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 $1.444 billion at December 31, 2008.
The designed change to the deposit mix and reduction in the
interest rate paid on deposit accounts during the period
demonstrates the Company's commitment to improved net interest
margin and liquidity. December 31, September 30, December 31, 2009
2009 2008 ($ in thousands) ------------ --------------
------------- $ % $ % $ % ----- ----- ----- ----- ----- ----- 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
http://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 (DOLLARS IN
THOUSANDS, EXCEPT PER SHARE DATA) DECEMBER 31, ------------ 2009
2008 ---- ---- INTEREST INCOME LOANS, INCLUDING FEES $21,797
$22,468 INVESTMENT SECURITIES 2,615 1,835 FEDERAL FUNDS SOLD AND
BANK DEPOSITS 57 26 --- --- TOTAL INTEREST INCOME 24,469 24,329
INTEREST EXPENSE DEPOSITS 7,973 11,518 SHORT-TERM BORROWINGS 195
385 SUBORDINATED DEBT 1,123 1,307 OTHER LONG-TERM DEBT 449 419 ---
--- TOTAL INTEREST EXPENSE 9,740 13,629 ----- ------ NET INTEREST
INCOME 14,729 10,700 PROVISION FOR LOAN LOSSES 7,500 14,700 -----
------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 7,229
(4,000) NONINTEREST INCOME SERVICE CHARGES ON DEPOSIT ACCOUNTS
1,149 1,168 OTHER FEES AND CHARGES 519 470 MORTGAGE BANKING
ACTIVITIES 3,623 95 INDIRECT LENDING ACTIVITIES 992 1,040 SBA
LENDING ACTIVITIES 515 86 SECURITIES GAINS 4,789 - BANK OWNED LIFE
INSURANCE 332 374 OTHER OPERATING INCOME 271 510 --- --- TOTAL
NONINTEREST INCOME 12,190 3,743 NONINTEREST EXPENSE SALARIES AND
EMPLOYEE BENEFITS 8,292 6,040 FURNITURE AND EQUIPMENT 666 672 NET
OCCUPANCY 1,125 1,071 COMMUNICATION EXPENSES 422 401 PROFESSIONAL
AND OTHER SERVICES 1,288 1,031 ADVERTISING AND PROMOTION 150 236
STATIONERY, PRINTING AND SUPPLIES 169 137 INSURANCE EXPENSES 276 79
FDIC INSURANCE EXPENSE 910 300 OTHER OPERATING EXPENSES 3,273 2,446
----- ----- TOTAL NONINTEREST EXPENSE 16,571 12,413 ------ ------
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) 2,848 (12,670)
INCOME TAX EXPENSE (BENEFIT) 920 (5,101) --- ------ NET INCOME
(LOSS) 1,928 (7,569) PREFERRED STOCK DIVIDENDS (824) (106) ----
---- NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY $1,104 $(7,675)
====== ======= EARNINGS (LOSS) PER SHARE: BASIC EARNINGS (LOSS) PER
SHARE $0.11 $(0.78) ===== ====== DILUTED EARNINGS (LOSS) PER SHARE
$0.11 $(0.78) ===== ====== WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING-BASIC 10,058,061 9,799,336 ========== =========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-FULLY DILUTED 10,212,455
9,799,336 ========== ========= YEAR ENDED (DOLLARS IN THOUSANDS,
EXCEPT PER SHARE DATA) DECEMBER 31, ------------ 2009 2008 ----
---- INTEREST INCOME LOANS, INCLUDING FEES $86,909 $96,398
INVESTMENT SECURITIES 10,511 7,441 FEDERAL FUNDS SOLD AND BANK
DEPOSITS 163 215 --- --- TOTAL INTEREST INCOME 97,583 104,054
INTEREST EXPENSE DEPOSITS 38,621 48,722 SHORT-TERM BORROWINGS 617
2,065 SUBORDINATED DEBT 4,650 5,284 OTHER LONG-TERM DEBT 2,121
1,565 ----- ----- TOTAL INTEREST EXPENSE 46,009 57,636 ------
------ NET INTEREST INCOME 51,574 46,418 PROVISION FOR LOAN LOSSES
28,800 36,550 ------ ------ NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 22,774 9,868 NONINTEREST INCOME SERVICE CHARGES ON
DEPOSIT ACCOUNTS 4,413 4,757 OTHER FEES AND CHARGES 2,005 1,944
MORTGAGE BANKING ACTIVITIES 14,961 340 INDIRECT LENDING ACTIVITIES
4,229 5,227 SBA LENDING ACTIVITIES 1,099 1,250 SECURITIES GAINS
5,308 1,306 BANK OWNED LIFE INSURANCE 1,280 1,278 OTHER OPERATING
INCOME 683 1,534 --- ----- TOTAL NONINTEREST INCOME 33,978 17,636
NONINTEREST EXPENSE SALARIES AND EMPLOYEE BENEFITS 33,261 25,827
FURNITURE AND EQUIPMENT 2,721 2,949 NET OCCUPANCY 4,421 4,137
COMMUNICATION EXPENSES 1,617 1,654 PROFESSIONAL AND OTHER SERVICES
4,916 3,823 ADVERTISING AND PROMOTION 738 645 STATIONERY, PRINTING
AND SUPPLIES 624 647 INSURANCE EXPENSES 688 344 FDIC INSURANCE
EXPENSE 3,666 1,025 OTHER OPERATING EXPENSES 11,910 7,788 ------
----- TOTAL NONINTEREST EXPENSE 64,562 48,839 ------ ------ INCOME
(LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) (7,810) (21,335) INCOME
TAX EXPENSE (BENEFIT) (3,955) (9,099) ------ ------ NET INCOME
(LOSS) (3,855) (12,236) PREFERRED STOCK DIVIDENDS (3,293) (106)
------ ---- NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY $(7,148)
$(12,342) ======= ======== EARNINGS (LOSS) PER SHARE: BASIC
EARNINGS (LOSS) PER SHARE $(0.71) $(1.27) ====== ====== DILUTED
EARNINGS (LOSS) PER SHARE $(0.71) $(1.27) ====== ====== WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING-BASIC 10,002,610 9,717,238
========== ========= WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING-FULLY DILUTED 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 ----------------- Average
Income/ Yield/ (dollars in thousands) Balance Expense Rate -------
------- ---- Assets Interest-earning assets : Loans, net of
unearned income Taxable $1,444,423 $86,643 6.00% Tax-exempt (1)
6,817 395 5.93% ----- --- Total loans 1,451,240 87,038 6.00%
Investment securities Taxable 227,731 9,901 4.35% Tax-exempt (2)
14,760 898 6.09% ------ --- Total investment securities 242,491
10,799 4.47% Interest-bearing deposits 55,149 139 0.25% Federal
funds sold 11,013 24 0.22% ------ --- Total interest-earning assets
1,759,893 98,000 5.57% Cash and due from banks 25,900 Allowance for
loan losses (33,632) Premises and equipment, net 18,725 Other real
estate 21,527 Other assets 66,461 ------ Total assets $1,858,874
========== Liabilities and shareholders' equity Interest-bearing
liabilities : Demand deposits $236,819 $2,794 1.18% Savings
deposits 333,865 6,963 2.09% Time deposits 829,229 28,864 3.48%
------- ------ Total interest-bearing deposits 1,399,913 38,621
2.76% Federal funds purchased - - - Securities sold under
agreements to repurchase 29,237 390 1.33% Other short-term
borrowings 6,407 227 3.54% Subordinated debt 67,527 4,650 6.89%
Long-term debt 66,096 2,121 3.21% ------ ----- Total
interest-bearing liabilities 1,569,180 46,009 2.93%
Noninterest-bearing : Demand deposits 142,656 Other liabilities
14,425 Shareholders' equity 132,613 ------- Total liabilities and
shareholders' equity $1,858,874 ========== Net interest income /
spread $51,991 2.64% ======= Net interest margin 2.95% YEAR ENDED
---------- December 31, 2008 ----------------- Average Income/
Yield/ (dollars in thousands) Balance Expense Rate ------- -------
---- Assets Interest-earning assets : Loans, net of unearned income
Taxable $1,472,573 $96,009 6.52% Tax-exempt (1) 8,493 581 6.97%
----- --- Total loans 1,481,066 96,590 6.52% Investment securities
Taxable 139,391 6,867 4.93% Tax-exempt (2) 13,975 833 5.96% ------
--- Total investment securities 153,366 7,700 5.05%
Interest-bearing deposits 2,630 36 1.38% Federal funds sold 11,960
179 1.49% ------ --- Total interest-earning assets 1,649,022
104,505 6.34% Cash and due from banks 22,239 Allowance for loan
losses (22,610) Premises and equipment, net 19,537 Other real
estate 12,624 Other assets 57,682 ------ Total assets $1,738,494
========== Liabilities and shareholders' equity Interest-bearing
liabilities : Demand deposits $271,429 $6,226 2.29% Savings
deposits 209,301 6,043 2.89% Time deposits 836,049 36,453 4.36%
------- ------ Total interest-bearing deposits 1,316,779 48,722
3.70% Federal funds purchased 9,001 265 2.94% Securities sold under
agreements to repurchase 34,924 921 2.64% Other short-term
borrowings 25,393 879 3.46% Subordinated debt 67,527 5,284 7.83%
Long-term debt 43,948 1,565 3.56% ------ ----- Total
interest-bearing liabilities 1,497,572 57,636 3.85%
Noninterest-bearing : Demand deposits 128,706 Other liabilities
13,755 Shareholders' equity 98,461 ------ Total liabilities and
shareholders' equity $1,738,494 ========== Net interest income /
spread $46,869 2.49% ======= Net interest margin 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
----------------- Average Income/ Yield/ (dollars in thousands)
Balance Expense Rate ------- ------- ---- Assets Interest-earning
assets: Loans, net of unearned income Taxable $1,426,348 $21,736
6.05% Tax-exempt (1) 5,897 90 6.26% ----- --- Total loans 1,432,245
21,826 6.05% Investment securities Taxable 237,112 2,491 4.20%
Tax-exempt (2) 11,941 185 6.18% ------ --- Total investment
securities 249,053 2,676 4.31% Interest-bearing deposits 89,777 54
0.24% Federal funds sold 5,863 3 0.22% ----- --- Total
interest-earning assets 1,776,938 24,559 5.48% Cash and due from
banks 24,384 Allowance for loan losses (31,844) Premises and
equipment, net 18,285 Other real estate 21,245 Other assets 68,162
------ Total assets $1,877,170 ========== Liabilities and
shareholders' equity Interest-bearing liabilities: Demand deposits
$252,732 $606 0.95% Savings deposits 426,124 1,783 1.66% Time
deposits 733,904 5,584 3.02% ------- ----- Total interest-bearing
deposits 1,412,760 7,973 2.24% Federal funds purchased - - -
Securities sold under agreements to repurchase 15,188 18 0.46%
Other short-term borrowings 17,989 177 3.91% Subordinated debt
67,527 1,123 6.60% Long-term debt 59,511 449 2.99% ------ --- Total
interest-bearing liabilities 1,572,975 9,740 2.46%
Noninterest-bearing: Demand deposits 158,581 Other liabilities
14,032 Shareholders' equity 131,582 ------- Total liabilities and
shareholders' equity $1,877,170 ========== Net interest income /
spread $14,819 3.02% ======= Net interest margin 3.31% QUARTER
ENDED ------------- December 31, 2008 ----------------- Average
Income/ Yield/ (dollars in thousands) Balance Expense Rate -------
------- ---- Assets Interest-earning assets: Loans, net of unearned
income Taxable $1,452,376 $22,383 6.13% Tax-exempt (1) 7,631 128
6.73% ----- --- Total loans 1,460,007 22,511 6.13% Investment
securities Taxable 142,913 1,679 4.70% Tax-exempt (2) 15,209 227
5.97% ------ --- Total investment securities 158,122 1,906 4.85%
Interest-bearing deposits 5,003 5 0.41% Federal funds sold 16,955
21 0.49% ------ --- Total interest-earning assets 1,640,087 24,443
5.93% Cash and due from banks 22,239 Allowance for loan losses
(27,105) Premises and equipment, net 19,752 Other real estate
16,933 Other assets 57,971 ------ Total assets $1,729,877
========== Liabilities and shareholders' equity Interest-bearing
liabilities: Demand deposits $219,288 $945 1.71% Savings deposits
199,964 1,338 2.66% Time deposits 905,505 9,235 4.06% ------- -----
Total interest-bearing deposits 1,324,757 11,518 3.46% Federal
funds purchased 250 1 2.16% Securities sold under agreements to
repurchase 43,716 296 2.69% Other short-term borrowings 10,098 88
3.46% Subordinated debt 67,527 1,307 7.70% Long-term debt 47,500
419 3.52% ------ --- Total interest-bearing liabilities 1,493,848
13,629 3.63% Noninterest-bearing: Demand deposits 127,220 Other
liabilities 10,452 Shareholders' equity 98,357 ------ Total
liabilities and shareholders' equity $1,729,877 ========== Net
interest income / spread $10,814 2.30% ======= Net interest margin
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 DATASOURCE: Fidelity Southern Corporation CONTACT: Martha
Fleming or Steve Brolly, +1-404-240-1504, both of Fidelity Southern
Corporation Web Site: http://www.fidelitysouthern.com/
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