EXHIBIT 99.1
NEWS RELEASE...NEWS RELEASE...NEWS RELEASE
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
Date: April 24, 2003 Kristy Williams 615-595-5531
David McCurrach 615-591-1059
FRANKLIN FINANCIAL REPORTS EARNINGS GROWTH
FRANKLIN, TENNESSEE, APRIL 24, 2003 - For the quarter ended March 31, 2003,
Franklin Financial Corporation (Nasdaq: "FNFN") earned $2.89 million. This is a
10.7% increase in net income over the same period in 2002. On a per share
basis, the 2003 first quarter earnings were $.35, compared to $.33 per share
for the first quarter 2002. Franklin Financial Corporation is the parent
company of Franklin National Bank.
As of March 31, 2003, loans outstanding totaled $552.7 million and deposits
were $735.0 million. Compared to March 2002, this is an increase of 17.5% and
14.0%, respectively.
"We continue to strive to enhance shareholder value by achieving strong
earnings growth while maintaining high asset quality," commented Gordon E.
Inman, Chairman, President & CEO for Franklin Financial Corporation. "The
strength and performance of our organization promises a bright future for all
involved from our customers to our employees to our shareholders."
Franklin Financial Corporation in December 2002 raised its quarterly dividend
to $.05775 per share, representing a 5% increase from third quarter of 2002.
On May 1, 2001, the common stock of Franklin Financial Corporation began
trading on the Nasdaq National Market. Corporate data may be found on the
Internet at www.fnfn.net.
Franklin National Bank operates nine retail branches with ATM's in Williamson,
Davidson, and Maury counties. The bank's Internet site is
FranklinNetBranch.com. In addition to Franklin National Bank, Franklin
Financial Corporation is the parent company of Franklin Financial Mortgage,
Franklin Financial Insurance Agency, and Franklin Financial Securities.
On July 24, 2002, Fifth Third Bancorp (Nasdaq: FITB-News) and Franklin
Financial Corporation announced the signing of a definitive agreement in which
Fifth Third will acquire Franklin Financial Corporation and its subsidiary,
Franklin National Bank, headquartered in Franklin, Tennessee. On March 27,
2003, the definitive agreement was amended to extend the termination date to
June 30, 2004 and to revise the exchange ratio.
THE STATEMENTS CONTAINED IN THIS RELEASE WHICH ARE NOT HISTORICAL FACTS ARE
FORWARD-LOOKING STATEMENTS MADE PURSUANT
TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. FORWARD-LOOKING STATEMENTS DESCRIBING FRANKLIN FINANCIAL CORPORATION'S
FUTURE PLANS, PROJECTIONS, STRATEGIES AND EXPECTATIONS, ARE BASED ON
ASSUMPTIONS AND INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES, MANY OF WHICH ARE
BEYOND FRANKLIN FINANCIAL CORPORATION'S CONTROL. ACTUAL RESULTS COULD DIFFER
MATERIALLY FROM THOSE PROJECTED DUE TO CHANGES IN INTEREST RATES, COMPETITION
IN THE INDUSTRY, CHANGES IN LOCAL AND NATIONAL ECONOMIC CONDITIONS AND VARIOUS
OTHER FACTORS. ADDITIONAL INFORMATION CONCERNING SUCH FACTORS, WHICH COULD
AFFECT FRANKLIN FINANCIAL CORPORATION, IS CONTAINED IN FRANKLIN FINANCIAL
CORPORATION'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
FRANKLIN FINANCIAL CORPORATION
(ALL DOLLARS IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2003 2002
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AVERAGE BALANCES
Loans $546,675 $448,486
Securities 262,174 257,278
Earning Assets 830,447 709,816
Total Assets 869,126 746,871
Demand Deposits 78,716 52,502
Interest-Bearing Deposits 659,248 572,219
Total Deposits 737,964 624,721
Shareholders' Equity 50,312 36,105
KEY PERFORMANCE RATIOS
Return on Average Assets (Annualized) 1.33% 1.40%
Return on Average Equity (Annualized) 22.98 28.92
Net Interest Margin 3.76 4.44
Efficiency Ratio 49.40 51.96
ASSET QUALITY DATA
Nonperforming Assets $ 7,226 $ 5,695
Allowance for Loan and Lease Losses 5,935 4,593
Net Charge-Offs/ (Recoveries) 745 326
Nonperforming Assets to Total Loans 1.31% 1.21%
Allowance for Loan and Lease Losses to
Period-End Loans 1.07 0.98
Net Charge-Offs/ (Recoveries) to
Average Loans 0.14 0.07
FRANKLIN FINANCIAL CORPORATION
(ALL DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
--------------------------------------------
Percent
2003 2002 Change
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Income Statement
Interest income $ 11,874 $12,477 (4.8)
Interest expense 4,060 4,605 (11.8)
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Net interest income 7,814 7,872 (0.7)
Provision for loan losses 920 650 41.5
Non-interest income 3,067 1,950 57.3
Non-interest expense 5,463 5,177 5.5
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Income before income taxes 4,498 3,995 12.6
Income taxes 1,608 1,385 16.1
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Net income $ 2,890 $ 2,610 10.7
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Per Share Data
Basic $ 0.35 $ 0.33 6.9
Diluted 0.33 0.30 10.0
Cash Dividends 0.05775 0.055 5.0
Common book value per share 6.29 4.66 35.1
Weighted average shares outstanding
Basic 8,143 7,859 3.6
Diluted 8,845 8,677 1.9
FRANKLIN FINANCIAL CORPORATION
(ALL DOLLARS IN THOUSANDS)
(UNAUDITED)
Balance Sheet Summary March 31, Percent
2003 2002 Change
--------- --------- -------
Assets
Cash and cash equivalents $ 33,924 $ 21,926 54.7
Federal funds sold -- 276 (100.0)
Securities 283,110 254,889 11.1
Loans 552,700 407,244 17.5
Allowance for loan losses (5,935) (4,593) 29.2
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Net loans 546,765 465,651 17.4
Other assets 23,564 25,893 (9.0)
Total assets $ 887,363 $ 768,635 15.4
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Liabilities and stockholders' equity
Deposits $ 735,031 $ 644,948 14.0
Other borrowings 94,455 82,808 14.1
Other liabilities 5,803 4,078 42.3
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Total liabilities 835,289 731,834 14.1
Total stockholders' equity 52,074 36,801 41.5
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Total liabilities and stockholders' equity $ 887,363 $ 768,635 15.4
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