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FIDELITY NATL CP
Symbol U : LION
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Fidelity Southern Corporation Record Earnings Of $25.3 Million For 2012; Revenue Increases 27.8% For 2012; 2012 Return On Assets Reaches 1.08%

2013-01-17 12:48 ET - News Release

ATLANTA, Jan. 17, 2013 /PRNewswire/ -- Fidelity Southern Corporation ("Fidelity" or the "Company") (NASDAQ:LION), holding company for Fidelity Bank (the "Bank"), reported net income of $25.3 million for the year ended 2012 compared to $11.4 million for the year ended 2011. For the quarter ended December 31, 2012, net income was $5.4 million compared to $8.2 million for the third quarter of 2012 and $3.8 million for the fourth quarter of 2011. After accounting for the preferred dividend, basic and diluted earnings per share for the year ended 2012 were $1.51 and $1.34, respectively, which compared to basic and diluted earnings per share of $0.62 and $0.56, respectively, for the year ended 2011. Basic and diluted earnings per share for the fourth quarter of 2012 were $0.31 and $0.28, respectively, compared to $0.50 and $0.44, respectively, for the third quarter of 2012 and $0.21 and $0.20, respectively, for the fourth quarter of 2011.

Fidelity's Chairman, Jim Miller, said, "2012 was a record year with improvement in many areas. We experienced significant organic and M&A growth, and strong fee income in all lines of business. We also controlled expenses as a result of consolidations and the integration of our acquired banks. The year 2013 offers continued opportunities to grow, operate more efficiently, and improve our credit costs as the economy improves."





For the Quarter Ended

(in thousands)

12/31/12


9/30/12


6/30/12


3/31/12


12/31/11

Net income

$

5,440



$

8,167



$

6,404



$

5,316



$

3,832


  Income tax expense

3,088



4,816



3,511



2,894



1,979


  Provision for loan losses

5,243



3,477



950



3,750



5,300


  Write-down of ORE

1,152



1,452



1,138



947



1,442


  Other cost of ORE operations

1,358



1,376



564



789



887


Pre-tax, pre-credit related earnings

16,281



19,288



12,567



13,696



13,440


  Less security gains



(4)





(303)



(237)


  Less acquisition gain



(4,012)





(206)



(1,527)


  Less accretion of FDIC indemnification asset

(150)



(285)



(96)



(171)




Core operating earnings (1)

$

16,131



$

14,987



$

12,471



$

13,016



$

11,676













(1)The calculation of core operating earnings is a non-GAAP measure. We show core operating earnings which remove the effect of income taxes, provision for loan losses, cost of operation of ORE, security gains, acquisition gain and indemnification asset accretion 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.



 

ASSET QUALITY

The majority of loans and other real estate acquired in the FDIC-assisted transactions are covered under 80% loss sharing agreements with the FDIC, which are classified as covered loans. Covered loans have the protection against losses reimbursable by the FDIC whereas non-covered loans do not have that same protection.

The following table provides a comparison of the activity affecting the allowance for loan loss:














($ in millions)


Q4 2012


Q3 2012


Q4 2011


YTD 2012


YTD 2011

Net charge-offs


$

3.7


$

1.2


$

6.7


$

10.3


$

20.5

Net charge-off ratio


0.81%


0.27%


1.54%


0.60%


1.38%

Provision for loan losses - Non-Covered Loans


$

4.6


$

2.5


$

5.3


$

11.9


$

20.3

Net impairment provision - Covered Loans


0.6


1.0



1.5


Total provision expense


$

5.2


$

3.5


$

5.3


$

13.4


$

20.3

The following table provides a summary of the net provision expense for the quarter ended December 31, 2012:















($ in millions)


Covered
Loans


Non-Covered
Loans


Total

Provision


$

1.6



$

4.6



$

6.2


Benefit attributable to FDIC


(1.0)





(1.0)


Net provision expense


$

0.6



$

4.6



$

5.2









The increase in provision expense for the fourth quarter of 2012 compared to the third quarter of 2012 resulted primarily from provision needed to cover reduced appraisal values on certain collateral dependent loans during the period. During the fourth quarter of 2012, the Bank recorded a net impairment provision of $577,000 to reflect the continued decrease in expected cash flows of covered loans.

Net charge-offs decreased $10.2 million for the year ended 2012 to $10.3 million compared to $20.5 million for the same period of 2011. For the year ended 2012, the ratio of net-charge offs to average loans outstanding was 0.60% compared to 1.38% for the same period of 2011. Non-covered provision expense decreased $8.4 million for the year ended 2012 to $11.9 million compared to $20.3 million for the same period of 2011 primarily as a result of decreased charge-offs.

The allowance for loan losses at December 31, 2012 was $34.0 million, or 2.01% of total loans, compared to an allowance of $31.5 million, or 1.91% of total loans, at September 30, 2012, and $28.0 million, or 1.81% of total loans, at December 31, 2011. The increase is primarily the result of the acquired covered loans.

The following table presents certain credit quality metrics of the Bank's loan portfolio, inclusive and exclusive of covered loans. Nonperforming assets include nonaccrual loans, net repossessions and other real estate ("ORE"). Classified assets include loans having a risk rating of substandard or worse, both accrual and nonaccrual, net repossessions and other real estate.











December 31, 2012


September 30, 2012


December 31, 2011

($ in millions)


Including Covered Loans


Excluding Covered Loans


Including Covered Loans


Excluding Covered Loans


Including Covered Loans


Excluding Covered Loans

Nonperforming loans


$

83.7



$

57.7



$

90.1



$

61.9



$

66.8



$

60.4


Classified loans


114.9



108.9



121.6



113.5



119.6



112.2


Allowance for loan losses as a percentage of total loans


1.92

%


2.01

%


1.78

%


1.91

%


1.81

%


1.72

%

Classified items ratio


44.17

%


41.87

%


48.31

%


45.09

%


52.43

%


49.45

%

Nonperforming assets ratio


6.88

%


4.74

%


7.62

%


5.12

%


5.28

%


5.96

%

ORE, net of reserves, decreased $5.4 million to $39.8 million at December 31, 2012, compared to $45.2 million at September 30, 2012. During the fourth quarter of 2012, $11.1 million of ORE assets were sold while $6.1 million were added to ORE. Excluding covered assets, ORE sales were $4.6 million and additions were $4.2 million for the quarter.

CAPITAL

The following table details the Company's and Bank's capital position at December 31, 2012, September 30, 2012 and December 31, 2011:















Fidelity Southern Corporation


Fidelity Bank


December 31,
2012


September 30,
2012


December 31,
2011


December 31,
2012


September 30,
2012


December 31,
2011

Total risk-based capital ratio

13.23%


13.41%


13.70%


12.46%


12.62%


12.73%

Tier 1 risk-based capital ratio

11.86%


11.94%


11.85%


10.73%


10.87%


10.93%

Leverage capital ratio

10.18%


9.89%


9.83%


9.22%


9.02%


9.08%

DEPOSITS

Total deposits of $2.1 billion at December 31, 2012 have increased from $1.9 billion as of December 31, 2011, due to the acquisition of Security Exchange Bank in the second quarter of 2012.













December 31,
2012


September 30,
2012


June 30,
2012


March 31,
2012


December 31,
2011

($ in millions)

$


%


$


%


$


%


$


%


$


%

Core deposits(1)

$

1,664.3



80.5


$

1,595.4



79.6


$

1,634.5



82.2


$

1,546.0



82.7


$

1,523.1



81.4

Time Deposits > $100,000

346.7



16.8


348.9



17.4


343.6



17.3


313.2



16.8


329.2



17.6

Brokered deposits

56.9



2.7


59.3



3.0


9.2



0.5


9.2



0.5


19.2



1.0

Total deposits

$

2,068.0



100.0


$

2,003.6



100.0


$

1,987.3



100.0


$

1,868.4



100.0


$

1,871.5



100.0

Quarterly rate on deposits

0.54%


0.55%


0.49%


0.66%


0.76%





















(1) Core deposits are transactional, savings, and time deposits under $100,000.





NET INTEREST MARGIN

Net interest margin decreased 9 basis points to 3.63% in the fourth quarter of 2012 compared to 3.72% in the fourth quarter of 2011 and decreased 11 basis points from 3.74% in the third quarter of 2012. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.56% for the fourth quarter of 2012 compared to 3.62% for the third quarter of 2012. The decrease in net interest margin from the third quarter 2012 was the result of higher yielding assets running off as replacement assets were originated in a lower interest rate environment. Offsetting the lower yields on assets was the high volume of loan originations which resulted in an increase in net interest income for the fourth quarter of 2012 of $1.2 million, or 6.1%, when compared to the fourth quarter of 2011. Net interest income decreased $452,000, or 2.2%, when compared to the third quarter of 2012.

Net interest margin increased 9 basis points to 3.77% for the year ended December 31, 2012 compared to 3.68% for the same period in 2011. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.60% for the year ended December 31, 2012 and 3.68% for the same period in 2011. Net interest income for the year ended December 31, 2012 increased $9.6 million, or 13.5%, to $80.5 million compared to $70.9 million for the same period in 2011.

INTEREST INCOME

Total interest income for the fourth quarter of 2012 increased $62,000, or 0.3%, to $24.3 million compared to $24.2 million for the fourth quarter of 2011. Average interest-earning assets for the fourth quarter of 2012 increased $181.2 million, or 8.8%, somewhat offset by a 36 basis point decrease in the yield on average interest-earning assets due primarily to the Bank offering competitive rates on loans. In a linked-quarter comparison, interest income decreased $670,000 as the yield on average interest-earning assets decreased 16 basis points.

For the year ended December 31, 2012 total interest income increased $3.9 million, or 4.1%, to $97.6 million compared to $93.7 million for the same period in 2011. Average interest-earning assets for the year ended December 31, 2012 increased $214.7 million, or 11.1%, and was somewhat offset by a 31 basis point decrease in the yield on average interest-earning assets as mentioned above. The FDIC-assisted acquisitions of Decatur First Bank and Security Exchange Bank, as previously announced, were accretive to the fourth quarter of 2012 interest income on an after-tax basis of $53,000, or a de minimis impact to diluted earnings per share. On a year-to-date basis, the acquisitions were accretive to interest income on an after-tax basis of $1.3 million, or $0.08 to diluted earnings per share.

INTEREST EXPENSE

Interest expense for the fourth quarter of 2012 decreased $1.1 million, or 22.3%, compared to the same period in 2011 due to a 30 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $118.5 million, or 6.8%. The Bank's shift in deposit mix toward noninterest-bearing accounts, which made up 18.5% of total deposits at December 31, 2012 compared to 14.4% at December 31, 2011, contributed to the reduction in the cost of funds. On a linked-quarter basis, interest expense decreased $219,000, or 5.1%.

For the year ended December 31, 2012 interest expense decreased $5.7 million, or 24.9%, to $17.1 million compared to $22.8 million for the same period in 2011. The decrease in interest expense was attributable to a 43 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $148.0 million, or 8.9%.

NONINTEREST INCOME

On a year over year basis, noninterest income increased $10.5 million, or 67.0%, to $26.2 million for the quarter ended December 31, 2012, compared to $15.7 million in the fourth quarter of 2011. The increase in noninterest income was the result of a $10.6 million, or 132.2%, increase in mortgage banking activities over the respective periods. Income from mortgage banking activities increased due to a 143.6% increase in the December 31, 2012 pipeline to over $514 million compared to the same period a year ago. Total funded loan volume for the quarter of $768.4 million represented a 71.5% increase over the year ago quarter. Mortgage banking revenues for the fourth quarter 2012 were positively impacted due to recoveries of impaired servicing rights of $700,000, a net increase of $2.8 million compared to the third quarter of 2012.

For the year ended December 31, 2012 noninterest income increased $36.5 million, or 71.0%, to $88.0 million compared to $51.4 million for same period in 2011. The increase is largely attributable to the increase in mortgage banking activities as discussed above. SBA loans decreased $3.5 million from 2011 to 2012 as result of a decrease in the gains on sale of SBA loans and servicing rights. Offsetting the decrease in SBA is the $4 million gain on acquisition for Security Exchange Bank, which was recorded in the third quarter of 2012.

The FDIC indemnification asset is originally recorded based on a discounted amount expected to be received from the FDIC for their share of losses on covered loans. The original difference between the full amount and the discounted amount is expected to be recorded in noninterest income over the life of the contract with the FDIC. For the year ended 2012, indemnification income was $702,000. There was no indemnification income for the same period in 2011.

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter of 2012 increased $9.0 million, or 38.1%, to $32.7 million compared to $23.6 million for the same period in 2011. The increase was driven by a $7.5 million increase in salaries and employee benefits expense due to higher commission expense related to the increased mortgage banking volume, expansion of our mortgage banking footprint, as well as increased number of employees due to organic growth and acquisitions. On a linked-quarter basis, noninterest expense increased $1.3 million, or 4.2%. The increase was primarily due to a $2.3 million increase in salaries and employee benefits.

For the year ended December 31, 2012 noninterest expense increased $30.0 million, or 35.1%, to $115.4 million compared to $85.4 million for the same period in 2011. The increase is largely attributable to an increase of $22.1 million in salaries and employee benefits, professional services related to acquisition and internet services of $2.6 million and other expenses of $2.7 million.

ABOUT FIDELITY SOUTHERN CORPORATION

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 30 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 in eleven Southern states. 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 factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled "Forward Looking Statements" from Fidelity Southern Corporation's 2011 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)































Three Months Ended





($ in thousands, except per share and stock
performance data)

December 31,


September 30,


June 30,


March 31,


December 31,


Year Ended December 31,

2012


2012


2012


2012


2011


2012


2011

RESULTS OF OPERATIONS














Net Interest Income

$

20,239



$

20,690



$

19,900



$

19,655



$

19,079



$

80,484



$

70,851


Provision for Loan Losses

5,243



3,477



950



3,750



5,300



13,420



20,325


Non-Interest Income

26,186



27,094



17,034



17,655



15,681



87,969



51,439


Non-Interest Expense

32,654



31,324



26,069



25,350



23,649



115,397



85,422


Income Tax Expense

3,088



4,816



3,511



2,894



1,979



14,309



5,145


Net Income

5,440



8,167



6,404



5,316



3,832



25,327



11,398


Preferred Stock Dividends

(823)



(823)



(823)



(823)



(824)



(3,292)



(3,293)


Net Income Available to Common Shareholders

4,617



7,344



5,581



4,493



3,008



22,035



8,105
















PERFORMANCE














Earnings Per Share - Basic (1)

$

0.31



$

0.50



$

0.38



$

0.31



$

0.21



$

1.51



$

0.62


Earnings Per Share - Diluted (1)

$

0.28



$

0.44



$

0.34



$

0.28



$

0.20



$

1.34



$

0.56


Return on Average Assets

0.88

%


1.33

%


1.14

%


0.96

%


0.69

%


1.08

%


0.55

%

Return on Average Equity

11.36

%


17.93

%


14.84

%


12.67

%


9.34

%


14.19

%


7.43

%















NET INTEREST MARGIN














Interest Earning Assets

4.35

%


4.51

%


4.66

%


4.76

%


4.71

%


4.56

%


4.87

%

Cost of Funds

0.86

%


0.90

%


0.96

%


1.06

%


1.17

%


0.94

%


1.37

%

Net Interest Spread

3.49

%


3.61

%


3.70

%


3.70

%


3.54

%


3.62

%


3.50

%

Net Interest Margin

3.63

%


3.74

%


3.86

%


3.86

%


3.72

%


3.77

%


3.68

%















CAPITAL














Cash Dividends Per Share

$



$



$



$



$

0.01



$



$

0.02


Dividend Payout Ratio

%


%


%


%


4.61

%


%


3.22

%

Tier 1 Risk-Based Capital

11.86

%


11.94

%


11.68

%


11.91

%


11.85

%


11.86

%


11.85

%

Total Risk-Based Capital

13.23

%


13.41

%


13.29

%


13.66

%


13.70

%


13.23

%


13.70

%

Leverage Ratio

10.18

%


9.89

%


10.19

%


10.04

%


9.83

%


10.18

%


9.83

%















AVERAGE BALANCE SHEET














Loans, Net of Unearned

$

2,044,975



$

2,013,423



$

1,880,933



$

1,785,382



$

1,729,512



$

1,931,714



$

1,611,825


Investment Securities

174,810



188,028



198,754



239,656



273,913



200,208



228,822


Earning Assets

2,230,918



2,211,353



2,088,221



2,060,788



2,049,763



2,148,428



1,933,771


Total Assets

2,454,244



2,442,366



2,265,875



2,215,944



2,194,861



2,345,176



2,063,169


Deposits

1,653,026



1,626,290



1,559,516



1,577,682



1,576,760



1,604,323



1,499,451


Borrowings

211,385



256,616



168,000



168,639



169,145



207,035



163,879


Shareholders' Equity

190,426



181,211



173,520



168,751



162,727



178,517



153,312
















STOCK PERFORMANCE














Market Price:














  Closing (1)

$

9.55



$

9.37



$

8.41



$

6.46



$

5.73



$

9.55



$

5.73


  High Close (1)

$

10.33



$

9.84



$

8.85



$

6.70



$

6.55



$

10.33



$

8.85


  Low Close (1)

$

8.56



$

8.12



$

6.38



$

5.56



$

5.42



$

5.56



$

5.75


Daily Average Trading Volume

16,418



20,882



42,547



8,098



4,812



21,683



6,796


Book Value Per Common Share (1)

$

9.85



$

9.60



$

9.07



$

8.63



$

8.59



$

9.85



$

8.59


Price to Book Value

0.97



0.98



0.93



0.75



0.67



0.97



0.67


Tangible Book Value Per Common Share (1)

9.68



9.42



8.90



8.62



8.43



9.68



8.43


Price to Tangible Book Value

0.99



0.99



0.94



0.75



0.68



0.99



0.68
















(1) Adjusted for stock dividends and retroactive application on shares outstanding.

FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)































Three Months Ended






December 31,


September 30,


June 30,


March 31,


December 31,


Year Ended December 31,

($ in thousands)

2012


2012


2012


2012


2011


2012


2011

ASSET QUALITY














Total Non-Performing Loans

$

83,681



$

90,145



$

90,908



$

74,816



$

66,801



$

83,681



$

66,801


Total Non-Performing Assets

125,062



136,439



134,627



101,221



98,634



125,062



98,634


Loans 90 Days Past Due and Still Accruing





111



290



116





116


Including Covered Loans:














  Non-Performing Loans as a % of Loans

4.71

%


5.17

%


5.20

%


4.50

%


4.11

%


4.71

%


4.11

%

  Non-Performing assets as a % of Loans Plus ORE

6.88

%


7.62

%


7.52

%


6.01

%


5.96

%


6.88

%


5.96

%

  ALL to Non-Performing Loans

40.61

%


34.49

%


29.96

%


39.29

%


41.85

%


40.61

%


41.85

%

  Net Charge-Offs During the Period to Average Loans

0.81

%


0.27

%


0.70

%


0.58

%


1.54

%


0.60

%


1.38

%

  ALL as a % of Loans, at End of Period

1.92

%


1.78

%


1.55

%


1.76

%


1.72

%


1.92

%


1.72

%

Excluding Covered Loans:














  Non-Performing Loans as a % of Loans

3.75

%


3.75

%


3.81

%


3.97

%


3.91

%


3.75

%


3.91

%

  Non-Performing assets as a % of Loans Plus ORE

4.74

%


5.12

%


5.29

%


5.12

%


5.28

%


4.74

%


5.28

%

  ALL to Non-Performing Loans

50.89

%


50.89

%


43.70

%


46.57

%


46.19

%


50.89

%


46.19

%

  Net Charge-Offs During the Period to Average Loans

0.44

%


0.22

%


0.74

%


0.59

%


1.76

%


0.51

%


1.45

%

  ALL as a % of Loans, at End of Period

2.01

%


1.91

%


1.65

%


1.84

%


1.81

%


2.01

%


1.81

%















OTHER INFORMATION














Non-Interest Income to Revenues

56.40

%


56.70

%


46.12

%


47.32

%


45.11

%


52.22

%


42.06

%

End of Period Shares Outstanding (1)

14,780,175



14,626.323



14,557.157



14,505.212



14,068,747



14,780,175



14,068,747


Weighted Average Shares Outstanding - Basic (1)

14,711,899



14,579,100



14,530,415



14,407,568



14,011,146



14,557,728



13,042,429


Weighted Average Shares Outstanding - Diluted (1)

16,686,123



16,510,647



16,309.298



15,870.668



15,397,538



16,412,877



14,587,300


Full-Time Equivalent Employees

774.2



752.6



701.9



656.5



626.4



774.2



626.4
















(1)  Adjusted for stock dividends and retroactive application on shares outstanding.

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

































Three Months Ended







December 31,


September 30,


June 30,


March 31,


December 31,


Year Ended December 31,

($ in thousands, except per share data)


2012


2012


2012


2012


2011


2012


2011

INTEREST INCOME















Loans, including fees


$

23,121



$

23,724



$

22,902



$

22,738



$

22,396



$

92,485



$

86,698


Investment securities


1,141



1,208



1,189



1,506



1,783



5,044



6,777


Federal funds sold and bank deposits


5



6



4



18



26



33



225


Total interest income


24,267



24,938



24,095



24,262



24,205



97,562



93,700


INTEREST EXPENSE















Deposits


2,722



2,686



2,658



3,007



3,519



11,073



16,309


Short-term borrowings


425



454



253



174



173



1,306



685


Subordinated debt


881



1,090



1,132



1,139



1,129



4,242



4,494


Other long-term debt




18



152



287



305



457



1,361


Total interest expense


4,028



4,248



4,195



4,607



5,126



17,078



22,849


Net interest income


20,239



20,690



19,900



19,655



19,079



80,484



70,851


Provision for loan losses


5,243



3,477



950



3,750



5,300



13,420



20,325


Net interest income after provision for loan losses


14,996



17,213



18,950



15,905



13,779



67,064



50,526


NONINTEREST INCOME















Service charges on deposit accounts


1,122



1,259



1,180



1,133



1,148



4,694



4,143


Other fees and charges


883



841



852



784



684



3,360



2,613


Mortgage banking activities


18,653



14,755



10,840



12,084



8,034



56,332



24,663


Indirect lending activities


1,477



2,164



1,610



1,163



1,581



6,414



5,891


SBA lending activities


715



2,107



1,269



853



1,871



4,944



8,463


Bank owned life insurance


323



330



332



322



99



1,307



1,315


Securities gains




4





303



237



307



1,078


Other


3,013



5,634



951



1,013



2,027



10,611



3,273


Total noninterest income


26,186



27,094



17,034



17,655



15,681



87,969



51,439


NONINTEREST EXPENSE















Salaries and employee benefits


20,886



18,589



15,325



14,849



13,410



69,649



47,525


Furniture and equipment


1,046



1,032



994



977



795



4,049



3,075


Net occupancy


1,354



1,360



1,280



1,210



1,115



5,204



4,504


Communication


647



739



641



619



522



2,646



2,158


Professional and other services


2,043



1,992



2,081



2,141



1,571



8,257



5,690


Cost of operation of other real estate


2,510



2,828



1,702



1,737



2,329



8,777



7,896


FDIC insurance premiums


493



479



474



471



445



1,917



2,581


Other


3,675



4,305



3,572



3,346



3,462



14,898



11,993


Total noninterest expense


32,654



31,324



26,069



25,350



23,649



115,397



85,422


Income before income tax expense


8,528



12,983



9,915



8,210



5,811



39,636



16,543


Income tax expense


3,088



4,816



3,511



2,894



1,979



14,309



5,145


NET INCOME


5,440



8,167



6,404



5,316



3,832



25,327



11,398


Preferred stock dividends and discount accretion


(823)



(823)



(823)



(823)



(824)



(3,292)



(3,293)


Net income available to common equity


$

4,617



$

7,344



$

5,581



$

4,493



$

3,008



$

22,035



$

8,105

















EARNINGS PER SHARE: (1)















Basic earnings per share


$

0.31



$

0.50



$

0.38



$

0.31



$

0.21



$

1.51



$

0.62


Diluted earnings per share


$

0.28



$

0.44



$

0.34



$

0.28



$

0.20



$

1.34



$

0.56


Weighted average common shares outstanding-basic


14,711,899



14,579,100



14,530,415



14,407,568



14,011,146



14,557,728



13,042,429


Weighted average common shares outstanding-diluted


16,686,123



16,510,647



16,309,298



15,870,668



15,397,538



16,412,877



14,587,300

















(1) Adjusted for stock dividends and retroactive application on shares outstanding

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)























($ in thousands, except share data)


December 31,
2012


September 30,
2012


June 30,
2012


March 31,
2012


December 31,
2011

ASSETS











Cash and cash equivalents


$

49,020



$

47,366



$

38,333



$

38,604



$

57,284


Investment securities available-for-sale


154,367



165,598



193,251



183,611



261,419


Investment securities held-to-maturity


6,162



6,842



7,471



8,185



8,876


Investment in FHLB stock


7,330



9,760



8,185



7,623



7,582


Loans held-for-sale


304,094



259,659



214,335



175,736



133,849


Loans


1,777,031



1,745,185



1,746,204



1,657,972



1,623,871


Allowance for loan losses


(33,982)



(31,476)



(27,205)



(29,282)



(27,956)


Loans, net of allowance for loan losses


1,743,049



1,713,709



1,718,999



1,628,690



1,595,915


FDIC indemnification asset


20,074



38,225



44,667



13,266



12,279


Premises and equipment, net


37,669



36,519



35,949



30,352



28,909


Other real estate, net


39,756



45,175



42,727



25,729



30,526


Accrued interest receivable


7,995



8,384



8,432



8,238



9,015


Bank owned life insurance


32,693



32,397



32,091



31,786



31,490


Deferred tax asset, net


19,442



16,520



18,299



16,398



16,224


Other assets


55,640



62,640



53,016



47,008



41,427


Total Assets


$

2,477,291



$

2,442,794



$

2,415,755



$

2,215,226



$

2,234,795













LIABILITIES











Deposits:











Noninterest-bearing demand deposits


$

381,846



$

354,029



$

345,063



$

290,625



$

269,590


Interest-bearing deposits:











Demand and money market


638,582



604,124



618,269



557,652



526,962


Savings


329,223



310,835



338,983



377,692



389,246


Time deposits, $100,000 and over


346,743



348,871



343,570



313,209



329,164


Other time deposits


314,675



326,471



332,185



319,995



337,350


Brokered deposits


56,942



59,303



9,204



9,204



19,204


Total deposits


2,068,011



2,003,633



1,987,274



1,868,377



1,871,516


Short-term borrowings


88,500



99,500



82,500



42,500



34,500


Federal funds purchased


37,160



50,889



48,718



13,555



18,581


Subordinated debt


67,527



67,527



67,527



67,527



67,527


Other long-term debt






25,000



27,500



52,500


Accrued interest payable


2,093



1,467



2,231



1,667



2,535


Other liabilities


21,112



32,277



23,596



22,178



20,356


Total Liabilities


2,284,403



2,255,293



2,236,846



2,043,304



2,067,515













SHAREHOLDERS' EQUITY











Preferred stock


47,344



47,123



46,902



46,682



46,461


Common stock


82,499



79,855



77,055



74,560



74,219


Accumulated other comprehensive gain, net of tax


3,545



4,242



3,882



3,301



3,710


Retained earnings


59,500



56,281



51,070



47,379



42,890


Total shareholders' equity


192,888



187,501



178,909



171,922



167,280


Total Liabilities and Shareholders' Equity


$

2,477,291



$

2,442,794



$

2,415,755



$

2,215,226



$

2,234,795


Book Value Per Common Share (1)


$

9.85



$

9.60



$

9.07



$

8.63



$

8.59


Shares of Common Stock Outstanding (1)


14,780,175



14,626,323



14,557,157



14,505,212



14,068,747













(1) Adjusted for stock dividends and retroactive application on shares outstanding

FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)

























($ in thousands)


December 31,


September 30,


June 30,


March 31,


December 31,


2012


2012


2012


2012


2011

Commercial, Financial and Agricultural


$

119,993



$

102,494



$

101,182



$

105,920



$

106,552


Tax-Exempt Commercial


4,698



4,787



4,816



4,874



4,944


Real Estate Mortgage - Commercial


468,477



507,408



491,894



393,399



409,932


  Total Commercial and SBA Loans


593,168



614,689



597,892



504,193



521,428


Real Estate - Construction


106,170



102,758



109,501



121,830



122,795


Real-Estate - Mortgage


146,818



114,842



112,832



135,039



143,717


Consumer Installment


930,875



912,896



925,978



896,910



835,931


Loans


1,777,031



1,745,185



1,746,203



1,657,972



1,623,871


Loans Held-For-Sale:











Originated Residential Mortgage


253,108



212,714



164,144



130,075



90,907


SBA


20,986



16,945



20,191



15,661



12,942


Indirect Auto


30,000



30,000



30,000



30,000



30,000


  Total Loans Held-For-Sale


304,094



259,659



214,335



175,736