ATLANTA, Oct. 21 /PRNewswire-FirstCall/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") , holding company for Fidelity Bank (the "Bank"), reported net income of $2.1 million for the third quarter of 2010 compared to net income of $398,000 for the third quarter of 2009. After accounting for the TARP preferred dividend, basic and diluted income per share for the third quarter of 2010 was $.12 and $.10, respectively, compared to a basic and diluted loss per share of $.04 in the third quarter of 2009. Net income for the first nine months of 2010 was $7.1 million compared to net loss of $5.8 million for the same period in 2009. Basic and diluted income per share for the first nine months of 2010 was $.44 and $.39, respectively, compared to basic and diluted loss per share of $.81 for the same period in 2009.
For the quarter ended --------------------- 9/30/2010 6/30/2010 3/31/2010 12/31/2009 9/30/2009 --------- --------- --------- ---------- --------- Net Income $2,081 $4,869 $195 $1,928 $398 Income Tax Expense (Benefit) 913 2,647 (93) 920 (346) Provision For Loan Losses 5,025 1,150 3,975 7,500 4,500 Write-down of ORE 698 1,615 1,367 731 1,159 Other cost of ORE Operations 713 743 802 1,299 981 --- --- --- ----- --- Pre-Tax, Pre- Credit Related Earnings 9,430 11,024 6,246 12,378 6,692 Less Security Gains - (2,291) - (4,789) (519) --- ------ --- ------ ---- Core Operating Earnings (1) $9,430 $8,733 $6,246 $7,589 $6,173 ====== ====== ====== ====== ====== (1) The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove income taxes, provision for loan losses, cost of operation of ORE, and security gains because we believe that helps show a view of more normalized net revenues. The measure allows better comparability with prior periods, as well as with peers in the industry who also provide a similar presentation.
"The very real improvement in our core earnings year over year reflects that clean-up of problem loans is essentially done." said James B. Miller, Jr. Chairman. "Our customers in real estate are, of course, suffering cash flow problems and now fatigue even as the end to the downturn is in sight. Earnings also improved because the economy is improving. Lending volume is up dramatically in the indirect automobile, commercial business, mortgage and SBA lending groups. With 60 employees added in 2010 alone, we are taking market share in loans and deposits, as our TARP enabled growth strategy, begun in December 2008, broadens and strengthens our franchise."
ASSET QUALITY
Net charge-offs were $3.8 million in the third quarter of 2010 compared to $5.6 million in the third quarter of 2009. Year to date, net charge-offs decreased $7.5 million for the first nine months of 2010 to $11.9 million compared to $19.4 million for the same period in 2009. Since January 1, 2008, through September 30, 2010, cumulative net charge-offs were $63.8 million compared to an aggregate provision for loan losses of $75.5 million. During this period, for every dollar of net charge-offs realized, the Company recorded $1.18 in provision. The ratio of net charge-offs to average loans outstanding was 1.22% for the nine months ended September 30, 2010, compared to 1.95% for the same period in 2009. Fidelity reported an allowance for loan losses of $28.3 million or 2.09% of total loans at September 30, 2010, compared to $30.1 million or 2.33% at December 31, 2009, and $35.5 million or 2.71% of total loans at September 30, 2009. The decrease was a result of improving nonaccrual loans and nonperforming assets trends.
9/30/2010 6/30/2010 3/31/2010 12/31/2009 9/30/2009 --------- --------- --------- ---------- --------- (In Millions) NPAs, includes SBA loans $82.8 $82.1 $88.4 $92.9 $106.3 ===== ===== ===== ===== ====== Classified Assets $114.8 $117.8 $120.1 $128.7 $131.9 Less SBA guarantees 6.2 6.3 7.0 4.5 2.3 --- --- --- --- --- Net Classified Assets $108.6 $111.5 $113.1 $124.2 $129.6 ====== ====== ====== ====== ======
Nonperforming Assets ("NPAs") include nonperforming loans, repossessions and other real estate ("ORE") and totaled $82.8 million at the end of the third quarter of 2010, a decrease of $10.1 million from December 31, 2009, and a decrease of $23.5 million from September 30, 2009. Classified Assets include NPAs and other substandard performing assets.
Nonperforming residential construction and development loans at September 30, 2010, included financing for 93 houses and 374 lots and land totaling $41.2 million. During the third quarter, $3.5 million of nonperforming construction loans were paid down by our customers while $3.3 million in construction loans were moved to nonperforming.
During the third quarter of 2010, $2.9 million of ORE assets were sold while $2.3 million were added to ORE. ORE consists of 50 houses, representing 27.0% of the total ORE balance, 329 lots and 6 commercial properties. ORE decreased $528,000 to $21.3 million at September 30, 2010, compared to $21.8 million at December 31, 2009. ORE was $21.2 million at September 30, 2009.
The provision for loan losses for the third quarter of 2010 was $5.0 million compared to $4.5 million for the same period in 2009 and $1.2 million in the second quarter 2010. The provision for loan losses for the first nine months of 2010 was $10.2 million compared to $21.3 million for the same period in 2009 as a result of improving asset quality during the period.
DEPOSITS
Total deposits at September 30, 2010, of $1.561 billion reflect the improvement in the deposit mix brought about by the Bank's strategy to increase core deposits. The Bank continued to aggressively market its non-certificate of deposit products in 2010. As a result, demand, money market and savings accounts increased $132.0 million or 15.5% at September 30, 2010, compared to December 31, 2009. The reduction in the interest rate paid on deposit accounts during the period demonstrates the Company's commitment to improved net interest margin.
September 30, December 31, September 30, ------------- ------------ ------------- 2010 2009 2009 ---- --- ---- $ % $ % $ % --- --- --- --- --- --- (Dollars in Millions) Core deposits(1) $1,270.0 81.3% $1,194.3 77.0% $1,203.8 74.9% Time Deposits >$100,000 208.9 13.4 257.4 16.6 294.7 18.3 Brokered deposits 82.4 5.3 99.0 6.4 109.0 6.8 ---- --- ---- --- ----- --- Total deposits $1,561.3 100.0% $1,550.7 100.0% $1,607.5 100.0% ======== ===== ======== ===== ======== ===== Quarterly rate on deposits 1.42% 2.01% 2.39% (1) Core deposits are transactional, savings, and time deposits under $100,000. REAL ESTATE
New residential construction loan advances made during the quarter totaled $4.8 million, while the payoffs of construction loans totaled $12.9 million. Residential construction and A&D loans totaled $124.4 million at September 30, 2010, which decreased 31% from $179.2 million at September 30, 2009. There were 308 houses and 1,465 lots financed at September 30, 2010, compared to 410 houses and 1,734 lots at September 30, 2009.
Total residential and commercial construction and land loans decreased to $129.5 million or 9.6% of loans at September 30, 2010, from $154.8 million or 12.0% of loans at December 31, 2009, and $187.2 million or 14.2% of loans at September 30, 2009, and as a percentage of capital was 62% at September 30, 2010. The regulatory guideline is a maximum of 100%.
All real estate loans, excluding owner-occupied properties, as a percentage of capital was 136% at September 30, 2010. The regulatory guideline is a maximum of 300%.
CAPITAL
Fidelity reported a total risk based capital ratio for the Bank of 14.02% at September 30, 2010, compared to 13.19% at September 30, 2009. The Leverage Capital ratio at the Bank was 9.69% at September 30, 2010, compared to 9.05% at September 30, 2009. Both ratios exceeded required regulatory minimums for well-capitalized institutions. At September 30, 2010, the total risk based capital ratio and the leverage ratio increased 45 basis points and 12 basis points, respectively, from June 30, 2010.
NET INTEREST MARGIN
Net interest margin increased 60 basis points to 3.70% in the third quarter of 2010 compared to 3.10% in the third quarter of 2009, and increased three basis points from 3.67% for the second quarter of 2010. Net interest income for the third quarter of 2010 increased $2.6 million or 19.1% when compared to the same period in 2009. The increase in net interest income for the quarter is a result of a greater reduction in the cost of funds than the decrease in the yield on earning assets.
The net interest margin increased 77 basis points to 3.59% in the first nine months of 2010 compared to 2.82% for the same period in 2009. In addition, average total interest earning assets increased $14.9 million or 0.9% for the nine months ended September 30, 2010, compared to the same period in 2009. The increases are a result of a greater reduction in the cost of funds than the decrease in the yield on earning assets. Net interest income for the first nine months of 2010 increased $10.4 million or 28.2% over the same period in 2009.
INTEREST INCOME
Total interest income for the third quarter of 2010 decreased $1.4 million or 5.4% compared to the same period in 2009. The yield on average interest-earning assets decreased 28 basis points and average interest-earning assets for the third quarter 2010 decreased $9.8 million or 0.6%. However, approximately $25.7 million of Indirect automobile and SBA loans were sold during the third quarter of 2010. Mortgage loans of $356.6 million were also sold during this period. The decrease in yield was primarily the result of a decrease in the yield on loans of 24 basis points as the Bank offered competitive rates in the marketplace. In addition, investment security yields decreased 107 basis points to 3.46%.
Total interest income year to date through September 30, 2010 decreased $1.7 million or 2.4% compared to the same period in 2009. The decrease in interest income in 2010 was the result of a decrease of 17 basis points in the yield on average interest-earning assets offset in part by the growth in average interest-earning assets in 2010, which increased $14.9 million or 0.9%. The decrease in yield was a result of an 81 basis point decrease in yield on investment securities which was somewhat offset by an increase in the yield on total loans of three basis points.
INTEREST EXPENSE
Interest expense for the third quarter of 2010 decreased $4.0 million or 35.5% compared to the same period in 2009. The decrease in interest expense was attributable to a 91 basis point decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $62.7 million or 3.9%. In addition to the general decrease in deposit rates, the Bank's shift in deposit mix toward core demand and savings accounts contributed to the reduction in the cost of funds. Brokered deposits decreased $26.6 million compared to September 30, 2009, and $16.6 million compared to December 31, 2009. At September 30, 2010, brokered deposits represented only 5.3% of total deposits.
Year to date in 2010, interest expense decreased $12.1 million or 33.4% compared to the same period in 2009. The decrease in interest expense was attributable to a 101 basis point decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $9.8 million.
NONINTEREST INCOME
Noninterest income increased $4.3 million or 60.2% to $11.6 million for the quarter ended September 30, 2010, compared to the same period in 2009. The increase in noninterest income was primarily the result of a $4.0 million or 128.6% increase in income from mortgage banking activities and an $804,000 or 546.9% increase in income from SBA lending activities. Mortgage banking income improved as a result of higher origination volume, which increased 78.0% compared to the third quarter of 2009 to $386 million due to the historically low interest rate environment and an expansion in the number of loan officers. SBA income was higher as a result of a 661% increase in the volume of loan sales over the same quarter in 2009 as liquidity in the secondary market continued to improve. These increases were somewhat offset by a $519,000 decrease in securities gains as no investment securities were sold during the third quarter of 2010.
Noninterest income increased $7.5 million or 34.6% to $29.3 million for the nine months ended September 30, 2010 compared to the same period in 2009. The increase was a result of a $3.5 million or 30.9% increase in income from mortgage banking activities, a $1.8 million or 341.4% increase in securities gains, a $1.2 million or 207.7% increase in income from SBA lending activities and a $710,000 or 172.3% increase in other operating income. Mortgage banking income improved as a result of higher origination volume, which increased 23.8% to $834 million. Securities gains increased due to higher sales as management repositioned the investment portfolio as part of the interest rate, cash flow, and capital risk rating strategies. SBA income improved as a result of higher sales volume which increased 87% over the same period in 2009 as liquidity continued to improve in the secondary market. Other operating income increased due primarily to higher net gains on the sales of other real estate.
NONINTEREST EXPENSE
Noninterest expense for the third quarter of 2010 increased $3.5 million or 21.3% to $20.0 million compared to the same period in 2009. The increase was due primarily to higher salaries and employee benefits which increased $3.6 million or 44.3% to $11.7 million due to higher commission expense related to the increased origination volume in the mortgage division as well as an increased number of lenders in the mortgage, SBA, Commercial, and Indirect Auto Lending divisions. Other operating expense increased $577,000 or 32.5% to $2.4 million due to higher compliance, underwriting, supplies, and advertising expenses. The cost of operation of other real estate decreased $728,000 or 34.0% to $1.4 million due to lower foreclosure expenses and write-downs related to ORE.
Noninterest expense for the first nine months of 2010 increased $7.8 million or 16.3% to $55.8 million compared to the same period in 2009. The increase was a result of higher salaries, commissions and employee benefits which increased $5.7 million or 22.7% to $30.6 million, the cost of operation of other real estate which increased $1.1 million or 23.0% to $5.9 million due primarily to higher write-downs related to ORE and higher foreclosure expenses, and higher operating expense, which increased $1.1 or 21.8% to $6.4 million due primarily to higher insurance coverage and insurance expense.
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 23 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA, Indirect automobile, and mortgage loans are provided through employees located throughout the Southeast. For additional information about Fidelity's products and services, please visit the website at 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 2009 Annual Report filed on Form 10-K with the Securities and Exchange Commission.
FIDELITY SOUTHERN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) QUARTER TO DATE YEAR TO DATE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) SEPTEMBER 30, SEPTEMBER 30, ------------- ------------- 2010 2009 2010 2009 ---- ---- ---- ---- INTEREST INCOME LOANS, INCLUDING FEES $22,068 $22,208 $64,886 $65,112 INVESTMENT SECURITIES 1,602 2,824 6,350 7,896 FEDERAL FUNDS SOLD AND BANK DEPOSITS 43 44 149 106 --- --- --- --- TOTAL INTEREST INCOME 23,713 25,076 71,385 73,114 INTEREST EXPENSE DEPOSITS 5,507 9,478 18,732 30,648 SHORT- TERM BORROWINGS 185 44 898 422 SUBORDINATED DEBT 1,138 1,143 3,378 3,527 OTHER LONG- TERM DEBT 446 610 1,135 1,672 --- --- ----- ----- TOTAL INTEREST EXPENSE 7,276 11,275 24,143 36,269 ----- ------ ------ ------ NET INTEREST INCOME 16,437 13,801 47,242 36,845 PROVISION FOR LOAN LOSSES 5,025 4,500 10,150 21,300 ----- ----- ------ ------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 11,412 9,301 37,092 15,545 NONINTEREST INCOME SERVICE CHARGES ON DEPOSIT ACCOUNTS 1,072 1,138 3,291 3,264 OTHER FEES AND CHARGES 553 509 1,596 1,486 MORTGAGE BANKING ACTIVITIES 7,042 3,081 14,842 11,338 INDIRECT LENDING ACTIVITIES 1,200 1,042 3,397 3,237 SBA LENDING ACTIVITIES 951 147 1,797 584 SECURITIES GAINS - 519 2,291 519 BANK OWNED LIFE INSURANCE 324 321 980 948 OTHER OPERATING INCOME 419 461 1,122 412 --- --- ----- --- TOTAL NONINTEREST INCOME 11,561 7,218 29,316 21,788 NONINTEREST EXPENSE SALARIES AND EMPLOYEE BENEFITS 11,729 8,127 30,634 24,969 FURNITURE AND EQUIPMENT 684 709 2,002 2,055 NET OCCUPANCY 1,159 1,114 3,374 3,296 COMMUNICATION EXPENSES 471 430 1,390 1,195 PROFESSIONAL AND OTHER SERVICES 1,279 1,292 3,391 3,628 COST OF OPERATION OF OTHER REAL ESTATE 1,412 2,140 5,939 4,829 FDIC INSURANCE EXPENSE 890 877 2,657 2,756 OTHER OPERATING EXPENSES 2,355 1,778 6,409 5,263 ----- ----- ----- ----- TOTAL NONINTEREST EXPENSE 19,979 16,467 55,796 47,991 ------ ------ ------ ------ INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE 2,994 52 10,612 (10,658) INCOME TAX EXPENSE (BENEFIT) 913 (346) 3,467 (4,875) --- ---- ----- ------ NET INCOME (LOSS) 2,081 398 7,145 (5,783) PREFERRED STOCK DIVIDENDS (824) (823) (2,470) (2,469) NET INCOME (LOSS) AVAILABLE TO COMMON EQUITY $1,257 $(425) $4,675 $(8,252) ====== ===== ====== ======= INCOME (LOSS) PER SHARE: BASIC INCOME (LOSS) PER SHARE $0.12 $(0.04) $0.44 $(0.81) ===== ====== ===== ====== DILUTED INCOME (LOSS) PER SHARE $0.10 $(0.04) $0.39 $(0.81) ===== ====== ===== ====== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING- BASIC 10,708,885 10,195,342 10,579,438 10,132,761 ========== ========== ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING- FULLY DILUTED 12,073,391 10,195,342 11,878,586 10,132,761 ========== ========== ========== ========== FIDELITY SOUTHERN CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DOLLARS IN THOUSANDS) SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, ASSETS 2010 2009 2009 ---- ---- ---- CASH AND DUE FROM BANKS $67,361 $170,692 $141,525 FEDERAL FUNDS SOLD 642 428 5,558 --- --- ----- CASH AND CASH EQUIVALENTS 68,003 171,120 147,083 INVESTMENTS AVAILABLE- FOR-SALE 152,572 136,917 223,907 INVESTMENTS HELD-TO- MATURITY 15,689 19,326 20,452 INVESTMENT IN FHLB STOCK 6,542 6,767 6,767 LOANS HELD- FOR-SALE 186,494 131,231 125,045 LOANS 1,355,248 1,289,859 1,313,887 ALLOWANCE FOR LOAN LOSSES (28,293) (30,072) (35,548) ------- ------- ------- LOANS, NET 1,326,955 1,259,787 1,278,339 PREMISES AND EQUIPMENT, NET 19,229 18,092 18,363 OTHER REAL ESTATE, NET 21,252 21,780 21,239 ACCRUED INTEREST RECEIVABLE 8,148 7,832 8,053 BANK OWNED LIFE INSURANCE 29,967 29,058 28,745 OTHER ASSETS 44,367 49,610 34,401 ------ ------ ------ TOTAL ASSETS $1,879,218 $1,851,520 $1,912,394 ========== ========== ========== LIABILITIES DEPOSITS: NONINTEREST- BEARING DEMAND $186,112 $157,511 $154,714 INTEREST- BEARING DEMAND/ MONEY MARKET 429,133 252,493 251,430 SAVINGS 367,402 440,596 416,126 TIME DEPOSITS, $100,000 AND OVER 208,853 257,450 294,714 OTHER TIME DEPOSITS 369,674 442,675 490,537 ------- ------- ------- TOTAL DEPOSIT LIABILITIES 1,561,174 1,550,725 1,607,521 SHORT-TERM BORROWINGS 22,715 41,870 18,261 SUBORDINATED DEBT 67,527 67,527 67,527 OTHER LONG- TERM DEBT 75,000 50,000 75,000 ACCRUED INTEREST PAYABLE 2,671 4,504 4,319 OTHER LIABILITIES 11,116 7,209 7,743 ------ ----- ----- TOTAL LIABILITIES 1,740,203 1,721,835 1,780,371 SHAREHOLDERS' EQUITY PREFERRED STOCK 45,358 44,696 44,475 COMMON STOCK 56,541 53,342 52,810 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 1,553 (64) 3,685 RETAINED EARNINGS 35,563 31,711 31,053 ------ ------ ------ TOTAL SHAREHOLDERS' EQUITY 139,015 129,685 132,023 ------- ------- ------- TOTAL LIABILITIES AND SHARE- HOLDERS' EQUITY $1,879,218 $1,851,520 $1,912,394 ========== ========== ========== BOOK VALUE PER SHARE $8.79 $8.36 $8.62 ===== ===== ===== SHARES OF COMMON STOCK OUTSTANDING 10,658,913 10,169,347 10,157,189 ========== ========== ========== FIDELITY SOUTHERN CORPORATION LOANS, BY CATEGORY (UNAUDITED) (DOLLARS IN THOUSANDS) SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, 2010 2009 2009 ---- ---- ---- COMMERCIAL, FINANCIAL AND AGRICULTURAL $94,221 $113,604 $126,782 TAX-EXEMPT COMMERCIAL 5,202 5,350 6,453 REAL ESTATE MORTGAGE - COMMERCIAL 336,395 287,354 237,617 ------- ------- ------- TOTAL COMMERCIAL 435,818 406,308 370,852 REAL ESTATE-CONSTRUCTION 129,486 154,785 187,215 REAL ESTATE-MORTGAGE 135,977 130,984 126,540 CONSUMER INSTALLMENT 653,967 597,782 629,280 ------- ------- ------- LOANS 1,355,248 1,289,859 1,313,887 LOANS HELD-FOR-SALE: ORIGINATED RESIDENTIAL MORTGAGE LOANS 138,151 80,869 82,795 SBA LOANS 18,343 20,362 27,250 INDIRECT AUTO LOANS 30,000 30,000 15,000 ------ ------ ------ TOTAL LOANS HELD-FOR-SALE 186,494 131,231 125,045 ------- ------- ------- TOTAL LOANS $1,541,742 $1,421,090 $1,438,932 ========== ========== ========== PERCENT CHANGE -------------- Sep 30, Sep 30, 2010/ 2010/ Dec. 31, Sep 30, 2009 2009 --------- -------- COMMERCIAL, FINANCIAL AND AGRICULTURAL (17.06)% (25.68)% TAX-EXEMPT COMMERCIAL (2.77)% (19.39)% REAL ESTATE MORTGAGE - COMMERCIAL 17.07% 41.57% TOTAL COMMERCIAL 7.26% 17.52% REAL ESTATE-CONSTRUCTION (16.34)% (30.84)% REAL ESTATE-MORTGAGE 3.81% 7.46% CONSUMER INSTALLMENT 9.40% 3.92% LOANS 5.07% 3.15% LOANS HELD-FOR-SALE: ORIGINATED RESIDENTIAL MORTGAGE LOANS 70.83% 66.86% SBA LOANS (9.92)% (32.69)% INDIRECT AUTO LOANS 0.00% 100.00% TOTAL LOANS HELD-FOR-SALE 42.11% 49.14% TOTAL LOANS FIDELITY SOUTHERN CORPORATION ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (UNAUDITED) YEAR (DOLLARS IN THOUSANDS) YEAR TO DATE ENDED DECEMBER SEPTEMBER 30, 31, ------------- 2010 2009 2009 ---- ---- ---- BALANCE AT BEGINNING OF PERIOD $30,072 $33,691 $33,691 CHARGE-OFFS: COMMERCIAL, FINANCIAL AND AGRICULTURAL 144 301 315 SBA 322 660 730 REAL ESTATE-CONSTRUCTION 6,529 9,867 20,217 REAL ESTATE-MORTGAGE 266 293 416 CONSUMER INSTALLMENT 5,463 9,013 11,622 ----- ----- ------ TOTAL CHARGE-OFFS 12,724 20,134 33,300 RECOVERIES: COMMERCIAL, FINANCIAL AND AGRICULTURAL 23 8 9 SBA - 29 31 REAL ESTATE-CONSTRUCTION 206 35 76 REAL ESTATE-MORTGAGE 4 15 20 CONSUMER INSTALLMENT 562 604 745 --- --- --- TOTAL RECOVERIES 795 691 881 --- --- --- NET CHARGE-OFFS 11,929 19,443 32,419 PROVISION FOR LOAN LOSSES 10,150 21,300 28,800 ------ ------ ------ BALANCE AT END OF PERIOD $28,293 $35,548 $30,072 ======= ======= ======= RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE LOANS OUTSTANDING, NET 1.22% 1.95% 2.44% ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS 2.09% 2.71% 2.33% NONPERFORMING ASSETS (UNAUDITED) DECEMBER (DOLLARS IN THOUSANDS) SEPTEMBER 30, 31, ------------- 2010 2009 2009 ---- ---- ---- NONACCRUAL LOANS $60,695 $83,494 $69,743 REPOSSESSIONS 882 1,562 1,393 OTHER REAL ESTATE 21,252 21,239 21,780 ------ ------ ------ TOTAL NONPERFORMING ASSETS $82,829 $106,295 $92,916 ======= ======== ======= *** INCLUDES SBA GUARANTEED AMOUNTS OF APPROXIMATELY $6,200 $2,300 $4,500 ====== ====== ====== LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING $- $- $- RATIO OF LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING TO TOTAL LOANS -% -% -% RATIO OF NONPERFORMING ASSETS TO TOTAL LOANS, OREO AND REPOSSESSIONS 5.30% 7.27% 6.43% DELINQUENCIES (UNAUDITED) (DOLLARS IN THOUSANDS) Dec-08 Mar-09 Jun-09 Sep-09 ------ ------ ------ ------ PAST DUE (30-59) $23,890 $13,719 $5,678 $8,242 PAST DUE (60-89) 6,706 2,080 7,841 2,059 PAST DUE (90+) - - - - --- --- --- --- TOTAL PAST DUE $30,596 $15,799 $13,519 $10,301 ======= ======= ======= ======= INDIRECT $10,584 $4,978 $4,313 $6,579 CONSTRUCTION 9,980 4,977 6,606 - COMMERCIAL 6,831 2,061 - - SBA 1,492 1,549 - 1,605 OTHER 1,709 2,234 2,600 2,117 ----- ----- ----- ----- TOTAL PAST DUE $30,596 $15,799 $13,519 $10,301 ======= ======= ======= ======= (DOLLARS IN THOUSANDS) Dec-09 Mar-10 Jun-10 Sep-10 ------ ------ ------ ------ PAST DUE (30-59) $11,905 $19,171 $7,618 $4,664 PAST DUE (60-89) 6,505 658 1,289 9,631 PAST DUE (90+) - 563 - - --- --- --- --- TOTAL PAST DUE $18,410 $20,392 $8,907 $14,295 ======= ======= ====== ======= INDIRECT $7,912 $4,551 $3,958 $3,635 CONSTRUCTION 292 12,282 - 8,411 COMMERCIAL 5,295 946 - 314 SBA 3,238 740 2,911 - OTHER 1,673 1,873 2,038 1,935 ----- ----- ----- ----- TOTAL PAST DUE $18,410 $20,392 $8,907 $14,295 ======= ======= ====== ======= FIDELITY SOUTHERN CORPORATION AVERAGE BALANCE, INTEREST AND YIELDS (UNAUDITED) YEAR TO DATE ------------ September 30, 2010 ------------------ Average Income/ Yield/ (DOLLARS IN THOUSANDS) Balance Expense Rate ------- ------- ---- Assets Interest-earning assets : Loans, net of unearned income Taxable $1,444,046 $64,727 5.99% Tax-exempt (1) 5,280 242 6.16% ----- --- Total loans 1,449,326 64,969 5.99% Investment securities Taxable 222,756 5,985 3.58% Tax-exempt (2) 11,706 547 6.22% ------ --- Total investment securities 234,462 6,532 3.72% Interest-bearing deposits 84,792 149 0.23% Federal funds sold 616 - 0.08% --- --- Total interest-earning assets 1,769,196 71,650 5.41% Cash and due from banks 8,906 Allowance for loan losses (28,227) Premises and equipment, net 18,696 Other real estate 23,786 Other assets 77,488 ------ Total assets $1,869,845 ========== Liabilities and shareholders' equity Interest-bearing liabilities : Demand deposits $314,666 $2,215 0.94% Savings deposits 427,488 4,684 1.46% Time deposits 648,487 11,833 2.44% ------- ------ Total interest-bearing deposits 1,390,641 18,732 1.80% Federal funds purchased 989 7 0.94% Securities sold under agreements to repurchase 22,556 319 1.89% Other short-term borrowings 19,377 572 3.94% Subordinated debt 67,527 3,378 6.69% Long-term debt 57,052 1,135 2.66% ------ ----- Total interest-bearing liabilities 1,558,142 24,143 2.07% Noninterest-bearing : Demand deposits 163,476 Other liabilities 14,749 Shareholders' equity 133,478 ------- Total liabilities and shareholders' equity $1,869,845 ========== Net interest income / spread $47,507 3.34% ======= Net interest margin 3.59% YEAR TO DATE ------------ September 30, 2009 ------------------ Average Income/ Yield/ (DOLLARS IN THOUSANDS) Balance Expense Rate ------- ------- ---- Assets Interest-earning assets : Loans, net of unearned income Taxable $1,450,514 $64,907 5.96% Tax-exempt (1) 7,126 304 5.82% ----- --- Total loans 1,457,640 65,211 5.96% Investment securities Taxable 224,569 7,410 4.40% Tax-exempt (2) 15,711 714 6.06% ------ --- Total investment securities 240,280 8,124 4.53% Interest-bearing deposits 43,610 86 0.26% Federal funds sold 12,748 20 0.21% ------ --- Total interest-earning assets 1,754,278 73,441 5.58% Cash and due from banks 26,281 Allowance for loan losses (34,235) Premises and equipment, net 18,874 Other real estate 21,623 Other assets 65,887 ------ Total assets $1,852,708 ========== Liabilities and shareholders' equity Interest-bearing liabilities : Demand deposits $231,456 $2,189 1.26% Savings deposits 302,774 5,181 2.28% Time deposits 861,353 23,278 3.60% ------- ------ Total interest-bearing deposits 1,395,583 30,648 2.93% Federal funds purchased - - 0.00% Securities sold under agreements to repurchase 33,972 373 1.46% Other short-term borrowings 2,504 49 2.62% Subordinated debt 67,527 3,527 6.96% Long-term debt 68,315 1,672 3.26% ------ ----- Total interest-bearing liabilities 1,567,901 36,269 3.08% Noninterest-bearing : Demand deposits 137,289 Other liabilities 14,557 Shareholders' equity 132,961 ------- Total liabilities and shareholders' equity $1,852,708 ========== Net interest income / spread $37,172 2.50% ======= Net interest margin 2.82% (1) Interest income includes the effect of taxable-equivalent adjustment for 2010 and 2009 of $83,000 and $99,000 respectively. (2) Interest income includes the effect of taxable-equivalent adjustment for 2010 and 2009 of $182,000 and $228,000, respectively. FIDELITY SOUTHERN CORPORATION AVERAGE BALANCE, INTEREST AND YIELDS (UNAUDITED) QUARTER ENDED ------------- September 30, 2010 ------------------ Average Income/ Yield/ (DOLLARS IN THOUSANDS) Balance Expense Rate ------- ------- ---- Assets Interest-earning assets : Loans, net of unearned income Taxable $1,504,460 $22,015 5.81% Tax-exempt (1) 5,252 82 6.20% Total loans 1,509,712 22,097 5.81% Investment securities Taxable 181,018 1,480 3.27% Tax-exempt (2) 11,705 183 6.25% Total investment securities 192,723 1,663 3.46% Interest-bearing deposits 69,789 42 0.24% Federal funds sold 642 - 0.07% Total interest- earning assets 1,772,866 23,802 5.33% Cash and due from banks 13,723 Allowance for loan losses (26,825) Premises and equipment, net 19,037 Other real estate 21,573 Other assets 75,724 Total assets $1,876,098 ========== Liabilities and shareholders' equity Interest-bearing liabilities : Demand deposits $394,658 $984 0.99% Savings deposits 386,382 1,184 1.22% Time deposits 599,788 3,339 2.21% Total interest- bearing deposits 1,380,828 5,507 1.58% Federal funds purchased - - 0.00% Securities sold under agreements to repurchase 24,097 142 2.34% Other short-term borrowings 4,076 43 4.12% Subordinated debt 67,527 1,138 6.69% Long-term debt 70,924 446 2.49% Total interest- bearing liabilities 1,547,452 7,276 1.87% Noninterest-bearing : Demand deposits 172,785 Other liabilities 17,917 Shareholders' equity 137,944 Total liabilities and shareholders' equity $1,876,098 ========== Net interest income / spread $16,526 3.46% ======= Net interest margin 3.70% QUARTER ENDED ------------- September 30, 2009 ------------------ Average Income/ Yield/ (DOLLARS IN THOUSANDS) Balance Expense Rate ------- ------- ---- Assets Interest-earning assets : Loans, net of unearned income Taxable $1,453,467 $22,137 6.05% Tax-exempt (1) 6,776 103 6.29% Total loans 1,460,243 22,240 6.05% Investment securities Taxable 240,855 2,658 4.41% Tax-exempt (2) 16,019 245 6.11% Total investment securities 256,874 2,903 4.53% Interest-bearing deposits 59,113 41 0.27% Federal funds sold 6,448 3 0.21% Total interest-earning assets 1,782,678 25,187 5.61% Cash and due from banks 36,035 Allowance for loan losses (35,275) Premises and equipment, net 18,590 Other real estate 23,480 Other assets 68,392 Total assets $1,893,900 ========== Liabilities and shareholders' equity Interest-bearing liabilities : Demand deposits $248,080 $745 1.19% Savings deposits 389,690 1,942 1.98% Time deposits 809,624 6,791 3.33% Total interest-bearing deposits 1,447,394 9,478 2.60% Federal funds purchased - - 0.00% Securities sold under agreements to repurchase 17,771 27 0.59% Other short-term borrowings 2,430 17 2.72% Subordinated debt 67,527 1,143 6.71% Long-term debt 75,000 610 3.23% Total interest-bearing liabilities 1,610,122 11,275 2.78% Noninterest-bearing : Demand deposits 138,078 Other liabilities 15,703 Shareholders' equity 129,997 Total liabilities and shareholders' equity $1,893,900 ========== Net interest income / spread $13,912 2.83% ======= Net interest margin 3.10% (1) Interest income includes the effect of taxable-equivalent adjustment for 2009 and 2008 of $29,000 and $32,000 respectively. (2) Interest income includes the effect of taxable-equivalent adjustment for 2009 and 2008 of $61,000 and $79,000. Contacts: Martha Fleming, Steve Brolly Fidelity Southern Corporation (404) 240-1504
Fidelity Southern Corporation
CONTACT: Martha Fleming, Steve Brolly, Fidelity Southern Corporation
(404) 240-1504
Web Site: http://www.fidelitysouthern.com/
