FIDELITY SOUTHERN CORP - FORM 8-K - EX-99.1 - EARNINGS PRESS RELEASE

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8-K - FORM 8-K - FIDELITY SOUTHERN CORP	d339087d8k.htm
EX-99.2 - STOCK DIVIDEND PRESS RELEASE - FIDELITY SOUTHERN CORP	d339087dex992.htm

Exhibit 99.1

Released on April 19, 2012, at 3:39 p.m. by PR Newswire

LOGO

FOR IMMEDIATE RELEASE


Contacts:		Martha Fleming, Steve Brolly
		Fidelity Southern Corporation (404) 240-1504

FIDELITY SOUTHERN CORPORATION

EARNS $5.3 MILLION, A 189% INCREASE, IN FIRST QUARTER

ATLANTA, GA (April 19, 2012) – Fidelity Southern Corporation (“Fidelity” or the “Company”) (NASDAQ:LION), holding company for Fidelity Bank (the “Bank”), reported net income of $5.3 million for the first quarter of 2012 compared to $1.8 million for the first quarter of 2011 and $3.8 million for the fourth quarter of 2011. After accounting for the TARP preferred dividend, basic and diluted earnings per share for the first quarter of 2012 were $.32 and $.29, respectively which compared to basic and diluted earnings per share of $.09 and $.08 in the first quarter of 2011 and $.23 and $.21 in the fourth quarter of 2011, respectively.

The FDIC-assisted acquisition of Decatur First Bank, which was initiated in the fourth quarter of 2011, was completed in the first quarter of 2012 with transition of all accounts to Fidelity Bank systems. This transaction was accretive to the first quarter 2012 results acquisition contributing approximately $846,000 after taxes to net income, or $.06 to diluted earnings per share.

Fidelity’s Chairman, Jim Miller, said “The quarter saw several positive steps for Fidelity. There were significant improvements in credit metrics which reflects improving conditions in real estate. The integration of Decatur First has been successful and we are glad to have been able to broaden our market outreach in our home market of Decatur. We continue to expand our physical presence with branches in Cumming, Johns Creek, Ponce de Leon in Atlanta, Baymeadows in Jacksonville, and a new Powers Ferry relocation in Cobb County. We also opened mortgage offices in Loudoun County, Virginia, and Savannah and Kennesaw, Georgia. Feedback from our customers tells us the economy is indeed improving which leads directly to our improvement in core earnings despite the difficult banking environment of artificially low interest rates and somewhat unrestrained competition.”

Fidelity Southern Corporation

First Quarter Earnings Release

April 19, 2012


	For the Quarter Ended
	3/31/12			12/31/2011			9/30/2011		6/30/2011			3/31/2011
	*(In Thousands)*
Net income	$	5,316		$	3,832		$	2,110	$	3,614		$	1,842
Income tax expense		2,894			1,979			608		1,792			766
Provision for loan losses		3,750			5,300			4,400		4,850			5,775
Write-down of ORE		947			1,442			677		1,069			1,600
Other cost of ORE operations		789			887			639		724			858

Pre-tax, pre-credit related earnings		13,696			13,440			8,434		12,049			10,841
Less security gains		(347	)		—			—		(1,078	)		—
Less acquisition gain		(206	)		(1,527	)		—		—			—
Less accretion of FDIC indemnification asset		(171	)		—			—		—			—

Core operating earnings ⁽¹⁾	$	12,972		$	11,913		$	8,434	$	10,971		$	10,841

⁽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

Fidelity continued to experience improvement in asset quality exclusive of covered loans, as nonperforming loans, classified loans and provision expense all decreased for the quarter when compared to prior quarter and the same quarter prior year.

Net charge-offs were $2.4 million in the first quarter of 2012 compared to $6.7 million in the fourth quarter of 2011 and $4.2 million in the first quarter of 2011. The ratio of net charge-offs to average loans outstanding was .59% for the three months ended March 31, 2012, compared to 1.19% for the same period in 2011 and 1.56% for the fourth quarter of 2011. Provision expense was $3.8 million for the first quarter of 2012, compared to $5.8 million during the same period in 2011 and $5.3 million during the fourth quarter 2011.

Loans and other real estate acquired in the FDIC-assisted transaction of Decatur First Bank are covered under loss sharing agreements with the FDIC (“Loss Share Agreements”) and are collectively referred to as covered assets. Under the Loss Share Agreements, the FDIC has agreed to reimburse us for 80% of all losses incurred in connection with those assets for a period of 10 years for residential mortgage loans and a period of five years for commercial loans.

Excluding covered loans, the allowance for loan losses at March 31, 2012 was $29.3 million, or 1.84% of total loans, compared to an allowance of $28.0 million, or 1.81% of total loans, at December 31, 2011, and $29.7 million, or 2.07% of total loans, at March 31, 2011.

Fidelity Southern Corporation

First Quarter Earnings Release

April 19, 2012

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


	March 31, 2012						December 31, 2011						March 31, 2011
	Including Covered Loans			Excluding Covered Loans			Including Covered Loans			Excluding Covered Loans			March 31, 2011
	*(Dollars in Millions)*
Nonperforming loans	$	77.0		$	62.6		$	66.7		$	60.4		$	72.5
Classified assets		111.9			110.6			119.6			112.2			126.8
Allowance for loan losses as a percentage of total loans		1.76	%		1.84	%		1.72	%		1.81	%		2.07	%
Classified items ratio		47.78	%		47.22	%		52.68	%		49.45	%		58.03	%
Nonperforming assets ratio		6.16	%		5.11	%		5.85	%		5.28	%		6.36	%

The following table provides a comparison of the activity affecting the allowance for loan loss. Net charge-offs were $70,000 and provision expense was $94,000 for covered loans and during the first quarter of 2012. There were no charge-offs or provision expense for covered loans during the fourth quarter of 2011.


	Q1 2012			Q4 2011			Q1 2011			YTD 2011			YTD 2010
	*(Dollars in Millions)*
Net charge-offs	$	2.4		$	6.7		$	4.2		$	20.5		$	19.1
Net charge-off ratio		.59	%		1.68	%		1.19	%		1.38	%		1.44	%
Provision for loan loss	$	3.8		$	5.3		$	5.8		$	20.3		$	17.1

ORE decreased $4.8 million to $25.7 million at March 31, 2012, compared to $30.5 million at December 31, 2011. During the first quarter of 2012, $7.5 million of ORE assets were sold while $2.5 million were added to ORE. Excluding covered assets, ORE additions were $1.2 million and sales were $4.2 million for the quarter.

REAL ESTATE

New residential construction loan advances made during the quarter totaled $8.8 million, while the payoffs of construction loans totaled $16.6 million. Excluding covered loans, construction and A&D loans totaled $90.6 million at March 31, 2012, compared to $89.1 million at December 31, 2011. Excluding covered loans there were 374 houses and 985 lots financed at March 31, 2012, compared to 313 houses and 1,106 lots at December 31, 2011.

Fidelity Southern Corporation

First Quarter Earnings Release

April 19, 2012

CAPITAL

The Company’s capital position remained well above industry requirements at March 31, 2012, with a leverage capital ratio of 10.0%, a tier one ratio of 11.9%, and a total capital ratio of 13.7%, compared to 9.8%, 11.9%, and 13.1% respectively, at December 31, 2011.

At March 31, 2012, the Bank had a leverage ratio of 9.3%, a tier one ratio of 11.0%, and a total capital ratio of 12.8% compared to a leverage ratio of 9.1%, a tier one ratio of 11.0%, and a total capital ratio 12.7% at December 31, 2011.

DEPOSITS

Total deposits of $1.868 billion at March 31, 2012 reflect the success of the Bank’s strategy to increase and maintain core deposits. Total deposits have increased from $1.678 billion as of March 31, 2011, due to the acquisition of Decatur First Bank in the fourth quarter of 2011 of approximately $135 million in deposits and the Bank’s continued efforts to aggressively pursue core deposits.


	March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011
	$		%		$		%		$		%		$		%		$		%
					*(Dollars in Millions)*
Core deposits⁽¹⁾	$	1,546.0		82.7	$	1,523.1		81.4	$	1,414.1		80.1	$	1,363.5		79.8	$	1,353.7		80.7
Time Deposits > $100,000		313.2		16.8		329.3		17.6		322.3		18.3		302.5		17.7		271.8		16.2
Brokered deposits		9.2		0.5		19.2		1.0		29.1		1.6		42.4		2.5		52.5		3.1

Total deposits	$	1,868.4		100.0	$	1,871.5		100.0	$	1,765.5		100.0	$	1,708.4		100.0		1,678.0		100.0

Quarterly rate on deposits		0.66%				0.77%				0.88%				1.06%				1.13%

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

NET INTEREST MARGIN

Net interest margin increased 4 basis points to 3.86% in the first quarter of 2012 compared to 3.82% in the first quarter of 2011, and increased 14 basis points from 3.72% for the fourth quarter of 2011. Excluding covered loans and the accretion of the loan discount, the net interest margin was 3.63% for the first quarter of 2012 compared to 3.69% for the fourth quarter of 2011. Net interest income for the first quarter of 2012 increased $2.5 million or 14.6% when compared to the same period in 2011 and increased $575,000 or 3.0% when compared to the fourth quarter of 2011. On a linked-quarter basis, the increase in net interest income is due to a greater reduction in the cost of funds than the decrease in the yield on earning assets. On a year-to-date basis, the increase in net interest income is due to an increase in the average balance of interest-earning assets combined with a decrease in the cost of interest-bearing liabilities.

Fidelity Southern Corporation

First Quarter Earnings Release

April 19, 2012

INTEREST INCOME

Total interest income for the first quarter of 2012 increased $817,000 or 3.5% compared to the same period in 2011. Average interest-earning assets for the first quarter of 2012 increased nearly $230 million or 12.5%, but was somewhat offset by a 45 basis point decrease in the yield on average interest-earning assets due primarily to the Bank offering competitive rates in the marketplace.

In a linked-quarter comparison, interest income remained stable, increasing only $56,000 as average earning assets and the yield on earning assets each increased approximately 1%.

INTEREST EXPENSE

Interest expense for the first quarter of 2012 decreased $1.7 million or 26.6% compared to the same period in 2011. The decrease in interest expense was attributable to a 52 basis point decrease in the cost of interest-bearing liabilities somewhat offset by an increase in average interest-bearing liabilities of $137.8 million or 8.6%. In addition to the general decrease in deposit rates, the Bank’s shift in deposit mix toward noninterest-bearing accounts, which made up 13.2% of total deposits at March 31, 2012 compared to 10.5% at March 31, 2011, contributed to the reduction in the cost of funds.

On a linked-quarter basis, interest expense decreased $519,000 or 10.1%. The decrease in interest expense was attributable to an 11 basis point decrease in the cost of interest-bearing liabilities.

NONINTEREST INCOME

On a year over year basis, noninterest income increased $6.0 million or 51.5% to $17.7 million for the quarter ended March 31, 2012, compared to noninterest income of $11.7 million for the same period in 2011. The increase in noninterest income was the result of a $6.1 million or 102.8% increase in mortgage banking activities. Income from mortgage lending increased due to a 101% increase in the March 31, 2012 pipeline to over $330.5 million, total funded loan volume for the quarter of $400.7 million representing an 89% increase over the year ago quarter and a $1.1 million MSR impairment recovery recognized in the current quarter.

On a linked-quarter basis, noninterest income increased $2.0 million or 12.9% from $15.7 million recognized during the fourth quarter of 2011. A $4.1 million increase in mortgage banking income was partially offset by a $1.0 million decrease in SBA lending activities and a $1.0 million decrease in other operating income. Mortgage banking increased due to a 57% increase in the period ended loan pipeline along with a $1.1 million MSR impairment recovery recorded in current quarter compared to a $0.6 million impairment provision recorded in the prior quarter. The increase was partially offset due to a $1.0 million decline in SBA loan sales gains from the prior quarter and a $1.5 million purchase accounting gain related to the acquisition of Decatur First Bank recorded in the fourth quarter 2011.

Fidelity Southern Corporation

First Quarter Earnings Release

April 19, 2012

NONINTEREST EXPENSE

Noninterest expense for the first quarter of 2012 increased $4.9 million or 24.0% to $25.4 million compared to $20.5 million for the same period in 2011. The increase was driven by a $4.0 million increase in salaries and employee benefits expense due to higher commission expense related to the increased mortgage banking volume as well as increased number of employees due to the fourth quarter acquisition. Also contributing to the increase was a $950,000 or 79.6% increase in professional service fees, of which $119,000 was related to the Decatur First acquisition.

On a linked-quarter basis, noninterest expense increased $1.7 million or 7.4%. The increase was primarily due to a $1.4 million increase in salaries and employee benefits.

Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit-related insurance products through 26 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 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 2011 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

-end-

FIDELITY SOUTHERN CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)	YEAR TO DATE MARCH 31,
	2012			2011
INTEREST INCOME
LOANS, INCLUDING FEES		22,738		$	21,891
INVESTMENT SECURITIES		1,506			1,513
FEDERAL FUNDS SOLD AND BANK DEPOSITS		18			41

TOTAL INTEREST INCOME		24,262			23,445
INTEREST EXPENSE
DEPOSITS		3,007			4,532
SHORT-TERM BORROWINGS		174			175
SUBORDINATED DEBT		1,139			1,121
OTHER LONG-TERM DEBT		287			445

TOTAL INTEREST EXPENSE		4,607			6,273

NET INTEREST INCOME		19,655			17,172
PROVISION FOR LOAN LOSSES		3,750			5,775

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		15,905			11,397
NONINTEREST INCOME
SERVICE CHARGES ON DEPOSIT ACCOUNTS		1,133			957
OTHER FEES AND CHARGES		784			581
MORTGAGE BANKING ACTIVITIES		12,084			5,959
INDIRECT LENDING ACTIVITIES		1,163			1,186
SBA LENDING ACTIVITIES		853			2,232
SECURITIES GAINS		347			—
BANK OWNED LIFE INSURANCE		322			320
GAIN ON SALE OF ORE		250			185
OTHER OPERATING INCOME		763			266

TOTAL NONINTEREST INCOME		17,699			11,686
NONINTEREST EXPENSE
SALARIES AND EMPLOYEE BENEFITS		14,849			10,822
FURNITURE AND EQUIPMENT		977			752
NET OCCUPANCY		1,210			1,135
COMMUNICATION EXPENSES		619			563
PROFESSIONAL AND OTHER SERVICES		2,141			1,192
OTHER REAL ESTATE EXPENSE		1,737			2,458
FDIC INSURANCE EXPENSE		471			902
OTHER OPERATING EXPENSES		3,390			2,651

TOTAL NONINTEREST EXPENSE		25,394			20,475

INCOME BEFORE INCOME TAX EXPENSE		8,210			2,608
INCOME TAX EXPENSE		2,894			766

NET INCOME		5,316			1,842
PREFERRED STOCK DIVIDENDS		(823	)		(823	)

NET INCOME AVAILABLE TO COMMON EQUITY	$	4,493		$	1,019

EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE	$	0.32		$	0.09

DILUTED EARNINGS PER SHARE	$	0.29		$	0.08

NET INCOME		5,316			1,842
OTHER COMPREHENSIVE LOSS, NET OF TAX		(1,280	)		(263	)

TOTAL COMPREHENSIVE INCOME	$	4,036		$	1,579

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC		13,892,146			10,830,066

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-FULLY DILUTED		15,302,904			12,407,925

FIDELITY SOUTHERN CORPORATION

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(DOLLARS IN THOUSANDS)	MARCH 31, 2012			DECEMBER 31, 2011			MARCH 31, 2011
ASSETS
CASH AND CASH EQUIVALENTS	$	38,604		$	57,284		$	125,779
INVESTMENTS AVAILABLE-FOR-SALE		183,611			261,419			209,833
INVESTMENTS HELD-TO-MATURITY		8,185			8,876			12,712
INVESTMENT IN FHLB STOCK		7,623			7,582			6,542
LOANS HELD-FOR-SALE		175,736			133,849			115,005
LOANS		1,657,972			1,623,871			1,431,493
ALLOWANCE FOR LOAN LOSSES		(29,282	)		(27,956	)		(29,694	)

LOANS, NET		1,628,690			1,595,915			1,401,799
FDIC INDEMNIFICATION RECEIVABLE		13,266			12,279			—
PREMISES AND EQUIPMENT, NET		30,352			28,909			19,723
OTHER REAL ESTATE, NET		25,729			30,526			18,383
ACCRUED INTEREST RECEIVABLE		8,238			9,015			8,126
BANK OWNED LIFE INSURANCE		31,786			31,490			30,570
OTHER ASSETS		63,204			57,651			50,127

TOTAL ASSETS	$	2,215,024		$	2,234,795		$	1,998,599

LIABILITIES
DEPOSITS:
NONINTEREST-BEARING DEMAND	$	290,620		$	269,590		$	200,902
INTEREST-BEARING DEMAND/ MONEY MARKET		557,652			526,962			430,403
SAVINGS		377,692			389,246			418,788
TIME DEPOSITS, $100,000 AND OVER		313,209			329,164			271,817
OTHER TIME DEPOSITS		329,199			356,554			356,123

TOTAL DEPOSIT LIABILITIES		1,868,372			1,871,516			1,678,033
FEDERAL FUNDS PURCHASED		13,555			—			—
SHORT-TERM BORROWINGS		42,500			53,081			25,732
SUBORDINATED DEBT		67,527			67,527			67,527
OTHER LONG-TERM DEBT		27,500			52,500			70,000
ACCRUED INTEREST PAYABLE		1,667			2,535			2,284
OTHER LIABILITIES		22,182			20,356			13,468

TOTAL LIABILITIES		2,043,303			2,067,515			1,857,044
SHAREHOLDERS’ EQUITY
PREFERRED STOCK		46,682			46,461			45,799
COMMON STOCK		73,890			74,219			57,611
ACCUMULATED OTHER COMPREHENSIVE INCOME		2,430			3,710			195
RETAINED EARNINGS		48,719			42,890			37,950

TOTAL SHAREHOLDERS’ EQUITY		171,721			167,280			141,555

TOTAL LIABILITIES AND SHARE- HOLDERS’ EQUITY	$	2,215,024		$	2,234,795		$	1,998,599

BOOK VALUE PER COMMON SHARE	$	8.94		$	8.91		$	8.49

TANGIBLE BOOK VALUE PER COMMON SHARE	$	8.78		$	8.75		$	8.37

SHARES OF COMMON STOCK OUTSTANDING		13,984,390			13,552,641			11,285,327

FIDELITY SOUTHERN CORPORATION

LOANS, BY CATEGORY

(UNAUDITED)



	MARCH 31,
(DOLLARS IN THOUSANDS)	2012		2011		PERCENT CHANGE
COMMERCIAL, FINANCIAL AND AGRICULTURAL	$	105,920	$	94,483		12.10	%
TAX-EXEMPT COMMERCIAL		4,874		5,099		(4.41	)%
REAL ESTATE MORTGAGE - COMMERCIAL		393,399		358,357		9.78	%

TOTAL COMMERCIAL		504,193		457,939		10.10	%
REAL ESTATE-CONSTRUCTION		121,830		117,550		3.64	%
REAL ESTATE-MORTGAGE		135,039		121,460		11.18	%
CONSUMER INSTALLMENT		896,910		734,544		22.10	%

LOANS		1,657,972		1,431,493		15.82	%
LOANS HELD-FOR-SALE:
ORIGINATED RESIDENTIAL MORTGAGE LOANS		130,075		50,849		155.81	%
SBA LOANS		15,661		34,156		(54.15	)%
INDIRECT AUTO LOANS		30,000		30,000		0.00	%

TOTAL LOANS HELD-FOR-SALE		175,736		115,005		52.81	%

TOTAL LOANS	$	1,833,708	$	1,546,498		18.57	%

FIDELITY SOUTHERN CORPORATION

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(UNAUDITED)


	YEAR TO DATE MARCH 31,						YEAR ENDED DECEMBER 31, 2011
(DOLLARS IN THOUSANDS)	2012			2011			YEAR ENDED DECEMBER 31, 2011
BALANCE AT BEGINNING OF PERIOD	$	27,956		$	28,082		$	28,082
NET CHARGE-OFFS:
COMMERCIAL, FINANCIAL AND AGRICULTURAL		18			86			675
SBA		(3	)		164			1,329
REAL ESTATE-CONSTRUCTION		1,367			2,450			12,898
REAL ESTATE-MORTGAGE		—			105			760
CONSUMER INSTALLMENT		1,042			1,358			4,789

TOTAL NET CHARGE-OFFS		2,424			4,163			20,451
PROVISION FOR LOAN LOSSES		3,750			5,775			20,325

BALANCE AT END OF PERIOD	$	29,282		$	29,694		$	27,956

RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE
LOANS OUTSTANDING, NET		0.59	%		1.19	%		1.38	%
ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS		1.77	%		2.07	%		1.72	%
ALLOW FOR LOAN LOSSES AS A % OF LOANS EXCLUDING DECATUR FIRST BANK		1.84	%		2.07	%		1.81	%

NONPERFORMING ASSETS

(UNAUDITED)


	MARCH 31,						DECEMBER 31, 2011
(DOLLARS IN THOUSANDS)	2012			2011			DECEMBER 31, 2011
LEGACY NONPERMING ASSETS
NONACCRUAL LOANS	$	62,582		$	72,515		$	60,413
REPOSSESSIONS		966			1,438			1,423
OTHER REAL ESTATE		18,841			18,383			21,058

TOTAL LEGACY NONPERFORMING ASSETS	$	82,389		$	92,336		$	82,894

*** INCLUDES SBA GUARANTEED AMOUNTS OF APPROXIMATELY	$	8,040		$	4,502		$	5,216

LEGACY LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING	$	290		$	—		$	116
RATIO OF LEGACY LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING TO TOTAL LEGACY LOANS		0.02	%		—	%		0.01	%
RATIO OF LEGACY NONPERFORMING ASSETS TO TOTAL LEGACY LOANS, OREO AND REPOSSESSIONS		5.11	%		6.36	%		5.28	%
COVERED NONPERMING ASSETS⁽¹⁾
NONACCRUAL LOANS	$	14,428		$	—		$	6,272
OTHER REAL ESTATE		6,888			—			9,468

TOTAL COVERED NONPERFORMING ASSETS	$	21,316		$	—		$	15,740

RATIO OF COVERED NONPERFORMING ASSETS TO TOTAL COVERED LOANS AND OREO		29.35	%		—	%		18.10	%
RATIO OF TOTAL NONPERFORMING ASSETS TO TOTAL LOANS AND OREO		6.16	%		6.36	%		5.85	%

⁽¹⁾	Gross covered nonperforming assets covered by an 80% loss share agreement with the FDIC

FIDELITY SOUTHERN CORPORATION

AVERAGE BALANCE, INTEREST AND YIELDS

(UNAUDITED)


	QUARTER ENDED
	March 31, 2012								March 31, 2011
(DOLLARS IN THOUSANDS)	Average Balance			Income/ Expense		Yield/ Rate			Average Balance			Income/ Expense		Yield/ Rate
Assets
Interest-earning assets:
Loans, net of unearned income:
Taxable	$	1,780,480		$	22,705		5.13	%	$	1,571,471		$	21,840		5.63	%
Tax-exempt (1)		4,902			49		4.02	%		5,119			77		6.14	%

Total loans		1,785,382			22,754		5.13	%		1,576,590			21,917		5.63	%
Investment securities:
Taxable		220,553			1,305		2.37	%		175,378			1,391		3.17	%
Tax-exempt (2)		19,103			305		6.39	%		11,705			184		6.28	%

Total investment securities		239,656			1,610		2.69	%		187,083			1,575		3.38	%
Interest-bearing deposits		34,741			18		0.21	%		66,561			41		0.25	%
Federal funds sold		1,009			—		0.00	%		904			—		0.07	%

Total interest-earning assets		2,060,788			24,382		4.76	%		1,831,138			23,533		5.21	%
Noninterest-earning:
Cash and due from banks		16,485								31,879
Allowance for loan losses		(28,037	)							(28,346	)
Premises and equipment, net		29,464								19,689
Other real estate		29,357								21,271
Other assets		107,887								84,413

Total assets	$	2,215,944							$	1,960,044

Liabilities and shareholders’ equity
Interest-bearing liabilities:
Demand deposits	$	536,982		$	397		0.30	%	$	415,771		$	688		0.67	%
Savings deposits		377,187			292		0.31	%		407,759			1,121		1.11	%
Time deposits		663,513			2,318		1.41	%		615,735			2,723		1.79	%

Total interest-bearing deposits		1,577,682			3,007		0.77	%		1,439,265			4,532		1.28	%
Federal funds purchased		473			1		0.85	%		—			—		—
Securities sold under agreements to repurchase		16,057			9		0.23	%		26,683			166		2.53	%
Other short-term borrowings		37,577			164		1.76	%		1,000			9		3.70	%
Subordinated debt		67,527			1,139		6.78	%		67,527			1,121		6.73	%
Long-term debt		47,005			287		2.46	%		74,000			445		2.44	%

Total interest-bearing liabilities		1,746,321			4,607		1.06	%		1,608,475			6,273		1.58	%
Noninterest-bearing :
Demand deposits		266,116								188,386
Other liabilities		34,756								22,524
Shareholders’ equity		168,751								140,659

Total liabilities and shareholders’ equity	$	2,215,944							$	1,960,044

Net interest income / spread				$	19,775		3.70	%				$	17,260		3.63	%

Net interest margin							3.86	%							3.82	%

(1)	Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $17 and $27, respectively.

(2)	Interest income includes the effect of taxable-equivalent adjustment for 2012 and 2011 of $104 and $62, respectively.

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