7. Fidelity Southern Corp.
Shares of Fidelity Southern Corp. (LION) of Atlanta closed at $9.10 Monday, returning 59% year-to-date, following a 12% decline during 2011.
The shares trade just below their reported tangible book value of $9.52 as of Sept. 30, and for eight times the consensus 2013 EPS estimate of $1.09.
Fidelity Southern had $2.4 billion in total assets as of Sept. 30. The company reported third-quarter net income available to common shareholders of $7.3 million, or 45 cents a share, increasing from $5.6 million, or 45 cents a share, in the second quarter, and $1.3 million, or eight cents a share, during the third quarter of 2011. The main factor in the earnings improvement was an increase in mortgage banking revenue to $14.8 million in the third quarter, from $10.8 million the previous quarter, and $5.2 million a year earlier, which was partially offset by an increase in noninterest expenses.Third-quarter net interest income was $20.7 million, increasing from $19.9 million in the second quarter, and $17.6 million a year earlier. The third-quarter net interest margin was 3.74%, narrowing from 3.86% the previous quarter, but expanding from 3.55% a year earlier. Excluding loans acquired from failed institutions and covered by Federal Deposit Insurance Corp. loss-sharing agreements and the accretion of loan discounts, the net interest margin was 3.56% in the third quarter. The company reported a third-quarter ROA of 1.33% and a return on average equity of 17.93%. Marinac rates Fidelity Southern "Outperform," with a price target of $11.75, saying on Oct. 19 that "the company excelled in Fee Income as Mortgage, Indirect, and
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