Fidelity Southern Corporation Earns Net Income of $3.0 Million for Fourth Quarter, $10.1 Million for the Year

News provided by

Fidelity Southern Corporation

Jan 20, 2011, 02:24 ET

ATLANTA, Jan. 20, 2011 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (Nasdaq: LION), holding company for Fidelity Bank (the "Bank"), reported net income of $3.0 million for the fourth quarter of 2010 compared to net income of $1.9 million for the fourth quarter of 2009.  After accounting for the TARP preferred dividend, basic and diluted income per share for the fourth quarter of 2010 were $.20 and $.18, respectively, compared to a basic and diluted income per share of $.11 in the fourth quarter of 2009.  Net income for the year ended December 31, 2010 was $10.1 million compared to net loss of $3.9 million for 2009.  Basic and diluted income per share for the year ended December 31, 2010 were $.64 and $.57, respectively, compared to basic and diluted loss per share of $.70 for 2009.



For the quarter ended



12/31/2010


9/30/2010


6/30/2010


3/31/2010


12/31/2009














(In Thousands)












Net Income


$  2,988


$  2,081


$   4,869


$     195


$  1,928












Income Tax Expense (Benefit)


932


913


2,647


(93)


920

Provision For Loan Losses


6,975


5,025


1,150


3,975


7,500

Write-down of ORE


573


698


1,615


1,367


731

Other cost of ORE Operations


483


713


743


802


1,299

Pre-Tax, Pre-Credit Related Earnings


11,951


9,430


11,024


6,246


12,378

Less Security Gains


–


–


(2,291)


–


(4,789)

Core Operating Earnings (1)


$  11,951


$  9,430


$   8,733


$  6,246


$  7,589













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




For the fourth quarter of 2010, net income increased 44% from prior quarter and 55% from prior year while core operating earnings for the fourth quarter of 2010 increased 27% and 57%, respectively.

James B. Miller, Jr. Chairman said, "We continue, in this post-recession new credit world, focused on our strategic plan for growth.  Because we see opportunity and steady improvement in earnings, substantial investment in our electronic banking and data processing operations and in personnel for compliance and lending continues."

PERSONNEL

Fidelity continues to retain and attract talented bankers in the Atlanta area.  At the end of 2009, Fidelity had 488 full time equivalent employees.  At the end of 2010, the number of full time equivalent employees increased by 71 to 559.  The mortgage department grew by 44 employees, indirect lending grew by 10 employees, commercial lending grew by four employees and SBA lending grew by four employees with the balance primarily in support areas.

ASSET QUALITY

Net charge-offs were $7.2 million in the fourth quarter of 2010 compared to $13.0 million in the fourth quarter of 2009.  Year to date, net charge-offs decreased $13.3 million for the year ended December 31, 2010 to $19.1 million compared to $32.4 million in 2009.  For the three year period from January 1, 2008 to December 31, 2010, cumulative net charge-offs were $71.0 million compared to an aggregate provision for loan losses of $82.5 million.  During this period, for every dollar of net charge-offs realized, the Company recorded $1.16 in provision.  The ratio of net charge-offs to average loans outstanding was 1.44% for the year ended December 31, 2010, compared to 2.44% for 2009.  Fidelity reported an allowance for loan losses of $28.1 million or 2.00% of total loans at December 31, 2010, compared to $30.1 million or 2.33% at December 31, 2009.  The decrease was a result of improving nonaccrual loans and nonperforming assets trends and overall credit trends.

Nonperforming residential construction and development loans at December 31, 2010, included financing for 86 houses and 815 lots and land totaling $54.1 million.  During the fourth quarter, $3.1 million of nonperforming construction loans were paid down by our customers.

During the fourth quarter of 2010, $3.9 million of ORE assets were sold while $3.6 million were added to ORE.  ORE consists of 55 houses, representing 29.2% of the total ORE balance, 366 lots and eight commercial properties.  ORE decreased $1.3 million to $20.5 million at December 31, 2010, compared to $21.8 million at December 31, 2009.    

The provision for loan losses for the fourth quarter of 2010 was $7.0 million compared to $7.5 million for the same period in 2009.  The provision for loan losses for the year ended December 31, 2010 was $17.1 million compared to $28.8 million in 2009 as a result of improving asset quality and lower charge-offs during the period.  

DEPOSITS

Total deposits at December 31, 2010, of $1.613 billion reflect the improvement in the deposit mix brought about by the Bank's strategy to increase core deposits.  The Bank aggressively marketed its non-certificate of deposit products in 2010.  As a result, demand, money market and savings accounts increased $160.6 million or 18.9% at December 31, 2010, compared to December 31, 2009.  The reduction in the interest rate paid on deposit accounts during the year demonstrates the Company's commitment to improved net interest margin.




December 31,

2010


December 31,

2009


September 30,

2010


$


%


$


%


$


%














(Dollars in Millions)













Core deposits(1)

$1,304.5


80.9%


$1,194.3


77.0%


$1,270.0


81.3%













Time Deposits > $100,000

246.3


15.2


257.4


16.6


208.9


13.4













Brokered deposits

62.5


3.9


99.0


6.4


82.4


5.3













Total deposits

$1,613.3


100.0%


$1,550.7


100.0%


$1,561.3


100.0%













Quarterly rate on deposits

1.19%


2.03%


1.42%














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




REAL ESTATE

New residential construction loan advances made during the quarter totaled $3.6 million, while the payoffs of construction loans totaled $13.2 million.  Residential construction and A&D loans totaled $115.5 million at December 31, 2010, which decreased 26% from $156.7 million at December 31, 2009.  There were 304 houses and 1,415 lots financed at December 31, 2010, compared to 375 houses and 1,617 lots at December 31, 2009.

Total residential and commercial construction and land loans decreased to $116.8 million or 8.3% of loans at December 31, 2010, from $154.8 million or 12.0% of loans at December 31, 2009, and as a percentage of capital was 59% at December 31, 2010.  The regulatory guideline is a maximum of 100%.

All real estate loans, excluding owner-occupied properties, as a percentage of capital was 138% at December 31, 2010.  The regulatory guideline is a maximum of 300%.  

NET INTEREST MARGIN

Net interest margin increased 57 basis points to 3.88% in the fourth quarter of 2010 compared to 3.31% in the fourth quarter of 2009, and increased 18 basis points from 3.70% for the third quarter of 2010.  Net interest income for the fourth quarter of 2010 increased $2.8 million or 18.7% when compared to the same period in 2009.  The increase in net interest income for the quarter is a result of a greater reduction in the cost of funds than the decrease in the yield on earning assets.  

The net interest margin increased 71 basis points to 3.66% in the year ended December 31, 2010 compared to 2.95% in 2009 due to our increased lending and a reduction in our cost of funds.  Average total interest earning assets increased $16.7 million or 0.9% while average loans increased $29.4 million or 2.0% for the year ended December 31, 2010, compared to 2009, respectively.  We reduced our deposit cost of funds by 108 basis points during the year ended December 31, 2010 compared to December 31, 2009, while the average deposit balance remained relatively flat.  Net interest income for the year ended December 31, 2010 increased $13.1 million or 25.5% over the same period in 2009.

INTEREST INCOME

Total interest income for the fourth quarter of 2010 decreased $570,000 or 2.3% compared to the same period in 2009.  The yield on average interest-earning assets decreased 19 basis points and average interest-earning assets for the fourth quarter 2010 increased $21.2 million or 1.2%.  The decrease in yield was primarily the result of a decrease in the yield on loans of 38 basis points as the Bank offered competitive rates in the marketplace.  In addition, investment security yields decreased 95 basis points to 3.36% due to market rate decreases.

Total interest income for the year ended December 31, 2010 decreased $2.3 million or 2.4% compared to 2009.  The decrease in interest income in 2010 was the result of a decrease of 19 basis points in the yield on average interest-earning assets offset in part by the growth in average interest-earning assets in 2010, which increased $16.7 million or 0.9%.  The decrease in yield was a result of an 82 basis point decrease in yield on investment securities and a $22.0 million decrease in the average balance of investment securities.

INTEREST EXPENSE

Interest expense for the fourth quarter of 2010 decreased $3.3 million or 34.1% compared to the same period in 2009.  The decrease in interest expense was attributable to an 83 basis point decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $6.4 million or 0.4%.  In addition to the general decrease in deposit rates, the Bank's shift in deposit mix toward core demand and savings accounts contributed to the reduction in the cost of funds.  Brokered deposits decreased $35.9 million compared to December 31, 2009.  At December 31, 2010, brokered deposits represented only 3.9% of total deposits.

For the year ended December 31, 2010, interest expense decreased $15.4 million or 33.6% compared to the same period in 2009.  The decrease in interest expense was attributable to a 97 basis point decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $8.9 million.

NONINTEREST INCOME

Noninterest income increased $1.4 million or 11.5% to $13.6 million for the quarter ended December 31, 2010, compared to the same period in 2009.  The increase in noninterest income was primarily the result of a $6.0 million or 166.0% increase in income from mortgage banking activities.  Mortgage banking income improved as a result of higher origination volume, which increased 106.9% compared to the fourth quarter of 2009 to $411 million due to the historically low interest rate environment and an expansion in the number of loan officers.  This increase was somewhat offset by a $4.8 million decrease in securities gains as no investment securities were sold during the fourth quarter of 2010.  

Noninterest income increased $8.9 million or 26.3% to $42.9 million for the year ended December 31, 2010 compared to 2009.  The increase was a result of a $9.5 million or 63.6% increase in income from mortgage banking activities, a $1.3 million or 121.6% increase in income from SBA lending activities and a $782,000 or 114.5% increase in other operating income somewhat offset by a $3.0 million decrease in securities gains.  Mortgage banking income improved as a result of higher origination volume, which increased 42.7% to $1.245 billion.  SBA income improved as a result of higher sales volume which increased 46% over the same period in 2009 as liquidity continued to improve in the secondary market.  Other operating income increased due primarily to higher net gains on the sales of other real estate.  Securities gains decreased due to fewer sales compared to 2009.  

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter of 2010 increased $3.6 million or 21.8% to $20.2 million compared to the same period in 2009.  The increase was due primarily to higher salaries and employee benefits which increased $3.6 million or 44.0% to $11.9 million due to higher commission expense related to the increased origination volume in the mortgage division as well as an increased number of lenders in the mortgage, SBA, Commercial, and Indirect Auto Lending divisions.  Other operating expense increased $755,000 or 41.1% to $2.6 million due to higher mortgage related losses, underwriting, and advertising expenses.  The cost of operation of other real estate decreased $974,000 or 48.0% to $1.1 million due to lower foreclosure expenses and write-downs related to ORE.    

Noninterest expense for the year ended December 31, 2010 increased $11.4 million or 17.7% to $76.0 million compared to 2009.  The increase was a result of higher salaries, commissions and employee benefits which increased $9.3 million or 28.0% to $42.6 million, and higher operating expense, which increased $1.9 or 26.8% to $9.0 million due primarily to higher underwriting, insurance and advertising expense.

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 23 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 throughout the Southeast.  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 some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" on page 3 of Fidelity Southern Corporation's 2009 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

FIDELITY SOUTHERN CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)














QUARTER ENDED


YEAR ENDED

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

DECEMBER 31,


DECEMBER 31,


2010

2009


2010

2009







INTEREST INCOME






  LOANS, INCLUDING FEES

$                 22,430

$                 21,797


$                 87,316

$                 86,909

  INVESTMENT SECURITIES

1,440

2,615


7,790

10,511

  FEDERAL FUNDS SOLD AND BANK DEPOSITS

29

57


178

163

     TOTAL INTEREST INCOME

23,899

24,469


95,284

97,583







INTEREST EXPENSE






 DEPOSITS

4,713

7,973


23,445

38,621

 SHORT-TERM BORROWINGS

123

195


1,021

617

 SUBORDINATED DEBT

1,124

1,123


4,502

4,650

 OTHER LONG-TERM DEBT

460

449


1,595

2,121

     TOTAL INTEREST EXPENSE

6,420

9,740


30,563

46,009







NET INTEREST INCOME

17,479

14,729


64,721

51,574







PROVISION FOR LOAN LOSSES

6,975

7,500


17,125

28,800







NET INTEREST INCOME AFTER






 PROVISION FOR LOAN LOSSES

10,504

7,229


47,596

22,774







NONINTEREST INCOME






 SERVICE CHARGES ON DEPOSIT ACCOUNTS

993

1,149


4,284

4,413

 OTHER FEES AND CHARGES

559

519


2,155

2,005

 MORTGAGE BANKING ACTIVITIES

9,636

3,623


24,478

14,961

 INDIRECT LENDING ACTIVITIES

1,088

992


4,485

4,229

 SBA LENDING ACTIVITIES

638

515


2,435

1,099

 SECURITIES GAINS

-

4,789


2,291

5,308

 BANK OWNED LIFE INSURANCE

336

332


1,316

1,280

 OTHER OPERATING INCOME

343

271


1,465

683

   TOTAL NONINTEREST INCOME

13,593

12,190


42,909

33,978







NONINTEREST EXPENSE






 SALARIES AND EMPLOYEE BENEFITS

11,939

8,292


42,573

33,261

 FURNITURE AND EQUIPMENT

719

666


2,721

2,721

 NET OCCUPANCY

1,106

1,125


4,480

4,421

 COMMUNICATION EXPENSES

488

422


1,878

1,617

 PROFESSIONAL AND OTHER SERVICES

1,399

1,288


4,790

4,916

 COST OF OPERATION OF OTHER REAL ESTATE

1,056

2,030


6,995

6,859

 FDIC INSURANCE EXPENSE

877

910


3,534

3,666

 OTHER OPERATING EXPENSES

2,593

1,838


9,002

7,101

   TOTAL NONINTEREST EXPENSE

20,177

16,571


75,973

64,562







INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE

3,920

2,848


14,532

(7,810)

INCOME TAX EXPENSE (BENEFIT)

932

920


4,399

(3,955)







NET INCOME (LOSS)

2,988

1,928


10,133

(3,855)

PREFERRED STOCK DIVIDENDS

(823)

(824)


(3,293)

(3,293)

NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY

$                   2,165

$                   1,104


$                   6,840

$                 (7,148)







INCOME (LOSS) PER SHARE:






     BASIC INCOME (LOSS) PER SHARE

$                     0.20

$                     0.11


$                     0.64

$                   (0.70)

     DILUTED INCOME (LOSS) PER SHARE

$                     0.18

$                     0.11


$                     0.57

$                   (0.70)







WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC 

10,769,876

10,260,736


10,667,003

10,204,168







WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-FULLY DILUTED 

12,162,501

10,418,241


12,005,189

10,204,168



FIDELITY SOUTHERN CORPORATION 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)









(DOLLARS IN THOUSANDS)

DECEMBER 31,

ASSETS

2010


2009





CASH AND DUE FROM  BANKS

$            47,242


$          170,692

FEDERAL FUNDS SOLD

517


428

   CASH AND CASH EQUIVALENTS

47,759


171,120

INVESTMENTS AVAILABLE-FOR-SALE

161,478


136,917

INVESTMENTS HELD-TO-MATURITY

14,110


19,326

INVESTMENT IN FHLB STOCK

6,542


6,767

LOANS HELD-FOR-SALE

209,898


131,231

LOANS

1,403,372


1,289,859

ALLOWANCE FOR LOAN LOSSES

(28,082)


(30,072)

LOANS, NET

1,375,290


1,259,787

PREMISES AND EQUIPMENT, NET

19,510


18,092

OTHER REAL ESTATE, NET

20,525


21,780

ACCRUED INTEREST RECEIVABLE

7,990


7,832

BANK OWNED LIFE INSURANCE

30,275


29,058

OTHER ASSETS

51,923


49,610





         TOTAL ASSETS

$       1,945,300


$       1,851,520









LIABILITIES






DEPOSITS:




   NONINTEREST-BEARING DEMAND

$          185,614


$          157,511

   INTEREST-BEARING DEMAND/




      MONEY MARKET

427,590


252,493

   SAVINGS

398,012


440,596

   TIME DEPOSITS, $100,000 AND OVER

246,317


257,450

   OTHER TIME DEPOSITS  

355,715


442,675

        TOTAL DEPOSIT LIABILITIES

1,613,248


1,550,725





SHORT-TERM BORROWINGS

32,977


41,870

SUBORDINATED DEBT

67,527


67,527

OTHER LONG-TERM DEBT

75,000


50,000

ACCRUED INTEREST PAYABLE

2,973


4,504

OTHER LIABILITIES

13,064


7,209

         TOTAL LIABILITIES

1,804,789


1,721,835





SHAREHOLDERS' EQUITY








PREFERRED STOCK

45,578


44,696

COMMON STOCK

57,521


53,342

ACCUMULATED OTHER COMPREHENSIVE




    INCOME (LOSS)

458


(64)

RETAINED EARNINGS

36,954


31,711

         TOTAL SHAREHOLDERS' EQUITY

140,511


129,685





         TOTAL LIABILITIES AND SHARE-




                  HOLDERS' EQUITY

$       1,945,300


$       1,851,520





BOOK VALUE PER SHARE

$                8.81


$                8.27

SHARES OF COMMON STOCK OUTSTANDING

10,776,296


10,275,941



FIDELITY SOUTHERN CORPORATION

LOANS, BY CATEGORY

(UNAUDITED)



(DOLLARS IN THOUSANDS)




DECEMBER 31,



2010


2009

PERCENT CHANGE











COMMERCIAL, FINANCIAL AND AGRICULTURAL

$              97,331


$            113,604

(14.32)%

TAX-EXEMPT COMMERCIAL

5,151


5,350

(3.72)%

REAL ESTATE MORTGAGE - COMMERCIAL

351,548


287,354

22.34%

     TOTAL COMMERCIAL

454,030


406,308

11.75%

REAL ESTATE-CONSTRUCTION

116,755


154,785

(24.57)%

REAL ESTATE-MORTGAGE

139,254


130,984

6.31%

CONSUMER INSTALLMENT

693,333


597,782

15.98%

     LOANS

1,403,372


1,289,859

8.80%

LOANS HELD-FOR-SALE:





     ORIGINATED RESIDENTIAL MORTGAGE LOANS

155,029


80,869

91.70%

     SBA LOANS

24,869


20,362

22.13%

     INDIRECT AUTO LOANS

30,000


30,000

0.00%

         TOTAL LOANS HELD-FOR-SALE

209,898


131,231

59.95%

              TOTAL LOANS

$         1,613,270


$         1,421,090




FIDELITY SOUTHERN CORPORATION

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)




(DOLLARS IN THOUSANDS)

YEAR ENDED


DECEMBER 31,


2010

2009




BALANCE AT BEGINNING OF PERIOD

$           30,072

$               33,691

CHARGE-OFFS:



   COMMERCIAL, FINANCIAL AND AGRICULTURAL

883

315

   SBA

381

730

   REAL ESTATE-CONSTRUCTION

11,274

20,217

   REAL ESTATE-MORTGAGE

656

416

   CONSUMER INSTALLMENT

7,086

11,622

       TOTAL CHARGE-OFFS

20,280

33,300

RECOVERIES:



   COMMERCIAL, FINANCIAL AND AGRICULTURAL

23

9

   SBA

5

31

   REAL ESTATE-CONSTRUCTION

361

76

   REAL ESTATE-MORTGAGE

8

20

   CONSUMER INSTALLMENT

768

745

       TOTAL RECOVERIES

1,165

881

NET CHARGE-OFFS

19,115

32,419

PROVISION FOR LOAN LOSSES

17,125

28,800

BALANCE AT END OF PERIOD

$           28,082

$               30,072







RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE



        LOANS OUTSTANDING, NET

1.44%

2.44%

ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS

2.00%

2.33%



NONPERFORMING ASSETS

(UNAUDITED)




(DOLLARS IN THOUSANDS)

DECEMBER 31,


2010

2009




NONACCRUAL LOANS

$           76,545

$               69,743

REPOSSESSIONS

1,119

1,393

OTHER REAL ESTATE

20,525

21,780

       TOTAL NONPERFORMING ASSETS

$           98,189

$               92,916

*** INCLUDES SBA GUARANTEED AMOUNTS OF APPROXIMATELY

$             7,818

$                 4,500

LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING

$                     -

$                        -




RATIO OF LOANS PAST DUE 90 DAYS OR MORE AND



  STILL ACCRUING TO TOTAL LOANS

-%

-%




RATIO OF NONPERFORMING ASSETS TO TOTAL LOANS,



        OREO AND REPOSSESSIONS

6.01%

6.43%



DELINQUENCIES

(UNAUDITED)

(IN THOUSANDS)







Dec-10

Sep-10

Jun-10

Mar-10

Dec-09

PAST DUE (30-59)

$             9,227

$             4,664

$             7,618

$           19,171

$           11,905

PAST DUE (60-89)

1,356

9,631

1,289

658

6,505

PAST DUE (90+)

-

-

-

563

-

    TOTAL PAST DUE

$           10,583

$           14,295

$             8,907

$           20,392

$           18,410







INDIRECT

$             4,936

$             3,635

$             3,958

$             4,551

$             7,912

CONSTRUCTION

1,064

8,411

-

12,282

292

COMMERCIAL

2,075

314

-

946

5,295

SBA

698

-

2,911

740

3,238

OTHER

1,810

1,935

2,038

1,873

1,673

    TOTAL PAST DUE

$           10,583

$           14,295

$             8,907

$           20,392

$           18,410



FIDELITY SOUTHERN CORPORATION

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)










YEAR ENDED


December 31, 2010


December 31, 2009


Average

Income/

Yield/


Average

Income/

Yield/

(DOLLARS IN THOUSANDS)

Balance

Expense

Rate


Balance

Expense

Rate

Assets








Interest-earning assets :








Loans, net of unearned income








 Taxable

$      1,475,351

$         87,104

5.90%


$      1,444,423

$         86,643

6.00%

 Tax-exempt (1)

5,267

324

6.17%


6,817

395

5.93%

    Total loans

1,480,618

87,428

5.90%


1,451,240

87,038

6.00%









Investment securities








 Taxable

208,834

7,302

3.50%


227,731

9,901

4.35%

 Tax-exempt (2)

11,706

730

6.23%


14,760

898

6.09%

    Total investment securities

220,540

8,032

3.65%


242,491

10,799

4.47%









Interest-bearing deposits

74,792

177

0.24%


55,149

139

0.25%

Federal funds sold

613

1

0.07%


11,013

24

0.22%

    Total interest-earning assets

1,776,563

95,638

5.38%


1,759,893

98,000

5.57%









Cash and due from banks

12,213




25,900



Allowance for loan losses

(28,085)




(33,632)



Premises and equipment, net

18,877




18,725



Other real estate

23,225




21,527



Other assets

76,864




66,461



    Total assets

$      1,879,657




$      1,858,874



















Liabilities and shareholders' equity








Interest-bearing liabilities :








Demand deposits

$         344,607

$           3,014

0.87%


$         236,819

$           2,794

1.18%

Savings deposits

415,516

5,767

1.39%


333,865

6,963

2.09%

Time deposits

633,374

14,664

2.32%


829,229

28,864

3.48%

    Total interest-bearing deposits

1,393,497

23,445

1.68%


1,399,913

38,621

2.76%









Federal funds purchased

740

7

0.94%


-

-

-

Securities sold under agreements to








 repurchase

22,436

442

1.97%


29,237

390

1.33%

Other short-term borrowings

14,493

572

3.94%


6,407

227

3.54%

Subordinated debt

67,527

4,502

6.67%


67,527

4,650

6.89%

Long-term debt

61,575

1,595

2.59%


66,096

2,121

3.21%

    Total interest-bearing liabilities

1,560,268

30,563

1.96%


1,569,180

46,009

2.93%









Noninterest-bearing :








Demand deposits

169,120




142,656



Other liabilities

15,137




14,425



Shareholders' equity

135,132




132,613



 Total liabilities and








    shareholders' equity

$      1,879,657




$      1,858,874











Net interest income / spread


$         65,075

3.42%



$         51,991

2.64%

Net interest margin



3.66%




2.95%









(1)  Interest income includes the effect of taxable-equivalent

     adjustment for 2010 and 2009 of $112,000 and $129,000, respectively.

(2)  Interest income includes the effect of taxable-equivalent

     adjustment for 2010 and 2009 of $242,000 and $288,000, respectively.



FIDELITY SOUTHERN CORPORATION

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)










QUARTER ENDED


December 31, 2010


December 31, 2009


Average

Income/

Yield/


Average

Income/

Yield/

(DOLLARS IN THOUSANDS)

Balance

Expense

Rate


Balance

Expense

Rate

Assets








Interest-earning assets :








Loans, net of unearned income








 Taxable

$       1,568,247

$         22,377

5.67%


$      1,426,348

$         21,736

6.05%

 Tax-exempt (1)

5,227

82

6.21%


5,897

90

6.26%

    Total loans

1,573,474

22,459

5.67%


1,432,245

21,826

6.05%









Investment securities








 Taxable

167,523

1,318

3.15%


237,112

2,491

4.20%

 Tax-exempt (2)

11,705

183

6.26%


11,941

185

6.18%

    Total investment securities

179,228

1,501

3.36%


249,053

2,676

4.31%









Interest-bearing deposits

44,798

29

0.26%


89,777

54

0.24%

Federal funds sold

601

-

0.07%


5,863

3

0.22%

    Total interest-earning assets

1,798,101

23,989

5.29%


1,776,938

24,559

5.48%









Cash and due from banks

22,349




24,384



Allowance for loan losses

(27,663)




(31,844)



Premises and equipment, net

19,411




18,285



Other real estate

21,560




21,245



Other assets

75,012




68,162



    Total assets

$       1,908,770




$      1,877,170



















Liabilities and shareholders' equity








Interest-bearing liabilities :








Demand deposits

$          433,452

$              798

0.73%


$         252,732

$              606

0.95%

Savings deposits

379,991

1,084

1.13%


426,124

1,783

1.66%

Time deposits

588,528

2,831

1.91%


733,904

5,584

3.02%

    Total interest-bearing deposits

1,401,971

4,713

1.33%


1,412,760

7,973

2.24%









Federal funds purchased

-

-

-


-

-

-

Securities sold under agreements to








 repurchase

22,077

123

2.21%


15,188

18

0.46%

Other short-term borrowings

-

-

0.00%


17,989

177

3.91%

Subordinated debt

67,527

1,124

6.60%


67,527

1,123

6.60%

Long-term debt

75,000

460

2.44%


59,511

449

2.99%

    Total interest-bearing liabilities

1,566,575

6,420

1.63%


1,572,975

9,740

2.46%









Noninterest-bearing :








Demand deposits

185,866




158,581



Other liabilities

16,290




14,032



Shareholders' equity

140,039




131,582



 Total liabilities and








    shareholders' equity

$       1,908,770




$      1,877,170











Net interest income / spread


$         17,569

3.66%



$         14,819

3.02%

Net interest margin



3.88%




3.31%









(1)  Interest income includes the effect of taxable-equivalent

     adjustment for 2010 and 2009 of $29,000 and $29,000, respectively.

(2)  Interest income includes the effect of taxable-equivalent

     adjustment for 2010 and 2009 of $61,000 and $61,000, respectively.



Contacts:

Martha Fleming, Steve Brolly


Fidelity Southern Corporation (404) 240-1504



SOURCE Fidelity Southern Corporation