Fidelity Southern Corp. New (LION, Financial) filed Quarterly Report for the period ended 2010-09-30.
Fidelity Southern Corp. New has a market cap of $72.33 million; its shares were traded at around $6.79 with a P/E ratio of 13.72 and P/S ratio of 0.55. LION is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Net interest income for the third quarter of 2010 increased $2.6 million or 19.1% to $16.4 million when compared to the same period in 2009 due primarily to a decrease of $4.0 million in interest expense. The yield on interest-earning assets for the third quarter of 2010 was 5.33%, a decrease of 28 basis points when compared to the yield on interest-earning assets for the same period in 2009. The average balance of loans outstanding for the third quarter of 2010 increased $49.5 million or 3.4% to $1.510 billion when compared to the same period in 2009. The yield on average loans outstanding for the period decreased 24 basis points to 5.81% when compared to the same period in 2009 primarily due to a decrease in yield on indirect automobile loans in response to competitive pressures as management took steps to grow the loan portfolio. Somewhat offsetting this decrease in rate was a decrease in the level of nonperforming assets from $83.5 million at September 30, 2009 to $60.7 million at September 30, 2010. The average balance of interest-bearing liabilities decreased $62.7 million or 3.9% to $1.547 billion for the third quarter of 2010 while the rate on this average balance decreased 91 basis points to 1.87% when compared to the same period in 2009. The 91 basis point decrease in the cost of interest-bearing liabilities was higher than the 28 basis point decrease in the yield on interest earning assets, resulting in a 63 basis point increase in net interest spread. Net interest margin increased 60 basis points to 3.70% for the third quarter of 2010 compared to 3.10% for the same period in 2009.
Substantially all of the consumer installment loan net charge-offs in the first nine months of 2010 and 2009 were from the indirect automobile loan portfolio. Consumer installment loan net charge-offs decreased $2.7 million to $4.9 million for the nine months ended September 30, 2010, compared to the same period in 2009. On a quarterly basis, the charge-off trend also shows improvement with net charge-offs of $2.2 million, $2.5 million, $2.1 million, $1.4 million, and $1.4 million for the third and fourth quarters of 2009, and the first, second and third quarters of 2010, respectively. The annualized ratio of net charge-offs to average consumer loans outstanding was 1.06% and 1.25% during the first nine months of 2010 and 2009, respectively.
Noninterest expense was $20.0 million for the third quarter of 2010, compared to $16.5 million for the same period in 2009, an increase of $3.5 million or 21.3%. The increase was a result of higher salaries and benefits expense which increased $3.6 million or 44.3% as a result of the expansion of the mortgage division and an increase in lenders in the SBA, Commercial, Private Banking and Indirect Auto Lending divisions. Other operating expense increased $577,000 or 32.5% due to higher underwriting loan growth in the mortgage division, advertising expenses from an outdoor advertising campaign in 2010, credit reporting expenses, appraisal fees, and miscellaneous operating expenses related primarily to the increased mortgage originations. The cost of operation of other real estate decreased $728,000 or 34.0% to $1.4 million due primarily to smaller write-downs related to ORE and lower foreclosure expenses. The average ORE balance decreased to $21.6 million for the third quarter of 2010 compared to $23.5 million for the same period in 2009.
Noninterest expense was $55.8 million for the first nine months of 2010, compared to $48.0 million for the same period in 2009, an increase of $7.8 million or 16.3%. The increase was a result of higher salaries and benefits expense which increased $5.7 million or 22.7% as a result of growth as discussed above. Other operating expense increased $1.1 million or 21.8% due primarily to higher underwriting and insurance expense. The cost of operation of other real estate increased $1.1 million or 23.0% to $5.9 million due primarily to higher write-downs related to ORE which increased $543,000, higher foreclosure expenses which increased $306,000 and increased ORE related taxes and maintenance.
Loans increased $65.4 million or 5.1% to $1.355 billion at September 30, 2010, compared to $1.290 billion at December 31, 2009. The increase in loans was primarily the result of an increase in commercial loans of $29.5 million or 7.3% to $435.8 million, an increase in consumer installment loans of $24.7 million or 9.4% to $654.0 million and an increase in mortgage loans of $9.4 million or 3.8% to $136.0 million. Commercial loan balances increased as management targeted the lending needs of small businesses and added loan officers. Consumer installment loans increased as the Bank grew its indirect automobile loan portfolio by expanding its lending area and competitive loan pricing. Somewhat offsetting these increases was a decrease in real estate construction loans of $25.3 million or 16.3% to $129.5 million. As the recession continued during the first nine months of 2010, demand for construction loans continued to be limited and the portfolio balance continued to decrease including $21.6 million in loans that were transferred to other real estate.
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Fidelity Southern Corp. New has a market cap of $72.33 million; its shares were traded at around $6.79 with a P/E ratio of 13.72 and P/S ratio of 0.55. LION is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the third quarter of 2010, the Company recorded net income of $2.1 million compared to net income of $398,000 for the third quarter of 2009. Net income (loss) available to common equity was $1.3 million and $(425,000) for the quarters ended September 30, 2010 and 2009, respectively. Basic and diluted earnings per share for the three months ended September 30, 2010 were $.12 and $.10, respectively, compared to a loss per share (basic and diluted) of $.04 for the three months ended September 30, 2009. The increase in net income for the third quarter of 2010 when compared to the same period in 2009 was due to a $4.3 million increase in noninterest income, and an increase in net interest income of $2.6 million, net of a $3.5 million increase in noninterest expense. Net income (loss) for the nine months ended September 30, 2010 was $7.1 million compared to $(5.8) million for the same period in 2009. Net income (loss) available to common equity was $4.7 million and $(8.3) million for the nine month period ended September 30, 2010 and 2009, respectively. Basic and diluted earnings per share for the first nine months of 2010 were $.44 and $.39, respectively, compared to a loss per share (basic and diluted) of $.81 for the nine months ended September 30, 2009. The increase in net income for the nine months ended September 30, 2010 compared to the same period in 2009 was due to the decrease in provision for loan losses which decreased $11.2 million due to continued decreases in the amount of charge-offs for both consumer and construction loans, and an increase in net interest income of $10.4 million. Net interest income increased as the cost of funds decreased more quickly than the yield on earning assets resulting in improved net interest margin.Net interest income for the third quarter of 2010 increased $2.6 million or 19.1% to $16.4 million when compared to the same period in 2009 due primarily to a decrease of $4.0 million in interest expense. The yield on interest-earning assets for the third quarter of 2010 was 5.33%, a decrease of 28 basis points when compared to the yield on interest-earning assets for the same period in 2009. The average balance of loans outstanding for the third quarter of 2010 increased $49.5 million or 3.4% to $1.510 billion when compared to the same period in 2009. The yield on average loans outstanding for the period decreased 24 basis points to 5.81% when compared to the same period in 2009 primarily due to a decrease in yield on indirect automobile loans in response to competitive pressures as management took steps to grow the loan portfolio. Somewhat offsetting this decrease in rate was a decrease in the level of nonperforming assets from $83.5 million at September 30, 2009 to $60.7 million at September 30, 2010. The average balance of interest-bearing liabilities decreased $62.7 million or 3.9% to $1.547 billion for the third quarter of 2010 while the rate on this average balance decreased 91 basis points to 1.87% when compared to the same period in 2009. The 91 basis point decrease in the cost of interest-bearing liabilities was higher than the 28 basis point decrease in the yield on interest earning assets, resulting in a 63 basis point increase in net interest spread. Net interest margin increased 60 basis points to 3.70% for the third quarter of 2010 compared to 3.10% for the same period in 2009.
Substantially all of the consumer installment loan net charge-offs in the first nine months of 2010 and 2009 were from the indirect automobile loan portfolio. Consumer installment loan net charge-offs decreased $2.7 million to $4.9 million for the nine months ended September 30, 2010, compared to the same period in 2009. On a quarterly basis, the charge-off trend also shows improvement with net charge-offs of $2.2 million, $2.5 million, $2.1 million, $1.4 million, and $1.4 million for the third and fourth quarters of 2009, and the first, second and third quarters of 2010, respectively. The annualized ratio of net charge-offs to average consumer loans outstanding was 1.06% and 1.25% during the first nine months of 2010 and 2009, respectively.
Noninterest expense was $20.0 million for the third quarter of 2010, compared to $16.5 million for the same period in 2009, an increase of $3.5 million or 21.3%. The increase was a result of higher salaries and benefits expense which increased $3.6 million or 44.3% as a result of the expansion of the mortgage division and an increase in lenders in the SBA, Commercial, Private Banking and Indirect Auto Lending divisions. Other operating expense increased $577,000 or 32.5% due to higher underwriting loan growth in the mortgage division, advertising expenses from an outdoor advertising campaign in 2010, credit reporting expenses, appraisal fees, and miscellaneous operating expenses related primarily to the increased mortgage originations. The cost of operation of other real estate decreased $728,000 or 34.0% to $1.4 million due primarily to smaller write-downs related to ORE and lower foreclosure expenses. The average ORE balance decreased to $21.6 million for the third quarter of 2010 compared to $23.5 million for the same period in 2009.
Noninterest expense was $55.8 million for the first nine months of 2010, compared to $48.0 million for the same period in 2009, an increase of $7.8 million or 16.3%. The increase was a result of higher salaries and benefits expense which increased $5.7 million or 22.7% as a result of growth as discussed above. Other operating expense increased $1.1 million or 21.8% due primarily to higher underwriting and insurance expense. The cost of operation of other real estate increased $1.1 million or 23.0% to $5.9 million due primarily to higher write-downs related to ORE which increased $543,000, higher foreclosure expenses which increased $306,000 and increased ORE related taxes and maintenance.
Loans increased $65.4 million or 5.1% to $1.355 billion at September 30, 2010, compared to $1.290 billion at December 31, 2009. The increase in loans was primarily the result of an increase in commercial loans of $29.5 million or 7.3% to $435.8 million, an increase in consumer installment loans of $24.7 million or 9.4% to $654.0 million and an increase in mortgage loans of $9.4 million or 3.8% to $136.0 million. Commercial loan balances increased as management targeted the lending needs of small businesses and added loan officers. Consumer installment loans increased as the Bank grew its indirect automobile loan portfolio by expanding its lending area and competitive loan pricing. Somewhat offsetting these increases was a decrease in real estate construction loans of $25.3 million or 16.3% to $129.5 million. As the recession continued during the first nine months of 2010, demand for construction loans continued to be limited and the portfolio balance continued to decrease including $21.6 million in loans that were transferred to other real estate.
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