The parent company of Franklin Synergy Bank posted a profit of $2.0 million in the three months ended June 30, an increase of 74 percent from the number of a year ago, as the lender continued to grow its loan portfolio at a solid clip.
Total loans at seven-year-old Franklin Synergy ended the quarter at almost $486 million, up more than 8 percent from March and almost 45 percent from mid-year 2013. Bank officials said residential construction loans was their main growth driver but added that "small business lending picked up significantly during the quarter." That helped drive net interest income to $7.3 million for the quarter, up from $4.9 million in Q2 of last year, but also necessitated a more than doubling of the bank's loan loss provision to $440,000.
“We remain on target for soundness, profitability and growth,” said Richard Herrington, president of Franklin Financial Network. “The growth in net income was even more impressive considering that second quarter earnings were impacted by non-recurring costs related to the bank’s recently completed acquisition of MidSouth Bank.”
On the credit quality front, Herrington and his team said nonperforming assets now stand at 0.3 percent of total assets and that nonaccrual loans totaled $1.4 million at June 30 compared with $2.7 million a year earlier. The full earnings release is available here.
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