Franklin Synergy Bank Reports Second Quarter 2009 Results

Franklin, TN - August 16, 2009 - Franklin Synergy Bank today reported a profit of $61 thousand for the quarter ended June 30, 2009. This marks the bank’s second profitable quarter in its nineteen month history.

The bank earned its first quarterly profit in the first quarter 2009. Net income for the first quarter was $301 thousand. Year-to-date, the bank’s earnings were $362 thousand.

“Our second quarter performance reflects three factors that impacted our profits, resulting in reduced profits as compared to the first quarter. During the second quarter, we took the opportunity to build the allowance for loan losses, we expensed FDIC’s special insurance assessment imposed on all banks, and we recognized a loss on corporate debt to Silverton Bank, N. A., after it was placed in receivership by the Office of the Comptroller of the Currency,” said Richard Herrington, president of Franklin Synergy. “Our capital position remains strong and we believe our growth opportunities remain strong as well.”

The second quarter profit compares with a net loss of $324 thousand in the second quarter 2008. For the first six months of 2008, the bank reported a loss of $901 thousand.

“The bank’s focus for our starting years is to quickly build a critical mass of loans and deposits that will be the foundation of our bank’s long-term profitability,” added Herrington. “We are pleased with both our growth and profitability.”

Assets totaled $235 million at June 30, 2009. This compares to $113 million at June 30, 2008, an annual growth rate of 108.0%. Compared to June 30, 2008, loans have increased 209.2% and deposits have grown 134.4%.

“Increased mortgage banking activity was a significant factor in our results in the first half of 2009s,” explained Herrington. “The mortgage refinance environment was a primary contributor in the early 2009 months. Now, the Williamson County real estate market is showing increased vitality.”

The bank reached the $200 million milestone in deposits on July 15, 2009. Franklin Synergy Bank opened its first office in November 2007 in Cool Springs and earned its first profit in the first quarter of 2009. The bank reached $100 million in deposits in October 2008, the same month Franklin Synergy opened an office in the Bennett House in downtown Franklin. An office and headquarter operation currently under construction on Columbia Avenue in Franklin, opens in 2010. In addition, Franklin Synergy operates a mortgage office in Synergy Business Park in Brentwood.