Fidelity Southern Corporation Reports Earnings For Third Quarter Of $12.7 Million
ATLANTA, Oct. 18, 2018 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported net income of $12.7 million, or $0.47 per diluted share, for the third quarter of 2018, compared with $9.4 million, or $0.34 per diluted share, for the second quarter of 2018, and with $7.9 million or $0.30 per diluted share for the third quarter of 2017. For the year to date ended September 30, 2018, the Company reported net income of $33.9 million, or $1.25 per diluted share, compared with $27.4 million, or $1.03 per diluted share, for the same period in 2017.
Fidelity's Chairman, Jim Miller, said, "The third quarter reflects a number of positive trends with our decision to reduce our indirect auto business. Transitioning to a more commercially focused balance sheet has allowed us to build more customer relationships, help continue our good deposit growth, provide net interest margin growth, and moderate our costs as the banking industry and markets continue to change."
President Palmer Proctor added, "The momentum we started last year has successfully generated over $328 million, or 9%, total loan growth since the end of the third quarter of 2017. This is in spite of very competitive market conditions and accelerated payoffs. We are fully focused on driving shareholder value through our balance sheet transition strategy that will enhance liquidity, drive more commercial bank growth, increase our bond portfolio, and allow us to be more efficient in the back office."
BALANCE SHEET
Total assets decreased by $80.3 million, or 1.6%, during the quarter, to $4.8 billion at September 30, 2018, primarily due to a decrease of $159.3 million in total loans. This decrease was driven by a decrease of $110.5 million in indirect auto loans as Fidelity exited all markets, except for Florida and Georgia, at the end of last quarter. Servicing rights also decreased by $8.7 million, primarily due to the previously announced $1.2 billion sale of mortgage servicing rights ("MSRs") during the quarter.
Offsetting these decreases, investments increased by $60.4 million as the Bank continues to increase its investments available-for-sale portfolio as part of its strategy to reposition the balance sheet to higher yielding assets, and reduce its reliance on "gain on sale" income. Cash balances also increased by $25.1 million for the quarter.
Loans
Total loans, including loans held for sale, decreased during the quarter by $159.3 million, or 3.8%, to $4.1 billion at September 30, 2018. This decrease was driven by a reduction of $110.5 million in indirect loans through normal attrition and $18.6 million in loan sales. As planned, production of indirect auto loans decreased by $96.9 million compared to the previous quarter.
Asset Quality
Asset quality remained strong as nonperforming assets, excluding the guaranteed portion of government loans ("adjusted NPA's") and acquired loans, decreased during the quarter. Adjusted NPA's, a non-GAAP measure, decreased by $3.3 million during the quarter. The decrease was mainly due to the decrease in nonaccrual loans. Credit quality trend performance remains consistent and strong as net charge-offs decreased from 0.17% to 0.09% of average loans for the quarter. Lower charge-offs helped drive the $1.9 million decrease in the provision for loan losses for the quarter.
Fair Value Adjustments
Loan servicing rights decreased by $8.7 million, or 6.9%, during the quarter to $117.0 million at September 30, 2018, compared to $125.7 million at June 30, 2018. MSRs, the primary component of loan servicing rights, contributed the majority of the change, decreasing by 6.9% to $106.9 million at September 30, 2018, primarily due to the sale of MSRs noted above. The current estimated fair market value of MSRs was $111.6 million at September 30, 2018.
At September 30, 2018, fair value adjustments recorded on the balance sheet for loans held for sale, interest rate lock commitments ("IRLCs"), and hedge items were $11.8 million, a $3.0 million, or 20.1% decrease, from June 30, 2018. The gross pipeline of interest rate lock commitments was $65.7 million lower at quarter end, compared to June 30, 2018, due to slower seasonal production.
Deposits
Core deposits grew by $17.7 million during the quarter to $3.1 billion with noninterest bearing demand deposits contributing to nearly all of this growth. Noninterest bearing deposits grew by 1.4% as interest bearing demand, money market, and savings accounts remained flat. This increase was offset by a decrease in time deposits of $37.4 million during the quarter, mainly due to a decrease of $30.6 million in brokered deposits, resulting in a decrease in total deposits of $19.7 million, or 0.5%.
INCOME STATEMENT
Net Income
Net income was $12.7 million, or a $3.4 million increase over the previous quarter, as net interest income increased by $2.3 million and noninterest expense decreased by $3.3 million, primarily due to a $1.7 million decrease in commissions as a 17.7% decrease in mortgage loan production during the quarter drove lower mortgage commissions. A decrease of $1.9 million in the provision for loan losses also contributed to the increase in net income. Offsetting these changes was a decrease in noninterest income of $3.3 million, primarily due to a $5.9 million decrease in mortgage banking income, offset by a $2.8 million increase in other operating income mainly due to a $2.6 million death benefit received from cash surrender value life insurance policies during the quarter.
Net income was $4.8 million higher compared to the same quarter a year ago, primarily due to an increase in net interest income of $5.4 million.
Interest Income
Interest income of $46.9 million was higher by $2.1 million, compared to the prior quarter, primarily driven by an increase of 25 basis points in the yield on total loans. Interest income on loans for the quarter included a $1.1 million interest recovery from one nonaccrual commercial loan, which contributed 11 basis points to this increase. Although average loans decreased by $111.7 million for the quarter, $98.7 million of this was due to a decrease in lower yielding indirect loans, which were partially replaced in the portfolio mix with higher yielding commercial and SBA loans. An increase in average investment securities of $26.4 million also contributed to higher interest income. The yield on total average interest-bearing assets increased 23 basis points from the previous quarter.
As compared to the same period in the prior year, interest income increased by $7.8 million as average loans increased by $384.6 million and the yield on total average interest-bearing assets increased by 43 basis points, as market interest rates increased year over year.
Interest Expense
Interest expense of $8.1 million decreased slightly by $143,000, or 1.7%, for the quarter as average FHLB borrowings decreased by $226.1 million.
As compared to the same period in the prior year, interest expense increased by $2.4 million. Rising market rates paid on money market deposits and CD's drove the increase, as well as increased volume and rates for short term borrowings.
Net Interest Margin
The net interest margin was 3.45% for the quarter compared to 3.22% in the previous quarter, an increase of 23 basis points. Adjusting the net interest margin for the $1.1 million interest recovery, the net interest margin percentage was 3.36% for the quarter. Loan coupon yields, excluding fees, SBA discount accretion, and accretable yields, increased faster than deposit and borrowing costs during the quarter.
The yield on total interest-bearing liabilities increased by only 2 basis points while the yield on average earning assets increased by 23 basis points from 3.95% to 4.18%. The previously mentioned interest recovery of $1.1 million contributed 11 basis points to this increase. Average loans decreased by $111.7 million, of which $98.7 million was a decrease in lower yielding indirect auto loans. Higher yielding commercial and SBA loans increased by $40.8 million as the Bank's strategy to reposition its balance sheet continues to occur.
Average interest-bearing liabilities decreased by $172.9 million, as average borrowings decreased by $226.1 million during the quarter since average deposit growth of $53.2 million helped to fund loan production.
As compared to the same period a year ago, the net interest margin for the quarter increased by 25 basis points to 3.45% from 3.20%, primarily due to a 43 basis point increase in the yield on total average interest-earning assets of $4.5 billion, offset by an increase of 27 basis points in the yield on total average interest-bearing liabilities of $3.1 billion. Average earning assets increased by $307.0 million, primarily due to an increase in average loans over the year. Average interest-bearing liabilities increased by $136.1 million, primarily driven by an increase in average borrowings of $148.2 million, offset by a decrease in average interest-bearing deposits of $12.3 million.
Noninterest Income
On a linked-quarter basis, noninterest income decreased by $3.3 million, or 9.0%, largely due to a net decrease in income from mortgage banking activities of $5.9 million, or 20.0%. Gross mortgage revenue decreased by $4.5 million and the mortgage MSR valuation impairment resulted in a decrease in related income of $1.3 million. Mortgage production also decreased during the quarter by $160.7 million. Offsetting this decrease, other noninterest income increased by $2.8 million, primarily due to the $2.6 million death benefit received from life insurance policies during the quarter.
Compared to the same period a year ago, noninterest income for the quarter of $33.7 million was flat.
Noninterest Expense
On a linked-quarter basis, total noninterest expense decreased by $3.3 million, or 5.6%, due to a decrease in commissions expense of $1.7 million from lower mortgage loan originations and a net decrease in all other noninterest expenses of $1.5 million. These were primarily due to projects related to debit card and ATM fraud loss, outside service fees, utilities, and other liabilities, offset by increased incentives related to the balance sheet strategies implemented earlier in the year.
Compared to the second quarter of 2017, noninterest expense of $55.6 million increased by $2.7 million, or 5.2%. Salaries and employee benefits expense increased by $2.5 million, or 9.4%, due primarily to an increase in headcount of 63 in the mortgage and retail delivery and branches.
Income Taxes
On a linked-quarter basis, income tax expense increased by $801,000, primarily due to the increase in pre-tax income for the quarter.
Compared to the third quarter of 2017, income tax expense decreased by $1.1 million as the effective tax rate decreased from 37.9% to 22.6% primarily as a result of the Tax Cuts and Jobs Act enacted on December 22, 2017, which 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.
OTHER NEWS
On August 30, 2018, the Bank sold MSRs relating to certain single family mortgage loans serviced for the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), with an aggregate unpaid principal balance of approximately $1.2 billion, effective as of August 31, 2018 ("Sale Date"). Approximately $13.9 million in deposit balances representing custodial funds and advances related to the MSRs were transferred to the buyer by the Bank after the Sale Date. The sale represented approximately 12% of the Bank's total single family mortgage servicing portfolio as of August 31, 2018.
This was the first sale of MSRs executed by the Bank as part of the Company's capital management strategy. The Bank anticipates executing other MSRs sales from time to time in the future as part of its ordinary course of business.
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 loans are provided in Georgia and Florida 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 |
||||||||||||||||||||
As of or for the Quarter Ended |
As of or for the Nine Months Ended |
|||||||||||||||||||
($ in thousands, except per share data) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||||
INCOME STATEMENT DATA: |
||||||||||||||||||||
Interest income |
$ |
46,872 |
$ |
44,740 |
$ |
39,105 |
$ |
133,174 |
$ |
116,325 |
||||||||||
Interest expense |
8,125 |
8,268 |
5,711 |
23,187 |
16,951 |
|||||||||||||||
Net interest income |
38,747 |
36,472 |
33,394 |
109,987 |
99,374 |
|||||||||||||||
Provision for loan losses |
360 |
2,286 |
1,425 |
4,776 |
4,275 |
|||||||||||||||
Noninterest income |
33,662 |
36,977 |
33,638 |
107,772 |
106,064 |
|||||||||||||||
Noninterest expense |
55,585 |
58,852 |
52,837 |
169,179 |
157,960 |
|||||||||||||||
Net income before income taxes |
16,464 |
12,311 |
12,770 |
43,804 |
43,203 |
|||||||||||||||
Income tax expense |
3,722 |
2,921 |
4,836 |
9,905 |
15,850 |
|||||||||||||||
Net income |
12,742 |
9,390 |
7,934 |
33,899 |
27,353 |
|||||||||||||||
PERFORMANCE: |
||||||||||||||||||||
Earnings per common share - basic |
$ |
0.47 |
$ |
0.35 |
$ |
0.30 |
$ |
1.25 |
$ |
1.03 |
||||||||||
Earnings per common share - diluted |
0.47 |
0.34 |
0.30 |
1.25 |
1.03 |
|||||||||||||||
Total revenues |
72,409 |
73,449 |
67,032 |
217,759 |
205,438 |
|||||||||||||||
Book value per common share |
15.85 |
15.48 |
14.47 |
15.85 |
14.47 |
|||||||||||||||
Tangible book value per common share(1) |
15.43 |
15.05 |
14.00 |
15.43 |
14.00 |
|||||||||||||||
Cash dividends paid per common share |
0.12 |
0.12 |
0.12 |
0.36 |
0.36 |
|||||||||||||||
Dividend payout ratio |
25.53 |
% |
34.29 |
% |
40.00 |
% |
28.80 |
% |
34.95 |
% |
||||||||||
Return on average assets |
1.05 |
% |
0.77 |
% |
0.70 |
% |
0.95 |
% |
0.81 |
% |
||||||||||
Return on average shareholders' equity |
11.87 |
% |
9.06 |
% |
8.28 |
% |
10.92 |
% |
9.66 |
% |
||||||||||
Equity to assets ratio |
8.98 |
% |
8.60 |
% |
8.61 |
% |
8.98 |
% |
8.61 |
% |
||||||||||
Net interest margin |
3.45 |
% |
3.22 |
% |
3.20 |
% |
3.32 |
% |
3.20 |
% |
||||||||||
END OF PERIOD BALANCE SHEET SUMMARY: |
||||||||||||||||||||
Total assets |
$ |
4,812,056 |
$ |
4,892,369 |
$ |
4,505,423 |
$ |
4,812,056 |
$ |
4,505,423 |
||||||||||
Earning assets |
4,448,875 |
4,549,315 |
4,167,549 |
4,448,875 |
4,167,549 |
|||||||||||||||
Loans, excluding loans held-for-sale |
3,706,953 |
3,792,886 |
3,409,707 |
3,706,953 |
3,409,707 |
|||||||||||||||
Total loans |
4,078,272 |
4,237,572 |
3,750,036 |
4,078,272 |
3,750,036 |
|||||||||||||||
Total deposits |
4,049,969 |
4,069,630 |
3,938,360 |
4,049,969 |
3,938,360 |
|||||||||||||||
Shareholders' equity |
432,098 |
420,962 |
388,068 |
432,098 |
388,068 |
|||||||||||||||
Assets serviced for others(2) |
10,882,832 |
10,632,607 |
10,109,466 |
10,882,832 |
10,109,466 |
|||||||||||||||
ASSET QUALITY RATIOS: |
||||||||||||||||||||
Net charge-offs to average loans |
0.09 |
% |
0.17 |
% |
0.13 |
% |
0.12 |
% |
0.13 |
% |
||||||||||
Allowance to period-end loans |
0.84 |
% |
0.83 |
% |
0.90 |
% |
0.84 |
% |
0.90 |
% |
||||||||||
Adjusted allowance to adjusted period end loans(1) |
1.14 |
% |
1.16 |
% |
1.29 |
% |
1.14 |
% |
1.29 |
% |
||||||||||
Nonperforming assets to total loans, ORE and repossessions |
1.92 |
% |
1.96 |
% |
1.71 |
% |
1.92 |
% |
1.71 |
% |
||||||||||
Adjusted nonperforming assets to loans, ORE and repossessions(3) |
0.92 |
% |
0.99 |
% |
1.05 |
% |
0.92 |
% |
1.05 |
% |
||||||||||
Allowance to nonperforming loans, ORE and repossessions |
0.44x |
0.42x |
0.52x |
0.44x |
0.52x |
|||||||||||||||
SELECTED RATIOS: |
||||||||||||||||||||
Loans to total deposits |
91.53 |
% |
93.20 |
% |
86.58 |
% |
91.53 |
% |
86.58 |
% |
||||||||||
Average total loans to average earning assets |
92.29 |
% |
92.90 |
% |
89.85 |
% |
92.63 |
% |
89.61 |
% |
||||||||||
Noninterest income to total revenue |
46.49 |
% |
50.34 |
% |
50.18 |
% |
49.49 |
% |
51.63 |
% |
||||||||||
Leverage ratio |
8.96 |
% |
8.43 |
% |
8.81 |
% |
8.96 |
% |
8.81 |
% |
||||||||||
Common equity tier 1 capital |
9.15 |
% |
8.45 |
% |
8.81 |
% |
9.15 |
% |
8.81 |
% |
||||||||||
Tier 1 risk-based capital |
10.24 |
% |
9.50 |
% |
9.96 |
% |
10.24 |
% |
9.96 |
% |
||||||||||
Total risk-based capital |
12.78 |
% |
11.99 |
% |
12.68 |
% |
12.78 |
% |
12.68 |
% |
||||||||||
Mortgage loan production |
$ |
748,044 |
$ |
908,754 |
$ |
752,854 |
$ |
2,270,112 |
$ |
2,106,277 |
||||||||||
Total mortgage loan sales |
771,058 |
800,084 |
731,595 |
2,067,626 |
1,986,671 |
|||||||||||||||
Indirect automobile production |
86,801 |
183,675 |
256,084 |
529,036 |
822,341 |
|||||||||||||||
Total indirect automobile sales |
18,614 |
29,275 |
27,115 |
133,889 |
371,546 |
|||||||||||||||
(1) Non-GAAP financial measure. See non-GAAP reconciliation table for the comparable GAAP. |
||||||||||||||||||||
(2) Balances for September 30, 2018 include approximately $1.2 billion of sub-serviced loans as a result of the August 31, 2018 MSRs sale. Servicing on these loans transferred to the Purchaser on 10/1/18 and 10/16/18. |
||||||||||||||||||||
(3) Excludes acquired loans and net of government guarantees. See non-GAAP reconciliation table for the comparable GAAP. |
||||||||||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
||||||||||||
($ in thousands) |
September 30, |
June 30, |
September 30, |
|||||||||
ASSETS |
||||||||||||
Cash and cash equivalents |
$ |
182,672 |
$ |
157,586 |
$ |
312,027 |
||||||
Investment securities available-for-sale |
209,180 |
148,155 |
124,827 |
|||||||||
Investment securities held-to-maturity |
20,383 |
20,984 |
15,072 |
|||||||||
Loans held-for-sale |
371,319 |
444,686 |
340,329 |
|||||||||
Loans |
3,706,953 |
3,792,886 |
3,409,707 |
|||||||||
Allowance for loan losses |
(31,157) |
(31,623) |
(30,703) |
|||||||||
Loans, net of allowance for loan losses |
3,675,796 |
3,761,263 |
3,379,004 |
|||||||||
Premises and equipment, net |
91,359 |
90,246 |
87,792 |
|||||||||
Other real estate, net |
8,031 |
6,834 |
8,624 |
|||||||||
Bank owned life insurance |
71,092 |
72,703 |
71,455 |
|||||||||
Servicing rights, net |
116,982 |
125,704 |
111,890 |
|||||||||
Other assets |
65,242 |
64,208 |
54,403 |
|||||||||
Total assets |
$ |
4,812,056 |
$ |
4,892,369 |
$ |
4,505,423 |
||||||
LIABILITIES |
||||||||||||
Deposits |
||||||||||||
Noninterest-bearing demand deposits |
$ |
1,249,391 |
$ |
1,232,650 |
$ |
1,112,714 |
||||||
Interest-bearing deposits |
||||||||||||
Demand deposits |
477,477 |
491,307 |
464,780 |
|||||||||
Money market and savings deposits |
1,413,960 |
1,399,160 |
1,371,233 |
|||||||||
Time deposits |
909,141 |
946,513 |
989,633 |
|||||||||
Total deposits |
4,049,969 |
4,069,630 |
3,938,360 |
|||||||||
Short-term borrowings |
163,562 |
237,886 |
14,746 |
|||||||||
Subordinated debt, net |
120,680 |
120,653 |
120,554 |
|||||||||
Other liabilities |
45,747 |
43,238 |
43,695 |
|||||||||
Total liabilities |
4,379,958 |
4,471,407 |
4,117,355 |
|||||||||
SHAREHOLDERS' EQUITY |
||||||||||||
Common stock |
226,605 |
223,771 |
212,633 |
|||||||||
Accumulated other comprehensive (loss) income, net |
(2,270) |
(1,096) |
964 |
|||||||||
Retained earnings |
207,763 |
198,287 |
174,471 |
|||||||||
Total shareholders' equity |
432,098 |
420,962 |
388,068 |
|||||||||
Total liabilities and shareholders' equity |
$ |
4,812,056 |
$ |
4,892,369 |
$ |
4,505,423 |
||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||
For the Quarter Ended |
For the Nine Months Ended |
||||||||||||||||||||
($ in thousands, except per share data) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
INTEREST INCOME |
|||||||||||||||||||||
Loans, including fees |
$ |
44,746 |
$ |
42,845 |
$ |
37,290 |
$ |
127,440 |
$ |
110,933 |
|||||||||||
Investment securities |
1,646 |
1,354 |
1,011 |
4,175 |
3,389 |
||||||||||||||||
Other |
480 |
541 |
804 |
1,559 |
2,003 |
||||||||||||||||
Total interest income |
46,872 |
44,740 |
39,105 |
133,174 |
116,325 |
||||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||||
Deposits |
5,655 |
4,823 |
4,163 |
14,791 |
11,503 |
||||||||||||||||
Other borrowings |
818 |
1,812 |
16 |
3,540 |
910 |
||||||||||||||||
Subordinated debt |
1,652 |
1,633 |
1,532 |
4,856 |
4,538 |
||||||||||||||||
Total interest expense |
8,125 |
8,268 |
5,711 |
23,187 |
16,951 |
||||||||||||||||
Net interest income |
38,747 |
36,472 |
33,394 |
109,987 |
99,374 |
||||||||||||||||
Provision for loan losses |
360 |
2,286 |
1,425 |
4,776 |
4,275 |
||||||||||||||||
Net interest income after provision for loan losses |
38,387 |
34,186 |
31,969 |
105,211 |
95,099 |
||||||||||||||||
NONINTEREST INCOME |
|||||||||||||||||||||
Service charges on deposit accounts |
1,690 |
1,468 |
1,553 |
4,630 |
4,489 |
||||||||||||||||
Other fees and charges |
2,464 |
2,449 |
2,197 |
7,148 |
6,060 |
||||||||||||||||
Mortgage banking activities |
23,520 |
29,383 |
25,040 |
81,465 |
77,865 |
||||||||||||||||
Indirect lending activities |
1,120 |
1,270 |
1,901 |
4,538 |
9,967 |
||||||||||||||||
SBA lending activities |
914 |
1,217 |
1,460 |
3,288 |
3,959 |
||||||||||||||||
Trust and wealth management services |
588 |
574 |
325 |
1,694 |
853 |
||||||||||||||||
Other |
3,366 |
616 |
1,162 |
5,009 |
2,871 |
||||||||||||||||
Total noninterest income |
33,662 |
36,977 |
33,638 |
107,772 |
106,064 |
||||||||||||||||
NONINTEREST EXPENSE |
|||||||||||||||||||||
Salaries and employee benefits |
28,805 |
28,215 |
26,331 |
84,581 |
77,621 |
||||||||||||||||
Commissions |
9,523 |
11,242 |
9,244 |
28,271 |
26,126 |
||||||||||||||||
Occupancy and equipment |
4,654 |
4,541 |
4,508 |
14,127 |
13,371 |
||||||||||||||||
Professional and other services |
4,243 |
4,635 |
4,604 |
13,676 |
13,723 |
||||||||||||||||
Other |
8,360 |
10,219 |
8,150 |
28,524 |
27,119 |
||||||||||||||||
Total noninterest expense |
55,585 |
58,852 |
52,837 |
169,179 |
157,960 |
||||||||||||||||
Income before income tax expense |
16,464 |
12,311 |
12,770 |
43,804 |
43,203 |
||||||||||||||||
Income tax expense |
3,722 |
2,921 |
4,836 |
9,905 |
15,850 |
||||||||||||||||
NET INCOME |
$ |
12,742 |
$ |
9,390 |
$ |
7,934 |
$ |
33,899 |
$ |
27,353 |
|||||||||||
EARNINGS PER COMMON SHARE: |
|||||||||||||||||||||
Basic |
$ |
0.47 |
$ |
0.35 |
$ |
0.30 |
$ |
1.25 |
$ |
1.03 |
|||||||||||
Diluted |
$ |
0.47 |
$ |
0.34 |
$ |
0.30 |
$ |
1.25 |
$ |
1.03 |
|||||||||||
Weighted average common shares outstanding-basic |
27,229 |
27,093 |
26,729 |
27,112 |
26,500 |
||||||||||||||||
Weighted average common shares outstanding-diluted |
27,337 |
27,222 |
26,849 |
27,223 |
26,625 |
||||||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||
Commercial |
$ |
940,430 |
$ |
938,203 |
$ |
897,297 |
$ |
811,199 |
$ |
789,788 |
||||||||||
SBA |
163,147 |
146,508 |
140,308 |
141,208 |
142,989 |
|||||||||||||||
Total commercial and SBA loans |
1,103,577 |
1,084,711 |
1,037,605 |
952,407 |
932,777 |
|||||||||||||||
Construction loans |
262,048 |
269,330 |
265,780 |
248,317 |
243,600 |
|||||||||||||||
Indirect automobile |
1,588,419 |
1,698,879 |
1,719,670 |
1,716,156 |
1,609,678 |
|||||||||||||||
Installment loans and personal lines of credit |
29,260 |
31,807 |
28,716 |
25,995 |
26,189 |
|||||||||||||||
Total consumer loans |
1,617,679 |
1,730,686 |
1,748,386 |
1,742,151 |
1,635,867 |
|||||||||||||||
Residential mortgage |
571,081 |
555,636 |
512,673 |
489,721 |
452,584 |
|||||||||||||||
Home equity lines of credit |
152,568 |
152,523 |
149,864 |
148,370 |
144,879 |
|||||||||||||||
Total mortgage loans |
723,649 |
708,159 |
662,537 |
638,091 |
597,463 |
|||||||||||||||
Loans |
3,706,953 |
3,792,886 |
3,714,308 |
3,580,966 |
3,409,707 |
|||||||||||||||
Loans held-for-sale: |
||||||||||||||||||||
Residential mortgage |
328,090 |
399,630 |
355,515 |
269,140 |
257,325 |
|||||||||||||||
SBA |
18,229 |
20,056 |
19,785 |
13,615 |
8,004 |
|||||||||||||||
Indirect automobile |
25,000 |
25,000 |
50,000 |
75,000 |
75,000 |
|||||||||||||||
Total loans held-for-sale |
371,319 |
444,686 |
425,300 |
357,755 |
340,329 |
|||||||||||||||
Total loans |
$ |
4,078,272 |
$ |
4,237,572 |
$ |
4,139,608 |
$ |
3,938,721 |
$ |
3,750,036 |
||||||||||
DEPOSITS BY CATEGORY |
||||||||||||||||||||||||||||||||||
For the Quarter Ended |
||||||||||||||||||||||||||||||||||
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
||||||||||||||||||||||||||||||
($ in thousands) |
Average |
Rate |
Average |
Rate |
Average |
Rate |
Average |
Rate |
Average |
Rate |
||||||||||||||||||||||||
Noninterest-bearing |
$ |
1,244,640 |
— |
% |
$ |
1,172,298 |
— |
% |
$ |
1,120,562 |
— |
% |
$ |
1,124,759 |
— |
% |
$ |
1,103,414 |
— |
% |
||||||||||||||
Interest-bearing demand |
463,292 |
0.13 |
% |
489,051 |
0.14 |
% |
461,614 |
0.14 |
% |
453,714 |
0.11 |
% |
447,348 |
0.12 |
% |
|||||||||||||||||||
Money market and |
1,415,868 |
0.70 |
% |
1,349,447 |
0.61 |
% |
1,345,905 |
0.55 |
% |
1,381,207 |
0.53 |
% |
1,341,189 |
0.49 |
% |
|||||||||||||||||||
Time deposits |
918,668 |
1.30 |
% |
906,133 |
1.16 |
% |
901,394 |
1.04 |
% |
958,790 |
0.94 |
% |
1,021,563 |
0.92 |
% |
|||||||||||||||||||
Total average deposits |
$ |
4,042,468 |
0.55 |
% |
$ |
3,916,929 |
0.49 |
% |
$ |
3,829,475 |
0.46 |
% |
$ |
3,918,470 |
0.43 |
% |
$ |
3,913,514 |
0.42 |
% |
||||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
NONPERFORMING ASSETS |
|||||||||||||||||||
Nonaccrual loans (2)(6) |
$ |
53,173 |
$ |
58,027 |
$ |
58,706 |
$ |
47,012 |
$ |
41,408 |
|||||||||
Loans past due 90 days or more and still accruing |
8,858 |
8,278 |
7,728 |
6,313 |
6,534 |
||||||||||||||
Repossessions |
1,271 |
1,303 |
1,853 |
2,392 |
2,040 |
||||||||||||||
Other real estate (ORE) |
8,031 |
6,834 |
7,668 |
7,621 |
8,624 |
||||||||||||||
Nonperforming assets |
$ |
71,333 |
$ |
74,442 |
$ |
75,955 |
$ |
63,338 |
$ |
58,606 |
|||||||||
ASSET QUALITY RATIOS |
|||||||||||||||||||
Loans 30-89 days past due |
$ |
6,858 |
$ |
6,514 |
$ |
15,695 |
$ |
22,079 |
$ |
10,193 |
|||||||||
Loans 30-89 days past due to loans |
0.19 |
% |
0.17 |
% |
0.42 |
% |
0.62 |
% |
0.30 |
% |
|||||||||
Loans past due 90 days or more and still accruing to loans |
0.24 |
% |
0.22 |
% |
0.21 |
% |
0.18 |
% |
0.19 |
% |
|||||||||
Nonperforming loans as a % of loans |
1.67 |
% |
1.75 |
% |
1.79 |
% |
1.49 |
% |
1.41 |
% |
|||||||||
Nonperforming assets to loans, ORE, and repossessions |
1.92 |
% |
1.96 |
% |
2.04 |
% |
1.76 |
% |
1.71 |
% |
|||||||||
Adjusted nonperforming assets to adjusted loans, ORE and repossessions(8) |
0.92 |
% |
0.99 |
% |
1.14 |
% |
1.06 |
% |
1.05 |
% |
|||||||||
Nonperforming assets to total assets |
1.48 |
% |
1.52 |
% |
1.58 |
% |
1.38 |
% |
1.30 |
% |
|||||||||
Adjusted nonperforming assets to total assets(8) |
0.68 |
% |
0.73 |
% |
0.84 |
% |
0.79 |
% |
0.75 |
% |
|||||||||
Classified Asset Ratio(4) |
19.60 |
% |
21.84 |
% |
21.70 |
% |
20.70 |
% |
20.59 |
% |
|||||||||
ALL to nonperforming loans |
50.23 |
% |
47.69 |
% |
46.57 |
% |
55.83 |
% |
64.04 |
% |
|||||||||
Net charge-offs, annualized to average loans |
0.09 |
% |
0.17 |
% |
0.11 |
% |
0.11 |
% |
0.13 |
% |
|||||||||
ALL as a % of loans |
0.84 |
% |
0.83 |
% |
0.83 |
% |
0.83 |
% |
0.90 |
% |
|||||||||
Adjusted ALL as a % of adjusted loans(7) |
1.14 |
% |
1.16 |
% |
1.15 |
% |
1.16 |
% |
1.29 |
% |
|||||||||
ALL as a % of loans, excluding acquired loans(5) |
0.88 |
% |
0.87 |
% |
0.88 |
% |
0.88 |
% |
0.96 |
% |
|||||||||
CLASSIFIED ASSETS |
|||||||||||||||||||
Classified loans(1) |
$ |
80,176 |
$ |
87,688 |
$ |
83,867 |
$ |
77,679 |
$ |
75,033 |
|||||||||
ORE and repossessions |
9,302 |
8,137 |
9,521 |
10,013 |
10,664 |
||||||||||||||
Total classified assets(3) |
$ |
89,478 |
$ |
95,825 |
$ |
93,388 |
$ |
87,692 |
$ |
85,697 |
|||||||||
(1) Amount of SBA guarantee included in classified loans |
$ |
5,254 |
$ |
4,870 |
$ |
2,879 |
$ |
2,930 |
$ |
2,755 |
|||||||||
(2) Amount of repurchased government-guaranteed loans, primarily residential mortgage loans, included in nonaccrual loans |
$ |
27,218 |
$ |
27,220 |
$ |
26,091 |
$ |
19,478 |
$ |
15,450 |
|||||||||
(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) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||
Loan servicing revenue |
$ |
1,581 |
$ |
1,690 |
$ |
1,769 |
$ |
2,158 |
$ |
2,130 |
||||||||||
Gain on sale of loans |
53 |
22 |
442 |
532 |
263 |
|||||||||||||||
Gain on capitalization of servicing rights |
124 |
196 |
569 |
406 |
182 |
|||||||||||||||
Ancillary loan servicing revenue |
162 |
166 |
183 |
247 |
172 |
|||||||||||||||
Gross indirect lending revenue |
1,920 |
2,074 |
2,963 |
3,343 |
2,747 |
|||||||||||||||
Less: |
||||||||||||||||||||
Amortization of servicing rights, net |
(800) |
(804) |
(815) |
(777) |
(846) |
|||||||||||||||
Total income from indirect lending activities |
$ |
1,120 |
$ |
1,270 |
$ |
2,148 |
$ |
2,566 |
$ |
1,901 |
||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||
ANALYSIS OF INDIRECT LENDING |
||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||
As of or for the Quarter Ended |
||||||||||||||||||||||
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||||
Average loans outstanding(1) |
$ |
1,673,014 |
$ |
1,771,665 |
$ |
1,784,982 |
$ |
1,748,179 |
$ |
1,627,946 |
||||||||||||
Loans serviced for others |
$ |
838,574 |
$ |
932,915 |
$ |
1,018,743 |
$ |
1,056,509 |
$ |
1,114,710 |
||||||||||||
Past due loans: |
||||||||||||||||||||||
Amount 30+ days past due |
2,659 |
2,407 |
2,257 |
3,423 |
2,965 |
|||||||||||||||||
Number 30+ days past due |
258 |
217 |
197 |
283 |
255 |
|||||||||||||||||
30+ day performing delinquency rate(2) |
0.16 |
% |
0.14 |
% |
0.13 |
% |
0.19 |
% |
0.18 |
% |
||||||||||||
Nonperforming loans |
1,490 |
1,526 |
1,539 |
1,916 |
1,405 |
|||||||||||||||||
Nonperforming loans as a percentage of |
0.09 |
% |
0.09 |
% |
0.09 |
% |
0.11 |
% |
0.08 |
% |
||||||||||||
Net charge-offs |
$ |
1,069 |
$ |
864 |
$ |
1,147 |
$ |
798 |
$ |
1,047 |
||||||||||||
Net charge-off rate(3) |
0.26 |
% |
0.20 |
% |
0.27 |
% |
0.19 |
% |
0.27 |
% |
||||||||||||
Number of vehicles repossessed during |
139 |
132 |
140 |
107 |
132 |
|||||||||||||||||
Quarterly production weighted average |
769 |
779 |
781 |
783 |
776 |
|||||||||||||||||
(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) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||||
Production by state: |
||||||||||||||||||||||
Alabama (3) |
$ |
50 |
$ |
9,920 |
$ |
12,239 |
$ |
19,216 |
$ |
13,587 |
||||||||||||
Arkansas (3) |
— |
4,488 |
20,322 |
30,732 |
26,997 |
|||||||||||||||||
North Carolina (3) |
97 |
15,580 |
23,383 |
28,912 |
16,545 |
|||||||||||||||||
South Carolina (3) |
— |
11,065 |
12,322 |
16,559 |
10,959 |
|||||||||||||||||
Florida |
51,620 |
52,645 |
65,786 |
87,750 |
51,723 |
|||||||||||||||||
Georgia |
35,034 |
38,322 |
38,288 |
45,571 |
31,266 |
|||||||||||||||||
Mississippi (3) |
— |
22,605 |
24,785 |
32,141 |
24,535 |
|||||||||||||||||
Tennessee (3) |
— |
11,098 |
13,509 |
17,635 |
10,931 |
|||||||||||||||||
Virginia (3) |
— |
— |
3,620 |
6,495 |
8,223 |
|||||||||||||||||
Texas (2) |
— |
— |
— |
— |
13,312 |
|||||||||||||||||
Louisiana (3) |
— |
17,952 |
44,306 |
60,021 |
47,576 |
|||||||||||||||||
Oklahoma (2) |
— |
— |
— |
— |
430 |
|||||||||||||||||
Total production by state |
$ |
86,801 |
$ |
183,675 |
$ |
258,560 |
$ |
345,032 |
$ |
256,084 |
||||||||||||
Loan sales |
$ |
18,614 |
$ |
29,275 |
$ |
86,000 |
$ |
59,681 |
$ |
27,115 |
||||||||||||
Portfolio yield (1) |
3.08 |
% |
3.02 |
% |
2.98 |
% |
2.98 |
% |
2.92 |
% |
||||||||||||
(1) |
Includes held-for-sale |
|||||||||||||||||||||
(2) |
Fidelity exited the Oklahoma and Texas markets in Q3 2017 |
|||||||||||||||||||||
(3) |
Fidelity exited the Alabama, Arkansas, North Carolina, South Carolina, Mississippi, Tennessee, Virginia, and Louisiana markets in 2018 |
|||||||||||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||
INCOME FROM MORTGAGE BANKING ACTIVITIES |
||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||
As of or for the Quarter Ended |
||||||||||||||||||||||
(in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||||
Marketing gain, net |
$ |
16,427 |
$ |
20,330 |
$ |
17,575 |
$ |
16,683 |
$ |
19,713 |
||||||||||||
Origination points and fees |
4,707 |
5,495 |
3,647 |
3,482 |
3,815 |
|||||||||||||||||
Loan servicing revenue |
6,360 |
6,206 |
6,221 |
5,851 |
5,616 |
|||||||||||||||||
Gross mortgage revenue |
$ |
27,494 |
$ |
32,031 |
$ |
27,443 |
$ |
26,016 |
$ |
29,144 |
||||||||||||
Less: |
||||||||||||||||||||||
MSR amortization |
(3,369) |
(3,331) |
(3,426) |
(3,609) |
(3,560) |
|||||||||||||||||
MSR recovery/(impairment), net |
(605) |
683 |
4,545 |
(1,476) |
(544) |
|||||||||||||||||
Total income from mortgage |
$ |
23,520 |
$ |
29,383 |
$ |
28,562 |
$ |
20,931 |
$ |
25,040 |
||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||
ANALYSIS OF MORTGAGE LENDING |
||||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||||
As of or for the Quarter Ended |
||||||||||||||||||||||
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||||
Production by region: |
||||||||||||||||||||||
Georgia |
$ |
436,889 |
$ |
545,951 |
$ |
368,739 |
$ |
423,876 |
$ |
490,323 |
||||||||||||
Florida |
120,230 |
136,990 |
109,034 |
103,490 |
95,010 |
|||||||||||||||||
Alabama/Tennessee |
748 |
2,433 |
2,709 |
4,609 |
7,299 |
|||||||||||||||||
Virginia/Maryland |
130,728 |
148,970 |
91,842 |
106,398 |
129,774 |
|||||||||||||||||
North and South Carolina |
59,449 |
74,410 |
40,990 |
31,360 |
30,448 |
|||||||||||||||||
Total production by region |
$ |
748,044 |
$ |
908,754 |
$ |
613,314 |
$ |
669,733 |
$ |
752,854 |
||||||||||||
% for purchases |
90.6 |
% |
91.6 |
% |
85.1 |
% |
82.9 |
% |
86.3 |
% |
||||||||||||
% for refinance loans |
9.4 |
% |
8.4 |
% |
14.9 |
% |
17.1 |
% |
13.7 |
% |
||||||||||||
Portfolio Production: |
$ |
56,108 |
$ |
75,990 |
$ |
44,554 |
$ |
66,236 |
$ |
56,072 |
||||||||||||
Funded loan type (UPB): |
||||||||||||||||||||||
Conventional |
64.3 |
% |
63.8 |
% |
65.9 |
% |
62.0 |
% |
62.0 |
% |
||||||||||||
FHA/VA/USDA |
21.5 |
% |
20.7 |
% |
22.1 |
% |
21.5 |
% |
23.3 |
% |
||||||||||||
Jumbo |
14.2 |
% |
15.5 |
% |
12.0 |
% |
16.5 |
% |
14.7 |
% |
||||||||||||
Gross pipeline of locked loans to be |
$ |
289,065 |
$ |
354,735 |
$ |
382,386 |
$ |
203,896 |
$ |
265,444 |
||||||||||||
Loans held for sale (UPB) |
$ |
322,722 |
$ |
389,858 |
$ |
348,797 |
$ |
262,315 |
$ |
250,960 |
||||||||||||
Total loan sales (UPB) |
$ |
771,058 |
$ |
800,084 |
$ |
496,484 |
$ |
602,171 |
$ |
731,595 |
||||||||||||
Conventional |
66.6 |
% |
70.7 |
% |
69.1 |
% |
64.3 |
% |
63.0 |
% |
||||||||||||
FHA/VA/USDA |
24.5 |
% |
21.3 |
% |
27.2 |
% |
25.0 |
% |
27.1 |
% |
||||||||||||
Jumbo |
8.9 |
% |
8.0 |
% |
3.7 |
% |
10.7 |
% |
9.9 |
% |
||||||||||||
Average loans outstanding(1) |
$ |
877,890 |
$ |
913,430 |
$ |
725,444 |
$ |
701,932 |
$ |
698,068 |
||||||||||||
(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) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||||
Loans serviced for others (UPB)(1) |
$ |
8,687,984 |
$ |
9,450,326 |
$ |
9,097,869 |
$ |
8,917,117 |
$ |
8,715,198 |
||||||||||||
Average loans serviced for others (UPB)(1) |
$ |
9,279,843 |
$ |
9,244,175 |
$ |
9,038,568 |
$ |
8,896,305 |
$ |
8,657,475 |
||||||||||||
MSR book value, net of amortization |
$ |
108,876 |
$ |
119,372 |
$ |
113,217 |
$ |
110,497 |
$ |
107,434 |
||||||||||||
MSR impairment |
(2,000) |
(4,590) |
(5,274) |
(9,818) |
(8,343) |
|||||||||||||||||
MSR net carrying value |
$ |
106,876 |
$ |
114,782 |
$ |
107,943 |
$ |
100,679 |
$ |
99,091 |
||||||||||||
MSR carrying value as a % of period end UPB |
1.23 |
% |
1.21 |
% |
1.19 |
% |
1.13 |
% |
1.14 |
% |
||||||||||||
Delinquency % loans serviced for others |
1.28 |
% |
1.28 |
% |
1.24 |
% |
1.87 |
% |
1.41 |
% |
||||||||||||
MSR revenue multiple(2) |
4.49 |
4.52 |
4.31 |
4.29 |
4.38 |
|||||||||||||||||
(1) Balances for September 30, 2018 exclude the UPB of loans temporarily sub-serviced as a result of the August 31, 2018 MSRs sale. Servicing transferred to the Purchaser on 10/1/18 and 10/16/18. |
||||||||||||||||||||||
(2) 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 AND YIELDS (UNAUDITED) |
||||||||||||||||||||
For the Quarter Ended |
||||||||||||||||||||
September 30, 2018 |
June 30, 2018 |
September 30, 2017 |
||||||||||||||||||
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
|||||||||||||||
($ in thousands) |
Balance |
Rate |
Balance |
Rate |
Balance |
Rate |
||||||||||||||
Assets |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Commercial |
$ |
949,747 |
5.27 |
% |
$ |
920,995 |
4.71 |
% |
$ |
802,318 |
4.65 |
% |
||||||||
SBA |
166,467 |
8.07 |
% |
154,459 |
7.16 |
% |
150,733 |
7.81 |
% |
|||||||||||
Construction |
255,302 |
6.61 |
% |
267,125 |
6.51 |
% |
238,437 |
6.51 |
% |
|||||||||||
Indirect automobile |
1,673,014 |
3.08 |
% |
1,771,665 |
3.02 |
% |
1,645,641 |
2.92 |
% |
|||||||||||
Installment loans and personal lines of credit |
36,764 |
3.55 |
% |
44,033 |
2.69 |
% |
39,477 |
3.55 |
% |
|||||||||||
Residential mortgage |
877,080 |
4.14 |
% |
912,700 |
4.15 |
% |
704,937 |
3.81 |
% |
|||||||||||
Home equity lines of credit |
152,231 |
5.29 |
% |
151,363 |
4.92 |
% |
144,433 |
4.98 |
% |
|||||||||||
Total loans, net of unearned income (1) |
4,110,605 |
4.32 |
% |
4,222,340 |
4.07 |
% |
3,725,976 |
3.98 |
% |
|||||||||||
Investment securities (1) |
201,696 |
3.29 |
% |
175,314 |
3.14 |
% |
147,572 |
2.76 |
% |
|||||||||||
Other earning assets |
141,748 |
1.34 |
% |
147,405 |
1.47 |
% |
273,505 |
1.16 |
% |
|||||||||||
Total interest-earning assets |
4,454,049 |
4.18 |
% |
4,545,059 |
3.95 |
% |
4,147,053 |
3.75 |
% |
|||||||||||
Noninterest-earning assets: |
||||||||||||||||||||
Cash and due from banks |
39,508 |
36,117 |
41,590 |
|||||||||||||||||
Allowance for loan losses |
(31,581) |
(31,174) |
(30,518) |
|||||||||||||||||
Premises and equipment, net |
91,232 |
90,030 |
87,679 |
|||||||||||||||||
Other real estate |
7,221 |
7,383 |
9,111 |
|||||||||||||||||
Other assets |
242,360 |
243,119 |
224,730 |
|||||||||||||||||
Total noninterest-earning assets |
348,740 |
345,475 |
332,592 |
|||||||||||||||||
Total assets |
$ |
4,802,789 |
$ |
4,890,534 |
$ |
4,479,645 |
||||||||||||||
Liabilities and shareholders' equity |
||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Demand deposits |
$ |
463,292 |
0.13 |
% |
$ |
489,051 |
0.14 |
% |
$ |
447,348 |
0.12 |
% |
||||||||
Money market and savings deposits |
1,415,868 |
0.70 |
% |
1,349,447 |
0.61 |
% |
1,341,189 |
0.49 |
% |
|||||||||||
Time deposits |
918,668 |
1.30 |
% |
906,133 |
1.16 |
% |
1,021,563 |
0.92 |
% |
|||||||||||
Total interest-bearing deposits |
2,797,828 |
0.80 |
% |
2,744,631 |
0.70 |
% |
2,810,100 |
0.59 |
% |
|||||||||||
Other short-term borrowings |
169,128 |
1.92 |
% |
395,215 |
1.84 |
% |
20,899 |
0.32 |
% |
|||||||||||
Subordinated debt |
120,667 |
5.43 |
% |
120,637 |
5.43 |
% |
120,538 |
5.04 |
% |
|||||||||||
Total interest-bearing liabilities |
3,087,623 |
1.04 |
% |
3,260,483 |
1.02 |
% |
2,951,537 |
0.77 |
% |
|||||||||||
Noninterest-bearing liabilities and shareholders' equity: |
||||||||||||||||||||
Demand deposits |
1,244,640 |
1,172,298 |
1,103,414 |
|||||||||||||||||
Other liabilities |
44,538 |
42,081 |
44,732 |
|||||||||||||||||
Shareholders' equity |
425,988 |
415,672 |
379,962 |
|||||||||||||||||
Total noninterest-bearing liabilities and |
1,715,166 |
1,630,051 |
1,528,108 |
|||||||||||||||||
Total liabilities and shareholders' equity |
$ |
4,802,789 |
$ |
4,890,534 |
$ |
4,479,645 |
||||||||||||||
Net interest spread |
3.14 |
% |
2.93 |
% |
2.98 |
% |
||||||||||||||
Net interest margin |
3.45 |
% |
3.22 |
% |
3.20 |
% |
||||||||||||||
(1) Interest income includes the effect of taxable-equivalent adjustment using a 21% tax rate for the quarters ended September 30, 2018 and June 30, 2018 and a 35% tax rate for the quarter ended September 30, 2017. |
||||||||||||||||||||
FIDELITY SOUTHERN CORPORATION AND SUBSIDIARIES GAAP TO NON-GAAP RATIO RECONCILIATION (UNAUDITED) |
|||||||||||||||||||
For the Quarter Ended |
|||||||||||||||||||
($ in thousands) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||
Reconciliation of nonperforming assets to adjusted nonperforming assets: |
|||||||||||||||||||
Nonperforming assets (GAAP) |
$ |
71,333 |
$ |
74,442 |
$ |
75,955 |
$ |
63,338 |
$ |
58,606 |
|||||||||
Less: repurchased government-guaranteed mortgage |
(27,218) |
(27,220) |
(26,091) |
(19,478) |
(15,450) |
||||||||||||||
Less: SBA guaranteed loans included on nonaccrual |
(4,049) |
(3,639) |
(1,541) |
(1,652) |
(2,145) |
||||||||||||||
Less: Nonaccrual acquired loans |
(7,388) |
(7,648) |
(7,890) |
(6,242) |
(7,366) |
||||||||||||||
Adjusted nonperforming assets, excluding acquired |
$ |
32,678 |
$ |
35,935 |
$ |
40,433 |
$ |
35,966 |
$ |
33,645 |
|||||||||
Reconciliation of total loans, ORE and repossessions to total loans, ORE and repossessions, less acquired loans: |
|||||||||||||||||||
Loans, excluding Loans Held-for-Sale |
$ |
3,706,953 |
$ |
3,792,886 |
$ |
3,714,308 |
$ |
3,580,966 |
$ |
3,409,707 |
|||||||||
Add: ORE |
8,031 |
6,834 |
7,668 |
7,621 |
8,624 |
||||||||||||||
Add: repossessions |
1,271 |
1,303 |
1,853 |
2,392 |
2,040 |
||||||||||||||
Total loans, ORE, and repossessions (GAAP) |
3,716,255 |
3,801,023 |
3,723,829 |
3,590,979 |
3,420,371 |
||||||||||||||
Less: acquired loans |
(150,763) |
(165,303) |
(178,496) |
(196,567) |
(216,994) |
||||||||||||||
Adjusted loans, ORE, and repossessions, less acquired |
$ |
3,565,492 |
$ |
3,635,720 |
$ |
3,545,333 |
$ |
3,394,412 |
$ |
3,203,377 |
|||||||||
Nonperforming assets to loans, ORE, and |
1.92 |
% |
1.96 |
% |
2.04 |
% |
1.76 |
% |
1.71 |
% |
|||||||||
Adjusted nonperforming assets to adjusted loans, |
0.92 |
% |
0.99 |
% |
1.14 |
% |
1.06 |
% |
1.05 |
% |
|||||||||
Nonperforming assets to total assets (GAAP) |
1.48 |
% |
1.52 |
% |
1.58 |
% |
1.38 |
% |
1.30 |
% |
|||||||||
Adjusted nonperforming assets to total assets (non- |
0.68 |
% |
0.73 |
% |
0.84 |
% |
0.79 |
% |
0.75 |
% |
|||||||||
Reconciliation of allowance to adjusted allowance: |
|||||||||||||||||||
Allowance for loan losses (GAAP) |
$ |
31,157 |
$ |
31,623 |
$ |
30,940 |
$ |
29,772 |
$ |
30,703 |
|||||||||
Less: allowance allocated to indirect auto loans |
(8,556) |
(9,210) |
(9,888) |
(10,258) |
(10,116) |
||||||||||||||
Less: allowance allocated to acquired loans |
(134) |
(134) |
(134) |
(209) |
(159) |
||||||||||||||
Adjusted allowance for loan losses (non-GAAP) |
$ |
22,467 |
$ |
22,279 |
$ |
20,918 |
$ |
19,305 |
$ |
20,428 |
|||||||||
Reconciliation of period end loans to adjusted period end loans: |
|||||||||||||||||||
Loans, excluding Loans Held-for-Sale |
$ |
3,706,953 |
$ |
3,792,886 |
$ |
3,714,308 |
$ |
3,580,966 |
$ |
3,409,707 |
|||||||||
Less: indirect auto loans |
(1,588,419) |
(1,698,879) |
(1,719,670) |
(1,716,156) |
(1,609,678) |
||||||||||||||
Less: acquired loans |
(150,763) |
(165,303) |
(178,496) |
(196,567) |
(216,994) |
||||||||||||||
Adjusted total loans (non-GAAP) |
$ |
1,967,771 |
$ |
1,928,704 |
$ |
1,816,142 |
$ |
1,668,243 |
$ |
1,583,035 |
|||||||||
Allowance to total loans (GAAP) |
0.84 |
% |
0.83 |
% |
0.83 |
% |
0.83 |
% |
0.90 |
% |
|||||||||
Adjusted allowance to adjusted total loans (non- |
1.14 |
% |
1.16 |
% |
1.15 |
% |
1.16 |
% |
1.29 |
% |
|||||||||
Reconciliation of book value per common share to tangible book value per common share: |
|||||||||||||||||||
Shareholders' equity |
$ |
432,098 |
$ |
420,962 |
$ |
410,744 |
$ |
401,632 |
$ |
388,068 |
|||||||||
Less: intangible assets |
(11,474) |
(11,751) |
(12,028) |
(12,306) |
(12,625) |
||||||||||||||
Tangible shareholders' equity |
$ |
420,624 |
$ |
409,211 |
$ |
398,716 |
$ |
389,326 |
$ |
375,443 |
|||||||||
End of period common shares outstanding |
27,260,681 |
27,191,787 |
27,034,255 |
27,019,201 |
26,815,287 |
||||||||||||||
Book value per common share (GAAP) |
$ |
15.85 |
$ |
15.48 |
$ |
15.19 |
$ |
14.86 |
$ |
14.47 |
|||||||||
Tangible book value per common share (non-GAAP) |
15.43 |
15.05 |
14.75 |
14.41 |
14.00 |
||||||||||||||
Contacts: |
Martha Fleming, Charles D. Christy |
Fidelity Southern Corporation (404) 240-1504 |
SOURCE Fidelity Southern Corporation
Related Links
http://www.fidelitysouthern.com
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