FIDELITY SOUTHERN CORPORATION 
By ATLANTA, Jan. 17, 2013 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ:LION), holding company for Fidelity Bank (the "Bank"), reported net income of $25.3 million for the year ended 2012 compared to $11.4 million for the year ended 2011. For the quarter ended December 31, 2012, net income was $5.4 million compared to $8.2 million for the third quarter of 2012 and $3.8 million for the fourth quarter of 2011. After accounting for the preferred dividend, basic and diluted earnings per share for the year ended 2012 were $1.51 and $1.34, respectively, which compared to basic and diluted earnings per share of $0.62 and $0.56, respectively, for the year ended 2011. Basic and diluted earnings per share for the fourth quarter of 2012 were $0.31 and $0.28, respectively, compared to $0.50 and $0.44, respectively, for the third quarter of 2012 and $0.21 and $0.20, respectively, for the fourth quarter of 2011.
Fidelity's Chairman, Jim Miller, said, "2012 was a record year with improvement in many areas. We experienced significant organic and M&A growth, and strong fee income in all lines of business. We also controlled expenses as a result of consolidations and the integration of our acquired banks. The year 2013 offers continued opportunities to grow, operate more efficiently, and improve our credit costs as the economy improves."
For the Quarter Ended
---------------------
(in thousands) 12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
-------- ------- ------- ------- --------
Net income $5,440 $8,167 $6,404 $5,316 $3,832
Income tax expense 3,088 4,816 3,511 2,894 1,979
Provision for loan losses 5,243 3,477 950 3,750 5,300
Write-down of ORE 1,152 1,452 1,138 947 1,442
Other cost of ORE operations 1,358 1,376 564 789 887
----- ----- --- ---
Pre-tax, pre-credit related earnings 16,281 19,288 12,567 13,696 13,440
Less security gains - (4) - (303) (237)
Less acquisition gain - (4,012) - (206) (1,527)
Less accretion of FDIC indemnification
asset (150) (285) (96) (171) -
---- ----
Core operating earnings (1) $16,131 $14,987 $12,471 $13,016 $11,676
======= ======= ======= ======= =======
(1)The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove the effect of income taxes, provision for loan losses, cost of operation of ORE, security gains, acquisition gain and
indemnification asset accretion because we believe that helps show a view of more normalized net revenues. The measure allows better comparability with prior periods, as well as with peers in the industry who also provide a similar
presentation.
ASSET QUALITY
The majority of loans and other real estate acquired in the FDIC-assisted transactions are covered under 80% loss sharing agreements with the FDIC, which are classified as covered loans. Covered loans have the protection against losses reimbursable by the FDIC whereas non-covered loans do not have that same protection.
The following table provides a comparison of the activity affecting the allowance for loan loss:
($ in millions) Q4 2012 Q3 2012 Q4 2011 YTD 2012 YTD 2011
------- ------- ------- -------- --------
Net charge-offs $3.7 $1.2 $6.7 $10.3 $20.5
Net charge-off ratio 0.81% 0.27% 1.54% 0.60% 1.38%
Provision for loan
losses - Non-Covered
Loans $4.6 $2.5 $5.3 $11.9 $20.3
Net impairment
provision -Covered
Loans 0.6 1.0 - 1.5 -
---
Total provision expense $5.2 $3.5 $5.3 $13.4 $20.3
==== ==== ==== ===== =====
The following table provides a summary of the net provision expense for the quarter ended December 31, 2012:
($ in millions) Covered Non-Covered Total
Loans Loans
----- -----
Provision $1.6 $4.6 $6.2
Benefit
attributable to
FDIC (1.0) - (1.0)
Net provision
expense $0.6 $4.6 $5.2
==== ==== ====
The increase in provision expense for the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from provision needed to cover reduced appraisal values on certain collateral dependent loans during the period. During the fourth quarter of 2012, the Bank recorded a net impairment provision of $577,000 to reflect the continued decrease in expected cash flows of covered loans.
Net charge-offs decreased $10.2 million for the year ended 2012 to $10.3 million compared to $20.5 million for the same period of 2011. For the year ended 2012, the ratio of net-charge offs to average loans outstanding was 0.60% compared to 1.38% for the same period of 2011. Non-covered provision expense decreased $8.4 million for the year ended 2012 to $11.9 million compared to $20.3 million for the same period of 2011 primarily as a result of decreased charge-offs.
The allowance for loan losses at December 31, 2012 was $34.0 million, or 2.01% of total loans, compared to an allowance of $31.5 million, or 1.91% of total loans, at September 30, 2012, and $28.0 million, or 1.81% of total loans, at December 31, 2011. The increase is primarily the result of the acquired covered loans.
The following table presents certain credit quality metrics of the Bank's loan portfolio, inclusive and exclusive of covered loans. Nonperforming assets include nonaccrual loans, net repossessions and other real estate ("ORE"). Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and other real estate.
December 31, 2012 September 30, 2012 December 31, 2011
----------------- ------------------ -----------------
($ in millions) Including Excluding Including Excluding Including Excluding
Covered Loans Covered Loans Covered Loans Covered Loans Covered Loans Covered Loans
-------------- -------------- -------------- -------------- -------------- --------------
Nonperforming loans $83.7 $57.7 $90.1 $61.9 $66.8 $60.4
Classified loans 114.9 108.9 121.6 113.5 119.6 112.2
Allowance for loan
losses as a
percentage of total
loans 1.92% 2.01% 1.78% 1.91% 1.81% 1.72%
Classified items ratio 44.17% 41.87% 48.31% 45.09% 52.43% 49.45%
Nonperforming assets
ratio 6.88% 4.74% 7.62% 5.12% 5.28% 5.96%
ORE, net of reserves, decreased $5.4 million to $39.8 million at December 31, 2012, compared to $45.2 million at September 30, 2012. During the fourth quarter of 2012, $11.1 million of ORE assets were sold while $6.1 million were added to ORE. Excluding covered assets, ORE sales were $4.6 million and additions were $4.2 million for the quarter.
CAPITAL
The following table details the Company's and Bank's capital position at December 31, 2012, September 30, 2012 and December 31, 2011:
Fidelity Southern Corporation Fidelity Bank
----------------------------- -------------
December 31, September 30, December 31, December 31, September 30, December 31,
2012 2012 2011 2012 2012 2011
---- ---- ---- ---- ---- ----
Total risk-based capital ratio 13.23% 13.41% 13.70% 12.46% 12.62% 12.73%
Tier 1 risk-based capital ratio 11.86% 11.94% 11.85% 10.73% 10.87% 10.93%
Leverage capital ratio 10.18% 9.89% 9.83% 9.22% 9.02% 9.08%
DEPOSITS
Total deposits of $2.1 billion at December 31, 2012 have increased from $1.9 billion as of December 31, 2011, due to the acquisition of Security Exchange Bank in the second quarter of 2012.
December 31, September 30, June 30, March 31, December 31,
2012 2012 2012 2012 2011
---- ---- ---- ---- ----
($ in millions) $ % $ % $ % $ % $ %
--- --- --- --- --- --- --- --- --- ---
Core deposits(1) $1,664.3 80.5 $1,595.4 79.6 $1,634.5 82.2 $1,546.0 82.7 $1,523.1 81.4
Time Deposits > $100,000 346.7 16.8 348.9 17.4 343.6 17.3 313.2 16.8 329.2 17.6
Brokered deposits 56.9 2.7 59.3 3.0 9.2 0.5 9.2 0.5 19.2 1.0
---- --- ---- --- --- --- --- --- ---- ---
Total deposits $2,068.0 100.0 $2,003.6 100.0 $1,987.3 100.0 $1,868.4 100.0 $1,871.5 100.0
======== ===== ======== ===== ======== ===== ======== ===== ======== =====
Quarterly rate on
deposits 0.54% 0.55% 0.49% 0.66% 0.76%
(1) Core deposits are transactional, savings, and time deposits under $100,000.
NET INTEREST MARGIN
Net interest margin decreased 9 basis points to 3.63% in the fourth quarter of 2012 compared to 3.72% in the fourth quarter of 2011 and decreased 11 basis points from 3.74% in the third quarter of 2012. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.56% for the fourth quarter of 2012 compared to 3.62% for the third quarter of 2012. The decrease in net interest margin from the third quarter 2012 was the result of higher yielding assets running off as replacement assets were originated in a lower interest rate environment. Offsetting the lower yields on assets was the high volume of loan originations which resulted in an increase in net interest income for the fourth quarter of 2012 of $1.2 million, or 6.1%, when compared to the fourth quarter of 2011. Net interest income decreased $452,000, or 2.2%, when compared to the third quarter of 2012.
Net interest margin increased 9 basis points to 3.77% for the year ended December 31, 2012 compared to 3.68% for the same period in 2011. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.60% for the year ended December 31, 2012 and 3.68% for the same period in 2011. Net interest income for the year ended December 31, 2012 increased $9.6 million, or 13.5%, to $80.5 million compared to $70.9 million for the same period in 2011.
INTEREST INCOME
Total interest income for the fourth quarter of 2012 increased $62,000, or 0.3%, to $24.3 million compared to $24.2 million for the fourth quarter of 2011. Average interest-earning assets for the fourth quarter of 2012 increased $181.2 million, or 8.8%, somewhat offset by a 36 basis point decrease in the yield on average interest-earning assets due primarily to the Bank offering competitive rates on loans. In a linked-quarter comparison, interest income decreased $670,000 as the yield on average interest-earning assets decreased 16 basis points.
For the year ended December 31, 2012 total interest income increased $3.9 million, or 4.1%, to $97.6 million compared to $93.7 million for the same period in 2011. Average interest-earning assets for the year ended December 31, 2012 increased $214.7 million, or 11.1%, and was somewhat offset by a 31 basis point decrease in the yield on average interest-earning assets as mentioned above. The FDIC-assisted acquisitions of Decatur First Bank and Security Exchange Bank, as previously announced, were accretive to the fourth quarter of 2012 interest income on an after-tax basis of $53,000, or a de minimis impact to diluted earnings per share. On a year-to-date basis, the acquisitions were accretive to interest income on an after-tax basis of $1.3 million, or $0.08 to diluted earnings per share.
INTEREST EXPENSE
Interest expense for the fourth quarter of 2012 decreased $1.1 million, or 22.3%, compared to the same period in 2011 due to a 30 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $118.5 million, or 6.8%. The Bank's shift in deposit mix toward noninterest-bearing accounts, which made up 18.5% of total deposits at December 31, 2012 compared to 14.4% at December 31, 2011, contributed to the reduction in the cost of funds. On a linked-quarter basis, interest expense decreased $219,000, or 5.1%.
For the year ended December 31, 2012 interest expense decreased $5.7 million, or 24.9%, to $17.1 million compared to $22.8 million for the same period in 2011. The decrease in interest expense was attributable to a 43 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $148.0 million, or 8.9%.
NONINTEREST INCOME
On a year over year basis, noninterest income increased $10.5 million, or 67.0%, to $26.2 million for the quarter ended December 31, 2012, compared to $15.7 million in the fourth quarter of 2011. The increase in noninterest income was the result of a $10.6 million, or 132.2%, increase in mortgage banking activities over the respective periods. Income from mortgage banking activities increased due to a 143.6% increase in the December 31, 2012 pipeline to over $514 million compared to the same period a year ago. Total funded loan volume for the quarter of $768.4 million represented a 71.5% increase over the year ago quarter. Mortgage banking revenues for the fourth quarter 2012 were positively impacted due to recoveries of impaired servicing rights of $700,000, a net increase of $2.8 million compared to the third quarter of 2012.
For the year ended December 31, 2012 noninterest income increased $36.5 million, or 71.0%, to $88.0 million compared to $51.4 million for same period in 2011. The increase is largely attributable to the increase in mortgage banking activities as discussed above. SBA loans decreased $3.5 million from 2011 to 2012 as result of a decrease in the gains on sale of SBA loans and servicing rights. Offsetting the decrease in SBA is the $4 million gain on acquisition for Security Exchange Bank, which was recorded in the third quarter of 2012.
The FDIC indemnification asset is originally recorded based on a discounted amount expected to be received from the FDIC for their share of losses on covered loans. The original difference between the full amount and the discounted amount is expected to be recorded in noninterest income over the life of the contract with the FDIC. For the year ended 2012, indemnification income was $702,000. There was no indemnification income for the same period in 2011.
NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2012 increased $9.0 million, or 38.1%, to $32.7 million compared to $23.6 million for the same period in 2011. The increase was driven by a $7.5 million increase in salaries and employee benefits expense due to higher commission expense related to the increased mortgage banking volume, expansion of our mortgage banking footprint, as well as increased number of employees due to organic growth and acquisitions. On a linked-quarter basis, noninterest expense increased $1.3 million, or 4.2%. The increase was primarily due to a $2.3 million increase in salaries and employee benefits.
For the year ended December 31, 2012 noninterest expense increased $30.0 million, or 35.1%, to $115.4 million compared to $85.4 million for the same period in 2011. The increase is largely attributable to an increase of $22.1 million in salaries and employee benefits, professional services related to acquisition and internet services of $2.6 million and other expenses of $2.7 million.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 30 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided through employees located in eleven Southern states. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2011 Annual Report filed on Form 10-K with the Securities and Exchange Commission.
FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Three Months Ended
------------------
($ in thousands, except per share and stock December 31, September 30, June 30, March 31, December 31, Year Ended December 31,
performance data)
2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
RESULTS OF OPERATIONS
Net Interest Income $20,239 $20,690 $19,900 $19,655 $19,079 $80,484 $70,851
Provision for Loan Losses 5,243 3,477 950 3,750 5,300 13,420 20,325
Non-Interest Income 26,186 27,094 17,034 17,655 15,681 87,969 51,439
Non-Interest Expense 32,654 31,324 26,069 25,350 23,649 115,397 85,422
Income Tax Expense 3,088 4,816 3,511 2,894 1,979 14,309 5,145
Net Income 5,440 8,167 6,404 5,316 3,832 25,327 11,398
Preferred Stock Dividends (823) (823) (823) (823) (824) (3,292) (3,293)
Net Income Available to Common Shareholders 4,617 7,344 5,581 4,493 3,008 22,035 8,105
PERFORMANCE
Earnings Per Share - Basic (1) $0.31 $0.50 $0.38 $0.31 $0.21 $1.51 $0.62
Earnings Per Share - Diluted (1) $0.28 $0.44 $0.34 $0.28 $0.20 $1.34 $0.56
Return on Average Assets 0.88% 1.33% 1.14% 0.96% 0.69% 1.08% 0.55%
Return on Average Equity 11.36% 17.93% 14.84% 12.67% 9.34% 14.19% 7.43%
NET INTEREST MARGIN
Interest Earning Assets 4.35% 4.51% 4.66% 4.76% 4.71% 4.56% 4.87%
Cost of Funds 0.86% 0.90% 0.96% 1.06% 1.17% 0.94% 1.37%
Net Interest Spread 3.49% 3.61% 3.70% 3.70% 3.54% 3.62% 3.50%
Net Interest Margin 3.63% 3.74% 3.86% 3.86% 3.72% 3.77% 3.68%
CAPITAL
Cash Dividends Per Share $ - $ - $ - $ - $0.01 $ - $0.02
Dividend Payout Ratio - % - % - % - % 4.61% - % 3.22%
Tier 1 Risk-Based Capital 11.86% 11.94% 11.68% 11.91% 11.85% 11.86% 11.85%
Total Risk-Based Capital 13.23% 13.41% 13.29% 13.66% 13.70% 13.23% 13.70%
Leverage Ratio 10.18% 9.89% 10.19% 10.04% 9.83% 10.18% 9.83%
AVERAGE BALANCE SHEET
Loans, Net of Unearned $2,044,975 $2,013,423 $1,880,933 $1,785,382 $1,729,512 $1,931,714 $1,611,825
Investment Securities 174,810 188,028 198,754 239,656 273,913 200,208 228,822
Earning Assets 2,230,918 2,211,353 2,088,221 2,060,788 2,049,763 2,148,428 1,933,771
Total Assets 2,454,244 2,442,366 2,265,875 2,215,944 2,194,861 2,345,176 2,063,169
Deposits 1,653,026 1,626,290 1,559,516 1,577,682 1,576,760 1,604,323 1,499,451
Borrowings 211,385 256,616 168,000 168,639 169,145 207,035 163,879
Shareholders' Equity 190,426 181,211 173,520 168,751 162,727 178,517 153,312
STOCK PERFORMANCE
Market Price:
Closing (1) $9.55 $9.37 $8.41 $6.46 $5.73 $9.55 $5.73
High Close (1) $10.33 $9.84 $8.85 $6.70 $6.55 $10.33 $8.85
Low Close (1) $8.56 $8.12 $6.38 $5.56 $5.42 $5.56 $5.75
Daily Average Trading Volume 16,418 20,882 42,547 8,098 4,812 21,683 6,796
Book Value Per Common Share (1) $9.85 $9.60 $9.07 $8.63 $8.59 $9.85 $8.59
Price to Book Value 0.97 0.98 0.93 0.75 0.67 0.97 0.67
Tangible Book Value Per Common Share (1) 9.68 9.42 8.90 8.62 8.43 9.68 8.43
Price to Tangible Book Value 0.99 0.99 0.94 0.75 0.68 0.99 0.68
((1)) Adjusted for stock dividends and retroactive application on shares outstanding.
FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31, Year Ended December 31,
-----------------------
($ in thousands) 2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
ASSET QUALITY
Total Non-Performing Loans $83,681 $90,145 $90,908 $74,816 $66,801 $83,681 $66,801
Total Non-Performing Assets 125,062 136,439 134,627 101,221 98,634 125,062 98,634
Loans 90 Days Past Due and Still Accruing - - 111 290 116 - 116
Including Covered Loans:
Non-Performing Loans as a % of Loans 4.71% 5.17% 5.20% 4.50% 4.11% 4.71% 4.11%
Non-Performing assets as a % of Loans Plus
ORE 6.88% 7.62% 7.52% 6.01% 5.96% 6.88% 5.96%
ALL to Non-Performing Loans 40.61% 34.49% 29.96% 39.29% 41.85% 40.61% 41.85%
Net Charge-Offs During the Period to
Average Loans 0.81% 0.27% 0.70% 0.58% 1.54% 0.60% 1.38%
ALL as a % of Loans, at End of Period 1.92% 1.78% 1.55% 1.76% 1.72% 1.92% 1.72%
Excluding Covered Loans:
Non-Performing Loans as a % of Loans 3.75% 3.75% 3.81% 3.97% 3.91% 3.75% 3.91%
Non-Performing assets as a % of Loans Plus
ORE 4.74% 5.12% 5.29% 5.12% 5.28% 4.74% 5.28%
ALL to Non-Performing Loans 50.89% 50.89% 43.70% 46.57% 46.19% 50.89% 46.19%
Net Charge-Offs During the Period to
Average Loans 0.44% 0.22% 0.74% 0.59% 1.76% 0.51% 1.45%
ALL as a % of Loans, at End of Period 2.01% 1.91% 1.65% 1.84% 1.81% 2.01% 1.81%
OTHER INFORMATION
Non-Interest Income to Revenues 56.40% 56.70% 46.12% 47.32% 45.11% 52.22% 42.06%
End of Period Shares Outstanding (1) 14,780,175 14,626.323 14,557.157 14,505.212 14,068,747 14,780,175 14,068,747
Weighted Average Shares Outstanding -Basic
(1) 14,711,899 14,579,100 14,530,415 14,407,568 14,011,146 14,557,728 13,042,429
Weighted Average Shares Outstanding -
Diluted (1) 16,686,123 16,510,647 16,309.298 15,870.668 15,397,538 16,412,877 14,587,300
Full-Time Equivalent Employees 774.2 752.6 701.9 656.5 626.4 774.2 626.4
((1)) Adjusted for stock dividends and retroactive application on shares outstanding.
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31, Year Ended December 31,
-----------------------
($ in thousands, except per share data) 2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
INTEREST INCOME
Loans, including fees $23,121 $23,724 $22,902 $22,738 $22,396 $92,485 $86,698
Investment securities 1,141 1,208 1,189 1,506 1,783 5,044 6,777
Federal funds sold and bank deposits 5 6 4 18 26 33 225
--- --- --- --- --- --- ---
Total interest income 24,267 24,938 24,095 24,262 24,205 97,562 93,700
INTEREST EXPENSE
Deposits 2,722 2,686 2,658 3,007 3,519 11,073 16,309
Short-term borrowings 425 454 253 174 173 1,306 685
Subordinated debt 881 1,090 1,132 1,139 1,129 4,242 4,494
Other long-term debt - 18 152 287 305 457 1,361
Total interest expense 4,028 4,248 4,195 4,607 5,126 17,078 22,849
----- ----- ----- ----- ----- ------ ------
Net interest income 20,239 20,690 19,900 19,655 19,079 80,484 70,851
Provision for loan losses 5,243 3,477 950 3,750 5,300 13,420 20,325
----- ----- --- ----- ----- ------ ------
Net interest income after provision for loan losses 14,996 17,213 18,950 15,905 13,779 67,064 50,526
NONINTEREST INCOME
Service charges on deposit accounts 1,122 1,259 1,180 1,133 1,148 4,694 4,143
Other fees and charges 883 841 852 784 684 3,360 2,613
Mortgage banking activities 18,653 14,755 10,840 12,084 8,034 56,332 24,663
Indirect lending activities 1,477 2,164 1,610 1,163 1,581 6,414 5,891
SBA lending activities 715 2,107 1,269 853 1,871 4,944 8,463
Bank owned life insurance 323 330 332 322 99 1,307 1,315
Securities gains - 4 - 303 237 307 1,078
Other 3,013 5,634 951 1,013 2,027 10,611 3,273
----- ----- --- ----- ----- ------ -----
Total noninterest income 26,186 27,094 17,034 17,655 15,681 87,969 51,439
NONINTEREST EXPENSE
Salaries and employee benefits 20,886 18,589 15,325 14,849 13,410 69,649 47,525
Furniture and equipment 1,046 1,032 994 977 795 4,049 3,075
Net occupancy 1,354 1,360 1,280 1,210 1,115 5,204 4,504
Communication 647 739 641 619 522 2,646 2,158
Professional and other services 2,043 1,992 2,081 2,141 1,571 8,257 5,690
Cost of operation of other real estate 2,510 2,828 1,702 1,737 2,329 8,777 7,896
FDIC insurance premiums 493 479 474 471 445 1,917 2,581
Other 3,675 4,305 3,572 3,346 3,462 14,898 11,993
Total noninterest expense 32,654 31,324 26,069 25,350 23,649 115,397 85,422
------ ------ ------ ------ ------ ------- ------
Income before income tax expense 8,528 12,983 9,915 8,210 5,811 39,636 16,543
Income tax expense 3,088 4,816 3,511 2,894 1,979 14,309 5,145
----- ----- ----- ----- ----- ------ -----
NET INCOME 5,440 8,167 6,404 5,316 3,832 25,327 11,398
Preferred stock dividends and discount accretion (823) (823) (823) (823) (824) (3,292) (3,293)
Net income available to common equity $4,617 $7,344 $5,581 $4,493 $3,008 $22,035 $8,105
====== ====== ====== ====== ====== ======= ======
EARNINGS PER SHARE: (1)
Basic earnings per share $0.31 $0.50 $0.38 $0.31 $0.21 $1.51 $0.62
===== ===== ===== ===== ===== ===== =====
Diluted earnings per share $0.28 $0.44 $0.34 $0.28 $0.20 $1.34 $0.56
===== ===== ===== ===== ===== ===== =====
Weighted average common shares outstanding-basic 14,711,899 14,579,100 14,530,415 14,407,568 14,011,146 14,557,728 13,042,429
========== ========== ========== ========== ========== ========== ==========
Weighted average common shares outstanding-diluted 16,686,123 16,510,647 16,309,298 15,870,668 15,397,538 16,412,877 14,587,300
========== ========== ========== ========== ========== ========== ==========
((1) )Adjusted for stock dividends and retroactive application on shares outstanding
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($ in thousands, except share data) December 31, September 30, June 30, March 31, December 31,
2012 2012 2012 2012 2011
---- ---- ---- ---- ----
ASSETS
Cash and cash equivalents $49,020 $47,366 $38,333 $38,604 $57,284
Investment securities available-for-sale 154,367 165,598 193,251 183,611 261,419
Investment securities held-to-maturity 6,162 6,842 7,471 8,185 8,876
Investment in FHLB stock 7,330 9,760 8,185 7,623 7,582
Loans held-for-sale 304,094 259,659 214,335 175,736 133,849
Loans 1,777,031 1,745,185 1,746,204 1,657,972 1,623,871
Allowance for loan losses (33,982) (31,476) (27,205) (29,282) (27,956)
------- ------- ------- ------- -------
Loans, net of allowance for loan losses 1,743,049 1,713,709 1,718,999 1,628,690 1,595,915
FDIC indemnification asset 20,074 38,225 44,667 13,266 12,279
Premises and equipment, net 37,669 36,519 35,949 30,352 28,909
Other real estate, net 39,756 45,175 42,727 25,729 30,526
Accrued interest receivable 7,995 8,384 8,432 8,238 9,015
Bank owned life insurance 32,693 32,397 32,091 31,786 31,490
Deferred tax asset, net 19,442 16,520 18,299 16,398 16,224
Other assets 55,640 62,640 53,016 47,008 41,427
Total Assets $2,477,291 $2,442,794 $2,415,755 $2,215,226 $2,234,795
========== ========== ========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing demand deposits $381,846 $354,029 $345,063 $290,625 $269,590
Interest-bearing deposits:
Demand and money market 638,582 604,124 618,269 557,652 526,962
Savings 329,223 310,835 338,983 377,692 389,246
Time deposits, $100,000 and over 346,743 348,871 343,570 313,209 329,164
Other time deposits 314,675 326,471 332,185 319,995 337,350
Brokered deposits 56,942 59,303 9,204 9,204 19,204
------ ------ ----- ----- ------
Total deposits 2,068,011 2,003,633 1,987,274 1,868,377 1,871,516
Short-term borrowings 88,500 99,500 82,500 42,500 34,500
Federal funds purchased 37,160 50,889 48,718 13,555 18,581
Subordinated debt 67,527 67,527 67,527 67,527 67,527
Other long-term debt - - 25,000 27,500 52,500
Accrued interest payable 2,093 1,467 2,231 1,667 2,535
Other liabilities 21,112 32,277 23,596 22,178 20,356
------ ------ ------ ------ ------
Total Liabilities 2,284,403 2,255,293 2,236,846 2,043,304 2,067,515
SHAREHOLDERS' EQUITY
Preferred stock 47,344 47,123 46,902 46,682 46,461
Common stock 82,499 79,855 77,055 74,560 74,219
Accumulated other comprehensive gain, net of tax 3,545 4,242 3,882 3,301 3,710
Retained earnings 59,500 56,281 51,070 47,379 42,890
------ ------ ------ ------ ------
Total shareholders' equity 192,888 187,501 178,909 171,922 167,280
Total Liabilities and Shareholders' Equity $2,477,291 $2,442,794 $2,415,755 $2,215,226 $2,234,795
========== ========== ========== ========== ==========
Book Value Per Common Share (1) $9.85 $9.60 $9.07 $8.63 $8.59
===== ===== ===== ===== =====
Shares of Common Stock Outstanding (1) 14,780,175 14,626,323 14,557,157 14,505,212 14,068,747
========== ========== ========== ========== ==========
((1) )Adjusted for stock dividends and retroactive application on shares outstanding
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
December 31, September 30, June 30, March 31, December 31,
($ in thousands)
2012 2012 2012 2012 2011
---- ---- ---- ---- ----
Commercial, Financial and Agricultural $119,993 $102,494 $101,182 $105,920 $106,552
Tax-Exempt Commercial 4,698 4,787 4,816 4,874 4,944
Real Estate Mortgage - Commercial 468,477 507,408 491,894 393,399 409,932
------- ------- ------- ------- -------
Total Commercial and SBA Loans 593,168 614,689 597,892 504,193 521,428
Real Estate - Construction 106,170 102,758 109,501 121,830 122,795
Real-Estate - Mortgage 146,818 114,842 112,832 135,039 143,717
Consumer Installment 930,875 912,896 925,978 896,910 835,931
------- ------- ------- ------- -------
Loans 1,777,031 1,745,185 1,746,203 1,657,972 1,623,871
Loans Held-For-Sale:
Originated Residential Mortgage 253,108 212,714 164,144 130,075 90,907
SBA 20,986 16,945 20,191 15,661 12,942
Indirect Auto 30,000 30,000 30,000 30,000 30,000
------ ------ ------ ------ ------
Total Loans Held-For-Sale 304,094 259,659 214,335 175,736 133,849
------- ------- ------- ------- -------
Total Loans $2,081,125 $2,004,844 $1,960,538 $1,833,708 $1,757,720
========== ========== ========== ========== ==========
Non-Covered Loans $1,699,892 $1,648,678 $1,632,014 $1,584,822 $1,546,391
Covered Loans 77,139 96,507 114,189 73,150 77,480
Loans Held-For-Sale 304,094 259,659 214,335 175,736 133,849
------- ------- ------- ------- -------
Total Loans $2,081,125 $2,004,844 $1,960,538 $1,833,708 $1,757,720
========== ========== ========== ========== ==========
DEPOSITS, BY CATEGORY
(UNAUDITED)
December 31, September 30, June 30, March 31, December 31,
($ in thousands) 2012 2012 2012 2012 2011
---- ---- ---- ---- ----
Noninterest-Bearing Demand $381,846 $354,029 $345,062 $290,625 $269,590
Interest-Bearing Deposits:
Interest-Bearing Demand / Money Market 638,582 604,124 618,269 557,652 526,962
Savings 329,223 310,835 338,984 377,692 389,246
Time Deposits $100,000 and Over 346,743 348,871 343,570 313,209 329,164
Other Time Deposits 314,675 326,471 332,185 319,995 337,350
Brokered Deposits 56,942 59,303 9,204 9,204 19,204
------
Total Deposits $2,068,011 $2,003,633 $1,987,274 $1,868,377 $1,871,516
========== ========== ========== ========== ==========
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31, Year Ended December 31,
-----------------------
($ in thousands) 2012 2012 2012 2012 2011 2012 2011
---- ---- ---- ---- ---- ---- ----
Balance at Beginning of
Period $31,476 $27,205 $29,282 $27,956 $29,381 $27,956 $28,082
Net Charge-Offs
(Recoveries):
Commercial, Financial, and
Agricultural 421 41 613 15 417 1,090 675
SBA 271 103 84 (3) 694 455 1,329
Real Estate Construction (78) (31) 1,607 1,300 3,413 2,798 12,898
Real Estate Mortgage 30 23 228 - 72 281 487
Consumer Installment 3,026 1,085 495 1,112 2,129 5,718 5,062
----- ----- --- ----- ----- ----- -----
Total Net Charge-Offs 3,670 1,221 3,027 2,424 6,725 10,342 20,451
Provision for Loan Losses
- Non-Covered Loans 4,666 2,500 950 3,750 5,300 11,866 20,325
Net Impairment Provision -
Covered Loans 577 977 - - - 1,554 -
FDIC Indemnification Asset
-Covered Loans 933 2,015 - - - 2,948 -
Balance at End of Period $33,982 $31,476 $27,205 $29,282 $27,956 $33,982 $27,956
======= ======= ======= ======= ======= ======= =======
Ratio of Net Charge-Offs
during the Period to
Average Loans
Outstanding, Net 0.81% 0.27% 0.70% 0.58% 1.54% 0.60% 1.38%
Allowance for Loan Losses
as a Percentage of Loans 1.92% 1.78% 1.55% 1.76% 1.72% 1.92% 1.72%
Allowance for Loan Losses
as a Percentage of Loans
Excluding Covered Loans 2.01% 1.91% 1.65% 1.84% 1.81% 2.01% 1.81%
NONPERFORMING ASSETS
(UNAUDITED)
December 31, September 30, June 30, March 31, December 31,
($ in thousands) 2012 2012 2012 2012 2011
---- ---- ---- ---- ----
Non-Covered Nonperforming
Assets
Nonaccrual Loans $57,713 $61,854 $62,142 $62,582 $60,413
Repossessions 1,625 1,119 1,103 966 1,423
Other Real Estate 22,429 22,573 24,929 18,841 21,058
------ ------ ------ ------ ------
Total Non-Covered
Nonperforming Assets $81,767 $85,546 $88,174 $82,389 $82,894
======= ======= ======= ======= =======
*** Includes SBA Guaranteed
Amounts of Approximately $12,085 $8,742 $8,882 $8,040 $5,216
======= ====== ====== ====== ======
Non-Covered Loans Past Due
90 Days or More and Still
Accruing $ - $ - $111 $290 $116
Non-Covered Loans 30-89
Days Past Due $5,028 $7,077 $5,214 $20,024 $18,879
Ratio of Non-Covered Loans
Past Due 90 Days or More
and Still Accruing to Total
Non-Covered Loans - % - % 0.01% 0.02% 0.01%
Ratio of Non-Covered Loans
30-89 Days Past Due to
Total Non-Covered Loans 0.30% 0.43% 0.32% 1.26% 1.22%
Ratio of Non-Covered
Nonperforming Assets to
Total Non-Covered Loans,
ORE, and Repossessions 4.74% 5.12% 5.29% 5.12% 5.28%
Covered Nonperforming Assets
Nonaccrual Loans $25,968 $28,291 $28,655 $11,944 $6,272
Other Real Estate 17,327 22,602 17,798 6,888 9,468
Covered Nonperforming Assets $43,295 $50,893 $46,453 $18,832 15,740
======= ======= ======= ======= ======
Classified Assets
Classified Loans $114,857 $121,556 $122,280 $111,894 $119,569
ORE and Other Nonperforming
Assets 41,381 46,294 43,830 26,695 31,949
Total Classified Assets $156,238 $167,850 $166,110 $138,589 $151,518
======== ======== ======== ======== ========
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
YEAR TO DATE
------------
December 31, 2012 December 31, 2011
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income:
Taxable $1,926,904 $92,347 4.79% $1,606,783 $86,497 5.38%
Tax-exempt (1) 4,810 207 4.36% 5,042 308 6.14%
----- --- ----- ---
Total loans 1,931,714 92,554 4.79% 1,611,825 86,805 5.38%
Investment securities:
Taxable 181,489 4,255 2.34% 215,719 6,227 2.89%
Tax-exempt (2) 18,719 1,200 6.41% 13,103 829 6.33%
------ ----- ------ ---
Total investment securities 200,208 5,455 0.27% 228,822 7,056 3.09%
Interest-bearing deposits 15,583 33 0.21% 92,174 225 0.24%
Federal funds sold 923 - 0.06% 950 - 0.06%
--- --- --- ---
Total interest-earning assets 2,148,428 98,042 4.56% 1,933,771 94,086 4.87%
Noninterest-earning:
Cash and due from banks 24,862 23,769
Allowance for loan losses (28,699) (28,724)
Premises and equipment, net 33,982 22,253
Other real estate 37,172 24,754
Other assets 129,431 87,346
------- ------
Total assets $2,345,176 $2,063,169
========== ==========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $581,577 $1,610 0.28% $439,243 $2,334 0.53%
Savings deposits 342,806 1,169 0.34% 407,865 3,183 0.78%
Time deposits 679,940 8,294 1.22% 652,343 10,792 1.65%
------- ----- ------- ------
Total interest-bearing deposits 1,604,323 11,073 0.69% 1,499,451 16,309 1.09%
Federal funds purchased 29,003 228 0.79% 36 - 1.06%
Securities sold under agreements to
repurchase 13,007 28 0.22% 19,335 210 1.09%
Other short-term borrowings 78,769 1,050 1.33% 18,680 475 2.54%
Subordinated debt 67,527 4,242 6.28% 67,527 4,494 6.66%
Long-term debt 18,729 457 2.44% 58,301 1,361 2.33%
------ --- ------ -----
Total interest-bearing liabilities 1,811,358 17,078 0.94% 1,663,330 22,849 1.37%
Noninterest-bearing:
Demand deposits 329,150 219,377
Other liabilities 26,151 27,150
Shareholders' equity 178,517 153,312
------- -------
Total liabilities and shareholders'
equity $2,345,176 $2,063,169
========== ==========
Net interest income/spread $80,964 3.62% $71,237 3.50%
======= =======
Net interest margin 3.77% 3.68%
((1)) Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $69,500 and $106,500, respectively.
((2)) Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $410,300 and $280,000, respectively.
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
QUARTER ENDED
-------------
December 31, 2012 December 31, 2011
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income:
Taxable $2,040,253 $23,086 4.50% $1,724,546 $22,346 5.14%
Tax-exempt (1) 4,722 52 4.45% 4,966 77 6.14%
----- --- ----- ---
Total loans 2,044,975 23,138 4.50% 1,729,512 22,423 5.15%
Investment securities:
Taxable 156,489 946 2.42% 256,658 1,600 2.49%
Tax-exempt (2) 18,321 297 6.70% 17,255 277 6.43%
------ --- ------ ---
Total investment securities 174,810 1,243 2.85% 273,913 1,877 2.75%
Interest-bearing deposits 10,058 5 0.22% 45,162 26 0.23%
Federal funds sold 1,075 - 0.05% 1,176 - 0.07%
----- --- ----- ---
Total interest-earning assets 2,230,918 24,386 4.35% 2,049,763 24,326 4.71%
Noninterest-earning:
Cash and due from banks 29,818 20,330
Allowance for loan losses (31,519) (28,582)
Premises and equipment, net 37,030 27,261
Other real estate 44,363 34,417
Other assets 143,634 91,672
------- ------
Total assets $2,454,244 $2,194,861
========== ==========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $605,309 $425 0.28% $492,980 $481 0.39%
Savings deposits 317,336 353 0.44% 395,654 401 0.40%
Time deposits 730,381 1,944 1.06% 688,126 2,637 1.52%
------- ----- ------- -----
Total interest-bearing deposits 1,653,026 2,722 0.66% 1,576,760 3,519 0.89%
Federal funds purchased 40,864 77 0.75% 109 - 1.11%
Securities sold under agreements to
repurchase 13,809 7 0.22% 18,649 11 0.23%
Other short-term borrowings 89,185 341 1.52% 30,360 162 2.12%
Subordinated debt 67,527 881 5.19% 67,527 1,129 6.64%
Long-term debt - - - % 52,500 305 2.30%
--- --- ------ ---
Total interest-bearing liabilities 1,864,411 4,028 0.86% 1,745,905 5,126 1.16%
Noninterest-bearing:
Demand deposits 369,419 257,393
Other liabilities 29,988 28,836
Shareholders' equity 190,426 162,727
------- -------
Total liabilities and shareholders'
equity $2,454,244 $2,194,861
========== ==========
Net interest income/spread $20,358 3.49% $19,200 3.55%
======= =======
Net interest margin 3.63% 3.72%
((1) )Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $17,500 and $26,400, respectively.
((2)) Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $101,700 and $9,200, respectively.
Contacts: Martha Fleming, Steve Brolly
Fidelity Southern Corporation
(404) 240-1504
SOURCE Fidelity Southern Corporation
