Franklin Synergy Bank Reports Continued Profit, Loan and Deposit Growth in Fourth Quarter 2012

Franklin, TN - January 29, 2013 - Franklin Synergy Bank reported a sixteenth consecutive profitable quarter today, capping the bank’s fifth year of operation. For the quarter ended December 31, 2012, the bank reported net income of $1.6 million, a 45.5% increase compared to $1.1 million in the fourth quarter of 2011.

Founded in November 2007, Franklin Synergy Bank reported 2012 year-to-date net income of $4.2 million, compared to $2.7 million in 2011, an increase of 55.6%.

The bank’s net income of $1.6 million for the fourth quarter represents an increase of 45.5% compared to $1.1 million in the third quarter of 2012.

“The earnings comparisons remain somewhat distorted because we were not fully taxable until the first quarter of this year,” explained Franklin Synergy Bank president Richard Herrington.

On a pre-tax basis, year-to-date net income was $6.7 million, which represents an increase of $4.0 million or 148.2% compared to year to date 2011.

Herrington attributed the bank’s financial results to growth in loans, deposits and mortgage production. In addition, he noted growing economies of scale as one of the drivers of the bank’s increased profitability.

“Our mortgage division had a great year, fueled by growth in local home sales as well as the addition of experienced mortgage originators. Mortgage production was up 82% over 2011 mortgage production.”

Ending 2012 at $315 million, loans grew by more than 34% over 2011.Deposits grew by $72 million during the quarter, topping $500 million for the first time, to end the year at $515 million. Total assets were $577 million at December 31, a 24% jump over December 2011.

The bank reported an increase of $4.4 million, or 88.3% in non-interest income over 2011, due primarily to mortgage production. Net interest margins suffered due to the low interest rate environment.

Recent deposit share of market data shows that Franklin Synergy Bank was grown to the fifth largest banking doing business in Williamson County. In specific markets, the bank is the top market share bank in the city of Franklin and ranks second in the Cool Springs market.

“Our bankers continue to identify loan and deposit opportunities in our community, including those in areas identified by the bank for future growth, added Herrington. “Our Spring Hill office will open in February while a planned office in Berry Farms is slated for later this year. We are on track as we begin our sixth year of operation in a significantly strengthened position.”