Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FIDELITY SOUTHERN CORP | c07198e8vk.htm |
| EX-99.3 - EXHIBIT 99.3 - FIDELITY SOUTHERN CORP | c07198exv99w3.htm |
| EX-99.2 - EXHIBIT 99.2 - FIDELITY SOUTHERN CORP | c07198exv99w2.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
| Contacts: | Martha Fleming, Steve Brolly Fidelity Southern Corporation (404) 240-1504 |
FIDELITY SOUTHERN CORPORATION
EARNS NET INCOME OF $2.1 MILLION FOR THIRD QUARTER,
FIVE CONSECUTIVE QUARTERS OF NET INCOME,
TAKES MARKET SHARE
EARNS NET INCOME OF $2.1 MILLION FOR THIRD QUARTER,
FIVE CONSECUTIVE QUARTERS OF NET INCOME,
TAKES MARKET SHARE
ATLANTA,
GA (October 21, 2010) – Fidelity Southern Corporation (“Fidelity” or the “Company”)
(NASDAQ:LION), holding company for Fidelity Bank (the “Bank”), reported net income of $2.1 million
for the third quarter of 2010 compared to net income of $398,000 for the third quarter of 2009.
After accounting for the TARP preferred dividend, basic and diluted income per share for the third
quarter of 2010 was $.12 and $.10, respectively, compared to a basic and diluted loss per share of
$.04 in the third quarter of 2009. Net income for the first nine months of 2010 was $7.1 million
compared to net loss of $5.8 million for the same period in 2009. Basic and diluted income per
share for the first nine months of 2010 was $.44 and $.39, respectively, compared to basic and
diluted loss per share of $.81 for the same period in 2009.
| For the quarter ended | ||||||||||||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
Net Income |
$ | 2,081 | $ | 4,869 | $ | 195 | $ | 1,928 | $ | 398 | ||||||||||
Income Tax Expense (Benefit) |
913 | 2,647 | (93 | ) | 920 | (346 | ) | |||||||||||||
Provision For Loan Losses |
5,025 | 1,150 | 3,975 | 7,500 | 4,500 | |||||||||||||||
Write-down of ORE |
698 | 1,615 | 1,367 | 731 | 1,159 | |||||||||||||||
Other cost of ORE Operations |
713 | 743 | 802 | 1,299 | 981 | |||||||||||||||
Pre-Tax, Pre-Credit Related Earnings |
9,430 | 11,024 | 6,246 | 12,378 | 6,692 | |||||||||||||||
Less Security Gains |
— | (2,291 | ) | — | (4,789 | ) | (519 | ) | ||||||||||||
Core Operating Earnings (1) |
$ | 9,430 | $ | 8,733 | $ | 6,246 | $ | 7,589 | $ | 6,173 | ||||||||||
| (1) | The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove income taxes, provision for loan losses, cost of operation of ORE, and security gains because we believe that helps show a view of more normalized net revenues. The measure allows better comparability with prior periods, as well as with peers in the industry who also provide a similar presentation. |
“The very real improvement in our core earnings year over year reflects that clean-up of
problem loans is essentially done.” said James B. Miller, Jr. Chairman. “Our customers in real
estate are, of course, suffering cash flow problems and now fatigue even as the end to the downturn
is in sight. Earnings also improved because the economy is improving. Lending volume is up
dramatically in the indirect automobile, commercial business, mortgage and SBA lending groups.
With 60 employees added in 2010 alone, we are taking market share in loans and deposits, as our
TARP enabled growth strategy, begun in December 2008, broadens and strengthens our franchise.”
Fidelity Southern Corporation
Third Quarter Earnings Release
October 21, 2010
Third Quarter Earnings Release
October 21, 2010
ASSET QUALITY
Net charge-offs were $3.8 million in the third quarter of 2010 compared to $5.6 million in the
third quarter of 2009. Year to date, net charge-offs decreased $7.5 million for the first nine
months of 2010 to $11.9 million compared to $19.4 million for the same period in 2009. Since
January 1, 2008, through September 30, 2010, cumulative net charge-offs were $63.8 million compared
to an aggregate provision for loan losses of $75.5 million. During this period, for every dollar
of net charge-offs realized, the Company recorded $1.18 in provision. The ratio of net charge-offs
to average loans outstanding was 1.22% for the nine months ended September 30, 2010, compared to
1.95% for the same period in 2009. Fidelity reported an allowance for loan losses of $28.3 million
or 2.09% of total loans at September 30, 2010, compared to $30.1 million or 2.33% at December 31,
2009, and $35.5 million or 2.71% of total loans at September 30, 2009. The decrease was a result
of improving nonaccrual loans and nonperforming assets trends.
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
| (In Millions) | ||||||||||||||||||||
NPAs, includes SBA loans |
$ | 82.8 | $ | 82.1 | $ | 88.4 | $ | 92.9 | $ | 106.3 | ||||||||||
Classified Assets |
$ | 114.8 | $ | 117.8 | $ | 120.1 | $ | 128.7 | $ | 131.9 | ||||||||||
Less SBA guarantees |
6.2 | 6.3 | 7.0 | 4.5 | 2.3 | |||||||||||||||
Net Classified Assets |
$ | 108.6 | $ | 111.5 | $ | 113.1 | $ | 124.2 | $ | 129.6 | ||||||||||
Nonperforming Assets (“NPAs”) include nonperforming loans, repossessions and other real estate
(“ORE”) and totaled $82.8 million at the end of the third quarter of 2010, a decrease of $10.1
million from December 31, 2009, and a decrease of $23.5 million from September 30, 2009.
Classified Assets include NPAs and other substandard performing assets.
Nonperforming residential construction and development loans at September 30, 2010, included
financing for 93 houses and 374 lots and land totaling $41.2 million. During the third quarter,
$3.5 million of nonperforming construction loans were paid down by our customers while $3.3 million
in construction loans were moved to nonperforming.
During the third quarter of 2010, $2.9 million of ORE assets were sold while $2.3 million were
added to ORE. ORE consists of 50 houses, representing 27.0% of the total ORE balance, 329 lots and
6 commercial properties. ORE decreased $528,000 to $21.3 million at September 30, 2010, compared
to $21.8 million at December 31, 2009. ORE was $21.2 million at September 30, 2009.
2
Fidelity Southern Corporation
Third Quarter Earnings Release
October 21, 2010
Third Quarter Earnings Release
October 21, 2010
The provision for loan losses for the third quarter of 2010 was $5.0 million compared to $4.5
million for the same period in 2009 and $1.2 million in the second quarter 2010. The provision for
loan losses for the first nine months of 2010 was $10.2 million compared to $21.3 million for the
same period in 2009 as a result of improving asset quality during the period.
DEPOSITS
Total deposits at September 30, 2010, of $1.561 billion reflect the improvement in the deposit
mix brought about by the Bank’s strategy to increase core deposits. The Bank continued to
aggressively market its non-certificate of deposit products in 2010. As a result, demand, money
market and savings accounts increased $132.0 million or 15.5% at September 30, 2010, compared to
December 31, 2009. The reduction in the interest rate paid on deposit accounts during the period
demonstrates the Company’s commitment to improved net interest margin.
| September 30, | December 31, | September 30, | ||||||||||||||||||||||
| 2010 | 2009 | 2009 | ||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||
Core deposits(1) |
$ | 1,270.0 | 81.3 | % | $ | 1,194.3 | 77.0 | % | $ | 1,203.8 | 74.9 | % | ||||||||||||
Time Deposits > $100,000 |
208.9 | 13.4 | 257.4 | 16.6 | 294.7 | 18.3 | ||||||||||||||||||
Brokered deposits |
82.4 | 5.3 | 99.0 | 6.4 | 109.0 | 6.8 | ||||||||||||||||||
Total deposits |
$ | 1,561.3 | 100.0 | % | $ | 1,550.7 | 100.0 | % | $ | 1,607.5 | 100.0 | % | ||||||||||||
Quarterly rate on deposits |
1.42 | % | 2.01 | % | 2.39 | % | ||||||||||||||||||
| (1) | Core deposits are transactional, savings, and time deposits under $100,000. |
REAL ESTATE
New residential construction loan advances made during the quarter totaled $4.8 million, while
the payoffs of construction loans totaled $12.9 million. Residential construction and A&D loans
totaled $124.4 million at September 30, 2010, which decreased 31% from $179.2 million at September
30, 2009. There were 308 houses and 1,465 lots financed at September 30, 2010, compared to 410
houses and 1,734 lots at September 30, 2009.
Total residential and commercial construction and land loans decreased to $129.5 million or
9.6% of loans at September 30, 2010, from $154.8 million or 12.0% of loans at December 31, 2009,
and $187.2 million or 14.2% of loans at September 30, 2009, and as a percentage of capital was 62%
at September 30, 2010. The regulatory guideline is a maximum of 100%.
All real estate loans, excluding owner-occupied properties, as a percentage of capital was
136% at September 30, 2010. The regulatory guideline is a maximum of 300%.
3
Fidelity Southern Corporation
Third Quarter Earnings Release
October 21, 2010
Third Quarter Earnings Release
October 21, 2010
CAPITAL
Fidelity reported a total risk based capital ratio for the Bank of 14.02% at September 30,
2010, compared to 13.19% at September 30, 2009. The Leverage Capital ratio at the Bank was 9.69%
at September 30, 2010, compared to 9.05% at September 30, 2009. Both ratios exceeded required
regulatory minimums for well-capitalized institutions. At September 30, 2010, the total risk based
capital ratio and the leverage ratio increased 45 basis points and 12 basis points, respectively,
from June 30, 2010.
NET INTEREST MARGIN
Net interest margin increased 60 basis points to 3.70% in the third quarter of 2010 compared
to 3.10% in the third quarter of 2009, and increased three basis points from 3.67% for the second
quarter of 2010. Net interest income for the third quarter of 2010 increased $2.6 million or 19.1%
when compared to the same period in 2009. The increase in net interest income for the quarter is a
result of a greater reduction in the cost of funds than the decrease in the yield on earning
assets.
The net interest margin increased 77 basis points to 3.59% in the first nine months of 2010
compared to 2.82% for the same period in 2009. In addition, average total interest earning assets
increased $14.9 million or 0.9% for the nine months ended September 30, 2010, compared to the same
period in 2009. The increases are a result of a greater reduction in the cost of funds than the
decrease in the yield on earning assets. Net interest income for the first nine months of 2010
increased $10.4 million or 28.2% over the same period in 2009.
INTEREST INCOME
Total interest income for the third quarter of 2010 decreased $1.4 million or 5.4% compared to
the same period in 2009. The yield on average interest-earning assets decreased 28 basis points
and average interest-earning assets for the third quarter 2010 decreased $9.8 million or 0.6%.
However, approximately $25.7 million of Indirect automobile and SBA loans were sold during the
third quarter of 2010. Mortgage loans of $356.6 million were also sold during this period. The
decrease in yield was primarily the result of a decrease in the yield on loans of 24 basis points
as the Bank offered competitive rates in the marketplace. In addition, investment security yields
decreased 107 basis points to 3.46%.
Total interest income year to date through September 30, 2010 decreased $1.7 million or 2.4%
compared to the same period in 2009. The decrease in interest income in 2010 was the result of a
decrease of 17 basis points in the yield on average interest-earning assets offset in part by the
growth in average interest-earning assets in 2010, which increased $14.9 million or 0.9%. The
decrease in yield was a result of an 81 basis point decrease in yield on investment securities
which was somewhat offset by an increase in the yield on total loans of three basis points.
4
Fidelity Southern Corporation
Third Quarter Earnings Release
October 21, 2010
Third Quarter Earnings Release
October 21, 2010
INTEREST EXPENSE
Interest expense for the third quarter of 2010 decreased $4.0 million or 35.5% compared to the
same period in 2009. The decrease in interest expense was attributable to a 91 basis point
decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing
liabilities of $62.7 million or 3.9%. In addition to the general decrease in deposit rates, the
Bank’s shift in deposit mix toward core demand and savings accounts contributed to the reduction in
the cost of funds. Brokered deposits decreased $26.6 million compared to September 30, 2009, and
$16.6 million compared to December 31, 2009. At September 30, 2010, brokered deposits represented
only 5.3% of total deposits.
Year to date in 2010, interest expense decreased $12.1 million or 33.4% compared to the same
period in 2009. The decrease in interest expense was attributable to a 101 basis point decrease in
the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of
$9.8 million.
NONINTEREST INCOME
Noninterest income increased $4.3 million or 60.2% to $11.6 million for the quarter ended
September 30, 2010, compared to the same period in 2009. The increase in noninterest income was
primarily the result of a $4.0 million or 128.6% increase in income from mortgage banking
activities and an $804,000 or 546.9% increase in income from SBA lending activities. Mortgage
banking income improved as a result of higher origination volume, which increased 78.0% compared to
the third quarter of 2009 to $386 million due to the historically low interest rate environment and
an expansion in the number of loan officers. SBA income was higher as a result of a 661% increase
in the volume of loan sales over the same quarter in 2009 as liquidity in the secondary market
continued to improve. These increases were somewhat offset by a $519,000 decrease in securities
gains as no investment securities were sold during the third quarter of 2010.
Noninterest income increased $7.5 million or 34.6% to $29.3 million for the nine months ended
September 30, 2010 compared to the same period in 2009. The increase was a result of a $3.5
million or 30.9% increase in income from mortgage banking activities, a $1.8 million or 341.4%
increase in securities gains, a $1.2 million or 207.7% increase in income from SBA lending
activities and a $710,000 or 172.3% increase in other operating income. Mortgage banking income
improved as a result of higher origination volume, which increased 23.8% to $834 million.
Securities gains increased due to higher sales as management repositioned the investment portfolio
as part of the interest rate, cash flow, and capital risk rating strategies. SBA income improved
as a result of higher sales volume which increased 87% over the same period in 2009 as liquidity
continued to improve in the secondary market. Other operating income increased due primarily to
higher net gains on the sales of other real estate.
5
Fidelity Southern Corporation
Third Quarter Earnings Release
October 21, 2010
Third Quarter Earnings Release
October 21, 2010
NONINTEREST EXPENSE
Noninterest expense for the third quarter of 2010 increased $3.5 million or 21.3% to $20.0
million compared to the same period in 2009. The increase was due primarily to higher salaries and
employee benefits which increased $3.6 million or 44.3% to $11.7 million due to higher commission
expense related to the increased origination volume in the mortgage division as well as an
increased number of lenders in the mortgage, SBA, Commercial, and Indirect Auto Lending divisions.
Other operating expense increased $577,000 or 32.5% to $2.4 million due to higher compliance,
underwriting, supplies, and advertising expenses. The cost of operation of other real estate
decreased $728,000 or 34.0% to $1.4 million due to lower foreclosure expenses and write-downs
related to ORE.
Noninterest expense for the first nine months of 2010 increased $7.8 million or 16.3% to $55.8
million compared to the same period in 2009. The increase was a result of higher salaries,
commissions and employee benefits which increased $5.7 million or 22.7% to $30.6 million, the cost
of operation of other real estate which increased $1.1 million or 23.0% to $5.9 million due
primarily to higher write-downs related to ORE and higher foreclosure expenses, and higher
operating expense, which increased $1.1 or 21.8% to $6.4 million due primarily to higher insurance
coverage and insurance expense.
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark
Insurance Company, provides banking services and credit-related insurance products through 23
branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in
Atlanta, Georgia. SBA, Indirect automobile, and mortgage loans are provided through employees
located throughout the Southeast. For additional information about Fidelity’s products and
services, please visit the website at www.FidelitySouthern.com.
This news release contains forward-looking statements, as defined by Federal Securities Laws,
including statements about financial outlook and business environment. These statements are
provided to assist in the understanding of future financial performance and such performance
involves risks and uncertainties that may cause actual results to differ materially from those in
such statements. Any such statements are based on current expectations and involve a number of
risks and uncertainties. For a discussion of some factors that may cause such forward-looking
statements to differ materially from actual results, please refer to the section entitled “Forward
Looking Statements” on page 3 of Fidelity Southern Corporation’s 2009 Annual Report filed on Form
10-K with the Securities and Exchange Commission.
-end-
6
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| QUARTER TO DATE | YEAR TO DATE | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
INTEREST INCOME |
||||||||||||||||
LOANS, INCLUDING FEES |
$ | 22,068 | $ | 22,208 | $ | 64,886 | $ | 65,112 | ||||||||
INVESTMENT SECURITIES |
1,602 | 2,824 | 6,350 | 7,896 | ||||||||||||
FEDERAL FUNDS SOLD AND BANK DEPOSITS |
43 | 44 | 149 | 106 | ||||||||||||
TOTAL INTEREST INCOME |
23,713 | 25,076 | 71,385 | 73,114 | ||||||||||||
INTEREST EXPENSE |
||||||||||||||||
DEPOSITS |
5,507 | 9,478 | 18,732 | 30,648 | ||||||||||||
SHORT-TERM BORROWINGS |
185 | 44 | 898 | 422 | ||||||||||||
SUBORDINATED DEBT |
1,138 | 1,143 | 3,378 | 3,527 | ||||||||||||
OTHER LONG-TERM DEBT |
446 | 610 | 1,135 | 1,672 | ||||||||||||
TOTAL INTEREST EXPENSE |
7,276 | 11,275 | 24,143 | 36,269 | ||||||||||||
NET INTEREST INCOME |
16,437 | 13,801 | 47,242 | 36,845 | ||||||||||||
PROVISION FOR LOAN LOSSES |
5,025 | 4,500 | 10,150 | 21,300 | ||||||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES |
11,412 | 9,301 | 37,092 | 15,545 | ||||||||||||
NONINTEREST INCOME |
||||||||||||||||
SERVICE CHARGES ON DEPOSIT ACCOUNTS |
1,072 | 1,138 | 3,291 | 3,264 | ||||||||||||
OTHER FEES AND CHARGES |
553 | 509 | 1,596 | 1,486 | ||||||||||||
MORTGAGE BANKING ACTIVITIES |
7,042 | 3,081 | 14,842 | 11,338 | ||||||||||||
INDIRECT LENDING ACTIVITIES |
1,200 | 1,042 | 3,397 | 3,237 | ||||||||||||
SBA LENDING ACTIVITIES |
951 | 147 | 1,797 | 584 | ||||||||||||
SECURITIES GAINS |
— | 519 | 2,291 | 519 | ||||||||||||
BANK OWNED LIFE INSURANCE |
324 | 321 | 980 | 948 | ||||||||||||
OTHER OPERATING INCOME |
419 | 461 | 1,122 | 412 | ||||||||||||
TOTAL NONINTEREST INCOME |
11,561 | 7,218 | 29,316 | 21,788 | ||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||
SALARIES AND EMPLOYEE BENEFITS |
11,729 | 8,127 | 30,634 | 24,969 | ||||||||||||
FURNITURE AND EQUIPMENT |
684 | 709 | 2,002 | 2,055 | ||||||||||||
NET OCCUPANCY |
1,159 | 1,114 | 3,374 | 3,296 | ||||||||||||
COMMUNICATION EXPENSES |
471 | 430 | 1,390 | 1,195 | ||||||||||||
PROFESSIONAL AND OTHER SERVICES |
1,279 | 1,292 | 3,391 | 3,628 | ||||||||||||
COST OF OPERATION OF OTHER REAL ESTATE |
1,412 | 2,140 | 5,939 | 4,829 | ||||||||||||
FDIC INSURANCE EXPENSE |
890 | 877 | 2,657 | 2,756 | ||||||||||||
OTHER OPERATING EXPENSES |
2,355 | 1,778 | 6,409 | 5,263 | ||||||||||||
TOTAL NONINTEREST EXPENSE |
19,979 | 16,467 | 55,796 | 47,991 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE |
2,994 | 52 | 10,612 | (10,658 | ) | |||||||||||
INCOME TAX EXPENSE (BENEFIT) |
913 | (346 | ) | 3,467 | (4,875 | ) | ||||||||||
NET INCOME (LOSS) |
2,081 | 398 | 7,145 | (5,783 | ) | |||||||||||
PREFERRED STOCK DIVIDENDS |
(824 | ) | (823 | ) | (2,470 | ) | (2,469 | ) | ||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY |
$ | 1,257 | $ | (425 | ) | $ | 4,675 | $ | (8,252 | ) | ||||||
INCOME (LOSS) PER SHARE: |
||||||||||||||||
BASIC INCOME (LOSS) PER SHARE |
$ | 0.12 | $ | (0.04 | ) | $ | 0.44 | $ | (0.81 | ) | ||||||
DILUTED INCOME (LOSS) PER SHARE |
$ | 0.10 | $ | (0.04 | ) | $ | 0.39 | $ | (0.81 | ) | ||||||
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING-BASIC |
10,708,885 | 10,195,342 | 10,579,438 | 10,132,761 | ||||||||||||
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING-FULLY DILUTED |
12,073,391 | 10,195,342 | 11,878,586 | 10,132,761 | ||||||||||||
7
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| SEPTEMBER 30, | DECEMBER 31, | SEPTEMBER 30, | ||||||||||
| (DOLLARS IN THOUSANDS) | 2010 | 2009 | 2009 | |||||||||
ASSETS |
||||||||||||
CASH AND DUE FROM BANKS |
$ | 67,361 | $ | 170,692 | $ | 141,525 | ||||||
FEDERAL FUNDS SOLD |
642 | 428 | 5,558 | |||||||||
CASH AND CASH EQUIVALENTS |
68,003 | 171,120 | 147,083 | |||||||||
INVESTMENTS AVAILABLE-FOR-SALE |
152,572 | 136,917 | 223,907 | |||||||||
INVESTMENTS HELD-TO-MATURITY |
15,689 | 19,326 | 20,452 | |||||||||
INVESTMENT IN FHLB STOCK |
6,542 | 6,767 | 6,767 | |||||||||
LOANS HELD-FOR-SALE |
186,494 | 131,231 | 125,045 | |||||||||
LOANS |
1,355,248 | 1,289,859 | 1,313,887 | |||||||||
ALLOWANCE FOR LOAN LOSSES |
(28,293 | ) | (30,072 | ) | (35,548 | ) | ||||||
LOANS, NET |
1,326,955 | 1,259,787 | 1,278,339 | |||||||||
PREMISES AND EQUIPMENT, NET |
19,229 | 18,092 | 18,363 | |||||||||
OTHER REAL ESTATE, NET |
21,252 | 21,780 | 21,239 | |||||||||
ACCRUED INTEREST RECEIVABLE |
8,148 | 7,832 | 8,053 | |||||||||
BANK OWNED LIFE INSURANCE |
29,967 | 29,058 | 28,745 | |||||||||
OTHER ASSETS |
44,367 | 49,610 | 34,401 | |||||||||
TOTAL ASSETS |
$ | 1,879,218 | $ | 1,851,520 | $ | 1,912,394 | ||||||
LIABILITIES |
||||||||||||
DEPOSITS: |
||||||||||||
NONINTEREST-BEARING DEMAND |
$ | 186,112 | $ | 157,511 | $ | 154,714 | ||||||
INTEREST-BEARING DEMAND/
MONEY MARKET |
429,133 | 252,493 | 251,430 | |||||||||
SAVINGS |
367,402 | 440,596 | 416,126 | |||||||||
TIME DEPOSITS, $100,000 AND OVER |
208,853 | 257,450 | 294,714 | |||||||||
OTHER TIME DEPOSITS |
369,674 | 442,675 | 490,537 | |||||||||
TOTAL DEPOSIT LIABILITIES |
1,561,174 | 1,550,725 | 1,607,521 | |||||||||
SHORT-TERM BORROWINGS |
22,715 | 41,870 | 18,261 | |||||||||
SUBORDINATED DEBT |
67,527 | 67,527 | 67,527 | |||||||||
OTHER LONG-TERM DEBT |
75,000 | 50,000 | 75,000 | |||||||||
ACCRUED INTEREST PAYABLE |
2,671 | 4,504 | 4,319 | |||||||||
OTHER LIABILITIES |
11,116 | 7,209 | 7,743 | |||||||||
TOTAL LIABILITIES |
1,740,203 | 1,721,835 | 1,780,371 | |||||||||
SHAREHOLDERS’ EQUITY
|
||||||||||||
PREFERRED STOCK |
45,358 | 44,696 | 44,475 | |||||||||
COMMON STOCK |
56,541 | 53,342 | 52,810 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE
INCOME (LOSS) |
1,553 | (64 | ) | 3,685 | ||||||||
RETAINED EARNINGS |
35,563 | 31,711 | 31,053 | |||||||||
TOTAL SHAREHOLDERS’ EQUITY |
139,015 | 129,685 | 132,023 | |||||||||
TOTAL LIABILITIES AND SHARE-HOLDERS’ EQUITY |
$ | 1,879,218 | $ | 1,851,520 | $ | 1,912,394 | ||||||
BOOK VALUE PER SHARE |
$ | 8.79 | $ | 8.36 | $ | 8.62 | ||||||
SHARES OF COMMON STOCK OUTSTANDING |
10,658,913 | 10,169,347 | 10,157,189 | |||||||||
8
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
LOANS, BY CATEGORY
(UNAUDITED)
| PERCENT CHANGE | |||||||||||||||||||||||
| SEPTEMBER 30, | DECEMBER 31, | SEPTEMBER 30, | Sep 30, 2010/ | Sep 30, 2010/ | |||||||||||||||||||
| (DOLLARS IN THOUSANDS) | 2010 | 2009 | 2009 | Dec. 31, 2009 | Sep 30, 2009 | ||||||||||||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
$ | 94,221 | $ | 113,604 | $ | 126,782 | (17.06 | )% | (25.68 | )% | |||||||||||||
TAX-EXEMPT COMMERCIAL |
5,202 | 5,350 | 6,453 | (2.77 | )% | (19.39 | )% | ||||||||||||||||
REAL ESTATE MORTGAGE — COMMERCIAL |
336,395 | 287,354 | 237,617 | 17.07 | % | 41.57 | % | ||||||||||||||||
TOTAL COMMERCIAL |
435,818 | 406,308 | 370,852 | 7.26 | % | 17.52 | % | ||||||||||||||||
REAL ESTATE-CONSTRUCTION |
129,486 | 154,785 | 187,215 | (16.34 | )% | (30.84 | )% | ||||||||||||||||
REAL ESTATE-MORTGAGE |
135,977 | 130,984 | 126,540 | 3.81 | % | 7.46 | % | ||||||||||||||||
CONSUMER INSTALLMENT |
653,967 | 597,782 | 629,280 | 9.40 | % | 3.92 | % | ||||||||||||||||
LOANS |
1,355,248 | 1,289,859 | 1,313,887 | 5.07 | % | 3.15 | % | ||||||||||||||||
LOANS HELD-FOR-SALE: |
|||||||||||||||||||||||
ORIGINATED RESIDENTIAL MORTGAGE LOANS |
138,151 | 80,869 | 82,795 | 70.83 | % | 66.86 | % | ||||||||||||||||
SBA LOANS |
18,343 | 20,362 | 27,250 | (9.92 | )% | (32.69 | )% | ||||||||||||||||
INDIRECT AUTO LOANS |
30,000 | 30,000 | 15,000 | 0.00 | % | 100.00 | % | ||||||||||||||||
TOTAL LOANS HELD-FOR-SALE |
186,494 | 131,231 | 125,045 | 42.11 | % | 49.14 | % | ||||||||||||||||
TOTAL LOANS |
$ | 1,541,742 | $ | 1,421,090 | $ | 1,438,932 | |||||||||||||||||
9
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
| YEAR TO DATE | YEAR ENDED | |||||||||||
| SEPTEMBER 30, | DECEMBER 31, | |||||||||||
| (DOLLARS IN THOUSANDS) | 2010 | 2009 | 2009 | |||||||||
BALANCE AT BEGINNING OF PERIOD |
$ | 30,072 | $ | 33,691 | $ | 33,691 | ||||||
CHARGE-OFFS: |
||||||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
144 | 301 | 315 | |||||||||
SBA |
322 | 660 | 730 | |||||||||
REAL ESTATE-CONSTRUCTION |
6,529 | 9,867 | 20,217 | |||||||||
REAL ESTATE-MORTGAGE |
266 | 293 | 416 | |||||||||
CONSUMER INSTALLMENT |
5,463 | 9,013 | 11,622 | |||||||||
TOTAL CHARGE-OFFS |
12,724 | 20,134 | 33,300 | |||||||||
RECOVERIES: |
||||||||||||
COMMERCIAL, FINANCIAL AND AGRICULTURAL |
23 | 8 | 9 | |||||||||
SBA |
— | 29 | 31 | |||||||||
REAL ESTATE-CONSTRUCTION |
206 | 35 | 76 | |||||||||
REAL ESTATE-MORTGAGE |
4 | 15 | 20 | |||||||||
CONSUMER INSTALLMENT |
562 | 604 | 745 | |||||||||
TOTAL RECOVERIES |
795 | 691 | 881 | |||||||||
NET CHARGE-OFFS |
11,929 | 19,443 | 32,419 | |||||||||
PROVISION FOR LOAN LOSSES |
10,150 | 21,300 | 28,800 | |||||||||
BALANCE AT END OF PERIOD |
$ | 28,293 | $ | 35,548 | $ | 30,072 | ||||||
RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE
LOANS OUTSTANDING, NET |
1.22 | % | 1.95 | % | 2.44 | % | ||||||
ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS |
2.09 | % | 2.71 | % | 2.33 | % | ||||||
NONPERFORMING ASSETS
(UNAUDITED)
(UNAUDITED)
| SEPTEMBER 30, | DECEMBER 31, | |||||||||||
| (DOLLARS IN THOUSANDS) | 2010 | 2009 | 2009 | |||||||||
NONACCRUAL LOANS |
$ | 60,695 | $ | 83,494 | $ | 69,743 | ||||||
REPOSSESSIONS |
882 | 1,562 | 1,393 | |||||||||
OTHER REAL ESTATE |
21,252 | 21,239 | 21,780 | |||||||||
TOTAL NONPERFORMING ASSETS |
$ | 82,829 | $ | 106,295 | $ | 92,916 | ||||||
*** INCLUDES SBA GUARANTEED AMOUNTS OF APPROXIMATELY |
$ | 6,200 | $ | 2,300 | $ | 4,500 | ||||||
LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING |
$ | — | $ | — | $ | — | ||||||
RATIO OF LOANS PAST DUE 90 DAYS OR MORE AND
STILL ACCRUING TO TOTAL LOANS |
— | % | — | % | — | % | ||||||
RATIO OF NONPERFORMING ASSETS TO TOTAL LOANS,
OREO AND REPOSSESSIONS |
5.30 | % | 7.27 | % | 6.43 | % | ||||||
DELINQUENCIES
(UNAUDITED)
(UNAUDITED)
| (DOLLARS IN THOUSANDS) | Dec-08 | Mar-09 | Jun-09 | Sep-09 | Dec-09 | Mar-10 | Jun-10 | Sep-10 | ||||||||||||||||||||||||
PAST DUE (30-59) |
$ | 23,890 | $ | 13,719 | $ | 5,678 | $ | 8,242 | $ | 11,905 | $ | 19,171 | $ | 7,618 | $ | 4,664 | ||||||||||||||||
PAST DUE (60-89) |
6,706 | 2,080 | 7,841 | 2,059 | 6,505 | 658 | 1,289 | 9,631 | ||||||||||||||||||||||||
PAST DUE (90+) |
— | — | — | — | — | 563 | — | — | ||||||||||||||||||||||||
TOTAL PAST DUE |
$ | 30,596 | $ | 15,799 | $ | 13,519 | $ | 10,301 | $ | 18,410 | $ | 20,392 | $ | 8,907 | $ | 14,295 | ||||||||||||||||
INDIRECT |
$ | 10,584 | $ | 4,978 | $ | 4,313 | $ | 6,579 | $ | 7,912 | $ | 4,551 | $ | 3,958 | $ | 3,635 | ||||||||||||||||
CONSTRUCTION |
9,980 | 4,977 | 6,606 | — | 292 | 12,282 | — | 8,411 | ||||||||||||||||||||||||
COMMERCIAL |
6,831 | 2,061 | — | — | 5,295 | 946 | — | 314 | ||||||||||||||||||||||||
SBA |
1,492 | 1,549 | — | 1,605 | 3,238 | 740 | 2,911 | — | ||||||||||||||||||||||||
OTHER |
1,709 | 2,234 | 2,600 | 2,117 | 1,673 | 1,873 | 2,038 | 1,935 | ||||||||||||||||||||||||
TOTAL PAST DUE |
$ | 30,596 | $ | 15,799 | $ | 13,519 | $ | 10,301 | $ | 18,410 | $ | 20,392 | $ | 8,907 | $ | 14,295 | ||||||||||||||||
10
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
| YEAR TO DATE | ||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
| (DOLLARS IN THOUSANDS) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets |
||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans, net of unearned income |
||||||||||||||||||||||||
Taxable |
$ | 1,444,046 | $ | 64,727 | 5.99 | % | $ | 1,450,514 | $ | 64,907 | 5.96 | % | ||||||||||||
Tax-exempt (1) |
5,280 | 242 | 6.16 | % | 7,126 | 304 | 5.82 | % | ||||||||||||||||
Total loans |
1,449,326 | 64,969 | 5.99 | % | 1,457,640 | 65,211 | 5.96 | % | ||||||||||||||||
Investment securities |
||||||||||||||||||||||||
Taxable |
222,756 | 5,985 | 3.58 | % | 224,569 | 7,410 | 4.40 | % | ||||||||||||||||
Tax-exempt (2) |
11,706 | 547 | 6.22 | % | 15,711 | 714 | 6.06 | % | ||||||||||||||||
Total investment securities |
234,462 | 6,532 | 3.72 | % | 240,280 | 8,124 | 4.53 | % | ||||||||||||||||
Interest-bearing deposits |
84,792 | 149 | 0.23 | % | 43,610 | 86 | 0.26 | % | ||||||||||||||||
Federal funds sold |
616 | — | 0.08 | % | 12,748 | 20 | 0.21 | % | ||||||||||||||||
Total interest-earning assets |
1,769,196 | 71,650 | 5.41 | % | 1,754,278 | 73,441 | 5.58 | % | ||||||||||||||||
Cash and due from banks |
8,906 | 26,281 | ||||||||||||||||||||||
Allowance for loan losses |
(28,227 | ) | (34,235 | ) | ||||||||||||||||||||
Premises and equipment, net |
18,696 | 18,874 | ||||||||||||||||||||||
Other real estate |
23,786 | 21,623 | ||||||||||||||||||||||
Other assets |
77,488 | 65,887 | ||||||||||||||||||||||
Total assets |
$ | 1,869,845 | $ | 1,852,708 | ||||||||||||||||||||
Liabilities and shareholders’ equity |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Demand deposits |
$ | 314,666 | $ | 2,215 | 0.94 | % | $ | 231,456 | $ | 2,189 | 1.26 | % | ||||||||||||
Savings deposits |
427,488 | 4,684 | 1.46 | % | 302,774 | 5,181 | 2.28 | % | ||||||||||||||||
Time deposits |
648,487 | 11,833 | 2.44 | % | 861,353 | 23,278 | 3.60 | % | ||||||||||||||||
Total interest-bearing deposits |
1,390,641 | 18,732 | 1.80 | % | 1,395,583 | 30,648 | 2.93 | % | ||||||||||||||||
Federal funds purchased |
989 | 7 | 0.94 | % | — | — | 0.00 | % | ||||||||||||||||
Securities sold under agreements to
repurchase |
22,556 | 319 | 1.89 | % | 33,972 | 373 | 1.46 | % | ||||||||||||||||
Other short-term borrowings |
19,377 | 572 | 3.94 | % | 2,504 | 49 | 2.62 | % | ||||||||||||||||
Subordinated debt |
67,527 | 3,378 | 6.69 | % | 67,527 | 3,527 | 6.96 | % | ||||||||||||||||
Long-term debt |
57,052 | 1,135 | 2.66 | % | 68,315 | 1,672 | 3.26 | % | ||||||||||||||||
Total interest-bearing liabilities |
1,558,142 | 24,143 | 2.07 | % | 1,567,901 | 36,269 | 3.08 | % | ||||||||||||||||
Noninterest-bearing: |
||||||||||||||||||||||||
Demand deposits |
163,476 | 137,289 | ||||||||||||||||||||||
Other liabilities |
14,749 | 14,557 | ||||||||||||||||||||||
Shareholders’ equity |
133,478 | 132,961 | ||||||||||||||||||||||
Total liabilities and
shareholders’ equity |
$ | 1,869,845 | $ | 1,852,708 | ||||||||||||||||||||
Net interest income / spread |
$ | 47,507 | 3.34 | % | $ | 37,172 | 2.50 | % | ||||||||||||||||
Net interest margin |
3.59 | % | 2.82 | % | ||||||||||||||||||||
| (1) | Interest income includes the effect of taxable-equivalent adjustment for 2010 and 2009 of $83,000 and $99,000 respectively. | |
| (2) | Interest income includes the effect of taxable-equivalent adjustment for 2010 and 2009 of $182,000 and $228,000, respectively. |
11
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
| QUARTER ENDED | ||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
| (DOLLARS IN THOUSANDS) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||
Assets |
||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans, net of unearned income |
||||||||||||||||||||||||
Taxable |
$ | 1,504,460 | $ | 22,015 | 5.81 | % | $ | 1,453,467 | $ | 22,137 | 6.05 | % | ||||||||||||
Tax-exempt (1) |
5,252 | 82 | 6.20 | % | 6,776 | 103 | 6.29 | % | ||||||||||||||||
Total loans |
1,509,712 | 22,097 | 5.81 | % | 1,460,243 | 22,240 | 6.05 | % | ||||||||||||||||
Investment securities |
||||||||||||||||||||||||
Taxable |
181,018 | 1,480 | 3.27 | % | 240,855 | 2,658 | 4.41 | % | ||||||||||||||||
Tax-exempt (2) |
11,705 | 183 | 6.25 | % | 16,019 | 245 | 6.11 | % | ||||||||||||||||
Total investment securities |
192,723 | 1,663 | 3.46 | % | 256,874 | 2,903 | 4.53 | % | ||||||||||||||||
Interest-bearing deposits |
69,789 | 42 | 0.24 | % | 59,113 | 41 | 0.27 | % | ||||||||||||||||
Federal funds sold |
642 | — | 0.07 | % | 6,448 | 3 | 0.21 | % | ||||||||||||||||
Total interest-earning assets |
1,772,866 | 23,802 | 5.33 | % | 1,782,678 | 25,187 | 5.61 | % | ||||||||||||||||
Cash and due from banks |
13,723 | 36,035 | ||||||||||||||||||||||
Allowance for loan losses |
(26,825 | ) | (35,275 | ) | ||||||||||||||||||||
Premises and equipment, net |
19,037 | 18,590 | ||||||||||||||||||||||
Other real estate |
21,573 | 23,480 | ||||||||||||||||||||||
Other assets |
75,724 | 68,392 | ||||||||||||||||||||||
Total assets |
$ | 1,876,098 | $ | 1,893,900 | ||||||||||||||||||||
Liabilities and shareholders’ equity |
||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
Demand deposits |
$ | 394,658 | $ | 984 | 0.99 | % | $ | 248,080 | $ | 745 | 1.19 | % | ||||||||||||
Savings deposits |
386,382 | 1,184 | 1.22 | % | 389,690 | 1,942 | 1.98 | % | ||||||||||||||||
Time deposits |
599,788 | 3,339 | 2.21 | % | 809,624 | 6,791 | 3.33 | % | ||||||||||||||||
Total interest-bearing deposits |
1,380,828 | 5,507 | 1.58 | % | 1,447,394 | 9,478 | 2.60 | % | ||||||||||||||||
Federal funds purchased |
— | — | 0.00 | % | — | — | 0.00 | % | ||||||||||||||||
Securities sold under agreements to
repurchase |
24,097 | 142 | 2.34 | % | 17,771 | 27 | 0.59 | % | ||||||||||||||||
Other short-term borrowings |
4,076 | 43 | 4.12 | % | 2,430 | 17 | 2.72 | % | ||||||||||||||||
Subordinated debt |
67,527 | 1,138 | 6.69 | % | 67,527 | 1,143 | 6.71 | % | ||||||||||||||||
Long-term debt |
70,924 | 446 | 2.49 | % | 75,000 | 610 | 3.23 | % | ||||||||||||||||
Total interest-bearing liabilities |
1,547,452 | 7,276 | 1.87 | % | 1,610,122 | 11,275 | 2.78 | % | ||||||||||||||||
Noninterest-bearing: |
||||||||||||||||||||||||
Demand deposits |
172,785 | 138,078 | ||||||||||||||||||||||
Other liabilities |
17,917 | 15,703 | ||||||||||||||||||||||
Shareholders’ equity |
137,944 | 129,997 | ||||||||||||||||||||||
Total liabilities and
shareholders’ equity |
$ | 1,876,098 | $ | 1,893,900 | ||||||||||||||||||||
Net interest income / spread |
$ | 16,526 | 3.46 | % | $ | 13,912 | 2.83 | % | ||||||||||||||||
Net interest margin |
3.70 | % | 3.10 | % | ||||||||||||||||||||
| (1) | Interest income includes the effect of taxable-equivalent adjustment for 2009 and 2008 of $29,000 and $32,000 respectively. | |
| (2) | Interest income includes the effect of taxable-equivalent adjustment for 2009 and 2008 of $61,000 and $79,000. |
12