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| 8-K - 8-K - FIDELITY SOUTHERN CORP | lionqe331188k-earnings.htm |
FOR IMMEDIATE RELEASE
Contacts: Martha Fleming, Charles D. Christy
Fidelity Southern Corporation (404) 240-1504
FIDELITY SOUTHERN CORPORATION REPORTS EARNINGS
FOR FIRST QUARTER OF $11.8 MILLION
ATLANTA, GA (April 19, 2018) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ: LION), holding company for Fidelity Bank (the “Bank”), today reported net income of $11.8 million, or $0.43 per diluted share, for the first quarter of 2018, compared with $12.4 million, or $0.46 per diluted share, for the fourth quarter of 2017, and with $10.5 million, or $0.40 per diluted share for the first quarter of 2017.
Fidelity’s Chairman, Jim Miller, said, “We are pleased with the results for this quarter as our commercial bank continues to show great progress. The investment we made in our mortgage company over the past year greatly paid off as we saw continued growth and profitability from this line of business. Market pressures continue to change in regards to the indirect auto business. As such, we recently announced the closure of our indirect auto business from Virginia, Louisiana, and Arkansas in order to better align our operations to the declining demand for this product.”
President Palmer Proctor added, “The momentum we started last quarter has continued this quarter in growing higher yielding assets and core deposits. This is our key strategy in our ongoing effort to position the bank for future growth and prosperity. Our SBA and mortgage divisions continue to expand into new markets and our investment in experienced lenders for our commercial bank has already paid off. We are pleased with the progress of our strategic objectives, including improvements to our technology and infrastructure, that will allow us to become a more efficient and effective financial institution.”
BALANCE SHEET
Total assets grew by $234.8 million, or 5.1%, during the quarter, to $4.8 billion at March 31, 2018, compared to $4.6 billion at December 31, 2017, primarily due to total loan growth of $200.9 million, mainly in the commercial and mortgage loan portfolios. Cash balances contributed $14.2 million to the increase and servicing rights increased by $6.9 million, primarily due to mortgage servicing rights ("MSRs") impairment recovery of $4.5 million during the quarter. Other assets also increased by $9.2 million, of which $8.7 million was an increase in FHLB stock.
Asset growth for the quarter was funded by $78.1 million in core deposit growth, $187.2 million increase in short-term borrowings, primarily FHLB borrowings, offset by a $44.9 million reduction in time deposits, mainly brokered deposits.
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Loans
The increase in total loans, including loans held for sale, during the quarter of $200.9 million, or 5.1%, to $4.1 billion at March 31, 2018, was primarily driven by increases of $110.8 million in mortgage, $91.4 million in commercial and SBA, and $17.5 million in construction. The commercial loan production momentum that began in the 4th quarter of 2017 continued to be strong as we continue to implement strategies that will grow our commercial bank. Partially offsetting these increases was a decrease of $25.0 million in the indirect loan portfolio held for sale. While loan sales were seasonally higher for the linked quarter, investor demand for the indirect product has declined, resulting in lower production.
The increase in loans held for sale of $67.5 million, or 18.9%, during the quarter, occurred as the pipeline for expected mortgage loan sales grew due to the decision to slightly extend the holding period of loans prior to sale in the secondary market in an effort to increase total income.
Asset Quality
Asset quality remained strong, although nonperforming assets increased during the quarter, excluding the guaranteed portion of government loans (“adjusted NPA’s”) and acquired loans. Adjusted NPA’s, a non-GAAP measure, increased by $4.5 million during the quarter. The increase was mainly due to two large commercial real estate loans added to nonaccrual during the quarter. The provision for loan losses increased by $2.1 million, mainly due to the growth of our commercial loan portfolio and several NPA-related specific reserves. Net charge-offs continued to trend low at 0.1% of average loans for the quarter.
Fair Value Adjustments
Loan servicing rights increased by $6.9 million, or 6.2%, during the quarter, to $119.6 million at March 31, 2018, compared to $112.6 million at December 31, 2017. MSRs, the primary component of loan servicing rights, contributed the majority of the change, increasing by 7.2%, to $107.9 million at March 31, 2018, as an increase in market interest rates drove the impairment recovery of $4.5 million for the quarter. MSRs also increased due to mortgage loan sales with servicing retained of $431.6 million for the quarter. The current estimated fair market value of MSRs was $113.2 million at March 31, 2018.
At March 31, 2018, fair value adjustments recorded on the balance sheet for loans held for sale, interest rate lock commitments ("IRLCs"), and hedge items were $12.7 million, a $2.3 million, or 22.8% increase, from December 31, 2017 due to growth in both loans held for sale (as previously discussed) and the gross pipeline of IRLCs.
Deposits
Core deposit growth was strong for the quarter as demand, money market and savings deposits grew by $78.1 million, or 2.65%, to $3.0 billion. Money market account promotions continued and new deposit accounts from commercial loan relationships began to fund. Three new branches recently opened in Georgia and Florida also contributed to deposit growth in the first quarter.
The enhanced core deposit base has allowed the Bank to be more relationship-oriented in its approach to time deposits and non-core brokered CD’s. Time deposits decreased by $44.9 million during the quarter, primarily due to the run off in brokered deposits of $40.0 million, resulting in a net increase in deposits of $33.2 million, or 0.86%.
INCOME STATEMENT
Net Income
Net income was $11.8 million, or $0.7 million less than the previous quarter, primarily due to the one-time income tax benefit of $4.9 million recorded in the previous quarter to revalue the deferred tax liability at December 31, 2017. The deferred tax liability was revalued as a result of the reduction of the federal corporate income tax rate from 35% to 21% following the enactment of the Tax Cuts and Jobs Act on December 22, 2017.
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Pre-tax income was $3.2 million higher than the previous quarter, primarily due to higher noninterest income driven by the previously noted MSRs impairment recovery of $4.5 million, partially offset by a decrease in net interest income of $1.1 million as higher-cost short term borrowings increased relative to deposits to finance higher loan production in the first quarter. Noninterest expense also increased by $1.8 million due to increased salaries and benefits.
Net income was $1.2 million higher compared to the same quarter a year ago, primarily due to a decrease of $3.1 million in income tax expense from the change in the federal tax rate as discussed above. Pre-tax income was $1.9 million lower for the quarter. Higher net interest income of $2.5 million was the result of an increase of 13 basis points in loan yields and growth in average loans of $259.1 million, which was offset by $4.2 million in higher noninterest expense primarily salaries and benefits. The increase in loan yield was partially driven by a relatively larger increase in higher yielding commercial loans and the three increases to the fed funds rate in 2017 of 75 basis points in total.
Interest Income
Interest income of $41.6 million was flat compared to the prior quarter. An increase in average loans of $144.9 million drove higher interest income which was offset by loan yields that decreased by 8 basis points. Excluding the variance of 6 basis points in accretable yield, the yield decreased by 2 basis points for the quarter. Interest income on loans for the previous quarter included $1.2 million in accretable yield earned on the purchased credit impaired (“PCI”) loan portfolio, compared to $569,000 in the current quarter.
As compared to the same period in the prior year, interest income increased by $3.9 million, or 10.4%, as the yield on loans increased by 13 basis points, primarily in the commercial, construction, and mortgage loan portfolios, mainly due to the increases in the prime rate of 75 basis points during 2017.
Interest Expense
Interest expense of $6.8 million increased by $1.0 million, or 17.6%, for the quarter, primarily due to increased higher-cost short term borrowings as previously discussed and a 5 basis point increase in deposit cost, due primarily to CD special pricing increases and new Florida and Georgia promotional money market products and rates. The yield paid on short-term borrowings increased 134 basis points due to the significant use of FHLB borrowings during the quarter which carry higher rates.
As compared to the same period in the prior year, interest expense increased by $1.4 million, or 25.6%.
Net Interest Margin
The net interest margin was 3.29% for the quarter compared to 3.42% in the previous quarter, a decrease of 13 basis points, primarily due to the higher interest income in the previous quarter in the PCI loan portfolio as noted above. The yield on total average earning assets also decreased from 3.97% to 3.93%. Average loans increased by $144.9 million with an 8 basis point decrease in yield, primarily due to decreases in yield on commercial and SBA loans. Excluding the variance of 6 basis points in accretable yield, the yield decreased by 2 basis points for the quarter.
Average interest-bearing liabilities increased by $119.5 million, primarily driven by the increase in borrowings for the quarter of $204.3 million to fund loan growth. This increase was offset by a decrease in average interest-bearing deposits of $84.8 million for the quarter.
As compared to the same period a year ago, the net interest margin for the quarter increased by 8 basis points to 3.29% from 3.21%, primarily due to a 13 basis point increase in the yield on average loans of $4.0 billion, offset by an increase of 18 basis points in the yield on total interest-bearing liabilities of $3.1 billion. Average earning assets increased by $207.5 million, primarily due to an increase in average loans over the year. Average interest-bearing liabilities increased by $16.4 million, primarily driven by an increase in average interest-bearing deposits of $26.1 million, offset by a decrease in average borrowings of $9.7 million. Year over year,
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the deposit marketing campaigns in Florida have successfully increased average deposits and new commercial deposit relationships.
Noninterest Income
On a linked-quarter basis, noninterest income increased by $8.2 million, or 28.5%, largely due to a net increase in income from mortgage banking activities of $7.6 million, or 36.5%, including a $6.0 million recovery on the valuation of MSR and a $3.5 million gain from the fair value adjustment related to mortgage loans held for sale, pipeline of interest rate lock commitments, and related hedge items.
Compared to the same period a year ago, noninterest income for the quarter of $37.1 million decreased by $237,000, or 0.6%, primarily due to a net decrease in income from indirect lending activities of $2.3 million, due to a decrease in loan sales over the year as investor demand declined. This decrease was offset by an increase in mortgage banking activities of $2.7 million, or 10.4%, stemming from a change in MSRs impairment/recovery of $2.6 million.
Noninterest Expense
On a linked-quarter basis, total noninterest expense increased due to an increase in salaries and employee benefits expense and loan related expenses. The increase in salaries and benefits of $1.8 million resulted from a normal increase in payroll taxes in the first quarter, as well as an increase in headcount, mainly from new mortgage loan originators and staffing to support three new retail branches recently opened. Also, employee incentives and bonuses were lower in the fourth quarter of 2017 due to the decision not to award annual cash incentive bonuses to executives for 2017. Loan related expenses for the quarter were $930,000 higher due to increases in mortgage and commercial loan activity. These increases were offset by a decrease in commissions of $941,000.
Compared to the first quarter of 2017, noninterest expense of $54.7 million increased by $4.2 million, or 8.2%. Salaries and employee benefits expense increased by $2.1 million, or 8.4%, due primarily to an increase in headcount of 107, or 8.1%, in the mortgage and retail areas as previously discussed. Equity incentives granted in June 2017 which were tied to 2016 performance also increased salaries and benefits expense for the quarter. Occupancy expense increased by $769,000, or 18.5%, due to higher building rental expense as normal rent escalations occurred, as well as higher expenses paid for software maintenance. Professional and other services also increased by $731,000, or 18.0%, primarily due to higher expenses related to our continued investment in technology and back office operations to support our growth.
Income Taxes
The Tax Cuts and Jobs Act enacted on December 22, 2017 included, among other things, a reduction in the federal corporate income tax rate from 35% to 21% from the beginning of the tax year 2018 going forward.
On a linked-quarter basis, as well as compared to the same quarter in prior year, our effective tax rate decreased from 37.8% to 22.7% primarily the result of the federal tax rate change discussed above. Excluding the benefit of employee stock option exercises and other tax adjustments, the effective tax rate for the quarter would have been 24.0%.
OTHER NEWS
Fidelity continued its retail branch expansion during the quarter with the opening of the Hartley Bridge Road branch in Macon, Georgia on January 25, 2018, and the Covington, Georgia branch on March 30, 2018. Fidelity has received regulatory approval to open one additional branch in Sugar Hill, Georgia which it expects to open in Q2 2018, which will bring the total number of retail branches to 69.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries, Fidelity Bank and LionMark Insurance Company, provides banking services and Wealth Management services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. Indirect auto and mortgage
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loans are provided throughout the South while SBA loans are originated nationwide. For additional information about Fidelity’s products and services, please visit the website at www.FidelitySouthern.com.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures. The “GAAP TO NON-GAAP RATIO RECONCILIATION” tables included below reconcile GAAP to non-GAAP ratios. The non-GAAP ratios contain financial information determined by methods other than in accordance with GAAP. Management uses these “non-GAAP” financial measures in its analysis of the Company’s performance. Management believes that presentation of these non-GAAP financial measures provides useful supplemental information that allows better comparability with prior periods, as well as with peers in the industry and provides a greater understanding of the asset quality of the Company’s loan portfolio exclusive of the indirect auto, government-guaranteed and acquired loan portfolios. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
SAFE HARBOR
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 2017 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-
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FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
As of or for the Quarter Ended | |||||||||||
($ in thousands, except per share data) | March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||
INCOME STATEMENT DATA: | |||||||||||
Interest income | $ | 41,562 | $ | 41,653 | $ | 37,642 | |||||
Interest expense | 6,794 | 5,779 | 5,408 | ||||||||
Net interest income | 34,768 | 35,874 | 32,234 | ||||||||
Provision for loan losses | 2,130 | — | 2,100 | ||||||||
Noninterest income | 37,133 | 28,888 | 37,370 | ||||||||
Noninterest expense | 54,742 | 52,910 | 50,572 | ||||||||
Net income before income taxes | 15,029 | 11,852 | 16,932 | ||||||||
Income tax expense (benefit) | 3,262 | (591 | ) | 6,405 | |||||||
Net income | 11,767 | 12,443 | 10,527 | ||||||||
PERFORMANCE: | |||||||||||
Earnings per common share - basic | $ | 0.44 | $ | 0.46 | $ | 0.40 | |||||
Earnings per common share - diluted | 0.43 | 0.46 | 0.40 | ||||||||
Total revenues | 78,695 | 70,541 | 75,012 | ||||||||
Book value per common share | 15.19 | 14.86 | 14.09 | ||||||||
Tangible book value per common share(1) | 14.75 | 14.41 | 13.58 | ||||||||
Cash dividends paid per common share | 0.12 | 0.12 | 0.12 | ||||||||
Dividend payout ratio | 27.27 | % | 26.09 | % | 30.00 | % | |||||
Return on average assets | 1.03 | % | 1.10 | % | 0.97 | % | |||||
Return on average shareholders’ equity | 11.83 | % | 12.57 | % | 11.78 | % | |||||
Equity to assets ratio | 8.54 | % | 8.78 | % | 8.19 | % | |||||
Net interest margin | 3.29 | % | 3.42 | % | 3.21 | % | |||||
END OF PERIOD BALANCE SHEET SUMMARY: | |||||||||||
Total assets | $ | 4,811,659 | $ | 4,576,858 | $ | 4,531,057 | |||||
Earning assets | 4,466,249 | 4,242,218 | 4,192,919 | ||||||||
Loans, excluding Loans Held for Sale | 3,714,308 | 3,580,966 | 3,354,926 | ||||||||
Total loans | 4,139,608 | 3,938,721 | 3,716,043 | ||||||||
Total deposits | 3,900,407 | 3,867,200 | 3,755,108 | ||||||||
Shareholders’ equity | 410,744 | 401,632 | 371,302 | ||||||||
Assets serviced for others | 10,367,564 | 10,242,742 | 9,553,855 | ||||||||
ASSET QUALITY RATIOS: | |||||||||||
Net charge-offs to average loans | 0.11 | % | 0.11 | % | 0.16 | % | |||||
Allowance to period-end loans | 0.83 | % | 0.83 | % | 0.91 | % | |||||
Nonperforming assets to total loans, ORE and repossessions | 2.04 | % | 1.76 | % | 1.77 | % | |||||
Adjusted nonperforming assets to loans, ORE and repossessions(2) | 1.14 | % | 1.06 | % | 1.25 | % | |||||
Allowance to nonperforming loans, ORE and repossessions | 0.41x | 0.47x | 0.51x | ||||||||
SELECTED RATIOS: | |||||||||||
Loans to total deposits | 95.23 | % | 92.60 | % | 89.34 | % | |||||
Average total loans to average earning assets | 92.71 | % | 91.95 | % | 91.08 | % | |||||
Noninterest income to total revenue | 47.19 | % | 40.95 | % | 49.82 | % | |||||
Leverage ratio | 8.74 | % | 8.85 | % | 8.48 | % | |||||
Common equity tier 1 capital | 8.41 | % | 8.86 | % | 8.37 | % | |||||
Tier 1 risk-based capital | 9.47 | % | 10.00 | % | 9.51 | % | |||||
Total risk-based capital | 11.98 | % | 12.65 | % | 12.20 | % | |||||
Mortgage loan production | $ | 613,314 | $ | 669,733 | $ | 552,997 | |||||
Total mortgage loan sales | 496,484 | 602,171 | 566,003 | ||||||||
Indirect automobile production | 258,560 | 345,032 | 316,541 | ||||||||
Total indirect automobile sales | 86,000 | 59,681 | 192,435 | ||||||||
(1) Non-GAAP financial measure. See non-GAAP reconciliation table for the comparable GAAP. | |||||||||||
(2) Excludes acquired loans and net of government guarantees. See non-GAAP reconciliation table for the comparable GAAP. | |||||||||||
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FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($ in thousands) | March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 200,496 | $ | 186,302 | $ | 350,502 | ||||||
Investment securities available-for-sale | 124,576 | 120,121 | 139,071 | |||||||||
Investment securities held-to-maturity | 21,342 | 21,689 | 15,977 | |||||||||
Loans held-for-sale | 425,300 | 357,755 | 361,117 | |||||||||
Loans | 3,714,308 | 3,580,966 | 3,354,926 | |||||||||
Allowance for loan losses | (30,940 | ) | (29,772 | ) | (30,455 | ) | ||||||
Loans, net of allowance for loan losses | 3,683,368 | 3,551,194 | 3,324,471 | |||||||||
Premises and equipment, net | 88,624 | 88,463 | 87,222 | |||||||||
Other real estate, net | 7,668 | 7,621 | 11,284 | |||||||||
Bank owned life insurance | 72,284 | 71,883 | 70,587 | |||||||||
Servicing rights, net | 119,553 | 112,615 | 105,039 | |||||||||
Other assets | 68,448 | 59,215 | 65,787 | |||||||||
Total assets | $ | 4,811,659 | $ | 4,576,858 | $ | 4,531,057 | ||||||
LIABILITIES | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing demand deposits | $ | 1,152,315 | $ | 1,125,598 | $ | 1,005,372 | ||||||
Interest-bearing deposits | ||||||||||||
Demand and money market | 1,505,766 | 1,498,707 | 1,321,936 | |||||||||
Savings | 363,099 | 318,749 | 381,751 | |||||||||
Time deposits | 879,227 | 924,146 | 1,046,049 | |||||||||
Total deposits | 3,900,407 | 3,867,200 | 3,755,108 | |||||||||
Short-term borrowings | 337,795 | 150,580 | 239,466 | |||||||||
Subordinated debt, net | 120,620 | 120,587 | 120,488 | |||||||||
Other liabilities | 42,093 | 36,859 | 44,693 | |||||||||
Total liabilities | 4,400,915 | 4,175,226 | 4,159,755 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common stock | 219,234 | 217,555 | 206,590 | |||||||||
Accumulated other comprehensive (loss) income, net | (631 | ) | 383 | 699 | ||||||||
Retained earnings | 192,141 | 183,694 | 164,013 | |||||||||
Total shareholders’ equity | 410,744 | 401,632 | 371,302 | |||||||||
Total liabilities and shareholders’ equity | $ | 4,811,659 | $ | 4,576,858 | $ | 4,531,057 | ||||||
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FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the Quarter Ended | ||||||||||||
($ in thousands, except per share data) | March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
INTEREST INCOME | ||||||||||||
Loans, including fees | $ | 39,849 | $ | 40,065 | $ | 36,083 | ||||||
Investment securities | 1,175 | 1,015 | 1,208 | |||||||||
Other | 538 | 573 | 351 | |||||||||
Total interest income | 41,562 | 41,653 | 37,642 | |||||||||
INTEREST EXPENSE | ||||||||||||
Deposits | 4,313 | 4,219 | 3,449 | |||||||||
Other borrowings | 910 | 18 | 392 | |||||||||
Subordinated debt | 1,571 | 1,542 | 1,567 | |||||||||
Total interest expense | 6,794 | 5,779 | 5,408 | |||||||||
Net interest income | 34,768 | 35,874 | 32,234 | |||||||||
Provision for loan losses | 2,130 | — | 2,100 | |||||||||
Net interest income after provision for loan losses | 32,638 | 35,874 | 30,134 | |||||||||
NONINTEREST INCOME | ||||||||||||
Service charges on deposit accounts | 1,472 | 1,530 | 1,455 | |||||||||
Other fees and charges | 2,235 | 2,342 | 1,857 | |||||||||
Mortgage banking activities | 28,562 | 20,932 | 25,869 | |||||||||
Indirect lending activities | 2,148 | 2,566 | 4,426 | |||||||||
SBA lending activities | 1,157 | 581 | 1,818 | |||||||||
Bank owned life insurance | 380 | 411 | 439 | |||||||||
Other | 1,179 | 526 | 1,506 | |||||||||
Total noninterest income | 37,133 | 28,888 | 37,370 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Salaries and employee benefits | 27,561 | 25,745 | 25,438 | |||||||||
Commissions | 7,506 | 8,447 | 7,498 | |||||||||
Occupancy, net | 4,932 | 4,793 | 4,163 | |||||||||
Professional and other services | 4,798 | 4,620 | 4,067 | |||||||||
Other | 9,945 | 9,305 | 9,406 | |||||||||
Total noninterest expense | 54,742 | 52,910 | 50,572 | |||||||||
Income before income tax expense/(benefit) | 15,029 | 11,852 | 16,932 | |||||||||
Income tax expense/(benefit) | 3,262 | (591 | ) | 6,405 | ||||||||
NET INCOME | $ | 11,767 | $ | 12,443 | $ | 10,527 | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||
Basic | $ | 0.44 | $ | 0.46 | $ | 0.40 | ||||||
Diluted | $ | 0.43 | $ | 0.46 | $ | 0.40 | ||||||
Weighted average common shares outstanding-basic | 27,011 | 26,904 | 26,335 | |||||||||
Weighted average common shares outstanding-diluted | 27,121 | 27,011 | 26,477 | |||||||||
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FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
LOANS BY CATEGORY
(UNAUDITED)
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||
Commercial | $ | 897,297 | $ | 811,199 | $ | 789,788 | $ | 796,699 | $ | 802,905 | ||||||||||
SBA | 140,308 | 141,208 | 142,989 | 145,311 | 149,727 | |||||||||||||||
Total commercial and SBA loans | 1,037,605 | 952,407 | 932,777 | 942,010 | 952,632 | |||||||||||||||
Construction loans | 265,780 | 248,317 | 243,600 | 248,926 | 249,465 | |||||||||||||||
Indirect automobile | 1,719,670 | 1,716,156 | 1,609,678 | 1,531,761 | 1,565,298 | |||||||||||||||
Installment loans and personal lines of credit | 28,716 | 25,995 | 26,189 | 31,225 | 31,647 | |||||||||||||||
Total consumer loans | 1,748,386 | 1,742,151 | 1,635,867 | 1,562,986 | 1,596,945 | |||||||||||||||
Residential mortgage | 512,673 | 489,721 | 452,584 | 433,544 | 418,941 | |||||||||||||||
Home equity lines of credit | 149,864 | 148,370 | 144,879 | 144,666 | 136,943 | |||||||||||||||
Total mortgage loans | 662,537 | 638,091 | 597,463 | 578,210 | 555,884 | |||||||||||||||
Loans | 3,714,308 | 3,580,966 | 3,409,707 | 3,332,132 | 3,354,926 | |||||||||||||||
Loans held-for-sale: | ||||||||||||||||||||
Residential mortgage | 355,515 | 269,140 | 257,325 | 279,292 | 201,661 | |||||||||||||||
SBA | 19,785 | 13,615 | 8,004 | 15,418 | 9,456 | |||||||||||||||
Indirect automobile | 50,000 | 75,000 | 75,000 | 100,000 | 150,000 | |||||||||||||||
Total loans held-for-sale | 425,300 | 357,755 | 340,329 | 394,710 | 361,117 | |||||||||||||||
Total loans | $ | 4,139,608 | $ | 3,938,721 | $ | 3,750,036 | $ | 3,726,842 | $ | 3,716,043 | ||||||||||
DEPOSITS BY CATEGORY
(UNAUDITED)
For the Quarter Ended | ||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
($ in thousands) | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | Average Amount | Rate | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 1,120,562 | — | % | $ | 1,124,759 | — | % | $ | 1,103,414 | — | % | $ | 1,027,909 | — | % | $ | 961,188 | — | % | ||||||||||||||
Interest-bearing demand deposits | 1,477,280 | 0.48 | % | 1,482,686 | 0.44 | % | 1,447,874 | 0.42 | % | 1,363,651 | 0.37 | % | 1,244,955 | 0.31 | % | |||||||||||||||||||
Savings deposits | 330,239 | 0.31 | % | 352,235 | 0.33 | % | 340,663 | 0.31 | % | 357,712 | 0.32 | % | 387,007 | 0.36 | % | |||||||||||||||||||
Time deposits | 901,394 | 1.04 | % | 958,790 | 0.94 | % | 1,021,563 | 0.92 | % | 1,049,248 | 0.90 | % | 1,050,897 | 0.83 | % | |||||||||||||||||||
Total average deposits | $ | 3,829,475 | 0.46 | % | $ | 3,918,470 | 0.43 | % | $ | 3,913,514 | 0.42 | % | $ | 3,798,520 | 0.41 | % | $ | 3,644,047 | 0.38 | % | ||||||||||||||
9
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
NONPERFORMING AND CLASSIFIED ASSETS
(UNAUDITED)
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||
NONPERFORMING ASSETS | |||||||||||||||||||
Nonaccrual loans (2)(6) | $ | 58,706 | $ | 47,012 | $ | 41,408 | $ | 37,894 | $ | 38,377 | |||||||||
Loans past due 90 days or more and still accruing | 7,728 | 6,313 | 6,534 | 7,210 | 8,414 | ||||||||||||||
Repossessions | 1,853 | 2,392 | 2,040 | 1,779 | 1,654 | ||||||||||||||
Other real estate (ORE) | 7,668 | 7,621 | 8,624 | 9,382 | 11,284 | ||||||||||||||
Nonperforming assets | $ | 75,955 | $ | 63,338 | $ | 58,606 | $ | 56,265 | $ | 59,729 | |||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||
Loans 30-89 days past due | $ | 15,695 | $ | 22,079 | $ | 10,193 | $ | 7,181 | $ | 10,734 | |||||||||
Loans 30-89 days past due to loans | 0.42 | % | 0.62 | % | 0.30 | % | 0.22 | % | 0.32 | % | |||||||||
Loans past due 90 days or more and still accruing to loans | 0.21 | % | 0.18 | % | 0.19 | % | 0.22 | % | 0.25 | % | |||||||||
Nonperforming loans as a % of loans | 1.79 | % | 1.49 | % | 1.41 | % | 1.35 | % | 1.39 | % | |||||||||
Nonperforming assets to loans, ORE, and repossessions | 2.04 | % | 1.76 | % | 1.71 | % | 1.68 | % | 1.77 | % | |||||||||
Adjusted nonperforming assets to loans, ORE and repossessions(8) | 1.14 | % | 1.06 | % | 1.05 | % | 1.17 | % | 1.25 | % | |||||||||
Nonperforming assets to total assets | 1.58 | % | 1.38 | % | 1.30 | % | 1.22 | % | 1.32 | % | |||||||||
Adjusted nonperforming assets to total assets(8) | 0.84 | % | 0.79 | % | 0.75 | % | 0.79 | % | 0.86 | % | |||||||||
Classified Asset Ratio(4) | 21.70 | % | 20.70 | % | 20.59 | % | 20.14 | % | 20.97 | % | |||||||||
ALL to nonperforming loans | 46.57 | % | 55.83 | % | 64.04 | % | 67.46 | % | 65.09 | % | |||||||||
Net charge-offs, annualized to average loans | 0.11 | % | 0.11 | % | 0.13 | % | 0.09 | % | 0.16 | % | |||||||||
ALL as a % of loans | 0.83 | % | 0.83 | % | 0.90 | % | 0.91 | % | 0.91 | % | |||||||||
Adjusted ALL as a % of adjusted loans(7) | 1.15 | % | 1.16 | % | 1.29 | % | 1.30 | % | 1.35 | % | |||||||||
ALL as a % of loans, excluding acquired loans(5) | 0.88 | % | 0.88 | % | 0.96 | % | 0.98 | % | 0.98 | % | |||||||||
CLASSIFIED ASSETS | |||||||||||||||||||
Classified loans(1) | $ | 83,867 | $ | 77,679 | $ | 75,033 | $ | 71,040 | $ | 71,082 | |||||||||
ORE and repossessions | 9,521 | 10,013 | 10,664 | 11,161 | 12,938 | ||||||||||||||
Total classified assets(3) | $ | 93,388 | $ | 87,692 | $ | 85,697 | $ | 82,201 | $ | 84,020 | |||||||||
(1) Amount of SBA guarantee included in classified loans | $ | 2,879 | $ | 2,930 | $ | 2,755 | $ | 7,458 | $ | 5,213 | |||||||||
(2) Amount of repurchased government-guaranteed loans, primarily residential mortgage loans, included in nonaccrual loans | $ | 26,091 | $ | 19,478 | $ | 15,450 | $ | 12,502 | $ | 12,287 | |||||||||
(3) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share and purchase discounts (for periods prior to 2018) | |||||||||||||||||||
(4) Classified asset ratio is defined as classified assets as a percentage of the sum of Tier 1 capital plus allowance for loan losses | |||||||||||||||||||
(5) Allowance calculation excludes the recorded investment of acquired loans, due to valuation calculated at acquisition | |||||||||||||||||||
(6) Excludes purchased credit impaired (PCI) loans which are not removed from their accounting pool | |||||||||||||||||||
(7) Excludes indirect and acquired loans. See non-GAAP reconciliation table for a reconciliation to the comparable GAAP measure | |||||||||||||||||||
(8) Excludes acquired loans and net of government guarantees. See non-GAAP reconciliation table for a reconciliation to the comparable GAAP measure | |||||||||||||||||||
10
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
INCOME FROM INDIRECT LENDING ACTIVITIES | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||
Loan servicing revenue | $ | 1,769 | $ | 2,158 | $ | 2,130 | $ | 2,199 | $ | 1,919 | ||||||||||
Gain on sale of loans | 442 | 532 | 263 | 1,074 | 1,821 | |||||||||||||||
Gain on capitalization of servicing rights | 569 | 406 | 182 | 1,020 | 1,403 | |||||||||||||||
Ancillary loan servicing revenue | 183 | 247 | 172 | 204 | 153 | |||||||||||||||
Gross indirect lending revenue | 2,963 | 3,343 | 2,747 | 4,497 | 5,296 | |||||||||||||||
Less: | ||||||||||||||||||||
Amortization of servicing rights, net | (815 | ) | (777 | ) | (846 | ) | (857 | ) | (870 | ) | ||||||||||
Total income from indirect lending activities | $ | 2,148 | $ | 2,566 | $ | 1,901 | $ | 3,640 | $ | 4,426 | ||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Average loans outstanding(1) | $ | 1,784,982 | $ | 1,748,179 | $ | 1,627,946 | $ | 1,675,644 | $ | 1,756,958 | ||||||||||||
Loans serviced for others | $ | 1,018,743 | $ | 1,056,509 | $ | 1,114,710 | $ | 1,216,296 | $ | 1,197,160 | ||||||||||||
Past due loans: | ||||||||||||||||||||||
Amount 30+ days past due | 2,257 | 3,423 | 2,965 | 1,535 | 2,223 | |||||||||||||||||
Number 30+ days past due | 197 | 283 | 255 | 143 | 200 | |||||||||||||||||
30+ day performing delinquency rate(2) | 0.13 | % | 0.19 | % | 0.18 | % | 0.09 | % | 0.13 | % | ||||||||||||
Nonperforming loans | 1,539 | 1,916 | 1,405 | 1,363 | 1,778 | |||||||||||||||||
Nonperforming loans as a percentage of period end loans(2) | 0.09 | % | 0.11 | % | 0.08 | % | 0.08 | % | 0.10 | % | ||||||||||||
Net charge-offs | $ | 1,147 | $ | 798 | $ | 1,047 | $ | 1,332 | $ | 1,502 | ||||||||||||
Net charge-off rate(3) | 0.27 | % | 0.19 | % | 0.27 | % | 0.35 | % | 0.38 | % | ||||||||||||
Number of vehicles repossessed during the period | 140 | 107 | 132 | 147 | 154 | |||||||||||||||||
Quarterly production weighted average beacon score | 781 | 783 | 776 | 758 | 758 | |||||||||||||||||
(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 | |||||||||||||||||||||
11
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
ANALYSIS OF INDIRECT LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Production by state: | ||||||||||||||||||||||
Alabama | $ | 12,239 | $ | 19,216 | $ | 13,587 | $ | 10,399 | $ | 14,452 | ||||||||||||
Arkansas (3) | 20,322 | 30,732 | 26,997 | 26,569 | 33,602 | |||||||||||||||||
North Carolina | 23,383 | 28,912 | 16,545 | 14,110 | 15,858 | |||||||||||||||||
South Carolina | 12,322 | 16,559 | 10,959 | 11,232 | 15,020 | |||||||||||||||||
Florida | 65,786 | 87,750 | 51,723 | 49,976 | 65,053 | |||||||||||||||||
Georgia | 38,288 | 45,571 | 31,266 | 28,091 | 36,178 | |||||||||||||||||
Mississippi | 24,785 | 32,141 | 24,535 | 20,136 | 21,370 | |||||||||||||||||
Tennessee | 13,509 | 17,635 | 10,931 | 10,012 | 14,143 | |||||||||||||||||
Virginia (3) | 3,620 | 6,495 | 8,223 | 6,292 | 10,282 | |||||||||||||||||
Texas (2) | — | — | 13,312 | 26,542 | 32,902 | |||||||||||||||||
Louisiana (3) | 44,306 | 60,021 | 47,576 | 45,306 | 56,046 | |||||||||||||||||
Oklahoma (2) | — | — | 430 | 1,051 | 1,635 | |||||||||||||||||
Total production by state | $ | 258,560 | $ | 345,032 | $ | 256,084 | $ | 249,716 | $ | 316,541 | ||||||||||||
Loan sales | $ | 86,000 | $ | 59,681 | $ | 27,115 | $ | 151,996 | $ | 192,435 | ||||||||||||
Portfolio yield (1) | 2.98 | % | 2.98 | % | 2.92 | % | 2.84 | % | 2.87 | % | ||||||||||||
(1) | Includes held-for-sale | |||||||||||||||||||||
(2) | Fidelity exited the Oklahoma and Texas markets in Q3 2017 | |||||||||||||||||||||
(3) | Fidelity recently exited the Arkansas, Virginia and Louisiana markets | |||||||||||||||||||||
12
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
INCOME FROM MORTGAGE BANKING ACTIVITIES | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
(in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Marketing gain, net | $ | 17,575 | $ | 16,683 | $ | 19,713 | $ | 21,355 | $ | 18,677 | ||||||||||||
Origination points and fees | 3,647 | 3,482 | 3,815 | 4,189 | 3,021 | |||||||||||||||||
Loan servicing revenue | 6,221 | 5,851 | 5,616 | 5,379 | 5,341 | |||||||||||||||||
Gross mortgage revenue | $ | 27,443 | $ | 26,016 | $ | 29,144 | $ | 30,923 | $ | 27,039 | ||||||||||||
Less: | ||||||||||||||||||||||
MSR amortization | (3,426 | ) | (3,609 | ) | (3,560 | ) | (3,331 | ) | (3,158 | ) | ||||||||||||
MSR recovery/(impairment), net | 4,545 | (1,476 | ) | (544 | ) | (636 | ) | 1,989 | ||||||||||||||
Total income from mortgage banking activities | $ | 28,562 | $ | 20,931 | $ | 25,040 | $ | 26,956 | $ | 25,870 | ||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
ANALYSIS OF MORTGAGE LENDING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Production by region: | ||||||||||||||||||||||
Georgia | $ | 368,739 | $ | 423,876 | $ | 490,323 | $ | 519,497 | $ | 395,404 | ||||||||||||
Florida | 109,034 | 103,490 | 95,010 | 95,983 | 46,365 | |||||||||||||||||
Alabama/Tennessee | 2,709 | 4,609 | 7,299 | 7,294 | 3,600 | |||||||||||||||||
Virginia/Maryland | 91,842 | 106,398 | 129,774 | 143,885 | 81,901 | |||||||||||||||||
North and South Carolina | 40,990 | 31,360 | 30,448 | 33,767 | 25,727 | |||||||||||||||||
Total production by region | $ | 613,314 | $ | 669,733 | $ | 752,854 | $ | 800,426 | $ | 552,997 | ||||||||||||
% for purchases | 85.1 | % | 82.9 | % | 86.3 | % | 89.6 | % | 80.9 | % | ||||||||||||
% for refinance loans | 14.9 | % | 17.1 | % | 13.7 | % | 10.4 | % | 19.1 | % | ||||||||||||
Portfolio Production: | $ | 44,554 | $ | 66,236 | $ | 56,072 | $ | 46,902 | $ | 51,061 | ||||||||||||
Funded loan type (UPB): | ||||||||||||||||||||||
Conventional | 65.9 | % | 62.0 | % | 62.0 | % | 62.5 | % | 63.9 | % | ||||||||||||
FHA/VA/USDA | 22.1 | % | 21.5 | % | 23.3 | % | 24.6 | % | 24.2 | % | ||||||||||||
Jumbo | 12.0 | % | 16.5 | % | 14.7 | % | 12.9 | % | 11.9 | % | ||||||||||||
Gross pipeline of locked loans to be sold (UPB) | $ | 382,386 | $ | 203,896 | $ | 265,444 | $ | 360,551 | $ | 374,739 | ||||||||||||
Loans held for sale (UPB) | $ | 348,797 | $ | 262,315 | $ | 250,960 | $ | 271,714 | $ | 195,772 | ||||||||||||
Total loan sales (UPB) | $ | 496,484 | $ | 602,171 | $ | 731,595 | $ | 689,073 | $ | 566,003 | ||||||||||||
Conventional | 69.1 | % | 64.3 | % | 63.0 | % | 63.6 | % | 69.9 | % | ||||||||||||
FHA/VA/USDA | 27.2 | % | 25.0 | % | 27.1 | % | 26.6 | % | 23.0 | % | ||||||||||||
Jumbo | 3.7 | % | 10.7 | % | 9.9 | % | 9.8 | % | 7.1 | % | ||||||||||||
Average loans outstanding(1) | $ | 725,444 | $ | 701,932 | $ | 698,068 | $ | 664,099 | $ | 592,537 | ||||||||||||
(1) Includes held-for-sale | ||||||||||||||||||||||
13
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
THIRD PARTY MORTGAGE LOAN SERVICING | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||
As of or for the Quarter Ended | ||||||||||||||||||||||
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Loans serviced for others (UPB) | $ | 9,097,869 | $ | 8,917,117 | $ | 8,715,198 | $ | 8,357,934 | $ | 8,067,426 | ||||||||||||
Average loans serviced for others (UPB) | $ | 9,038,568 | $ | 8,896,305 | $ | 8,657,475 | $ | 8,304,065 | $ | 8,013,761 | ||||||||||||
MSR book value, net of amortization | $ | 113,217 | $ | 110,497 | $ | 107,434 | $ | 102,549 | $ | 98,550 | ||||||||||||
MSR impairment | (5,274 | ) | (9,818 | ) | (8,343 | ) | (7,799 | ) | (7,163 | ) | ||||||||||||
MSR net carrying value | $ | 107,943 | $ | 100,679 | $ | 99,091 | $ | 94,750 | $ | 91,387 | ||||||||||||
MSR carrying value as a % of period end UPB | 1.19 | % | 1.13 | % | 1.14 | % | 1.13 | % | 1.13 | % | ||||||||||||
Delinquency % loans serviced for others | 1.24 | % | 1.87 | % | 1.41 | % | 1.02 | % | 0.53 | % | ||||||||||||
MSR revenue multiple(1) | 4.31 | 4.29 | 4.38 | 4.38 | 4.25 | |||||||||||||||||
(1) MSR carrying value (period end) to period end loans serviced for others divided by the ratio of annualized mortgage loan servicing revenue to average mortgage loans serviced for others | ||||||||||||||||||||||
14
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
For the Quarter Ended | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||
Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||
($ in thousands) | Balance | Rate | Balance | Rate | Balance | Rate | ||||||||||||||
Assets | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans, net of unearned income (1) | $ | 3,977,328 | 4.07 | % | $ | 3,832,444 | 4.15 | % | $ | 3,718,260 | 3.94 | % | ||||||||
Investment securities (1) | 155,920 | 3.11 | % | 142,494 | 2.86 | % | 171,853 | 3.02 | % | |||||||||||
Other earning assets | 156,751 | 1.39 | % | 193,186 | 1.18 | % | 192,431 | 0.74 | % | |||||||||||
Total interest-earning assets | 4,289,999 | 3.93 | % | 4,168,124 | 3.97 | % | 4,082,544 | 3.75 | % | |||||||||||
Noninterest-earning assets: | ||||||||||||||||||||
Cash and due from banks | 36,370 | 39,173 | 38,578 | |||||||||||||||||
Allowance for loan losses | (30,002 | ) | (30,579 | ) | (29,788 | ) | ||||||||||||||
Premises and equipment, net | 88,732 | 88,124 | 87,792 | |||||||||||||||||
Other real estate | 7,606 | 8,631 | 14,147 | |||||||||||||||||
Other assets | 233,677 | 232,055 | 216,219 | |||||||||||||||||
Total noninterest-earning assets | 336,383 | 337,404 | 326,948 | |||||||||||||||||
Total assets | $ | 4,626,382 | $ | 4,505,528 | $ | 4,409,492 | ||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Demand and money market deposits | $ | 1,477,280 | 0.48 | % | $ | 1,482,686 | 0.44 | % | $ | 1,244,955 | 0.31 | % | ||||||||
Savings deposits | 330,239 | 0.31 | % | 352,235 | 0.33 | % | 387,007 | 0.36 | % | |||||||||||
Time deposits | 901,394 | 1.04 | % | 958,790 | 0.94 | % | 1,050,897 | 0.83 | % | |||||||||||
Total interest-bearing deposits | 2,708,913 | 0.65 | % | 2,793,711 | 0.60 | % | 2,682,859 | 0.52 | % | |||||||||||
Other short-term borrowings | 235,519 | 1.57 | % | 31,253 | 0.22 | % | 245,262 | 0.65 | % | |||||||||||
Subordinated debt | 120,604 | 5.29 | % | 120,571 | 5.07 | % | 120,472 | 5.28 | % | |||||||||||
Total interest-bearing liabilities | 3,065,036 | 0.90 | % | 2,945,535 | 0.78 | % | 3,048,593 | 0.72 | % | |||||||||||
Noninterest-bearing liabilities and shareholders’ equity: | ||||||||||||||||||||
Demand deposits | 1,120,562 | 1,124,759 | 961,188 | |||||||||||||||||
Other liabilities | 37,336 | 42,486 | 37,390 | |||||||||||||||||
Shareholders’ equity | 403,448 | 392,748 | 362,321 | |||||||||||||||||
Total noninterest-bearing liabilities and shareholders’ equity | 1,561,346 | 1,559,993 | 1,360,899 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,626,382 | $ | 4,505,528 | $ | 4,409,492 | ||||||||||||||
Net interest spread | 3.03 | % | 3.19 | % | 3.03 | % | ||||||||||||||
Net interest margin | 3.29 | % | 3.42 | % | 3.21 | % | ||||||||||||||
15
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
GAAP TO NON-GAAP RATIO RECONCILIATION
(UNAUDITED)
For the Quarter Ended | |||||||||||||||||||
($ in thousands) | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||
Reconciliation of nonperforming assets to adjusted nonperforming assets: | |||||||||||||||||||
Nonperforming assets (GAAP) | $ | 75,955 | $ | 63,338 | $ | 58,606 | $ | 56,265 | $ | 59,729 | |||||||||
Less: repurchased government-guaranteed mortgage loans included on nonaccrual | (26,091 | ) | (19,478 | ) | (15,450 | ) | (12,502 | ) | (12,287 | ) | |||||||||
Less: SBA guaranteed loans included on nonaccrual | (1,541 | ) | (1,652 | ) | (2,145 | ) | (2,949 | ) | (3,373 | ) | |||||||||
Less: Nonaccrual acquired loans | (7,890 | ) | (6,242 | ) | (7,366 | ) | (4,544 | ) | (5,204 | ) | |||||||||
Adjusted nonperforming assets, excluding acquired loans and government-guaranteed loans (Non-GAAP) | $ | 40,433 | $ | 35,966 | $ | 33,645 | $ | 36,270 | $ | 38,865 | |||||||||
Reconciliation of total loans, ORE and repossessions to total loans, ORE and repossessions, less acquired loans: | |||||||||||||||||||
Loans, excluding Loans Held-for-Sale | $ | 3,714,308 | $ | 3,580,966 | $ | 3,409,707 | $ | 3,332,132 | $ | 3,354,926 | |||||||||
Add: ORE | 7,668 | 7,621 | 8,624 | 9,382 | 11,284 | ||||||||||||||
Add: repossessions | 1,853 | 2,392 | 2,040 | 1,779 | 1,654 | ||||||||||||||
Total loans, ORE, and repossessions (GAAP) | 3,723,829 | 3,590,979 | 3,420,371 | 3,343,293 | 3,367,864 | ||||||||||||||
Less: acquired loans | (178,496 | ) | (196,567 | ) | (216,994 | ) | (230,256 | ) | (258,366 | ) | |||||||||
Total loans, ORE, and repossessions, less acquired loans (non-GAAP) | $ | 3,545,333 | $ | 3,394,412 | $ | 3,203,377 | $ | 3,113,037 | $ | 3,109,498 | |||||||||
Nonperforming assets to loans, ORE, and repossessions (GAAP) | 2.04 | % | 1.76 | % | 1.71 | % | 1.68 | % | 1.77 | % | |||||||||
Adjusted nonperforming assets to loans, ORE, and repossessions (non-GAAP) | 1.14 | % | 1.06 | % | 1.05 | % | 1.17 | % | 1.25 | % | |||||||||
Nonperforming assets to total assets (GAAP) | 1.58 | % | 1.38 | % | 1.30 | % | 1.22 | % | 1.32 | % | |||||||||
Adjusted nonperforming assets to total assets (non-GAAP) | 0.84 | % | 0.79 | % | 0.75 | % | 0.79 | % | 0.86 | % | |||||||||
Reconciliation of allowance to adjusted allowance: | |||||||||||||||||||
Allowance for loan losses (GAAP) | $ | 30,940 | $ | 29,772 | $ | 30,703 | $ | 30,425 | $ | 30,455 | |||||||||
Less: allowance allocated to indirect auto loans | (9,888 | ) | (10,258 | ) | (10,116 | ) | (9,767 | ) | (9,442 | ) | |||||||||
Less: allowance allocated to acquired loans | (134 | ) | (209 | ) | (159 | ) | (284 | ) | (284 | ) | |||||||||
Adjusted allowance for loan losses (non-GAAP) | $ | 20,918 | $ | 19,305 | $ | 20,428 | $ | 20,374 | $ | 20,729 | |||||||||
Reconciliation of period end loans to adjusted period end loans: | |||||||||||||||||||
Loans, excluding Loans Held-for-Sale | $ | 3,714,308 | $ | 3,580,966 | $ | 3,409,707 | $ | 3,332,132 | $ | 3,354,926 | |||||||||
Less: indirect auto loans | (1,719,670 | ) | (1,716,156 | ) | (1,609,689 | ) | (1,531,761 | ) | (1,565,298 | ) | |||||||||
Less: acquired loans | (178,496 | ) | (196,567 | ) | (216,994 | ) | (230,256 | ) | (258,366 | ) | |||||||||
Adjusted total loans (non-GAAP) | $ | 1,816,142 | $ | 1,668,243 | $ | 1,583,024 | $ | 1,570,115 | $ | 1,531,262 | |||||||||
Allowance to total loans (GAAP) | 0.83 | % | 0.83 | % | 0.90 | % | 0.91 | % | 0.91 | % | |||||||||
Adjusted allowance to adjusted total loans (non-GAAP) | 1.15 | % | 1.16 | % | 1.29 | % | 1.30 | % | 1.35 | % | |||||||||
Reconciliation of book value per common share to tangible book value per common share: | |||||||||||||||||||
Shareholders' equity | $ | 410,744 | $ | 401,632 | $ | 388,068 | $ | 379,399 | $ | 371,302 | |||||||||
Less: intangible assets | (12,028 | ) | (12,306 | ) | (12,625 | ) | (12,966 | ) | (13,307 | ) | |||||||||
Tangible shareholders' equity | $ | 398,716 | $ | 389,326 | $ | 375,443 | $ | 366,433 | $ | 357,995 | |||||||||
End of period common shares outstanding | 27,034,255 | 27,019,201 | 26,815,287 | 26,702,665 | 26,358,620 | ||||||||||||||
Book value per common share (GAAP) | 15.19 | 14.86 | 14.47 | 14.21 | 14.09 | ||||||||||||||
Tangible book value per common share (non-GAAP) | 14.75 | 14.41 | 14.00 | 13.72 | 13.58 | ||||||||||||||
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