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FRANKLIN BANK ANNOUNCES SECOND-QUARTER EARNINGS; NON-PERFORMING ASSETS DECLINE 34 PERCENT SINCE YEAR-END

 FRANKLIN BANK ANNOUNCES SECOND-QUARTER EARNINGS;
 NON-PERFORMING ASSETS DECLINE 34 PERCENT SINCE YEAR-END
 SOUTHFIELD, Mich., July 20 /PRNewswire/ -- Franklin Bank, N.A., (NASDAQ: FSVB) announced net income of $490,882, or $0.45 per share for the quarter ended June 30, 1992, compared to net income of $483,667, or $0.48 per share for the second quarter 1991. Net income applicable to common stockholders after preferred dividends of $207,000 was $283,882, or $0.26 per share for the quarter ended June 30, 1992.
 "Non-performing assets are down dramatically, net interest margin is up, core banking income exceeds operating expenses by 127 percent and we've experienced moderate asset growth," said President and CEO Read P. Dunn. "In less than a year of our conversion to a commercial bank, the key ratios are moving in a positive direction," he continued.
 Total non-performing assets declined to $5,960,529 at June 30, 1992. This is a reduction of $3,108,706, or 34 percent from total non- performers at Dec. 31, 1991, or $9,069,235. Franklin's non-performing assets to total assets ratio at June 30, 1992, was 1.49 percent, its lowest point in 15 months. Franklin's success in reducing non- performing assets is largely the result of selling previously foreclosed properties.
 "Franklin currently has two commercial and three residential real estate properties remaining to be sold and zero commercial properties in foreclosure," said Dunn. Due to the dramatic decrease in total non- performing assets, Franklin's ratio of its allowance for possible loan losses to non-performing assets jumped to 70.76 percent at June 30, 1992, compared to 45.67 percent at Dec. 31, 1991. Actual net charge- offs continue to be very nominal and were 0.01 percent of average loans during the quarter.
 Net interest margin for the quarter ended June 30, 1992, increased to 2.75 percent, compared to 2.56 percent for the comparable quarter last year. Working toward continued margin improvement, Franklin is actively seeking non-interest bearing corporate accounts and higher yielding business loans.
 Core banking income, comprised of net interest income and fees for bank products and services, exceeded operating expenses by 127 percent during the quarter. This was despite necessary increases in staff to accommodate new bank products and expanded regulatory compliance requirements.
 Stockholders' equity at June 30, 1992, was $21,727,288 compared to $21,202,192, at Dec. 31, 1991. Common stockholders' equity per share at June 30, 1992, was $13.29, up from $12.82 at Dec. 31, 1991.
 At June 30, 1992, Franklin had total assets of $401,110,199 compared to $398,209,332. Franklin's administrative offices and one regional branch are located in Southfield, with two additional regional branches in Birmingham and Grosse Pointe Woods.
 FRANKLIN BANK, N.A.
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Unaudited; dollars in thousands, except share data)
 June 30, 1992 Dec. 31, 1991
 Assets
 Cash $1,074 $1,119
 Interest bearing deposits 3,022 391
 Time Deposits with FHLB 24,612 11,153
 Investment securities (at cost,
 which approximates market) 32,951 35,646
 Loans receivable, net 323,602 330,554
 Accrued interest receivable 4,205 3,904
 Real estate 2,929 5,698
 Premises and equipment, net 2,064 2,094
 FHLB stock - cost 3,464 3,464
 Federal reserve stock - cost 544 935
 Prepaid expenses and other assets 2,643 3,251
 Total assets $401,110 $398,209
 Liabilities
 Deposits $327,947 $325,506
 Advances from FHLB 33,600 40,100
 Reverse repurchase agreements 5,188 ---
 Subordinated capital notes 7,114 7,117
 Advance payments by borrowers
 for taxes and insurance 3,060 955
 Accrued interest payable 847 1,191
 Other liabilities 1,627 2,138
 Total liabilities 379,383 377,007
 Stockholders' equity
 Common stock - par value $1; authorized
 3 million shares; issued and
 outstanding 1,017,607 shares at
 June 30, 1992, and 1,014,145
 at Dec. 31, 1991 1,018 1,014
 Preferred stock - stated value $10;
 authorized 3 million shares; issued
 and outstanding 920,000 shares 8,199 8,199
 Additional paid-in capital 9,537 9,515
 Retained earnings 2,973 2,474
 Total stockholders' equity 21,727 21,202
 Total liabilities and
 stockholders' equity $401,110 $398,209
 FRANKLIN BANK, N.A.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited; dollars in thousands, except share data)
 Six Months Ended Quarter Ended
 June 30, June 30,
 1992 1991 1992 1991
 Interest income
 Interest on loans $14,632 $18,864 $7,065 $8,961
 Interest on investment
 securities 1,021 123 506 41
 Other interest and
 dividends 679 670 410 378
 Total 16,332 19,657 7,981 9,380
 Interest expense
 Interest on deposits 9,399 12,720 4,523 6,164
 Interest on FHLB advances,
 subordinated capital notes,
 and reverse repurchase
 agreements 1,669 1,804 798 803
 Total 11,068 14,524 5,321 6,967
 Net interest income 5,264 5,133 2,660 2,413
 Provision for possible
 loan losses 120 60 50 30
 Net interest income after
 provision for possible
 loan losses 5,144 5,073 2,610 2,383
 Other income
 Loan fees and servicing
 charges 567 437 297 227
 Gain on sale of participation
 certificates, mortgages,
 and securities 149 603 149 234
 Other 65 53 17 22
 Total 781 1,093 463 483
 Other expenses
 Compensation and benefits 1,943 1,526 980 833
 Occupancy and equipment 718 732 364 370
 Advertising 289 75 156 51
 Professional fees 137 161 80 77
 Federal insurance premiums 374 408 187 204
 Defaulted loan expense 160 225 41 138
 Community development
 expenses 104 82 53 28
 Other 861 845 444 432
 Total 4,586 4,054 2,305 2,133
 Income before provision for
 federal income taxes 1,339 2,112 768 733
 Provision for federal
 income tax 426 499 277 249
 Net income $913 $1,613 $491 $484
 Average shares
 outstanding 1,095,317 1,013,845 1,099,704 1,013,845
 Average shares fully
 diluted 1,141,721 1,013,845 1,141,721 1,013,845
 Net income per share $0.83 $1.59 $0.45 $0.48
 Net income per share
 fully diluted $0.80 $1.59 $0.43 $0.48
 Net income per common
 share after preferred
 dividend $0.46 $1.59 $0.26 $0.48
 FRANKLIN BANK, N.A.
 FINANCIAL SUMMARY
 (Unaudited; dollars in thousands, except share data)
 Quarter ended June 30, 1992 June 30, 1991
 Interest income $7,981 $9,380
 Interest expense 5,321 6,967
 Net interest income 2,660 2,413
 Provision for loan losses 50 30
 Net income 491 484
 Net income per share:
 Primary $0.45 $0.48
 Fully diluted 0.43 0.48
 Primary after preferred dividend 0.26 0.48
 At June 30, 1992 Dec. 31, 1991
 Assets $401,110 $398,209
 Investment securities 32,951 35,646
 Loans 323,602 330,554
 Allowance for loan losses 4,218 4,142
 Nonperforming assets 5,961 9,069
 Advances and borrowings 45,902 47,217
 Deposits 327,947 325,506
 Common stockholders' equity 13,528 13,003
 Per share 13.29 12.82
 Shares outstanding 1,017,607 1,014,145
 Core capital 5.32 pct 5.22 pct
 Allowance for loan losses/total loans 1.30 1.25
 Allowance/nonperforming assets 70.76 45.67
 Nonperforming assets/total assets 1.49 2.28
 Other information June 30, 1992 June 30, 1991
 Return on average common
 stockholders' equity 8.48 pct 15.76 pct
 Return on average assets 0.49 0.49
 Net interest margin 2.75 2.56
 Operating expense/average assets 2.29 2.18
 Net charge-offs/average loans 0.01 0.04
 Full-time employees and equivalents 105 84
 Branches 3 3
 -0- 7/20/92
 /CONTACT: Rebecca J. Christian or Lisa Aupperle of Franklin Bank, 313-358-1615 or 800-356-8910 (outside Michigan)/
 (FSVB) CO: Franklin Bank, N.A. ST: Michigan IN: FIN SU: ERN


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