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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