Fidelity Southern Corporation Earns Record $10.7 Million In First Quarter
ATLANTA, April 16, 2015 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the quarter ended March 31, 2015.
KEY RESULTS
- Net income of $10.7 million, or $0.45 per diluted share for the quarter, an increase of $4.6 million, or $0.19 per diluted share, year over year
- Total revenue of $58.5 million for the quarter
- Mortgage banking income of $21.3 million, an increase of $10.7 million, or 101.4%, year over year
- Mortgage production increased $292.2 million, or 91.1%, year over year to $613.0 million for the quarter
- Return on average assets of 1.40% for the quarter
- Tangible book value of $12.64 per share increased by $1.36, or 12.1%, year over year
- Loan portfolio grew by $64.3 million, or 2.9%, during the quarter and $469.5 million, or 25.4%, year over year, to $2.3 billion
- Loan servicing portfolio increased to $6.9 billion, or 26.6%, year over year
- Total deposit portfolio grew by $194.9 million, or 7.9%, during the quarter and $452.5 million, or 20.6%, year over year, to $2.7 billion
Fidelity's Chairman, Jim Miller, said, "There was a surge in mortgage financing in the first quarter, which we capitalized on. Purchase volume remained a majority of the business. Geographic expansion in the Carolinas and the Mid-Atlantic paid dividends. This means we should, going forward, have mortgage production greater than budgeted, but we don't know if the surge will continue. Based on our numbers across the board, it looks like the recovery is gaining momentum, which bodes well for all lines of business though rates and terms are increasingly challenging. Our partnerships with U.S. Bancorp's Elavon unit for handling merchant services, and with FNB Omaha for credit cards are very promising. Trust is performing as planned. Our strategic moves continue. In Georgia, we have identified two new existing bank branches and will open next month our office on Howell Mill Road. Other moves are pending here and in Florida."
BALANCE SHEET
Total assets at March 31, 2015, grew to $3.2 billion, an increase of $120.2 million, or 3.9%, compared to December 31, 2014, and $648.5 million, or 25.4%, compared to March 31, 2014. These increases are primarily attributable to an increase in loan production, mainly in indirect and mortgage loans held for investment.
Loans
Total loans held for investment at March 31, 2015, grew to $2.3 billion, an increase of $64.3 million, or 2.9%, compared to December 31, 2014, and $469.5 million, or 25.4%, compared to March 31, 2014.
Continued strong auto sales and overall mortgage volume were the main drivers of the growth in indirect and mortgage loans. Indirect loans grew by $31.8 million and $325.9 million, or 2.6% and 35.2%, respectively, and mortgage loans increased by $24.8 million and $120.7 million, or 10.4% and 85.0%, respectively, compared to December 31, 2014 and March 31, 2014.
Construction loans increased by $10.5 million and $33.0 million, or 8.4% and 32.5%, respectively, compared to December 31, 2014 and March 31, 2014, due to expansion into the Savannah and Birmingham markets in addition to organic growth in our existing markets.
The following table summarizes average loans by category for the periods presented.
|
For the Quarter Ended |
||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
March 31, |
|||||||||
|
Commercial |
$ |
526,819 |
$ |
519,932 |
$ |
531,517 |
||||||
|
SBA |
149,420 |
152,672 |
145,863 |
|||||||||
|
Construction |
129,029 |
115,146 |
100,165 |
|||||||||
|
Indirect automobile |
1,419,294 |
1,329,306 |
1,032,592 |
|||||||||
|
Installment |
13,047 |
11,938 |
15,539 |
|||||||||
|
Residential mortgage |
337,122 |
300,652 |
170,675 |
|||||||||
|
Home equity lines of credit |
81,825 |
79,906 |
74,558 |
|||||||||
|
Total average loans (including HFS) |
$ |
2,656,556 |
$ |
2,509,552 |
$ |
2,070,909 |
||||||
Deposits
Total deposits at March 31, 2015, of $2.7 billion increased by $194.9 million, or 7.9%, compared to December 31, 2014, and $452.5 million, or 20.6%, compared to March 31, 2014. The increase for the quarter is attributable to an increase in noninterest bearing demand deposits, particularly in commercial accounts which increased $106.8 million, and an increase of $26.8 million in time deposits. The year over year increase occurred primarily due to organic growth of $243.4 million, primarily in noninterest bearing deposits, which increased $155.7 million, as well as the assumption of deposits from six branches in Florida during September 2014 of $170.9 million, and assumption of deposits from one branch in Florida during January 2015 of $38.2 million.
Average core deposits, including noninterest-bearing demand deposits, grew by $53.1 million, or 3.2%, during the quarter and $242.3 million, or 16.3%, year over year, particularly in commercial accounts and assumption of deposits discussed above. Noninterest-bearing demand deposits increased to 24.0% of total average deposits for the quarter compared to 23.5% at December 31, 2014, and 22.2% at March 31, 2014.
Time deposits increased by $26.8 million, or 3.4%, during the quarter and $156.9 million, or 23.8%, year over year. The year over year change occurred primarily due to $88.0 million in time deposits assumed during the third quarter of 2014 and a $62.1 million increase in brokered deposits generally used to fund loan growth.
The following table summarizes average deposit composition and average rate paid for the periods presented.
|
For the Quarter Ended | |||||||||||||||||||||||||||||
|
March 31, 2015 |
December 31, 2014 |
March 31, 2014 | |||||||||||||||||||||||||||
|
($ 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 |
$ |
605.8 |
-- |
% |
24.0 |
% |
$ |
567.4 |
-- |
% |
23.5 |
% |
$ |
478.0 |
-- |
% |
22.2 |
% | |||||||||||
|
Interest-bearing demand deposits |
812.8 |
0.23 |
% |
32.1 |
% |
783.9 |
0.25 |
% |
32.3 |
% |
698.8 |
0.29 |
% |
32.3 |
% | ||||||||||||||
|
Savings deposits |
309.4 |
0.33 |
% |
12.2 |
% |
323.6 |
0.35 |
% |
13.4 |
% |
308.8 |
0.39 |
% |
14.3 |
% | ||||||||||||||
|
Time deposits |
803.0 |
0.90 |
% |
31.7 |
% |
741.2 |
0.98 |
% |
30.8 |
% |
675.0 |
1.01 |
% |
31.2 |
% | ||||||||||||||
|
Total average deposits |
$ |
2,531.0 |
0.40 |
% |
100.0 |
% |
$ |
2,416.1 |
0.43 |
% |
100.0 |
% |
$ |
2,160.6 |
0.48 |
% |
100.0 |
% | |||||||||||
INCOME STATEMENT
Interest Income
Interest income was $26.5 million for the quarter, an increase of $3.4 million, or 14.7% as compared to the same period in 2014. The increase was primarily due to a year over year increase in average loans of $585.6 million, or 28.3%, primarily in the indirect and mortgage portfolios, partially offset by a decrease in the yield on loans of 41 basis points, as new loans, on average, were originated at lower yields over the previous twelve months.
On a linked-quarter basis, interest income decreased slightly, primarily due to a decrease of 15 basis points in the yield on total loans, net of a $147.0 million increase in average total loans.
Interest Expense
Interest expense was $2.9 million for the quarter, an increase of $138,000, or 4.9% as compared to the same period in 2014. The year over year increase occurred primarily due to an increase in average other borrowings of $166.1 million used to fund growth in average loans.
On a linked-quarter basis, interest expense decreased by $73,000, or 2.4%, primarily due to a reduction of 4 basis points in the cost of interest bearing deposits.
Net Interest Margin
The net interest margin was 3.35% for the quarter, compared to 3.55% for the same period in 2014. The decrease was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2015, partially offset by a slight decrease in deposit yields.
On a linked-quarter basis, the net interest margin decreased by 12 basis points compared to 3.47% for the prior quarter, primarily due to a decrease of 15 basis points in the yield on total loans, offset by an increased volume of loans for the quarter.
Noninterest Income
Noninterest income was $32.0 million for the quarter, an increase of $12.7 million , or 65.3%, as compared to the same period in 2014. The increase was primarily related to an increase in gains on the sale of mortgage and indirect loans. Noninterest income from mortgage banking activities increased by $10.7 million for the quarter as gains on mortgage loan sales were $11.8 million higher for the quarter. Fidelity was able to take advantage of the nationwide refinance surge during the quarter while continuing to grow our purchase money mortgage business year over year. Mortgage loan production increased $292.2 million, or 91.1%, to $613.0 million while mortgage loan sales increased $223.9 million, or 68.2%, to $328.1 million year over year. Mortgage loan servicing revenue increased by $641,000 to $3.6 million for the quarter as the servicing portfolio grew to $5.6 billion at March 31, 2015. These increases were partially offset by an increase in mortgage servicing right amortization and impairment adjustment of $2.6 million driven by an increase in prepayment speed assumption.
Higher gains on indirect loan sales drove $723,000 of the increase in noninterest income from indirect lending activities of $1.3 million for the quarter. Indirect loan sales totaled $219.8 million for the quarter compared to sales of $195.0 million for the same period in the prior year.
On a linked-quarter basis, noninterest income increased by $7.3 million, or 29.7%, primarily attributable to increases in income from mortgage banking activities and indirect lending activities of $5.8 million and $2.1 million, respectively. These increases occurred primarily due to increased gain on sale of mortgage and indirect loans of $7.7 million and $2.2 million, respectively, from growth in sales of $76.2 million and $97.8 million, respectively. See "Analysis of Indirect Lending" and "Analysis of Mortgage Lending" tables below.
Noninterest Expense
Noninterest expense was $38.6 million for the quarter, an increase of $6.0 million, or 18.3%, as compared to the same period in 2014.
Salaries and benefits expense has increased due to the growth in employees and locations and the associated administrative support functions as the Company continues to grow. Salaries and benefits increased by $2.7 million, or 17.0%, year over year.
Commissions expense increased $2.7 million, or 77.5%, compared to the same period in 2014. This increase corresponds to the growth in mortgage loan production, which increased $292.2 million or 91.1% compared to the same period in 2014.
Net occupancy and communication also increased $905,000, or 25.7%, year over year, due to the Bank's continued growth during the period.
On a linked-quarter basis, noninterest expense increased by $2.0 million, or 5.4%, primarily due to an $896,000 increase in salaries and benefits and a $615,000 increase in commissions for the quarter.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and trust services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2014 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.
-end-
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||
|
As of or for the Quarter Ended |
||||||||||||
|
($ in thousands, except per share data) |
March 31, |
December 31, |
March 31, |
|||||||||
|
INCOME STATEMENT DATA: |
||||||||||||
|
Interest income |
$ |
26,486 |
$ |
26,633 |
$ |
23,084 |
||||||
|
Interest expense |
2,945 |
3,018 |
2,807 |
|||||||||
|
Net interest income |
23,541 |
23,615 |
20,277 |
|||||||||
|
Provision for loan losses |
108 |
556 |
(2,450) |
|||||||||
|
Noninterest income |
32,038 |
24,711 |
19,377 |
|||||||||
|
Noninterest expense |
38,635 |
36,645 |
32,656 |
|||||||||
|
Net income |
10,690 |
7,213 |
6,063 |
|||||||||
|
PERFORMANCE: |
||||||||||||
|
Earnings per common share - basic |
$ |
0.50 |
$ |
0.34 |
$ |
0.28 |
||||||
|
Earnings per common share - diluted |
0.45 |
0.31 |
0.26 |
|||||||||
|
Book value per common share |
$ |
12.85 |
$ |
12.40 |
$ |
11.39 |
||||||
|
Tangible book value per common share |
12.64 |
12.22 |
11.28 |
|||||||||
|
Cash dividends paid per common share |
$ |
0.09 |
$ |
0.09 |
$ |
0.04 |
||||||
|
Return on average assets |
1.40 |
% |
0.98 |
% |
0.97 |
% |
||||||
|
Return on average shareholders' equity |
16.20 |
% |
10.99 |
% |
10.36 |
% |
||||||
|
Net interest margin |
3.35 |
% |
3.47 |
% |
3.55 |
% |
||||||
|
END OF PERIOD BALANCE SHEET SUMMARY: |
||||||||||||
|
Total assets |
$ |
3,205,376 |
$ |
3,085,225 |
$ |
2,556,887 |
||||||
|
Earning assets |
2,951,135 |
2,848,618 |
2,350,759 |
|||||||||
|
Loans, excluding Loans Held-for-Sale |
2,317,581 |
2,253,306 |
1,848,092 |
|||||||||
|
Total loans |
2,723,098 |
2,622,241 |
2,028,642 |
|||||||||
|
Total deposits |
2,652,896 |
2,458,022 |
2,200,389 |
|||||||||
|
Shareholders' equity |
274,898 |
264,951 |
242,391 |
|||||||||
|
DAILY AVERAGE BALANCE SHEET SUMMARY: |
||||||||||||
|
Total assets |
$ |
3,098,079 |
$ |
2,921,742 |
$ |
2,529,476 |
||||||
|
Earning assets |
2,858,827 |
2,711,138 |
2,325,164 |
|||||||||
|
Loans, excluding Loans Held-for-Sale |
2,298,789 |
2,192,383 |
1,886,136 |
|||||||||
|
Total loans |
2,656,556 |
2,509,552 |
2,070,909 |
|||||||||
|
Total deposits |
2,530,988 |
2,416,140 |
2,160,696 |
|||||||||
|
Shareholders' equity |
267,561 |
260,308 |
237,408 |
|||||||||
|
ASSET QUALITY RATIOS: |
||||||||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.29 |
% |
0.50 |
% |
(0.02)% |
|||||||
|
Allowance to period-end loans |
1.03 |
% |
1.13 |
% |
1.67 |
% |
||||||
|
Nonperforming assets to total loans, ORE and repossessions |
2.33 |
% |
2.61 |
% |
3.66 |
% |
||||||
|
Allowance to nonperforming loans, ORE and repossessions |
0.44x |
0.43x |
0.45x |
|||||||||
|
SELECTED RATIOS: |
||||||||||||
|
Loans to total deposits |
87.36 |
% |
91.67 |
% |
83.99 |
% |
||||||
|
Average total loans to average earning assets |
92.92 |
% |
92.56 |
% |
89.07 |
% |
||||||
|
Noninterest income to total revenue |
54.74 |
% |
48.13 |
% |
45.63 |
% |
||||||
|
Leverage ratio |
9.89 |
% |
10.40 |
% |
11.21 |
% |
||||||
|
Common equity tier 1 capital |
9.06 |
% |
N/A |
N/A |
||||||||
|
Tier 1 risk-based capital |
10.63 |
% |
11.07 |
% |
13.20 |
% |
||||||
|
Total risk-based capital |
11.43 |
% |
12.01 |
% |
14.46 |
% |
||||||
|
Average equity to average assets |
8.64 |
% |
8.91 |
% |
9.39 |
% |
||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
March 31, | |||||||||
|
ASSETS |
||||||||||||
|
Cash and cash equivalents |
$ |
85,615 |
$ |
71,605 |
$ |
166,952 |
||||||
|
Investment securities available-for-sale |
139,727 |
149,590 |
163,803 |
|||||||||
|
Investment securities held-to-maturity |
10,316 |
7,349 |
3,795 |
|||||||||
|
Loans held-for-sale |
405,517 |
368,935 |
180,550 |
|||||||||
|
Loans |
2,317,581 |
2,253,306 |
1,848,092 |
|||||||||
|
Allowance for loan losses |
(23,758) |
(25,450) |
(30,797) |
|||||||||
|
Loans, net of allowance for loan losses |
2,293,823 |
2,227,856 |
1,817,295 |
|||||||||
|
Premises and equipment, net |
60,710 |
60,857 |
48,937 |
|||||||||
|
Other real estate, net |
19,988 |
22,564 |
24,547 |
|||||||||
|
Bank owned life insurance |
65,013 |
59,553 |
34,127 |
|||||||||
|
Servicing rights |
68,146 |
64,897 |
55,281 |
|||||||||
|
Other assets |
56,521 |
52,019 |
61,600 |
|||||||||
|
Total assets |
$ |
3,205,376 |
$ |
3,085,225 |
$ |
2,556,887 |
||||||
|
LIABILITIES |
||||||||||||
|
Deposits |
||||||||||||
|
Noninterest-bearing demand deposits |
$ |
706,679 |
$ |
558,018 |
$ |
525,853 |
||||||
|
Interest-bearing deposits |
||||||||||||
|
Demand and money market |
825,244 |
788,373 |
700,268 |
|||||||||
|
Savings |
304,135 |
321,621 |
314,282 |
|||||||||
|
Time deposits |
816,838 |
790,010 |
659,986 |
|||||||||
|
Total deposits |
2,652,896 |
2,458,022 |
2,200,389 |
|||||||||
|
Other borrowings |
201,018 |
291,087 |
43,685 |
|||||||||
|
Subordinated debt |
46,393 |
46,393 |
46,393 |
|||||||||
|
Other liabilities |
30,171 |
24,772 |
24,029 |
|||||||||
|
Total liabilities |
2,930,478 |
2,820,274 |
2,314,496 |
|||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||
|
Preferred stock |
-- |
-- |
-- |
|||||||||
|
Common stock |
163,340 |
162,575 |
159,654 |
|||||||||
|
Accumulated other comprehensive income, net |
3,229 |
2,814 |
1,606 |
|||||||||
|
Retained earnings |
108,329 |
99,562 |
81,131 |
|||||||||
|
Total shareholders' equity |
274,898 |
264,951 |
242,391 |
|||||||||
|
Total liabilities and shareholders' equity |
$ |
3,205,376 |
$ |
3,085,225 |
$ |
2,556,887 |
||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||
|
For the Quarter Ended |
|||||||||||||
|
($ in thousands, except per share data) |
March 31, |
December 31, |
March 31, |
||||||||||
|
INTEREST INCOME |
|||||||||||||
|
Loans, including fees |
$ |
25,289 |
$ |
25,382 |
$ |
21,797 |
|||||||
|
Investment securities |
1,185 |
1,242 |
1,249 |
||||||||||
|
Federal funds sold and bank deposits |
12 |
9 |
38 |
||||||||||
|
Total interest income |
26,486 |
26,633 |
23,084 |
||||||||||
|
INTEREST EXPENSE |
|||||||||||||
|
Deposits |
2,492 |
2,609 |
2,488 |
||||||||||
|
Other borrowings |
177 |
130 |
44 |
||||||||||
|
Subordinated debt |
276 |
279 |
275 |
||||||||||
|
Total interest expense |
2,945 |
3,018 |
2,807 |
||||||||||
|
Net interest income |
23,541 |
23,615 |
20,277 |
||||||||||
|
Provision for loan losses |
108 |
556 |
(2,450) |
||||||||||
|
Net interest income after provision for loan losses |
23,433 |
23,059 |
22,727 |
||||||||||
|
NONINTEREST INCOME |
|||||||||||||
|
Service charges on deposit accounts |
1,083 |
1,229 |
1,003 |
||||||||||
|
Other fees and charges |
1,166 |
1,189 |
920 |
||||||||||
|
Mortgage banking activities |
21,318 |
15,489 |
10,587 |
||||||||||
|
Indirect lending activities |
5,979 |
3,847 |
4,676 |
||||||||||
|
SBA lending activities |
930 |
1,305 |
844 |
||||||||||
|
Bank owned life insurance |
492 |
304 |
301 |
||||||||||
|
Securities gains |
-- |
-- |
-- |
||||||||||
|
Other |
1,070 |
1,348 |
1,046 |
||||||||||
|
Total noninterest income |
32,038 |
24,711 |
19,377 |
||||||||||
|
NONINTEREST EXPENSE |
|||||||||||||
|
Salaries and employee benefits |
18,822 |
17,926 |
16,085 |
||||||||||
|
Commissions |
6,160 |
5,545 |
3,470 |
||||||||||
|
Occupancy |
3,482 |
3,508 |
2,603 |
||||||||||
|
Communication |
948 |
1,068 |
922 |
||||||||||
|
Other |
9,223 |
8,598 |
9,576 |
||||||||||
|
Total noninterest expense |
38,635 |
36,645 |
32,656 |
||||||||||
|
Income before income tax expense |
16,836 |
11,125 |
9,448 |
||||||||||
|
Income tax expense |
6,146 |
3,912 |
3,385 |
||||||||||
|
NET INCOME |
$ |
10,690 |
$ |
7,213 |
$ |
6,063 |
|||||||
|
EARNINGS PER SHARE: |
|||||||||||||
|
Basic earnings per share |
$ |
0.50 |
$ |
0.34 |
$ |
0.28 |
|||||||
|
Diluted earnings per share |
$ |
0.45 |
$ |
0.31 |
$ |
0.26 |
|||||||
|
Weighted average common shares outstanding-basic |
21,380 |
21,343 |
21,288 |
||||||||||
|
Weighted average common shares outstanding-diluted |
23,683 |
23,544 |
23,447 |
||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||
|
Commercial |
$ |
519,062 |
$ |
524,145 |
$ |
524,419 |
$ |
536,435 |
$ |
525,347 |
||||||||||
|
SBA |
138,198 |
134,766 |
143,302 |
136,946 |
138,331 |
|||||||||||||||
|
Total commercial and SBA loans |
657,260 |
658,911 |
667,721 |
673,381 |
663,678 |
|||||||||||||||
|
Construction loans |
134,456 |
123,994 |
108,823 |
113,873 |
101,443 |
|||||||||||||||
|
Indirect automobile |
1,251,044 |
1,219,232 |
1,087,710 |
997,117 |
925,101 |
|||||||||||||||
|
Installment |
12,209 |
13,372 |
15,647 |
15,892 |
15,932 |
|||||||||||||||
|
Total consumer loans |
1,263,253 |
1,232,604 |
1,103,357 |
1,013,009 |
941,033 |
|||||||||||||||
|
Residential mortgage |
180,424 |
158,348 |
119,292 |
93,453 |
68,546 |
|||||||||||||||
|
Home equity lines of credit |
82,188 |
79,449 |
74,610 |
74,898 |
73,392 |
|||||||||||||||
|
Total mortgage loans |
262,612 |
237,797 |
193,902 |
168,351 |
141,938 |
|||||||||||||||
|
Loans |
2,317,581 |
2,253,306 |
2,073,803 |
1,968,614 |
1,848,092 |
|||||||||||||||
|
Loans held-for-sale: |
||||||||||||||||||||
|
Residential mortgage |
241,974 |
181,424 |
161,775 |
191,666 |
112,195 |
|||||||||||||||
|
SBA |
13,543 |
12,511 |
17,667 |
8,053 |
8,355 |
|||||||||||||||
|
Indirect automobile |
150,000 |
175,000 |
145,000 |
140,000 |
60,000 |
|||||||||||||||
|
Total loans held-for-sale |
405,517 |
368,935 |
324,442 |
339,719 |
180,550 |
|||||||||||||||
|
Total loans |
$ |
2,723,098 |
$ |
2,622,241 |
$ |
2,398,245 |
$ |
2,308,333 |
$ |
2,028,642 |
||||||||||
|
Noncovered loans |
$ |
2,287,284 |
$ |
2,218,493 |
$ |
2,036,097 |
$ |
1,923,088 |
$ |
1,796,256 |
||||||||||
|
Covered loans |
30,297 |
34,813 |
37,706 |
45,526 |
51,836 |
|||||||||||||||
|
Loans held-for-sale |
405,517 |
368,935 |
324,442 |
339,719 |
180,550 |
|||||||||||||||
|
Total loans |
$ |
2,723,098 |
$ |
2,622,241 |
$ |
2,398,245 |
$ |
2,308,333 |
$ |
2,028,642 |
||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||
|
As of or for the Quarter Ended |
||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
March 31, |
|||||||||
|
Balance at beginning of period |
$ |
25,450 |
$ |
28,297 |
$ |
33,684 |
||||||
|
Net charge-offs/(recoveries): |
||||||||||||
|
Commercial and SBA |
815 |
2,239 |
364 |
|||||||||
|
Construction |
(76) |
(151) |
(1,680) |
|||||||||
|
Indirect automobile and installment loans |
872 |
899 |
743 |
|||||||||
|
Mortgage |
(1) |
(19) |
35 |
|||||||||
|
Covered |
19 |
(225) |
448 |
|||||||||
|
Acquired, noncovered |
(1) |
(1) |
(15) |
|||||||||
|
Total net charge-offs/(recoveries) |
1,628 |
2,742 |
(105) |
|||||||||
|
Provision for loan losses (1) |
108 |
556 |
(2,450) |
|||||||||
|
Decrease in FDIC loss share receivable |
(172) |
(661) |
(542) |
|||||||||
|
Balance at end of period |
$ |
23,758 |
$ |
25,450 |
$ |
30,797 |
||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.29 |
% |
0.50 |
% |
(0.02) |
% |
||||||
|
Average loans |
$ |
2,298,789 |
$ |
2,192,383 |
$ |
1,886,136 |
||||||
|
Allowance for loan losses as a percentage of loans |
1.03 |
% |
1.13 |
% |
1.67 |
% |
||||||
|
(1) Net of benefit attributable to FDIC loss share receivable |
||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | ||||||||||||||
|
NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans |
$ |
32,432 |
$ |
34,856 |
$ |
36,489 |
$ |
37,364 |
$ |
42,158 |
|||||||||
|
Loans past due 90 days or more and still accruing |
1,006 |
827 |
-- |
-- |
488 |
||||||||||||||
|
Repossessions |
1,002 |
1,183 |
1,210 |
1,068 |
1,398 |
||||||||||||||
|
Other real estate (ORE) |
19,988 |
22,564 |
26,999 |
26,930 |
24,547 |
||||||||||||||
|
Nonperforming assets |
$ |
54,428 |
$ |
59,430 |
$ |
64,698 |
$ |
65,362 |
$ |
68,591 |
|||||||||
|
NONPERFORMING ASSET RATIOS |
|||||||||||||||||||
|
Loans 30-89 days past due |
$ |
3,934 |
$ |
4,565 |
$ |
2,885 |
$ |
2,874 |
$ |
4,045 |
|||||||||
|
Loans 30-89 days past due to loans |
0.17 |
% |
0.20 |
% |
0.14 |
% |
0.15 |
% |
0.22 |
% | |||||||||
|
Loans past due 90 days or more and still accruing to loans |
0.04 |
% |
0.04 |
% |
-- |
% |
-- |
% |
0.03 |
% | |||||||||
|
Nonperforming assets to loans, ORE, and repossessions |
2.33 |
% |
2.61 |
% |
3.08 |
% |
3.27 |
% |
3.66 |
% | |||||||||
|
ASSET QUALITY RATIOS |
|||||||||||||||||||
|
Classified Asset Ratio (3) |
20.45 |
% |
21.49 |
% |
25.36 |
% |
24.88 |
% |
27.14 |
% | |||||||||
|
Nonperforming loans as a % of loans |
1.44 |
% |
1.58 |
% |
1.76 |
% |
1.90 |
% |
2.31 |
% | |||||||||
|
Nonperforming assets as a % of loans plus ORE |
1.43 |
% |
1.57 |
% |
1.74 |
% |
1.87 |
% |
2.28 |
% | |||||||||
|
ALL to nonperforming loans |
71.05 |
% |
67.66 |
% |
63.80 |
% |
59.97 |
% |
53.95 |
% | |||||||||
|
Net charge-offs/(recoveries), annualized to average loans |
0.29 |
% |
0.50 |
% |
0.40 |
% |
0.42 |
% |
(0.02) |
% | |||||||||
|
ALL as a % of loans |
1.03 |
% |
1.13 |
% |
1.36 |
% |
1.47 |
% |
1.67 |
% | |||||||||
|
CLASSIFIED ASSETS |
|||||||||||||||||||
|
Classified loans (1) |
$ |
52,684 |
$ |
53,415 |
$ |
61,161 |
$ |
57,880 |
$ |
63,993 |
|||||||||
|
ORE and repossessions |
14,508 |
17,218 |
21,287 |
21,633 |
21,279 |
||||||||||||||
|
Total classified assets (2) |
$ |
67,192 |
$ |
70,633 |
$ |
82,448 |
$ |
79,513 |
$ |
85,272 |
|||||||||
|
(1) Amount of SBA guarantee included |
$ |
5,802 |
$ |
5,271 |
$ |
7,590 |
$ |
6,462 |
$ |
8,506 |
|||||||||
|
(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 Quarter Ended |
|||||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||||||||
|
Average loans outstanding (1) |
$ |
1,389,570 |
$ |
1,329,306 |
$ |
1,204,314 |
$ |
1,075,657 |
$ |
1,032,592 |
|||||||||||||
|
Loans serviced for others |
$ |
1,025,569 |
$ |
902,823 |
$ |
863,931 |
$ |
701,120 |
$ |
657,082 |
|||||||||||||
|
Past due loans: |
|||||||||||||||||||||||
|
Amount 30+ days past due |
$ |
1,222 |
$ |
1,547 |
$ |
1,573 |
$ |
1,363 |
$ |
1,117 |
|||||||||||||
|
Number 30+ days past due |
132 |
143 |
136 |
125 |
109 |
||||||||||||||||||
|
30+ day performing delinquency rate (2) |
0.09 |
% |
0.11 |
% |
0.13 |
% |
0.12 |
% |
0.11 |
% |
|||||||||||||
|
Nonperforming loans |
$ |
778 |
$ |
715 |
$ |
795 |
$ |
743 |
$ |
772 |
|||||||||||||
|
Nonperforming loans as a percentage of period end loans (2) |
0.06 |
% |
0.05 |
% |
0.06 |
% |
0.07 |
% |
0.08 |
% |
|||||||||||||
|
Net charge-offs |
$ |
866 |
$ |
901 |
$ |
612 |
$ |
614 |
$ |
733 |
|||||||||||||
|
Net charge-off rate (3) |
0.36 |
% |
0.30 |
% |
0.23 |
% |
0.25 |
% |
0.31 |
% |
|||||||||||||
|
Number of vehicles repossessed during the period |
134 |
128 |
136 |
126 |
143 |
||||||||||||||||||
|
Average beacon score of portfolio |
755 |
753 |
751 |
745 |
752 |
||||||||||||||||||
|
Production by state: |
|||||||||||||||||||||||
|
Alabama |
$ |
22,056 |
$ |
26,780 |
$ |
27,845 |
$ |
28,530 |
$ |
22,155 |
|||||||||||||
|
Arkansas |
35,786 |
41,912 |
47,894 |
36,572 |
22,183 |
||||||||||||||||||
|
North Carolina |
21,809 |
25,059 |
29,781 |
24,069 |
18,980 |
||||||||||||||||||
|
South Carolina |
16,273 |
16,132 |
22,189 |
23,139 |
14,657 |
||||||||||||||||||
|
Florida |
96,688 |
102,465 |
128,729 |
110,940 |
76,829 |
||||||||||||||||||
|
Georgia |
60,402 |
69,288 |
72,423 |
54,592 |
45,154 |
||||||||||||||||||
|
Mississippi |
19,537 |
23,736 |
30,525 |
28,569 |
23,941 |
||||||||||||||||||
|
Tennessee |
19,479 |
22,880 |
28,684 |
22,196 |
15,746 |
||||||||||||||||||
|
Virginia |
16,919 |
18,590 |
20,903 |
16,017 |
11,458 |
||||||||||||||||||
|
Texas |
41,527 |
50,987 |
49,868 |
39,320 |
15,429 |
||||||||||||||||||
|
Louisiana |
21,042 |
13,531 |
12,597 |
2,595 |
-- |
||||||||||||||||||
|
Total production by state |
$ |
371,518 |
$ |
411,360 |
$ |
471,438 |
$ |
386,539 |
$ |
266,532 |
|||||||||||||
|
Loan sales |
$ |
219,784 |
$ |
121,973 |
$ |
244,556 |
$ |
118,344 |
$ |
195,027 |
|||||||||||||
|
Portfolio yield (1) |
2.88 |
% |
3.07 |
% |
3.10 |
% |
3.26 |
% |
3.38 |
% |
|||||||||||||
|
(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 |
||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES ANALYSIS OF MORTGAGE LENDING (UNAUDITED) | ||||||||||||||||||||||
|
For the Quarter Ended | ||||||||||||||||||||||
|
($ in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||
|
Average loans outstanding (1) |
$ |
337,122 |
$ |
300,652 |
$ |
286,407 |
$ |
229,292 |
$ |
170,675 |
||||||||||||
|
Loans serviced for others |
$ |
5,622,102 |
$ |
5,413,781 |
$ |
5,173,282 |
$ |
4,844,984 |
$ |
4,574,281 |
||||||||||||
|
% of loan production for purchases |
58.82 |
% |
74.93 |
% |
82.25 |
% |
86.18 |
% |
78.48 |
% | ||||||||||||
|
% of loan production for refinance loans |
41.18 |
% |
25.07 |
% |
17.75 |
% |
13.82 |
% |
21.52 |
% | ||||||||||||
|
Production by region: |
||||||||||||||||||||||
|
Georgia |
$ |
342,121 |
$ |
311,846 |
$ |
316,359 |
$ |
328,936 |
$ |
181,667 |
||||||||||||
|
Florida/Alabama |
51,590 |
42,485 |
31,642 |
26,383 |
20,816 |
|||||||||||||||||
|
Virginia/Maryland |
158,289 |
126,151 |
127,721 |
132,816 |
73,471 |
|||||||||||||||||
|
North and South Carolina (2) |
3,858 |
-- |
-- |
-- |
-- |
|||||||||||||||||
|
Total retail |
555,858 |
480,482 |
475,722 |
488,135 |
275,954 |
|||||||||||||||||
|
Wholesale |
57,125 |
34,961 |
60,393 |
73,252 |
44,862 |
|||||||||||||||||
|
Total production by region |
$ |
612,983 |
$ |
515,443 |
$ |
536,115 |
$ |
561,387 |
$ |
320,816 |
||||||||||||
|
Loan sales |
$ |
552,085 |
$ |
475,930 |
$ |
536,490 |
$ |
446,176 |
$ |
328,145 |
||||||||||||
|
Portfolio yield (1) |
3.79 |
% |
3.93 |
% |
4.10 |
% |
4.05 |
% |
4.21 |
% | ||||||||||||
|
INCOME FROM MORTGAGE BANKING ACTIVITIES (UNAUDITED) | ||||||||||||||||||||||
|
For the Quarter Ended | ||||||||||||||||||||||
|
(in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, | |||||||||||||||||
|
Marketing gain, net |
$ |
19,745 |
$ |
12,076 |
$ |
12,108 |
$ |
10,954 |
$ |
7,991 |
||||||||||||
|
Origination points and fees |
2,757 |
2,744 |
2,943 |
3,148 |
1,787 |
|||||||||||||||||
|
Loan servicing revenue |
3,646 |
3,473 |
3,211 |
2,998 |
3,005 |
|||||||||||||||||
|
MSR amortization and impairment adjustments |
(4,830) |
(2,804) |
(2,127) |
(3,530) |
(2,196) |
|||||||||||||||||
|
Total mortgage banking activities |
$ |
21,318 |
$ |
15,489 |
$ |
16,135 |
$ |
13,570 |
$ |
10,587 |
||||||||||||
|
Noncash items included in income from mortgage banking activities: |
||||||||||||||||||||||
|
Capitalized MSR, net |
$ |
4,429 |
$ |
3,333 |
$ |
4,062 |
$ |
3,693 |
$ |
2,170 |
||||||||||||
|
Valuation on MSR |
(2,469) |
(709) |
(156) |
(1,838) |
(619) |
|||||||||||||||||
|
Mark to market adjustments |
3,967 |
588 |
(1,747) |
1,609 |
1,362 |
|||||||||||||||||
|
Total noncash items |
$ |
5,927 |
$ |
3,212 |
$ |
2,159 |
$ |
3,464 |
$ |
2,913 |
||||||||||||
|
(1) Includes held-for-sale |
||||||||||||||||||||||
|
(2) Expanded into North and South Carolina in January 2015 |
||||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
|
For the Quarter Ended | |||||||||||||||||||||
|
March 31, 2015 |
March 31, 2014 | ||||||||||||||||||||
|
Average |
Income/ |
Yield/ |
Average |
Income/ |
Yield/ | ||||||||||||||||
|
($ in thousands) |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate | |||||||||||||||
|
Assets |
|||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||
|
Loans, net of unearned income (1) |
$ |
2,656,556 |
$ |
25,333 |
3.87 |
% |
$ |
2,070,909 |
$ |
21,836 |
4.28 |
% | |||||||||
|
Investment securities (1) |
164,456 |
1,236 |
3.05 |
% |
176,171 |
1,304 |
3.00 |
% | |||||||||||||
|
Federal funds sold and bank deposits |
37,815 |
12 |
0.13 |
% |
78,084 |
38 |
0.20 |
% | |||||||||||||
|
Total interest-earning assets |
2,858,827 |
26,581 |
3.77 |
% |
2,325,164 |
23,178 |
4.04 |
% | |||||||||||||
|
Noninterest-earning assets: |
|||||||||||||||||||||
|
Cash and due from banks |
15,311 |
17,508 |
|||||||||||||||||||
|
Allowance for loan losses |
(25,258) |
(33,869) |
|||||||||||||||||||
|
Premises and equipment, net |
60,979 |
48,479 |
|||||||||||||||||||
|
Other real estate |
22,219 |
28,798 |
|||||||||||||||||||
|
Other assets |
166,001 |
143,396 |
|||||||||||||||||||
|
Total assets |
$ |
3,098,079 |
$ |
2,529,476 |
|||||||||||||||||
|
Liabilities and shareholders' equity |
|||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||
|
Demand deposits |
$ |
812,833 |
$ |
453 |
0.23 |
% |
$ |
698,811 |
$ |
507 |
0.29 |
% | |||||||||
|
Savings deposits |
309,393 |
255 |
0.33 |
% |
308,819 |
296 |
0.39 |
% | |||||||||||||
|
Time deposits |
803,000 |
1,784 |
0.90 |
% |
675,034 |
1,685 |
1.01 |
% | |||||||||||||
|
Total interest-bearing deposits |
1,925,226 |
2,492 |
0.52 |
% |
1,682,664 |
2,488 |
0.60 |
% | |||||||||||||
|
Other borrowings |
229,374 |
177 |
0.31 |
% |
63,313 |
44 |
0.28 |
% | |||||||||||||
|
Subordinated debt |
46,393 |
276 |
2.41 |
% |
46,393 |
275 |
2.40 |
% | |||||||||||||
|
Total interest-bearing liabilities |
2,200,993 |
2,945 |
0.54 |
% |
1,792,370 |
2,807 |
0.64 |
% | |||||||||||||
|
Noninterest-bearing liabilities and shareholders' equity: |
|||||||||||||||||||||
|
Demand deposits |
605,762 |
478,033 |
|||||||||||||||||||
|
Other liabilities |
23,763 |
21,665 |
|||||||||||||||||||
|
Shareholders' equity |
267,561 |
237,408 |
|||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
3,098,079 |
$ |
2,529,476 |
|||||||||||||||||
|
Net interest income/spread |
$ |
23,636 |
3.23 |
% |
$ |
20,371 |
3.40 |
% | |||||||||||||
|
Net interest margin |
3.35 |
% |
3.55 |
% | |||||||||||||||||
|
(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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