FIDELITY SOUTHERN CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - FIDELITY SOUTHERN CORP	lionqe331158k-earnings.htm

FOR IMMEDIATE RELEASE

Contacts: Martha Fleming, Steve Brolly

Fidelity Southern Corporation (404) 240-1504

FIDELITY SOUTHERN CORPORATION EARNS RECORD $10.7 MILLION

IN FIRST QUARTER

ATLANTA, GA (April 16, 2015) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ: LION), holding company for Fidelity Bank (the “Bank”), today reported financial results for the quarter ended March 31, 2015.

KEY RESULTS


•	Net income of $10.7 million, or $0.45 per diluted share for the quarter, an increase of $4.6 million, or $0.19 per diluted share, year over year


•	Total revenue of $58.5 million for the quarter


•	Mortgage banking income of $21.3 million, an increase of $10.7 million, or 101.4%, year over year


•	Mortgage production increased $292.2 million, or 91.1%, year over year to $613.0 million for the quarter


•	Return on average assets of 1.40% for the quarter


•	Tangible book value of $12.64 per share increased by $1.36, or 12.1%, year over year


•	Loan portfolio grew by $64.3 million, or 2.9%, during the quarter and $469.5 million, or 25.4%, year over year, to $2.3 billion


•	Loan servicing portfolio increased to $6.9 billion, or 26.6%, year over year


•	Total deposit portfolio grew by $194.9 million, or 7.9%, during the quarter and $452.5 million, or 20.6%, year over year, to $2.7 billion

Fidelity's Chairman, Jim Miller, said, “There was a surge in mortgage financing in the first quarter, which we capitalized on. Purchase volume remained a majority of the business. Geographic expansion in the Carolinas and the Mid-Atlantic paid dividends. This means we should, going forward, have mortgage production greater than budgeted, but we don’t know if the surge will continue. Based on our numbers across the board, it looks like the recovery is gaining momentum, which bodes well for all lines of business though rates and terms are increasingly challenging. Our partnerships with U.S. Bancorp’s Elavon unit for handling merchant services, and with FNB Omaha for credit cards are very promising. Trust is performing as planned. Our strategic moves continue. In Georgia, we have identified two new existing bank branches and will open next month our office on Howell Mill Road. Other moves are pending here and in Florida."

BALANCE SHEET

Total assets at March 31, 2015, grew to $3.2 billion, an increase of $120.2 million, or 3.9%, compared to December 31, 2014, and $648.5 million, or 25.4%, compared to March 31, 2014. These increases are primarily attributable to an increase in loan production, mainly in indirect and mortgage loans held for investment.

Loans

Total loans held for investment at March 31, 2015, grew to $2.3 billion, an increase of $64.3 million, or 2.9%, compared to December 31, 2014, and $469.5 million, or 25.4%, compared to March 31, 2014.

Continued strong auto sales and overall mortgage volume were the main drivers of the growth in indirect and mortgage loans. Indirect loans grew by $31.8 million and $325.9 million, or 2.6% and 35.2%, respectively, and mortgage loans increased by $24.8 million and $120.7 million, or 10.4% and 85.0%, respectively, compared to December 31, 2014 and March 31, 2014.

Construction loans increased by $10.5 million and $33.0 million, or 8.4% and 32.5%, respectively, compared to December 31, 2014 and March 31, 2014, due to expansion into the Savannah and Birmingham markets in addition to organic growth in our existing markets.

The following table summarizes average loans by category for the periods presented.



	For the Quarter Ended
($ in thousands)	March 31, 2015		December 31, 2014		March 31, 2014
Commercial	$	526,819	$	519,932	$	531,517
SBA	149,420		152,672		145,863
Construction	129,029		115,146		100,165
Indirect automobile	1,419,294		1,329,306		1,032,592
Installment	13,047		11,938		15,539
Residential mortgage	337,122		300,652		170,675
Home equity lines of credit	81,825		79,906		74,558
Total average loans (including HFS)	$	2,656,556	$	2,509,552	$	2,070,909

Deposits

Total deposits at March 31, 2015, of $2.7 billion increased by $194.9 million, or 7.9%, compared to December 31, 2014, and $452.5 million, or 20.6%, compared to March 31, 2014. The increase for the quarter is attributable to an increase in noninterest bearing demand deposits, particularly in commercial accounts which increased $106.8 million, and an increase of $26.8 million in time deposits. The year over year increase occurred primarily due to organic growth of $243.4 million, primarily in noninterest bearing deposits, which increased $155.7 million, as well as the assumption of deposits from six branches in Florida during September 2014 of $170.9 million, and assumption of deposits from one branch in Florida during January 2015 of $38.2 million.

Average core deposits, including noninterest-bearing demand deposits, grew by $53.1 million, or 3.2%, during the quarter and $242.3 million, or 16.3%, year over year, particularly in commercial accounts and assumption of deposits discussed above. Noninterest-bearing demand deposits increased to 24.0% of total average deposits for the quarter compared to 23.5% at December 31, 2014, and 22.2% at March 31, 2014.

Time deposits increased by $26.8 million, or 3.4%, during the quarter and $156.9 million, or 23.8%, year over year. The year over year change occurred primarily due to $88.0 million in time deposits assumed during the third quarter of 2014 and a $62.1 million increase in brokered deposits generally used to fund loan growth.

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



	For the Quarter Ended
	March 31, 2015						December 31, 2014						March 31, 2014
($ in millions)	Average Amount		Rate		Percent of Total Deposits		Average Amount		Rate		Percent of Total Deposits		Average Amount		Rate		Percent of Total Deposits
Noninterest-bearing demand deposits	$	605.8	—	%	24.0	%	$	567.4	—	%	23.5	%	$	478.0	—	%	22.2	%
Interest-bearing demand deposits	812.8		0.23	%	32.1	%	783.9		0.25	%	32.3	%	698.8		0.29	%	32.3	%
Savings deposits	309.4		0.33	%	12.2	%	323.6		0.35	%	13.4	%	308.8		0.39	%	14.3	%
Time deposits	803.0		0.90	%	31.7	%	741.2		0.98	%	30.8	%	675.0		1.01	%	31.2	%
Total average deposits	$	2,531.0	0.40	%	100.0	%	$	2,416.1	0.43	%	100.0	%	$	2,160.6	0.48	%	100.0	%

INCOME STATEMENT

Interest Income

Interest income was $26.5 million for the quarter, an increase of $3.4 million, or 14.7% as compared to the same period in 2014. The increase was primarily due to a year over year increase in average loans of $585.6 million, or 28.3%, primarily in the indirect and mortgage portfolios, partially offset by a decrease in the yield on loans of 41 basis points, as new loans, on average, were originated at lower yields over the previous twelve months.

On a linked-quarter basis, interest income decreased slightly, primarily due to a decrease of 15 basis points in the yield on total loans, net of a $147.0 million increase in average total loans.

Interest Expense

Interest expense was $2.9 million for the quarter, an increase of $138,000, or 4.9% as compared to the same period in 2014. The year over year increase occurred primarily due to an increase in average other borrowings of $166.1 million used to fund growth in average loans.

On a linked-quarter basis, interest expense decreased by $73,000, or 2.4%, primarily due to a reduction of 4 basis points in the cost of interest bearing deposits.

Net Interest Margin

The net interest margin was 3.35% for the quarter, compared to 3.55% for the same period in 2014. The decrease was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2015, partially offset by a slight decrease in deposit yields.

On a linked-quarter basis, the net interest margin decreased by 12 basis points compared to 3.47% for the prior quarter, primarily due to a decrease of 15 basis points in the yield on total loans, offset by an increased volume of loans for the quarter.

Noninterest Income

Noninterest income was $32.0 million for the quarter, an increase of $12.7 million , or 65.3%, as compared to the same period in 2014. The increase was primarily related to an increase in gains on the sale of mortgage and indirect loans. Noninterest income from mortgage banking activities increased by $10.7 million for the quarter as gains on mortgage loan sales were $11.8 million higher for the quarter. Fidelity was able to take advantage of the nationwide refinance surge during the quarter while continuing to grow our purchase money mortgage business year over year. Mortgage loan production increased $292.2 million, or 91.1%, to $613.0 million while mortgage loan sales increased $223.9 million, or 68.2%, to $328.1 million year over year. Mortgage loan servicing revenue increased by $641,000 to $3.6 million for the quarter as the servicing portfolio grew to $5.6 billion at March 31, 2015. These increases were partially offset by an increase in mortgage servicing right amortization and impairment adjustment of $2.6 million driven by an increase in prepayment speed assumption.

Higher gains on indirect loan sales drove $723,000 of the increase in noninterest income from indirect lending activities of $1.3 million for the quarter. Indirect loan sales totaled $219.8 million for the quarter compared to sales of $195.0 million for the same period in the prior year.

On a linked-quarter basis, noninterest income increased by $7.3 million, or 29.7%, primarily attributable to increases in income from mortgage banking activities and indirect lending activities of $5.8 million and $2.1 million, respectively. These increases occurred primarily due to increased gain on sale of mortgage and indirect loans of $7.7 million and $2.2 million, respectively, from growth in sales of $76.2 million and $97.8 million, respectively. See "Analysis of Indirect Lending" and "Analysis of Mortgage Lending" tables below.

Noninterest Expense

Noninterest expense was $38.6 million for the quarter, an increase of $6.0 million, or 18.3%, as compared to the same period in 2014.

Salaries and benefits expense has increased due to the growth in employees and locations and the associated administrative support functions as the Company continues to grow. Salaries and benefits increased by $2.7 million, or 17.0%, year over year.

Commissions expense increased $2.7 million, or 77.5%, compared to the same period in 2014. This increase corresponds to the growth in mortgage loan production, which increased $292.2 million or 91.1% compared to the same period in 2014.

Net occupancy and communication also increased $905,000, or 25.7%, year over year, due to the Bank's continued growth during the period.

On a linked-quarter basis, noninterest expense increased by $2.0 million, or 5.4%, primarily due to an $896,000 increase in salaries and benefits and a $615,000 increase in commissions for the quarter.

ABOUT FIDELITY SOUTHERN CORPORATION

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and trust services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.

This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” from Fidelity Southern Corporation’s 2014 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.

-end-

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(UNAUDITED)



	As of or for the Quarter Ended
($ in thousands, except per share data)	March 31, 2015			December 31, 2014			March 31, 2014
INCOME STATEMENT DATA:
Interest income	$	26,486		$	26,633		$	23,084
Interest expense	2,945			3,018			2,807
Net interest income	23,541			23,615			20,277
Provision for loan losses	108			556			(2,450		)
Noninterest income	32,038			24,711			19,377
Noninterest expense	38,635			36,645			32,656
Net income	10,690			7,213			6,063
PERFORMANCE:
Earnings per common share - basic	$	0.50		$	0.34		$	0.28
Earnings per common share - diluted	0.45			0.31			0.26
Book value per common share	$	12.85		$	12.40		$	11.39
Tangible book value per common share	12.64			12.22			11.28
Cash dividends paid per common share	$	0.09		$	0.09		$	0.04
Return on average assets	1.40		%	0.98		%	0.97		%
Return on average shareholders' equity	16.20		%	10.99		%	10.36		%
Net interest margin	3.35		%	3.47		%	3.55		%
END OF PERIOD BALANCE SHEET SUMMARY:
Total assets	$	3,205,376		$	3,085,225		$	2,556,887
Earning assets	2,951,135			2,848,618			2,350,759
Loans, excluding Loans Held-for-Sale	2,317,581			2,253,306			1,848,092
Total loans	2,723,098			2,622,241			2,028,642
Total deposits	2,652,896			2,458,022			2,200,389
Shareholders' equity	274,898			264,951			242,391
DAILY AVERAGE BALANCE SHEET SUMMARY:
Total assets	$	3,098,079		$	2,921,742		$	2,529,476
Earning assets	2,858,827			2,711,138			2,325,164
Loans, excluding Loans Held-for-Sale	2,298,789			2,192,383			1,886,136
Total loans	2,656,556			2,509,552			2,070,909
Total deposits	2,530,988			2,416,140			2,160,696
Shareholders' equity	267,561			260,308			237,408
ASSET QUALITY RATIOS:
Net charge-offs/(recoveries), annualized to average loans	0.29		%	0.50		%	(0.02		)%
Allowance to period-end loans	1.03		%	1.13		%	1.67		%
Nonperforming assets to total loans, ORE and repossessions	2.33		%	2.61		%	3.66		%
Allowance to nonperforming loans, ORE and repossessions	0.44x			0.43x			0.45x
SELECTED RATIOS:
Loans to total deposits	87.36		%	91.67		%	83.99		%
Average total loans to average earning assets	92.92		%	92.56		%	89.07		%
Noninterest income to total revenue	54.74		%	48.13		%	45.63		%
Leverage ratio	9.89		%	10.40		%	11.21		%
Common equity tier 1 capital	9.06		%	N/A			N/A
Tier 1 risk-based capital	10.63		%	11.07		%	13.20		%
Total risk-based capital	11.43		%	12.01		%	14.46		%
Average equity to average assets	8.64		%	8.91		%	9.39		%

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



($ in thousands)	March 31, 2015			December 31, 2014			March 31, 2014
ASSETS
Cash and cash equivalents	$	85,615		$	71,605		$	166,952
Investment securities available-for-sale	139,727			149,590			163,803
Investment securities held-to-maturity	10,316			7,349			3,795
Loans held-for-sale	405,517			368,935			180,550
Loans	2,317,581			2,253,306			1,848,092
Allowance for loan losses	(23,758		)	(25,450		)	(30,797		)
Loans, net of allowance for loan losses	2,293,823			2,227,856			1,817,295
Premises and equipment, net	60,710			60,857			48,937
Other real estate, net	19,988			22,564			24,547
Bank owned life insurance	65,013			59,553			34,127
Servicing rights	68,146			64,897			55,281
Other assets	56,521			52,019			61,600
Total assets	$	3,205,376		$	3,085,225		$	2,556,887

LIABILITIES
Deposits
Noninterest-bearing demand deposits	$	706,679		$	558,018		$	525,853
Interest-bearing deposits
Demand and money market	825,244			788,373			700,268
Savings	304,135			321,621			314,282
Time deposits	816,838			790,010			659,986
Total deposits	2,652,896			2,458,022			2,200,389
Other borrowings	201,018			291,087			43,685
Subordinated debt	46,393			46,393			46,393
Other liabilities	30,171			24,772			24,029
Total liabilities	2,930,478			2,820,274			2,314,496

SHAREHOLDERS' EQUITY
Preferred stock	—			—			—
Common stock	163,340			162,575			159,654
Accumulated other comprehensive income, net	3,229			2,814			1,606
Retained earnings	108,329			99,562			81,131
Total shareholders’ equity	274,898			264,951			242,391
Total liabilities and shareholders’ equity	$	3,205,376		$	3,085,225		$	2,556,887

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



	For the Quarter Ended
($ in thousands, except per share data)	March 31, 2015		December 31, 2014		March 31, 2014
INTEREST INCOME
Loans, including fees	$	25,289	$	25,382	$	21,797
Investment securities	1,185		1,242		1,249
Federal funds sold and bank deposits	12		9		38
Total interest income	26,486		26,633		23,084
INTEREST EXPENSE
Deposits	2,492		2,609		2,488
Other borrowings	177		130		44
Subordinated debt	276		279		275
Total interest expense	2,945		3,018		2,807
Net interest income	23,541		23,615		20,277
Provision for loan losses	108		556		(2,450		)
Net interest income after provision for loan losses	23,433		23,059		22,727
NONINTEREST INCOME
Service charges on deposit accounts	1,083		1,229		1,003
Other fees and charges	1,166		1,189		920
Mortgage banking activities	21,318		15,489		10,587
Indirect lending activities	5,979		3,847		4,676
SBA lending activities	930		1,305		844
Bank owned life insurance	492		304		301
Securities gains	—		—		—
Other	1,070		1,348		1,046
Total noninterest income	32,038		24,711		19,377
NONINTEREST EXPENSE
Salaries and employee benefits	18,822		17,926		16,085
Commissions	6,160		5,545		3,470
Occupancy	3,482		3,508		2,603
Communication	948		1,068		922
Other	9,223		8,598		9,576
Total noninterest expense	38,635		36,645		32,656
Income before income tax expense	16,836		11,125		9,448
Income tax expense	6,146		3,912		3,385
NET INCOME	$	10,690	$	7,213	$	6,063

EARNINGS PER SHARE:
Basic earnings per share	$	0.50	$	0.34	$	0.28
Diluted earnings per share	$	0.45	$	0.31	$	0.26
Weighted average common shares outstanding-basic	21,380		21,343		21,288
Weighted average common shares outstanding-diluted	23,683		23,544		23,447

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)



($ in thousands)	March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014		March 31, 2014
Commercial	$	519,062	$	524,145	$	524,419	$	536,435	$	525,347
SBA	138,198		134,766		143,302		136,946		138,331
Total commercial and SBA loans	657,260		658,911		667,721		673,381		663,678
Construction loans	134,456		123,994		108,823		113,873		101,443
Indirect automobile	1,251,044		1,219,232		1,087,710		997,117		925,101
Installment	12,209		13,372		15,647		15,892		15,932
Total consumer loans	1,263,253		1,232,604		1,103,357		1,013,009		941,033
Residential mortgage	180,424		158,348		119,292		93,453		68,546
Home equity lines of credit	82,188		79,449		74,610		74,898		73,392
Total mortgage loans	262,612		237,797		193,902		168,351		141,938
Loans	2,317,581		2,253,306		2,073,803		1,968,614		1,848,092

Loans held-for-sale:
Residential mortgage	241,974		181,424		161,775		191,666		112,195
SBA	13,543		12,511		17,667		8,053		8,355
Indirect automobile	150,000		175,000		145,000		140,000		60,000
Total loans held-for-sale	405,517		368,935		324,442		339,719		180,550
Total loans	$	2,723,098	$	2,622,241	$	2,398,245	$	2,308,333	$	2,028,642

Noncovered loans	$	2,287,284	$	2,218,493	$	2,036,097	$	1,923,088	$	1,796,256
Covered loans	30,297		34,813		37,706		45,526		51,836
Loans held-for-sale	405,517		368,935		324,442		339,719		180,550
Total loans	$	2,723,098	$	2,622,241	$	2,398,245	$	2,308,333	$	2,028,642

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)



	As of or for the Quarter Ended
($ in thousands)	March 31, 2015			December 31, 2014			March 31, 2014
Balance at beginning of period	$	25,450		$	28,297		$	33,684
Net charge-offs/(recoveries):
Commercial and SBA	815			2,239			364
Construction	(76		)	(151		)	(1,680		)
Indirect automobile and installment loans	872			899			743
Mortgage	(1		)	(19		)	35
Covered	19			(225		)	448
Acquired, noncovered	(1		)	(1		)	(15		)
Total net charge-offs/(recoveries)	1,628			2,742			(105		)
Provision for loan losses ⁽¹⁾	108			556			(2,450		)
Decrease in FDIC loss share receivable	(172		)	(661		)	(542		)
Balance at end of period	$	23,758		$	25,450		$	30,797

Net charge-offs/(recoveries), annualized to average loans	0.29		%	0.50		%	(0.02		)%
Average loans	$	2,298,789		$	2,192,383		$	1,886,136
Allowance for loan losses as a percentage of loans	1.03		%	1.13		%	1.67		%

⁽¹⁾ Net of benefit attributable to FDIC loss share receivable

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)



($ in thousands)	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
NONPERFORMING ASSETS
Nonaccrual loans	$	32,432		$	34,856		$	36,489		$	37,364		$	42,158
Loans past due 90 days or more and still accruing	1,006			827			—			—			488
Repossessions	1,002			1,183			1,210			1,068			1,398
Other real estate (ORE)	19,988			22,564			26,999			26,930			24,547
Nonperforming assets	$	54,428		$	59,430		$	64,698		$	65,362		$	68,591
NONPERFORMING ASSET RATIOS
Loans 30-89 days past due	$	3,934		$	4,565		$	2,885		$	2,874		$	4,045
Loans 30-89 days past due to loans	0.17		%	0.20		%	0.14		%	0.15		%	0.22		%
Loans past due 90 days or more and still accruing to loans	0.04		%	0.04		%	—		%	—		%	0.03		%
Nonperforming assets to loans, ORE, and repossessions	2.33		%	2.61		%	3.08		%	3.27		%	3.66		%

ASSET QUALITY RATIOS
Classified Asset Ratio ⁽³⁾	20.45		%	21.49		%	25.36		%	24.88		%	27.14		%
Nonperforming loans as a % of loans	1.44		%	1.58		%	1.76		%	1.90		%	2.31		%
Nonperforming assets as a % of loans plus ORE	1.43		%	1.57		%	1.74		%	1.87		%	2.28		%
ALL to nonperforming loans	71.05		%	67.66		%	63.80		%	42.52		%	53.95		%
Net charge-offs/(recoveries), annualized to average loans	0.29		%	0.50		%	0.40		%	0.42		%	(0.02		)%
ALL as a % of loans	1.03		%	1.13		%	1.36		%	1.47		%	1.67		%

CLASSIFIED ASSETS
Classified loans ⁽¹⁾	$	52,684		$	53,415		$	61,161		$	57,880		$	63,993
ORE and repossessions	14,508			17,218			21,287			21,633			21,279
Total classified assets ⁽²⁾	$	67,192		$	70,633		$	82,448		$	79,513		$	85,272

⁽¹⁾ Amount of SBA guarantee included	$	5,802		$	5,271		$	7,590		$	6,462		$	8,506
⁽²⁾Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share.
⁽³⁾ Classified asset ratio is defined as classified assets as a percentage of Tier 1 capital plus allowance for loan losses.



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

			As of or for the Quarter Ended
($ in thousands)			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Average loans outstanding ⁽¹⁾			$	1,389,570		$	1,329,306		$	1,204,314		$	1,075,657		$	1,032,592
Loans serviced for others			$	1,025,569		$	902,823		$	863,931		$	701,120		$	657,082
Past due loans:
	Amount 30+ days past due		$	1,222		$	1,547		$	1,573		$	1,363		$	1,117
	Number 30+ days past due		132			143			136			125			109
30+ day performing delinquency rate ⁽²⁾			0.09		%	0.11		%	0.13		%	0.12		%	0.11		%
Nonperforming loans			$	778		$	715		$	795		$	743		$	772
Nonperforming loans as a percentage of period end loans ⁽²⁾			0.06		%	0.05		%	0.06		%	0.07		%	0.08		%
Net charge-offs			$	866		$	901		$	612		$	614		$	733
Net charge-off rate ⁽³⁾			0.36		%	0.30		%	0.23		%	0.25		%	0.31		%
Number of vehicles repossessed during the period			134			128			136			126			143
Average beacon score of portfolio			755			753			751			745			752
Production by state:
	Alabama		$	22,056		$	26,780		$	27,845		$	28,530		$	22,155
	Arkansas		35,786			41,912			47,894			36,572			22,183
	North Carolina		21,809			25,059			29,781			24,069			18,980
	South Carolina		16,273			16,132			22,189			23,139			14,657
	Florida		96,688			102,465			128,729			110,940			76,829
	Georgia		60,402			69,288			72,423			54,592			45,154
	Mississippi		19,537			23,736			30,525			28,569			23,941
	Tennessee		19,479			22,880			28,684			22,196			15,746
	Virginia		16,919			18,590			20,903			16,017			11,458
	Texas		41,527			50,987			49,868			39,320			15,429
	Louisiana		21,042			13,531			12,597			2,595			—
		Total production by state	$	371,518		$	411,360		$	471,438		$	386,539		$	266,532
Loan sales			$	219,784		$	121,973		$	244,556		$	118,344		$	195,027
Portfolio yield ⁽¹⁾			2.88		%	3.07		%	3.10		%	3.26		%	3.38		%


⁽¹⁾	Includes held-for-sale
⁽²⁾	Calculated by dividing loan category as of the end of the period by period-end loans including held for sale for the specified loan portfolio
⁽³⁾	Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category



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

			For the Quarter Ended
($ in thousands)			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Average loans outstanding ⁽¹⁾			$	337,122		$	300,652		$	286,407		$	229,292		$	170,675
Loans serviced for others			$	5,622,102		$	5,413,781		$	5,173,282		$	4,844,984		$	4,574,281
% of loan production for purchases			58.82		%	74.93		%	82.25		%	86.18		%	78.48		%
% of loan production for refinance loans			41.18		%	25.07		%	17.75		%	13.82		%	21.52		%
Production by region:
	Georgia		$	342,121		$	311,846		$	316,359		$	328,936		$	181,667
	Florida/Alabama		51,590			42,485			31,642			26,383			20,816
	Virginia/Maryland		158,289			126,151			127,721			132,816			73,471
	North and South Carolina ⁽²⁾		3,858			—			—			—			—
	Total retail		555,858			480,482			475,722			488,135			275,954
	Wholesale		57,125			34,961			60,393			73,252			44,862
		Total production by region	$	612,983		$	515,443		$	536,115		$	561,387		$	320,816
Loan sales			$	552,085		$	475,930		$	536,490		$	446,176		$	328,145
Portfolio yield ⁽¹⁾			3.79		%	3.93		%	4.10		%	4.05		%	4.21		%



INCOME FROM MORTGAGE BANKING ACTIVITIES
(UNAUDITED)

			For the Quarter Ended
(in thousands)			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Marketing gain, net			$	19,745		$	12,076		$	12,108		$	10,954		$	7,991
Origination points and fees			2,757			2,744			2,943			3,148			1,787
Loan servicing revenue			3,646			3,473			3,211			2,998			3,005
MSR amortization and impairment adjustments			(4,830		)	(2,804		)	(2,127		)	(3,530		)	(2,196		)
Total mortgage banking activities			$	21,318		$	15,489		$	16,135		$	13,570		$	10,587


Noncash items included in income from mortgage banking activities:
Capitalized MSR, net			$	4,429		$	3,333		$	4,062		$	3,693		$	2,170
Valuation on MSR			(2,469		)	(709		)	(156		)	(1,838		)	(619		)
Mark to market adjustments			3,967			588			(1,747		)	1,609			1,362
Total noncash items			$	5,927		$	3,212		$	2,159		$	3,464		$	2,913

⁽¹⁾ Includes held-for-sale
⁽²⁾ Expanded into North and South Carolina in January 2015

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)



	For the Quarter Ended
	March 31, 2015							March 31, 2014
	Average			Income/		Yield/		Average			Income/		Yield/
($ in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Loans, net of unearned income ⁽¹⁾	$	2,656,556		$	25,333	3.87	%	$	2,070,909		$	21,836	4.28	%
Investment securities ⁽¹⁾	164,456			1,236		3.05	%	176,171			1,304		3.00	%
Federal funds sold and bank deposits	37,815			12		0.13	%	78,084			38		0.20	%
Total interest-earning assets	2,858,827			26,581		3.77	%	2,325,164			23,178		4.04	%
Noninterest-earning assets:
Cash and due from banks	15,311							17,508
Allowance for loan losses	(25,258		)					(33,869		)
Premises and equipment, net	60,979							48,479
Other real estate	22,219							28,798
Other assets	166,001							143,396
Total assets	$	3,098,079						$	2,529,476
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Demand deposits	$	812,833		$	453	0.23	%	$	698,811		$	507	0.29	%
Savings deposits	309,393			255		0.33	%	308,819			296		0.39	%
Time deposits	803,000			1,784		0.90	%	675,034			1,685		1.01	%
Total interest-bearing deposits	1,925,226			2,492		0.52	%	1,682,664			2,488		0.60	%
Other borrowings	229,374			177		0.31	%	63,313			44		0.28	%
Subordinated debt	46,393			276		2.41	%	46,393			275		2.40	%
Total interest-bearing liabilities	2,200,993			2,945		0.54	%	1,792,370			2,807		0.64	%
Noninterest-bearing liabilities and shareholders' equity:
Demand deposits	605,762							478,033
Other liabilities	23,763							21,665
Shareholders’ equity	267,561							237,408
Total liabilities and shareholders’ equity	$	3,098,079						$	2,529,476
Net interest income/spread				$	23,636	3.23	%				$	20,371	3.40	%
Net interest margin						3.35	%						3.55	%

⁽¹⁾ Interest income includes the effect of taxable-equivalent adjustment using a 35% tax rate.

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