Fidelity Southern 8-K Fidelity Southern Corporation Reports Modest Profit and Increased Reserves

Exhibit 99.1

Released on 7/17/08 at 3:50 p.m. by PR Newswire

FOR IMMEDIATE RELEASE

Contacts: Martha Fleming, Rod Marlow
Fidelity Southern Corporation (404) 240-1504

FIDELITY SOUTHERN CORPORATION
REPORTS MODEST PROFIT AND INCREASED RESERVES

     ATLANTA, GA (July 17, 2008) — Fidelity Southern Corporation (“Fidelity” or “the Company”) (NASDAQ:LION), holding Company for Fidelity Bank, reported net income of $5,000 for the second quarter of 2008 compared to $2,070,000 for the same quarter of 2007. Basic and diluted income per share for the second quarter of 2008 were less than $.01 compared to earnings of $.22 for the same period in 2007. Net income for the first six months of 2008 was $1,115,000 compared to $4,634,000 for the same period in 2007. Basic and diluted earnings per share for the first six months of 2008 were $.12 compared to $.50 for the same period in 2007.

     Chairman James B. Miller, Jr. said, “We have the capacity to manage through the cycle. Though we continue to focus on core earnings and building the franchise, these are obviously uncertain and troubled times. Even with extraordinary effort, charge-offs and reserves will increase well into next year.”

Significant developments in the quarter and the first half included:

Ø	Net interest income grew 3.02% over the first quarter of 2007 and 3.6% over the first half of 2007.
Ø	Margin was up slightly in the second quarter to 2.95% from 2.94% in the first quarter of 2008. Cost of funds was down as a result of conservative deposit pricing as loan pricing firmed.
Ø	Personnel expenses were down 7% in the second quarter when compared to the first quarter of 2008.
Ø	Total assets grew only 2.5% in the quarter to $1.779 billion.
Ø	Demand deposit accounts increased 14% this year through June.
Ø	An updated website was introduced during the second quarter to meet growing demand.
Ø	Remote deposit volume grew to 33.2% of all deposits.
Ø	Brokerage activities were moved to Reliance Trust into a managed account program which will provide both a fixed and variable revenue stream.
Ø	Reserves substantially increased to 1.48% of loans from 1.05% at June 30, 2007, and 1.34% at March 31, 2008. The increase was $2.4 million over the second quarter of 2008 and $7.2

Fidelity Southern Corporation
Second Quarter Earnings Release
July 17, 2008

million greater than reserves at June 30, 2007. Provision for loan losses was $4.8 million and $9.4 million for the second quarter and first six months of 2008, respectively, compared to $1.7 million and $2.2 million for the same periods in 2007.

Ø Net charge-offs increased to $2.4 million in the second quarter from $2.1 million in the first quarter of 2008. Indirect automobile lending accounted for 81.6% of net charge-offs during the second quarter compared to 75.7% in the first quarter.

Ø The ratio of net charge-offs to average loans outstanding was .63% for the first six months of 2008 compared to .33% for the same period in 2007.

Ø Nonperforming loans, repossessions and other real estate owned totaled $57.7 million at the end of the second quarter, an increase of $20.7 million in the quarter.

Ø During the quarter $2.5 million of OREO assets were sold but $5.6 million was added to OREO net of $501,000 in charge-downs. OREO consists of 50 houses, representing 73.4% of total balances, and 79 lots and includes no commercial property.

Ø New residential construction loan advances made during the quarter totaled $15.0 million, while the payoffs of construction loans totaled $29.6 million. There are 832 houses and 2,024 lots financed at June 30, 2008, compared to 1,172 houses and 2,372 lots at June 30, 2007.

Ø Nonperforming residential construction loans at June 30, 2008, included 140 houses totaling $25.7 million and 166 lots totaling $13.8 million. During the quarter $2.0 million of nonperforming loans were paid off by our customers while $25.7 million of loans were moved to nonperforming.

Ø Dividend was cut to $.01 for the third quarter from $.09 in the previous quarter.

     The decrease in net income for both the second quarter and six month periods compared to the prior year was primarily the result of a higher provision for loan losses due to higher charge-offs and adverse credit trends in the real estate construction and to some extent consumer loan portfolios requiring an increase in the allowance for loan losses.

     Net interest income for the second quarter increased 3.0% over the first quarter of 2008 and increased $369,000 or 3.2% over the same period in 2007. Net interest income for the first six months of 2008 increased $825,000 or 3.6% when compared to the same period in 2007. The increases were primarily a result of higher average interest-earning assets. The net interest margin stabilized in the second quarter. It increased slightly to 2.95% in the second quarter compared to 2.94% in the first quarter of 2008. The net interest margin decreased 13 basis points in the second quarter of 2008 when compared to the same period in 2007. The net interest margin decreased 10 basis points to 2.95% for the fist half of 2008 compared to the same period in 2007. The decline in net interest margin in the second quarter and first six months of 2008 was due primarily to reductions in the prime rate and an increase in nonperforming loans.

     Total interest income for the second quarter and first six months of 2008 decreased $2.2 million and $2.1 million, or 7.6% and 3.7%, respectively, compared to the same periods in 2007. The decreases in interest income for the second quarter and first six months of 2008 were the result of a decrease of 104 basis points and 74 basis points in the yield on average interest-earning assets, respectively, offset in part by the growth in average interest-earning assets, which increased $120.1 million and $104.3 or 7.8% and 6.8%, respectively.

2

Fidelity Southern Corporation
Second Quarter Earnings Release
July 17, 2008

     Interest expense for the second quarter and first six months of 2008 decreased $2.5 million and $2.9 million, or 15.2% and 8.9%, respectively, compared to the same periods in 2007. The decreases in interest expense for the second quarter and first six months of 2008 were attributable to an increase in average interest-bearing liabilities of $124.1 million and $113.0 million, respectively, more than offset by a 106 basis point and 77 basis point decrease in the cost of interest-bearing liabilities.

     The provision for loan losses for the second quarter and first six months of 2008 was $4.8 million and $9.4 million, respectively, compared to $1.7 million and $2.2 million for the same periods in 2007, due to increased charge-offs and adverse credit trends in the construction loan portfolio and to some extent in the consumer loan portfolio. Net charge-offs increased $1.1 million and $2.3 million to $2.4 million and $4.5 million for the second quarter and first six months of 2008 when compared to the same periods in 2007. The allowance for loan losses as a percentage of loans increased from 1.19% at December 31, 2007, to 1.48% at June 30, 2008, compared to 1.05% at June 30, 2007. Nonperforming assets increased to $57.7 million at the end of the second quarter of 2008 compared to $12.4 million at the end of the second quarter of 2007 and $24.2 million at the end of 2007. Management believes it has identified and placed on nonaccrual, charged down, and charged off these nonperforming assets timely and appropriately.

     Noninterest income increased $19,000 and $1.2 million or .4% and 14.0% to $4.4 million and $10.0 million, respectively, in the second quarter and first six months of 2008, compared to the same periods in 2007. The increase in noninterest income for the second quarter of 2008 compared to 2007 was a result of higher indirect lending revenues which increased $204,000 or 15.6% to $1.5 million because of an increase in the gain on sales and increases in net servicing and ancillary fees generated by the serviced portfolio. The increase in noninterest income of $1.2 million for the first six months of 2008 was due to the $1.3 million securities gain in the first quarter of 2008 from the mandatory redemption of 29,267 shares of Visa, Inc. common stock as a result of its initial public offering in March 2008. Indirect lending revenues also increased $417,000, or 15.6%, to $3.1 million during the first six months of 2008 when compared to the same period last year due to an increase in the gain on sales of indirect loans and increases in net servicing and ancillary fees from indirect loans serviced.

     Noninterest expense for the second quarter and first six months of 2008 increased $720,000 and $569,000, or 6.3% and 2.5%, to $12.1 million and $23.5 million, respectively compared to the same periods in 2007. The increases for the second quarter and first six months of 2008 are a result of higher salaries and benefits expense, which increased $96,000 and $533,000 or 1.5% and 4.2% to $6.4 million and $13.2 million, respectively, compared to the same periods in 2007, primarily due to the addition of seasoned loan production and branch operations staff, including SBA, indirect automobile, and commercial lenders, and staff for the three branches opened in 2007. In addition, OREO write-downs increased to $501,000 in the second quarter of 2008 compared to none for the same period in 2007. The increase in noninterest expense for the first six months of 2008 was partially offset by the reversal of the fourth quarter 2007 Visa litigation expense accrual of $567,000 as the result of the Visa funding of a litigation escrow account through its initial public offering in March 2008.

3

Fidelity Southern Corporation
Second Quarter Earnings Release
July 17, 2008

     Fidelity Southern Corporation, through its operating subsidiaries Fidelity Bank and LionMark Insurance Company, provides banking services and credit related insurance products through 23 branches in Atlanta, Georgia, a branch in Jacksonville, Florida, and an insurance office in Atlanta, Georgia. SBA loans are provided through employees located throughout the Southeast. For additional information about Fidelity’s products and services, please visit the website atwww.FidelitySouthern.com.

     This news release contains forward-looking statements, as defined by Federal Securities Laws, including statements about financial outlook and business environment. These statements are provided to assist in the understanding of future financial performance and such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. Any such statements are based on current expectations and involve a number of risks and uncertainties. For a discussion of some factors that may cause such forward-looking statements to differ materially from actual results, please refer to the section entitled “Forward Looking Statements” on page 3 of Fidelity Southern Corporation’s 2007 Annual Report filed on Form 10-K with the Securities and Exchange Commission.

4

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	QUARTER-TO-DATE					YEAR-TO-DATE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)	JUNE 30,					JUNE 30,
	2008			2007		2008			2007
INTEREST INCOME
LOANS, INCLUDING FEES	$	24,133		$	26,413	$	49,848		$	51,866
INVESTMENT SECURITIES		1,978			1,836		3,694			3,683
FEDERAL FUNDS SOLD AND BANK DEPOSITS		53			68		95			169
TOTAL INTEREST INCOME		26,164			28,317		53,637			55,718
INTEREST EXPENSE
DEPOSITS		11,895			14,606		25,214			28,745
SHORT-TERM BORROWINGS		483			509		1,230			1,020
SUBORDINATED DEBT		1,278			1,110		2,686			2,215
OTHER LONG-TERM DEBT		440			393		725			781
TOTAL INTEREST EXPENSE		14,096			16,618		29,855			32,761
NET INTEREST INCOME		12,068			11,699		23,782			22,957
PROVISION FOR LOAN LOSSES		4,750			1,650		9,350			2,150
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		7,318			10,049		14,432			20,807
NONINTEREST INCOME
SERVICE CHARGES ON DEPOSIT ACCOUNTS		1,200			1,206		2,363			2,324
OTHER FEES AND CHARGES		511			474		975			930
MORTGAGE BANKING ACTIVITIES		125			79		195			200
BROKERAGE ACTIVITIES		111			167		272			404
INDIRECT LENDING ACTIVITIES		1,510			1,306		3,096			2,679
SBA LENDING ACTIVITIES		363			570		777			1,214
SECURITIES GAINS, NET		—			—		1,264			—
BANK OWNED LIFE INSURANCE		298			284		601			571
OTHER OPERATING INCOME		247			260		499			489
TOTAL NONINTEREST INCOME		4,365			4,346		10,042			8,811
NONINTEREST EXPENSE
SALARIES AND EMPLOYEE BENEFITS		6,368			6,272		13,224			12,691
FURNITURE AND EQUIPMENT		743			721		1,520			1,405
NET OCCUPANCY		1,100			956		2,139			1,927
COMMUNICATION EXPENSES		430			467		818			866
PROFESSIONAL AND OTHER SERVICES		957			915		1,864			1,831
ADVERTISING AND PROMOTION		119			185		274			429
STATIONERY, PRINTING AND SUPPLIES		166			206		345			380
INSURANCE EXPENSES		90			80		192			150
OTHER OPERATING EXPENSES		2,126			1,577		3,109			3,237
TOTAL NONINTEREST EXPENSE		12,099			11,379		23,485			22,916
INCOME BEFORE INCOME TAX EXPENSE		(416	)		3,016		989			6,702
INCOME TAX EXPENSE		(421	)		946		(126	)		2,068
NET INCOME		5		$	2,070	$	1,115		$	4,634
EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE	$	0.00		$	0.22	$	0.12		$	0.50
DILUTED EARNINGS PER SHARE	$	0.00		$	0.22	$	0.12		$	0.50
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC		9,393,797			9,322,956		9,384,856			9,310,016
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-FULLY DILUTED		9,393,797			9,325,821		9,384,856			9,316,053

5

FIDELITY SOUTHERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(DOLLARS IN THOUSANDS)	JUNE 30,			DECEMBER 31,			JUNE 30,
ASSETS	2008			2007			2007
CASH AND DUE FROM BANKS	$	29,225		$	23,442		$	21,955
FEDERAL FUNDS SOLD		11,804			6,605			1,501
CASH AND CASH EQUIVALENTS		41,029			30,047			23,456
INVESTMENTS AVAILABLE-FOR-SALE		123,100			103,149			106,183
INVESTMENTS HELD-TO-MATURITY		26,767			29,064			30,955
INVESTMENT IN FHLB STOCK		6,181			5,665			5,215
LOANS HELD-FOR-SALE		67,548			63,655			59,932
LOANS		1,444,577			1,388,358			1,346,136
ALLOWANCE FOR LOAN LOSSES		(21,421	)		(16,557	)		(14,187	)
LOANS, NET		1,423,156			1,371,801			1,331,949
PREMISES AND EQUIPMENT, NET		19,595			18,821			18,792
OTHER REAL ESTATE		11,263			7,307			2,884
ACCRUED INTEREST RECEIVABLE		8,667			9,367			9,466
BANK OWNED LIFE INSURANCE		27,233			26,699			26,186
OTHER ASSETS		24,629			20,909			18,728
TOTAL ASSETS	$	1,779,168		$	1,686,484		$	1,633,746
LIABILITIES
DEPOSITS:
NONINTEREST-BEARING DEMAND	$	134,823		$	131,597		$	129,059
INTEREST-BEARING DEMAND/ MONEY MARKET		281,666			314,067			297,424
SAVINGS		215,530			216,442			202,446
TIME DEPOSITS, $100,000 AND OVER		316,466			285,497			302,110
OTHER TIME DEPOSITS		503,088			458,022			460,262
TOTAL DEPOSIT LIABILITIES		1,451,573			1,405,625			1,391,301
FEDERAL FUNDS PURCHASED		21,000			5,000			—
OTHER SHORT-TERM BORROWINGS		80,988			70,954			49,818
SUBORDINATED DEBT		67,527			67,527			46,908
OTHER LONG-TERM DEBT		47,500			25,000			37,000
ACCRUED INTEREST PAYABLE		5,947			6,760			7,119
OTHER LIABILITIES		6,456			5,655			4,770
TOTAL LIABILITIES		1,680,991			1,586,521			1,536,916
SHAREHOLDERS’ EQUITY
COMMON STOCK		46,512			46,164			45,594
ACCUMULATED OTHER COMPREHENSIVE LOSS		(1,770	)		(804	)		(3,049	)
RETAINED EARNINGS		53,435			54,603			54,285
TOTAL SHAREHOLDERS’ EQUITY		98,177			99,963			96,830
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,779,168		$	1,686,484		$	1,633,746
BOOK VALUE PER SHARE	$	10.44		$	10.67		$	10.38
SHARES OF COMMON STOCK OUTSTANDING		9,408,138			9,368,904			9,332,187

6

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

(DOLLARS IN THOUSANDS)	YEAR-TO-DATE						YEAR ENDED
	JUNE 30,						DECEMBER 31,
	2008			2007			2007
BALANCE AT BEGINNING OF PERIOD	$	16,557		$	14,213		$	14,213
CHARGE-OFFS:
COMMERCIAL, FINANCIAL AND AGRICULTURAL		14			—			200
SBA		—			—			—
REAL ESTATE-CONSTRUCTION		850			811			1,934
REAL ESTATE-MORTGAGE		124			49			82
CONSUMER INSTALLMENT		4,013			2,021			5,301
TOTAL CHARGE-OFFS		5,001			2,881			7,517
RECOVERIES:
COMMERCIAL, FINANCIAL AND AGRICULTURAL		1			161			257
SBA		56			—			—
REAL ESTATE-CONSTRUCTION		5			40			190
REAL ESTATE-MORTGAGE		13			71			78
CONSUMER INSTALLMENT		440			433			836
TOTAL RECOVERIES		515			705			1,361
NET CHARGE-OFFS		4,486			2,176			6,156
PROVISION FOR LOAN LOSSES		9,350			2,150			8,500
BALANCE AT END OF PERIOD	$	21,421		$	14,187		$	16,557
RATIO OF NET CHARGE-OFFS DURING PERIOD TO AVERAGE LOANS OUTSTANDING, NET		0.63	%		0.33	%		0.45	%
ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF LOANS		1.48	%		1.05	%		1.19	%

NONPERFORMING ASSETS
(UNAUDITED)

(DOLLARS IN THOUSANDS)	JUNE 30,
	2008			2007
NONACCRUAL LOANS	$	45,045		$	8,270
REPOSSESSIONS		1,363			1,240
OTHER REAL ESTATE		11,263			2,884
TOTAL NONPERFORMING ASSETS	$	57,671		$	12,394
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, OREO AND REPOSSESSIONS		3.78	%		0.88	%

7

FIDELITY SOUTHERN CORPORATION
LOANS, BY CATEGORY
(UNAUDITED)

(DOLLARS IN THOUSANDS)							PERCENT CHANGE
	JUNE 30,		DECEMBER 31,		JUNE 30,		June 30, 2008/			June 30, 2008/
	2008		2007		2007		Dec. 31, 2007			June 30, 2007
COMMERCIAL, FINANCIAL AND AGRICULTURAL	$	126,711	$	107,325	$	100,010		18.06	%		26.70	%
TAX-EXEMPT COMMERCIAL		8,829		9,235		12,744		(4.40	)%		(30.72	)%
REAL ESTATE MORTGAGE - COMMERCIAL		192,605		189,881		176,216		1.43	%		9.30	%
TOTAL COMMERCIAL		328,145		306,441		288,970		7.08	%		13.56	%
REAL ESTATE-CONSTRUCTION		289,844		282,056		291,221		2.76	%		(0.47	)%
REAL ESTATE-MORTGAGE		102,710		93,673		93,156		9.65	%		10.26	%
CONSUMER INSTALLMENT		723,878		706,188		672,789		2.50	%		7.59	%
LOANS		1,444,577		1,388,358		1,346,136		4.05	%		7.31	%
LOANS HELD-FOR-SALE:
ORIGINATED RESIDENTIAL MORTGAGE LOANS		1,442		1,412		699		2.12	%		106.29	%
SBA LOANS		35,106		24,243		15,233		44.81	%		130.46	%
INDIRECT AUTO LOANS		31,000		38,000		44,000		(18.42	)%		(29.55	)%
TOTAL LOANS HELD-FOR-SALE		67,548		63,655		59,932		6.12	%		12.71	%
TOTAL LOANS	$	1,512,125	$	1,452,013	$	1,406,068

8

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

	YEAR-TO-DATE
	June 30, 2008								June 30, 2007
	Average			Income/		Yield/			Average			Income/		Yield/
(dollars in thousands)	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets :
Loans, net of unearned income
Taxable	$	1,472,063		$	49,639		6.78	%	$	1,365,707		$	51,435		7.59	%
Tax-exempt(1)		8,998			315		7.13	%		15,396			642		8.59	%
Total loans		1,481,061			49,954		6.78	%		1,381,103			52,077		7.60	%
Investment securities
Taxable		137,103			3,433		5.01	%		142,441			3,595		5.14	%
Tax-exempt(2)		12,720			379		5.96	%		4,473			126		5.64	%
Total investment securities		149,823			3,812		5.12	%		146,914			3,721		5.11	%
Interest-bearing deposits		1,655			21		2.53	%		1,174			31		5.34	%
Federal funds sold		6,336			74		2.35	%		5,335			138		5.22	%
Total interest-earning assets		1,638,875			53,861		6.61	%		1,534,526			55,967		7.35	%
Cash and due from banks		22,495								23,519
Allowance for loan losses		(19,204	)							(13,893	)
Premises and equipment, net		19,230								18,829
Other real estate owned		10,378								758
Other assets		55,964								49,230
Total assets	$	1,727,738							$	1,612,969
Liabilities and shareholders’ equity
Interest-bearing liabilities :
Demand deposits	$	298,504		$	3,783		2.55	%	$	280,157		$	4,845		3.49	%
Savings deposits		216,057			3,276		3.05	%		191,898			4,215		4.43	%
Time deposits		781,720			18,155		4.67	%		764,672			19,685		5.19	%
Total interest-bearing deposits		1,296,281			25,214		3.91	%		1,236,727			28,745		4.69	%
Federal funds purchased		14,832			227		3.08	%		9,569			265		5.59	%
Securities sold under agreements to repurchase		29,913			386		2.60	%		18,802			261		2.80	%
Other short-term borrowings		35,039			617		3.54	%		21,923			494		4.54	%
Subordinated debt		67,527			2,686		8.00	%		46,908			2,215		9.52	%
Long-term debt		40,357			725		3.61	%		37,000			781		4.26	%
Total interest-bearing liabilities		1,483,949			29,855		4.05	%		1,370,929			32,761		4.82	%
Noninterest-bearing :
Demand deposits		129,151								131,722
Other liabilities		15,052								14,505
Shareholders’ equity		99,586								95,813
Total liabilities and shareholders’ equity	$	1,727,738							$	1,612,969
Net interest income / spread				$	24,006		2.56	%				$	23,206		2.53	%
Net interest margin							2.95	%							3.05	%

(1) Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $106,000 and $211,000 respectively.

(2) Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $117,000 and $88,000, respectively.

9

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

	QUARTER-TO-DATE
	June 30, 2008								June 30, 2007
	Average			Income/		Yield/			Average			Income/		Yield/
(dollars in thousands)	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets :
Loans, net of unearned income
Taxable	$	1,481,296		$	24,036		6.53	%	$	1,374,172		$	26,203		7.65	%
Tax-exempt (1)		8,903			146		6.72	%		14,942			312		8.56	%
Total loans		1,490,199			24,182		6.53	%		1,389,114			26,515		7.66	%
Investment securities
Taxable		145,540			1,828		5.03	%		140,455			1,772		5.14	%
Tax-exempt (2)		14,678			219		5.95	%		6,449			91		5.67	%
Total investment securities		160,218			2,047		5.14	%		146,904			1,863		5.09	%
Interest-bearing deposits		1,810			9		1.96	%		1,080			14		5.26	%
Federal funds sold		9,063			43		1.93	%		4,134			54		5.20	%
Total interest-earning assets		1,661,290			26,281		6.36	%		1,541,232			28,446		7.40	%
Cash and due from banks		23,542								23,488
Allowance for loan losses		(20,294	)							(13,929	)
Premises and equipment, net		19,475								18,758
Other real estate owned		12,884								1,501
Other assets		56,294								50,085
Total assets	$	1,753,191							$	1,621,135
Liabilities and shareholders’ equity
Interest-bearing liabilities :
Demand deposits	$	292,797		$	1,605		2.20	%	$	287,758		$	2,509		3.50	%
Savings deposits		214,033			1,390		2.61	%		195,321			2,134		4.38	%
Time deposits		809,259			8,900		4.42	%		765,767			9,963		5.22	%
Total interest-bearing deposits		1,316,089			11,895		3.64	%		1,248,846			14,606		4.69	%
Federal funds purchased		11,962			73		2.45	%		9,560			133		5.60	%
Securities sold under agreements to repurchase		32,938			199		2.43	%		18,948			127		2.68	%
Other short-term borrowings		27,527			212		3.08	%		21,989			249		4.54	%
Subordinated debt		67,527			1,278		7.61	%		46,908			1,110		9.49	%
Long-term debt		51,319			440		3.45	%		37,000			393		4.26	%
Total interest-bearing liabilities	1,507,362				14,097		3.76	%		1,383,251			16,618		4.82	%
Noninterest-bearing :
Demand deposits		130,760								126,717
Other liabilities		15,042								14,383
Shareholders’ equity		100,027								96,784
Total liabilities and shareholders’ equity	$	1,753,191							$	1,621,135
Net interest income / spread				$	12,184		2.60	%				$	11,828		2.58	%
Net interest margin							2.95	%							3.08	%

(1)	Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $49,000 and $102,000 respectively.
(2)	Interest income includes the effect of taxable-equivalent adjustment for 2008 and 2007 of $68,000 and $27,000.

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