Fidelity Southern Corporation (NASDAQ:LION) Files An 8-K Other EventsItem 8.01 Other Events
On August 30, 2018, Fidelity Bank (the “Bank”), a wholly owned subsidiary of Fidelity Southern Corporation (the “Company”), agreed to sell servicing rights relating to certain single family mortgage loans (“MSRs”) serviced for the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), with an aggregate unpaid principal balance of approximately $1.2 billion (the “Servicing Rights”) effective as of August 31, 2018 (the “Sale Date”). Approximately $13.9 million in deposit balances representing custodial funds and advances related to the MSRs will also be transferred to the buyer by the Bank on or after the Sale Date. The sale represents approximately 12% of the Bank’s total single family mortgage servicing portfolio as of July 31, 2018.
This is the first sale of MSRs executed by the Bank as part of the Company’s capital management strategy and was previously disclosed in the Company’s Form 10-Q filed with the Securities and Exchange Commission on August 3, 2018. The Bank anticipates executing other MSRs sales from time to time in the future as part of its ordinary course of business.
About Fidelity Southern Corporation (NASDAQ:LION)
Fidelity Southern Corporation is a bank holding company. The Company operates in the community banking segment. It conducts its operations through its subsidiary bank, Fidelity Bank (the Bank). The Bank provides various financial products and services for retail customers and small to medium-sized businesses, primarily in Atlanta and Jacksonville, Orlando and Sarasota-Bradenton, Florida markets. It also conducts indirect automobile lending, residential mortgage lending and Small Business Administration (SBA) lending activities in over 10 states. It is primarily engaged in attracting deposits from individuals and businesses and using these deposits and borrowed funds to originate commercial, residential mortgage, construction and installment loans. The Company’s subsidiary, LionMark Insurance Company is an insurance agency that offers consumer credit related insurance products.