Market Overview

Fidelity Southern Corporation Earns $6.8 Million In Fourth Quarter; Record $39.1 Million In 2015

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ATLANTA, Jan. 21, 2016 /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 year ended December 31, 2015.

KEY RESULTS

  • Net income of $6.8 million and $39.1 million, or $0.28 and $1.64 per diluted share, for the quarter and year ended December 31, 2015
  • Net interest margin increased 7 basis points during the quarter to 3.23%
  • Total assets at December 31, 2015 of $3.8 billion increased 10.0% in the fourth quarter and 24.8% in 2015
  • Loan portfolio increased by $313.3 million, or 10.5%, during the quarter and $672.5 million, or 25.6%, year over year, to $3.3 billion
  • Loans serviced for others grew by $255.6 million, or 3.3%, during the quarter and $1.5 billion, or 22.4%, year over year, to $8.0 billion
  • Total deposits increased by $267.5 million or 9.2%, during the quarter and $721.5 million, or 29.4%, year over year, to $3.2 billion
  • Total revenues of $61.7 million and $244.7 million for the quarter and year ended December 31, 2015
  • Return on Average Assets of 0.72% and 1.16% for the quarter and year ended December 31, 2015
  • On October 2, 2015, the Bank acquired approximately $281 million in assets, including $145 million in loans, and assumed approximately $266 million in customer deposits of The Bank of Georgia under an FDIC-assisted transaction
  • On October 26, 2015, the Company announced a Purchase and Assumption agreement with American Enterprise Bankshares, Inc. ("AEB") in which the Company will acquire all of the common stock of AEB. The transaction is expected to close in the first quarter of 2016. As of September 30, 2015, AEB reported approximately $205 million in assets, $156 million in loans, and $177 million in deposits

Fidelity's Chairman, Jim Miller, said, "We are optimistic about 2016.  We are taking market share so earnings have remained strong, even in an economy which seems mostly fueled by real estate, and also with help from the consumer.  Diversity of product has certainly helped as has expansion of our service teams with more branches and locations around the Southeast, which lets us offer our relationship banking to more companies and individuals.  Build-out of Trust Services continues and will contribute this year.  As we focus on profitability, more branching is planned, as well as growth of our recent acquisitions."

BALANCE SHEET

Total assets at December 31, 2015, grew to $3.8 billion, an increase of $349.6 million, or 10.0%, compared to September 30, 2015, and $763.9 million, or 24.8%, compared to December 31, 2014. These increases are primarily attributable to acquisitions made during the quarter and year, as well as organic growth in the indirect and mortgage loan portfolios held for investment.

On October 2, 2015, the Bank acquired substantially all the assets and liabilities of The Bank of Georgia in a Purchase and Assumption agreement with the FDIC. The Bank received $266 million in deposits, $144.7 million in loans at fair value, $2.2 million in core deposit intangible, $9.0 million in premises and equipment, and $6.4 million in other real estate. The transaction was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. Fair values are subject to refinement for up to one year after the closing date of the acquisition.

Loans

Total loans held for investment at December 31, 2015, grew to $2.9 billion, an increase of $255.1 million, or 9.7%, compared to September 30, 2015, and $643.6 million, or 28.6%, compared to December 31, 2014. The quarter and year over year increase includes the $144.7 million in loans acquired from The Bank of Georgia in the fourth quarter.

Indirect loans grew by $49.5 million and $230.2 million, or 3.5% and 18.9%, respectively, as the Bank continued to expand in the auto loan market. Mortgage loans increased by $59.2 million and $179.1 million, or 16.5% and 75.3%, respectively, compared to September 30, 2015 and December 31, 2014. $31.3 million of this increase related to organic growth, with the remaining $27.9 million added as part of The Bank of Georgia FDIC-assisted transaction. Commercial loans increased by $124.0 million and $179.1 million, or 21.4% and 34.2%, respectively, compared to September 30, 2015 and December 31, 2014. $31.8 million of the increase in commercial loans for the quarter was related to organic growth, with the remaining $92.2 million added as part of The Bank of Georgia FDIC-assisted transaction.

Total loans held for sale at December 31, 2015, grew to $397.8 million, an increase of $58.2 million, or 17.1%, compared to September 30, 2015, and $28.9 million, or 7.8%, compared to December 31, 2014. The quarter and year over year increases are due to increased production in indirect and mortgage loans held for sale.

Servicing rights showed steady growth as well, growing to $84.9 million at December 31, 2015, a net increase of $2.3 million, or 2.8%, compared to September 30, 2015, and $20.0 million, or 30.9%, compared to December 31, 2014, as residential mortgage, SBA, and indirect loan sales continue to grow.

Asset Quality

Nonaccrual loans increased $5.0 million for the quarter, to $34.3 million. This increase was primarily due to nonaccrual loans acquired as part of The Bank of Georgia FDIC-assisted transaction of $6.4 million, offset by a decrease in the existing nonaccrual loan portfolio of $1.4 million.

Other real estate increased $4.0 million for the quarter, to $18.7 million. This increase was primarily due to other real estate acquired as part of The Bank of Georgia FDIC-assisted transaction of $6.4 million, offset by a decrease in the existing other real estate portfolio of $2.4 million.

Classified loans increased $36.2 million for the quarter, to $84.1 million. This increase was primarily due to classified loans acquired as part of The Bank of Georgia FDIC-assisted transaction of $47.5 million, offset by a decrease in the existing classified loan portfolio of $11.3 million.

Deposits

Total deposits at December 31, 2015, of $3.2 billion increased $267.5 million, or 9.2%, compared to September 30, 2015, and $721.5 million, or 29.4%, compared to December 31, 2014.

The year over year net increase occurred primarily due to organic growth of $253.8 million, as well as the acquisition of deposits from The Bank of Georgia FDIC-assisted transaction during October 2015 of $278.2 million, eight branches in Florida during September 2015 of $151.3 million, and one branch in Florida during January 2015 of $38.2 million.

Average core deposits, including noninterest-bearing demand deposits, grew by $284.3 million, or 15.2%, during the quarter and $476.4 million, or 28.4%, year over year, increasing to $2.2 billion, particularly in commercial accounts and through the acquisition of branch deposits discussed above.

Borrowings

Other borrowings increased by $72.5 million, or 52.9%, during the quarter and decreased $81.4 million, or 27.9%, year over year. The quarterly and year over year fluctuations occurred due to changes in short-term borrowings. The Bank manages short-term liquidity needs through short-term FHLB advances and Fed funds purchased.

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 acquisitions.

INCOME STATEMENT

Interest Income

Interest income was $33.0 million and $116.6 million for the quarter and year ended December 31, 2015, respectively, an increase of $6.4 million and $15.0 million, or 24.1% and 14.7%, respectively, as compared to the same periods in 2014. The increase was primarily due to a year over year increase in average loans of $611.6 million, or 26.8%, mainly in the indirect and mortgage portfolios, while the yield on loans decreased by 9 basis points, from 4.02% to 3.93%, as new loans, on average, were originated at lower yields over the previous twelve months.

On a linked-quarter basis, interest income increased by $3.4 million, or 10 basis points, primarily due to a $230.0 million increase in average loans. This increase was primarily due to an organic growth of $52.8 million, as well as the acquisition of $144.7 million in loans from The Bank of Georgia in the fourth quarter of 2015, and $30.2 million in loans from First Bank late in the third quarter of 2015.

Interest Expense

Interest expense was $4.9 million and $15.8 million for the quarter and year ended December 31, 2015, an increase of $1.9 million and $4.6 million, or 62.3% and 40.8%, respectively, as compared to the same periods in 2014. These increases occurred primarily due to an increase in average subordinated debt of $74.0 million and $44.0 million for the quarter and year ended December 31, 2015, compared to the same periods in 2014, due to the addition of $75 million in subordinated debt in May 2015, as well as an increase in average interest bearing deposits of $535.9 million and $364.9 million for the quarter and year ended December 31, 2015, compared to the same periods in 2014. Part of this increase in average interest bearing deposits was due to acquisitions, with $208.2 million in interest bearing deposits added in the fourth quarter from The Bank of Georgia, and $365.8 million added through the year from all acquisitions.

On a linked-quarter basis, interest expense increased by $437,000, or 9.8%, primarily due to the increase in the average balance of interest bearing deposits of $330.2 million for the quarter. This increase includes $208.2 million in interest-bearing deposits acquired from The Bank of Georgia FDIC-assisted transaction during the fourth quarter of 2015, and $124.5 million in interest-bearing deposits acquired from First Bank late in the third quarter of 2015.

Provision for Loan Losses

The provision for loan losses was $3.1 million and $4.4 million for the quarter and year ended December 31, 2015, an increase of $2.5 million and $3.8 million, respectively, as compared to the same periods in 2014. These increases are due to the net growth in the total loan portfolio, excluding acquired loans, which increased $487.2 million compared to December 31, 2014, to $2.7 billion.

Net Interest Margin

The net interest margin was 3.23% and 3.24% for the quarter and year ended December 31, 2015, compared to 3.47% and 3.62% 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 (tax equivalent) rose to $28.3 million and $101.2 million for the quarter and year ended December 31, 2015, compared to $23.7 million and $90.8 million for the same periods in 2014. These increases were due primarily to an increase of 27.8% and 24.3% in interest earning assets for the quarter and year ended December 31, 2015 compared to the same periods in 2014, due to a combination of organic growth and acquisitions previously described.

On a linked-quarter basis, the net interest margin increased 7 basis points. This increase is primarily due to loans acquired in The Bank of Georgia FDIC-assisted transaction in the fourth quarter of 2015 having higher yields than the existing portfolio.

Noninterest Income

Noninterest income was $28.7 million and $128.0 million for the quarter and year ended December 31, 2015, an increase of $4.0 million and $32.7 million, or 16.0% and 34.3%, respectively, as compared to the same periods in 2014. The increases were primarily related to increases in mortgage banking income as compared to the prior year.

Noninterest income from mortgage banking activities increased by $3.3 million and $29.8 million for the quarter and year, respectively, as compared to the same periods in 2014. Gains on mortgage loan sales increased $3.3 million and $26.7 million for the quarter and year, respectively, as compared to the same periods in 2014. Quarterly mortgage loan production increased by $52.4 million, or 10.2%, to $567.9 million while quarterly mortgage loan sales increased by $44.8 million, or 9.4%, to $520.7 million, as compared to the same periods in 2014. Year over year mortgage loan production increased by $739.2 million, or 38.2%, to $2.7 billion while year over year mortgage loan sales increased by $696.4 million, or 39.0%, to $2.5 billion.

On a linked-quarter basis, noninterest income decreased by $1.9 million, or 6.3%, primarily attributable to a decrease in income from mortgage banking activities of $2.0 million, due to lower gain on sale of mortgage servicing in the fourth quarter of 2015. See "Analysis of Mortgage Lending" tables below. This decrease was partially offset by an increase in service charges and other fees of $479,000, or 18.7%, as a result of growth in loan and deposit accounts.

Noninterest Expense

Noninterest expense was $43.2 million and $163.1 million for the quarter and year ended December 31, 2015, an increase of $6.6 million and $24.3 million, or 18.0% and 17.5%, 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. The Bank of Georgia FDIC-assisted transaction in October 2015 was the primary reason for increased noninterest expense in many areas. Salaries, benefits and commissions for the quarter and year increased $3.2 million and $17.2 million, or 13.8% and 19.8%, compared to the same periods in 2014. Occupancy expense for the quarter and year increased $1.3 million and $3.0 million, or 37.1% and 23.4%, compared to the same periods in 2014. Other noninterest expense for the quarter and year ended December 31, 2015 increased by $1.9 million and $3.6 million, or 22.4% and 10.4%, compared to the same periods in 2014, which is primarily due to increases associated with acquisitions and new locations.

On a linked-quarter basis, noninterest expense increased by $3.2 million, or 8.0%, primarily due to a $1.6 million increase in salaries, benefits and commissions, primarily due to The Bank of Georgia FDIC-assisted transaction in the fourth quarter of 2015 and First Bank branch acquisition late in the third quarter of 2015 increasing the Bank's headcount, along with an increase of $541,000 in occupancy costs due to the increased number of locations due to acquisition and expansion.

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


($ in thousands, except per share data)

December 31,
2015


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


INCOME STATEMENT DATA:











Interest income

$

33,043



$

29,597



$

27,516



$

26,486



$

26,633



Interest expense

4,897



4,460



3,502



2,945



3,018



Net interest income

28,146



25,137



24,014



23,541



23,615



Provision for loan losses

3,097



1,328



(182)



108



556



Noninterest income

28,676



30,619



36,695



32,038



24,711



Noninterest expense

43,237



40,049



41,165



38,635



36,645



Net income

6,777



9,217



12,451



10,690



7,213



PERFORMANCE:











Earnings per common share - basic

$

0.29



$

0.41



$

0.58



$

0.50



$

0.34



Earnings per common share - diluted

0.28



0.39



0.52



0.45



0.31



Total revenues

$

61,719



$

60,216



$

64,211



$

58,524



$

51,344



Book value per common share

$

13.03



$

12.83



$

12.90



$

12.85



$

12.40



Tangible book value per common share

12.66



12.55



12.70



12.64



12.22



Cash dividends paid per common share

$

0.10



$

0.10



$

0.10



$

0.09



$

0.09



Return on average assets

0.72

%


1.07

%


1.55

%


1.40

%


0.99

%


Return on average shareholders' equity

9.08

%


12.69

%


17.97

%


16.20

%


10.99

%


Net interest margin

3.23

%


3.16

%


3.24

%


3.35

%


3.47

%


END OF PERIOD BALANCE SHEET SUMMARY:











Total assets

$

3,849,063



$

3,499,465



$

3,374,938



$

3,205,293



$

3,085,135



Earning assets

3,491,642



3,157,693



3,050,960



2,883,778



2,790,259



Loans, excluding Loans Held-for-Sale

2,896,948



2,641,814



2,411,143



2,317,581



2,253,306



Total loans

3,294,782



2,981,465



2,885,410



2,723,098



2,622,241



Total deposits

3,179,511



2,912,038



2,639,248



2,652,896



2,458,022



Shareholders' equity

301,459



295,286



285,946



274,898



264,951



Assets serviced for others

8,033,479



7,777,854



7,292,561



6,900,870



6,562,505



DAILY AVERAGE BALANCE SHEET SUMMARY:











Total assets

$

3,751,012



$

3,423,373



$

3,228,867



$

3,098,079



$

2,921,650



Earning assets

3,465,703



3,164,897



2,980,741



2,858,827



2,711,139



Loans, excluding Loans Held-for-Sale

2,873,658



2,516,582



2,361,146



2,298,789



2,192,383



Total loans

3,186,124



2,956,109



2,778,117



2,656,556



2,509,552



Total deposits

3,146,089



2,731,407



2,624,412



2,530,988



2,416,139



Shareholders' equity

296,195



288,220



277,961



267,561



260,309



Assets serviced for others

7,902,116



7,521,391



7,104,630



6,742,214



6,413,357



ASSET QUALITY RATIOS:











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

0.18

%


0.05

%


(0.03)%



0.29

%


0.50

%


Allowance to period-end loans

0.91

%


0.94

%


0.97

%


1.03

%


1.13

%


Nonperforming assets to total loans, ORE and repossessions

1.93

%


1.86

%


2.01

%


2.33

%


2.61

%


Allowance to nonperforming loans, ORE and repossessions

0.47x



0.50x



0.48x



0.44x



0.43x



SELECTED RATIOS:











Loans to total deposits

91.11

%


90.72

%


91.36

%


87.36

%


91.67

%


Average total loans to average earning assets

91.93

%


93.40

%


93.20

%


92.92

%


92.56

%


Noninterest income to total revenue

46.46

%


50.85

%


57.15

%


54.74

%


48.13

%


Leverage ratio

8.84

%


9.41

%


9.77

%


9.89

%


10.40

%


Common equity tier 1 capital

8.21

%


8.82

%


8.96

%


9.12

%


N/A



Tier 1 risk-based capital

9.50

%


10.25

%


10.46

%


10.69

%


11.07

%


Total risk-based capital

12.40

%


13.40

%


13.71

%


11.50

%


12.01

%


 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)















($ in thousands)


December 31,
2015



September 30,
2015



December 31,
2014


ASSETS







Cash and cash equivalents


$

86,133



$

87,373



$

71,605


Investment securities available-for-sale


172,397



155,749



149,590


Investment securities held-to-maturity


14,398



12,816



7,349


Loans held-for-sale


397,834



339,651



368,935


Loans


2,896,948



2,641,814



2,253,306


Allowance for loan losses


(26,464)



(24,750)



(25,450)


Loans, net of allowance for loan losses


2,870,484



2,617,064



2,227,856


Premises and equipment, net


79,629



69,356



60,857


Other real estate, net


18,677



14,707



22,564


Bank owned life insurance


66,109



66,008



59,553


Servicing rights, net


84,944



82,659



64,897


Other assets


58,458



54,082



51,929


Total assets


$

3,849,063



$

3,499,465



$

3,085,135









LIABILITIES







Deposits







Noninterest-bearing demand deposits


$

786,779



$

722,771



$

558,018


Interest-bearing deposits







  Demand and money market


1,040,281



956,149



788,373


  Savings


362,793



317,766



321,621


  Time deposits


989,658



915,352



790,010


    Total deposits


3,179,511



2,912,038



2,458,022


Short-term borrowings


209,730



137,186



291,087


Subordinated debt, net


120,322



120,289



46,303


Other liabilities


38,041



34,666



24,772


Total liabilities


3,547,604



3,204,179



2,820,184









SHAREHOLDERS' EQUITY







Preferred stock







Common stock


169,782



166,989



162,575


Accumulated other comprehensive income, net


1,610



2,702



2,814


Retained earnings


130,067



125,595



99,562


Total shareholders' equity


301,459



295,286



264,951


Total liabilities and shareholders' equity


$

3,849,063



$

3,499,465



$

3,085,135
















 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

























For the Quarter Ended



For the Year Ended

($ in thousands, except per share data)


December 31,
2015



September 30,
2015



December 31,
2014



December 31,
2015



December 31,
2014


INTEREST INCOME
















Loans, including fees


$

31,493



$

28,462



$

25,382



$

111,626



$

96,664


Investment securities


1,523



1,108



1,242



4,936



4,918


Federal funds sold and bank deposits


27



27



9



80



85


Total interest income


33,043



29,597



26,633



116,642



101,667


INTEREST EXPENSE











Deposits


3,308



2,866



2,609



11,349



9,707


Other borrowings


133



179



130



650



406


Subordinated debt


1,456



1,415



279



3,805



1,113


Total interest expense


4,897



4,460



3,018



15,804



11,226


Net interest income


28,146



25,137



23,615



100,838



90,441


Provision for loan losses


3,097



1,328



556



4,351



531


Net interest income after provision for loan losses


25,049



23,809



23,059



96,487



89,910


NONINTEREST INCOME











Service charges on deposit accounts


1,447



1,230



1,229



4,955



4,438


Other fees and charges


1,589



1,327



1,189



5,356



4,349


Mortgage banking activities


18,806



20,799



15,489



85,540



55,781


Indirect lending activities


3,774



4,037



3,847



18,821



18,457


SBA lending activities


1,477



1,494



1,305



5,265



4,987


Bank owned life insurance


952



496



304



2,440



1,673


Securities losses


(329)







(329)




Other


960



1,236



1,348



5,980



5,635


Total noninterest income


28,676



30,619



24,711



128,028



95,320


NONINTEREST EXPENSE











Salaries and employee benefits


20,581



17,800



17,926



76,871



67,006


Commissions


6,118



7,270



5,545



27,342



19,988


Occupancy, net


4,811



4,270



3,508



16,017



12,985


Communication


1,203



1,083



1,068



4,336



3,897


Other


10,524



9,626



8,598



38,520



34,878


Total noninterest expense


43,237



40,049



36,645



163,086



138,754


Income before income tax expense


10,488



14,379



11,125



61,429



46,476


Income tax expense


3,711



5,162



3,912



22,294



16,440


NET INCOME


$

6,777



$

9,217



$

7,213



$

39,135



$

30,036













EARNINGS PER SHARE:











Basic earnings per share


$

0.29



$

0.41



$

0.34



$

1.77



$

1.41


Diluted earnings per share


$

0.28



$

0.39



$

0.31



$

1.64



$

1.28


Weighted average common shares outstanding-basic


23,083



22,604



21,343



22,137



21,313


Weighted average common shares outstanding-diluted


24,071



23,903



23,544



23,863



23,468














 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)























($ in thousands)


December 31,
2015



September 30,
2015



June 30,
2015



March 31,
2015



December 31,
2014


Commercial


$

703,292



$

579,319



$

533,853



$

519,062



$

524,145


SBA


135,993



138,078



138,819



138,198



134,766


      Total commercial and SBA loans


839,285



717,397



672,672



657,260



658,911


Construction loans


177,033



154,335



146,778



134,456



123,994


Indirect automobile


1,449,480



1,399,932



1,281,978



1,251,044



1,219,232


Installment


14,055



12,236



11,698



12,209



13,222


      Total consumer loans


1,463,535



1,412,168



1,293,676



1,263,253



1,232,454


Residential mortgage


302,378



248,697



210,740



180,424



158,498


Home equity lines of credit


114,717



109,217



87,277



82,188



79,449


 Total mortgage loans


417,095



357,914



298,017



262,612



237,947


 Loans


2,896,948



2,641,814



2,411,143



2,317,581



2,253,306













Loans held-for-sale:











Residential mortgage


233,525



218,308



310,793



241,974



181,424


SBA


14,309



11,343



13,474



13,543



12,511


Indirect automobile


150,000



110,000



150,000



150,000



175,000


     Total loans held-for-sale


397,834



339,651



474,267



405,517



368,935


          Total loans


$

3,294,782



$

2,981,465



$

2,885,410



$

2,723,098



$

2,622,241













Noncovered loans


$

2,874,308



$

2,617,991



$

2,385,489



$

2,287,422



$

2,218,493


Covered loans


22,640



23,823



25,654



30,159



34,813


Loans held-for-sale


397,834



339,651



474,267



405,517



368,935


          Total loans


$

3,294,782



$

2,981,465



$

2,885,410



$

2,723,098



$

2,622,241


 

 

DEPOSITS BY CATEGORY

(UNAUDITED)





































For the Three Months Ended


December 31, 2015


September 30, 2015


June 30, 2015


March 31, 2015


December 31, 2014

($ in millions)

Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate

Noninterest-bearing demand deposits

$

761,507



%


676,976



%


$

650,467



%


$

605,762



%


$

567,423



—%


Interest-bearing demand deposits

1,020,241



0.26

%


881,456



0.25

%


843,226



0.24

%


812,833



0.23

%


783,896



0.25

%

Savings deposits

369,536



0.35

%


308,503



0.34

%


301,599



0.33

%


309,393



0.33

%


323,605



0.35

%

Time deposits

994,805



0.92

%


864,472



0.94

%


829,120



0.94

%


803,000



0.90

%


741,215



0.98

%

Total average deposits

$

3,146,089



0.42

%


$

2,731,407



0.42

%


$

2,624,412



0.41

%


$

2,530,988



0.40

%


$

2,416,139



0.43

%









































 

 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)























($ in thousands)

December 31,
2015


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


NONPERFORMING ASSETS











Nonaccrual loans

$

34,325



$

29,374



$

30,756



$

32,432



$

34,856



Loans past due 90 days or more and still accruing

1,284



3,968



836



1,006



827



Repossessions

1,561



1,435



1,041



1,002



1,183



Other real estate (ORE)

18,677



14,707



16,070



19,988



22,564



Nonperforming assets

$

55,847



$

49,484



$

48,703



$

54,428



$

59,430



NONPERFORMING ASSET RATIOS











Loans 30-89 days past due

$

9,353



$

7,018



$

3,653



$

3,934



$

4,551



Loans 30-89 days past due to loans

0.32

%


0.27

%


0.15

%


0.17

%


0.20

%


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

0.04

%


0.15

%


0.03

%


0.04

%


0.04

%


Nonperforming assets to loans, ORE, and repossessions

1.93

%


1.86

%


2.01

%


2.33

%


2.61

%













ASSET QUALITY RATIOS











Classified Asset Ratio (3)

28.38

%


17.56

%


18.59

%


20.45

%


21.49

%


Nonperforming loans as a % of loans

1.24

%


1.26

%


1.31

%


1.44

%


1.58

%


ALL to nonperforming loans

74.32

%


74.23

%


74.15

%


71.05

%


71.32

%


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

0.18

%


0.05

%


(0.03)

%


0.29

%


0.50

%


ALL as a % of loans

0.91

%


0.94

%


0.97

%


1.03

%


1.13

%


ALL as a % of loans excluding acquired loans(4)

0.96

%


0.94

%


0.97

%


1.03

%


1.13

%













CLASSIFIED ASSETS











Classified loans (1)

$

84,093



$

47,906



$

49,561



$

52,684



$

53,415



ORE and repossessions

17,125



12,750



13,209



14,508



17,218



Total classified assets (2)

$

101,218



$

60,656



$

62,770



$

67,192



$

70,633














       (1) Amount of SBA guarantee included

$

4,680



$

3,970



$

5,256



$

5,802



$

5,271



       (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.


       (4) Allowance calculation excludes acquired loans, due to valuation calculated at acquisition.


 

 

 



























FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES


ANALYSIS OF INDIRECT LENDING


(UNAUDITED)




















As of or for the Quarter Ended


($ in thousands)


December 31,
2015


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


Average loans outstanding (1)


$

1,563,498



$

1,486,077



$

1,407,848



$

1,389,570



$

1,329,306



Loans serviced for others


$

1,117,210



$

1,117,721



$

1,091,644



$

1,025,569



$

902,823



Past due loans:













Amount 30+ days past due


$

1,829



$

1,381



$

1,098



$

1,222



$

1,547




Number 30+ days past due


235



170



128



132



143



30+ day performing delinquency rate (2)


0.11

%


0.10

%


0.08

%


0.09

%


0.11

%


Nonperforming loans


$

1,117



$

810



$

527



$

778



$

715



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


0.07

%


0.06

%


0.04

%


0.06

%


0.05

%


Net charge-offs


$

1,014



$

605



$

495



$

866



$

901



Net charge-off rate (3)


0.28

%


0.17

%


0.16

%


0.36

%


0.30

%


Number of vehicles repossessed during the period


131



120



106



134



128



Average beacon score


757



755



755



755



753



Production by state:













Alabama


$

17,758



$

20,886



$

18,831



$

22,056



$

26,780




Arkansas


39,436



46,704



39,174



35,786



41,912




North Carolina


20,378



21,484



20,536



21,809



25,059




South Carolina


13,661



13,339



16,021



16,273



16,132




Florida


95,054



98,087



91,725



96,688



102,465




Georgia


48,241



54,497



52,735



60,402



69,288




Mississippi


27,032



23,424



21,281



19,537



23,736




Tennessee


18,156



16,946



19,295



19,479



22,880




Virginia


12,640



14,829



16,349



16,919



18,590




Texas


36,127



37,673



35,739



41,527



50,987




Louisiana


27,147



24,490



24,095



21,042



13,531




Oklahoma (4)


82













Total production by state


$

355,712



$

372,359



$

355,781



$

371,518



$

411,360



Loan sales


$

111,683



$

142,132



$

177,820



$

219,784



$

121,973



Portfolio yield (1)


2.79

%


2.75

%


2.79

%


2.88

%


3.07

%


















(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


(4) 

Expanded into Oklahoma in November 2015




 

 

 

























FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF MORTGAGE LENDING

(UNAUDITED)


















As of or for the Quarter Ended

($ in thousands)


December 31,
2015


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014

Average loans outstanding (1)


$

450,263



$

511,317



$

449,097



$

337,122



$

300,652


Loans serviced for others


$

6,652,700



$

6,393,874



$

5,942,063



$

5,622,102



$

5,413,781


% of loan production for purchases


77.5

%


81.4

%


74.0

%


58.8

%


74.9

%

% of loan production for refinance loans


22.5

%


18.6

%


26.0

%


41.2

%


25.1

%

Production by region:












Georgia


$

341,115



$

424,554



$

468,795



$

342,121



$

311,846



Florida/Alabama


44,873



53,815



58,607



51,590



42,485



Virginia/Maryland


109,685



147,387



182,850



158,289



126,151



North and South Carolina (2)


20,973



11,398



8,002



3,858





Total retail


516,646



637,154



718,254



555,858



480,482



Wholesale


51,224



66,490



70,169



57,125



34,961




Total production by region


$

567,870



$

703,644



$

788,423



$

612,983



$

515,443


Loan sales


$

520,742



$

744,621



$

665,738



$

552,085



$

475,930









































INCOME FROM MORTGAGE BANKING ACTIVITIES

(UNAUDITED)


















As of or for the Quarter Ended

(in thousands)


December 31,
2015


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014

Marketing gain, net


$

15,407



$

17,573



$

17,099



$

19,746



$

12,076


Origination points and fees


2,914



3,871



3,726



2,757



2,744


Loan servicing revenue


4,377



4,059



3,762



3,646



3,473


MSR amortization and impairment adjustments


(3,892)



(4,704)



30



(4,830)



(2,804)


Total mortgage banking activities


$

18,806



$

20,799



$

24,617



$

21,319



$

15,489




























Noncash items included in income from mortgage banking activities:











Capitalized MSR, net


$

2,399



$

6,461



$

5,829



$

4,429



$

3,333


Valuation on MSR


(999)



(2,215)



2,611



(2,469)



(709)


Mark to market adjustments


648



(1,028)



(1,098)



3,967



588


   Total noncash items


$

2,048



$

3,219



$

7,342



$

5,926



$

3,212















(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


December 31, 2015


December 31, 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) 

$

3,186,124



$

31,558



3.93

%


$

2,509,552



$

25,427



4.02

%

Investment securities (1) 

217,375



1,566



2.86

%


169,254



1,301



3.05

%

Federal funds sold and bank deposits

62,204



27



0.17

%


32,333



9



0.11

%

Total interest-earning assets

3,465,703



33,151



3.79

%


2,711,139



26,737



3.91

%

Noninterest-earning assets:












Cash and due from banks

19,346







12,461






Allowance for loan losses

(24,919)







(28,328)






Premises and equipment, net

79,066







60,496






Other real estate

17,157







25,045






Other assets

194,659







140,837






Total assets

$

3,751,012







$

2,921,650






Liabilities and shareholders' equity












Interest-bearing liabilities:












Demand deposits

$

1,020,241



$

669



0.26

%


$

783,896



$

485



0.25

%

Savings deposits

369,536



328



0.35

%


323,605



285



0.35

%

Time deposits

994,805



2,311



0.92

%


741,215



1,839



0.98

%

Total interest-bearing deposits

2,384,582



3,308



0.55

%


1,848,716



2,609



0.56

%

Other borrowings

154,772



133



0.34

%


173,991



130



0.30

%

Subordinated debt

120,305



1,456



4.80

%


46,301



279



2.39

%

Total interest-bearing liabilities

2,659,659



4,897



0.73

%


2,069,008



3,018



0.58

%

Noninterest-bearing liabilities and shareholders' equity:












Demand deposits

761,507







567,423






Other liabilities

33,651







24,910






Shareholders' equity

296,195







260,309






Total liabilities and shareholders' equity

$

3,751,012







$

2,921,650






Net interest income/spread



$

28,254



3.06

%




$

23,719



3.33

%

Net interest margin





3.23

%






3.47

%













(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 Year Ended


December 31, 2015


December 31, 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)

$

2,895,847



$

111,828



3.86

%


$

2,284,245



$

96,830



4.24

%

Investment securities(1)

176,382



5,117



2.90

%


175,174



5,141



2.93

%

Fed funds sold and interest-bearing deposits

47,106



80



0.17

%


50,828



85



0.17

%

Total interest-earning assets

3,119,335



117,025



3.75

%


2,510,247



102,056



4.07

%

Noninterest-earning assets:












Cash and due from banks

16,092







13,605






Allowance for loan losses

(24,443)







(30,363)






Premises and equipment, net

67,192







52,666






Other real estate

18,375







26,327






Other assets

180,578







143,175






Total assets

$

3,377,129







$

2,715,657


















Liabilities and shareholders' equity












Interest-bearing liabilities:












Demand deposits

$

889,985



$

2,164



0.24

%


$

722,448



$

1,889



0.26

%

Savings deposits

322,385



1,096



0.34

%


316,439



1,147



0.36

%

Time deposits

873,352



8,089



0.93

%


681,915



6,671



0.98

%

Total interest-bearing deposits

2,085,722



11,349



0.54

%


1,720,802



9,707



0.56

%

Other borrowings

215,685



650



0.30

%


134,513



406



0.30

%

Subordinated debt

90,303



3,805



4.21

%


46,291



1,113



2.40

%

Total interest-bearing liabilities

2,391,710



15,804



0.66

%


1,901,606



11,226



0.59

%

Noninterest-bearing liabilities and shareholders' equity:












Demand deposits

674,114







539,023






Other liabilities

28,724







26,245






Shareholders' equity

282,581







248,783






Total liabilities and shareholders' equity

$

3,377,129







$

2,715,657






Net interest income/spread



$

101,221



3.09

%




$

90,830



3.48

%

Net interest margin





3.24

%






3.62

%















(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-68-million-in-fourth-quarter-record-391-million-in-2015-300208019.html

SOURCE Fidelity Southern Corporation

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