Fidelity Southern Corporation Earns $6.5 Million In First Quarter

News provided by

Fidelity Southern Corporation

Apr 18, 2013, 01:31 ET

ATLANTA, April 18, 2013 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ: LION), holding company for Fidelity Bank (the "Bank"), reported net income of $6.5 million for the first quarter of 2013 compared to $5.4 million for the fourth quarter of 2012 and $5.3 million for the first quarter of 2012. After accounting for the preferred dividend, basic and diluted earnings per share for the first quarter of 2013 were $0.38 and $0.33, respectively, which compared to basic and diluted earnings per share of $0.31 and $0.27 in the fourth quarter of 2012 and $0.31 and $0.28 in the first quarter of 2012, respectively.

Fidelity's Chairman, Jim Miller, said, "The Company's core operating earnings, including indirect automobile lending and home mortgages, continue strong and provide us with a strong competitive foundation in what is still a challenging market made more so by an artificially low interest rate environment. Our focus on the Golden Rule still anchors our efforts."




















For the Quarter Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




(in thousands)



Net income

$

6,491

$

5,440

$

8,167

$

6,404

$

5,316

Income tax expense

3,631

3,088

4,816

3,511

2,894

Provision for loan losses

3,476

5,243

3,477

950

3,750

Write-down of ORE

1,263

1,152

1,452

1,138

948

Other cost of ORE operations

940

1,433

1,324

564

789

Pre-tax, pre-credit related earnings

15,801

16,356

19,236

12,567

13,697

Less security gains

—

—

(4)

—

(303)

Less acquisition gain

—

—

(4,012)

—

(206)

Less accretion of FDIC indemnification asset

(138)

(150)

(285)

(96)

(171)

Core operating earnings (1)

$

15,663

$

16,206

$

14,935

$

12,471

$

13,017

(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 following table provides a summary of the allowance for loan losses for the non-covered loan and covered loan portfolios as of March 31, 2013:















Three Months Ended March 31, 2013

Non-covered loans

Covered loans

Total



(in thousands)

Balance, beginning of period

$

31,830

$

2,152

$

33,982

Provision for loan losses before benefit attributable to FDIC loss share agreements

3,450

130

3,580

Benefits attributable to FDIC loss share agreements

—

(104)

(104)

          Net provision for loan losses

3,450

26

3,476

     Increase in FDIC loss share receivable

—

104

104

     Loans charged-off

(4,330)

—

(4,330)

     Recoveries

678

—

678

Balance, end of period

$

31,628

$

2,282

$

33,910

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. Loans that do not fall into the covered loan category are considered to be non-covered. 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:













March 31,
2013

December 31,
2012

March 31,
2012


($ in thousands)

Net charge-offs

$

3,652

$

3,670

$

2,424

Net charge-off ratio

0.86

%

0.81

%

0.59

%

Provision for loan losses - Non-Covered Loans

$

3,450

$

4,666

$

3,750

Net impairment provision - Covered Loans

26

577

—

Total provision expense

$

3,476

$

5,243

$

3,750

The decrease in provision expense for the first quarter of 2013 compared to the fourth quarter of 2012 was primarily due to a reduction in charge-offs and improved credit quality indicators.

Net charge-offs increased $1.2 million for the first three months of 2013 to $3.7 million compared to $2.4 million for the same period of 2012 primarily due to the default and charge-off of one commercial loan during the first quarter of 2013. For the first three months of 2013, the ratio of net-charge offs to average loans outstanding was 0.86% compared to 0.59% for the same period of 2012. Non-covered provision expense decreased $300,000 for the first three months of 2013 to $3.5 million compared to $3.8 million for the same period of 2012 primarily as a result of improvement in the outstanding classified loan portfolio.

The allowance for loan losses at March 31, 2013 was $33.9 million, or 1.95% of total loans, compared to an allowance of $34.0 million, or 2.01% of total loans, at December 31, 2012, and $29.3 million, or 1.84% of total loans, at March 31, 2012.

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.





























March 31,
2013

December 31,
2012

March 31,
2012

Including Covered Loans

Excluding Covered Loans

Including Covered Loans

Excluding Covered Loans

Including Covered Loans

Excluding Covered Loans




($ in thousands)



Nonperforming loans

$

81,740

$

52,220

$

83,681

$

57,713

$

74,816

$

62,872

Classified assets

112,036

105,082

114,857

108,860

111,894

110,586

Allowance for loan losses as a percentage of total loans

1.86

%

1.95

%

1.92

%

2.01

%

1.76

%

1.84

%

Classified items ratio

41.98

%

39.38

%

44.17

%

41.87

%

47.78

%

47.22

%

Nonperforming assets ratio

6.55

%

4.37

%

6.88

%

4.74

%

6.01

%

5.12

%

ORE, net of reserves, decreased $805,000 to $39.0 million at March 31, 2013, compared to $39.8 million at December 31, 2012 primarily due to $1.2 million in write-downs for the first quarter of 2013. During the first quarter of 2013, $6.0 million of ORE assets were sold while $6.7 million were added to ORE. Excluding covered assets, ORE sales were $3.8 million and additions were $5.9 million for the quarter.

CAPITAL

The following table details the Company's and Bank's capital position at March 31, 2013 and December 31, 2012: 











Fidelity Southern Corporation

Fidelity Bank

March 31,
2013

December 31,
2012

March 31,
2013

December 31,
2012

Tier 1 risk-based capital ratio

12.22%

12.06%

10.95%

10.92%

Total risk-based capital ratio

13.48%

13.43%

12.68%

12.65%

Leverage capital ratio

10.51%

10.18%

9.43%

9.22%

DEPOSITS

Total deposits of $2.058 billion at March 31, 2013 have increased from $1.868 billion as of March 31, 2012, due primarily to the acquisition of Security Exchange Bank in the second quarter of 2012 and the Bank's continued efforts to aggressively pursue core deposits. Total deposits, at March 31, 2013, decreased $9.8 million from December 31, 2012 due to a $15.1 million decrease in brokered deposits partially offset by a $5.3 million increase in retail deposits.





























March 31,
2013

December 31,
2012

September 30,
2012

June 30,

2012

March 31,
2012

$

%

$

%

$

%

$

%

$

%







($ in millions)







Core deposits(1)

$

1,659.7

80.6%

$

1,664.4

80.5%

$

1,595.4

79.6%

$

1,634.5

82.2%

$

1,546.0

82.7%

Time Deposits > $100,000

356.7

17.4

346.7

16.8

348.9

17.4

343.6

17.3

313.2

16.8

Brokered deposits

41.8

2.0

56.9

2.7

59.3

3.0

9.2

0.5

9.2

0.5

Total deposits

$

2,058.2

100.0%

$

2,068.0

100.0%

$

2,003.6

100.0%

$

1,987.3

100.0%

$

1,868.4

100.0%

Quarterly rate on deposits

0.52%

0.54%

0.55%

0.49%

0.66%


















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



NET INTEREST MARGIN

Net interest margin in the first quarter of 2013 was 3.77%, a 9 basis point decrease from the same quarter a year ago and a 14 basis point increase from the fourth quarter 2012. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.50% for the first quarter of 2013 compared to 3.56% for the fourth quarter of 2012. The increase in net interest margin from the fourth quarter 2012 was primarily the result of cash flow revaluations for acquired loans during each period that showed an increase in expected cash flows that is recognized as an adjustment to the yield. Offsetting the lower yields on assets was the high volume of loan originations which resulted in an increase in net interest income for the first quarter of 2013 of $1.4 million, or 7.2%, when compared to the first quarter of 2012 and an increase of $837,000, or 4.1%, when compared to the fourth quarter of 2012.

INTEREST INCOME

Total interest income for the first quarter of 2013 increased $713,000, or 2.9%, to $25.0 million compared to $24.3 million for the first quarter of 2012. Average interest-earning assets for the first quarter of 2013 increased $218.2 million, or 10.6%, somewhat offset by a 41 basis point a decrease in the yield on average interest-earning assets due primarily to the Bank offering competitive rates on loans and deposits. In a linked-quarter comparison, interest income increased $708,000 primarily due to an increase in loan income as the yield on average interest-earning assets increased 20 basis points.

INTEREST EXPENSE

Interest expense for the first quarter of 2013 decreased $707,000, or 15.3%, compared to the same period in 2012 due to a 22 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $139.1 million, or 8.0%. Also contributing to the decrease is a decrease of $272,000 in subordinated debt expense for the respective periods due to one of the Company's notes being converted from a fixed rate of 6.62% to a lower floating rate as of September 30, 2012. The Bank's shift in deposit mix toward noninterest-bearing accounts, which made up 18.7% of total deposits at March 31, 2013 compared to 14.0% at March 31, 2012, contributed to the reduction in the cost of funds. On a linked-quarter basis, interest expense decreased $129,000, or 3.2%.

NONINTEREST INCOME

On a year over year basis, noninterest income increased $7.3 million, or 41.5%, to $25.0 million for the quarter ended March 31, 2013, compared to $17.7 million in the first quarter of 2012. The increase in noninterest income was the result of a $5.7 million, or 47.3%, increase in mortgage banking activities and an increase in SBA lending of $231,000 over the respective periods. Income from mortgage banking activities increased due to a 76% increase in the March 31, 2013 pipeline to over $582 million compared to $331 million a year ago. Total funded loan volume for the quarter of $652.0 million representing a 62% increase compared to the same period a year ago. The current quarter mortgage banking income includes a $1.6 million mortgage servicing rights impairment recovery compared to $702,000 for the fourth quarter of 2012 and $1.1 million for the first 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 as indemnification income over the life of the contract with the FDIC. For the first three months of 2013, indemnification income was $138,000 compared to $171,000 for the same period in 2012.

NONINTEREST EXPENSE

Noninterest expense for the first quarter of 2013 increased $7.2 million, or 28.2%, to $32.6 million compared to $25.4 million for the same period in 2012. The increase was driven by a $5.8 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.

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 31 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 2012 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

-end-

FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)



















Three Months Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012

($ in thousands, except per share data)

RESULTS OF OPERATIONS








Net Interest Income

$

21,075

$

20,239

$

20,690

$

19,900

$

19,655

Provision for Loan Losses

3,476

5,243

3,477

950

3,750

Non-Interest Income

25,047

26,186

27,094

17,034

17,655

Non-Interest Expense

32,524

32,654

31,324

26,069

25,350

Income Tax Expense

3,631

3,088

4,816

3,511

2,894

Net Income

6,491

5,440

8,167

6,404

5,316

Preferred Stock Dividends

(823)

(823)

(823)

(823)

(823)

Net Income Available to Common Shareholders

5,668

4,617

7,344

5,581

4,493










PERFORMANCE








Earnings Per Share - Basic (1)

$

0.38

$

0.31

$

0.50

$

0.38

$

0.31

Earnings Per Share - Diluted (1)

$

0.33

$

0.27

$

0.44

$

0.34

$

0.28

Return on Average Assets

1.04

%

0.89

%

1.34

%

1.12

%

0.95

%

Return on Average Equity

13.24

%

11.36

%

18.13

%

14.64

%

12.50

%








NET INTEREST MARGIN








Interest Earning Assets

4.55

%

4.56

%

4.51

%

4.66

%

4.96

%

Cost of Funds

0.84

%

0.86

%

0.90

%

0.96

%

1.06

%

Net Interest Spread

3.71

%

3.49

%

3.61

%

3.70

%

3.90

%

Net Interest Margin

3.77

%

3.63

%

3.74

%

3.86

%

3.86

%








CAPITAL








Tier 1 Risk-Based Capital

12.22

%

12.06

%

11.94

%

11.68

%

11.91

%

Total Risk-Based Capital

13.48

%

13.43

%

13.41

%

13.29

%

13.66

%

Leverage Ratio

10.51

%

10.18

%

9.89

%

10.19

%

10.04

%








AVERAGE BALANCE SHEET








Loans, Net of Unearned Income

2,096,551

2,044,975

2,013,423

1,880,933

1,785,382

Investment Securities

161,861

174,810

188,028

198,754

240,342

Earning Assets

2,281,648

2,230,918

2,211,353

2,088,221

2,063,475

Total Assets

2,469,538

2,454,244

2,442,366

2,265,875

2,215,944

Deposits

1,663,394

1,653,026

1,626,290

1,559,516

1,577,682

Borrowings

256,616

211,385

256,616

168,000

159,890

Shareholders' Equity

194,559

190,426

181,211

173,520

168,751










STOCK PERFORMANCE








Market Price:








     Closing (1)

$

11.50

$

9.46

$

9.27

$

8.33

$

6.39

     High Close (1)

$

11.81

$

10.09

$

9.59

$

8.63

$

6.50

     Low Close (1)

$

9.56

$

8.67

$

8.24

$

6.39

$

5.51

Daily Average Trading Volume

23,583

16,429

20,135

42,083

8,645

Book Value Per Common Share (1)

$

10.14

$

9.77

$

9.52

$

8.99

$

8.56

Price to Book Value

1.13

0.97

0.97

0.93

0.75

Price to Tangible Book Value

1.15

0.99

0.99

0.95

0.76

Tangible Book Value Per Common Share (1)

9.97

9.60

9.35

8.78

8.41










(1)

Adjusted for stock dividends and retroactive application on shares outstanding.

FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)



















Three Months Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012



($ in thousands)



ASSET QUALITY








Total Non-Performing Loans

$

81,740

$

83,681

$

90,145

$

90,908

$

74,816

Total Non-Performing Assets

$

121,666

$

125,062

$

136,439

$

134,627

$

101,221

Loans 90 Days Past Due and Still Accruing

$

141

$

—

$

—

$

111

290

Including Covered Loans:








     Non-Performing Loans as a % of Loans

4.68

%

5.21

%

5.17

%

5.21

%

4.51

%

     Non-Performing assets as a % of Loans Plus ORE

6.55

%

6.88

%

7.62

%

7.52

%

6.01

%

     ALL to Non-Performing Loans

34.49

%

29.93

%

34.49

%

29.93

%

50.34

%

     Net Charge-Offs During the Period to Average Loans

0.24

%

0.65

%

0.24

%

0.65

%

0.55

%

     ALL as a % of Loans, at End of Period

1.86

%

1.92

%

1.80

%

1.55

%

1.76

%

Excluding Covered Loans:








     Non-Performing Loans as a % of Loans

3.75

%

3.81

%

3.75

%

3.81

%

3.97

%

     Non-Performing assets as a % of Loans Plus ORE

4.37

%

4.74

%

5.12

%

5.29

%

5.12

%

     ALL to Non-Performing Loans

50.89

%

43.70

%

50.89

%

43.70

%

47.22

%

     Net Charge-Offs During the Period to Average Loans

0.86

%

0.81

%

0.27

%

0.71

%

0.59

%

     ALL as a % of Loans, at End of Period

1.95

%

2.01

%

1.91

%

1.65

%

1.84

%








OTHER INFORMATION








Non-Interest Income to Revenues

54.31

%

56.40

%

56.70

%

46.12

%

47.32

%

End of Period Shares Outstanding

14,971,580

14,903,642

14,750,045

14,680,993

14,629,133

Weighted Average Shares Outstanding - Basic

14,951,008

14,834,498

14,700,593

14,651,502

14,527,631

Weighted Average Shares Outstanding - Diluted

16,944,361

16,825,174

16,648,236

16,445,209

16,002,923

Full-Time Equivalent Employees

806.0

774.2

752.6

701.9

656.5

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
























Three Months Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012


($ in thousands, except per share data)

INTEREST INCOME









Loans, including fees

$

23,944

$

23,121

$

23,724

$

22,902

$

22,738

Investment securities

1,028

1,141

1,208

1,189

1,506

Federal funds sold and bank deposits

3

5

6

4

18

Total interest income

24,975

24,267

24,938

24,095

24,262

INTEREST EXPENSE









Deposits

2,627

2,722

2,686

2,658

3,007

Short-term borrowings

404

425

454

253

174

Subordinated debt

867

881

1,090

1,132

1,139

Other long-term debt

2

—

18

152

287

Total interest expense

3,900

4,028

4,248

4,195

4,607

Net interest income

21,075

20,239

20,690

19,900

19,655

Provision for loan losses

3,476

5,243

3,477

950

3,750

Net interest income after provision for loan losses

17,599

14,996

17,213

18,950

15,905

NONINTEREST INCOME









Service charges on deposit accounts

949

1,122

1,259

1,180

1,133

Other fees and charges

887

883

841

852

784

Mortgage banking activities

17,795

18,653

14,755

10,840

12,084

Indirect lending activities

1,646

1,477

2,164

1,610

1,163

SBA lending activities

1,084

715

2,107

1,269

853

Bank owned life insurance

313

323

330

332

322

Securities gains

—

—

4

—

303

Other

2,373

3,013

5,634

951

1,013

Total noninterest income

25,047

26,186

27,094

17,034

17,655

NONINTEREST EXPENSE









Salaries and employee benefits

20,672

20,886

18,589

15,325

14,849

Furniture and equipment

998

1,046

1,032

994

977

Net occupancy

1,409

1,354

1,360

1,280

1,210

Communication

760

647

739

641

619

Professional and other services

2,246

2,043

1,992

2,081

2,141

Cost of operation of other real estate

2,203

2,585

2,776

1,702

1,737

FDIC insurance premiums

526

493

479

474

471

Other

3,710

3,600

4,357

3,572

3,346

Total noninterest expense

32,524

32,654

31,324

26,069

25,350

Income before income tax expense

10,122

8,528

12,983

9,915

8,210

Income tax expense

3,631

3,088

4,816

3,511

2,894

NET INCOME

6,491

5,440

8,167

6,404

5,316

Preferred stock dividends and discount accretion

(823)

(823)

(823)

(823)

(823)

Net income available to common equity

$

5,668

$

4,617

$

7,344

$

5,581

$

4,493











EARNINGS PER SHARE: (1)









Basic earnings per share

$

0.38

$

0.31

$

0.50

$

0.38

$

0.31

Diluted earnings per share

$

0.33

$

0.27

$

0.44

$

0.34

$

0.28

Weighted average common shares outstanding-basic

14,951,008

14,834,498

14,700,593

14,651,502

14,527,631

Weighted average common shares outstanding-diluted

16,944,361

16,825,174

16,648,236

16,445,209

16,002,923











(1)

Adjusted for stock dividends and retroactive application on shares outstanding

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)





















March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




($ in thousands)



ASSETS









Cash and cash equivalents

$

40,262

$

49,020

$

47,366

$

38,333

$

38,604

Investment securities available-for-sale

153,285

154,367

165,598

193,251

183,611

Investment securities held-to-maturity

5,523

6,162

6,842

7,471

8,185

Investment in FHLB stock

7,919

7,330

9,760

8,185

7,623

Loans held-for-sale

325,941

304,094

259,659

214,335

175,736

Loans

1,817,263

1,777,031

1,745,185

1,746,204

1,657,972

Allowance for loan losses

(33,910)

(33,982)

(31,476)

(27,205)

(29,282)

Loans, net of allowance for loan losses

1,783,353

1,743,049

1,713,709

1,718,999

1,628,690

FDIC indemnification asset

16,535

20,074

38,225

44,667

13,266

Premises and equipment, net

38,508

37,669

36,519

35,949

30,352

Other real estate, net

38,951

39,756

45,175

42,727

25,729

Accrued interest receivable

8,340

7,995

8,384

8,432

8,238

Bank owned life insurance

32,978

32,693

32,397

32,091

31,786

Deferred tax asset, net

21,248

21,145

16,520

18,299

16,398

Servicing asset

36,529

30,244

24,531

22,299

21,179

Other assets

22,877

23,693

38,109

30,717

25,829

Total Assets

$

2,532,249

$

2,477,291

$

2,442,794

$

2,415,755

$

2,215,226











LIABILITIES









Deposits:









Noninterest-bearing demand deposits

$

385,019

$

381,846

$

354,029

$

345,063

$

290,625

Interest-bearing deposits:









Demand and money market

632,542

638,582

604,124

618,269

557,652

Savings

331,505

329,223

310,835

338,983

377,692

Time deposits, $100,000 and over

356,661

346,743

348,871

343,570

313,209

Other time deposits

310,581

314,675

326,471

332,185

319,995

Brokered deposits

41,843

56,942

59,303

9,204

9,204

Total deposits

2,058,151

2,068,011

2,003,633

1,987,274

1,868,377

Federal Funds Purchased

100,000

88,500

99,500

48,718

13,555

Short-term borrowings

76,051

37,160

50,889

82,500

42,500

Subordinated debt

67,527

67,527

67,527

67,527

67,527

Other long-term debt

10,000

—

—

25,000

27,500

Accrued interest payable

1,375

2,093

1,467

2,231

1,667

Other liabilities

19,844

21,112

32,277

23,596

22,178

Total Liabilities

2,332,948

2,284,403

2,255,293

2,236,846

2,043,304











SHAREHOLDERS' EQUITY









Preferred stock

47,564

47,344

47,123

46,902

46,682

Common stock

84,777

82,499

79,855

77,055

74,560

Accumulated other comprehensive gain, net of tax

3,376

3,545

4,242

3,882

3,301

Retained earnings

63,584

59,500

56,281

51,070

47,379

Total shareholders' equity

199,301

192,888

187,501

178,909

171,922

Total Liabilities and Shareholders' Equity

$

2,532,249

$

2,477,291

$

2,442,794

$

2,415,755

$

2,215,226

Book Value Per Common Share

$

10.14

$

9.77

$

9.52

$

8.99

$

8.56

Shares of Common Stock Outstanding (1)

14,971,580

14,903,642

14,750,045

14,680,993

14,629,133











(1)

Adjusted for stock dividends and retroactive application on shares outstanding

FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)





















March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




($ in thousands)



Commercial

$

517,203

$

509,243

$

500,232

$

481,513

$

432,805

SBA loans

126,435

121,428

102,482

101,167

98,899

      Total Commercial and SBA Loans

643,638

630,671

602,714

582,680

531,704

Construction

94,651

89,924

94,468

96,797

108,473

Indirect loans

959,471

930,232

921,400

940,396

896,672

Installment loans

12,897

18,774

14,226

16,666

17,665

      Total Consumer Loans

972,368

949,006

935,626

957,062

914,337

First Mortgage Loans

38,501

37,785

40,215

39,520

34,592

Second Mortgage Loans

68,105

69,645

72,162

70,145

68,866

Total Mortgage Loans

106,606

107,430

112,377

109,665

103,458

Loans

1,817,263

1,777,031

1,745,185

1,746,204

1,657,972











Loans Held-For-Sale:









Originated Residential Mortgage

281,839

253,108

212,714

164,144

130,075

SBA

14,102

20,986

16,945

20,191

15,661

Indirect Auto

30,000

30,000

30,000

30,000

30,000

     Total Loans Held-For-Sale

325,941

304,094

259,659

214,335

175,736

          Total Loans

$

2,143,204

$

2,081,125

$

2,004,844

$

1,960,539

$

1,833,708











Non-Covered Loans

$

1,743,092

$

1,699,892

$

1,648,678

$

1,632,015

$

1,584,822

Covered Loans

74,171

77,139

96,507

114,189

73,150

Loans Held-For-Sale

325,941

304,094

259,659

214,335

175,736

          Total Loans

$

2,143,204

$

2,081,125

$

2,004,844

$

1,960,539

$

1,833,708

FIDELITY SOUTHERN CORPORATION

DEPOSITS, BY CATEGORY
(UNAUDITED)





















March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




($ in thousands)



Noninterest-Bearing Demand

$

385,019

$

381,846

$

354,029

$

345,063

$

290,625

Interest Bearing Deposits:









  Interest-Bearing Demand / Money Market

632,542

638,582

604,124

618,269

557,652

  Savings

331,505

329,223

310,835

338,983

377,692

  Time Deposits $100,000 and Over

356,661

346,743

348,871

343,570

313,209

  Other Time Deposits

310,581

314,675

326,471

332,185

319,995

  Brokered Deposits

41,843

56,942

59,303

9,204

9,204

     Total Deposits

$

2,058,151

$

2,068,011

$

2,003,633

$

1,987,274

$

1,868,377

FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)



















Three Months Ended

March 31,
2013

December 31, 2012

September 30,
2012

June 30,
2012

March 31,
2012



($ in thousands)



Balance at Beginning of Period

$

33,982

$

31,476

$

27,205

$

29,282

$

27,956

Net Charge-Offs (Recoveries):








Commercial, Financial, and Agricultural

2,416

421

41

613

15

SBA

56

271

103

84

(3)

Real Estate Construction

118

(78)

(31)

1,607

1,300

Real Estate Mortgage

393

30

23

228

—

Consumer Installment

669

3,026

1,085

495

1,112

Total Net Charge-Offs

3,652

3,670

1,221

3,027

2,424

Provision for Loan Losses - Non-Covered Loans

3,450

4,666

2,500

950

3,750

Impairment Provision - Covered Loans

26

577

977

—

—

Indemnification - Covered Loans

104

933

2,015

—

—

Balance at End of Period

$

33,910

$

33,982

$

31,476

$

27,205

$

29,282










Ratio of Net Charge-Offs during the Period to Average Loans Outstanding, Net

0.86

%

0.81

%

0.27

%

0.71

%

0.59

%

Allowance for Loan Losses as a Percentage of Loans

1.86

%

1.92

%

1.80

%

1.55

%

1.76

%

Allowance for Loan Losses as a Percentage of Loans Excluding Covered Loans

1.95

%

2.01

%

1.91

%

1.65

%

1.84

%

FIDELITY SOUTHERN CORPORATION

NONPERFORMING ASSETS
(UNAUDITED)



















March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012



($ in thousands)



Non-Covered Nonperforming Assets








Nonaccrual Loans

$

52,220

$

57,713

$

61,854

$

62,142

$

62,582

Repossessions

975

1,625

1,119

1,103

966

Other Real Estate

24,048

22,429

22,573

24,929

18,841

Total Non-Covered Nonperforming Assets

$

77,243

$

81,767

$

85,546

$

88,174

$

82,389

*** Includes SBA Guaranteed Amounts of Approximately

$

16,668

$

12,085

$

8,742

$

8,882

$

8,040

Non-Covered Loans Past Due 90 Days or More and Still Accruing

$

141

$

—

$

—

$

111

$

290

Non-Covered Loans 30-89 Days Past Due

$

12,152

$

5,028

$

7,077

$

5,214

$

20,024

Ratio of Non-Covered Loans Past Due 90 Days or More and Still Accruing to Total Non-Covered Loans

0.01

%

—

%

—

%

0.01

%

0.02

%

Ratio of Non-Covered Loans 30-89 Days Past Due to Total Non-Covered Loans

0.70

%

0.30

%

0.43

%

0.32

%

1.26

%

Ratio of Non-Covered Nonperforming Assets to Total Non-Covered Loans, ORE, and Repossessions

4.37

%

4.74

%

5.12

%

5.29

%

5.12

%

Covered Nonperforming Assets








Nonaccrual Loans

$

29,520

$

25,968

$

28,291

$

28,655

$

11,944

Other Real Estate

14,903

17,327

22,602

17,798

6,888

Covered Nonperforming Assets

$

44,423

$

43,295

$

50,893

$

46,453

18,832

Classified Assets








Classified Loans

$

112,036

$

114,857

$

121,556

$

122,280

$

111,894

ORE and Other Nonperforming Assets

39,926

41,381

46,294

43,830

26,695

Total Classified Assets

$

151,962

$

156,238

$

167,850

$

166,110

$

138,589
























FIDELITY SOUTHERN CORPORATION

ANALYSIS OF INDIRECT LENDING

(UNAUDITED)















Three Months Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




($ in thousands)



Average loans outstanding

$

953,722

$

966,082

$

990,061

$

959,202

$

902,778

Past due loans:










$ amount of indirect loans past due

$

1,159

$

1,262

$

1,095

$

922

$

1,302

# of indirect loans past due

162

197

167

145

200

Net principal charge-offs

$

667

$

989

$

777

$

491

$

929

# of repossessed vehicles

151

181

162

150

174

Non-performing loans

$

872

$

982

$

550

$

778

$

912

30+ day performing delinquency rate (1)

0.12

%

0.14

%

0.11

%

0.10

%

0.15

%

Net charge-off rate (2)

0.28

%

0.37

%

0.31

%

0.20

%

0.41

%

Average beacon score

742

747

751

752

754

Production by State:










Alabama

$

16,847

$

14,322

$

18,261

$

16,575

$

15,926

Arkansas

4,760

3,514

3,633

—

—

North Carolina

15,226

11,828

14,088

14,810

16,441

South Carolina

7,550

6,356

9,324

7,352

6,598

Florida

67,243

59,782

66,264

67,470

59,668

Georgia

42,218

34,484

41,182

42,196

37,548

Mississippi

20,148

16,990

19,826

19,593

21,042

Tennessee

14,858

8,674

13,817

16,568

18,736

Virginia

8,601

6,241

8,882

9,212

5,854


Total production by State

$

197,451

$

162,191

$

195,277

$

193,776

$

181,813

Outstanding serviced by State:










Alabama

$

116,163

$

112,404

$

110,621

$

104,559

$

99,871

Arkansas

11,368

7,302

4,273

829

134

North Carolina

109,131

105,696

105,547

103,266

99,743

South Carolina

42,804

39,283

37,389

31,474

27,313

Florida

454,595

436,142

422,512

400,120

375,075

Georgia

331,118

332,900

342,587

346,388

351,388

Mississippi

98,619

86,788

77,421

63,211

48,287

Tennessee

100,869

97,059

98,991

97,157

92,300

Virginia

35,242

29,572

25,120

18,556

10,776


Total outstanding serviced by State

$

1,299,909

$

1,247,146

$

1,224,461

$

1,165,560

$

1,104,887

Loan sales

$

58,073

$

48,166

$

106,200

$

46,300

$

20,160

Yield

4.00

%

4.06

%

4.17

%

4.34

%

4.61

%











(1) 

Calculated by dividing 30+ day performing delinquent loans as of the end of the period by period-end loans held for investment for the specified loan category.

(2) 

Calculated by dividing annualized net charge-offs for the period by average loans held for investment during the period for the specified loan category.





















FIDELITY SOUTHERN CORPORATION

ANALYSIS OF MORTGAGE LENDING

(UNAUDITED)















Three Months Ended

March 31,
2013

December 31,
2012

September 30,
2012

June 30,
2012

March 31,
2012




($ in thousands)



Average loans outstanding

$

284,910

$

257,740

$

225,912

$

161,890

$

129,939

% of loan production for new mortgage

36.78

%

34.45

%

45.59

%

55.38

%

39.81

%

% of loan production for refinanced loans

63.22

%

65.55

%

54.41

%

44.62

%

60.19

%

Production by State:










Georgia

$

392,749

$

498,542

$

397,764

$

295,509

$

248,748

Colorado

—

—

4,179

9,608

10,840

Florida

15,862

16,895

14,902

9,894

9,404

Virginia

111,126

126,901

64,500

17,454

5,300

Total retail

519,737

642,338

481,345

332,465

274,292

Wholesale

136,508

150,648

136,120

139,341

126,456


Total production by State

$

656,245

$

792,986

$

617,465

$

471,806

$

400,748

Loan sales

$

634,074

$

701,018

$

569,038

$

405,647

$

376,710

Yield

3.43

%

3.58

%

3.69

%

4.03

%

4.19

%

FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)

















QUARTER ENDED

March 31, 2013

March 31, 2012

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Assets

($ in thousands)

Interest-earning assets:






Loans, net of unearned income:






Taxable

$

2,090,711

$

23,902

4.64

%

$

1,780,480

$

22,705

5.13

%

Tax-exempt (1)

5,840

65

4.52

%

4,902

50

4.15

%

Total loans

2,096,551

23,967

4.64

%

1,785,382

22,755

5.13

%

Investment securities:






Taxable

143,965

849

2.39

%

220,553

1,305

2.38

%

Tax-exempt (2)

17,896

276

6.26

%

19,789

310

6.39

%

Total investment securities

161,861

1,125

2.82

%

240,342

1,615

2.70

%

Interest-bearing deposits

22,353

3

0.06

%

36,741

18

0.20

%

Federal funds sold

883

—

0.06

%

1,010

—

—

%

Total interest-earning assets

2,281,648

25,095

4.55

%

2,063,475

24,388

4.96

%

Noninterest-earning:






Cash and due from banks

13,962



14,485


Allowance for loan losses

(33,662)



(28,037)


Premises and equipment, net

37,886



29,464


Other real estate

38,783



29,357


Other assets

130,921



107,200


Total assets

$

2,469,538



$

2,215,944


Liabilities and shareholders' equity






Interest-bearing liabilities:






Demand deposits

$

620,425

$

418

0.27

%

$

536,982

$

397

0.30

%

Savings deposits

330,364

377

0.46

%

377,187

292

0.31

%

Time deposits

712,605

1,832

1.04

%

663,513

2,318

1.41

%

Total interest-bearing deposits

1,663,394

2,627

0.64

%

1,577,682

3,007

0.77

%

Federal funds purchased

57,111

106

0.76

%

473

1

0.86

%

Securities sold under agreements to repurchase

11,496

5

0.16

%

16,057

9

0.22

%

Other short-term borrowings

83,672

293

1.42

%

37,577

164

1.75

%

Subordinated debt

67,527

867

5.21

%

67,527

1,139

6.79

%

Long-term debt

2,222

2

0.41

%

47,005

287

2.46

%

Total interest-bearing liabilities

1,885,422

3,900

0.84

%

1,746,321

4,607

1.06

%

Noninterest-bearing:






Demand deposits

368,483



278,310


Other liabilities

21,074



22,562


Shareholders' equity

194,559



168,751


Total liabilities and shareholders' equity

$

2,469,538



$

2,215,944


Net interest income/spread

$

21,195

3.71

%

$

19,781

3.90

%

Net interest margin

3.77

%


3.86

%






(1)

Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $22,800 and $17,700, respectively.

(2)

Interest income includes the effect of taxable-equivalent adjustment for 2013 and 2012 of $96,600 and $108,300, respectively.

Contacts:

Martha Fleming, Steve Brolly

Fidelity Southern Corporation (404) 240-1504

SOURCE Fidelity Southern Corporation