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.