ATLANTA, July 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
June 30, 2017.
HIGHLIGHTS:
- Net income of $8.9 million, or
$0.33 per diluted share, an increase
of $2.2 million, year over year, and
decreased $1.6 million, as compared
to the previous quarter
- Total revenues of $74.6 million,
an increase of $7.9 million, year
over year, and a decrease of $378,000
as compared to the prior quarter
- Net interest income of $33.7
million grew by $1.9 million
and $1.5 million, year over year, and
compared to the prior quarter
- Noninterest income of $35.1
million grew by $5.1 million,
year over year, and decreased by $2.3
million compared to the prior quarter
- Book value per common share of $14.21 grew by $1.04 and $0.12,
year over year, and compared to the prior quarter
- Total assets of $4.6 billion
increased by $78.2 million, or 1.7%,
during the quarter
- Total loans of $3.7 billion
increased by $10.8 million, or 0.3%,
during the quarter
- Total deposits of $3.9 billion
increased by $144.7 million, or 3.9%,
during the quarter
- Loans serviced for others of $9.9
billion grew by $323.0
million, or 3.4%, during the quarter
Fidelity's Chairman and CEO, Jim
Miller, said, "We are pleased to see continued topline
revenue growth generated by our ability to grow earning assets
while operating basically in a flat curve environment. In 2017, we
launched a number of project initiatives. Substantial investments
were made in building out our Wealth Management sales force,
mortgage expansion in Florida, and
putting in place the talent, back office operations, and technology
infrastructure that will enable us to be a much larger bank.
Consequently though, efficiencies and sales will follow. It is
worth noting that the flat commercial lending market and long-term
loan structures have been difficult for us as we are fundamentally
conservative and steer away from speculative real estate and what
we call give-away interest rates. Nevertheless, we continue to
focus our full attention on lending to businesses. We want our
balance sheet to be more diversified.
We plan for further interest rate increases and expect the
economy to become stronger despite overbuilding in the apartment
market."
Fidelity's President, Palmer
Proctor, added, "The project initiatives and revenue
expansion investments that we have implemented will allow us to be
more nimble and efficient as we enhance our technology and
operating capacity. This in turn will help us provide more organic
growth in existing and new markets, provide the capability for more
strategic acquisitions, and most importantly, provide long-term
shareholder value."
BALANCE SHEET
Total assets of $4.6 billion at June 30, 2017, represent an
increase of $78.2 million, or 1.7%,
compared to March 31, 2017. The increase in total assets for
the quarter was primarily driven by a net increase in cash and cash
equivalents of $75.6 million,
provided by the increase in total deposits of $144.7 million, or 3.9%. The excess cash from
deposit marketing campaigns was used to pay off $75.0 million in FHLB advances during the
quarter.
Loans
Total loans of $3.7
billion at June 30, 2017, increased by $10.8 million, or 0.3%, as compared to
March 31, 2017. During the quarter, loans held for investment
decreased by $22.8 million, or 0.7%,
to $3.3 billion. Consistent with
industry trends influenced by rising interest rates, loan
production has slowed in the indirect automobile and commercial
portfolios. The Bank continues to generate organic new business,
evidenced by average loan balances increasing by $17.8 million, as compared to March 31,
2017, as well as leveraging its expansion into new markets, as
shown through solid production in the residential mortgage and
HELOC portfolios. Loans held for sale grew by $33.6 million, or 9.3%, during the quarter to
$394.7 million, primarily due to
seasonally higher mortgage originations for the quarter as the peak
summer homebuying season started.
Asset Quality
Credit quality of the loan portfolio
continued to improve during the quarter. Non-performing assets
decreased by $3.5 million, or 5.8%,
as compared to March 31, 2017. The ORE and repossessions
balance of $11.2 million decreased by
$1.8 million, or 13.7%, during the
quarter and is now at the lowest level in over 10 years. Delinquent
loan balances, were down from the prior linked-quarter, and are
near historic lows.
On a linked-quarter basis, the provision for loan losses
decreased by $1.4 million, as net
charge-offs decreased by $586,000
compared to the previous quarter. Annualized net charge-offs
improved to 0.09% from 0.16% of total loans as compared to the
prior quarter as successful collection and recovery efforts drove
net recoveries in the commercial and construction portfolios.
Year over year, the provision for loan losses of $750,000 recorded for the quarter represented a
decrease of $2.4 million compared to
the same quarter a year ago. The primary reason for the lower
provision for loan losses was overall improved credit quality and
lower net loan charge-offs for the quarter, led primarily by
recoveries in the construction and commercial portfolios.
Fair Value Adjustments
Loan servicing rights increased
during the quarter by $3.2 million,
or 3.0%, to $108.2 million. Mortgage
servicing rights (MSRs), the primary component of loan servicing
rights, contributed the majority of the change, increasing by
$3.4 million, slightly offset by the
change in indirect and SBA loan servicing rights for the
quarter.
The increase in MSRs was primarily driven by increased sales of
mortgage loans with servicing retained to $573.8 million for the quarter, an increase of
$76.9 million, or 15.5%, in
comparison to the prior linked-quarter. This increase was partially
offset by a slight increase in impairment during the quarter
as a result of higher early prepayments and lower mortgage
rates. Early prepayments were higher for the quarter, primarily due
to sales and purchases of new homes. Slightly lower mortgage rates
also contributed to payoffs for refinances during the quarter.
The current estimated fair market value of the MSR was
$97.8 million at June 30, 2017,
an excess of $3.0 million over the
net carrying value recorded. If interest rates trend upward, the
fair market value would theoretically increase with a corresponding
decrease in early prepayment expectations and some portion of the
cumulative impairment recorded may be recovered. However, the value
of the MSR is highly dependent on current market rates so any
interest rate volatility could significantly impact the value of
the asset and the recorded impairment, either positively or
negatively.
Fair value gains on the portfolio of mortgage loans held for
sale, interest rate lock commitments (IRLCs) and hedge items was
$13.9 million at June 30, 2017,
an increase of $2.4 million, or
20.3%, during the quarter. The increase was primarily attributable
to the increase in mortgage loans held for sale as the gross
pipeline of locked loans to be sold decreased slightly by quarter
end as summer home buying began to taper. Since the Bank hedges its
mortgage pipeline and held for sale portfolio, the volatility of
these items due to interest rate movements collectively should be
minimal.
Deposits
Total deposits increased by $144.7 million, or 3.9%, during the quarter to
$3.9 billion. The majority of this
increase occurred in the demand and money market category which
increased by $114.1 million, or 8.6%,
including $55.3 million in the
Florida branches. Florida deposits
now comprise 20.3% of total deposits. The remainder of the increase
was driven by an increase in noninterest bearing demand deposits
which rose by $77.6 million, or 7.7%,
to end the quarter at $1.1 billion.
Core deposit balances continue to grow. The increase in core
deposits was partially offset by decreases of $45.1 million and $1.9
million, in the savings and time deposit categories,
respectively.
INCOME STATEMENT
Net Income
On a
linked-quarter basis, net income was $1.6
million, or 15.5%, lower. Net interest income increased by
$1.5 million due to an increase in
total interest-earning assets, and provision for loan losses was
lower by $1.4 million due to improved
credit quality. These increases were offset by a decrease of
$2.3 million in noninterest income,
primarily created by lower gains on loan sales and a non-recurring
gain recorded in the previous quarter, and an increase of
$4.0 million in noninterest expense
stemming from increased salaries and benefits, commission costs due
to the increase in mortgage production, and professional and other
services, as further described below.
As compared to the same quarter a year ago, net income increased
by $2.2 million, or 33.8%, to
$8.9 million. The increased earnings
was primarily the result of higher earning assets that contributed
to an additional $1.9 million in net
interest income, $7.7 million in
noninterest income from mortgage banking activities, and
$2.4 million less in provision for
loan losses due to improved credit quality from a year ago. These
increases in earnings were partially offset by changes in
noninterest expense of $6.4 million
due to increased salaries and benefits, commissions from higher
production, and professional and other services.
Interest Income
On a linked-quarter basis, interest
income increased by $1.9 million, or
5.1%, primarily driven by an increase of 10 basis points in the
yield on loans and growth in average loans of $17.8 million. Additionally, the interest income
from excess fed funds sold and interest-bearing deposits with banks
increased by $497,000, or 141.6%, for
the quarter. The planned change in mix of interest-earning assets
occurred due to a relatively larger increase in cash held in bank
deposits during the quarter as compared to other higher-yielding
interest-earning assets. Excess cash from the money market deposit
campaign will be used to pay off short-term borrowings in future
quarters.
Interest income of $39.6 million
for the quarter increased by $2.8
million, or 7.5%, as compared to the same period in the
prior year. This increase was primarily driven by an increase of
average loans of $145.1 million, or
4.0%. Also contributing to the year over year increase in interest
income was an increase of 9 basis points in the yield on loans,
primarily in the commercial and construction loan portfolios due to
three increases of 25 basis points in the prime rate over the past
twelve months, including an increase effective June 15, 2017 which will be fully reflected in
the third quarter.
Interest Expense
On a linked-quarter basis, interest
expense increased by $424,000, or
7.8%, primarily due to an increase in average interest-bearing
deposits of $87.8 million, or 3.2%.
The Bank continued its deposit marketing campaign, primarily in the
Florida markets, which has been
focused on attracting money market deposits. In addition, the rate
paid increased by 4 basis points as compared to the prior
linked-quarter as a result of the impact of the three 25 basis
point increases in the prime rate over the past six months,
including an increase effective June 15,
2017, which will be fully reflected in the third
quarter.
Interest expense for the quarter of $5.8
million reflects an increase of $869,000, or 17.5%, as compared to the same
quarter a year ago, primarily due to an increase in interest
expense on deposits. As a result, average interest-bearing deposits
for the quarter increased by $232.1
million, or 9.1%, as the Bank's deposit marketing campaign
continued. Also contributing to the year over year increase in
interest expense was an increase of 5 basis points in the rate paid
on interest-bearing deposits. Other short-term borrowings also
experienced an increase in the rate paid for the quarter, which was
32 basis points higher as a result of the impact of the three 25
basis point increases in the prime rate in the past twelve months
previously mentioned.
Net Interest Margin
On a linked-quarter basis, net
interest income (tax equivalent) grew by $1.5 million, or 4.6%, to $33.8 million, primarily as the result of an
increase of $163.4 million, or 4.0%,
in average earning assets, partially offset by an increase of
$85.9 million, or 2.8%, in
interest-bearing liabilities and an increase of 3 basis points in
the cost of funds.
In comparison to the prior linked-quarter, the net interest
margin for the quarter decreased by 1 basis point to 3.20%,
primarily due to an increase of 3 basis points in the rate paid on
interest-bearing liabilities, partially offset by the benefit of
higher average noninterest-bearing demand deposits which grew by
$66.7 million, or 6.9%.
As compared to the same period a year ago, net interest income
(tax equivalent) rose by $1.9 million to
$33.8 million, or an increase of 5.9%, for the quarter,
primarily due to a year over year increase of $354.0 million, or 9.1%, in average earning
assets. This increase was partially offset by an increase in
interest expense as average interest-bearing deposits grew by
$232.1 million, or 9.1%, and the rate
paid increased by 5 basis points.
The net interest margin was 3.20% for the quarter, a decrease of
10 basis points, as compared to 3.30% for the same period in 2016.
The growth in lower-yielding other earning assets, mainly cash held
in bank deposits, contributed to the decrease in the net interest
margin, partially offset by steady growth in loan yields of 9 basis
points. The decrease in the net interest margin was also driven by
the higher cost of funds for the quarter, primarily resulting from
an increase in the rate paid on interest-bearing deposits of 5
basis points.
Noninterest Income
On a linked-quarter basis,
noninterest income decreased by $2.3
million, or 6.2%, largely due to a net decrease in other
noninterest income of $1.6 million,
or 109.5%, as a change in insurance providers resulted in a
non-recurring gain of $1.0 million
recorded in the previous quarter. Decreases were also noted in
indirect lending activities of $786,000, or 17.8%, and SBA lending activities of
$1.1 million, or 62.5%, as lower
volume of loans sold resulted in lower gains on loan sales in both
portfolios. As compared to the prior linked-quarter, indirect loan
sales decreased by $40.4 million, or
26.6%, and SBA loan sales decreased by $4.4
million, or 45.7%. Mortgage banking activities was
positively impacted by an increase of $1.1
million, or 4.2%, in gains on sale and fees stemming from
increased mortgage production of $247.4
million, or 44.7%, and consistent product margins.
Noninterest income for the quarter of $35.1 million increased by $5.1 million, or 17.0%, as compared to the same
period a year ago, primarily due to a net increase in noninterest
income from mortgage banking activities of $7.7 million, or 39.8%. The stability of market
interest rates over the year resulted in a smaller net MSR
impairment of $636,000 for the
quarter as compared to net MSR impairment of $8.6 million for the same period a year ago,
driving $7.9 million of the year over
year change in noninterest income from mortgage banking
activities.
Partially offsetting the year over year increase in noninterest
income from mortgage banking activities was a decrease of
$1.1 million, or 23.9%, in
noninterest income from indirect lending activities and a decrease
of $1.2 million, or 64.0%, in
noninterest income from SBA lending activities, primarily due to a
year over year decrease in gains on loan sales. As compared to the
same quarter a year ago, indirect loan sales decreased by
$144.2 million, or 36.6%, and SBA
loan sales decreased by $7.7 million,
or 44.4%, respectively.
Noninterest Expense
On a linked-quarter basis,
noninterest expense increased by $4.0
million, or 7.9%. Commissions expense increased by
$1.9 million, or 25.2%, primarily due
to higher mortgage loan production and to a lesser degree, due to
guaranteed commissions paid to new mortgage originators in
expansion markets executed late in the first quarter. Salaries and
employee benefits grew by $414,000,
or 1.6%, for the prior linked-quarter, mainly due to new hires in
the mortgage and Wealth Management divisions. Professional and
other services expense was $1.0
million, or, 24.2%, higher due to higher expenses paid to
outside third parties, primarily for ongoing projects to build the
operating infrastructure, gather data to comply with new and
existing regulations, and compliance with new accounting
standards.
Noninterest expense for the quarter of $54.6 million increased by $6.4 million, or 13.4%, as compared to the same
period a year ago, mostly due to increased expenses associated with
organic growth, primarily in the mortgage and Wealth Management
divisions. Salaries and employee benefits and commissions increased
by $3.3 million, or 10.3%, mainly due
to an increase in the FTE count of approximately 120, or 9.5%, year
over year and 59, or 4.5%, during the quarter. Occupancy expense
increased by $687,000, or 17.1%, for
the quarter, mainly due to increases in rental and property tax
expenses as new mortgage production offices were established in
Florida.
Professional and other services expense increased by
$1.5 million, or 40.3%, for the
quarter, mostly due to an increase in expenses paid to outside
third parties as previously mentioned in the discussion of the
linked-quarter results.
Other noninterest expense increased by $1.0 million, or 11.6%, for the quarter, mainly
due to increases in operating costs as a result of the year over
year growth in locations, customers and transactions.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern
Corporation, through its operating subsidiaries, Fidelity Bank and
LionMark Insurance Company, provides banking services and Wealth
Management services and credit-related insurance products through
branches in Georgia and
Florida, and an insurance office
in Atlanta, Georgia. SBA, indirect
automobile, and mortgage loans are provided throughout the South
and parts of the Midwest. For additional information about
Fidelity's products and services, please visit the web site at
www.FidelitySouthern.com.
This news release contains forward-looking statements, as
defined by Federal Securities Laws, including statements about
financial outlook and business environment. These statements are
provided to assist in the understanding of future financial
performance and such performance involves risks and uncertainties
that may cause actual results to differ materially from those in
such statements. Any such statements are based on current
expectations and involve a number of risks and uncertainties. For a
discussion of factors that may cause such forward-looking
statements to differ materially from actual results, please refer
to the section entitled "Forward Looking Statements" from Fidelity
Southern Corporation's 2016 Annual Report filed on Form 10-K with
the Securities and Exchange Commission. Additional information and
other factors that could affect future financial results are
included in Fidelity's filings with the Securities and Exchange
Commission.
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
FINANCIAL
HIGHLIGHTS
|
(UNAUDITED)
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
|
|
As of or for the
Six Months Ended
|
($ in thousands,
except per share data)
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
|
|
June 30,
2017
|
|
June 30,
2016
|
INCOME STATEMENT
DATA:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
39,578
|
|
|
$
|
37,642
|
|
|
$
|
36,806
|
|
|
|
$
|
77,220
|
|
|
$
|
71,098
|
|
Interest
expense
|
5,832
|
|
|
5,408
|
|
|
4,963
|
|
|
|
11,240
|
|
|
9,961
|
|
Net interest
income
|
33,746
|
|
|
32,234
|
|
|
31,843
|
|
|
|
65,980
|
|
|
61,137
|
|
Provision for loan
losses
|
750
|
|
|
2,100
|
|
|
3,128
|
|
|
|
2,850
|
|
|
3,628
|
|
Noninterest
income
|
35,056
|
|
|
37,370
|
|
|
29,971
|
|
|
|
72,426
|
|
|
54,857
|
|
Noninterest
expense
|
54,551
|
|
|
50,572
|
|
|
48,125
|
|
|
|
105,122
|
|
|
94,683
|
|
Net income
|
8,892
|
|
|
10,527
|
|
|
6,645
|
|
|
|
19,419
|
|
|
11,186
|
|
PERFORMANCE:
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.26
|
|
|
|
$
|
0.74
|
|
|
$
|
0.45
|
|
Earnings per common
share - diluted
|
0.33
|
|
|
0.40
|
|
|
0.26
|
|
|
|
0.73
|
|
|
0.44
|
|
Total
revenues
|
74,634
|
|
|
75,012
|
|
|
66,777
|
|
|
|
149,646
|
|
|
125,955
|
|
Book value per common
share
|
14.21
|
|
|
14.09
|
|
|
13.17
|
|
|
|
14.21
|
|
|
13.17
|
|
Tangible book value
per common share
|
13.72
|
|
|
13.58
|
|
|
12.60
|
|
|
|
13.72
|
|
|
12.60
|
|
Cash dividends paid
per common share
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
|
0.24
|
|
|
0.24
|
|
Dividend payout
ratio
|
35.29
|
%
|
|
30.00
|
%
|
|
46.15
|
%
|
|
|
32.43
|
%
|
|
53.33
|
%
|
Return on average
assets
|
0.78
|
%
|
|
0.97
|
%
|
|
0.64
|
%
|
|
|
0.87
|
%
|
|
0.55
|
%
|
Return on average
shareholders' equity
|
10.06
|
%
|
|
11.78
|
%
|
|
8.07
|
%
|
|
|
10.87
|
%
|
|
7.03
|
%
|
Equity to assets
ratio
|
8.23
|
%
|
|
8.19
|
%
|
|
7.84
|
%
|
|
|
8.23
|
%
|
|
7.84
|
%
|
Net interest
margin
|
3.20
|
%
|
|
3.21
|
%
|
|
3.30
|
%
|
|
|
3.20
|
%
|
|
3.29
|
%
|
END OF PERIOD
BALANCE SHEET SUMMARY:
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
4,609,280
|
|
|
$
|
4,531,057
|
|
|
$
|
4,281,927
|
|
|
|
$
|
4,609,280
|
|
|
$
|
4,281,927
|
|
Earning
assets
|
4,267,358
|
|
|
4,192,919
|
|
|
3,860,181
|
|
|
|
4,267,358
|
|
|
3,860,181
|
|
Loans, excluding
Loans Held-for-Sale
|
3,332,132
|
|
|
3,354,926
|
|
|
3,190,707
|
|
|
|
3,332,132
|
|
|
3,190,707
|
|
Total
loans
|
3,726,842
|
|
|
3,716,043
|
|
|
3,649,736
|
|
|
|
3,726,842
|
|
|
3,649,736
|
|
Total
deposits
|
3,899,796
|
|
|
3,755,108
|
|
|
3,569,606
|
|
|
|
3,899,796
|
|
|
3,569,606
|
|
Shareholders'
equity
|
379,399
|
|
|
371,302
|
|
|
335,870
|
|
|
|
379,399
|
|
|
335,870
|
|
Assets serviced for
others
|
9,877,434
|
|
|
9,553,855
|
|
|
8,699,107
|
|
|
|
9,877,434
|
|
|
8,699,107
|
|
DAILY AVERAGE
BALANCE SHEET SUMMARY:
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
4,561,684
|
|
|
$
|
4,409,492
|
|
|
$
|
4,207,171
|
|
|
|
$
|
4,487,294
|
|
|
$
|
4,076,575
|
|
Earning
assets
|
4,245,954
|
|
|
4,082,544
|
|
|
3,804,751
|
|
|
|
4,164,250
|
|
|
3,694,547
|
|
Loans, excluding
Loans Held-for-Sale
|
3,339,694
|
|
|
3,320,992
|
|
|
3,161,676
|
|
|
|
3,330,343
|
|
|
3,094,142
|
|
Total
loans
|
3,736,026
|
|
|
3,718,260
|
|
|
3,590,929
|
|
|
|
3,727,143
|
|
|
3,482,436
|
|
Total
deposits
|
3,798,523
|
|
|
3,644,047
|
|
|
3,470,966
|
|
|
|
3,721,285
|
|
|
3,344,868
|
|
Shareholders'
equity
|
354,475
|
|
|
362,321
|
|
|
331,056
|
|
|
|
360,103
|
|
|
320,004
|
|
Assets serviced for
others
|
9,685,378
|
|
|
9,382,261
|
|
|
8,480,382
|
|
|
|
9,533,820
|
|
|
8,321,362
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans
|
0.09
|
%
|
|
0.16
|
%
|
|
0.25
|
%
|
|
|
0.14
|
%
|
|
0.12
|
%
|
Allowance to
period-end loans
|
0.91
|
%
|
|
0.91
|
%
|
|
0.88
|
%
|
|
|
0.91
|
%
|
|
0.88
|
%
|
Nonperforming assets
to total loans, ORE and repossessions
|
1.50
|
%
|
|
1.60
|
%
|
|
1.55
|
%
|
|
|
1.50
|
%
|
|
1.55
|
%
|
Allowance to
nonperforming loans, ORE and repossessions
|
0.54x
|
|
|
0.51x
|
|
|
0.49x
|
|
|
|
0.54x
|
|
|
0.49x
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
Loans to total
deposits
|
85.44
|
%
|
|
89.34
|
%
|
|
89.39
|
%
|
|
|
85.44
|
%
|
|
89.39
|
%
|
Average total loans
to average earning assets
|
87.99
|
%
|
|
91.08
|
%
|
|
94.38
|
%
|
|
|
89.50
|
%
|
|
94.26
|
%
|
Noninterest income to
total revenue
|
46.97
|
%
|
|
49.82
|
%
|
|
44.88
|
%
|
|
|
48.40
|
%
|
|
43.55
|
%
|
Leverage
ratio
|
8.36
|
%
|
|
8.48
|
%
|
|
8.46
|
%
|
|
|
8.36
|
%
|
|
8.46
|
%
|
Common equity tier 1
capital
|
8.61
|
%
|
|
8.37
|
%
|
|
8.18
|
%
|
|
|
8.61
|
%
|
|
8.18
|
%
|
Tier 1 risk-based
capital
|
9.76
|
%
|
|
9.51
|
%
|
|
9.35
|
%
|
|
|
9.76
|
%
|
|
9.35
|
%
|
Total risk-based
capital
|
12.47
|
%
|
|
12.20
|
%
|
|
12.06
|
%
|
|
|
12.47
|
%
|
|
12.06
|
%
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
|
|
($ in
thousands)
|
|
June
30,
2017
|
|
March
31,
2017
|
|
June
30,
2016
|
ASSETS
|
|
|
Cash and cash
equivalents
|
|
$
|
430,547
|
|
$
|
350,502
|
|
$
|
148,745
|
Investment securities
available-for-sale
|
|
|
130,371
|
|
|
139,071
|
|
|
168,938
|
Investment securities
held-to-maturity
|
|
|
15,593
|
|
|
15,977
|
|
|
17,224
|
Loans
held-for-sale
|
|
|
394,710
|
|
|
361,117
|
|
|
459,029
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
3,332,132
|
|
|
3,354,926
|
|
|
3,190,707
|
Allowance for loan
losses
|
|
|
(30,425)
|
|
|
(30,455)
|
|
|
(28,037)
|
Loans, net of
allowance for loan losses
|
|
|
3,301,707
|
|
|
3,324,471
|
|
|
3,162,670
|
Premises and
equipment, net
|
|
|
87,253
|
|
|
87,222
|
|
|
86,515
|
Other real estate,
net
|
|
|
9,382
|
|
|
11,284
|
|
|
18,621
|
Bank owned life
insurance
|
|
|
71,027
|
|
|
70,587
|
|
|
67,025
|
Servicing rights,
net
|
|
|
108,216
|
|
|
105,039
|
|
|
78,820
|
Other
assets
|
|
|
60,474
|
|
|
65,787
|
|
|
74,340
|
Total
assets
|
|
$
|
4,609,280
|
|
$
|
4,531,057
|
|
$
|
4,281,927
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
|
1,082,966
|
|
$
|
1,005,372
|
|
$
|
995,673
|
Interest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
Demand and money
market
|
|
|
1,436,005
|
|
|
1,321,936
|
|
|
1,154,024
|
Savings
|
|
|
336,695
|
|
|
381,751
|
|
|
368,333
|
Time
deposits
|
|
|
1,044,130
|
|
|
1,046,049
|
|
|
1,051,576
|
Total
deposits
|
|
|
3,899,796
|
|
|
3,755,108
|
|
|
3,569,606
|
Short-term
borrowings
|
|
|
164,896
|
|
|
239,466
|
|
|
215,833
|
Subordinated debt,
net
|
|
|
120,521
|
|
|
120,488
|
|
|
120,388
|
Other
liabilities
|
|
|
44,668
|
|
|
44,693
|
|
|
40,230
|
Total
liabilities
|
|
|
4,229,881
|
|
|
4,159,755
|
|
|
3,946,057
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
—
|
|
|
—
|
|
|
—
|
Common
stock
|
|
|
208,699
|
|
|
206,590
|
|
|
196,913
|
Accumulated other
comprehensive income, net
|
|
|
959
|
|
|
699
|
|
|
3,364
|
Retained
earnings
|
|
|
169,741
|
|
|
164,013
|
|
|
135,593
|
Total shareholders'
equity
|
|
|
379,399
|
|
|
371,302
|
|
|
335,870
|
Total liabilities and
shareholders' equity
|
|
$
|
4,609,280
|
|
$
|
4,531,057
|
|
$
|
4,281,927
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
|
|
For the Six Months
Ended
|
($ in thousands,
except per share data)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
|
|
June 30,
2017
|
|
June 30,
2016
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
37,560
|
|
|
$
|
36,083
|
|
|
$
|
35,244
|
|
|
|
$
|
73,643
|
|
|
$
|
68,189
|
|
Investment
securities
|
|
1,170
|
|
|
1,208
|
|
|
1,444
|
|
|
|
2,378
|
|
|
2,724
|
|
Other
|
|
848
|
|
|
351
|
|
|
118
|
|
|
|
1,199
|
|
|
185
|
|
Total interest
income
|
|
39,578
|
|
|
37,642
|
|
|
36,806
|
|
|
|
77,220
|
|
|
71,098
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
3,891
|
|
|
3,449
|
|
|
3,211
|
|
|
|
7,340
|
|
|
6,476
|
|
Short term
borrowings
|
|
502
|
|
|
392
|
|
|
311
|
|
|
|
894
|
|
|
605
|
|
Subordinated
debt
|
|
1,439
|
|
|
1,567
|
|
|
1,441
|
|
|
|
3,006
|
|
|
2,880
|
|
Total interest
expense
|
|
5,832
|
|
|
5,408
|
|
|
4,963
|
|
|
|
11,240
|
|
|
9,961
|
|
Net interest
income
|
|
33,746
|
|
|
32,234
|
|
|
31,843
|
|
|
|
65,980
|
|
|
61,137
|
|
Provision for loan
losses
|
|
750
|
|
|
2,100
|
|
|
3,128
|
|
|
|
2,850
|
|
|
3,628
|
|
Net interest
income after provision for loan losses
|
|
32,996
|
|
|
30,134
|
|
|
28,715
|
|
|
|
63,130
|
|
|
57,509
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,481
|
|
|
1,455
|
|
|
1,433
|
|
|
|
2,936
|
|
|
2,803
|
|
Other fees and
charges
|
|
2,021
|
|
|
1,871
|
|
|
1,858
|
|
|
|
3,892
|
|
|
3,524
|
|
Mortgage banking
activities
|
|
26,956
|
|
|
25,869
|
|
|
19,287
|
|
|
|
52,825
|
|
|
34,022
|
|
Indirect lending
activities
|
|
3,640
|
|
|
4,426
|
|
|
4,782
|
|
|
|
8,066
|
|
|
9,046
|
|
SBA lending
activities
|
|
681
|
|
|
1,818
|
|
|
1,893
|
|
|
|
2,499
|
|
|
3,127
|
|
Bank owned life
insurance
|
|
419
|
|
|
439
|
|
|
494
|
|
|
|
858
|
|
|
948
|
|
Securities
gains
|
|
—
|
|
|
—
|
|
|
200
|
|
|
|
—
|
|
|
282
|
|
Other
|
|
(142)
|
|
|
1,492
|
|
|
24
|
|
|
|
1,350
|
|
|
1,105
|
|
Total noninterest
income
|
|
35,056
|
|
|
37,370
|
|
|
29,971
|
|
|
|
72,426
|
|
|
54,857
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
25,852
|
|
|
25,438
|
|
|
22,576
|
|
|
|
51,290
|
|
|
45,630
|
|
Commissions
|
|
9,384
|
|
|
7,498
|
|
|
9,366
|
|
|
|
16,882
|
|
|
15,965
|
|
Occupancy,
net
|
|
4,700
|
|
|
4,163
|
|
|
4,013
|
|
|
|
8,863
|
|
|
8,397
|
|
Professional and
other services
|
|
5,052
|
|
|
4,067
|
|
|
3,600
|
|
|
|
9,119
|
|
|
7,633
|
|
Other
|
|
9,563
|
|
|
9,406
|
|
|
8,570
|
|
|
|
18,969
|
|
|
17,058
|
|
Total noninterest
expense
|
|
54,551
|
|
|
50,572
|
|
|
48,125
|
|
|
|
105,123
|
|
|
94,683
|
|
Income before
income tax expense
|
|
13,501
|
|
|
16,932
|
|
|
10,561
|
|
|
|
30,433
|
|
|
17,683
|
|
Income tax
expense
|
|
4,609
|
|
|
6,405
|
|
|
3,916
|
|
|
|
11,014
|
|
|
6,497
|
|
NET
INCOME
|
|
$
|
8,892
|
|
|
$
|
10,527
|
|
|
$
|
6,645
|
|
|
|
$
|
19,419
|
|
|
$
|
11,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.26
|
|
|
|
$
|
0.74
|
|
|
$
|
0.45
|
|
Diluted
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
|
$
|
0.26
|
|
|
|
$
|
0.73
|
|
|
$
|
0.44
|
|
Weighted average
common shares outstanding-basic
|
|
26,433
|
|
|
26,335
|
|
|
25,481
|
|
|
|
26,384
|
|
|
24,877
|
|
Weighted average
common shares outstanding-diluted
|
|
26,547
|
|
|
26,477
|
|
|
25,961
|
|
|
|
26,512
|
|
|
25,401
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
LOANS BY
CATEGORY
|
(UNAUDITED)
|
|
($ in
thousands)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
Commercial
|
|
$
|
796,699
|
|
|
$
|
802,905
|
|
|
$
|
784,737
|
|
|
$
|
789,674
|
|
|
$
|
797,286
|
|
SBA
|
|
145,311
|
|
|
149,727
|
|
|
149,779
|
|
|
145,890
|
|
|
144,083
|
|
Total commercial and
SBA loans
|
|
942,010
|
|
|
952,632
|
|
|
934,516
|
|
|
935,564
|
|
|
941,369
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
|
248,926
|
|
|
249,465
|
|
|
238,910
|
|
|
228,887
|
|
|
217,568
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
automobile
|
|
1,531,761
|
|
|
1,565,298
|
|
|
1,575,865
|
|
|
1,631,903
|
|
|
1,512,406
|
|
Installment loans and
personal lines of credit
|
|
31,225
|
|
|
31,647
|
|
|
33,225
|
|
|
34,181
|
|
|
46,532
|
|
Total consumer
loans
|
|
1,562,986
|
|
|
1,596,945
|
|
|
1,609,090
|
|
|
1,666,084
|
|
|
1,558,938
|
|
Residential
mortgage
|
|
433,544
|
|
|
418,941
|
|
|
386,582
|
|
|
370,465
|
|
|
336,896
|
|
Home equity lines of
credit
|
|
144,666
|
|
|
136,943
|
|
|
133,166
|
|
|
131,311
|
|
|
135,936
|
|
Total mortgage
loans
|
|
578,210
|
|
|
555,884
|
|
|
519,748
|
|
|
501,776
|
|
|
472,832
|
|
Loans held for
investment
|
|
3,332,132
|
|
|
3,354,926
|
|
|
3,302,264
|
|
|
3,332,311
|
|
|
3,190,707
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
279,292
|
|
|
201,661
|
|
|
252,712
|
|
|
291,030
|
|
|
299,616
|
|
SBA
|
|
15,418
|
|
|
9,456
|
|
|
12,616
|
|
|
10,587
|
|
|
9,413
|
|
Indirect
automobile
|
|
100,000
|
|
|
150,000
|
|
|
200,000
|
|
|
150,000
|
|
|
150,000
|
|
Total loans
held-for-sale
|
|
394,710
|
|
|
361,117
|
|
|
465,328
|
|
|
451,617
|
|
|
459,029
|
|
Total loans
|
|
$
|
3,726,842
|
|
|
$
|
3,716,043
|
|
|
$
|
3,767,592
|
|
|
$
|
3,783,928
|
|
|
$
|
3,649,736
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncovered
loans
|
|
$
|
3,324,024
|
|
|
$
|
3,345,667
|
|
|
$
|
3,286,336
|
|
|
$
|
3,315,448
|
|
|
$
|
3,171,137
|
|
Covered
loans
|
|
8,108
|
|
|
9,259
|
|
|
15,928
|
|
|
16,863
|
|
|
19,570
|
|
Loans
held-for-sale
|
|
394,710
|
|
|
361,117
|
|
|
465,328
|
|
|
451,617
|
|
|
459,029
|
|
Total loans
|
|
$
|
3,726,842
|
|
|
$
|
3,716,043
|
|
|
$
|
3,767,592
|
|
|
$
|
3,783,928
|
|
|
$
|
3,649,736
|
|
|
DEPOSITS BY
CATEGORY
|
|
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
($ in
thousands)
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
Noninterest-bearing
demand deposits
|
$
|
1,027,909
|
|
|
—
|
%
|
|
$
|
961,188
|
|
|
—
|
%
|
|
$
|
978,909
|
|
|
—
|
%
|
|
$
|
1,004,924
|
|
|
—
|
%
|
|
$
|
932,448
|
|
|
—
|
%
|
Interest-bearing
demand deposits
|
1,363,651
|
|
|
0.37
|
%
|
|
1,244,955
|
|
|
0.31
|
%
|
|
1,179,837
|
|
|
0.25
|
%
|
|
1,151,152
|
|
|
0.26
|
%
|
|
1,129,179
|
|
|
0.26
|
%
|
Savings
deposits
|
357,712
|
|
|
0.32
|
%
|
|
387,007
|
|
|
0.36
|
%
|
|
350,885
|
|
|
0.33
|
%
|
|
370,011
|
|
|
0.35
|
%
|
|
355,801
|
|
|
0.32
|
%
|
Time
deposits
|
1,049,248
|
|
|
0.90
|
%
|
|
1,050,897
|
|
|
0.83
|
%
|
|
1,052,082
|
|
|
0.89
|
%
|
|
1,047,044
|
|
|
0.86
|
%
|
|
1,053,538
|
|
|
0.84
|
%
|
Total average
deposits
|
$
|
3,798,520
|
|
|
0.41
|
%
|
|
$
|
3,644,047
|
|
|
0.38
|
%
|
|
$
|
3,561,713
|
|
|
0.38
|
%
|
|
$
|
3,573,131
|
|
|
0.37
|
%
|
|
$
|
3,470,966
|
|
|
0.37
|
%
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
NONPERFORMING AND
CLASSIFIED ASSETS
|
(UNAUDITED)
|
|
($ in
thousands)
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
(2) (6)
|
$
|
37,894
|
|
|
$
|
38,377
|
|
|
$
|
35,358
|
|
|
$
|
32,796
|
|
|
$
|
33,435
|
|
Loans past due 90
days or more and still accruing
|
7,210
|
|
|
8,414
|
|
|
6,189
|
|
|
6,140
|
|
|
3,653
|
|
Repossessions
|
1,779
|
|
|
1,654
|
|
|
2,274
|
|
|
1,747
|
|
|
1,067
|
|
Other real estate
(ORE)
|
9,382
|
|
|
11,284
|
|
|
14,814
|
|
|
16,926
|
|
|
18,621
|
|
Nonperforming
assets
|
$
|
56,265
|
|
|
$
|
59,729
|
|
|
$
|
58,635
|
|
|
$
|
57,609
|
|
|
$
|
56,776
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
7,181
|
|
|
$
|
11,735
|
|
|
$
|
7,707
|
|
|
$
|
7,304
|
|
|
$
|
6,705
|
|
Loans 30-89 days past
due to loans
|
0.22
|
%
|
|
0.35
|
%
|
|
0.23
|
%
|
|
0.22
|
%
|
|
0.21
|
%
|
Loans past due 90
days or more and still accruing to loans
|
0.22
|
%
|
|
0.25
|
%
|
|
0.19
|
%
|
|
0.18
|
%
|
|
0.11
|
%
|
Nonperforming loans
as a % of loans
|
1.35
|
%
|
|
1.39
|
%
|
|
1.26
|
%
|
|
1.17
|
%
|
|
1.16
|
%
|
Nonperforming assets
to loans, ORE, and repossessions
|
1.51
|
%
|
|
1.60
|
%
|
|
1.55
|
%
|
|
1.51
|
%
|
|
1.55
|
%
|
Classified Asset
Ratio(4)
|
20.14
|
%
|
|
20.97
|
%
|
|
21.22
|
%
|
|
21.47
|
%
|
|
21.79
|
%
|
ALL to nonperforming
loans
|
67.46
|
%
|
|
65.09
|
%
|
|
71.81
|
%
|
|
76.38
|
%
|
|
75.60
|
%
|
Net charge-offs,
annualized to average loans
|
0.09
|
%
|
|
0.16
|
%
|
|
0.28
|
%
|
|
—
|
%
|
|
0.25
|
%
|
ALL as a % of
loans
|
0.91
|
%
|
|
0.91
|
%
|
|
0.90
|
%
|
|
0.89
|
%
|
|
0.88
|
%
|
ALL as a % of loans,
excluding acquired loans(5)
|
0.98
|
%
|
|
0.98
|
%
|
|
0.99
|
%
|
|
0.98
|
%
|
|
0.97
|
%
|
|
|
|
|
|
|
|
|
|
|
CLASSIFIED
ASSETS
|
|
|
|
|
|
|
|
|
|
Classified
loans(1)
|
$
|
71,040
|
|
|
$
|
71,082
|
|
|
$
|
68,128
|
|
|
$
|
67,826
|
|
|
$
|
62,120
|
|
ORE and
repossessions
|
11,162
|
|
|
12,938
|
|
|
17,088
|
|
|
16,792
|
|
|
16,396
|
|
Total classified
assets(3)
|
$
|
82,202
|
|
|
$
|
84,020
|
|
|
$
|
85,216
|
|
|
$
|
84,618
|
|
|
$
|
78,516
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amount of SBA guarantee included in classified
loans
|
$
|
7,458
|
|
|
$
|
5,213
|
|
|
$
|
7,735
|
|
|
$
|
8,665
|
|
|
$
|
5,007
|
|
(2)
Amount of repurchased government-guaranteed loans, primarily
residential mortgage loans, included in nonaccrual
loans
|
$
|
12,502
|
|
|
$
|
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)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
Average loans
outstanding(1)
|
|
$
|
1,675,644
|
|
|
$
|
1,756,958
|
|
|
$
|
1,702,006
|
|
|
$
|
1,726,342
|
|
|
$
|
1,642,829
|
|
Loans serviced for
others
|
|
1,216,296
|
|
|
1,197,160
|
|
|
1,130,289
|
|
|
1,152,636
|
|
|
1,219,909
|
|
Past due
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Amount 30+ days past
due
|
|
1,535
|
|
|
2,223
|
|
|
2,972
|
|
|
1,585
|
|
|
1,588
|
|
|
Number 30+ days past
due
|
|
143
|
|
|
200
|
|
|
252
|
|
|
135
|
|
|
129
|
|
30+ day performing
delinquency rate(2)
|
|
0.09
|
%
|
|
0.13
|
%
|
|
0.17
|
%
|
|
0.09
|
%
|
|
0.10
|
%
|
Nonperforming
loans
|
|
$
|
1,363
|
|
|
$
|
1,778
|
|
|
$
|
1,278
|
|
|
$
|
1,231
|
|
|
$
|
887
|
|
Nonperforming loans
as a percentage of period end loans(2)
|
|
0.08
|
%
|
|
0.10
|
%
|
|
0.07
|
%
|
|
0.07
|
%
|
|
0.05
|
%
|
Net
charge-offs
|
|
$
|
1,332
|
|
|
$
|
1,502
|
|
|
$
|
1,306
|
|
|
$
|
895
|
|
|
$
|
751
|
|
Net charge-off
rate(3)
|
|
0.35
|
%
|
|
0.39
|
%
|
|
0.32
|
%
|
|
0.23
|
%
|
|
0.20
|
%
|
Number of vehicles
repossessed during the period
|
|
147
|
|
|
154
|
|
|
164
|
|
|
145
|
|
|
120
|
|
Average beacon
score
|
|
758
|
|
|
758
|
|
|
758
|
|
|
758
|
|
|
756
|
|
Production by
state:
|
|
|
|
|
|
|
|
|
|
|
|
Alabama
|
|
$
|
10,399
|
|
|
$
|
14,452
|
|
|
$
|
11,613
|
|
|
$
|
18,296
|
|
|
$
|
21,820
|
|
|
Arkansas
|
|
26,569
|
|
|
33,602
|
|
|
32,789
|
|
|
48,143
|
|
|
44,548
|
|
|
Florida
|
|
49,976
|
|
|
65,053
|
|
|
56,432
|
|
|
71,530
|
|
|
77,108
|
|
|
Georgia
|
|
28,091
|
|
|
36,178
|
|
|
29,150
|
|
|
43,948
|
|
|
51,253
|
|
|
Louisiana
|
|
45,306
|
|
|
56,046
|
|
|
49,849
|
|
|
57,039
|
|
|
60,557
|
|
|
Mississippi
|
|
20,136
|
|
|
21,370
|
|
|
17,784
|
|
|
26,260
|
|
|
28,414
|
|
|
North
Carolina
|
|
14,110
|
|
|
15,858
|
|
|
13,734
|
|
|
21,874
|
|
|
25,159
|
|
|
Oklahoma
|
|
1,051
|
|
|
1,635
|
|
|
1,780
|
|
|
945
|
|
|
1,238
|
|
|
South
Carolina
|
|
11,232
|
|
|
15,020
|
|
|
11,953
|
|
|
14,146
|
|
|
17,031
|
|
|
Tennessee
|
|
10,012
|
|
|
14,143
|
|
|
12,963
|
|
|
18,661
|
|
|
21,683
|
|
|
Texas
|
|
26,542
|
|
|
32,902
|
|
|
24,942
|
|
|
31,851
|
|
|
32,522
|
|
|
Virginia
|
|
6,292
|
|
|
10,282
|
|
|
6,063
|
|
|
8,937
|
|
|
12,546
|
|
|
|
Total production by
state
|
|
$
|
249,716
|
|
|
$
|
316,541
|
|
|
$
|
269,052
|
|
|
$
|
361,630
|
|
|
$
|
393,879
|
|
Loan sales
|
|
$
|
151,996
|
|
|
$
|
192,435
|
|
|
$
|
97,916
|
|
|
$
|
64,793
|
|
|
$
|
175,991
|
|
Portfolio
yield(1)
|
|
2.84
|
%
|
|
2.87
|
%
|
|
2.88
|
%
|
|
2.81
|
%
|
|
2.77
|
%
|
|
|
(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)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
Marketing gain,
net
|
|
$
|
21,355
|
|
|
$
|
18,677
|
|
|
$
|
19,364
|
|
|
$
|
25,240
|
|
|
$
|
22,734
|
|
Origination points
and fees
|
|
4,189
|
|
|
3,021
|
|
|
3,786
|
|
|
3,911
|
|
|
4,101
|
|
Loan servicing
revenue
|
|
5,379
|
|
|
5,341
|
|
|
5,088
|
|
|
4,896
|
|
|
4,631
|
|
Gross mortgage
revenue
|
|
$
|
30,923
|
|
|
$
|
27,039
|
|
|
$
|
28,238
|
|
|
$
|
34,047
|
|
|
$
|
31,466
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
MSR
amortization
|
|
(3,331)
|
|
|
(3,158)
|
|
|
(3,918)
|
|
|
(4,414)
|
|
|
(3,610)
|
|
MSR (impairment) /
recovery, net
|
|
(636)
|
|
|
1,989
|
|
|
13,144
|
|
|
458
|
|
|
(8,569)
|
|
Total income from
mortgage banking activities
|
|
$
|
26,956
|
|
|
$
|
25,870
|
|
|
$
|
37,464
|
|
|
$
|
30,091
|
|
|
$
|
19,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
MORTGAGE LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
Production by
region:
|
|
|
|
|
|
|
|
|
|
|
|
Georgia
|
|
$
|
519,497
|
|
|
$
|
395,404
|
|
|
$
|
532,177
|
|
|
$
|
580,170
|
|
|
$
|
526,446
|
|
|
Florida
|
|
95,983
|
|
|
46,365
|
|
|
46,140
|
|
|
44,849
|
|
|
45,339
|
|
|
Alabama/Tennessee(2)
|
|
7,294
|
|
|
3,600
|
|
|
5,485
|
|
|
7,307
|
|
|
8,892
|
|
|
Virginia/Maryland
|
|
143,885
|
|
|
81,901
|
|
|
139,283
|
|
|
160,959
|
|
|
160,644
|
|
|
North and South
Carolina
|
|
33,767
|
|
|
25,727
|
|
|
33,783
|
|
|
31,332
|
|
|
33,497
|
|
|
Total
retail
|
|
800,426
|
|
|
552,997
|
|
|
756,868
|
|
|
824,617
|
|
|
774,818
|
|
|
Wholesale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,507
|
|
|
40,233
|
|
|
Total production by
region
|
|
$
|
800,426
|
|
|
$
|
552,997
|
|
|
$
|
756,868
|
|
|
$
|
828,124
|
|
|
$
|
815,051
|
|
|
|
|
|
|
|
|
|
|
|
|
% for
purchases
|
89.6
|
%
|
|
80.9
|
%
|
|
61.3
|
%
|
|
66.7
|
%
|
|
76.8
|
%
|
% for refinance
loans
|
10.4
|
%
|
|
19.1
|
%
|
|
38.7
|
%
|
|
33.3
|
%
|
|
23.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Production
|
|
$
|
46,902
|
|
|
$
|
51,061
|
|
|
$
|
38,907
|
|
|
$
|
45,586
|
|
|
$
|
47,847
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded loan type
(UPB):
|
|
|
|
|
|
|
|
|
|
|
|
|
Conventional
|
|
62.5
|
%
|
|
63.9
|
%
|
|
68.9
|
%
|
|
68.9
|
%
|
|
65.9
|
%
|
|
|
FHA/VA/USDA
|
|
24.6
|
%
|
|
24.2
|
%
|
|
21.6
|
%
|
|
22.2
|
%
|
|
23.3
|
%
|
|
|
Jumbo
|
|
12.9
|
%
|
|
11.9
|
%
|
|
9.5
|
%
|
|
8.9
|
%
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross pipeline of
locked loans to be sold (UPB)
|
|
$
|
360,551
|
|
|
$
|
374,739
|
|
|
$
|
211,921
|
|
|
$
|
394,773
|
|
|
$
|
387,777
|
|
Loans held for sale
(UPB)
|
|
$
|
271,714
|
|
|
$
|
195,772
|
|
|
$
|
250,094
|
|
|
$
|
281,418
|
|
|
$
|
288,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan sales
(UPB)
|
|
$
|
689,073
|
|
|
$
|
566,003
|
|
|
$
|
758,775
|
|
|
$
|
796,379
|
|
|
$
|
712,712
|
|
|
|
Conventional
|
|
63.6
|
%
|
|
69.9
|
%
|
|
72.8
|
%
|
|
70.0
|
%
|
|
70.5
|
%
|
|
|
FHA/VA/USDA
|
|
26.6
|
%
|
|
23.0
|
%
|
|
22.6
|
%
|
|
24.0
|
%
|
|
23.0
|
%
|
|
|
Jumbo
|
|
9.8
|
%
|
|
7.1
|
%
|
|
4.6
|
%
|
|
6.0
|
%
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
outstanding(1)
|
|
$
|
664,099
|
|
|
$
|
592,537
|
|
|
$
|
634,511
|
|
|
$
|
635,529
|
|
|
$
|
598,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
Loans serviced for
others (UPB)
|
|
$
|
8,357,934
|
|
|
$
|
8,067,426
|
|
|
$
|
7,787,470
|
|
|
$
|
7,489,954
|
|
|
$
|
7,200,540
|
|
Average loans
serviced for others (UPB)
|
|
$
|
8,304,065
|
|
|
$
|
8,013,761
|
|
|
$
|
7,625,384
|
|
|
$
|
7,337,291
|
|
|
$
|
7,022,718
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR book value, net
of amortization
|
|
$
|
102,549
|
|
|
$
|
98,550
|
|
|
$
|
95,282
|
|
|
$
|
90,982
|
|
|
$
|
87,652
|
|
MSR
impairment
|
|
(7,799)
|
|
|
(7,163)
|
|
|
(9,152)
|
|
|
(22,295)
|
|
|
(22,753)
|
|
MSR net carrying
value
|
|
$
|
94,750
|
|
|
$
|
91,387
|
|
|
$
|
86,130
|
|
|
$
|
68,687
|
|
|
$
|
64,899
|
|
MSR carrying value as
a % of period end UPB
|
|
1.13
|
%
|
|
1.13
|
%
|
|
1.11
|
%
|
|
0.92
|
%
|
|
0.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency % loans
serviced for others
|
|
1.02
|
%
|
|
0.53
|
%
|
|
0.69
|
%
|
|
0.76
|
%
|
|
0.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR revenue
multiple(1)
|
|
4.38
|
|
|
4.25
|
|
|
4.14
|
|
|
3.44
|
|
|
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
NET INTEREST
MARGIN
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
($ in
thousands)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of
unearned income (1)
|
$
|
3,736,026
|
|
|
4.04
|
%
|
|
$
|
3,718,260
|
|
|
3.94
|
%
|
|
$
|
3,590,929
|
|
|
3.95
|
%
|
Investment securities
(1)
|
164,037
|
|
|
2.97
|
%
|
|
171,853
|
|
|
3.02
|
%
|
|
202,000
|
|
|
2.97
|
%
|
Other earning
assets
|
345,891
|
|
|
0.98
|
%
|
|
192,431
|
|
|
0.74
|
%
|
|
99,037
|
|
|
0.48
|
%
|
Total
interest-earning assets
|
4,245,954
|
|
|
3.75
|
%
|
|
4,082,544
|
|
|
3.75
|
%
|
|
3,891,966
|
|
|
3.81
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
44,132
|
|
|
|
|
38,578
|
|
|
|
|
29,956
|
|
|
|
Allowance for loan
losses
|
(30,116)
|
|
|
|
|
(29,788)
|
|
|
|
|
(26,674)
|
|
|
|
Premises and
equipment, net
|
87,332
|
|
|
|
|
87,792
|
|
|
|
|
88,070
|
|
|
|
Other real
estate
|
10,907
|
|
|
|
|
14,147
|
|
|
|
|
19,481
|
|
|
|
Other
assets
|
203,475
|
|
|
|
|
216,219
|
|
|
|
|
204,372
|
|
|
|
Total
noninterest-earning assets
|
315,730
|
|
|
|
|
326,948
|
|
|
|
|
315,205
|
|
|
|
Total
assets
|
$
|
4,561,684
|
|
|
|
|
$
|
4,409,492
|
|
|
|
|
$
|
4,207,171
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money
market deposits
|
$
|
1,363,651
|
|
|
0.37
|
%
|
|
$
|
1,244,955
|
|
|
0.31
|
%
|
|
$
|
1,129,179
|
|
|
0.26
|
%
|
Savings
deposits
|
357,712
|
|
|
0.32
|
%
|
|
387,007
|
|
|
0.36
|
%
|
|
355,801
|
|
|
0.32
|
%
|
Time
deposits
|
1,049,248
|
|
|
0.90
|
%
|
|
1,050,897
|
|
|
0.83
|
%
|
|
1,053,538
|
|
|
0.84
|
%
|
Total
interest-bearing deposits
|
2,770,611
|
|
|
0.56
|
%
|
|
2,682,859
|
|
|
0.52
|
%
|
|
2,538,518
|
|
|
0.51
|
%
|
Other short-term
borrowings
|
243,359
|
|
|
0.83
|
%
|
|
245,262
|
|
|
0.65
|
%
|
|
244,944
|
|
|
0.51
|
%
|
Subordinated
debt
|
120,505
|
|
|
4.79
|
%
|
|
120,472
|
|
|
5.28
|
%
|
|
120,372
|
|
|
4.81
|
%
|
Total
interest-bearing liabilities
|
3,134,475
|
|
|
0.75
|
%
|
|
3,048,593
|
|
|
0.72
|
%
|
|
2,903,834
|
|
|
0.69
|
%
|
Noninterest-bearing liabilities and shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
1,027,909
|
|
|
|
|
961,188
|
|
|
|
|
932,448
|
|
|
|
Other
liabilities
|
44,825
|
|
|
|
|
37,390
|
|
|
|
|
39,833
|
|
|
|
Shareholders'
equity
|
354,475
|
|
|
|
|
362,321
|
|
|
|
|
331,056
|
|
|
|
Total
noninterest-bearing liabilities and
shareholders' equity
|
1,427,209
|
|
|
|
|
1,360,899
|
|
|
|
|
1,303,337
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,561,684
|
|
|
|
|
$
|
4,409,492
|
|
|
|
|
$
|
4,207,171
|
|
|
|
Net interest
spread
|
|
|
3.00
|
%
|
|
|
|
3.03
|
%
|
|
|
|
3.12
|
%
|
Net interest
margin
|
|
|
3.20
|
%
|
|
|
|
3.21
|
%
|
|
|
|
3.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Yield / Rate is calculated using interest income
including the effect of taxable-equivalent adjustments utilizing a
35% tax rate.
|
|
|
|
|
Contacts:
|
Martha Fleming,
Charles D. Christy
|
|
Fidelity Southern
Corporation (404) 240-1504
|
View original
content:http://www.prnewswire.com/news-releases/fidelity-southern-corporation-reports-earnings-for-second-quarter-of-89-million-300491642.html
SOURCE Fidelity Southern Corporation