Investors Update: Franklin Financial Network, Inc. (NYSE: FSB)

On Friday, Franklin Financial Network, Inc. (NYSE: FSB) stock observed trading -13.87% off 52-week high price. On the other end, the stock has been noted 23.15% away from low price over the last 52-weeks. The stock disclosed a move of 4.88% away from 50 day moving average and 6.40% away from 200 day moving average. Moving closer, we can see that shares have been trading 3.55% off 20-day moving average. It has market cap of $450.49M and dividend yield of 0.51%.

Franklin Financial Network, Inc.  (FSB) stated net income of $11.3M, or $0.75 per diluted ordinary share, for the quarter-ended September 30, 2019, contrast to $10.5M, or $0.70 per diluted ordinary share, for the quarter-ended September 30, 2018.

Pre-tax pre-provision profit was $14.4M, representing an annualized increase of 46.8% from the second quarter of 2019 and a 22.9% increase from the third quarter of 2018. Core net income for the quarter-ended September 30, 2019 was $10.9M, or $0.72 per diluted ordinary share, contrast to $10.5M, or $0.70 per diluted ordinary share, for the quarter-ended September 30, 2018.

Key Highlights and Recent Developments

  • Net interest margin (tax-equivalent basis) improved to 2.98%, an expansion of 14 basis points from last quarter and 28 basis points year-over-year
  • SNC reduction of $86.7M to $144.5M, or 5.2% of loans HFI, which stands at the lowest concentration of loans HFI since the second quarter of 2018
  • Continued optimization and deleveraging of non-core balance sheet with $221.7M securities reduction to 16.0% of total assets; securities have been reduced by $707.4M since September 30, 2018 when securities represented 31.7% of total assets
  • Retail & other deposit growth of $225.8M, or 58.5% annualized and 14.5% year-over-year; reduction of $109.7M in brokered deposits, or 33.6% year-over-year
  • Tangible book value per share of $26.61, up 15.5% annualized and 14.8% year-over-year

Continued Focus on Reducing Non-Core Assets and Liabilities

Driven by the predictable reduction in SNCs and anticipated construction loan paydowns, loans HFI reduced $84.2M from the second quarter of 2019, or 11.6% annualized, and increased $246.1M year-over-year, or 9.7%. Non-SNC-related loan growth was $2.5M, or 0.4% annualized from the second quarter of 2019.

Total deposits reduced by $84.7M, or 10.7% annualized from the second quarter of 2019 and by $309.6M, or 9.2% from the third quarter of 2018, reflecting a deliberate reduction in non-core deposits as a part of the Company’s continued balance sheet optimization. As a part of this effort, brokered deposits reduced $109.7M from the second quarter of 2019, an annualized decline of 62.3%, and reciprocal deposits reduced by $70.1M, to $366.4M, or 63.8% annualized, while during the same time period, retail and other deposits grew $225.8M, or 58.5% annualized and 14.5% year-over-year.

Largely as a result of the deliberate reduction in non-core funding and securities, net interest income increased to $28.3M for the third quarter of 2019, or 13.0% annualized, contrast to the second quarter of 2019, and increased $1.7M contrast to the third quarter of 2018, representing a 6.4% year-over-year increase.

The USA based company Franklin Financial Network, Inc. moved with change of 0.58% to $31.09 with the total traded volume of 75501 shares in recent session versus to an average volume of 68.71K. The stock was observed in the 5 days activity at 3.98%. The one month performance of stock was 2.44%. FSB’s shares are at 10.25% for the quarter and driving a -13.20% return over the course of the past year and is now at 17.90% since this point in 2018.  Right now the stock beta is 1.3. The average volatility for the week and month was at 1.70% and 1.97% respectively. There are 14.49M shares outstanding and 13.42M shares are floated in market.

 

Ronald Hemphill

Ronald Hemphill– Business Stories My Name is Ronald Hemphill and I am also the main source from the ‘Journalnewsbulletin.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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