388 |
$ |
81,740 |
|||||||||
|
Total nonperforming assets |
82,545 |
91,783 |
97,132 |
114,492 |
121,666 |
||||||||||||||
|
OTHER INFORMATION |
|||||||||||||||||||
|
Noninterest income to gross revenue |
45.65 |
% |
42.75 |
% |
50.90 |
% |
54.19 |
% |
50.07 |
% | |||||||||
|
Full-Time equivalent employees |
927.8 |
889.9 |
865.1 |
843.1 |
806.0 |
||||||||||||||
(1) Historical periods adjusted for stock dividends
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||
|
(in thousands, except per share data) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
INTEREST INCOME |
|||||||||||||||||||
|
Loans, including fees |
$ |
21,791 |
$ |
22,639 |
$ |
23,900 |
$ |
22,949 |
$ |
23,944 | |||||||||
|
Investment securities |
1,249 |
1,095 |
977 |
910 |
1,028 | ||||||||||||||
|
Federal funds sold and bank deposits |
38 |
43 |
53 |
15 |
3 | ||||||||||||||
|
Total interest income |
23,078 |
23,777 |
24,930 |
23,874 |
24,975 | ||||||||||||||
|
INTEREST EXPENSE |
|||||||||||||||||||
|
Deposits |
2,488 |
2,590 |
2,601 |
2,600 |
2,627 | ||||||||||||||
|
Subordinated debt |
275 |
282 |
716 |
868 |
867 | ||||||||||||||
|
Other borrowings |
44 |
47 |
84 |
273 |
406 | ||||||||||||||
|
Total interest expense |
2,807 |
2,919 |
3,401 |
3,741 |
3,900 | ||||||||||||||
|
Net interest income |
20,271 |
20,858 |
21,529 |
20,133 |
21,075 | ||||||||||||||
|
(Recovery)/provision for loan losses |
(2,450) |
273 |
1,122 |
570 |
3,476 | ||||||||||||||
|
Net interest income after (recovery)/provision for loan losses |
22,721 |
20,585 |
20,407 |
19,563 |
17,599 | ||||||||||||||
|
NONINTEREST INCOME |
|||||||||||||||||||
|
Service charges on deposit accounts |
1,009 |
1,119 |
1,075 |
1,020 |
949 | ||||||||||||||
|
Other fees and charges |
920 |
1,012 |
997 |
975 |
887 | ||||||||||||||
|
Mortgage banking activities |
10,587 |
10,798 |
17,809 |
20,158 |
17,795 | ||||||||||||||
|
Indirect lending activities |
4,676 |
2,030 |
2,583 |
2,781 |
1,646 | ||||||||||||||
|
SBA lending activities |
844 |
492 |
647 |
1,417 |
1,084 | ||||||||||||||
|
Bank owned life insurance |
301 |
308 |
326 |
326 |
313 | ||||||||||||||
|
Securities gains |
— |
188 |
— |
1 |
— | ||||||||||||||
|
Other |
1,046 |
1,806 |
2,407 |
1,562 |
2,373 | ||||||||||||||
|
Total noninterest income |
19,383 |
17,753 |
25,844 |
28,240 |
25,047 | ||||||||||||||
|
NONINTEREST EXPENSE |
|||||||||||||||||||
|
Salaries and employee benefits |
16,085 |
14,660 |
14,424 |
14,278 |
14,282 | ||||||||||||||
|
Commissions |
3,470 |
4,288 |
6,019 |
7,979 |
6,390 | ||||||||||||||
|
Net occupancy |
2,603 |
2,799 |
2,844 |
2,291 |
2,407 | ||||||||||||||
|
Communication |
972 |
856 |
754 |
805 |
760 | ||||||||||||||
|
Other |
9,526 |
9,935 |
10,061 |
7,806 |
8,685 | ||||||||||||||
|
Total noninterest expense |
32,656 |
32,538 |
34,102 |
33,159 |
32,524 | ||||||||||||||
|
Income before income tax expense |
9,448 |
5,800 |
12,149 |
14,644 |
10,122 | ||||||||||||||
|
Income tax expense |
3,385 |
1,937 |
4,298 |
5,211 |
3,631 | ||||||||||||||
|
NET INCOME |
6,063 |
3,863 |
7,851 |
9,433 |
6,491 | ||||||||||||||
|
Preferred stock dividends and discount accretion |
— |
— |
(817) |
(823) |
(823) | ||||||||||||||
|
Net income available to common equity |
$ |
6,063 |
$ |
3,863 |
$ |
7,034 |
$ |
8,610 |
$ |
5,668 | |||||||||
|
EARNINGS PER SHARE: (1) |
|||||||||||||||||||
|
Basic earnings per share |
$ |
0.28 |
$ |
0.18 |
$ |
0.33 |
$ |
0.52 |
$ |
0.37 | |||||||||
|
Diluted earnings per share |
$ |
0.26 |
$ |
0.16 |
$ |
0.30 |
$ |
0.46 |
$ |
0.33 | |||||||||
|
Weighted average common shares outstanding-basic |
21,310 |
21,332 |
21,290 |
16,567 |
15,259 | ||||||||||||||
|
Weighted average common shares outstanding-diluted |
23,469 |
23,533 |
23,428 |
18,567 |
17,236 | ||||||||||||||
(1) Historical periods adjusted for stock dividends
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
ASSETS |
|||||||||||||||||||
|
Cash and cash equivalents |
$ |
166,952 |
$ |
116,559 |
$ |
140,871 |
$ |
158,837 |
$ |
40,262 | |||||||||
|
Investment securities available-for-sale |
163,803 |
168,865 |
170,338 |
163,764 |
153,285 | ||||||||||||||
|
Investment securities held-to-maturity |
3,795 |
4,051 |
4,468 |
4,978 |
5,523 | ||||||||||||||
|
Loans held-for-sale |
180,550 |
187,366 |
216,736 |
355,017 |
325,941 | ||||||||||||||
|
Loans |
1,848,092 |
1,893,037 |
1,831,708 |
1,775,972 |
1,817,263 | ||||||||||||||
|
Allowance for loan losses |
(30,797) |
(33,684) |
(33,661) |
(33,309) |
(33,910) | ||||||||||||||
|
Loans, net of allowance for loan losses |
1,817,295 |
1,859,353 |
1,798,047 |
1,742,663 |
1,783,353 | ||||||||||||||
|
Premises and equipment, net |
48,937 |
44,555 |
41,964 |
41,843 |
38,508 | ||||||||||||||
|
Other real estate, net |
24,547 |
30,982 |
34,493 |
40,882 |
38,951 | ||||||||||||||
|
Bank owned life insurance |
34,127 |
33,855 |
33,575 |
33,276 |
32,978 | ||||||||||||||
|
Servicing rights |
55,281 |
53,202 |
52,048 |
44,734 |
36,529 | ||||||||||||||
|
Other assets |
61,600 |
65,380 |
74,942 |
89,239 |
76,919 | ||||||||||||||
|
Total assets |
$ |
2,556,887 |
$ |
2,564,168 |
$ |
2,567,482 |
$ |
2,675,233 |
$ |
2,532,249 | |||||||||
|
LIABILITIES |
|||||||||||||||||||
|
Deposits: |
|||||||||||||||||||
|
Noninterest-bearing demand deposits |
$ |
525,853 |
$ |
488,224 |
$ |
448,087 |
$ |
433,565 |
$ |
385,019 | |||||||||
|
Interest-bearing deposits: |
|||||||||||||||||||
|
Demand and money market |
700,268 |
701,556 |
685,437 |
653,172 |
632,542 | ||||||||||||||
|
Savings |
314,282 |
325,133 |
317,997 |
313,716 |
331,505 | ||||||||||||||
|
Time deposits |
659,986 |
687,539 |
717,754 |
754,594 |
709,085 | ||||||||||||||
|
Total deposits |
2,200,389 |
2,202,452 |
2,169,275 |
2,155,047 |
2,058,151 | ||||||||||||||
|
Other borrowings |
43,685 |
59,233 |
88,422 |
143,641 |
186,051 | ||||||||||||||
|
Subordinated debt |
46,393 |
46,393 |
46,393 |
67,527 |
67,527 | ||||||||||||||
|
Other liabilities |
24,029 |
19,860 |
30,092 |
35,916 |
21,219 | ||||||||||||||
|
Total liabilities |
2,314,496 |
2,327,938 |
2,334,182 |
2,402,131 |
2,332,948 | ||||||||||||||
|
SHAREHOLDERS' EQUITY |
|||||||||||||||||||
|
Preferred stock |
— |
— |
— |
47,785 |
47,564 | ||||||||||||||
|
Common stock |
159,654 |
158,153 |
156,156 |
153,107 |
84,777 | ||||||||||||||
|
Accumulated other comprehensive gain, net of tax |
1,606 |
968 |
1,723 |
1,475 |
3,376 | ||||||||||||||
|
Retained earnings |
81,131 |
77,109 |
75,421 |
70,735 |
63,584 | ||||||||||||||
|
Total shareholders' equity |
242,391 |
236,230 |
233,300 |
273,102 |
199,301 | ||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,556,887 |
$ |
2,564,168 |
$ |
2,567,482 |
$ |
2,675,233 |
$ |
2,532,249 | |||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES LOANS BY CATEGORY (UNAUDITED) | |||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
Commercial |
$ |
525,347 |
$ |
530,977 |
$ |
512,875 |
$ |
507,188 |
$ |
517,203 | |||||||||
|
SBA |
138,331 |
134,823 |
133,867 |
131,771 |
126,435 | ||||||||||||||
|
Total commercial and SBA loans |
663,678 |
665,800 |
646,742 |
638,959 |
643,638 | ||||||||||||||
|
Construction loans |
101,443 |
101,698 |
99,379 |
100,986 |
94,651 | ||||||||||||||
|
Indirect automobile |
925,101 |
975,223 |
942,217 |
904,098 |
959,471 | ||||||||||||||
|
Installment |
15,932 |
13,473 |
14,270 |
15,557 |
13,824 | ||||||||||||||
|
Total consumer loans |
941,033 |
988,696 |
956,487 |
919,655 |
973,295 | ||||||||||||||
|
First mortgage |
68,546 |
60,928 |
51,807 |
41,815 |
38,501 | ||||||||||||||
|
Second mortgage |
73,392 |
75,915 |
77,293 |
74,557 |
67,178 | ||||||||||||||
|
Total mortgage loans |
141,938 |
136,843 |
129,100 |
116,372 |
105,679 | ||||||||||||||
|
Loans |
1,848,092 |
1,893,037 |
1,831,708 |
1,775,972 |
1,817,263 | ||||||||||||||
|
Loans held-for-sale: |
|||||||||||||||||||
|
Residential mortgage |
112,195 |
127,850 |
174,409 |
309,175 |
281,839 | ||||||||||||||
|
SBA |
8,355 |
9,516 |
7,327 |
10,842 |
14,102 | ||||||||||||||
|
Indirect automobile |
60,000 |
50,000 |
35,000 |
35,000 |
30,000 | ||||||||||||||
|
Total loans held-for-sale |
180,550 |
187,366 |
216,736 |
355,017 |
325,941 | ||||||||||||||
|
Total loans |
$ |
2,028,642 |
$ |
2,080,403 |
$ |
2,048,444 |
$ |
2,130,989 |
$ |
2,143,204 | |||||||||
|
Noncovered loans |
$ |
1,796,256 |
$ |
1,834,675 |
$ |
1,768,384 |
$ |
1,691,258 |
$ |
1,743,092 | |||||||||
|
Covered loans |
51,836 |
58,362 |
63,324 |
84,714 |
74,171 | ||||||||||||||
|
Loans held-for-sale |
180,550 |
187,366 |
216,736 |
355,017 |
325,941 | ||||||||||||||
|
Total loans |
$ |
2,028,642 |
$ |
2,080,403 |
$ |
2,048,444 |
$ |
2,130,989 |
$ |
2,143,204 | |||||||||
|
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (UNAUDITED) | |||||||||||||||||||
|
As of or for the Three Months Ended | |||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
Balance at beginning of period |
$ |
33,684 |
$ |
33,661 |
$ |
33,309 |
$ |
33,910 |
$ |
33,982 |
|||||||||
|
Net (recoveries)/charge-offs: |
|||||||||||||||||||
|
Commercial and SBA |
364 |
(147) |
406 |
695 |
2,441 |
||||||||||||||
|
Construction |
(1,680) |
(250) |
(241) |
40 |
72 |
||||||||||||||
|
Indirect automobile and installment loans |
743 |
696 |
930 |
941 |
669 |
||||||||||||||
|
Mortgage |
35 |
102 |
67 |
27 |
332 |
||||||||||||||
|
Covered |
448 |
(57) |
37 |
8 |
117 |
||||||||||||||
|
Acquired, noncovered |
(15) |
— |
— |
10 |
20 |
||||||||||||||
|
Total net (recoveries)/charge-offs |
(105) |
344 |
1,199 |
1,721 |
3,651 |
||||||||||||||
|
(Recovery)/provision for loan losses |
(2,450) |
273 |
1,122 |
570 |
3,475 |
||||||||||||||
|
(Decrease)/increase in FDIC loss share receivable |
(542) |
94 |
429 |
550 |
104 |
||||||||||||||
|
Balance at end of period |
$ |
30,797 |
$ |
33,684 |
$ |
33,661 |
$ |
33,309 |
$ |
33,910 |
|||||||||
|
Net (recoveries)/charge-offs, annualized to average loans, net |
(0.02) |
% |
0.06 |
% |
0.27 |
% |
0.40 |
% |
0.86 |
% | |||||||||
|
Allowance for loan losses as a percentage of loans |
1.67 |
% |
1.78 |
% |
1.83 |
% |
1.86 |
% |
1.86 |
% | |||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES NONPERFORMING AND CLASSIFIED ASSETS (UNAUDITED) | |||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
NONCOVERED NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans |
$ |
40,983 |
$ |
40,944 |
$ |
36,711 |
$ |
41,757 |
$ |
52,220 |
|||||||||
|
Repossessions |
1,398 |
1,219 |
1,181 |
1,222 |
975 |
||||||||||||||
|
Other real estate |
19,573 |
24,791 |
26,016 |
28,342 |
24,048 |
||||||||||||||
|
Noncovered nonperforming assets |
$ |
61,954 |
$ |
66,954 |
$ |
63,908 |
$ |
71,321 |
$ |
77,243 |
|||||||||
|
NONCOVERED NONPERFORMING ASSET RATIOS |
|||||||||||||||||||
|
Loans 30-89 days past due |
$ |
7,034 |
$ |
5,618 |
$ |
7,915 |
$ |
6,197 |
$ |
12,152 |
|||||||||
|
Loans past due 90 days or more and still accruing |
$ |
488 |
$ |
— |
$ |
— |
$ |
— |
$ |
141 |
|||||||||
|
Loans 30-89 days past due to total loans |
0.39 |
% |
0.31 |
% |
0.45 |
% |
0.37 |
% |
0.70 |
% | |||||||||
|
Loans past due 90 days or more and still accruing to total loans |
0.03 |
% |
— |
% |
— |
% |
— |
% |
0.01 |
% | |||||||||
|
Nonperforming assets to total loans, ORE, and repossessions |
3.41 |
% |
3.60 |
% |
3.56 |
% |
4.14 |
% |
4.37 |
% | |||||||||
|
COVERED NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans |
$ |
15,617 |
$ |
18,638 |
$ |
24,747 |
$ |
30,631 |
$ |
29,520 |
|||||||||
|
Other real estate |
4,974 |
6,191 |
8,477 |
12,540 |
14,903 |
||||||||||||||
|
Covered nonperforming assets |
$ |
20,591 |
$ |
24,829 |
$ |
33,224 |
$ |
43,171 |
$ |
44,423 |
|||||||||
|
ASSET QUALITY RATIOS |
|||||||||||||||||||
|
Including covered loans: |
|||||||||||||||||||
|
Nonperforming loans as a % of loans |
3.06 |
% |
3.15 |
% |
3.36 |
% |
4.08 |
% |
4.50 |
% | |||||||||
|
Nonperforming assets as a % of loans plus ORE |
4.40 |
% |
4.77 |
% |
5.20 |
% |
6.13 |
% |
6.13 |
% | |||||||||
|
ALL to nonperforming loans |
54.41 |
% |
56.53 |
% |
54.77 |
% |
46.01 |
% |
41.49 |
% | |||||||||
|
Net (recoveries)/charge-offs, annualized to average loans |
(0.02) |
% |
0.17 |
% |
0.65 |
% |
0.65 |
% |
0.24 |
% | |||||||||
|
ALL as a % of loans |
1.67 |
% |
1.78 |
% |
1.83 |
% |
1.86 |
% |
1.86 |
% | |||||||||
|
Excluding covered loans: |
|||||||||||||||||||
|
Nonperforming loans as a % of loans |
2.28 |
% |
2.23 |
% |
2.08 |
% |
2.47 |
% |
3.00 |
% | |||||||||
|
Nonperforming assets as a % of loans plus ORE |
3.41 |
% |
3.60 |
% |
3.56 |
% |
4.14 |
% |
4.37 |
% | |||||||||
|
ALL to nonperforming loans |
75.15 |
% |
82.27 |
% |
82.63 |
% |
4.14 |
% |
60.57 |
% | |||||||||
|
Net (recoveries)/charge-offs, annualized to average loans |
(0.02) |
% |
0.06 |
% |
0.27 |
% |
0.40 |
% |
0.86 |
% | |||||||||
|
ALL as a % of loans |
1.71 |
% |
1.84 |
% |
1.93 |
% |
1.96 |
% |
1.95 |
% | |||||||||
|
CLASSIFIED ASSETS |
|||||||||||||||||||
|
Classified loans (1) |
$ |
88,361 |
$ |
85,708 |
$ |
95,121 |
$ |
101,919 |
$ |
112,036 |
|||||||||
|
ORE and repossessions |
25,945 |
32,201 |
35,674 |
42,104 |
39,926 |
||||||||||||||
|
Total classified assets |
$ |
114,306 |
$ |
117,909 |
$ |
130,795 |
$ |
144,023 |
$ |
151,962 |
|||||||||
|
(1) Amount of SBA guarantee included |
$ |
8,506 |
$ |
7,869 |
$ |
13,115 |
$ |
14,379 |
$ |
16,668 |
|||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
|
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
As of or for the Three Months Ended | ||||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||
|
Average loans outstanding, including HFS |
$ |
1,032,592 |
$ |
1,010,229 |
$ |
957,737 |
$ |
979,279 |
$ |
983,133 |
||||||||||||
|
Past due loans: |
||||||||||||||||||||||
|
Amount 30+ days past due |
$ |
1,117 |
$ |
1,561 |
$ |
1,277 |
$ |
1,697 |
$ |
1,747 |
||||||||||||
|
Number 30+ days past due |
109 |
130 |
130 |
173 |
162 |
|||||||||||||||||
|
30+ day performing delinquency rate (1) |
0.11 |
% |
0.15 |
% |
0.13 |
% |
0.18 |
% |
0.18 |
% | ||||||||||||
|
Nonperforming loans |
$ |
772 |
$ |
806 |
$ |
925 |
$ |
594 |
$ |
872 |
||||||||||||
|
Net charge-offs |
$ |
733 |
$ |
703 |
$ |
908 |
$ |
886 |
$ |
667 |
||||||||||||
|
Net charge-off rate (2) |
0.31 |
% |
0.29 |
% |
0.39 |
% |
0.38 |
% |
0.28 |
% | ||||||||||||
|
Number of vehicles repossessed during the period |
143 |
198 |
199 |
168 |
151 |
|||||||||||||||||
|
Average beacon score of portfolio |
752 |
752 |
752 |
755 |
742 |
|||||||||||||||||
|
Production by state: |
||||||||||||||||||||||
|
Alabama |
$ |
22,155 |
$ |
19,798 |
$ |
22,599 |
$ |
16,576 |
$ |
16,847 |
||||||||||||
|
Arkansas |
22,183 |
16,352 |
13,757 |
7,728 |
4,760 |
|||||||||||||||||
|
North Carolina |
18,980 |
18,731 |
19,292 |
18,750 |
15,226 |
|||||||||||||||||
|
South Carolina |
14,657 |
13,302 |
10,322 |
10,180 |
7,550 |
|||||||||||||||||
|
Florida |
76,829 |
76,253 |
77,873 |
72,676 |
67,243 |
|||||||||||||||||
|
Georgia |
45,154 |
43,064 |
44,171 |
38,203 |
42,218 |
|||||||||||||||||
|
Mississippi |
23,941 |
20,341 |
23,292 |
19,626 |
20,148 |
|||||||||||||||||
|
Tennessee |
15,746 |
13,674 |
17,122 |
19,347 |
14,858 |
|||||||||||||||||
|
Virginia |
11,458 |
11,040 |
11,877 |
10,339 |
8,601 |
|||||||||||||||||
|
Texas (3) |
15,429 |
5,045 |
— |
— |
— |
|||||||||||||||||
|
Total production by state |
$ |
266,532 |
$ |
237,600 |
$ |
240,305 |
$ |
213,425 |
$ |
197,451 |
||||||||||||
|
Loan sales |
$ |
195,027 |
$ |
88,153 |
$ |
93,602 |
$ |
152,418 |
$ |
58,073 |
||||||||||||
|
Portfolio yield |
3.39 |
% |
3.48 |
% |
3.57 |
% |
3.68 |
% |
3.88 |
% | ||||||||||||
|
(1) |
Calculated by dividing 30+ day performing delinquent loans as of the end of the period by period-end loans including held for sale for the specified loan category | |||||||||||||||||||||
|
(2) |
Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category | |||||||||||||||||||||
|
(3) |
Expansion into Texas began in October of 2013. | |||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
|
ANALYSIS OF MORTGAGE LENDING | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
For the Three Months Ended | ||||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||
|
Average loans outstanding |
$ |
170,988 |
$ |
194,626 |
$ |
328,038 |
$ |
297,024 |
$ |
284,910 |
||||||||||||
|
Average servicing outstanding |
$ |
4,473,027 |
$ |
4,221,134 |
$ |
3,953,760 |
$ |
3,239,672 |
$ |
2,817,771 |
||||||||||||
|
% of loan production for purchases |
78.48 |
% |
78.72 |
% |
74.13 |
% |
58.30 |
% |
36.78 |
% | ||||||||||||
|
% of loan production for refinance loans |
21.52 |
% |
21.28 |
% |
25.87 |
% |
41.70 |
% |
63.22 |
% | ||||||||||||
|
Production by region: |
||||||||||||||||||||||
|
Georgia |
$ |
181,667 |
$ |
259,289 |
$ |
353,187 |
$ |
427,815 |
$ |
392,749 |
||||||||||||
|
Florida/Alabama |
20,816 |
19,724 |
17,807 |
24,025 |
15,862 |
|||||||||||||||||
|
Virginia/Maryland |
73,471 |
91,494 |
151,573 |
167,099 |
111,126 |
|||||||||||||||||
|
Total retail |
275,954 |
370,507 |
522,567 |
618,939 |
519,737 |
|||||||||||||||||
|
Wholesale |
44,862 |
55,149 |
96,773 |
165,022 |
136,508 |
|||||||||||||||||
|
Total production |
$ |
320,816 |
$ |
425,656 |
$ |
619,340 |
$ |
783,961 |
$ |
656,245 |
||||||||||||
|
Loan sales |
$ |
328,145 |
$ |
467,932 |
$ |
753,196 |
$ |
756,224 |
$ |
634,074 |
||||||||||||
|
Portfolio yield including held-for-sale |
4.26 |
% |
4.10 |
% |
3.84 |
% |
3.59 |
% |
3.31 |
% | ||||||||||||
|
INCOME FROM MORTGAGE BANKING ACTIVITIES | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
For the Three Months Ended | ||||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||
|
Marketing gain, net |
$ |
7,991 |
$ |
8,568 |
$ |
12,785 |
$ |
13,916 |
$ |
12,684 |
||||||||||||
|
Origination points and fees |
1,787 |
2,474 |
3,806 |
4,212 |
3,452 |
|||||||||||||||||
|
Loan servicing revenue |
3,005 |
2,609 |
2,402 |
2,021 |
1,760 |
|||||||||||||||||
|
MSR amortization and impairment adjustments |
(2,196) |
(2,853) |
(1,184) |
9 |
(101) |
|||||||||||||||||
|
Total mortgage banking activities |
$ |
10,587 |
$ |
10,798 |
$ |
17,809 |
$ |
20,158 |
$ |
17,795 |
||||||||||||
|
Noncash items included in income |
||||||||||||||||||||||
|
Capitalized MSR, net |
$ |
2,170 |
$ |
3,992 |
$ |
7,367 |
$ |
5,934 |
$ |
4,467 |
||||||||||||
|
Valuation on MSR |
(619) |
(1,360) |
138 |
1,551 |
1,609 |
|||||||||||||||||
|
Mark to market adjustments |
1,362 |
344 |
2,605 |
(6,634) |
(2,345) |
|||||||||||||||||
|
Total noncash items |
$ |
2,913 |
$ |
2,976 |
$ |
10,110 |
$ |
851 |
$ |
3,731 |
||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES AVERAGE BALANCE, INTEREST AND YIELDS (UNAUDITED) | |||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||
|
March 31, 2014 |
March 31, 2013 | ||||||||||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ | ||||||||||||||||
|
($ in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate | |||||||||||||||
|
Assets |
|||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||
|
Loans, net of unearned income: |
|||||||||||||||||||||
|
Taxable |
$ |
2,062,284 |
$ |
21,719 |
4.27 |
% |
$ |
2,090,711 |
$ |
23,902 |
4.64 |
% | |||||||||
|
Tax-exempt (1) |
8,625 |
111 |
5.21 |
% |
5,840 |
65 |
4.52 |
% | |||||||||||||
|
Total loans |
2,070,909 |
21,830 |
4.28 |
% |
2,096,551 |
23,967 |
4.64 |
% | |||||||||||||
|
Investment securities: |
|||||||||||||||||||||
|
Taxable |
161,251 |
1,093 |
2.75 |
% |
143,965 |
849 |
2.39 |
% | |||||||||||||
|
Tax-exempt (2) |
14,920 |
240 |
6.51 |
% |
17,896 |
276 |
6.26 |
% | |||||||||||||
|
Total investment securities |
176,171 |
1,333 |
3.07 |
% |
161,861 |
1,125 |
2.82 |
% | |||||||||||||
|
Federal funds sold and bank deposits |
76,591 |
38 |
0.20 |
% |
23,236 |
3 |
0.05 |
% | |||||||||||||
|
Total interest-earning assets |
2,323,671 |
23,201 |
4.05 |
% |
2,281,648 |
25,095 |
4.46 |
% | |||||||||||||
|
Noninterest-earning assets: |
|||||||||||||||||||||
|
Cash and due from banks |
19,001 |
13,962 |
|||||||||||||||||||
|
Allowance for loan losses |
(33,869) |
(33,662) |
|||||||||||||||||||
|
Premises and equipment, net |
48,479 |
37,886 |
|||||||||||||||||||
|
Other real estate |
28,798 |
38,783 |
|||||||||||||||||||
|
Other assets |
143,396 |
130,921 |
|||||||||||||||||||
|
Total assets |
$ |
2,529,476 |
$ |
2,469,538 |
|||||||||||||||||
|
Liabilities and shareholders' equity |
|||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||
|
Demand deposits |
$ |
698,811 |
$ |
507 |
0.29 |
% |
$ |
620,425 |
$ |
418 |
0.27 |
% | |||||||||
|
Savings deposits |
308,819 |
296 |
0.39 |
% |
330,364 |
377 |
0.46 |
% | |||||||||||||
|
Time deposits |
675,034 |
1,685 |
1.01 |
% |
712,605 |
1,832 |
1.04 |
% | |||||||||||||
|
Total interest-bearing deposits |
1,682,664 |
2,488 |
0.60 |
% |
1,663,394 |
2,627 |
0.64 |
% | |||||||||||||
|
Other borrowings |
63,313 |
44 |
0.28 |
% |
154,501 |
406 |
1.07 |
% | |||||||||||||
|
Subordinated debt |
46,393 |
275 |
2.41 |
% |
67,527 |
867 |
5.21 |
% | |||||||||||||
|
Total interest-bearing liabilities |
1,792,370 |
2,807 |
0.63 |
% |
1,885,422 |
3,900 |
0.84 |
% | |||||||||||||
|
Noninterest-bearing liabilities and shareholders' equity: |
|||||||||||||||||||||
|
Demand deposits |
478,033 |
368,483 |
|||||||||||||||||||
|
Other liabilities |
21,665 |
21,074 |
|||||||||||||||||||
|
Shareholders' equity |
237,408 |
194,559 |
|||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,529,476 |
$ |
2,469,538 |
|||||||||||||||||
|
Net interest income/spread |
$ |
20,394 |
3.42 |
% |
$ |
21,195 |
3.62 |
% | |||||||||||||
|
Net interest margin |
3.56 |
% |
3.77 |
% | |||||||||||||||||
(1) Interest income includes the effect of taxable-equivalent adjustment for 2014 and 2013 of $39,000 and $23,000, respectively.
(2) Interest income includes the effect of taxable-equivalent adjustment for 2014 and 2013 of $84,000 and $97,000, respectively.
Contacts: Martha Fleming, Steve Brolly
Fidelity Southern Corporation (404) 240-1504
SOURCE Fidelity Southern Corporation
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