30 atDecember 31 2007 reflecting the 48

He promised during the campaign to bolster troop levels there to battle growing violence and a resurgent Taliban and al Qaeda, but new Secretary of State Hillary Clinton said at her confirmation hearing that a broader strategy was needed in Afghanistan that included diplomacy, defense and development.In addition to more troops in Afghanistan, the United States has promised more nonmilitary aid to Pakistan devoted in part to developing tribal areas where al Qaeda militants have flourished. Osama bin Laden and other top al Qaeda militants are believed to be hiding in the mountainous border region of Pakistan near Afghanistan.- Clinton has suggested a U.S. envoy would need to shuttle between Pakistan and Afghanistan to help guide the efforts in the border region between the two countries, and has suggested she will be looking for more regional support. The United States could look to India, central Asian states and even China or Russia for help. The two have fought three wars since 1947, and relations between the countries have deteriorated since the Mumbai attacks.

India blames the attacks on Pakistani militants, but Islamabad has denied any involvement by state agencies. India has paused a peace process that started in 2004, and the United States must decide how hard it will press for a resumption particularly before Indian elections in May.- The United States must decide how involved to become in the dispute over Kashmir, a region claimed by both India and Pakistan that has been a flashpoint between the countries for decades. A solution to that dispute could free Islamabad to focus more on Afghanistan. Barack Obama China Russia. Written by Foulkes, Smith, and Christopher O'Reilly, the humorous eight-minutefilm follows two dour undertakers as they battle a series of misadventureswhile trying to deliver a coffin to the graveyard. The film is currentlyscreening at the Sundance Film Festival."Some of the most creative filmmaking in the world is coming in the field ofanimation, and we're thrilled that the Academy has recognized our work at thisexciting time," says Charlotte Bavasso, a producer of "This Way Up" and theco-founder of Nexus with Chris O'Reilly.Nexus, the London-based animation company founded ten years ago, is currentlyworking on a full slate of commercials, music videos and short-form animatedfilms. Its first commission was to create animated content for the world'slargest video screens on U2's "Pop Mart" world tour; since then, the companyhas assembled an international stable of directors to work on films,television shows, commercials, music videos and title sequences.

Nexus was theproduction company behind the acclaimed titles of the Steven Spielberg film"Catch Me If You Can" and the 2006 remake of "The Pink Panther." Over the lastten years Nexus has developed one of the largest 3D animation studios."At Nexus we've always been committed to short film animation, so it'sfantastic to be honored with the nomination in this category," says O'Reilly. "But more than just being singled out by the Academy, the Oscar(R) nominationis important to us because it's a stepping stone for us to develop featurelength animation."Smith and Foulkes have directed short films, music videos, commercials andtitle sequences at Nexus.Their work includes Super Bowl commercials for CocaCola, the title sequence for "Thunderbirds," a film-within-a-film for "LemonySnicket's Series of Unfortunate Events," and commercials for VW, Sony andMotorola."This Way Up" has won numerous awards at film festivals around the world,including:Sundance Film Festival - Official SelectionLondon Short Film Festival - Comedy AwardSiggraph Asia - Best of ShowOttawa Animation Festival - Public Prize for Best Short FilmPalm Springs International Short Film Festival - Audience Award forAnimated ShortMundos Digitales (Spain) - Audience Award for Animated ShortRhode Island International Film Festival - Best Animation27th Uppsala International Short Film Festival - Best Children'sFilmFestival Opere Nuove (Bolzano, Italy) - Special Mention"This Way Up" and the other Oscar-nominated shorts in both the animated andlive-action categories will be released by Shorts International and MagnoliaPictures in theaters nationwide on February 6.The films will also beavailable on iTunes beginning February 17, one week before the Oscar ceremony.Contact:Jane Ayer/Irene DeanJane Ayer Public http:// http:// Ayer or Irene Dean, both of Jane Ayer Public Relations, 1-818-990-8544,, for Nexus. said, "We continued to have positive pre-taxpre-provision earnings of $15.2 million which, with the TARP funding, leavesus in a strong position for the future."CAPITALFidelity reported total risk based capital ratio improved in the Bank to13.09 at December 31, 2008 from 10.45 at September 30, 2008 and 10.30 atDecember 31, 2007, reflecting the $48.2 million TARP investment from the U.S.Treasury in December 2008.TARPMiller also said, "The $48 million in TARP funding had a positiveimmediate impact on the Company's capital, liquidity, and its ability to lend.Beginning with the receipt of TARP funds in December, we have increased loansto consumers to purchase automobiles by over $10 million, and anticipate thisto increase each quarter.We also hired 53 people into the mortgage companyin January, which will increase mortgage lending significantly.The volume ofmortgage loans produced should increase more than $50 million in the firstquarter."ALLOWANCEFidelity reported an increase in the allowance for loan losses to $33.7million or 2.43 of total loans at December 31, 2008, and $17.1 milliongreater than year-end 2007.PROVISIONThe provision for loan losses for the fourth quarter and the year 2008 was$14.7 million and $36.6 million, respectively, compared to $3.6 million and$8.5 million for the same periods in 2007, due to increased charge-offs andthe continued adverse credit trends in the construction loan portfolio and inthe consumer loan portfolio through December 31, 2008.Net charge-offsincreased $4.9 million and $13.3 million to $7.0 million and $19.4 million forthe fourth quarter and the year 2008 when compared to the same periods in2007.The allowance for loan losses as a percentage of loans increased from1.19 at December 31, 2007, to 2.43 at December 31, 2008.OREO, CHARGE-OFFS, NONPERFORMINGNet charge-offs decreased to $7.0 million in the fourth quarter from $7.9million in the third quarter of 2008, and were $19.4 million for the year2008.The ratio of net charge-offs to average loans outstanding was 1.36 for2008 compared to .45 for 2007.Nonperforming loans, repossessions and other real estate totaled $115.2million at the end of the fourth quarter, an increase of $23.9 million in thequarter.Nonperforming residential construction and development loans at December31, 2008, included 171 houses and 631 lots and land totaling approximately$85.7 million.During the quarter approximately $4.6 million of nonperformingloans were paid down by our customers while approximately $27.0 million inloans were moved to nonperforming.During the fourth quarter, $2.3 million of ORE assets were sold while$744,000 was added to ORE net of $930,000 in charge-downs.ORE consists of 49houses, representing 55 of total balances, and 135 lots and two commercialproperties.ORE increased to $15.1 million at year-end 2008.Management believes it has identified and placed on nonaccrual, chargeddown, and charged off nonperforming assets timely and appropriately.COST OF FUNDSCost of funds decreased 106 basis points to 3.63 and 94 basis points to3.85 for the fourth quarter and the year 2008, respectively, compared to thesame periods in 2007 as a result of moderating deposit pricing.Totally Freechecking balances increased 43 this year, while remote deposit volume grew to31.9 of all deposits in December 2008.REAL ESTATENew residential construction loan advances made during the quarter totaled$15.9 million, while the payoffs of construction loans totaled $19.3 million.There are 523 houses and 1,939 lots financed at December 31, 2008, compared to700 houses and 2,138 lots at December 31, 2007.Construction and A&D loans totaled $224.8 million at year-end 2008, down21.4 from $286.1 million at year-end 2007.Residential construction and A&D loans as a percentage of capitaldecreased from 177 at December 31, 2007, to 124 at December 31, 2008.Theregulatory guideline is a maximum of 100.All real estate loans, except for owner-occupied properties, as apercentage of capital decreased from 237 at December 31, 2007, to 172 atDecember 31, 2008.The regulatory guideline is a maximum of 300.NET INCOMEThe decrease in net income for both the fourth quarter and the year 2008compared to the prior year was primarily the result of a higher provision forloan losses due to higher charge-offs and adverse credit trends in the realestate construction and in the consumer loan portfolios requiring an increasein the allowance for loan losses.NET INTEREST INCOMENet interest income for the fourth quarter decreased $1.1 million or 9.4over the same period in 2007 and for the year 2008, decreased $362,000 or .8when compared to the same period of 2007.The net interest margin decreased24 basis points to 2.62 in the fourth quarter compared to 2.86 in the thirdquarter of 2008, decreased 37 basis points in the fourth quarter of 2008 whencompared to the same period in 2007, and decreased 20 basis points to 2.84for 2008 compared to the same period in 2007.The decreases are the result oflower margins from reductions in the prime rate, foregone interest due to anincrease in nonperforming assets and the continued pressures on cost ofdeposits in the Atlanta market.INTEREST INCOMETotal interest income for the fourth quarter and the year 2008 decreased$4.4 million and $9.4 million, or 15.2 and 8.3, respectively, compared tothe same periods in 2007.The decreases in interest income in the fourthquarter and the year 2008 were the result of a decrease of 128 basis pointsand 100 basis points in the yield on average interest-earning assets,respectively, offset in part by the growth in average interest-earning assetsfor the fourth quarter and year 2008, which increased $55.3 million and $95.4million or 3.5 and 6.1, respectively.INTEREST EXPENSEInterest expense for the fourth quarter and the year 2008 decreased $3.2million and $9.0 million, or 19.2 and 13.6, respectively, compared to thesame periods in 2007.The decreases in interest expense were attributable toan increase in average interest-bearing liabilities of $66.0 million and$104.0 million, respectively, more than offset by a 106 basis point and 94basis point decrease in the cost of interest-bearing liabilities,respectively.NONINTEREST INCOMENoninterest income decreased $562,000 and 13.1 to $3.7 million in thefourth quarter of 2008 compared to the same period in 2007.This decrease innoninterest income was a result of lower SBA lending activities, whichdecreased $406,000 or 82.5 to $86,000 and decreased indirect lending revenuesof $358,000 or 25.6 to $1.0 million.Both the SBA lending activity andindirect lending revenues were hindered by the lack of liquidity in theeconomy resulting in fewer sales and lower gains on sales.Partiallyoffsetting the decrease were increases in other income and income on bankowned life insurance.Noninterest income decreased $275,000 or 1.5 to $17.6 million for theyear ended December 31, 2008, compared to 2007, due to a decrease in SBAlending revenues of $1.2 million, or 48.9, to $1.3 million compared to thesame period last year.The decrease is a result of a reduction in loans soldfrom $40.0 million for the year ended December 31, 2007 to $18.1 million in2008.Other operating income decreased $375,000 or 19.6 to $1.5 million dueto lower retail brokerage commissions, and lower insurance commissions net ofgains on asset sales.The decrease in other income is somewhat offset by a$1.3 million securities gain in the first quarter of 2008 from the mandatoryredemption of 29,267 shares of Visa, Inc. common stock as a result of itsinitial public offering in March 2008.NONINTEREST EXPENSENoninterest expense for the fourth quarter decreased $37,000 or .3 to$12.4 million compared to the same period in 2007.The decrease is a resultof a reduction in salaries and employee benefits of $471,000 or 7.2 to $6.0million as the Bank reduced the number of employees, offset by higher otheroperating expense, which increased $475,000 or 20.9 to $2.7 million dueprimarily to higher ORE expense, FDIC insurance premiums and loss on valuationof SBA loans held-for-sale.Noninterest expense for the year ended December 31, 2008, increased $1.6million or 3.5 to $48.8 million compared to 2007.The increase for the yearended December 31, 2008, is a result of ORE write-downs and related expenseswhich increased to $3.3 million for 2008 compared to $105,000 in 2007, FDICinsurance expense which increased $818,000, appraisal fees which increased$230,000 and a loss of $192,000 related to impairment on SBA loans held-for-sale.Offsetting these increases was the VISA litigation accrual activity inwhich a $567,000 accrual was recorded in the fourth quarter of 2007 for theBank's estimated proportional share of a settlement of the VISA litigation.In the first quarter of 2008, this accrual was reversed as the result of VISAfunding a litigation escrow account through its initial public offering.In2008, an additional $142,000 VISA accrual was recorded.The net change forthis VISA related litigation was a reduction in other expense of approximately$1.0 million for the year ended December 31, 2008, compared to 2007.Otheryear-over-year reductions in expense came from decreased employee placementfees, fraud and other losses, dealer track application expense, travelexpense, credit reports, clearing and administration fees and businessdevelopment expense as the Bank continued to implement cost cutting measures.Fidelity Southern Corporation, through its operating subsidiaries FidelityBank and LionMark Insurance Company, provides banking services and creditrelated insurance products through 23 branches in Atlanta, Georgia, a branchin Jacksonville, Florida, and an insurance office in Atlanta, Georgia.SBAloans are provided through employees located throughout the Southeast.Foradditional information about Fidelity's products and services, please visitthe website at news release contains forward-looking statements, as defined byFederal Securities Laws, including statements about financial outlook andbusiness environment.These statements are provided to assist in theunderstanding of future financial performance and such performance involvesrisks and uncertainties that may cause actual results to differ materiallyfrom those in such statements.Any such statements are based on currentexpectations and involve a number of risks and uncertainties.For adiscussion of some factors that may cause such forward-looking statements todiffer materially from actual results, please refer to the section entitled"Forward Looking Statements" on page 3 of Fidelity Southern Corporation's 2007Annual Report filed on Form 10-K with the Securities and Exchange Commission.Contacts: Martha Fleming, Steve BrollyFidelity Southern Corporation (404) 240-1504FIDELITY SOUTHERN CORPORATIONCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(DOLLARS IN THOUSANDS, EXCEPT QUARTER ENDEDYEAR ENDEDPER SHARE DATA)DECEMBER 31,DECEMBER 31, 2008 2007 2008 2007INTEREST INCOME LOANS, INCLUDING FEES $22,468$26,855$96,398 $105,924 INVESTMENT SECURITIES 1,8351,7657,4417,237 FEDERAL FUNDS SOLD AND BANKDEPOSITS26 60215301TOTAL INTEREST INCOME 24,329 28,680104,054113,462INTEREST EXPENSEDEPOSITS11,518 14,341 48,722 57,902SHORT-TERM BORROWINGS3857392,0652,316SUBORDINATED DEBT1,3071,4535,2844,945OTHER LONG-TERM DEBT 4193411,5651,519TOTAL INTEREST EXPENSE13,629 16,874 57,636 66,682NET INTEREST INCOME 10,700 11,806 46,418 46,780PROVISION FOR LOAN LOSSES 14,7003,550 36,5508,500NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES(4,000) 8,2569,868 38,280NONINTEREST INCOMESERVICE CHARGES ON DEPOSIT ACCOUNTS1,1681,1764,7574,730OTHER FEES AND CHARGES 4704641,9441,872MORTGAGE BANKING ACTIVITIES 95 64340339INDIRECT LENDING ACTIVITIES1,0401,3985,2275,449SBA LENDING ACTIVITIES864921,2502,444SECURITIES GAINS, NET-21,3062BANK OWNED LIFE INSURANCE3742961,2781,166OTHER OPERATING INCOME 5104131,5341,909TOTAL NONINTEREST INCOME 3,7434,305 17,636 17,911NONINTEREST EXPENSESALARIES AND EMPLOYEE BENEFITS6,0406,511 25,827 25,815FURNITURE AND EQUIPMENT6727822,9492,942NET OCCUPANCY1,0711,1144,1374,105COMMUNICATION EXPENSES 4014331,6541,729PROFESSIONAL AND OTHER SERVICES1,0318593,8233,559ADVERTISING AND PROMOTION236226645927STATIONERY, PRINTING AND SUPPLIES137185647758INSURANCE EXPENSES79 69344296OTHER OPERATING EXPENSES 2,7462,2718,8137,071TOTAL NONINTEREST EXPENSE 12,413 12,450 48,839 47,202(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE (12,670) 111(21,335) 8,989INCOME TAX (BENEFIT) EXPENSE(5,101)(210)(9,099) 2,355NET (LOSS) INCOME (7,569)$321 $(12,236)$6,634(LOSS) EARNINGS PER SHARE: BASIC (LOSS) EARNINGS PERSHARE $(0.80) $0.03 $(1.30) $0.71 DILUTED (LOSS) EARNINGSPER SHARE $(0.80) $0.03 $(1.30) $0.71WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC9,535,6249,341,0219,437,0879,330,932WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-FULLYDILUTED9,538,5889,343,0099,473,5949,329,302FIDELITY SOUTHERN CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) (DOLLARS IN THOUSANDS) DECEMBER 31, ASSETS 20082007 CASH AND DUE FROM BANKS $68,841 $23,442 FEDERAL FUNDS SOLD 23,184 6,605 CASH AND CASH EQUIVALENTS92,02530,047 INVESTMENTS AVAILABLE-FOR-SALE128,749 103,149 INVESTMENTS HELD-TO-MATURITY 24,79329,064 INVESTMENT IN FHLB STOCK5,282 5,665 LOANS HELD-FOR-SALE55,84063,655 LOANS 1,388,022 1,388,358 ALLOWANCE FOR LOAN LOSSES (33,691)(16,557) LOANS, NET1,354,331 1,371,801 PREMISES AND EQUIPMENT, NET19,31118,821 OTHER REAL ESTATE15,063 7,307 ACCRUED INTEREST RECEIVABLE 8,092 9,367 BANK OWNED LIFE INSURANCE27,86826,699 OTHER ASSETS 31,75920,909 TOTAL ASSETS $1,763,113$1,686,484 LIABILITIES DEPOSITS: NONINTEREST-BEARING DEMAND $138,634$131,597 INTEREST-BEARING DEMAND/MONEY MARKET 208,723 314,067 SAVINGS 199,465 216,442 TIME DEPOSITS, $100,000 AND OVER317,540 285,497 OTHER TIME DEPOSITS 579,320 458,022TOTAL DEPOSIT LIABILITIES1,443,682 1,405,625 FEDERAL FUNDS PURCHASED - 5,000 OTHER SHORT-TERM BORROWINGS55,01770,954 SUBORDINATED DEBT67,52767,527 OTHER LONG-TERM DEBT 47,50025,000 ACCRUED INTEREST PAYABLE7,038 6,760 OTHER LIABILITIES 5,665 5,655 TOTAL LIABILITIES 1,626,429 1,586,521 SHAREHOLDERS' EQUITY PREFERRED STOCK48,200 - DISCOUNT ON PREFERRED STOCK(4,413)- WARRANTS4,413 - COMMON STOCK 47,32846,164 ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS) 1,333(804) RETAINED EARNINGS39,82354,603 TOTAL SHAREHOLDERS' EQUITY136,68499,963 TOTAL LIABILITIES ANDSHAREHOLDERS' EQUITY$1,763,113$1,686,484 BOOK VALUE PER SHARE $14.22$10.67 SHARES OF COMMON STOCK OUTSTANDING9,610,169 9,368,904FIDELITY SOUTHERN CORPORATIONANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (UNAUDITED)(DOLLARS IN THOUSANDS)QUARTERS ENDED YEARS ENDED DECEMBER 31,DECEMBER 31,2008 2007 2008 2007BALANCE AT BEGINNING OF PERIOD $26,023$15,155$16,557$14,213CHARGE-OFFS:COMMERCIAL, FINANCIAL AND AGRICULTURAL-200 99200SBA220-REAL ESTATE-CONSTRUCTION 3,7205229,0831,934REAL ESTATE-MORTGAGE71 20332 82CONSUMER INSTALLMENT 3,4921,745 10,8415,301TOTAL CHARGE-OFFS7,2832,487 20,5757,517RECOVERIES:COMMERCIAL, FINANCIAL AND AGRICULTURAL-25257SBA 24-215-REAL ESTATE-CONSTRUCTION13150 43190REAL ESTATE-MORTGAGE 1- 14 78CONSUMER INSTALLMENT 213187882836TOTAL RECOVERIES 2513391,1591,361NET CHARGE-OFFS7,0322,148 19,4166,156PROVISION FOR LOAN LOSSES 14,7003,550 36,5508,500BALANCE AT END OF PERIOD $33,691$16,557$33,691$16,557RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE LOANS OUTSTANDING, NET1.990.611.360.45ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS2.431.192.431.19 NONPERFORMING ASSETS (UNAUDITED)(DOLLARS IN THOUSANDS)DECEMBER 31, 20082007NONACCRUAL LOANS$98,151 $14,371REPOSSESSIONS 2,016 2,512OTHER REAL ESTATE15,063 7,308TOTAL NONPERFORMING ASSETS $115,230 $24,191LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING$- $23RATIO OF LOANS PAST DUE 90 DAYS OR MORE AND STILL ACCRUING TO TOTAL LOANS RATIO OF NONPERFORMING ASSETS TO TOTAL LOANS OREO, AND REPOSSESSIONS 7.89 1.65FIDELITY SOUTHERN CORPORATIONLOANS, BY CATEGORY (UNAUDITED)(DOLLARS IN THOUSANDS) DECEMBER 31, PERCENT 20082007CHANGECOMMERCIAL, FINANCIAL AND AGRICULTURAL$137,988$107,325 28.57 TAX-EXEMPT COMMERCIAL7,508 9,235(18.70)REAL ESTATE MORTGAGE - COMMERCIAL202,516 189,8816.65 TOTAL COMMERCIAL 348,012 306,441 13.57 REAL ESTATE-CONSTRUCTION 245,153 282,056(13.08)REAL ESTATE-MORTGAGE 115,52793,673 23.33 CONSUMER INSTALLMENT 679,330 706,188 (3.80) LOANS 1,388,022 1,388,358 (0.02)LOANS HELD-FOR-SALE: ORIGINATED RESIDENTIAL MORTGAGE LOANS 967 1,412(31.52) SBA LOANS39,87324,243 64.47 INDIRECT AUTO LOANS15,00038,000(60.53)TOTAL LOANS HELD-FOR-SALE 55,84063,655(12.28) TOTAL LOANS$1,443,862$1,452,013FIDELITY SOUTHERN CORPORATION AVERAGE BALANCE, INTEREST AND YIELDS (UNAUDITED)YEARS ENDED December 31, 2008AverageIncome/ Yield/(dollars in thousands)BalanceExpenseRateAssetsInterest-earning assets :Loans, net of unearned incomeTaxable $1,472,573 $96,009 6.52Tax-exempt (1) 8,493 581 6.97 Total loans 1,481,06696,590 6.52Investment securitiesTaxable139,391 6,867 4.93Tax-exempt (2)13,975 833 5.96 Total investment securities 153,366 7,700 5.05Interest-bearing deposits2,63036 1.38Federal funds sold11,960 179 1.49 Total interest-earning assets 1,649,022 104,505 6.34Cash and due from banks 22,239Allowance for loan losses(22,610)Premises and equipment, net 19,537Other real estate owned 12,624Other assets57,682 Total assets $1,738,494Liabilities and shareholders' equityInterest-bearing liabilities :Demand deposits $271,429$6,226 2.29Savings deposits 209,301 6,043 2.89Time deposits836,04936,453 4.36 Total interest-bearing deposits 1,316,77948,722 3.70Federal funds purchased9,001 265 2.94Securities sold under agreements to repurchase 34,924 921 2.64Other short-term borrowings 25,393 879 3.46Subordinated debt 67,527 5,284 7.83Long-term debt43,948 1,565 3.56 Total interest-bearing liabilities1,497,57257,636 3.85Noninterest-bearing :Demand deposits128,706Other liabilities 13,755Shareholders' equity98,461Total liabilities and shareholders' equity $1,738,494Net interest income / spread $46,869 2.49Net interest margin2.84 YEARS ENDEDDecember 31, 2007Average Income/ Yield/(dollars in thousands)Balance ExpenseRateAssetsInterest-earning assets :Loans, net of unearned incomeTaxable $1,390,624 $105,222 7.57Tax-exempt (1)12,8371,052 8.20 Total loans 1,403,461106,274 7.57Investment securitiesTaxable137,3706,964 5.07Tax-exempt (2) 6,782390 5.75 Total investment securities 144,1527,354 5.12Interest-bearing deposits1,134 58 5.08Federal funds sold 4,855243 5.01 Total interest-earning assets 1,553,602113,929 7.34Cash and due from banks 23,383Allowance for loan losses(14,644)Premises and equipment, net 18,875Other real estate owned2,918Other assets51,386 Total assets $1,635,520Liabilities and shareholders' equityInterest-bearing liabilities :Demand deposits $293,336$10,243 3.49Savings deposits 203,5298,881 4.36Time deposits749,803 38,778 5.17 Total interest-bearing deposits 1,246,668 57,902 4.64Federal funds purchased 10,310548 5.31Securities sold under agreements torepurchase21,674657 3.03Other short-term borrowings 24,5161,111 4.54Subordinated debt 54,4784,945 9.08Long-term debt35,8881,519 4.23 Total interest-bearing liabilities1,393,534 66,682 4.79Noninterest-bearing :Demand deposits130,835Other liabilities 14,092Shareholders' equity97,059Total liabilities and shareholders' equity $1,635,520Net interest income / spread$47,247 2.55Net interest margin 3.04(1)Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $192,000 and $350,000 respectively.(2)Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $259,000 and $147,000, respectively.FIDELITY SOUTHERN CORPORATION AVERAGE BALANCE, INTEREST AND YIELDS (UNAUDITED) QUARTER ENDED December 31, 2008AverageIncome/ Yield/(dollars in thousands)BalanceExpenseRateAssetsInterest-earning assets :Loans, net of unearned incomeTaxable $1,452,376 $22,383 6.13Tax-exempt (1) 7,631 128 6.73 Total loans 1,460,00722,511 6.13Investment securitiesTaxable142,913 1,679 4.70Tax-exempt (2)15,209 227 5.97 Total investment securities 158,122 1,906 4.85Interest-bearing deposits5,003 5 0.41Federal funds sold16,95521 0.49 Total interest-earning assets 1,640,08724,443 5.93Cash and due from banks 22,239Allowance for loan losses(27,105)Premises and equipment, net 19,752Other real estate owned 16,933Other assets57,971 Total assets $1,729,877Liabilities and shareholders' equityInterest-bearing liabilities :Demand deposits $219,288$945 1.71Savings deposits 199,964 1,338 2.66Time deposits905,505 9,235 4.06 Total interest-bearing deposits 1,324,75711,518 3.46Federal funds purchased250 1 2.16Securities sold under agreements to repurchase 43,716 296 2.69Other short-term borrowings 10,09888 3.46Subordinated debt 67,527 1,307 7.70Long-term debt47,500 419 3.52 Total interest-bearing liabilities1,493,84813,629 3.63Noninterest-bearing :Demand deposits127,220Other liabilities 10,452Shareholders' equity98,357Total liabilities and shareholders' equity $1,729,877Net interest income / spread $10,814 2.30Net interest margin2.62QUARTER ENDEDDecember 31, 2007AverageIncome/ Yield/(dollars in thousands)BalanceExpenseRateAssetsInterest-earning assets :Loans, net of unearned incomeTaxable $1,428,415 $26,731 7.43Tax-exempt (1) 9,694 188 7.70 Total loans 1,438,10926,919 7.43Investment securitiesTaxable130,472 1,653 5.07Tax-exempt (2)10,883 161 5.93 Total investment securities 141,355 1,814 5.17Interest-bearing deposits1,20614 4.57Federal funds sold 4,10646 4.43 Total interest-earning assets 1,584,77628,793 7.21Cash and due from banks 23,722Allowance for loan losses(16,193)Premises and equipment, net 18,854Other real estate owned6,602Other assets54,536 Total assets $1,672,297Liabilities and shareholders' equityInterest-bearing liabilities :Demand deposits $308,624$2,677 3.44Savings deposits 221,065 2,345 4.21Time deposits725,171 9,319 5.10 Total interest-bearing deposits 1,254,86014,341 4.53Federal funds purchased 15,402 191 4.91Securities sold under agreements torepurchase25,418 185 2.89Other short-term borrowings 32,011 363 4.50Subordinated debt 67,527 1,453 8.53Long-term debt32,587 341 4.15 Total interest-bearing liabilities1,427,80516,874 4.69Noninterest-bearing :Demand deposits131,190Other liabilities 13,915Shareholders' equity99,387Total liabilities and shareholders' equity $1,672,297Net interest income / spread $11,919 2.52Net interest margin2.99(1)Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $43,000 and $64,000 respectively.(2)Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $71,000 and $61,000.SOURCEFidelity Southern CorporationMartha Fleming or Steve Brolly of Fidelity Southern Corporation,1-404-240-1504. By John Whitesides WASHINGTON, Jan 22 (Reuters) - President Barack Obama on Thursday appointed foreign policy veteran Richard Holbrooke as a special envoy to Afghanistan and Pakistan.

Holbrooke, a former ambassador to the United Nations who negotiated the 1995 peace agreement that ended the Bosnian war, faces an array of challenges in dealing with the war in Afghanistan and its tense and fragile border with Pakistan Here are some of the problems and possibilities for U.S. action in the region: - President Barack Obama has ordered a review of the U.S strategy in Afghanistan. He promised during the campaign to bolster troop levels there to battle growing violence and a resurgent Taliban and al Qaeda, but new Secretary of State Hillary Clinton said at her confirmation hearing that a broader strategy was needed in Afghanistan that included diplomacy, defense and development. In addition to more troops in Afghanistan, the United States has promised more nonmilitary aid to Pakistan devoted in part to developing tribal areas where al Qaeda militants have flourished. Osama bin Laden and other top al Qaeda militants are believed to be hiding in the mountainous border region of Pakistan near Afghanistan - Clinton has suggested a U.S. envoy would need to shuttle between Pakistan and Afghanistan to help guide the efforts in the border region between the two countries, and has suggested she will be looking for more regional support. The United States could look to India, central Asian states and even China or Russia for help.