Market Overview

Fidelity Southern Corporation Earns $9.2 Million in Third Quarter

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ATLANTA, Oct. 15, 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 nine months ended September 30, 2015.

KEY RESULTS

  • Net income of $9.2 million and $32.4 million, or $0.39 and $1.42 per diluted share, for the quarter and nine months ended September 30, 2015
  • Return on Average Assets of 1.07% and 1.33% for the quarter and nine months ended September 30, 2015
  • Loan portfolio increased by $96.1 million, or 3.3%, during the quarter and $583.2 million, or 24.3%, year over year, to $3.0 billion
  • Loans serviced for others grew by $485.3 million, or 6.7%, during the quarter and $1.5 billion, or 23.9%, year over year, to $7.8 billion
  • Total deposits increased by $272.8 million or 10.3%, during the quarter and $452.7 million, or 18.4%, year over year, to $2.9 billion
  • In September 2015, the Bank acquired eight branches from First Bank, a Missouri bank, in the Sarasota-Bradenton, Florida area with total deposits of $151.3 million and loans of $30.2 million
  • Subsequent to quarter end, the Bank acquired approximately $255 million in assets, including $162 million in loans, and assumed approximately $280 million in customer deposits of The Bank of Georgia under an FDIC assisted transaction in October 2015

Fidelity's Chairman, Jim Miller, said, "We continue to earn our way in a zero interest rate environment focused on a good rate of return for our shareholders and on making credit more widely available.  We opened branches in Berkeley Lake and Snellville and eight offices in Sarasota-Bradenton, then in October purchased from the FDIC The Bank of Georgia and its seven offices.  The run up in mortgage and indirect gave us spectacular income last quarter but slowed in the third quarter.  However, our mortgage platform appears uniquely attractive in the industry.  Significant producers joined us in Virginia, the Carolinas, and Florida and production will continue to expand year over year.  Fidelity's strategy of steady sustainable growth and superior income continues."

BALANCE SHEET

Total assets at September 30, 2015, grew to $3.5 billion, an increase of $124.5 million, or 3.7%, compared to June 30, 2015, and $637.9 million, or 22.3%, compared to September 30, 2014.  These increases are primarily attributable to an increase in loan production, mainly in indirect and mortgage loans held for investment. 

The acquisition of eight branches in Florida in September 2015 from First Bank, a Missouri bank, increased the deposit base by $151.3 million and added loans of $30.2 million. The cash from the acquired deposits was used to decrease other borrowings, which decreased $166.3 million during the quarter.

Loans

Total loans held for investment at September 30, 2015, grew to $2.6 billion, an increase of $230.7 million, or 9.6%, compared to June 30, 2015, and $568.0 million, or 27.4%, compared to September 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 $118.0 million and $312.2 million, or 9.2% and 28.7%, respectively, and mortgage loans increased by $59.9 million and $164.0 million, or 20.1% and 84.6%, respectively, compared to June 30, 2015 and September 30, 2014.

Servicing rights showed steady growth as well, growing to $82.7 million at September 30, 2015, an increase of $5.0 million, or 6.5%, compared to June 30, 2015, and $20.5 million, or 32.9%, compared to September 30, 2014.

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)

September 30,
2015


June 30,
2015


September 30,
2014


Commercial

$

554,242



$

532,431



$

532,466



SBA

148,961



150,117



150,078



Construction

151,280



141,914



111,477



Indirect automobile

1,483,378



1,405,266



1,200,523



Installment

13,758



13,162



15,739



Residential mortgage

510,814



450,173



285,743



Home equity lines of credit

93,675



85,053



74,872



Total average loans (including HFS)

$

2,956,108



$

2,778,116



$

2,370,898



Deposits

Total deposits at September 30, 2015, of $2.9 billion increased $272.8 million, or 10.3%, compared to June 30, 2015, and $452.7 million, or 18.4%, compared to September 30, 2014. 

The year over year net increase occurred primarily due to organic growth of $263.2 million, as well as the acquisition of deposits from eight branches in Florida during September 2015 of $151.3 million, and one branch in Florida during January 2015 of $38.2 million.

Time deposits increased by $72.7 million, or 8.6%, during the quarter and $186.4 million, or 25.6%, year over year. The change occurred primarily due to $43.2 million in time deposits acquired during the third quarter of 2015. Brokered deposits increased $20.0 million for the quarter and $78.2 million year over year, which were generally used to fund loan growth. The remaining increase is due to organic growth in time deposits.

Average core deposits, including noninterest-bearing demand deposits, grew by $71.6 million, or 4.0%, during the quarter and $261.8 million, or 16.3%, year over year, particularly in commercial accounts and through the acquisition of branch deposits discussed above.

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


For the Quarter Ended


September 30, 2015


June 30, 2015


September 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

$

677.0



%


24.8

%


$

650.5



%


24.8

%


$

574.8



%


25.4

%

Interest-bearing deposits

881.5



0.25

%


32.3

%


843.2



0.24

%


32.1

%


712.1



0.24

%


31.5

%

Savings deposits

308.5



0.34

%


11.3

%


301.6



0.33

%


11.5

%


318.3



0.34

%


14.1

%

Time deposits

864.5



0.94

%


31.6

%


829.1



0.94

%


31.6

%


657.5



0.95

%


29.0

%

    Total average deposits

$

2,731.5



0.42

%


100.0

%


$

2,624.4



0.41

%


100.0

%


$

2,262.7



0.40

%


100.0

%



















Borrowings

Other borrowings decreased by $166.3 million, or 54.8%, during the quarter and increased $60.8 million, or 79.6%, year over year.  The quarterly decrease occurred due to the cash received in the acquisition of First Bank deposits used to pay off other borrowings, and the year over year increase occurred primarily to fund growth in loans noted above.

Subordinated debt increased by $74.0 million 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 $29.6 million and $83.6 million for the quarter and nine months ended September 30, 2015, respectively, an increase of $3.7 million and $8.6 million, or 14.3% and 11.4%, respectively, as compared to the same periods in 2014.  The increase was primarily due to a year over year increase in average loans of $589.7 million, or 26.7%, mainly in the indirect and mortgage portfolios, partially offset by a decrease in the yield on loans of 31 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 $2.1 million, primarily due to a $178.0 million increase in average loans.

Interest Expense

Interest expense was $4.5 million and $10.9 million for the quarter and nine months ended September 30, 2015, an increase of $1.7 million and $2.7 million, or 63.5% and 32.9%, respectively, as compared to the same periods in 2014.  These increases occurred primarily due to an increase in average other borrowings of $49.2 million and $115.0 million for the quarter and nine months ended September 30, 2015, compared to the same periods in 2014, used to fund growth in average loans, as well as an increase in average subordinated debt due to the addition of $75 million in subordinated debt in May 2015.

On a linked-quarter basis, interest expense increased by $958,000, or 27.4%, primarily due to the increase in the average balance of subordinated debt of $47.1 million for the quarter.

Net Interest Margin

The net interest margin was 3.16% and 3.25% for the quarter and nine months ended September 30, 2015, compared to 3.56% and 3.67% 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. Although the net interest margin decreased year over year, net interest income rose to $25.2 million and $73.0 million for the quarter and nine months ended September 30, 2015, compared to $23.3 million and $67.0 million  for the same periods in 2014. These increases were due primarily to an increase of 22.0% and 22.9% in interest earning assets for the quarter and nine months ended September 30, 2015 compared to the same periods in 2014.

On a linked-quarter basis, the net interest margin remained relatively consistent, with a change of 8 basis points for the quarter.

Noninterest Income

Noninterest income was $30.6 million and $99.4 million for the quarter and nine months ended September 30, 2015, an increase of $2.7 million and $28.7 million, or 9.7% and 40.7%, respectively, as compared to the same periods in 2014.  The increases were primarily related to increases in gains on the sale of mortgage loans as compared to the prior year.

Noninterest income from mortgage banking activities increased by $4.7 million and $26.4 million for the quarter and nine months, respectively, as gains on mortgage loan sales were $5.5 million and $23.4 million higher, for the quarter and nine months, respectively as compared to the same periods in 2014. Mortgage loan production for the quarter increased by $167.5 million, or 31.2%, to $703.6 million while mortgage loan sales for the quarter increased by $208.1 million, or 38.8%, to $744.6 million, as compared to the same period in 2014.  Mortgage loan servicing revenue increased by $848,000 and $2.3 million to $4.1 million and $11.5 million for the quarter and nine months, respectively, as compared to the same periods in 2014, as the mortgage servicing portfolio grew to $6.4 billion at September 30, 2015.

Noninterest income from indirect lending activities was $4.0 million and $15.0 million for the quarter and nine months, a decrease of $2.3 million and increase of  $0.4 million, respectively, as compared to the same periods in 2014.  Gains on sales of indirect loans decreased by $2.6 million and $806,000 for the quarter and nine months, respectively, compared to the same periods in 2014 as demand for loan sales decreased as compared to the prior year. Indirect servicing fee income increased by $522,000 and $1.7 million for the quarter and nine months, as compared to the same periods in 2014, as the indirect servicing portfolio grew to $1.1 billion at September 30, 2015.

On a linked-quarter basis, noninterest income decreased by $6.1 million, or 16.6%, primarily attributable to a decrease in income from mortgage banking activities of $3.8 million, a decrease in income from indirect lending activities of $1.0 million, and a decrease of $1.5 million in other income, primarily due to a change in the gain on sale of real estate owned of $1.0 million.  This decrease in noninterest income occurred primarily due to mortgage servicing rights impairment of $2.2 million at September 30, 2015 compared to a recovery of $2.6 million at June 30, 2015. See "Analysis of Mortgage Lending" tables below.

Noninterest Expense

Noninterest expense was $40.0 million and $119.8 million for the quarter and nine months ended September 30, 2015, an increase of $4.3 million and $17.7 million, or 12.2% and 17.4%, respectively, as compared to the same periods in 2014. 

During the quarter, Fidelity Bank continued its strategy of increasing its footprint across a larger geographic area, and increasing production as well. This was the primary reason for increased noninterest expense in many areas. Salaries, benefits and commissions for the quarter and nine months increased $2.7 million and $14.0 million, or 11.99% and 22.03%,  compared to the same periods in 2014. Occupancy expense for the quarter and nine months increased $816,000 and $1.7 million, or 23.2% and 18.2%, compared to the same periods in 2014. Other noninterest expense for the quarter and nine months ended September 30, 2015 increased by $731,000 and $1.7 million, or 8.2% and 6.5%, compared to the same periods in 2014.

On a linked-quarter basis, noninterest expense decreased by $1.1 million, or 2.7%, primarily due to a $2.4 million decrease in salaries, benefits and commissions, primarily due to decreased mortgage loan production,  partially offset by an increase of $816,000 in occupancy costs and an increase of $479,000 in other expenses.

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 Nine Months Ended

($ in thousands, except per share data)

September 30,
 2015


June 30,
 2015


September 30,
 2014


September 30,
 2015


September 30,
 2014

INCOME STATEMENT DATA:










Interest income

$

29,597



$

27,516



$

25,891



$

83,599



$

75,034


Interest expense

4,460



3,502



2,727



10,907



8,208


Net interest income

25,137



24,014



23,164



72,692



66,826


Provision for loan losses

1,328



(182)



1,859



1,254



(25)


Noninterest income

30,619



36,695



27,908



99,352



70,609


Noninterest expense

40,049



41,165



35,710



119,849



102,109


Net income

9,217



12,451



8,802



32,358



22,823


PERFORMANCE:










Earnings per common share - basic

$

0.41



$

0.58



$

0.41



$

1.48



$

1.07


Earnings per common share - diluted

0.39



0.54



0.38



1.42



0.97


Book value per common share

$

12.83



$

12.90



$

12.10



$

12.83



$

12.10


Tangible book value per common share

12.55



12.70



11.92



12.55



11.92


Cash dividends paid per common share

$

0.10



$

0.10



$

0.09



$

0.29



$

0.21


Return on average assets

1.07

%


1.55

%


1.26

%


1.33

%


1.15

%

Return on average shareholders' equity

12.69

%


17.97

%


13.79

%


15.56

%


12.46

%

Net interest margin

3.16

%


3.24

%


3.56

%


3.25

%


3.67

%

END OF PERIOD BALANCE SHEET SUMMARY:










Total assets

$

3,499,465



$

3,374,938



$

2,861,569



$

3,499,465



$

2,861,569


Earning assets

3,237,110



3,118,065



2,652,462



3,237,110



2,652,462


Loans, excluding Loans Held-for-Sale

2,641,814



2,411,143



2,073,803



2,641,814



2,073,803


Total loans

2,981,465



2,885,410



2,398,245



2,981,465



2,398,245


Total deposits

2,912,038



2,639,248



2,459,291



2,912,038



2,459,291


Shareholders' equity

295,286



285,946



258,163



295,286



258,163


Assets serviced for others

7,777,854



7,292,561



6,275,893



7,777,854



6,275,893


DAILY AVERAGE BALANCE SHEET SUMMARY:










Total assets

$

3,423,373



$

3,228,867



$

2,797,766



$

3,251,132



$

2,646,238


Earning assets

3,176,957



2,980,741



2,593,380



3,013,603



2,449,236


Loans, excluding Loans Held-for-Sale

2,516,582



2,361,146



2,045,464



2,392,970



1,955,314


Total loans

2,956,109



2,778,117



2,370,899



2,798,024



1,924,265


Total deposits

2,731,407



2,624,412



2,262,679



2,629,670



2,207,149


Shareholders' equity

288,220



277,961



253,211



277,993



244,899


Assets serviced for others

7,521,391



7,104,630



6,013,788



7,125,599



5,622,007


ASSET QUALITY RATIOS:










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

0.05

%


(0.03)

%


0.40

%


0.10

%


0.24

%

Allowance to period-end loans

0.94

%


0.97

%


1.36

%


0.94

%


1.36

%

Nonperforming assets to total loans, ORE and repossessions

1.86

%


2.01

%


3.08

%


1.86

%


3.08

%

Allowance to nonperforming loans, ORE and repossessions

0.50x



0.48x



0.44x



0.50x



0.44x


SELECTED RATIOS:










Loans to total deposits

90.72

%


91.36

%


84.33

%


90.72

%


84.33

%

Average total loans to average earning assets

93.05

%


93.20

%


91.08

%


92.85

%


78.57

%

Noninterest income to total revenue

50.85

%


57.15

%


51.87

%


54.31

%


48.48

%

Leverage ratio

9.41

%


9.77

%


10.64

%


9.41

%


10.64

%

Common equity tier 1 capital

8.78

%


8.96

%


N/A



8.78

%


N/A


Tier 1 risk-based capital

10.21

%


10.46

%


11.84

%


10.21

%


11.84

%

Total risk-based capital

13.37

%


13.71

%


12.99

%


13.37

%


12.99

%

Average equity to average assets

8.42

%


8.61

%


9.05

%


8.55

%


9.25

%

 

 

 


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


($ in thousands)


September 30,
 2015


June 30,
 2015


September 30,
 2014

ASSETS







Cash and cash equivalents


$

87,373



$

80,716



$

91,565


Investment securities available-for-sale


155,749



140,878



156,331


Investment securities held-to-maturity


12,816



11,484



7,588


Loans held-for-sale


339,651



474,267



324,442


Loans


2,641,814



2,411,143



2,073,803


Allowance for loan losses


(24,750)



(23,425)



(28,297)


Loans, net of allowance for loan losses


2,617,064



2,387,718



2,045,506


Premises and equipment, net


69,356



65,485



59,650


Other real estate, net


14,707



16,070



26,999


Bank owned life insurance


66,008



65,511



34,279


Servicing rights


82,659



77,614



62,196


Other assets


54,082



55,195



53,013


Total assets


$

3,499,465



$

3,374,938



$

2,861,569









LIABILITIES







Deposits







Noninterest-bearing demand deposits


$

722,771



$

646,340



$

639,471


Interest-bearing deposits







  Demand and money market


956,149



850,314



778,645


  Savings


317,766



299,905



312,183


  Time deposits


915,352



842,689



728,992


    Total deposits


2,912,038



2,639,248



2,459,291


Other borrowings


137,186



303,521



76,402


Subordinated debt


120,289



120,277



46,297


Other liabilities


34,666



25,946



21,416


Total liabilities


3,204,179



3,088,992



2,603,406









SHAREHOLDERS' EQUITY







Preferred stock







Common stock


166,989



164,835



161,527


Accumulated other comprehensive income, net


2,702



2,472



2,367


Retained earnings


125,595



118,639



94,269


Total shareholders' equity


295,286



285,946



258,163


Total liabilities and shareholders' equity


$

3,499,465



$

3,374,938



$

2,861,569
















       


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)




For the Quarter Ended


For the Nine Months Ended

($ in thousands, except per share data)


September 30,
 2015


June 30,
 2015


September 30,
 2014


September 30,
 2015


September 30,
 2014

INTEREST INCOME











Loans, including fees


$

28,462



$

26,382



$

24,690



$

80,133



$

71,282


Investment securities


1,108



1,120



1,183



3,413



3,676


Federal funds sold and bank deposits


27



14



18



53



76


Total interest income


29,597



27,516



25,891



83,599



75,034


INTEREST EXPENSE











Deposits


2,866



2,683



2,282



8,041



7,098


Other borrowings


179



161



163



517



276


Subordinated debt


1,415



658



282



2,349



834


Total interest expense


4,460



3,502



2,727



10,907



8,208


Net interest income


25,137



24,014



23,164



72,692



66,826


Provision for loan losses


1,328



(182)



1,859



1,254



(25)


Net interest income after provision for loan losses


23,809



24,196



21,305



71,438



66,851


NONINTEREST INCOME











Service charges on deposit accounts


1,230



1,195



1,141



3,508



3,209


Other fees and charges


1,327



1,274



1,140



3,767



3,160


Mortgage banking activities


20,799



24,617



16,135



66,734



40,292


Indirect lending activities


4,037



5,031



6,303



15,047



14,610


SBA lending activities


1,494



1,364



1,479



3,788



3,682


Bank owned life insurance


496



500



313



1,488



1,369


Securities gains











Other


1,236



2,714



1,397



5,020



4,287


Total noninterest income


30,619



36,695



27,908



99,352



70,609


NONINTEREST EXPENSE











Salaries and employee benefits


17,800



19,668



17,022



56,290



49,080


Commissions


7,270



7,794



5,363



21,224



14,443


Occupancy


4,270



3,454



3,467



11,206



9,477


Communication


1,083



1,102



963



3,133



2,829


Other


9,626



9,147



8,895



27,996



26,280


Total noninterest expense


40,049



41,165



35,710



119,849



102,109


Income before income tax expense


14,379



19,726



13,503



50,941



35,351


Income tax expense


5,162



7,275



4,701



18,583



12,528


NET INCOME


$

9,217



$

12,451



$

8,802



$

32,358



$

22,823













EARNINGS PER SHARE:











Basic earnings per share


$

0.41



$

0.58



$

0.41



$

1.48



$

1.07


Diluted earnings per share


$

0.39



$

0.54



$

0.38



$

1.42



$

0.97


Weighted average common shares outstanding-basic


22,604



21,456



21,318



21,818



21,302


Weighted average common shares outstanding-diluted


23,562



23,082



23,463



22,733



23,446













        


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)


($ in thousands)


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


September 30,
 2014

Commercial


$

579,319



$

533,853



$

519,062



$

524,145



$

524,419


SBA


138,078



138,819



138,198



134,766



143,302


      Total commercial and SBA loans


717,397



672,672



657,260



658,911



667,721


Construction loans


154,335



146,778



134,456



123,994



108,823


Indirect automobile


1,399,932



1,281,978



1,251,044



1,219,232



1,087,710


Installment


12,236



11,661



12,209



13,372



15,647


      Total consumer loans


1,412,168



1,293,639



1,263,253



1,232,604



1,103,357


Residential mortgage


248,697



210,777



180,424



158,348



119,292


Home equity lines of credit


109,217



87,277



82,188



79,449



74,610


 Total mortgage loans


357,914



298,054



262,612



237,797



193,902


 Loans


2,641,814



2,411,143



2,317,581



2,253,306



2,073,803













Loans held-for-sale:











Residential mortgage


218,308



310,792



241,974



181,424



161,775


SBA


11,343



13,475



13,543



12,511



17,667


Indirect automobile


110,000



150,000



150,000



175,000



145,000


     Total loans held-for-sale


339,651



474,267



405,517



368,935



324,442


          Total loans


$

2,981,465



$

2,885,410



$

2,723,098



$

2,622,241



$

2,398,245













Noncovered loans


$

2,617,990



$

2,385,489



$

2,287,284



$

2,218,493



$

2,036,097


Covered loans


23,824



25,654



30,297



34,813



37,706


Loans held-for-sale


339,651



474,267



405,517



368,935



324,442


          Total loans


$

2,981,465



$

2,885,410



$

2,723,098



$

2,622,241



$

2,398,245


       


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)



As of or for the Quarter Ended


($ in thousands)

September 30,
 2015


June 30,
 2015


September 30,
 2014


Balance at beginning of period

$

23,425



$

23,758



$

28,912



Net charge-offs/(recoveries):







Commercial and SBA

(111)



(10)



1,337



Construction

(291)



(291)



(41)



Indirect automobile and installment loans

604



494



614



Mortgage

98



(3)



4



Covered

14



(298)



77



Acquired, noncovered

(1)



(52)



52



Total net charge-offs/(recoveries)

313



(160)



2,043



Provision for loan losses (1)

1,328



(183)



1,859



Increase/(decrease) in FDIC loss share receivable

310



(310)



(431)



Balance at end of period

$

24,750



$

23,425



$

28,297










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

0.05

%


(0.03)

%


0.40

%


Average loans

$

2,516,582



$

2,361,146



$

2,045,464



Allowance for loan losses as a percentage of loans

0.94

%


0.97

%


1.36

%









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






         

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)


($ in thousands)

September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


September 30,
 2014


NONPERFORMING ASSETS











Nonaccrual loans

$

29,374



$

30,756



$

32,432



$

34,856



$

36,489



Loans past due 90 days or more and still accruing

3,968



836



1,006



827





Repossessions

1,435



1,041



1,002



1,183



1,210



Other real estate (ORE)

14,707



16,070



19,988



22,564



26,999



Nonperforming assets

$

49,484



$

48,703



$

54,428



$

59,430



$

64,698



NONPERFORMING ASSET RATIOS











Loans 30-89 days past due

$

7,018



$

3,653



$

3,934



$

4,565



$

2,885



Loans 30-89 days past due to loans

0.24

%


0.15

%


0.17

%


0.20

%


0.14

%


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

0.13

%


0.03

%


0.04

%


0.04

%


%


Nonperforming assets to loans, ORE, and repossessions

1.86

%


2.01

%


2.33

%


2.61

%


3.08

%













ASSET QUALITY RATIOS











Classified Asset Ratio (3)

17.56

%


18.59

%


20.45

%


21.49

%


25.36

%


Nonperforming loans as a % of loans

1.26

%


1.31

%


1.44

%


1.58

%


1.76

%


ALL to nonperforming loans

74.23

%


74.15

%


71.05

%


71.32

%


77.55

%


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

0.05

%


(0.03)

%


0.29

%


0.50

%


0.40

%


ALL as a % of loans

0.94

%


0.97

%


1.03

%


1.13

%


1.36

%













CLASSIFIED ASSETS











Classified loans (1)

$

47,906



$

49,561



$

52,684



$

53,415



$

61,161



ORE and repossessions

12,750



13,209



14,508



17,218



21,287



Total classified assets (2)

$

60,656



$

62,770



$

67,192



$

70,633



$

82,448














        (1) Amount of SBA guarantee included

$

3,970



$

5,256



$

5,802



$

5,271



$

7,590



       (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 the sum 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)


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


September 30,
 2014


Average loans outstanding (1)


$

1,486,077



$

1,407,848



$

1,389,570



$

1,329,306



$

1,204,314



Loans serviced for others


$

1,117,721



$

1,091,644



$

1,025,569



$

902,823



$

863,931



Past due loans:













Amount 30+ days past due


$

1,381



$

1,098



$

1,222



$

1,547



$

1,573




Number 30+ days past due


170



128



132



143



136



30+ day performing delinquency rate (2)


0.10

%


0.08

%


0.09

%


0.11

%


0.13

%


Nonperforming loans


$

810



$

527



$

778



$

715



$

795



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


0.06

%


0.04

%


0.06

%


0.05

%


0.06

%


Net charge-offs


$

605



$

495



$

866



$

901



$

612



Net charge-off rate (3)


0.17

%


0.16

%


0.36

%


0.30

%


0.23

%


Number of vehicles repossessed during the period


120



106



134



128



136



Average beacon score of portfolio


755



755



755



753



751



Production by state:













Alabama


$

20,886



$

18,831



$

22,056



$

26,780



$

27,845




Arkansas


46,704



39,174



35,786



41,912



47,894




North Carolina


21,484



20,536



21,809



25,059



29,781




South Carolina


13,339



16,021



16,273



16,132



22,189




Florida


98,087



91,725



96,688



102,465



128,729




Georgia


54,497



52,735



60,402



69,288



72,423




Mississippi


23,424



21,281



19,537



23,736



30,525




Tennessee


16,946



19,295



19,479



22,880



28,684




Virginia


14,829



16,349



16,919



18,590



20,903




Texas


37,673



35,739



41,527



50,987



49,868




Louisiana


24,490



24,095



21,042



13,531



12,597





Total production by state


$

372,359



$

355,781



$

371,518



$

411,360



$

471,438



Loan sales


$

142,132



$

177,820



$

219,784



$

121,973



$

244,556



Portfolio yield (1)


2.75

%


2.79

%


2.88

%


3.07

%


3.10

%


















(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)


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


September 30,
 2014

Average loans outstanding (1)


$

511,317



$

449,097



$

337,122



$

300,652



$

286,407


Loans serviced for others


$

6,393,874



$

5,942,063



$

5,622,102



$

5,413,781



$

5,173,282


% of loan production for purchases


81.40

%


73.95

%


58.82

%


74.93

%


82.25

%

% of loan production for refinance loans


18.60

%


26.05

%


41.18

%


25.07

%


17.75

%

Production by region:












Georgia


$

424,554



$

468,795



$

342,121



$

311,846



$

316,359



Florida/Alabama


53,815



58,607



51,590



42,485



31,642



Virginia/Maryland


147,387



182,850



158,289



126,151



127,721



North and South Carolina (2)


11,398



8,002



3,858







Total retail


637,154



718,254



555,858



480,482



475,722



Wholesale


66,490



70,169



57,125



34,961



60,393




Total production by region


$

703,644



$

788,423



$

612,983



$

515,443



$

536,115


Loan sales


$

744,621



$

665,738



$

552,085



$

475,930



$

536,490









































INCOME FROM MORTGAGE BANKING ACTIVITIES

(UNAUDITED)


















For the Quarter Ended

(in thousands)


September 30,
 2015


June 30,
 2015


March 31,
 2015


December 31,
 2014


September 30,
 2014

Marketing gain, net


$

17,573



$

17,099



$

19,746



$

12,076



$

12,108


Origination points and fees


3,871



3,726



2,757



2,744



2,943


Loan servicing revenue


4,059



3,762



3,646



3,473



3,211


MSR amortization and impairment adjustments


(4,704)



30



(4,830)



(2,804)



(2,127)


Total mortgage banking activities


$

20,799



$

24,617



$

21,319



$

15,489



$

16,135




























Noncash items included in
income from mortgage banking
activities:











Capitalized MSR, net


$

6,461



$

5,829



$

4,429



$

3,333



$

4,062


Valuation on MSR


(2,215)



2,611



(2,469)



(709)



(156)


Mark to market adjustments


(1,028)



(1,098)



3,967



588



(1,747)


   Total noncash items


$

3,218



$

7,342



$

5,927



$

3,212



$

2,159















(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


September 30, 2015


September 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)

$

2,956,109



$

28,509



3.83

%


$

2,370,899



$

24,732



4.14

%

Investment securities (1)

163,523



1,150



2.79

%


177,811



1,237



2.76

%

Federal funds sold and bank deposits

45,265



27



0.24

%


44,670



18



0.16

%

Total interest-earning assets

3,164,897



29,686



3.72

%


2,593,380



25,987



3.98

%

Noninterest-earning assets:












Cash and due from banks

15,101







10,881






Allowance for loan losses

(23,830)







(28,570)






Premises and equipment, net

66,709







52,790






Other real estate

15,866







25,384






Other assets

184,630







143,901






Total assets

$

3,423,373







$

2,797,766






Liabilities and shareholders' equity












Interest-bearing liabilities:












Demand deposits

$

881,456



$

548



0.25

%


$

712,121



$

432



0.24

%

Savings deposits

308,503



266



0.34

%


318,261



272



0.34

%

Time deposits

864,472



2,052



0.94

%


657,527



1,578



0.95

%

Total interest-bearing deposits

2,054,431



2,866



0.55

%


1,687,909



2,282



0.54

%

Other borrowings

254,558



179



0.28

%


205,377



163



0.31

%

Subordinated debt

120,279



1,415



4.67

%


46,297



282



2.42

%

Total interest-bearing liabilities

2,429,268



4,460



0.73

%


1,939,583



2,727



0.56

%

Noninterest-bearing liabilities and shareholders' equity:












Demand deposits

676,976







574,763






Other liabilities

28,909







30,209






Shareholders' equity

288,220







253,211






Total liabilities and shareholders' equity

$

3,423,373







$

2,797,766






Net interest income/spread



$

25,226



2.99

%




$

23,260



3.42

%

Net interest margin





3.16

%






3.56

%













(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 Nine Months Ended


September 30, 2015


September 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)

$

2,798,024



$

80,270



3.84

%


$

2,208,317



$

71,404



4.32

%

Investment securities(1)

162,568



3,551



2.92

%


177,169



3,741



2.82

%

Fed funds sold and interest-bearing deposits

42,017



53



0.17

%


57,061



76



0.18

%

Total interest-earning assets

3,002,609



83,874



3.73

%


2,442,547



75,221



4.12

%

Noninterest-earning assets:












Cash and due from banks

14,996







13,991






Allowance for loan losses

(24,282)







(31,049)






Premises and equipment, net

63,191







50,028






Other real estate

18,786







26,759






Other assets

175,833







143,973






Total assets

$

3,251,133







$

2,646,249


















Liabilities and shareholders' equity












Interest-bearing liabilities:












Demand deposits

$

846,090



$

1,495



0.24

%


$

701,740



$

1,405



0.27

%

Savings deposits

306,495



768



0.34

%


314,025



862



0.37

%

Time deposits

832,423



5,778



0.93

%


661,931



4,831



0.98

%

Total interest-bearing deposits

1,985,008



8,041



0.54

%


1,677,696



7,098



0.57

%

Other borrowings

236,213



517



0.29

%


121,208



276



0.30

%

Subordinated debt

80,193



2,349



3.92

%


46,297



834



2.40

%

Total interest-bearing liabilities

2,301,414



10,907



0.63

%


1,845,201



8,208



0.59

%

Noninterest-bearing liabilities and shareholders' equity:












Demand deposits

644,662







529,450






Other liabilities

27,064







26,697






Shareholders' equity

277,993







244,901






Total liabilities and shareholders' equity

$

3,251,133







$

2,646,249






Net interest income/spread



$

72,967



3.10

%




$

67,013



3.53

%

Net interest margin





3.25

%






3.67

%


(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-92-million-in-third-quarter-300160547.html

SOURCE Fidelity Southern Corporation

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