Welcome to the Franklin Financial Network January 2011 eBulletin!
"Do you love your bank?" A recent ad for one of the emerging internet banks poses this question. The idea behind this ad is that interest rates on deposit accounts are very low and depositors can find the best interest rates with this internet bank.
Nationwide, many bank customers are experiencing "sticker shock" as they renew or purchase a new Certificate of Deposit (CD). CD rates have been low for several years and lately have fallen to even lower levels. For savers and investors this is frustrating.
Conceptually, two factors determine bank deposit rates:
- Alternative rates such as the rates on Treasury securities or corporate bonds
- A bank’s need for funds to lend
Over the last two years, Treasury rates have fallen to historic low levels. The 90-day Treasury bill rate is below 0.15% and the one-year Treasury bond rate is around 0.25%. These low levels are unprecedented. The Federal Reserve Bank, which has control of short-term rates, has stated that interest rates will remain low until the economy, especially the housing market, improves.
While long-term interest rates have climbed over the last several months, bank deposit rates have not followed because bank rates are short-term in maturity.
While market rates have been low for several years, bank CD rates have dropped even lower. Why? The answer is simple: most banks are not lending and do not need CD funds. It’s the simple economic law of supply and demand: price (the interest rate) falls when supply outpaces demand.
Franklin Synergy Bank is not like most banks: we are making loans. In 2010, our loans increased nearly 20% and we originated over $140 million of residential mortgage loans.
An example of our commitment to lending is our innovative SmartLoan
program. This new product is designed to meet the specific needs of customers seeking to build a new home, combining a construction loan, a mortgage loan, and a checking account. The interest rate and fees on a SmartLoan
are attractive as the bank’s cost savings are passed to the customer. Contact any of our experienced bankers to obtain additional information.
Brentwood Office Now Open!
FRANKLIN SYNERGY BANK TRAVEL CLUB NEWS….
Carl Hurley & Jeanne Robertson Comedy Show Double Fun! Clean, uplifting humor May 3, 2011
He’s 5’6" standing on tiptoe. She’s 6’2" with her hair "mashed down." He grew up swapping homespun stories in the hills of Eastern Kentucky. She’s a former Miss North Carolina who finds comic inspiration in everyday events.
Trip will include: Roundtrip motorcoach; lunch included, all fees, admissions, taxes and gratuities!
Cost Per Person: $87
Final Payment Due: March 18
Summer Sail & Rail
July 17 - July 22, 2011
See the very best of New Hampshire and Maine by Land, Rail and Sea! You’ll enjoy spectacular views with train rides up the highest mountain in the northeast. Travel past stunning scenic valley vistas as well as picturesque lake front communities. Capture the scenery in your photos as you tour by boat past the lighthouses of Portland, Maine and along the shores of New Hampshire on one of America’s largest lakes.
Stay at the luxurious White Mountain Hotel & Resort where you will enjoy the finest amenities including deluxe accommodations, exceptional cuisine in the famous Ledges Dining Room, year-round outdoor heated pool and Jacuzzi, and state-of-the-art fitness center with Finnish saunas, a professional golf course and tennis court.
The Enchanting Rhine
October 4 - October 14, 2011
Begin your journey in the midst of Switzerland’s stunning scenery as you spend two nights in Lucerne enjoying lakeside excursions and Alpine vistas. Then board AMA Waterways’ luxurious Amalegro for a deluxe 7-night cruise on the incredibly beautiful Rhine River. Enjoy an excursion to the legendary Black Forest region. Visit the charming, medieval town of Strasbourg, the historic university town of Heidelberg and majestic Cologne Cathedral. Conclude in vibrant Amsterdam, enjoying her legendary canals and colorful surroundings.
Franklin Synergy Bank Team News
Tiffany Wilson Moves to Customer Service role in Downtown Franklin
We’re delighted to announce that Tiffany Wilson has moved to a Customer Service role in our Downtown Franklin branch. Tiffany joined us last year as a Teller and she will be providing the same great service as always in her new role.
Tiffany is a seventh generation Williamson County native and a graduate of Franklin High School and Belmont University.
Carolyn Swearingen Joins the Brentwood Office Team
Please help us welcome Customer Service Representative Carolyn Swearingen to our new Brentwood Office opened on January 3, 2011 at 4930 Thoroughbred Lane. Carolyn joins Franklin Synergy bankers Kay Waller, Debbie Marlin and Mortgage Banker Stephen Roadman in the Brentwood office.
Carolyn’s banking career began at First National Bank of Toledo in Toledo, Illinois. Her banking career includes service at Pinnacle Financial Partners, PrimeTrust Bank, Cumberland Bank and The Bank of Brentwood. In addition, Carolyn served two terms as the President of the Illinois Federation of Bankers Association, covering Cumberland, Douglas and Coles Counties.
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 has 3 locations; our downtown Franklin headquarters at 722 Columbia Avenue, our Cool Springs branch at 3301 Aspen Grove Drive, Suite 106 and our new Brentwood office at 4930 Thoroughbred Lane. In addition, our Franklin Synergy Mortgage office is open at 7101 Executive Center Drive, Suite 110 in Brentwood. We appreciate your continued interest in Franklin Synergy Bank.