ATLANTA, Oct. 19, 2017
/PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or
the "Company") (NASDAQ: LION), holding company for Fidelity Bank
(the "Bank"), today reported net income of $7.9 million, or $0.30 per diluted share for the quarter ended
September 30, 2017, compared with $8.9
million, or $0.33 per diluted
share, for the quarter ended June 30,
2017. For the year to date ended September 30, 2017,
the Company reported net income of $27.4
million, or $1.03 per diluted
share, compared with $23.7 million,
or $0.92 per diluted share, for the
same period in 2016.
Fidelity's Chairman, Jim Miller,
said, "The results in the third quarter reflect the many challenges
we and other bankers face while operating in a flat rate
environment, slowing quality loan demand, accelerated competition
from other banks, and the ongoing pressure to our indirect auto
loan business. Although we believe the economy is improving,
earnings in mortgage and indirect were impacted. For the rest of
our traditional core bank, we remain focused and committed to
implement changes to our operations and technology that will enable
us to be more efficient and effective in our growth strategies. We
will continue to invest to become less reliant on the non-margin
businesses."
President Palmer Proctor, added,
"Wealth Management will be at a positive run rate by year end. SBA
is doing well and now has a national reach. Retail banking is doing
especially well with lending to small businesses and in providing
funding for lending in all areas. Branches will be opened in
Tallahassee, Florida, and
Macon and Covington, Georgia, in the near future. Taking
a longer view and building diverse lines of business has made our
company stronger."
RECENT EVENTS
In August
2017, Hurricane Harvey struck the state of Texas causing massive flooding in certain
southern counties. Fidelity's indirect auto business has a number
of customers that were impacted by the storm causing an immaterial
uptick in auto delinquencies. In September
2017, Hurricane Irma struck the state of Florida, causing extensive
structural/windstorm damage, and flooding that extended through
Florida and Georgia. Fidelity has customers, employees,
and operations that were affected by Irma's path, but we believe
these events will not have a material impact on the Company's
banking and mortgage operations in those markets.
BALANCE SHEET
Total assets of $4.5 billion at September 30, 2017,
represent a decrease of $103.9
million, or 2.3%, compared to June 30, 2017. The
decrease in total assets for the quarter was primarily driven by a
decrease in cash and cash equivalents of $143.6 million, which was the result of paying
off FHLB and brokered CD borrowings of $180.2 million, during the quarter. The decrease
in cash and cash equivalents was partially offset by an increase in
total loans of $23.2 million. Deposit
growth remained strong during the quarter as total core deposits
rose by $93.1 million, offset by a
decrease in total time deposits of $54.5
million.
Loans
Total loans of $3.8
billion at September 30, 2017, increased by
$23.2 million, or 0.6%, as compared
to June 30, 2017. During the quarter, loans held for
investment increased by $77.6
million, or 2.3%, to $3.4
billion. Total commercial, SBA, and construction loans were
down by $14.6 million, or 1.2%,
primarily due to payoffs in the commercial portfolio and a slowing
of quality commercial and industrial loan demand.
Loans held for sale decreased by $54.4
million, or 13.8%, as reductions were seen in the
residential mortgage and indirect auto categories.
Asset Quality
Asset quality continued to improve as
evidenced by the reduction in non performing assets, excluding
acquired loans and the guaranteed portion of SBA and GNMA loans
("adjusted NPA's"). For the past year, adjusted NPA's have
decreased by $8.2 million, or
19.7%.
On a linked-quarter basis, the provision for loan losses
increased by $675,000, as net
charge-offs increased by $321,000.
Gross charge-offs were flat while recoveries decreased, on a
linked-quarter basis. Annualized net charge-offs remained
relatively low at 0.13% of average loans.
Year over year, the provision for loan losses of $1.4 million recorded for the quarter represented
a decrease of $693,000 compared to
the same quarter a year ago. The primary reason for the lower
provision for loan losses is the continued overall improvement in
the Company's credit quality.
Fair Value Adjustments
Loan servicing rights increased
during the quarter by $3.7 million,
or 3.4%, to $111.9 million. Mortgage
servicing rights ("MSRs"), the primary component of loan servicing
rights, contributed the majority of the change, increasing by
$4.3 million, slightly offset by the
change in indirect auto and SBA loan servicing rights for the
quarter.
The net increase in MSRs was primarily driven by increased sales
of mortgage loans with servicing retained to $644.6 million for the quarter, an increase of
$70.8 million, or 12.3%, in
comparison to the prior linked-quarter. The increase due to new
loan servicing rights capitalized during the quarter was partially
offset by amortization of $3.6
million and a modest amount of impairment as a result of
higher estimated prepayments.
The current estimated fair market value of the MSRs was
$103.1 million at September 30,
2017, an excess of $4.1 million over
the net carrying value recorded. If interest rates trend upward,
the fair market value would theoretically increase with a
corresponding decrease in early prepayment expectations and some
portion of the cumulative impairment recorded may be recovered.
However, the value of the MSRs is highly dependent on current
market rates so any interest rate volatility could significantly
impact the value of the asset and the recorded impairment, either
positively or negatively.
Fair value gains on the portfolio of mortgage loans held for
sale, interest rate lock commitments ("IRLCs") and hedge items were
$11.6 million at September 30,
2017, a decrease of $2.3 million, or
16.3%, during the quarter. The decrease was primarily attributable
to the decreases in loans held for sale and gross pipeline of
locked loans to be sold as we enter into the fall and winter
months, historically a lower buying season. Since the bank hedges
its mortgage pipeline and held for sale portfolio, the volatility
of these items due to interest rate movements collectively should
be minimal.
Deposits
Total deposits continue to remain a
foundational strength for the Company. Demand and money market
deposits increased by $48.2 million,
or 3.4%, during the quarter, including a $35.8 million increase in the Florida branches.
Florida deposits now comprise
18.9% of total deposits and have increased in size by $148.4 million, or 24.9%, since December 2016. Noninterest-bearing demand
deposits ended the quarter at a record level of $1.1 billion, an increase of $29.7 million from the previous quarter-end.
INCOME STATEMENT
Net income was $7.9 million, or $1.0
million less than the previous quarter. The decrease in
earnings was primarily driven by a decrease in net interest income
of $352,000 from lower earning
assets, the aforementioned increase in provision for loan losses,
lower noninterest income of $1.4
million, partially offset by lower noninterest expenses of
$1.7 million. As compared to the same
quarter a year ago, net income decreased by $4.6 million.
The decrease in earnings, as compared to the same quarter a year
ago, was primarily driven by lower net interest income of
$1.4 million, lower provision for
loan losses of $693,000, lower
noninterest income of $5.7 million,
and higher noninterest expense of $670,000.
Net Interest Income
Interest income of $39.1 million for the quarter decreased by
$473,000, or 1.2%, primarily driven
by a decrease of 6 basis points in the yield on loans and a
decrease in average loans of $10.1
million. Additionally, the interest income from excess fed
funds sold and interest-bearing deposits with banks decreased by
$45,000, or 5.3%, for the quarter as
excess cash from the money market deposit campaign was used to pay
off higher-yielding short-term borrowings.
As compared to the same period in the prior year, interest
income decreased by $793,000, or
2.0%, as the yield on loans decreased by 15 basis points, primarily
in the commercial, construction and mortgage loan portfolios,
offset by an increase of 11 basis points in indirect auto loan
yields.
Interest expense of $5.7 million,
for the quarter, decreased by $121,000, or 2.1%, primarily due to the pay down
of short-term borrowings. The borrowing expense decreased by
$486,000, partially offset by an
increase in interest-bearing deposit expenses of $272,000 from the Florida marketing campaign. As compared to the
same period in the prior year, interest expense increased by
$576,000, or 11.2%, as market rates
on deposits increased as a result of the increases in the target
fed funds rate over the past twelve months.
Net Interest Margin
On a linked-quarter basis, the net
interest margin remained flat at 3.20%. The yield on total average
earning assets remained flat at 3.75%, while the yield on total
interest bearing liabilities increased slightly by 2 basis points
to 0.77%. Average earning assets decreased by $98.9 million, primarily driven by the use of
cash to pay down the short-term borrowings, and a reciprocal
lowering of FHLB stock. Average interest-bearing liabilities
decreased by $182.9 million,
primarily driven by the $222.5
million decrease in other short-term borrowings, partially
offset by an increase of $39.5
million in total interest-bearing deposits.
As compared to the same period a year ago, the net interest
margin decreased by 27 basis points, from 3.47%, primarily due to a
23 basis point decrease in the yield on earning assets, while the
yield on total interest-bearing liabilities increased by 8 basis
points from 0.69%. Average earning assets increased by $149.7 million, primarily due to the increase in
excess cash generated over the year by the increase in deposits.
Average interest-bearing liabilities increased by $4.8 million, primarily driven by an increase in
average interest-bearing deposits of $241.9
million and offset by a decrease in average borrowings of
$237.2 million.
Noninterest Income
On a linked-quarter basis,
noninterest income decreased by $1.4
million, or 4.0%, largely due to a net decrease in mortgage
banking activities income of $1.9
million, or 7.1%, and a decrease in indirect lending
activities income of $1.7 million, or
47.8%. Marketing gains and origination points and fees decreased
during the quarter primarily due to lower mortgage production,
which decreased $47.6 million and a
lower pipeline of locked loans to be sold, which decreased by
$95.1 million, or 26.4%. These
factors were offset by higher loan sales which increased $42.5
million, or 6.2%. Due to the industry-wide weakening of the
indirect auto loan sales market, the Company's indirect loan sales
decreased by $124.9 million, or
82.2%, resulting in lower gain on sale of $811,000 and a decrease in capitalization of
servicing rights of $838,000. The
mortgage and indirect auto decreases were offset by increases of
$779,000 in SBA lending activities,
$263,000 in service charges and other
fees, a $403,000 increase in gain on
sale of ORE, a reduction of $649,000
in the amortization of the FDIC indemnification asset as commercial
loss shares expired at June 30, 2017,
and an increase in trust service fees of $86,000.
Compared to the same period a year ago, noninterest income for
the quarter of $33.6 million
decreased by $5.7 million, or 14.5%,
primarily due to a net decrease in noninterest income from mortgage
banking activities of $5.1 million,
or 16.8%. Marketing gains decreased by $5.5
million compared to the third quarter of 2016 due to a
decrease in the pipeline of locked loans of $129.3 million or 32.8% as well as the mix of
loan production with more profitable refinances making up 33.3% of
loan production in the third quarter of 2016 compared to 13.7% in
the third quarter of 2017.
Noninterest Expense
On a linked-quarter basis,
noninterest expense decreased by $1.7
million, or 3.1%, primarily due to a decrease in other
noninterest expense of $1.4 million.
The decrease in other noninterest expense was primarily due to a
$1.0 million decrease in loan
origination and credit report expenses related to mortgage loan
production. Professional and other services expense were also lower
by $448,000, or 8.9%, due to a
decline in expenses paid to outside third parties. These decreases
were offset by an increase in salaries, commissions and employee
benefits of $339,000, or 1.0%, which
was mainly due to an increase in $690,000 in deferred compensation expense, offset
by a decrease in commissions of $140,000.
Compared to the same period a year ago, noninterest expense for
the quarter of $52.8 million
increased by $670,000, or 1.3% mostly
due to increased expenses associated with organic growth,
especially in the mortgage and Wealth Management divisions.
Salaries, employee benefits and commissions increased by
$1.9 million, or 5.6%, mainly due to
an increase in the FTE count of approximately 103, or 8.1%, year
over year. Professional and other services also increased by
$551,000, or 13.6%, primarily due to
increased expenses paid to outside third parties for infrastructure
improvement projects and costs associated with new and existing
regulations. These increases in noninterest expense were offset by
decreases in other noninterest expense of $1.7 million, or 17.2%, and a decrease in
occupancy expense of $89,000 or 1.9%.
Other noninterest expense was lower by $842,000 due to lower loan origination and credit
reports expenses associated with lower mortgage production noted
above in the linked-quarter paragraph and lower ORE expense of
$547,000 as the amount of ORE
properties was significantly lower in the third quarter of 2017
compared to the third quarter of 2016.
OTHER NEWS
In October
2017, Fidelity announced plans to open three de novo
branches, one in Tallahassee,
Florida, one in Macon,
Georgia, and one in Covington,
Georgia. Fidelity believes these branches will be well
positioned to generate new customers and opportunities in these
markets.
ABOUT FIDELITY SOUTHERN CORPORATION
Fidelity Southern
Corporation, through its operating subsidiaries, Fidelity Bank and
LionMark Insurance Company, provides banking services and Wealth
Management services and credit-related insurance products through
branches in Georgia and
Florida, and an insurance office
in Atlanta, Georgia. SBA, indirect
auto, and mortgage loans are provided throughout the South and
parts of the Midwest. For additional information about Fidelity's
products and services, please visit the web site at
www.FidelitySouthern.com.
NON-GAAP FINANCIAL MEASURES
This release contains
certain non-GAAP financial measures. Management believes that these
non-GAAP financial measures allow better comparability with prior
periods, as well as with peers in the industry who provide a
similar presentation and provide a greater understanding of our
ongoing operations. 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 2016
Annual Report filed on Form 10-K with the Securities and Exchange
Commission. Additional information and other factors that could
affect future financial results are included in Fidelity's filings
with the Securities and Exchange Commission.
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
FINANCIAL
HIGHLIGHTS
(UNAUDITED)
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
|
|
As of or for the
Nine Months Ended
|
($ in thousands,
except per share data)
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
September 30,
2016
|
INCOME STATEMENT
DATA:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
|
39,105
|
|
|
$
|
39,578
|
|
|
$
|
39,898
|
|
|
|
$
|
116,325
|
|
|
$
|
110,996
|
|
Interest
expense
|
5,711
|
|
|
5,832
|
|
|
5,135
|
|
|
|
16,951
|
|
|
15,096
|
|
Net interest
income
|
33,394
|
|
|
33,746
|
|
|
34,763
|
|
|
|
99,374
|
|
|
95,900
|
|
Provision for loan
losses
|
1,425
|
|
|
750
|
|
|
2,118
|
|
|
|
4,275
|
|
|
5,746
|
|
Noninterest
income
|
33,638
|
|
|
35,056
|
|
|
39,325
|
|
|
|
106,064
|
|
|
94,182
|
|
Noninterest
expense
|
52,837
|
|
|
54,551
|
|
|
52,167
|
|
|
|
157,960
|
|
|
146,850
|
|
Net income before
income tax
|
12,769
|
|
|
13,502
|
|
|
19,803
|
|
|
|
43,203
|
|
|
37,487
|
|
Income tax
expense
|
4,835
|
|
|
4,610
|
|
|
7,288
|
|
|
|
15,850
|
|
|
13,785
|
|
Net income
|
7,934
|
|
|
8,892
|
|
|
12,515
|
|
|
|
27,353
|
|
|
23,701
|
|
PERFORMANCE:
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - basic
|
$
|
0.30
|
|
|
$
|
0.34
|
|
|
$
|
0.48
|
|
|
|
$
|
1.03
|
|
|
$
|
0.94
|
|
Earnings per common
share - diluted
|
0.30
|
|
|
0.33
|
|
|
0.48
|
|
|
|
1.03
|
|
|
0.92
|
|
Total
revenues
|
72,743
|
|
|
74,634
|
|
|
79,223
|
|
|
|
222,389
|
|
|
205,178
|
|
Book value per common
share
|
14.47
|
|
|
14.21
|
|
|
13.32
|
|
|
|
14.47
|
|
|
13.32
|
|
Tangible book value
per common share
|
14.00
|
|
|
13.72
|
|
|
12.78
|
|
|
|
14.00
|
|
|
12.78
|
|
Cash dividends paid
per common share
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
|
|
0.36
|
|
|
0.36
|
|
Dividend payout
ratio
|
40.00
|
%
|
|
35.29
|
%
|
|
25.00
|
%
|
|
|
34.95
|
%
|
|
38.30
|
%
|
Return on average
assets
|
0.70
|
%
|
|
0.78
|
%
|
|
1.15
|
%
|
|
|
0.81
|
%
|
|
0.76
|
%
|
Return on average
shareholders' equity
|
8.28
|
%
|
|
9.58
|
%
|
|
14.58
|
%
|
|
|
9.66
|
%
|
|
9.68
|
%
|
Equity to assets
ratio
|
8.61
|
%
|
|
8.23
|
%
|
|
7.91
|
%
|
|
|
8.61
|
%
|
|
7.91
|
%
|
Net interest
margin
|
3.20
|
%
|
|
3.20
|
%
|
|
3.47
|
%
|
|
|
3.20
|
%
|
|
3.33
|
%
|
END OF PERIOD
BALANCE SHEET SUMMARY:
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
4,505,423
|
|
|
$
|
4,609,280
|
|
|
$
|
4,395,611
|
|
|
|
$
|
4,505,423
|
|
|
$
|
4,395,611
|
|
Earning
assets
|
4,167,549
|
|
|
4,267,358
|
|
|
4,074,834
|
|
|
|
4,167,549
|
|
|
4,074,834
|
|
Loans, excluding
Loans Held-for-Sale
|
3,409,707
|
|
|
3,332,132
|
|
|
3,332,311
|
|
|
|
3,409,707
|
|
|
3,332,311
|
|
Total
loans
|
3,750,036
|
|
|
3,726,842
|
|
|
3,783,928
|
|
|
|
3,750,036
|
|
|
3,783,928
|
|
Total
deposits
|
3,938,360
|
|
|
3,899,796
|
|
|
3,538,908
|
|
|
|
3,938,360
|
|
|
3,538,908
|
|
Shareholders'
equity
|
388,068
|
|
|
379,399
|
|
|
347,770
|
|
|
|
388,068
|
|
|
347,770
|
|
Assets serviced for
others
|
10,109,466
|
|
|
9,877,434
|
|
|
8,926,574
|
|
|
|
10,109,466
|
|
|
8,926,574
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans
|
0.13
|
%
|
|
0.09
|
%
|
|
—
|
%
|
|
|
0.13
|
%
|
|
0.23
|
%
|
Allowance to
period-end loans
|
0.90
|
%
|
|
0.91
|
%
|
|
0.89
|
%
|
|
|
0.90
|
%
|
|
0.89
|
%
|
Nonperforming assets
to total loans, ORE and repossessions
|
1.56
|
%
|
|
1.50
|
%
|
|
1.51
|
%
|
|
|
1.56
|
%
|
|
1.54
|
%
|
Adjusted
nonperforming assets to loans, ORE and
repossessions(1)
|
0.95
|
%
|
|
1.02
|
%
|
|
1.19
|
%
|
|
|
0.95
|
%
|
|
1.19
|
%
|
Allowance to
nonperforming loans, ORE and repossessions
|
0.52x
|
|
|
0.54x
|
|
|
0.52x
|
|
|
|
0.52x
|
|
|
0.58x
|
|
SELECTED
INFORMATION AND RATIOS:
|
|
|
|
|
|
|
|
Loans to total
deposits
|
86.58
|
%
|
|
85.44
|
%
|
|
94.16
|
%
|
|
|
86.58
|
%
|
|
94.16
|
%
|
Avg total loans to
average earning assets
|
89.85
|
%
|
|
87.99
|
%
|
|
92.49
|
%
|
|
|
89.61
|
%
|
|
94.47
|
%
|
Noninterest income to
total revenue
|
46.24
|
%
|
|
46.97
|
%
|
|
49.64
|
%
|
|
|
47.69
|
%
|
|
45.90
|
%
|
Leverage
ratio
|
8.81
|
%
|
|
8.36
|
%
|
|
8.48
|
%
|
|
|
8.81
|
%
|
|
8.48
|
%
|
Common equity tier 1
capital
|
8.69
|
%
|
|
8.61
|
%
|
|
8.19
|
%
|
|
|
8.69
|
%
|
|
8.19
|
%
|
Tier 1 risk-based
capital
|
9.82
|
%
|
|
9.76
|
%
|
|
9.31
|
%
|
|
|
9.82
|
%
|
|
9.31
|
%
|
Total risk-based
capital
|
12.51
|
%
|
|
12.47
|
%
|
|
11.97
|
%
|
|
|
12.51
|
%
|
|
11.97
|
%
|
Mortgage loan
production
|
$
|
752,854
|
|
|
$
|
800,426
|
|
|
$
|
828,124
|
|
|
|
$
|
2,106,277
|
|
|
$
|
2,213,902
|
|
Total mortgage loan
sales
|
$
|
731,595
|
|
|
$
|
689,073
|
|
|
$
|
796,379
|
|
|
|
$
|
1,986,671
|
|
|
$
|
2,056,705
|
|
Indirect automobile
production
|
$
|
256,084
|
|
|
$
|
249,716
|
|
|
$
|
361,630
|
|
|
|
$
|
822,341
|
|
|
$
|
1,046,617
|
|
Total indirect
automobile loan sales
|
$
|
27,115
|
|
|
$
|
151,996
|
|
|
$
|
64,793
|
|
|
|
$
|
371,546
|
|
|
$
|
462,479
|
|
(1)
Excludes acquired loans and net of SBA & GNMA guarantees.
See non-GAAP reconciliation table for a reconciliation to the
comparable GAAP measure
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
312,027
|
|
|
$
|
430,547
|
|
|
$
|
143,909
|
|
Investment securities
available-for-sale
|
|
124,827
|
|
|
130,371
|
|
|
152,746
|
|
Investment securities
held-to-maturity
|
|
15,072
|
|
|
15,593
|
|
|
16,792
|
|
Loans
held-for-sale
|
|
340,329
|
|
|
394,710
|
|
|
451,617
|
|
|
|
|
|
|
|
|
Loans
|
|
3,409,707
|
|
|
3,332,132
|
|
|
3,332,311
|
|
Allowance for loan
losses
|
|
(30,703)
|
|
|
(30,425)
|
|
|
(29,737)
|
|
Loans, net of
allowance for loan losses
|
|
3,379,004
|
|
|
3,301,707
|
|
|
3,302,574
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
87,792
|
|
|
87,253
|
|
|
88,510
|
|
Other real estate,
net
|
|
8,624
|
|
|
9,382
|
|
|
16,926
|
|
Bank owned life
insurance
|
|
71,455
|
|
|
71,027
|
|
|
69,686
|
|
Servicing rights,
net
|
|
111,890
|
|
|
108,216
|
|
|
82,020
|
|
Other
assets
|
|
54,403
|
|
|
60,474
|
|
|
70,831
|
|
Total
assets
|
|
$
|
4,505,423
|
|
|
$
|
4,609,280
|
|
|
$
|
4,395,611
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
|
1,112,714
|
|
|
$
|
1,082,966
|
|
|
$
|
976,178
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
Demand and money
market
|
|
1,484,180
|
|
|
1,436,005
|
|
|
1,175,711
|
|
Savings
|
|
351,833
|
|
|
336,695
|
|
|
341,000
|
|
Time
deposits
|
|
989,633
|
|
|
1,044,130
|
|
|
1,046,019
|
|
Total
deposits
|
|
3,938,360
|
|
|
3,899,796
|
|
|
3,538,908
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
14,746
|
|
|
164,896
|
|
|
352,603
|
|
Subordinated debt,
net
|
|
120,554
|
|
|
120,521
|
|
|
120,421
|
|
Other
liabilities
|
|
43,695
|
|
|
44,668
|
|
|
35,909
|
|
Total
liabilities
|
|
4,117,355
|
|
|
4,229,881
|
|
|
4,047,841
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
|
—
|
|
|
—
|
|
Common
stock
|
|
212,633
|
|
|
208,699
|
|
|
200,129
|
|
Accumulated other
comprehensive income, net
|
|
964
|
|
|
959
|
|
|
2,901
|
|
Retained
earnings
|
|
174,471
|
|
|
169,741
|
|
|
144,740
|
|
Total shareholders'
equity
|
|
388,068
|
|
|
379,399
|
|
|
347,770
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,505,423
|
|
|
$
|
4,609,280
|
|
|
$
|
4,395,611
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
|
|
For the Nine
Months Ended
|
($ in thousands,
except per share data)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
September 30,
2016
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
37,290
|
|
|
$
|
37,560
|
|
|
$
|
38,481
|
|
|
|
$
|
110,933
|
|
|
$
|
106,670
|
|
Investment
securities
|
|
1,011
|
|
|
1,170
|
|
|
1,268
|
|
|
|
3,389
|
|
|
3,992
|
|
Other
|
|
804
|
|
|
848
|
|
|
149
|
|
|
|
2,003
|
|
|
334
|
|
Total interest
income
|
|
39,105
|
|
|
39,578
|
|
|
39,898
|
|
|
|
116,325
|
|
|
110,996
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
4,163
|
|
|
3,891
|
|
|
3,336
|
|
|
|
11,503
|
|
|
9,812
|
|
Short term
borrowings
|
|
16
|
|
|
502
|
|
|
345
|
|
|
|
910
|
|
|
950
|
|
Subordinated
debt
|
|
1,532
|
|
|
1,439
|
|
|
1,454
|
|
|
|
4,538
|
|
|
4,334
|
|
Total interest
expense
|
|
5,711
|
|
|
5,832
|
|
|
5,135
|
|
|
|
16,951
|
|
|
15,096
|
|
Net interest
income
|
|
33,394
|
|
|
33,746
|
|
|
34,763
|
|
|
|
99,374
|
|
|
95,900
|
|
Provision for loan
losses
|
|
1,425
|
|
|
750
|
|
|
2,118
|
|
|
|
4,275
|
|
|
5,746
|
|
Net interest
income after provision for loan losses
|
|
31,969
|
|
|
32,996
|
|
|
32,645
|
|
|
|
95,099
|
|
|
90,154
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,553
|
|
|
1,481
|
|
|
1,530
|
|
|
|
4,489
|
|
|
4,333
|
|
Other fees and
charges
|
|
2,197
|
|
|
2,006
|
|
|
2,288
|
|
|
|
6,060
|
|
|
5,775
|
|
Mortgage banking
activities
|
|
25,040
|
|
|
26,956
|
|
|
30,091
|
|
|
|
77,865
|
|
|
64,113
|
|
Indirect lending
activities
|
|
1,901
|
|
|
3,640
|
|
|
2,388
|
|
|
|
9,967
|
|
|
11,434
|
|
SBA lending
activities
|
|
1,460
|
|
|
681
|
|
|
1,202
|
|
|
|
3,959
|
|
|
4,329
|
|
Bank owned life
insurance
|
|
401
|
|
|
419
|
|
|
968
|
|
|
|
1,259
|
|
|
1,916
|
|
Securities
gains
|
|
—
|
|
|
—
|
|
|
296
|
|
|
|
—
|
|
|
578
|
|
Other
|
|
1,086
|
|
|
(127)
|
|
|
562
|
|
|
|
2,465
|
|
|
1,704
|
|
Total noninterest
income
|
|
33,638
|
|
|
35,056
|
|
|
39,325
|
|
|
|
106,064
|
|
|
94,182
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
26,331
|
|
|
25,852
|
|
|
23,807
|
|
|
|
77,621
|
|
|
69,437
|
|
Commissions
|
|
9,244
|
|
|
9,384
|
|
|
9,867
|
|
|
|
26,126
|
|
|
25,831
|
|
Occupancy,
net
|
|
4,508
|
|
|
4,700
|
|
|
4,597
|
|
|
|
13,371
|
|
|
12,994
|
|
Professional and
other services
|
|
4,604
|
|
|
5,052
|
|
|
4,053
|
|
|
|
13,723
|
|
|
11,685
|
|
Other
|
|
8,150
|
|
|
9,563
|
|
|
9,843
|
|
|
|
27,119
|
|
|
26,902
|
|
Total noninterest
expense
|
|
52,837
|
|
|
54,551
|
|
|
52,167
|
|
|
|
157,960
|
|
|
146,849
|
|
Income before
income tax expense
|
|
12,770
|
|
|
13,501
|
|
|
19,803
|
|
|
|
43,203
|
|
|
37,487
|
|
Income tax
expense
|
|
4,836
|
|
|
4,609
|
|
|
7,288
|
|
|
|
15,850
|
|
|
13,785
|
|
NET
INCOME
|
|
$
|
7,934
|
|
|
$
|
8,892
|
|
|
$
|
12,515
|
|
|
|
$
|
27,353
|
|
|
$
|
23,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
|
$
|
0.34
|
|
|
$
|
0.48
|
|
|
|
$
|
1.03
|
|
|
$
|
0.94
|
|
Diluted
|
|
$
|
0.30
|
|
|
$
|
0.33
|
|
|
$
|
0.48
|
|
|
|
$
|
1.03
|
|
|
$
|
0.92
|
|
Weighted average
common shares outstanding-basic
|
|
26,729
|
|
|
26,433
|
|
|
25,993
|
|
|
|
26,500
|
|
|
25,252
|
|
Weighted average
common shares outstanding-diluted
|
|
26,849
|
|
|
26,547
|
|
|
26,127
|
|
|
|
26,625
|
|
|
25,641
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
LOANS BY
CATEGORY
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Commercial
|
|
$
|
789,788
|
|
|
$
|
796,699
|
|
|
$
|
802,905
|
|
|
$
|
784,737
|
|
|
$
|
789,674
|
|
SBA
|
|
142,989
|
|
|
145,311
|
|
|
149,727
|
|
|
149,779
|
|
|
145,890
|
|
Total commercial and
SBA loans
|
|
932,777
|
|
|
942,010
|
|
|
952,632
|
|
|
934,516
|
|
|
935,564
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
|
243,600
|
|
|
248,926
|
|
|
249,465
|
|
|
238,910
|
|
|
228,887
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
automobile
|
|
1,609,678
|
|
|
1,531,761
|
|
|
1,565,298
|
|
|
1,575,865
|
|
|
1,631,903
|
|
Installment loans and
personal lines of credit
|
|
26,189
|
|
|
31,225
|
|
|
31,647
|
|
|
33,225
|
|
|
34,181
|
|
Total consumer
loans
|
|
1,635,867
|
|
|
1,562,986
|
|
|
1,596,945
|
|
|
1,609,090
|
|
|
1,666,084
|
|
Residential
mortgage
|
|
452,584
|
|
|
433,544
|
|
|
418,941
|
|
|
386,582
|
|
|
370,465
|
|
Home equity lines of
credit
|
|
144,879
|
|
|
144,666
|
|
|
136,943
|
|
|
133,166
|
|
|
131,311
|
|
Total mortgage
loans
|
|
597,463
|
|
|
578,210
|
|
|
555,884
|
|
|
519,748
|
|
|
501,776
|
|
Loans
held for investment
|
|
3,409,707
|
|
|
3,332,132
|
|
|
3,354,926
|
|
|
3,302,264
|
|
|
3,332,311
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
257,326
|
|
|
279,292
|
|
|
201,661
|
|
|
252,712
|
|
|
291,030
|
|
SBA
|
|
8,003
|
|
|
15,418
|
|
|
9,456
|
|
|
12,616
|
|
|
10,587
|
|
Indirect
automobile
|
|
75,000
|
|
|
100,000
|
|
|
150,000
|
|
|
200,000
|
|
|
150,000
|
|
Total loans
held-for-sale
|
|
340,329
|
|
|
394,710
|
|
|
361,117
|
|
|
465,328
|
|
|
451,617
|
|
Total loans
|
|
$
|
3,750,036
|
|
|
$
|
3,726,842
|
|
|
$
|
3,716,043
|
|
|
$
|
3,767,592
|
|
|
$
|
3,783,928
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS BY
CATEGORY
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
($ in
thousands)
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
Noninterest-bearing
demand deposits
|
$
|
1,103,414
|
|
|
—
|
%
|
|
$
|
1,027,909
|
|
|
—
|
%
|
|
$
|
961,188
|
|
|
—
|
%
|
|
$
|
978,909
|
|
|
—
|
%
|
|
$
|
1,004,924
|
|
|
—
|
%
|
Interest-bearing
demand deposits
|
1,447,874
|
|
|
0.42
|
%
|
|
1,363,651
|
|
|
0.37
|
%
|
|
1,244,955
|
|
|
0.31
|
%
|
|
1,179,837
|
|
|
0.25
|
%
|
|
1,151,152
|
|
|
0.26
|
%
|
Savings
deposits
|
340,663
|
|
|
0.31
|
%
|
|
357,712
|
|
|
0.32
|
%
|
|
387,007
|
|
|
0.36
|
%
|
|
350,885
|
|
|
0.33
|
%
|
|
370,011
|
|
|
0.35
|
%
|
Time
deposits
|
1,021,563
|
|
|
0.92
|
%
|
|
1,049,248
|
|
|
0.90
|
%
|
|
1,050,897
|
|
|
0.83
|
%
|
|
1,052,082
|
|
|
0.89
|
%
|
|
1,047,044
|
|
|
0.86
|
%
|
Total average
deposits
|
$
|
3,913,514
|
|
|
0.42
|
%
|
|
$
|
3,798,520
|
|
|
0.41
|
%
|
|
$
|
3,644,047
|
|
|
0.38
|
%
|
|
$
|
3,561,713
|
|
|
0.38
|
%
|
|
$
|
3,573,131
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
NONPERFORMING AND
CLASSIFIED ASSETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
(2) (6)
|
$
|
41,408
|
|
|
$
|
37,894
|
|
|
$
|
38,377
|
|
|
$
|
35,358
|
|
|
$
|
32,796
|
|
Loans past due 90
days or more and still accruing
|
6,534
|
|
|
7,210
|
|
|
8,414
|
|
|
6,189
|
|
|
6,140
|
|
Repossessions
|
2,040
|
|
|
1,779
|
|
|
1,654
|
|
|
2,274
|
|
|
1,747
|
|
Other real estate
(ORE)
|
8,624
|
|
|
9,382
|
|
|
11,284
|
|
|
14,814
|
|
|
16,926
|
|
Nonperforming
assets
|
$
|
58,606
|
|
|
$
|
56,265
|
|
|
$
|
59,729
|
|
|
$
|
58,635
|
|
|
$
|
57,609
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
10,193
|
|
|
$
|
7,181
|
|
|
$
|
11,735
|
|
|
$
|
7,707
|
|
|
$
|
7,304
|
|
Loans 30-89 days past
due to loans
|
0.30
|
%
|
|
0.22
|
%
|
|
0.35
|
%
|
|
0.23
|
%
|
|
0.22
|
%
|
Loans past due 90
days or more and still accruing to loans
|
0.19
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
|
0.19
|
%
|
|
0.18
|
%
|
Nonperforming loans
as a % of loans
|
1.41
|
%
|
|
1.35
|
%
|
|
1.39
|
%
|
|
1.26
|
%
|
|
1.17
|
%
|
Nonperforming assets
to loans, ORE, and repossessions
|
1.56
|
%
|
|
1.51
|
%
|
|
1.60
|
%
|
|
1.55
|
%
|
|
1.51
|
%
|
Adjusted
nonperforming assets to loans, ORE and
repossessions(8)
|
0.95
|
%
|
|
1.02
|
%
|
|
1.10
|
%
|
|
1.15
|
%
|
|
1.19
|
%
|
Nonperforming assets
to total assets
|
1.30
|
%
|
|
1.22
|
%
|
|
1.32
|
%
|
|
1.34
|
%
|
|
1.31
|
%
|
Adjusted
nonperforming assets to total
assets(8)
|
0.74
|
%
|
|
0.78
|
%
|
|
0.85
|
%
|
|
0.92
|
%
|
|
0.95
|
%
|
Classified Asset
Ratio(4)
|
20.59
|
%
|
|
20.14
|
%
|
|
20.97
|
%
|
|
21.22
|
%
|
|
21.47
|
%
|
ALL to nonperforming
loans
|
64.04
|
%
|
|
67.46
|
%
|
|
65.09
|
%
|
|
71.80
|
%
|
|
76.37
|
%
|
Net charge-offs,
annualized to average loans
|
0.13
|
%
|
|
0.09
|
%
|
|
0.16
|
%
|
|
0.28
|
%
|
|
—
|
%
|
ALL as a % of
loans
|
0.90
|
%
|
|
0.91
|
%
|
|
0.91
|
%
|
|
0.90
|
%
|
|
0.89
|
%
|
Adjusted ALL as a %
of adjusted loans(7)
|
1.30
|
%
|
|
1.30
|
%
|
|
1.36
|
%
|
|
1.39
|
%
|
|
1.43
|
%
|
ALL as a % of loans,
excluding acquired loans(5)
|
0.96
|
%
|
|
0.98
|
%
|
|
0.98
|
%
|
|
0.99
|
%
|
|
0.98
|
%
|
|
|
|
|
|
|
|
|
|
|
CLASSIFIED
ASSETS
|
|
|
|
|
|
|
|
|
|
Classified
loans(1)
|
$
|
75,033
|
|
|
$
|
71,040
|
|
|
$
|
71,082
|
|
|
$
|
68,128
|
|
|
$
|
67,826
|
|
ORE and
repossessions
|
10,664
|
|
|
11,162
|
|
|
12,938
|
|
|
17,088
|
|
|
16,792
|
|
Total classified
assets(3)
|
$
|
85,697
|
|
|
$
|
82,202
|
|
|
$
|
84,020
|
|
|
$
|
85,216
|
|
|
$
|
84,618
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amount of SBA guarantee included in classified
loans
|
$
|
2,755
|
|
|
$
|
7,458
|
|
|
$
|
5,213
|
|
|
$
|
7,735
|
|
|
$
|
8,665
|
|
(2)
Amount of repurchased government-guaranteed loans, primarily
residential mortgage loans, included in nonaccrual
loans
|
$
|
15,450
|
|
|
$
|
12,502
|
|
|
$
|
12,287
|
|
|
$
|
7,771
|
|
|
$
|
4,648
|
|
(3)
Classified assets include loans having a risk rating of
substandard or worse, both accrual and nonaccrual, repossessions
and ORE, net of loss share and purchase discounts
|
(4)
Classified asset ratio is defined as classified assets as a
percentage of the sum of Tier 1 capital plus allowance for loan
losses
|
(5)
Allowance calculation excludes the recorded investment of
acquired loans, due to valuation calculated at
acquisition
|
(6)
Excludes purchased credit impaired (PCI) loans which are not
removed from their accounting pool
|
(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 SBA & GNMA 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,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Loan servicing
revenue
|
|
$
|
2,130
|
|
|
$
|
2,199
|
|
|
$
|
1,919
|
|
|
$
|
2,343
|
|
|
$
|
2,155
|
|
Gain on sale of
loans
|
|
263
|
|
|
1,074
|
|
|
1,821
|
|
|
993
|
|
|
676
|
|
Gain on
capitalization of servicing rights
|
|
182
|
|
|
1,020
|
|
|
1,403
|
|
|
781
|
|
|
523
|
|
Ancillary loan
servicing revenue
|
|
172
|
|
|
204
|
|
|
153
|
|
|
302
|
|
|
101
|
|
Gross indirect lending revenue
|
|
2,747
|
|
|
4,497
|
|
|
5,296
|
|
|
4,419
|
|
|
3,455
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
servicing rights, net
|
|
(846)
|
|
|
(857)
|
|
|
(870)
|
|
|
(953)
|
|
|
(1,067)
|
|
Total income from
indirect lending activities
|
|
$
|
1,901
|
|
|
$
|
3,640
|
|
|
$
|
4,426
|
|
|
$
|
3,466
|
|
|
$
|
2,388
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
INDIRECT LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Average loans
outstanding(1)
|
$
|
1,627,946
|
|
|
$
|
1,675,644
|
|
|
$
|
1,756,958
|
|
|
$
|
1,702,006
|
|
|
$
|
1,726,342
|
|
Loans serviced for
others
|
$
|
1,114,710
|
|
|
$
|
1,216,296
|
|
|
$
|
1,197,160
|
|
|
$
|
1,130,289
|
|
|
$
|
1,152,636
|
|
Past due
loans:
|
|
|
|
|
|
|
|
|
|
Amount 30+ days past
due
|
2,965
|
|
|
1,535
|
|
|
2,223
|
|
|
2,972
|
|
|
1,585
|
|
Number 30+ days past
due
|
255
|
|
|
143
|
|
|
200
|
|
|
252
|
|
|
135
|
|
30+ day performing
delinquency rate(2)
|
0.18
|
%
|
|
0.09
|
%
|
|
0.13
|
%
|
|
0.17
|
%
|
|
0.09
|
%
|
Nonperforming
loans
|
1,405
|
|
|
1,363
|
|
|
1,778
|
|
|
1,278
|
|
|
1,231
|
|
Nonperforming loans
as a percentage of period end loans(2)
|
0.08
|
%
|
|
0.08
|
%
|
|
0.10
|
%
|
|
0.07
|
%
|
|
0.07
|
%
|
Net
charge-offs
|
$
|
1,011
|
|
|
$
|
1,332
|
|
|
$
|
1,502
|
|
|
$
|
1,306
|
|
|
$
|
895
|
|
Net charge-off
rate(3)
|
0.26
|
%
|
|
0.35
|
%
|
|
0.39
|
%
|
|
0.32
|
%
|
|
0.23
|
%
|
Number of vehicles
repossessed during the period
|
132
|
|
|
147
|
|
|
154
|
|
|
164
|
|
|
145
|
|
Average beacon
score
|
776
|
|
|
758
|
|
|
758
|
|
|
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 PRODUCTION
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Production by
state:
|
|
|
|
|
|
|
|
|
|
|
|
Alabama
|
|
$
|
13,587
|
|
|
$
|
10,399
|
|
|
$
|
14,452
|
|
|
$
|
11,613
|
|
|
$
|
18,296
|
|
|
Arkansas
|
|
26,997
|
|
|
26,569
|
|
|
33,602
|
|
|
32,789
|
|
|
48,143
|
|
|
Florida
|
|
51,723
|
|
|
49,976
|
|
|
65,053
|
|
|
56,432
|
|
|
71,530
|
|
|
Georgia
|
|
31,266
|
|
|
28,091
|
|
|
36,178
|
|
|
29,150
|
|
|
43,948
|
|
|
Louisiana
|
|
47,576
|
|
|
45,306
|
|
|
56,046
|
|
|
49,849
|
|
|
57,039
|
|
|
Mississippi
|
|
24,535
|
|
|
20,136
|
|
|
21,370
|
|
|
17,784
|
|
|
26,260
|
|
|
North
Carolina
|
|
16,545
|
|
|
14,110
|
|
|
15,858
|
|
|
13,734
|
|
|
21,874
|
|
|
Oklahoma
(2)
|
|
430
|
|
|
1,051
|
|
|
1,635
|
|
|
1,780
|
|
|
945
|
|
|
South
Carolina
|
|
10,959
|
|
|
11,232
|
|
|
15,020
|
|
|
11,953
|
|
|
14,146
|
|
|
Tennessee
|
|
10,931
|
|
|
10,012
|
|
|
14,143
|
|
|
12,963
|
|
|
18,661
|
|
|
Texas
(2)
|
|
13,312
|
|
|
26,542
|
|
|
32,902
|
|
|
24,942
|
|
|
31,851
|
|
|
Virginia
|
|
8,223
|
|
|
6,292
|
|
|
10,282
|
|
|
6,063
|
|
|
8,937
|
|
|
|
Total production by
state
|
|
$
|
256,084
|
|
|
$
|
249,716
|
|
|
$
|
316,541
|
|
|
$
|
269,052
|
|
|
$
|
361,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
$
|
27,115
|
|
|
$
|
151,996
|
|
|
$
|
192,435
|
|
|
$
|
97,916
|
|
|
$
|
64,793
|
|
Portfolio
yield(1)
|
|
2.92
|
%
|
|
2.84
|
%
|
|
2.87
|
%
|
|
2.88
|
%
|
|
2.81
|
%
|
|
|
(1)
|
Includes
held-for-sale
|
(2)
|
Fidelity has
exited the Oklahoma and Texas markets in Q3 2017
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
INCOME FROM
MORTGAGE BANKING ACTIVITIES
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
(in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Marketing gain,
net
|
|
$
|
19,713
|
|
|
$
|
21,355
|
|
|
$
|
18,677
|
|
|
$
|
19,364
|
|
|
$
|
25,240
|
|
Origination points
and fees
|
|
3,815
|
|
|
4,189
|
|
|
3,021
|
|
|
3,786
|
|
|
3,911
|
|
Loan servicing
revenue
|
|
5,616
|
|
|
5,379
|
|
|
5,341
|
|
|
5,088
|
|
|
4,896
|
|
Gross mortgage
revenue
|
|
$
|
29,144
|
|
|
$
|
30,923
|
|
|
$
|
27,039
|
|
|
$
|
28,238
|
|
|
$
|
34,047
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
MSR
amortization
|
|
(3,560)
|
|
|
(3,331)
|
|
|
(3,158)
|
|
|
(3,918)
|
|
|
(4,414)
|
|
MSR
(impairment)/recovery, net
|
|
(544)
|
|
|
(636)
|
|
|
1,989
|
|
|
13,144
|
|
|
458
|
|
Total income from
mortgage banking activities
|
$
|
25,040
|
|
|
$
|
26,956
|
|
|
$
|
25,870
|
|
|
$
|
37,464
|
|
|
$
|
30,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
MORTGAGE LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Production by
region:
|
|
|
|
|
|
|
|
|
|
|
|
Georgia
|
|
$
|
490,323
|
|
|
$
|
519,497
|
|
|
$
|
395,404
|
|
|
$
|
532,177
|
|
|
$
|
580,170
|
|
|
Florida
|
|
95,010
|
|
|
95,983
|
|
|
46,365
|
|
|
46,140
|
|
|
44,849
|
|
|
Alabama/Tennessee(2)
|
|
7,299
|
|
|
7,294
|
|
|
3,600
|
|
|
5,485
|
|
|
7,307
|
|
|
Virginia/Maryland
|
|
129,774
|
|
|
143,885
|
|
|
81,901
|
|
|
139,283
|
|
|
160,959
|
|
|
North and South
Carolina
|
|
30,448
|
|
|
33,767
|
|
|
25,727
|
|
|
33,783
|
|
|
31,332
|
|
|
Total
retail
|
|
752,854
|
|
|
800,426
|
|
|
552,997
|
|
|
756,868
|
|
|
824,617
|
|
|
Wholesale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,507
|
|
|
Total production by
region
|
|
$
|
752,854
|
|
|
$
|
800,426
|
|
|
$
|
552,997
|
|
|
$
|
756,868
|
|
|
$
|
828,124
|
|
|
|
|
|
|
|
|
|
|
|
|
% for
purchases
|
86.3
|
%
|
|
89.6
|
%
|
|
80.9
|
%
|
|
61.3
|
%
|
|
66.7
|
%
|
% for refinance
loans
|
13.7
|
%
|
|
10.4
|
%
|
|
19.1
|
%
|
|
38.7
|
%
|
|
33.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Production
|
|
$
|
56,072
|
|
|
$
|
46,902
|
|
|
$
|
51,061
|
|
|
$
|
38,907
|
|
|
$
|
45,586
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded loan type
(UPB):
|
|
|
|
|
|
|
|
|
|
|
|
|
Conventional
|
|
62.0
|
%
|
|
62.5
|
%
|
|
63.9
|
%
|
|
68.9
|
%
|
|
68.9
|
%
|
|
|
FHA/VA/USDA
|
|
23.3
|
%
|
|
24.6
|
%
|
|
24.2
|
%
|
|
21.6
|
%
|
|
22.2
|
%
|
|
|
Jumbo
|
|
14.7
|
%
|
|
12.9
|
%
|
|
11.9
|
%
|
|
9.5
|
%
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross pipeline of
locked loans to be sold (UPB)
|
$
|
265,444
|
|
|
$
|
360,551
|
|
|
$
|
374,739
|
|
|
$
|
211,921
|
|
|
$
|
394,773
|
|
Loans held for sale
(UPB)
|
|
$
|
250,960
|
|
|
$
|
271,714
|
|
|
$
|
195,772
|
|
|
$
|
250,094
|
|
|
$
|
281,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan sales
(UPB)
|
|
$
|
731,595
|
|
|
$
|
689,073
|
|
|
$
|
566,003
|
|
|
$
|
758,775
|
|
|
$
|
796,379
|
|
|
|
Conventional
|
|
63.0
|
%
|
|
63.6
|
%
|
|
69.9
|
%
|
|
72.8
|
%
|
|
70.0
|
%
|
|
|
FHA/VA/USDA
|
|
27.1
|
%
|
|
26.6
|
%
|
|
23.0
|
%
|
|
22.6
|
%
|
|
24.0
|
%
|
|
|
Jumbo
|
|
9.9
|
%
|
|
9.8
|
%
|
|
7.1
|
%
|
|
4.6
|
%
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
outstanding(1)
|
|
$
|
698,068
|
|
|
$
|
664,099
|
|
|
$
|
592,537
|
|
|
$
|
634,511
|
|
|
$
|
635,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes held-for-sale
|
|
|
(2)
Tennessee added in Q1 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
THIRD PARTY
MORTGAGE LOAN SERVICING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Loans serviced for
others (UPB)
|
|
$
|
8,715,198
|
|
|
$
|
8,357,934
|
|
|
$
|
8,067,426
|
|
|
$
|
7,787,470
|
|
|
$
|
7,489,954
|
|
Average loans
serviced for others (UPB)
|
|
$
|
8,657,475
|
|
|
$
|
8,304,065
|
|
|
$
|
8,013,761
|
|
|
$
|
7,625,384
|
|
|
$
|
7,337,291
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR book value, net
of amortization
|
|
$
|
107,434
|
|
|
$
|
102,549
|
|
|
$
|
98,550
|
|
|
$
|
95,282
|
|
|
$
|
90,982
|
|
MSR
impairment
|
|
(8,343)
|
|
|
(7,799)
|
|
|
(7,163)
|
|
|
(9,152)
|
|
|
(22,295)
|
|
MSR net carrying
value
|
|
$
|
99,091
|
|
|
$
|
94,750
|
|
|
$
|
91,387
|
|
|
$
|
86,130
|
|
|
$
|
68,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR carrying value as
a % of period end UPB
|
1.14
|
%
|
|
1.13
|
%
|
|
1.13
|
%
|
|
1.11
|
%
|
|
0.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency % loans
serviced for others
|
1.41
|
%
|
|
1.02
|
%
|
|
0.53
|
%
|
|
0.69
|
%
|
|
0.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR revenue
multiple(1)
|
|
4.38
|
|
|
4.38
|
|
|
4.25
|
|
|
4.14
|
|
|
3.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
MSR carrying value (period end) to period end loans serviced for
others divided by the ratio of annualized mortgage loan servicing
revenue to average mortgage loans serviced for
others
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
NET INTEREST
MARGIN
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
($ in
thousands)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of
unearned income (1)
|
$
|
3,725,976
|
|
|
3.98
|
%
|
|
$
|
3,736,026
|
|
|
4.04
|
%
|
|
$
|
3,718,341
|
|
|
4.13
|
%
|
Investment securities
(1)
|
147,572
|
|
|
2.76
|
%
|
|
164,037
|
|
|
2.97
|
%
|
|
189,365
|
|
|
3.08
|
%
|
Other earning
assets
|
273,505
|
|
|
1.16
|
%
|
|
345,891
|
|
|
0.98
|
%
|
|
112,757
|
|
|
0.53
|
%
|
Total
interest-earning assets
|
4,147,053
|
|
|
3.75
|
%
|
|
4,245,954
|
|
|
3.75
|
%
|
|
4,020,463
|
|
|
3.98
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
41,590
|
|
|
|
|
44,132
|
|
|
|
|
29,400
|
|
|
|
Allowance for loan
losses
|
(30,518)
|
|
|
|
|
(30,116)
|
|
|
|
|
(28,108)
|
|
|
|
Premises and
equipment, net
|
87,679
|
|
|
|
|
87,332
|
|
|
|
|
88,292
|
|
|
|
Other real
estate
|
9,111
|
|
|
|
|
10,907
|
|
|
|
|
17,714
|
|
|
|
Other
assets
|
224,730
|
|
|
|
|
221,322
|
|
|
|
|
202,213
|
|
|
|
Total
noninterest-earning assets
|
332,592
|
|
|
|
|
333,577
|
|
|
|
|
309,511
|
|
|
|
Total
assets
|
$
|
4,479,645
|
|
|
|
|
$
|
4,579,531
|
|
|
|
|
$
|
4,329,974
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand and money
market deposits
|
$
|
1,447,874
|
|
|
0.42
|
%
|
|
$
|
1,363,651
|
|
|
0.37
|
%
|
|
$
|
1,151,152
|
|
|
0.26
|
%
|
Savings
deposits
|
340,663
|
|
|
0.31
|
%
|
|
357,712
|
|
|
0.32
|
%
|
|
370,011
|
|
|
0.35
|
%
|
Time
deposits
|
1,021,563
|
|
|
0.92
|
%
|
|
1,049,248
|
|
|
0.90
|
%
|
|
1,047,044
|
|
|
0.86
|
%
|
Total
interest-bearing deposits
|
2,810,100
|
|
|
0.59
|
%
|
|
2,770,611
|
|
|
0.56
|
%
|
|
2,568,207
|
|
|
0.52
|
%
|
Other short-term
borrowings
|
20,899
|
|
|
0.32
|
%
|
|
243,359
|
|
|
0.83
|
%
|
|
258,139
|
|
|
0.53
|
%
|
Subordinated
debt
|
120,538
|
|
|
5.04
|
%
|
|
120,505
|
|
|
4.79
|
%
|
|
120,405
|
|
|
4.80
|
%
|
Total
interest-bearing liabilities
|
2,951,537
|
|
|
0.77
|
%
|
|
3,134,475
|
|
|
0.75
|
%
|
|
2,946,751
|
|
|
0.69
|
%
|
Noninterest-bearing liabilities and shareholders'
equity:
|
|
|
|
|
|
|
|
Demand
deposits
|
1,103,414
|
|
|
|
|
1,027,909
|
|
|
|
|
1,004,924
|
|
|
|
Other
liabilities
|
44,732
|
|
|
|
|
44,824
|
|
|
|
|
36,896
|
|
|
|
Shareholders'
equity
|
379,962
|
|
|
|
|
372,323
|
|
|
|
|
341,403
|
|
|
|
Total
noninterest-bearing liabilities and shareholders' equity
|
1,528,108
|
|
|
|
|
1,445,056
|
|
|
|
|
1,383,223
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,479,645
|
|
|
|
|
$
|
4,579,531
|
|
|
|
|
$
|
4,329,974
|
|
|
|
Net interest
spread
|
|
|
2.98
|
%
|
|
|
|
3.00
|
%
|
|
|
|
3.29
|
%
|
Net interest
margin
|
|
|
3.20
|
%
|
|
|
|
3.20
|
%
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Yield / Rate is calculated using interest income
including the effect of taxable-equivalent adjustments utilizing a
35% tax rate.
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
GAAP to non-GAAP
Reconciliation
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
($ in
thousands)
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Reconciliation of
nonperforming assets to total loans, ORE, and repossessions,
excluding acquired loans, SBA, and GNMA
|
Nonaccrual
loans
|
$
|
41,408
|
|
|
$
|
37,894
|
|
|
$
|
38,377
|
|
|
$
|
35,358
|
|
|
$
|
32,796
|
|
Add: loans past due
90 days or more and still accruing
|
6,534
|
|
|
7,210
|
|
|
8,414
|
|
|
6,189
|
|
|
6,140
|
|
Add:
repossessions
|
2,040
|
|
|
1,779
|
|
|
1,654
|
|
|
2,274
|
|
|
1,747
|
|
Add: other real
estate
|
8,624
|
|
|
9,382
|
|
|
11,284
|
|
|
14,814
|
|
|
16,926
|
|
Nonperforming
assets (GAAP)
|
$
|
58,606
|
|
|
$
|
56,265
|
|
|
$
|
59,729
|
|
|
$
|
58,635
|
|
|
$
|
57,609
|
|
|
|
|
|
|
|
|
|
|
|
Less: amount of GNMA
repurchased government-guaranteed loans included in nonaccrual
loans
|
$
|
15,450
|
|
|
12,502
|
|
|
12,287
|
|
|
7,771
|
|
|
4,648
|
|
Less: SBA guaranteed
loans in non accrual
|
2,145
|
|
|
2,949
|
|
|
3,373
|
|
|
4,248
|
|
|
5,685
|
|
Less: Nonaccrual
acquired loans
|
7,509
|
|
|
4,878
|
|
|
5,719
|
|
|
6,136
|
|
|
5,563
|
|
Nonperforming
assets, excluding acquired loans, SBA, and GNMA
(Non-GAAP)
|
$
|
33,502
|
|
|
$
|
35,936
|
|
|
$
|
38,350
|
|
|
$
|
40,480
|
|
|
$
|
41,713
|
|
|
|
|
|
|
|
|
|
|
|
Loans, excluding
LHS
|
$
|
3,409,707
|
|
|
$
|
3,332,132
|
|
|
$
|
3,354,926
|
|
|
$
|
3,302,264
|
|
|
$
|
3,332,311
|
|
Add: loans
held-for-sale
|
340,329
|
|
|
394,710
|
|
|
361,117
|
|
|
465,328
|
|
|
451,617
|
|
Add: other real
estate
|
8,624
|
|
|
9,382
|
|
|
11,284
|
|
|
14,814
|
|
|
16,926
|
|
Add:
repossessions
|
2,040
|
|
|
1,779
|
|
|
1,654
|
|
|
2,274
|
|
|
1,747
|
|
Total Loans, ORE,
and repossessions (GAAP)
|
3,760,700
|
|
|
3,738,003
|
|
|
3,728,981
|
|
|
3,784,680
|
|
|
3,802,601
|
|
|
|
|
|
|
|
|
|
|
|
Less: acquired
loans
|
216,994
|
|
|
230,256
|
|
|
258,366
|
|
|
275,515
|
|
|
290,819
|
|
Total Loans, ORE,
and repossessions, less acquired loans (non-GAAP)
|
$
|
3,543,706
|
|
|
$
|
3,507,747
|
|
|
$
|
3,470,615
|
|
|
$
|
3,509,165
|
|
|
$
|
3,511,782
|
|
Adjusted
nonperforming assets to loans, ORE, and repossessions
(non-GAAP)
|
0.95
|
%
|
|
1.02
|
%
|
|
1.10
|
%
|
|
1.15
|
%
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
nonperforming assets to total assets, excluding acquired loans,
SBA, and GNMA
|
Total Assets
(GAAP)
|
$
|
4,505,423
|
|
|
$
|
4,609,280
|
|
|
$
|
4,531,057
|
|
|
$
|
4,389,685
|
|
|
$
|
4,395,611
|
|
Adjusted
nonperforming assets to assets(non-GAAP)
|
0.74
|
%
|
|
0.78
|
%
|
|
0.85
|
%
|
|
0.92
|
%
|
|
0.95
|
%
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
Non GAAP Measures
and Ratio Reconciliation
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
($ in
thousands)
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Reconciliation of
adjusted allowance to total loans
|
Allowance for loan
losses (GAAP)
|
$
|
30,703
|
|
|
$
|
30,425
|
|
|
$
|
30,455
|
|
|
$
|
29,830
|
|
|
$
|
29,737
|
|
Less: allowance
allocated to indirect auto loans
|
10,116
|
|
|
9,767
|
|
|
9,442
|
|
|
9,522
|
|
|
9,400
|
|
Less: allowance
allocated to acquired loans
|
66
|
|
|
191
|
|
|
191
|
|
|
191
|
|
|
151
|
|
Adjusted allowance
for loans losses (non-GAAP)
|
$
|
20,521
|
|
|
$
|
20,467
|
|
|
$
|
20,822
|
|
|
$
|
20,117
|
|
|
$
|
20,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans,
excluding LHS
|
$
|
3,409,707
|
|
|
$
|
3,332,132
|
|
|
$
|
3,354,926
|
|
|
$
|
3,302,264
|
|
|
$
|
3,332,311
|
|
Less: indirect auto
loans
|
1,609,689
|
|
|
1,531,761
|
|
|
1,565,298
|
|
|
1,575,865
|
|
|
1,631,903
|
|
Less: acquired
loans
|
216,994
|
|
|
230,256
|
|
|
258,366
|
|
|
275,515
|
|
|
290,819
|
|
Adjusted total
loans (non-GAAP)
|
$
|
1,583,024
|
|
|
$
|
1,570,115
|
|
|
$
|
1,531,262
|
|
|
$
|
1,450,884
|
|
|
$
|
1,409,589
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted allowance
to adjusted total loans (non-GAAP)
|
1.30
|
%
|
|
1.30
|
%
|
|
1.36
|
%
|
|
1.39
|
%
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
The tables above 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"
measures in its analysis of our performance. Management believes
that these non-GAAP financial measures allow better comparability
with prior periods, as well as with peers in the industry who
provide a similar presentation and provide a greater understanding
of our ongoing operations. 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.
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-third-quarter-of-79-million-300539979.html
SOURCE Fidelity Southern Corporation