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| 8-K - 8-K - FIDELITY SOUTHERN CORP | lion1q148k-earnings.htm |
FOR IMMEDIATE RELEASE
Contacts: Martha Fleming, Steve Brolly
Fidelity Southern Corporation (404) 240-1504
FIDELITY SOUTHERN CORPORATION
EARNED $3.9 MILLION IN FOURTH QUARTER
ATLANTA, GA (January 23, 2014) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ: LION), holding company for Fidelity Bank (the “Bank”), today reported financial results for the three months and year ended December 31, 2013.
KEY RESULTS
• | Earned $3.9 million in fourth quarter and $27.6 million for the year |
• | Return on Average Assets of 0.61% for the quarter and 1.09% for the year |
• | Increased Tangible Book Value by $1.51 to $11.00 per share or 15.9%, year over year |
• | Commercial loan growth for the quarter of 3.5% and 4.2% year over year |
• | Core deposit growth for the quarter of 5.6% and 8.0% year over year |
• | Net charge off ratio annualized was 0.06% for the fourth quarter, compared to 0.27% for the third quarter, and 0.81% for the fourth quarter 2012 |
• | Reduction in Nonperforming asset ratio of 43% at 3.93% from 6.88% year over year |
• | Classified assets decreased $12.4 million or 9.5% for the quarter and $37.8 million or 24.2% for the year |
• | Funded closed Mortgage production of $425.7 million for the quarter and $2.5 billion for the year |
Fidelity's Chairman, Jim Miller, said, “Fourth quarter mortgage production shadowed a stellar performance of the Bank for the year. Nevertheless, the mortgage numbers show we have built a solidly profitable mortgage business. We expanded mortgage into Alabama in the quarter with plans for future growth. We were active in retail branching and in electronic delivery in 2013 and will be in 2014. Trust powers were applied for in the quarter which will permit us to offer family office services. In sum, every area of the bank is performing well, our growth is all organic, and we continue to build for the future.”
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||
Net Income | $ | 3,863 | $ | 7,851 | $ | 5,439 | $ | 27,638 | $ | 25,327 | ||||||||||
Basic EPS | $ | 0.18 | $ | 0.33 | $ | 0.31 | $ | 1.35 | $ | 1.48 | ||||||||||
Diluted EPS | $ | 0.16 | $ | 0.30 | $ | 0.27 | $ | 1.20 | $ | 1.31 | ||||||||||
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Asset Quality
The following table provides a comparison of the activity affecting the allowance for loan loss:
For the Quarter Ended | Year Ended December 31 | |||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | 2013 | 2012 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Net charge-offs | $ | 260 | $ | 1,199 | $ | 3,670 | $ | 6,832 | $ | 10,342 | ||||||||||
Net charge-off ratio, annualized | 0.06 | % | 0.27 | % | 0.81 | % | 0.38 | % | 0.60 | % | ||||||||||
Provision for loan losses | $ | 273 | $ | 1,122 | $ | 5,243 | $ | 5,441 | $ | 13,420 | ||||||||||
The allowance for loan losses at December 31, 2013, was $33.7 million, or 1.78% of total loans, compared to an allowance of $33.3 million, or 1.83% of total loans, at September 30, 2013, and $34.0 million, or 1.92% of total loans, at December 31, 2012.
The following table presents certain credit quality metrics of the Bank’s loan portfolio, inclusive of covered loans. Nonperforming assets include nonaccrual loans, net repossessions and other real estate (“ORE”). Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and other real estate. Classified asset ratio is classified assets as a percentage of Tier 1 capital plus allowance.
December 31, 2013 | September 30, 2013 | December 31, 2012 | |||||||||||||
($ in thousands) | |||||||||||||||
Nonperforming assets | $ | 75,629 | $ | 97,132 | $ | 125,062 | |||||||||
Classified assets | $ | 118,390 | $ | 130,795 | 156,238 | ||||||||||
Allowance for loan losses as a percentage of total loans | 1.78 | % | 1.83 | % | 1.92 | % | |||||||||
Classified asset ratio | 29.81 | % | 33.33 | % | 44.17 | % | |||||||||
Nonperforming assets ratio | 3.93 | % | 5.20 | % | 6.88 | % | |||||||||
ORE, net of reserves, decreased $3.5 million to $31.0 million at December 31, 2013, compared to $34.5 million at September 30, 2013. During the fourth quarter of 2013, $4.8 million of ORE assets were sold while $1.3 million were added.
Nonperforming loans and classified assets have continued to decline due in part to improved credit factors as well as loans moving to ORE and subsequently being sold.
Deposits
Total deposits of $2.2 billion at December 31, 2013, have increased $132.7 million from $2.1 billion as of December 31, 2012, due primarily to a $104.7 million increase in noninterest-bearing demand deposits as the Company continues to focus on core-deposit growth.
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December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||
$ | % | $ | % | $ | % | |||||||||||||||
($ in millions) | ||||||||||||||||||||
Core deposits(1) | $ | 1,800.0 | 81.7 | % | $ | 1,742.7 | 79.1 | % | $ | 1,666.0 | 80.4 | % | ||||||||
Time Deposits > $100,000 | 335.2 | 15.2 | % | 352.1 | 16.9 | % | 346.7 | 16.8 | % | |||||||||||
Brokered deposits | 67.4 | 3.1 | % | 74.5 | 4.0 | % | 56.9 | 2.8 | % | |||||||||||
Total deposits | $ | 2,202.6 | 100.0% | $ | 2,169.3 | 100.0% | $ | 2,069.6 | 100.0% | |||||||||||
Quarterly rate on deposits | 0.48% | 0.48% | 0.52% | |||||||||||||||||
(1) Core deposits are transactional, savings, and time deposits under $100,000. | ||||||||||||||||||||
NET INTEREST MARGIN
Net interest margin in the fourth quarter of 2013 was 3.59% consistent with the third quarter of 2013 result of 3.59%. In spite of the four basis point decline in the net interest margin from the fourth quarter of 2012, taxable equivalent net interest income was up $621,000 over the same quarter prior-year and $592,000 when compared to the three months ended September 30, 2013. The improvement is attributable primarily to declining average balances of and rates on interest-bearing liabilities as discussed in more detail in the Interest Expense section below. Excluding the accretion of the loan discount on purchased loans, the net interest margin was 3.53% for the fourth quarter of 2013 compared to 3.53% for the third quarter of 2013 and 3.62% for the fourth quarter of 2012.
Net interest margin was 3.59% for the year ended December 31, 2013, compared to 3.77% for the same period in 2012. Although the net interest margin decreased by eighteen basis points, taxable equivalent net interest income for the year ended December 31, 2013, increased $3.1 million, or 3.8%, to $84.1 million compared to $81.0 million for the same period in 2012 aided by a year over year 9.2% increase in average loan balances. Excluding the accretion of the loan discount on purchased loans, the net interest margin was 3.47% for the year ended December 31, 2013, and 3.68% for the same period in 2012.
INTEREST INCOME
Total interest income for the fourth quarter of 2013 decreased a small amount to $23.8 million from $24.3 million compared to the fourth quarter of 2012. In a linked-quarter comparison, interest income decreased $1.2 million largely attributable to a decrease in interest income from decreased loans held for sale production volume during the fourth quarter of 2013 as compared to the fourth quarter of 2012 .
For the year ended December 31, 2013, total interest income remained flat at $97.6 million compared to the same period in 2012.
INTEREST EXPENSE
Interest expense for the fourth quarter of 2013 decreased $1.1 million, or 27.5%, compared to the same period in 2012 due to a reduction of $600,000 in subordinated debt expense for the fourth quarter of 2013 from the repayment of $20.5 million in subordinated debt in the third quarter of 2013. On a linked-quarter basis, interest expense decreased $480,000 or 14.1% primarily attributable to a decrease in subordinated debt interest expense of $430,000 from the payoff of $20.5 million of subordinated debt in the third quarter of 2013.
For the year ended December 31, 2013, interest expense decreased $3.1 million, or 18.3%, to $14.0 million compared to $17.1 million for the same period in 2012. The decrease is primarily the result of a reduction in interest expense on time deposits expense of $1.0 million from a reduction in interest rates on
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time deposits, together with a decrease of $1.5 million in subordinated debt expense due to rate changes and the subordinated debt pay-offs.
NONINTEREST INCOME
For the quarter ended December 31, 2013, noninterest income was $17.8 million compared to $26.2 million in the fourth quarter of 2012. This decrease is primarily attributable to a $7.8 million decrease in noninterest income from mortgage banking activities primarily due to decreased production volume for the fourth quarter of 2013 compared to the fourth quarter of 2012.
For the year ended December 31, 2013, noninterest income increased $8.9 million, or 10.1%, to $96.9 million compared to $88.0 million for the same period in 2012. The increase is attributable to a $10.2 million increase in noninterest income from mortgage banking activities and a $2.6 million increase in noninterest income from indirect lending net of a slight decrease in other noninterest income of $2.5 million for 2013.
Mortgage Banking Activities
Since long term interest rates began to climb in the second half of 2013, significant contraction in refinance volume has continued to occur as the industry returns to a more normalized seasonal closed loan production model. Closed Mortgage loan fundings were $2.5 billion in 2013 vs. $2.2 billion in 2012 representing a 10% increase which compares favorably to the National Mortgage Bankers Association ("MBA") industry estimate of a 23% decline year over year.
Furthermore, the MBA expects to see $1.2 trillion in mortgage originations during 2014, a 32% decline from 2013. While the MBA expects purchase originations to increase 9%, it expects refinance originations to fall 57%. To address the current industry challenges, the Bank’s mortgage banking division will continue prudent production mortgage office growth, maintain tight expense controls and continue the focus of maintaining current revenue per loan benchmarks.
Mortgage banking margins were relatively flat for the quarter ended December 31, 2013 or 286 basis points on funded production of $425.7 million, after adjusting for the quarterly MSR impairment, compared to 285 basis points on funded production of $619.6 million for the previous quarter after adjusting for the prior quarter MSR impairment. Comprehensive revenue and expense measures continue to be made by management to maximize operational efficiency and target margin optimization.
Positive mortgage production trends were evident as new purchase loans (vs. refinances) accounted for 79% of total funded loan production in the fourth quarter of 2013. The Company continues to evaluate opportunities to increase market share and enter new markets where future growth is expected. During the fourth quarter of 2013, new mortgage offices were opened in Alabama, Maryland, and Georgia, with plans for further expansion expected to take place during the first quarter of 2014. The new mortgage offices have key management in place with twelve experienced loan officers hired with more coming soon, and it is anticipated that these locations will make a significant contribution in 2014.
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NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2013 was $32.5 million compared to $32.7 million for the same period in 2012 and remained relatively flat. On a linked quarter basis, noninterest expense decreased $1.6 million from $34.1 million for the third quarter of 2013 to $32.5 million for the fourth quarter of 2013 primarily attributable to a decrease in commission expense of $1.7 million from the reduced mortgage production for the fourth quarter of 2013.
For the year ended December 31, 2013, noninterest expense was $132.3 million compared to $115.4 million for the same period in 2012. The increase is largely attributable to an increase of $9.8 million in salaries and employee benefits and $2.8 million in higher commissions, both due to increased personnel primarily in the mortgage banking business.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 32 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided through employees located in eleven Southern and Mid-Atlantic states. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” from Fidelity Southern Corporation’s 2012 Annual Report filed on Form 10-K with the Securities and Exchange Commission.
-end-
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FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||||||
RESULTS OF OPERATIONS | |||||||||||||||||||||||||||
Net Interest Income | $ | 20,858 | $ | 21,529 | $ | 20,133 | $ | 21,075 | $ | 20,239 | $ | 83,595 | $ | 80,484 | |||||||||||||
Provision for Loan Losses | 273 | 1,122 | 570 | 3,476 | 5,243 | 5,440 | 13,420 | ||||||||||||||||||||
Non-Interest Income | 17,753 | 25,844 | 28,240 | 25,047 | 26,186 | 96,885 | 87,969 | ||||||||||||||||||||
Non-Interest Expense | 32,538 | 34,102 | 33,159 | 32,524 | 32,654 | 132,325 | 115,397 | ||||||||||||||||||||
Income Tax Expense | 1,937 | 4,298 | 5,211 | 3,631 | 3,089 | 15,077 | 14,309 | ||||||||||||||||||||
Net Income | 3,863 | 7,851 | 9,433 | 6,491 | 5,439 | 27,638 | 25,327 | ||||||||||||||||||||
Preferred Stock Dividends | — | (817 | ) | (823 | ) | (823 | ) | (823 | ) | (2,463 | ) | (3,292 | ) | ||||||||||||||
Net Income Available to Common Shareholders | $ | 3,863 | $ | 7,034 | $ | 8,610 | $ | 5,668 | $ | 4,616 | $ | 25,175 | $ | 22,035 | |||||||||||||
PERFORMANCE | |||||||||||||||||||||||||||
Earnings Per Share - Basic (1) | $ | 0.18 | $ | 0.33 | $ | 0.52 | $ | 0.37 | $ | 0.31 | $ | 1.35 | $ | 1.48 | |||||||||||||
Earnings Per Share - Diluted (1) | $ | 0.16 | $ | 0.30 | $ | 0.46 | $ | 0.33 | $ | 0.27 | $ | 1.20 | $ | 1.31 | |||||||||||||
Return on Average Assets | 0.61 | % | 1.20 | % | 1.47 | % | 1.07 | % | 0.88 | % | 1.09 | % | 1.08 | % | |||||||||||||
Return on Average Equity | 6.54 | % | 12.04 | % | 17.40 | % | 13.57 | % | 11.36 | % | 12.20 | % | 14.19 | % | |||||||||||||
NET INTEREST MARGIN | |||||||||||||||||||||||||||
Interest Earning Assets | 4.09 | % | 4.15 | % | 4.05 | % | 4.55 | % | 4.35 | % | 4.18 | % | 4.56 | % | |||||||||||||
Cost of Funds | 0.64 | % | 0.72 | % | 0.77 | % | 0.84 | % | 0.86 | % | 0.74 | % | 0.94 | % | |||||||||||||
Net Interest Spread | 3.45 | % | 3.43 | % | 3.28 | % | 3.71 | % | 3.49 | % | 3.44 | % | 3.62 | % | |||||||||||||
Net Interest Margin | 3.59 | % | 3.59 | % | 3.42 | % | 3.77 | % | 3.63 | % | 3.59 | % | 3.77 | % | |||||||||||||
CAPITAL | |||||||||||||||||||||||||||
Cash Dividends Per Share | $ | 0.04 | $ | 0.02 | $ | — | $ | — | $ | — | $ | 0.06 | $ | — | |||||||||||||
Dividend Payout Ratio | 5.56 | % | 1.52 | % | — | % | — | % | — | % | 4.44 | % | — | % | |||||||||||||
Tier 1 Risk-Based Capital | 12.71 | % | 12.97 | % | 15.62 | % | 12.22 | % | 12.06 | % | 12.71 | % | 12.06 | % | |||||||||||||
Total Risk-Based Capital | 13.96 | % | 14.23 | % | 16.88 | % | 13.48 | % | 13.43 | % | 13.96 | % | 13.43 | % | |||||||||||||
Leverage Ratio | 11.02 | % | 10.53 | % | 12.96 | % | 10.51 | % | 10.18 | % | 11.02 | % | 10.18 | % | |||||||||||||
AVERAGE BALANCE SHEET | |||||||||||||||||||||||||||
Loans Held for Sale | $ | 192,851 | $ | 317,445 | $ | 359,519 | $ | 295,018 | $ | 192,851 | $ | 241,446 | $ | 135,263 | |||||||||||||
Loans, Net of Unearned Income | 1,868,507 | 1,812,251 | 1,791,398 | 1,801,532 | 1,852,124 | 1,868,130 | 1,796,450 | ||||||||||||||||||||
Investment Securities | 173,422 | 175,230 | 170,362 | 161,861 | 174,810 | 170,265 | 200,208 | ||||||||||||||||||||
Earning Assets | 2,320,811 | 2,393,062 | 2,379,048 | 2,281,648 | 2,230,918 | 2,343,871 | 2,148,428 | ||||||||||||||||||||
Total Assets | 2,524,207 | 2,599,578 | 2,578,033 | 2,468,538 | 2,454,244 | 2,543,145 | 2,345,176 | ||||||||||||||||||||
Deposits | 2,150,545 | 2,148,659 | 2,079,569 | 2,031,877 | 2,022,445 | 2,103,465 | 1,933,473 | ||||||||||||||||||||
Borrowings | 113,528 | 166,261 | 259,616 | 256,616 | 211,385 | 189,995 | 207,035 | ||||||||||||||||||||
Shareholders' Equity | 234,314 | 258,672 | 217,491 | 194,559 | 190,426 | 226,457 | 178,517 | ||||||||||||||||||||
STOCK PERFORMANCE | |||||||||||||||||||||||||||
Market Price: | |||||||||||||||||||||||||||
Closing (1) | $ | 16.61 | $ | 15.34 | $ | 12.28 | $ | 11.33 | $ | 9.31 | $ | 16.61 | $ | 9.31 | |||||||||||||
High Close (1) | $ | 17.87 | $ | 15.98 | $ | 13.06 | $ | 11.63 | $ | 9.93 | $ | 15.98 | $ | 9.93 | |||||||||||||
Low Close (1) | $ | 15.27 | $ | 12.56 | $ | 10.73 | $ | 9.31 | $ | 8.54 | $ | 9.31 | $ | 5.43 | |||||||||||||
Daily Average Trading Volume | 53,979 | 90,413 | 52,693 | 30,591 | 16,474 | 58,118 | 28,166 | ||||||||||||||||||||
Book Value Per Common Share (1) | $ | 11.11 | $ | 11.04 | $ | 10.81 | $ | 10.22 | $ | 9.95 | $ | 11.11 | $ | 9.95 | |||||||||||||
Price to Book Value | 1.50 | 1.39 | 1.14 | 1.11 | 0.94 | 1.50 | 0.94 | ||||||||||||||||||||
Tangible Book Value Per Common Share (1) | 11.00 | 10.92 | 10.69 | 10.05 | 9.77 | 11.00 | 9.77 | ||||||||||||||||||||
Price to Tangible Book Value | 1.51 | 1.40 | 1.15 | 1.13 | 0.95 | 1.51 | 0.95 | ||||||||||||||||||||
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FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||||||||||||
ASSET QUALITY | |||||||||||||||||||||||||||
Total Non-Performing Loans | $ | 43,427 | $ | 61,458 | $ | 72,388 | $ | 81,740 | $ | 83,681 | $ | 43,427 | $ | 83,681 | |||||||||||||
Total Non-Performing Assets | $ | 75,629 | $ | 97,132 | $ | 114,492 | $ | 123,597 | $ | 125,062 | $ | 75,629 | $ | 125,062 | |||||||||||||
Loans 90 Days Past Due and Still Accruing | $ | — | $ | — | $ | — | $ | 141 | $ | — | $ | — | $ | — | |||||||||||||
Including Covered Loans: | |||||||||||||||||||||||||||
Non-Performing Loans as a % of Loans | 3.25 | % | 3.95 | % | 4.60 | % | 4.60 | % | 5.07 | % | 3.25 | % | 5.07 | % | |||||||||||||
Non-Performing assets as a % of Loans Plus ORE | 3.93 | % | 5.20 | % | 6.32 | % | 6.80 | % | 6.88 | % | 3.93 | % | 6.88 | % | |||||||||||||
ALL to Non-Performing Loans | 77.56 | % | 54.77 | % | 46.01 | % | 41.49 | % | 40.61 | % | 77.56 | % | 40.61 | % | |||||||||||||
ALL as a % of Loans, at End of Period | 1.78 | % | 1.83 | % | 1.86 | % | 1.86 | % | 1.92 | % | 1.78 | % | 1.92 | % | |||||||||||||
Excluding Covered Loans: | |||||||||||||||||||||||||||
Non-Performing Loans as a % of Loans | 2.21 | % | 2.08 | % | 2.47 | % | 3.00 | % | 3.40 | % | 2.21 | % | 3.4 | % | |||||||||||||
Non-Performing assets as a % of Loans Plus ORE | 3.54 | % | 3.56 | % | 4.14 | % | 4.37 | % | 4.74 | % | 3.54 | % | 4.74 | % | |||||||||||||
ALL to Non-Performing Loans | 83.11 | % | 82.63 | % | 72.82 | % | 4.37 | % | 54.37 | % | 83.11 | % | 54.37 | % | |||||||||||||
Net Charge-Offs During the Period to Average Loans, annualized | 0.06 | % | 0.27 | % | 0.40 | % | 0.86 | % | 0.81 | % | 0.38 | % | 0.60 | % | |||||||||||||
ALL as a % of Loans, at End of Period | 1.80 | % | 1.93 | % | 1.96 | % | 1.95 | % | 2.01 | % | 1.80 | % | 1.91 | % | |||||||||||||
OTHER INFORMATION | |||||||||||||||||||||||||||
Non-Interest Income to Revenues | 45.98 | % | 54.55 | % | 58.38 | % | 54.31 | % | 56.40 | % | 53.68 | % | 52.22 | % | |||||||||||||
End of Period Shares Outstanding | 21,257,519 | 21,139,712 | 20,839,642 | 14,847,848 | 14,633,836 | 21,257,519 | 14,633,836 | ||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (1) | 21,384,732 | 21,341,695 | 16,509,686 | 15,171,012 | 15,052,787 | 18,626,312 | 14,895,044 | ||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (1) | 24,118,225 | 23,716,869 | 18,555,821 | 17,193,697 | 17,072,756 | 20,956,408 | 16,793,178 | ||||||||||||||||||||
Full-Time Equivalent Employees | 889.9 | 865.1 | 843.1 | 806.0 | 774.2 | 889.9 | 774.2 | ||||||||||||||||||||
(1) Adjusted for stock dividends and retroactive application on shares outstanding.
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FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
($ in thousands, except per share amount) | ||||||||||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||||
Loans, including fees | $ | 22,639 | $ | 23,900 | $ | 22,949 | $ | 23,944 | $ | 23,121 | $ | 93,432 | $ | 92,485 | ||||||||||||||
Investment securities | 1,095 | 977 | 910 | 1,028 | 1,141 | 4,010 | 5,044 | |||||||||||||||||||||
Federal funds sold and bank deposits | 43 | 53 | 15 | 3 | 5 | 114 | 33 | |||||||||||||||||||||
Total interest income | 23,777 | 24,930 | 23,874 | 24,975 | 24,267 | 97,556 | 97,562 | |||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Deposits | 2,590 | 2,601 | 2,600 | 2,627 | 2,722 | 10,418 | 11,073 | |||||||||||||||||||||
Short-term borrowings | 37 | 73 | 263 | 404 | 425 | 777 | 1,306 | |||||||||||||||||||||
Subordinated debt | 282 | 716 | 868 | 867 | 881 | 2,733 | 4,242 | |||||||||||||||||||||
Other long-term debt | 10 | 11 | 10 | 2 | — | 33 | 457 | |||||||||||||||||||||
Total interest expense | 2,919 | 3,401 | 3,741 | 3,900 | 4,028 | 13,961 | 17,078 | |||||||||||||||||||||
Net interest income | 20,858 | 21,529 | 20,133 | 21,075 | 20,239 | 83,595 | 80,484 | |||||||||||||||||||||
Provision for loan losses | 273 | 1,122 | 570 | 3,476 | 5,243 | 5,440 | 13,420 | |||||||||||||||||||||
Net interest income after provision for loan losses | 20,585 | 20,407 | 19,563 | 17,599 | 14,996 | 78,155 | 67,064 | |||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 1,119 | 1,075 | 1,020 | 949 | 1,122 | 4,163 | 4,694 | |||||||||||||||||||||
Other fees and charges | 1,012 | 997 | 975 | 887 | 883 | 3,871 | 3,360 | |||||||||||||||||||||
Mortgage banking activities | 10,798 | 17,809 | 20,158 | 17,795 | 18,653 | 66,560 | 56,332 | |||||||||||||||||||||
Indirect lending activities | 2,030 | 2,583 | 2,781 | 1,646 | 1,477 | 9,040 | 6,414 | |||||||||||||||||||||
SBA lending activities | 492 | 647 | 1,417 | 1,084 | 715 | 3,640 | 4,944 | |||||||||||||||||||||
Bank owned life insurance | 308 | 326 | 326 | 313 | 323 | 1,273 | 1,307 | |||||||||||||||||||||
Securities gains | 188 | — | 1 | — | — | 189 | 307 | |||||||||||||||||||||
Other | 1,806 | 2,407 | 1,562 | 2,373 | 3,013 | 8,149 | 10,611 | |||||||||||||||||||||
Total noninterest income | 17,753 | 25,844 | 28,240 | 25,047 | 26,186 | 96,885 | 87,969 | |||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and employee benefits | 14,660 | 14,424 | 14,278 | 14,282 | 13,341 | 57,645 | 47,832 | |||||||||||||||||||||
Commissions | 4,288 | 6,019 | 7,979 | 6,390 | 7,545 | 24,676 | 21,817 | |||||||||||||||||||||
Net occupancy | 2,799 | 2,844 | 2,291 | 2,407 | 2,400 | 10,342 | 9,253 | |||||||||||||||||||||
Communication | 856 | 754 | 805 | 760 | 647 | 3,175 | 2,646 | |||||||||||||||||||||
Other | 9,935 | 10,061 | 7,806 | 8,685 | 8,721 | 36,487 | 33,849 | |||||||||||||||||||||
Total noninterest expense | 32,538 | 34,102 | 33,159 | 32,524 | 32,654 | 132,325 | 115,397 | |||||||||||||||||||||
Income before income tax expense | 5,800 | 12,149 | 14,644 | 10,122 | 8,528 | 42,715 | 39,636 | |||||||||||||||||||||
Income tax expense | 1,937 | 4,298 | 5,211 | 3,631 | 3,089 | 15,077 | 14,309 | |||||||||||||||||||||
NET INCOME | 3,863 | 7,851 | 9,433 | 6,491 | 5,439 | 27,638 | 25,327 | |||||||||||||||||||||
Preferred stock dividends and discount accretion | — | (817 | ) | (823 | ) | (823 | ) | (823 | ) | (2,463 | ) | (3,292 | ) | |||||||||||||||
Net income available to common equity | $ | 3,863 | $ | 7,034 | $ | 8,610 | $ | 5,668 | $ | 4,616 | $ | 25,175 | $ | 22,035 | ||||||||||||||
EARNINGS PER SHARE: (1) | ||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.18 | $ | 0.33 | $ | 0.52 | $ | 0.37 | $ | 0.31 | $ | 1.35 | $ | 1.48 | ||||||||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.30 | $ | 0.46 | $ | 0.33 | $ | 0.27 | $ | 1.20 | $ | 1.31 | ||||||||||||||
Weighted average common shares outstanding-basic | 21,384,732 | 21,341,695 | 16,509,686 | 15,171,012 | 15,052,787 | 18,626,312 | 14,895,044 | |||||||||||||||||||||
Weighted average common shares outstanding-diluted | 24,118,225 | 23,716,869 | 18,555,821 | 17,193,697 | 17,072,756 | 20,956,408 | 16,793,178 | |||||||||||||||||||||
( 1) Adjusted for stock dividends and retroactive application on shares outstanding
8
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 116,559 | $ | 140,871 | $ | 158,837 | $ | 40,262 | $ | 49,020 | ||||||||||
Investment securities available-for-sale | 168,865 | 170,338 | 163,764 | 153,285 | 154,367 | |||||||||||||||
Investment securities held-to-maturity | 4,051 | 4,468 | 4,978 | 5,523 | 6,162 | |||||||||||||||
Investment in FHLB stock | 4,994 | 6,119 | 8,594 | 7,919 | 7,330 | |||||||||||||||
Loans held-for-sale | 187,367 | 216,736 | 355,017 | 325,941 | 304,094 | |||||||||||||||
Loans | 1,893,037 | 1,831,708 | 1,775,972 | 1,817,263 | 1,777,031 | |||||||||||||||
Allowance for loan losses | (33,684 | ) | (33,661 | ) | (33,309 | ) | (33,910 | ) | (33,982 | ) | ||||||||||
Loans, net of allowance for loan losses | 1,859,353 | 1,798,047 | 1,742,663 | 1,783,353 | 1,743,049 | |||||||||||||||
FDIC indemnification asset | 14,136 | 17,103 | 16,542 | 16,535 | 20,074 | |||||||||||||||
Premises and equipment, net | 44,555 | 41,964 | 41,843 | 38,508 | 37,669 | |||||||||||||||
Other real estate, net | 30,982 | 34,493 | 40,882 | 38,951 | 39,756 | |||||||||||||||
Bank owned life insurance | 33,855 | 33,575 | 33,276 | 32,978 | 32,693 | |||||||||||||||
Deferred tax asset, net | 19,384 | 20,886 | 22,401 | 21,248 | 21,145 | |||||||||||||||
Servicing rights | 53,202 | 52,048 | 44,734 | 36,529 | 30,244 | |||||||||||||||
Other assets | 26,865 | 30,834 | 41,702 | 31,217 | 31,688 | |||||||||||||||
Total Assets | $ | 2,564,168 | $ | 2,567,482 | $ | 2,675,233 | $ | 2,532,249 | $ | 2,477,291 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 488,224 | $ | 448,087 | $ | 433,565 | $ | 384,869 | $ | 383,559 | ||||||||||
Interest-bearing deposits: | 1,714,228 | 1,721,188 | 1,721,482 | 1,673,132 | 1,686,165 | |||||||||||||||
Total deposits | 2,202,452 | 2,169,275 | 2,155,047 | 2,058,001 | 2,069,724 | |||||||||||||||
Federal Funds Purchased | 35,000 | 60,000 | 115,000 | 100,000 | 88,500 | |||||||||||||||
Short-term borrowings | 14,233 | 18,422 | 18,641 | 76,051 | 37,160 | |||||||||||||||
Subordinated debt | 46,393 | 46,393 | 67,527 | 67,527 | 67,527 | |||||||||||||||
Other long-term debt | 10,000 | 10,000 | 10,000 | 10,000 | — | |||||||||||||||
Other liabilities | 19,860 | 30,092 | 35,916 | 21,369 | 21,492 | |||||||||||||||
Total Liabilities | 2,327,938 | 2,334,182 | 2,402,131 | 2,332,948 | 2,284,403 | |||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Preferred stock | — | — | 47,785 | 47,564 | 47,344 | |||||||||||||||
Common stock | 158,153 | 156,156 | 153,107 | 84,777 | 82,499 | |||||||||||||||
Accumulated other comprehensive gain, net of tax | 968 | 1,723 | 1,475 | 3,376 | 3,545 | |||||||||||||||
Retained earnings | 77,109 | 75,421 | 70,735 | 63,584 | 59,500 | |||||||||||||||
Total shareholders’ equity | 236,230 | 233,300 | 273,102 | 199,301 | 192,888 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 2,564,168 | $ | 2,567,482 | $ | 2,675,233 | $ | 2,532,249 | $ | 2,477,291 | ||||||||||
Book Value Per Common Share | $ | 11.11 | $ | 11.04 | $ | 10.81 | $ | 10.22 | $ | 9.95 | ||||||||||
Shares of Common Stock Outstanding (1) | 21,257,519 | 21,139,712 | 20,839,642 | 14,847,848 | 14,633,836 | |||||||||||||||
( 1) Adjusted for stock dividends and retroactive application on shares outstanding
9
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Commercial | $ | 530,977 | $ | 512,875 | $ | 507,188 | $ | 517,203 | $ | 509,243 | ||||||||||
SBA loans | 134,823 | 133,867 | 131,771 | 126,435 | 121,428 | |||||||||||||||
Total Commercial and SBA Loans | 665,800 | 646,742 | 638,959 | 643,638 | 630,671 | |||||||||||||||
Construction | 101,698 | 99,379 | 100,986 | 94,651 | 89,924 | |||||||||||||||
Indirect loans | 975,223 | 942,217 | 904,098 | 959,471 | 930,232 | |||||||||||||||
Installment loans | 13,473 | 14,270 | 15,557 | 13,824 | 18,774 | |||||||||||||||
Total Consumer Loans | 988,696 | 956,487 | 919,655 | 973,295 | 949,006 | |||||||||||||||
First Mortgage Loans | 60,928 | 51,807 | 41,815 | 38,501 | 37,785 | |||||||||||||||
Second Mortgage Loans | 75,915 | 77,293 | 74,557 | 67,178 | 69,645 | |||||||||||||||
Total Mortgage Loans | 136,843 | 129,100 | 116,372 | 105,679 | 107,430 | |||||||||||||||
Loans | 1,893,037 | 1,831,708 | 1,775,972 | 1,817,263 | 1,777,031 | |||||||||||||||
Loans Held-For-Sale: | ||||||||||||||||||||
Residential Mortgage | 127,850 | 174,409 | 309,175 | 281,839 | 253,108 | |||||||||||||||
SBA | 9,517 | 7,327 | 10,842 | 14,102 | 20,986 | |||||||||||||||
Indirect Auto | 50,000 | 35,000 | 35,000 | 30,000 | 30,000 | |||||||||||||||
Total Loans Held-For-Sale | 187,367 | 216,736 | 355,017 | 325,941 | 304,094 | |||||||||||||||
Total Loans | $ | 2,080,404 | $ | 2,048,444 | $ | 2,130,989 | $ | 2,143,204 | $ | 2,081,125 | ||||||||||
Non-Covered Loans | $ | 1,834,675 | $ | 1,768,384 | $ | 1,691,258 | $ | 1,743,092 | $ | 1,699,892 | ||||||||||
Covered Loans | 58,362 | 63,324 | 84,714 | 74,171 | 77,139 | |||||||||||||||
Loans Held-For-Sale | 187,367 | 216,736 | 355,017 | 325,941 | 304,094 | |||||||||||||||
Total Loans | $ | 2,080,404 | $ | 2,048,444 | $ | 2,130,989 | $ | 2,143,204 | $ | 2,081,125 | ||||||||||
10
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
Three Months Ended | Year Ended | ||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||
Balance at Beginning of Period | $ | 33,661 | $ | 33,309 | $ | 33,910 | $ | 33,982 | $ | 31,476 | $ | 33,982 | $ | 27,956 | |||||||||||||
Net Charge-Offs (Recoveries): | |||||||||||||||||||||||||||
Commercial, Financial, and Agricultural | (207 | ) | 335 | 164 | 2,416 | 421 | 2,708 | 1,090 | |||||||||||||||||||
SBA | 10 | 108 | 559 | 56 | 271 | 733 | 455 | ||||||||||||||||||||
Real Estate Construction | (291 | ) | (241 | ) | 40 | 118 | (78 | ) | (374 | ) | 2,798 | ||||||||||||||||
Real Estate Mortgage | 41 | 67 | 27 | 393 | 30 | 528 | 632 | ||||||||||||||||||||
Consumer Installment | 707 | 930 | 931 | 669 | 3,026 | 3,237 | 5,367 | ||||||||||||||||||||
Total Net Charge-Offs | 260 | 1,199 | 1,721 | 3,652 | 3,670 | 6,832 | 10,342 | ||||||||||||||||||||
Provision for Loan Losses | 273 | 1,122 | 570 | 3,476 | 5,243 | 5,441 | 13,420 | ||||||||||||||||||||
Indemnification - Covered Loans | 10 | 429 | 550 | 104 | 933 | 1,093 | 2,948 | ||||||||||||||||||||
Balance at End of Period | $ | 33,684 | $ | 33,661 | $ | 33,309 | $ | 33,910 | $ | 33,982 | $ | 33,684 | $ | 33,982 | |||||||||||||
Ratio of Net Charge-Offs during the Period to Average Loans Outstanding, Net, annualized | 0.06 | % | 0.27 | % | 0.40 | % | 0.86 | % | 0.81 | % | 0.38 | % | 0.60 | % | |||||||||||||
Allowance for Loan Losses as a Percentage of Loans | 1.78 | % | 1.83 | % | 1.86 | % | 1.86 | % | 1.92 | % | 1.78 | % | 1.80 | % | |||||||||||||
Allowance for Loan Losses as a Percentage of Loans Excluding Covered Loans | 1.80 | % | 1.93 | % | 1.96 | % | 1.95 | % | 2.01 | % | 1.80 | % | 1.91 | % | |||||||||||||
NONPERFORMING ASSETS
(UNAUDITED)
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Non-Covered Nonperforming Assets | |||||||||||||||||||
Nonaccrual Loans | $ | 40,531 | $ | 36,711 | $ | 41,757 | $ | 52,220 | $ | 57,713 | |||||||||
Repossessions | 1,220 | 1,181 | 1,222 | 975 | 1,625 | ||||||||||||||
Other Real Estate | 24,021 | 26,016 | 28,342 | 24,048 | 22,429 | ||||||||||||||
Total Non-Covered Nonperforming Assets | $ | 65,772 | $ | 63,908 | $ | 71,321 | $ | 77,243 | $ | 81,767 | |||||||||
*** Includes SBA Guaranteed Amounts of Approximately | $ | 7,869 | $ | 13,115 | $ | 14,379 | $ | 16,668 | $ | 12,085 | |||||||||
Non-Covered Loans Past Due 90 Days or More and Still Accruing | $ | — | $ | — | $ | — | $ | 141 | $ | — | |||||||||
Non-Covered Loans 30-89 Days Past Due | $ | 5,618 | $ | 7,915 | $ | 6,197 | $ | 12,152 | $ | 5,028 | |||||||||
Ratio of Non-Covered Loans Past Due 90 Days or More and Still Accruing to Total Non-Covered Loans | — | % | — | % | — | % | 0.01 | % | — | % | |||||||||
Ratio of Non-Covered Loans 30-89 Days Past Due to Total Non-Covered Loans | 0.31 | % | 0.45 | % | 0.37 | % | 0.70 | % | 0.30 | % | |||||||||
Ratio of Non-Covered Nonperforming Assets to Total Non-Covered Loans, ORE, and Repossessions | 3.54 | % | 3.56 | % | 4.14 | % | 4.37 | % | 4.74 | % | |||||||||
Covered Nonperforming Assets | |||||||||||||||||||
Nonaccrual Loans | $ | 2,896 | $ | 24,747 | $ | 30,631 | $ | 29,520 | $ | 25,968 | |||||||||
Other Real Estate | 6,961 | 8,477 | 12,540 | 16,834 | 17,327 | ||||||||||||||
Covered Nonperforming Assets | $ | 9,857 | $ | 33,224 | $ | 43,171 | $ | 46,354 | $ | 43,295 | |||||||||
Classified Assets | |||||||||||||||||||
Classified Loans | $ | 86,188 | $ | 95,121 | $ | 101,919 | $ | 112,036 | $ | 114,857 | |||||||||
ORE and Repossessions | 32,202 | 35,674 | 42,104 | 41,857 | 41,381 | ||||||||||||||
Total Classified Assets | $ | 118,390 | $ | 130,795 | $ | 144,023 | $ | 153,893 | $ | 156,238 | |||||||||
11
FIDELITY SOUTHERN CORPORATION | ||||||||||||||||||||||
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Average loans outstanding | $ | 1,010,229 | $ | 957,737 | $ | 947,351 | $ | 953,722 | $ | 966,082 | ||||||||||||
Past due loans: | ||||||||||||||||||||||
$ amount of indirect loans past due | $ | 1,561 | $ | 929 | $ | 1,360 | $ | 1,159 | $ | 1,262 | ||||||||||||
# of indirect loans past due | 130 | 130 | 173 | 162 | 197 | |||||||||||||||||
Net charge-offs | $ | 703 | $ | 908 | $ | 909 | $ | 667 | $ | 989 | ||||||||||||
# of repossessed vehicles | 207 | 177 | 181 | 151 | 181 | |||||||||||||||||
Non-performing loans | $ | 806 | $ | 925 | $ | 594 | $ | 872 | $ | 982 | ||||||||||||
30+ day performing delinquency rate | 0.15 | % | 0.11 | % | 0.14 | % | 0.12 | % | 0.14 | % | ||||||||||||
Net charge-off rate | 0.33 | % | 0.34 | % | 0.33 | % | 0.28 | % | 0.37 | % | ||||||||||||
Average beacon score | 741 | 752 | 755 | 742 | 747 | |||||||||||||||||
Production by State: | ||||||||||||||||||||||
Alabama | $ | 19,798 | $ | 22,599 | $ | 16,576 | $ | 16,847 | $ | 14,322 | ||||||||||||
Arkansas | 16,352 | 13,757 | 7,728 | 4,760 | 3,514 | |||||||||||||||||
North Carolina | 18,731 | 19,292 | 18,750 | 15,226 | 11,828 | |||||||||||||||||
South Carolina | 13,302 | 10,322 | 10,180 | 7,550 | 6,356 | |||||||||||||||||
Florida | 76,253 | 77,873 | 72,676 | 67,243 | 59,782 | |||||||||||||||||
Georgia | 43,064 | 44,171 | 38,203 | 42,218 | 34,484 | |||||||||||||||||
Mississippi | 20,341 | 23,292 | 19,626 | 20,148 | 16,990 | |||||||||||||||||
Tennessee | 13,674 | 17,122 | 19,347 | 14,858 | 8,674 | |||||||||||||||||
Virginia | 11,040 | 11,877 | 10,339 | 8,601 | 6,241 | |||||||||||||||||
Texas | $ | 5,045 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Total production by State | $ | 237,600 | $ | 240,305 | $ | 213,425 | $ | 197,451 | $ | 162,191 | ||||||||||||
Outstanding by State: | ||||||||||||||||||||||
Alabama | 8.92 | % | 8.93 | % | 8.89 | % | 9.22 | % | 9.29 | % | ||||||||||||
Arkansas | 3.24 | % | 2.37 | % | 1.42 | % | 0.81 | % | 0.52 | % | ||||||||||||
North Carolina | 8.27 | % | 8.30 | % | 8.37 | % | 8.31 | % | 8.41 | % | ||||||||||||
South Carolina | 3.73 | % | 3.34 | % | 3.26 | % | 2.99 | % | 2.94 | % | ||||||||||||
Florida | 32.62 | % | 32.80 | % | 33.07 | % | 33.41 | % | 33.40 | % | ||||||||||||
Georgia | 23.22 | % | 24.38 | % | 25.76 | % | 27.11 | % | 28.45 | % | ||||||||||||
Mississippi | 8.41 | % | 8.48 | % | 7.92 | % | 7.50 | % | 6.81 | % | ||||||||||||
Tennessee | 7.42 | % | 7.87 | % | 8.19 | % | 7.95 | % | 7.85 | % | ||||||||||||
Virginia | 3.77 | % | 3.53 | % | 3.12 | % | 2.70 | % | 2.33 | % | ||||||||||||
Texas | 0.40 | % | — | % | — | % | — | % | — | % | ||||||||||||
Total outstanding serviced by State | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||||||
Loan sales | $ | 88,153 | $ | 93,602 | $ | 152,418 | $ | 58,073 | $ | 48,166 | ||||||||||||
Yield | 3.65 | % | 3.71 | % | 3.85 | % | 4.00 | % | 4.06 | % | ||||||||||||
INDIRECT LENDING ACTIVITIES | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Servicing income, net | $ | 1,237 | $ | 1,186 | $ | 1,012 | $ | 834 | $ | 926 | ||||||||||||
Marketing gain, net | 793 | 1,397 | 1,769 | 812 | 551 | |||||||||||||||||
Total indirect lending activities | $ | 2,030 | $ | 2,583 | $ | 2,781 | $ | 1,646 | $ | 1,477 | ||||||||||||
12
FIDELITY SOUTHERN CORPORATION | ||||||||||||||||||||||
ANALYSIS OF MORTGAGE LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Average loans outstanding | $ | 194,626 | $ | 328,038 | $ | 297,024 | $ | 284,910 | $ | 257,740 | ||||||||||||
Average servicing outstanding | $ | 4,221,134 | $ | 3,953,760 | $ | 3,239,672 | $ | 2,817,771 | $ | 2,425,493 | ||||||||||||
% of loan production for purchases | 78.72 | % | 74.13 | % | 58.30 | % | 36.78 | % | 34.45 | % | ||||||||||||
% of loan production for refinance loans | 21.28 | % | 25.87 | % | 41.70 | % | 63.22 | % | 65.55 | % | ||||||||||||
Production by State: | ||||||||||||||||||||||
Georgia | $ | 259,289 | $ | 353,187 | $ | 427,815 | $ | 392,749 | $ | 498,542 | ||||||||||||
Florida | 19,724 | 17,807 | 24,025 | 15,862 | 36,193 | |||||||||||||||||
Virginia | 91,494 | 151,573 | 167,099 | 111,126 | 126,901 | |||||||||||||||||
Total retail | 370,507 | 522,567 | 618,939 | 519,737 | 661,636 | |||||||||||||||||
Wholesale | 55,149 | 96,773 | 165,022 | 136,508 | 150,648 | |||||||||||||||||
Total production | $ | 425,656 | $ | 619,340 | $ | 783,961 | $ | 656,245 | $ | 812,284 | ||||||||||||
Loan sales | $ | 467,932 | $ | 753,196 | $ | 756,224 | $ | 634,074 | $ | 701,018 | ||||||||||||
Yield | 4.08 | % | 4.38 | % | 3.15 | % | 3.43 | % | 3.58 | % | ||||||||||||
MORTGAGE BANKING ACTIVITIES | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | December 31, 2012 | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||
Marketing gain, net | $ | 8,568 | $ | 12,785 | $ | 13,916 | $ | 12,684 | $ | 13,909 | ||||||||||||
Origination points and fees | 2,474 | 3,806 | 4,212 | 3,452 | 3,879 | |||||||||||||||||
Loan Servicing Revenue | 2,609 | 2,402 | 2,021 | 1,760 | 1,604 | |||||||||||||||||
MSR amortization and impairment adjustments. | (2,853 | ) | (1,184 | ) | 9 | (101 | ) | (739 | ) | |||||||||||||
Total mortgage banking activities | $ | 10,798 | $ | 17,809 | $ | 20,158 | $ | 17,795 | $ | 18,653 | ||||||||||||
Non-cash items from mortgage banking activities: | ||||||||||||||||||||||
Capitalized MSR, net | $ | 3,992 | $ | 7,367 | $ | 5,934 | $ | 4,467 | $ | 4,991 | ||||||||||||
Valuation on MSR | (1,360 | ) | 138 | 1,551 | 1,609 | 702 | ||||||||||||||||
Mark to market adjustments | 344 | 2,605 | (6,634 | ) | (2,345 | ) | (3,810 | ) | ||||||||||||||
Total non-cash items | $ | 2,976 | $ | 10,110 | $ | 851 | $ | 3,731 | $ | 1,883 | ||||||||||||
13
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
Year Ended | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income: | |||||||||||||||||||||
Taxable | $ | 2,101,913 | $ | 93,184 | 4.43 | % | $ | 1,926,904 | $ | 92,347 | 4.79 | % | |||||||||
Tax-exempt (1) | 7,662 | 383 | 4.99 | % | 4,810 | 207 | 4.30 | % | |||||||||||||
Total loans | 2,109,575 | 93,567 | 4.44 | % | 1,931,714 | 92,554 | 4.79 | % | |||||||||||||
Investment securities: | |||||||||||||||||||||
Taxable | 154,108 | 3,350 | 2.17 | % | 181,489 | 4,255 | 2.34 | % | |||||||||||||
Tax-exempt (2) | 16,157 | 1,016 | 6.29 | % | 18,719 | 1,200 | 6.41 | % | |||||||||||||
Total investment securities | 170,265 | 4,366 | 2.56 | % | 200,208 | 5,455 | 2.72 | % | |||||||||||||
Interest-bearing deposits | 62,411 | 114 | 0.18 | % | 15,583 | 32 | 0.21 | % | |||||||||||||
Federal funds sold | 1,620 | 1 | 0.05 | % | 923 | 1 | 0.06 | % | |||||||||||||
Total interest-earning assets | 2,343,871 | 98,048 | 4.18 | % | 2,148,428 | 98,042 | 4.56 | % | |||||||||||||
Noninterest-earning: | |||||||||||||||||||||
Cash and due from banks | 15,505 | 24,862 | |||||||||||||||||||
Allowance for loan losses | (33,512 | ) | (28,699 | ) | |||||||||||||||||
Premises and equipment, net | 40,830 | 33,982 | |||||||||||||||||||
Other real estate | 37,469 | 37,172 | |||||||||||||||||||
Other assets | 138,982 | 129,431 | |||||||||||||||||||
Total assets | $ | 2,543,145 | $ | 2,345,176 | |||||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 648,734 | $ | 1,807 | 0.28 | % | $ | 581,577 | $ | 1,610 | 0.28 | % | |||||||||
Savings deposits | 317,845 | 1,319 | 0.41 | % | 342,806 | 1,169 | 0.34 | % | |||||||||||||
Time deposits | 719,205 | 7,293 | 1.01 | % | 679,940 | 8,294 | 1.22 | % | |||||||||||||
Total interest-bearing deposits | 1,685,784 | 10,419 | 0.62 | % | 1,604,323 | 11,073 | 0.69 | % | |||||||||||||
Federal funds purchased | 23,071 | 174 | 0.75 | % | 29,003 | 228 | 0.79 | % | |||||||||||||
Securities sold under agreements to repurchase | 15,470 | 21 | 0.14 | % | 13,007 | 28 | 0.22 | % | |||||||||||||
Other short-term borrowings | 82,446 | 582 | 0.71 | % | 78,769 | 1,050 | 1.33 | % | |||||||||||||
Subordinated debt | 60,926 | 2,733 | 4.49 | % | 67,527 | 4,242 | 6.28 | % | |||||||||||||
Long-term debt | 8,082 | 33 | 0.41 | % | 18,729 | 457 | 2.44 | % | |||||||||||||
Total interest-bearing liabilities | 1,875,779 | 13,962 | 0.74 | % | 1,811,358 | 17,078 | 0.94 | % | |||||||||||||
Noninterest-bearing: | |||||||||||||||||||||
Demand deposits | 417,681 | 329,150 | |||||||||||||||||||
Other liabilities | 23,228 | 26,151 | |||||||||||||||||||
Shareholders’ equity | 226,457 | 178,517 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,543,145 | $ | 2,345,176 | |||||||||||||||||
Net interest income/spread | $ | 84,086 | 3.44 | % | $ | 80,964 | 3.62 | % | |||||||||||||
Net interest margin | 3.59 | % | 3.77 | % | |||||||||||||||||
(1) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $134,000 and $70,000, respectively, using a 35% tax rate.
(2) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $358,000 and $410,000, respectively, using a 35% tax rate.
14
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
Three Months Ended | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income: | |||||||||||||||||||||
Taxable | $ | 2,052,977 | $ | 22,569 | 4.36 | % | $ | 2,040,253 | $ | 23,086 | 4.50 | % | |||||||||
Tax-exempt (1) | 8,381 | 108 | 5.12 | % | 4,722 | 52 | 4.45 | % | |||||||||||||
Total loans | 2,061,358 | 22,677 | 4.36 | % | 2,044,975 | 23,138 | 4.50 | % | |||||||||||||
Investment securities: | |||||||||||||||||||||
Taxable | 158,547 | 939 | 2.35 | % | 156,489 | 946 | 2.42 | % | |||||||||||||
Tax-exempt (2) | 14,875 | 239 | 6.38 | % | 18,321 | 297 | 6.70 | % | |||||||||||||
Total investment securities | 173,422 | 1,178 | 2.70 | % | 174,810 | 1,243 | 2.85 | % | |||||||||||||
Interest-bearing deposits | 83,358 | 43 | 0.20 | % | 10,058 | 5 | 0.22 | % | |||||||||||||
Federal funds sold | 2,673 | — | 0.06 | % | 1,075 | — | 0.05 | % | |||||||||||||
Total interest-earning assets | 2,320,811 | 23,898 | 4.09 | % | 2,230,918 | 24,386 | 4.35 | % | |||||||||||||
Noninterest-earning: | |||||||||||||||||||||
Cash and due from banks | 16,717 | 29,818 | |||||||||||||||||||
Allowance for loan losses | (33,704 | ) | (31,519 | ) | |||||||||||||||||
Premises and equipment, net | 42,571 | 37,030 | |||||||||||||||||||
Other real estate | 32,814 | 44,363 | |||||||||||||||||||
Other assets | 144,998 | 143,634 | |||||||||||||||||||
Total assets | $ | 2,524,207 | $ | 2,454,244 | |||||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 693,000 | $ | 507 | 0.29 | % | $ | 605,309 | $ | 425 | 0.28 | % | |||||||||
Savings deposits | 307,463 | 301 | 0.39 | % | 317,336 | 353 | 0.44 | % | |||||||||||||
Time deposits | 701,193 | 1,782 | 1.01 | % | 730,381 | 1,944 | 1.06 | % | |||||||||||||
Total interest-bearing deposits | 1,701,656 | 2,590 | 0.60 | % | 1,653,026 | 2,722 | 0.66 | % | |||||||||||||
Federal funds purchased | 424 | 1 | 0.58 | % | 40,864 | 76 | 0.75 | % | |||||||||||||
Securities sold under agreements to repurchase | 17,089 | 5 | 0.13 | % | 13,809 | 8 | 0.22 | % | |||||||||||||
Other short-term borrowings | 39,622 | 31 | 0.31 | % | 89,185 | 341 | 1.52 | % | |||||||||||||
Subordinated debt | 46,393 | 282 | 2.41 | % | 67,527 | 881 | 5.19 | % | |||||||||||||
Long-term debt | 10,000 | 10 | 0.41 | % | — | — | — | % | |||||||||||||
Total interest-bearing liabilities | 1,815,184 | 2,919 | 0.64 | % | 1,864,411 | 4,028 | 0.86 | % | |||||||||||||
Noninterest-bearing: | |||||||||||||||||||||
Demand deposits | 448,889 | 369,419 | |||||||||||||||||||
Other liabilities | 25,820 | 29,988 | |||||||||||||||||||
Shareholders’ equity | 234,314 | 190,426 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,524,207 | $ | 2,454,244 | |||||||||||||||||
Net interest income/spread | $ | 20,979 | 3.45 | % | $ | 20,358 | 3.49 | % | |||||||||||||
Net interest margin | 3.59 | % | 3.63 | % | |||||||||||||||||
(1) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $38,000 and $17,000, respectively.
(2) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $83,000 and $102,000, respectively.
15