FIDELITY SOUTHERN CORP - FORM 8-K - EX-99.1 - PRESS RELEASE

Attached files

file	filename
8-K - 8-K - FIDELITY SOUTHERN CORP	lionqe331148k-earnings.htm

FOR IMMEDIATE RELEASE

Contacts: Martha Fleming, Steve Brolly

Fidelity Southern Corporation (404) 240-1504

FIDELITY SOUTHERN CORPORATION

EARNS $6.1 MILLION IN FIRST QUARTER OF 2014

ATLANTA, GA (April 17, 2014) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ: LION), holding company for Fidelity Bank (the “Bank”), today reported financial results for the first quarter of 2014.

KEY RESULTS


•	Earned $6.1 million in the first quarter of 2014 or $0.26 per diluted share


•	Return on average assets of 0.97% for the quarter


•	Increased tangible book value by $1.23 to $11.28 per share or 12.2%, year over year


•	Core deposit growth for the quarter of $25.5 million or 1.7%


•	Negative provision for loan losses for the quarter of $2.5 million, as asset quality continues to improve


•	Funded closed mortgage production of $320.8 million for the quarter


•	Loan sales of $535.2 million during the quarter


•	Generated $42.5 million in gross revenue in the first quarter

Fidelity's Chairman, Jim Miller, said, "Our performance has proven sustainable and makes us optimistic about 2014. Our healthy and diverse loan revenue streams are serving us well, tempering the margin compression facing our industry. As expected, residential mortgage production, which we view as a core product, rebounded in March and continues strong in April. Additionally, the Wealth Management Department, just begun, has already shown there is a void in the market which we can service. We plan to grow by taking market share through adding strong individuals to our various teams and by continuing to branch, always with the aim of adding to shareholder value over the long term.”



	Three Months Ended
(in thousands, except per share data)	March 31, 2014		December 31, 2013		March 31, 2013
Net income	$	6,063	$	3,863	$	5,668

Basic EPS ⁽¹⁾	$	0.28	$	0.18	$	0.37
Diluted EPS⁽¹⁾	$	0.26	$	0.16	$	0.33

Weighted average shares ⁽¹⁾	21,310		21,332		15,259
Diluted weighted average shares ⁽¹⁾	23,469		23,533		17,236

⁽¹⁾Historical periods adjusted for stock dividends

ASSET QUALITY

Asset quality continued to improve during the first quarter of 2014.


•	Net (recovery)/charge-off ratio, annualized of (0.02)% for the first quarter of 2014, compared to 0.06% for the fourth quarter of 2013, and 0.86% for the first quarter of 2013


•	Nonperforming asset ratio of 4.40% at March 31, 2014, a decrease from 4.77% and 6.55% at December 31, 2013, and March 31, 2013


•	Decrease in classified assets of $3.6 million or 3.1% for the quarter, and $39.7 million year over year, or 25.7%


•	Decrease of $6.5 million in ORE during the quarter, or 20.8%, and $16.8 million year over year, or 40.7%

The following table presents a comparison of the activity affecting the allowance for loan loss for the periods presented.



	As of or for the Quarter Ended
($ in thousands)	March 31, 2014			December 31, 2013			March 31, 2013
Charge-offs	$	2,031		1,597			$	4,330
Recoveries	$	2,136		1,253			$	679
Net (recoveries)/charge-offs	$	(105	)	344			$	3,651

Average Loans	$	1,886,136		$	1,868,507		$	1,801,533
Net (recoveries)/charge-offs as a % of average loans, annualized	(0.02		)%	0.06		%	0.86		%

(Recovery)/provision for loan losses	$	(2,450	)	$	273		$	3,475

Allowance for loan losses	$	30,797		$	33,684		$	33,910
Allowance for loan losses as a percentage of total loans	1.67		%	1.78		%	1.86		%

The following table presents certain credit quality metrics of the Bank’s assets at the dates indicated.



($ in thousands)	March 31, 2014			December 31, 2013			March 31, 2013
Nonperforming assets ⁽¹⁾	$	82,545		$	91,783		$	121,666
Classified assets ⁽²⁾	$	114,306		$	117,909		151,962

Nonperforming asset ratio	4.40		%	4.77		%	6.55		%
Classified asset ratio ⁽³⁾	27.14		%	29.81		%	38.13		%

⁽¹⁾ Nonperforming assets include nonaccrual loans, net repossessions and ORE.

⁽²⁾Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and ORE.

⁽³⁾Classified asset ratio is defined as classified assets as a percentage of Tier 1 capital plus allowance.

DEPOSITS

Core deposits increased by $25.5 million during the first quarter of 2014 and $191.5 million year over year. The Bank has continued to strategically focus on core deposit growth and realized continued benefits from the transaction account acquisition initiative which has continued into 2014. As a result, time deposits including brokered deposits, decreased by $27.6 million and $49.0 million for the quarter and year over year, respectively.

Total deposits of $2.2 billion at March 31, 2014 increased by $142.4 million from $2.1 billion as of March 31, 2013, due primarily to a $141.0 million year over year increase in noninterest-bearing demand deposits. Total deposits were flat on a net basis from December 31, 2013 to March 31, 2014. The $25.5 million increase in core deposits during the quarter almost completely offset the decrease in time deposits during the same period.

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



	For the Three Months Ended
	March 31, 2014						December 31, 2013						March 31, 2013
($ in millions)	Average Amount		Rate		Percent of Total Deposits		Average Amount		Rate		Percent of Total Deposits		Average Amount		Rate		Percent of Total Deposits
Noninterest-bearing demand deposits	$	478.0	—	%	22.1	%	$	448.9	—	%	20.9	%	$	368.5	—	%	18.1	%
Interest-bearing demand deposits	698.8		0.29	%	32.4	%	693.0		0.29	%	32.2	%	620.4		0.27	%	30.5	%
Savings deposits	308.8		0.39	%	14.3	%	307.5		0.39	%	14.3	%	330.4		0.46	%	16.3	%
Time deposits	675.0		1.01	%	31.2	%	701.2		1.01	%	32.6	%	712.6		1.04	%	35.1	%
Total average deposits	$	2,160.6	0.47	%	100.0	%	$	2,150.6	0.48	%	100.0	%	$	2,031.9	0.52	%	100.0	%

NET INTEREST MARGIN

Net interest margin in the first quarter of 2014 was 3.56%, a three basis point decrease from the fourth quarter of 2013 result of 3.59%, and a decrease from the first quarter of 2013 result of 3.77%. The 21 basis point year over year decline occurred primarily due to lower market yields on newly originated loans as compared to higher rates on the loans sold or paid off since the first quarter of 2013.

INTEREST INCOME

Interest income for the first quarter of 2014 decreased to $23.1 million from $25.0 million compared to the first quarter of 2013. The decrease in interest income is primarily attributable to the decrease in mortgage loans held for sale production volume during the first quarter of 2014 as market trends in production have declined since the first half of 2013. In a linked-quarter comparison, interest income decreased by $699,000 due to lower market yields on new loan originations.

INTEREST EXPENSE

Interest expense for the first quarter of 2014 decreased to $2.8 million from $3.9 million compared to the first quarter of 2013, primarily due to a reduction of $592,000 in subordinated debt expense for the first quarter of 2014 from the repayment of $20.5 million in subordinated debt in the third quarter of 2013. On a linked-quarter basis, interest expense decreased by $112,000, primarily as a result of market rate changes on time deposits and borrowings.

NONINTEREST INCOME

For the first quarter of 2014, noninterest income was $19.4 million compared to $25.0 million in the first quarter of 2013. This decrease is primarily attributable to a $7.2 million decrease in noninterest income from mortgage banking activities, primarily due to decreased loans held for sale production volume for the first quarter of 2014. Closed mortgage loan funding was $320.8 million for the first quarter of 2014 compared to $656.2 million for the first quarter of 2013.

On a linked quarter basis, noninterest income increased by $1.6 million, or 9.2%, primarily due to an increase of $2.6 million in income from indirect lending activities in the first quarter of 2014. Indirect lending sales volume was $88.2 million in the fourth quarter of 2013 compared to $195.0 million in the first quarter of 2014. Included in these sales was a transfer of $51.2 million during the first quarter of 2014 from indirect loans held for investment at December 31, 2013 to indirect loans held for sale.

NONINTEREST EXPENSE

Noninterest expense for the first quarter of 2014 was relatively flat at $32.7 million compared to $32.5 million for the same period in 2013 and on a linked quarter basis when compared to the $32.5 million in noninterest expense recorded for the fourth quarter of 2013. Commissions expense was lower primarily due to a decrease in mortgage production for the first quarter of 2014. The cost of operation of ORE has also continued to decrease as the average balance of ORE has decreased year over year, primarily due to the continued disposition of properties, primarily from the acquired institutions. These reductions were offset by an increase in higher salaries and benefits and general operating costs during the first quarter of 2014 as the Bank continues to expand its employee base in both production and support departments.

ABOUT FIDELITY SOUTHERN CORPORATION

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking and wealth management services and credit-related insurance products through branches in Atlanta, Georgia, and in Jacksonville, 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 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 2013 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.

-end-

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(UNAUDITED)



	As of or for the Three Months Ended
(in thousands, except per share data)	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
RESULTS OF OPERATIONS
Net interest income	$	20,271		$	20,858		$	21,529		$	20,133		$	21,075
(Recovery)/provision for loan losses	(2,450		)	273			1,122			570			3,476
Noninterest income	19,383			17,753			25,844			28,240			25,047
Noninterest expense	32,656			32,538			34,102			33,159			32,524
Income tax expense	3,385			1,937			4,298			5,211			3,631
Net income	6,063			3,863			7,851			9,433			6,491

PERFORMANCE
Earnings per share - basic ⁽¹⁾	$	0.28		$	0.18		$	0.33		$	0.52		$	0.37
Earnings per share - diluted ⁽¹⁾	0.26			0.16			0.30			0.46			0.33
Return on average assets	0.97		%	0.61		%	1.20		%	1.47		%	1.07		%
Return on average equity	10.36		%	6.54		%	12.04		%	17.40		%	13.53		%
Yield on interest earning assets	4.05		%	4.09		%	4.15		%	4.05		%	4.46		%
Cost of funds	0.63		%	0.64		%	0.72		%	0.77		%	0.84		%
Net interest margin	3.56		%	3.59		%	3.59		%	3.42		%	3.77		%

CAPITAL
Cash dividends paid per common share	$	0.04		$	0.02		$	—		$	—		$	—
Dividend payout ratio	22.22		%	6.06		%	—		%	—		%	—		%
Tier 1 risk-based capital	13.21		%	12.71		%	12.97		%	15.62		%	12.22		%
Total risk-based capital	14.46		%	13.96		%	14.23		%	16.88		%	13.48		%
Leverage ratio	11.21		%	11.02		%	10.53		%	12.96		%	10.51		%

BALANCE SHEET SUMMARY
Loans held for sale	$	180,550		$	187,366		$	216,736		$	355,017		$	325,941
Loans	1,848,092			1,893,037			1,831,708			1,775,972			1,817,263
Allowance for loan losses	(30,797		)	(33,684		)	(33,661		)	(33,309		)	(33,910		)
Total assets	2,556,887			2,564,168			2,567,482			2,675,233			2,532,249
Total deposits	2,200,389			2,202,452			2,169,275			2,155,047			2,058,151
Shareholders' equity	242,391			236,230			233,300			273,102			199,301

STOCK PERFORMANCE
Market price:
Closing ⁽¹⁾	$	13.97		$	16.50		$	15.15		$	12.13		$	11.18
High close ⁽¹⁾	16.53			17.75			15.78			12.90			11.49
Low close ⁽¹⁾	13.63			13.27			$	12.41		10.60			9.30
Daily average trading volume	53,851			53,979			90,413			52,693			30,591
Shares of common stock outstanding ⁽¹⁾	21,277			21,258			21,139			20,840			14,848
Book value per common share ⁽¹⁾	$	11.39		$	11.11		$	11.04		$	10.81		$	10.22
Price to book value	1.23			1.49			1.37			1.12			1.09
Tangible book value per common share ⁽¹⁾	11.28			11.00			10.92			10.70			10.05
Price to tangible book value	1.24			1.50			1.39			1.13			1.11
ASSET QUALITY
Total nonperforming loans	$	56,600		$	59,582		$	61,458		$	72,388		$	81,740
Total nonperforming assets	82,545			91,783			97,132			114,492			121,666
OTHER INFORMATION
Noninterest income to gross revenue	45.65		%	42.75		%	50.90		%	54.19		%	50.07		%
Full-Time equivalent employees	927.8			889.9			865.1			843.1			806.0

⁽¹⁾ Historical periods adjusted for stock dividends

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



	For the Three Months Ended
(in thousands, except per share data)	March 31, 2014			December 31, 2013		September 30, 2013			June 30, 2013			March 31, 2013
INTEREST INCOME
Loans, including fees	$	21,791		$	22,639	$	23,900		$	22,949		$	23,944
Investment securities	1,249			1,095		977			910			1,028
Federal funds sold and bank deposits	38			43		53			15			3
Total interest income	23,078			23,777		24,930			23,874			24,975
INTEREST EXPENSE
Deposits	2,488			2,590		2,601			2,600			2,627
Subordinated debt	275			282		716			868			867
Other borrowings	44			47		84			273			406
Total interest expense	2,807			2,919		3,401			3,741			3,900
Net interest income	20,271			20,858		21,529			20,133			21,075
(Recovery)/provision for loan losses	(2,450		)	273		1,122			570			3,476
Net interest income after (recovery)/provision for loan losses	22,721			20,585		20,407			19,563			17,599
NONINTEREST INCOME
Service charges on deposit accounts	1,009			1,119		1,075			1,020			949
Other fees and charges	920			1,012		997			975			887
Mortgage banking activities	10,587			10,798		17,809			20,158			17,795
Indirect lending activities	4,676			2,030		2,583			2,781			1,646
SBA lending activities	844			492		647			1,417			1,084
Bank owned life insurance	301			308		326			326			313
Securities gains	—			188		—			1			—
Other	1,046			1,806		2,407			1,562			2,373
Total noninterest income	19,383			17,753		25,844			28,240			25,047
NONINTEREST EXPENSE
Salaries and employee benefits	16,085			14,660		14,424			14,278			14,282
Commissions	3,470			4,288		6,019			7,979			6,390
Net occupancy	2,603			2,799		2,844			2,291			2,407
Communication	972			856		754			805			760
Other	9,526			9,935		10,061			7,806			8,685
Total noninterest expense	32,656			32,538		34,102			33,159			32,524
Income before income tax expense	9,448			5,800		12,149			14,644			10,122
Income tax expense	3,385			1,937		4,298			5,211			3,631
NET INCOME	6,063			3,863		7,851			9,433			6,491
Preferred stock dividends and discount accretion	—			—		(817		)	(823		)	(823		)
Net income available to common equity	$	6,063		$	3,863	$	7,034		$	8,610		$	5,668

EARNINGS PER SHARE: ⁽¹⁾
Basic earnings per share	$	0.28		$	0.18	$	0.33		$	0.52		$	0.37
Diluted earnings per share	$	0.26		$	0.16	$	0.30		$	0.46		$	0.33
Weighted average common shares outstanding-basic	21,310			21,332		21,290			16,567			15,259
Weighted average common shares outstanding-diluted	23,469			23,533		23,428			18,567			17,236

^{( 1)}Historical periods adjusted for stock dividends

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



($ in thousands)	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
ASSETS
Cash and cash equivalents	$	166,952		$	116,559		$	140,871		$	158,837		$	40,262
Investment securities available-for-sale	163,803			168,865			170,338			163,764			153,285
Investment securities held-to-maturity	3,795			4,051			4,468			4,978			5,523
Loans held-for-sale	180,550			187,366			216,736			355,017			325,941
Loans	1,848,092			1,893,037			1,831,708			1,775,972			1,817,263
Allowance for loan losses	(30,797		)	(33,684		)	(33,661		)	(33,309		)	(33,910		)
Loans, net of allowance for loan losses	1,817,295			1,859,353			1,798,047			1,742,663			1,783,353
Premises and equipment, net	48,937			44,555			41,964			41,843			38,508
Other real estate, net	24,547			30,982			34,493			40,882			38,951
Bank owned life insurance	34,127			33,855			33,575			33,276			32,978
Servicing rights	55,281			53,202			52,048			44,734			36,529
Other assets	61,600			65,380			74,942			89,239			76,919
Total assets	$	2,556,887		$	2,564,168		$	2,567,482		$	2,675,233		$	2,532,249

LIABILITIES
Deposits:
Noninterest-bearing demand deposits	$	525,853		$	488,224		$	448,087		$	433,565		$	385,019
Interest-bearing deposits:
Demand and money market	700,268			701,556			685,437			653,172			632,542
Savings	314,282			325,133			317,997			313,716			331,505
Time deposits	659,986			687,539			717,754			754,594			709,085
Total deposits	2,200,389			2,202,452			2,169,275			2,155,047			2,058,151
Other borrowings	43,685			59,233			88,422			143,641			186,051
Subordinated debt	46,393			46,393			46,393			67,527			67,527
Other liabilities	24,029			19,860			30,092			35,916			21,219
Total liabilities	2,314,496			2,327,938			2,334,182			2,402,131			2,332,948

SHAREHOLDERS' EQUITY
Preferred stock	—			—			—			47,785			47,564
Common stock	159,654			158,153			156,156			153,107			84,777
Accumulated other comprehensive gain, net of tax	1,606			968			1,723			1,475			3,376
Retained earnings	81,131			77,109			75,421			70,735			63,584
Total shareholders’ equity	242,391			236,230			233,300			273,102			199,301
Total liabilities and shareholders’ equity	$	2,556,887		$	2,564,168		$	2,567,482		$	2,675,233		$	2,532,249

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)



($ in thousands)	March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013		March 31, 2013
Commercial	$	525,347	$	530,977	$	512,875	$	507,188	$	517,203
SBA	138,331		134,823		133,867		131,771		126,435
Total commercial and SBA loans	663,678		665,800		646,742		638,959		643,638
Construction loans	101,443		101,698		99,379		100,986		94,651
Indirect automobile	925,101		975,223		942,217		904,098		959,471
Installment	15,932		13,473		14,270		15,557		13,824
Total consumer loans	941,033		988,696		956,487		919,655		973,295
First mortgage	68,546		60,928		51,807		41,815		38,501
Second mortgage	73,392		75,915		77,293		74,557		67,178
Total mortgage loans	141,938		136,843		129,100		116,372		105,679
Loans	1,848,092		1,893,037		1,831,708		1,775,972		1,817,263

Loans held-for-sale:
Residential mortgage	112,195		127,850		174,409		309,175		281,839
SBA	8,355		9,516		7,327		10,842		14,102
Indirect automobile	60,000		50,000		35,000		35,000		30,000
Total loans held-for-sale	180,550		187,366		216,736		355,017		325,941
Total loans	$	2,028,642	$	2,080,403	$	2,048,444	$	2,130,989	$	2,143,204

Noncovered loans	$	1,796,256	$	1,834,675	$	1,768,384	$	1,691,258	$	1,743,092
Covered loans	51,836		58,362		63,324		84,714		74,171
Loans held-for-sale	180,550		187,366		216,736		355,017		325,941
Total loans	$	2,028,642	$	2,080,403	$	2,048,444	$	2,130,989	$	2,143,204

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)



	As of or for the Three Months Ended
($ in thousands)	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Balance at beginning of period	$	33,684		$	33,661		$	33,309		$	33,910		$	33,982
Net (recoveries)/charge-offs:
Commercial and SBA	364			(147		)	406			695			2,441
Construction	(1,680		)	(250		)	(241		)	40			72
Indirect automobile and installment loans	743			696			930			941			669
Mortgage	35			102			67			27			332
Covered	448			(57		)	37			8			117
Acquired, noncovered	(15		)	—			—			10			20
Total net (recoveries)/charge-offs	(105		)	344			1,199			1,721			3,651
(Recovery)/provision for loan losses	(2,450		)	273			1,122			570			3,475
(Decrease)/increase in FDIC loss share receivable	(542		)	94			429			550			104
Balance at end of period	$	30,797		$	33,684		$	33,661		$	33,309		$	33,910

Net (recoveries)/charge-offs, annualized to average loans, net	(0.02		)%	0.06		%	0.27		%	0.40		%	0.86		%
Allowance for loan losses as a percentage of loans	1.67		%	1.78		%	1.83		%	1.86		%	1.86		%

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)



($ in thousands)	March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
NONCOVERED NONPERFORMING ASSETS
Nonaccrual loans	$	40,983		$	40,944		$	36,711		$	41,757		$	52,220
Repossessions	1,398			1,219			1,181			1,222			975
Other real estate	19,573			24,791			26,016			28,342			24,048
Noncovered nonperforming assets	$	61,954		$	66,954		$	63,908		$	71,321		$	77,243
NONCOVERED NONPERFORMING ASSET RATIOS
Loans 30-89 days past due	$	7,034		$	5,618		$	7,915		$	6,197		$	12,152
Loans past due 90 days or more and still accruing	$	488		$	—		$	—		$	—		$	141
Loans 30-89 days past due to total loans	0.39		%	0.31		%	0.45		%	0.37		%	0.70		%
Loans past due 90 days or more and still accruing to total loans	0.03		%	—		%	—		%	—		%	0.01		%
Nonperforming assets to total loans, ORE, and repossessions	3.41		%	3.60		%	3.56		%	4.14		%	4.37		%

COVERED NONPERFORMING ASSETS
Nonaccrual loans	$	15,617		$	18,638		$	24,747		$	30,631		$	29,520
Other real estate	4,974			6,191			8,477			12,540			14,903
Covered nonperforming assets	$	20,591		$	24,829		$	33,224		$	43,171		$	44,423

ASSET QUALITY RATIOS
Including covered loans:
Nonperforming loans as a % of loans	3.06		%	3.15		%	3.36		%	4.08		%	4.50		%
Nonperforming assets as a % of loans plus ORE	4.40		%	4.77		%	5.20		%	6.13		%	6.13		%
ALL to nonperforming loans	54.41		%	56.53		%	54.77		%	46.01		%	41.49		%
Net (recoveries)/charge-offs, annualized to average loans	(0.02		)%	0.17		%	0.65		%	0.65		%	0.24		%
ALL as a % of loans	1.67		%	1.78		%	1.83		%	1.86		%	1.86		%
Excluding covered loans:
Nonperforming loans as a % of loans	2.28		%	2.23		%	2.08		%	2.47		%	3.00		%
Nonperforming assets as a % of loans plus ORE	3.41		%	3.60		%	3.56		%	4.14		%	4.37		%
ALL to nonperforming loans	75.15		%	82.27		%	82.63		%	4.14		%	60.57		%
Net (recoveries)/charge-offs, annualized to average loans	(0.02		)%	0.06		%	0.27		%	0.40		%	0.86		%
ALL as a % of loans	1.71		%	1.84		%	1.93		%	1.96		%	1.95		%

CLASSIFIED ASSETS
Classified loans ⁽¹⁾	$	88,361		$	85,708		$	95,121		$	101,919		$	112,036
ORE and repossessions	25,945			32,201			35,674			42,104			39,926
Total classified assets	$	114,306		$	117,909		$	130,795		$	144,023		$	151,962

⁽¹⁾ Amount of SBA guarantee included	$	8,506		$	7,869		$	13,115		$	14,379		$	16,668



FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
ANALYSIS OF INDIRECT LENDING
(UNAUDITED)

			As of or for the Three Months Ended
($ in thousands)			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Average loans outstanding, including HFS			$	1,032,592		$	1,010,229		$	957,737		$	979,279		$	983,133
Past due loans:
	Amount 30+ days past due		$	1,117		$	1,561		$	1,277		$	1,697		$	1,747
	Number 30+ days past due		109			130			130			173			162
30+ day performing delinquency rate ⁽¹⁾			0.11		%	0.15		%	0.13		%	0.18		%	0.18		%
Nonperforming loans			$	772		$	806		$	925		$	594		$	872
Net charge-offs			$	733		$	703		$	908		$	886		$	667
Net charge-off rate ⁽²⁾			0.31		%	0.29		%	0.39		%	0.38		%	0.28		%
Number of vehicles repossessed during the period			143			198			199			168			151
Average beacon score of portfolio			752			752			752			755			742
Production by state:
	Alabama		$	22,155		$	19,798		$	22,599		$	16,576		$	16,847
	Arkansas		22,183			16,352			13,757			7,728			4,760
	North Carolina		18,980			18,731			19,292			18,750			15,226
	South Carolina		14,657			13,302			10,322			10,180			7,550
	Florida		76,829			76,253			77,873			72,676			67,243
	Georgia		45,154			43,064			44,171			38,203			42,218
	Mississippi		23,941			20,341			23,292			19,626			20,148
	Tennessee		15,746			13,674			17,122			19,347			14,858
	Virginia		11,458			11,040			11,877			10,339			8,601
	Texas⁽³⁾		15,429			5,045			—			—			—
		Total production by state	$	266,532		$	237,600		$	240,305		$	213,425		$	197,451
Loan sales			$	195,027		$	88,153		$	93,602		$	152,418		$	58,073
Portfolio yield			3.39		%	3.48		%	3.57		%	3.68		%	3.88		%

⁽¹⁾	Calculated by dividing 30+ day performing delinquent loans as of the end of the period by period-end loans including held for sale for the specified loan category
⁽²⁾	Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category
⁽³⁾	Expansion into Texas began in October of 2013.



FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
ANALYSIS OF MORTGAGE LENDING
(UNAUDITED)

			For the Three Months Ended
($ in thousands)			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Average loans outstanding			$	170,988		$	194,626		$	328,038		$	297,024		$	284,910
Average servicing outstanding			$	4,473,027		$	4,221,134		$	3,953,760		$	3,239,672		$	2,817,771
% of loan production for purchases			78.48		%	78.72		%	74.13		%	58.30		%	36.78		%
% of loan production for refinance loans			21.52		%	21.28		%	25.87		%	41.70		%	63.22		%
Production by region:
	Georgia		$	181,667		$	259,289		$	353,187		$	427,815		$	392,749
	Florida/Alabama		20,816			19,724			17,807			24,025			15,862
	Virginia/Maryland		73,471			91,494			151,573			167,099			111,126
	Total retail		275,954			370,507			522,567			618,939			519,737
	Wholesale		44,862			55,149			96,773			165,022			136,508
		Total production	$	320,816		$	425,656		$	619,340		$	783,961		$	656,245
Loan sales			$	328,145		$	467,932		$	753,196		$	756,224		$	634,074
Portfolio yield including held-for-sale			4.26		%	4.10		%	3.84		%	3.59		%	3.31		%



INCOME FROM MORTGAGE BANKING ACTIVITIES
(UNAUDITED)

			For the Three Months Ended
($ in thousands)			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			March 31, 2013
Marketing gain, net			$	7,991		$	8,568		$	12,785		$	13,916		$	12,684
Origination points and fees			1,787			2,474			3,806			4,212			3,452
Loan servicing revenue			3,005			2,609			2,402			2,021			1,760
MSR amortization and impairment adjustments			(2,196		)	(2,853		)	(1,184		)	9			(101		)
Total mortgage banking activities			$	10,587		$	10,798		$	17,809		$	20,158		$	17,795


Noncash items included in income from mortgage banking activities:
Capitalized MSR, net			$	2,170		$	3,992		$	7,367		$	5,934		$	4,467
Valuation on MSR			(619		)	(1,360		)	138			1,551			1,609
Mark to market adjustments			1,362			344			2,605			(6,634		)	(2,345		)
Total noncash items			$	2,913		$	2,976		$	10,110		$	851		$	3,731

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)



	For the Three Months Ended
	March 31, 2014							March 31, 2013
	Average			Income/		Yield/		Average			Income/		Yield/
($ in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Loans, net of unearned income:
Taxable	$	2,062,284		$	21,719	4.27	%	$	2,090,711		$	23,902	4.64	%
Tax-exempt ⁽¹⁾	8,625			111		5.21	%	5,840			65		4.52	%
Total loans	2,070,909			21,830		4.28	%	2,096,551			23,967		4.64	%
Investment securities:
Taxable	161,251			1,093		2.75	%	143,965			849		2.39	%
Tax-exempt⁽²⁾	14,920			240		6.51	%	17,896			276		6.26	%
Total investment securities	176,171			1,333		3.07	%	161,861			1,125		2.82	%
Federal funds sold and bank deposits	76,591			38		0.20	%	23,236			3		0.05	%
Total interest-earning assets	2,323,671			23,201		4.05	%	2,281,648			25,095		4.46	%
Noninterest-earning assets:
Cash and due from banks	19,001							13,962
Allowance for loan losses	(33,869		)					(33,662		)
Premises and equipment, net	48,479							37,886
Other real estate	28,798							38,783
Other assets	143,396							130,921
Total assets	$	2,529,476						$	2,469,538
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Demand deposits	$	698,811		$	507	0.29	%	$	620,425		$	418	0.27	%
Savings deposits	308,819			296		0.39	%	330,364			377		0.46	%
Time deposits	675,034			1,685		1.01	%	712,605			1,832		1.04	%
Total interest-bearing deposits	1,682,664			2,488		0.60	%	1,663,394			2,627		0.64	%
Other borrowings	63,313			44		0.28	%	154,501			406		1.07	%
Subordinated debt	46,393			275		2.41	%	67,527			867		5.21	%
Total interest-bearing liabilities	1,792,370			2,807		0.63	%	1,885,422			3,900		0.84	%
Noninterest-bearing liabilities and shareholders' equity:
Demand deposits	478,033							368,483
Other liabilities	21,665							21,074
Shareholders’ equity	237,408							194,559
Total liabilities and shareholders’ equity	$	2,529,476						$	2,469,538
Net interest income/spread				$	20,394	3.42	%				$	21,195	3.62	%
Net interest margin						3.56	%						3.77	%

⁽¹⁾ Interest income includes the effect of taxable-equivalent adjustment for 2014 and 2013 of $39,000 and $23,000, respectively.

⁽²⁾ Interest income includes the effect of taxable-equivalent adjustment for 2014 and 2013 of $84,000 and $97,000, respectively.

Attached files

Stock widget

Investing forum

FIDELITY SOUTHERN CORP Reports