Fidelity Southern Corporation Reports Fourth Quarter Net Income; Loss for Year; Decreased Nonperforming Assets, Increased Capital Ratios and Liquidity Levels

Jan 21, 2010, 13:27 ET from Fidelity Southern Corporation

ATLANTA, Jan. 21 /PRNewswire-FirstCall/ -- Fidelity Southern Corporation (“Fidelity” or “the Company”) (Nasdaq: LION), holding company for Fidelity Bank (the “Bank”), reported net income of $1.9 million for the fourth quarter of 2009 compared to a net loss of $7.6 million for the fourth quarter of 2008 and a net income of $398,000 for the third quarter of 2009.  For the year ended December 31, 2009, the net loss was $3.9 million compared to a net loss of $12.2 million for the year ended December 31, 2008.  Basic and diluted income per share for the fourth quarter of 2009 were each $.11 compared to a loss per share of $.78 for the fourth quarter of 2008 and a loss per share of $.04 for the third quarter in 2009.  Basic and diluted loss per share for the year ended December 31, 2009, were $.71 compared to a loss per share of $1.27 for 2008.

For the quarter ended

(dollars in thousands)

12/31/2008

3/31/2009

6/30/2009

9/30/2009

12/31/2009

Net (Loss) Income

$ (7,569)

$ (3,376)

$ (2,805)

$    398 

$  1,928 

Taxes

(5,101)

(2,434)

(2,095)

(346)

920 

Provision

14,700 

9,600 

7,200 

4,500 

7,500 

Pre-Tax, Pre-Provision Earnings

2,030 

3,790 

2,300 

4,552 

10,348 

Less Security Gains

– 

– 

– 

(519)

(4,789)

Core Operating Earnings

$  2,030 

$  3,790 

$  2,300 

$ 4,033 

$  5,559 

We show core operating earnings which remove taxes, provisions, 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.

Chairman James B. Miller, Jr. said, “We believe the recession which began in 2007 will continue through 2010 with a slow improvement going forward.  Despite this environment, Palmer Proctor and our team have worked to reposition our Company.  We believe interest rates are subject to increase this year.  Because of this interest rate risk, we have begun repositioning our investment portfolio resulting in substantial gains in addition to improving core earnings.  Our real estate capital exposure continued its rapid decline to 77% at year-end 2009 from 124% at year-end 2008 for construction and to 144% from 172% for all real estate subject to the 100% and 300% regulations, while we are one of the few banks continuing to lend for home construction.  The most dramatic change was that mortgage loans originated for single family homes increased to $872 million in 2009 from $20 million in 2008.  Transaction deposit accounts (including savings) increased a very substantial 56% in 2009 reflecting the continuing movement of deposits from other area banks.  These results are in part because employment following receipt of TARP has increased to 500 year-end 2009 from 373 at year-end 2008 giving us additional reach and strength in all lending areas and in deposit generation.  This repositioning, margin improvements, and other significant changes are explained in some detail in this report.”

CAPITAL

Fidelity reported a total risk based capital ratio for the Bank of 13.44% at December 31, 2009, compared to 12.92% at December 31, 2008.  The Leverage Capital ratio at the Bank was 9.24% at December 31, 2009, compared to 9.97% at December 31, 2008.  Both ratios exceeded required regulatory minimums for well-capitalized institutions.  At December 31, 2009, the total risk based capital ratio increased 25 basis points from September 30, 2009, and the leverage ratio increased 19 basis points from September 30, 2009.

LIQUIDITY

The Company’s net liquid asset ratio, defined as federal funds sold, investments maturing within 30 days, unpledged securities, available unsecured federal funds lines of credit, FHLB borrowing capacity and available brokered certificates of deposit divided by total assets increased from 13.1% at December 31, 2008, to 18.8% at December 31, 2009.  

DEPOSITS

Total deposits were $1.551 billion at December 31, 2009, compared to $1.444 billion at December 31, 2008.  The designed change to the deposit mix and reduction in the interest rate paid on deposit accounts during the period demonstrates the Company’s commitment to improved net interest margin and liquidity.

($ in thousands)

December 31,

2009

September 30,

2009

December 31,

2008

$

%

$

%

$

%

Pure deposits

$   850.6   

54.9%

$   822.3  

51.2%

$   546.8  

37.9%

Core deposits

$1,194.3   

77.0%

$1,203.8  

74.9%

$   936.4  

64.9%

Time Deposits > $100,000

$   257.4   

16.6%

$   294.7  

18.3%

$   317.5  

22.0%

Brokered deposits

$     99.0   

6.4%

$   109.0  

6.8%

$   189.8  

13.1%

Total deposits

$1,550.7   

100.0%

$1,607.5  

100.0%

$1,443.7  

100.0%

Quarterly rate on deposits

2.01%

2.37%

3.15%

Pure deposits are all transactional and savings deposits (excludes all time deposits) and Core deposits are transactional, savings, and time deposits under $100,000.  The Bank has aggressively marketed its non-certificate of deposit products in 2009.  As a result, demand, money market and savings accounts increased $303.8 million or 56% compared to December 31, 2008.

ALLOWANCE AND PROVISION

The provision for loan losses for the fourth quarter of 2009 was $7.5 million compared to $14.7 million for the same period in 2008.  In 2008, management increased reserves more than the net charge-offs as the credit crisis was growing.  By the fourth quarter of 2009, non-performing assets continued to decrease from the 2008 levels.

(dollars in millions)

12/31/2008

3/31/2009

6/30/2009

9/30/2009

12/31/2009

Non-performing assets

$     115.2

$     123.5

$     118.1

$     106.3

$       92.9

Net charge-offs for the fourth quarter of 2008 were $7.0 million.  In the fourth quarter of 2009 charge-offs were $13.0 million which reflected charge-offs of specific reserves previously provided for certain construction loans.  The provision for loan losses for the year ended December 31, 2009, was $28.8 million compared to $36.6 million for 2008.  For the year ended December 31, 2009, net charge-offs were $32.4 million compared to $19.4 million for 2008.  The ratio of net charge-offs to average loans outstanding was 2.44% for the year ended December 31, 2009, compared to 1.36% for 2008.  Fidelity reported an allowance for loan losses of $30.1 million or 2.33% of total loans at December 31, 2009, compared to $33.7 million or 2.43% of total loans at December 31, 2008, as a result of a decrease in loan outstandings and improving nonaccrual and nonperforming trends in the indirect portfolio.  During the recession of the past two years, the Bank has charged off a total of $51.8 million in loans while at the same time providing a substantial $65.4 million, or 126% of charge-offs, in provision for loan losses.

NONPERFORMING ASSETS

Nonperforming loans, repossessions and other real estate (“ORE”) totaled $92.9 million at the end of the fourth quarter of 2009, a decrease of $13.4 million from September 30, 2009, and a decrease of $22.3 million from December 31, 2008.

Nonperforming residential construction and development loans at December 31, 2009, included 150 houses and 538 lots and land totaling approximately $56.0 million.  During the fourth quarter, approximately $5.5 million of nonperforming construction loans were paid down by our customers while approximately $4.3 million in construction loans were moved to nonperforming.

During the fourth quarter, $4.5 million of ORE assets were sold while $5.0 million were added to ORE.  ORE consists of 39 houses, representing 28% of the total ORE balance, 282 lots and four commercial properties.  ORE remained relatively unchanged at $21.8 million at December 31, 2009, compared to $21.2 million at September 30, 2009.  It was $15.1 million at December 31, 2008.

REAL ESTATE

New residential construction loan advances made during the quarter totaled $5.1 million, while the payoffs of construction loans totaled $24.0 million.  Residential construction and A&D loans totaled $156.7 million at December 31, 2009, which was down 12.6% from $179.2 million at September 30, 2009.  There were 375 houses and 1,617 lots financed at December 31, 2009, compared to 523 houses and 1,939 lots at December 31, 2008.

Total residential and commercial construction and land loans decreased to $154.8 million or 12.0% of loans from $187.2 million or 14.2% of loans at September 30, 2009, and $245.2 million or 17.7% of loans at December 31, 2008, and as a percentage of capital decreased from 94% at September 30, 2009, to 77% at December 31, 2009.  The regulatory guideline is a maximum of 100%.

All real estate loans, excluding owner-occupied properties, as a percentage of capital decreased to 144% at December 31, 2009, from 147% at September 30, 2009.  The regulatory guideline is a maximum of 300%.  

NET INTEREST INCOME

Net interest income for the fourth quarter increased $4.0 million or 37.7% when compared to the same period in 2008, and increased $928,000 or 6.7% compared to third quarter of 2009.  Net interest margin increased 69 basis points to 3.31% in the fourth quarter of 2009 compared to 2.62% in the fourth quarter of 2008 and 3.10% in the third quarter of 2009.  In addition, average total interest earning assets increased $136.9 million or 8.3% for the quarter, ended December 31, 2009, compared to the same quarter in 2008.  Net interest income for the year ended December 31, 2009, increased $5.2 million or 11.1% over the same period in 2008.  The net interest margin increased 11 basis points to 2.95% for the year ended December 31, 2009, compared to 2.84% for the same period in 2008.  The increase in net interest income for the quarter and year to date is a result of a greater reduction in the cost of funds than the decrease in the yield on earning assets and the increase in earning assets.

INTEREST INCOME

Total interest income for the fourth quarter of 2009 increased $140,000 or .6% compared to the same period in 2008.  The decrease of 45 basis points in the yield on average interest-earning assets was more than offset by growth in average interest-earning assets for the fourth quarter 2009, which increased $136.9 million or 8.3%.  Total interest income for the year ended December 31, 2009, decreased $6.5 million or 6.2% compared to the same period in 2008.  The decrease in interest income in 2009 was the result of a decrease of 77 basis points in the yield on average interest-earning assets offset in part by the growth in average interest-earning assets in 2009, which increased $110.9 million or 6.7%.  The decrease in yield was primarily the result of the lower prime lending rate in 2009 compared to 2008.

INTEREST EXPENSE

Interest expense for the fourth quarter of 2009 decreased $3.9 million or 28.5% compared to the same period in 2008.  The decrease in interest expense was attributable to a 117 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $79.1 million or 5.3%.  For the year ended December 31, 2009, interest expense decreased $11.6 million or 20.2% compared to the same period in 2008.  The decrease in interest expense was attributable to a 92 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $71.6 million or 4.8%.  In addition to the general decrease in general deposit rates, the Bank’s shift in deposit mix toward core demand and savings accounts contributed to the reduction in the cost of funds.  During 2009, high cost time deposits matured and the replacement cost was significantly lower.  In addition, with the additional retail deposits and increasing liquidity during 2009 compared to 2008, management was able to reduce high cost brokered deposits by $91 million or 48%.  The reduction in brokered deposits is expected to continue in 2010.

NONINTEREST INCOME

Noninterest income increased $8.4 million and $16.3 million or 225.7% and 92.7% to $12.2 million and $34.0 million for the fourth quarter and year ended December 31, 2009, respectively, compared to the same periods in 2008.  This increase in noninterest income was a result of higher mortgage banking activities due to the expansion of the mortgage division in 2009 and higher investment securities gains.  Revenue from mortgage banking activities increased to $3.6 million and $15.0 million for the fourth quarter and year ended December 31, 2009, respectively, compared to $95,000 and $340,000 for the same periods in 2008.  Mortgage production increased from $20 million in 2008 to $872 million in 2009.  Securities gains increased to $4.8 million and $5.3 million for the fourth quarter and year ended December 31, 2009, respectively.  The gains are a result of the Bank repositioning the investment portfolio as part of the interest rate, cash flow, and capital risk rating strategies.  The increase for the year ended December 31, 2009, was partially offset by lower Indirect lending income, which decreased $998,000 or 19.1% to $4.2 million and lower other income.  Indirect lending revenues were hindered by the lack of liquidity in the financial markets resulting in fewer sales which resulted in lower gains on sales.  Secondary markets in the last several months, however, have begun to show increased buyer interest and better premiums.

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter increased $4.2 million or 33.5% to $16.6 million compared to the same period in 2008.  The increase is a result of higher salaries and employee benefits of $2.3 million or 37.3% to $8.3 million as the Bank increased the number of employees as a result of the expansion of the mortgage division and an increase in lenders in the SBA, Commercial, Private Banking and Indirect Auto Lending divisions.  Additionally, the increase was due to higher other operating expense, which increased $827,000 or 33.8% to $3.3 million due primarily to higher foreclosure expense.  Noninterest expense for the year ended December 31, 2009, increased $15.7 million or 32.2% to $64.6 million compared to 2008.  The increase is a result of higher salaries and employee benefits due to an increase in headcount which increased $7.4 million or 28.8% to $33.3 million, and higher operating expenses, which increased $4.1 million or 52.9% to $11.9 million due primarily to higher ORE related expenses and foreclosure expenses.  FDIC insurance premiums increased $2.6 million or 257.7% compared to 2008 as a result of the FDIC special assessment and deposit growth.  Also, during 2008 the Company reversed a Visa litigation accrual of $415,000 which did not reoccur in 2009.

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 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 2008 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,

2009

2008

2009

2008

INTEREST INCOME

  LOANS, INCLUDING FEES

$      21,797 

$      22,468 

$      86,909 

$    96,398 

  INVESTMENT SECURITIES

2,615 

1,835 

10,511 

7,441 

  FEDERAL FUNDS SOLD AND BANK DEPOSITS

57 

26 

163 

215 

     TOTAL INTEREST INCOME

24,469 

24,329 

97,583 

104,054 

INTEREST EXPENSE

 DEPOSITS

7,973 

11,518 

38,621 

48,722 

 SHORT-TERM BORROWINGS

195 

385 

617 

2,065 

 SUBORDINATED DEBT

1,123 

1,307 

4,650 

5,284 

 OTHER LONG-TERM DEBT

449 

419 

2,121 

1,565 

     TOTAL INTEREST EXPENSE

9,740 

13,629 

46,009 

57,636 

NET INTEREST INCOME

14,729 

10,700 

51,574 

46,418 

PROVISION FOR LOAN LOSSES

7,500 

14,700 

28,800 

36,550 

NET INTEREST INCOME AFTER

 PROVISION FOR LOAN LOSSES

7,229 

(4,000)

22,774 

9,868 

NONINTEREST INCOME

 SERVICE CHARGES ON DEPOSIT ACCOUNTS

1,149 

1,168 

4,413 

4,757 

 OTHER FEES AND CHARGES

519 

470 

2,005 

1,944 

 MORTGAGE BANKING ACTIVITIES

3,623 

95 

14,961 

340 

 INDIRECT LENDING ACTIVITIES

992 

1,040 

4,229 

5,227 

 SBA LENDING ACTIVITIES

515 

86 

1,099 

1,250 

 SECURITIES GAINS

4,789 

5,308 

1,306 

 BANK OWNED LIFE INSURANCE

332 

374 

1,280 

1,278 

 OTHER OPERATING INCOME

271 

510 

683 

1,534 

   TOTAL NONINTEREST INCOME

12,190 

3,743 

33,978 

17,636 

NONINTEREST EXPENSE

 SALARIES AND EMPLOYEE BENEFITS

8,292 

6,040 

33,261 

25,827 

 FURNITURE AND EQUIPMENT

666 

672 

2,721 

2,949 

 NET OCCUPANCY

1,125 

1,071 

4,421 

4,137 

 COMMUNICATION EXPENSES

422 

401 

1,617 

1,654 

 PROFESSIONAL AND OTHER SERVICES

1,288 

1,031 

4,916 

3,823 

 ADVERTISING AND PROMOTION

150 

236 

738 

645 

 STATIONERY, PRINTING AND SUPPLIES

169 

137 

624 

647 

 INSURANCE EXPENSES

276 

79 

688 

344 

 FDIC INSURANCE EXPENSE

910 

300 

3,666 

1,025 

 OTHER OPERATING EXPENSES

3,273 

2,446 

11,910 

7,788 

   TOTAL NONINTEREST EXPENSE

16,571 

12,413 

64,562 

48,839 

INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)

2,848 

(12,670)

(7,810)

(21,335)

INCOME TAX EXPENSE (BENEFIT)

920 

(5,101)

(3,955)

(9,099)

NET INCOME (LOSS)

1,928 

(7,569)

(3,855)

(12,236)

PREFERRED STOCK DIVIDENDS

(824)

(106)

(3,293)

(106)

NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY

$        1,104 

$      (7,675)

$       (7,148)

$   (12,342)

EARNINGS (LOSS) PER SHARE:

   BASIC EARNINGS (LOSS) PER SHARE

$          0.11 

$        (0.78)

$         (0.71)

$       (1.27)

   DILUTED EARNINGS (LOSS) PER SHARE

$          0.11 

$        (0.78)

$         (0.71)

$       (1.27)

WEIGHTED AVERAGE COMMON

SHARES OUTSTANDING-BASIC

10,058,061 

9,799,336 

10,002,610 

9,717,238 

WEIGHTED AVERAGE COMMON

SHARES OUTSTANDING-FULLY DILUTED

10,212,455 

9,799,336 

10,002,610 

9,717,238 

FIDELITY SOUTHERN CORPORATION

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(DOLLARS IN THOUSANDS)

DECEMBER 31,

DECEMBER 31,

ASSETS

2009

2008

CASH AND DUE FROM  BANKS

$       170,692 

$         68,841 

FEDERAL FUNDS SOLD

428 

23,184 

   CASH AND CASH EQUIVALENTS

171,120 

92,025 

INVESTMENTS AVAILABLE-FOR-SALE

136,917 

128,749 

INVESTMENTS HELD-TO-MATURITY

19,326 

24,793 

INVESTMENT IN FHLB STOCK

6,767 

5,282 

LOANS HELD-FOR-SALE

131,231 

55,840 

LOANS

1,289,859 

1,388,022 

ALLOWANCE FOR LOAN LOSSES

(30,072)

(33,691)

LOANS, NET

1,259,787 

1,354,331 

PREMISES AND EQUIPMENT, NET

18,092 

19,311 

OTHER REAL ESTATE

21,780 

15,063 

ACCRUED INTEREST RECEIVABLE

7,832 

8,092 

BANK OWNED LIFE INSURANCE

29,058 

27,868 

OTHER ASSETS

49,610 

31,759 

         TOTAL ASSETS

$    1,851,520 

$    1,763,113 

LIABILITIES

DEPOSITS:

   NONINTEREST-BEARING DEMAND

$       157,511 

$       138,634 

   INTEREST-BEARING DEMAND/

      MONEY MARKET

252,493 

208,723 

   SAVINGS

440,596 

199,465 

   TIME DEPOSITS, $100,000 AND OVER

257,450 

317,540 

   OTHER TIME DEPOSITS  

442,675 

579,320 

        TOTAL DEPOSIT LIABILITIES

1,550,725 

1,443,682 

SHORT-TERM BORROWINGS

41,870 

55,017 

SUBORDINATED DEBT

67,527 

67,527 

OTHER LONG-TERM DEBT

50,000 

47,500 

ACCRUED INTEREST PAYABLE

4,504 

7,038 

OTHER LIABILITIES

7,209 

5,745 

         TOTAL LIABILITIES

1,721,835 

1,626,509 

SHAREHOLDERS' EQUITY

PREFERRED STOCK

44,696 

43,813 

COMMON STOCK

53,314 

51,886 

ACCUMULATED OTHER COMPREHENSIVE

    (LOSS) INCOME

(64)

1,333 

RETAINED EARNINGS

31,739 

39,572 

         TOTAL SHAREHOLDERS' EQUITY

129,685 

136,604 

         TOTAL LIABILITIES AND SHARE-

                  HOLDERS' EQUITY

$    1,851,520 

$    1,763,113 

BOOK VALUE PER SHARE

$             8.44 

$             9.42 

SHARES OF COMMON STOCK OUTSTANDING

10,064,502 

9,854,572 

FIDELITY SOUTHERN CORPORATION

LOANS, BY CATEGORY

(UNAUDITED)

(DOLLARS IN THOUSANDS)

DECEMBER 31,

2009

2008

PERCENT CHANGE

COMMERCIAL, FINANCIAL AND AGRICULTURAL

$    113,604   

$    137,988   

(17.67)

%

TAX-EXEMPT COMMERCIAL

5,350   

7,508   

(28.74)

%

REAL ESTATE MORTGAGE - COMMERCIAL

287,354   

202,516   

41.89 

%

     TOTAL COMMERCIAL

406,308   

348,012   

16.75 

%

REAL ESTATE-CONSTRUCTION

154,785   

245,153   

(36.86)

%

REAL ESTATE-MORTGAGE

130,984   

115,527   

13.38 

%

CONSUMER INSTALLMENT

597,782   

679,330   

(12.00)

%

LOANS

1,289,859   

1,388,022   

(7.07)

%

LOANS HELD-FOR-SALE:

ORIGINATED RESIDENTIAL MORTGAGE LOANS

80,869   

967   

8,262.87 

%

SBA LOANS

20,362   

39,873   

(48.93)

%

INDIRECT AUTO LOANS

30,000   

15,000   

100.00 

%

    TOTAL LOANS HELD-FOR-SALE

131,231   

55,840   

135.01 

%

         TOTAL LOANS

$ 1,421,090   

$ 1,443,862   

FIDELITY SOUTHERN CORPORATION

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)

(DOLLARS IN THOUSANDS)

YEAR ENDED

DECEMBER 31,

2009

2008

BALANCE AT BEGINNING OF PERIOD

$         33,691   

$           16,557   

CHARGE-OFFS:

COMMERCIAL, FINANCIAL AND AGRICULTURAL

315   

99   

SBA

730   

220   

REAL ESTATE-CONSTRUCTION

20,217   

9,083   

REAL ESTATE-MORTGAGE

416   

332   

CONSUMER INSTALLMENT

11,622   

10,841   

TOTAL CHARGE-OFFS

33,300   

20,575   

RECOVERIES:

COMMERCIAL, FINANCIAL AND AGRICULTURAL

9   

5   

SBA

31   

215   

REAL ESTATE-CONSTRUCTION

76   

43   

REAL ESTATE-MORTGAGE

20   

14   

CONSUMER INSTALLMENT

745   

882   

TOTAL RECOVERIES

881   

1,159   

NET CHARGE-OFFS

32,419   

19,416   

PROVISION FOR LOAN LOSSES

28,800   

36,550   

BALANCE AT END OF PERIOD

$         30,072   

$           33,691   

RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE

LOANS OUTSTANDING, NET

2.44%

1.36%

ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS

2.33%

2.43%

NONPERFORMING ASSETS

(UNAUDITED)

(DOLLARS IN THOUSANDS)

DECEMBER 31,

SEPTEMBER 30,

2009

2008

2009

NONACCRUAL LOANS

$    69,743   

$      98,151   

$    83,494   

REPOSSESSIONS

1,393   

2,016   

1,562   

OTHER REAL ESTATE

21,780   

15,063   

21,239   

TOTAL NONPERFORMING ASSETS

$    92,916   

$    115,230   

$  106,295   

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

6.43%

7.89%

7.27%

FIDELITY SOUTHERN CORPORATION

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)

YEAR ENDED

December 31, 2009

December 31, 2008

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

$ 1,444,423   

$ 86,643   

6.00%

$ 1,472,573   

$ 96,009   

6.52%

 Tax-exempt (1)

6,817   

395   

5.93%

8,493   

581   

6.97%

    Total loans

1,451,240   

87,038   

6.00%

1,481,066   

96,590   

6.52%

Investment securities

 Taxable

227,731   

9,901   

4.35%

139,391   

6,867   

4.93%

 Tax-exempt (2)

14,760   

898   

6.09%

13,975   

833   

5.96%

    Total investment securities

242,491   

10,799   

4.47%

153,366   

7,700   

5.05%

Interest-bearing deposits

55,149   

139   

0.25%

2,630   

36   

1.38%

Federal funds sold

11,013   

24   

0.22%

11,960   

179   

1.49%

    Total interest-earning assets

1,759,893   

98,000   

5.57%

1,649,022   

104,505   

6.34%

Cash and due from banks

25,900   

22,239   

Allowance for loan losses

(33,632)  

(22,610)  

Premises and equipment, net

18,725   

19,537   

Other real estate

21,527   

12,624   

Other assets

66,461   

57,682   

    Total assets

$ 1,858,874   

$ 1,738,494   

Liabilities and shareholders' equity

Interest-bearing liabilities :

Demand deposits

$    236,819   

$   2,794   

1.18%

$    271,429   

$   6,226   

2.29%

Savings deposits

333,865   

6,963   

2.09%

209,301   

6,043   

2.89%

Time deposits

829,229   

28,864   

3.48%

836,049   

36,453   

4.36%

    Total interest-bearing deposits

1,399,913   

38,621   

2.76%

1,316,779   

48,722   

3.70%

Federal funds purchased

-   

-   

-   

9,001   

265   

2.94%

Securities sold under agreements to

 repurchase

29,237   

390   

1.33%

34,924   

921   

2.64%

Other short-term borrowings

6,407   

227   

3.54%

25,393   

879   

3.46%

Subordinated debt

67,527   

4,650   

6.89%

67,527   

5,284   

7.83%

Long-term debt

66,096   

2,121   

3.21%

43,948   

1,565   

3.56%

    Total interest-bearing liabilities

1,569,180   

46,009   

2.93%

1,497,572   

57,636   

3.85%

Noninterest-bearing :

Demand deposits

142,656   

128,706   

Other liabilities

14,425   

13,755   

Shareholders' equity

132,613   

98,461   

 Total liabilities and

    shareholders' equity

$ 1,858,874   

$ 1,738,494   

Net interest income / spread

$ 51,991   

2.64%

$ 46,869   

2.49%

Net interest margin

2.95%

2.84%

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

     adjustment for 2009 and 2008 of $129,000 and $192,000 respectively.

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

     adjustment for 2009 and 2008 of $288,000 and $259,000, respectively.

FIDELITY SOUTHERN CORPORATION

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)

QUARTER ENDED

December 31, 2009

December 31, 2008

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

$ 1,426,348   

$ 21,736   

6.05%

$ 1,452,376   

$ 22,383   

6.13%

 Tax-exempt (1)

5,897   

90   

6.26%

7,631   

128   

6.73%

    Total loans

1,432,245   

21,826   

6.05%

1,460,007   

22,511   

6.13%

Investment securities

 Taxable

237,112   

2,491   

4.20%

142,913   

1,679   

4.70%

 Tax-exempt (2)

11,941   

185   

6.18%

15,209   

227   

5.97%

    Total investment securities

249,053   

2,676   

4.31%

158,122   

1,906   

4.85%

Interest-bearing deposits

89,777   

54   

0.24%

5,003   

5   

0.41%

Federal funds sold

5,863   

3   

0.22%

16,955   

21   

0.49%

    Total interest-earning assets

1,776,938   

24,559   

5.48%

1,640,087   

24,443   

5.93%

Cash and due from banks

24,384   

22,239   

Allowance for loan losses

(31,844)  

(27,105)  

Premises and equipment, net

18,285   

19,752   

Other real estate

21,245   

16,933   

Other assets

68,162   

57,971   

    Total assets

$ 1,877,170   

$ 1,729,877   

Liabilities and shareholders' equity

Interest-bearing liabilities:

Demand deposits

$    252,732   

$      606   

0.95%

$    219,288   

$      945   

1.71%

Savings deposits

426,124   

1,783   

1.66%

199,964   

1,338   

2.66%

Time deposits

733,904   

5,584   

3.02%

905,505   

9,235   

4.06%

    Total interest-bearing deposits

1,412,760   

7,973   

2.24%

1,324,757   

11,518   

3.46%

Federal funds purchased

-   

-   

-   

250   

1   

2.16%

Securities sold under agreements to

 repurchase

15,188   

18   

0.46%

43,716   

296   

2.69%

Other short-term borrowings

17,989   

177   

3.91%

10,098   

88   

3.46%

Subordinated debt

67,527   

1,123   

6.60%

67,527   

1,307   

7.70%

Long-term debt

59,511   

449   

2.99%

47,500   

419   

3.52%

    Total interest-bearing liabilities

1,572,975   

9,740   

2.46%

1,493,848   

13,629   

3.63%

Noninterest-bearing:

Demand deposits

158,581   

127,220   

Other liabilities

14,032   

10,452   

Shareholders' equity

131,582   

98,357   

 Total liabilities and

    shareholders' equity

$ 1,877,170   

$ 1,729,877   

Net interest income / spread

$ 14,819   

3.02%

$ 10,814   

2.30%

Net interest margin

3.31%

2.62%

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

     adjustment for 2009 and 2008 of $29,000 and $43,000 respectively.

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

     adjustment for 2009 and 2008 of $61,000 and $71,000.

Contacts:

Martha Fleming, Steve Brolly

Fidelity Southern Corporation (404) 240-1504

SOURCE Fidelity Southern Corporation



RELATED LINKS

http://www.fidelitysouthern.com