ATLANTA, April 19, 2018
/PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or
the "Company") (NASDAQ: LION), holding company for Fidelity Bank
(the "Bank"), today reported net income of $11.8 million, or $0.43 per diluted share, for the first quarter of
2018, compared with $12.4 million, or
$0.46 per diluted share, for the
fourth quarter of 2017, and with $10.5
million, or $0.40 per diluted
share for the first quarter of 2017.
Fidelity's Chairman, Jim Miller,
said, "We are pleased with the results for this quarter as our
commercial bank continues to show great progress. The investment we
made in our mortgage company over the past year greatly paid off as
we saw continued growth and profitability from this line of
business. Market pressures continue to change in regards to the
indirect auto business. As such, we recently announced the closure
of our indirect auto business from Virginia, Louisiana, and Arkansas in order to better align our
operations to the declining demand for this product."
President Palmer Proctor added,
"The momentum we started last quarter has continued this quarter in
growing higher yielding assets and core deposits. This is our key
strategy in our ongoing effort to position the bank for future
growth and prosperity. Our SBA and mortgage divisions continue to
expand into new markets and our investment in experienced lenders
for our commercial bank has already paid off. We are pleased with
the progress of our strategic objectives, including improvements to
our technology and infrastructure, that will allow us to become a
more efficient and effective financial institution."
BALANCE SHEET
Total assets grew by $234.8 million, or 5.1%, during the quarter, to
$4.8 billion at March 31, 2018,
compared to $4.6 billion at
December 31, 2017, primarily due to total loan growth of
$200.9 million, mainly in the
commercial and mortgage loan portfolios. Cash balances contributed
$14.2 million to the increase and
servicing rights increased by $6.9
million, primarily due to mortgage servicing rights ("MSRs")
impairment recovery of $4.5 million
during the quarter. Other assets also increased by $9.2 million, of which $8.7 million was an increase in FHLB stock.
Asset growth for the quarter was funded by $78.1 million in core deposit growth,
$187.2 million increase in short-term
borrowings, primarily FHLB borrowings, offset by a $44.9 million reduction in time deposits, mainly
brokered deposits.
Loans
The increase in total loans, including loans
held for sale, during the quarter of $200.9
million, or 5.1%, to $4.1
billion at March 31, 2018, was primarily driven by
increases of $110.8 million in
mortgage, $91.4 million in commercial
and SBA, and $17.5 million in
construction. The commercial loan production momentum that began in
the 4th quarter of 2017 continued to be strong as we continue to
implement strategies that will grow our commercial bank.
Partially offsetting these increases was a decrease of $25.0 million in the indirect loan portfolio held
for sale. While loan sales were seasonally higher for the
linked quarter, investor demand for the indirect product has
declined, resulting in lower production.
The increase in loans held for sale of $67.5 million, or 18.9%, during the quarter,
occurred as the pipeline for expected mortgage loan sales grew due
to the decision to slightly extend the holding period of loans
prior to sale in the secondary market in an effort to increase
total income.
Asset Quality
Asset quality remained strong, although
nonperforming assets increased during the quarter, excluding the
guaranteed portion of government loans ("adjusted NPA's") and
acquired loans. Adjusted NPA's, a non-GAAP measure, increased by
$4.5 million during the quarter. The
increase was mainly due to two large commercial real estate loans
added to nonaccrual during the quarter. The provision for loan
losses increased by $2.1 million,
mainly due to the growth of our commercial loan portfolio and
several NPA-related specific reserves. Net charge-offs continued to
trend low at 0.1% of average loans for the quarter.
Fair Value Adjustments
Loan servicing rights increased
by $6.9 million, or 6.2%, during the
quarter, to $119.6 million at
March 31, 2018, compared to $112.6
million at December 31, 2017. MSRs, the primary
component of loan servicing rights, contributed the majority of the
change, increasing by 7.2%, to $107.9
million at March 31, 2018, as an increase in market
interest rates drove the impairment recovery of $4.5 million for the quarter. MSRs also
increased due to mortgage loan sales with servicing retained of
$431.6 million for the quarter. The
current estimated fair market value of MSRs was $113.2 million at March 31, 2018.
At March 31, 2018, fair value adjustments recorded on the
balance sheet for loans held for sale, interest rate lock
commitments ("IRLCs"), and hedge items were $12.7 million, a $2.3
million, or 22.8% increase, from December 31, 2017 due
to growth in both loans held for sale (as previously discussed) and
the gross pipeline of IRLCs.
Deposits
Core deposit growth was strong for the
quarter as demand, money market and savings deposits grew by
$78.1 million, or 2.65%, to
$3.0 billion. Money market
account promotions continued and new deposit accounts from
commercial loan relationships began to fund. Three new
branches recently opened in Georgia and Florida also contributed to deposit growth in
the first quarter.
The enhanced core deposit base has allowed the Bank to be more
relationship-oriented in its approach to time deposits and non-core
brokered CD's. Time deposits decreased by $44.9 million during the quarter, primarily due
to the run off in brokered deposits of $40.0 million, resulting in a net increase in
deposits of $33.2 million, or
0.86%.
INCOME STATEMENT
Net Income
Net income was $11.8
million, or $0.7 million less
than the previous quarter, primarily due to the one-time income tax
benefit of $4.9 million recorded in
the previous quarter to revalue the deferred tax liability at
December 31, 2017. The deferred
tax liability was revalued as a result of the reduction of the
federal corporate income tax rate from 35% to 21% following the
enactment of the Tax Cuts and Jobs Act on December 22, 2017.
Pre-tax income was $3.2 million
higher than the previous quarter, primarily due to higher
noninterest income driven by the previously noted MSRs impairment
recovery of $4.5 million, partially
offset by a decrease in net interest income of $1.1 million as higher-cost short term borrowings
increased relative to deposits to finance higher loan production in
the first quarter. Noninterest expense also increased
by $1.8 million due to increased
salaries and benefits.
Net income was $1.2 million higher
compared to the same quarter a year ago, primarily due to a
decrease of $3.1 million in income
tax expense from the change in the federal tax rate as discussed
above. Pre-tax income was $1.9
million lower for the quarter. Higher net interest income of
$2.5 million was the result of an
increase of 13 basis points in loan yields and growth in average
loans of $259.1 million, which was
offset by $4.2 million in
higher noninterest expense primarily salaries and benefits. The
increase in loan yield was partially driven by a relatively larger
increase in higher yielding commercial loans and the three
increases to the fed funds rate in 2017 of 75 basis points in
total.
Interest Income
Interest income of $41.6 million was flat compared to the prior
quarter. An increase in average loans of $144.9 million drove higher interest income which
was offset by loan yields that decreased by 8 basis points.
Excluding the variance of 6 basis points in accretable yield, the
yield decreased by 2 basis points for the quarter. Interest income
on loans for the previous quarter included $1.2 million in accretable yield earned on the
purchased credit impaired ("PCI") loan portfolio, compared to
$569,000 in the current quarter.
As compared to the same period in the prior year, interest
income increased by $3.9 million, or
10.4%, as the yield on loans increased by 13 basis points,
primarily in the commercial, construction, and mortgage loan
portfolios, mainly due to the increases in the prime rate of 75
basis points during 2017.
Interest Expense
Interest expense of $6.8 million increased by $1.0 million, or 17.6%, for the quarter,
primarily due to increased higher-cost short term borrowings as
previously discussed and a 5 basis point increase in deposit cost,
due primarily to CD special pricing increases and new
Florida and Georgia promotional money market products and
rates. The yield paid on short-term borrowings increased 134 basis
points due to the significant use of FHLB borrowings during the
quarter which carry higher rates.
As compared to the same period in the prior year, interest
expense increased by $1.4 million, or
25.6%.
Net Interest Margin
The net interest margin was 3.29%
for the quarter compared to 3.42% in the previous quarter, a
decrease of 13 basis points, primarily due to the higher interest
income in the previous quarter in the PCI loan portfolio as noted
above. The yield on total average earning assets also
decreased from 3.97% to 3.93%. Average loans increased by
$144.9 million with an 8 basis point
decrease in yield, primarily due to decreases in yield on
commercial and SBA loans. Excluding the variance of 6 basis points
in accretable yield, the yield decreased by 2 basis points for the
quarter.
Average interest-bearing liabilities increased by $119.5 million, primarily driven by the increase
in borrowings for the quarter of $204.3
million to fund loan growth. This increase was offset
by a decrease in average interest-bearing deposits of
$84.8 million for the quarter.
As compared to the same period a year ago, the net interest
margin for the quarter increased by 8 basis points to 3.29% from
3.21%, primarily due to a 13 basis point increase in the yield on
average loans of $4.0 billion, offset
by an increase of 18 basis points in the yield on total
interest-bearing liabilities of $3.1
billion. Average earning assets increased by $207.5 million, primarily due to an increase in
average loans over the year. Average interest-bearing liabilities
increased by $16.4 million, primarily
driven by an increase in average interest-bearing deposits of
$26.1 million, offset by a decrease
in average borrowings of $9.7
million. Year over year, the deposit marketing campaigns in
Florida have successfully
increased average deposits and new commercial deposit
relationships.
Noninterest Income
On a linked-quarter basis,
noninterest income increased by $8.2
million, or 28.5%, largely due to a net increase in income
from mortgage banking activities of $7.6
million, or 36.5%, including a $6.0
million recovery on the valuation of MSR and a $3.5 million gain from the fair value adjustment
related to mortgage loans held for sale, pipeline of interest rate
lock commitments, and related hedge items.
Compared to the same period a year ago, noninterest income for
the quarter of $37.1 million
decreased by $237,000, or 0.6%,
primarily due to a net decrease in income from indirect lending
activities of $2.3 million, due to a
decrease in loan sales over the year as investor demand declined.
This decrease was offset by an increase in mortgage banking
activities of $2.7 million, or 10.4%,
stemming from a change in MSRs impairment/recovery of $2.6 million.
Noninterest Expense
On a linked-quarter basis, total
noninterest expense increased due to an increase in salaries and
employee benefits expense and loan related expenses. The increase
in salaries and benefits of $1.8
million resulted from a normal increase in payroll taxes in
the first quarter, as well as an increase in headcount, mainly from
new mortgage loan originators and staffing to support three new
retail branches recently opened. Also, employee incentives
and bonuses were lower in the fourth quarter of 2017 due to the
decision not to award annual cash incentive bonuses to executives
for 2017. Loan related expenses for the quarter were
$930,000 higher due to increases in
mortgage and commercial loan activity. These increases were offset
by a decrease in commissions of $941,000.
Compared to the first quarter of 2017, noninterest expense of
$54.7 million increased by
$4.2 million, or 8.2%. Salaries
and employee benefits expense increased by $2.1 million, or 8.4%, due primarily to an
increase in headcount of 107, or 8.1%, in the mortgage and retail
areas as previously discussed. Equity incentives granted in
June 2017 which were tied to 2016
performance also increased salaries and benefits expense for the
quarter. Occupancy expense increased by $769,000, or 18.5%, due to higher building rental
expense as normal rent escalations occurred, as well as higher
expenses paid for software maintenance. Professional and other
services also increased by $731,000,
or 18.0%, primarily due to higher expenses related to our continued
investment in technology and back office operations to support our
growth.
Income Taxes
The Tax Cuts and Jobs Act enacted on
December 22, 2017 included, among
other things, a reduction in the federal corporate income tax rate
from 35% to 21% from the beginning of the tax year 2018 going
forward.
On a linked-quarter basis, as well as compared to the same
quarter in prior year, our effective tax rate decreased from 37.8%
to 22.7% primarily the result of the federal tax rate change
discussed above. Excluding the benefit of employee stock option
exercises and other tax adjustments, the effective tax rate for the
quarter would have been 24.0%.
OTHER NEWS
Fidelity continued its retail branch
expansion during the quarter with the opening of the Hartley Bridge
Road branch in Macon, Georgia on
January 25, 2018, and the
Covington, Georgia branch on
March 30, 2018. Fidelity has received
regulatory approval to open one additional branch in Sugar Hill, Georgia which it expects to open
in Q2 2018, which will bring the total number of retail branches to
69.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern
Corporation, through its operating subsidiaries, Fidelity Bank and
LionMark Insurance Company, provides banking services and Wealth
Management services and credit-related insurance products through
branches in Georgia and
Florida, and an insurance office
in Atlanta, Georgia. Indirect auto
and mortgage loans are provided throughout the South while SBA
loans are originated nationwide. For additional information about
Fidelity's products and services, please visit the website at
www.FidelitySouthern.com.
NON-GAAP FINANCIAL MEASURES
This release contains
certain non-GAAP financial measures. The "GAAP TO NON-GAAP
RATIO RECONCILIATION" tables included below reconcile GAAP
to non-GAAP ratios. The non-GAAP ratios contain financial
information determined by methods other than in accordance with
GAAP. Management uses these "non-GAAP" financial measures in its
analysis of the Company's performance. Management believes that
presentation of these non-GAAP financial measures provides useful
supplemental information that allows better comparability with
prior periods, as well as with peers in the industry and provides a
greater understanding of the asset quality of the Company's loan
portfolio exclusive of the indirect auto, government-guaranteed and
acquired loan portfolios. These disclosures should not be viewed as
a substitute for operating results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies.
SAFE HARBOR
This news release contains
forward-looking statements, as defined by Federal Securities Laws,
including statements about financial outlook and business
environment. These statements are provided to assist in the
understanding of future financial performance and such performance
involves risks and uncertainties that may cause actual results to
differ materially from those in such statements. Any such
statements are based on current expectations and involve a number
of risks and uncertainties. For a discussion of factors that may
cause such forward-looking statements to differ materially from
actual results, please refer to the section entitled "Forward
Looking Statements" from Fidelity Southern Corporation's 2017
Annual Report filed on Form 10-K with the Securities and Exchange
Commission. Additional information and other factors that could
affect future financial results are included in Fidelity's filings
with the Securities and Exchange Commission.
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
FINANCIAL
HIGHLIGHTS
|
(UNAUDITED)
|
|
|
As of or for the
Quarter Ended
|
($ in thousands,
except per share data)
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
INCOME STATEMENT
DATA:
|
|
|
|
|
|
Interest
income
|
$
|
41,562
|
|
|
$
|
41,653
|
|
|
$
|
37,642
|
|
Interest
expense
|
6,794
|
|
|
5,779
|
|
|
5,408
|
|
Net interest
income
|
34,768
|
|
|
35,874
|
|
|
32,234
|
|
Provision for loan
losses
|
2,130
|
|
|
—
|
|
|
2,100
|
|
Noninterest
income
|
37,133
|
|
|
28,888
|
|
|
37,370
|
|
Noninterest
expense
|
54,742
|
|
|
52,910
|
|
|
50,572
|
|
Net income before
income taxes
|
15,029
|
|
|
11,852
|
|
|
16,932
|
|
Income tax expense
(benefit)
|
3,262
|
|
|
(591)
|
|
|
6,405
|
|
Net income
|
11,767
|
|
|
12,443
|
|
|
10,527
|
|
PERFORMANCE:
|
|
|
|
|
|
Earnings per common
share - basic
|
$
|
0.44
|
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
Earnings per common
share - diluted
|
0.43
|
|
|
0.46
|
|
|
0.40
|
|
Total
revenues
|
78,695
|
|
|
70,541
|
|
|
75,012
|
|
Book value per common
share
|
15.19
|
|
|
14.86
|
|
|
14.09
|
|
Tangible book value
per common share(1)
|
14.75
|
|
|
14.41
|
|
|
13.58
|
|
Cash dividends paid
per common share
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
Dividend payout
ratio
|
27.27
|
%
|
|
26.09
|
%
|
|
30.00
|
%
|
Return on average
assets
|
1.03
|
%
|
|
1.10
|
%
|
|
0.97
|
%
|
Return on average
shareholders' equity
|
11.83
|
%
|
|
12.57
|
%
|
|
11.78
|
%
|
Equity to assets
ratio
|
8.54
|
%
|
|
8.78
|
%
|
|
8.19
|
%
|
Net interest
margin
|
3.29
|
%
|
|
3.42
|
%
|
|
3.21
|
%
|
END OF PERIOD
BALANCE SHEET SUMMARY:
|
|
|
|
|
|
Total
assets
|
$
|
4,811,659
|
|
|
$
|
4,576,858
|
|
|
$
|
4,531,057
|
|
Earning
assets
|
4,466,249
|
|
|
4,242,218
|
|
|
4,192,919
|
|
Loans, excluding
Loans Held for Sale
|
3,714,308
|
|
|
3,580,966
|
|
|
3,354,926
|
|
Total
loans
|
4,139,608
|
|
|
3,938,721
|
|
|
3,716,043
|
|
Total
deposits
|
3,900,407
|
|
|
3,867,200
|
|
|
3,755,108
|
|
Shareholders'
equity
|
410,744
|
|
|
401,632
|
|
|
371,302
|
|
Assets serviced for
others
|
10,367,564
|
|
|
10,242,742
|
|
|
9,553,855
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
Net charge-offs to
average loans
|
0.11
|
%
|
|
0.11
|
%
|
|
0.16
|
%
|
Allowance to
period-end loans
|
0.83
|
%
|
|
0.83
|
%
|
|
0.91
|
%
|
Nonperforming assets
to total loans, ORE and repossessions
|
2.04
|
%
|
|
1.76
|
%
|
|
1.77
|
%
|
Adjusted
nonperforming assets to loans, ORE and
repossessions(2)
|
1.14
|
%
|
|
1.06
|
%
|
|
1.25
|
%
|
Allowance to
nonperforming loans, ORE and repossessions
|
0.41x
|
|
|
0.47x
|
|
|
0.51x
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
Loans to total
deposits
|
95.23
|
%
|
|
92.60
|
%
|
|
89.34
|
%
|
Average total loans
to average earning assets
|
92.71
|
%
|
|
91.95
|
%
|
|
91.08
|
%
|
Noninterest income to
total revenue
|
47.19
|
%
|
|
40.95
|
%
|
|
49.82
|
%
|
Leverage
ratio
|
8.74
|
%
|
|
8.85
|
%
|
|
8.48
|
%
|
Common equity tier 1
capital
|
8.41
|
%
|
|
8.86
|
%
|
|
8.37
|
%
|
Tier 1 risk-based
capital
|
9.47
|
%
|
|
10.00
|
%
|
|
9.51
|
%
|
Total risk-based
capital
|
11.98
|
%
|
|
12.65
|
%
|
|
12.20
|
%
|
Mortgage loan
production
|
$
|
613,314
|
|
|
$
|
669,733
|
|
|
$
|
552,997
|
|
Total mortgage loan
sales
|
496,484
|
|
|
602,171
|
|
|
566,003
|
|
Indirect automobile
production
|
258,560
|
|
|
345,032
|
|
|
316,541
|
|
Total indirect
automobile sales
|
86,000
|
|
|
59,681
|
|
|
192,435
|
|
(1) Non-GAAP
financial measure. See non-GAAP reconciliation table for the
comparable GAAP.
|
(2) Excludes acquired
loans and net of government guarantees. See non-GAAP reconciliation
table for the comparable GAAP.
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
200,496
|
|
|
$
|
186,302
|
|
|
$
|
350,502
|
|
Investment securities
available-for-sale
|
|
124,576
|
|
|
120,121
|
|
|
139,071
|
|
Investment securities
held-to-maturity
|
|
21,342
|
|
|
21,689
|
|
|
15,977
|
|
Loans
held-for-sale
|
|
425,300
|
|
|
357,755
|
|
|
361,117
|
|
|
|
|
|
|
|
|
Loans
|
|
3,714,308
|
|
|
3,580,966
|
|
|
3,354,926
|
|
Allowance for loan
losses
|
|
(30,940)
|
|
|
(29,772)
|
|
|
(30,455)
|
|
Loans, net of
allowance for loan losses
|
|
3,683,368
|
|
|
3,551,194
|
|
|
3,324,471
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
88,624
|
|
|
88,463
|
|
|
87,222
|
|
Other real estate,
net
|
|
7,668
|
|
|
7,621
|
|
|
11,284
|
|
Bank owned life
insurance
|
|
72,284
|
|
|
71,883
|
|
|
70,587
|
|
Servicing rights,
net
|
|
119,553
|
|
|
112,615
|
|
|
105,039
|
|
Other
assets
|
|
68,448
|
|
|
59,215
|
|
|
65,787
|
|
Total
assets
|
|
$
|
4,811,659
|
|
|
$
|
4,576,858
|
|
|
$
|
4,531,057
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
|
1,152,315
|
|
|
$
|
1,125,598
|
|
|
$
|
1,005,372
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
Demand and
money market
|
|
1,505,766
|
|
|
1,498,707
|
|
|
1,321,936
|
|
Savings
|
|
363,099
|
|
|
318,749
|
|
|
381,751
|
|
Time
deposits
|
|
879,227
|
|
|
924,146
|
|
|
1,046,049
|
|
Total
deposits
|
|
3,900,407
|
|
|
3,867,200
|
|
|
3,755,108
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
337,795
|
|
|
150,580
|
|
|
239,466
|
|
Subordinated debt,
net
|
|
120,620
|
|
|
120,587
|
|
|
120,488
|
|
Other
liabilities
|
|
42,093
|
|
|
36,859
|
|
|
44,693
|
|
Total
liabilities
|
|
4,400,915
|
|
|
4,175,226
|
|
|
4,159,755
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Common
stock
|
|
219,234
|
|
|
217,555
|
|
|
206,590
|
|
Accumulated other
comprehensive (loss) income, net
|
|
(631)
|
|
|
383
|
|
|
699
|
|
Retained
earnings
|
|
192,141
|
|
|
183,694
|
|
|
164,013
|
|
Total shareholders'
equity
|
|
410,744
|
|
|
401,632
|
|
|
371,302
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,811,659
|
|
|
$
|
4,576,858
|
|
|
$
|
4,531,057
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
($ in thousands,
except per share data)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
INTEREST
INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
39,849
|
|
|
$
|
40,065
|
|
|
$
|
36,083
|
|
Investment
securities
|
|
1,175
|
|
|
1,015
|
|
|
1,208
|
|
Other
|
|
538
|
|
|
573
|
|
|
351
|
|
Total interest
income
|
|
41,562
|
|
|
41,653
|
|
|
37,642
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
4,313
|
|
|
4,219
|
|
|
3,449
|
|
Other
borrowings
|
|
910
|
|
|
18
|
|
|
392
|
|
Subordinated
debt
|
|
1,571
|
|
|
1,542
|
|
|
1,567
|
|
Total interest
expense
|
|
6,794
|
|
|
5,779
|
|
|
5,408
|
|
Net interest
income
|
|
34,768
|
|
|
35,874
|
|
|
32,234
|
|
Provision for loan
losses
|
|
2,130
|
|
|
—
|
|
|
2,100
|
|
Net interest
income after provision for loan losses
|
|
32,638
|
|
|
35,874
|
|
|
30,134
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,472
|
|
|
1,530
|
|
|
1,455
|
|
Other fees and
charges
|
|
2,235
|
|
|
2,342
|
|
|
1,857
|
|
Mortgage banking
activities
|
|
28,562
|
|
|
20,932
|
|
|
25,869
|
|
Indirect lending
activities
|
|
2,148
|
|
|
2,566
|
|
|
4,426
|
|
SBA lending
activities
|
|
1,157
|
|
|
581
|
|
|
1,818
|
|
Bank owned life
insurance
|
|
380
|
|
|
411
|
|
|
439
|
|
Other
|
|
1,179
|
|
|
526
|
|
|
1,506
|
|
Total noninterest
income
|
|
37,133
|
|
|
28,888
|
|
|
37,370
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
27,561
|
|
|
25,745
|
|
|
25,438
|
|
Commissions
|
|
7,506
|
|
|
8,447
|
|
|
7,498
|
|
Occupancy,
net
|
|
4,932
|
|
|
4,793
|
|
|
4,163
|
|
Professional and
other services
|
|
4,798
|
|
|
4,620
|
|
|
4,067
|
|
Other
|
|
9,945
|
|
|
9,305
|
|
|
9,406
|
|
Total noninterest
expense
|
|
54,742
|
|
|
52,910
|
|
|
50,572
|
|
Income before
income tax expense/(benefit)
|
|
15,029
|
|
|
11,852
|
|
|
16,932
|
|
Income tax
expense/(benefit)
|
|
3,262
|
|
|
(591)
|
|
|
6,405
|
|
NET
INCOME
|
|
$
|
11,767
|
|
|
$
|
12,443
|
|
|
$
|
10,527
|
|
|
|
|
|
|
|
|
EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
Diluted
|
|
$
|
0.43
|
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
Weighted average
common shares outstanding-basic
|
|
27,011
|
|
|
26,904
|
|
|
26,335
|
|
Weighted average
common shares outstanding-diluted
|
|
27,121
|
|
|
27,011
|
|
|
26,477
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
LOANS BY
CATEGORY
|
(UNAUDITED)
|
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Commercial
|
|
$
|
897,297
|
|
|
$
|
811,199
|
|
|
$
|
789,788
|
|
|
$
|
796,699
|
|
|
$
|
802,905
|
|
SBA
|
|
140,308
|
|
|
141,208
|
|
|
142,989
|
|
|
145,311
|
|
|
149,727
|
|
Total commercial and
SBA loans
|
|
1,037,605
|
|
|
952,407
|
|
|
932,777
|
|
|
942,010
|
|
|
952,632
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
|
265,780
|
|
|
248,317
|
|
|
243,600
|
|
|
248,926
|
|
|
249,465
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
automobile
|
|
1,719,670
|
|
|
1,716,156
|
|
|
1,609,678
|
|
|
1,531,761
|
|
|
1,565,298
|
|
Installment loans and
personal lines of credit
|
|
28,716
|
|
|
25,995
|
|
|
26,189
|
|
|
31,225
|
|
|
31,647
|
|
Total consumer
loans
|
|
1,748,386
|
|
|
1,742,151
|
|
|
1,635,867
|
|
|
1,562,986
|
|
|
1,596,945
|
|
Residential
mortgage
|
|
512,673
|
|
|
489,721
|
|
|
452,584
|
|
|
433,544
|
|
|
418,941
|
|
Home equity lines of
credit
|
|
149,864
|
|
|
148,370
|
|
|
144,879
|
|
|
144,666
|
|
|
136,943
|
|
Total mortgage
loans
|
|
662,537
|
|
|
638,091
|
|
|
597,463
|
|
|
578,210
|
|
|
555,884
|
|
Loans
|
|
3,714,308
|
|
|
3,580,966
|
|
|
3,409,707
|
|
|
3,332,132
|
|
|
3,354,926
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
355,515
|
|
|
269,140
|
|
|
257,325
|
|
|
279,292
|
|
|
201,661
|
|
SBA
|
|
19,785
|
|
|
13,615
|
|
|
8,004
|
|
|
15,418
|
|
|
9,456
|
|
Indirect
automobile
|
|
50,000
|
|
|
75,000
|
|
|
75,000
|
|
|
100,000
|
|
|
150,000
|
|
Total loans
held-for-sale
|
|
425,300
|
|
|
357,755
|
|
|
340,329
|
|
|
394,710
|
|
|
361,117
|
|
Total loans
|
|
$
|
4,139,608
|
|
|
$
|
3,938,721
|
|
|
$
|
3,750,036
|
|
|
$
|
3,726,842
|
|
|
$
|
3,716,043
|
|
DEPOSITS BY
CATEGORY
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
($ in
thousands)
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
Noninterest-bearing
demand deposits
|
$
|
1,120,562
|
|
|
—
|
%
|
|
$
|
1,124,759
|
|
|
—
|
%
|
|
$
|
1,103,414
|
|
|
—
|
%
|
|
$
|
1,027,909
|
|
|
—
|
%
|
|
$
|
961,188
|
|
|
—
|
%
|
Interest-bearing
demand deposits
|
1,477,280
|
|
|
0.48
|
%
|
|
1,482,686
|
|
|
0.44
|
%
|
|
1,447,874
|
|
|
0.42
|
%
|
|
1,363,651
|
|
|
0.37
|
%
|
|
1,244,955
|
|
|
0.31
|
%
|
Savings
deposits
|
330,239
|
|
|
0.31
|
%
|
|
352,235
|
|
|
0.33
|
%
|
|
340,663
|
|
|
0.31
|
%
|
|
357,712
|
|
|
0.32
|
%
|
|
387,007
|
|
|
0.36
|
%
|
Time
deposits
|
901,394
|
|
|
1.04
|
%
|
|
958,790
|
|
|
0.94
|
%
|
|
1,021,563
|
|
|
0.92
|
%
|
|
1,049,248
|
|
|
0.90
|
%
|
|
1,050,897
|
|
|
0.83
|
%
|
Total average
deposits
|
$
|
3,829,475
|
|
|
0.46
|
%
|
|
$
|
3,918,470
|
|
|
0.43
|
%
|
|
$
|
3,913,514
|
|
|
0.42
|
%
|
|
$
|
3,798,520
|
|
|
0.41
|
%
|
|
$
|
3,644,047
|
|
|
0.38
|
%
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
NONPERFORMING AND
CLASSIFIED ASSETS
|
(UNAUDITED)
|
|
($ in
thousands)
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
(2)(6)
|
$
|
58,706
|
|
|
$
|
47,012
|
|
|
$
|
41,408
|
|
|
$
|
37,894
|
|
|
$
|
38,377
|
|
Loans past due 90
days or more and still accruing
|
7,728
|
|
|
6,313
|
|
|
6,534
|
|
|
7,210
|
|
|
8,414
|
|
Repossessions
|
1,853
|
|
|
2,392
|
|
|
2,040
|
|
|
1,779
|
|
|
1,654
|
|
Other real estate
(ORE)
|
7,668
|
|
|
7,621
|
|
|
8,624
|
|
|
9,382
|
|
|
11,284
|
|
Nonperforming
assets
|
$
|
75,955
|
|
|
$
|
63,338
|
|
|
$
|
58,606
|
|
|
$
|
56,265
|
|
|
$
|
59,729
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
15,695
|
|
|
$
|
22,079
|
|
|
$
|
10,193
|
|
|
$
|
7,181
|
|
|
$
|
10,734
|
|
Loans 30-89 days past
due to loans
|
0.42
|
%
|
|
0.62
|
%
|
|
0.30
|
%
|
|
0.22
|
%
|
|
0.32
|
%
|
Loans past due 90
days or more and still accruing to loans
|
0.21
|
%
|
|
0.18
|
%
|
|
0.19
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
Nonperforming loans
as a % of loans
|
1.79
|
%
|
|
1.49
|
%
|
|
1.41
|
%
|
|
1.35
|
%
|
|
1.39
|
%
|
Nonperforming assets
to loans, ORE, and repossessions
|
2.04
|
%
|
|
1.76
|
%
|
|
1.71
|
%
|
|
1.68
|
%
|
|
1.77
|
%
|
Adjusted
nonperforming assets to loans, ORE and
repossessions(8)
|
1.14
|
%
|
|
1.06
|
%
|
|
1.05
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
Nonperforming assets
to total assets
|
1.58
|
%
|
|
1.38
|
%
|
|
1.30
|
%
|
|
1.22
|
%
|
|
1.32
|
%
|
Adjusted
nonperforming assets to total
assets(8)
|
0.84
|
%
|
|
0.79
|
%
|
|
0.75
|
%
|
|
0.79
|
%
|
|
0.86
|
%
|
Classified Asset
Ratio(4)
|
21.70
|
%
|
|
20.70
|
%
|
|
20.59
|
%
|
|
20.14
|
%
|
|
20.97
|
%
|
ALL to nonperforming
loans
|
46.57
|
%
|
|
55.83
|
%
|
|
64.04
|
%
|
|
67.46
|
%
|
|
65.09
|
%
|
Net charge-offs,
annualized to average loans
|
0.11
|
%
|
|
0.11
|
%
|
|
0.13
|
%
|
|
0.09
|
%
|
|
0.16
|
%
|
ALL as a % of
loans
|
0.83
|
%
|
|
0.83
|
%
|
|
0.90
|
%
|
|
0.91
|
%
|
|
0.91
|
%
|
Adjusted ALL as a %
of adjusted loans(7)
|
1.15
|
%
|
|
1.16
|
%
|
|
1.29
|
%
|
|
1.30
|
%
|
|
1.35
|
%
|
ALL as a % of loans,
excluding acquired loans(5)
|
0.88
|
%
|
|
0.88
|
%
|
|
0.96
|
%
|
|
0.98
|
%
|
|
0.98
|
%
|
|
|
|
|
|
|
|
|
|
|
CLASSIFIED
ASSETS
|
|
|
|
|
|
|
|
|
|
Classified
loans(1)
|
$
|
83,867
|
|
|
$
|
77,679
|
|
|
$
|
75,033
|
|
|
$
|
71,040
|
|
|
$
|
71,082
|
|
ORE and
repossessions
|
9,521
|
|
|
10,013
|
|
|
10,664
|
|
|
11,161
|
|
|
12,938
|
|
Total classified
assets(3)
|
$
|
93,388
|
|
|
$
|
87,692
|
|
|
$
|
85,697
|
|
|
$
|
82,201
|
|
|
$
|
84,020
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amount of SBA guarantee included in classified
loans
|
$
|
2,879
|
|
|
$
|
2,930
|
|
|
$
|
2,755
|
|
|
$
|
7,458
|
|
|
$
|
5,213
|
|
(2)
Amount of repurchased government-guaranteed loans,
primarily
residential mortgage loans, included
in nonaccrual loans
|
$
|
26,091
|
|
|
$
|
19,478
|
|
|
$
|
15,450
|
|
|
$
|
12,502
|
|
|
$
|
12,287
|
|
(3)
Classified assets include loans having a risk rating of
substandard or worse, both accrual and nonaccrual, repossessions
and ORE, net of loss share and purchase discounts (for periods
prior to 2018)
|
(4)
Classified asset ratio is defined as classified assets as a
percentage of the sum of Tier 1 capital plus allowance for loan
losses
|
(5)
Allowance calculation excludes the recorded investment of
acquired loans, due to valuation calculated at
acquisition
|
(6)
Excludes purchased credit impaired (PCI) loans which are not
removed from their accounting pool
|
(7)
Excludes indirect and acquired loans. See non-GAAP
reconciliation table for a reconciliation to the comparable GAAP
measure
|
(8)
Excludes acquired loans and net of government guarantees. See
non-GAAP reconciliation table for a reconciliation to the
comparable GAAP measure
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
INCOME FROM
INDIRECT LENDING ACTIVITIES
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
(in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Loan servicing
revenue
|
|
$
|
1,769
|
|
|
$
|
2,158
|
|
|
$
|
2,130
|
|
|
$
|
2,199
|
|
|
$
|
1,919
|
|
Gain on sale of
loans
|
|
442
|
|
|
532
|
|
|
263
|
|
|
1,074
|
|
|
1,821
|
|
Gain on
capitalization of servicing rights
|
|
569
|
|
|
406
|
|
|
182
|
|
|
1,020
|
|
|
1,403
|
|
Ancillary loan
servicing revenue
|
|
183
|
|
|
247
|
|
|
172
|
|
|
204
|
|
|
153
|
|
Gross indirect
lending revenue
|
|
2,963
|
|
|
3,343
|
|
|
2,747
|
|
|
4,497
|
|
|
5,296
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
servicing rights, net
|
|
(815)
|
|
|
(777)
|
|
|
(846)
|
|
|
(857)
|
|
|
(870)
|
|
Total income from
indirect lending
activities
|
|
$
|
2,148
|
|
|
$
|
2,566
|
|
|
$
|
1,901
|
|
|
$
|
3,640
|
|
|
$
|
4,426
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
INDIRECT LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Average loans
outstanding(1)
|
|
$
|
1,784,982
|
|
|
$
|
1,748,179
|
|
|
$
|
1,627,946
|
|
|
$
|
1,675,644
|
|
|
$
|
1,756,958
|
|
Loans serviced for
others
|
|
$
|
1,018,743
|
|
|
$
|
1,056,509
|
|
|
$
|
1,114,710
|
|
|
$
|
1,216,296
|
|
|
$
|
1,197,160
|
|
Past due
loans:
|
|
|
|
|
|
|
|
|
|
|
Amount
30+ days past due
|
|
2,257
|
|
|
3,423
|
|
|
2,965
|
|
|
1,535
|
|
|
2,223
|
|
Number
30+ days past due
|
|
197
|
|
|
283
|
|
|
255
|
|
|
143
|
|
|
200
|
|
30+ day performing
delinquency rate(2)
|
|
0.13
|
%
|
|
0.19
|
%
|
|
0.18
|
%
|
|
0.09
|
%
|
|
0.13
|
%
|
Nonperforming
loans
|
|
1,539
|
|
|
1,916
|
|
|
1,405
|
|
|
1,363
|
|
|
1,778
|
|
Nonperforming loans
as a percentage of
period end
loans(2)
|
|
0.09
|
%
|
|
0.11
|
%
|
|
0.08
|
%
|
|
0.08
|
%
|
|
0.10
|
%
|
Net
charge-offs
|
|
$
|
1,147
|
|
|
$
|
798
|
|
|
$
|
1,047
|
|
|
$
|
1,332
|
|
|
$
|
1,502
|
|
Net charge-off
rate(3)
|
|
0.27
|
%
|
|
0.19
|
%
|
|
0.27
|
%
|
|
0.35
|
%
|
|
0.38
|
%
|
Number of vehicles
repossessed during the
period
|
|
140
|
|
|
107
|
|
|
132
|
|
|
147
|
|
|
154
|
|
Quarterly production
weighted average
beacon score
|
|
781
|
|
|
783
|
|
|
776
|
|
|
758
|
|
|
758
|
|
(1) Includes held-for-sale
|
(2) Calculated by dividing loan category as of the end
of the period by period-end loans including held for sale for the
specified loan portfolio
|
(3) Calculated by dividing annualized net charge-offs
for the period by average loans held for investment during the
period for the specified loan category
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
INDIRECT LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Production by
state:
|
|
|
|
|
|
|
|
|
|
|
|
Alabama
|
|
$
|
12,239
|
|
|
$
|
19,216
|
|
|
$
|
13,587
|
|
|
$
|
10,399
|
|
|
$
|
14,452
|
|
|
Arkansas
(3)
|
|
20,322
|
|
|
30,732
|
|
|
26,997
|
|
|
26,569
|
|
|
33,602
|
|
|
North
Carolina
|
|
23,383
|
|
|
28,912
|
|
|
16,545
|
|
|
14,110
|
|
|
15,858
|
|
|
South
Carolina
|
|
12,322
|
|
|
16,559
|
|
|
10,959
|
|
|
11,232
|
|
|
15,020
|
|
|
Florida
|
|
65,786
|
|
|
87,750
|
|
|
51,723
|
|
|
49,976
|
|
|
65,053
|
|
|
Georgia
|
|
38,288
|
|
|
45,571
|
|
|
31,266
|
|
|
28,091
|
|
|
36,178
|
|
|
Mississippi
|
|
24,785
|
|
|
32,141
|
|
|
24,535
|
|
|
20,136
|
|
|
21,370
|
|
|
Tennessee
|
|
13,509
|
|
|
17,635
|
|
|
10,931
|
|
|
10,012
|
|
|
14,143
|
|
|
Virginia
(3)
|
|
3,620
|
|
|
6,495
|
|
|
8,223
|
|
|
6,292
|
|
|
10,282
|
|
|
Texas
(2)
|
|
—
|
|
|
—
|
|
|
13,312
|
|
|
26,542
|
|
|
32,902
|
|
|
Louisiana
(3)
|
|
44,306
|
|
|
60,021
|
|
|
47,576
|
|
|
45,306
|
|
|
56,046
|
|
|
Oklahoma
(2)
|
|
—
|
|
|
—
|
|
|
430
|
|
|
1,051
|
|
|
1,635
|
|
|
|
Total production by
state
|
|
$
|
258,560
|
|
|
$
|
345,032
|
|
|
$
|
256,084
|
|
|
$
|
249,716
|
|
|
$
|
316,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
$
|
86,000
|
|
|
$
|
59,681
|
|
|
$
|
27,115
|
|
|
$
|
151,996
|
|
|
$
|
192,435
|
|
Portfolio yield
(1)
|
|
2.98
|
%
|
|
2.98
|
%
|
|
2.92
|
%
|
|
2.84
|
%
|
|
2.87
|
%
|
|
|
(1)
|
Includes
held-for-sale
|
(2)
|
Fidelity exited
the Oklahoma and Texas markets in Q3 2017
|
(3)
|
Fidelity recently
exited the Arkansas, Virginia and Louisiana markets
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
INCOME FROM
MORTGAGE BANKING ACTIVITIES
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
(in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Marketing gain,
net
|
|
$
|
17,575
|
|
|
$
|
16,683
|
|
|
$
|
19,713
|
|
|
$
|
21,355
|
|
|
$
|
18,677
|
|
Origination points
and fees
|
|
3,647
|
|
|
3,482
|
|
|
3,815
|
|
|
4,189
|
|
|
3,021
|
|
Loan servicing
revenue
|
|
6,221
|
|
|
5,851
|
|
|
5,616
|
|
|
5,379
|
|
|
5,341
|
|
Gross mortgage
revenue
|
|
$
|
27,443
|
|
|
$
|
26,016
|
|
|
$
|
29,144
|
|
|
$
|
30,923
|
|
|
$
|
27,039
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
MSR
amortization
|
|
(3,426)
|
|
|
(3,609)
|
|
|
(3,560)
|
|
|
(3,331)
|
|
|
(3,158)
|
|
MSR
recovery/(impairment), net
|
|
4,545
|
|
|
(1,476)
|
|
|
(544)
|
|
|
(636)
|
|
|
1,989
|
|
Total income
from mortgage
banking activities
|
|
$
|
28,562
|
|
|
$
|
20,931
|
|
|
$
|
25,040
|
|
|
$
|
26,956
|
|
|
$
|
25,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
MORTGAGE LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Production by
region:
|
|
|
|
|
|
|
|
|
|
|
|
Georgia
|
|
$
|
368,739
|
|
|
$
|
423,876
|
|
|
$
|
490,323
|
|
|
$
|
519,497
|
|
|
$
|
395,404
|
|
|
Florida
|
|
109,034
|
|
|
103,490
|
|
|
95,010
|
|
|
95,983
|
|
|
46,365
|
|
|
Alabama/Tennessee
|
|
2,709
|
|
|
4,609
|
|
|
7,299
|
|
|
7,294
|
|
|
3,600
|
|
|
Virginia/Maryland
|
|
91,842
|
|
|
106,398
|
|
|
129,774
|
|
|
143,885
|
|
|
81,901
|
|
|
North and South
Carolina
|
|
40,990
|
|
|
31,360
|
|
|
30,448
|
|
|
33,767
|
|
|
25,727
|
|
|
Total production by
region
|
|
$
|
613,314
|
|
|
$
|
669,733
|
|
|
$
|
752,854
|
|
|
$
|
800,426
|
|
|
$
|
552,997
|
|
|
|
|
|
|
|
|
|
|
|
|
% for
purchases
|
|
85.1
|
%
|
|
82.9
|
%
|
|
86.3
|
%
|
|
89.6
|
%
|
|
80.9
|
%
|
% for refinance
loans
|
|
14.9
|
%
|
|
17.1
|
%
|
|
13.7
|
%
|
|
10.4
|
%
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Production:
|
|
$
|
44,554
|
|
|
$
|
66,236
|
|
|
$
|
56,072
|
|
|
$
|
46,902
|
|
|
$
|
51,061
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded loan type
(UPB):
|
|
|
|
|
|
|
|
|
|
|
|
|
Conventional
|
|
65.9
|
%
|
|
62.0
|
%
|
|
62.0
|
%
|
|
62.5
|
%
|
|
63.9
|
%
|
|
|
FHA/VA/USDA
|
|
22.1
|
%
|
|
21.5
|
%
|
|
23.3
|
%
|
|
24.6
|
%
|
|
24.2
|
%
|
|
|
Jumbo
|
|
12.0
|
%
|
|
16.5
|
%
|
|
14.7
|
%
|
|
12.9
|
%
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross pipeline of
locked loans to be
sold (UPB)
|
|
$
|
382,386
|
|
|
$
|
203,896
|
|
|
$
|
265,444
|
|
|
$
|
360,551
|
|
|
$
|
374,739
|
|
Loans held for sale
(UPB)
|
|
$
|
348,797
|
|
|
$
|
262,315
|
|
|
$
|
250,960
|
|
|
$
|
271,714
|
|
|
$
|
195,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan sales
(UPB)
|
|
$
|
496,484
|
|
|
$
|
602,171
|
|
|
$
|
731,595
|
|
|
$
|
689,073
|
|
|
$
|
566,003
|
|
|
|
Conventional
|
|
69.1
|
%
|
|
64.3
|
%
|
|
63.0
|
%
|
|
63.6
|
%
|
|
69.9
|
%
|
|
|
FHA/VA/USDA
|
|
27.2
|
%
|
|
25.0
|
%
|
|
27.1
|
%
|
|
26.6
|
%
|
|
23.0
|
%
|
|
|
Jumbo
|
|
3.7
|
%
|
|
10.7
|
%
|
|
9.9
|
%
|
|
9.8
|
%
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
outstanding(1)
|
|
$
|
725,444
|
|
|
$
|
701,932
|
|
|
$
|
698,068
|
|
|
$
|
664,099
|
|
|
$
|
592,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes held-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
THIRD PARTY
MORTGAGE LOAN SERVICING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Loans serviced for
others (UPB)
|
|
$
|
9,097,869
|
|
|
$
|
8,917,117
|
|
|
$
|
8,715,198
|
|
|
$
|
8,357,934
|
|
|
$
|
8,067,426
|
|
Average loans
serviced for others
(UPB)
|
|
$
|
9,038,568
|
|
|
$
|
8,896,305
|
|
|
$
|
8,657,475
|
|
|
$
|
8,304,065
|
|
|
$
|
8,013,761
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR book value, net
of amortization
|
|
$
|
113,217
|
|
|
$
|
110,497
|
|
|
$
|
107,434
|
|
|
$
|
102,549
|
|
|
$
|
98,550
|
|
MSR
impairment
|
|
(5,274)
|
|
|
(9,818)
|
|
|
(8,343)
|
|
|
(7,799)
|
|
|
(7,163)
|
|
MSR net carrying
value
|
|
$
|
107,943
|
|
|
$
|
100,679
|
|
|
$
|
99,091
|
|
|
$
|
94,750
|
|
|
$
|
91,387
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR carrying value as
a % of period
end UPB
|
|
1.19
|
%
|
|
1.13
|
%
|
|
1.14
|
%
|
|
1.13
|
%
|
|
1.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency % loans
serviced for
others
|
|
1.24
|
%
|
|
1.87
|
%
|
|
1.41
|
%
|
|
1.02
|
%
|
|
0.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR revenue
multiple(1)
|
|
4.31
|
|
|
4.29
|
|
|
4.38
|
|
|
4.38
|
|
|
4.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
MSR carrying value (period end) to period end loans serviced for
others divided by the ratio of annualized mortgage loan servicing
revenue to average mortgage loans serviced for
others
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
AVERAGE BALANCE,
INTEREST AND YIELDS
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
($ in
thousands)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of
unearned income (1)
|
$
|
3,977,328
|
|
|
4.07
|
%
|
|
$
|
3,832,444
|
|
|
4.15
|
%
|
|
$
|
3,718,260
|
|
|
3.94
|
%
|
Investment securities
(1)
|
155,920
|
|
|
3.11
|
%
|
|
142,494
|
|
|
2.86
|
%
|
|
171,853
|
|
|
3.02
|
%
|
Other earning
assets
|
156,751
|
|
|
1.39
|
%
|
|
193,186
|
|
|
1.18
|
%
|
|
192,431
|
|
|
0.74
|
%
|
Total
interest-earning assets
|
4,289,999
|
|
|
3.93
|
%
|
|
4,168,124
|
|
|
3.97
|
%
|
|
4,082,544
|
|
|
3.75
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
36,370
|
|
|
|
|
39,173
|
|
|
|
|
38,578
|
|
|
|
Allowance for loan
losses
|
(30,002)
|
|
|
|
|
(30,579)
|
|
|
|
|
(29,788)
|
|
|
|
Premises and
equipment, net
|
88,732
|
|
|
|
|
88,124
|
|
|
|
|
87,792
|
|
|
|
Other real
estate
|
7,606
|
|
|
|
|
8,631
|
|
|
|
|
14,147
|
|
|
|
Other
assets
|
233,677
|
|
|
|
|
232,055
|
|
|
|
|
216,219
|
|
|
|
Total
noninterest-earning assets
|
336,383
|
|
|
|
|
337,404
|
|
|
|
|
326,948
|
|
|
|
Total
assets
|
$
|
4,626,382
|
|
|
|
|
$
|
4,505,528
|
|
|
|
|
$
|
4,409,492
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money
market deposits
|
$
|
1,477,280
|
|
|
0.48
|
%
|
|
$
|
1,482,686
|
|
|
0.44
|
%
|
|
$
|
1,244,955
|
|
|
0.31
|
%
|
Savings
deposits
|
330,239
|
|
|
0.31
|
%
|
|
352,235
|
|
|
0.33
|
%
|
|
387,007
|
|
|
0.36
|
%
|
Time
deposits
|
901,394
|
|
|
1.04
|
%
|
|
958,790
|
|
|
0.94
|
%
|
|
1,050,897
|
|
|
0.83
|
%
|
Total
interest-bearing deposits
|
2,708,913
|
|
|
0.65
|
%
|
|
2,793,711
|
|
|
0.60
|
%
|
|
2,682,859
|
|
|
0.52
|
%
|
Other short-term
borrowings
|
235,519
|
|
|
1.57
|
%
|
|
31,253
|
|
|
0.22
|
%
|
|
245,262
|
|
|
0.65
|
%
|
Subordinated
debt
|
120,604
|
|
|
5.29
|
%
|
|
120,571
|
|
|
5.07
|
%
|
|
120,472
|
|
|
5.28
|
%
|
Total
interest-bearing liabilities
|
3,065,036
|
|
|
0.90
|
%
|
|
2,945,535
|
|
|
0.78
|
%
|
|
3,048,593
|
|
|
0.72
|
%
|
Noninterest-bearing liabilities and shareholders'
equity:
|
|
|
|
|
|
|
Demand
deposits
|
1,120,562
|
|
|
|
|
1,124,759
|
|
|
|
|
961,188
|
|
|
|
Other
liabilities
|
37,336
|
|
|
|
|
42,486
|
|
|
|
|
37,390
|
|
|
|
Shareholders'
equity
|
403,448
|
|
|
|
|
392,748
|
|
|
|
|
362,321
|
|
|
|
Total
noninterest-bearing liabilities and
shareholders' equity
|
1,561,346
|
|
|
|
|
1,559,993
|
|
|
|
|
1,360,899
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,626,382
|
|
|
|
|
$
|
4,505,528
|
|
|
|
|
$
|
4,409,492
|
|
|
|
Net interest
spread
|
|
|
3.03
|
%
|
|
|
|
3.19
|
%
|
|
|
|
3.03
|
%
|
Net interest
margin
|
|
|
3.29
|
%
|
|
|
|
3.42
|
%
|
|
|
|
3.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income
includes the effect of taxable-equivalent adjustment using a 21%
tax rate for the quarter ended March 31, 2018 and a 35% tax rate
for the quarters ended December 31, 2017 and March 31,
2017.
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
GAAP TO NON-GAAP
RATIO RECONCILIATION
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
($ in
thousands)
|
March 31,
2018
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
Reconciliation
of nonperforming assets to adjusted nonperforming
assets:
|
Nonperforming assets
(GAAP)
|
$
|
75,955
|
|
|
$
|
63,338
|
|
|
$
|
58,606
|
|
|
$
|
56,265
|
|
|
$
|
59,729
|
|
|
|
|
|
|
|
|
|
|
|
Less: repurchased
government-guaranteed mortgage
loans included on
nonaccrual
|
(26,091)
|
|
|
(19,478)
|
|
|
(15,450)
|
|
|
(12,502)
|
|
|
(12,287)
|
|
Less: SBA guaranteed
loans included on nonaccrual
|
(1,541)
|
|
|
(1,652)
|
|
|
(2,145)
|
|
|
(2,949)
|
|
|
(3,373)
|
|
Less: Nonaccrual
acquired loans
|
(7,890)
|
|
|
(6,242)
|
|
|
(7,366)
|
|
|
(4,544)
|
|
|
(5,204)
|
|
Adjusted
nonperforming assets, excluding acquired
loans and government-guaranteed loans
(Non-GAAP)
|
$
|
40,433
|
|
|
$
|
35,966
|
|
|
$
|
33,645
|
|
|
$
|
36,270
|
|
|
$
|
38,865
|
|
Reconciliation
of total loans, ORE and repossessions to total loans, ORE and
repossessions, less acquired loans:
|
Loans, excluding
Loans Held-for-Sale
|
$
|
3,714,308
|
|
|
$
|
3,580,966
|
|
|
$
|
3,409,707
|
|
|
$
|
3,332,132
|
|
|
$
|
3,354,926
|
|
Add: ORE
|
7,668
|
|
|
7,621
|
|
|
8,624
|
|
|
9,382
|
|
|
11,284
|
|
Add:
repossessions
|
1,853
|
|
|
2,392
|
|
|
2,040
|
|
|
1,779
|
|
|
1,654
|
|
Total loans, ORE, and
repossessions (GAAP)
|
3,723,829
|
|
|
3,590,979
|
|
|
3,420,371
|
|
|
3,343,293
|
|
|
3,367,864
|
|
|
|
|
|
|
|
|
|
|
|
Less: acquired
loans
|
(178,496)
|
|
|
(196,567)
|
|
|
(216,994)
|
|
|
(230,256)
|
|
|
(258,366)
|
|
Total loans, ORE, and
repossessions, less acquired loans
(non-GAAP)
|
$
|
3,545,333
|
|
|
$
|
3,394,412
|
|
|
$
|
3,203,377
|
|
|
$
|
3,113,037
|
|
|
$
|
3,109,498
|
|
Nonperforming assets
to loans, ORE, and repossessions
(GAAP)
|
2.04
|
%
|
|
1.76
|
%
|
|
1.71
|
%
|
|
1.68
|
%
|
|
1.77
|
%
|
Adjusted
nonperforming assets to loans, ORE, and
repossessions (non-GAAP)
|
1.14
|
%
|
|
1.06
|
%
|
|
1.05
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
Nonperforming assets
to total assets (GAAP)
|
1.58
|
%
|
|
1.38
|
%
|
|
1.30
|
%
|
|
1.22
|
%
|
|
1.32
|
%
|
Adjusted
nonperforming assets to total assets (non-
GAAP)
|
0.84
|
%
|
|
0.79
|
%
|
|
0.75
|
%
|
|
0.79
|
%
|
|
0.86
|
%
|
Reconciliation
of allowance to adjusted allowance:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses (GAAP)
|
$
|
30,940
|
|
|
$
|
29,772
|
|
|
$
|
30,703
|
|
|
$
|
30,425
|
|
|
$
|
30,455
|
|
Less: allowance
allocated to indirect auto loans
|
(9,888)
|
|
|
(10,258)
|
|
|
(10,116)
|
|
|
(9,767)
|
|
|
(9,442)
|
|
Less: allowance
allocated to acquired loans
|
(134)
|
|
|
(209)
|
|
|
(159)
|
|
|
(284)
|
|
|
(284)
|
|
Adjusted allowance
for loan losses (non-GAAP)
|
$
|
20,918
|
|
|
$
|
19,305
|
|
|
$
|
20,428
|
|
|
$
|
20,374
|
|
|
$
|
20,729
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of period end loans to adjusted period end
loans:
|
Loans, excluding
Loans Held-for-Sale
|
$
|
3,714,308
|
|
|
$
|
3,580,966
|
|
|
$
|
3,409,707
|
|
|
$
|
3,332,132
|
|
|
$
|
3,354,926
|
|
Less: indirect auto
loans
|
(1,719,670)
|
|
|
(1,716,156)
|
|
|
(1,609,689)
|
|
|
(1,531,761)
|
|
|
(1,565,298)
|
|
Less: acquired
loans
|
(178,496)
|
|
|
(196,567)
|
|
|
(216,994)
|
|
|
(230,256)
|
|
|
(258,366)
|
|
Adjusted total loans
(non-GAAP)
|
$
|
1,816,142
|
|
|
$
|
1,668,243
|
|
|
$
|
1,583,024
|
|
|
$
|
1,570,115
|
|
|
$
|
1,531,262
|
|
Allowance to total
loans (GAAP)
|
0.83
|
%
|
|
0.83
|
%
|
|
0.90
|
%
|
|
0.91
|
%
|
|
0.91
|
%
|
Adjusted allowance to
adjusted total loans (non-GAAP)
|
1.15
|
%
|
|
1.16
|
%
|
|
1.29
|
%
|
|
1.30
|
%
|
|
1.35
|
%
|
Reconciliation
of book value per common share to tangible book value per common
share:
|
Shareholders'
equity
|
$
|
410,744
|
|
|
$
|
401,632
|
|
|
$
|
388,068
|
|
|
$
|
379,399
|
|
|
$
|
371,302
|
|
Less: intangible
assets
|
(12,028)
|
|
|
(12,306)
|
|
|
(12,625)
|
|
|
(12,966)
|
|
|
(13,307)
|
|
Tangible
shareholders' equity
|
$
|
398,716
|
|
|
$
|
389,326
|
|
|
$
|
375,443
|
|
|
$
|
366,433
|
|
|
$
|
357,995
|
|
End of period common
shares outstanding
|
27,034,255
|
|
|
27,019,201
|
|
|
26,815,287
|
|
|
26,702,665
|
|
|
26,358,620
|
|
Book value per common
share (GAAP)
|
15.19
|
|
|
14.86
|
|
|
14.47
|
|
|
14.21
|
|
|
14.09
|
|
Tangible book value
per common share (non-GAAP)
|
14.75
|
|
|
14.41
|
|
|
14.00
|
|
|
13.72
|
|
|
13.58
|
|
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-first-quarter-of-11-8-million-300633031.html
SOURCE Fidelity Southern Corporation