Fidelity Southern Corporation Record Earnings Of $25.3 Million For 2012; Revenue Increases 27.8% For 2012; 2012 Return On Assets Reaches 1.08%

Jan 17, 2013, 12:48 ET from Fidelity Southern Corporation

ATLANTA, Jan. 17, 2013 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), reported net income of $25.3 million for the year ended 2012 compared to $11.4 million for the year ended 2011. For the quarter ended December 31, 2012, net income was $5.4 million compared to $8.2 million for the third quarter of 2012 and $3.8 million for the fourth quarter of 2011. After accounting for the preferred dividend, basic and diluted earnings per share for the year ended 2012 were $1.51 and $1.34, respectively, which compared to basic and diluted earnings per share of $0.62 and $0.56, respectively, for the year ended 2011. Basic and diluted earnings per share for the fourth quarter of 2012 were $0.31 and $0.28, respectively, compared to $0.50 and $0.44, respectively, for the third quarter of 2012 and $0.21 and $0.20, respectively, for the fourth quarter of 2011.

Fidelity's Chairman, Jim Miller, said, "2012 was a record year with improvement in many areas. We experienced significant organic and M&A growth, and strong fee income in all lines of business. We also controlled expenses as a result of consolidations and the integration of our acquired banks. The year 2013 offers continued opportunities to grow, operate more efficiently, and improve our credit costs as the economy improves."

For the Quarter Ended

(in thousands)

12/31/12

9/30/12

6/30/12

3/31/12

12/31/11

Net income

$

5,440

$

8,167

$

6,404

$

5,316

$

3,832

  Income tax expense

3,088

4,816

3,511

2,894

1,979

  Provision for loan losses

5,243

3,477

950

3,750

5,300

  Write-down of ORE

1,152

1,452

1,138

947

1,442

  Other cost of ORE operations

1,358

1,376

564

789

887

Pre-tax, pre-credit related earnings

16,281

19,288

12,567

13,696

13,440

  Less security gains

(4)

(303)

(237)

  Less acquisition gain

(4,012)

(206)

(1,527)

  Less accretion of FDIC indemnification asset

(150)

(285)

(96)

(171)

Core operating earnings (1)

$

16,131

$

14,987

$

12,471

$

13,016

$

11,676

(1) The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove the effect of income taxes, provision for loan losses, cost of operation of ORE, security gains, acquisition gain and indemnification asset accretion 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.

 

ASSET QUALITY

The majority of loans and other real estate acquired in the FDIC-assisted transactions are covered under 80% loss sharing agreements with the FDIC, which are classified as covered loans. Covered loans have the protection against losses reimbursable by the FDIC whereas non-covered loans do not have that same protection.

The following table provides a comparison of the activity affecting the allowance for loan loss:

($ in millions)

Q4 2012

Q3 2012

Q4 2011

YTD 2012

YTD 2011

Net charge-offs

$

3.7

$

1.2

$

6.7

$

10.3

$

20.5

Net charge-off ratio

0.81%

0.27%

1.54%

0.60%

1.38%

Provision for loan losses - Non-Covered Loans

$

4.6

$

2.5

$

5.3

$

11.9

$

20.3

Net impairment provision - Covered Loans

0.6

1.0

1.5

Total provision expense

$

5.2

$

3.5

$

5.3

$

13.4

$

20.3

The following table provides a summary of the net provision expense for the quarter ended December 31, 2012:

($ in millions)

Covered Loans

Non-Covered Loans

Total

Provision

$

1.6

$

4.6

$

6.2

Benefit attributable to FDIC

(1.0)

(1.0)

Net provision expense

$

0.6

$

4.6

$

5.2

The increase in provision expense for the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from provision needed to cover reduced appraisal values on certain collateral dependent loans during the period. During the fourth quarter of 2012, the Bank recorded a net impairment provision of $577,000 to reflect the continued decrease in expected cash flows of covered loans.

Net charge-offs decreased $10.2 million for the year ended 2012 to $10.3 million compared to $20.5 million for the same period of 2011. For the year ended 2012, the ratio of net-charge offs to average loans outstanding was 0.60% compared to 1.38% for the same period of 2011. Non-covered provision expense decreased $8.4 million for the year ended 2012 to $11.9 million compared to $20.3 million for the same period of 2011 primarily as a result of decreased charge-offs.

The allowance for loan losses at December 31, 2012 was $34.0 million, or 2.01% of total loans, compared to an allowance of $31.5 million, or 1.91% of total loans, at September 30, 2012, and $28.0 million, or 1.81% of total loans, at December 31, 2011. The increase is primarily the result of the acquired covered loans.

The following table presents certain credit quality metrics of the Bank's loan portfolio, inclusive and exclusive of covered loans. Nonperforming assets include nonaccrual loans, net repossessions and other real estate ("ORE"). Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and other real estate.

December 31, 2012

September 30, 2012

December 31, 2011

($ in millions)

Including Covered Loans

Excluding Covered Loans

Including Covered Loans

Excluding Covered Loans

Including Covered Loans

Excluding Covered Loans

Nonperforming loans

$

83.7

$

57.7

$

90.1

$

61.9

$

66.8

$

60.4

Classified loans

114.9

108.9

121.6

113.5

119.6

112.2

Allowance for loan losses as a percentage of total loans

1.92

%

2.01

%

1.78

%

1.91

%

1.81

%

1.72

%

Classified items ratio

44.17

%

41.87

%

48.31

%

45.09

%

52.43

%

49.45

%

Nonperforming assets ratio

6.88

%

4.74

%

7.62

%

5.12

%

5.28

%

5.96

%

ORE, net of reserves, decreased $5.4 million to $39.8 million at December 31, 2012, compared to $45.2 million at September 30, 2012. During the fourth quarter of 2012, $11.1 million of ORE assets were sold while $6.1 million were added to ORE. Excluding covered assets, ORE sales were $4.6 million and additions were $4.2 million for the quarter.

CAPITAL

The following table details the Company's and Bank's capital position at December 31, 2012, September 30, 2012 and December 31, 2011:

Fidelity Southern Corporation

Fidelity Bank

December 31, 2012

September 30, 2012

December 31, 2011

December 31, 2012

September 30, 2012

December 31, 2011

Total risk-based capital ratio

13.23%

13.41%

13.70%

12.46%

12.62%

12.73%

Tier 1 risk-based capital ratio

11.86%

11.94%

11.85%

10.73%

10.87%

10.93%

Leverage capital ratio

10.18%

9.89%

9.83%

9.22%

9.02%

9.08%

DEPOSITS

Total deposits of $2.1 billion at December 31, 2012 have increased from $1.9 billion as of December 31, 2011, due to the acquisition of Security Exchange Bank in the second quarter of 2012.

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

($ in millions)

$

%

$

%

$

%

$

%

$

%

Core deposits(1)

$

1,664.3

80.5

$

1,595.4

79.6

$

1,634.5

82.2

$

1,546.0

82.7

$

1,523.1

81.4

Time Deposits > $100,000

346.7

16.8

348.9

17.4

343.6

17.3

313.2

16.8

329.2

17.6

Brokered deposits

56.9

2.7

59.3

3.0

9.2

0.5

9.2

0.5

19.2

1.0

Total deposits

$

2,068.0

100.0

$

2,003.6

100.0

$

1,987.3

100.0

$

1,868.4

100.0

$

1,871.5

100.0

Quarterly rate on deposits

0.54%

0.55%

0.49%

0.66%

0.76%

(1) Core deposits are transactional, savings, and time deposits under $100,000.

NET INTEREST MARGIN

Net interest margin decreased 9 basis points to 3.63% in the fourth quarter of 2012 compared to 3.72% in the fourth quarter of 2011 and decreased 11 basis points from 3.74% in the third quarter of 2012. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.56% for the fourth quarter of 2012 compared to 3.62% for the third quarter of 2012. The decrease in net interest margin from the third quarter 2012 was the result of higher yielding assets running off as replacement assets were originated in a lower interest rate environment. Offsetting the lower yields on assets was the high volume of loan originations which resulted in an increase in net interest income for the fourth quarter of 2012 of $1.2 million, or 6.1%, when compared to the fourth quarter of 2011. Net interest income decreased $452,000, or 2.2%, when compared to the third quarter of 2012.

Net interest margin increased 9 basis points to 3.77% for the year ended December 31, 2012 compared to 3.68% for the same period in 2011. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.60% for the year ended December 31, 2012 and 3.68% for the same period in 2011. Net interest income for the year ended December 31, 2012 increased $9.6 million, or 13.5%, to $80.5 million compared to $70.9 million for the same period in 2011.

INTEREST INCOME

Total interest income for the fourth quarter of 2012 increased $62,000, or 0.3%, to $24.3 million compared to $24.2 million for the fourth quarter of 2011. Average interest-earning assets for the fourth quarter of 2012 increased $181.2 million, or 8.8%, somewhat offset by a 36 basis point decrease in the yield on average interest-earning assets due primarily to the Bank offering competitive rates on loans. In a linked-quarter comparison, interest income decreased $670,000 as the yield on average interest-earning assets decreased 16 basis points.

For the year ended December 31, 2012 total interest income increased $3.9 million, or 4.1%, to $97.6 million compared to $93.7 million for the same period in 2011. Average interest-earning assets for the year ended December 31, 2012 increased $214.7 million, or 11.1%, and was somewhat offset by a 31 basis point decrease in the yield on average interest-earning assets as mentioned above. The FDIC-assisted acquisitions of Decatur First Bank and Security Exchange Bank, as previously announced, were accretive to the fourth quarter of 2012 interest income on an after-tax basis of $53,000, or a de minimis impact to diluted earnings per share. On a year-to-date basis, the acquisitions were accretive to interest income on an after-tax basis of $1.3 million, or $0.08 to diluted earnings per share.

INTEREST EXPENSE

Interest expense for the fourth quarter of 2012 decreased $1.1 million, or 22.3%, compared to the same period in 2011 due to a 30 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $118.5 million, or 6.8%. The Bank's shift in deposit mix toward noninterest-bearing accounts, which made up 18.5% of total deposits at December 31, 2012 compared to 14.4% at December 31, 2011, contributed to the reduction in the cost of funds. On a linked-quarter basis, interest expense decreased $219,000, or 5.1%.

For the year ended December 31, 2012 interest expense decreased $5.7 million, or 24.9%, to $17.1 million compared to $22.8 million for the same period in 2011. The decrease in interest expense was attributable to a 43 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $148.0 million, or 8.9%.

NONINTEREST INCOME

On a year over year basis, noninterest income increased $10.5 million, or 67.0%, to $26.2 million for the quarter ended December 31, 2012, compared to $15.7 million in the fourth quarter of 2011. The increase in noninterest income was the result of a $10.6 million, or 132.2%, increase in mortgage banking activities over the respective periods. Income from mortgage banking activities increased due to a 143.6% increase in the December 31, 2012 pipeline to over $514 million compared to the same period a year ago. Total funded loan volume for the quarter of $768.4 million represented a 71.5% increase over the year ago quarter. Mortgage banking revenues for the fourth quarter 2012 were positively impacted due to recoveries of impaired servicing rights of $700,000, a net increase of $2.8 million compared to the third quarter of 2012.

For the year ended December 31, 2012 noninterest income increased $36.5 million, or 71.0%, to $88.0 million compared to $51.4 million for same period in 2011. The increase is largely attributable to the increase in mortgage banking activities as discussed above. SBA loans decreased $3.5 million from 2011 to 2012 as result of a decrease in the gains on sale of SBA loans and servicing rights. Offsetting the decrease in SBA is the $4 million gain on acquisition for Security Exchange Bank, which was recorded in the third quarter of 2012.

The FDIC indemnification asset is originally recorded based on a discounted amount expected to be received from the FDIC for their share of losses on covered loans. The original difference between the full amount and the discounted amount is expected to be recorded in noninterest income over the life of the contract with the FDIC. For the year ended 2012, indemnification income was $702,000. There was no indemnification income for the same period in 2011.

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter of 2012 increased $9.0 million, or 38.1%, to $32.7 million compared to $23.6 million for the same period in 2011. The increase was driven by a $7.5 million increase in salaries and employee benefits expense due to higher commission expense related to the increased mortgage banking volume, expansion of our mortgage banking footprint, as well as increased number of employees due to organic growth and acquisitions. On a linked-quarter basis, noninterest expense increased $1.3 million, or 4.2%. The increase was primarily due to a $2.3 million increase in salaries and employee benefits.

For the year ended December 31, 2012 noninterest expense increased $30.0 million, or 35.1%, to $115.4 million compared to $85.4 million for the same period in 2011. The increase is largely attributable to an increase of $22.1 million in salaries and employee benefits, professional services related to acquisition and internet services of $2.6 million and other expenses of $2.7 million.

ABOUT FIDELITY SOUTHERN CORPORATION

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 30 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 in eleven Southern states. 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 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 2011 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

FIDELITY SOUTHERN CORPORATION FINANCIAL HIGHLIGHTS (UNAUDITED)

Three Months Ended

($ in thousands, except per share and stock performance data)

December 31,

September 30,

June 30,

March 31,

December 31,

Year Ended December 31,

2012

2012

2012

2012

2011

2012

2011

RESULTS OF OPERATIONS

Net Interest Income

$

20,239

$

20,690

$

19,900

$

19,655

$

19,079

$

80,484

$

70,851

Provision for Loan Losses

5,243

3,477

950

3,750

5,300

13,420

20,325

Non-Interest Income

26,186

27,094

17,034

17,655

15,681

87,969

51,439

Non-Interest Expense

32,654

31,324

26,069

25,350

23,649

115,397

85,422

Income Tax Expense

3,088

4,816

3,511

2,894

1,979

14,309

5,145

Net Income

5,440

8,167

6,404

5,316

3,832

25,327

11,398

Preferred Stock Dividends

(823)

(823)

(823)

(823)

(824)

(3,292)

(3,293)

Net Income Available to Common Shareholders

4,617

7,344

5,581

4,493

3,008

22,035

8,105

PERFORMANCE

Earnings Per Share - Basic (1)

$

0.31

$

0.50

$

0.38

$

0.31

$

0.21

$

1.51

$

0.62

Earnings Per Share - Diluted (1)

$

0.28

$

0.44

$

0.34

$

0.28

$

0.20

$

1.34

$

0.56

Return on Average Assets

0.88

%

1.33

%

1.14

%

0.96

%

0.69

%

1.08

%

0.55

%

Return on Average Equity

11.36

%

17.93

%

14.84

%

12.67

%

9.34

%

14.19

%

7.43

%

NET INTEREST MARGIN

Interest Earning Assets

4.35

%

4.51

%

4.66

%

4.76

%

4.71

%

4.56

%

4.87

%

Cost of Funds

0.86

%

0.90

%

0.96

%

1.06

%

1.17

%

0.94

%

1.37

%

Net Interest Spread

3.49

%

3.61

%

3.70

%

3.70

%

3.54

%

3.62

%

3.50

%

Net Interest Margin

3.63

%

3.74

%

3.86

%

3.86

%

3.72

%

3.77

%

3.68

%

CAPITAL

Cash Dividends Per Share

$

$

$

$

$

0.01

$

$

0.02

Dividend Payout Ratio

%

%

%

%

4.61

%

%

3.22

%

Tier 1 Risk-Based Capital

11.86

%

11.94

%

11.68

%

11.91

%

11.85

%

11.86

%

11.85

%

Total Risk-Based Capital

13.23

%

13.41

%

13.29

%

13.66

%

13.70

%

13.23

%

13.70

%

Leverage Ratio

10.18

%

9.89

%

10.19

%

10.04

%

9.83

%

10.18

%

9.83

%

AVERAGE BALANCE SHEET

Loans, Net of Unearned

$

2,044,975

$

2,013,423

$

1,880,933

$

1,785,382

$

1,729,512

$

1,931,714

$

1,611,825

Investment Securities

174,810

188,028

198,754

239,656

273,913

200,208

228,822

Earning Assets

2,230,918

2,211,353

2,088,221

2,060,788

2,049,763

2,148,428

1,933,771

Total Assets

2,454,244

2,442,366

2,265,875

2,215,944

2,194,861

2,345,176

2,063,169

Deposits

1,653,026

1,626,290

1,559,516

1,577,682

1,576,760

1,604,323

1,499,451

Borrowings

211,385

256,616

168,000

168,639

169,145

207,035

163,879

Shareholders' Equity

190,426

181,211

173,520

168,751

162,727

178,517

153,312

STOCK PERFORMANCE

Market Price:

  Closing (1)

$

9.55

$

9.37

$

8.41

$

6.46

$

5.73

$

9.55

$

5.73

  High Close (1)

$

10.33

$

9.84

$

8.85

$

6.70

$

6.55

$

10.33

$

8.85

  Low Close (1)

$

8.56

$

8.12

$

6.38

$

5.56

$

5.42

$

5.56

$

5.75

Daily Average Trading Volume

16,418

20,882

42,547

8,098

4,812

21,683

6,796

Book Value Per Common Share (1)

$

9.85

$

9.60

$

9.07

$

8.63

$

8.59

$

9.85

$

8.59

Price to Book Value

0.97

0.98

0.93

0.75

0.67

0.97

0.67

Tangible Book Value Per Common Share (1)

9.68

9.42

8.90

8.62

8.43

9.68

8.43

Price to Tangible Book Value

0.99

0.99

0.94

0.75

0.68

0.99

0.68

(1) Adjusted for stock dividends and retroactive application on shares outstanding.

FIDELITY SOUTHERN CORPORATION FINANCIAL HIGHLIGHTS continued (UNAUDITED)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

Year Ended December 31,

($ in thousands)

2012

2012

2012

2012

2011

2012

2011

ASSET QUALITY

Total Non-Performing Loans

$

83,681

$

90,145

$

90,908

$

74,816

$

66,801

$

83,681

$

66,801

Total Non-Performing Assets

125,062

136,439

134,627

101,221

98,634

125,062

98,634

Loans 90 Days Past Due and Still Accruing

111

290

116

116

Including Covered Loans:

  Non-Performing Loans as a % of Loans

4.71

%

5.17

%

5.20

%

4.50

%

4.11

%

4.71

%

4.11

%

  Non-Performing assets as a % of Loans Plus ORE

6.88

%

7.62

%

7.52

%

6.01

%

5.96

%

6.88

%

5.96

%

  ALL to Non-Performing Loans

40.61

%

34.49

%

29.96

%

39.29

%

41.85

%

40.61

%

41.85

%

  Net Charge-Offs During the Period to Average Loans

0.81

%

0.27

%

0.70

%

0.58

%

1.54

%

0.60

%

1.38

%

  ALL as a % of Loans, at End of Period

1.92

%

1.78

%

1.55

%

1.76

%

1.72

%

1.92

%

1.72

%

Excluding Covered Loans:

  Non-Performing Loans as a % of Loans

3.75

%

3.75

%

3.81

%

3.97

%

3.91

%

3.75

%

3.91

%

  Non-Performing assets as a % of Loans Plus ORE

4.74

%

5.12

%

5.29

%

5.12

%

5.28

%

4.74

%

5.28

%

  ALL to Non-Performing Loans

50.89

%

50.89

%

43.70

%

46.57

%

46.19

%

50.89

%

46.19

%

  Net Charge-Offs During the Period to Average Loans

0.44

%

0.22

%

0.74

%

0.59

%

1.76

%

0.51

%

1.45

%

  ALL as a % of Loans, at End of Period

2.01

%

1.91

%

1.65

%

1.84

%

1.81

%

2.01

%

1.81

%

OTHER INFORMATION

Non-Interest Income to Revenues

56.40

%

56.70

%

46.12

%

47.32

%

45.11

%

52.22

%

42.06

%

End of Period Shares Outstanding (1)

14,780,175

14,626.323

14,557.157

14,505.212

14,068,747

14,780,175

14,068,747

Weighted Average Shares Outstanding - Basic (1)

14,711,899

14,579,100

14,530,415

14,407,568

14,011,146

14,557,728

13,042,429

Weighted Average Shares Outstanding - Diluted (1)

16,686,123

16,510,647

16,309.298

15,870.668

15,397,538

16,412,877

14,587,300

Full-Time Equivalent Employees

774.2

752.6

701.9

656.5

626.4

774.2

626.4

(1)  Adjusted for stock dividends and retroactive application on shares outstanding.

FIDELITY SOUTHERN CORPORATION CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

Year Ended December 31,

($ in thousands, except per share data)

2012

2012

2012

2012

2011

2012

2011

INTEREST INCOME

Loans, including fees

$

23,121

$

23,724

$

22,902

$

22,738

$

22,396

$

92,485

$

86,698

Investment securities

1,141

1,208

1,189

1,506

1,783

5,044

6,777

Federal funds sold and bank deposits

5

6

4

18

26

33

225

Total interest income

24,267

24,938

24,095

24,262

24,205

97,562

93,700

INTEREST EXPENSE

Deposits

2,722

2,686

2,658

3,007

3,519

11,073

16,309

Short-term borrowings

425

454

253

174

173

1,306

685

Subordinated debt

881

1,090

1,132

1,139

1,129

4,242

4,494

Other long-term debt

18

152

287

305

457

1,361

Total interest expense

4,028

4,248

4,195

4,607

5,126

17,078

22,849

Net interest income

20,239

20,690

19,900

19,655

19,079

80,484

70,851

Provision for loan losses

5,243

3,477

950

3,750

5,300

13,420

20,325

Net interest income after provision for loan losses

14,996

17,213

18,950

15,905

13,779

67,064

50,526

NONINTEREST INCOME

Service charges on deposit accounts

1,122

1,259

1,180

1,133

1,148

4,694

4,143

Other fees and charges

883

841

852

784

684

3,360

2,613

Mortgage banking activities

18,653

14,755

10,840

12,084

8,034

56,332

24,663

Indirect lending activities

1,477

2,164

1,610

1,163

1,581

6,414

5,891

SBA lending activities

715

2,107

1,269

853

1,871

4,944

8,463

Bank owned life insurance

323

330

332

322

99

1,307

1,315

Securities gains

4

303

237

307

1,078

Other

3,013

5,634

951

1,013

2,027

10,611

3,273

Total noninterest income

26,186

27,094

17,034

17,655

15,681

87,969

51,439

NONINTEREST EXPENSE

Salaries and employee benefits

20,886

18,589

15,325

14,849

13,410

69,649

47,525

Furniture and equipment

1,046

1,032

994

977

795

4,049

3,075

Net occupancy

1,354

1,360

1,280

1,210

1,115

5,204

4,504

Communication

647

739

641

619

522

2,646

2,158

Professional and other services

2,043

1,992

2,081

2,141

1,571

8,257

5,690

Cost of operation of other real estate

2,510

2,828

1,702

1,737

2,329

8,777

7,896

FDIC insurance premiums

493

479

474

471

445

1,917

2,581

Other

3,675

4,305

3,572

3,346

3,462

14,898

11,993

Total noninterest expense

32,654

31,324

26,069

25,350

23,649

115,397

85,422

Income before income tax expense

8,528

12,983

9,915

8,210

5,811

39,636

16,543

Income tax expense

3,088

4,816

3,511

2,894

1,979

14,309

5,145

NET INCOME

5,440

8,167

6,404

5,316

3,832

25,327

11,398

Preferred stock dividends and discount accretion

(823)

(823)

(823)

(823)

(824)

(3,292)

(3,293)

Net income available to common equity

$

4,617

$

7,344

$

5,581

$

4,493

$

3,008

$

22,035

$

8,105

EARNINGS PER SHARE: (1)

Basic earnings per share

$

0.31

$

0.50

$

0.38

$

0.31

$

0.21

$

1.51

$

0.62

Diluted earnings per share

$

0.28

$

0.44

$

0.34

$

0.28

$

0.20

$

1.34

$

0.56

Weighted average common shares outstanding-basic

14,711,899

14,579,100

14,530,415

14,407,568

14,011,146

14,557,728

13,042,429

Weighted average common shares outstanding-diluted

16,686,123

16,510,647

16,309,298

15,870,668

15,397,538

16,412,877

14,587,300

(1) Adjusted for stock dividends and retroactive application on shares outstanding

FIDELITY SOUTHERN CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($ in thousands, except share data)

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

ASSETS

Cash and cash equivalents

$

49,020

$

47,366

$

38,333

$

38,604

$

57,284

Investment securities available-for-sale

154,367

165,598

193,251

183,611

261,419

Investment securities held-to-maturity

6,162

6,842

7,471

8,185

8,876

Investment in FHLB stock

7,330

9,760

8,185

7,623

7,582

Loans held-for-sale

304,094

259,659

214,335

175,736

133,849

Loans

1,777,031

1,745,185

1,746,204

1,657,972

1,623,871

Allowance for loan losses

(33,982)

(31,476)

(27,205)

(29,282)

(27,956)

Loans, net of allowance for loan losses

1,743,049

1,713,709

1,718,999

1,628,690

1,595,915

FDIC indemnification asset

20,074