Fidelity Southern Corporation Earns Record $12.5 Million In Second Quarter

Jul 16, 2015, 12:53 ET from Fidelity Southern Corporation

ATLANTA, July 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 and six months ended June 30, 2015.

KEY RESULTS

  • Net income of $12.5 million and $23.1 million, or $0.54 and $1.00 per diluted share, for the quarter and six months ended June 30
  • Total revenue was $64.2 million for the quarter, an increase of $5.7 million, or 9.7%, compared to the prior quarter, and $14.8 million, or 30.0%, year over year
  • Mortgage banking income was $24.6 million for the quarter, an increase of $3.3 million, or 15.5%, and $11.0 million, or 81.4%, year over year
  • Return on average assets of 1.55% and 1.48% for the quarter and six months ended June 30, 2015, respectively
  • Return of average equity of 17.97% and 17.11% for the quarter and six months ended June 30, 2015, respectively
  • Tangible book value of $12.70 per share increased by $1.04, or 8.92%, year over year
  • Loan portfolio increased by $162.3 million, or 6.0%, during the quarter and $577.1 million, or 25.0%, year over year, to $2.9 billion
  • Loan servicing portfolio grew by $391.7 million, or 5.7%, during the quarter and $1.5 billion, or 26.3%, year over year, to $7.3 billion
  • Total deposits increased by $413.8 million, or 18.6%, year over year, to $2.6 billion

Fidelity's Chairman, Jim Miller, said, "Mortgage and indirect are performing well.  We also intend to continue to build out our lending to businesses and have promoted Darren Davis to head the SBA department.   Also, both Georgia and Florida will add bankers for the C & I lending teams. We continue to evaluate acquisition opportunities to see if there is a financial and cultural benefit to be gained by all parties and will act when that is the case."

BALANCE SHEET

Total assets at June 30, 2015, grew to $3.4 billion, an increase of $169.6 million, or 5.3%, compared to March 31, 2015, and $637.3 million, or 23.3%, compared to June 30, 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 June 30, 2015, grew to $2.4 billion, an increase of $93.6 million, or 4.0%, compared to March 31, 2015, and $442.5 million, or 22.5%, compared to June 30, 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 $30.9 million and $284.9 million, or 2.5% and 28.6%, respectively, and mortgage loans increased by $35.4 million and $129.7 million, or 13.5% and 77.0%, respectively, compared to March 31, 2015 and June 30, 2014.

Construction loans increased by $12.3 million and $32.9 million, or 9.2% and 28.9%, respectively, compared to March 31, 2015 and June 30, 2014, primarily due to expansion into the Savannah, Orlando, and Birmingham markets in addition to organic growth in existing markets.

The following table summarizes average loans by category, excluding loans acquired in FDIC assisted transactions, for the periods presented.

For the Quarter Ended

($ in thousands)

June 30, 2015

March 31, 2015

June 30, 2014

Commercial

$

512,783

$

506,942

$

502,841

SBA

150,412

149,435

144,763

Construction

138,021

125,243

101,561

Indirect automobile

1,407,848

1,419,295

1,075,657

Installment

8,566

8,580

9,250

Residential mortgage

449,217

336,011

227,685

Home equity lines of credit

80,724

76,152

67,635

Total average loans (incl. HFS)

$

2,747,571

$

2,621,658

$

2,129,392

 

Deposits

Total deposits at June 30, 2015, of $2.6 billion were relatively flat compared to March 31, 2015, and increased $413.8 million, or 18.6%, compared to June 30, 2014.

The year over year net increase occurred primarily due to organic growth of $204.8 million, mainly in noninterest bearing deposits, which increased $60.4 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. These increases were partially offset by a decrease in savings deposits of $14.9 million, or 4.7%, compared to June 30, 2014.

Average core deposits, including noninterest-bearing demand deposits, grew by $67.3 million, or 3.9%, during the quarter and $251.8 million, or 16.3%, year over year, particularly in commercial accounts and assumption of deposits discussed above. Noninterest-bearing demand deposits increased to 24.8% of total average deposits for the quarter compared to 23.9% at March 31, 2015, and 24.4% at June 30, 2014.

Time deposits increased by $25.9 million, or 3.2%, during the quarter and $197.8 million, or 30.7%, 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 $60.2 million increase in brokered deposits generally used to fund loan growth. The remaining increase is due to Fidelity increasing marketing efforts on longer term time deposits in anticipation of future rate increases.

The following table summarizes average deposit composition and average rate paid for the periods presented.

For the Quarter Ended

June 30, 2015

March 31, 2015

June 30, 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

$

650.5

%

24.8

%

$

605.8

%

23.9

%

$

534.5

%

24.4

%

Interest-bearing demand deposits

843.2

0.24

%

32.1

%

812.8

0.25

%

32.1

%

694.1

0.27

%

31.6

%

Savings deposits

301.6

0.33

%

11.5

%

309.4

0.35

%

12.2

%

314.9

0.37

%

14.3

%

Time deposits

829.1

0.94

%

31.6

%

803.0

0.98

%

31.8

%

653.4

0.96

%

29.7

%

    Total average deposits

$

2,624.4

0.41

%

100.0

%

$

2,531.0

0.43

%

100.0

%

$

2,196.9

0.48

%

100.0

%

 

Borrowings

Other borrowings increased by $102.5 million, or 51.0%, during the quarter and $115.7 million, or 61.6%, year over year. The increase for both periods occurred primarily to fund growth in loans noted above.

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

INCOME STATEMENT

Interest Income

Interest income was $27.5 million and $54.0 million for the quarter and six months ended June 30, 2015, respectively, an increase of $1.5 million and $4.9 million, or 5.6% and 9.9%, respectively, as compared to the same periods in 2014. The increase was primarily due to a year over year increase in average loans of $592.0 million, or 27.8%, mainly in the indirect and mortgage portfolios, partially offset by a decrease in the yield on loans of 55 basis points, as new loans, on average, were originated at lower yields over the previous twelve months.

On a linked-quarter basis, interest income increased by $1.0 million, primarily due to a $121.6 million increase in average loans, partially offset by a decrease of 5 basis points in the yield on total loans.

Interest Expense

Interest expense was $3.5 million and $6.4 million for the quarter and six months ended June 30, 2015, an increase of $828,000 and $966,000, or 31.0% and 17.6%, respectively, as compared to the same periods in 2014. These increases occurred primarily due to an increase in average other borrowings of $131.1 million and $148.5 million for the quarter and six months ended June 30, 2015, compared to the same periods in 2014, used to fund growth in average loans.

On a linked-quarter basis, interest expense increased by $557,000, or 18.9%, primarily due to the issuance of $75.0 million in subordinated notes during May 2015.

Net Interest Margin

The net interest margin was 3.24% and 3.30% for the quarter and six months ended June 30, 2015, compared to 3.91% and 3.74% for the same periods in 2014. The decrease was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2015.

On a linked-quarter basis, the net interest margin decreased by 11 basis points, primarily due to a decrease of 5 basis points in the yield on total loans and an increase of 119 basis points in the cost of subordinated debt.

Noninterest Income

Noninterest income was $36.7 million and $68.7 million for the quarter and six months ended June 30, 2015, an increase of $13.4 million and $26.0 million, or 57.4% and 61.0%, respectively, as compared to the same periods 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 $11.0 million and $21.8 million for the quarter and year to date, respectively, as gains on mortgage loan sales were $6.1 million and $17.9 million higher, respectively, for the quarter and year to date. Fidelity took advantage of the nationwide refinance surge during the first quarter while continuing to grow the purchase money mortgage business year over year. Mortgage loan production for the quarter increased $227.0 million, or 40.4%, to $788.4 million while mortgage loan sales increased $219.6 million, or 49.2%, to $446.2 million year over year. Mortgage loan servicing revenue increased by $764,000 and $1.4 million to $3.8 million and $7.4 million for the quarter and year to date, respectively, as compared to the same periods in 2014, as the servicing portfolio grew to $5.9 billion at June 30, 2015.

Noninterest income from indirect lending activities was $5.0 million and $11.0 million for the quarter and six months ended June 30, 2015, an increase of $1.4 million and $2.7 million, respectively, as compared to the same periods in 2014. Gains on sales of indirect loans increased by $1.1 million and $1.8 million for the quarter and six months ended June 30, 2015, respectively, compared to the same periods in 2014. Indirect servicing fee income increased as well, with an increase of $559,000 and $1.1 million for the quarter and six months compared to the same periods in 2014, as the servicing portfolio grew to $1.1 billion at June 30, 2015.

On a linked-quarter basis, noninterest income increased by $4.7 million, or 14.5%, primarily attributable to an increase in income from mortgage banking activities of $3.3 million. This increase occurred primarily due to a favorable mortgage servicing rights impairment recovery of $5.1 million, offset by a decreased gain on sale of mortgage loans of $2.6 million. Decrease in gain on sale of mortgage loans primarily attributable to a $5.1 million decline in mark to market adjustments on mortgage loans held for sale, partially offset by an increased volume of sales during the quarter. Gain on sale of other real estate also increased by $1.4 million on a linked quarter basis, primarily due to favorable resolution on two properties sold during the quarter. See "Analysis of Mortgage Lending" tables below.

Noninterest Expense

Noninterest expense was $41.2 million and $79.8 million for the quarter and six months ended June 30, 2015, an increase of $7.4 million and $13.4 million, or 22.0% and 20.2%, respectively, as compared to the same periods in 2014.

Salaries and benefits expense increased due to the continued growth in employees and locations and the associated administrative support functions as the Company continues to grow. Quarterly salaries and benefits increased by $3.7 million, or 23.1%, year over year, while year to date salaries and benefits increased by $6.4 million, or 20.1%, year over year.

Commissions expense for the quarter and six months ended June 30, 2015 increased by $2.2 million and $4.9 million, or 38.9% and 53.7%, compared to the same periods in 2014. This increase corresponds to the growth in mortgage loan production and sales compared to the same periods in 2014.

Other noninterest expense for the quarter and six months ended June 30, 2015 increased by $1.3 million and $985,000, or 17.1% and 5.7%, compared to the same periods in 2014. This increase was primarily attributable to higher lending related expenses due to increase in mortgage and indirect loan production volume compared to the same periods in 2014.

On a linked-quarter basis, noninterest expense increased by $2.5 million, or 6.5%, primarily due to an $846,000 increase in salaries and benefits and a $1.6 million increase in commissions.

ABOUT FIDELITY SOUTHERN CORPORATION

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

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

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(UNAUDITED)

As of or for the Quarter Ended

As of or for the Six Months Ended

($ in thousands, except per share data)

June 30, 2015

March 31, 2015

June 30, 2014

June 30, 2015

June 30, 2014

INCOME STATEMENT DATA:

Interest income

$

27,516

$

26,486

$

26,065

$

54,002

$

49,143

Interest expense

3,502

2,945

2,674

6,447

5,481

Net interest income

24,014

23,541

23,391

47,555

43,662

Provision for loan losses

(182)

108

566

(74)

(1,884)

Noninterest income

36,695

32,038

23,318

68,733

42,701

Noninterest expense

41,165

38,635

33,743

79,800

66,399

Net income

12,451

10,690

7,958

23,141

14,021

PERFORMANCE:

Earnings per common share - basic

$

0.58

$

0.50

$

0.37

$

1.08

$

0.66

Earnings per common share - diluted

0.54

0.45

0.34

1.00

0.60

Book value per common share

$

12.90

$

12.85

$

11.76

$

12.90

$

11.76

Tangible book value per common share

12.70

12.64

11.66

12.70

11.66

Cash dividends paid per common share

$

0.10

$

0.09

$

0.08

$

0.19

$

0.12

Return on average assets

1.55

%

1.40

%

1.22

%

1.48

%

1.10

%

Return on average shareholders' equity

17.97

%

16.20

%

13.09

%

17.11

%

11.75

%

Net interest margin

3.24

%

3.35

%

3.91

%

3.30

%

3.74

%

END OF PERIOD BALANCE SHEET SUMMARY:

Total assets

$

3,374,938

$

3,205,293

$

2,737,639

$

3,374,938

$

2,737,639

Earning assets

3,118,065

2,951,135

2,532,365

3,118,065

2,539,620

Loans, excluding Loans Held-for-Sale

2,411,143

2,317,581

1,968,614

2,411,143

1,968,614

Total loans

2,885,410

2,723,098

2,308,333

2,885,410

2,308,333

Total deposits

2,639,248

2,652,896

2,225,419

2,639,248

2,225,419

Shareholders' equity

285,946

274,898

250,775

285,946

250,775

Assets serviced for others

7,292,561

6,900,870

5,775,309

7,292,561

5,775,309

DAILY AVERAGE BALANCE SHEET SUMMARY:

Total assets

$

3,228,455

$

3,098,079

$

2,608,639

$

3,163,834

$

2,569,328

Earning assets

2,980,741

2,858,827

2,406,150

2,920,121

2,364,153

Loans, excluding Loans Held-for-Sale

2,361,146

2,298,789

1,932,591

2,330,140

1,909,492

Total loans

2,778,117

2,656,556

2,179,846

2,717,672

2,125,678

Total deposits

2,624,412

2,530,988

2,196,949

2,577,958

2,178,922

Shareholders' equity

277,961

267,561

243,905

272,790

240,674

Assets serviced for others

7,104,630

6,742,214

5,583,392

6,924,423

5,422,870

ASSET QUALITY RATIOS:

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

(0.03)

%

0.29

%

0.42

%

0.13

%

0.20

%

Allowance to period-end loans

0.97

%

1.03

%

1.47

%

0.97

%

1.47

%

Nonperforming assets to total loans, ORE and repossessions

2.01

%

2.33

%

3.27

%

2.01

%

3.27

%

Allowance to nonperforming loans, ORE and repossessions

0.48x

0.44x

0.44x

0.48x

0.44x

SELECTED RATIOS:

Loans to total deposits

91.36

%

87.36

%

88.46

%

91.36

%

88.46

%

Average total loans to average earning assets

93.20

%

92.92

%

90.40

%

93.07

%

89.91

%

Noninterest income to total revenue

57.15

%

54.74

%

47.22

%

56.00

%

46.49

%

Leverage ratio

9.77

%

9.89

%

11.14

%

9.77

%

11.14

%

Common equity tier 1 capital

8.96

%

9.12

%

N/A

8.96

%

N/A

Tier 1 risk-based capital

10.46

%

10.69

%

12.12

%

10.46

%

12.12

%

Total risk-based capital

13.71

%

11.50

%

13.34

%

13.71

%

13.34

%

Average equity to average assets

8.61

%

8.64

%

9.35

%

8.62

%

9.37

%

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

($ in thousands)

June 30, 2015

March 31, 2015

June 30, 2014

ASSETS

Cash and cash equivalents

$

80,716

$

85,615

$

55,139

Investment securities available-for-sale

140,878

139,727

164,190

Investment securities held-to-maturity

11,484

10,316

7,851

Loans held-for-sale

474,267

405,517

339,719

Loans

2,411,143

2,317,581

1,968,614

Allowance for loan losses

(23,425)

(23,758)

(28,912)

Loans, net of allowance for loan losses

2,387,718

2,293,823

1,939,702

Premises and equipment, net

65,485

60,710

50,419

Other real estate, net

16,070

19,988

26,930

Bank owned life insurance

65,511

65,013

33,995

Servicing rights

77,614

68,146

57,526

Other assets

55,195

56,438

62,168

Total assets

$

3,374,938

$

3,205,293

$

2,737,639

LIABILITIES

Deposits

Noninterest-bearing demand deposits

$

646,340

$

706,679

$

560,932

Interest-bearing deposits

  Demand and money market

850,314

825,244

704,778

  Savings

299,905

304,135

314,795

  Time deposits

842,689

816,838

644,914

    Total deposits

2,639,248

2,652,896

2,225,419

Other borrowings

303,521

201,018

187,815

Subordinated debt

120,277

46,310

46,290

Other liabilities

25,946

30,171

27,340

Total liabilities

3,088,992

2,930,395

2,486,864

SHAREHOLDERS' EQUITY

Preferred stock

Common stock

164,835

163,340

160,586

Accumulated other comprehensive income, net

2,472

3,229

2,804

Retained earnings

118,639

108,329

87,385

Total shareholders' equity

285,946

274,898

250,775

Total liabilities and shareholders' equity

$

3,374,938

$

3,205,293

$

2,737,639

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

For the Quarter Ended

For the Six Months Ended

($ in thousands, except per share data)

June 30, 2015

March 31, 2015

June 30, 2014

June 30, 2015

June 30, 2014

INTEREST INCOME

Loans, including fees

$

26,382

$

25,289

$

24,801

$

51,671

$

46,592

Investment securities

1,120

1,185

1,244

2,305

2,493

Federal funds sold and bank deposits

14

12

20

26

58

Total interest income

27,516

26,486

26,065

54,002

49,143

INTEREST EXPENSE

Deposits

2,683

2,492

2,328

5,175

4,816

Other borrowings

161

177

69

338

113

Subordinated debt

658

276

277

934

552

Total interest expense

3,502

2,945

2,674

6,447

5,481

Net interest income

24,014

23,541

23,391

47,555

43,662

Provision for loan losses

(182)

108

566

(74)

(1,884)

Net interest income after provision for loan losses

24,196

23,433

22,825

47,629

45,546

NONINTEREST INCOME

Service charges on deposit accounts

1,195

1,083

1,059

2,278

2,068

Other fees and charges

1,274

1,166

1,100

2,440

2,020

Mortgage banking activities

24,617

21,318

13,570

45,935

24,157

Indirect lending activities

5,031

5,979

3,631

11,010

8,307

SBA lending activities

1,364

930

1,359

2,295

2,203

Bank owned life insurance

500

492

755

992

1,056

Securities gains

Other

2,714

1,070

1,844

3,783

2,890

Total noninterest income

36,695

32,038

23,318

68,733

42,701

NONINTEREST EXPENSE

Salaries and employee benefits

19,668

18,822

15,973

38,490

32,058

Commissions

7,794

6,160

5,610

13,954

9,080

Occupancy

3,454

3,482

3,407

6,936

6,010

Communication

1,102

948

943

2,050

1,866

Other

9,147

9,223

7,810

18,370

17,385

Total noninterest expense

41,165

38,635

33,743

79,800

66,399

Income before income tax expense

19,726

16,836

12,400

36,562

21,848

Income tax expense

7,275

6,146

4,442

13,421

7,827

NET INCOME

$

12,451

$

10,690

$

7,958

$

23,141

$

14,021

EARNINGS PER SHARE:

Basic earnings per share

$

0.58

$

0.50

$

0.37

$

1.08

$

0.66

Diluted earnings per share

$

0.54

$

0.45

$

0.34

$

1.00

$

0.60

Weighted average common shares outstanding-basic

21,456

21,380

21,301

21,418

21,274

Weighted average common shares outstanding-diluted

23,082

23,683

23,428

23,034

23,417

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)

($ in thousands)

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

Commercial

$

533,853

$

519,062

$

524,145

$

524,419

$

536,435

SBA

138,819

138,198

134,766

143,302

136,946

      Total commercial and SBA loans

672,672

657,260

658,911

667,721

673,381

Construction loans

146,778

134,456

123,994

108,823

113,873

Indirect automobile

1,281,978

1,251,044

1,219,232

1,087,710

997,117

Installment

11,661

12,209

13,372

15,647

15,892

      Total consumer loans

1,293,639

1,263,253

1,232,604

1,103,357

1,013,009

Residential mortgage

210,777

180,424

158,348

119,292

93,453

Home equity lines of credit

87,277

82,188

79,449

74,610

74,898

 Total mortgage loans

298,054

262,612

237,797

193,902

168,351

 Loans

2,411,143

2,317,581

2,253,306

2,073,803

1,968,614

Loans held-for-sale:

Residential mortgage

310,792

241,974

181,424

161,775

191,666

SBA

13,475

13,543

12,511

17,667

8,053

Indirect automobile

150,000

150,000

175,000

145,000

140,000

     Total loans held-for-sale

474,267

405,517

368,935

324,442

339,719

          Total loans

$

2,885,410

$

2,723,098

$

2,622,241

$

2,398,245

$

2,308,333

Noncovered loans

$

2,385,489

$

2,287,284

$

2,218,493

$

2,036,097

$

1,923,088

Covered loans

25,654

30,297

34,813

37,706

45,526

Loans held-for-sale

474,267

405,517

368,935

324,442

339,719

          Total loans

$

2,885,410

$

2,723,098

$

2,622,241

$

2,398,245

$

2,308,333

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)

As of or for the Quarter Ended

($ in thousands)

June 30, 2015

March 31, 2015

June 30, 2014

Balance at beginning of period

$

23,758

$

25,450

$

30,797

Net charge-offs/(recoveries):

Commercial and SBA

(10)

815

1,467

Construction

(291)

(76)

14

Indirect automobile and installment loans

494

872

623

Mortgage

(3)

(1)

83

Covered

(298)

19

(161)

Acquired, noncovered

(52)

(1)

(1)

Total net charge-offs/(recoveries)

(160)

1,628

2,025

Provision for loan losses (1)

(183)

108

566

Decrease in FDIC loss share receivable

(310)

(172)

(426)

Balance at end of period

$

23,425

$

23,758

$

28,912

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

(0.03)

%

0.29

%

0.42

%

Average loans

$

2,361,146

$

2,298,789

$

1,932,591

Allowance for loan losses as a percentage of loans

0.97

%

1.03

%

1.47

%

(1) Net of benefit attributable to FDIC loss share receivable

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)

($ in thousands)

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

NONPERFORMING ASSETS

Nonaccrual loans

$

30,756

$

32,432

$

34,856

$

36,489

$

37,364

Loans past due 90 days or more and still accruing

836

1,006

827

Repossessions

1,041

1,002

1,183

1,210

1,068

Other real estate (ORE)

16,070

19,988

22,564

26,999

26,930

Nonperforming assets

$

48,703

$

54,428

$

59,430

$

64,698

$

65,362

NONPERFORMING ASSET RATIOS

Loans 30-89 days past due

$

3,653

$

3,934

$

4,565

$

2,885

$

2,874

Loans 30-89 days past due to loans

0.15

%

0.17

%

0.20

%

0.14

%

0.15

%

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

0.03

%

0.04

%

0.04

%

%

%

Nonperforming assets to loans, ORE, and repossessions

2.01

%

2.33

%

2.61

%

3.08

%

3.27

%

ASSET QUALITY RATIOS

Classified Asset Ratio (3)

18.59

%

20.45

%

21.49

%

25.36

%

24.88

%

Nonperforming loans as a % of loans

1.31

%

1.44

%

1.58

%

1.76

%

1.90

%

ALL to nonperforming loans

74.15

%

71.05

%

71.32

%

77.55

%

77.38

%

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

(0.03)

%

0.29

%

0.50

%

0.40

%

0.42

%

ALL as a % of loans

0.97

%

1.03

%

1.13

%

1.36

%

1.47

%

CLASSIFIED ASSETS

Classified loans (1)

$

49,561

$

52,684

$

53,415

$

61,161

$

57,880

ORE and repossessions

13,209

14,508

17,218

21,287

21,633

Total classified assets (2)

$

62,770

$

67,192

$

70,633

$

82,448

$

79,513

        (1) Amount of SBA guarantee included

$

5,256

$

5,802

$

5,271

$

7,590

$

6,462

       (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)

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

Average loans outstanding (1)

$

1,407,848

$

1,389,570

$

1,329,306

$

1,204,314

$

1,075,657

Loans serviced for others

$

1,091,644

$

1,025,569

$

902,823

$

863,931

$

701,120

Past due loans:

Amount 30+ days past due

$

1,098

$

1,222

$

1,547

$

1,573

$

1,363

Number 30+ days past due

128

132

143

136

125

30+ day performing delinquency rate (2)

0.08

%

0.09

%

0.11

%

0.13

%

0.12

%

Nonperforming loans

$

527

$

778

$

715

$

795

$

743

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

0.04

%

0.06

%

0.05

%

0.06

%

0.07

%

Net charge-offs

$

495

$

866

$

901

$

612

$

614

Net charge-off rate (3)

0.16

%

0.36

%

0.30

%

0.23

%

0.25

%

Number of vehicles repossessed during the period

106

134

128

136

126

Average beacon score of portfolio

755

755

753

751

745

Production by state:

Alabama

$

18,831

$

22,056

$

26,780

$

27,845

$

28,530

Arkansas

39,174

35,786

41,912

47,894

36,572

North Carolina

20,536

21,809

25,059

29,781

24,069

South Carolina

16,021

16,273

16,132

22,189

23,139

Florida

91,725

96,688

102,465

128,729

110,940

Georgia

52,735

60,402

69,288

72,423

54,592

Mississippi

21,281

19,537

23,736

30,525

28,569

Tennessee

19,295

19,479

22,880

28,684

22,196

Virginia

16,349

16,919

18,590

20,903

16,017

Texas

35,739

41,527

50,987

49,868

39,320

Louisiana

24,095

21,042

13,531

12,597

2,595

Total production by state

$

355,781

$

371,518

$

411,360

$

471,438

$

386,539

Loan sales

$

177,820

$

219,784

$

121,973

$

244,556

$

118,344

Portfolio yield (1)

2.79

%

2.88

%

3.07

%

3.10

%

3.26

%

(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)

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

Average loans outstanding (1)

$

449,097

$

337,122

$

300,652

$

286,407

$

227,685

Loans serviced for others

$

5,942,063

$

5,622,102

$

5,413,781

$

5,173,282

$

4,844,984

% of loan production for purchases

73.95

%

58.82

%

74.93

%

82.25

%

86.18

%

% of loan production for refinance loans

26.05

%

41.18

%

25.07

%

17.75

%

13.82

%

Production by region:

Georgia

$

468,795

$

342,121

$

311,846

$

316,359

$

328,936

Florida/Alabama

58,607

51,590

42,485

31,642

26,383

Virginia/Maryland

182,850

158,289

126,151

127,721

132,816

North and South Carolina (2)

8,002

3,858

Total retail

718,254

555,858

480,482

475,722

488,135

Wholesale

70,169

57,125

34,961

60,393

73,252

Total production by region

$

788,423

$

612,983

$

515,443

$

536,115

$

561,387

Loan sales

$

665,738

$

552,085

$

475,930

$

536,490

$

446,176

Portfolio yield (1)

3.52

%

3.79

%

3.93

%

4.10

%

4.05

%

INCOME FROM MORTGAGE BANKING ACTIVITIES

(UNAUDITED)

For the Quarter Ended

(in thousands)

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

Marketing gain, net

$

17,099

$

19,746

$

12,076

$

12,108

$

10,954

Origination points and fees

3,726

2,757

2,744

2,943

3,148

Loan servicing revenue

3,762

3,646

3,473

3,211

2,998

MSR amortization and impairment adjustments

30

(4,830)

(2,804)

(2,127)

(3,530)

Total mortgage banking activities

$

24,617

$

21,319

$

15,489

$

16,135

$

13,570

Noncash items included in income from mortgage banking activities:

Capitalized MSR, net

$

5,829

$

4,429

$

3,333

$

4,062

$

3,693

Valuation on MSR

2,611

(2,469)

(709)

(156)

(1,838)

Mark to market adjustments

(1,098)

3,967

588

(1,747)

1,609

   Total noncash items

$

7,342

$

5,927

$

3,212

$

2,159

$

3,464

(1) Includes held-for-sale

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

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)

For the Quarter Ended

June 30, 2015

June 30, 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) 

$

2,778,117

$

26,428

3.82

%

$

2,179,846

$

24,841

4.57

%

Investment securities (1) 

159,734

1,165

2.93

%

177,508

1,298

2.93

%

Federal funds sold and bank deposits

42,890

14

0.13

%

48,796

20

0.16

%

Total interest-earning assets

2,980,741

27,607

3.71

%

2,406,150

26,159

4.36

%

Noninterest-earning assets:

Cash and due from banks

14,577

13,657

Allowance for loan losses

(23,774)

(30,767)

Premises and equipment, net

61,821

48,767

Other real estate

18,342

26,133

Other assets

176,748

144,699

Total assets

$

3,228,455

$

2,608,639

Liabilities and shareholders' equity

Interest-bearing liabilities:

Demand deposits

$

843,226

$

495

0.24

%

$

694,144

$

466

0.27

%

Savings deposits

301,599

247

0.33

%

314,890

294

0.37

%

Time deposits

829,120

1,941

0.94

%

653,423

1,568

0.96

%

Total interest-bearing deposits

1,973,945

2,683

0.55

%

1,662,457

2,328

0.56

%

Other borrowings

224,429

161

0.29

%

93,374

69

0.30

%

Subordinated debt

73,179

658

3.61

%

46,288

277

2.40

%

Total interest-bearing liabilities

2,271,553

3,502

0.62

%

1,802,119

2,674

0.60

%

Noninterest-bearing liabilities and shareholders' equity:

Demand deposits

650,467

534,492

Other liabilities

28,474

28,124

Shareholders' equity

277,961

243,904

Total liabilities and shareholders' equity

$

3,228,455

$

2,608,639

Net interest income/spread

$

24,105

3.09

%

$

23,485

3.76

%

Net interest margin

3.24

%

3.91

%

(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 Six Months Ended

June 30, 2015

June 30, 2014

($ in thousands)

Average

Balance

Income/

Expense

Yield/

Rate

Average

Balance

Income/

Expense

Yield/

Rate

Assets

Interest-earning assets:

Loans, net of unearned income(1)

$

2,717,672

$

51,761

3.84

%

$

2,125,678

$

46,671

4.39

%

Investment securities(1)

162,082

2,401

2.99

%

176,843

2,603

2.94

%

Fed funds sold and interest-bearing deposits

40,367

26

0.13

%

63,359

58

0.18

%

Total interest-earning assets

2,920,121

54,188

3.74

%

2,365,880

49,332

4.17

%

Noninterest-earning assets:

Cash and due from banks

14,942

15,571

Allowance for loan losses

(24,512)

(32,309)

Premises and equipment, net

61,402

48,624

Other real estate

20,270

27,458

Other assets

171,361

143,995

Total assets

$

3,163,584

$

2,569,219

Liabilities and shareholders' equity

Interest-bearing liabilities:

Demand deposits

$

828,113

$

947

0.23

%

$

696,464

$

973

0.28

%

Savings deposits

305,475

502

0.33

%

311,871

589

0.38

%

Time deposits

816,132

3,726

0.92

%

664,169

3,254

0.98

%

Total interest-bearing deposits

1,949,720

5,175

0.54

%

1,672,504

4,816

0.58

%

Other borrowings

226,888

338

0.30

%

78,427

113

0.29

%

Subordinated debt

59,817

934

3.15

%

46,284

552

2.39

%

Total interest-bearing liabilities

2,236,425

6,447

0.58

%

1,797,215

5,481

0.61

%

Noninterest-bearing liabilities and shareholders' equity:

Demand deposits

628,238

506,418

Other liabilities

26,131

24,912

Shareholders' equity

272,790

240,674

Total liabilities and shareholders' equity

$

3,163,584

$

2,569,219

Net interest income/spread

$

47,741

3.16

%

$

43,851

3.56

%

Net interest margin

3.30

%

3.74

%

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

 

Contacts:

Martha Fleming, Steve Brolly

Fidelity Southern Corporation (404) 240-1504

 

SOURCE Fidelity Southern Corporation



RELATED LINKS

http://www.fidelitysouthern.com