Market Overview

Fidelity Southern Corporation Earns Record $12.5 Million In Second Quarter

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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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fidelity-southern-corporation-earns-record-125-million-in-second-quarter-300114508.html

SOURCE Fidelity Southern Corporation

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