Franklin Financial Network, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016
January 24, 2017 at 04:15 pm
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Franklin Financial Network, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported net interest income was $21,699,000 against $17,195,000 a year ago. Income before income tax expense was $9,878,000 against $7,217,000 a year ago. Net income available to common shareholders was $7,179,000 against $4,639,000 a year ago. Diluted earnings per share was $0.58 against $0.41 per share a year ago. Earnings before interest and taxes was $15,515,000 against $10,103,000 a year ago. Return on average assets was 1% against 0.89% a year ago. Return on average equity was 12.10% against 9.82% a year ago. Return on average tangible common equity was 12.68% against 11.01% a year ago. The increase in earnings per diluted share is subsequent to an 11.6% increase in weighted average diluted shares outstanding due primarily to the company's public offering of common stock in November 2016. The growth in net interest income resulted from strong growth in interest earning assets, partly offset by a slight decrease in yield on interest earning assets, reflecting, in part, an increase in tax-exempt municipal debt in the securities portfolio. The resulting growth in interest income was somewhat offset by the growth and change in mix of funding sources as well as a significantly increased average rate on interest-bearing liabilities, which included the issuance of $60 million of subordinated notes during 2016.
For the year, the company reported net interest income was $81,584,000 against $59,415,000 a year ago. Income before income tax expense was $39,803,000 against $25,101,000 a year ago. Net income available to common shareholders was $28,034,000 against $15,980,000 a year ago. Diluted earnings per share was $2.42 against $1.54 per share a year ago. As on date, book value per share was $20.73 against $16.92 per share a year ago. As on date, tangible book value per share was $19.91 against $15.85 per share a year ago. Results for 2016 included an excess tax benefit of $1.0 million, or $0.08 per diluted share, from the exercise of nonqualified stock options and the vesting of restricted stock related to the retrospective adoption of a new accounting standards update.
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.