FIDELITY SOUTHERN CORPORATION 
By
Chairman
CAPITAL
Fidelity reported total risk based capital ratio improved in the Bank to
13.09% at
TARP
Miller also said, "The
ALLOWANCE
Fidelity reported an increase in the allowance for loan losses to
PROVISION
The provision for loan losses for the fourth quarter and the year 2008 was
OREO, CHARGE-OFFS, NONPERFORMING
Net charge-offs decreased to
Nonperforming loans, repossessions and other real estate totaled
Nonperforming residential construction and development loans at
During the fourth quarter,
Management believes it has identified and placed on nonaccrual, charged down, and charged off nonperforming assets timely and appropriately.
COST OF FUNDS
Cost of funds decreased 106 basis points to 3.63% and 94 basis points to
3.85% for the fourth quarter and the year 2008, respectively, compared to the
same periods in 2007 as a result of moderating deposit pricing. Totally Free
checking balances increased 43% this year, while remote deposit volume grew to
31.9% of all deposits in
REAL ESTATE
New residential construction loan advances made during the quarter totaled
Construction and A&D loans totaled
Residential construction and A&D loans as a percentage of capital
decreased from 177% at
All real estate loans, except for owner-occupied properties, as a
percentage of capital decreased from 237% at
NET INCOME
The decrease in net income for both the fourth quarter and the year 2008 compared to the prior year was primarily the result of a higher provision for loan losses due to higher charge-offs and adverse credit trends in the real estate construction and in the consumer loan portfolios requiring an increase in the allowance for loan losses.
NET INTEREST INCOME
Net interest income for the fourth quarter decreased
INTEREST INCOME
Total interest income for the fourth quarter and the year 2008 decreased
INTEREST EXPENSE
Interest expense for the fourth quarter and the year 2008 decreased
NONINTEREST INCOME
Noninterest income decreased
Noninterest income decreased
NONINTEREST EXPENSE
Noninterest expense for the fourth quarter decreased
Noninterest expense for the year ended
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
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 2007 Annual Report filed on Form 10-K with the Securities and Exchange Commission.
Contacts: Martha Fleming, Steve Brolly
Fidelity Southern Corporation (404) 240-1504
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT QUARTER ENDED YEAR ENDED
PER SHARE DATA) DECEMBER 31, DECEMBER 31,
2008 2007 2008 2007
INTEREST INCOME
LOANS, INCLUDING FEES $22,468 $26,855 $96,398 $105,924
INVESTMENT SECURITIES 1,835 1,765 7,441 7,237
FEDERAL FUNDS SOLD AND BANK
DEPOSITS 26 60 215 301
TOTAL INTEREST INCOME 24,329 28,680 104,054 113,462
INTEREST EXPENSE
DEPOSITS 11,518 14,341 48,722 57,902
SHORT-TERM BORROWINGS 385 739 2,065 2,316
SUBORDINATED DEBT 1,307 1,453 5,284 4,945
OTHER LONG-TERM DEBT 419 341 1,565 1,519
TOTAL INTEREST EXPENSE 13,629 16,874 57,636 66,682
NET INTEREST INCOME 10,700 11,806 46,418 46,780
PROVISION FOR LOAN LOSSES 14,700 3,550 36,550 8,500
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES (4,000) 8,256 9,868 38,280
NONINTEREST INCOME
SERVICE CHARGES ON DEPOSIT
ACCOUNTS 1,168 1,176 4,757 4,730
OTHER FEES AND CHARGES 470 464 1,944 1,872
MORTGAGE BANKING ACTIVITIES 95 64 340 339
INDIRECT LENDING ACTIVITIES 1,040 1,398 5,227 5,449
SBA LENDING ACTIVITIES 86 492 1,250 2,444
SECURITIES GAINS, NET - 2 1,306 2
BANK OWNED LIFE INSURANCE 374 296 1,278 1,166
OTHER OPERATING INCOME 510 413 1,534 1,909
TOTAL NONINTEREST INCOME 3,743 4,305 17,636 17,911
NONINTEREST EXPENSE
SALARIES AND EMPLOYEE
BENEFITS 6,040 6,511 25,827 25,815
FURNITURE AND EQUIPMENT 672 782 2,949 2,942
NET OCCUPANCY 1,071 1,114 4,137 4,105
COMMUNICATION EXPENSES 401 433 1,654 1,729
PROFESSIONAL AND OTHER
SERVICES 1,031 859 3,823 3,559
ADVERTISING AND PROMOTION 236 226 645 927
STATIONERY, PRINTING AND
SUPPLIES 137 185 647 758
INSURANCE EXPENSES 79 69 344 296
OTHER OPERATING EXPENSES 2,746 2,271 8,813 7,071
TOTAL NONINTEREST EXPENSE 12,413 12,450 48,839 47,202
(LOSS) INCOME BEFORE INCOME
TAX (BENEFIT) EXPENSE (12,670) 111 (21,335) 8,989
INCOME TAX (BENEFIT) EXPENSE (5,101) (210) (9,099) 2,355
NET (LOSS) INCOME (7,569) $321 $(12,236) $6,634
(LOSS) EARNINGS PER SHARE:
BASIC (LOSS) EARNINGS PER
SHARE $(0.80) $0.03 $(1.30) $0.71
DILUTED (LOSS) EARNINGS
PER SHARE $(0.80) $0.03 $(1.30) $0.71
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-BASIC 9,535,624 9,341,021 9,437,087 9,330,932
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-FULLY
DILUTED 9,538,588 9,343,009 9,473,594 9,329,302
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(DOLLARS IN THOUSANDS) DECEMBER 31,
ASSETS 2008 2007
CASH AND DUE FROM BANKS $68,841 $23,442
FEDERAL FUNDS SOLD 23,184 6,605
CASH AND CASH EQUIVALENTS 92,025 30,047
INVESTMENTS AVAILABLE-FOR-SALE 128,749 103,149
INVESTMENTS HELD-TO-MATURITY 24,793 29,064
INVESTMENT IN FHLB STOCK 5,282 5,665
LOANS HELD-FOR-SALE 55,840 63,655
LOANS 1,388,022 1,388,358
ALLOWANCE FOR LOAN LOSSES (33,691) (16,557)
LOANS, NET 1,354,331 1,371,801
PREMISES AND EQUIPMENT, NET 19,311 18,821
OTHER REAL ESTATE 15,063 7,307
ACCRUED INTEREST RECEIVABLE 8,092 9,367
BANK OWNED LIFE INSURANCE 27,868 26,699
OTHER ASSETS 31,759 20,909
TOTAL ASSETS $1,763,113 $1,686,484
LIABILITIES
DEPOSITS:
NONINTEREST-BEARING DEMAND $138,634 $131,597
INTEREST-BEARING DEMAND/
MONEY MARKET 208,723 314,067
SAVINGS 199,465 216,442
TIME DEPOSITS, $100,000 AND OVER 317,540 285,497
OTHER TIME DEPOSITS 579,320 458,022
TOTAL DEPOSIT LIABILITIES 1,443,682 1,405,625
FEDERAL FUNDS PURCHASED - 5,000
OTHER SHORT-TERM BORROWINGS 55,017 70,954
SUBORDINATED DEBT 67,527 67,527
OTHER LONG-TERM DEBT 47,500 25,000
ACCRUED INTEREST PAYABLE 7,038 6,760
OTHER LIABILITIES 5,665 5,655
TOTAL LIABILITIES 1,626,429 1,586,521
SHAREHOLDERS' EQUITY
PREFERRED STOCK 48,200 -
DISCOUNT ON PREFERRED STOCK (4,413) -
WARRANTS 4,413 -
COMMON STOCK 47,328 46,164
ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS) 1,333 (804)
RETAINED EARNINGS 39,823 54,603
TOTAL SHAREHOLDERS' EQUITY 136,684 99,963
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,763,113 $1,686,484
BOOK VALUE PER SHARE $14.22 $10.67
SHARES OF COMMON STOCK OUTSTANDING 9,610,169 9,368,904
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
(DOLLARS IN THOUSANDS) QUARTERS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
2008 2007 2008 2007
BALANCE AT BEGINNING OF PERIOD $26,023 $15,155 $16,557 $14,213
CHARGE-OFFS:
COMMERCIAL, FINANCIAL AND
AGRICULTURAL - 200 99 200
SBA - - 220 -
REAL ESTATE-CONSTRUCTION 3,720 522 9,083 1,934
REAL ESTATE-MORTGAGE 71 20 332 82
CONSUMER INSTALLMENT 3,492 1,745 10,841 5,301
TOTAL CHARGE-OFFS 7,283 2,487 20,575 7,517
RECOVERIES:
COMMERCIAL, FINANCIAL AND
AGRICULTURAL - 2 5 257
SBA 24 - 215 -
REAL ESTATE-CONSTRUCTION 13 150 43 190
REAL ESTATE-MORTGAGE 1 - 14 78
CONSUMER INSTALLMENT 213 187 882 836
TOTAL RECOVERIES 251 339 1,159 1,361
NET CHARGE-OFFS 7,032 2,148 19,416 6,156
PROVISION FOR LOAN LOSSES 14,700 3,550 36,550 8,500
BALANCE AT END OF PERIOD $33,691 $16,557 $33,691 $16,557
RATIO OF NET CHARGE-OFFS DURING PERIOD
TO AVERAGE LOANS OUTSTANDING, NET 1.99% 0.61% 1.36% 0.45%
ALLOWANCE FOR LOAN LOSSES AS A
PERCENTAGE OF LOANS 2.43% 1.19% 2.43% 1.19%
NONPERFORMING ASSETS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
DECEMBER 31,
2008 2007
NONACCRUAL LOANS $98,151 $14,371
REPOSSESSIONS 2,016 2,512
OTHER REAL ESTATE 15,063 7,308
TOTAL NONPERFORMING ASSETS $115,230 $24,191
LOANS PAST DUE 90 DAYS OR MORE AND
STILL ACCRUING $- $23
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 7.89% 1.65%
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
(DOLLARS IN THOUSANDS)
DECEMBER 31, PERCENT
2008 2007 CHANGE
COMMERCIAL, FINANCIAL AND AGRICULTURAL $137,988 $107,325 28.57 %
TAX-EXEMPT COMMERCIAL 7,508 9,235 (18.70)%
REAL ESTATE MORTGAGE - COMMERCIAL 202,516 189,881 6.65 %
TOTAL COMMERCIAL 348,012 306,441 13.57 %
REAL ESTATE-CONSTRUCTION 245,153 282,056 (13.08)%
REAL ESTATE-MORTGAGE 115,527 93,673 23.33 %
CONSUMER INSTALLMENT 679,330 706,188 (3.80)%
LOANS 1,388,022 1,388,358 (0.02)%
LOANS HELD-FOR-SALE:
ORIGINATED RESIDENTIAL MORTGAGE LOANS 967 1,412 (31.52)%
SBA LOANS 39,873 24,243 64.47 %
INDIRECT AUTO LOANS 15,000 38,000 (60.53)%
TOTAL LOANS HELD-FOR-SALE 55,840 63,655 (12.28)%
TOTAL LOANS $1,443,862 $1,452,013
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
YEARS 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 owned 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%
YEARS ENDED
December 31, 2007
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets :
Loans, net of unearned income
Taxable $1,390,624 $105,222 7.57%
Tax-exempt (1) 12,837 1,052 8.20%
Total loans 1,403,461 106,274 7.57%
Investment securities
Taxable 137,370 6,964 5.07%
Tax-exempt (2) 6,782 390 5.75%
Total investment securities 144,152 7,354 5.12%
Interest-bearing deposits 1,134 58 5.08%
Federal funds sold 4,855 243 5.01%
Total interest-earning assets 1,553,602 113,929 7.34%
Cash and due from banks 23,383
Allowance for loan losses (14,644)
Premises and equipment, net 18,875
Other real estate owned 2,918
Other assets 51,386
Total assets $1,635,520
Liabilities and shareholders' equity
Interest-bearing liabilities :
Demand deposits $293,336 $10,243 3.49%
Savings deposits 203,529 8,881 4.36%
Time deposits 749,803 38,778 5.17%
Total interest-bearing deposits 1,246,668 57,902 4.64%
Federal funds purchased 10,310 548 5.31%
Securities sold under agreements to
repurchase 21,674 657 3.03%
Other short-term borrowings 24,516 1,111 4.54%
Subordinated debt 54,478 4,945 9.08%
Long-term debt 35,888 1,519 4.23%
Total interest-bearing liabilities 1,393,534 66,682 4.79%
Noninterest-bearing :
Demand deposits 130,835
Other liabilities 14,092
Shareholders' equity 97,059
Total liabilities and shareholders'
equity $1,635,520
Net interest income / spread $47,247 2.55%
Net interest margin 3.04%
(1) Interest income includes the effect of taxable-equivalent
adjustment for 2008 and 2007 of $192,000 and $350,000 respectively.
(2) Interest income includes the effect of taxable-equivalent
adjustment for 2008 and 2007 of $259,000 and $147,000, respectively.
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
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 owned 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%
QUARTER ENDED
December 31, 2007
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets :
Loans, net of unearned income
Taxable $1,428,415 $26,731 7.43%
Tax-exempt (1) 9,694 188 7.70%
Total loans 1,438,109 26,919 7.43%
Investment securities
Taxable 130,472 1,653 5.07%
Tax-exempt (2) 10,883 161 5.93%
Total investment securities 141,355 1,814 5.17%
Interest-bearing deposits 1,206 14 4.57%
Federal funds sold 4,106 46 4.43%
Total interest-earning assets 1,584,776 28,793 7.21%
Cash and due from banks 23,722
Allowance for loan losses (16,193)
Premises and equipment, net 18,854
Other real estate owned 6,602
Other assets 54,536
Total assets $1,672,297
Liabilities and shareholders' equity
Interest-bearing liabilities :
Demand deposits $308,624 $2,677 3.44%
Savings deposits 221,065 2,345 4.21%
Time deposits 725,171 9,319 5.10%
Total interest-bearing deposits 1,254,860 14,341 4.53%
Federal funds purchased 15,402 191 4.91%
Securities sold under agreements to
repurchase 25,418 185 2.89%
Other short-term borrowings 32,011 363 4.50%
Subordinated debt 67,527 1,453 8.53%
Long-term debt 32,587 341 4.15%
Total interest-bearing liabilities 1,427,805 16,874 4.69%
Noninterest-bearing :
Demand deposits 131,190
Other liabilities 13,915
Shareholders' equity 99,387
Total liabilities and shareholders'
equity $1,672,297
Net interest income / spread $11,919 2.52%
Net interest margin 2.99%
(1) Interest income includes the effect of taxable-equivalent
adjustment for 2008 and 2007 of $43,000 and $64,000 respectively.
(2) Interest income includes the effect of taxable-equivalent
adjustment for 2008 and 2007 of $71,000 and $61,000.
SOURCE Fidelity Southern Corporation
