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8-K - FORM 8-K - FIDELITY SOUTHERN CORP | c20289e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts:
|
Martha Fleming, Steve Brolly | |
Fidelity Southern Corporation (404) 240-1504 |
FIDELITY SOUTHERN CORPORATION
EARNS NET INCOME OF $3.6 MILLION FOR SECOND QUARTER,
$5.5 MILLION YEAR TO DATE.
EARNS NET INCOME OF $3.6 MILLION FOR SECOND QUARTER,
$5.5 MILLION YEAR TO DATE.
ATLANTA, GA (July 21, 2011) Fidelity Southern Corporation (Fidelity or the Company)
(NASDAQ:LION), holding company for Fidelity Bank (the Bank), reported net income of $3.6 million
for the second quarter of 2011 compared to $1.8 million for the first quarter of 2011 and $4.9
million for the second quarter of 2010. After accounting for the TARP preferred dividend, basic
and diluted earnings per share for the second quarter of 2011 were $.24 and $.21, respectively,
compared to basic and diluted earnings per share of $.09 and $.08, respectively, in the first
quarter of 2011, and basic and diluted earnings per share of $.38 and $.33, respectively, in the
second quarter of 2010. Net income for the first six months of 2011 was $5.5 million compared to
net income of $5.1 million for the same period in 2010. Basic and diluted earnings per share for
the first six months of 2011 were $.34 and $.30, respectively, compared to basic and diluted
earnings per share of $.32 and $.29, respectively, for 2010.
For the quarter ended | ||||||||||||||||||||
6/30/2011 | 3/31/2011 | 12/31/2010 | 9/30/2010 | 6/30/2010 | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Net Income |
$ | 3,614 | $ | 1,842 | $ | 2,988 | $ | 2,081 | $ | 4,869 | ||||||||||
Income Tax Expense |
1,792 | 766 | 932 | 913 | 2,647 | |||||||||||||||
Provision For Loan Losses |
4,850 | 5,775 | 6,975 | 5,025 | 1,150 | |||||||||||||||
Write-down of ORE |
1,069 | 1,600 | 573 | 698 | 1,615 | |||||||||||||||
Other cost of ORE Operations |
724 | 858 | 483 | 713 | 743 | |||||||||||||||
Pre-Tax, Pre-Credit Related Earnings |
12,049 | 10,841 | 11,951 | 9,430 | 11,024 | |||||||||||||||
Less Security Gains |
(1,078 | ) | | | | (2,291 | ) | |||||||||||||
Core Operating Earnings (1) |
$ | 10,971 | $ | 10,841 | $ | 11,951 | $ | 9,430 | $ | 8,733 | ||||||||||
(1) | The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove the effect of income taxes, provision for loan losses, cost of operation of ORE, and security gains because we believe that helps show a view of more normalized net revenues. The measure allows better comparability with prior periods, as well as with peers in the industry who also provide a similar presentation. |
Fidelity Southern Corporation
Second Quarter Earnings Release
July 21, 2011
Second Quarter Earnings Release
July 21, 2011
For the second quarter of 2011, core operating earnings increased 26% over the second quarter
of 2010.
James B. Miller, Jr. Chairman said, We continue to improve our bottom line and are pleased
with the consistent quality of our earnings stream. We have opened a new banking center in
McDonough, Georgia to expand our footprint in the Atlanta metropolitan area. And we attracted $14
million of new investment capital to the Company in May to help us continue our growth strategies.
Though the economy continues to cast long shadows, we believe we will show improvements in the
second half of 2011.
ASSET QUALITY
Net charge-offs were $4.7 million in the second quarter of 2011 compared to $4.2 million in
the first quarter of 2011, and $3.5 million in the second quarter of 2010. Year to date, net
charge-offs increased $813,000 for the first six months of 2011 to $8.9 million compared to $8.1
million for the same period in 2010. The ratio of net charge-offs to average loans outstanding was
1.25% for the six months ended June 30, 2011, compared to 1.26% for the same period in 2010. The
allowance for loan losses increased $2.7 million to $29.8 million or 2.04% of total loans at June
30, 2011, compared to $27.1 million or 2.07% at June 30, 2010.
Nonperforming residential construction and development loans at June 30, 2011, included
financing for 95 houses and 736 lots and land totaling $46.3 million. During the second quarter of
2011, $2.4 million of nonperforming construction loans were paid down by our customers.
During the second quarter of 2011, $4.2 million of ORE assets were sold while $7.9 million
were added to ORE. ORE consists of 46 houses, representing 20.8% of the total ORE balance, 432
lots and eight commercial properties. ORE decreased $1.2 million to $21.0 million at June 30,
2011, compared to $22.2 million at June 30, 2010.
The provision for loan losses for the second quarter of 2011 was $4.9 million compared to $5.8
million in the first quarter of 2011 and $1.2 million for the second quarter of 2010. The
provision for loan losses for the first six months of 2011 was $10.6 million compared to $5.1
million for the same period in 2010. The increase of $5.5 million for the comparable six month
period is related to growth in the Banks loan portfolio, an increase in certain specific reserves,
and higher net charge-offs.
CAPITAL
The Company raised $14.4 million in May 2011 in a private placement of common stock adding
2,167,166 shares to total shares outstanding. No investor purchasing shares resulted in a
beneficial interest over 9.9% of the Companys common stock. At June 30, 2011, the Company had a
10.47% leverage ratio, 12.78% in tier one capital to risk weighted assets, and 14.80% in total
capital to risk weighted assets. At June 30, 2011, the Bank had a leverage ratio of 9.64%, a tier
one ratio of 11.75%, and a total capital ratio 13.61%.
In addition, the Companys Tangible Common Equity to Tangible Assets ratio improved from 4.73%
at March 31, 2011 to 5.51% at June 30, 2011.
2
Fidelity Southern Corporation
Second Quarter Earnings Release
July 21, 2011
Second Quarter Earnings Release
July 21, 2011
DEPOSITS
Total deposits of $1.708 billion at June 30, 2011, reflect the improvement in the deposit mix
brought about by the Banks strategy to increase core deposits. Demand, money market and savings
accounts increased $111.4 million or 11.8% at June 30, 2011, compared to June 30,
2010. In addition, as part of an ongoing strategy to position the Bank for future higher interest
rates, we have increased the average maturity of certificates of deposit while decreasing the
interest rate paid on deposit accounts over the last twelve months.
June 30, | December 31, | June 30, | ||||||||||||||||||||||
2011 | 2010 | 2010 | ||||||||||||||||||||||
$ | % | $ | % | $ | % | |||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||
Core deposits(1) |
$ | 1,363.5 | 79.8 | % | $ | 1,304.5 | 80.9 | % | $ | 1,244.8 | 79.6 | % | ||||||||||||
Time Deposits > $100,000 |
302.5 | 17.7 | 246.3 | 15.2 | 211.6 | 13.5 | ||||||||||||||||||
Brokered deposits |
42.4 | 2.5 | 62.5 | 3.9 | 107.2 | 6.9 | ||||||||||||||||||
Total deposits |
$ | 1,708.4 | 100.0 | % | $ | 1,613.3 | 100.0 | % | $ | 1,563.8 | 100.0 | % | ||||||||||||
Quarterly rate on deposits |
1.06% | 1.19% | 1.62% |
(1) | Core deposits are transactional, savings, and time deposits under $100,000. |
REAL ESTATE
New residential construction loan advances made during the quarter totaled $7.9 million, while
the payoffs of construction loans totaled $15.6 million. Residential construction and A&D loans
totaled $101.7 million at June 30, 2011, which decreased 20% from $127 million at June 30, 2010.
There were 320 houses and 1,237 lots financed at June 30, 2011, compared to 312 houses and 1,414
lots at June 30, 2010.
Total residential and commercial construction and land loans decreased to $114.3 million or
7.8% of loans at June 30, 2011, from $128.7 million or 9.8% of loans at June 30, 2010, and as a
percentage of capital was 53% at June 30, 2011. The regulatory guideline is a maximum of 100%.
All real estate loans, excluding owner-occupied properties, as a percentage of capital, were
125% at June 30, 2011. The regulatory guideline is a maximum of 300%.
NET INTEREST MARGIN
Net interest margin decreased two basis points to 3.65% in the second quarter of 2011 compared
to 3.67% in the second quarter of 2010. Net interest income for the second quarter of 2011
increased $804,000 or 5.0% when compared to the same period in 2010. Net interest margin increased
20 basis points to 3.74% in the first half of 2011 compared to 3.54% for the same period in 2010.
Net interest income for the first six months of 2011 increased $3.4 million or 11.1% when compared
to the same period in 2010. The increase in quarterly and year to date net interest income is a
result of a greater reduction in the cost of funds than the decrease in the yield on earning
assets.
3
Fidelity Southern Corporation
Second Quarter Earnings Release
July 21, 2011
Second Quarter Earnings Release
July 21, 2011
INTEREST INCOME
Total interest income for the second quarter of 2011 decreased $1.3 million or 5.5% compared
to the same period in 2010. Average interest-earning assets for the second quarter 2011 increased
$96.7 million or 5.4%, but was more than offset by a 57 basis point decrease in the yield on
average interest-earning assets due primarily to the Bank offering competitive rates in the
marketplace. In addition, investment security yields decreased 37 basis points to 3.27% due to
market rate decreases.
Year to date, total interest income decreased $1.1 million or 2.4% compared to the same period
in 2010. Average interest-earning assets for the first half of 2011 increased $89.4 million or
5.1%, but was more than offset by the yield on average interest-earning assets which decreased 39
basis points. The decrease in yield was primarily the result of a decrease in the yield on loans
of 55 basis points. In addition, investment security yields decreased 51 basis points to 3.31%.
Somewhat offsetting this decrease in yield was a $15.6 million decrease in the average amount of
our investment in low yielding interest bearing deposits.
INTEREST EXPENSE
Interest expense for the second quarter of 2011 decreased $2.2 million or 26.3% compared to
the same period in 2010. The decrease in interest expense was attributable to a 60 basis point
decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average
interest-bearing liabilities of $55.8 million or 3.6%. In addition to the general decrease in
deposit rates, the Banks shift in deposit mix toward core demand and savings accounts contributed
to the reduction in the cost of funds. Brokered deposits decreased $64.7 million compared to June
30, 2010. At June 30, 2011, brokered deposits represented only 2.5% of total deposits.
Year to date in 2011, interest expense decreased $4.5 million or 27.0% compared to the same
period in 2010. The decrease in interest expense was attributable to a 64 basis point decrease in
the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing
liabilities of $53.3 million.
NONINTEREST INCOME
Noninterest income increased $2.8 million or 25.3% to $14.1 million for the quarter
ended June 30, 2011, compared to the same period in 2010. The increase in noninterest income was
primarily the result of a $2.9 million or 391.0% increase in income from SBA lending activities and
a $959,000 or 21.2% increase in income from mortgage banking activities. These increases were
somewhat offset by a $1.2 million decrease in securities gains due to fewer sales. SBA income
increased because of higher gains on sale related to a $37.2 million increase in loans sold to
$43.6 million for the quarter ended June 30, 2011 compared to the same period in 2010. Mortgage
banking income improved due to higher premiums on loans sold which resulted in an increase in gain
on sale of $539,000 compared to the second quarter of 2010 as well as higher other fee income which
increased $460,000 due to higher servicing fee and underwriting income.
4
Fidelity Southern Corporation
Second Quarter Earnings Release
July 21, 2011
Second Quarter Earnings Release
July 21, 2011
Noninterest income increased $8.0 million or 45.2% to $25.8 million for the six months ended
June 30, 2011, compared to the same period in 2010. The increase in noninterest income was the
result of a $5.0 million or 589.8% increase in income from SBA lending activities and a $3.6
million or 46.7% increase in income from mortgage banking activities. SBA income increased because
of higher gains on sale related to a $61.9 million increase in loans sold to $68.3 million. There
were no SBA sales recognized in the first quarter of 2010 in accordance with the adoption of new
accounting requirements effective January 1, 2010. Mortgage banking income improved as a result of
increased gains on sale and other fee income associated with a higher volume of loans originated
which increased $26.7 million for the six months ended June 30, 2011 compared to the same period in
2010.
NONINTEREST EXPENSE
Noninterest expense for the second quarter of 2011 increased $2.1 million or 10.9%
to $20.9 million compared to the same period in 2010. The increase was due primarily to higher
salaries and employee benefits which increased $1.6 million or 16.2% to $11.6 million due to higher
commission expense related to the increased SBA volume as well as an increased number of lenders in
the Mortgage, SBA, Commercial, and Indirect Auto Lending divisions. Other operating expense
increased $492,000 or 22.2% to $2.7 million due to higher insurance, mortgage related losses, and
underwriting expenses.
Noninterest expense for the first six months of 2011 increased $5.5 million or 15.5% to $41.4
million compared to the same period in 2010. The increase was due primarily to higher salaries and
employee benefits which increased $3.6 million or 18.8% to $22.5 million. Other operating expense
increased $1.3 million or 32.2% to $5.4 million due to higher losses and reserves, insurance,
underwriting and advertising expenses.
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark
Insurance Company, provides banking services and credit-related insurance products through 25
branches in Atlanta, Georgia, and Jacksonville, Florida, and an insurance office in Atlanta,
Georgia. SBA, indirect automobile, and mortgage loans are provided through employees located
throughout nine Southern states. For additional information about Fidelitys products and
services, please visit the website at www.FidelitySouthern.com.
5
Fidelity Southern Corporation
Second Quarter Earnings Release
July 21, 2011
Second Quarter Earnings Release
July 21, 2011
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 some factors that may cause such forward-looking
statements to differ materially from actual results, please refer to the section entitled Forward
Looking Statements on page 3 of Fidelity Southern Corporations 2010 Annual Report filed on Form
10-K with the Securities and Exchange Commission.
-end-
6
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
QUARTER ENDED | YEAR TO DATE | QTR ENDED | ||||||||||||||||||
JUNE 30, | JUNE 30, | MARCH 31, | ||||||||||||||||||
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) | 2011 | 2010 | 2011 | 2010 | 2011 | |||||||||||||||
INTEREST INCOME |
||||||||||||||||||||
LOANS, INCLUDING FEES |
$ | 21,153 | $ | 21,754 | $ | 43,044 | $ | 42,818 | $ | 21,891 | ||||||||||
INVESTMENT SECURITIES |
1,889 | 2,673 | 3,402 | 4,748 | 1,513 | |||||||||||||||
FEDERAL FUNDS SOLD AND BANK DEPOSITS |
49 | 13 | 90 | 106 | 41 | |||||||||||||||
TOTAL INTEREST INCOME |
23,091 | 24,440 | 46,536 | 47,672 | 23,445 | |||||||||||||||
INTEREST EXPENSE |
||||||||||||||||||||
DEPOSITS |
4,448 | 6,349 | 8,980 | 13,225 | 4,532 | |||||||||||||||
SHORT-TERM BORROWINGS |
169 | 381 | 344 | 713 | 175 | |||||||||||||||
SUBORDINATED DEBT |
1,122 | 1,123 | 2,243 | 2,240 | 1,121 | |||||||||||||||
OTHER LONG-TERM DEBT |
307 | 346 | 752 | 689 | 445 | |||||||||||||||
TOTAL INTEREST EXPENSE |
6,046 | 8,199 | 12,319 | 16,867 | 6,273 | |||||||||||||||
NET INTEREST INCOME |
17,045 | 16,241 | 34,217 | 30,805 | 17,172 | |||||||||||||||
PROVISION FOR LOAN LOSSES |
4,850 | 1,150 | 10,625 | 5,125 | 5,775 | |||||||||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES |
12,195 | 15,091 | 23,592 | 25,680 | 11,397 | |||||||||||||||
NONINTEREST INCOME |
||||||||||||||||||||
SERVICE CHARGES ON DEPOSIT ACCOUNTS |
1,015 | 1,171 | 1,972 | 2,219 | 957 | |||||||||||||||
OTHER FEES AND CHARGES |
672 | 559 | 1,253 | 1,043 | 581 | |||||||||||||||
MORTGAGE BANKING ACTIVITIES |
5,484 | 4,525 | 11,443 | 7,800 | 5,959 | |||||||||||||||
INDIRECT LENDING ACTIVITIES |
1,524 | 1,161 | 2,710 | 2,197 | 1,186 | |||||||||||||||
SBA LENDING ACTIVITIES |
3,604 | 734 | 5,836 | 846 | 2,232 | |||||||||||||||
SECURITIES GAINS |
1,078 | 2,291 | 1,078 | 2,291 | | |||||||||||||||
BANK OWNED LIFE INSURANCE |
333 | 330 | 653 | 656 | 320 | |||||||||||||||
OTHER OPERATING INCOME |
384 | 477 | 835 | 703 | 451 | |||||||||||||||
TOTAL NONINTEREST INCOME |
14,094 | 11,248 | 25,780 | 17,755 | 11,686 | |||||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||||||
SALARIES AND EMPLOYEE BENEFITS |
11,641 | 10,021 | 22,463 | 18,905 | 10,822 | |||||||||||||||
FURNITURE AND EQUIPMENT |
791 | 674 | 1,543 | 1,318 | 752 | |||||||||||||||
NET OCCUPANCY |
1,160 | 1,125 | 2,295 | 2,215 | 1,135 | |||||||||||||||
COMMUNICATION EXPENSES |
532 | 475 | 1,095 | 919 | 563 | |||||||||||||||
PROFESSIONAL AND OTHER SERVICES |
1,453 | 1,074 | 2,645 | 2,112 | 1,192 | |||||||||||||||
OTHER REAL ESTATE EXPENSE |
1,793 | 2,358 | 4,251 | 4,527 | 2,458 | |||||||||||||||
FDIC INSURANCE EXPENSE |
806 | 881 | 1,708 | 1,767 | 902 | |||||||||||||||
OTHER OPERATING EXPENSES |
2,707 | 2,215 | 5,358 | 4,054 | 2,651 | |||||||||||||||
TOTAL NONINTEREST EXPENSE |
20,883 | 18,823 | 41,358 | 35,817 | 20,475 | |||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE |
5,406 | 7,516 | 8,014 | 7,618 | 2,608 | |||||||||||||||
INCOME TAX EXPENSE |
1,792 | 2,647 | 2,558 | 2,554 | 766 | |||||||||||||||
NET INCOME |
3,614 | 4,869 | 5,456 | 5,064 | 1,842 | |||||||||||||||
PREFERRED STOCK DIVIDENDS |
(823 | ) | (823 | ) | (1,646 | ) | (1,646 | ) | (823 | ) | ||||||||||
NET INCOME AVAILABLE TO COMMON EQUITY |
$ | 2,791 | $ | 4,046 | $ | 3,810 | $ | 3,418 | $ | 1,019 | ||||||||||
EARNINGS PER SHARE: |
||||||||||||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.24 | $ | 0.38 | $ | 0.34 | $ | 0.32 | $ | 0.09 | ||||||||||
DILUTED EARNINGS PER SHARE |
$ | 0.21 | $ | 0.33 | $ | 0.30 | $ | 0.29 | $ | 0.08 | ||||||||||
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-BASIC |
11,700,955 | 10,776,579 | 11,267,916 | 10,619,041 | 10,830,066 | |||||||||||||||
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-FULLY DILUTED |
13,190,787 | 12,258,681 | 12,798,015 | 11,895,606 | 12,407,925 | |||||||||||||||
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JUNE 30, | MARCH 31, | DECEMBER 31, | JUNE 30, | |||||||||||||
(DOLLARS IN THOUSANDS) | 2011 | 2011 | 2010 | 2010 | ||||||||||||
ASSETS |
||||||||||||||||
CASH AND DUE FROM BANKS |
$ | 194,628 | $ | 123,995 | $ | 47,242 | $ | 108,898 | ||||||||
FEDERAL FUNDS SOLD |
371 | 1,784 | 517 | 2,279 | ||||||||||||
CASH AND CASH EQUIVALENTS |
194,999 | 125,779 | 47,759 | 111,177 | ||||||||||||
INVESTMENTS AVAILABLE-FOR-SALE |
171,683 | 209,833 | 161,478 | 164,082 | ||||||||||||
INVESTMENTS HELD-TO-MATURITY |
10,570 | 12,712 | 14,110 | 16,896 | ||||||||||||
INVESTMENT IN FHLB STOCK |
6,456 | 6,542 | 6,542 | 6,857 | ||||||||||||
LOANS HELD-FOR-SALE |
98,333 | 115,005 | 209,898 | 183,672 | ||||||||||||
LOANS |
1,458,658 | 1,431,493 | 1,403,372 | 1,308,991 | ||||||||||||
ALLOWANCE FOR LOAN LOSSES |
(29,801 | ) | (29,694 | ) | (28,082 | ) | (27,104 | ) | ||||||||
LOANS, NET |
1,428,857 | 1,401,799 | 1,375,290 | 1,281,887 | ||||||||||||
PREMISES AND EQUIPMENT, NET |
21,154 | 19,723 | 19,510 | 18,795 | ||||||||||||
OTHER REAL ESTATE, NET |
21,026 | 18,383 | 20,525 | 22,225 | ||||||||||||
ACCRUED INTEREST RECEIVABLE |
7,704 | 8,126 | 7,990 | 7,992 | ||||||||||||
BANK OWNED LIFE INSURANCE |
30,878 | 30,570 | 30,275 | 29,663 | ||||||||||||
OTHER ASSETS |
52,676 | 50,127 | 51,923 | 41,355 | ||||||||||||
TOTAL ASSETS |
$ | 2,044,336 | $ | 1,998,599 | $ | 1,945,300 | $ | 1,884,601 | ||||||||
LIABILITIES |
||||||||||||||||
DEPOSITS: |
||||||||||||||||
NONINTEREST-BEARING DEMAND |
$ | 214,980 | $ | 200,902 | $ | 185,614 | $ | 172,919 | ||||||||
INTEREST-BEARING DEMAND/
MONEY MARKET |
421,458 | 430,403 | 427,590 | 336,983 | ||||||||||||
SAVINGS |
420,082 | 418,788 | 398,012 | 435,267 | ||||||||||||
TIME DEPOSITS, $100,000 AND OVER |
302,463 | 271,817 | 246,317 | 211,550 | ||||||||||||
OTHER TIME DEPOSITS |
349,421 | 356,123 | 355,715 | 406,902 | ||||||||||||
TOTAL DEPOSIT LIABILITIES |
1,708,404 | 1,678,033 | 1,613,248 | 1,563,621 | ||||||||||||
SHORT-TERM BORROWINGS |
35,951 | 25,732 | 32,977 | 49,902 | ||||||||||||
SUBORDINATED DEBT |
67,527 | 67,527 | 67,527 | 67,527 | ||||||||||||
OTHER LONG-TERM DEBT |
52,500 | 70,000 | 75,000 | 50,000 | ||||||||||||
ACCRUED INTEREST PAYABLE |
2,686 | 2,284 | 2,973 | 3,708 | ||||||||||||
OTHER LIABILITIES |
17,430 | 13,468 | 13,064 | 12,700 | ||||||||||||
TOTAL LIABILITIES |
1,884,498 | 1,857,044 | 1,804,789 | 1,747,458 | ||||||||||||
SHAREHOLDERS EQUITY |
||||||||||||||||
PREFERRED STOCK |
46,020 | 45,799 | 45,578 | 45,137 | ||||||||||||
COMMON STOCK |
72,217 | 57,611 | 57,542 | 56,091 | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE
INCOME |
1,280 | 195 | 458 | 1,261 | ||||||||||||
RETAINED EARNINGS |
40,321 | 37,950 | 36,933 | 34,654 | ||||||||||||
TOTAL SHAREHOLDERS EQUITY |
159,838 | 141,555 | 140,511 | 137,143 | ||||||||||||
TOTAL LIABILITIES AND SHARE-
HOLDERS EQUITY |
$ | 2,044,336 | $ | 1,998,599 | $ | 1,945,300 | $ | 1,884,601 | ||||||||
BOOK VALUE PER SHARE |
$ | 8.75 | $ | 8.84 | $ | 8.77 | $ | 8.51 | ||||||||
SHARES OF COMMON STOCK OUTSTANDING |
13,014,077 | 10,830,851 | 10,829,492 | 10,811,737 | ||||||||||||
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
LOANS, BY CATEGORY
(UNAUDITED)
JUNE 30, | ||||||||||||
(DOLLARS IN THOUSANDS) | 2011 | 2010 | PERCENT CHANGE | |||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
$ | 92,738 | $ | 100,748 | (7.95) | % | ||||||
TAX-EXEMPT COMMERCIAL |
5,049 | 5,251 | (3.85) | % | ||||||||
REAL ESTATE MORTGAGE COMMERCIAL |
350,945 | 329,996 | 6.35 | % | ||||||||
TOTAL COMMERCIAL |
448,732 | 435,995 | 2.92 | % | ||||||||
REAL ESTATE-CONSTRUCTION |
114,307 | 128,735 | (11.21) | % | ||||||||
REAL ESTATE-MORTGAGE |
123,589 | 129,177 | (4.33) | % | ||||||||
CONSUMER INSTALLMENT |
772,030 | 615,084 | 25.52 | % | ||||||||
LOANS |
1,458,658 | 1,308,991 | 11.43 | % | ||||||||
LOANS HELD-FOR-SALE: |
||||||||||||
ORIGINATED RESIDENTIAL MORTGAGE LOANS |
47,503 | 134,962 | (64.80) | % | ||||||||
SBA LOANS |
20,830 | 18,710 | 11.33 | % | ||||||||
INDIRECT AUTO LOANS |
30,000 | 30,000 | 0.00 | % | ||||||||
TOTAL LOANS HELD-FOR-SALE |
98,333 | 183,672 | (46.46) | % | ||||||||
TOTAL LOANS |
$ | 1,556,991 | $ | 1,492,663 | ||||||||
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
YEAR TO DATE | YEAR ENDED | YEAR TO DATE | ||||||||||||||
JUNE 30, | DECEMBER 31, | MARCH 31, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2011 | 2010 | 2010 | 2011 | ||||||||||||
BALANCE AT BEGINNING OF PERIOD |
$ | 28,082 | $ | 30,072 | $ | 30,072 | $ | 28,082 | ||||||||
CHARGE-OFFS: |
||||||||||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
96 | 79 | 883 | 93 | ||||||||||||
SBA |
493 | 140 | 381 | 178 | ||||||||||||
REAL ESTATE-CONSTRUCTION |
6,162 | 4,331 | 11,274 | 2,501 | ||||||||||||
REAL ESTATE-MORTGAGE |
299 | 129 | 656 | 105 | ||||||||||||
CONSUMER INSTALLMENT |
2,390 | 3,895 | 7,086 | 1,550 | ||||||||||||
TOTAL CHARGE-OFFS |
9,440 | 8,574 | 20,280 | 4,427 | ||||||||||||
RECOVERIES: |
||||||||||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
7 | 2 | 23 | 7 | ||||||||||||
SBA |
18 | | 5 | 14 | ||||||||||||
REAL ESTATE-CONSTRUCTION |
104 | 108 | 361 | 51 | ||||||||||||
REAL ESTATE-MORTGAGE |
2 | 1 | 8 | | ||||||||||||
CONSUMER INSTALLMENT |
403 | 370 | 768 | 192 | ||||||||||||
TOTAL RECOVERIES |
534 | 481 | 1,165 | 264 | ||||||||||||
NET CHARGE-OFFS |
8,906 | 8,093 | 19,115 | 4,163 | ||||||||||||
PROVISION FOR LOAN LOSSES |
10,625 | 5,125 | 17,125 | 5,775 | ||||||||||||
BALANCE AT END OF PERIOD |
$ | 29,801 | $ | 27,104 | $ | 28,082 | $ | 29,694 | ||||||||
RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE
LOANS OUTSTANDING, NET |
1.25 | % | 1.26 | % | 1.44 | % | 1.19 | % | ||||||||
ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS |
2.04 | % | 2.07 | % | 2.00 | % | 2.07 | % |
NONPERFORMING ASSETS
(UNAUDITED)
(UNAUDITED)
JUNE 30, | DECEMBER 31, | MARCH 31, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2011 | 2010 | 2010 | 2011 | ||||||||||||
NONACCRUAL LOANS |
$ | 69,654 | $ | 58,588 | $ | 76,545 | $ | 72,515 | ||||||||
REPOSSESSIONS |
932 | 1,304 | 1,119 | 1,438 | ||||||||||||
OTHER REAL ESTATE |
21,026 | 22,225 | 20,525 | 18,383 | ||||||||||||
TOTAL NONPERFORMING ASSETS |
$ | 91,612 | $ | 82,117 | $ | 98,189 | $ | 92,336 | ||||||||
*** INCLUDES SBA GUARANTEED AMOUNTS OF APPROXIMATELY |
$ | 6,669 | $ | 6,100 | $ | 7,818 | $ | 4,502 | ||||||||
LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING |
$ | | $ | | $ | | $ | | ||||||||
RATIO OF LOANS PAST DUE 90 DAYS OR MORE AND
STILL ACCRUING TO TOTAL LOANS |
| % | | % | | % | | % | ||||||||
RATIO OF NONPERFORMING ASSETS TO TOTAL LOANS,
OREO AND REPOSSESSIONS |
5.80 | % | 5.42 | % | 6.01 | % | 5.90 | % |
DELINQUENCIES
(UNAUDITED)
(UNAUDITED)
(IN THOUSANDS) | Jun-11 | Mar-11 | Dec-10 | Sep-10 | Jun-10 | |||||||||||||||
PAST DUE (30-59) |
$ | 4,460 | $ | 6,345 | $ | 9,227 | $ | 4,664 | $ | 7,618 | ||||||||||
PAST DUE (60-89) |
1,245 | 2,122 | 1,356 | 9,631 | 1,289 | |||||||||||||||
PAST DUE (90+) |
| | | | | |||||||||||||||
TOTAL PAST DUE |
$ | 5,705 | $ | 8,467 | $ | 10,583 | $ | 14,295 | $ | 8,907 | ||||||||||
INDIRECT |
$ | 2,554 | $ | 2,354 | $ | 4,936 | $ | 3,635 | $ | 3,958 | ||||||||||
CONSTRUCTION |
83 | 83 | 1,064 | 8,411 | | |||||||||||||||
COMMERCIAL |
456 | 3,958 | 2,075 | 314 | | |||||||||||||||
SBA |
1,202 | 764 | 698 | | 2,911 | |||||||||||||||
OTHER |
1,410 | 1,308 | 1,810 | 1,935 | 2,038 | |||||||||||||||
TOTAL PAST DUE |
$ | 5,705 | $ | 8,467 | $ | 10,583 | $ | 14,295 | $ | 8,907 | ||||||||||
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
YEAR TO DATE | ||||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(DOLLARS IN THOUSANDS) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets |
||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans, net of unearned income: |
||||||||||||||||||||||||
Taxable |
$ | 1,560,728 | $ | 42,943 | 5.54 | % | $ | 1,413,338 | $ | 42,713 | 6.09 | % | ||||||||||||
Tax-exempt (1) |
5,093 | 155 | 6.14 | % | 5,294 | 160 | 6.14 | % | ||||||||||||||||
Total loans |
1,565,821 | 43,098 | 5.54 | % | 1,418,632 | 42,873 | 6.09 | % | ||||||||||||||||
Investment securities: |
||||||||||||||||||||||||
Taxable |
201,539 | 3,158 | 3.13 | % | 243,971 | 4,504 | 3.69 | % | ||||||||||||||||
Tax-exempt (2) |
11,704 | 367 | 6.28 | % | 11,706 | 365 | 6.21 | % | ||||||||||||||||
Total investment securities |
213,243 | 3,525 | 3.31 | % | 255,677 | 4,869 | 3.82 | % | ||||||||||||||||
Interest-bearing deposits |
76,705 | 90 | 0.24 | % | 92,295 | 106 | 0.23 | % | ||||||||||||||||
Federal funds sold |
818 | | 0.06 | % | 603 | | 0.08 | % | ||||||||||||||||
Total interest-earning assets |
1,856,587 | 46,713 | 5.07 | % | 1,767,207 | 47,848 | 5.46 | % | ||||||||||||||||
Noninterest-earning: |
||||||||||||||||||||||||
Cash and due from banks |
29,947 | 6,580 | ||||||||||||||||||||||
Allowance for loan losses |
(28,684 | ) | (28,940 | ) | ||||||||||||||||||||
Premises and equipment, net |
20,094 | 18,523 | ||||||||||||||||||||||
Other real estate |
20,686 | 24,912 | ||||||||||||||||||||||
Other assets |
84,909 | 78,385 | ||||||||||||||||||||||
Total assets |
$ | 1,983,539 | $ | 1,866,667 | ||||||||||||||||||||
Liabilities and shareholders equity |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Demand deposits |
$ | 415,994 | $ | 1,371 | 0.66 | % | $ | 274,007 | $ | 1,232 | 0.91 | % | ||||||||||||
Savings deposits |
412,697 | 2,234 | 1.09 | % | 448,381 | 3,500 | 1.57 | % | ||||||||||||||||
Time deposits |
624,924 | 5,375 | 1.73 | % | 673,241 | 8,493 | 2.54 | % | ||||||||||||||||
Total interest-bearing deposits |
1,453,615 | 8,980 | 1.25 | % | 1,395,629 | 13,225 | 1.91 | % | ||||||||||||||||
Federal funds purchased |
| | | 1,492 | 7 | 0.94 | % | |||||||||||||||||
Securities sold under agreements to
repurchase |
20,702 | 190 | 1.85 | % | 21,773 | 177 | 1.64 | % | ||||||||||||||||
Other short-term borrowings |
10,801 | 154 | 2.87 | % | 27,155 | 529 | 3.93 | % | ||||||||||||||||
Subordinated debt |
67,527 | 2,243 | 6.70 | % | 67,527 | 2,240 | 6.69 | % | ||||||||||||||||
Long-term debt |
64,199 | 752 | 2.36 | % | 50,000 | 689 | 2.78 | % | ||||||||||||||||
Total interest-bearing liabilities |
1,616,844 | 12,319 | 1.54 | % | 1,563,576 | 16,867 | 2.18 | % | ||||||||||||||||
Noninterest-bearing: |
||||||||||||||||||||||||
Demand deposits |
198,023 | 158,745 | ||||||||||||||||||||||
Other liabilities |
24,119 | 13,138 | ||||||||||||||||||||||
Shareholders equity |
144,553 | 131,208 | ||||||||||||||||||||||
Total liabilities and
shareholders equity |
$ | 1,983,539 | $ | 1,866,667 | ||||||||||||||||||||
Net interest income / spread |
$ | 34,394 | 3.54 | % | $ | 30,981 | 3.28 | % | ||||||||||||||||
Net interest margin |
3.74 | % | 3.54 | % |
(1) | Interest income includes the effect of taxable-equivalent adjustment for 2011 and 2010 of
$54,000 and $55,000, respectively. |
|
(2) | Interest income includes the effect of taxable-equivalent adjustment for 2011 and 2010 of
$123,000 and $121,000, respectively. |
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
QUARTER ENDED | ||||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
(DOLLARS IN THOUSANDS) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets |
||||||||||||||||||||||||
Interest-earning assets : |
||||||||||||||||||||||||
Loans, net of unearned income |
||||||||||||||||||||||||
Taxable |
$ | 1,550,103 | $ | 21,103 | 5.46 | % | $ | 1,436,360 | $ | 21,701 | 6.06 | % | ||||||||||||
Tax-exempt (1) |
5,067 | 77 | 6.14 | % | 5,269 | 80 | 6.14 | % | ||||||||||||||||
Total loans |
1,555,170 | 21,180 | 5.46 | % | 1,441,629 | 21,781 | 6.06 | % | ||||||||||||||||
Investment securities |
||||||||||||||||||||||||
Taxable |
227,412 | 1,767 | 3.11 | % | 289,034 | 2,551 | 3.53 | % | ||||||||||||||||
Tax-exempt (2) |
11,704 | 184 | 6.27 | % | 11,706 | 182 | 6.22 | % | ||||||||||||||||
Total investment securities |
239,116 | 1,951 | 3.27 | % | 300,740 | 2,733 | 3.64 | % | ||||||||||||||||
Interest-bearing deposits |
86,841 | 49 | 0.22 | % | 42,148 | 13 | 0.13 | % | ||||||||||||||||
Federal funds sold |
733 | | 0.05 | % | 604 | | 0.09 | % | ||||||||||||||||
Total interest-earning assets |
1,881,860 | 23,180 | 4.94 | % | 1,785,121 | 24,527 | 5.51 | % | ||||||||||||||||
Cash and due from banks |
27,933 | 2,249 | ||||||||||||||||||||||
Allowance for loan losses |
(29,019 | ) | (28,537 | ) | ||||||||||||||||||||
Premises and equipment, net |
20,495 | 18,845 | ||||||||||||||||||||||
Other real estate |
20,107 | 25,297 | ||||||||||||||||||||||
Other assets |
85,401 | 77,042 | ||||||||||||||||||||||
Total assets |
$ | 2,006,777 | $ | 1,880,017 | ||||||||||||||||||||
Liabilities and shareholders equity |
||||||||||||||||||||||||
Interest-bearing liabilities : |
||||||||||||||||||||||||
Demand deposits |
$ | 416,214 | $ | 682 | 0.66 | % | $ | 288,301 | $ | 673 | 0.94 | % | ||||||||||||
Savings deposits |
417,580 | 1,114 | 1.07 | % | 454,791 | 1,708 | 1.51 | % | ||||||||||||||||
Time deposits |
634,012 | 2,652 | 1.68 | % | 655,751 | 3,968 | 2.43 | % | ||||||||||||||||
Total interest-bearing deposits |
1,467,806 | 4,448 | 1.22 | % | 1,398,843 | 6,349 | 1.82 | % | ||||||||||||||||
Federal funds purchased |
| | | 2,967 | 7 | 0.94 | % | |||||||||||||||||
Securities sold under agreements to
repurchase |
14,788 | 24 | 0.64 | % | 23,149 | 115 | 1.99 | % | ||||||||||||||||
Other short-term borrowings |
20,495 | 145 | 2.83 | % | 26,813 | 259 | 3.88 | % | ||||||||||||||||
Subordinated debt |
67,527 | 1,122 | 6.67 | % | 67,527 | 1,123 | 6.67 | % | ||||||||||||||||
Long-term debt |
54,505 | 307 | 2.26 | % | 50,000 | 346 | 2.78 | % | ||||||||||||||||
Total interest-bearing liabilities |
1,625,121 | 6,046 | 1.49 | % | 1,569,299 | 8,199 | 2.09 | % | ||||||||||||||||
Noninterest-bearing : |
||||||||||||||||||||||||
Demand deposits |
207,554 | 164,001 | ||||||||||||||||||||||
Other liabilities |
25,697 | 14,266 | ||||||||||||||||||||||
Shareholders equity |
148,405 | 132,451 | ||||||||||||||||||||||
Total liabilities and
shareholders equity |
$ | 2,006,777 | $ | 1,880,017 | ||||||||||||||||||||
Net interest income / spread |
$ | 17,134 | 3.45 | % | $ | 16,328 | 3.42 | % | ||||||||||||||||
Net interest margin |
3.65 | % | 3.67 | % |
(1) | Interest income includes the effect of taxable-equivalent adjustment for 2011 and 2010 of
$27,000 and $27,000, respectively. |
|
(2) | Interest income includes the effect of taxable-equivalent adjustment for 2011 and 2010 of
$62,000 and $60,000, respectively. |