Fidelity National Corporation Reports First Quarter 2001 Results

Apr 23, 2001, 01:00 ET from Fidelity National Corporation

    ATLANTA, April 23 /PRNewswire Interactive News Release/ --
 Fidelity National Corporation (Nasdaq:   LION) ("Fidelity") reported a net loss
 of $17,000 for the first quarter of 2001 compared to net income of $1,478,000
 for the same period of 2000.  Basic and diluted earnings per share for the
 first quarter of 2001 were $.00 compared to $.17 for the first quarter of
 2000.
     As of March 31, 2001, total assets were $998 million, compared to
 $887 million at March 31, 2000, an increase of 12.5%.  In other year-ago
 comparisons, total loans increased 13.0% to $827 million; and deposits
 increased 12.3% to $827 million.
     Fidelity Chairman James B. Miller, Jr. said "The decline in first quarter
 earnings was attributable to a significant decline in net interest margin, an
 increase in the provision for loan losses and a $1.4 million increase in
 professional and consulting fees."  He noted that while Fidelity had grown
 12.5% since March 31, 2000, noninterest expense, excluding professional fees
 related to resolve trust issues, was virtually unchanged for the comparable
 quarter of 2000.  This points to Fidelity's success with controlling costs.
     Total interest income for the first quarter of 2001 increased 10.6% or
 $2.0 million over the comparable quarter of 2000.  The increase in interest
 income on average earning assets was attributable to volume increases, as the
 first quarter of 2001 yield on average earning assets at 9.13% approximated
 the yield for the comparable period in 2000.
     Interest expense for the first quarter of 2001 increased 31.6% or
 $2.9 million over the same quarter in 2000.  While the increase was primarily
 attributable to increased volume, approximately $854,000 was attributable to a
 96 basis point increase in the cost of interest bearing liabilities.  As a
 result of the increase in the cost of funds, net interest income for the first
 quarter of 2001 declined $949,000 from the comparable period in 2000.
     First quarter of 2001 net charge-offs increased $81,000 or 4.9% when
 compared to the same period in 2000.  The ratio of net charge-offs to average
 loans outstanding for the first quarter declined to .85% compared to .97% for
 the same quarter of 2000.  The first quarter provision for loan losses was
 $1.8 million compared to $1.5 million for the same period in 2000.
     Noninterest income for the first quarter of 2001 increased $130,000 when
 compared to the same period of 2000.  During 2001, increases in most every
 category of noninterest income were substantially offset by declines in trust
 fee income and brokerage revenues.  The decline in trust fee income was
 primarily attributable to Fidelity's exiting certain lines of trust business.
     Noninterest expense for the first quarter of 2001 increased 12.5% or
 $1.3 million compared to the first quarter of 2000.  During the first quarter
 of 2001, Fidelity incurred approximately $1.3 million in expenses for
 consulting and other professional services to resolve Trust Department issues.
 Fidelity anticipates that additional costs of approximately $400,000 will be
 incurred during the second quarter of 2001 to address these issues.
     This release contains certain forward-looking statements including
 statements relating to present or future trends or factors generally affecting
 the banking industry and specifically affecting Fidelity's operations, markets
 and products.  Without limiting the foregoing, the words "believes,"
 "anticipates," "intends," "expects" or similar expressions are intended to
 identify forward-looking statements.  These forward-looking statements involve
 certain risks and uncertainties.  Actual results could differ materially from
 those projected for many reasons, including, without limitation, changing
 events and trends that have influenced Fidelity's assumptions, but that are
 beyond Fidelity's control.  These trends and events include (i) changes in the
 interest rate environment which may reduce margins, (ii) non-achievement of
 expected growth, (iii) less favorable than anticipated changes in the national
 and local business environment and securities markets, (iv) adverse changes in
 the regulatory requirements affecting Fidelity,  (v) greater competitive
 pressures among financial institutions in Fidelity's market and (vi) greater
 loan losses than historic levels.   Additional information and other factors
 that could affect future financial results are included in Fidelity's filings
 with the Securities and Exchange Commission.
     Fidelity National Corporation, through its operating companies, Fidelity
 National Bank and Fidelity National Capital Investors, Inc., provides a wide
 range of banking, trust, mortgage, and investment brokerage services through
 19 full service branches in Atlanta, Georgia.  Mortgage, construction, and
 automobile loans are also provided through a loan production office in
 Jacksonville, Florida.
 
 
                      FIDELITY NATIONAL CORPORATION
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (UNAUDITED)
 
                                                      FOR THE QUARTERS ENDED
                                                            MARCH 31,
                                                        2001           2000
 
     INTEREST INCOME
        LOANS, INCLUDING FEES                       $18,913,100    $17,100,743
        INVESTMENT SECURITIES (TAXABLE)               1,336,447      1,250,560
        FEDERAL FUNDS SOLD                              147,362         80,966
        DEPOSITS WITH OTHER BANKS                         6,583         14,213
           TOTAL INTEREST INCOME                     20,403,492     18,446,482
 
     INTEREST EXPENSE
       DEPOSITS                                      10,362,918      7,817,826
       OTHER SHORT-TERM BORROWINGS                      538,232        823,930
       TRUST PREFERRED SECURITIES                       567,410         28,821
       LONG-TERM DEBT                                   646,722        538,893
           TOTAL INTEREST EXPENSE                    12,115,282      9,209,470
 
     NET INTEREST INCOME                              8,288,210      9,237,012
 
     PROVISION FOR LOAN LOSSES                        1,800,000      1,500,000
 
     NET INTEREST INCOME AFTER
       PROVISION FOR LOAN LOSSES                      6,488,210      7,737,012
 
     NONINTEREST INCOME
       SERVICE CHARGES/DEPOSITS                         803,752        724,452
       CREDIT CARD FEES                               1,172,745        974,195
       MORTGAGE BANKING ACTIVITIES                      370,657        395,182
       BROKERAGE ACTIVITIES                             533,654        714,236
       INDIRECT LENDING ACTIVITIES                    1,263,750      1,119,411
       TRUST ACTIVITIES                                  74,232        388,231
       SECURITIES GAINS, NET                             61,922              -
       OTHER OPERATING INCOME                           686,778        521,891
         TOTAL NONINTEREST INCOME                     4,967,490      4,837,598
 
     NONINTEREST EXPENSE
       SALARIES/EMPLOYEE BENEFITS                     5,041,249      5,134,992
       FURNITURE AND EQUIPMENT                          829,822        695,140
       NET OCCUPANCY                                    926,084        834,558
       CREDIT CARD PROCESSING                           896,378        853,018
       COMMUNICATION EXPENSES                           565,741        605,698
       PROFESSIONAL AND OTHER SERVICES                1,887,916        528,011
       REGULATORY ASSESSMENTS                            87,008        135,864
       MORTGAGE SERVICING RIGHTS
        AMORTIZATION                                        ---            ---
       OTHER OPERATING EXPENSES                       1,353,197      1,511,926
         TOTAL NONINTEREST EXPENSE                   11,587,395     10,299,207
 
     (LOSS) INCOME BEFORE INCOME TAXES                 (131,695)     2,275,403
 
     INCOME TAX (BENEFIT) EXPENSE                      (114,476)       797,132
 
     NET (LOSS) INCOME                                 $(17,219)    $1,478,271
 
     BASIC EARNINGS PER SHARE                              $---          $0.17
 
     DILUTED EARNINGS PER SHARE                            $---          $0.17
 
     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING                              8,781,628      8,780,609
 
 
 
                                FIDELITY NATIONAL CORPORATION
                              CONSOLIDATED BALANCE SHEETS
                                         (UNAUDITED)
 
 
 
                                       MARCH 31,    DECEMBER 31,     MARCH 31,
       ASSETS                             2001            2000         2000
 
       CASH AND DUE FROM BANKS         $28,769,273   $29,891,575   $29,686,002
       FEDERAL FUNDS SOLD               32,469,348    13,125,196    15,095,486
       INVESTMENTS AVAILABLE-FOR-SALE   46,719,012    52,072,109    42,400,674
       INVESTMENTS HELD-TO-MATURITY     29,116,197    33,974,415    35,338,028
       LOANS HELD-FOR-SALE              56,022,460    22,589,939    27,367,875
       LOANS, NET OF UNEARNED INCOME   771,127,563   763,006,975   704,420,057
       ALLOWANCE FOR LOAN LOSSES       (10,572,426)  (10,503,527)  (10,103,189)
       LOANS, NET                      760,555,137   752,503,448   694,316,868
       PREMISES AND EQUIPMENT           17,948,468    18,547,668    18,070,257
       OTHER REAL ESTATE                 1,548,783     2,035,345     1,390,302
       ACCRUED INTEREST RECEIVABLE       6,863,097     7,389,464     5,745,119
       OTHER ASSETS                     17,578,850    16,001,491    17,142,235
 
                 TOTAL ASSETS         $997,590,625  $948,130,650  $886,552,846
 
 
       LIABILITIES
 
       DEPOSIT LIABILITIES:
           NONINTEREST BEARING DEMAND $108,781,007  $116,727,168  $107,684,252
           INTEREST BEARING DEMAND/
              MONEY MARKET             126,458,526   128,776,867   161,866,433
           SAVINGS                      77,209,932    63,637,807    25,930,341
           TIME DEPOSITS, $100,000
            AND OVER                   158,576,584   153,464,274   158,689,629
           OTHER TIME DEPOSITS         356,217,289   337,934,539   282,491,584
                TOTAL DEPOSIT
                 LIABILITES            827,243,338   800,540,655   736,662,239
 
       FHLB BORROWINGS - SHORT - TERM   20,000,000    20,000,000    26,000,000
       FED FUNDS PURCHASED/SECURITIES
        SOLD/
          OTHER SHORT-TERM BORROWINGS   12,565,161    12,218,661    21,287,988
       TRUST PREFERRED SECURITIES       20,500,000    20,500,000    10,500,000
       OTHER LONG-TERM DEBT             44,000,000    29,000,000    29,000,000
       ACCRUED INTEREST PAYABLE          6,950,403     5,998,013     4,106,142
       OTHER LIABILITES                  8,285,379     1,916,306     3,529,718
                 TOTAL LIABILITIES     939,544,281   890,173,635   831,086,087
 
       SHAREHOLDERS' EQUITY
 
       PREFERRED STOCK                         ---           ---           ---
       COMMON STOCK                     39,816,731    39,816,731    39,816,731
       TREASURY STOCK                      (69,325)      (69,325)      (69,325)
       ACCUMULATED OTHER
        COMPREHENSIVE
            INCOME (LOSS)                  381,831      (163,800)   (1,621,970)
       RETAINED EARNINGS                17,917,107    18,373,409    17,341,323
                 TOTAL SHAREHOLDERS'
                  EQUITY                58,046,344    57,957,015    55,466,759
 
                 TOTAL LIABILITIES
                  AND EQUITY          $997,590,625  $948,130,650  $886,552,846
 
 
       BOOK VALUE PER SHARE                  $6.61         $6.60         $6.32
       SHARES OF COMMON STOCK
        OUTSTANDING                      8,781,628     8,781,628     8,781,628
 
 
     Contact:   Martha Fleming, Howard Griffith
                Fidelity National (404)-240-1504
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X74455758
 
 

SOURCE Fidelity National Corporation
    ATLANTA, April 23 /PRNewswire Interactive News Release/ --
 Fidelity National Corporation (Nasdaq:   LION) ("Fidelity") reported a net loss
 of $17,000 for the first quarter of 2001 compared to net income of $1,478,000
 for the same period of 2000.  Basic and diluted earnings per share for the
 first quarter of 2001 were $.00 compared to $.17 for the first quarter of
 2000.
     As of March 31, 2001, total assets were $998 million, compared to
 $887 million at March 31, 2000, an increase of 12.5%.  In other year-ago
 comparisons, total loans increased 13.0% to $827 million; and deposits
 increased 12.3% to $827 million.
     Fidelity Chairman James B. Miller, Jr. said "The decline in first quarter
 earnings was attributable to a significant decline in net interest margin, an
 increase in the provision for loan losses and a $1.4 million increase in
 professional and consulting fees."  He noted that while Fidelity had grown
 12.5% since March 31, 2000, noninterest expense, excluding professional fees
 related to resolve trust issues, was virtually unchanged for the comparable
 quarter of 2000.  This points to Fidelity's success with controlling costs.
     Total interest income for the first quarter of 2001 increased 10.6% or
 $2.0 million over the comparable quarter of 2000.  The increase in interest
 income on average earning assets was attributable to volume increases, as the
 first quarter of 2001 yield on average earning assets at 9.13% approximated
 the yield for the comparable period in 2000.
     Interest expense for the first quarter of 2001 increased 31.6% or
 $2.9 million over the same quarter in 2000.  While the increase was primarily
 attributable to increased volume, approximately $854,000 was attributable to a
 96 basis point increase in the cost of interest bearing liabilities.  As a
 result of the increase in the cost of funds, net interest income for the first
 quarter of 2001 declined $949,000 from the comparable period in 2000.
     First quarter of 2001 net charge-offs increased $81,000 or 4.9% when
 compared to the same period in 2000.  The ratio of net charge-offs to average
 loans outstanding for the first quarter declined to .85% compared to .97% for
 the same quarter of 2000.  The first quarter provision for loan losses was
 $1.8 million compared to $1.5 million for the same period in 2000.
     Noninterest income for the first quarter of 2001 increased $130,000 when
 compared to the same period of 2000.  During 2001, increases in most every
 category of noninterest income were substantially offset by declines in trust
 fee income and brokerage revenues.  The decline in trust fee income was
 primarily attributable to Fidelity's exiting certain lines of trust business.
     Noninterest expense for the first quarter of 2001 increased 12.5% or
 $1.3 million compared to the first quarter of 2000.  During the first quarter
 of 2001, Fidelity incurred approximately $1.3 million in expenses for
 consulting and other professional services to resolve Trust Department issues.
 Fidelity anticipates that additional costs of approximately $400,000 will be
 incurred during the second quarter of 2001 to address these issues.
     This release contains certain forward-looking statements including
 statements relating to present or future trends or factors generally affecting
 the banking industry and specifically affecting Fidelity's operations, markets
 and products.  Without limiting the foregoing, the words "believes,"
 "anticipates," "intends," "expects" or similar expressions are intended to
 identify forward-looking statements.  These forward-looking statements involve
 certain risks and uncertainties.  Actual results could differ materially from
 those projected for many reasons, including, without limitation, changing
 events and trends that have influenced Fidelity's assumptions, but that are
 beyond Fidelity's control.  These trends and events include (i) changes in the
 interest rate environment which may reduce margins, (ii) non-achievement of
 expected growth, (iii) less favorable than anticipated changes in the national
 and local business environment and securities markets, (iv) adverse changes in
 the regulatory requirements affecting Fidelity,  (v) greater competitive
 pressures among financial institutions in Fidelity's market and (vi) greater
 loan losses than historic levels.   Additional information and other factors
 that could affect future financial results are included in Fidelity's filings
 with the Securities and Exchange Commission.
     Fidelity National Corporation, through its operating companies, Fidelity
 National Bank and Fidelity National Capital Investors, Inc., provides a wide
 range of banking, trust, mortgage, and investment brokerage services through
 19 full service branches in Atlanta, Georgia.  Mortgage, construction, and
 automobile loans are also provided through a loan production office in
 Jacksonville, Florida.
 
 
                      FIDELITY NATIONAL CORPORATION
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (UNAUDITED)
 
                                                      FOR THE QUARTERS ENDED
                                                            MARCH 31,
                                                        2001           2000
 
     INTEREST INCOME
        LOANS, INCLUDING FEES                       $18,913,100    $17,100,743
        INVESTMENT SECURITIES (TAXABLE)               1,336,447      1,250,560
        FEDERAL FUNDS SOLD                              147,362         80,966
        DEPOSITS WITH OTHER BANKS                         6,583         14,213
           TOTAL INTEREST INCOME                     20,403,492     18,446,482
 
     INTEREST EXPENSE
       DEPOSITS                                      10,362,918      7,817,826
       OTHER SHORT-TERM BORROWINGS                      538,232        823,930
       TRUST PREFERRED SECURITIES                       567,410         28,821
       LONG-TERM DEBT                                   646,722        538,893
           TOTAL INTEREST EXPENSE                    12,115,282      9,209,470
 
     NET INTEREST INCOME                              8,288,210      9,237,012
 
     PROVISION FOR LOAN LOSSES                        1,800,000      1,500,000
 
     NET INTEREST INCOME AFTER
       PROVISION FOR LOAN LOSSES                      6,488,210      7,737,012
 
     NONINTEREST INCOME
       SERVICE CHARGES/DEPOSITS                         803,752        724,452
       CREDIT CARD FEES                               1,172,745        974,195
       MORTGAGE BANKING ACTIVITIES                      370,657        395,182
       BROKERAGE ACTIVITIES                             533,654        714,236
       INDIRECT LENDING ACTIVITIES                    1,263,750      1,119,411
       TRUST ACTIVITIES                                  74,232        388,231
       SECURITIES GAINS, NET                             61,922              -
       OTHER OPERATING INCOME                           686,778        521,891
         TOTAL NONINTEREST INCOME                     4,967,490      4,837,598
 
     NONINTEREST EXPENSE
       SALARIES/EMPLOYEE BENEFITS                     5,041,249      5,134,992
       FURNITURE AND EQUIPMENT                          829,822        695,140
       NET OCCUPANCY                                    926,084        834,558
       CREDIT CARD PROCESSING                           896,378        853,018
       COMMUNICATION EXPENSES                           565,741        605,698
       PROFESSIONAL AND OTHER SERVICES                1,887,916        528,011
       REGULATORY ASSESSMENTS                            87,008        135,864
       MORTGAGE SERVICING RIGHTS
        AMORTIZATION                                        ---            ---
       OTHER OPERATING EXPENSES                       1,353,197      1,511,926
         TOTAL NONINTEREST EXPENSE                   11,587,395     10,299,207
 
     (LOSS) INCOME BEFORE INCOME TAXES                 (131,695)     2,275,403
 
     INCOME TAX (BENEFIT) EXPENSE                      (114,476)       797,132
 
     NET (LOSS) INCOME                                 $(17,219)    $1,478,271
 
     BASIC EARNINGS PER SHARE                              $---          $0.17
 
     DILUTED EARNINGS PER SHARE                            $---          $0.17
 
     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING                              8,781,628      8,780,609
 
 
 
                                FIDELITY NATIONAL CORPORATION
                              CONSOLIDATED BALANCE SHEETS
                                         (UNAUDITED)
 
 
 
                                       MARCH 31,    DECEMBER 31,     MARCH 31,
       ASSETS                             2001            2000         2000
 
       CASH AND DUE FROM BANKS         $28,769,273   $29,891,575   $29,686,002
       FEDERAL FUNDS SOLD               32,469,348    13,125,196    15,095,486
       INVESTMENTS AVAILABLE-FOR-SALE   46,719,012    52,072,109    42,400,674
       INVESTMENTS HELD-TO-MATURITY     29,116,197    33,974,415    35,338,028
       LOANS HELD-FOR-SALE              56,022,460    22,589,939    27,367,875
       LOANS, NET OF UNEARNED INCOME   771,127,563   763,006,975   704,420,057
       ALLOWANCE FOR LOAN LOSSES       (10,572,426)  (10,503,527)  (10,103,189)
       LOANS, NET                      760,555,137   752,503,448   694,316,868
       PREMISES AND EQUIPMENT           17,948,468    18,547,668    18,070,257
       OTHER REAL ESTATE                 1,548,783     2,035,345     1,390,302
       ACCRUED INTEREST RECEIVABLE       6,863,097     7,389,464     5,745,119
       OTHER ASSETS                     17,578,850    16,001,491    17,142,235
 
                 TOTAL ASSETS         $997,590,625  $948,130,650  $886,552,846
 
 
       LIABILITIES
 
       DEPOSIT LIABILITIES:
           NONINTEREST BEARING DEMAND $108,781,007  $116,727,168  $107,684,252
           INTEREST BEARING DEMAND/
              MONEY MARKET             126,458,526   128,776,867   161,866,433
           SAVINGS                      77,209,932    63,637,807    25,930,341
           TIME DEPOSITS, $100,000
            AND OVER                   158,576,584   153,464,274   158,689,629
           OTHER TIME DEPOSITS         356,217,289   337,934,539   282,491,584
                TOTAL DEPOSIT
                 LIABILITES            827,243,338   800,540,655   736,662,239
 
       FHLB BORROWINGS - SHORT - TERM   20,000,000    20,000,000    26,000,000
       FED FUNDS PURCHASED/SECURITIES
        SOLD/
          OTHER SHORT-TERM BORROWINGS   12,565,161    12,218,661    21,287,988
       TRUST PREFERRED SECURITIES       20,500,000    20,500,000    10,500,000
       OTHER LONG-TERM DEBT             44,000,000    29,000,000    29,000,000
       ACCRUED INTEREST PAYABLE          6,950,403     5,998,013     4,106,142
       OTHER LIABILITES                  8,285,379     1,916,306     3,529,718
                 TOTAL LIABILITIES     939,544,281   890,173,635   831,086,087
 
       SHAREHOLDERS' EQUITY
 
       PREFERRED STOCK                         ---           ---           ---
       COMMON STOCK                     39,816,731    39,816,731    39,816,731
       TREASURY STOCK                      (69,325)      (69,325)      (69,325)
       ACCUMULATED OTHER
        COMPREHENSIVE
            INCOME (LOSS)                  381,831      (163,800)   (1,621,970)
       RETAINED EARNINGS                17,917,107    18,373,409    17,341,323
                 TOTAL SHAREHOLDERS'
                  EQUITY                58,046,344    57,957,015    55,466,759
 
                 TOTAL LIABILITIES
                  AND EQUITY          $997,590,625  $948,130,650  $886,552,846
 
 
       BOOK VALUE PER SHARE                  $6.61         $6.60         $6.32
       SHARES OF COMMON STOCK
        OUTSTANDING                      8,781,628     8,781,628     8,781,628
 
 
     Contact:   Martha Fleming, Howard Griffith
                Fidelity National (404)-240-1504
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X74455758
 
 SOURCE  Fidelity National Corporation