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- Franklin announces earnings of $0.30 per diluted share for the third quarter 2007 compared to $0.21 per diluted share last year. Core earnings in line with guidance
HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- (NASDAQ:FBTX) (AMEX:FBK-P) Franklin Bank Corp. (Franklin or Company), the parent company of Franklin Bank, S.S.B., today announced net income of approximately $7.5 million or $0.30 per diluted share for the third quarter 2007. This compares to $5.1 million or $0.21 per diluted share for the third quarter of 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060108/FBCLOGO)
"We are satisfied with our third quarter performance in the face of a very difficult and challenging environment. During the period we made some difficult decisions to reduce staff and close some of our less profitable mortgage offices. As a result of these steps, we are better positioned for the future," remarked Anthony J. Nocella, President and CEO of Franklin Bank Corp.
"We completed the integration of the First National Bank of Bryan (FNB). We are excited about the growth opportunities in this important market where we have broken ground on two full-service banking offices. The increase in profitability from the banking segment is the result of the continued expansion of the community banking network," stated Andy Black, President and Chief Operating Officer of Franklin Bank, S.S.B.
Core earnings were $7.9 million or $0.32 per share. In determining core earnings we excluded on an after-tax basis: a $1.5 million gain on early extinguishment of debt, $610,000 of charges relating to merger, conversion and severance costs, $551,000 of charges for closing 12 mortgage offices including the write-down on $108.5 million single family loans and securities transferred to the portfolio and $793,000 of provision for credit losses in excess of charge-offs.
Financial Results:
Franklin had net income of $7.5 million or $0.30 per diluted share for the quarter ended September 30, 2007. The banking and mortgage banking segments, respectively, contributed 98% and 2% of net income for the third quarter 2007 compared to 63% and 37% of net income for the third quarter 2006.
Net interest income increased $5.3 million or 24% to $27.4 million for the quarter ended September 30, 2007, as compared to the quarter ended September 30, 2006. Net yield on earning assets increased to 2.19% from 1.87% in 2006. For the nine months ended September 30, 2007, net interest income increased $6.0 million to $75.2 million as compared to the nine months ended September 30, 2006.
Non-interest expense increased $3.8 million or 22%, which includes merger related and other expenses of $1.0 million, for the quarter ended September 30, 2007 when compared to the quarter ended September 30, 2006. Earnings for the quarter were impacted by one-time merger related costs related to the acquisition and conversion of FNB, reduction in our workforce and costs associated with the closing of twelve of the Company's retail mortgage offices.
Franklin's allowance for credit losses was $16.8 million at September 30, 2007, or 0.42% of total loans held for investment. During the quarter, Franklin recorded provisions of $2.5 million and incurred net charge-offs against single family loans of $1.3 million. This resulted in an increase to the allowance of $1.2 million for the quarter ended September 30, 2007.
At September 30, 2007, $3.6 million of the allowance was allocated to single family loans, or 0.20% of single family portfolio loans and $13.2 million was allocated to commercial and consumer loans, or 0.61% of commercial and consumer loans compared to $3.3 million or 0.17% for single family loans and $12.3 million or 0.58% for commercial and consumer loans at June 30, 2007. For the quarter ended September 30, 2007, net-charge offs declined $483,000 when compared to the quarter ended June 30, 2007.
Nonperforming loans, as a percentage of total loans, are 0.39% of total loans and total $16.6 million as of September 30, 2007 compared to $16.3 million as of June 30, 2007. The allowance for credit losses is 101% of nonperforming loans.
Looking Forward
Franklin still expects earnings for the fourth quarter to be $0.34 to $0.36 per diluted share. "The increase in fourth quarter earnings per share compared to the third quarter is the result of increasing core earnings because of the accretive effect of the FNB acquisition and the full quarter impact of the cost savings resulting from the workforce reduction and retail mortgage office closures we mentioned previously," concluded Nocella.
Corporate Overview
Franklin Bank Corp., headquartered in Houston, Texas, was formed in April 2002. Franklin's common stock initiated trading on the NASDAQ in December 2003 under the ticker symbol FBTX. In May 2006, Franklin raised additional capital through a Preferred Stock offering that is now trading on the AMEX under the ticker symbol FBK-P.
Through its subsidiary, Franklin Bank, S.S.B., Franklin offers a wide variety of commercial products that allow it to serve customers in communities, as well as on a national basis. Franklin Bank focuses on providing high-quality personalized service through its "trusted financial advisors" and strives to meet all of the financial needs of its customers. In addition to various deposit and loan products, Franklin Bank offers retail brokerage and trust services. For more information, you can visit its website at http://www.bankfranklin.com/. Franklin Bank is FDIC insured and an equal housing lender.
Forward-Looking Information
This announcement includes forward-looking statements. These forward- looking statements include comments with respect to the goals, objectives, expectations, strategies, and the results of the company's operations and business. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. Franklin does not undertake, and hereby disclaims, any duty to update these forward-looking statements even though the situation and circumstances may change in the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of factors could cause future company results to differ materially from these statements.
Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which Franklin operates, and changes in economic, political, regulatory and technological conditions. Other specific risks related to Franklin include the following: potential inability to successfully implement its growth business strategy; the integration of businesses that may be acquired; Franklin's limited operating history; the potential unavailability of external financing; reliance on brokered deposits; the geographic concentration of its business, commercial real estate and consumer loan portfolios, including a significant concentration in California; the potential unavailability of single family loans for bulk purchase; the portion of the single family loan portfolio that is less than one year old; fraud and negligence by loan applicants and others with whom Franklin does business; credit risk associated with smaller borrowers in its mortgage banker finance operation; the effect of changes in the extensive regulatory scheme to which the company is subject; the possibility that allowance for credit losses may be insufficient to cover actual losses; interruption in or breach of the information systems; the potential inability to obtain the third-party information services on which it relies; and environmental risks associated with foreclosure on real estate properties. Franklin cautions that the foregoing list is not exhaustive. Investors should carefully consider the aforementioned factors as well as other uncertainties and events.
Conference Call
A conference call to discuss the financial results will be held on Tuesday, October 30, 2007, at 10:00 a.m. CT and will be hosted by Anthony J. Nocella, President and Chief Executive Officer. The telephone number for the conference call is 1-877-719-9786. Participants calling from outside the United States may dial 1-719-325-4778. The passcode "4989553" is required to access the call. Please call in 10 minutes before the call to avoid being unable to enter the call on time. A recording of the conference call will be available after 2 p.m. CT on Tuesday, October 30, 2007 through midnight on November 13, 2007. The recorded message will be available at 1-888-203-1112. Participants calling from outside the United States may dial 1-719-457-0820. The passcode "4989553" is required to access the replay of the call.
FRANKLIN BANK CORP.
CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)
September 30, June 30, September 30,
2007 2007 2006
Assets
Cash and cash equivalents $201,357 $189,905 $63,352
Trading securities 93,382 128,543 -
Securities held to maturity, at
amortized cost 384,563 166,580 -
Securities available for sale, at
fair value 227,005 251,492 362,544
FHLB stock and other investments 91,405 86,516 87,927
Loans, net
Single family 1,941,191 2,073,186 2,778,650
Commercial 1,980,085 1,958,691 1,537,167
Consumer 333,293 216,273 110,329
Allowance for credit losses (16,825) (15,640) (14,212)
Loans, net 4,237,744 4,232,510 4,411,934
Goodwill 251,876 251,588 149,858
Other intangible assets, net 33,791 33,399 13,809
Premises and equipment, net 38,072 37,836 27,411
Real estate owned 39,032 31,199 20,259
Other assets 148,414 136,197 36,108
Total assets $5,746,641 $5,545,765 $5,173,202
Liabilities
Deposits $2,883,477 $2,783,918 $2,562,362
FHLB advances 2,107,249 1,977,310 2,018,290
Convertible senior notes 82,758 97,335 -
Subordinated notes 123,238 123,184 108,059
Other liabilities 71,755 94,483 48,521
Total liabilities 5,268,477 5,076,230 4,737,232
Stockholders' equity
Preferred stock 86,250 86,250 86,250
Common stock 254 253 235
Paid-in capital 306,217 305,482 280,125
Retained earnings 86,614 79,066 71,392
Accumulated other
comprehensive income:
- Unrealized gains (losses) on
securities available for
sale, net (1,171) (1,516) (2,032)
Total stockholders' equity 478,164 469,535 435,970
$5,746,641 $5,545,765 $5,173,202
FRANKLIN BANK CORP.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Quarter Ended
September 30, June 30, September 30,
2007 2007 2006
Interest income
Cash equivalents and short-term
investments $2,818 $2,358 $1,630
Trading securities 1,527 1,953 -
Securities 7,592 4,337 4,827
Loans 74,294 72,785 68,785
Total interest income 86,231 81,433 75,242
Interest expense
Deposits 28,766 27,108 27,120
FHLB advances 26,706 25,659 24,120
Convertible senior notes 1,064 785 -
Subordinated notes 2,309 2,207 1,939
Other 8 3 -
Total interest expense 58,853 55,762 53,179
Net interest income 27,378 25,671 22,063
Provision for credit losses 2,539 907 607
Net interest income after provision
for credit losses 24,839 24,764 21,456
Non-interest income
Loan fee income 2,023 2,546 1,746
Deposit fees 2,865 2,377 1,703
Gain on sale of single family loans
and
mortgage servicing rights
valuation, net 947 1,186 1,733
Gain on early extinguishment of debt 2,334 - -
Bank owned life insurance 1,003 1,035 65
Other 1,059 757 1,454
Total non-interest income 10,231 7,901 6,701
Non-interest expense
Salaries and benefits 10,446 9,889 8,036
Data processing 2,049 1,969 1,650
Occupancy 2,469 2,232 1,979
Professional fees 1,077 1,069 868
Loan expenses 784 382 591
Core deposit amortization 804 643 327
Real estate owned 540 406 1,856
Other 3,221 2,948 2,235
Total non-interest expenses 21,390 19,538 17,542
Income before taxes 13,680 13,127 10,615
Income tax expense 4,514 4,409 3,871
Net income $9,166 $8,718 $6,744
Net income available to common
stockholders $7,549 $7,101 $5,127
Basic earnings per common share $0.30 $0.30 $0.22
Diluted earnings per common share $0.30 $0.30 $0.21
FRANKLIN BANK CORP.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Nine Months Ended September 30,
2007 2006
Interest income
Cash equivalents and short-term investments $8,464 $5,731
Trading securities 5,529 -
Securities 14,444 13,920
Loans 217,213 189,610
Total interest income 245,650 209,261
Interest expense
Deposits 82,656 68,405
FHLB advances 79,421 66,063
Convertible senior notes 1,849 -
Subordinated notes 6,518 5,447
Other 11 132
Total interest expense 170,455 140,047
Net interest income 75,195 69,214
Provision for credit losses 4,061 1,364
Net interest income after provision
for credit losses 71,134 67,850
Non-interest income
Loan fee income 6,407 5,077
Deposit fees 6,893 4,653
Gain on sale of single family loans and
mortgage servicing rights valuation, net 3,421 4,652
Gain on early extinguishment of debt 2,334 -
Bank owned life insurance 3,126 191
Other 2,498 2,413
Total non-interest income 24,679 16,986
Non-interest expense
Salaries and benefits 29,124 26,028
Data processing 5,304 5,299
Occupancy 6,501 5,591
Professional fees 2,878 2,150
Loan expenses 1,676 1,885
Core deposit amortization 1,768 697
Real estate owned 1,467 2,004
Other 8,735 6,888
Total non-interest expenses 57,453 50,542
Income before taxes 38,360 34,294
Income tax expense 12,659 12,519
Net income $25,701 $21,775
Net income available to common stock
shareholders $20,850 $19,529
Basic earnings per common share $0.87 $0.83
Diluted earnings per common share $0.86 $0.81
FRANKLIN BANK CORP.
YIELD ANALYSIS
(dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $106,396 $1,641 6.04%
Trading securities 109,844 1,527 5.52
FHLB stock and other investments 87,694 1,177 5.32
Securities available for sale 270,118 3,742 5.54
Securities held to maturity 256,811 3,850 6.00
Loans
Single family 2,002,369 29,309 5.85
Builder lines 1,270,876 27,070 8.45
Commercial real estate 495,434 9,824 7.87
Mortgage banker finance 105,790 2,034 7.63
Commercial business 79,138 1,471 7.38
Consumer 253,250 4,586 7.19
Total loans 4,206,857 74,294 7.01
Total interest-earning assets 5,037,720 86,231 6.79
Non-interest-earning assets 563,958
Total assets $5,601,678
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $243,397 $1,578 2.57%
Money market and savings 409,047 3,511 3.41
Certificates of deposit 1,059,804 12,641 4.73
Non-interest bearing deposits 304,251 - -
Total community banking 2,016,499 17,730 3.49
Wholesale and money desk 821,640 11,036 5.33
Total deposits 2,838,139 28,766 4.02
FHLB advances 2,015,224 26,706 5.19
Convertible senior notes 95,347 1,064 4.37
Subordinated notes 123,202 2,309 7.33
Other borrowings 724 8 4.24
Total interest-bearing
liabilities 5,072,636 58,853 4.57
Non-interest-bearing liabilities and
stockholder's equity 529,042
Total liabilities and
stockholder's equity $5,601,678
Net interest income/interest rate
spread $27,378 2.22%
Net yield on interest-earning assets 2.19%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 99.31%
Quarter Ended
June 30, 2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $86,257 $1,123 5.15%
Trading securities 141,899 1,953 5.52
FHLB stock and other investments 84,373 1,235 5.87
Securities available for sale 229,381 2,968 5.18
Securities held to maturity 93,718 1,369 5.84
Loans
Single family 2,112,725 31,377 5.94
Builder lines 1,247,554 26,162 8.41
Commercial real estate 438,199 8,328 7.62
Mortgage banker finance 122,393 2,292 7.51
Commercial business 61,372 1,165 7.61
Consumer 186,148 3,461 7.46
Total loans 4,168,391 72,785 7.00
Total interest-earning assets 4,804,019 81,433 6.80
Non-interest-earning assets 486,150
Total assets $5,290,169
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $195,706 $1,004 2.06%
Money market and savings 348,724 2,989 3.44
Certificates of deposit 974,229 11,391 4.69
Non-interest bearing deposits 251,937 - -
Total community banking 1,770,596 15,384 3.49
Wholesale and money desk 875,881 11,724 5.37
Total deposits 2,646,477 27,108 4.11
FHLB advances 1,955,338 25,659 5.19
Convertible senior notes 79,262 785 3.92
Subordinated notes 118,865 2,207 7.34
Other borrowings 352 3 3.84
Total interest-bearing
liabilities 4,800,294 55,762 4.63
Non-interest-bearing liabilities and
stockholder's equity 489,875
Total liabilities and
stockholder's equity $5,290,169
Net interest income/interest rate
spread $25,671 2.17%
Net yield on interest-earning assets 2.17%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 100.08%
Quarter Ended
September 30, 2006
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $41,942 $537 5.01%
Trading securities - - -
FHLB stock and other investments 87,074 1,093 4.98
Securities available for sale 371,802 4,827 5.19
Securities held to maturity - - -
Loans
Single family 2,854,474 38,497 5.39
Builder lines 952,046 20,488 8.54
Commercial real estate 233,864 4,518 7.66
Mortgage banker finance 152,745 2,837 7.37
Commercial business 38,339 686 7.10
Consumer 94,240 1,759 7.41
Total loans 4,325,708 68,785 6.34
Total interest-earning assets 4,826,526 75,242 6.21
Non-interest-earning assets 286,624
Total assets $5,113,150
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $160,889 $610 1.50%
Money market and savings 248,356 1,855 2.96
Certificates of deposit 805,968 8,401 4.14
Non-interest bearing deposits 148,884 - -
Total community banking 1,364,097 10,866 3.16
Wholesale and money desk 1,225,121 16,254 5.26
Total deposits 2,589,218 27,120 4.16
FHLB advances 1,940,504 24,120 4.86
Convertible senior notes - - -
Subordinated notes 108,038 1,939 7.02
Other borrowings - - -
Total interest-bearing
liabilities 4,637,760 53,179 4.52
Non-interest-bearing liabilities and
stockholder's equity 475,390
Total liabilities and
stockholder's equity $5,113,150
Net interest income/interest rate
spread $22,063 1.69%
Net yield on interest-earning assets 1.87%
Ratio of average interest-earning assets
to average interest-bearing liabilities 104.07%
FRANKLIN BANK CORP.
YEAR-TO-DATE RATE VOLUME
(dollars in thousands)
(Unaudited)
Nine Months Ended September 30,
2007
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $117,693 $4,834 5.42%
Trading securities 133,872 5,529 5.52
FHLB stock and other investments 88,423 3,630 5.49
Securities available for sale 232,792 9,226 5.28
Securities held to maturity 117,784 5,218 5.91
Loans
Single family 2,145,446 93,203 5.79
Builder lines 1,243,891 78,597 8.45
Commercial real estate 436,116 25,223 7.73
Mortgage banker finance 120,674 6,808 7.54
Commercial business 59,688 3,314 7.42
Consumer 183,252 10,068 7.35
Total loans 4,189,067 217,213 6.92
Total interest-earning assets 4,879,631 245,650 6.72
Non-interest-earning assets 470,050
Total assets $5,349,681
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $199,814 $3,254 2.18%
Money market and savings 340,743 8,583 3.37
Certificates of deposit 970,457 34,018 4.69
Non-interest bearing deposits 234,909 - -
Total community banking 1,745,923 45,855 3.51
Wholesale and money desk 916,131 36,801 5.37
Total deposits 2,662,054 82,656 4.15
FHLB advances 2,009,858 79,421 5.24
Convertible senior notes 58,552 1,849 4.21
Subordinated notes 116,779 6,518 7.36
Other borrowings 361 11 4.17
Total interest-bearing
liabilities 4,847,604 170,455 4.68
Non-interest-bearing liabilities and
stockholder's equity 502,077
Total liabilities and
stockholder's equity $5,349,681
Net interest income/interest rate
spread $75,195 2.04%
Net yield on interest-earning assets 2.07%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 100.66%
Nine Months Ended September 30,
2006
Interest Average
Average Income/ Yield/
Balance Expense Rate
Interest-Earning Assets
Short-term interest earning assets $72,609 $2,598 4.72%
Trading securities - - -
FHLB stock and other investments 87,592 3,133 4.78
Securities available for sale 369,052 13,920 5.03
Securities held to maturity - - -
Loans
Single family 2,781,579 110,727 5.31
Builder lines 848,719 51,903 8.18
Commercial real estate 213,050 11,887 7.46
Mortgage banker finance 155,424 8,055 6.93
Commercial business 39,240 2,029 6.91
Consumer 92,864 5,009 7.21
Total loans 4,130,876 189,610 6.13
Total interest-earning assets 4,660,129 209,261 5.99
Non-interest-earning assets 288,542
Total assets $4,948,671
Interest-Bearing Liabilities
Deposits
Community banking
Checking accounts $180,279 $2,086 1.55%
Money market and savings 244,852 4,854 2.65
Certificates of deposit 759,830 21,954 3.86
Non-interest bearing deposits 155,341 - -
Total community banking 1,340,302 28,894 2.88
Wholesale and money desk 1,091,460 39,511 4.84
Total deposits 2,431,762 68,405 3.76
FHLB advances 1,979,972 66,063 4.40
Convertible senior notes - - -
Subordinated notes 108,005 5,447 6.65
Other borrowings 2,930 132 5.94
Total interest-bearing
liabilities 4,522,669 140,047 4.11
Non-interest-bearing liabilities and
stockholder's equity 426,002
Total liabilities and
stockholder's equity $4,948,671
Net interest income/interest rate
spread $69,214 1.88%
Net yield on interest-earning assets 2.00%
Ratio of average interest-earning
assets to average interest-bearing
liabilities 103.04%
FRANKLIN BANK CORP.
FINANCIAL HIGHLIGHTS
(dollars in thousands except per share data)
(Unaudited)
Quarter Ended
September 30, June 30, September 30,
2007 2007 2006
Common share data
Ending shares outstanding 25,370,936 25,345,500 23,541,080
Average shares outstanding-
basic 25,038,937 23,523,391 23,476,260
Average shares outstanding-
diluted 25,142,208 23,873,023 24,086,350
Basic earnings per share $0.30 $0.30 $0.22
Diluted earnings per share 0.30 0.30 0.21
Common book value (period end) $15.74 $15.43 $15.07
Common tangible book value
(period end) 5.15 4.81 8.12
Average balances
Assets $5,601,678 $5,290,169 $5,113,150
Interest-earning assets 5,037,720 4,804,019 4,826,526
Interest-bearing liabilities 5,072,636 4,800,294 4,637,760
Ratios
ROAA 0.65% 0.66% 0.52%
ROACE 9.30% 9.56% 6.19%
Net interest spread 2.22% 2.17% 1.69%
Net yield on interest-earning
assets 2.19% 2.17% 1.87%
Efficiency Ratio 58.67% 56.28% 59.85%
Equity to assets (period end) 8.32% 8.47% 8.43%
Equity to assets (average) 8.46% 8.49% 8.45%
Tangible equity to tangible
assets (incl. prfd) 3.82% 3.79% 5.56%
Capital ratios - (bank only):
Leverage ratio 7.24% 7.49% 7.63%
Tier 1 risk-based capital ratio 9.71% 9.85% 10.92%
Total risk-based capital ratio 10.52% 10.65% 11.33%
Asset quality
Nonperforming Loans ("NPLs") $16,632 $16,324 $14,478
REO 38,739 30,870 19,456
Nonperforming Assets ("NPAs") $55,371 $47,194 $33,934
NPLs as % of loans 0.39% 0.38% 0.33%
NPAs as % of assets 0.96% 0.85% 0.66%
Allowance to period end loan balance 0.40% 0.37% 0.32%
Allowance to average loan balance 0.40% 0.38% 0.33%
Branch and employee data
Full-time equivalent employees 788 860 624
Banking offices 46 46 36
Commercial lending offices 7 9 9
Retail mortgage offices 45 55 38
Wholesale mortgage origination offices 0 0 2
Loan portfolio
Held for sale
Single family $71,391 $110,641 $185,254
Student loans 155,475 38,147 -
Total held for sale $226,866 $148,788 $185,254
Held for investment
Single family 1,869,800 1,962,545 2,593,396
Builder lines 1,286,024 1,269,742 1,043,571
Other commercial 694,061 688,949 493,596
Consumer 177,818 178,126 110,329
Allowance for credit losses (16,825) (15,640) (14,212)
Total held for investment $4,010,878 $4,083,722 $4,226,680
Deposits
Community banking $2,042,554 $1,963,503 $1,367,149
Wholesale and money desk 840,923 820,415 1,195,213
Total deposits $2,883,477 $2,783,918 $2,562,362
FRANKLIN BANK CORP.
FINANCIAL HIGHLIGHTS
(dollars in thousands except per share data)
(Unaudited)
Nine Months Ended September 30,
2007 2006
Common share data
Ending shares outstanding 25,370,936 23,541,080
Average shares outstanding-basic 24,006,231 23,430,147
Average shares outstanding-diluted 24,291,905 23,991,567
Basic earnings per share $0.87 $0.83
Diluted earnings per share 0.86 0.81
Common book value (period end) $15.74 $15.07
Common tangible book value (period end) 5.15 8.12
Average balances
Assets $5,349,681 $4,948,671
Interest-earning assets 4,879,631 4,660,129
Interest-bearing liabilities 4,847,604 4,522,669
Ratios
ROAA 0.64% 0.59%
ROACE 9.30% 7.60%
Net interest spread 2.04% 1.88%
Net yield on interest-earning assets 2.07% 2.00%
Efficiency Ratio 57.20% 57.82%
Equity to assets (period end) 8.32% 8.43%
Equity to assets (average) 8.46% 7.75%
Tangible equity to tangible assets
(incl. prfd) 3.82% 5.56%
Capital ratios - (bank only):
Leverage ratio 7.24% 7.63%
Tier 1 risk-based capital ratio 9.71% 10.92%
Total risk-based capital ratio 10.52% 11.33%
Asset quality
Nonperforming Loans ("NPLs") $16,632 $14,478
REO 38,739 19,456
Nonperforming Assets ("NPAs") $55,371 $33,934
NPLs as % of loans 0.39% 0.33%
NPAs as % of assets 0.96% 0.66%
Allowance to period end loan balance 0.40% 0.32%
Allowance to average loan balance 0.40% 0.34%
Branch and employee data
Full-time equivalent employees 788 624
Banking offices 46 36
Commercial lending offices 7 9
Retail mortgage offices 45 38
Wholesale mortgage origination offices 0 2
Loan portfolio
Held for sale
Single family $71,391 $185,254
Student loans 155,475 -
Total held for sale $226,866 $185,254
Held for investment
Single family 1,869,800 2,593,396
Builder lines 1,286,024 1,043,571
Other commercial 694,061 493,596
Consumer 177,818 110,329
Allowance for credit losses (16,825) (14,212)
Total held for investment $4,010,878 $4,226,680
Deposits
Community banking $2,042,554 $1,367,149
Wholesale and money desk 840,923 1,195,213
Total deposits $2,883,477 $2,562,362
http://www.newscom.com/cgi-bin/prnh/20060108/FBCLOGO
http://photoarchive.ap.org/
DATASOURCE: Franklin Bank Corp.
CONTACT: Russell McCann of Franklin Bank Corp., +1-713-339-8999
Web site: http://www.bankfranklin.com/