FIDELITY SOUTHERN CORPORATION 
By 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 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
SOURCE Fidelity Southern Corporation
