ATLANTA , Oct. 18 /PRNewswire-FirstCall/ -- Fidelity Southern Corporation ('Fidelity') (Nasdaq: LION) reported net income of $1,679,000 for the third quarter of 2007 compared to $2,789,000 for the same quarter in 2006, a decrease of $1,110,000 or 39.8%, while total revenue increased 13.7%. Basic and diluted earnings per share for the third quarter of 2007 were $.18 compared to $.30 for the same period in 2006, a decrease of 40.0%.
Net income for the first nine months of 2007 was $6,313,000 compared to $7,476,000 for the same period in 2006, a decrease of $1,163,000 or 15.6%. Basic and diluted earnings per share for the first nine months of 2007 were $.68 compared to $.81 for the same period in 2006, a decrease of 16.0%.
The decline in earnings was due to a $2.7 million increase year-to-date in the loan loss provision, equal to $.18 a share.
Other significant developments were:
-- Noninterest income grew 19.3% year-to-date
-- Equity grew 7.8% year over year
-- Assets grew 5.8% year over year
-- Loans grew 8.2% year over year
-- Deposits grew 5.0% year over year
-- Net interest income grew 9.5% year-to-date
-- Net interest margin grew 7 basis points in the quarter versus first
quarter
'We continue to be diligent in our credit review process and are aggressive in dealing with our residential construction portfolios. Loans have been charged off or charged down in a rigorous fashion. Residential construction loans are only 19.5% of our diversified loan portfolio. We have only one condominium construction loan, and that loan is to a governmental entity. The units are nearly sold out. Nonresidential commercial real estate construction loans are only 1.1% of our loan portfolio.
'We are assuming the housing market will not improve very much until 2009, but believe fewer houses are being built than are being sold, which is a positive indicator. The supply of lots in greater Atlanta continues, however, to build while our exposure is reducing.
'Net of charge downs in October, we now have in OREO or in foreclosure 70 lots at a value of $3,168,000 , 21 houses at a value of $2,750,000 , and in nonaccrual 19 lots at a value of $1,100,000 and 5 houses at a value of $1,780,000 , which volume we consider manageable.
'The rebalancing of our deposit portfolio to generate more transaction accounts and the loan portfolio to include less residential construction loan outstandings has continued as planned and this trend should continue along with the modest asset growth we see ahead for the rest of 2007 and for 2008.
'We also need to note that we have no subprime lending programs or subprime loan portfolios and likewise have no investments in any subprime assets or assets with subprime characteristics. We also have no loan participations bought from other lenders as we prefer to underwrite and manage our own portfolio.'
Fidelity
'Noninterest income increased 20.0% in the first nine months. The successes of our investments in SBA and indirect automobile lenders and markets over the past several years are reflected in the significant increases in revenues from those activities in the first nine months of 2007 compared to the same period last year, with increases of 28.0% and 59.0% in indirect automobile revenues and in SBA revenues, respectively.
'The net interest margin improved to 3.09% in the third quarter from 3.02% in the first quarter. This was achieved through a continuing increase in the yield on the fixed rate consumer loan portfolio while the cost of funds stabilized in the third quarter due to growth in lower costing transaction balances and through conservative time deposit pricing. A significant amount of the non-relationship time deposit balances moved out of the bank.
'We are very pleased with the results of our branch expansion program during 2006 and 2007, with the new branches providing excellent deposit and loan growth and balances.
'We will not lose sight of improving operating results and building long- term shareholder value, nor will we lose sight of our dedication to providing superior service.'
As of September 30, 2007 , total assets were $1.662 billion compared to $1.570 billion at September 30, 2006 , a $92 million or 5.8% increase. In other year-ago comparisons, loans increased 8.2% to $1.377 billion , total loans, including loans held-for-sale, increased 8.1% to $1.425 billion , deposits increased 5.0% to $1.384 billion , and shareholders' equity increased 7.8% to $99 million .
Net interest income for the third quarter and first nine months of 2007 increased $899,000 and $3.0 million , or 8.1% and 9.5%, respectively, when compared to the same periods in 2006. These increases were driven by increases in average interest-earning assets. The net interest margin increased one basis point to 3.09% in the third quarter of 2007 and decreased by five basis points to 3.06% in the first nine months of 2007 when compared to the same periods in 2006.
Total interest income for the third quarter and first nine months of 2007 increased $3.3 million and $14.6 million , or 12.9% and 20.8%, respectively, compared to the same periods in 2006. The increases in interest income were due to 31 basis point and 57 basis point increases in the yield on average interest-earning assets and increases in average interest-earning assets of $118 million and $162 million , respectively, for the third quarter and first nine months of 2007 compared to the same periods in 2006.
Interest expense for the third quarter and first nine months of 2007 increased $2.4 million and $11.6 million , or 16.5% and 30.2%, respectively, compared to the same periods in 2006. The increases in interest expense were primarily attributable to 30 basis point and 65 basis point increases in the cost of interest-bearing liabilities for the third quarter and first nine months of 2007, respectively, when compared to the same periods of 2006, and increases in the volume of average interest-bearing liabilities of $120 million and $156 million , respectively, over the same periods of 2006.
The provision for loan losses for the third quarter and first nine months of 2007 was $2.8 million and $5.0 million , respectively, compared to $1.1 million and $2.3 million for the same periods in 2006. Net charge-offs increased $2.6 million in the first nine months of 2007 when compared to the same period in 2006. The ratio of net charge-offs to average loans outstanding was .39% for the first nine months of 2007 compared to .16% for the same period in 2006. The allowance for loan losses as a percentage of loans increased from 1.06% at September 30, 2006 , to 1.08% at September 30, 2007 . While net charge-offs and nonperforming assets have increased, the ratio of adversely classified loans to total loans decreased from 2.49% at September 30, 2006 , to 1.75% at September 30, 2007 . Compared to June 30, 2007 , the allowance for loan losses as a percentage of loans increased five basis points from 1.03% to 1.08% at September 30, 2007 . Nonperforming assets increased to $13.8 million at September 30, 2007 , compared to $5.2 million at September 30, 2006 , and $12.4 million at June 30, 2007 . The increase in nonperforming assets was primarily driven by increases in nonaccrual loans and other real estate, over 80% of the balances of which are secured by real estate. The remaining 20% is secured by other collateral. Management believes it has been proactive in identifying and charging down and charging off these nonperforming assets as appropriate.
Noninterest income increased $749,000 and $2.2 million , or 18.5% and 19.3%, to $4.8 million and $13.6 million , respectively, in the third quarter and first nine months of 2007, compared to the same periods in 2006. These increases were primarily due to increases in indirect lending revenues and SBA lending activities. Indirect lending revenues increased $245,000 and $885,000 , or 21.7% and 28.0%, to $1.4 million and $4.1 million , respectively, during the third quarter and first nine months of 2007 when compared to the same periods last year due to an increase in the number and volume of indirect loans sold and increases in servicing and other fees from indirect loans serviced. Revenue from SBA lending activities increased $282,000 and $722,000 , or 61.8% and 58.7%, to $738,000 and $2.0 million , respectively, due to the continuing expansion of the SBA lending business. In addition, service charges on deposit accounts increased $90,000 and $439,000 , or 7.9% and 14.1%, to $1.2 million and $3.6 million , respectively, due to the growing number of transaction accounts resulting from the transaction account acquisition program initiated in early 2006 to attract lower-costing deposits.
Noninterest expense for the third quarter and first nine months of 2007, increased $1.8 million and $4.5 million , or 17.8% and 15.0%, to $11.8 million and $34.8 million , respectively, when compared to the same periods of 2006. These increases were primarily related to increases in salaries and benefits expense of $1.2 million and $2.9 million , or 22.1% and 17.4%, to $6.6 million and $19.3 million , respectively, and increases in other operating expenses of $219,000 and $982,000 , or 16.6% and 25.9%, to $1.5 million and $4.8 million , respectively. The increases in salaries and benefits expenses were primarily due to the addition of seasoned loan production and branch operations staff, including SBA, indirect automobile, and commercial lenders to increase lending volume, and staff for the new branches added in 2006 and to some extent in 2007. The increases in other operating expenses were primarily related to hiring costs, business development costs, and costs related to growing numbers of accounts and related transaction activity.
Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides a wide range of banking, mortgage and investment services, and a credit related insurance product through 24 branches in Atlanta , Georgia , a branch in Jacksonville , Florida, and an insurance office in Atlanta , Georgia . Mortgage and construction loans are also provided through offices in Jacksonville , Florida. Automobile loans and SBA loans are provided through employees located throughout the Southeast. For additional information about Fidelity's products and services, please visit the web site at www.FidelitySouthern.com.
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting Fidelity's operations, markets, and products. Without limiting the foregoing, the words 'believes,' 'expects,' 'anticipates,' 'estimates,' 'projects,' 'intends,' and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions Fidelity believes are reasonable and may relate to, among other things, the adequacy of the allowance for loan losses, changes in interest rates, and litigation results. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected for many reasons including, without limitation, changing events and trends that have influenced Fidelity's assumptions. These trends and events include (i) difficulties in maintaining our growth; (ii) unique risks associated with our construction and land development loans; (iii) changes in the interest rate environment; (iv) changes in land values and economic conditions in Atlanta , Georgia ; (v) our ability to maintain and service relationships with our automobile dealers and investors and our ability to profitably manage changes in our indirect automobile lending operations; (vi) less favorable than anticipated changes in the national and local business environment, particularly in regard to the housing market in general and residential construction and new home sales in particular; (vii) adverse changes in the regulatory requirements affecting us; (viii) greater competitive pressures among financial institutions in our market; (ix) changes in political, legislative and economic conditions; (x) inflation; (xi) greater loan losses than historic levels and an insufficient allowance for loan losses; (xii) environmental liability risks; and (xiii) failure to achieve the revenue increases expected to result from our investments in branch additions and in our transaction deposit and lending businesses. This list is intended to identify some of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included herein and are not intended to represent a complete list of all risks and uncertainties in our business. Investors are encouraged to read the related section in Fidelity Southern Corporation's 2006 Annual Report on Form 10-K, including the 'Risk Factors' set forth therein. Additional information and other factors that could affect future financial results are included in Fidelity's filings with the Securities and Exchange Commission.
Contacts: Martha Fleming, Rod Marlow
Fidelity Southern Corporation (404) 240-1504
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT QUARTER-TO-DATE YEAR-TO-DATE
PER SHARE DATA) SEPTEMBER 30, SEPTEMBER 30,
2007 2006 2007 2006
INTEREST INCOME
LOANS, INCLUDING FEES $27,203 $23,669 $79,069 $63,855
INVESTMENT SECURITIES 1,789 1,935 5,472 6,015
FEDERAL FUNDS SOLD AND BANK
DEPOSITS 72 141 241 332
TOTAL INTEREST INCOME 29,064 25,745 84,782 70,202
INTEREST EXPENSE
DEPOSITS 14,816 12,587 43,561 31,391
SHORT-TERM BORROWINGS 557 425 1,577 2,140
SUBORDINATED DEBT 1,277 1,121 3,492 3,261
OTHER LONG-TERM DEBT 397 494 1,178 1,465
TOTAL INTEREST EXPENSE 17,047 14,627 49,808 38,257
NET INTEREST INCOME 12,017 11,118 34,974 31,945
PROVISION FOR LOAN LOSSES 2,800 1,100 4,950 2,300
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 9,217 10,018 30,024 29,645
NONINTEREST INCOME
SERVICE CHARGES ON DEPOSIT
ACCOUNTS 1,230 1,140 3,554 3,115
OTHER FEES AND CHARGES 478 410 1,408 1,184
MORTGAGE BANKING ACTIVITIES 75 162 275 534
BROKERAGE ACTIVITIES 199 116 603 555
INDIRECT LENDING ACTIVITIES 1,372 1,127 4,051 3,166
SBA LENDING ACTIVITIES 738 456 1,952 1,230
BANK OWNED LIFE INSURANCE 299 279 870 821
OTHER OPERATING INCOME 404 356 893 803
TOTAL NONINTEREST INCOME 4,795 4,046 13,606 11,408
NONINTEREST EXPENSE
SALARIES AND EMPLOYEE BENEFITS 6,613 5,417 19,304 16,449
FURNITURE AND EQUIPMENT 755 695 2,160 2,000
NET OCCUPANCY 1,064 877 2,991 2,597
COMMUNICATION EXPENSES 430 384 1,296 1,152
PROFESSIONAL AND OTHER SERVICES 894 749 2,725 2,258
ADVERTISING AND PROMOTION 272 307 701 1,132
STATIONERY, PRINTING AND SUPPLIES 193 229 573 605
INSURANCE EXPENSES 77 74 227 226
OTHER OPERATING EXPENSES 1,538 1,319 4,775 3,793
TOTAL NONINTEREST EXPENSE 11,836 10,051 34,752 30,212
INCOME BEFORE INCOME TAX EXPENSE 2,176 4,013 8,878 10,841
INCOME TAX EXPENSE 497 1,224 2,565 3,365
NET INCOME $1,679 $2,789 $6,313 $7,476
EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE $0.18 $0.30 $0.68 $0.81
DILUTED EARNINGS PER SHARE $0.18 $0.30 $0.68 $0.81
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-BASIC 9,341,021 9,275,999 9,320,465 9,263,403
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING-FULLY
DILUTED 9,343,009 9,284,519 9,329,302 9,275,691
FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT SEPTEMBER DECEMBER SEPTEMBER
PER SHARE DATA) 30, 31, 30,
ASSETS 2007 2006 2006
CASH AND DUE FROM BANKS $24,376 $32,659 $30,167
FEDERAL FUNDS SOLD 4,501 26,316 21,897
CASH AND CASH EQUIVALENTS 28,877 58,975 52,064
INVESTMENTS AVAILABLE-FOR-SALE 108,368 108,796 112,216
INVESTMENTS HELD-TO-MATURITY 29,907 33,182 34,350
INVESTMENT IN FHLB STOCK 4,765 4,834 3,934
LOANS HELD-FOR-SALE 47,611 58,268 45,244
LOANS 1,377,286 1,330,756 1,273,101
ALLOWANCE FOR LOAN LOSSES (14,886) (13,944) (13,548)
LOANS, NET 1,362,400 1,316,812 1,259,553
PREMISES AND EQUIPMENT, NET 18,853 18,803 15,763
OTHER REAL ESTATE 4,955 - -
ACCRUED INTEREST RECEIVABLE 9,566 9,312 8,166
BANK OWNED LIFE INSURANCE 26,445 25,694 25,447
OTHER ASSETS 19,866 14,503 13,075
TOTAL ASSETS $1,661,613 $1,649,179 $1,569,812
LIABILITIES
DEPOSITS:
NONINTEREST BEARING DEMAND $125,827 $154,392 $134,130
INTEREST BEARING DEMAND/
MONEY MARKET 310,367 286,620 261,253
SAVINGS 215,453 182,390 175,432
TIME DEPOSITS, $100,000 AND OVER 298,956 276,536 265,563
OTHER TIME DEPOSITS 433,009 486,603 481,432
TOTAL DEPOSIT LIABILITIES 1,383,612 1,386,541 1,317,810
FEDERAL FUNDS PURCHASED 6,000 20,000 20,000
OTHER SHORT-TERM BORROWINGS 55,861 52,061 34,797
SUBORDINATED DEBT 67,527 46,908 46,908
OTHER LONG-TERM DEBT 37,000 37,000 48,000
ACCRUED INTEREST PAYABLE 6,642 7,042 6,225
OTHER LIABILITIES 5,701 4,980 3,973
TOTAL LIABILITIES 1,562,343 1,554,532 1,477,713
SHAREHOLDERS' EQUITY
COMMON STOCK 45,770 44,815 44,634
APIC 134 - -
ACCUMULATED OTHER COMPREHENSIVE LOSS (1,758) (1,590) (1,802)
RETAINED EARNINGS 55,124 51,422 49,267
TOTAL SHAREHOLDERS' EQUITY 99,270 94,647 92,099
TOTAL LIABILITIES AND
SHARE-HOLDERS' EQUITY $1,661,613 $1,649,179 $1,569,812
BOOK VALUE PER SHARE $10.62 $10.19 $9.93
SHARES OF COMMON STOCK OUTSTANDING 9,351,195 9,288,222 9,278,856
FIDELITY SOUTHERN CORPORATION
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(UNAUDITED)
(DOLLARS IN THOUSANDS) YEAR-TO-DATE YEAR ENDED
SEPTEMBER 30, DECEMBER 31,
2007 2006 2006
BALANCE AT BEGINNING OF PERIOD $13,944 $12,643 $12,643
CHARGE-OFFS:
COMMERCIAL, FINANCIAL AND
AGRICULTURAL - 1 1
SBA - 67 67
REAL ESTATE-CONSTRUCTION 1,412 - -
REAL ESTATE-MORTGAGE 63 3 5
CONSUMER INSTALLMENT 3,555 2,417 3,616
TOTAL CHARGE-OFFS 5,030 2,488 3,689
RECOVERIES:
COMMERCIAL, FINANCIAL AND
AGRICULTURAL 255 418 505
SBA - 142 145
REAL ESTATE-CONSTRUCTION 40 - -
REAL ESTATE-MORTGAGE 78 5 7
CONSUMER INSTALLMENT 649 528 733
TOTAL RECOVERIES 1,022 1,093 1,390
NET CHARGE-OFFS 4,008 1,395 2,299
PROVISION FOR LOAN LOSSES 4,950 2,300 3,600
BALANCE AT END OF PERIOD $14,886 $13,548 $13,944
RATIO OF NET CHARGE-OFFS DURING PERIOD
TO AVERAGE LOANS OUTSTANDING, NET 0.39% 0.16% 0.19%
ALLOWANCE FOR LOAN LOSSES AS A
PERCENTAGE OF LOANS 1.08% 1.06% 1.05%
NONPERFORMING ASSETS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
SEPTEMBER 30,
2007 2006
NONACCRUAL LOANS $7,023 $4,237
REPOSSESSIONS 1,858 928
OTHER REAL ESTATE 4,955 -
TOTAL NONPERFORMING ASSETS $13,836 $5,165
LOANS PAST DUE 90 DAYS OR MORE AND
STILL ACCRUING $- $-
RATIO OF LOANS PAST DUE 90 DAYS OR
MORE AND STILL ACCRUING TO TOTAL LOANS -% -%
RATIO OF NONPERFORMING ASSETS TO
TOTAL LOANS AND REPOSSESSIONS 0.97% 0.39%
FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)
(DOLLARS IN THOUSANDS)
SEPTEMBER DECEMBER SEPTEMBER
30, 31, 30,
2007 2006 2006
COMMERCIAL, FINANCIAL AND AGRICULTURAL $107,523 $107,992 $100,382
TAX-EXEMPT COMMERCIAL 10,167 14,969 13,074
REAL ESTATE MORTGAGE - COMMERCIAL 181,076 163,275 156,357
TOTAL COMMERCIAL 298,766 286,236 269,813
REAL ESTATE-CONSTRUCTION 283,291 306,078 301,249
REAL ESTATE-MORTGAGE 96,558 91,652 84,337
CONSUMER INSTALLMENT 698,671 646,790 617,702
LOANS 1,377,286 1,330,756 1,273,101
LOANS HELD-FOR-SALE:
ORIGINATED RESIDENTIAL MORTGAGE LOANS 217 321 1,402
SBA LOANS 15,394 14,947 11,842
INDIRECT AUTO LOANS 32,000 43,000 32,000
TOTAL LOANS HELD-FOR-SALE 47,611 58,268 45,244
TOTAL LOANS $1,424,897 $1,389,024 $1,318,345
PERCENT CHANGE
Sep. 30, 2007/ Sep. 30, 2007/
Dec. 31, 2006 Sep. 30, 2006
COMMERCIAL, FINANCIAL AND AGRICULTURAL (0.43)% 7.11 %
TAX-EXEMPT COMMERCIAL (32.08)% (22.23)%
REAL ESTATE MORTGAGE - COMMERCIAL 10.90 % 15.81 %
TOTAL COMMERCIAL 4.38 % 10.73 %
REAL ESTATE-CONSTRUCTION (7.44)% (5.96)%
REAL ESTATE-MORTGAGE 5.35 % 14.49 %
CONSUMER INSTALLMENT 8.02 % 13.11 %
LOANS 3.50 % 8.18 %
LOANS HELD-FOR-SALE:
ORIGINATED RESIDENTIAL MORTGAGE LOANS (32.40)% (84.52)%
SBA LOANS 2.99 % 29.99 %
INDIRECT AUTO LOANS (25.58)% 0.00 %
TOTAL LOANS HELD-FOR-SALE (18.29)% 5.23 %
TOTAL LOANS
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
YEAR-TO-DATE
September 30, 2007
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income
Taxable $1,377,889 $78,491 7.62%
Tax-exempt (1) 13,897 864 8.32%
Total loans 1,391,786 79,355 7.62%
Investment securities
Taxable 139,695 5,311 5.07%
Tax-exempt (2) 5,322 247 6.19%
Total investment securities 145,017 5,558 5.11%
Interest-bearing deposits 1,110 44 5.27%
Federal funds sold 5,107 197 5.16%
Total interest-earning assets 1,543,020 85,154 7.38%
Cash and due from banks 23,269
Allowance for loan losses (14,122)
Premises and equipment, net 18,882
Other real estate owned 1,677
Other assets 50,400
Total assets $1,623,126
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $288,185 $7,566 3.51%
Savings deposits 197,619 6,536 4.42%
Time deposits 758,103 29,459 5.20%
Total interest-bearing deposits 1,243,907 43,561 4.68%
Federal funds purchased 8,593 357 5.56%
Securities sold under agreements to
repurchase 20,413 472 3.09%
Other short-term borrowings 21,990 748 4.55%
Subordinated debt 50,080 3,492 9.32%
Long-term debt 37,000 1,178 4.26%
Total interest-bearing liabilities 1,381,983 49,808 4.82%
Noninterest-bearing:
Demand deposits 130,715
Other liabilities 14,152
Shareholders' equity 96,276
Total liabilities and
shareholders' equity $1,623,126
Net interest income / spread $35,346 2.56%
Net interest margin 3.06%
YEAR-TO-DATE
September 30, 2006
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income
Taxable $1,203,577 $63,462 7.08%
Tax-exempt (1) 9,883 573 7.76%
Total loans 1,213,460 64,035 7.09%
Investment securities
Taxable 158,380 6,015 5.06%
Tax-exempt (2) - - -
Total investment securities 158,380 6,015 5.06%
Interest-bearing deposits 1,447 53 4.86%
Federal funds sold 7,684 279 4.86%
Total interest-earning assets 1,380,971 70,382 6.81%
Cash and due from banks 22,090
Allowance for loan losses (12,924)
Premises and equipment, net 15,161
Other real estate owned 107
Other assets 42,676
Total assets $1,448,081
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $223,686 $4,258 2.55%
Savings deposits 175,794 5,250 3.99%
Time deposits 658,926 21,883 4.44%
Total interest-bearing deposits 1,058,406 31,391 3.97%
Federal funds purchased 12,618 484 5.13%
Securities sold under agreements to
repurchase 29,715 696 3.13%
Other short-term borrowings 30,256 960 4.24%
Subordinated debt 46,908 3,261 9.29%
Long-term debt 48,000 1,465 4.08%
Total interest-bearing liabilities 1,225,903 38,257 4.17%
Noninterest-bearing:
Demand deposits 124,590
Other liabilities 9,956
Shareholders' equity 87,632
Total liabilities and
shareholders' equity $1,448,081
Net interest income / spread $32,125 2.65%
Net interest margin 3.11%
(1) Interest income includes the effect of taxable-equivalent adjustment
for 2007 and 2006 of $286,000 and $180,000 respectively.
(2) Interest income includes the effect of taxable-equivalent adjustment
for 2007 of $86,000.
FIDELITY SOUTHERN CORPORATION
AVERAGE BALANCE, INTEREST AND YIELDS
(UNAUDITED)
QUARTER-TO-DATE
September 30, 2007
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income
Taxable $1,401,855 $27,056 7.66%
Tax-exempt (1) 10,947 223 8.07%
Total loans 1,412,802 27,279 7.66%
Investment securities
Taxable 134,292 1,717 5.11%
Tax-exempt (2) 6,993 111 6.35%
Total investment securities 141,285 1,828 5.17%
Interest-bearing deposits 984 13 5.12%
Federal funds sold 4,658 59 5.04%
Total interest-earning assets 1,559,729 29,179 7.42%
Cash and due from banks 22,776
Allowance for loan losses (14,573)
Premises and equipment, net 18,986
Other real estate owned 3,484
Other assets 52,707
Total assets $1,643,109
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $303,979 $2,721 3.55%
Savings deposits 208,876 2,322 4.41%
Time deposits 745,179 9,773 5.20%
Total interest-bearing deposits 1,258,034 14,816 4.67%
Federal funds purchased 6,674 92 5.47%
Securities sold under agreements to
repurchase 23,582 211 3.55%
Other short-term borrowings 22,124 254 4.57%
Subordinated debt 56,321 1,277 8.99%
Long-term debt 37,000 397 4.26%
Total interest-bearing liabilities 1,403,735 17,047 4.82%
Noninterest-bearing:
Demand deposits 128,734
Other liabilities 13,457
Shareholders' equity 97,183
Total liabilities and
shareholders' equity $1,643,109
Net interest income / spread $12,132 2.60%
Net interest margin 3.09%
QUARTER-TO-DATE
September 30, 2006
Average Income/ Yield/
(dollars in thousands) Balance Expense Rate
Assets
Interest-earning assets:
Loans, net of unearned income
Taxable $1,267,437 $23,504 7.36%
Tax-exempt (1) 11,804 242 8.13%
Total loans 1,279,241 23,746 7.37%
Investment securities
Taxable 151,906 1,935 5.10%
Tax-exempt (2) - - -
Total investment securities 151,906 1,935 5.10%
Interest-bearing deposits 1,732 23 5.23%
Federal funds sold 9,057 118 5.23%
Total interest-earning assets 1,441,936 25,822 7.11%
Cash and due from banks 24,233
Allowance for loan losses (13,123)
Premises and equipment, net 15,762
Other real estate owned 198
Other assets 44,261
Total assets $1,513,267
Liabilities and shareholders' equity
Interest-bearing liabilities:
Demand deposits $245,638 $1,911 3.09%
Savings deposits 173,205 1,865 4.27%
Time deposits 723,943 8,811 4.83%
Total interest-bearing deposits 1,142,786 12,587 4.37%
Federal funds purchased 6,987 97 5.49%
Securities sold under agreements to
repurchase 23,067 181 3.11%
Other short-term borrowings 15,565 147 3.77%
Subordinated debt 46,908 1,121 9.48%
Long-term debt 48,000 494 4.08%
Total interest-bearing liabilities 1,283,313 14,627 4.52%
Noninterest-bearing:
Demand deposits 129,743
Other liabilities 11,069
Shareholders' equity 89,142
Total liabilities and
shareholders' equity $1,513,267
Net interest income / spread $11,195 2.59%
Net interest margin 3.08%
(1) Interest income includes the effect of taxable-equivalent adjustment
for 2007 and 2006 of $76,000 and $77,000 respectively.
(2) Interest income includes the effect of taxable-equivalent adjustment
for 2007 of $39,000.
SOURCE Fidelity Southern Corporation
