PR Newswire
FRANKLIN, Tenn., Oct. 18, 2016
FRANKLIN, Tenn., Oct. 18, 2016 /PRNewswire/ -- Franklin Financial Network, Inc. (NYSE: FSB), the parent company (the "Company") of Franklin Synergy Bank (the "Bank"), today announced record financial results for the third quarter and nine months ended September 30, 2016. For the third quarter, net income available for common shareholders increased 37.2% to $7.0 million from $5.1 million for the third quarter of 2015. Earnings per diluted share were $0.62 for the third quarter of 2016, up 34.8% from $0.46 for the third quarter of 2015.
For the first nine months of 2016, net income available for common shareholders increased 78.5% to $20.2 million from $11.3 million for the first nine months of 2015. Earnings per diluted share grew 60.7% for the first nine months of 2016 to $1.80 from $1.12 for the same period in 2015.
Highlights for the third quarter of 2016 include:
"The Company produced substantial growth in earnings per diluted share for the third quarter," said Richard Herrington, the Company's Chairman, President, and Chief Executive Officer. "Historically, from an earnings perspective, the third quarter is our weakest quarter due to seasonal trends in deposits and construction lending, contributing, in part, to a lower net interest margin. Further, comparison to the third quarter last year is distorted because of a $1.2 million increase in net interest income in the third quarter of 2015 resulting from the pay-off of a purchased credit-impaired loan.
"The earnings growth in the third quarter this year, compared to last year, was driven by a combination of loan growth, record mortgage banking levels, and continued strong asset quality performance. Compared to second quarter 2016, net income growth was slowed by the narrower net interest margin discussed above, as well as the Company's investment in people and technology infrastructure to build a stronger foundation for future growth. As our infrastructure upgrades are completed and implemented in the first half of 2017, we expected the level of new investment to moderate.
"The Company's performance for the third quarter and year-to-date continued to reflect favorable economic trends in our core middle Tennessee market, comprised primarily of the three-county metro area including Davidson (Nashville), Williamson (Franklin) and Rutherford (Murfreesboro) counties. Recent economic reports indicate that the Nashville metro area had the second-highest rate of wage growth in the country for 2015, consistent with a report from the Brookings Metropolitan Policy Program that found the Nashville area ranked first in the nation in the growth of high-tech manufacturing and other 'advanced industries' jobs. These reports complement earlier statistics that rank this market in the top tier of national metro areas for job growth, business startups, entrepreneurship and even as a great place to retire. We believe the Company is well-positioned to leverage these trends to produce further profitable growth."
Strong Asset Quality
Attractive, Growing, Local Markets Support Expansion of Balance Sheet
Strong Growth in the Loan Portfolio and Noninterest Revenue Drive Earnings per Share
Webcast and Conference Call Information
The Company will host a webcast and conference call at 9:00 a.m. (CT) on Wednesday, October 19, 2016, to discuss operating and financial results for the third quarter of 2016. To access the call for audio only, please call 1-844-378-6480. For the presentation materials and streaming audio, please access the webcast on the Investor Relations page of Franklin Synergy Bank's website at www.FranklinSynergyBank.com. For those unable to participate in the webcast, it will be archived for one year, with audio available for 90 days.
Safe Harbor for Forward-Looking Statements
This media release contains forward-looking statements. Such statements include, but are not limited to, projected sales, gross margin and net income figures, the availability of capital resources, and plans concerning products and market acceptance. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, could differ materially from those set forth in or contemplated by the forward-looking statements herein.
Future operating results of the corporation are impossible to predict, and no representation or warranty of any kind can be made respecting the present or future accuracy of such forward-looking statements or the ability of the corporation to meet its obligations, and no such representation or warranty is to be inferred.
About the Company
Franklin Financial Network, Inc. is a financial holding company headquartered in Franklin, Tennessee. The Company's wholly owned bank subsidiary, Franklin Synergy Bank, a Tennessee-chartered commercial bank founded in November 2007 and a member of the Federal Reserve System, provides a full range of banking and related financial services with a focus on service to small businesses, corporate entities, local governments and individuals. With consolidated total assets of $2.70 billion at September 30, 2016, the Bank currently operates through 12 branches and one loan production office in the demographically attractive and growing Williamson, Rutherford and Davidson Counties, all within the Nashville metropolitan statistical area. Additional information about the Company, which is included in the NYSE Financial-100 Index, and the FTSE Russell 2000 Index, is available at www.FranklinSynergyBank.com.
FRANKLIN FINANCIAL NETWORK | ||
CONSOLIDATED BALANCE SHEETS | ||
(Amounts in thousands, except share data) |
September 30, |
December 31, |
(Unaudited) |
||
ASSETS |
||
Cash and due from financial institutions |
$ 55,749 |
$ 52,394 |
Certificates of deposit at other financial institutions |
1,055 |
250 |
Securities available for sale |
670,756 |
575,838 |
Securities held to maturity (fair value 2016—$241,591 and 2015—$161,969) |
235,050 |
158,200 |
Loans held for sale, at fair value |
26,819 |
14,079 |
Loans |
1,654,058 |
1,303,826 |
Allowance for loan losses |
(15,590) |
(11,587) |
Net loans |
1,638,468 |
1,292,239 |
Restricted equity securities, at cost |
11,829 |
7,998 |
Premises and equipment, net |
8,796 |
7,640 |
Accrued interest receivable |
7,871 |
7,299 |
Bank owned life insurance |
23,105 |
22,619 |
Deferred tax asset |
5,590 |
9,430 |
Buildings held for sale |
— |
1,640 |
Foreclosed assets |
— |
200 |
Servicing rights, net |
3,566 |
3,455 |
Goodwill |
9,124 |
9,124 |
Core deposit intangible, net |
1,612 |
2,043 |
Other assets |
3,805 |
3,344 |
Total assets |
$ 2,703,195 |
$ 2,167,792 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
||
Deposits |
||
Non-interest bearing |
$ 232,118 |
$ 176,742 |
Interest bearing |
1,985,836 |
1,637,297 |
Total deposits |
2,217,954 |
1,814,039 |
Federal funds purchased and repurchase agreements |
45,843 |
101,086 |
Federal Home Loan Bank advances |
162,000 |
57,000 |
Subordinated notes |
58,292 |
— |
Accrued interest payable |
1,399 |
644 |
Other liabilities |
8,063 |
6,207 |
Total liabilities |
2,493,551 |
1,978,976 |
Shareholders' equity |
||
Preferred stock, no par value: 1,000,000 shares authorized; Senior non-cumulative preferred stock, Series A, no par value, $1,000 liquidation value per share, 10,000 shares authorized; no shares outstanding at September 30, 2016 and 10,000 shares issued and outstanding at December 31, 2015 |
— |
10,000 |
Common stock, no par value; 20,000,000 shares authorized; 10,757,483 and 10,571,377 issued and outstanding at September 30, 2016 and December 31, 2015, respectively |
150,851 |
147,784 |
Retained earnings |
51,592 |
31,352 |
Accumulated other comprehensive income (loss) |
7,201 |
(320) |
Total shareholders' equity |
209,644 |
188,816 |
Total liabilities and shareholders' equity |
$ 2,703,195 |
$ 2,167,792 |
FRANKLIN FINANCIAL NETWORK, INC. | ||||
CONSOLIDATED STATEMENTS OF INCOME | ||||
(Unaudited) | ||||
(Amounts in thousands, except per share data) |
Three Months Ended |
Nine Months Ended | ||
2016 |
2015 |
2016 |
2015 | |
Interest income and dividends |
||||
Loans, including fees |
$ 20,192 |
$ 14,744 |
$ 56,864 |
$ 38,071 |
Securities: |
||||
Taxable |
3,889 |
3,462 |
11,402 |
9,084 |
Tax-Exempt |
1,457 |
966 |
3,776 |
1,155 |
Dividends on restricted equity securities |
133 |
100 |
354 |
250 |
Federal funds sold and other |
53 |
29 |
175 |
80 |
Total interest income |
25,724 |
19,301 |
72,571 |
48,640 |
Interest expense |
||||
Deposits |
3,683 |
2,417 |
10,118 |
5,963 |
Federal funds purchased and repurchase agreements |
69 |
69 |
237 |
232 |
Federal Home Loan Bank advances |
215 |
79 |
511 |
225 |
Subordinated notes and other borrowings |
1,082 |
— |
1,820 |
— |
Total interest expense |
5,049 |
2,565 |
12,686 |
6,420 |
Net interest income |
20,675 |
16,736 |
59,885 |
42,220 |
Provision for loan losses |
1,392 |
1,724 |
4,095 |
3,154 |
Net interest income after provision for loan losses |
19,283 |
15,012 |
55,790 |
39,066 |
Noninterest income |
||||
Service charges on deposit accounts |
44 |
44 |
139 |
78 |
Other service charges and fees |
845 |
679 |
2,245 |
1,987 |
Net gains on sale of loans |
2,942 |
2,463 |
6,859 |
5,573 |
Wealth management |
446 |
327 |
1,343 |
914 |
Loan servicing fees, net |
(40) |
84 |
(2) |
187 |
Gain on sale of securities |
430 |
5 |
1,535 |
529 |
Net gain on sale and write-down of foreclosed assets |
30 |
3 |
36 |
30 |
Other |
179 |
193 |
432 |
566 |
Total noninterest income |
4,876 |
3,798 |
12,587 |
9,864 |
Noninterest expense |
||||
Salaries and employee benefits |
7,979 |
6,208 |
22,099 |
17,960 |
Occupancy and equipment |
2,001 |
1,683 |
5,563 |
4,961 |
FDIC assessment expense |
570 |
362 |
1,388 |
792 |
Marketing |
206 |
277 |
611 |
695 |
Professional fees |
935 |
516 |
3,006 |
1,382 |
Amortization of core deposit intangible |
138 |
160 |
431 |
499 |
Indirect expenses related to public offering |
— |
— |
— |
314 |
Other |
1,879 |
1,647 |
5,354 |
4,443 |
Total noninterest expense |
13,708 |
10,853 |
38,452 |
31,046 |
Income before income tax expense |
10,451 |
7,957 |
29,925 |
17,884 |
Income tax expense |
3,421 |
2,807 |
9,663 |
6,468 |
Net income |
7,030 |
5,150 |
20,262 |
11,416 |
Dividends paid on Series A preferred stock |
— |
(25) |
(23) |
(75) |
Net income available to common shareholders |
$ 7,030 |
$ 5,125 |
$ 20,239 |
$ 11,341 |
Earnings per share: |
||||
Basic |
$ 0.66 |
$ 0.49 |
$ 1.90 |
$ 1.17 |
Diluted |
0.62 |
0.46 |
1.80 |
1.12 |
FRANKLIN FINANCIAL NETWORK, INC. | ||||||
AVERAGE BALANCES(7) — ANALYSIS OF YIELDS & RATES (UNAUDITED) | ||||||
(Amounts in thousands, except percentages) | ||||||
Three Months Ended September 30, | ||||||
2016 |
2015 | |||||
Average |
Interest |
Average |
Average |
Interest |
Average | |
ASSETS: |
||||||
Loans(1)(6) |
$ 1,620,347 |
$ 20,219 |
4.96 % |
$ 1,044,520 |
$ 14,763 |
5.61 % |
Securities available for sale(6) |
671,725 |
4,084 |
2.42 % |
674,991 |
4,422 |
2.60 % |
Securities held to maturity(6) |
233,986 |
2,203 |
3.75 % |
74,332 |
632 |
3.37 % |
Certificates of deposit at other financial institutions |
941 |
4 |
1.69 % |
250 |
2 |
3.17 % |
Federal funds sold and other(2) |
49,295 |
182 |
1.47 % |
52,279 |
127 |
0.96 % |
TOTAL INTEREST EARNING ASSETS |
$ 2,576,294 |
$ 26,692 |
4.12 % |
$ 1,846,372 |
$ 19,946 |
4.29 % |
Allowance for loan losses |
(14,508) |
(8,576) |
||||
All other assets |
86,466 |
74,570 |
||||
TOTAL ASSETS |
$ 2,648,252 |
$ 1,912,366 |
||||
LIABILITIES & SHAREHOLDERS' EQUITY |
||||||
Deposits: |
||||||
Interest checking |
$ 261,350 |
$ 256 |
0.39 % |
$ 246,584 |
$ 170 |
0.27 % |
Money market |
617,913 |
957 |
0.62 % |
514,669 |
703 |
0.54 % |
Savings |
51,235 |
40 |
0.31 % |
37,888 |
44 |
0.46 % |
Time deposits |
1,080,666 |
2,430 |
0.89 % |
648,605 |
1,500 |
0.92 % |
Federal Home Loan Bank advances |
86,783 |
215 |
0.99 % |
57,000 |
79 |
0.55 % |
Federal funds purchased and other(3) |
44,974 |
69 |
0.61 % |
45,261 |
69 |
0.60 % |
Subordinated notes and other borrowings |
58,285 |
1,082 |
7.39 % |
— |
— |
— |
TOTAL INTEREST BEARING LIABILITIES |
$ 2,201,206 |
$ 5,049 |
0.91 % |
$ 1,550,007 |
$ 2,565 |
0.66 % |
Demand deposits |
224,387 |
169,451 |
||||
Other liabilities |
16,650 |
11,368 |
||||
Total shareholders' equity |
206,009 |
181,540 |
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 2,648,252 |
$ 1,912,366 |
||||
NET INTEREST SPREAD(4) |
3.21 % |
3.63 % | ||||
NET INTEREST INCOME |
$ 21,643 |
$ 17,381 |
||||
NET INTEREST MARGIN(5) |
3.34 % |
3.73 % |
(1) |
Loan balances include both loans held in the Bank's portfolio and mortgage loans held for sale and are net of deferred origination fees and costs. Non-accrual loans are included in total loan balances. |
(2) |
Includes federal funds sold, capital stock in the Federal Reserve Bank and Federal Home Loan Bank, and interest-bearing deposits at the Federal Reserve Bank and the Federal Home Loan Bank. |
(3) |
Includes repurchase agreements. |
(4) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(5) |
Represents net interest income (annualized) divided by total average earning assets. |
(6) |
Interest income and rates include the effects of tax-equivalent adjustments to adjust tax-exempt interest income on tax-exempt loans and investment securities to a fully taxable basis. |
(7) |
Averages balances are average daily balances. |
Nine Months Ended September 30, | ||||||
2016 |
2015 | |||||
Average |
Interest |
Average |
Average |
Interest |
Average | |
ASSETS: |
||||||
Loans(1)(6) |
$ 1,535,894 |
$ 56,933 |
4.95 % |
$ 933,950 |
$ 38,127 |
5.46 % |
Securities available for sale(6) |
641,270 |
11,917 |
2.48 % |
532,754 |
9,628 |
2.42 % |
Securities held to maturity(6) |
194,326 |
5,698 |
3.92 % |
58,587 |
1,358 |
3.10 % |
Certificates of deposit at other financial institutions |
751 |
11 |
1.96 % |
250 |
5 |
2.67 % |
Federal funds sold and other(2) |
55,583 |
518 |
1.24 % |
50,207 |
325 |
0.87 % |
TOTAL INTEREST EARNING ASSETS |
$ 2,427,824 |
$ 75,077 |
4.13 % |
$ 1,575,748 |
$ 49,443 |
4.20 % |
Allowance for loan losses |
(13,179) |
(7,705) |
||||
All other assets |
41,988 |
72,387 |
||||
TOTAL ASSETS |
$ 2,456,633 |
$ 1,640,430 |
||||
LIABILITIES & SHAREHOLDERS' EQUITY |
||||||
Deposits: |
||||||
Interest checking |
$ 292,013 |
$ 853 |
0.39 % |
$ 270,992 |
$ 605 |
0.30 % |
Money market |
608,341 |
2,767 |
0.61 % |
451,054 |
1,918 |
0.57 % |
Savings |
48,647 |
121 |
0.33 % |
34,018 |
117 |
0.46 % |
Time deposits |
937,266 |
6,377 |
0.91 % |
464,945 |
3,323 |
0.96 % |
Federal Home Loan Bank advances |
75,412 |
511 |
0.91 % |
42,890 |
225 |
0.70 % |
Federal funds purchased and other(3) |
50,100 |
237 |
0.63 % |
47,330 |
232 |
0.66 % |
Subordinated notes and other borrowings |
32,882 |
1,820 |
7.39 % |
— |
— |
— |
TOTAL INTEREST BEARING LIABILITIES |
$ 2,044,661 |
$ 12,686 |
0.83 % |
$ 1,311,229 |
$ 6,420 |
0.65 % |
Demand deposits |
200,981 |
159,093 |
||||
Other liabilities |
12,707 |
7,753 |
||||
Total shareholders' equity |
198,284 |
162,355 |
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 2,456,633 |
$ 1,640,430 |
||||
NET INTEREST SPREAD(4) |
3.30 % |
3.55 % | ||||
NET INTEREST INCOME |
$ 62,391 |
$ 43,023 |
||||
NET INTEREST MARGIN(5) |
3.43 % |
3.65 % |
(1) |
Loan balances include both loans held in the Bank's portfolio and mortgage loans held for sale and are net of deferred origination fees and costs. Non-accrual loans are included in total loan balances. |
(2) |
Includes federal funds sold, capital stock in the Federal Reserve Bank and Federal Home Loan Bank, and interest-bearing deposits at the Federal Reserve Bank and the Federal Home Loan Bank. |
(3) |
Includes repurchase agreements. |
(4) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(5) |
Represents net interest income (annualized) divided by total average earning assets. |
(6) |
Interest income and rates include the effects of tax-equivalent adjustments to adjust tax-exempt interest income on tax-exempt loans and investment securities to a fully taxable basis. |
(7) |
Averages balances are average daily balances. |
FRANKLIN FINANCIAL NETWORK, INC. | |||||
SUMMARY QUARTERLY CONSOLIDATED FINANCIAL DATA (UNAUDITED) | |||||
(Amounts in thousands, except per share data and percentages) | |||||
As of and for the three months ended | |||||
Sept 30, |
Jun 30, |
Mar 31, |
Dec 31, |
Sept 30, | |
Income Statement Data ($): |
|||||
Interest income |
25,724 |
24,286 |
22,561 |
20,081 |
19,301 |
Interest expense |
5,049 |
4,352 |
3,285 |
2,886 |
2,565 |
Net interest income |
20,675 |
19,934 |
19,276 |
17,195 |
16,736 |
Provision for loan losses |
1,392 |
1,567 |
1,136 |
1,876 |
1,724 |
Noninterest income |
4,876 |
4,626 |
3,085 |
2,992 |
3,798 |
Noninterest expense |
13,708 |
12,913 |
11,831 |
11,094 |
10,853 |
Net income before taxes |
10,451 |
10,080 |
9,394 |
7,217 |
7,957 |
Income tax expense |
3,421 |
3,081 |
3,161 |
2,553 |
2,807 |
Net income |
7,030 |
6,999 |
6,233 |
4,664 |
5,150 |
Earnings before interest and taxes |
15,500 |
14,432 |
12,679 |
10,103 |
10,522 |
Net income available to common shareholders |
7,030 |
6,999 |
6,210 |
4,639 |
5,125 |
Earnings per share, basic |
0.66 |
0.66 |
0.59 |
0.44 |
0.49 |
Earnings per share, diluted |
0.62 |
0.62 |
0.56 |
0.41 |
0.46 |
Profitability (%) |
|||||
Return on average assets |
1.06 |
1.14 |
1.12 |
0.89 |
1.07 |
Return on average equity |
13.58 |
14.48 |
12.90 |
9.82 |
11.25 |
Return on average tangible common equity |
14.33 |
15.35 |
14.36 |
11.01 |
12.70 |
Efficiency ratio |
53.65 |
52.58 |
52.91 |
54.95 |
52.85 |
Net interest margin(1) |
3.19 |
3.33 |
3.56 |
3.39 |
3.60 |
Balance Sheet Data ($): |
|||||
Loans (including HFS) |
1,680,877 |
1,567,537 |
1,433,623 |
1,317,905 |
1,138,492 |
Loan loss reserve |
15,590 |
14,253 |
12,676 |
11,587 |
9,744 |
Cash |
56,804 |
72,050 |
62,054 |
52,394 |
47,658 |
Securities |
905,806 |
909,531 |
746,781 |
734,038 |
756,554 |
Goodwill |
9,124 |
9,124 |
9,124 |
9,124 |
9,124 |
Intangible assets (Sum of core deposit intangible and |
1,650 |
1,792 |
1,946 |
2,107 |
2,249 |
Assets |
2,703,195 |
2,607,101 |
2,300,094 |
2,167,792 |
2,002,538 |
Deposits |
2,217,954 |
2,249,735 |
1,953,573 |
1,814,039 |
1,714,594 |
Liabilities |
2,493,551 |
2,402,825 |
2,108,184 |
1,978,976 |
1,814,928 |
Total equity |
209,644 |
204,276 |
191,910 |
188,816 |
187,610 |
Common equity |
209,644 |
204,276 |
191,910 |
178,816 |
177,610 |
Tangible common equity |
198,870 |
193,360 |
180,840 |
167,585 |
166,237 |
Asset Quality (%) |
|||||
Nonperforming loans/ total loans(2) |
0.10 |
0.10 |
0.12 |
0.25 |
0.07 |
Nonperforming assets / (total loans(2) + foreclosed assets) |
0.10 |
0.12 |
0.14 |
0.27 |
0.09 |
Loan loss reserve / total loans(2) |
0.94 |
0.92 |
0.89 |
0.89 |
0.87 |
Net charge-offs / average loans |
0.01 |
0.00 |
0.01 |
0.01 |
0.00 |
Capital (%) |
|||||
Tangible common equity to tangible assets |
7.39 |
7.45 |
7.90 |
7.77 |
8.35 |
Leverage ratio(3) |
7.15 |
7.33 |
7.69 |
8.48 |
8.90 |
Common Equity Tier 1 ratio(3) |
9.09 |
9.22 |
9.60 |
10.08 |
11.03 |
Tier 1 risk-based capital ratio(3) |
9.09 |
9.22 |
9.60 |
10.51 |
11.52 |
Total risk-based capital ratio(3) |
12.74 |
12.93 |
12.49 |
11.21 |
12.18 |
(1) |
Net interest margins shown in the table above do not include tax-equivalent adjustments. |
(2) |
Total loans in this ratio exclude loans held for sale. |
(3) |
Capital ratios come from the Company's regulatory filings with the Board of Governors of the Federal Reserve System, and for September 30, 2016 the ratios are estimates since the Company's quarterly regulatory reports have not yet been filed. |
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial data included in our selected historical consolidated financial information are not measures of financial performance recognized by GAAP. Our management uses these non-GAAP financial measures in its analysis of our performance:
We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:
(Amounts in thousands, except share/ |
As of or for the Three Months Ended | ||||
Sept 30, |
Jun 30, |
Mar 31, |
Dec 31, |
Sept 30, | |
Total shareholders' equity |
$ 209,644 |
$ 204,276 |
$ 191,910 |
$ 188,816 |
$ 187,610 |
Less: Preferred stock |
— |
— |
— |
10,000 |
10,000 |
Total common shareholders' equity |
209,644 |
204,276 |
191,910 |
178,816 |
177,610 |
Common shares outstanding |
10,757,483 |
10,689,481 |
10,586,592 |
10,571,377 |
10,524,630 |
Book value per share |
$ 19.49 |
$ 19.11 |
$ 18.13 |
$ 16.92 |
$ 16.88 |
Total common shareholders' equity |
$ 209,644 |
$ 204,276 |
$ 191,910 |
$ 178,816 |
$ 177,610 |
Less: Goodwill and other intangible assets |
10,774 |
10,916 |
11,070 |
11,231 |
11,373 |
Tangible common shareholders' equity |
$ 198,870 |
$ 193,360 |
$ 180,840 |
$ 167,585 |
$ 166,237 |
Common shares outstanding |
10,757,483 |
10,689,481 |
10,586,592 |
10,571,377 |
10,524,630 |
Tangible book value per share |
$ 18.49 |
$ 18.09 |
$ 17.08 |
$ 15.85 |
$ 15.80 |
Average total shareholders' equity |
$ 206,009 |
$ 194,385 |
$ 194,383 |
$ 188,460 |
$ 181,540 |
Less: Average Preferred stock |
— |
— |
9,231 |
10,000 |
10,000 |
Less: Average Goodwill and other intangible assets |
10,855 |
11,006 |
11,165 |
11,309 |
11,469 |
Average tangible common shareholders' equity |
$ 195,154 |
$ 183,379 |
$ 173,987 |
$ 167,151 |
$ 160,071 |
Net income available to common shareholders |
$ 7,030 |
$ 6,999 |
$ 6,210 |
$ 4,639 |
$ 5,125 |
Average tangible common equity |
195,154 |
183,379 |
173,987 |
167,151 |
160,071 |
Return on average tangible common equity |
14.33 % |
15.35 % |
14.36 % |
11.01 % |
12.70 % |
Efficiency Ratio: |
|||||
Net interest income |
$ 20,675 |
$ 19,934 |
$ 19,276 |
$ 17,195 |
$ 16,736 |
Noninterest income |
4,876 |
4,626 |
3,085 |
2,992 |
3,798 |
Operating revenue |
25,551 |
24,560 |
22,361 |
20,187 |
20,534 |
Expense |
|||||
Total noninterest expense |
13,708 |
12,913 |
11,831 |
11,094 |
10,853 |
Efficiency ratio |
53.65 % |
52.58 % |
52.91 % |
54.96 % |
52.85 % |
Annualized interest and fees from loans |
$ 80,329 |
$ 76,136 |
$ 71,358 |
$ 61,506 |
$ 58,495 |
Average loans |
1,620,347 |
1,497,556 |
1,364,467 |
1,232,218 |
1,044,520 |
Reported yield on loans(1) |
4.96 % |
5.08 % |
5.23 % |
4.99 % |
5.60 % |
Annualized accretion income on acquired loans |
$ 841 |
$ 1,108 |
$ 1,447 |
$ 1,409 |
$ 4,374 |
Less: Effect of accretion income on acquired loans |
(0.05 %) |
(0.07 %) |
(0.11 %) |
(0.11 %) |
(0.42 %) |
Adjusted yield on loans |
4.91 % |
5.01 % |
5.12 % |
4.88 % |
5.18 % |
(Amounts in thousands, except share/ |
As of or for the Three Months Ended | ||||
Sept 30, |
Jun 30, |
Mar 31, |
Dec 31, |
Sept 30, | |
Annualized net interest income |
$ 82,251 |
$ 80,174 |
$ 77,528 |
$ 68,219 |
$ 66,398 |
Average earning assets |
2,576,294 |
2,404,060 |
2,177,905 |
2,009,481 |
1,846,372 |
Reported net interest margin(1) |
3.19 % |
3.33 % |
3.56 % |
3.39 % |
3.60 % |
Annualized accretion income on acquired loans |
$ 841 |
$ 1,108 |
$ 1,447 |
$ 1,409 |
$ 4,374 |
Effect of accretion income on acquired loans |
(0.03 %) |
(0.05 %) |
(0.07 %) |
(0.07 %) |
(0.24 %) |
Annualized premium amortization on acquired deposits |
$ — |
$ — |
$ — |
$ — |
$ 4 |
Effect of premium amortization of acquired deposits |
(0.00 %) |
(0.00 %) |
(0.00 %) |
(0.00 %) |
(0.00 %) |
Net interest margin adjusted for purchase accounting adjustments |
3.16 % |
3.28 % |
3.49 % |
3.32 % |
3.36 % |
(1) |
The yields and margins reported in the table above do not include any tax-equivalent adjustments. |
Investor Relations Contact:
Sarah Meyerrose
EVP, Chief Financial Officer
(615) 236-8344
[email protected]
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/franklin-financial-network-announces-third-quarter-earnings-per-diluted-share-of-062-300347033.html
SOURCE Franklin Financial Network, Inc.
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