822662--3/15/2006--FIDELITY_SOUTHERN

related topics

{stock, price, share}

{loan, real, estate}

{financial, litigation, operation}

{condition, economic, financial}

{product, market, service}

{competitive, industry, competition}

{customer, product, revenue}

{acquisition, growth, future}

{personnel, key, retain}

{operation, natural, condition}

{cost, regulation, environmental}

{capital, credit, financial}

{system, service, information}

{loss, insurance, financial}

{control, financial, internal}

Increases in longer-term interest rates may reduce our income from mortgage banking activities which would negatively impact our noninterest income and which would negatively impact our net interest income. A significant portion of our loan portfolio is secured by real estate loans in the Atlanta, Georgia, metropolitan area and in eastern and northern Florida markets, and a downturn in real estate market values in those areas may adversely affect our business. We may be unable to maintain and service our relationships with automobile dealers and we are subject to their willingness and ability to provide high quality indirect automobile loans. FSC s profitability depends significantly on economic conditions in the Atlanta metropolitan area. FSC is subject to consumer and debtor protection laws. FSC is subject to extensive governmental regulation. FSC is subject to environmental liability risk associated with lending activities. We operate in a highly competitive industry and market area. The allowance for loan losses may be insufficient. Our continued pace of growth may require us to raise additional capital in the future, but that capital may not be available when it is needed. The building of market share through our branching strategy could cause our expenses to increase faster than revenues. The Company s controls and procedures may fail or be circumvented. New lines of business or new products and services may subject us to additional risks. We may not be able to attract and retain skilled people. Our information systems may experience an interruption or breach in security. We may be unable to keep pace with technological change. We are subject to claims and litigation. Severe weather, natural disasters, acts of war or terrorism, and other external events could significantly impact our business. RISKS RELATED TO FSC S COMMON STOCK Our stock price can be volatile. FSC s common stock trading volume is less than that of other larger financial services companies. An investment in FSC s common stock is not an insured deposit. RISKS ASSOCIATED WITH THE COMPANY S INDUSTRY The earnings of financial services companies are significantly affected by general business and economic conditions. Financial services companies depend on the accuracy and completeness of information about customers and counterparties.

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822662--3/15/2006--FIDELITY_SOUTHERN_CORP