Franklin Financial Network, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Tax Rate Guidance for the Full Year of 2018
January 24, 2018 at 09:15 pm
Share
Franklin Financial Network, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total interest income of $35,121,000 against $27,336,000 a year ago. Net interest income was $24,608,000 against $21,699,000 a year ago. Net interest income after provision for loan losses was $23,313,000 against $20,554,000 a year ago. Income before income tax expense was $10,590,000 against $9,878,000 a year ago. Net income was $2,402,000 against $7,179,000 a year ago. Net income available to common shareholders was $2,394,000 or $0.17 per diluted share against $7,179,000 or $0.58 per diluted share a year ago. Return on average assets was 0.26% against 1.00 a year ago. Return on average equity was 3.13% against 12.10% a year ago. Return on average tangible common equity was 3.22% against 12.68% a year ago. Book value per share was $23.01 against $20.73 a year ago. Tangible book value per share was $22.24 against $19.91 a year ago. The growth in net interest income on a comparable-quarter basis primarily resulted from 26.8% growth in average interest earning assets and a slight increase in average yield that produced a 28.5%, or $7.8 million increase in interest income. The 1.2% increase in net interest income on a sequential-quarter basis reflected 5.3% growth in average interest earning assets and a slight decline in average yield that produced a 4.0% increase in interest income, as well as a 6.7% increase in interest bearing liabilities and a slight increase in average rate paid that produced an 11.2% increase in interest expense.
For the year, the company reported total interest income of $132,453,000 against $99,907,000 a year ago. Net interest income was $97,046,000 against $81,584,000 a year ago. Net interest income after provision for loan losses was $92,733,000 against $76,344,000 a year ago. Income before income tax expense was $46,630,000 against $39,803,000 a year ago. Net income was $28,099,000 against $28,057,000 a year ago. Net income available to common shareholders was $28,083,000 or $2.04 per diluted share against $28,034,000 or $2.42 per diluted share a year ago.
Due to the recently passed tax reform, the company expects its effective income tax rate for 2018 to improve substantially.
Franklin Financial Network, Inc. is a financial holding company. Through its bank subsidiary, Franklin Synergy Bank (the Bank), a commercial bank, the Company provides a range of banking and related financial services. The Company focuses on the provision of services to small businesses, corporate entities, local governments and individuals. As of December 31, 2016, the Company operated through 12 branches in Williamson and Rutherford counties and a loan production office within the Nashville metropolitan area. The Company's loan portfolio consists of real estate loans, including construction and land development loans, commercial loans and residential loans; commercial and industrial, and consumer and other loans. The Company's investment securities portfolio consists of both securities classified as available-for-sale and securities classified as held-to-maturity. The Company's primary sources of funds include deposits.
Franklin Financial Network, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Tax Rate Guidance for the Full Year of 2018