ATLANTA, April 18, 2019
/PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the
"Company") (NASDAQ: LION), holding company for Fidelity Bank (the
"Bank"), today reported net income of $6.1
million, or $0.22 per diluted
share, for the first quarter of 2019, compared with $9.9 million, or $0.36 per diluted share, for the fourth quarter
of 2018, and $11.8 million or
$0.43 per diluted share for the first
quarter of 2018.
FIRST QUARTER 2019 HIGHLIGHTS:
- The integrated planning process with Ameris Bancorp continues
to proceed as expected.
- Although net interest income decreased by $1.4 million compared to the previous quarter,
net interest margin improved by 2 basis points.
- Mortgage banking activities are down from the fourth quarter
2018 primarily due to a pre-tax mortgage servicing rights ("MSRs")
impairment of $4.8 million as market
rates have declined. This impairment had an effect of $0.14 per diluted share.
- Noninterest expense is below the fourth quarter by $2.6 million due to lower salaries and benefits,
lower commissions as mortgage production decreased, and a reduction
in other operating expenses due to merger related costs recorded in
the fourth quarter.
BALANCE SHEET
Total assets increased by $56.1
million, or 1.2%, during the quarter to $4.8 billion at March 31, 2019, primarily
due to an increase in investments of $33.7
million and an increase in loans held for sale of
$24.4 million. The increase in
loans held for sale was primarily in mortgage loans, which
increased $26.9 million, as seasonal
production began to increase. The Bank continues to increase its
available-for-sale investments portfolio as part of its strategy to
reposition the balance sheet to higher yielding assets. Other
assets also increased by $18.4
million, mainly due to the right of use lease asset of
$15.5 million recorded during the
quarter as a result of the implementation of the new lease
standard.
Loans
Total loans increased by $15.7
million, or 0.4%, compared to December 31, 2018, as
loans held for sale increased by $24.4
million, offset by an overall decrease in loans held for
investment of $8.7 million. Loan
growth in loans held for investment was experienced in all loan
categories, excluding indirect auto, specifically in commercial,
SBA and construction of $76.3 million
and $31.3 million in mortgage. These
increases were offset by a reduction of $114.5 million in indirect loans.
Asset Quality
Asset quality remained strong as nonperforming assets, excluding
the guaranteed portion of government loans and acquired loans
("adjusted NPA's", a non-GAAP measure), remained flat during the
quarter. Credit quality trend performance remains consistent and
strong as net charge-offs were 0.10% of average loans for the
quarter.
Fair Value Adjustments
Loan servicing rights decreased by $3.7
million, or 3.0%, during the quarter to $116.7 million at March 31, 2019, compared
to $120.4 million at
December 31, 2018. Mortgage servicing rights ("MSRs"), the
primary component of loan servicing rights, contributed the
majority of the change, decreasing by 2.7% to $108.4 million at March 31, 2019. The
current estimated fair market value of MSRs was $113.6 million at March
31, 2019.
At March 31, 2019, fair value adjustments recorded on the
balance sheet for loans held for sale, interest rate lock
commitments ("IRLCs"), and hedge items were $12.4 million, a $3.7
million, or 42.1% increase, from December 31, 2018. The
gross pipeline of interest rate lock commitments was $132.0 million higher at quarter end, compared to
December 31, 2018, due to an increase
in seasonal production.
Deposits
Core deposits decreased by $19.3
million during the quarter to $3.0
billion with decreases in money market and savings of
$30.6 million and noninterest bearing
demand deposits of $11.4 million,
offset by increases in interest-bearing demand deposits of
$22.7 million. The decrease in core
deposits was offset by an increase in time deposits of $20.2 million during the quarter, mainly due to
an increase of $30.0 million in
brokered deposits, resulting in an increase in total deposits of
$955,000, or 0.02%.
INCOME STATEMENT
Net Income
Net income was $6.1 million, or a
$3.8 million decrease over the
previous quarter, primarily due to a decrease in noninterest
income of $7.1 million driven by MSRs
impairment of $4.8 million during the
quarter. Net income was $5.7 million
lower compared to the same quarter a year ago, due to a
$13.2 million decrease in noninterest
income, primarily mortgage banking activities, offset by an
increase in net interest income of $3.4
million, a decrease in noninterest expense of $1.3 million and a decrease in income tax expense
of $1.7 million.
Interest Income
Interest income of $47.0 million
was lower by $1.2 million, compared
to the prior quarter, driven by a decrease in loan income of
$1.4 million. Average loan balances
decreased by $105.5 million for the
quarter, $86.3 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. Average mortgage loans also decreased by
$35.0 million for the quarter. These
decreases were offset by an increase in average investment
securities of $40.6 million and in
the average balances of commercial, SBA and construction loans. The
yield on total average interest-bearing assets also increased 7
basis points from the previous quarter.
Interest Expense
Interest expense of $8.9 million
increased slightly by $186,000, or
2.1%, for the quarter, primarily due to a 6 basis points increase
in deposit costs although average balances for total
interest-bearing deposits decreased by $24.5
million. As compared to the first quarter of the prior year,
interest expense increased by $2.1
million, or 31.0%. Rising market rates paid on money market
deposits and CD's drove the increase.
Net Interest Margin
The net interest margin was 3.56% for the quarter compared to
3.54% in the previous quarter, a slight increase of 2 basis
points. The yield on total average interest-bearing liabilities
increased by only 6 basis points while the yield on total average
interest-earning assets increased by 7 basis points from 4.32% to
4.39%. Average loans decreased by $105.5
million, of which $86.3
million was a decrease in lower yielding indirect auto
loans. Higher yielding investment securities increased by
$40.6 million as the Bank's strategy
to reposition its balance sheet continues to occur.
Average total interest-bearing liabilities decreased by
$41.3 million as average deposits
decreased by $24.5 million and
average borrowings decreased by $16.8
million.
As compared to the same period a year ago, the net interest
margin for the quarter increased by 27 basis points to 3.56% from
3.29%, primarily due to a 46 basis point increase in the yield on
total average interest-earning assets of $4.4 billion, offset by an increase of 29 basis
points in the yield on total average interest-bearing liabilities
of $3.0 billion. Average earning
assets increased by $62.7 million,
primarily due to an increase in average investment securities over
the year, offset by a decrease in average loans, primarily indirect
auto loans. Average interest-bearing liabilities decreased by
$42.9 million, primarily driven by a
decrease in average borrowings of $74.4
million, offset by an increase in average interest-bearing
deposits of $31.4 million.
Noninterest Income
On a linked-quarter basis, noninterest income decreased by
$7.1 million, or 23.0%, largely due
to a decrease of $4.9 million, or
22.6%, in mortgage banking activities, primarily due to the
previously mentioned MSRs impairment of $4.8
million for the quarter. SBA lending activities also
decreased by $2.1 million as gains on
SBA sales were seasonally lower for the quarter due to lower
sales.
Compared to the same period a year ago, noninterest income for
the quarter decreased by $13.2
million, primarily due to a decrease in mortgage banking
activities stemming from a change in MSRs impairment of
$9.4 million.
Noninterest Expense
On a linked-quarter basis, total noninterest expense decreased
by $2.6 million, or 4.7%, mainly due
to a decrease in other expenses of $1.5 million, of which $1.2 million were merger related expenses, from
the previous quarter. Salaries and employee benefits also decreased
by $1.1 million, or 3.9%. Compared to
the prior year quarter, noninterest expense of $53.5 million decreased slightly by $1.3 million, or 2.3%. Lower commissions
accounted for $534,000 of the
decrease due to lower mortgage production in the current quarter
compared to the first quarter of 2018.
Income Taxes
On a linked-quarter basis, income tax expense decreased by
$2.3 million, primarily due to a
decrease of $6.1 million in pre-tax
income during the quarter. The effective tax rate also decreased to
20.4% from 28.0%. Compared to the first quarter of 2018, income tax
expense decreased by $1.7
million.
OTHER NEWS
On March 15, 2019, Fidelity opened
a new branch in Macon, GA, which
brings the total number of retail branches to 70.
On May 6, 2019, Fidelity will hold
a special shareholders meeting to vote on a proposal to approve the
merger with Ameris Bancorp previously announced in December 2018.
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 2018 Annual Report filed on Form 10-K with
the Securities and Exchange Commission ("SEC"). Additional
information and other factors that could affect future financial
results are included in Fidelity's subsequent filings with the
SEC.
IMPORTANT ADDITIONAL INFORMATION
Ameris filed a registration statement on Form S-4 with the
SEC on March 22, 2019, to register
the shares of Ameris Common Stock
that will be issued to Fidelity's shareholders in connection
with the Merger. The registration statement, which became
effective on March 25, 2019, includes
a joint proxy statement/prospectus and other relevant materials in
connection with the transaction. BEFORE MAKING ANY VOTING OR
INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO
READ THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND
ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY BECAUSE
THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.
Investors and security holders may obtain free copies of these
documents and other documents filed with the SEC on its website
at http://www.sec.gov. Investors and security holders
may also obtain free copies of the documents filed with the SEC by
Fidelity on its website at www.FidelitySouthern.com and
by Ameris on its website
at http://www.AmerisBank.com.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. Before making any
voting or investment decision, investors and security holders of
Fidelity and Ameris are urged to read carefully the entire
registration statement and joint proxy statement/prospectus,
including any amendments thereto, because they contain important
information about the Merger. Free copies of these documents
may be obtained as described above.
Participants in the Solicitation
Fidelity and Ameris, and certain of their respective
directors, executive officers and other members of management and
employees, may be deemed to be participants in the solicitation of
proxies from Fidelity's shareholders and Ameris's shareholders in
respect of the Merger. Information regarding such persons who
may be deemed participants in the solicitation of proxies from
Fidelity's shareholders and Ameris's shareholders is included in
the joint proxy statement/prospectus for Fidelity's meeting of
shareholders and Ameris's meeting of shareholders, which was filed
by Ameris on Form S-4 on March 22,
2019 and declared effective on March
25, 2019. Information about Fidelity's directors and
executive officers and their ownership of Fidelity Common Stock can
also be found in Part III of Fidelity's 2018 Annual Report on Form
10-K filed on March 13, 2019, and
other documents subsequently filed by Fidelity with the SEC.
Information about Ameris's directors and executive officers and
their ownership of Ameris Common
Stock can also be found in Ameris's definitive proxy
statement filed in connection with its 2019 annual meeting of
shareholders on April 1, 2019, and
other documents subsequently filed by Ameris with the SEC.
Information regarding the interests of such participants is
included in the joint proxy statement/prospectus and other relevant
documents regarding the Merger filed with the SEC.
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
FINANCIAL
HIGHLIGHTS (UNAUDITED)
|
|
|
As of or for the
Quarter Ended
|
($ in thousands,
except per share data)
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
INCOME STATEMENT
DATA:
|
|
|
|
|
|
Interest
income
|
$
|
47,041
|
|
|
$
|
48,271
|
|
|
$
|
41,562
|
|
Interest
expense
|
8,899
|
|
|
8,713
|
|
|
6,794
|
|
Net interest
income
|
38,142
|
|
|
39,558
|
|
|
34,768
|
|
Provision for loan
losses
|
936
|
|
|
745
|
|
|
2,130
|
|
Noninterest
income
|
23,946
|
|
|
31,079
|
|
|
37,133
|
|
Noninterest
expense
|
53,475
|
|
|
56,113
|
|
|
54,742
|
|
Net income before
income taxes
|
7,677
|
|
|
13,779
|
|
|
15,029
|
|
Income tax
expense
|
1,564
|
|
|
3,855
|
|
|
3,262
|
|
Net income
|
6,113
|
|
|
9,924
|
|
|
11,767
|
|
PERFORMANCE:
|
|
|
|
|
|
Earnings per common
share - basic
|
$
|
0.22
|
|
|
$
|
0.36
|
|
|
$
|
0.44
|
|
Earnings per common
share - diluted
|
0.22
|
|
|
0.36
|
|
|
0.43
|
|
Total
revenues
|
62,088
|
|
|
70,637
|
|
|
71,901
|
|
Book value per common
share
|
16.61
|
|
|
16.36
|
|
|
15.19
|
|
Tangible book value
per common share(1)
|
16.22
|
|
|
15.95
|
|
|
14.75
|
|
Cash dividends paid
per common share
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
Dividend payout
ratio
|
54.55
|
%
|
|
33.33
|
%
|
|
27.27
|
%
|
Return on average
assets
|
0.53
|
%
|
|
0.82
|
%
|
|
1.03
|
%
|
Return on average
shareholders' equity
|
5.49
|
%
|
|
9.05
|
%
|
|
11.83
|
%
|
Equity to assets
ratio
|
9.58
|
%
|
|
9.43
|
%
|
|
8.54
|
%
|
Net interest
margin
|
3.56
|
%
|
|
3.54
|
%
|
|
3.29
|
%
|
END OF PERIOD
BALANCE SHEET SUMMARY:
|
|
|
|
|
|
Total
assets
|
$
|
4,789,945
|
|
|
$
|
4,733,796
|
|
|
$
|
4,811,659
|
|
Earning
assets
|
4,418,194
|
|
|
4,381,616
|
|
|
4,466,249
|
|
Loans, excluding
loans held-for-sale
|
3,676,805
|
|
|
3,685,478
|
|
|
3,714,308
|
|
Total
loans
|
3,940,528
|
|
|
3,924,780
|
|
|
4,139,608
|
|
Total
deposits
|
3,982,533
|
|
|
3,981,578
|
|
|
3,900,407
|
|
Shareholders'
equity
|
459,014
|
|
|
446,241
|
|
|
410,744
|
|
Assets serviced for
others
|
10,134,717
|
|
|
10,283,727
|
|
|
10,367,564
|
|
ASSET QUALITY
RATIOS:
|
|
|
|
|
|
Net charge-offs to
average loans
|
0.10
|
%
|
|
0.08
|
%
|
|
0.11
|
%
|
Allowance to
period-end loans
|
0.85
|
%
|
|
0.85
|
%
|
|
0.83
|
%
|
Adjusted allowance to
adjusted period end loans(1)
|
1.11
|
%
|
|
1.12
|
%
|
|
1.15
|
%
|
Nonperforming assets
to total loans, ORE and repossessions
|
2.11
|
%
|
|
1.93
|
%
|
|
2.04
|
%
|
Adjusted
nonperforming assets to loans, ORE and
repossessions(2)
|
0.92
|
%
|
|
0.92
|
%
|
|
1.14
|
%
|
Allowance to
nonperforming loans, ORE and repossessions
|
0.40x
|
|
|
0.44x
|
|
|
0.41x
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
Loans to total
deposits
|
92.32
|
%
|
|
92.56
|
%
|
|
95.23
|
%
|
Average total loans
to average earning assets
|
89.59
|
%
|
|
90.21
|
%
|
|
92.71
|
%
|
Noninterest income to
total revenue
|
38.57
|
%
|
|
44.00
|
%
|
|
51.64
|
%
|
Leverage
ratio
|
9.60
|
%
|
|
9.18
|
%
|
|
8.74
|
%
|
Common equity tier 1
capital
|
9.80
|
%
|
|
9.54
|
%
|
|
8.41
|
%
|
Tier 1 risk-based
capital
|
10.90
|
%
|
|
10.64
|
%
|
|
9.47
|
%
|
Total risk-based
capital
|
13.47
|
%
|
|
13.24
|
%
|
|
11.98
|
%
|
Mortgage loan
production
|
$
|
580,645
|
|
|
$
|
626,438
|
|
|
$
|
613,314
|
|
Total mortgage loan
sales
|
511,677
|
|
|
686,153
|
|
|
496,484
|
|
Indirect automobile
production
|
60,040
|
|
|
94,407
|
|
|
258,560
|
|
Total indirect
automobile sales
|
—
|
|
|
—
|
|
|
86,000
|
|
|
|
|
|
|
|
(1) Non-GAAP
financial measure. See non-GAAP reconciliation table for the
comparable GAAP.
|
(2) Excludes acquired
loans and net of government guarantees. See non-GAAP reconciliation
table for the comparable GAAP.
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
202,921
|
|
|
$
|
212,293
|
|
|
$
|
200,496
|
|
Investment securities
available-for-sale
|
|
285,518
|
|
|
251,602
|
|
|
124,576
|
|
Investment securities
held-to-maturity
|
|
19,925
|
|
|
20,126
|
|
|
21,342
|
|
Loans
held-for-sale
|
|
263,723
|
|
|
239,302
|
|
|
425,300
|
|
|
|
|
|
|
|
|
Loans
|
|
3,676,805
|
|
|
3,685,478
|
|
|
3,714,308
|
|
Allowance for loan
losses
|
|
(31,155)
|
|
|
(31,151)
|
|
|
(30,940)
|
|
Loans, net of
allowance for loan losses
|
|
3,645,650
|
|
|
3,654,327
|
|
|
3,683,368
|
|
|
|
|
|
|
|
|
Premises and
equipment, net
|
|
94,393
|
|
|
93,699
|
|
|
88,624
|
|
Other real estate,
net
|
|
8,504
|
|
|
8,290
|
|
|
7,668
|
|
Bank owned life
insurance
|
|
71,894
|
|
|
71,510
|
|
|
72,284
|
|
Servicing rights,
net
|
|
116,736
|
|
|
120,390
|
|
|
119,553
|
|
Other
assets
|
|
80,681
|
|
|
62,257
|
|
|
68,448
|
|
Total
assets
|
|
$
|
4,789,945
|
|
|
$
|
4,733,796
|
|
|
$
|
4,811,659
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
|
1,203,173
|
|
|
$
|
1,214,534
|
|
|
$
|
1,156,588
|
|
Interest-bearing
deposits
|
|
|
|
|
|
|
Demand
deposits
|
|
497,097
|
|
|
474,441
|
|
|
489,576
|
|
Money market and
savings deposits
|
|
1,334,686
|
|
|
1,365,275
|
|
|
1,375,016
|
|
Time
deposits
|
|
947,577
|
|
|
927,328
|
|
|
879,227
|
|
Total
deposits
|
|
3,982,533
|
|
|
3,981,578
|
|
|
3,900,407
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
162,453
|
|
|
139,760
|
|
|
337,795
|
|
Subordinated debt,
net
|
|
120,733
|
|
|
120,707
|
|
|
120,620
|
|
Other
liabilities
|
|
65,212
|
|
|
45,510
|
|
|
42,093
|
|
Total
liabilities
|
|
4,330,931
|
|
|
4,287,555
|
|
|
4,400,915
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Common
stock
|
|
238,330
|
|
|
230,841
|
|
|
219,234
|
|
Accumulated other
comprehensive income (loss), net
|
|
4,637
|
|
|
985
|
|
|
(631)
|
|
Retained
earnings
|
|
216,047
|
|
|
214,415
|
|
|
192,141
|
|
Total shareholders'
equity
|
|
459,014
|
|
|
446,241
|
|
|
410,744
|
|
Total liabilities and
shareholders' equity
|
|
$
|
4,789,945
|
|
|
$
|
4,733,796
|
|
|
$
|
4,811,659
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
For the Quarter
Ended
|
($ in thousands,
except per share data)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
INTEREST
INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
43,865
|
|
|
$
|
45,233
|
|
|
$
|
39,849
|
|
Investment
securities
|
|
2,444
|
|
|
2,142
|
|
|
1,175
|
|
Other
|
|
732
|
|
|
896
|
|
|
538
|
|
Total interest
income
|
|
47,041
|
|
|
48,271
|
|
|
41,562
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
6,266
|
|
|
6,058
|
|
|
4,313
|
|
Other
borrowings
|
|
935
|
|
|
990
|
|
|
910
|
|
Subordinated
debt
|
|
1,698
|
|
|
1,665
|
|
|
1,571
|
|
Total interest
expense
|
|
8,899
|
|
|
8,713
|
|
|
6,794
|
|
Net interest
income
|
|
38,142
|
|
|
39,558
|
|
|
34,768
|
|
Provision for loan
losses
|
|
936
|
|
|
745
|
|
|
2,130
|
|
Net interest
income after provision for loan losses
|
|
37,206
|
|
|
38,813
|
|
|
32,638
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,785
|
|
|
1,797
|
|
|
1,472
|
|
Other fees and
charges
|
|
2,309
|
|
|
2,374
|
|
|
2,235
|
|
Mortgage banking
activities
|
|
16,735
|
|
|
21,612
|
|
|
28,562
|
|
Indirect lending
activities
|
|
706
|
|
|
689
|
|
|
2,148
|
|
SBA lending
activities
|
|
1,324
|
|
|
3,440
|
|
|
1,157
|
|
Trust and wealth
management services
|
|
655
|
|
|
589
|
|
|
532
|
|
Other
|
|
432
|
|
|
578
|
|
|
1,027
|
|
Total noninterest
income
|
|
23,946
|
|
|
31,079
|
|
|
37,133
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
27,812
|
|
|
28,941
|
|
|
27,561
|
|
Commissions
|
|
6,972
|
|
|
7,858
|
|
|
7,506
|
|
Occupancy and
equipment
|
|
5,095
|
|
|
4,683
|
|
|
4,932
|
|
Professional and
other services
|
|
4,366
|
|
|
3,894
|
|
|
4,798
|
|
Other
|
|
9,230
|
|
|
10,737
|
|
|
9,945
|
|
Total noninterest
expense
|
|
53,475
|
|
|
56,113
|
|
|
54,742
|
|
Income before
income tax expense
|
|
7,677
|
|
|
13,779
|
|
|
15,029
|
|
Income tax
expense
|
|
1,564
|
|
|
3,855
|
|
|
3,262
|
|
NET
INCOME
|
|
$
|
6,113
|
|
|
$
|
9,924
|
|
|
$
|
11,767
|
|
|
|
|
|
|
|
|
EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.22
|
|
|
$
|
0.36
|
|
|
$
|
0.44
|
|
Diluted
|
|
$
|
0.22
|
|
|
$
|
0.36
|
|
|
$
|
0.43
|
|
Weighted average
common shares outstanding-basic
|
|
27,493
|
|
|
27,283
|
|
|
27,011
|
|
Weighted average
common shares outstanding-diluted
|
|
27,693
|
|
|
27,376
|
|
|
27,121
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
LOANS BY
CATEGORY
|
(UNAUDITED)
|
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Commercial
|
|
$
|
958,080
|
|
|
$
|
904,160
|
|
|
$
|
940,430
|
|
|
$
|
938,203
|
|
|
$
|
897,297
|
|
SBA
|
|
166,841
|
|
|
156,612
|
|
|
163,147
|
|
|
146,508
|
|
|
140,308
|
|
Total commercial and
SBA loans
|
|
1,124,921
|
|
|
1,060,772
|
|
|
1,103,577
|
|
|
1,084,711
|
|
|
1,037,605
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
loans
|
|
291,522
|
|
|
279,409
|
|
|
262,048
|
|
|
269,330
|
|
|
265,780
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
automobile
|
|
1,454,748
|
|
|
1,569,274
|
|
|
1,588,419
|
|
|
1,698,879
|
|
|
1,719,670
|
|
Installment loans and
personal lines of credit
|
|
25,246
|
|
|
28,170
|
|
|
29,260
|
|
|
31,807
|
|
|
28,716
|
|
Total consumer
loans
|
|
1,479,994
|
|
|
1,597,444
|
|
|
1,617,679
|
|
|
1,730,686
|
|
|
1,748,386
|
|
Residential
mortgage
|
|
625,431
|
|
|
594,095
|
|
|
571,081
|
|
|
555,636
|
|
|
512,673
|
|
Home equity lines of
credit
|
|
154,937
|
|
|
153,758
|
|
|
152,568
|
|
|
152,523
|
|
|
149,864
|
|
Total mortgage
loans
|
|
780,368
|
|
|
747,853
|
|
|
723,649
|
|
|
708,159
|
|
|
662,537
|
|
Loans
|
|
3,676,805
|
|
|
3,685,478
|
|
|
3,706,953
|
|
|
3,792,886
|
|
|
3,714,308
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-sale:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
252,238
|
|
|
225,342
|
|
|
328,090
|
|
|
399,630
|
|
|
355,515
|
|
SBA
|
|
11,485
|
|
|
13,960
|
|
|
18,229
|
|
|
20,056
|
|
|
19,785
|
|
Indirect
automobile
|
|
—
|
|
|
—
|
|
|
25,000
|
|
|
25,000
|
|
|
50,000
|
|
Total loans
held-for-sale
|
|
263,723
|
|
|
239,302
|
|
|
371,319
|
|
|
444,686
|
|
|
425,300
|
|
Total loans
|
|
$
|
3,940,528
|
|
|
$
|
3,924,780
|
|
|
$
|
4,078,272
|
|
|
$
|
4,237,572
|
|
|
$
|
4,139,608
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS BY
CATEGORY
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
($ in
thousands)
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
|
Average
Amount
|
|
Rate
|
Noninterest-bearing
demand deposits
|
$
|
1,185,199
|
|
|
—
|
%
|
|
$
|
1,239,403
|
|
|
—
|
%
|
|
$
|
1,244,640
|
|
|
—
|
%
|
|
$
|
1,172,298
|
|
|
—
|
%
|
|
$
|
1,120,562
|
|
|
—
|
%
|
Interest-bearing
demand deposits
|
462,980
|
|
|
0.12
|
%
|
|
458,350
|
|
|
0.12
|
%
|
|
463,292
|
|
|
0.13
|
%
|
|
489,051
|
|
|
0.14
|
%
|
|
461,614
|
|
|
0.14
|
%
|
Money market and
savings deposits
|
1,343,178
|
|
|
0.76
|
%
|
|
1,380,472
|
|
|
0.74
|
%
|
|
1,415,868
|
|
|
0.70
|
%
|
|
1,349,447
|
|
|
0.61
|
%
|
|
1,345,905
|
|
|
0.55
|
%
|
Time
deposits
|
934,110
|
|
|
1.57
|
%
|
|
925,913
|
|
|
1.43
|
%
|
|
918,668
|
|
|
1.30
|
%
|
|
906,133
|
|
|
1.16
|
%
|
|
901,394
|
|
|
1.04
|
%
|
Total average
deposits
|
$
|
3,925,467
|
|
|
0.65
|
%
|
|
$
|
4,004,138
|
|
|
0.60
|
%
|
|
$
|
4,042,468
|
|
|
0.55
|
%
|
|
$
|
3,916,929
|
|
|
0.49
|
%
|
|
$
|
3,829,475
|
|
|
0.46
|
%
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
NONPERFORMING AND
CLASSIFIED ASSETS
|
(UNAUDITED)
|
|
($ in
thousands)
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
(2)(6)
|
$
|
61,469
|
|
|
$
|
54,746
|
|
|
$
|
53,173
|
|
|
$
|
58,027
|
|
|
$
|
58,706
|
|
Loans past due 90
days or more and still accruing
|
6,464
|
|
|
6,746
|
|
|
8,858
|
|
|
8,278
|
|
|
7,728
|
|
Repossessions
|
1,363
|
|
|
1,696
|
|
|
1,271
|
|
|
1,303
|
|
|
1,853
|
|
Other real estate
(ORE)
|
8,504
|
|
|
8,290
|
|
|
8,031
|
|
|
6,834
|
|
|
7,668
|
|
Nonperforming
assets
|
$
|
77,800
|
|
|
$
|
71,478
|
|
|
$
|
71,333
|
|
|
$
|
74,442
|
|
|
$
|
75,955
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past
due
|
$
|
17,100
|
|
|
$
|
24,738
|
|
|
$
|
6,858
|
|
|
$
|
6,514
|
|
|
$
|
15,695
|
|
Loans 30-89 days past
due to loans
|
0.47
|
%
|
|
0.67
|
%
|
|
0.19
|
%
|
|
0.17
|
%
|
|
0.42
|
%
|
Loans past due 90
days or more and still accruing to loans
|
0.18
|
%
|
|
0.18
|
%
|
|
0.24
|
%
|
|
0.22
|
%
|
|
0.21
|
%
|
Nonperforming loans
as a % of loans
|
1.85
|
%
|
|
1.67
|
%
|
|
1.67
|
%
|
|
1.75
|
%
|
|
1.79
|
%
|
Nonperforming assets
to loans, ORE, and repossessions
|
2.11
|
%
|
|
1.93
|
%
|
|
1.92
|
%
|
|
1.96
|
%
|
|
2.04
|
%
|
Adjusted
nonperforming assets to adjusted loans, ORE and
repossessions(8)
|
0.92
|
%
|
|
0.92
|
%
|
|
0.92
|
%
|
|
0.99
|
%
|
|
1.14
|
%
|
Nonperforming assets
to total assets
|
1.62
|
%
|
|
1.51
|
%
|
|
1.48
|
%
|
|
1.52
|
%
|
|
1.58
|
%
|
Adjusted
nonperforming assets to total
assets(8)
|
0.68
|
%
|
|
0.69
|
%
|
|
0.68
|
%
|
|
0.73
|
%
|
|
0.84
|
%
|
Classified Asset
Ratio(4)
|
19.67
|
%
|
|
19.95
|
%
|
|
19.60
|
%
|
|
21.84
|
%
|
|
21.70
|
%
|
ALL to nonperforming
loans
|
45.86
|
%
|
|
50.66
|
%
|
|
50.23
|
%
|
|
47.69
|
%
|
|
46.57
|
%
|
Net charge-offs,
annualized to average loans
|
0.10
|
%
|
|
0.08
|
%
|
|
0.09
|
%
|
|
0.17
|
%
|
|
0.11
|
%
|
ALL as a % of
loans
|
0.85
|
%
|
|
0.85
|
%
|
|
0.84
|
%
|
|
0.83
|
%
|
|
0.83
|
%
|
Adjusted ALL as a %
of adjusted loans(7)
|
1.11
|
%
|
|
1.12
|
%
|
|
1.14
|
%
|
|
1.16
|
%
|
|
1.15
|
%
|
ALL as a % of loans,
excluding acquired loans(5)
|
0.88
|
%
|
|
0.88
|
%
|
|
0.88
|
%
|
|
0.87
|
%
|
|
0.88
|
%
|
|
|
|
|
|
|
|
|
|
|
CLASSIFIED
ASSETS
|
|
|
|
|
|
|
|
|
|
Classified
loans(1)
|
$
|
84,382
|
|
|
$
|
82,786
|
|
|
$
|
80,176
|
|
|
$
|
87,688
|
|
|
$
|
83,867
|
|
ORE and
repossessions
|
9,867
|
|
|
9,986
|
|
|
9,302
|
|
|
8,137
|
|
|
9,521
|
|
Total classified
assets(3)
|
$
|
94,249
|
|
|
$
|
92,772
|
|
|
$
|
89,478
|
|
|
$
|
95,825
|
|
|
$
|
93,388
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amount of SBA guarantee
included in classified loans
|
$
|
5,085
|
|
|
$
|
3,561
|
|
|
$
|
5,254
|
|
|
$
|
4,870
|
|
|
$
|
2,879
|
|
(2) Amount of repurchased
government-guaranteed loans, primarily
residential mortgage loans, included in nonaccrual
loans
|
$
|
35,460
|
|
|
$
|
29,057
|
|
|
$
|
27,218
|
|
|
$
|
27,220
|
|
|
$
|
26,091
|
|
(3) Classified assets
include loans having a risk rating of substandard or worse, both
accrual and nonaccrual, repossessions and ORE, net of 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 government guarantees. See
non-GAAP reconciliation table for a reconciliation to the
comparable GAAP measure
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
INCOME FROM
INDIRECT LENDING ACTIVITIES
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
(in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Loan servicing
revenue
|
|
$
|
1,172
|
|
|
$
|
1,642
|
|
|
$
|
1,581
|
|
|
$
|
1,690
|
|
|
$
|
1,769
|
|
Gain on sale of
loans
|
|
—
|
|
|
—
|
|
|
53
|
|
|
22
|
|
|
442
|
|
Gain on
capitalization of servicing rights
|
|
—
|
|
|
—
|
|
|
124
|
|
|
196
|
|
|
569
|
|
Ancillary loan
servicing revenue
|
|
152
|
|
|
170
|
|
|
162
|
|
|
166
|
|
|
183
|
|
Gross indirect lending revenue
|
|
1,324
|
|
|
1,812
|
|
|
1,920
|
|
|
2,074
|
|
|
2,963
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
servicing rights, net
|
|
(618)
|
|
|
(1,123)
|
|
|
(800)
|
|
|
(804)
|
|
|
(815)
|
|
Total income from
indirect lending activities
|
|
$
|
706
|
|
|
$
|
689
|
|
|
$
|
1,120
|
|
|
$
|
1,270
|
|
|
$
|
2,148
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
INDIRECT LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Average loans
outstanding(1)
|
|
$
|
1,516,484
|
|
|
$
|
1,602,826
|
|
|
$
|
1,673,014
|
|
|
$
|
1,771,665
|
|
|
$
|
1,784,982
|
|
Loans serviced for
others
|
|
$
|
622,859
|
|
|
$
|
705,555
|
|
|
$
|
838,574
|
|
|
$
|
932,915
|
|
|
$
|
1,018,743
|
|
Past due
loans:
|
|
|
|
|
|
|
|
|
|
|
Amount 30+ days past
due
|
|
2,480
|
|
|
3,197
|
|
|
2,659
|
|
|
2,407
|
|
|
2,257
|
|
Number 30+ days past
due
|
|
241
|
|
|
299
|
|
|
258
|
|
|
217
|
|
|
197
|
|
30+ day performing
delinquency rate(2)
|
|
0.17
|
%
|
|
0.20
|
%
|
|
0.16
|
%
|
|
0.14
|
%
|
|
0.13
|
%
|
Nonperforming
loans
|
|
1,204
|
|
|
1,324
|
|
|
1,490
|
|
|
1,526
|
|
|
1,539
|
|
Nonperforming loans
as a percentage of period end loans(2)
|
|
0.08
|
%
|
|
0.08
|
%
|
|
0.09
|
%
|
|
0.09
|
%
|
|
0.09
|
%
|
Net
charge-offs
|
|
$
|
1,066
|
|
|
$
|
779
|
|
|
$
|
1,069
|
|
|
$
|
864
|
|
|
$
|
1,147
|
|
Net charge-off
rate(3)
|
|
0.29
|
%
|
|
0.19
|
%
|
|
0.26
|
%
|
|
0.20
|
%
|
|
0.27
|
%
|
Number of vehicles
repossessed during the period
|
|
142
|
|
|
126
|
|
|
139
|
|
|
132
|
|
|
140
|
|
Quarterly production
weighted average beacon score
|
|
766
|
|
|
773
|
|
|
769
|
|
|
779
|
|
|
781
|
|
|
|
(1) Includes
held-for-sale
|
(2) Calculated
by dividing loan category as of the end of the period by period-end
loans including held for sale for the specified loan
portfolio
|
(3) Calculated
by dividing annualized net charge-offs for the period by average
loans held for investment during the period for the specified loan
category
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
INDIRECT LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Production by
state:
|
|
|
|
|
|
|
|
|
|
|
|
Alabama
(2)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
9,920
|
|
|
$
|
12,239
|
|
|
Arkansas
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,488
|
|
|
20,322
|
|
|
North Carolina
(2)
|
|
—
|
|
|
—
|
|
|
97
|
|
|
15,580
|
|
|
23,383
|
|
|
South Carolina
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,065
|
|
|
12,322
|
|
|
Florida
|
|
35,485
|
|
|
60,006
|
|
|
51,620
|
|
|
52,645
|
|
|
65,786
|
|
|
Georgia
|
|
24,555
|
|
|
34,401
|
|
|
35,034
|
|
|
38,322
|
|
|
38,288
|
|
|
Mississippi
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,605
|
|
|
24,785
|
|
|
Tennessee
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,098
|
|
|
13,509
|
|
|
Virginia
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,620
|
|
|
Louisiana
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,952
|
|
|
44,306
|
|
|
|
Total production by
state
|
|
$
|
60,040
|
|
|
$
|
94,407
|
|
|
$
|
86,801
|
|
|
$
|
183,675
|
|
|
$
|
258,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,614
|
|
|
$
|
29,275
|
|
|
$
|
86,000
|
|
Portfolio yield
(1)
|
|
3.43
|
%
|
|
3.46
|
%
|
|
3.08
|
%
|
|
3.02
|
%
|
|
2.98
|
%
|
|
|
(1)
|
Includes
held-for-sale
|
(2)
|
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)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Marketing gain,
net
|
|
$
|
15,205
|
|
|
$
|
14,129
|
|
|
$
|
16,427
|
|
|
$
|
20,330
|
|
|
$
|
17,575
|
|
Origination points
and fees
|
|
3,572
|
|
|
4,227
|
|
|
4,707
|
|
|
5,495
|
|
|
3,647
|
|
Loan servicing
revenue
|
|
6,298
|
|
|
6,326
|
|
|
6,360
|
|
|
6,206
|
|
|
6,221
|
|
Gross mortgage
revenue
|
|
$
|
25,075
|
|
|
$
|
24,682
|
|
|
$
|
27,494
|
|
|
$
|
32,031
|
|
|
$
|
27,443
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
MSR
amortization
|
|
(3,504)
|
|
|
(3,116)
|
|
|
(3,369)
|
|
|
(3,331)
|
|
|
(3,426)
|
|
MSR
(impairment)/recovery, net
|
|
(4,836)
|
|
|
46
|
|
|
(605)
|
|
|
683
|
|
|
4,545
|
|
Total income from
mortgage
banking activities
|
|
$
|
16,735
|
|
|
$
|
21,612
|
|
|
$
|
23,520
|
|
|
$
|
29,383
|
|
|
$
|
28,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
ANALYSIS OF
MORTGAGE LENDING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Production by
region:
|
|
|
|
|
|
|
|
|
|
|
|
Georgia
|
|
$
|
326,194
|
|
|
$
|
385,672
|
|
|
$
|
436,889
|
|
|
$
|
545,951
|
|
|
$
|
368,739
|
|
|
Florida
|
|
99,054
|
|
|
87,360
|
|
|
120,230
|
|
|
136,990
|
|
|
109,034
|
|
|
Alabama/Tennessee
|
|
—
|
|
|
992
|
|
|
748
|
|
|
2,433
|
|
|
2,709
|
|
|
Virginia/Maryland
|
|
94,601
|
|
|
95,226
|
|
|
130,728
|
|
|
148,970
|
|
|
91,842
|
|
|
North and South
Carolina
|
|
60,796
|
|
|
57,188
|
|
|
59,449
|
|
|
74,410
|
|
|
40,990
|
|
|
Total production by
region
|
|
$
|
580,645
|
|
|
$
|
626,438
|
|
|
$
|
748,044
|
|
|
$
|
908,754
|
|
|
$
|
613,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% for
purchases
|
|
89.3
|
%
|
|
90.2
|
%
|
|
90.6
|
%
|
|
91.6
|
%
|
|
85.1
|
%
|
|
% for refinance
loans
|
|
10.7
|
%
|
|
9.8
|
%
|
|
9.4
|
%
|
|
8.4
|
%
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Production:
|
|
$
|
54,977
|
|
|
$
|
59,191
|
|
|
$
|
56,108
|
|
|
$
|
75,990
|
|
|
$
|
44,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded loan type
(UPB):
|
|
|
|
|
|
|
|
|
|
|
|
Conventional
|
|
63.0
|
%
|
|
62.8
|
%
|
|
64.3
|
%
|
|
63.8
|
%
|
|
65.9
|
%
|
|
FHA/VA/USDA
|
|
21.9
|
%
|
|
20.4
|
%
|
|
21.5
|
%
|
|
20.7
|
%
|
|
22.1
|
%
|
|
Jumbo
|
|
15.1
|
%
|
|
16.8
|
%
|
|
14.2
|
%
|
|
15.5
|
%
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross pipeline of
locked loans to be
sold (UPB)
|
|
$
|
357,742
|
|
|
$
|
225,698
|
|
|
$
|
289,065
|
|
|
$
|
354,735
|
|
|
$
|
382,386
|
|
Loans held for sale
(UPB)
|
|
$
|
244,130
|
|
|
$
|
218,494
|
|
|
$
|
322,722
|
|
|
$
|
389,858
|
|
|
$
|
348,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan sales
(UPB)
|
|
$
|
511,677
|
|
|
$
|
686,153
|
|
|
$
|
771,058
|
|
|
$
|
800,084
|
|
|
$
|
496,484
|
|
|
Conventional
|
|
69.2
|
%
|
|
67.5
|
%
|
|
66.6
|
%
|
|
70.7
|
%
|
|
69.1
|
%
|
|
FHA/VA/USDA
|
|
23.2
|
%
|
|
19.6
|
%
|
|
24.5
|
%
|
|
21.3
|
%
|
|
27.2
|
%
|
|
Jumbo
|
|
7.6
|
%
|
|
12.9
|
%
|
|
8.9
|
%
|
|
8.0
|
%
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
outstanding(1)
|
|
$
|
804,407
|
|
|
$
|
839,430
|
|
|
$
|
877,890
|
|
|
$
|
913,430
|
|
|
$
|
725,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
held-for-sale
|
|
|
|
|
|
|
|
|
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
THIRD PARTY
MORTGAGE LOAN SERVICING
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
($ in
thousands)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
Loans serviced for
others (UPB)(1)
|
|
$
|
9,243,136
|
|
|
$
|
9,009,506
|
|
|
$
|
8,687,984
|
|
|
$
|
9,450,326
|
|
|
$
|
9,097,869
|
|
Average loans
serviced for others (UPB)(1)
|
|
$
|
9,198,871
|
|
|
$
|
9,407,723
|
|
|
$
|
9,279,843
|
|
|
$
|
9,244,175
|
|
|
$
|
9,038,568
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR book value, net
of amortization
|
|
$
|
115,207
|
|
|
$
|
113,368
|
|
|
$
|
108,876
|
|
|
$
|
119,372
|
|
|
$
|
113,217
|
|
MSR
impairment
|
|
(6,790)
|
|
|
(1,954)
|
|
|
(2,000)
|
|
|
(4,590)
|
|
|
(5,274)
|
|
MSR net carrying
value
|
|
$
|
108,417
|
|
|
$
|
111,414
|
|
|
$
|
106,876
|
|
|
$
|
114,782
|
|
|
$
|
107,943
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR carrying value as
a % of period end UPB
|
|
1.17
|
%
|
|
1.24
|
%
|
|
1.23
|
%
|
|
1.21
|
%
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency % loans
serviced for others
|
|
1.23
|
%
|
|
1.30
|
%
|
|
1.28
|
%
|
|
1.28
|
%
|
|
1.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR revenue
multiple(2)
|
|
4.28
|
|
|
4.6
|
|
|
4.49
|
|
|
4.52
|
|
|
4.31
|
|
(1) Balances for September
30, 2018 exclude the UPB of loans temporarily sub-serviced as a
result of the August 30, 2018 MSRs sale. Servicing transferred to
the Purchaser on October
1, 2018 and October 16, 2018.
|
(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
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
($ in
thousands)
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
939,337
|
|
|
5.01
|
%
|
|
$
|
932,523
|
|
|
4.95
|
%
|
|
$
|
864,992
|
|
|
4.83
|
%
|
SBA
|
173,003
|
|
|
7.98
|
%
|
|
170,162
|
|
|
7.97
|
%
|
|
153,732
|
|
|
8.08
|
%
|
Construction
|
282,827
|
|
|
7.09
|
%
|
|
272,481
|
|
|
6.95
|
%
|
|
258,072
|
|
|
6.54
|
%
|
Indirect
automobile
|
1,516,483
|
|
|
3.43
|
%
|
|
1,602,826
|
|
|
3.46
|
%
|
|
1,784,982
|
|
|
2.98
|
%
|
Installment
loans and personal lines of credit
|
29,410
|
|
|
5.25
|
%
|
|
34,263
|
|
|
2.87
|
%
|
|
41,468
|
|
|
2.95
|
%
|
Residential
mortgage
|
803,697
|
|
|
4.32
|
%
|
|
838,691
|
|
|
4.23
|
%
|
|
724,684
|
|
|
3.99
|
%
|
Home equity
lines of credit
|
154,862
|
|
|
5.69
|
%
|
|
154,175
|
|
|
5.83
|
%
|
|
149,398
|
|
|
4.92
|
%
|
Total loans, net
of unearned income (1)
|
3,899,619
|
|
|
4.57
|
%
|
|
4,005,121
|
|
|
4.48
|
%
|
|
3,977,328
|
|
|
4.07
|
%
|
Investment securities
(1)
|
299,712
|
|
|
3.31
|
%
|
|
259,152
|
|
|
3.31
|
%
|
|
155,920
|
|
|
3.11
|
%
|
Other earning
assets
|
153,393
|
|
|
1.94
|
%
|
|
175,495
|
|
|
2.02
|
%
|
|
156,751
|
|
|
1.39
|
%
|
Total
interest-earning assets
|
4,352,724
|
|
|
4.39
|
%
|
|
4,439,768
|
|
|
4.32
|
%
|
|
4,289,999
|
|
|
3.93
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
41,867
|
|
|
|
|
37,672
|
|
|
|
|
36,370
|
|
|
|
Allowance for loan
losses
|
(31,117)
|
|
|
|
|
(31,278)
|
|
|
|
|
(30,002)
|
|
|
|
Premises and
equipment, net
|
94,594
|
|
|
|
|
92,050
|
|
|
|
|
88,732
|
|
|
|
Other real
estate
|
8,317
|
|
|
|
|
8,079
|
|
|
|
|
7,606
|
|
|
|
Other
assets
|
248,788
|
|
|
|
|
238,042
|
|
|
|
|
233,677
|
|
|
|
Total
noninterest-earning assets
|
362,449
|
|
|
|
|
344,565
|
|
|
|
|
336,383
|
|
|
|
Total
assets
|
$
|
4,715,173
|
|
|
|
|
$
|
4,784,333
|
|
|
|
|
$
|
4,626,382
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
|
462,980
|
|
|
0.12
|
%
|
|
$
|
458,350
|
|
|
0.12
|
%
|
|
$
|
461,614
|
|
|
0.14
|
%
|
Money market and
savings deposits
|
1,343,178
|
|
|
0.76
|
%
|
|
1,380,472
|
|
|
0.74
|
%
|
|
1,345,905
|
|
|
0.55
|
%
|
Time
deposits
|
934,110
|
|
|
1.57
|
%
|
|
925,913
|
|
|
1.43
|
%
|
|
901,394
|
|
|
1.04
|
%
|
Total
interest-bearing deposits
|
2,740,268
|
|
|
0.93
|
%
|
|
2,764,735
|
|
|
0.87
|
%
|
|
2,708,913
|
|
|
0.65
|
%
|
Other short-term
borrowings
|
161,107
|
|
|
2.35
|
%
|
|
177,955
|
|
|
2.21
|
%
|
|
235,519
|
|
|
1.57
|
%
|
Subordinated
debt
|
120,720
|
|
|
5.70
|
%
|
|
120,694
|
|
|
5.47
|
%
|
|
120,604
|
|
|
5.29
|
%
|
Total
interest-bearing liabilities
|
3,022,095
|
|
|
1.19
|
%
|
|
3,063,384
|
|
|
1.13
|
%
|
|
3,065,036
|
|
|
0.90
|
%
|
Noninterest-bearing liabilities and shareholders'
equity:
|
|
|
|
|
|
|
Demand
deposits
|
1,185,199
|
|
|
|
|
1,239,403
|
|
|
|
|
1,120,562
|
|
|
|
Other
liabilities
|
56,181
|
|
|
|
|
46,638
|
|
|
|
|
37,336
|
|
|
|
Shareholders'
equity
|
451,698
|
|
|
|
|
434,908
|
|
|
|
|
403,448
|
|
|
|
Total
noninterest-bearing liabilities and
shareholders' equity
|
1,693,078
|
|
|
|
|
1,720,949
|
|
|
|
|
1,561,346
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,715,173
|
|
|
|
|
$
|
4,784,333
|
|
|
|
|
$
|
4,626,382
|
|
|
|
Net interest
spread
|
|
|
3.20
|
%
|
|
|
|
3.19
|
%
|
|
|
|
3.03
|
%
|
Net interest
margin
|
|
|
3.56
|
%
|
|
|
|
3.54
|
%
|
|
|
|
3.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income
includes the effect of taxable-equivalent adjustments using a 21%
tax rate.
|
FIDELITY SOUTHERN
CORPORATION AND SUBSIDIARIES
|
GAAP TO NON-GAAP
RATIO RECONCILIATION
|
(UNAUDITED)
|
|
|
For the Quarter
Ended
|
($ in
thousands)
|
March 31,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of nonperforming assets to adjusted nonperforming
assets:
|
Nonperforming assets
(GAAP)
|
$
|
77,800
|
|
|
$
|
71,478
|
|
|
$
|
71,333
|
|
|
$
|
74,442
|
|
|
$
|
75,955
|
|
Less: repurchased
government-guaranteed mortgage loans included on
nonaccrual
|
(35,460)
|
|
|
(29,057)
|
|
|
(27,218)
|
|
|
(27,220)
|
|
|
(26,091)
|
|
Less: SBA guaranteed
loans included on nonaccrual
|
(4,000)
|
|
|
(3,561)
|
|
|
(4,049)
|
|
|
(3,639)
|
|
|
(1,541)
|
|
Less: Nonaccrual
acquired loans
|
(5,573)
|
|
|
(6,120)
|
|
|
(7,388)
|
|
|
(7,648)
|
|
|
(7,890)
|
|
Adjusted
nonperforming assets, excluding acquired loans and
government-guaranteed loans (non-GAAP)
|
$
|
32,767
|
|
|
$
|
32,740
|
|
|
$
|
32,678
|
|
|
$
|
35,935
|
|
|
$
|
40,433
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of total loans, ORE and repossessions to total loans, ORE and
repossessions, less acquired loans:
|
Loans, excluding
Loans Held-for-Sale
|
$
|
3,676,805
|
|
|
$
|
3,685,478
|
|
|
$
|
3,706,953
|
|
|
$
|
3,792,886
|
|
|
$
|
3,714,308
|
|
Add: ORE
|
8,504
|
|
|
8,290
|
|
|
8,031
|
|
|
6,834
|
|
|
7,668
|
|
Add:
repossessions
|
1,363
|
|
|
1,696
|
|
|
1,271
|
|
|
1,303
|
|
|
1,853
|
|
Total loans, ORE, and
repossessions (GAAP)
|
3,686,672
|
|
|
3,695,464
|
|
|
3,716,255
|
|
|
3,801,023
|
|
|
3,723,829
|
|
Less: acquired
loans
|
(132,984)
|
|
|
(141,198)
|
|
|
(150,763)
|
|
|
(165,303)
|
|
|
(178,496)
|
|
Adjusted loans, ORE,
and repossessions, less acquired loans (non-GAAP)
|
$
|
3,553,688
|
|
|
$
|
3,554,266
|
|
|
$
|
3,565,492
|
|
|
$
|
3,635,720
|
|
|
$
|
3,545,333
|
|
Nonperforming assets
to loans, ORE, and repossessions (GAAP)
|
2.11
|
%
|
|
1.93
|
%
|
|
1.92
|
%
|
|
1.96
|
%
|
|
2.04
|
%
|
Adjusted
nonperforming assets to adjusted loans, ORE, and repossessions
(non-GAAP)
|
0.92
|
%
|
|
0.92
|
%
|
|
0.92
|
%
|
|
0.99
|
%
|
|
1.14
|
%
|
Nonperforming assets
to total assets (GAAP)
|
1.62
|
%
|
|
1.51
|
%
|
|
1.48
|
%
|
|
1.52
|
%
|
|
1.58
|
%
|
Adjusted
nonperforming assets to total assets (non-GAAP)
|
0.68
|
%
|
|
0.69
|
%
|
|
0.68
|
%
|
|
0.73
|
%
|
|
0.84
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of allowance to adjusted allowance:
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses (GAAP)
|
$
|
31,155
|
|
|
$
|
31,151
|
|
|
$
|
31,157
|
|
|
$
|
31,623
|
|
|
$
|
30,940
|
|
Less: allowance
allocated to indirect auto loans
|
(7,652)
|
|
|
(8,669)
|
|
|
(8,556)
|
|
|
(9,210)
|
|
|
(9,888)
|
|
Less: allowance
allocated to acquired loans
|
(284)
|
|
|
(284)
|
|
|
(134)
|
|
|
(134)
|
|
|
(134)
|
|
Adjusted allowance
for loan losses (non-GAAP)
|
$
|
23,219
|
|
|
$
|
22,198
|
|
|
$
|
22,467
|
|
|
$
|
22,279
|
|
|
$
|
20,918
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of period end loans to adjusted period end
loans:
|
Loans, excluding
Loans Held-for-Sale
|
$
|
3,676,805
|
|
|
$
|
3,685,478
|
|
|
$
|
3,706,953
|
|
|
$
|
3,792,886
|
|
|
$
|
3,714,308
|
|
Less: indirect auto
loans
|
(1,454,748)
|
|
|
(1,569,274)
|
|
|
(1,588,419)
|
|
|
(1,698,879)
|
|
|
(1,719,670)
|
|
Less: acquired
loans
|
(132,984)
|
|
|
(141,198)
|
|
|
(150,763)
|
|
|
(165,303)
|
|
|
(178,496)
|
|
Adjusted total loans
(non-GAAP)
|
$
|
2,089,073
|
|
|
$
|
1,975,006
|
|
|
$
|
1,967,771
|
|
|
$
|
1,928,704
|
|
|
$
|
1,816,142
|
|
Allowance to total
loans (GAAP)
|
0.85
|
%
|
|
0.85
|
%
|
|
0.84
|
%
|
|
0.83
|
%
|
|
0.83
|
%
|
Adjusted allowance to
adjusted total loans (non-GAAP)
|
1.11
|
%
|
|
1.12
|
%
|
|
1.14
|
%
|
|
1.16
|
%
|
|
1.15
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of book value per common share to tangible book value per common
share:
|
Shareholders'
equity
|
$
|
459,014
|
|
|
$
|
446,241
|
|
|
$
|
432,098
|
|
|
420,962
|
|
|
$
|
410,744
|
|
Less: intangible
assets
|
(10,933)
|
|
|
(11,197)
|
|
|
(11,474)
|
|
|
(11,751)
|
|
|
(12,028)
|
|
Tangible
shareholders' equity
|
$
|
448,081
|
|
|
$
|
435,044
|
|
|
$
|
420,624
|
|
|
$
|
409,211
|
|
|
$
|
398,716
|
|
End of period common
shares outstanding
|
27,629,860
|
|
|
27,279,729
|
|
|
27,260,681
|
|
|
27,191,787
|
|
|
27,034,255
|
|
Book value per common
share (GAAP)
|
$
|
16.61
|
|
|
$
|
16.36
|
|
|
$
|
15.85
|
|
|
$
|
15.48
|
|
|
$
|
15.19
|
|
Tangible book value
per common share (non-GAAP)
|
16.22
|
|
|
15.95
|
|
|
|
15.43
|
|
|
|
15.05
|
|
|
14.75
|
|
Contacts:
|
Martha Fleming,
Charles D. Christy
|
|
Fidelity Southern
Corporation (404) 240-1504
|
View original
content:http://www.prnewswire.com/news-releases/fidelity-southern-corporation-reports-earnings-for-first-quarter-of-6-1-million-300834765.html
SOURCE Fidelity Southern Corporation