- 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/
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