ATLANTA, April 20, 2017 /PRNewswire/ -- 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, 2017.

KEY RESULTS

  • Net income of $10.5 million, or $0.40 per diluted share, an increase of $6.0 million, or 131.8%, year over year
  • Total revenues of $75.0 million, an increase of $15.8 million, or 26.8%, year over year
  • Loans, net of held-for-sale, grew by $52.7 million, or 1.6%
  • Total assets of $4.5 billion increased by $141.4 million, or 3.2%
  • Total deposits of $3.8 billion increased by $124.5 million, or 3.4%
  • Loans serviced for others of $9.6 billion grew by $346.8 million, or 3.8%
  • Tangible book value increased to $13.58, or 2.4%

Fidelity's Chairman and CEO, Jim Miller, said, "The current economy seems to be taking a pause, as reflected in interest rate volatility, though we still anticipate a gradual economic improvement given the worldwide economic environment. That means our effort to expand mortgage lending, particularly in Florida, will stay on track. Similarly our robust growth in Wealth Management's sales force means that department will be a net contributor to earnings by year end. Wealth Management also plans to offer life insurance products through a third party this year.  Construction lending is also robust while lending to business is still very competitive and depends on taking market share.

"As we approach the $five billion mark for assets on our books and the $10 billion mark for assets serviced for others, our attention is really focused on having the right systems, training, and personnel in place to best serve our customers.

"We are all gratified to have Palmer Proctor's leadership and look forward to his official start date of April 27 as the Bank's CEO."

BALANCE SHEET

Total assets of $4.5 billion at March 31, 2017, represent an increase of $141.4 million, or 3.2%, compared to December 31, 2016. The increase in total assets was driven by an increase in cash and cash equivalents which grew $200.8 million, or 134.1%, leading to an increase in total deposits of $124.5 million, or 3.4%, compared to December 31, 2016. Total assets were also impacted by a decrease of $104.2 million, or 22.4%, in loans held-for-sale due to fluctuations in the pipeline of loans to be sold. Loans held-for-investment increased $52.7 million, or 1.6%, due to new loan production during the quarter, as described below.

Loans

Total loans held for investment of $3.4 billion at March 31, 2017, represented an increase of $52.7 million, or 1.6%, compared to December 31, 2016, primarily in the residential mortgage and commercial portfolios, resulting in increases of $32.4 million, or 8.4%, and $18.2 million, or 2.3%. The Bank continues to generate organic new business as well as leverage its expansion through past acquisitions.

Loan Servicing Rights

Gross servicing rights increased by $5.7 million, or 5.8%, to $105.0 million at March 31, 2017. Cumulative production and sales of residential mortgage, SBA, and indirect auto loans continued to grow and generate a net increase of servicing rights.

Deposits

Total deposits at March 31, 2017, of $3.8 billion increased by $124.5 million, or 3.4%, during the quarter. Noninterest bearing demand deposits increased $40.5 million, or 4.2%, during the quarter. An increase in interest bearing deposits of $107.6 million, or 8.9%, in the demand and money market category was partially offset by decreases of $18.0 million and $5.5 million, in savings and time deposits, respectively. Deposit balances continue to grow with successful marketing efforts and the expansion of our geographical footprint.

INCOME STATEMENT

Net Income

Net income was $10.5 million for the quarter, an increase of $6.0 million, or 131.8%, compared to the first quarter of 2016. The primary driver of the increase in net income was an increase of $12.5 million, or 50.2%, in noninterest income, stemming from an additional $11.1 million of income from mortgage banking activities. In addition, the year over year increase in average earning assets of $430.9 million, or 11.8%, contributed an additional $2.9 million, in net interest income. These increases in net income were partially offset by an increase in the provision for loan losses of $1.6 million and an increase in noninterest expense of $4.0 million, due to increased salaries and employee benefits and commissions.

On a linked-quarter basis, net income decreased by $4.5 million, or 30.1%, as total revenue decreased by $10.4 million, or 12.2%, led by a $11.6 million, or 30.9%, decrease in noninterest income from mortgage banking activities, from less MSR impairment recovery and lower mortgage production, than the previous quarter. This decrease was partially offset primarily by a decrease of $3.6 million, or 6.6%, in noninterest expense. A decrease in net income, on a linked-quarter basis, was expected due to seasonality of home mortgage production and automobile purchases, as well as higher payroll related taxes.

Interest Income

Interest income was $37.6 million for the quarter, an increase of $3.4 million, or 9.8%, compared to the same period in the prior year. Average loans for the quarter increased by $347.6 million, or 10.3%, compared to the same quarter a year ago, which was the primary reason for the increase in interest income.

On a linked-quarter basis, interest income decreased by $645,000, or 1.7%. The decrease in interest income was primarily driven by a decrease of $56.7 million, or 1.5%, in average loans.

Interest Expense

Interest expense was $5.4 million for the quarter, an increase of $410,000, or 8.2%, compared to the same quarter a year ago, as a combination of organic growth and deposits added through the March 2016 AEB acquisition resulted in a year over year increase of $257.2 million, or 10.6%, in average interest-bearing deposits.

The increase in interest expense due to larger average deposit balances was partially offset by a decrease in the rate paid on interest-bearing accounts, primarily time deposits, of 7 basis points as compared to the same quarter a year ago.

On a linked-quarter basis, interest expense was relatively flat, increasing by $56,000, or 1.0%, due to an increase in average interest-bearing deposits of $100.1 million, or 3.7%.

Net Interest Margin

Net interest income (tax equivalent) rose to $32.4 million for the quarter, or 10.1%, as compared to $29.4 million for the same period in 2016, primarily due to a year over year increase of $430.9 million, or 11.8%, in average earning assets. This increase occurred primarily from organic loan growth, partially offset by an increase in interest expense from growth in average interest-bearing deposits which increased by $257.2 million or 10.6%.

The net interest margin was 3.21% for the quarter, a decrease of 3 basis points, compared to 3.24% for the same period in 2016.

On a linked-quarter basis, the net interest margin decreased by 4 basis points. These decreases in the net interest margin occurred primarily as a result of mix in interest earning assets with an increase in cash held at March 31, 2017 resulting from the deposit campaigns as well as late quarter sales of loans.

Provision for Loan Losses

The provision for loan losses was $2.1 million for the quarter, an increase of $1.6 million, as compared to the same period in 2016. The primary reason for the increase in the provision was the increase in net charge-offs for the quarter, primarily in the indirect auto loan portfolio, as compared to the same period in 2016.

On a linked-quarter basis, the provision for loan losses decreased by $385,000, as net charge-offs decreased compared to the previous quarter, mostly due to seasonal fluctuations, mainly in the level of net charge-offs of commercial and HELOC loans. Asset quality remained strong; the trend in low net charge-offs continued for most of our portfolio, with the exception of indirect automobile, which experienced an increase of $196,000, or 15.0%, over the prior quarter.

Noninterest Income

Noninterest income was $37.4 million for the quarter, an increase of $12.5 million, or 50.2%, as compared to the same period in 2016. The increase is primarily due to a net increase in noninterest income from mortgage banking activities of $11.1 million, or 75.6%, as compared to the same period in 2016.

Mortgage production income was $21.7 million for the quarter, a $3.5 million, or 19.4%, increase over the same period in 2016, due to increased loan originations on new loans and sales.

Mortgage servicing revenue increased by $849,000, or 18.9%, for the quarter, as compared to the same period in 2016, due to continued loan originations and sales, as the portfolio of mortgage loans serviced for others increased from $6.9 billion to $8.1 billion, or 17.0%, year over year.

The increase in market interest rates resulted in a net recovery of MSR impairment of $2.0 million during the quarter as compared to net MSR impairment of $4.7 million for the same period in 2016, driving $6.7 million of the increase in noninterest income from mortgage banking activities.

On a linked-quarter basis, noninterest income decreased by $9.8 million, or 20.7%, largely due to a net decrease in income from mortgage banking activities of $11.6 million, or 30.9%. The decrease was largely driven by an $11.2 million swing in MSR impairment recovery as a large net recovery of MSR impairment was recorded during the previous quarter due to an increase in interest rates, offset by higher noninterest income for indirect and SBA lending activities.

Noninterest Expense

Noninterest expense was $50.6 million for the quarter, an increase of $4.0 million, or 8.6%, as compared to the same period in 2016, mostly due to increased expenses associated with organic growth as well as the AEB acquisition. Increases were noted in salaries and employee benefits, commissions, and other noninterest expense, as discussed below.

Salaries and employee benefits increased by $2.4 million, or 10.3%, for the quarter, as compared to the same period in 2016. The approximate growth in the FTE count of 51 or 4.0%, at March 31, 2017, as compared to March 31, 2016, drove the majority of the increase in salaries. Also included in the increase is $683,000 of employer taxes and employee benefits, primarily resulting from the increase in both number of employees and the increased cost of employer-paid benefits, mainly medical premiums.

Commissions increased by $900,000, or 13.6%, for the quarter, as compared to the same period in 2016, primarily due to an increased tiered commission rates program, an increase in retail mortgage production, and an increase in guaranteed commissions paid to new mortgage loan originators. 

Other noninterest expense increased by $646,000, or 5.7%, for the quarter, as compared to the same period in 2016. The majority of this increase occurred due to increases in normal operating costs, ORE carrying costs, and services provided by third party vendors.

On a linked-quarter basis, total noninterest expense decreased by $3.6 million, or 6.6%, for the quarter. Decreases in commissions expense of $2.0 million, or 21.2%, due to lower mortgage loan production, decreases in occupancy expense of $733,000, or 15.0%, as lower amounts for hardware and software maintenance costs, real property taxes, and utility expenses were incurred, and decreases in other noninterest expense of $648,000, or 5.1%, primarily due to FDIC indemnification assets adjustments, accounting for the majority of the differences on a linked-quarter basis.

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. SBA, indirect automobile, and mortgage loans are provided throughout the South and parts of the Midwest. 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 2016 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.


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(UNAUDITED)



As of or for the Quarter Ended

($ in thousands, except per share data)

March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

INCOME STATEMENT DATA:










Interest income

$

37,642



$

38,287



$

39,898



$

36,806



$

34,292


Interest expense

5,408



5,352



5,135



4,963



4,998


Net interest income

32,234



32,935



34,763



31,843



29,294


Provision for loan losses

2,100



2,485



2,118



3,128



500


Noninterest income

37,370



47,143



39,325



29,971



24,886


Noninterest expense

50,571



54,170



52,167



48,125



46,558


Net income

10,527



15,065



12,515



6,645



4,541


PERFORMANCE:










Earnings per common share - basic

$

0.40



$

0.57



$

0.48



$

0.26



$

0.19


Earnings per common share - diluted

0.40



0.57



0.48



0.26



0.18


Total revenues

75,012



85,430



79,223



66,777



59,178


Book value per common share

14.09



13.78



13.32



13.17



12.96


Tangible book value per common share

13.58



13.26



12.78



12.60



12.40


Cash dividends paid per common share

0.12



0.12



0.12



0.12



0.12


Dividend payout ratio

30.00

%


21.05

%


25.00

%


46.15

%


63.16

%

Return on average assets

0.97

%


1.37

%


1.15

%


0.64

%


0.46

%

Return on average shareholders' equity

11.78

%


16.90

%


14.58

%


8.07

%


5.90

%

Equity to assets ratio

8.19

%


8.26

%


7.91

%


7.84

%


8.04

%

Net interest margin

3.21

%


3.25

%


3.45

%


3.30

%


3.24

%

END OF PERIOD BALANCE SHEET SUMMARY:










Total assets

$

4,531,057



$

4,389,685



$

4,395,611



$

4,281,927



$

4,101,499


Earning assets

4,192,919



4,059,414



4,074,834



3,972,492



3,779,885


Loans, excluding Loans Held-for-Sale

3,354,926



3,302,264



3,332,311



3,190,707



3,092,632


Total loans

3,716,043



3,767,592



3,783,928



3,649,736



3,489,511


Total deposits

3,755,108



3,630,594



3,538,908



3,569,606



3,421,448


Shareholders' equity

371,302



362,647



347,770



335,870



329,778


Assets serviced for others

9,553,855



9,207,070



8,926,574



8,699,107



8,336,541


DAILY AVERAGE BALANCE SHEET SUMMARY:










Total assets

$

4,409,492



$

4,368,579



$

4,329,974



$

4,207,171



$

3,942,683


Earning assets

4,082,544



4,051,164



4,020,453



3,891,966



3,651,635


Loans, excluding Loans Held-for-Sale

3,320,992



3,323,513



3,266,511



3,161,676



3,023,312


Total loans

3,718,260



3,774,939



3,718,341



3,590,929



3,370,645


Total deposits

3,644,047



3,561,713



3,573,131



3,470,966



3,212,691


Shareholders' equity

362,321



354,542



341,393



331,056



308,952


Assets serviced for others

9,382,261



9,043,167



8,807,270



8,480,382



8,162,343


ASSET QUALITY RATIOS:










Net charge-offs to average loans

0.16

%


0.29

%


%


0.25

%


(0.20)

%

Allowance to period-end loans

0.91

%


0.90

%


0.89

%


0.88

%


0.86

%

Nonperforming assets to total loans, ORE and repossessions

1.52

%


1.57

%


1.54

%


1.66

%


2.03

%

Allowance to nonperforming loans, ORE and repossessions

0.59x



0.57x



0.58x



0.53x



0.42x


SELECTED RATIOS:










Loans to total deposits

89.34

%


90.96

%


94.16

%


89.39

%


90.39

%

Average total loans to average earning assets

91.08

%


93.18

%


92.49

%


92.27

%


92.31

%

Noninterest income to total revenue

49.82

%


55.18

%


49.64

%


44.88

%


42.05

%

Leverage ratio

8.48

%


8.58

%


8.48

%


8.46

%


8.88

%

Common equity tier 1 capital

8.37

%


8.35

%


8.19

%


8.18

%


8.25

%

Tier 1 risk-based capital

9.51

%


9.46

%


9.31

%


9.35

%


9.47

%

Total risk-based capital

12.20

%


12.11

%


11.97

%


12.06

%


12.21

%


 

 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


($ in thousands)


March 31,
 2017


December 31,
 2016


March 31,
 2016

ASSETS







Cash and cash equivalents


$

350,502



$

149,711



$

125,289


Investment securities available-for-sale


139,071



144,310



167,574


Investment securities held-to-maturity


15,977



16,583



15,248


Loans held-for-sale


361,117



465,328



396,879









Loans


3,354,926



3,302,264



3,092,632


Allowance for loan losses


(30,455)



(29,831)



(26,726)


Loans, net of allowance for loan losses


3,324,471



3,272,433



3,065,906









Premises and equipment, net


87,222



87,915



87,993


Other real estate, net


11,284



14,814



19,482


Bank owned life insurance


70,587



70,151



66,536


Servicing rights, net


105,039



99,295



82,879


Other assets


65,787



69,145



73,713


Total assets


$

4,531,057



$

4,389,685



$

4,101,499









LIABILITIES







Deposits







Noninterest-bearing demand deposits


$

1,005,372



$

964,900



$

885,319


Interest-bearing deposits







  Demand and money market


1,321,936



1,214,383



1,130,050


  Savings


381,751



399,754



355,858


  Time deposits


1,046,049



1,051,557



1,050,221


Total deposits


3,755,108



3,630,594



3,421,448









Short-term borrowings


239,466



243,351



189,278


Subordinated debt, net


120,488



120,454



120,355


Other liabilities


44,693



32,639



40,640


Total liabilities


4,159,755



4,027,038



3,771,721









SHAREHOLDERS' EQUITY







Preferred stock







Common stock


206,589



205,309



195,200


Accumulated other comprehensive income, net


699



692



2,841


Retained earnings


164,014



156,646



131,737


Total shareholders' equity


371,302



362,647



329,778


Total liabilities and shareholders' equity


$

4,531,057



$

4,389,685



$

4,101,499


 


 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)




For the Quarter Ended

($ in thousands, except per share data)


March 31,
 2017


December 31,
 2016


March 31,
 2016

INTEREST INCOME







Loans, including fees


$

36,083



$

36,935



$

32,945


Investment securities


1,208



1,241



1,280


Other


351



111



67


Total interest income


37,642



38,287



34,292


INTEREST EXPENSE







Deposits


3,449



3,382



3,265


Short term borrowings


392



474



294


Subordinated debt


1,567



1,496



1,439


Total interest expense


5,408



5,352



4,998


Net interest income


32,234



32,935



29,294


Provision for loan losses


2,100



2,485



500


Net interest income after provision for loan losses


30,134



30,450



28,794


NONINTEREST INCOME







Service charges on deposit accounts


1,455



1,608



1,370


Other fees and charges


1,871



1,902



1,666


Mortgage banking activities


25,869



37,464



14,735


Indirect lending activities


4,426



3,466



4,264


SBA lending activities


1,818



1,330



1,234


Bank owned life insurance


439



458



454


Securities gains






82


Other


1,492



915



1,081


Total noninterest income


37,370



47,143



24,886


NONINTEREST EXPENSE







Salaries and employee benefits


25,438



25,808



23,055


Commissions


7,498



9,514



6,598


Occupancy, net


4,163



4,896



4,384


Communication


1,434



1,265



1,128


Other


12,039



12,687



11,393


Total noninterest expense


50,572



54,170



46,558


Income before income tax expense


16,932



23,423



7,122


Income tax expense


6,405



8,358



2,581


NET INCOME


$

10,527



$

15,065



$

4,541









EARNINGS PER COMMON SHARE:







Basic


$

0.40



$

0.57



$

0.19


Diluted


$

0.40



$

0.57



$

0.18


Weighted average common shares outstanding-basic


26,335



26,230



24,273


Weighted average common shares outstanding-diluted


26,477



26,342



24,841


 


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

LOANS BY CATEGORY

(UNAUDITED)


($ in thousands)


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

Commercial


$

802,905



$

784,737



$

789,674



$

791,698



$

791,633


SBA


149,727



149,779



145,890



144,083



137,220


Total commercial and SBA loans


952,632



934,516



935,564



935,781



928,853


Construction loans


249,465



238,910



228,887



223,156



205,550


Indirect automobile


1,565,298



1,575,865



1,631,903



1,512,406



1,463,005


Installment loans and personal lines of credit


31,647



33,225



34,181



29,725



27,843


Total consumer loans


1,596,945



1,609,090



1,666,084



1,542,131



1,490,848


Residential mortgage


418,941



386,582



370,465



368,706



347,336


Home equity lines of credit


136,943



133,166



131,311



120,933



120,045


Total mortgage loans


555,884



519,748



501,776



489,639



467,381


Loans


3,354,926



3,302,264



3,332,311



3,190,707



3,092,632













Loans held-for-sale:











Residential mortgage


201,661



252,712



291,030



299,616



232,794


SBA


9,456



12,616



10,587



9,413



14,085


Indirect automobile


150,000



200,000



150,000



150,000



150,000


Total loans held-for-sale


361,117



465,328



451,617



459,029



396,879


Total loans


$

3,716,043



$

3,767,592



$

3,783,928



$

3,649,736



$

3,489,511













Noncovered loans


$

3,345,667



$

3,286,336



$

3,315,448



$

3,171,138



$

3,071,452


Covered loans


9,259



15,928



16,863



19,569



21,180


Loans held-for-sale


361,117



465,328



451,617



459,029



396,879


Total loans


$

3,716,043



$

3,767,592



$

3,783,928



$

3,649,736



$

3,489,511


 

DEPOSITS BY CATEGORY

(UNAUDITED)



For the Quarter Ended


March 31, 2017


December 31, 2016


September 30, 2016


June 30, 2016


March 31, 2016

($ in thousands)

Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate


Average
Amount


Rate

Noninterest-bearing demand deposits

$

961,188



%


$

978,909



%


$

1,004,924



%


$

932,448



%


$

786,993



%

Interest-bearing demand deposits

1,244,955



0.31

%


1,179,837



0.25

%


1,151,152



0.26

%


1,129,179



0.26

%


1,051,221



0.27

%

Savings deposits

387,007



0.36

%


350,885



0.33

%


370,011



0.35

%


355,801



0.32

%


358,481



0.34

%

Time deposits

1,050,897



0.83

%


1,052,082



0.89

%


1,047,044



0.86

%


1,053,538



0.84

%


1,015,996



0.90

%

Total average deposits

$

3,644,047



0.38

%


$

3,561,713



0.38

%


$

3,573,131



0.37

%


$

3,470,966



0.37

%


$

3,212,691



0.41

%









































 


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

NONPERFORMING AND CLASSIFIED ASSETS

(UNAUDITED)


($ in thousands)

March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

NONPERFORMING ASSETS










Nonaccrual loans (2) (6)

$

38,377



$

35,358



$

32,796



$

33,435



$

29,611


Loans past due 90 days or more and still accruing









1,671


Repossessions

1,654



2,274



1,747



1,067



1,751


Other real estate (ORE)

11,284



14,814



16,926



18,621



19,482


Nonperforming assets

$

51,315



$

52,446



$

51,469



$

53,123



$

52,515












NONPERFORMING ASSET RATIOS










Loans 30-89 days past due

$

10,734



$

7,090



$

5,821



$

6,705



$

8,180


Loans 30-89 days past due to loans

0.32

%


0.21

%


0.17

%


0.21

%


0.26

%

Loans past due 90 days or more and still accruing to loans

%


%


%


%


0.05

%

Nonperforming assets to loans, ORE, and repossessions

1.52

%


1.58

%


1.54

%


1.65

%


1.69

%











ASSET QUALITY RATIOS










Classified Asset Ratio(4)

20.97

%


21.21

%


21.47

%


21.79

%


23.71

%

Nonperforming loans as a % of loans

1.14

%


1.07

%


0.98

%


1.05

%


1.01

%

ALL to nonperforming loans

79.36

%


84.37

%


90.68

%


83.86

%


85.44

%

Net charge-offs/(recoveries), annualized to average loans

0.16

%


0.31

%


%


0.25

%


(0.02)

%

ALL as a % of loans

0.91

%


0.90

%


0.89

%


0.88

%


0.86

%

ALL as a % of loans, excluding acquired loans(5)

0.98

%


0.99

%


0.98

%


0.97

%


0.96

%











CLASSIFIED ASSETS










Classified loans(1)

71,082



68,128



67,826



62,120



71,877


ORE and repossessions

12,938



17,088



16,792



16,396



17,009


Total classified assets(3)

$

84,020



$

85,216



$

84,618



$

78,516



$

88,886












(1) Amount of SBA guarantee included in classified loans

$

5,213



$

7,735



$

8,665



$

5,007



$

5,226


(2) Amount of repurchased government-guaranteed
     loans, primarily residential mortgage loans, included
     in nonaccrual loans

$

12,287



$

7,771



$

4,648



$

2,388



$


(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

(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

 

 


 

FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF INDIRECT LENDING

(UNAUDITED)


















As of or for the Quarter Ended

($ in thousands)


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

Average loans outstanding(1)


$

1,756,958



$

1,702,006



$

1,726,342



$

1,642,829



$

1,419,389


Loans serviced for others


1,197,160



1,130,289



1,152,636



1,219,909



1,171,453


Past due loans:












Amount 30+ days past due


2,223



2,972



1,585



1,588



1,087



Number 30+ days past due


200



252



135



129



113


30+ day performing delinquency rate(2)


0.13

%


0.17

%


0.09

%


0.10

%


0.07

%

Nonperforming loans


$

1,778



$

1,278



$

1,231



$

887



$

797


Nonperforming loans as a percentage of period end loans(2)


0.10

%


0.07

%


0.07

%


0.05

%


0.05

%

Net charge-offs


$

1,502



$

1,306



$

895



$

751



$

797


Net charge-off rate(3)


0.39

%


0.32

%


0.23

%


0.20

%


0.21

%

Number of vehicles repossessed during the period


154



164



145



120



127


Average beacon score


758



758



758



756



756


Production by state:












Alabama


$

14,452



$

11,613



$

18,296



$

21,820



$

19,971



Arkansas


33,602



32,789



48,143



44,548



34,340



North Carolina


15,858



13,734



21,874



25,159



19,660



South Carolina


15,020



11,953



14,146



17,031



16,471



Florida


65,053



56,432



71,530



77,108



81,638



Georgia


36,178



29,150



43,948



51,253



47,141



Mississippi


21,370



17,784



26,260



28,414



27,233



Tennessee


14,143



12,963



18,661



21,683



17,529



Virginia


10,282



6,063



8,937



12,546



11,580



Texas


32,902



24,942



31,851



32,522



35,445



Louisiana


56,046



49,849



57,039



60,557



38,430



Oklahoma


1,635



1,780



945



1,238



1,796




Total production by state


$

316,541



$

269,052



$

361,630



$

393,879



$

351,234


Loan sales


$

192,435



$

97,916



$

64,793



$

175,991



$

171,834


Portfolio yield(1)


2.87

%


2.88

%


2.81

%


2.77

%


2.72

%



(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

INCOME FROM MORTGAGE BANKING ACTIVITIES

(UNAUDITED)


















For the Quarter Ended

(in thousands)


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

Marketing gain, net


$

18,677



$

19,364



$

25,240



$

22,734



$

15,162


Origination points and fees


3,021



3,786



3,911



4,101



3,014


Loan servicing revenue


5,341



5,088



4,896



4,631



4,492


Gross mortgage revenue


$

27,039



$

28,238



$

34,047



$

31,466



$

22,668


Less:











MSR amortization


(3,158)



(3,918)



(4,414)



(3,610)



(3,272)


MSR recovery (impairment), net


1,989



13,144



458



(8,569)



(4,661)


Total income from mortgage banking activities


$

25,870



$

37,464



$

30,091



$

19,287



$

14,735















FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

ANALYSIS OF MORTGAGE LENDING

(UNAUDITED)


















As of or for the Quarter Ended

($ in thousands)


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

Production by region:












Georgia


$

395,404



$

532,177



$

580,170



$

526,446



$

341,074



Florida


46,365



46,140



44,849



45,339



35,257



Alabama/Tennessee(2)


3,600



5,485



7,307



8,892



7,155



Virginia/Maryland


81,901



139,283



160,959



160,644



112,769



North and South Carolina


25,727



33,783



31,332



33,497



27,567



Total retail


552,997



756,868



824,617



774,818



523,822



Wholesale






3,507



40,233



46,905



Total production by region


$

552,997



$

756,868



$

828,124



$

815,051



$

570,727













% for purchases

80.9

%


61.3

%


66.7

%


76.8

%


71.5

%

% for refinance loans

19.1

%


38.7

%


33.3

%


23.2

%


28.5

%












Portfolio Production


$

51,061



$

38,907



$

45,586



$

47,847



$

36,462













Funded loan type (UPB):













Conventional


63.9

%


68.9

%


68.9

%


65.9

%


66.1

%



FHA/VA/USDA


24.2

%


21.6

%


22.2

%


23.3

%


21.7

%



Jumbo


11.9

%


9.5

%


8.9

%


10.8

%


12.2

%














Gross pipeline of locked loans to be sold (UPB)


$

374,739



$

211,921



$

394,773



$

387,777



$

370,497


Loans held for sale (UPB)


$

195,772



$

250,094



$

281,418



$

288,734



$

226,327















Total loan sales (UPB)


$

566,003



$

758,775



$

796,379



$

712,712



$

547,614




Conventional


69.9

%


72.8

%


70.0

%


70.5

%


66.7

%



FHA/VA/USDA


23.0

%


22.6

%


24.0

%


23.0

%


21.4

%



Jumbo


7.1

%


4.6

%


6.0

%


6.5

%


11.9

%














Average loans outstanding(1)


$

592,537



$

634,511



$

635,529



$

598,403



$

495,209















(1) Includes held-for-sale



(2) Tennessee added in Q1 2017





























FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

THIRD PARTY MORTGAGE LOAN SERVICING

(UNAUDITED)


















As of or for the Quarter Ended

($ in thousands)


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016


March 31,
 2016

Loans serviced for others (UPB)


$

8,067,426



$

7,787,470



$

7,489,954



$

7,200,540



$

6,894,083


Average loans serviced for others (UPB)


$

8,013,761



$

7,625,384



$

7,337,291



$

7,022,718



$

6,781,135













MSR book value, net of amortization


$

98,550



$

95,282



$

90,982



$

87,652



$

84,111


MSR impairment


(7,163)



(9,152)



(22,295)



(22,753)



(14,184)


MSR net carrying value


$

91,387



$

86,130



$

68,687



$

64,899



$

69,927


MSR carrying value as a % of period end UPB


1.13

%


1.11

%


0.92

%


0.90

%


1.01

%














Delinquency % loans serviced for others


0.53

%


0.69

%


0.76

%


0.55

%


0.54

%














MSR revenue multiple(1)


4.25



4.14



3.44



3.42



3.83
















(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

 

 


FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)



For the Quarter Ended


March 31, 2017


March 31, 2016


Average


Income/


Yield/


Average


Income/


Yield/

($ in thousands)

Balance


Expense


Rate


Balance


Expense


Rate

Assets












Interest-earning assets:












Loans, net of unearned income (1)

$

3,718,260



$

36,130



3.94

%


$

3,370,645



$

32,976



3.93

%

Investment securities (1)

171,853



1,279



3.02

%


210,428



1,337



2.56

%

Other earning assets

192,431



351



0.74

%


70,562



67



0.38

%

Total interest-earning assets

4,082,544



37,760



3.75

%


3,651,635



34,380



3.79

%

Noninterest-earning assets:












Cash and due from banks

38,578







28,530






Allowance for loan losses

(29,788)







(27,052)






Premises and equipment, net

87,792







82,559






Other real estate

14,147







19,894






Other assets

216,219







187,117






Total noninterest-earning assets

326,948







291,048






Total assets

$

4,409,492







$

3,942,683






Liabilities and shareholders' equity












Interest-bearing liabilities:












Demand deposits

$

1,244,955



$

944



0.31

%


$

1,051,221



$

694



0.27

%

Savings deposits

387,007



344



0.36

%


358,481



304



0.34

%

Time deposits

1,050,897



2,161



0.83

%


1,015,996



2,267



0.90

%

Total interest-bearing deposits

2,682,859



3,449



0.52

%


2,425,698



3,265



0.54

%

Other short-term borrowings

245,262



392



0.65

%


251,359



294



0.47

%

Subordinated debt

120,472



1,567



5.28

%


120,337



1,439



4.81

%

Total interest-bearing liabilities

3,048,593



5,408



0.72

%


2,797,394



4,998



0.72

%

Noninterest-bearing liabilities and shareholders' equity:












Demand deposits

961,188







786,993






Other liabilities

37,390







49,344






Shareholders' equity

362,321







308,952






Total noninterest-bearing liabilities and shareholders' equity

1,360,899







1,145,289






Total liabilities and shareholders' equity

$

4,409,492







$

3,942,683






Net interest income/spread



$

32,352



3.03

%




$

29,382



3.07

%

Net interest margin





3.21

%






3.24

%


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


 

 

Contacts:

Martha Fleming, Steve Brolly


Fidelity Southern Corporation (404) 240-1504

 

SOURCE Fidelity Southern Corporation


Source: Fidelity Southern Corporation