January 2009 E-News Bulletin

January 2009 E-News Bulletin

Interest Rate Confusion

Confused about interest rates? If you are, I can assure you that investment professionals, economists, and Wall Street “gurus” are similarly challenged by the level and direction of interest rates throughout the spectrum of maturities.

When in doubt, it is helpful to remember basic interest rate principles, which tell us that interest rates:

  • Do not move in the same direction
  • Do not move at the same time
  • Do not move in the same magnitude

The interest rate confusion today stems from two sources:

  • The Federal Reserve Bank, which has primary influence on short-term rates, has pushed that part of the yield curve to unprecedented low levels (the overnight rate between banks is .25%)
  • It appears that our leaders in Washington have decided that a key way to solve our current economic distress is to stimulate the housing market by driving mortgage rates to historically low levels

Yet, other rates have not followed short-term and mortgage rates. This is frustrating to savers, investors, and non-mortgage borrowers.

In the current environment, we have two suggestions for our customers and friends:

  • With mortgage rates so low, refinancing your home mortgage may make sense. Sally Bowers, EVP and Mortgage Division Manager, has written a guideline for you to consider when contemplating refinancing. (This guideline is included in this newsletter.) If you determine that refinancing now makes sense, please call one of our mortgage professionals at (615) 564-6400 to review your specific needs.
  • For deposit customers and non-mortgage borrowers, please contact one of our Franklin Synergy bankers at (615) 236-BANK (2265). We can’t tell you where interest rates will be next month or next year, but we can identify your best options in today’s market and discuss interest rate risks for the future.

Franklin Synergy Bank had a very successful first full operating year in 2008. We finished the year with assets totaling over $190 million, deposits over $140 million, and loans of $91 million. These financial results are outstanding for a bank that is just 13 months old!

We could not have achieved these extraordinary results without the loyal support of shareholders, customers, and the community. Thank you

Richard Herrington

Market Rates


When does it make sense to refinance?
Sally Bowers, EVP, Mortgage Division

Falling interest rates are leading consumers to rush to refinance their home mortgages. Interest rates are at historic lows, helping homeowners in a position to refinance. Many of our customers have asked us if the time is right for them to refinance. Much depends on individual circumstances and Franklin Synergy Bank can assist you with weighing the advantages of refinancing now.

There are many reasons to replace an existing loan on your home and many considerations that go into a decision to refinance. They include:

  • The type of mortgage you currently have, fixed rate or adjustable – if you’re in a high-rate adjustable mortgage, it might make sense to seek a low rate fixed mortgage
  • The interest rate of your current mortgage – you’ll need advice to weigh the benefits of a lower rate taking into account closing costs spread over the life of the loan
  • How long you plan to remain in your home
  • How much equity you currently have in your home – if it is more than 20%, refinancing is a much more attractive option
  • Your current need for cash – how much can you save by refinancing?
Your Franklin Synergy mortgage banker can help you decide if it is in your best interest to consider refinancing your home. If it’s not in your best interest right now, your Franklin Synergy banker can keep you informed about changing conditions and advise you when the time is right. When you’re armed with knowledge, making the decision to act is simple; plus Franklin Synergy Bank will smooth the process. Call the Franklin Synergy Bank Mortgage experts at (615) 564-6400 or (615) 236-BANK.

Now open in Synergy Park in Brentwood
7101 Executive Center Drive, Suite 110





Rose Bowl Parade and New Year’s Extravaganza!

Our Dec 30th trip to the 120th Annual Tournament of Roses Parade was a smashing adventure! Our intrepid travelers enjoyed the Parade as well as the Showcase of Floats, the Reagan Library in Simi Valley, the Getty Museum in Los Angeles, the Crystal Cathedral in Garden Grove and a tour of Hollywood. We rang in the new year at the Long Beach Hyatt.

Upcoming Travel...

  • California Rail Discovery!
    May 13, 2009 - May 19, 2009

    Featuring San Francisco, Lake Tahoe & the Napa Valley Wine Train 
  • Southern Caribbean Cruise
    January 31-February 7, 2009
    Cruise the exotic boutique ports on board the elegant Celebrity Summit... a resort at sea.

  • Mediterranean Legacies Cruise
    October 16-31, 2009

  • SOLD OUT - waiting list open
    Dubrovnik, Croatia / Athens, Greece / Monte Carlo/Nice, France
    Naples, Roma and Florence, Pisa, Italy/ Barcelona, Spain
    14-night cruise with overnight stays in Venice, Ephesus and Rome.

Now find Travel Club news on our homepage at www.franklinsynergybank.com. You can now register for Franklin Synergy Bank Travel Club trips online!

For more information about Franklin Synergy Bank Travel Club contact Sandy Green at 615-236-4614 or sandy.green@franklinsynergy.com.


Franklin Synergy Bank Team News

Marty Maitland Joins Franklin Synergy Mortgage
Join Franklin Synergy Bank in welcoming Marty Maitland to our Mortgage Loan office in the Synergy Business Park in Brentwood. Marty has more than 25 years experience in mortgage origination and he joins Franklin Synergy Bank from SunTrust Bank, where he held the position of Vice President, Producing Sales Manager.

Marty is an accomplished mortgage banking professional and we are delighted to have him join us. He has the experience, the emphasis on quality relationships with customers and the technology skills to serve our customers in a difficult economic climate. While some of the larger banks have cut back their mortgage lending, Franklin Synergy Bank is open for business.

Marty is a four time Chairman’s Circle member as well as a nine time President’s Club member. He is a graduate of the University of Tennessee in Knoxville, Tennessee. Maitland and his wife Candy have been married for 25 years; the couple has two sons who attend Franklin Road Academy.

Mike Garland Joins Franklin Synergy Bank
Mike Garland has joined Franklin Synergy Bank as Assistant Vice President and Imaging Manager. Mike is an operations management professional with nine years experience and he joins Franklin Synergy Bank from Community First Bank and Trust, where he held the position of Core Processing Officer. Prior to joining Community First Bank, Mike was Assistant Vice President and Imaging Manager at Cumberland Bank in Franklin. Mike began his banking career as a Budget Analyst at Franklin National Bank.

Mike is an outstanding talent; his background in bank technology and operations is an ideal fit for our organization. Mike is a Franklin native and a graduate of the University of Alabama in Tuscaloosa, Alabama.

We look forward to the opportunity to earn your future business at Franklin Synergy Bank. You may reach your Franklin Synergy banker at (615) 236-BANK (2265) or on our website at www.franklinsynergybank.com. Franklin Synergy Bank now has 2 locations, our Cool Springs branch at 3301 Aspen Grove Drive, Suite 106 and our new Downtown Franklin branch at 134 Fourth Avenue North in the historic Bennett House. In addition, our new Franklin Synergy Mortgage office is now open at 7101 Executive Center Drive, Suite 100 in Brentwood. We appreciate your continued interest in Franklin Synergy Bank.


Richard Herrington