Fidelity Southern Corporation Reports Earnings For Second Quarter Of $9.4 Million
ATLANTA, July 19, 2018 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported net income of $9.4 million, or $0.34 per diluted share, for the second quarter of 2018, compared with $11.8 million, or $0.43 per diluted share, for the first quarter of 2018, and with $8.9 million or $0.33 per diluted share for the second quarter of 2017. For the year to date ended June 30, 2018, the Company reported net income of $21.2 million, or $0.78 per diluted share, compared with $19.4 million, or $0.73 per diluted share, for the same period in 2017.
Fidelity's Chairman, Jim Miller, said, "Our quarterly results reflect the ongoing strategy of growing our top-line revenue, continued growth in low-cost deposits, and enhancing our core infrastructure. It also became very apparent during the quarter that the market pressures in indirect auto required us to exit all remaining states outside of our existing branch footprint in Georgia and Florida. We remain committed to the indirect auto business as we have generated significant shareholder value from this line of business over the past 25 years."
President Palmer Proctor added, "We are pleased with the continued momentum of growth from our commercial lines of business and growing higher yielding assets. This momentum has also been a key factor in adding new commercial services and deposits. Our investments in SBA and mortgage have also contributed to increased production in a rising rate environment. With the recent change in indirect auto, we anticipate a reduction of approximately 5% per quarter in indirect auto balances that will optimize liquidity and capital, decrease costs, and better position our balance sheet for future growth."
BALANCE SHEET
Total assets grew by $80.7 million, or 1.7%, during the quarter, to $4.9 billion at June 30, 2018. Loan growth totaled $98.0 million, primarily driven by commercial and mortgage loans. Investments also increased by $23.2 million and servicing rights increased by $6.2 million. The Bank has increased the investment securities available for sale portfolio as part of its strategy to carry higher yielding assets, reposition the balance sheet, and reduce its reliance on "gain on sale" income. Cash balances decreased by $42.9 million, from a decrease in fed funds sold as funds were placed into higher yielding investments. Other assets decreased by $4.2 million, of which $4.5 million was a decrease in FHLB stock, as FHLB borrowings were reduced over the quarter.
Asset growth for the quarter was funded by $101.9 million in core deposit growth and a $67.3 million increase in time deposits. Due to the strong deposit growth, short term borrowings were decreased by $99.9 million.
Loans
Total loans, including loans held for sale, increased during the quarter by $98.0 million, or 2.4%, to $4.2 billion at June 30, 2018.This increase was driven by increases of $47.4 million in commercial and SBA and $89.7 million in mortgage. The commercial loan production momentum that began in the fourth quarter of 2017 continues to be strong while we implement strategies to grow our commercial bank. Partially offsetting these increases was a decrease of $45.8 million in indirect loans, which included $25.0 million of indirect loan portfolio held for sale that reflects lower expected sales in the third and fourth quarters to align our indirect auto operating model to current market conditions. Applications are no longer accepted in Texas, Oklahoma and Arkansas, Louisiana, Virginia, North Carolina, South Carolina, Alabama, Mississippi, and Tennessee. As a result, production of indirect auto loans decreased by $74.9 million compared to the previous quarter. Fidelity will continue to serve the needs of our existing auto loan customers in all states, and will remain active in Georgia and Florida.
Asset Quality
Asset quality remained strong as nonperforming assets, excluding the guaranteed portion of government loans ("adjusted NPA's") and acquired loans, decreased during the quarter. Adjusted NPA's, a non-GAAP measure, decreased by $4.5 million during the quarter. The decrease was mainly due to decreases in nonaccrual loans, repossessions and real estate owned. Credit quality trend performance remains consistent and strong as net charge-offs were 0.17% of average loans for the quarter.
Fair Value Adjustments
Loan servicing rights increased by $6.2 million, or 5.1%, during the quarter, to $125.7 million at June 30, 2018, compared to $119.6 million at March 31, 2018. Mortgage servicing rights ("MSRs"), the primary component of loan servicing rights, contributed the majority of the change, increasing by 6.3%, to $114.8 million at June 30, 2018. MSRs increased as mortgage loans sold with servicing retained increased by $250.2 million, or 58.0%, from the previous quarter, as a result of seasonally high production. The current estimated fair market value of MSRs was $121.1 million at June 30, 2018.
At June 30, 2018, fair value adjustments recorded on the balance sheet for loans held for sale, interest rate lock commitments ("IRLCs"), and hedge items were $14.8 million, a $2.1 million, or 16.6% increase, from March 31, 2018. The gross pipeline of interest rate lock commitments was slightly lower at quarter end due to inventory, interest rates, and market competition.
Deposits
Core deposit growth was strong for the quarter as demand and money market deposits grew by $101.9 million, or 3.4%, to $3.1 billion. Money market account promotions in Georgia and Florida and new deposit accounts from commercial loan relationships contributed to the growth. Time deposits also increased by $67.3 million during the quarter, due to an increase in brokered deposits of $69.5 million, resulting in a total increase in deposits of $169.2 million, or 4.3%.
INCOME STATEMENT
Net Income
Net income was $9.4 million, or $2.4 million less than the previous quarter, as net interest income increased by $1.7 million and noninterest income remained relatively flat as the MSRs impairment recovery was $3.9 million lower than the previous quarter. Noninterest expense increased by $4.1 million as a 48.2% increase in mortgage loan production drove higher mortgage commissions.
Net income was $498,000 higher compared to the same quarter a year ago.
Interest Income
Interest income of $44.7 million was higher by $3.2 million, compared to the previous quarter. An increase in average loans of $245.0 million and average investment securities of $19.4 million drove higher interest income, while the yield on total average interest-bearing assets increased 2 basis points from the previous quarter.
As compared to the same period in the prior year, interest income increased by $5.2 million as average loans increased by $486.3 million and the yield on total average interest-bearing assets increased by 20 basis points, as market interest rates increased year over year.
Interest Expense
Interest expense of $8.3 million increased by $1.5 million for the quarter due to a 5 basis point increase in total interest-bearing deposits. The yield paid on short-term borrowings increased 27 basis points as average FHLB borrowings increased by $159.7 million during the quarter. FHLB borrowings were reduced by quarter end.
As compared to the same period in the prior year, interest expense increased by $2.4 million. Growth in average deposits and borrowings balances, as well as rising market rates, drove the increase.
Net Interest Margin
The net interest margin was 3.22% for the quarter compared to 3.29% in the previous quarter, a decrease of 7 basis points. Loan coupon yields, excluding fees, SBA discount accretion, and accretable yields, increased faster than deposit costs during the quarter. The increase was offset by higher usage of short term borrowings to help fund loan growth during the quarter.
The yield on total interest bearing liabilities increased by 12 basis points while the yield on average earning assets increased by 2 basis points from 3.93% to 3.95%. Average loans increased by $245.0 million while the yield remained flat at 4.07% for both periods. The loan coupon yields increased by 7 basis points which was offset by a decrease in accretable loan-related income of $878,000 during the quarter which caused the overall loan yield to remain flat.
Average interest-bearing liabilities increased by $195.4 million, as average borrowings grew by $159.7 million during the quarter to help fund loan growth. Average interest-bearing deposits also increased by $35.7 million for the quarter.
As compared to the same period a year ago, the net interest margin for the quarter increased by 2 basis points to 3.22% from 3.20%, primarily due to a 20 basis point increase in the yield on total average interest-earning assets of $4.5 billion, offset by an increase of 27 basis points in the yield on total average interest-bearing liabilities of $3.3 billion. Average earning assets increased by $299.1 million, primarily due to an increase in average loans over the year. Average interest-bearing liabilities increased by $126.0 million, primarily driven by an increase in average borrowings of $151.9 million, offset by a decrease in average interest-bearing deposits of $26.0 million.
Noninterest Income
Noninterest income remained flat on a linked-quarter basis. Gross mortgage revenue increased by $4.6 million during the quarter, offset by a decrease of $3.9 million in the MSRs impairment recovery for the quarter. While mortgage production increased by $295.4 million during the quarter, the gain on sale margins narrowed due to competitive pressures. Income from indirect lending activities decreased by $878,000, as indirect loans sales decreased by $56.7 million. Income from SBA lending activities remained flat on a linked-quarter basis due to a higher concentration of construction loan production that are sold when fully funded. The SBA loan pipeline increased by approximately 43% on a linked quarter-basis.
Compared to the same period a year ago, noninterest income for the quarter of $37.0 million increased by $1.9 million, or 5.5%, primarily due to an increase in mortgage banking income of $2.4 million, an increase in SBA lending income of $536,000, and an increase of $334,000 in trust and wealth management income, offset by a decrease in income from indirect lending activities of $2.4 million, due to a decrease in loan sales over the year as investor demand declined.
Noninterest Expense
On a linked-quarter basis, total noninterest expense increased by $4.1 million due to an increase in commissions expense of $3.7 million from higher mortgage loan originations and $654,000 in salaries and employee benefits expense, offset by decreases in all other noninterest expense categories. The increase in salaries and benefits resulted from an increase in headcount from mortgage and retail delivery and branches.
Compared to the second quarter of 2017, noninterest expense of $58.9 million increased by $4.3 million. Salaries, commissions and employee benefits expense increased by $4.2 million due primarily to an increase in headcount of 42, primarily in the mortgage and retail delivery and branches, as well as higher cost of benefits.
Income Taxes
On a linked-quarter basis, income tax expense decreased by $341,000, primarily due to the decrease in pre-tax income for the quarter.
Compared to the second quarter of 2017, income tax expense decreased by $1.7 million as the effective tax rate decreased from 34.1% to 23.7% primarily the result of the Tax Cuts and Jobs Act enacted on December 22, 2017 which included, among other things, a reduction in the federal corporate income tax rate from 35% to 21% from the beginning of the tax year 2018 going forward.
OTHER NEWS
On June 27, 2018, the Bank entered into an agreement with the Federal Deposit Insurance Corporation (the "FDIC") to terminate the loss share agreements entered into with the FDIC. Fidelity made a payment of approximately $632,000 to the FDIC as consideration for the early termination of the agreements. The Bank entered into the loss share agreements in 2011 and 2012 in connection with the Bank's acquisition of substantially all of the assets and assumption of substantially all of the deposits and certain liabilities of two failed banks in FDIC-assisted transactions.
On June 29, 2018, Fidelity signed a letter of intent with a third party for the sale of certain residential mortgage servicing rights on a portfolio with a total principal balance of $1.18 billion, or approximately 12.5% percent of Fidelity's total residential servicing portfolio as of the end of second quarter 2018. This sale will help optimize and increase regulatory capital while reducing future amortization expense and impairment risk of the MSRs asset. The sale is anticipated to close by the end of the third quarter of 2018.
On July 9, 2018, Fidelity hired Ross Creasy as the Chief Information Officer ("CIO") to lead the Company's information technology efforts. Mr. Creasy recently spent over two years with E-Trade and the prior 15 years with Capital One. The CIO is a new position for the Company and was added to align with its strategic initiative of improving our technology and infrastructure.
On July 12, 2018, Fidelity opened a new branch in Sugar Hill, Georgia which brings the total number of retail branches to 69.
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. Indirect auto loans are provided in Georgia and Florida and mortgage loans are provided throughout the South, while SBA loans are originated nationwide. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The "GAAP TO NON-GAAP RATIO RECONCILIATION" tables included below reconcile GAAP to non-GAAP ratios. The non-GAAP ratios contain financial information determined by methods other than in accordance with GAAP. Management uses these "non-GAAP" financial measures in its analysis of the Company's performance. Management believes that presentation of these non-GAAP financial measures provides useful supplemental information that allows better comparability with prior periods, as well as with peers in the industry and provides a greater understanding of the asset quality of the Company's loan portfolio exclusive of the indirect auto, government-guaranteed and acquired loan portfolios. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
SAFE HARBOR
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 2017 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, |
March 31, |
June 30, |
June 30, |
June 30, | |||||||||||||||
|
INCOME STATEMENT DATA: |
||||||||||||||||||||
|
Interest income |
$ |
44,740 |
$ |
41,562 |
$ |
39,578 |
$ |
86,302 |
$ |
77,220 |
||||||||||
|
Interest expense |
8,268 |
6,794 |
5,832 |
15,062 |
11,240 |
|||||||||||||||
|
Net interest income |
36,472 |
34,768 |
33,746 |
71,240 |
65,980 |
|||||||||||||||
|
Provision for loan losses |
2,286 |
2,130 |
750 |
4,416 |
2,850 |
|||||||||||||||
|
Noninterest income |
36,977 |
37,133 |
35,056 |
74,110 |
72,426 |
|||||||||||||||
|
Noninterest expense |
58,852 |
54,742 |
54,551 |
113,594 |
105,122 |
|||||||||||||||
|
Net income before income taxes |
12,311 |
15,029 |
13,501 |
27,340 |
30,435 |
|||||||||||||||
|
Income tax expense |
2,921 |
3,262 |
4,609 |
6,183 |
11,015 |
|||||||||||||||
|
Net income |
9,390 |
11,767 |
8,892 |
21,157 |
19,419 |
|||||||||||||||
|
PERFORMANCE: |
||||||||||||||||||||
|
Earnings per common share - basic |
$ |
0.35 |
$ |
0.44 |
$ |
0.34 |
$ |
0.78 |
$ |
0.74 |
||||||||||
|
Earnings per common share - diluted |
0.34 |
0.43 |
0.33 |
0.78 |
0.73 |
|||||||||||||||
|
Total revenues |
81,717 |
78,695 |
74,634 |
160,412 |
149,646 |
|||||||||||||||
|
Book value per common share |
15.48 |
15.19 |
14.21 |
15.48 |
14.21 |
|||||||||||||||
|
Tangible book value per common share(1) |
15.05 |
14.75 |
13.72 |
15.05 |
13.72 |
|||||||||||||||
|
Cash dividends paid per common share |
0.12 |
0.12 |
0.12 |
0.24 |
0.24 |
|||||||||||||||
|
Dividend payout ratio |
34.29 |
% |
27.27 |
% |
35.29 |
% |
30.77 |
% |
32.43 |
% | ||||||||||
|
Return on average assets |
0.77 |
% |
1.03 |
% |
0.78 |
% |
0.90 |
% |
0.87 |
% | ||||||||||
|
Return on average shareholders' equity |
9.06 |
% |
11.83 |
% |
9.58 |
% |
10.42 |
% |
10.87 |
% | ||||||||||
|
Equity to assets ratio |
8.60 |
% |
8.54 |
% |
8.23 |
% |
8.60 |
% |
8.23 |
% | ||||||||||
|
Net interest margin |
3.22 |
% |
3.29 |
% |
3.20 |
% |
3.25 |
% |
3.20 |
% | ||||||||||
|
END OF PERIOD BALANCE SHEET SUMMARY: |
||||||||||||||||||||
|
Total assets |
$ |
4,892,369 |
$ |
4,811,659 |
$ |
4,609,280 |
$ |
4,892,369 |
$ |
4,609,280 |
||||||||||
|
Earning assets |
4,549,315 |
4,466,249 |
4,267,358 |
4,549,315 |
4,267,358 |
|||||||||||||||
|
Loans, excluding loans held-for-sale |
3,792,886 |
3,714,308 |
3,332,132 |
3,792,886 |
3,332,132 |
|||||||||||||||
|
Total loans |
4,237,572 |
4,139,608 |
3,726,842 |
4,237,572 |
3,726,842 |
|||||||||||||||
|
Total deposits |
4,069,630 |
3,900,407 |
3,899,796 |
4,069,630 |
3,899,796 |
|||||||||||||||
|
Shareholders' equity |
420,962 |
410,744 |
379,399 |
420,962 |
379,399 |
|||||||||||||||
|
Assets serviced for others |
10,632,607 |
10,367,564 |
9,877,434 |
10,632,607 |
9,877,434 |
|||||||||||||||
|
ASSET QUALITY RATIOS: |
||||||||||||||||||||
|
Net charge-offs to average loans |
0.17 |
% |
0.11 |
% |
0.09 |
% |
0.14 |
% |
0.13 |
% | ||||||||||
|
Allowance to period-end loans |
0.83 |
% |
0.83 |
% |
0.91 |
% |
0.83 |
% |
0.91 |
% | ||||||||||
|
Nonperforming assets to total loans, ORE and repossessions |
1.96 |
% |
2.04 |
% |
1.68 |
% |
1.96 |
% |
1.68 |
% | ||||||||||
|
Adjusted nonperforming assets to loans, ORE and repossessions(2) |
0.99 |
% |
1.14 |
% |
1.15 |
% |
0.99 |
% |
1.15 |
% | ||||||||||
|
Allowance to nonperforming loans, ORE and repossessions |
0.42x |
0.41x |
0.54x |
0.42x |
0.54x |
|||||||||||||||
|
SELECTED RATIOS: |
||||||||||||||||||||
|
Loans to total deposits |
93.20 |
% |
95.23 |
% |
85.44 |
% |
93.20 |
% |
85.44 |
% | ||||||||||
|
Average total loans to average earning assets |
92.90 |
% |
92.71 |
% |
87.99 |
% |
92.81 |
% |
89.50 |
% | ||||||||||
|
Noninterest income to total revenue |
50.34 |
% |
51.64 |
% |
50.95 |
% |
50.99 |
% |
52.33 |
% | ||||||||||
|
Leverage ratio |
8.43 |
% |
8.74 |
% |
8.36 |
% |
8.43 |
% |
8.36 |
% | ||||||||||
|
Common equity tier 1 capital |
8.45 |
% |
8.41 |
% |
8.61 |
% |
8.45 |
% |
8.61 |
% | ||||||||||
|
Tier 1 risk-based capital |
9.50 |
% |
9.47 |
% |
9.76 |
% |
9.50 |
% |
9.76 |
% | ||||||||||
|
Total risk-based capital |
11.99 |
% |
11.98 |
% |
12.47 |
% |
11.99 |
% |
12.47 |
% | ||||||||||
|
Mortgage loan production |
$ |
908,754 |
$ |
613,314 |
$ |
800,426 |
$ |
1,522,068 |
$ |
1,353,423 |
||||||||||
|
Total mortgage loan sales |
800,084 |
496,484 |
689,073 |
1,296,568 |
1,255,076 |
|||||||||||||||
|
Indirect automobile production |
183,675 |
258,560 |
249,716 |
442,235 |
566,257 |
|||||||||||||||
|
Total indirect automobile sales |
29,275 |
86,000 |
151,996 |
115,275 |
344,431 |
|||||||||||||||
|
(1) Non-GAAP financial measure. See non-GAAP reconciliation table for the comparable GAAP. | ||||||||||||||||||||
|
(2) Excludes acquired loans and net of government guarantees. See non-GAAP reconciliation table for the comparable GAAP. | ||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
June 30, | |||||||||
|
ASSETS |
||||||||||||
|
Cash and cash equivalents |
$ |
157,586 |
$ |
200,496 |
$ |
430,547 |
||||||
|
Investment securities available-for-sale |
148,155 |
124,576 |
130,371 |
|||||||||
|
Investment securities held-to-maturity |
20,984 |
21,342 |
15,593 |
|||||||||
|
Loans held-for-sale |
444,686 |
425,300 |
394,710 |
|||||||||
|
Loans |
3,792,886 |
3,714,308 |
3,332,132 |
|||||||||
|
Allowance for loan losses |
(31,623) |
(30,940) |
(30,425) |
|||||||||
|
Loans, net of allowance for loan losses |
3,761,263 |
3,683,368 |
3,301,707 |
|||||||||
|
Premises and equipment, net |
90,246 |
88,624 |
87,253 |
|||||||||
|
Other real estate, net |
6,834 |
7,668 |
9,382 |
|||||||||
|
Bank owned life insurance |
72,703 |
72,284 |
71,027 |
|||||||||
|
Servicing rights, net |
125,704 |
119,553 |
108,216 |
|||||||||
|
Other assets |
64,208 |
68,448 |
60,474 |
|||||||||
|
Total assets |
$ |
4,892,369 |
$ |
4,811,659 |
$ |
4,609,280 |
||||||
|
LIABILITIES |
||||||||||||
|
Deposits |
||||||||||||
|
Noninterest-bearing demand deposits |
$ |
1,225,657 |
$ |
1,152,315 |
$ |
1,082,966 |
||||||
|
Interest-bearing deposits |
||||||||||||
|
Demand and money market |
1,597,145 |
1,505,766 |
1,436,005 |
|||||||||
|
Savings |
300,315 |
363,099 |
336,695 |
|||||||||
|
Time deposits |
946,513 |
879,227 |
1,044,130 |
|||||||||
|
Total deposits |
4,069,630 |
3,900,407 |
3,899,796 |
|||||||||
|
Short-term borrowings |
237,886 |
337,795 |
164,896 |
|||||||||
|
Subordinated debt, net |
120,653 |
120,620 |
120,521 |
|||||||||
|
Other liabilities |
43,238 |
42,093 |
44,668 |
|||||||||
|
Total liabilities |
4,471,407 |
4,400,915 |
4,229,881 |
|||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||
|
Common stock |
223,771 |
219,234 |
208,699 |
|||||||||
|
Accumulated other comprehensive (loss) income, net |
(1,096) |
(631) |
959 |
|||||||||
|
Retained earnings |
198,287 |
192,141 |
169,741 |
|||||||||
|
Total shareholders' equity |
420,962 |
410,744 |
379,399 |
|||||||||
|
Total liabilities and shareholders' equity |
$ |
4,892,369 |
$ |
4,811,659 |
$ |
4,609,280 |
||||||
|
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, |
March 31, |
June 30, |
June 30, |
June 30, | ||||||||||||||||
|
INTEREST INCOME |
|||||||||||||||||||||
|
Loans, including fees |
$ |
42,845 |
$ |
39,849 |
$ |
37,560 |
$ |
82,694 |
$ |
73,643 |
|||||||||||
|
Investment securities |
1,354 |
1,175 |
1,170 |
2,529 |
2,378 |
||||||||||||||||
|
Other |
541 |
538 |
848 |
1,079 |
1,199 |
||||||||||||||||
|
Total interest income |
44,740 |
41,562 |
39,578 |
86,302 |
77,220 |
||||||||||||||||
|
INTEREST EXPENSE |
|||||||||||||||||||||
|
Deposits |
4,823 |
4,313 |
3,891 |
9,136 |
7,340 |
||||||||||||||||
|
Other borrowings |
1,812 |
910 |
502 |
2,722 |
894 |
||||||||||||||||
|
Subordinated debt |
1,633 |
1,571 |
1,439 |
3,204 |
3,006 |
||||||||||||||||
|
Total interest expense |
8,268 |
6,794 |
5,832 |
15,062 |
11,240 |
||||||||||||||||
|
Net interest income |
36,472 |
34,768 |
33,746 |
71,240 |
65,980 |
||||||||||||||||
|
Provision for loan losses |
2,286 |
2,130 |
750 |
4,416 |
2,850 |
||||||||||||||||
|
Net interest income after provision for loan losses |
34,186 |
32,638 |
32,996 |
66,824 |
63,130 |
||||||||||||||||
|
NONINTEREST INCOME |
|||||||||||||||||||||
|
Service charges on deposit accounts |
1,468 |
1,472 |
1,481 |
2,940 |
2,936 |
||||||||||||||||
|
Other fees and charges |
2,449 |
2,235 |
2,006 |
4,684 |
3,863 |
||||||||||||||||
|
Mortgage banking activities |
29,383 |
28,562 |
26,956 |
57,945 |
52,825 |
||||||||||||||||
|
Indirect lending activities |
1,270 |
2,148 |
3,640 |
3,418 |
8,066 |
||||||||||||||||
|
SBA lending activities |
1,217 |
1,157 |
681 |
2,374 |
2,499 |
||||||||||||||||
|
Trust and wealth management services |
574 |
532 |
240 |
1,106 |
529 |
||||||||||||||||
|
Other |
616 |
1,027 |
52 |
1,643 |
1,708 |
||||||||||||||||
|
Total noninterest income |
36,977 |
37,133 |
35,056 |
74,110 |
72,426 |
||||||||||||||||
|
NONINTEREST EXPENSE |
|||||||||||||||||||||
|
Salaries and employee benefits |
28,215 |
27,561 |
25,852 |
55,776 |
51,290 |
||||||||||||||||
|
Commissions |
11,242 |
7,506 |
9,384 |
18,748 |
16,882 |
||||||||||||||||
|
Occupancy and equipment |
4,541 |
4,932 |
4,700 |
9,473 |
8,864 |
||||||||||||||||
|
Professional and other services |
4,635 |
4,798 |
5,052 |
9,433 |
9,119 |
||||||||||||||||
|
Other |
10,219 |
9,945 |
9,563 |
20,164 |
18,967 |
||||||||||||||||
|
Total noninterest expense |
58,852 |
54,742 |
54,551 |
113,594 |
105,122 |
||||||||||||||||
|
Income before income tax expense |
12,311 |
15,029 |
13,501 |
27,340 |
30,434 |
||||||||||||||||
|
Income tax expense |
2,921 |
3,262 |
4,609 |
6,183 |
11,015 |
||||||||||||||||
|
NET INCOME |
$ |
9,390 |
$ |
11,767 |
$ |
8,892 |
$ |
21,157 |
$ |
19,419 |
|||||||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||
|
Basic |
$ |
0.35 |
$ |
0.44 |
$ |
0.34 |
$ |
0.78 |
$ |
0.74 |
|||||||||||
|
Diluted |
$ |
0.34 |
$ |
0.43 |
$ |
0.33 |
$ |
0.78 |
$ |
0.73 |
|||||||||||
|
Weighted average common shares outstanding-basic |
27,093 |
27,011 |
26,433 |
27,053 |
26,384 |
||||||||||||||||
|
Weighted average common shares outstanding-diluted |
27,222 |
27,121 |
26,547 |
27,165 |
26,512 |
||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES LOANS BY CATEGORY (UNAUDITED) | ||||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||
|
Commercial |
$ |
938,203 |
$ |
897,297 |
$ |
811,199 |
$ |
789,788 |
$ |
796,699 |
||||||||||
|
SBA |
146,508 |
140,308 |
141,208 |
142,989 |
145,311 |
|||||||||||||||
|
Total commercial and SBA loans |
1,084,711 |
1,037,605 |
952,407 |
932,777 |
942,010 |
|||||||||||||||
|
Construction loans |
269,330 |
265,780 |
248,317 |
243,600 |
248,926 |
|||||||||||||||
|
Indirect automobile |
1,698,879 |
1,719,670 |
1,716,156 |
1,609,678 |
1,531,761 |
|||||||||||||||
|
Installment loans and personal lines of credit |
31,807 |
28,716 |
25,995 |
26,189 |
31,225 |
|||||||||||||||
|
Total consumer loans |
1,730,686 |
1,748,386 |
1,742,151 |
1,635,867 |
1,562,986 |
|||||||||||||||
|
Residential mortgage |
555,636 |
512,673 |
489,721 |
452,584 |
433,544 |
|||||||||||||||
|
Home equity lines of credit |
152,523 |
149,864 |
148,370 |
144,879 |
144,666 |
|||||||||||||||
|
Total mortgage loans |
708,159 |
662,537 |
638,091 |
597,463 |
578,210 |
|||||||||||||||
|
Loans |
3,792,886 |
3,714,308 |
3,580,966 |
3,409,707 |
3,332,132 |
|||||||||||||||
|
Loans held-for-sale: |
||||||||||||||||||||
|
Residential mortgage |
399,630 |
355,515 |
269,140 |
257,325 |
279,292 |
|||||||||||||||
|
SBA |
20,056 |
19,785 |
13,615 |
8,004 |
15,418 |
|||||||||||||||
|
Indirect automobile |
25,000 |
50,000 |
75,000 |
75,000 |
100,000 |
|||||||||||||||
|
Total loans held-for-sale |
444,686 |
425,300 |
357,755 |
340,329 |
394,710 |
|||||||||||||||
|
Total loans |
$ |
4,237,572 |
$ |
4,139,608 |
$ |
3,938,721 |
$ |
3,750,036 |
$ |
3,726,842 |
||||||||||
|
DEPOSITS BY CATEGORY (UNAUDITED) | ||||||||||||||||||||||||||||||||||
|
For the Quarter Ended | ||||||||||||||||||||||||||||||||||
|
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
June 30, 2017 | ||||||||||||||||||||||||||||||
|
($ in thousands) |
Average |
Rate |
Average |
Rate |
Average |
Rate |
Average |
Rate |
Average |
Rate | ||||||||||||||||||||||||
|
Noninterest-bearing |
$ |
1,172,298 |
— |
% |
$ |
1,120,562 |
— |
% |
$ |
1,124,759 |
— |
% |
$ |
1,103,414 |
— |
% |
$ |
1,027,909 |
— |
% | ||||||||||||||
|
Interest-bearing demand |
489,051 |
0.14 |
% |
461,614 |
0.14 |
% |
453,714 |
0.11 |
% |
447,348 |
0.12 |
% |
437,034 |
0.11 |
% | |||||||||||||||||||
|
Money market and |
1,349,447 |
0.61 |
% |
1,345,905 |
0.55 |
% |
1,381,207 |
0.53 |
% |
1,341,189 |
0.49 |
% |
1,284,329 |
0.45 |
% | |||||||||||||||||||
|
Time deposits |
906,133 |
1.16 |
% |
901,394 |
1.04 |
% |
958,790 |
0.94 |
% |
1,021,563 |
0.92 |
% |
1,049,248 |
0.90 |
% | |||||||||||||||||||
|
Total average deposits |
$ |
3,916,929 |
0.49 |
% |
$ |
3,829,475 |
0.46 |
% |
$ |
3,918,470 |
0.43 |
% |
$ |
3,913,514 |
0.42 |
% |
$ |
3,798,520 |
0.41 |
% | ||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES NONPERFORMING AND CLASSIFIED ASSETS (UNAUDITED) | |||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | ||||||||||||||
|
NONPERFORMING ASSETS |
|||||||||||||||||||
|
Nonaccrual loans (2)(6) |
$ |
58,027 |
$ |
58,706 |
$ |
47,012 |
$ |
41,408 |
$ |
37,894 |
|||||||||
|
Loans past due 90 days or more and still accruing |
8,278 |
7,728 |
6,313 |
6,534 |
7,210 |
||||||||||||||
|
Repossessions |
1,303 |
1,853 |
2,392 |
2,040 |
1,779 |
||||||||||||||
|
Other real estate (ORE) |
6,834 |
7,668 |
7,621 |
8,624 |
9,382 |
||||||||||||||
|
Nonperforming assets |
$ |
74,442 |
$ |
75,955 |
$ |
63,338 |
$ |
58,606 |
$ |
56,265 |
|||||||||
|
ASSET QUALITY RATIOS |
|||||||||||||||||||
|
Loans 30-89 days past due |
$ |
6,514 |
$ |
15,695 |
$ |
22,079 |
$ |
10,193 |
$ |
7,181 |
|||||||||
|
Loans 30-89 days past due to loans |
0.17 |
% |
0.42 |
% |
0.62 |
% |
0.30 |
% |
0.22 |
% | |||||||||
|
Loans past due 90 days or more and still accruing to loans |
0.22 |
% |
0.21 |
% |
0.18 |
% |
0.19 |
% |
0.22 |
% | |||||||||
|
Nonperforming loans as a % of loans |
1.75 |
% |
1.79 |
% |
1.49 |
% |
1.41 |
% |
1.35 |
% | |||||||||
|
Nonperforming assets to loans, ORE, and repossessions |
1.96 |
% |
2.04 |
% |
1.76 |
% |
1.71 |
% |
1.68 |
% | |||||||||
|
Adjusted nonperforming assets to adjusted loans, ORE and |
0.99 |
% |
1.14 |
% |
1.06 |
% |
1.05 |
% |
1.17 |
% | |||||||||
|
Nonperforming assets to total assets |
1.52 |
% |
1.58 |
% |
1.38 |
% |
1.30 |
% |
1.22 |
% | |||||||||
|
Adjusted nonperforming assets to total assets(8) |
0.73 |
% |
0.84 |
% |
0.79 |
% |
0.75 |
% |
0.79 |
% | |||||||||
|
Classified Asset Ratio(4) |
21.84 |
% |
21.70 |
% |
20.70 |
% |
20.59 |
% |
20.14 |
% | |||||||||
|
ALL to nonperforming loans |
47.69 |
% |
46.57 |
% |
55.83 |
% |
64.04 |
% |
67.46 |
% | |||||||||
|
Net charge-offs, annualized to average loans |
0.17 |
% |
0.11 |
% |
0.11 |
% |
0.13 |
% |
0.09 |
% | |||||||||
|
ALL as a % of loans |
0.83 |
% |
0.83 |
% |
0.83 |
% |
0.90 |
% |
0.91 |
% | |||||||||
|
Adjusted ALL as a % of adjusted loans(7) |
1.16 |
% |
1.15 |
% |
1.16 |
% |
1.29 |
% |
1.30 |
% | |||||||||
|
ALL as a % of loans, excluding acquired loans(5) |
0.87 |
% |
0.88 |
% |
0.88 |
% |
0.96 |
% |
0.98 |
% | |||||||||
|
CLASSIFIED ASSETS |
|||||||||||||||||||
|
Classified loans(1) |
$ |
87,688 |
$ |
83,867 |
$ |
77,679 |
$ |
75,033 |
$ |
71,040 |
|||||||||
|
ORE and repossessions |
8,137 |
9,521 |
10,013 |
10,664 |
11,161 |
||||||||||||||
|
Total classified assets(3) |
$ |
95,825 |
$ |
93,388 |
$ |
87,692 |
$ |
85,697 |
$ |
82,201 |
|||||||||
|
(1) Amount of SBA guarantee included in classified loans |
$ |
4,870 |
$ |
2,879 |
$ |
2,930 |
$ |
2,755 |
$ |
7,458 |
|||||||||
|
(2) Amount of repurchased government-guaranteed loans, primarily |
$ |
27,220 |
$ |
26,091 |
$ |
19,478 |
$ |
15,450 |
$ |
12,502 |
|||||||||
|
(3) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share and purchase discounts (for periods prior to 2018) | |||||||||||||||||||
|
(4) Classified asset ratio is defined as classified assets as a percentage of the sum of Tier 1 capital plus allowance for loan losses | |||||||||||||||||||
|
(5) Allowance calculation excludes the recorded investment of acquired loans, due to valuation calculated at acquisition | |||||||||||||||||||
|
(6) Excludes purchased credit impaired (PCI) loans which are not removed from their accounting pool | |||||||||||||||||||
|
(7) Excludes indirect and acquired loans. See non-GAAP reconciliation table for a reconciliation to the comparable GAAP measure | |||||||||||||||||||
|
(8) Excludes acquired loans and net of government guarantees. See non-GAAP reconciliation table for a reconciliation to the comparable GAAP measure | |||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
|
INCOME FROM INDIRECT LENDING ACTIVITIES | ||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||
|
For the Quarter Ended | ||||||||||||||||||||
|
(in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||
|
Loan servicing revenue |
$ |
1,690 |
$ |
1,769 |
$ |
2,158 |
$ |
2,130 |
$ |
2,199 |
||||||||||
|
Gain on sale of loans |
22 |
442 |
532 |
263 |
1,074 |
|||||||||||||||
|
Gain on capitalization of servicing rights |
196 |
569 |
406 |
182 |
1,020 |
|||||||||||||||
|
Ancillary loan servicing revenue |
166 |
183 |
247 |
172 |
204 |
|||||||||||||||
|
Gross indirect lending revenue |
2,074 |
2,963 |
3,343 |
2,747 |
4,497 |
|||||||||||||||
|
Less: |
||||||||||||||||||||
|
Amortization of servicing rights, net |
(804) |
(815) |
(777) |
(846) |
(857) |
|||||||||||||||
|
Total income from indirect lending |
$ |
1,270 |
$ |
2,148 |
$ |
2,566 |
$ |
1,901 |
$ |
3,640 |
||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
|
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
As of or for the Quarter Ended | ||||||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||||
|
Average loans outstanding(1) |
$ |
1,771,665 |
$ |
1,784,982 |
$ |
1,748,179 |
$ |
1,627,946 |
$ |
1,675,644 |
||||||||||||
|
Loans serviced for others |
$ |
932,915 |
$ |
1,018,743 |
$ |
1,056,509 |
$ |
1,114,710 |
$ |
1,216,296 |
||||||||||||
|
Past due loans: |
||||||||||||||||||||||
|
Amount 30+ days past due |
2,407 |
2,257 |
3,423 |
2,965 |
1,535 |
|||||||||||||||||
|
Number 30+ days past due |
217 |
197 |
283 |
255 |
143 |
|||||||||||||||||
|
30+ day performing delinquency rate(2) |
0.14 |
% |
0.13 |
% |
0.19 |
% |
0.18 |
% |
0.09 |
% | ||||||||||||
|
Nonperforming loans |
1,526 |
1,539 |
1,916 |
1,405 |
1,363 |
|||||||||||||||||
|
Nonperforming loans as a percentage of |
0.09 |
% |
0.09 |
% |
0.11 |
% |
0.08 |
% |
0.08 |
% | ||||||||||||
|
Net charge-offs |
$ |
864 |
$ |
1,147 |
$ |
798 |
$ |
1,047 |
$ |
1,332 |
||||||||||||
|
Net charge-off rate(3) |
0.20 |
% |
0.27 |
% |
0.19 |
% |
0.27 |
% |
0.35 |
% | ||||||||||||
|
Number of vehicles repossessed during |
132 |
140 |
107 |
132 |
147 |
|||||||||||||||||
|
Quarterly production weighted average |
779 |
781 |
783 |
776 |
758 |
|||||||||||||||||
|
(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 INDIRECT LENDING | ||||||||||||||||||||||
|
(UNAUDITED) | ||||||||||||||||||||||
|
As of or for the Quarter Ended | ||||||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||||
|
Production by state: |
||||||||||||||||||||||
|
Alabama (3) |
$ |
9,920 |
$ |
12,239 |
$ |
19,216 |
$ |
13,587 |
$ |
10,399 |
||||||||||||
|
Arkansas (3) |
4,488 |
20,322 |
30,732 |
26,997 |
26,569 |
|||||||||||||||||
|
North Carolina (3) |
15,580 |
23,383 |
28,912 |
16,545 |
14,110 |
|||||||||||||||||
|
South Carolina (3) |
11,065 |
12,322 |
16,559 |
10,959 |
11,232 |
|||||||||||||||||
|
Florida |
52,645 |
65,786 |
87,750 |
51,723 |
49,976 |
|||||||||||||||||
|
Georgia |
38,322 |
38,288 |
45,571 |
31,266 |
28,091 |
|||||||||||||||||
|
Mississippi (3) |
22,605 |
24,785 |
32,141 |
24,535 |
20,136 |
|||||||||||||||||
|
Tennessee (3) |
11,098 |
13,509 |
17,635 |
10,931 |
10,012 |
|||||||||||||||||
|
Virginia (3) |
— |
3,620 |
6,495 |
8,223 |
6,292 |
|||||||||||||||||
|
Texas (2) |
— |
— |
— |
13,312 |
26,542 |
|||||||||||||||||
|
Louisiana (3) |
17,952 |
44,306 |
60,021 |
47,576 |
45,306 |
|||||||||||||||||
|
Oklahoma (2) |
— |
— |
— |
430 |
1,051 |
|||||||||||||||||
|
Total production by state |
$ |
183,675 |
$ |
258,560 |
$ |
345,032 |
$ |
256,084 |
$ |
249,716 |
||||||||||||
|
Loan sales |
$ |
29,275 |
$ |
86,000 |
$ |
59,681 |
$ |
27,115 |
$ |
151,996 |
||||||||||||
|
Portfolio yield (1) |
3.02 |
% |
2.98 |
% |
2.98 |
% |
2.92 |
% |
2.84 |
% | ||||||||||||
|
(1) |
Includes held-for-sale | |||||||||||||||||||||
|
(2) |
Fidelity exited the Oklahoma and Texas markets in Q3 2017 | |||||||||||||||||||||
|
(3) |
Fidelity exited the Alabama, Arkansas, North Carolina, South Carolina, Mississippi, Tennessee, Virginia, and Louisiana markets in 2018 | |||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
|
INCOME FROM MORTGAGE BANKING ACTIVITIES | |||||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||||
|
As of or for the Quarter Ended | |||||||||||||||||||||
|
(in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | ||||||||||||||||
|
Marketing gain, net |
$ |
20,330 |
$ |
17,575 |
$ |
16,683 |
$ |
19,713 |
$ |
21,355 |
|||||||||||
|
Origination points and fees |
5,495 |
3,647 |
3,482 |
3,815 |
4,189 |
||||||||||||||||
|
Loan servicing revenue |
6,206 |
6,221 |
5,851 |
5,616 |
5,379 |
||||||||||||||||
|
Gross mortgage revenue |
$ |
32,031 |
$ |
27,443 |
$ |
26,016 |
$ |
29,144 |
$ |
30,923 |
|||||||||||
|
Less: |
|||||||||||||||||||||
|
MSR amortization |
(3,331) |
(3,426) |
(3,609) |
(3,560) |
(3,331) |
||||||||||||||||
|
MSR recovery/(impairment), net |
683 |
4,545 |
(1,476) |
(544) |
(636) |
||||||||||||||||
|
Total income from mortgage |
$ |
29,383 |
$ |
28,562 |
$ |
20,931 |
$ |
25,040 |
$ |
26,956 |
|||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
|
ANALYSIS OF MORTGAGE LENDING | |||||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||||
|
As of or for the Quarter Ended | |||||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | ||||||||||||||||
|
Production by region: |
|||||||||||||||||||||
|
Georgia |
$ |
545,951 |
$ |
368,739 |
$ |
423,876 |
$ |
490,323 |
$ |
519,497 |
|||||||||||
|
Florida |
136,990 |
109,034 |
103,490 |
95,010 |
95,983 |
||||||||||||||||
|
Alabama/Tennessee |
2,433 |
2,709 |
4,609 |
7,299 |
7,294 |
||||||||||||||||
|
Virginia/Maryland |
148,970 |
91,842 |
106,398 |
129,774 |
143,885 |
||||||||||||||||
|
North and South Carolina |
74,410 |
40,990 |
31,360 |
30,448 |
33,767 |
||||||||||||||||
|
Total production by region |
$ |
908,754 |
$ |
613,314 |
$ |
669,733 |
$ |
752,854 |
$ |
800,426 |
|||||||||||
|
% for purchases |
91.6 |
% |
85.1 |
% |
82.9 |
% |
86.3 |
% |
89.6 |
% | |||||||||||
|
% for refinance loans |
8.4 |
% |
14.9 |
% |
17.1 |
% |
13.7 |
% |
10.4 |
% | |||||||||||
|
Portfolio Production: |
$ |
75,990 |
$ |
44,554 |
$ |
66,236 |
$ |
56,072 |
$ |
46,902 |
|||||||||||
|
Funded loan type (UPB): |
|||||||||||||||||||||
|
Conventional |
63.8 |
% |
65.9 |
% |
62.0 |
% |
62.0 |
% |
62.5 |
% | |||||||||||
|
FHA/VA/USDA |
20.7 |
% |
22.1 |
% |
21.5 |
% |
23.3 |
% |
24.6 |
% | |||||||||||
|
Jumbo |
15.5 |
% |
12.0 |
% |
16.5 |
% |
14.7 |
% |
12.9 |
% | |||||||||||
|
Gross pipeline of locked loans to be |
$ |
354,735 |
$ |
382,386 |
$ |
203,896 |
$ |
265,444 |
$ |
360,551 |
|||||||||||
|
Loans held for sale (UPB) |
$ |
389,858 |
$ |
348,797 |
$ |
262,315 |
$ |
250,960 |
$ |
271,714 |
|||||||||||
|
Total loan sales (UPB) |
$ |
800,084 |
$ |
496,484 |
$ |
602,171 |
$ |
731,595 |
$ |
689,073 |
|||||||||||
|
Conventional |
70.7 |
% |
69.1 |
% |
64.3 |
% |
63.0 |
% |
63.6 |
% | |||||||||||
|
FHA/VA/USDA |
21.3 |
% |
27.2 |
% |
25.0 |
% |
27.1 |
% |
26.6 |
% | |||||||||||
|
Jumbo |
8.0 |
% |
3.7 |
% |
10.7 |
% |
9.9 |
% |
9.8 |
% | |||||||||||
|
Average loans outstanding(1) |
$ |
913,430 |
$ |
725,444 |
$ |
701,932 |
$ |
698,068 |
$ |
664,099 |
|||||||||||
|
(1) Includes held-for-sale | |||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
|
THIRD PARTY MORTGAGE LOAN SERVICING | |||||||||||||||||||||
|
(UNAUDITED) | |||||||||||||||||||||
|
As of or for the Quarter Ended | |||||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | ||||||||||||||||
|
Loans serviced for others (UPB) |
$ |
9,450,326 |
$ |
9,097,869 |
$ |
8,917,117 |
$ |
8,715,198 |
$ |
8,357,934 |
|||||||||||
|
Average loans serviced for others |
$ |
9,244,175 |
$ |
9,038,568 |
$ |
8,896,305 |
$ |
8,657,475 |
$ |
8,304,065 |
|||||||||||
|
MSR book value, net of amortization |
$ |
119,372 |
$ |
113,217 |
$ |
110,497 |
$ |
107,434 |
$ |
102,549 |
|||||||||||
|
MSR impairment |
(4,590) |
(5,274) |
(9,818) |
(8,343) |
(7,799) |
||||||||||||||||
|
MSR net carrying value |
$ |
114,782 |
$ |
107,943 |
$ |
100,679 |
$ |
99,091 |
$ |
94,750 |
|||||||||||
|
MSR carrying value as a % of period |
1.21 |
% |
1.19 |
% |
1.13 |
% |
1.14 |
% |
1.13 |
% | |||||||||||
|
Delinquency % loans serviced for |
1.28 |
% |
1.24 |
% |
1.87 |
% |
1.41 |
% |
1.02 |
% | |||||||||||
|
MSR revenue multiple(1) |
4.52 |
4.31 |
4.29 |
4.38 |
4.38 |
||||||||||||||||
|
(1) MSR carrying value (period end) to period end loans serviced for others divided by the ratio of annualized mortgage loan servicing revenue to | |||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES AVERAGE BALANCE AND YIELDS (UNAUDITED) | ||||||||||||||||||||
|
For the Quarter Ended | ||||||||||||||||||||
|
June 30, 2018 |
March 31, 2018 |
June 30, 2017 | ||||||||||||||||||
|
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ | |||||||||||||||
|
($ in thousands) |
Balance |
Rate |
Balance |
Rate |
Balance |
Rate | ||||||||||||||
|
Assets |
||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||
|
Commercial |
$ |
920,995 |
4.71 |
% |
$ |
864,992 |
4.83 |
% |
$ |
818,952 |
5.10 |
% | ||||||||
|
SBA |
154,459 |
7.16 |
% |
153,731 |
8.08 |
% |
155,819 |
8.25 |
% | |||||||||||
|
Construction |
267,125 |
6.51 |
% |
258,072 |
6.54 |
% |
243,067 |
6.00 |
% | |||||||||||
|
Indirect automobile |
1,771,665 |
3.02 |
% |
1,784,982 |
2.98 |
% |
1,670,576 |
2.85 |
% | |||||||||||
|
Installment loans and personal lines of credit |
44,033 |
2.69 |
% |
41,468 |
2.95 |
% |
44,638 |
3.50 |
% | |||||||||||
|
Residential mortgage |
912,700 |
4.15 |
% |
724,684 |
3.99 |
% |
662,664 |
3.93 |
% | |||||||||||
|
Home equity lines of credit |
151,363 |
4.92 |
% |
149,399 |
4.92 |
% |
140,310 |
4.51 |
% | |||||||||||
|
Total loans, net of unearned income (1) |
4,222,340 |
4.07 |
% |
3,977,328 |
4.07 |
% |
3,736,026 |
4.04 |
% | |||||||||||
|
Investment securities (1) |
175,314 |
3.14 |
% |
155,920 |
3.11 |
% |
164,037 |
2.97 |
% | |||||||||||
|
Other earning assets |
147,405 |
1.47 |
% |
156,751 |
1.39 |
% |
345,891 |
0.98 |
% | |||||||||||
|
Total interest-earning assets |
4,545,059 |
3.95 |
% |
4,289,999 |
3.93 |
% |
4,245,954 |
3.75 |
% | |||||||||||
|
Noninterest-earning assets: |
||||||||||||||||||||
|
Cash and due from banks |
36,117 |
36,370 |
44,132 |
|||||||||||||||||
|
Allowance for loan losses |
(31,174) |
(30,002) |
(30,116) |
|||||||||||||||||
|
Premises and equipment, net |
90,030 |
88,732 |
87,332 |
|||||||||||||||||
|
Other real estate |
7,383 |
7,606 |
10,907 |
|||||||||||||||||
|
Other assets |
243,119 |
233,677 |
221,322 |
|||||||||||||||||
|
Total noninterest-earning assets |
345,475 |
336,383 |
333,577 |
|||||||||||||||||
|
Total assets |
$ |
4,890,534 |
$ |
4,626,382 |
$ |
4,579,531 |
||||||||||||||
|
Liabilities and shareholders' equity |
||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||
|
Demand deposits |
$ |
489,051 |
0.14 |
% |
$ |
461,614 |
0.14 |
% |
$ |
437,034 |
0.11 |
% | ||||||||
|
Money market and savings deposits |
1,349,447 |
0.61 |
% |
1,345,905 |
0.55 |
% |
1,284,329 |
0.45 |
% | |||||||||||
|
Time deposits |
906,133 |
1.16 |
% |
901,394 |
1.04 |
% |
1,049,248 |
0.90 |
% | |||||||||||
|
Total interest-bearing deposits |
2,744,631 |
0.70 |
% |
2,708,913 |
0.65 |
% |
2,770,611 |
0.56 |
% | |||||||||||
|
Other short-term borrowings |
395,215 |
1.84 |
% |
235,519 |
1.57 |
% |
243,359 |
0.83 |
% | |||||||||||
|
Subordinated debt |
120,637 |
5.43 |
% |
120,604 |
5.28 |
% |
120,505 |
4.79 |
% | |||||||||||
|
Total interest-bearing liabilities |
3,260,483 |
1.02 |
% |
3,065,036 |
0.90 |
% |
3,134,475 |
0.75 |
% | |||||||||||
|
Noninterest-bearing liabilities and shareholders' equity: |
||||||||||||||||||||
|
Demand deposits |
1,172,298 |
1,120,562 |
1,027,909 |
|||||||||||||||||
|
Other liabilities |
42,081 |
37,336 |
44,824 |
|||||||||||||||||
|
Shareholders' equity |
415,672 |
403,448 |
372,323 |
|||||||||||||||||
|
Total noninterest-bearing liabilities and |
1,630,051 |
1,561,346 |
1,445,056 |
|||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
4,890,534 |
$ |
4,626,382 |
$ |
4,579,531 |
||||||||||||||
|
Net interest spread |
2.93 |
% |
3.03 |
% |
3.00 |
% | ||||||||||||||
|
Net interest margin |
3.22 |
% |
3.29 |
% |
3.20 |
% | ||||||||||||||
|
(1) Interest income includes the effect of taxable-equivalent adjustment using a 21% tax rate for the quarters ended June 30, 2018 and March 31, 2018 and a 35% tax rate for the quarter ended June 30, 2017. | ||||||||||||||||||||
|
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES GAAP TO NON-GAAP RATIO RECONCILIATION (UNAUDITED) | |||||||||||||||||||
|
For the Quarter Ended | |||||||||||||||||||
|
($ in thousands) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | ||||||||||||||
|
Reconciliation of nonperforming assets to adjusted nonperforming assets: | |||||||||||||||||||
|
Nonperforming assets (GAAP) |
$ |
74,442 |
$ |
75,955 |
$ |
63,338 |
$ |
58,606 |
$ |
56,265 |
|||||||||
|
Less: repurchased government-guaranteed mortgage |
(27,220) |
(26,091) |
(19,478) |
(15,450) |
(12,502) |
||||||||||||||
|
Less: SBA guaranteed loans included on nonaccrual |
(3,639) |
(1,541) |
(1,652) |
(2,145) |
(2,949) |
||||||||||||||
|
Less: Nonaccrual acquired loans |
(7,648) |
(7,890) |
(6,242) |
(7,366) |
(4,544) |
||||||||||||||
|
Adjusted nonperforming assets, excluding acquired |
$ |
35,935 |
$ |
40,433 |
$ |
35,966 |
$ |
33,645 |
$ |
36,270 |
|||||||||
|
Reconciliation of total loans, ORE and repossessions to total loans, ORE and repossessions, less acquired loans: | |||||||||||||||||||
|
Loans, excluding Loans Held-for-Sale |
$ |
3,792,886 |
$ |
3,714,308 |
$ |
3,580,966 |
$ |
3,409,707 |
$ |
3,332,132 |
|||||||||
|
Add: ORE |
6,834 |
7,668 |
7,621 |
8,624 |
9,382 |
||||||||||||||
|
Add: repossessions |
1,303 |
1,853 |
2,392 |
2,040 |
1,779 |
||||||||||||||
|
Total loans, ORE, and repossessions (GAAP) |
3,801,023 |
3,723,829 |
3,590,979 |
3,420,371 |
3,343,293 |
||||||||||||||
|
Less: acquired loans |
(165,303) |
(178,496) |
(196,567) |
(216,994) |
(230,256) |
||||||||||||||
|
Adjusted loans, ORE, and repossessions, less acquired |
$ |
3,635,720 |
$ |
3,545,333 |
$ |
3,394,412 |
$ |
3,203,377 |
$ |
3,113,037 |
|||||||||
|
Nonperforming assets to loans, ORE, and repossessions |
1.96 |
% |
2.04 |
% |
1.76 |
% |
1.71 |
% |
1.68 |
% | |||||||||
|
Adjusted nonperforming assets to adjusted loans, ORE, |
0.99 |
% |
1.14 |
% |
1.06 |
% |
1.05 |
% |
1.17 |
% | |||||||||
|
Nonperforming assets to total assets (GAAP) |
1.52 |
% |
1.58 |
% |
1.38 |
% |
1.30 |
% |
1.22 |
% | |||||||||
|
Adjusted nonperforming assets to total assets (non- |
0.73 |
% |
0.84 |
% |
0.79 |
% |
0.75 |
% |
0.79 |
% | |||||||||
|
Reconciliation of allowance to adjusted allowance: |
|||||||||||||||||||
|
Allowance for loan losses (GAAP) |
$ |
31,623 |
$ |
30,940 |
$ |
29,772 |
$ |
30,703 |
$ |
30,425 |
|||||||||
|
Less: allowance allocated to indirect auto loans |
(9,210) |
(9,888) |
(10,258) |
(10,116) |
(9,767) |
||||||||||||||
|
Less: allowance allocated to acquired loans |
(134) |
(134) |
(209) |
(159) |
(284) |
||||||||||||||
|
Adjusted allowance for loan losses (non-GAAP) |
$ |
22,279 |
$ |
20,918 |
$ |
19,305 |
$ |
20,428 |
$ |
20,374 |
|||||||||
|
Reconciliation of period end loans to adjusted period end loans: | |||||||||||||||||||
|
Loans, excluding Loans Held-for-Sale |
$ |
3,792,886 |
$ |
3,714,308 |
$ |
3,580,966 |
$ |
3,409,707 |
$ |
3,332,132 |
|||||||||
|
Less: indirect auto loans |
(1,698,879) |
(1,719,670) |
(1,716,156) |
(1,609,678) |
(1,531,761) |
||||||||||||||
|
Less: acquired loans |
(165,303) |
(178,496) |
(196,567) |
(216,994) |
(230,256) |
||||||||||||||
|
Adjusted total loans (non-GAAP) |
$ |
1,928,704 |
$ |
1,816,142 |
$ |
1,668,243 |
$ |
1,583,035 |
$ |
1,570,115 |
|||||||||
|
Allowance to total loans (GAAP) |
0.83 |
% |
0.83 |
% |
0.83 |
% |
0.90 |
% |
0.91 |
% | |||||||||
|
Adjusted allowance to adjusted total loans (non-GAAP) |
1.16 |
% |
1.15 |
% |
1.16 |
% |
1.29 |
% |
1.30 |
% | |||||||||
|
Reconciliation of book value per common share to tangible book value per common share: | |||||||||||||||||||
|
Shareholders' equity |
$ |
420,962 |
$ |
410,744 |
$ |
401,632 |
$ |
388,068 |
$ |
379,399 |
|||||||||
|
Less: intangible assets |
(11,751) |
(12,028) |
(12,306) |
(12,625) |
(12,966) |
||||||||||||||
|
Tangible shareholders' equity |
$ |
409,211 |
$ |
398,716 |
$ |
389,326 |
$ |
375,443 |
$ |
366,433 |
|||||||||
|
End of period common shares outstanding |
27,191,787 |
27,034,255 |
27,019,201 |
26,815,287 |
26,702,665 |
||||||||||||||
|
Book value per common share (GAAP) |
$ |
15.48 |
$ |
15.19 |
$ |
14.86 |
$ |
14.47 |
$ |
14.21 |
|||||||||
|
Tangible book value per common share (non-GAAP) |
15.05 |
14.75 |
14.41 |
14.00 |
13.72 |
||||||||||||||
Contacts:
Martha Fleming, Charles D. Christy
Fidelity Southern Corporation (404) 240-1504
SOURCE Fidelity Southern Corporation
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