Fidelity Southern Corp. New (LION) filed Quarterly Report for the period ended 2009-03-31.
Fidelity Southern Corporation through its operating subsidiary Fidelity Bank provides a wide range of banking mortgage and investment services through branches in Atlanta Georgia. Mortgage construction and automobile loans are also provided through offices in Jacksonville Florida. Fidelity Southern Corp. New has a market cap of $23.8 million; its shares were traded at around $2.44 with and P/S ratio of 0.2. The dividend yield of Fidelity Southern Corp. New stocks is 0.4%. Fidelity Southern Corp. New had an annual average earning growth of 14.6% over the past 5 years.
Highlight of Business Operations:
For the first quarter of 2009, the Company recorded a net loss of $3.4 million compared to net income of $1.1 million for the first quarter of 2008. Net loss available for common equity was $4.2 million for the quarter ended March 31, 2009. Basic and diluted (loss) earnings per share for the first quarter of 2009 and 2008 were $(.43) and $.12, respectively. The decrease in net income for the first quarter of 2009 when compared to the same period in 2008 was primarily due to a $5.0 million increase in the provision for loan losses to $9.6 million. The increase in the provision for loan losses was due to increased nonperforming assets and loan charge-offs caused by the continued recession and slow housing market.
Income from mortgage banking activities increased $3.5 million to $3.6 million for the first quarter of 2009 compared to the same period in 2008. In the first quarter of 2009, management made the strategic decision to expand the mortgage banking operation by hiring over 60 former employees of an Atlanta based mortgage company which closed down operations. As a result of this expansion and favorable mortgage interest rates, the Bank originated approximately $85 million in mortgage loans during the first quarter of 2009 compared to $6 million for the same period in 2008. Origination fee income for the first quarter of 2009 was $1.2 million compared to $31,000 for the same period in 2008. Gain on loans sold increased from $29,000 for the quarter ended March 31, 2008 to $749,000 for the same quarter in 2009. In addition, on January 1, 2009 the Bank elected under FAS 159 to value its loans held-for-sale at fair value. This valuation along with the mark to
Noninterest expense was $14.0 million for the first quarter of 2009, compared to $11.4 million for the same period in 2008, an increase of $2.6 million or 23.1%. The increase was a result of higher salaries and benefits expense which increased $983,000 or 14.2% as a result of the expansion of the mortgage division and the associated commission expense. ORE related expenses, which were $749,000 in the first quarter of 2009, increased $612,000 compared to the same period in 2008. The increase was a result of higher foreclosed assets held by the Bank during 2009. The average ORE balance increased 132.5% to $18.3 million for the first quarter of 2009 compared to $7.9 million for the same period in 2008. The ORE expense is made up of $523,000 in provision for other real estate losses and $226,000 in maintenance, real estate taxes, and other related expenses.
Loans decreased $51.9 million or 3.7% to $1.336 billion at March 31, 2009 compared to $1.388 billion at December 31, 2008. The decrease in loans was primarily the result of a decrease in consumer installment loans of $34.4 million or 5.1% to $644.9 million, and a decrease in real estate construction loans of $16.6 million or 6.8% to $228.6 million. Until receiving the TARP Capital Purchase Program capital infusion in December of 2008, management actively engaged in reducing the level of the loan portfolio to preserve capital ratios. By slowing originations in the consumer installment portfolio, the normal monthly principal paydowns led to lower outstanding loans. As the liquidity and credit crisis continued during the first three months of 2009, demand for construction loans continued to be limited and the portfolio balance continued to decrease including $4.3 million in loans that were transferred to other real estate.
The $105.2 million in nonaccrual loans at March 31, 2009, included $93.3 million in residential construction related loans, $8.5 million in commercial and SBA loans and $3.4 million in retail and consumer loans. Of the $93.3 million in residential construction related loans on nonaccrual, $47.8 million was related to 200 single family construction loans with completed homes and homes in various stages of completion, $40.4 million was related to 682 single family developed lots, and $5.1 million related to other loans.
Total deposits at March 31, 2009, were $1.531 billion compared to $1.444 billion at December 31, 2008, an $87.5 million or 6.1% increase. Savings deposits increased $65.2 million or 32.7% to $264.7 million. Noninterest-bearing demand deposits increased $3.2 million or 2.3% to $141.8 million. Interest-bearing demand and money market accounts increased $11.4 million or 5.5% to $220.1 million. Time deposits increased $7.7 million or .9% to $904.5 million. Savings accounts increased due to an advertising campaign launched by the Bank in the first quarter of 2009. Noninterest-bearing demand accounts increased in part due to an increase in the number of transaction accounts as a result of the continuing transaction account initiative and in part due to the unlimited deposit insurance coverage available through the FDICs Temporary Liquidity Guarantee Program. In addition, the Bank launched an advertising campaign in the first quarter of 2009 targeting savings and money market accounts. Management believes that the number of our transaction deposit accounts will continue to increase during the remainder of 2009.