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FRANKLIN BANK'S FIRST-QUARTER NET INCOME UP 44 PERCENT

 SOUTHFIELD, Mich., April 15 /PRNewswire/ -- Franklin Bank, N.A. (NASDAQ: FSVB) today announced a 44-percent increase in first-quarter earnings. For the quarter ended March 31, 1993, net income was $606,587 compared to $422,573 for the quarter ended March 31, 1992. Net income per common share was $0.28 per share ($0.24 fully diluted) for the quarter ended March 31, 1993, compared to $0.20 per share ($0.17 fully diluted) for the same quarter in 1992.
 Net interest income for the first quarter was $3.2 million, up 21 percent from $2.6 million in quarter to quarter comparisons. Franklin's net interest margin reached a historical high at March 31, 1993, of 3.36 percent, up 25 percent from 2.69 percent from March 31, 1992.
 "We expect continued margin improvement throughout 1993, and this will drive Franklin's earnings," said Read P. Dunn, president and CEO. "Business checking account balances increased 20 percent this quarter, and continue to climb. Additionally, late in the quarter we repriced $42 million of our certificate portfolio which should begin to impact the margin for the second quarter," Dunn added.
 During the quarter, earnings also benefited from a $210,000 gain on the sale of securities and a $178,000 cumulative effect of an accounting change. Earnings were depressed, however, by accelerated pay offs of residential mortgages and home equity loans. This resulted in an accelerated amortization of the acquisition cost of the mortgage servicing portfolio and expedited realization of FASB 91 origination costs.
 Franklin's non-performing loans dropped 13 percent from $4.3 million to $3.8 million for the quarters ended Dec. 31, 1992, and March 31, 1993, respectively. However, non-performing assets increased slightly to $7.6 million at March 31, 1993, up from $7.5 million at Dec. 31, 1992. This resulted from additional in-substance foreclosures and other repossessed assets. Total non-performing assets to total assets was 1.98 percent at March 31, 1993, compared to 1.91 percent at year end. Due to the significant reduction in foreclosed real estate properties, defaulted loan expense for the quarter fell 61 percent in quarter to quarter comparisons.
 Total assets at March 31, 1993, were $381.8 million compared to $391.0 million at Dec. 31, 1992. Total stockholders' equity increased 2.6 percent from $23.4 million at Dec. 31, 1992, to $24.0 million at March 31, 1993. Franklin Bank is the only independently owned bank in Oakland County with assets between $200 million and $10 billion. The bank operates administrative offices and one regional branch in Southfield, with additional regional branches in Birmingham and Grosse Pointe Woods. A new "Business Only Branch" will open in Southfield shortly to better service the growing number of local business accounts.
 FRANKLIN BANK, N.A.
 Consolidated Statements of Operations
 (Unaudited; dollars in thousands, except share data)
 Quarter Ended
 March 31,
 1993 1992
 Interest Income
 Interest on loans $6,751 $7,567
 Interest on investment securities 339 514
 Other interest and dividends 236 269
 Total interest income 7,326 8,350
 Interest Expense
 Interest on deposits 3,803 4,875
 Interest on FHLB advances, subordinated
 capital notes, and reverse repurchase
 agreements 369 871
 Total interest expense 4,172 5,746
 Net interest income 3,154 2,604
 Provision for possible loan losses 45 70
 Net interest income after provision
 for possible loan losses 3,109 2,534
 Other Income
 Loan fees and servicing charges 250 269
 Gain on sale of participation certificates,
 mortgages, and securities 210 ---
 Other 46 49
 Total other income 506 318
 Other Expenses
 Compensation and benefits 1,349 962
 Occupancy and equipment 428 354
 Advertising and professional fees 223 190
 Federal insurance premiums 200 188
 Defaulted loan expense 47 119
 Community development expenses 70 51
 Other 639 417
 Total other expenses 2,956 2,281
 Income before provision for federal
 income taxes 659 571
 Provision for federal income tax 231 148
 Income before cumulative effect of an
 accounting change 428 423
 Cumulative effect of an accounting change 178 ---
 Net income $606 $423
 Preferred stock dividends $204 $207
 Net income applicable to common stock $402 $216
 Average shares outstanding:
 Primary 1,428,788 1,094,678
 Fully diluted 1,696,276 1,261,616
 Net income per common share:
 Primary $0.28 $0.20
 Fully diluted $0.24 $0.17
 FRANKLIN BANK, N.A.
 Financial Summary
 (Unaudited; dollars in thousands, except share data)
 March 31, March 31,
 Quarter Ended 1993 1992
 Interest income $7,326 $8,350
 Interest expense 4,172 5,746
 Net interest income 3,154 2,604
 Provision for loan losses 45 70
 Net income (loss) 606 423
 Net income (loss) per common share $0.28 $0.20
 Net income (loss) per common share-
 fully diluted $0.24 $0.17
 March 31, Dec. 31,
 At 1993 1992
 Assets $381,813 $391,029
 Investment securities 18,760 27,231
 Loans 327,524 327,313
 Allowance for loan losses 4,127 4,199
 Non-performing assets 7,557 7,460
 Advances and borrowings 24,100 24,100
 Deposits 328,402 340,910
 Common stockholders' equity 14,920 14,193
 Per share 10.92 10.81
 Common shares outstanding 1,366,357 1,313,544
 Capital levels
 Tier 1 leverage $23,786 $23,269
 Ratio (pct) 6.16 5.81
 Allowance for loan losses/total loans (pct) 1.26 1.28
 Allowance/non-performing assets (pct) 54.61 56.29
 Non-performing assets/total assets (pct) 1.98 1.91
 March 31, March 31,
 Other Information 1993 1992
 Return on average common stockholders'
 equity (pct) 11.05 12.89
 Return on average assets before preferred
 stock dividend (pct) 0.63 0.42
 Net interest margin (pct) 3.36 2.69
 Operating expense/average assets (pct) 3.06 2.27
 Net charge-offs/average loans (pct) 0.04 0.01
 Full-time employees and equivalents 117 98
 Branches 3 3
 FRANKLIN BANK, N.A.
 Consolidated Statements of Financial Condition
 (Unaudited; dollars in thousands, except share data)
 March 31, Dec. 31,
 1993 1992
 Assets
 Cash me deposits with FHLB 13,498 13,427
 Securities held for sale --- 6,879
 Investment securities (at cost, market
 equals $19,077 at 3/31/93) 18,760 20,352
 Loans receivable, net 327,524 327,313
 Accrued interest receivable 3,154 2,771
 Real estate 3,696 3,108
 Premises and equipment, net 3,337 2,819
 FHLB stock - cost 3,464 3,464
 Federal Reserve stock - cost 627 563
 Prepaid expenses and other assets 2,778 2,593
 Total assets $381,813 $391,029
 Liabilities
 Deposits $328,402 $340,910
 Advances from FHLB 16,600 16,600
 Subordinated capital notes 7,500 7,500
 Advance payments by borrowers for
 taxes and insurance 2,053 473
 Accrued interest payable 989 702
 Other liabilities 2,269 1,450
 Total liabilities 357,813 367,635
 Stockholders' Equity
 Common stock - par value $1; authorized
 3 million shares; issued and outstanding
 1,366,357 shares at March 31, 1993, and
 1,313,544 at Dec. 31, 1992 1,367 1,314
 Preferred stock - stated value $10;
 authorized 3 million shares; issued and
 outstanding 908,000 shares at March 31,
 1993, and 920,000 shares at Dec. 31, 1992 9,080 9,200
 Additional paid-in capital 10,633 10,362
 Retained earnings 2,920 2,518
 Total stockholders' equity 24,000 23,394
 Total Liabilities and Stockholders'
 Equity $381,813 $391,029
 -0- 4/15/93
 /CONTACT: Rebecca J. Christian or Lisa Hudy of Franklin Bank, 313-358-6495 or (outside Michigan) 800-356-8910/
 (FSVB)


CO: Franklin Bank, N.A. ST: Michigan IN: FIN SU: ERN

JG-MS -- DE014 -- 6259 04/15/93 12:36 EDT
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