FIDELITY SOUTHERN CORPORATION ATLANTA, Jan. 22, 2015 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the quarter and year ended December 31, 2014.
KEY RESULTS
-- Net income of $7.2 million, or $0.31, per diluted share for the quarter
and $30.0 million, or $1.28, per diluted share for the year
-- Total revenue of $51.3 million for the quarter and $197.0 million for
the year
-- Return on average assets of 0.98% for the quarter and 1.11% for the year
-- Tangible book value of $12.22 per share increased by $1.26, or 11.5%,
year over year
-- Loan portfolio grew by $179.5 million, or 8.7%, during the quarter and
$360.3 million, or 19.0%, year over year, to $2.3 billion
-- Loan servicing portfolio increased to $6.6 billion, or 28.5%, year over
year
-- Continued retail expansion in Florida with full integration of the $171
million third-quarter acquisition of deposits and retail branches and an
agreement to purchase an additional $38 million in deposits
Fidelity's Chairman, Jim Miller, said, "This is a quick report on where we are. The numbers are obviously quite good. We have concentrated this past year on consolidating our lines of business and positioning for increases in interest rates. Rates should finally move this year, which will be another challenge for the banking world. Despite being positioned to meet a substantial increase in commercial and industrial loan possibilities, we have continued to eschew speculative commercial property loans and have been faced with being underpriced and out-termed on quite a few loans. That wheel will turn. Our outsourced credit card lending is approaching $25 million in outstandings. Additionally, Trust Services booked $94 million in assets just since April 2014, with a backlog scheduled to be booked this quarter to take us over $100 million. The geographic footprint for mortgages, now that we are in North and South Carolina, and for Indirect, now that we are in Louisiana, is not planned for further expansion this year. SBA lending has strengthened. Single family residential lending continues strong, with our presence in Savannah, Macon, Orlando, and Tallahassee contributing. We look to add retail presence in Macon this year and will modestly grow in our existing footprint. Should an opportunity to do more with acquisitions present itself, that would be welcome. Though acquisitions are prepared for, they are not built in to our budget."
BALANCE SHEET
Total assets at December 31, 2014, grew to $3.1 billion, an increase of $223.6 million, or 7.8%, compared to September 30, 2014, and $521.1 million, or 20.3%, compared to December 31, 2013. These increases are primarily attributable to an increase in loan production, mainly in indirect and mortgage loans held for investment.
Cash and cash equivalents decreased $20.0 million, or 21.8%, compared to September 30, 2014, as cash received from the assumption of deposits from six branches in Florida was used to fund growth in loans held for investment of $179.5 million, or 8.7%, during the quarter. Other short-term borrowings increased $214.7 million, or 281.0%, compared to September 30, 2014, primarily to fund growth in loans held for sale of $44.5 million and loans held for investment of $179.5 million.
Loans
Total loans held for investment at December 31, 2014, grew to $2.3 billion, an increase of $179.5 million, or 8.7%, compared to $2.1 billion at September 30, 2014, and $360.3 million, or 19.0%, compared to $1.9 billion at December 31, 2013.
New product offerings within mortgage, new loan production offices, expansion into new markets, and an overall increase in auto sales over the prior year were the main drivers of the growth in indirect and mortgage loans. Indirect loans grew by $131.5 million and $244.0 million, or 12.1% and 25.0%, respectively, and mortgage loans increased by $43.9 million and $101.0 million, or 22.6% and 73.8%, respectively, during the quarter and year.
Construction loans increased by $15.2 million and $22.3 million, or 13.9% and 21.9%, respectively, compared to September 30, 2014, and December 31, 2013, as single family housing permits continued to grow in our market areas. Growth in commercial loans was offset by continued resolution of acquired loans.
The following table summarizes average loans by category for the periods presented.
For the Three Months Ended For the Year Ended
-------------------------- ------------------
($ in thousands) December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
---- ---- ---- ---- ----
Commercial $519,932 $529,270 $520,470 $528,380 $512,283
SBA 152,672 150,432 142,697 148,457 142,344
Construction 115,146 110,413 104,220 108,805 100,131
Indirect
automobile 1,329,306 1,204,314 1,010,229 1,161,400 982,601
Installment 11,938 13,444 13,587 12,908 13,387
Residential
mortgage 300,652 286,407 194,557 247,424 285,624
Home equity lines
of credit 79,906 76,619 75,598 76,871 73,205
Total average
loans (incl.
HFS) $2,509,552 $2,370,899 $2,061,358 $2,284,245 $2,109,575
========== ========== ========== ========== ==========
Deposits
Total deposits at December 31, 2014, of $2.5 billion increased by $255.6 million, or 11.6%, compared to December 31, 2013. The year-over-year increase occurred primarily due to the assumption of deposits from six branches in Florida during September 2014.
Average core deposits, including noninterest-bearing demand deposits, grew by $69.8 million, or 4.3%, during the quarter and $225.6 million, or 15.6%, year over year due to core deposit growth from the continuing transaction account acquisition initiative, particularly in commercial accounts and assumption of deposits from six branches in Florida during September 2014. Noninterest-bearing demand deposits increased to 23% of total average deposits for the quarter compared to 21% for the same period last year.
Time deposits increased by $61.0 million, or 8.4%, during the quarter and $14.3 million, or 2.1%, year over year, excluding the $88.0 million in time deposits acquired during the third quarter of 2014.
The following table summarizes average deposit composition and average rate paid for the periods presented.
For the Three Months Ended
--------------------------
December 31, 2014 September 30, 2014 December 31, 2013
----------------- ------------------ -----------------
($ in millions) Average Rate Percent of Average Rate Percent of Average Rate Percent of
Amount Total Amount Total Amount Total
Deposits Deposits Deposits
Noninterest-
bearing demand
deposits $567.4 - % 23.5% $574.8 - % 25.3% $448.9 - % 20.9%
Interest-
bearing demand
deposits 783.9 0.25% 32.3% 712.1 0.24% 31.4% 693.0 0.29% 32.2%
Savings deposits 323.6 0.35% 13.4% 318.3 0.34% 14.1% 307.5 0.39% 14.3%
Time deposits 741.2 0.98% 30.8% 657.5 0.96% 29.2% 701.2 1.01% 32.6%
----- ----- -----
Total average
deposits $2,416.1 0.43% 100.0% $2,262.7 0.40% 100.0% $2,150.6 0.48% 100.0%
======== ===== ======== ===== ======== =====
For the Year Ended
------------------
December 31, 2014 December 31, 2013
----------------- -----------------
($ in millions) Average Rate Percent of Average Rate Percent of
Amount Total Amount Total
Deposits Deposits
-------- --------
Noninterest-
bearing demand
deposits $539.0 - % 23.8% $417.7 - % 19.9%
Interest-
bearing demand
deposits 722.4 0.26% 31.9% 648.7 0.28% 30.8%
Savings deposits 316.4 0.36% 14.0% 317.8 0.41% 15.1%
Time deposits 681.9 0.98% 30.3% 719.2 1.01% 34.2%
Total average
deposits $2,259.7 0.43% 100.0% $2,103.4 0.50% 100.0%
======== ===== ======== =====
INCOME STATEMENT
Net Interest Margin
The net interest margin was 3.47% and 3.62% for the quarter and year ended December 31, 2014, respectively, compared to 3.58% for each of the same periods in 2013. The decrease in the net interest margin for the quarter was primarily attributable to a decrease in the yield on total loans as new loans were originated at lower yields in 2014. The increase of 4 basis points in the net interest margin for the year was primarily attributable to a decrease in subordinated debt expense compared to the same period in 2013. See "Average Balance, Interest and Yields" below.
On a linked-quarter basis, the net interest margin decreased by 9 basis points compared to 3.56% for the prior quarter, primarily due to a decrease of 12 basis points in the yield on total loans.
Interest Income
Interest income was $26.6 million and $101.7 million for the quarter and year, an increase of $2.9 million and $4.1 million, or 12.0% and 4.2%, respectively, as compared to the same periods in 2013. The increase in interest income for the quarter was primarily due to a year-over-year increase in average loans of $448.2 million, primarily in the indirect and mortgage portfolios, partially offset by a decrease in the yield on loans of 34 and 20 basis points, respectively, as new loans, on average, were originated at lower yields in 2014.
On a linked-quarter basis, interest income increased slightly, primarily due to a quarter-over-quarter increase in average loans of $138.7 million.
Interest Expense
Interest expense was $3.0 million and $11.2 million for the quarter and year, a decrease of $99,000 and $2.7 million, or 3.4% and 19.6%, respectively, as compared to the same periods in 2013. The decrease for the quarter occurred primarily due to a reduction of 4 basis points in the rate paid on deposits, partially offset by an increase in average deposits. The annual decrease primarily resulted from a decrease of $1.6 million from the repayment of $21.5 million in subordinated debt in the third quarter of 2013. In addition, the rate paid on deposits decreased by 6 basis points from year to year.
On a linked-quarter basis, interest expense increased by $291,000, or 10.7%, as the average balance of interest-bearing liabilities increased by $129.4 million, primarily due to the deposit assumption closed in September 2014. In addition, the rate paid on interest-bearing liabilities increased slightly by 2 basis points.
Noninterest Income
Noninterest income was $24.7 million and $95.3 million for the quarter and year, an increase of $7.0 million and decrease of $1.6 million, or 39.2% and 1.6%, respectively, as compared to the same periods in 2013.
The $7.0 million increase in noninterest income for the quarter was primarily related to an increase in gains on the sale of indirect and mortgage loans. Higher gains on indirect loan sales drove $1.2 million of the increase in noninterest income from indirect lending activities of $1.8 million for the quarter. Indirect loan sales totaled $122.0 million for the quarter compared to sales of $88.2 million for the same period in the prior year. Noninterest income from mortgage banking activities increased by $4.7 million for the quarter as gains on mortgage loan sales were $3.5 million higher for the quarter. Mortgage loan servicing revenue increased by $864,000 to $3.5 million for the quarter as the servicing portfolio grew to $5.4 billion at December 31, 2014.
The $1.6 million net decrease in noninterest income for the year included a decrease of $10.8 million in noninterest income from mortgage banking activities, primarily due to lower mortgage loan sales. Mortgage loan sales were $1.8 billion for the year compared to $2.7 billion in 2013. This decrease was partially offset by an increase of $9.4 million in noninterest income from indirect lending activities, primarily due to an increase in the volume of indirect loan sales. Gains on indirect loan sales for the year totaled $13.4 million on sales of $679.9 million as compared to gains of $5.4 million on $392.2 million of sales in the prior year.
On a linked-quarter basis, noninterest income decreased by $3.2 million, or 11.5%. This decrease was primarily attributable to decreases in income from indirect lending activities and mortgage banking activities of $2.5 million and $646,000, respectively. These decreases occurred primarily due to decreases in loan production and sales from quarter to quarter. See "Analysis of Indirect Lending" and "Analysis of Mortgage Lending" tables below.
Noninterest Expense
Noninterest expense was $36.6 million and $138.8 million for the quarter and year, an increase of $4.1 million and $6.4 million, or 12.6% and 4.9%, respectively, as compared to the same periods in 2013.
Salaries and benefits, occupancy, and communications expenses have increased for all periods due to the growth in employees and locations and the associated administrative support functions as the Company continues to grow. Salaries and benefits increased by $3.3 million for the quarter and $9.4 million for the year while occupancy and communication expenses increased by $921,000 and $3.4 million for the same periods.
The increase in personnel costs for the year was partially offset by a reduction in commissions expense of $4.7 million resulting from lower mortgage banking volume year over year. For the quarter, commissions expense increased by $1.3 million as mortgage production rebounded in 2014, increasing by $89.8 million compared to the fourth quarter of 2013.
Other operating expenses declined by $1.3 million and $1.6 million for the quarter and year, primarily due to decreases in ORE expenses of $1.5 million and $3.6 million compared to the same periods in the prior year, including reductions in ORE write-downs of $543,000 and $1.9 million for the same periods. ORE expenses, excluding write-downs, have decreased as dispositions of ORE continue at a faster rate than new foreclosures. The decrease in ORE expenses for the year was partially offset by increases in insurance expense and advertising expense of $785,000 and $659,000, respectively, compared to 2013.
On a linked-quarter basis, noninterest expense increased by $0.9 million, or 2.6%, which was primarily attributable to a 5.3% increase in salaries and benefits.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and trust services and credit-related insurance products through branches in Georgia and Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided throughout the South. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2013 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
As of or for the Three Months Ended As of or for the Year Ended
----------------------------------- ---------------------------
($ in thousands, except
per share data) December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
---- ---- ---- ---- ----
RESULTS OF OPERATIONS
Net interest income $23,615 $23,164 $20,858 $90,441 $83,595
Provision for loan losses 556 1,859 273 531 5,440
Noninterest income 24,711 27,908 17,753 95,320 96,885
Noninterest expense 36,645 35,710 32,538 138,754 132,325
Income tax expense 3,912 4,701 1,937 16,440 15,077
Net income 7,213 8,802 3,863 30,036 27,638
PERFORMANCE
Earnings per share -
basic (1) $0.34 $0.41 $0.18 $1.41 $1.35
Earnings per share -
diluted (1) 0.31 0.38 0.16 1.28 1.21
Return on average assets 0.98% 1.25% 0.61% 1.11% 1.09%
Return on average equity 10.99% 13.79% 6.54% 12.07% 12.20%
Yield on interest earning
assets 3.91% 3.98% 4.08% 4.07% 4.18%
Cost of funds 0.58% 0.56% 0.64% 0.59% 0.74%
Net interest margin 3.47% 3.56% 3.58% 3.62% 3.58%
CAPITAL
Cash dividends paid per
common share $0.09 $0.09 $0.02 $0.26 $0.02
Dividend payout ratio (2) 26.47% 21.95% 11.11% 18.44% 1.48%
Tier 1 risk-based capital 11.07% 11.84% 12.71% 11.07% 12.71%
Total risk-based capital 12.01% 12.99% 13.96% 12.01% 13.96%
Leverage ratio 10.40% 10.64% 11.02% 10.40% 11.02%
BALANCE SHEET SUMMARY
Loans held for sale $368,935 $324,442 $187,366 $368,935 $187,366
Loans 2,253,306 2,073,803 1,893,037 2,253,306 1,893,037
Allowance for loan losses (25,450) (28,297) (33,684) (25,450) (33,684)
Total assets 3,085,225 2,861,665 2,564,168 3,085,225 2,564,168
Total deposits 2,458,022 2,459,291 2,202,452 2,458,022 2,202,452
Shareholders' equity 264,951 258,163 236,230 264,951 236,230
STOCK PERFORMANCE
Market price:
Closing (1) $16.11 $13.70 $16.54 $16.11 $16.54
High close (1) 16.36 14.88 17.80 16.57 17.80
Low close (1) 13.55 12.98 13.32 12.80 9.35
Daily average trading
volume 71,052 51,166 54,195 58,323 57,925
Shares of common stock
outstanding (1) 21,365 21,327 21,343 21,365 21,343
Book value per common
share (1) $12.40 $12.10 $11.07 $12.40 $11.07
Tangible book value per
common share(1) 12.22 11.92 10.96 12.22 10.96
Price to book value 1.30 1.13 1.49 1.30 1.49
Price to tangible book
value 1.32 1.15 1.51 1.32 1.51
ASSET QUALITY
Total nonperforming loans $37,616 $45,104 $59,582 $37,616 $59,582
Total nonperforming
assets (3) 61,363 73,313 91,783 61,363 91,783
Nonperforming Asset Ratio
(4) 2.69% 3.49% 4.77% 2.69% 5.05%
OTHER INFORMATION
Noninterest income to
total revenue (5) 48.13% 51.87% 42.75% 48.39% 49.83%
Full-Time equivalent
employees 1,038.0 1,011.6 889.9 1,038.0 889.9
(1) Historical periods prior to and
including December 31, 2013 adjusted
for stock dividends
(2) Calculated using Dividends Paid
divided by Basic EPS
(3) Nonperforming assets include
nonaccrual loans, loans past due 90
days or more and still accruing,
repossessions and ORE.
(4) Nonperforming asset ratio is
defined as nonperforming assets over
gross total loans held to maturity,
repossessions and ORE
(5) Total revenue is calculated as
interest income plus non-interest
income
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($ in thousands) December 31, September 30, December 31,
2014 2014 2013
---- ---- ----
ASSETS
Cash and cash equivalents $71,605 $91,565 $116,559
Investment securities available-
for-sale 149,590 156,331 168,865
Investment securities held-to-
maturity 7,349 7,588 4,051
Loans held-for-sale 368,935 324,442 187,366
Loans 2,253,306 2,073,803 1,893,037
Allowance for loan losses (25,450) (28,297) (33,684)
------- ------- -------
Loans, net of allowance for loan
losses 2,227,856 2,045,506 1,859,353
Premises and equipment, net 60,857 59,650 44,555
Other real estate, net 22,564 26,999 30,982
Bank owned life insurance 59,553 34,279 33,855
Servicing rights 64,897 62,196 53,202
Other assets 52,019 53,109 65,380
Total assets $3,085,225 $2,861,665 $2,564,168
========== ========== ==========
LIABILITIES
Deposits
Noninterest-bearing demand deposits $558,018 $639,471 $488,224
Interest-bearing deposits
Demand and money market 788,373 778,645 701,556
Savings 321,621 312,183 325,133
Time deposits 790,010 728,992 687,539
------- ------- -------
Total deposits 2,458,022 2,459,291 2,202,452
Other borrowings 291,087 76,402 59,233
Subordinated debt 46,393 46,393 46,393
Other liabilities 24,772 21,416 19,860
------ ------ ------
Total liabilities 2,820,274 2,603,502 2,327,938
SHAREHOLDERS' EQUITY
Preferred stock - - -
Common stock 162,575 161,527 158,153
Accumulated other comprehensive
income, net 2,814 2,367 968
Retained earnings 99,562 94,269 77,109
------ ------ ------
Total shareholders' equity 264,951 258,163 236,230
------- -------
Total liabilities and shareholders'
equity $3,085,225 $2,861,665 $2,564,168
========== ========== ==========
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
($ in thousands, except per
share data) December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
---- ---- ---- ---- ----
INTEREST INCOME
Loans, including fees $25,382 $24,690 $22,639 $96,664 $93,432
Investment securities 1,242 1,183 1,095 4,918 4,010
Federal funds sold and bank
deposits 9 18 43 85 114
--- --- --- --- ---
Total interest income 26,633 25,891 23,777 101,667 97,556
INTEREST EXPENSE
Deposits 2,609 2,282 2,590 9,707 10,418
Other borrowings 130 163 47 406 810
Subordinated debt 279 282 282 1,113 2,733
--- --- --- ----- -----
Total interest expense 3,018 2,727 2,919 11,226 13,961
----- ----- ----- ------ ------
Net interest income 23,615 23,164 20,858 90,441 83,595
Provision for loan losses 556 1,859 273 531 5,440
--- ----- --- --- -----
Net interest income after
provision for loan losses 23,059 21,305 20,585 89,910 78,155
NONINTEREST INCOME
Service charges on deposit
accounts 1,229 1,141 1,119 4,438 4,163
Other fees and charges 1,189 1,140 1,012 4,349 3,871
Mortgage banking activities 15,489 16,135 10,798 55,781 66,560
Indirect lending activities 3,847 6,303 2,030 18,457 9,040
SBA lending activities 1,305 1,479 492 4,987 3,640
Bank owned life insurance 304 313 308 1,673 1,273
Securities gains - - 188 - 189
Other 1,348 1,397 1,806 5,635 8,149
----- ----- ----- ----- -----
Total noninterest income 24,711 27,908 17,753 95,320 96,885
NONINTEREST EXPENSE
Salaries and employee
benefits 17,926 17,022 14,660 67,006 57,645
Commissions 5,545 5,363 4,288 19,988 24,676
Occupancy 3,508 3,467 2,799 12,985 10,342
Communication 1,068 1,009 856 3,897 3,175
Other 8,598 8,849 9,935 34,878 36,487
----- ------ ------
Total noninterest expense 36,645 35,710 32,538 138,754 132,325
------ ------ ------ ------- -------
Income before income tax
expense 11,125 13,503 5,800 46,476 42,715
Income tax expense 3,912 4,701 1,937 16,440 15,077
----- ----- ----- ------ ------
NET INCOME 7,213 8,802 3,863 30,036 27,638
Preferred stock dividends and
discount accretion - - - - (2,463)
Net income available to
common equity $7,213 $8,802 $3,863 $30,036 $25,175
====== ====== ====== ======= =======
EARNINGS PER SHARE: (1)
Basic earnings per share $0.34 $0.41 $0.18 $1.41 $1.35
===== ===== ===== ===== =====
Diluted earnings per share $0.31 $0.38 $0.16 $1.28 $1.21
===== ===== ===== ===== =====
Weighted average common
shares outstanding-basic 21,343 21,319 21,332 21,313 18,636
====== ====== ====== ====== ======
Weighted average common
shares outstanding-diluted 23,544 23,464 23,533 23,472 20,734
====== ====== ====== ====== ======
(1) Historical periods prior
to and including December
31, 2013 adjusted for stock
dividends
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
LOANS BY CATEGORY
(UNAUDITED)
($ in thousands) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Commercial $524,145 $524,419 $536,435 $525,347 $530,977
SBA 134,766 143,302 136,946 138,331 134,823
Total commercial
and SBA loans 658,911 667,721 673,381 663,678 665,800
------- ------- ------- ------- -------
Construction
loans 123,994 108,823 113,873 101,443 101,698
Indirect
automobile 1,219,232 1,087,710 997,117 925,101 975,223
Installment 13,372 15,647 15,892 15,932 13,473
Total consumer
loans 1,232,604 1,103,357 1,013,009 941,033 988,696
--------- --------- --------- ------- -------
Residential
mortgage 158,348 119,292 93,453 68,546 60,928
Home equity lines
of credit 79,449 74,610 74,898 73,392 75,915
Total mortgage
loans 237,797 193,902 168,351 141,938 136,843
-------
Loans 2,253,306 2,073,803 1,968,614 1,848,092 1,893,037
--------- --------- --------- --------- ---------
Loans held-for-sale:
Residential
mortgage 181,424 161,775 191,666 112,195 127,850
SBA 12,511 17,667 8,053 8,355 9,516
Indirect
automobile 175,000 145,000 140,000 60,000 50,000
------- ------- ------- ------ ------
Total loans held-
for-sale 368,935 324,442 339,719 180,550 187,366
------- ------- ------- ------- -------
Total loans $2,622,241 $2,398,245 $2,308,333 $2,028,642 $2,080,403
========== ========== ========== ========== ==========
Noncovered loans $2,218,493 $2,036,097 $1,923,088 $1,796,256 $1,834,675
Covered loans 34,813 37,706 45,526 51,836 58,362
Loans held-for-
sale 368,935 324,442 339,719 180,550 187,366
------- ------- ------- ------- -------
Total loans $2,622,241 $2,398,245 $2,308,333 $2,028,642 $2,080,403
========== ========== ========== ========== ==========
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
As of or for the Three Months Ended As of or for the Year Ended
----------------------------------- ---------------------------
($ in thousands) December 31, September 30, December 31, December 31, December 31,
2014 2014 2013 2014 2013
---- ---- ---- ---- ----
Balance at beginning of period $28,297 $28,912 $33,661 $33,684 $33,982
Net charge-offs/(recoveries):
Commercial and SBA 2,239 1,337 (147) 5,407 3,395
Construction (151) (41) (250) (1,858) (379)
Indirect automobile and
installment loans 899 614 696 104 528
Mortgage (19) 4 102 2,879 3,236
Covered (225) 77 (57) 139 105
Acquired, noncovered (1) 52 - 35 30
--- --- --- --- ---
Total net charge-offs/
(recoveries) 2,742 2,043 344 6,706 6,915
Provision for loan losses (1) 556 1,859 273 531 5,440
(Decrease)/increase in FDIC loss
share receivable (661) (431) 94 (2,059) 1,177
Balance at end of period $25,450 $28,297 $33,684 $25,450 $33,684
======= ======= ======= ======= =======
Net charge-offs/(recoveries),
annualized to average loans 0.50% 0.40% 0.07% 0.33% 0.38%
Average loans $2,192,383 $2,045,464 $1,868,507 $2,015,068 $1,818,575
Allowance for loan losses as a
percentage of loans 1.13% 1.36% 1.78% 1.13% 1.78%
(1) Net of benefit attributable to FDIC loss share receivable
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
NONPERFORMING AND CLASSIFIED ASSETS
(UNAUDITED)
($ in thousands) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
NONCOVERED NONPERFORMING ASSETS
Nonaccrual loans $34,856 $37,240 $37,340 $40,983 $40,944
Loans past due 90 days or
more and still accruing 827 - - 488 -
Repossessions 1,183 1,210 1,068 1,398 1,219
Other real estate (ORE) 14,983 18,491 19,855 19,573 24,791
------ ------ ------ ------ ------
Noncovered nonperforming
assets $51,849 $56,941 $58,263 $62,442 $66,954
======= ======= ======= ======= =======
NONCOVERED NONPERFORMING ASSET RATIOS
Loans 30-89 days past due $4,565 $2,885 $2,874 $4,045 $5,132
Loans 30-89 days past due to
loans 0.21% 0.14% 0.15% 0.23% 0.28%
Loans past due 90 days or
more and still accruing to
loans 0.04% - % - % 0.03% - %
Nonperforming assets to
loans, ORE, and
repossessions 2.32% 2.77% 3.00% 3.44% 3.60%
COVERED NONPERFORMING ASSETS
Nonaccrual loans $1,933 $7,864 $10,849 $15,617 $18,638
Other real estate 7,581 8,508 7,075 4,974 6,191
----- ----- ----- ----- -----
Covered nonperforming assets $9,514 $16,372 $17,924 $20,591 $24,829
====== ======= ======= ======= =======
ASSET QUALITY RATIOS
Classified Asset Ratio (3) 21.49% 25.36% 24.88% 27.14% 27.66%
Including covered loans:
Nonperforming loans as a % of
loans 1.67% 2.17% 2.45% 3.09% 3.15%
Nonperforming assets as a %
of loans plus ORE 2.69% 3.49% 3.82% 4.04% 4.77%
ALL to nonperforming loans 67.66% 62.74% 60.00% 53.95% 56.53%
Net charge-offs/
(recoveries), annualized to
average loans 0.50% 0.40% 0.42% (0.02)% 0.07%
ALL as a % of loans 1.13% 1.36% 1.47% 1.67% 1.78%
Excluding covered loans:
Nonperforming loans as a % of
loans 1.61% 1.83% 1.94% 2.31% 2.23%
Nonperforming assets as a %
of loans plus ORE 2.32% 2.77% 3.00% 3.44% 3.60%
ALL to nonperforming loans 71.32% 75.99% 77.43% 74.26% 82.27%
Net charge-offs/
(recoveries), annualized to
average loans 0.55% 0.39% 0.46% (0.12)% 0.09%
ALL as a % of loans 1.15% 1.39% 1.50% 1.71% 1.84%
CLASSIFIED ASSETS
Classified loans (1) $53,415 $61,161 $57,880 $63,993 $59,787
ORE and repossessions 17,218 21,287 21,633 21,279 26,401
------ ------ ------ ------ ------
Total classified assets (2) $70,633 $82,448 $79,513 $85,272 $86,188
======= ======= ======= ======= =======
(1) Amount of SBA guarantee
included $5,271 $7,590 $6,462 $8,506 $7,869
(2) Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, repossessions and ORE, net of loss share.
(3) Classified asset ratio is defined as classified assets as a percentage of Tier 1 capital plus allowance for loan losses.
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
ANALYSIS OF INDIRECT LENDING
(UNAUDITED)
As of or for the Three Months Ended
-----------------------------------
($ in thousands) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Average loans outstanding (1) $1,329,306 $1,204,314 $1,075,657 $1,032,592 $1,010,229
Loans serviced for others $902,823 $863,931 $701,120 $657,082 $523,386
Past due loans:
Amount 30+
days past due $1,547 $1,573 $1,363 $1,117 $1,561
Number 30+
days past due 143 136 125 109 130
30+ day performing delinquency rate (2) 0.11% 0.13% 0.12% 0.11% 0.15%
Nonperforming loans $715 $795 $743 $772 $806
Nonperforming loans as a percentage of
period end loans (2) 0.05% 0.06% 0.07% 0.08% 0.08%
Net charge-offs $901 $612 $614 $733 $703
Net charge-off rate (3) 0.30% 0.23% 0.25% 0.31% 0.29%
Number of vehicles repossessed during the
period 128 136 126 143 198
Average beacon score of portfolio 753 751 745 752 740
Production by state:
Alabama $26,780 $27,845 $28,530 $22,155 $19,798
Arkansas 41,912 47,894 36,572 22,183 16,352
North Carolina 25,059 29,781 24,069 18,980 18,731
South Carolina 16,132 22,189 23,139 14,657 13,302
Florida 102,465 128,729 110,940 76,829 76,253
Georgia 69,288 72,423 54,592 45,154 43,064
Mississippi 23,736 30,525 28,569 23,941 20,341
Tennessee 22,880 28,684 22,196 15,746 13,674
Virginia 18,590 20,903 16,017 11,458 11,040
Texas (4) 50,987 49,868 39,320 15,429 5,045
Louisiana (4) 13,531 12,597 2,595 - -
Total production by state $411,360 $471,438 $386,539 $266,532 $237,600
Loan sales $121,973 $244,556 $118,344 $195,027 $88,153
Portfolio yield (1) 3.07% 3.10% 3.26% 3.39% 3.48%
(1) Includes held-for-sale
(2) Calculated by dividing loan category as of the end of the period by period-end loans including held for sale for the specified
loan portfolio
(3) Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the
specified loan category
(4) Expanded into Texas in October of 2013 and into Louisiana in May of 2014
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
ANALYSIS OF MORTGAGE LENDING
(UNAUDITED)
For the Three Months Ended
--------------------------
($ in thousands) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Average loans outstanding (1) $300,652 $286,407 $229,292 $171,496 $194,557
Loans serviced for others $5,413,781 $5,173,302 $4,845,166 $4,571,585 $4,371,071
% of loan production for purchases 74.93% 82.25% 86.18% 78.48% 78.72%
% of loan production for refinance loans 25.07% 17.75% 13.82% 21.52% 21.28%
Production by region:
Georgia $311,846 $316,359 $328,936 $181,667 $259,289
Florida/Alabama 42,485 31,642 26,383 20,816 19,724
Virginia/
Maryland 126,151 127,721 132,816 73,471 91,494
North and South
Carolina (2) - - - - -
Total retail 480,482 475,722 488,135 275,954 370,507
Wholesale 34,961 60,393 73,252 44,862 55,149
Total production by region $515,443 $536,115 $561,387 $320,816 $425,656
======== ======== ======== ======== ========
Loan sales $475,930 $536,490 $446,176 $328,145 $467,932
Portfolio yield (1) 3.90% 4.10% 4.05% 4.21% 4.09%
INCOME FROM MORTGAGE BANKING ACTIVITIES
(UNAUDITED)
For the Three Months Ended
--------------------------
(in thousands) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Marketing gain, net $12,076 $12,108 $10,954 $7,991 $8,568
Origination points and fees 2,744 2,943 3,148 1,787 2,474
Loan servicing revenue 3,473 3,211 2,998 3,005 2,609
MSR amortization and impairment
adjustments (2,804) (2,127) (3,530) (2,196) (2,853)
------ ------ ------ ------ ------
Total mortgage banking activities $15,489 $16,135 $13,570 $10,587 $10,798
======= ======= ======= ======= =======
Noncash items included in income
from mortgage banking activities:
Capitalized MSR, net $3,333 $4,062 $3,693 $2,170 $3,992
Valuation on MSR (709) (156) (1,838) (619) (1,360)
Mark to market adjustments 588 (1,747) 1,609 1,362 344
Total noncash items $3,212 $2,159 $3,464 $2,913 $2,976
====== ====== ====== ====== ======
(1) Includes held-for-sale
(2) Expanded into North and South Carolina in January 2015
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
For the Year Ended
------------------
December 31, 2014 December 31, 2013
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
Assets
Interest-earning assets:
Loans, net of unearned income (1) $2,284,245 $96,830 4.24% $2,109,575 $93,573 4.44%
Investment securities (1) 175,174 5,141 2.93% 170,264 4,249 2.50%
Federal funds sold and bank deposits 50,828 85 0.17% 65,652 114 0.17%
------ --- ------ ---
Total interest-earning assets 2,510,247 102,056 4.07% 2,345,491 97,936 4.18%
Noninterest-earning assets:
Cash and due from banks 13,605 13,885
Allowance for loan losses (30,363) (33,512)
Premises and equipment, net 52,666 40,830
Other real estate 26,327 37,469
Other assets 143,277 138,982
------- -------
Total assets $2,715,759 $2,543,145
========== ==========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $722,448 $1,889 0.26% $648,734 $1,806 0.28%
Savings deposits 316,439 1,147 0.36% 317,845 1,319 0.41%
Time deposits 681,915 6,671 0.98% 719,205 7,293 1.01%
------- ----- ------- -----
Total interest-bearing deposits 1,720,802 9,707 0.56% 1,685,784 10,418 0.62%
Other borrowings 134,513 406 0.30% 129,069 810 0.63%
Subordinated debt 46,393 1,113 2.40% 60,926 2,733 4.49%
------ ----- ------ -----
Total interest-bearing liabilities 1,901,708 11,226 0.59% 1,875,779 13,961 0.74%
Noninterest-bearing liabilities and shareholders'
equity:
Demand deposits 539,023 417,681
Other liabilities 26,245 23,228
Shareholders' equity 248,783 226,457
------- -------
Total liabilities and shareholders'
equity $2,715,759 $2,543,145
========== ==========
Net interest income/spread $90,830 3.48% $83,975 3.44%
======= =======
Net interest margin 3.62% 3.58%
(1) Interest income includes the
effect of taxable-equivalent
adjustment for 2014 and 2013,
respectively, using a 35% tax
rate.
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
For the Three Months Ended
--------------------------
December 31, 2014 December 31, 2013
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
Assets
Interest-earning assets:
Loans, net of unearned income (1) $2,509,552 $25,427 4.02% $2,061,358 $22,677 4.36%
Investment securities (1) 169,254 1,301 3.05% 173,422 1,150 2.63%
Federal funds sold and bank deposits 32,332 9 0.11% 87,842 43 0.19%
------ --- ------ ---
Total interest-earning assets 2,711,138 26,737 3.91% 2,322,622 23,870 4.08%
Noninterest-earning assets:
Cash and due from banks 12,461 14,906
Allowance for loan losses (28,328) (33,704)
Premises and equipment, net 60,496 42,571
Other real estate 25,045 32,814
Other assets 140,930 144,998
------- -------
Total assets $2,921,742 $2,524,207
========== ==========
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $783,896 $485 0.25% $693,000 $507 0.29%
Savings deposits 323,605 285 0.35% 307,463 301 0.39%
Time deposits 741,216 1,839 0.98% 701,193 1,782 1.01%
------- ----- ------- -----
Total interest-bearing deposits 1,848,717 2,609 0.56% 1,701,656 2,590 0.60%
Other borrowings 173,991 130 0.30% 67,135 47 0.28%
Subordinated debt 46,393 279 2.39% 46,393 282 2.41%
------ --- ------ ---
Total interest-bearing liabilities 2,069,101 3,018 0.58% 1,815,184 2,919 0.64%
Noninterest-bearing liabilities and shareholders'
equity:
Demand deposits 567,423 448,889
Other liabilities 24,910 25,820
Shareholders' equity 260,308 234,314
------- -------
Total liabilities and shareholders'
equity $2,921,742 $2,524,207
========== ==========
Net interest income/spread $23,719 3.33% $20,951 3.44%
======= =======
Net interest margin 3.47% 3.58%
(1) Interest income includes the
effect of taxable-equivalent
adjustment for 2014 and 2013,
respectively, using a 35% tax
rate.
Contacts:
Martha Fleming, Steve Brolly
Fidelity Southern Corporation (404) 240-1504
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fidelity-southern-corporation-earns-72-million-in-fourth-quarter-record-of-30-million-in-2014-300024542.html
SOURCE Fidelity Southern Corporation
