FIDELITY SOUTHERN CORPORATION 
By ATLANTA, Jan. 23, 2014 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), today reported financial results for the three months and year ended December 31, 2013.
KEY RESULTS
-- Earned $3.9 million in fourth quarter and $27.6 million for the year
-- Return on Average Assets of 0.61% for the quarter and 1.09% for the year
-- Increased Tangible Book Value by $1.51 to $11.00 per share or 15.9%,
year over year
-- Commercial loan growth for the quarter of 3.5% and 4.2% year over year
-- Core deposit growth for the quarter of 5.6% and 8.0% year over year
-- Net charge off ratio annualized was 0.06% for the fourth quarter,
compared to 0.27% for the third quarter, and 0.81% for the fourth
quarter 2012
-- Reduction in Nonperforming asset ratio of 43% at 3.93% from 6.88% year
over year
-- Classified assets decreased $12.4 million or 9.5% for the quarter and
$37.8 million or 24.2% for the year
-- Funded closed Mortgage production of $425.7 million for the quarter and
$2.5 billion for the year
Fidelity's Chairman, Jim Miller, said, "Fourth quarter mortgage production shadowed a stellar performance of the Bank for the year. Nevertheless, the mortgage numbers show we have built a solidly profitable mortgage business. We expanded mortgage into Alabama in the quarter with plans for future growth. We were active in retail branching and in electronic delivery in 2013 and will be in 2014. Trust powers were applied for in the quarter which will permit us to offer family office services. In sum, every area of the bank is performing well, our growth is all organic, and we continue to build for the future."
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, December 31, December 31, December 31,
2013 2013 2012 2013 2012
---- ---- ---- ---- ----
($ in thousands, except per share data)
Net
Income $3,863 $7,851 $5,439 $27,638 $25,327
Basic
EPS $0.18 $0.33 $0.31 $1.35 $1.48
Diluted
EPS $0.16 $0.30 $0.27 $1.20 $1.31
Asset Quality
The following table provides a comparison of the activity affecting the allowance for loan loss:
For the Quarter Ended Year Ended
December 31
--------------------- -----------
December 31, September 30, December 31, 2013 2012
2013 2013 2012
---- ---- ----
($ in thousands)
Net charge-offs $260 $1,199 $3,670 $6,832 $10,342
Net charge-off
ratio,
annualized 0.06% 0.27% 0.81% 0.38% 0.60%
Provision for
loan losses $273 $1,122 $5,243 $5,441 $13,420
The allowance for loan losses at December 31, 2013, was $33.7 million, or 1.78% of total loans, compared to an allowance of $33.3 million, or 1.83% of total loans, at September 30, 2013, and $34.0 million, or 1.92% of total loans, at December 31, 2012.
The following table presents certain credit quality metrics of the Bank's loan portfolio, inclusive of covered loans. Nonperforming assets include nonaccrual loans, net repossessions and other real estate ("ORE"). Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and other real estate. Classified asset ratio is classified assets as a percentage of Tier 1 capital plus allowance.
December 31, September
30, December 31,
2013 2013 2012
---- ---- ----
($ in
thousands)
Nonperforming
assets $75,629 $97,132 $125,062
Classified
assets $118,390 $130,795 156,238
Allowance for
loan losses as
a percentage of
total loans 1.78% 1.83% 1.92%
Classified asset
ratio 29.81% 33.33% 44.17%
Nonperforming
assets ratio 3.93% 5.20% 6.88%
ORE, net of reserves, decreased $3.5 million to $31.0 million at December 31, 2013, compared to $34.5 million at September 30, 2013. During the fourth quarter of 2013, $4.8 million of ORE assets were sold while $1.3 million were added.
Nonperforming loans and classified assets have continued to decline due in part to improved credit factors as well as loans moving to ORE and subsequently being sold.
Deposits
Total deposits of $2.2 billion at December 31, 2013, have increased $132.7 million from $2.1 billion as of December 31, 2012, due primarily to a $104.7 million increase in noninterest-bearing demand deposits as the Company continues to focus on core-deposit growth.
December 31, September 30, December 31,
2013 2013 2012
---- ---- ----
$ % $ % $ %
--- --- --- --- --- ---
($ in millions)
Core deposits(1) $1,800.0 81.7% $1,742.7 79.1% $1,666.0 80.4%
Time Deposits > $100,000 335.2 15.2% 352.1 16.9% 346.7 16.8%
Brokered deposits 67.4 3.1% 74.5 4.0% 56.9 2.8%
---- --- ---- --- ---- ---
Total deposits $2,202.6 100.0% $2,169.3 100.0% $2,069.6 100.0%
====== ===== ====== ===== ====== =====
Quarterly rate on deposits 0.48% 0.48% 0.52%
(1) Core deposits are transactional, savings, and time deposits under $100,000.
NET INTEREST MARGIN
Net interest margin in the fourth quarter of 2013 was 3.59% consistent with the third quarter of 2013 result of 3.59%. In spite of the four basis point decline in the net interest margin from the fourth quarter of 2012, taxable equivalent net interest income was up $621,000 over the same quarter prior-year and $592,000 when compared to the three months ended September 30, 2013. The improvement is attributable primarily to declining average balances of and rates on interest-bearing liabilities as discussed in more detail in the Interest Expense section below. Excluding the accretion of the loan discount on purchased loans, the net interest margin was 3.53% for the fourth quarter of 2013 compared to 3.53% for the third quarter of 2013 and 3.62% for the fourth quarter of 2012.
Net interest margin was 3.59% for the year ended December 31, 2013, compared to 3.77% for the same period in 2012. Although the net interest margin decreased by eighteen basis points, taxable equivalent net interest income for the year ended December 31, 2013, increased $3.1 million, or 3.8%, to $84.1 million compared to $81.0 million for the same period in 2012 aided by a year over year 9.2% increase in average loan balances. Excluding the accretion of the loan discount on purchased loans, the net interest margin was 3.47% for the year ended December 31, 2013, and 3.68% for the same period in 2012.
INTEREST INCOME
Total interest income for the fourth quarter of 2013 decreased a small amount to $23.8 million from $24.3 million compared to the fourth quarter of 2012. In a linked-quarter comparison, interest income decreased $1.2 million largely attributable to a decrease in interest income from decreased loans held for sale production volume during the fourth quarter of 2013 as compared to the fourth quarter of 2012.
For the year ended December 31, 2013, total interest income remained flat at $97.6 million compared to the same period in 2012.
INTEREST EXPENSE
Interest expense for the fourth quarter of 2013 decreased $1.1 million, or 27.5%, compared to the same period in 2012 due to a reduction of $600,000 in subordinated debt expense for the fourth quarter of 2013 from the repayment of $20.5 million in subordinated debt in the third quarter of 2013. On a linked-quarter basis, interest expense decreased $480,000 or 14.1% primarily attributable to a decrease in subordinated debt interest expense of $430,000 from the payoff of $20.5 million of subordinated debt in the third quarter of 2013.
For the year ended December 31, 2013, interest expense decreased $3.1 million, or 18.3%, to $14.0 million compared to $17.1 million for the same period in 2012. The decrease is primarily the result of a reduction in interest expense on time deposits expense of $1.0 million from a reduction in interest rates on time deposits, together with a decrease of $1.5 million in subordinated debt expense due to rate changes and the subordinated debt pay-offs.
NONINTEREST INCOME
For the quarter ended December 31, 2013, noninterest income was $17.8 million compared to $26.2 million in the fourth quarter of 2012. This decrease is primarily attributable to a $7.8 million decrease in noninterest income from mortgage banking activities primarily due to decreased production volume for the fourth quarter of 2013 compared to the fourth quarter of 2012.
For the year ended December 31, 2013, noninterest income increased $8.9 million, or 10.1%, to $96.9 million compared to $88.0 million for the same period in 2012. The increase is attributable to a $10.2 million increase in noninterest income from mortgage banking activities and a $2.6 million increase in noninterest income from indirect lending net of a slight decrease in other noninterest income of $2.5 million for 2013.
Mortgage Banking Activities
Since long term interest rates began to climb in the second half of 2013, significant contraction in refinance volume has continued to occur as the industry returns to a more normalized seasonal closed loan production model. Closed Mortgage loan fundings were $2.5 billion in 2013 vs. $2.2 billion in 2012 representing a 10% increase which compares favorably to the National Mortgage Bankers Association ("MBA") industry estimate of a 23% decline year over year.
Furthermore, the MBA expects to see $1.2 trillion in mortgage originations during 2014, a 32% decline from 2013. While the MBA expects purchase originations to increase 9%, it expects refinance originations to fall 57%. To address the current industry challenges, the Bank's mortgage banking division will continue prudent production mortgage office growth, maintain tight expense controls and continue the focus of maintaining current revenue per loan benchmarks.
Mortgage banking margins were relatively flat for the quarter ended December 31, 2013 or 286 basis points on funded production of $425.7 million, after adjusting for the quarterly MSR impairment, compared to 285 basis points on funded production of $619.6 million for the previous quarter after adjusting for the prior quarter MSR impairment. Comprehensive revenue and expense measures continue to be made by management to maximize operational efficiency and target margin optimization.
Positive mortgage production trends were evident as new purchase loans (vs. refinances) accounted for 79% of total funded loan production in the fourth quarter of 2013. The Company continues to evaluate opportunities to increase market share and enter new markets where future growth is expected. During the fourth quarter of 2013, new mortgage offices were opened in Alabama, Maryland, and Georgia, with plans for further expansion expected to take place during the first quarter of 2014. The new mortgage offices have key management in place with twelve experienced loan officers hired with more coming soon, and it is anticipated that these locations will make a significant contribution in 2014.
NONINTEREST EXPENSE
Noninterest expense for the fourth quarter of 2013 was $32.5 million compared to $32.7 million for the same period in 2012 and remained relatively flat. On a linked quarter basis, noninterest expense decreased $1.6 million from $34.1 million for the third quarter of 2013 to $32.5 million for the fourth quarter of 2013 primarily attributable to a decrease in commission expense of $1.7 million from the reduced mortgage production for the fourth quarter of 2013.
For the year ended December 31, 2013, noninterest expense was $132.3 million compared to $115.4 million for the same period in 2012. The increase is largely attributable to an increase of $9.8 million in salaries and employee benefits and $2.8 million in higher commissions, both due to increased personnel primarily in the mortgage banking business.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 32 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA, indirect automobile, and mortgage loans are provided through employees located in eleven Southern and Mid-Atlantic states. For additional information about Fidelity's products and services, please visit the website at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2012 Annual Report filed on Form 10-K with the Securities and Exchange Commission.
Contacts: Martha Fleming, Steve
Brolly
Fidelity Southern
Corporation (404)
240-1504
( )
FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Three Months Ended Twelve Months Ended
------------------ -------------------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2013 2013 2013 2013 2012 2013 2012
---- ---- ---- ---- ---- ---- ----
($ in thousands, except per share data)
RESULTS OF OPERATIONS
Net Interest
Income $20,858 $21,529 $20,133 $21,075 $20,239 $83,595 $80,484
Provision for Loan
Losses 273 1,122 570 3,476 5,243 5,440 13,420
Non-Interest
Income 17,753 25,844 28,240 25,047 26,186 96,885 87,969
Non-Interest
Expense 32,538 34,102 33,159 32,524 32,654 132,325 115,397
Income Tax Expense 1,937 4,298 5,211 3,631 3,089 15,077 14,309
Net Income 3,863 7,851 9,433 6,491 5,439 27,638 25,327
Preferred Stock
Dividends - (817) (823) (823) (823) (2,463) (3,292)
Net Income
Available to
Common
Shareholders $3,863 $7,034 $8,610 $5,668 $4,616 $25,175 $22,035
PERFORMANCE
Earnings Per Share
-Basic (1) $0.18 $0.33 $0.52 $0.37 $0.31 $1.35 $1.48
Earnings Per Share
-Diluted (1) $0.16 $0.30 $0.46 $0.33 $0.27 $1.20 $1.31
Return on Average
Assets 0.61% 1.20% 1.47% 1.07% 0.88% 1.09% 1.08%
Return on Average
Equity 6.54% 12.04% 17.40% 13.57% 11.36% 12.20% 14.19%
NET INTEREST MARGIN
Interest Earning
Assets 4.09% 4.15% 4.05% 4.55% 4.35% 4.18% 4.56%
Cost of Funds 0.64% 0.72% 0.77% 0.84% 0.86% 0.74% 0.94%
Net Interest
Spread 3.45% 3.43% 3.28% 3.71% 3.49% 3.44% 3.62%
Net Interest
Margin 3.59% 3.59% 3.42% 3.77% 3.63% 3.59% 3.77%
CAPITAL
Cash Dividends Per
Share $0.04 $0.02 $ - $ - $ - $0.06 $ -
Dividend Payout
Ratio 5.56% 1.52% - % - % - % 4.44% - %
Tier 1 Risk-Based
Capital 12.71% 12.97% 15.62% 12.22% 12.06% 12.71% 12.06%
Total Risk-Based
Capital 13.96% 14.23% 16.88% 13.48% 13.43% 13.96% 13.43%
Leverage Ratio 11.02% 10.53% 12.96% 10.51% 10.18% 11.02% 10.18%
AVERAGE BALANCE SHEET
Loans Held for
Sale $192,851 $317,445 $359,519 $295,018 $192,851 $241,446 $135,263
Loans, Net of
Unearned Income 1,868,507 1,812,251 1,791,398 1,801,532 1,852,124 1,868,130 1,796,450
Investment
Securities 173,422 175,230 170,362 161,861 174,810 170,265 200,208
Earning Assets 2,320,811 2,393,062 2,379,048 2,281,648 2,230,918 2,343,871 2,148,428
Total Assets 2,524,207 2,599,578 2,578,033 2,468,538 2,454,244 2,543,144 2,345,176
Deposits 2,150,545 2,148,659 2,079,569 2,031,877 2,022,445 2,103,465 1,933,473
Borrowings 113,528 166,261 259,616 256,616 211,385 189,995 207,035
Shareholders'
Equity 234,314 258,672 217,491 194,559 190,426 226,457 178,517
STOCK PERFORMANCE
Market Price:
Closing (1) $16.61 $15.34 $12.28 $11.33 $9.31 $16.61 $9.31
High Close (1) $17.87 $15.98 $13.06 $11.63 $9.93 $15.98 $9.93
Low Close (1) $15.27 $12.56 $10.73 $9.31 $8.54 $9.31 $5.43
Daily Average
Trading Volume 53,979 90,413 52,693 30,591 16,474 58,118 28,166
Book Value Per
Common Share (1) $11.11 $10.94 $10.66 $9.99 $9.62 $11.11 $9.62
Price to Book
Value 1.50 1.40 1.15 1.13 0.97 1.50 0.97
Tangible Book
Value Per Common
Share (1) 11.00 10.83 10.54 9.82 9.46 11.00 9.46
Price to Tangible
Book Value 1.51 1.42 1.17 1.15 0.98 1.51 0.98
(1) Adjusted for stock dividends and retroactive application on shares outstanding.
FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)
Three months ended Year ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2013 2012
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in thousands, except per share data)
ASSET QUALITY
Total Non-
Performing Loans $43,427 $61,458 $72,388 $81,740 $83,681 $43,427 $83,681
Total Non-
Performing
Assets $75,629 $97,132 $114,492 $123,597 $125,062 $75,629 $125,062
Loans 90 Days
Past Due and
Still Accruing $ - $ - $ - $141 $ - $ - $ -
Including Covered Loans:
Non-Performing
Loans as a % of
Loans 3.25% 3.95% 4.60% 4.60% 5.07% 3.25% 5.07%
Non-Performing
assets as a % of
Loans Plus ORE 3.93% 5.20% 6.32% 6.80% 6.88% 3.93% 6.88%
ALL to Non-
Performing Loans 77.56% 54.77% 46.01% 41.49% 40.61% 77.56% 40.61%
ALL as a % of
Loans, at End of
Period 1.78% 1.83% 1.86% 1.86% 1.92% 1.78% 1.92%
Excluding Covered Loans:
Non-Performing
Loans as a % of
Loans 2.21% 2.08% 2.47% 3.00% 3.40% 2.21% 3.4%
Non-Performing
assets as a % of
Loans Plus ORE 3.54% 3.56% 4.14% 4.37% 4.74% 3.54% 4.74%
ALL to Non-
Performing Loans 83.11% 82.63% 72.82% 4.37% 54.37% 83.11% 54.37%
Net Charge-Offs
During the
Period to
Average Loans,
annualized 0.06% 0.27% 0.40% 0.86% 0.81% 0.38% 0.60%
ALL as a % of
Loans, at End of
Period 1.80% 1.93% 1.96% 1.95% 2.01% 1.80% 1.91%
OTHER INFORMATION
Non-Interest
Income to
Revenues 45.98% 54.55% 58.38% 54.31% 56.40% 53.68% 52.22%
End of Period
Shares
Outstanding (1) 21,257,519 21,325,339 21,146,297 15,191,887 15,122,948 21,257,519 15,122,948
Weighted Average
Shares
Outstanding -
Basic (1) 21,384,732 21,341,695 16,509,686 15,171,012 15,052,787 18,626,312 14,895,044
Weighted Average
Shares
Outstanding -
Diluted (1) 24,118,225 23,716,869 18,555,821 17,193,697 17,072,756 20,956,408 16,793,178
Full-Time
Equivalent
Employees 889.9 865.1 843.1 806.0 774.2 889.9 774.2
(1) Adjusted for stock dividends and retroactive application on shares outstanding.
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2013 2013 2013 2013 2012 2013 2012
---- ---- ---- ---- ---- ---- ----
($ in thousands, except per share amount)
INTEREST INCOME
Loans, including
fees $22,639 $23,900 $22,949 $23,944 $23,121 $93,432 $92,485
Investment
securities 1,095 977 910 1,028 1,141 4,010 5,044
Federal funds
sold and bank
deposits 43 53 15 3 5 114 33
--- --- --- --- --- --- ---
Total interest
income 23,777 24,930 23,874 24,975 24,267 97,556 97,562
INTEREST EXPENSE
Deposits 2,590 2,601 2,600 2,627 2,722 10,418 11,073
Short-term
borrowings 37 73 263 404 425 777 1,306
Subordinated
debt 282 716 868 867 881 2,733 4,242
Other long-term
debt 10 11 10 2 - 33 457
Total interest
expense 2,919 3,401 3,741 3,900 4,028 13,961 17,078
----- ----- ----- ----- ----- ------ ------
Net interest
income 20,858 21,529 20,133 21,075 20,239 83,595 80,484
Provision for
loan losses 273 1,122 570 3,476 5,243 5,440 13,420
--- ----- --- ----- ----- ----- ------
Net interest
income after
provision for
loan losses 20,585 20,407 19,563 17,599 14,996 78,155 67,064
NONINTEREST
INCOME
Service charges
on deposit
accounts 1,119 1,075 1,020 949 1,122 4,163 4,694
Other fees and
charges 1,012 997 975 887 883 3,871 3,360
Mortgage banking
activities 10,798 17,809 20,158 17,795 18,653 66,560 56,332
Indirect lending
activities 2,030 2,583 2,781 1,646 1,477 9,040 6,414
SBA lending
activities 492 647 1,417 1,084 715 3,640 4,944
Bank owned life
insurance 308 326 326 313 323 1,273 1,307
Securities gains 188 - 1 - - 189 307
Other 1,806 2,407 1,562 2,373 3,013 8,149 10,611
----- ----- ----- ----- ----- ----- ------
Total
noninterest
income 17,753 25,844 28,240 25,047 26,186 96,885 87,969
NONINTEREST
EXPENSE
Salaries and
employee
benefits 14,660 14,424 14,278 14,282 13,341 57,645 47,832
Commissions 4,288 6,019 7,979 6,390 7,545 24,676 21,817
Net occupancy 2,799 2,844 2,291 2,407 2,400 10,342 9,253
Communication 856 754 805 760 647 3,175 2,646
Other 9,935 10,061 7,806 8,685 8,721 36,487 33,849
Total
noninterest
expense 32,538 34,102 33,159 32,524 32,654 132,325 115,397
------ ------ ------ ------ ------ ------- -------
Income before
income tax
expense 5,800 12,149 14,644 10,122 8,528 42,715 39,636
Income tax
expense 1,937 4,298 5,211 3,631 3,089 15,077 14,309
----- ----- ----- ----- ----- ------ ------
NET INCOME 3,863 7,851 9,433 6,491 5,439 27,638 25,327
Preferred stock
dividends and
discount
accretion - (817) (823) (823) (823) (2,463) (3,292)
Net income
available to
common equity $3,863 $7,034 $8,610 $5,668 $4,616 $25,175 $22,035
====== ====== ====== ====== ====== ======= =======
EARNINGS PER
SHARE: (1)
Basic earnings
per share $0.18 $0.33 $0.52 $0.37 $0.31 $1.35 $1.48
===== ===== ===== ===== ===== ===== =====
Diluted earnings
per share $0.16 $0.30 $0.46 $0.33 $0.27 $1.20 $1.31
===== ===== ===== ===== ===== ===== =====
Weighted average
common shares
outstanding-
basic 21,384,732 21,341,695 16,509,686 15,171,012 15,052,787 18,626,312 14,895,044
========== ========== ========== ========== ========== ========== ==========
Weighted average
common shares
outstanding-
diluted 24,118,225 23,716,869 18,555,821 17,193,697 17,072,756 20,956,408 16,793,178
========== ========== ========== ========== ========== ========== ==========
(1) Adjusted for stock dividends and retroactive application on shares outstanding
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December September June 30, March 31, December
31, 30, 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in
thousands)
ASSETS
Cash and cash
equivalents $116,559 $140,871 $158,837 $40,262 $49,020
Investment securities
available-for-sale 168,865 170,338 163,764 153,285 154,367
Investment securities
held-to-maturity 4,051 4,468 4,978 5,523 6,162
Investment in FHLB
stock 4,994 6,119 8,594 7,919 7,330
Loans held-for-sale 187,366 216,736 355,017 325,941 304,094
Loans 1,893,037 1,831,708 1,775,972 1,817,263 1,777,031
Allowance for loan
losses (33,684) (33,661) (33,309) (33,910) (33,982)
------- ------- ------- ------- -------
Loans, net of
allowance for loan
losses 1,859,353 1,798,047 1,742,663 1,783,353 1,743,049
FDIC indemnification
asset 14,136 17,103 16,542 16,535 20,074
Premises and
equipment, net 44,555 41,964 41,843 38,508 37,669
Other real estate, net 30,982 34,493 40,882 38,951 39,756
Bank owned life
insurance 33,855 33,575 33,276 32,978 32,693
Deferred tax asset,
net 19,384 20,886 22,401 21,248 21,145
Servicing rights 53,202 52,048 44,734 36,529 30,244
Other assets 26,866 30,834 41,702 31,217 31,688
Total Assets $2,564,168 $2,567,482 $2,675,233 $2,532,249 $2,477,291
======== ========== ======== ======== ========
LIABILITIES
Deposits:
Noninterest-bearing
demand deposits $488,224 $448,087 $433,565 $384,869 $383,559
Interest-bearing
deposits: 1,714,228 1,721,188 1,721,482 1,673,132 1,686,165
--------- --------- --------- --------- ---------
Total deposits 2,202,452 2,169,275 2,155,047 2,058,001 2,069,724
Federal Funds
Purchased 35,000 60,000 115,000 100,000 88,500
Short-term borrowings 14,233 18,422 18,641 76,051 37,160
Subordinated debt 46,393 46,393 67,527 67,527 67,527
Other long-term debt 10,000 10,000 10,000 10,000 -
Other liabilities 19,860 30,092 35,916 21,369 21,492
------ ------ ------ ------ ------
Total Liabilities 2,327,938 2,334,182 2,402,131 2,332,948 2,284,403
SHAREHOLDERS' EQUITY
Preferred stock - - 47,785 47,564 47,344
Common stock 158,153 156,156 153,107 84,777 82,499
Accumulated other
comprehensive gain,
net of tax 968 1,723 1,475 3,376 3,545
Retained earnings 77,109 75,421 70,735 63,584 59,500
------ ------ ------ ------ ------
Total shareholders'
equity 236,230 233,300 273,102 199,301 192,888
------- ------- ------- -------
Total Liabilities and
Shareholders' Equity $2,564,168 $2,567,482 $2,675,233 $2,532,249 $2,477,291
======== ========== ======== ======== ========
Book Value Per Common
Share $11.11 $11.04 $10.81 $10.22 $9.95
====== ====== ====== ====== =====
Shares of Common Stock
Outstanding (1) 21,257,519 21,139,712 20,839,642 14,847,848 14,633,836
========== ========== ========== ========== ==========
(1) Adjusted for stock dividends and retroactive application on shares outstanding
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
December 30, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in thousands)
Commercial $530,977 $512,875 $507,188 $517,203 $509,243
SBA loans 134,823 133,867 131,771 126,435 121,428
Total
Commercial
and SBA
Loans 665,800 646,742 638,959 643,638 630,671
------- ------- ------- ------- -------
Construction 101,698 99,379 100,986 94,651 89,924
Indirect
loans 975,223 942,217 904,098 959,471 930,232
Installment
loans 13,473 14,270 15,557 13,824 18,774
Total
Consumer
Loans 988,696 956,487 919,655 973,295 949,006
------- ------- ------- ------- -------
First
Mortgage
Loans 60,928 51,807 41,815 38,501 37,785
Second
Mortgage
Loans 75,915 77,293 74,557 67,178 69,645
------ ------ ------ ------
Total
Mortgage
Loans 136,843 129,100 116,372 105,679 107,430
-------
Loans 1,893,037 1,831,708 1,775,972 1,817,263 1,777,031
Loans
Held-
For-
Sale:
Residential
Mortgage 127,850 174,409 309,175 281,839 253,108
SBA 9,517 7,327 10,842 14,102 20,986
Indirect
Auto 50,000 35,000 35,000 30,000 30,000
------ ------ ------ ------ ------
Total
Loans
Held-
For-Sale 187,367 216,736 355,017 325,941 304,094
------- ------- ------- ------- -------
Total
Loans $2,080,404 $2,048,444 $2,130,989 $2,143,204 $2,081,125
========== ========== ======== ======== ==========
Non-
Covered
Loans $1,834,675 $1,768,384 $1,691,258 $1,743,092 $1,699,892
Covered
Loans 58,362 63,324 84,714 74,171 77,139
Loans
Held-
For-Sale 187,367 216,736 355,017 325,941 304,094
------- ------- ------- ------- -------
Total
Loans $2,202,452 $2,048,444 $2,130,989 $2,143,204 $2,081,125
========== ========== ======== ======== ==========
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2013 2013 2013 2013 2012 2013 2012
---- ---- ---- ---- ---- ---- ----
($ in thousands)
Balance at Beginning of Period $33,661 $33,309 $33,910 $33,982 $31,476 $33,982 $27,956
Net Charge-Offs (Recoveries):
Commercial,
Financial,
and
Agricultural (207) 335 164 2,416 421 2,708 1,090
SBA 10 108 559 56 271 733 455
Real
Estate
Construction (291) (241) 40 118 (78) (374) 2,798
Real
Estate
Mortgage 41 67 27 393 30 528 632
Consumer
Installment 707 930 931 669 3,026 3,237 5,367
----------
Total
Net
Charge-
Offs 260 1,199 1,721 3,652 3,670 6,832 10,342
Provision for Loan Losses 273 1,122 570 3,476 5,243 5,441 13,420
Indemnification - Covered Loans 10 429 550 104 933 1,093 2,948
--- --- --- --- --- ----- -----
Balance at End of Period $33,684 $33,661 $33,309 $33,910 $33,982 $33,684 $33,982
======= ======= ===== ======= ======= ======= =======
Ratio of Net Charge-Offs during
the Period to Average Loans
Outstanding, Net, annualized 0.06% 0.27% 0.40% 0.86% 0.81% 0.38% 0.60%
Allowance for Loan Losses as a
Percentage of Loans 1.78% 1.83% 1.86% 1.86% 1.92% 1.78% 1.80%
Allowance for Loan Losses as a
Percentage of Loans Excluding
Covered Loans 1.80% 1.93% 1.96% 1.95% 2.01% 1.80% 1.91%
NONPERFORMING ASSETS
(UNAUDITED)
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in thousands)
Non-Covered Nonperforming Assets
Nonaccrual Loans $40,531 $36,711 $41,757 $52,220 $57,713
Repossessions 1,220 1,181 1,222 975 1,625
Other Real Estate 24,021 26,016 28,342 24,048 22,429
------ ------ ------ ------ ------
Total Non-Covered
Nonperforming
Assets $65,772 $63,908 $71,321 $77,243 $81,767
======= ======= ======= ======= =======
*** Includes SBA
Guaranteed Amounts
of Approximately $7,869 $13,115 $14,379 $16,668 $12,085
====== ======= ======= ======= =======
Non-Covered Loans
Past Due 90 Days or
More and Still
Accruing $ - $ - $ - $141 $ -
Non-Covered Loans
30-89 Days Past
Due $5,618 $7,915 $6,197 $12,152 $5,028
Ratio of Non-
Covered Loans Past
Due 90 Days or More
and Still Accruing
to Total Non-
Covered Loans - % - % - % 0.01% - %
Ratio of Non-
Covered Loans 30-
89 Days Past Due to
Total Non-Covered
Loans 0.31% 0.45% 0.37% 0.70% 0.30%
Ratio of Non-
Covered
Nonperforming
Assets to Total
Non-Covered Loans,
ORE, and
Repossessions 3.54% 3.56% 4.14% 4.37% 4.74%
Covered Nonperforming Assets
Nonaccrual Loans $2,896 $24,747 $30,631 $29,520 $25,968
Other Real Estate 6,961 8,477 12,540 16,834 17,327
Covered
Nonperforming
Assets $9,857 $33,224 $43,171 $46,354 $43,295
====== ======= ======= ======= =======
Classified Assets
Classified Loans $86,188 $95,121 $101,919 $112,036 $114,857
ORE and
Repossessions 32,202 35,674 42,104 41,857 41,381
Total Classified
Assets $118,390 $130,795 $144,023 $153,893 $156,238
======== ======== ====== ====== ========
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF INDIRECT LENDING
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in thousands)
Average loans outstanding $1,010,229 $957,737 $947,351 $953,722 $966,082
Past due loans:
$ amount of indirect loans past due $1,561 $929 $1,360 $1,159 $1,262
# of indirect
loans past due 130 130 173 162 197
Net charge-offs $703 $908 $909 $667 $989
# of repossessed vehicles 207 177 181 151 181
Non-performing loans $806 $925 $594 $872 $982
30+ day performing delinquency
rate 0.15% 0.11% 0.14% 0.12% 0.14%
Net charge-off rate 0.33% 0.34% 0.33% 0.28% 0.37%
Average beacon score 741 752 755 742 747
Production by State:
Alabama $19,798 $22,599 $16,576 $16,847 $14,322
Arkansas 16,352 13,757 7,728 4,760 3,514
North Carolina 18,731 19,292 18,750 15,226 11,828
South Carolina 13,302 10,322 10,180 7,550 6,356
Florida 76,253 77,873 72,676 67,243 59,782
Georgia 43,064 44,171 38,203 42,218 34,484
Mississippi 20,341 23,292 19,626 20,148 16,990
Tennessee 13,674 17,122 19,347 14,858 8,674
Virginia 11,040 11,877 10,339 8,601 6,241
Texas 5,045 - - - -
----- --- --- --- ---
Total production by State $237,600 $240,305 $213,425 $197,451 $162,191
Outstanding by State:
Alabama 8.92% 8.93% 8.89% 9.22% 9.29%
Arkansas 3.24% 2.37% 1.42% 0.81% 0.52%
North Carolina 8.27% 8.30% 8.37% 8.31% 8.41%
South Carolina 3.73% 3.34% 3.26% 2.99% 2.94%
Florida 32.62% 32.80% 33.07% 33.41% 33.40%
Georgia 23.22% 24.38% 25.76% 27.11% 28.45%
Mississippi 8.41% 8.48% 7.92% 7.50% 6.81%
Tennessee 7.42% 7.87% 8.19% 7.95% 7.85%
Virginia 3.77% 3.53% 3.12% 2.70% 2.33%
Texas 0.40% - % - % - % - %
---- --- --- --- --- --- --- --- ---
Total outstanding serviced by
State 100.00% 100.00% 100.00% 100.00% 100.00%
Loan sales $88,153 $93,602 $152,418 $58,073 $48,166
Yield 3.65% 3.71% 3.85% 4.00% 4.06%
INDIRECT LENDING ACTIVITIES
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
(in thousands)
Servicing income, net $1,237 $1,186 $1,012 $834 $926
Marketing gain, net 793 1,397 1,769 812 551
Total indirect lending activities $2,030 $2,583 $2,781 $1,646 $1,477
====== ====== ====== ====== ======
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF MORTGAGE LENDING
(UNAUDITED)
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in thousands)
Average loans outstanding $194,626 $328,038 $297,024 $284,910 $257,740
Average servicing
outstanding $4,221,134 $3,953,760 $3,239,672 $2,817,771 $2,425,493
% of loan production for
purchases 78.72% 74.13% 58.30% 36.78% 34.45%
% of loan production for
refinance loans 21.28% 25.87% 41.70% 63.22% 65.55%
Production by State:
Georgia $259,289 $353,187 $427,815 $392,749 $498,542
Florida 19,724 17,807 24,025 15,862 36,193
Virginia 91,494 151,573 167,099 111,126 126,901
------ ------- ------- ------- -------
Total retail 370,507 522,567 618,939 519,737 661,636
Wholesale 55,149 96,773 165,022 136,508 150,648
------ ------ ------- ------- -------
Total production $425,656 $619,340 $783,961 $656,245 $812,284
======== ======== ======== ======== ========
Loan sales $467,932 $753,196 $756,224 $634,074 $701,018
Yield 4.08% 4.38% 3.15% 3.43% 3.58%
MORTGAGE BANKING ACTIVITIES
(UNAUDITED)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
($ in
thousands)
Marketing gain, net $8,568 $12,785 $13,916 $12,684 $13,909
Origination points and
fees 2,474 3,806 4,212 3,452 3,879
Loan Servicing Revenue 2,609 2,402 2,021 1,760 1,604
MSR amortization and
impairment adjustments. (2,853) (1,184) 9 (101) (739)
------ ------ --- ---- ----
Total mortgage banking
activities $10,798 $17,809 $20,158 $17,795 $18,653
======= ======= ======= ======= =======
Non-cash items from
mortgage banking
activities:
Capitalized MSR, net $3,992 $7,367 $5,934 $4,467 $4,991
Valuation on MSR (1,360) 138 1,551 1,609 702
Mark to market adjustments 344 2,605 (6,634) (2,345) (3,810)
Total non-cash items $2,975 $10,110 $851 $3,731 $1,883
====== ======= ==== ====== ======
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
Year Ended
----------
December 31, 2013 December 31, 2012
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
($ in thousands)
Assets
Interest-earning assets:
Loans, net of unearned
income:
Taxable $2,101,913 $93,184 4.43% $1,926,904 $92,347 4.79%
Tax-exempt (1) 7,662 383 4.99% 4,810 207 4.30%
----- --- ----- ---
Total loans 2,109,575 93,567 4.44% 1,931,714 92,554 4.79%
Investment securities:
Taxable 154,108 3,350 2.17% 181,489 4,255 2.34%
Tax-exempt (2) 16,157 1,016 6.29% 18,719 1,200 6.41%
------ ----- ------ -----
Total investment
securities 170,265 4,366 2.56% 200,208 5,455 2.72%
Interest-bearing
deposits 62,411 114 0.18% 15,583 32 0.21%
Federal funds
sold 1,620 1 0.05% 923 1 0.06%
----- --- --- ---
Total interest-
earning assets 2,343,871 98,048 4.18% 2,148,428 98,042 4.56%
Noninterest-earning:
Cash and due from
banks 15,505 24,862
Allowance for
loan losses (33,512) (28,699)
Premises and
equipment, net 40,830 33,982
Other real estate 37,469 37,172
Other assets 138,982 129,431
------- -------
Total assets $2,543,145 $2,345,176
======== ========
Liabilities and
shareholders' equity
Interest-bearing
liabilities:
Demand deposits $648,734 $1,807 0.28% $581,577 $1,610 0.28%
Savings deposits 317,845 1,319 0.41% 342,806 1,169 0.34%
Time deposits 719,205 7,293 1.01% 679,940 8,294 1.22%
------- ----- ------- -----
Total interest-
bearing deposits 1,685,784 10,419 0.62% 1,604,323 11,073 0.69%
Federal funds
purchased 23,071 174 0.75% 29,003 228 0.79%
Securities sold
under agreements
to repurchase 15,470 21 0.14% 13,007 28 0.22%
Other short-term
borrowings 82,446 582 0.71% 78,769 1,050 1.33%
Subordinated debt 60,926 2,733 4.49% 67,527 4,242 6.28%
Long-term debt 8,082 33 0.41% 18,729 457 2.44%
----- --- ------ ---
Total interest-
bearing
liabilities 1,875,779 13,962 0.74% 1,811,358 17,078 0.94%
Noninterest-bearing:
Demand deposits 417,681 329,150
Other liabilities 23,228 26,151
Shareholders'
equity 226,457 178,517
------- -------
Total liabilities
and
shareholders'
equity $2,543,145 $2,345,176
======== ========
Net interest income/spread $84,086 3.44% $80,964 3.62%
======= =======
Net interest margin 3.59% 3.77%
(1) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $134,000 and $70,000, respectively,
using a 35% tax rate.
(2) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $358,000 and $410,000, respectively,
using a 35% tax rate.
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
Three Months Ended
------------------
December 31, 2013 December 31, 2012
----------------- -----------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------- ------- ---- ------- ------- ----
($ in thousands)
Assets
Interest-earning assets:
Loans, net of unearned
income:
Taxable $2,052,977 $22,569 4.36% $2,040,253 $23,086 4.50%
Tax-exempt (1) 8,381 108 5.12% 4,722 52 4.45%
----- --- ----- ---
Total loans 2,061,358 22,677 4.36% 2,044,975 23,138 4.50%
Investment securities:
Taxable 158,547 939 2.35% 156,489 946 2.42%
Tax-exempt (2) 14,875 239 6.38% 18,321 297 6.70%
------ --- ------ ---
Total investment
securities 173,422 1,178 2.70% 174,810 1,243 2.85%
Interest-bearing
deposits 83,358 43 0.20% 10,058 5 0.22%
Federal funds
sold 2,673 - 0.06% 1,075 - 0.05%
----- --- ----- ---
Total interest-
earning assets 2,320,811 23,898 4.09% 2,230,918 24,386 4.35%
Noninterest-earning:
Cash and due from
banks 16,717 29,818
Allowance for
loan losses (33,704) (31,519)
Premises and
equipment, net 42,571 37,030
Other real estate 32,814 44,363
Other assets 144,998 143,634
------- -------
Total assets $2,524,207 $2,454,244
======== ========
Liabilities and
shareholders' equity
Interest-bearing
liabilities:
Demand deposits $693,000 $507 0.29% $605,309 $425 0.28%
Savings deposits 307,463 301 0.39% 317,336 353 0.44%
Time deposits 701,193 1,782 1.01% 730,381 1,944 1.06%
------- ----- ------- -----
Total interest-
bearing deposits 1,701,656 2,590 0.60% 1,653,026 2,722 0.66%
Federal funds
purchased 424 1 0.58% 40,864 76 0.75%
Securities sold
under agreements
to repurchase 17,089 5 0.13% 13,809 8 0.22%
Other short-term
borrowings 39,622 31 0.31% 89,185 341 1.52%
Subordinated debt 46,393 282 2.41% 67,527 881 5.19%
Long-term debt 10,000 10 0.41% - - - %
------ --- --- ---
Total interest-
bearing
liabilities 1,815,184 2,919 0.64% 1,864,411 4,028 0.86%
Noninterest-bearing:
Demand deposits 448,889 369,419
Other liabilities 25,820 29,988
Shareholders'
equity 234,314 190,426
------- -------
Total liabilities
and
shareholders'
equity $2,524,207 $2,454,244
======== ========
Net interest income/spread $20,979 3.45% $20,358 3.49%
======= =======
Net interest margin 3.59% 3.63%
(1) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $38,000 and $17,000, respectively.
(2) Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $83,000 and $102,000, respectively.
SOURCE Fidelity Southern Corporation
