Fidelity Southern Corporation Earns $8.8 Million In Third Quarter Of 2014; Completes $171 Million Florida Deposit Acquisition
ATLANTA, Oct. 16, 2014 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the three and nine months ended September 30, 2014.
KEY RESULTS
- Total revenue increased to $53.8 million for the quarter
- Net income of $8.8 million or $0.38 per diluted share for the quarter and $22.8 million or $0.97 per diluted share year to date
- Return on average assets of 1.25% for the quarter and 1.15% year to date
- Tangible book value of $11.92 per share increased by $1.05 or 9.7%, year over year
- Branch footprint expanded in Florida with the opening of seven branches during the quarter including the acquisition of five branches and $170.7 million in deposits
- Loan portfolio grew by $105.2 million or 5.3% to $2.1 billion during the quarter and by $242.1 million or 13.2% year over year
- Mortgage servicing portfolio reached $5.2 billion during the quarter
Fidelity's Chairman, Jim Miller, said, "Results are solid with the Florida acquisition fitting well into our culture. There will be more branching and lending in Florida. Indirect lending has proven very successful in Texas and in Florida. Only time will tell if the environment we operate in will prove even more challenging, though we remain optimistic."
BALANCE SHEET
Total assets at September 30, 2014 grew to $2.9 billion, an increase of $123.9 million, or 4.5%, compared to June 30, 2014 and $294.2 million, or 11.5%, compared to September 30, 2013. These increases are primarily attributable to an increase in loan production, mainly in indirect and mortgage loans held for investment.
The assumption of deposits from six branches in Florida during September 2014 drove an increase in cash and cash equivalents of $36.4 million, or 66.1%, compared to June 30, 2014. A portion of the $170.7 million from the acquired deposits was also used to reduce other borrowings during the quarter which decreased by $111.4 million, or 59.3% to $76.4 million at September 30, 2014 compared to June 30, 2014.
Loans
Total loans held for investment at September 30, 2014 grew to $2.1 billion, an increase of $105.2 million, or 5.3% compared to June 30, 2014, and $242.1 million, or 13.2% compared to September 30, 2013. This growth occurred largely due to increases during the quarter in indirect loans of $90.6 million, or 9.1%, and mortgage loans of $25.6 million, or 15.2% due to the impact of new product offerings within mortgage, new loan production offices and expansion into new markets.
Deposits
Total deposits at September 30, 2014 of $2.5 billion increased by $233.9 million, or 10.5%, compared to June 30, 2014 and $290.0 million, or 13.4%, compared to September 30, 2013. The increases occurred primarily due to the acquisition of $170.7 million in deposits completed during September 2014 combined with organic growth of $63.2 million, or 2.8%, during the quarter and $119.3 million or 5.5%, year over year.
Core deposits, including noninterest-bearing demand deposits, grew organically by $67.1 million, or 4.2%, during the quarter and $196.1 million, or 13.5%, year over year due to core deposit growth from the continuing transaction account acquisition initiative, particularly in commercial accounts. Noninterest-bearing demand deposits increased to 25% of total average deposits for the quarter compared to 21% for the same period last year.
Excluding the deposit acquisition of $88.0 million, time deposits decreased by $3.9 million or 0.6% during the quarter and $76.8 million, or 10.7%, year over year. Time deposits also decreased as a percentage of average deposits to less than 30% for the quarter from over 34% for the same period last year.
The following table summarizes average deposit composition and average rate paid for the periods presented.
|
For the Three Months Ended | |||||||||||||||||||||||||||||
|
September 30, 2014 |
June 30, 2014 |
September 30, 2013 | |||||||||||||||||||||||||||
|
($ 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 |
$ |
574.8 |
-- |
% |
25.3 |
% |
$ |
534.5 |
-- |
% |
24.3 |
% |
$ |
447.8 |
-- |
% |
20.8 |
% | |||||||||||
|
Interest-bearing demand deposits |
712.1 |
0.24 |
% |
31.4 |
% |
694.1 |
0.27 |
% |
31.6 |
% |
652.8 |
0.28 |
% |
30.4 |
% | ||||||||||||||
|
Savings deposits |
318.3 |
0.34 |
% |
14.1 |
% |
314.9 |
0.37 |
% |
14.3 |
% |
315.0 |
0.39 |
% |
14.7 |
% | ||||||||||||||
|
Time deposits |
657.5 |
0.95 |
% |
29.2 |
% |
653.4 |
0.96 |
% |
29.8 |
% |
733.0 |
0.99 |
% |
34.1 |
% | ||||||||||||||
|
Total average deposits |
$ |
2,262.7 |
0.40 |
% |
100.0 |
% |
$ |
2,196.9 |
0.43 |
% |
100.0 |
% |
$ |
2,148.6 |
0.48 |
% |
100.0 |
% | |||||||||||
INCOME STATEMENT
Net Interest Margin
The net interest margin was 3.56% and 3.67% for the three and nine months ended September 30, 2014, respectively, compared to 3.59% for each of the same periods in 2013. The decrease in the net interest margin for the quarter was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2014. The year to date increase of 8 basis points in the net interest margin was primarily attributable to a decrease in subordinated debt expense compared to the same period in 2013. See "Average Balance Interest and Yields" below.
On a linked-quarter basis, the net interest margin decreased by 36 basis points compared to 3.92% for the second quarter of 2014, primarily due to a decrease of 43 basis points in the yield on total loans. This decrease is primarily attributable to the $1.3 million increase in the accretion of the loan discount recognized in the second quarter of 2014 as discussed in "Interest Income" below.
Excluding the accretion of the loan discount, the net interest margin was 3.48% and 3.55% for the three and nine months ended September 30, 2014, respectively, compared to 3.51% and 3.45% for the same periods in 2013. On a linked-quarter basis, the net interest margin, excluding the accretion of the loan discount, decreased by 15 basis points to 3.48% for the quarter compared to 3.63% for the prior quarter as new loans were originated at lower yields in 2014.
Interest Income
Interest income was $25.9 million and $75.0 million for the three and nine months ended September 30, 2014, an increase of $1.0 million and $1.3 million, or 3.9% and 1.7%, respectively, as compared to the same periods in 2013. The increase in interest income for the quarter was primarily due to a year over year increase in average loans of $241.3 million, primarily in the indirect and mortgage portfolios, partially offset by a decrease in the yield on total loans of 32 basis points as new loans were originated at lower yields in 2014.
On a linked-quarter basis, interest income decreased slightly, primarily due to the $1.3 million increase in the accretion of the loan discount recorded during the second quarter of 2014. This increase occurred as a result of increased cash flows from the earlier than expected resolution of certain acquired loans at amounts in excess of carrying value identified during the quarterly re-estimation of cash flows on acquired loans for the second quarter. Management does not believe that the increase recognized in the second quarter is reflective of a trend that will continue in future quarters.
Interest Expense
Interest expense was $2.7 million and $8.2 million for the three and nine months ended September 30, 2014, a decrease of $674,000 and $2.8 million, or 19.8% and 25.7%, respectively, as compared to the same periods in 2013. The decreases occurred primarily due to a reduction in subordinated debt expense of $434,000 for the quarter and $1.6 million year to date from the repayment of $21.5 million in subordinated debt in the third quarter of 2013.
On a linked-quarter basis, interest expense increased slightly by $53,000, or 2.0% as the average balance of interest-bearing liabilities increased by $137.4 million from quarter to quarter. This increase was partially offset by a decrease of 4 basis points in the rate on interest-bearing liabilities.
Noninterest Income
Noninterest income was $27.9 million and $70.6 million for the three and nine months ended September 30, 2014, an increase of $2.1 million and decrease of $8.5 million, or 8.0% and 10.8%, respectively, as compared to the same periods in 2013.
The $2.1 million net increase in noninterest income for the quarter was primarily related to an increase in gains on the sale of indirect and SBA loans. Higher gains on indirect loan sales drove $2.9 million of the increase in noninterest income from indirect lending activities of $3.7 million for the quarter. Indirect loan sales totaled $244.6 million for the quarter compared to sales of $93.6 million for the same period in the prior year. Noninterest income from SBA lending activities increased by $831,000 for the quarter as gains on SBA loan sales were $1.0 million higher for the quarter.
The increases in noninterest income from indirect and SBA lending activities were partially offset by a net decrease of $1.7 million in noninterest income from mortgage banking activities for the quarter. Loan servicing revenue increased by $809,000 to $3.2 million for the quarter as the servicing portfolio grew to $5.2 billion at September 30, 2014. However, a decrease in the volume of mortgage production and sales for the quarter resulted in a reduction of $2.5 million in other components of mortgage banking income. See "Income from Mortgage Banking Activities" table below.
The $8.5 million net decrease in noninterest income year to date, compared to the same period in 2013, included a decrease of $15.5 million in noninterest income from mortgage banking activities primarily due to lower mortgage loan sales for the period. Mortgage loan sales were $1.3 billion year to date compared to $2.1 billion for the same period last year. This decrease was partially offset by an increase of $7.6 million in noninterest income from indirect lending activities, primarily due to an increase in the volume of indirect loan sales. Year to date gains on indirect loan sales totaled $9.1 million on sales of $557.9 million as compared to gains of $3.1 million on $304.1 million of indirect loan sales for the same period last year.
On a linked-quarter basis, noninterest income increased by $4.6 million, or 19.7%. This increase was primarily attributable to increases in noninterest income from mortgage banking activities of $2.6 million and indirect lending activities of $2.7 million, partially offset by a decrease of $447,000 in other noninterest income due to lower gains on sales of ORE for the quarter. The increases in noninterest income from mortgage banking and indirect lending activities occurred primarily due to an increase in loan production and sales from quarter to quarter. See "Analysis of Indirect Lending" and "Analysis of Mortgage Lending" tables below.
Noninterest Expense
Noninterest expense was $35.7 million and $102.1 million for the three and nine months ended September 30, 2014, an increase of $1.6 million and $2.3 million, or 4.7% and 2.3%, respectively, as compared to the same periods in 2013. Salaries and benefits, occupancy and communications expenses have increased for all periods due to the growth in employees and locations and the associated administrative support functions as the organization continues to grow.
Salaries and benefits increased by $2.6 million for the quarter and $6.1 million year to date while occupancy and communication expenses increased by $878,000 and $2.6 million for the same periods.
The increases in personnel costs and facilities expenses were partially offset by reductions in commissions expenses and other operating expenses. Lower mortgage banking volume year over year resulted in a decrease in commissions expenses of $656,000 for the quarter and $5.9 million year to date. Lower ORE write downs compared to the prior year drove the decrease in other operating expenses of $1.2 million for the quarter and $401,000 year to date.
On a linked-quarter basis, noninterest expense increased by $2.0 million, or 5.8%. This increase was primarily attributable to an increase in salaries and employee benefits of $1.0 million or 6.6%. Other operating expenses also increased by $1.1 million or 13.8% due to fluctuations in loan-related expenses.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and wealth management services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2013 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||
|
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||||||||||
|
As of or for the Three Months Ended |
As of or for the Nine Months Ended | ||||||||||||||||||||||||||
|
($ in thousands, except per share data) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, | ||||||||||||||||||||
|
RESULTS OF OPERATIONS |
|||||||||||||||||||||||||||
|
Net interest income |
$ |
23,164 |
$ |
23,391 |
$ |
20,271 |
$ |
20,858 |
$ |
21,530 |
$ |
66,826 |
$ |
62,738 |
|||||||||||||
|
Provision for loan losses |
1,859 |
566 |
(2,450) |
273 |
1,121 |
(25) |
5,167 |
||||||||||||||||||||
|
Noninterest income |
27,908 |
23,318 |
19,383 |
17,753 |
25,844 |
70,609 |
79,131 |
||||||||||||||||||||
|
Noninterest expense |
35,710 |
33,743 |
32,656 |
32,538 |
34,102 |
102,109 |
99,785 |
||||||||||||||||||||
|
Income tax expense |
4,701 |
4,442 |
3,385 |
1,937 |
4,298 |
12,528 |
13,140 |
||||||||||||||||||||
|
Net income |
8,802 |
7,958 |
6,063 |
3,863 |
7,853 |
22,823 |
23,777 |
||||||||||||||||||||
|
PERFORMANCE |
|||||||||||||||||||||||||||
|
Earnings per share - basic (1) |
$ |
0.41 |
$ |
0.37 |
$ |
0.28 |
$ |
0.18 |
$ |
0.33 |
$ |
1.07 |
$ |
1.20 |
|||||||||||||
|
Earnings per share - diluted(1) |
0.38 |
0.34 |
0.26 |
0.16 |
0.30 |
0.97 |
1.07 |
||||||||||||||||||||
|
Return on average assets |
1.25 |
% |
1.22 |
% |
0.97 |
% |
0.61 |
% |
1.20 |
% |
1.15 |
% |
1.25 |
% | |||||||||||||
|
Return on average equity |
13.79 |
% |
13.09 |
% |
10.36 |
% |
6.54 |
% |
12.04 |
% |
12.46 |
% |
14.20 |
% | |||||||||||||
|
Yield on interest earning assets |
3.98 |
% |
4.37 |
% |
4.05 |
% |
4.09 |
% |
4.15 |
% |
4.12 |
% |
4.21 |
% | |||||||||||||
|
Cost of funds |
0.56 |
% |
0.60 |
% |
0.63 |
% |
0.64 |
% |
0.72 |
% |
0.59 |
% |
0.78 |
% | |||||||||||||
|
Net interest margin |
3.56 |
% |
3.92 |
% |
3.56 |
% |
3.59 |
% |
3.59 |
% |
3.67 |
% |
3.59 |
% | |||||||||||||
|
CAPITAL |
|||||||||||||||||||||||||||
|
Cash dividends paid per common share |
$ |
0.09 |
$ |
0.08 |
$ |
0.04 |
$ |
0.02 |
$ |
-- |
$ |
0.21 |
$ |
-- |
|||||||||||||
|
Dividend payout ratio(2) |
21.95 |
% |
21.62 |
% |
14.29 |
% |
11.11 |
% |
-- |
% |
19.63 |
% |
-- |
% | |||||||||||||
|
Tier 1 risk-based capital |
11.84 |
% |
12.12 |
% |
13.20 |
% |
12.71 |
% |
12.97 |
% |
11.84 |
% |
12.97 |
% | |||||||||||||
|
Total risk-based capital |
12.99 |
% |
13.34 |
% |
14.46 |
% |
13.96 |
% |
14.23 |
% |
12.99 |
% |
14.23 |
% | |||||||||||||
|
Leverage ratio |
10.64 |
% |
11.14 |
% |
11.21 |
% |
11.02 |
% |
10.53 |
% |
10.64 |
% |
10.53 |
% | |||||||||||||
|
BALANCE SHEET SUMMARY |
|||||||||||||||||||||||||||
|
Loans held for sale |
$ |
324,442 |
$ |
339,719 |
$ |
180,550 |
$ |
187,366 |
$ |
216,736 |
$ |
324,442 |
$ |
216,736 |
|||||||||||||
|
Loans |
2,073,803 |
1,968,614 |
1,848,092 |
1,893,037 |
1,831,708 |
2,073,803 |
1,831,708 |
||||||||||||||||||||
|
Allowance for loan losses |
(28,297) |
(28,912) |
(30,797) |
(33,684) |
(33,661) |
(28,297) |
(33,661) |
||||||||||||||||||||
|
Total assets |
2,861,665 |
2,737,742 |
2,556,887 |
2,564,168 |
2,567,482 |
2,861,665 |
2,567,482 |
||||||||||||||||||||
|
Total deposits |
2,459,291 |
2,225,419 |
2,200,389 |
2,202,452 |
2,169,275 |
2,459,291 |
2,169,275 |
||||||||||||||||||||
|
Shareholders' equity |
258,163 |
250,775 |
242,391 |
236,230 |
233,300 |
258,163 |
233,300 |
||||||||||||||||||||
|
STOCK PERFORMANCE |
|||||||||||||||||||||||||||
|
Market price: |
|||||||||||||||||||||||||||
|
Closing(1) |
$ |
13.70 |
$ |
12.99 |
$ |
13.97 |
$ |
16.54 |
$ |
15.21 |
$ |
13.70 |
$ |
15.21 |
|||||||||||||
|
High close (1) |
14.88 |
14.44 |
16.57 |
17.80 |
15.84 |
16.57 |
15.84 |
||||||||||||||||||||
|
Low close(1) |
12.98 |
12.80 |
13.63 |
13.32 |
12.47 |
12.80 |
9.35 |
||||||||||||||||||||
|
Daily average trading volume |
51,166 |
56,991 |
53,851 |
54,195 |
92,997 |
53,989 |
59,195 |
||||||||||||||||||||
|
Shares of common stock outstanding (1) |
21,327 |
21,318 |
21,277 |
21,343 |
21,240 |
21,327 |
21,240 |
||||||||||||||||||||
|
Book value per common share (1) |
$ |
12.10 |
$ |
11.76 |
$ |
11.39 |
$ |
11.07 |
$ |
10.98 |
$ |
12.10 |
$ |
10.98 |
|||||||||||||
|
Tangible book value per common share(1) |
11.92 |
11.66 |
11.28 |
10.96 |
10.87 |
11.92 |
10.87 |
||||||||||||||||||||
|
Price to book value |
1.13 |
1.10 |
1.23 |
1.49 |
1.39 |
1.13 |
1.39 |
||||||||||||||||||||
|
Price to tangible book value |
1.15 |
1.11 |
1.24 |
1.51 |
1.40 |
1.15 |
1.40 |
||||||||||||||||||||
|
ASSET QUALITY |
|||||||||||||||||||||||||||
|
Total nonperforming loans |
$ |
45,104 |
$ |
48,189 |
$ |
56,600 |
$ |
59,582 |
$ |
61,458 |
$ |
45,104 |
$ |
61,458 |
|||||||||||||
|
Total nonperforming assets(3) |
73,313 |
76,187 |
82,545 |
91,783 |
97,132 |
73,313 |
97,132 |
||||||||||||||||||||
|
Nonperforming Asset Ratio(4) |
3.49 |
% |
3.82 |
% |
4.40 |
% |
4.77 |
% |
5.20 |
% |
3.49 |
% |
5.20 |
% | |||||||||||||
|
OTHER INFORMATION |
|||||||||||||||||||||||||||
|
Noninterest income to total revenue (5) |
51.87 |
% |
47.22 |
% |
45.65 |
% |
42.75 |
% |
50.90 |
% |
48.48 |
% |
51.75 |
% | |||||||||||||
|
Full-Time equivalent employees |
1,011.6 |
968.3 |
927.8 |
889.9 |
865.1 |
1,011.6 |
865.1 |
||||||||||||||||||||
|
(1) Historical periods prior to and including December 31, 2013 adjusted for stock dividends | |||||||||||||||||||||||||||
|
(2) Calculated using Dividends Paid divided by Basic EPS | |||||||||||||||||||||||||||
|
(3) Nonperforming assets include nonaccrual loans, repossessions and ORE. | |||||||||||||||||||||||||||
|
(4) Nonperforming asset ratio is defined as nonperforming assets over gross total loans held to maturity, repossessions and ORE | |||||||||||||||||||||||||||
|
(5) Total revenue is calculated as interest income plus non-interest income | |||||||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||
|
ASSETS |
||||||||||||||||||||
|
Cash and cash equivalents |
$ |
91,565 |
$ |
55,139 |
$ |
166,952 |
$ |
116,559 |
$ |
140,871 |
||||||||||
|
Investment securities available-for-sale |
156,331 |
164,190 |
163,803 |
168,865 |
170,338 |
|||||||||||||||
|
Investment securities held-to-maturity |
7,588 |
7,851 |
3,795 |
4,051 |
4,468 |
|||||||||||||||
|
Loans held-for-sale |
324,442 |
339,719 |
180,550 |
187,366 |
216,736 |
|||||||||||||||
|
Loans |
2,073,803 |
1,968,614 |
1,848,092 |
1,893,037 |
1,831,708 |
|||||||||||||||
|
Allowance for loan losses |
(28,297) |
(28,912) |
(30,797) |
(33,684) |
(33,661) |
|||||||||||||||
|
Loans, net of allowance for loan losses |
2,045,506 |
1,939,702 |
1,817,295 |
1,859,353 |
1,798,047 |
|||||||||||||||
|
Premises and equipment, net |
59,650 |
50,419 |
48,937 |
44,555 |
41,964 |
|||||||||||||||
|
Other real estate, net |
26,999 |
26,930 |
24,547 |
30,982 |
34,493 |
|||||||||||||||
|
Bank owned life insurance |
34,279 |
33,995 |
34,127 |
33,855 |
33,575 |
|||||||||||||||
|
Servicing rights |
62,196 |
57,526 |
55,281 |
53,202 |
52,048 |
|||||||||||||||
|
Other assets |
53,109 |
62,271 |
61,600 |
65,380 |
74,942 |
|||||||||||||||
|
Total assets |
$ |
2,861,665 |
$ |
2,737,742 |
$ |
2,556,887 |
$ |
2,564,168 |
$ |
2,567,482 |
||||||||||
|
LIABILITIES |
||||||||||||||||||||
|
Deposits |
||||||||||||||||||||
|
Noninterest-bearing demand deposits |
$ |
639,471 |
$ |
560,932 |
$ |
525,853 |
$ |
488,224 |
$ |
448,087 |
||||||||||
|
Interest-bearing deposits |
||||||||||||||||||||
|
Demand and money market |
778,645 |
704,778 |
700,268 |
701,556 |
685,437 |
|||||||||||||||
|
Savings |
312,183 |
314,795 |
314,282 |
325,133 |
317,997 |
|||||||||||||||
|
Time deposits |
728,992 |
644,914 |
659,986 |
687,539 |
717,754 |
|||||||||||||||
|
Total deposits |
2,459,291 |
2,225,419 |
2,200,389 |
2,202,452 |
2,169,275 |
|||||||||||||||
|
Other borrowings |
76,402 |
187,815 |
43,685 |
59,233 |
88,422 |
|||||||||||||||
|
Subordinated debt |
46,393 |
46,393 |
46,393 |
46,393 |
46,393 |
|||||||||||||||
|
Other liabilities |
21,416 |
27,340 |
24,029 |
19,860 |
30,092 |
|||||||||||||||
|
Total liabilities |
2,603,502 |
2,486,967 |
2,314,496 |
2,327,938 |
2,334,182 |
|||||||||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||||||||||
|
Preferred stock |
-- |
-- |
-- |
-- |
-- |
|||||||||||||||
|
Common stock |
161,527 |
160,586 |
159,654 |
158,153 |
156,156 |
|||||||||||||||
|
Accumulated other comprehensive income, net |
2,367 |
2,804 |
1,606 |
968 |
1,723 |
|||||||||||||||
|
Retained earnings |
94,269 |
87,385 |
81,131 |
77,109 |
75,421 |
|||||||||||||||
|
Total shareholders' equity |
258,163 |
250,775 |
242,391 |
236,230 |
233,300 |
|||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,861,665 |
$ |
2,737,742 |
$ |
2,556,887 |
$ |
2,564,168 |
$ |
2,567,482 |
||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||||||||||
|
(in thousands, except per share data) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, | |||||||||||||||||||||
|
INTEREST INCOME |
||||||||||||||||||||||||||||
|
Loans, including fees |
$ |
24,690 |
$ |
24,801 |
$ |
21,791 |
$ |
22,639 |
$ |
23,900 |
$ |
71,282 |
$ |
70,793 |
||||||||||||||
|
Investment securities |
1,183 |
1,244 |
1,249 |
1,095 |
978 |
3,676 |
2,916 |
|||||||||||||||||||||
|
Federal funds sold and bank deposits |
18 |
20 |
38 |
43 |
53 |
76 |
71 |
|||||||||||||||||||||
|
Total interest income |
25,891 |
26,065 |
23,078 |
23,777 |
24,931 |
75,034 |
73,780 |
|||||||||||||||||||||
|
INTEREST EXPENSE |
||||||||||||||||||||||||||||
|
Deposits |
2,282 |
2,328 |
2,488 |
2,590 |
2,601 |
7,098 |
7,828 |
|||||||||||||||||||||
|
Other borrowings |
163 |
69 |
44 |
47 |
84 |
276 |
763 |
|||||||||||||||||||||
|
Subordinated debt |
282 |
277 |
275 |
282 |
716 |
834 |
2,451 |
|||||||||||||||||||||
|
Total interest expense |
2,727 |
2,674 |
2,807 |
2,919 |
3,401 |
8,208 |
11,042 |
|||||||||||||||||||||
|
Net interest income |
23,164 |
23,391 |
20,271 |
20,858 |
21,530 |
66,826 |
62,738 |
|||||||||||||||||||||
|
Provision for loan losses |
1,859 |
566 |
(2,450) |
273 |
1,121 |
(25) |
5,167 |
|||||||||||||||||||||
|
Net interest income after provision for loan losses |
21,305 |
22,825 |
22,721 |
20,585 |
20,409 |
66,851 |
57,571 |
|||||||||||||||||||||
|
NONINTEREST INCOME |
||||||||||||||||||||||||||||
|
Service charges on deposit accounts |
1,141 |
1,059 |
1,009 |
1,119 |
1,075 |
3,209 |
3,044 |
|||||||||||||||||||||
|
Other fees and charges |
1,140 |
1,100 |
920 |
1,012 |
997 |
3,160 |
2,859 |
|||||||||||||||||||||
|
Mortgage banking activities |
16,135 |
13,570 |
10,587 |
10,798 |
17,809 |
40,292 |
55,762 |
|||||||||||||||||||||
|
Indirect lending activities |
6,303 |
3,631 |
4,676 |
2,030 |
2,583 |
14,610 |
7,010 |
|||||||||||||||||||||
|
SBA lending activities |
1,479 |
1,359 |
844 |
492 |
647 |
3,682 |
3,148 |
|||||||||||||||||||||
|
Bank owned life insurance |
313 |
755 |
301 |
308 |
326 |
1,369 |
965 |
|||||||||||||||||||||
|
Securities gains |
-- |
-- |
-- |
188 |
-- |
-- |
-- |
|||||||||||||||||||||
|
Other |
1,397 |
1,844 |
1,046 |
1,806 |
2,407 |
4,287 |
6,343 |
|||||||||||||||||||||
|
Total noninterest income |
27,908 |
23,318 |
19,383 |
17,753 |
25,844 |
70,609 |
79,131 |
|||||||||||||||||||||
|
NONINTEREST EXPENSE |
||||||||||||||||||||||||||||
|
Salaries and employee benefits |
17,022 |
15,973 |
16,085 |
14,660 |
14,424 |
49,080 |
42,984 |
|||||||||||||||||||||
|
Commissions |
5,363 |
5,610 |
3,470 |
4,288 |
6,019 |
14,443 |
20,388 |
|||||||||||||||||||||
|
Occupancy |
3,467 |
3,407 |
2,603 |
2,799 |
2,844 |
9,477 |
7,542 |
|||||||||||||||||||||
|
Communication |
1,009 |
977 |
972 |
856 |
754 |
2,958 |
2,319 |
|||||||||||||||||||||
|
Other |
8,849 |
7,776 |
9,526 |
9,935 |
10,061 |
26,151 |
26,552 |
|||||||||||||||||||||
|
Total noninterest expense |
35,710 |
33,743 |
32,656 |
32,538 |
34,102 |
102,109 |
99,785 |
|||||||||||||||||||||
|
Income before income tax expense |
13,503 |
12,400 |
9,448 |
5,800 |
12,151 |
35,351 |
36,917 |
|||||||||||||||||||||
|
Income tax expense |
4,701 |
4,442 |
3,385 |
1,937 |
4,298 |
12,528 |
13,140 |
|||||||||||||||||||||
|
NET INCOME |
8,802 |
7,958 |
6,063 |
3,863 |
7,853 |
22,823 |
23,777 |
|||||||||||||||||||||
|
Preferred stock dividends and discount accretion |
-- |
-- |
-- |
-- |
(817) |
-- |
(2,463) |
|||||||||||||||||||||
|
Net income available to common equity |
$ |
8,802 |
$ |
7,958 |
$ |
6,063 |
$ |
3,863 |
$ |
7,036 |
$ |
22,823 |
$ |
21,314 |
||||||||||||||
|
EARNINGS PER SHARE:(1) |
||||||||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.41 |
$ |
0.37 |
$ |
0.28 |
$ |
0.18 |
$ |
0.33 |
$ |
1.07 |
$ |
1.20 |
||||||||||||||
|
Diluted earnings per share |
$ |
0.38 |
$ |
0.34 |
$ |
0.26 |
$ |
0.16 |
$ |
0.30 |
$ |
0.97 |
$ |
1.07 |
||||||||||||||
|
Weighted average common shares outstanding-basic |
21,319 |
21,301 |
21,288 |
21,332 |
21,290 |
21,300 |
17,727 |
|||||||||||||||||||||
|
Weighted average common shares outstanding-diluted |
23,464 |
23,428 |
23,447 |
23,533 |
23,611 |
23,444 |
19,834 |
|||||||||||||||||||||
|
(1) Historical periods prior to and including December 31, 2013 adjusted for stock dividends |
||||||||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
|
LOANS BY CATEGORY | ||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||
|
Commercial |
$ |
524,419 |
$ |
536,435 |
$ |
525,347 |
$ |
530,977 |
$ |
512,875 |
||||||||||
|
SBA |
143,302 |
136,946 |
138,331 |
134,823 |
133,867 |
|||||||||||||||
|
Total commercial and SBA loans |
667,721 |
673,381 |
663,678 |
665,800 |
646,742 |
|||||||||||||||
|
Construction loans |
108,823 |
113,873 |
101,443 |
101,698 |
99,379 |
|||||||||||||||
|
Indirect automobile |
1,087,710 |
997,117 |
925,101 |
975,223 |
942,217 |
|||||||||||||||
|
Installment |
15,647 |
15,892 |
15,932 |
13,473 |
14,270 |
|||||||||||||||
|
Total consumer loans |
1,103,357 |
1,013,009 |
941,033 |
988,696 |
956,487 |
|||||||||||||||
|
First mortgage |
119,292 |
93,453 |
68,546 |
60,928 |
51,807 |
|||||||||||||||
|
Second mortgage |
74,610 |
74,898 |
73,392 |
75,915 |
77,293 |
|||||||||||||||
|
Total mortgage loans |
193,902 |
168,351 |
141,938 |
136,843 |
129,100 |
|||||||||||||||
|
Loans |
2,073,803 |
1,968,614 |
1,848,092 |
1,893,037 |
1,831,708 |
|||||||||||||||
|
Loans held-for-sale: |
||||||||||||||||||||
|
Residential mortgage |
161,775 |
191,666 |
112,195 |
127,850 |
174,409 |
|||||||||||||||
|
SBA |
17,667 |
8,053 |
8,355 |
9,516 |
7,327 |
|||||||||||||||
|
Indirect automobile |
145,000 |
140,000 |
60,000 |
50,000 |
35,000 |
|||||||||||||||
|
Total loans held-for-sale |
324,442 |
339,719 |
180,550 |
187,366 |
216,736 |
|||||||||||||||
|
Total loans |
$ |
2,398,245 |
$ |
2,308,333 |
$ |
2,028,642 |
$ |
2,080,403 |
$ |
2,048,444 |
||||||||||
|
Noncovered loans |
$ |
2,036,097 |
$ |
1,923,088 |
$ |
1,796,256 |
$ |
1,834,675 |
$ |
1,768,384 |
||||||||||
|
Covered loans |
37,706 |
45,526 |
51,836 |
58,362 |
63,324 |
|||||||||||||||
|
Loans held-for-sale |
324,442 |
339,719 |
180,550 |
187,366 |
216,736 |
|||||||||||||||
|
Total loans |
$ |
2,398,245 |
$ |
2,308,333 |
$ |
2,028,642 |
$ |
2,080,403 |
$ |
2,048,444 |
||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||
|
As of or for the Three Months Ended | |||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | ||||||||||||||
|
Balance at beginning of period |
$ |
28,912 |
$ |
30,797 |
$ |
33,684 |
$ |
33,661 |
$ |
33,309 |
|||||||||
|
Net charge-offs/(recoveries): |
|||||||||||||||||||
|
Commercial and SBA |
1,337 |
1,467 |
364 |
(147) |
406 |
||||||||||||||
|
Construction |
(41) |
14 |
(1,680) |
(250) |
(241) |
||||||||||||||
|
Indirect automobile and installment loans |
614 |
623 |
743 |
696 |
930 |
||||||||||||||
|
Mortgage |
4 |
83 |
35 |
102 |
67 |
||||||||||||||
|
Covered |
77 |
(161) |
448 |
(57) |
37 |
||||||||||||||
|
Acquired, noncovered |
52 |
(1) |
(15) |
-- |
-- |
||||||||||||||
|
Total net charge-offs/(recoveries) |
2,043 |
2,025 |
(105) |
344 |
1,199 |
||||||||||||||
|
Provision for loan losses (1) |
1,859 |
566 |
(2,450) |
273 |
1,122 |
||||||||||||||
|
(Decrease)/increase in FDIC loss share receivable |
(431) |
(426) |
(542) |
94 |
429 |
||||||||||||||
|
Balance at end of period |
$ |
28,297 |
$ |
28,912 |
$ |
30,797 |
$ |
33,684 |
$ |
33,661 |
|||||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.34 |
% |
0.42 |
% |
(0.02)% |
0.06 |
% |
0.27 |
% | ||||||||||
|
Total Average Loans |
$ |
2,370,899 |
$ |
2,179,846 |
$ |
2,070,909 |
$ |
2,061,358 |
$ |
2,129,696 |
|||||||||
|
Allowance for loan losses as a percentage of loans |
1.36 |
% |
1.47 |
% |
1.67 |
% |
1.78 |
% |
1.84 |
% | |||||||||
|
(1) Net of benefit attributable to FDIC loss share receivable |
|||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
NONPERFORMING AND CLASSIFIED ASSETS | |||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | ||||||||||||||
|
NONCOVERED NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans |
$ |
36,490 |
$ |
37,340 |
$ |
40,983 |
$ |
40,944 |
$ |
36,711 |
|||||||||
|
Repossessions |
1,210 |
1,068 |
1,398 |
1,219 |
1,181 |
||||||||||||||
|
Other real estate (ORE) |
18,491 |
19,855 |
19,573 |
24,791 |
26,016 |
||||||||||||||
|
Noncovered nonperforming assets |
$ |
56,191 |
$ |
58,263 |
$ |
61,954 |
$ |
66,954 |
$ |
63,908 |
|||||||||
|
NONCOVERED NONPERFORMING ASSET RATIOS |
|||||||||||||||||||
|
Loans 30-89 days past due |
$ |
2,885 |
$ |
2,874 |
$ |
4,045 |
$ |
5,132 |
$ |
6,576 |
|||||||||
|
Loans past due 90 days or more and still accruing |
$ |
-- |
$ |
-- |
$ |
488 |
$ |
-- |
$ |
-- |
|||||||||
|
Loans 30-89 days past due to total loans |
0.14 |
% |
0.15 |
% |
0.23 |
% |
0.28 |
% |
0.37 |
% | |||||||||
|
Loans past due 90 days or more and still accruing to total loans |
-- |
% |
-- |
% |
0.03 |
% |
-- |
% |
-- |
% | |||||||||
|
Nonperforming assets to total loans, ORE, and repossessions |
2.73 |
% |
3.00 |
% |
3.41 |
% |
3.60 |
% |
3.56 |
% | |||||||||
|
COVERED NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans |
$ |
8,614 |
$ |
10,849 |
$ |
15,617 |
$ |
18,638 |
$ |
24,747 |
|||||||||
|
Other real estate |
8,508 |
7,075 |
4,974 |
6,191 |
8,477 |
||||||||||||||
|
Covered nonperforming assets |
$ |
17,122 |
$ |
17,924 |
$ |
20,591 |
$ |
24,829 |
$ |
33,224 |
|||||||||
|
ASSET QUALITY RATIOS |
|||||||||||||||||||
|
Classified Asset Ratio (3) |
25.36 |
% |
24.88 |
% |
27.14 |
% |
27.66 |
% |
30.90 |
% | |||||||||
|
Including covered loans: |
|||||||||||||||||||
|
Nonperforming loans as a % of loans |
2.17 |
% |
2.45 |
% |
3.06 |
% |
3.15 |
% |
3.36 |
% | |||||||||
|
Nonperforming assets as a % of loans plus ORE |
3.49 |
% |
3.82 |
% |
4.40 |
% |
4.77 |
% |
5.20 |
% | |||||||||
|
ALL to nonperforming loans |
62.74 |
% |
60.00 |
% |
54.41 |
% |
56.53 |
% |
54.77 |
% | |||||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.34 |
% |
0.42 |
% |
(0.02) |
% |
0.06 |
% |
0.27 |
% | |||||||||
|
ALL as a % of loans |
1.36 |
% |
1.47 |
% |
1.67 |
% |
1.78 |
% |
1.84 |
% | |||||||||
|
Excluding covered loans: |
|||||||||||||||||||
|
Nonperforming loans as a % of loans |
1.79 |
% |
1.94 |
% |
2.28 |
% |
2.23 |
% |
2.08 |
% | |||||||||
|
Nonperforming assets as a % of loans plus ORE |
2.73 |
% |
3.00 |
% |
3.41 |
% |
3.60 |
% |
3.56 |
% | |||||||||
|
ALL to nonperforming loans |
77.55 |
% |
77.43 |
% |
75.15 |
% |
82.27 |
% |
91.69 |
% | |||||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.41 |
% |
0.46 |
% |
(0.12) |
% |
0.09 |
% |
0.27 |
% | |||||||||
|
ALL as a % of loans |
1.39 |
% |
1.50 |
% |
1.71 |
% |
1.84 |
% |
1.90 |
% | |||||||||
|
CLASSIFIED ASSETS |
|||||||||||||||||||
|
Classified loans (1) |
$ |
61,161 |
$ |
57,880 |
$ |
63,993 |
$ |
59,787 |
$ |
66,685 |
|||||||||
|
ORE and repossessions |
21,287 |
21,633 |
21,279 |
26,401 |
28,436 |
||||||||||||||
|
Total classified assets (2) |
$ |
82,448 |
$ |
79,513 |
$ |
85,272 |
$ |
86,188 |
$ |
95,121 |
|||||||||
|
(1) Amount of SBA guarantee included |
$ |
7,590 |
$ |
6,462 |
$ |
8,506 |
$ |
7,869 |
$ |
13,115 |
|||||||||
|
(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 Tier 1 capital plus allowance for loan losses. |
|||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||||
|
ANALYSIS OF INDIRECT LENDING |
|||||||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||||||
|
As of or for the Three Months Ended |
|||||||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||||
|
Average loans outstanding(1) |
$ |
1,204,314 |
$ |
1,075,657 |
$ |
1,032,592 |
$ |
1,010,229 |
$ |
957,737 |
|||||||||||||
|
Loans serviced for others |
$ |
863,931 |
$ |
701,120 |
$ |
657,082 |
$ |
523,386 |
$ |
490,063 |
|||||||||||||
|
Past due loans: |
|||||||||||||||||||||||
|
Amount 30+ days past due |
$ |
1,573 |
$ |
1,363 |
$ |
1,117 |
$ |
1,561 |
$ |
1,277 |
|||||||||||||
|
Number 30+ days past due |
136 |
125 |
109 |
130 |
130 |
||||||||||||||||||
|
30+ day performing delinquency rate(2) |
0.13 |
% |
0.12 |
% |
0.11 |
% |
0.15 |
% |
0.13 |
% |
|||||||||||||
|
Nonperforming loans |
$ |
795 |
$ |
743 |
$ |
772 |
$ |
806 |
$ |
925 |
|||||||||||||
|
Nonperforming loans as a percentage of period end loans(2) |
0.06 |
% |
0.07 |
% |
0.08 |
% |
0.08 |
% |
0.09 |
% |
|||||||||||||
|
Net charge-offs |
$ |
612 |
$ |
614 |
$ |
733 |
$ |
703 |
$ |
908 |
|||||||||||||
|
Net charge-off rate(3) |
0.23 |
% |
0.25 |
% |
0.31 |
% |
0.29 |
% |
0.39 |
% |
|||||||||||||
|
Number of vehicles repossessed during the period |
136 |
126 |
143 |
198 |
199 |
||||||||||||||||||
|
Average beacon score of portfolio |
751 |
745 |
752 |
740 |
739 |
||||||||||||||||||
|
Production by state: |
|||||||||||||||||||||||
|
Alabama |
$ |
27,845 |
$ |
28,530 |
$ |
22,155 |
$ |
19,798 |
$ |
22,599 |
|||||||||||||
|
Arkansas |
47,894 |
36,572 |
22,183 |
16,352 |
13,757 |
||||||||||||||||||
|
North Carolina |
29,781 |
24,069 |
18,980 |
18,731 |
19,292 |
||||||||||||||||||
|
South Carolina |
22,189 |
23,139 |
14,657 |
13,302 |
10,322 |
||||||||||||||||||
|
Florida |
128,729 |
110,940 |
76,829 |
76,253 |
77,873 |
||||||||||||||||||
|
Georgia |
72,423 |
54,592 |
45,154 |
43,064 |
44,171 |
||||||||||||||||||
|
Mississippi |
30,525 |
28,569 |
23,941 |
20,341 |
23,292 |
||||||||||||||||||
|
Tennessee |
28,684 |
22,196 |
15,746 |
13,674 |
17,122 |
||||||||||||||||||
|
Virginia |
20,903 |
16,017 |
11,458 |
11,040 |
11,877 |
||||||||||||||||||
|
Texas(4) |
49,868 |
39,320 |
15,429 |
5,045 |
-- |
||||||||||||||||||
|
Louisiana (4) |
12,597 |
2,595 |
-- |
-- |
-- |
||||||||||||||||||
|
Total production by state |
$ |
471,438 |
$ |
386,539 |
$ |
266,532 |
$ |
237,600 |
$ |
240,305 |
|||||||||||||
|
Loan sales |
$ |
244,556 |
$ |
118,344 |
$ |
195,027 |
$ |
88,153 |
$ |
93,602 |
|||||||||||||
|
Portfolio yield(1) |
3.10 |
% |
3.26 |
% |
3.39 |
% |
3.48 |
% |
3.57 |
% |
|||||||||||||
|
(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 Texas in October of 2013 and into Louisiana in May of 2014 |
||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
|
ANALYSIS OF MORTGAGE LENDING | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
For the Three Months Ended | ||||||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||||
|
Average loans outstanding(1) |
$ |
284,396 |
$ |
228,298 |
$ |
170,988 |
$ |
194,626 |
$ |
328,038 |
||||||||||||
|
Loans serviced for others |
$ |
5,171,332 |
$ |
4,884,984 |
$ |
4,574,281 |
$ |
4,371,069 |
$ |
4,046,183 |
||||||||||||
|
% of loan production for purchases |
82.25 |
% |
86.18 |
% |
78.48 |
% |
78.72 |
% |
74.13 |
% | ||||||||||||
|
% of loan production for refinance loans |
17.75 |
% |
13.82 |
% |
21.52 |
% |
21.28 |
% |
25.87 |
% | ||||||||||||
|
Production by region: |
||||||||||||||||||||||
|
Georgia |
$ |
316,359 |
$ |
328,936 |
$ |
181,667 |
$ |
259,289 |
$ |
353,187 |
||||||||||||
|
Florida/Alabama |
31,642 |
26,383 |
20,816 |
19,724 |
17,807 |
|||||||||||||||||
|
Virginia/Maryland |
127,721 |
132,816 |
73,471 |
91,494 |
151,573 |
|||||||||||||||||
|
Total retail |
475,722 |
488,135 |
275,954 |
370,507 |
522,567 |
|||||||||||||||||
|
Wholesale |
60,393 |
73,252 |
44,862 |
55,149 |
96,773 |
|||||||||||||||||
|
Total production by region |
$ |
536,115 |
$ |
561,387 |
$ |
320,816 |
$ |
425,656 |
$ |
619,340 |
||||||||||||
|
Loan sales |
$ |
536,490 |
$ |
446,176 |
$ |
328,145 |
$ |
467,932 |
$ |
753,196 |
||||||||||||
|
Portfolio yield(1) |
4.13 |
% |
4.07 |
% |
4.26 |
% |
4.10 |
% |
3.84 |
% | ||||||||||||
|
INCOME FROM MORTGAGE BANKING ACTIVITIES | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
For the Three Months Ended | ||||||||||||||||||||||
|
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, | |||||||||||||||||
|
Marketing gain, net |
$ |
12,108 |
$ |
10,954 |
$ |
7,991 |
$ |
8,568 |
$ |
12,785 |
||||||||||||
|
Origination points and fees |
2,943 |
3,148 |
1,787 |
2,474 |
3,806 |
|||||||||||||||||
|
Loan servicing revenue |
3,211 |
2,998 |
3,005 |
2,609 |
2,402 |
|||||||||||||||||
|
MSR amortization and impairment adjustments |
(2,127) |
(3,530) |
(2,196) |
(2,853) |
(1,184) |
|||||||||||||||||
|
Total mortgage banking activities |
$ |
16,135 |
$ |
13,570 |
$ |
10,587 |
$ |
10,798 |
$ |
17,809 |
||||||||||||
|
Noncash items included in income from mortgage banking activities: |
||||||||||||||||||||||
|
Capitalized MSR, net |
$ |
4,062 |
$ |
3,693 |
$ |
2,170 |
$ |
3,992 |
$ |
7,367 |
||||||||||||
|
Valuation on MSR |
(156) |
(1,838) |
(619) |
(1,360) |
138 |
|||||||||||||||||
|
Mark to market adjustments |
(1,747) |
1,609 |
1,362 |
344 |
2,605 |
|||||||||||||||||
|
Total noncash items |
$ |
2,159 |
$ |
3,464 |
$ |
2,913 |
$ |
2,976 |
$ |
10,110 |
||||||||||||
|
(1) Includes held-for-sale |
||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
|
AVERAGE BALANCE, INTEREST AND YIELDS | |||||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||||
|
For the Nine Months Ended | |||||||||||||||||||||
|
September 30, 2014 |
September 30, 2013 | ||||||||||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ | ||||||||||||||||
|
($ in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate | |||||||||||||||
|
Assets |
|||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||
|
Loans, net of unearned income(1) |
$ |
2,208,317 |
$ |
71,404 |
4.32 |
% |
$ |
2,125,843 |
$ |
70,896 |
4.46 |
% | |||||||||
|
Investment securities(1) |
177,169 |
3,741 |
2.82 |
% |
169,199 |
3,187 |
2.52 |
% | |||||||||||||
|
Federal funds sold and bank deposits |
57,061 |
76 |
0.18 |
% |
58,174 |
72 |
0.17 |
% | |||||||||||||
|
Total interest-earning assets |
2,442,547 |
75,221 |
4.12 |
% |
2,353,216 |
74,155 |
4.21 |
% | |||||||||||||
|
Noninterest-earning assets: |
|||||||||||||||||||||
|
Cash and due from banks |
13,991 |
13,541 |
|||||||||||||||||||
|
Allowance for loan losses |
(31,049) |
(33,447) |
|||||||||||||||||||
|
Premises and equipment, net |
50,028 |
40,243 |
|||||||||||||||||||
|
Other real estate |
26,759 |
39,038 |
|||||||||||||||||||
|
Other assets |
144,069 |
136,935 |
|||||||||||||||||||
|
Total assets |
$ |
2,646,345 |
$ |
2,549,526 |
|||||||||||||||||
|
Liabilities and shareholders' equity |
|||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||
|
Demand deposits |
$ |
701,740 |
$ |
1,405 |
0.27 |
% |
$ |
633,817 |
$ |
1,300 |
0.27 |
% | |||||||||
|
Savings deposits |
314,025 |
862 |
0.37 |
% |
321,344 |
1,017 |
0.42 |
% | |||||||||||||
|
Time deposits |
661,931 |
4,831 |
0.98 |
% |
725,275 |
5,511 |
1.02 |
% | |||||||||||||
|
Total interest-bearing deposits |
1,677,696 |
7,098 |
0.57 |
% |
1,680,436 |
7,828 |
0.62 |
% | |||||||||||||
|
Other borrowings |
121,208 |
276 |
0.30 |
% |
149,940 |
763 |
0.68 |
% | |||||||||||||
|
Subordinated debt |
46,393 |
834 |
2.40 |
% |
65,824 |
2,451 |
4.98 |
% | |||||||||||||
|
Total interest-bearing liabilities |
1,845,297 |
8,208 |
0.59 |
% |
1,896,200 |
11,042 |
0.78 |
% | |||||||||||||
|
Noninterest-bearing liabilities and shareholders' equity: |
|||||||||||||||||||||
|
Demand deposits |
529,450 |
407,163 |
|||||||||||||||||||
|
Other liabilities |
26,697 |
22,354 |
|||||||||||||||||||
|
Shareholders' equity |
244,901 |
223,809 |
|||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,646,345 |
$ |
2,549,526 |
|||||||||||||||||
|
Net interest income/spread |
$ |
67,013 |
3.53 |
% |
$ |
63,113 |
3.43 |
% | |||||||||||||
|
Net interest margin |
3.67 |
% |
3.59 |
% | |||||||||||||||||
|
(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 Three Months Ended | |||||||||||||||||||||||||
|
September 30, 2014 |
September 30, 2013 | ||||||||||||||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ | ||||||||||||||||||||
|
($ in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate | |||||||||||||||||||
|
Assets |
|||||||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||||||
|
Loans, net of unearned income (1) |
$ |
2,370,899 |
$ |
24,732 |
4.14 |
% |
$ |
2,129,642 |
$ |
23,937 |
4.46 |
% | |||||||||||||
|
Investment securities (1) |
177,811 |
1,237 |
2.76 |
% |
175,229 |
1,065 |
2.41 |
% | |||||||||||||||||
|
Federal funds sold and bank deposits |
44,670 |
18 |
0.16 |
% |
89,617 |
53 |
0.23 |
% | |||||||||||||||||
|
Total interest-earning assets |
2,593,380 |
25,987 |
3.98 |
% |
2,394,488 |
25,055 |
4.15 |
% | |||||||||||||||||
|
Noninterest-earning assets: |
|||||||||||||||||||||||||
|
Cash and due from banks |
10,881 |
15,562 |
|||||||||||||||||||||||
|
Allowance for loan losses |
(28,570) |
(33,419) |
|||||||||||||||||||||||
|
Premises and equipment, net |
52,790 |
41,675 |
|||||||||||||||||||||||
|
Other real estate |
25,384 |
39,311 |
|||||||||||||||||||||||
|
Other assets |
143,997 |
141,961 |
|||||||||||||||||||||||
|
Total assets |
$ |
2,797,862 |
$ |
2,599,578 |
|||||||||||||||||||||
|
Liabilities and shareholders' equity |
|||||||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||||||
|
Demand deposits |
$ |
712,121 |
$ |
432 |
0.24 |
% |
$ |
652,779 |
$ |
459 |
0.28 |
% | |||||||||||||
|
Savings deposits |
318,261 |
272 |
0.34 |
% |
315,033 |
312 |
0.39 |
% | |||||||||||||||||
|
Time deposits |
657,527 |
1,578 |
0.95 |
% |
732,999 |
1,830 |
0.99 |
% | |||||||||||||||||
|
Total interest-bearing deposits |
1,687,909 |
2,282 |
0.54 |
% |
1,700,811 |
2,601 |
0.61 |
% | |||||||||||||||||
|
Other borrowings |
205,377 |
163 |
0.31 |
% |
103,788 |
84 |
0.32 |
% | |||||||||||||||||
|
Subordinated debt |
46,393 |
282 |
2.41 |
% |
62,473 |
716 |
4.55 |
% | |||||||||||||||||
|
Total interest-bearing liabilities |
1,939,679 |
2,727 |
0.56 |
% |
1,867,072 |
3,401 |
0.72 |
% | |||||||||||||||||
|
Noninterest-bearing liabilities and shareholders' equity: |
|||||||||||||||||||||||||
|
Demand deposits |
574,763 |
447,848 |
|||||||||||||||||||||||
|
Other liabilities |
30,209 |
25,986 |
|||||||||||||||||||||||
|
Shareholders' equity |
253,211 |
258,672 |
|||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,797,862 |
$ |
2,599,578 |
|||||||||||||||||||||
|
Net interest income/spread |
$ |
23,260 |
3.42 |
% |
$ |
21,654 |
3.43 |
% | |||||||||||||||||
|
Net interest margin |
3.56 |
% |
3.59 |
% | |||||||||||||||||||||
|
(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
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