Fidelity Southern Corporation Record Earnings Of $25.3 Million For 2012; Revenue Increases 27.8% For 2012; 2012 Return On Assets

   Fidelity Southern Corporation Record Earnings Of $25.3 Million For 2012;
    Revenue Increases 27.8% For 2012; 2012 Return On Assets Reaches 1.08%

PR Newswire

ATLANTA, Jan. 17, 2013

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       3,088          4,816        3,511      2,894      1,979
expense
 Provision for    5,243          3,477        950        3,750      5,300
loan losses
 Write-down of    1,152          1,452        1,138      947        1,442
ORE
 Other cost of    1,358          1,376        564        789        887
ORE operations
Pre-tax,
pre-credit related 16,281         19,288       12,567     13,696     13,440
earnings
 Less security    —              (4)          —          (303)      (237)
gains
 Less acquisition —              (4,012)      —          (206)      (1,527)
gain
 Less accretion
of FDIC            (150)          (285)        (96)       (171)      —
indemnification
asset
Core operating     $  16,131      $  14,987    $ 12,471   $ 13,016   $ 11,676
earnings ^(1)
^(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 -      $  4.6   $  2.5   $  5.3   $  11.9   $  20.3
Non-Covered Loans
Net impairment provision -       0.6      1.0      —        1.5       —
Covered Loans
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  Non-Covered  Total
                              Loans    Loans
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          Including  Excluding  Including  Excluding  Including  Excluding
millions)      Covered    Covered    Covered    Covered    Covered    Covered
               Loans      Loans      Loans      Loans      Loans      Loans
Nonperforming  $  83.7    $  57.7    $  90.1    $  61.9    $  66.8    $  60.4
loans
Classified     114.9      108.9      121.6      113.5      119.6      112.2
loans
Allowance for
loan losses
as a           1.92    %  2.01    %  1.78    %  1.91    %  1.81    %  1.72    %
percentage of
total loans
Classified     44.17   %  41.87   %  48.31   %  45.09   %  52.43   %  49.45   %
items ratio
Nonperforming  6.88    %  4.74    %  7.62    %  5.12    %  5.28    %  5.96    %
assets ratio

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  September  December  December  September  December
                  31,       30,        31,       31,       30,        31,
                  2012      2012       2011      2012      2012       2011
Total risk-based  13.23%    13.41%     13.70%    12.46%    12.62%     12.73%
capital ratio
Tier 1 risk-based 11.86%    11.94%     11.85%    10.73%    10.87%     10.93%
capital ratio
Leverage capital  10.18%    9.89%      9.83%     9.22%     9.02%      9.08%
ratio

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,       September 30,      June 30,           March 31,          December 31,
             2012               2012               2012               2012               2011
($ in        $           %      $           %      $           %      $           %      $           %
millions)
Core         $ 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
deposits^(1)
Time
Deposits >   346.7       16.8   348.9       17.4   343.6       17.3   313.2       16.8   329.2       17.6
$100,000
Brokered     56.9        2.7    59.3        3.0    9.2         0.5    9.2         0.5    19.2        1.0
deposits
Total        $ 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
deposits
Quarterly
rate on      0.54%              0.55%              0.49%              0.66%              0.76%
deposits
^(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,    December 31,   September 30,  June 30,       March 31,      December 31,   Year Ended December 31,
except per
share and
stock
performance   2012           2012           2012           2012           2011           2012           2011
data)
RESULTS OF
OPERATIONS
Net Interest  $ 20,239       $ 20,690       $ 19,900       $ 19,655       $ 19,079       $ 80,484       $ 70,851
Income
Provision for 5,243          3,477          950            3,750          5,300          13,420         20,325
Loan Losses
Non-Interest  26,186         27,094         17,034         17,655         15,681         87,969         51,439
Income
Non-Interest  32,654         31,324         26,069         25,350         23,649         115,397        85,422
Expense
Income Tax    3,088          4,816          3,511          2,894          1,979          14,309         5,145
Expense
Net Income    5,440          8,167          6,404          5,316          3,832          25,327         11,398
Preferred
Stock         (823)          (823)          (823)          (823)          (824)          (3,292)        (3,293)
Dividends
Net Income
Available to  4,617          7,344          5,581          4,493          3,008          22,035         8,105
Common
Shareholders
PERFORMANCE
Earnings Per
Share - Basic $ 0.31         $ 0.50         $ 0.38         $ 0.31         $ 0.21         $ 1.51         $ 0.62
^(1)
Earnings Per
Share -       $ 0.28         $ 0.44         $ 0.34         $ 0.28         $ 0.20         $ 1.34         $ 0.56
Diluted ^(1)
Return on
Average       0.88        %  1.33        %  1.14        %  0.96        %  0.69        %  1.08        %  0.55        %
Assets
Return on
Average       11.36       %  17.93       %  14.84       %  12.67       %  9.34        %  14.19       %  7.43        %
Equity
NET INTEREST
MARGIN
Interest
Earning       4.35        %  4.51        %  4.66        %  4.76        %  4.71        %  4.56        %  4.87        %
Assets
Cost of Funds 0.86        %  0.90        %  0.96        %  1.06        %  1.17        %  0.94        %  1.37        %
Net Interest  3.49        %  3.61        %  3.70        %  3.70        %  3.54        %  3.62        %  3.50        %
Spread
Net Interest  3.63        %  3.74        %  3.86        %  3.86        %  3.72        %  3.77        %  3.68        %
Margin
CAPITAL
Cash
Dividends Per $ —            $ —            $ —            $ —            $ 0.01         $ —            $ 0.02
Share
Dividend      —           %  —           %  —           %  —           %  4.61        %  —           %  3.22        %
Payout Ratio
Tier 1
Risk-Based    11.86       %  11.94       %  11.68       %  11.91       %  11.85       %  11.86       %  11.85       %
Capital
Total
Risk-Based    13.23       %  13.41       %  13.29       %  13.66       %  13.70       %  13.23       %  13.70       %
Capital
Leverage      10.18       %  9.89        %  10.19       %  10.04       %  9.83        %  10.18       %  9.83        %
Ratio
AVERAGE
BALANCE SHEET
Loans, Net of $ 2,044,975    $ 2,013,423    $ 1,880,933    $ 1,785,382    $ 1,729,512    $ 1,931,714    $ 1,611,825
Unearned
Investment    174,810        188,028        198,754        239,656        273,913        200,208        228,822
Securities
Earning       2,230,918      2,211,353      2,088,221      2,060,788      2,049,763      2,148,428      1,933,771
Assets
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' 190,426        181,211        173,520        168,751        162,727        178,517        153,312
Equity
STOCK
PERFORMANCE
Market Price:
 Closing     $ 9.55         $ 9.37         $ 8.41         $ 6.46         $ 5.73         $ 9.55         $ 5.73
^(1)
 High Close  $ 10.33        $ 9.84         $ 8.85         $ 6.70         $ 6.55         $ 10.33        $ 8.85
^(1)
 Low Close   $ 8.56         $ 8.12         $ 6.38         $ 5.56         $ 5.42         $ 5.56         $ 5.75
^(1)
Daily Average
Trading       16,418         20,882         42,547         8,098          4,812          21,683         6,796
Volume
Book Value
Per Common    $ 9.85         $ 9.60         $ 9.07         $ 8.63         $ 8.59         $ 9.85         $ 8.59
Share ^(1)
Price to Book 0.97           0.98           0.93           0.75           0.67           0.97           0.67
Value
Tangible Book
Value Per     9.68           9.42           8.90           8.62           8.43           9.68           8.43
Common Share
^(1)
Price to
Tangible Book 0.99           0.99           0.94           0.75           0.68           0.99           0.68
Value

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

FIDELITY SOUTHERN CORPORATION
FINANCIAL HIGHLIGHTS continued
(UNAUDITED)

               Three Months Ended
               December 31,  September     June 30,      March 31,     December 31,  Year Ended December 31,
                             30,
($ in          2012          2012          2012          2012          2011          2012          2011
thousands)
ASSET QUALITY
Total
Non-Performing $  83,681     $  90,145     $  90,908     $  74,816     $  66,801     $  83,681     $  66,801
Loans
Total
Non-Performing 125,062       136,439       134,627       101,221       98,634        125,062       98,634
Assets
Loans 90 Days
Past Due and   —             —             111           290           116           —             116
Still Accruing
Including
Covered Loans:

Non-Performing 4.71       %  5.17       %  5.20       %  4.50       %  4.11       %  4.71       %  4.11       %
Loans as a %
of Loans

Non-Performing
assets as a %  6.88       %  7.62       %  7.52       %  6.01       %  5.96       %  6.88       %  5.96       %
of Loans Plus
ORE
 ALL to
Non-Performing 40.61      %  34.49      %  29.96      %  39.29      %  41.85      %  40.61      %  41.85      %
Loans
 Net
Charge-Offs
During the     0.81       %  0.27       %  0.70       %  0.58       %  1.54       %  0.60       %  1.38       %
Period to
Average Loans
 ALL as a %
of Loans, at   1.92       %  1.78       %  1.55       %  1.76       %  1.72       %  1.92       %  1.72       %
End of Period
Excluding
Covered Loans:

Non-Performing 3.75       %  3.75       %  3.81       %  3.97       %  3.91       %  3.75       %  3.91       %
Loans as a %
of Loans

Non-Performing
assets as a %  4.74       %  5.12       %  5.29       %  5.12       %  5.28       %  4.74       %  5.28       %
of Loans Plus
ORE
 ALL to
Non-Performing 50.89      %  50.89      %  43.70      %  46.57      %  46.19      %  50.89      %  46.19      %
Loans
 Net
Charge-Offs
During the     0.44       %  0.22       %  0.74       %  0.59       %  1.76       %  0.51       %  1.45       %
Period to
Average Loans
 ALL as a %
of Loans, at   2.01       %  1.91       %  1.65       %  1.84       %  1.81       %  2.01       %  1.81       %
End of Period
OTHER
INFORMATION
Non-Interest
Income to      56.40      %  56.70      %  46.12      %  47.32      %  45.11      %  52.22      %  42.06      %
Revenues
End of Period
Shares         14,780,175    14,626.323    14,557.157    14,505.212    14,068,747    14,780,175    14,068,747
Outstanding
^(1)
Weighted
Average Shares 14,711,899    14,579,100    14,530,415    14,407,568    14,011,146    14,557,728    13,042,429
Outstanding -
Basic ^(1)
Weighted
Average Shares 16,686,123    16,510,647    16,309.298    15,870.668    15,397,538    16,412,877    14,587,300
Outstanding -
Diluted ^(1)
Full-Time
Equivalent     774.2         752.6         701.9         656.5         626.4         774.2         626.4
Employees

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

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

                     Three Months Ended
                     December     September    June 30,     March 31,    December     Year Ended December 31,
                     31,          30,                                    31,
($ in thousands,
except per share     2012         2012         2012         2012         2011         2012         2011
data)
INTEREST INCOME
Loans, including     $  23,121    $  23,724    $  22,902    $  22,738    $  22,396    $  92,485    $  86,698
fees
Investment           1,141        1,208        1,189        1,506        1,783        5,044        6,777
securities
Federal funds sold   5            6            4            18           26           33           225
and bank deposits
Total interest       24,267       24,938       24,095       24,262       24,205       97,562       93,700
income
INTEREST EXPENSE
Deposits             2,722        2,686        2,658        3,007        3,519        11,073       16,309
Short-term           425          454          253          174          173          1,306        685
borrowings
Subordinated debt    881          1,090        1,132        1,139        1,129        4,242        4,494
Other long-term      —            18           152          287          305          457          1,361
debt
Total interest       4,028        4,248        4,195        4,607        5,126        17,078       22,849
expense
Net interest income  20,239       20,690       19,900       19,655       19,079       80,484       70,851
Provision for loan   5,243        3,477        950          3,750        5,300        13,420       20,325
losses
Net interest income
after provision for  14,996       17,213       18,950       15,905       13,779       67,064       50,526
loan losses
NONINTEREST INCOME
Service charges on   1,122        1,259        1,180        1,133        1,148        4,694        4,143
deposit accounts
Other fees and       883          841          852          784          684          3,360        2,613
charges
Mortgage banking     18,653       14,755       10,840       12,084       8,034        56,332       24,663
activities
Indirect lending     1,477        2,164        1,610        1,163        1,581        6,414        5,891
activities
SBA lending          715          2,107        1,269        853          1,871        4,944        8,463
activities
Bank owned life      323          330          332          322          99           1,307        1,315
insurance
Securities gains     —            4            —            303          237          307          1,078
Other                3,013        5,634        951          1,013        2,027        10,611       3,273
Total noninterest    26,186       27,094       17,034       17,655       15,681       87,969       51,439
income
NONINTEREST EXPENSE
Salaries and         20,886       18,589       15,325       14,849       13,410       69,649       47,525
employee benefits
Furniture and        1,046        1,032        994          977          795          4,049        3,075
equipment
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     2,043        1,992        2,081        2,141        1,571        8,257        5,690
other services
Cost of operation
of other real        2,510        2,828        1,702        1,737        2,329        8,777        7,896
estate
FDIC insurance       493          479          474          471          445          1,917        2,581
premiums
Other                3,675        4,305        3,572        3,346        3,462        14,898       11,993
Total noninterest    32,654       31,324       26,069       25,350       23,649       115,397      85,422
expense
Income before        8,528        12,983       9,915        8,210        5,811        39,636       16,543
income tax expense
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        (823)        (823)        (823)        (823)        (824)        (3,292)      (3,293)
discount accretion
Net income
available to common  $  4,617     $  7,344     $  5,581     $  4,493     $  3,008     $  22,035    $  8,105
equity
EARNINGS PER SHARE:
^(1)
Basic earnings per   $  0.31      $  0.50      $  0.38      $  0.31      $  0.21      $  1.51      $  0.62
share
Diluted earnings     $  0.28      $  0.44      $  0.34      $  0.28      $  0.20      $  1.34      $  0.56
per share
Weighted average
common shares        14,711,899   14,579,100   14,530,415   14,407,568   14,011,146   14,557,728   13,042,429
outstanding-basic
Weighted average
common shares        16,686,123   16,510,647   16,309,298   15,870,668   15,397,538   16,412,877   14,587,300
outstanding-diluted

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

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

($ in thousands,     December 31,  September     June 30,      March 31,     December 31,
except share data)   2012          30,           2012          2012          2011
                                   2012
ASSETS
Cash and cash        $ 49,020      $ 47,366      $ 38,333      $ 38,604      $ 57,284
equivalents
Investment
securities           154,367       165,598       193,251       183,611       261,419
available-for-sale
Investment
securities           6,162         6,842         7,471         8,185         8,876
held-to-maturity
Investment in FHLB   7,330         9,760         8,185         7,623         7,582
stock
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   (33,982)      (31,476)      (27,205)      (29,282)      (27,956)
losses
Loans, net of
allowance for loan   1,743,049     1,713,709     1,718,999     1,628,690     1,595,915
losses
FDIC
indemnification      20,074        38,225        44,667        13,266        12,279
asset
Premises and         37,669        36,519        35,949        30,352        28,909
equipment, net
Other real estate,   39,756        45,175        42,727        25,729        30,526
net
Accrued interest     7,995         8,384         8,432         8,238         9,015
receivable
Bank owned life      32,693        32,397        32,091        31,786        31,490
insurance
Deferred tax asset,  19,442        16,520        18,299        16,398        16,224
net
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  $ 381,846     $ 354,029     $ 345,063     $ 290,625     $ 269,590
demand deposits
Interest-bearing
deposits:
Demand and money     638,582       604,124       618,269       557,652       526,962
market
Savings              329,223       310,835       338,983       377,692       389,246
Time deposits,       346,743       348,871       343,570       313,209       329,164
$100,000 and over
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           88,500        99,500        82,500        42,500        34,500
borrowings
Federal funds        37,160        50,889        48,718        13,555        18,581
purchased
Subordinated debt    67,527        67,527        67,527        67,527        67,527
Other long-term      —             —             25,000        27,500        52,500
debt
Accrued interest     2,093         1,467         2,231         1,667         2,535
payable
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,  3,545         4,242         3,882         3,301         3,710
net of tax
Retained earnings    59,500        56,281        51,070        47,379        42,890
Total shareholders'  192,888       187,501       178,909       171,922       167,280
equity
Total Liabilities
and Shareholders'    $ 2,477,291   $ 2,442,794   $ 2,415,755   $ 2,215,226   $ 2,234,795
Equity
Book Value Per       $ 9.85        $ 9.60        $ 9.07        $ 8.63        $ 8.59
Common Share ^(1)
Shares of Common
Stock Outstanding    14,780,175    14,626,323    14,557,157    14,505,212    14,068,747
^(1)

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

FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)

($ in           December 31,  September     June 30,      March 31,     December 31,
thousands)                    30,
                2012          2012          2012          2012          2011
Commercial,
Financial and   $ 119,993     $ 102,494     $ 101,182     $ 105,920     $ 106,552
Agricultural
Tax-Exempt      4,698         4,787         4,816         4,874         4,944
Commercial
Real Estate
Mortgage -      468,477       507,408       491,894       393,399       409,932
Commercial
 Total
Commercial and  593,168       614,689       597,892       504,193       521,428
SBA Loans
Real Estate -   106,170       102,758       109,501       121,830       122,795
Construction
Real-Estate -   146,818       114,842       112,832       135,039       143,717
Mortgage
Consumer        930,875       912,896       925,978       896,910       835,931
Installment
Loans           1,777,031     1,745,185     1,746,203     1,657,972     1,623,871
Loans
Held-For-Sale:
Originated
Residential     253,108       212,714       164,144       130,075       90,907
Mortgage
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   304,094       259,659       214,335       175,736       133,849
Held-For-Sale
 Total       $ 2,081,125   $ 2,004,844   $ 1,960,538   $ 1,833,708   $ 1,757,720
Loans
Non-Covered     $ 1,699,892   $ 1,648,678   $ 1,632,014   $ 1,584,822   $ 1,546,391
Loans
Covered Loans   77,139        96,507        114,189       73,150        77,480
Loans           304,094       259,659       214,335       175,736       133,849
Held-For-Sale
 Total       $ 2,081,125   $ 2,004,844   $ 1,960,538   $ 1,833,708   $ 1,757,720
Loans

DEPOSITS, BY CATEGORY
(UNAUDITED)

                     December 31,  September     June 30,      March 31,     December 31,
                                   30,
($ in thousands)     2012          2012          2012          2012          2011
Noninterest-Bearing  $ 381,846     $ 354,029     $ 345,062     $ 290,625     $ 269,590
Demand
Interest-Bearing
Deposits:
 Interest-Bearing
Demand / Money       638,582       604,124       618,269       557,652       526,962
Market
 Savings            329,223       310,835       338,984       377,692       389,246
 Time Deposits      346,743       348,871       343,570       313,209       329,164
$100,000 and Over
 Other Time         314,675       326,471       332,185       319,995       337,350
Deposits
 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

FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)

                Three Months Ended
                December    September   June 30,    March 31,   December    Year Ended December
                31,         30,                                 31,         31,
($ in           2012        2012        2012        2012        2011        2012        2011
thousands)
Balance at
Beginning of    $ 31,476    $ 27,205    $ 29,282    $ 27,956    $ 29,381    $ 27,956    $ 28,082
Period
Net Charge-Offs
(Recoveries):
Commercial,
Financial, and  421         41          613         15          417         1,090       675
Agricultural
SBA             271         103         84          (3)         694         455         1,329
Real Estate     (78)        (31)        1,607       1,300       3,413       2,798       12,898
Construction
Real Estate     30          23          228         —           72          281         487
Mortgage
Consumer        3,026       1,085       495         1,112       2,129       5,718       5,062
Installment
Total Net       3,670       1,221       3,027       2,424       6,725       10,342      20,451
Charge-Offs
Provision for
Loan Losses -   4,666       2,500       950         3,750       5,300       11,866      20,325
Non-Covered
Loans
Net Impairment
Provision -     577         977         —           —           —           1,554       —
Covered Loans
FDIC
Indemnification 933         2,015       —           —           —           2,948       —
Asset - Covered
Loans
Balance at End  $ 33,982    $ 31,476    $ 27,205    $ 29,282    $ 27,956    $ 33,982    $ 27,956
of Period
Ratio of Net
Charge-Offs
during the
Period to       0.81     %  0.27     %  0.70     %  0.58     %  1.54     %  0.60     %  1.38     %
Average Loans
Outstanding,
Net
Allowance for
Loan Losses as  1.92     %  1.78     %  1.55     %  1.76     %  1.72     %  1.92     %  1.72     %
a Percentage of
Loans
Allowance for
Loan Losses as
a Percentage of 2.01     %  1.91     %  1.65     %  1.84     %  1.81     %  2.01     %  1.81     %
Loans Excluding
Covered Loans

NONPERFORMING ASSETS
(UNAUDITED)

               December     September    June 30,     March 31,    December
               31,          30,                                    31,
($ in          2012         2012         2012         2012         2011
thousands)
Non-Covered
Nonperforming
Assets
Nonaccrual     $ 57,713     $ 61,854     $ 62,142     $ 62,582     $ 60,413
Loans
Repossessions  1,625        1,119        1,103        966          1,423
Other Real     22,429       22,573       24,929       18,841       21,058
Estate
Total
Non-Covered    $ 81,767     $ 85,546     $ 88,174     $ 82,389     $ 82,894
Nonperforming
Assets
*** Includes
SBA Guaranteed $ 12,085     $ 8,742      $ 8,882      $ 8,040      $ 5,216
Amounts of
Approximately
Non-Covered
Loans Past Due
90 Days or     $ —          $ —          $ 111        $ 290        $ 116
More and Still
Accruing
Non-Covered
Loans 30-89    $ 5,028      $ 7,077      $ 5,214      $ 20,024     $ 18,879
Days Past Due
Ratio of
Non-Covered
Loans Past Due
90 Days or
More and Still —         %  —         %  0.01      %  0.02      %  0.01      %
Accruing to
Total
Non-Covered
Loans
Ratio of
Non-Covered
Loans 30-89
Days Past Due  0.30      %  0.43      %  0.32      %  1.26      %  1.22      %
to Total
Non-Covered
Loans
Ratio of
Non-Covered
Nonperforming
Assets to
Total          4.74      %  5.12      %  5.29      %  5.12      %  5.28      %
Non-Covered
Loans, ORE,
and
Repossessions
Covered
Nonperforming
Assets
Nonaccrual     $ 25,968     $ 28,291     $ 28,655     $ 11,944     $ 6,272
Loans
Other Real     17,327       22,602       17,798       6,888        9,468
Estate
Covered
Nonperforming  $ 43,295     $ 50,893     $ 46,453     $ 18,832     15,740
Assets
Classified
Assets
Classified     $ 114,857    $ 121,556    $ 122,280    $ 111,894    $ 119,569
Loans
ORE and Other
Nonperforming  41,381       46,294       43,830       26,695       31,949
Assets
Total
Classified     $ 156,238    $ 167,850    $ 166,110    $ 138,589    $ 151,518
Assets

FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)

                     YEAR TO DATE
                     December 31, 2012               December 31, 2011
                     Average       Income/   Yield/  Average       Income/   Yield/
($ in thousands)     Balance       Expense   Rate    Balance       Expense   Rate
Assets
Interest-earning
assets:
Loans, net of
unearned income:
Taxable              $ 1,926,904   $ 92,347  4.79 %  $ 1,606,783   $ 86,497  5.38 %
Tax-exempt ^(1)      4,810         207       4.36 %  5,042         308       6.14 %
Total loans          1,931,714     92,554    4.79 %  1,611,825     86,805    5.38 %
Investment
securities:
Taxable              181,489       4,255     2.34 %  215,719       6,227     2.89 %
Tax-exempt ^(2)      18,719        1,200     6.41 %  13,103        829       6.33 %
Total investment     200,208       5,455     0.27 %  228,822       7,056     3.09 %
securities
Interest-bearing     15,583        33        0.21 %  92,174        225       0.24 %
deposits
Federal funds sold   923           —         0.06 %  950           —         0.06 %
Total
interest-earning     2,148,428     98,042    4.56 %  1,933,771     94,086    4.87 %
assets
Noninterest-earning:
Cash and due from    24,862                          23,769
banks
Allowance for loan   (28,699)                        (28,724)
losses
Premises and         33,982                          22,253
equipment, net
Other real estate    37,172                          24,754
Other assets         129,431                         87,346
Total assets         $ 2,345,176                     $ 2,063,169
Liabilities and
shareholders' equity
Interest-bearing
liabilities:
Demand deposits      $ 581,577     $ 1,610   0.28 %  $ 439,243     $ 2,334   0.53 %
Savings deposits     342,806       1,169     0.34 %  407,865       3,183     0.78 %
Time deposits        679,940       8,294     1.22 %  652,343       10,792    1.65 %
Total
interest-bearing     1,604,323     11,073    0.69 %  1,499,451     16,309    1.09 %
deposits
Federal funds        29,003        228       0.79 %  36            —         1.06 %
purchased
Securities sold
under agreements to  13,007        28        0.22 %  19,335        210       1.09 %
repurchase
Other short-term     78,769        1,050     1.33 %  18,680        475       2.54 %
borrowings
Subordinated debt    67,527        4,242     6.28 %  67,527        4,494     6.66 %
Long-term debt       18,729        457       2.44 %  58,301        1,361     2.33 %
Total
interest-bearing     1,811,358     17,078    0.94 %  1,663,330     22,849    1.37 %
liabilities
Noninterest-bearing:
Demand deposits      329,150                         219,377
Other liabilities    26,151                          27,150
Shareholders' equity 178,517                         153,312
Total liabilities
and shareholders'    $ 2,345,176                     $ 2,063,169
equity
Net interest                       $ 80,964  3.62 %                $ 71,237  3.50 %
income/spread
Net interest margin                          3.77 %                          3.68 %

^(1) Interest income includes the effect of taxable-equivalent adjustment for
2012 and 2011 of $69,500 and $106,500, respectively.
^(2) Interest income includes the effect of taxable-equivalent adjustment for
2012 and 2011 of $410,300 and $280,000, respectively.

FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)

                     QUARTER ENDED
                     December 31, 2012               December 31, 2011
                     Average       Income/   Yield/  Average       Income/   Yield/
($ in thousands)     Balance       Expense   Rate    Balance       Expense   Rate
Assets
Interest-earning
assets:
Loans, net of
unearned income:
Taxable              $ 2,040,253   $ 23,086  4.50 %  $ 1,724,546   $ 22,346  5.14 %
Tax-exempt ^(1)      4,722         52        4.45 %  4,966         77        6.14 %
Total loans          2,044,975     23,138    4.50 %  1,729,512     22,423    5.15 %
Investment
securities:
Taxable              156,489       946       2.42 %  256,658       1,600     2.49 %
Tax-exempt ^(2)      18,321        297       6.70 %  17,255        277       6.43 %
Total investment     174,810       1,243     2.85 %  273,913       1,877     2.75 %
securities
Interest-bearing     10,058        5         0.22 %  45,162        26        0.23 %
deposits
Federal funds sold   1,075         —         0.05 %  1,176         —         0.07 %
Total
interest-earning     2,230,918     24,386    4.35 %  2,049,763     24,326    4.71 %
assets
Noninterest-earning:
Cash and due from    29,818                          20,330
banks
Allowance for loan   (31,519)                        (28,582)
losses
Premises and         37,030                          27,261
equipment, net
Other real estate    44,363                          34,417
Other assets         143,634                         91,672
Total assets         $ 2,454,244                     $ 2,194,861
Liabilities and
shareholders' equity
Interest-bearing
liabilities:
Demand deposits      $ 605,309     $ 425     0.28 %  $ 492,980     $ 481     0.39 %
Savings deposits     317,336       353       0.44 %  395,654       401       0.40 %
Time deposits        730,381       1,944     1.06 %  688,126       2,637     1.52 %
Total
interest-bearing     1,653,026     2,722     0.66 %  1,576,760     3,519     0.89 %
deposits
Federal funds        40,864        77        0.75 %  109           —         1.11 %
purchased
Securities sold
under agreements to  13,809        7         0.22 %  18,649        11        0.23 %
repurchase
Other short-term     89,185        341       1.52 %  30,360        162       2.12 %
borrowings
Subordinated debt    67,527        881       5.19 %  67,527        1,129     6.64 %
Long-term debt       —             —         —    %  52,500        305       2.30 %
Total
interest-bearing     1,864,411     4,028     0.86 %  1,745,905     5,126     1.16 %
liabilities
Noninterest-bearing:
Demand deposits      369,419                         257,393
Other liabilities    29,988                          28,836
Shareholders' equity 190,426                         162,727
Total liabilities
and shareholders'    $ 2,454,244                     $ 2,194,861
equity
Net interest                       $ 20,358  3.49 %                $ 19,200  3.55 %
income/spread
Net interest margin                          3.63 %                          3.72 %

^(1) Interest income includes the effect of taxable-equivalent adjustment for
2012 and 2011 of $17,500 and $26,400, respectively.
^(2) Interest income includes the effect of taxable-equivalent adjustment for
2012 and 2011 of $101,700 and $9,200, respectively.



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



SOURCE Fidelity Southern Corporation

Website: http://www.fidelitysouthern.com
 
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