Fidelity Southern Corporation Earns $6.1 Million In First Quarter Of 2014

News provided by

Fidelity Southern Corporation

Apr 17, 2014, 04:08 ET

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,
2014

December 31,
2013

March 31,
2013

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,
2014

December 31,
2013

March 31,
2013

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,
2014

December 31,
2013

March 31,
2013

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
Amount

Rate

Percent of
Total
Deposits

Average
Amount

Rate

Percent of
Total
Deposits

Average
Amount

Rate

Percent of
Total
Deposits

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

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
  from mortgage banking activities:








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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