February 2008 E-News Bulletin

Welcome to the seventh edition of the Franklin Financial Network News Bulletin!

Business has been very brisk at Franklin Synergy Bank, a result of the great support we have received from our friends and family in Williamson County. We've also been fortunate to welcome new family members as word gets out about Franklin's only community bank. If you have not yet had an opportunity to stop by, you still have time to become a Founder of

Visit with us at 3301 Aspen Grove Drive or call us at 236-BANK (2265) and we'll visit with you when and where it's most convenient. You can become a Founder by opening a club account prior to April 1, 2008. See below for more details of our exclusive club accounts.

In Economic News………

In late January, the Federal Reserve Bank lowered the Federal Funds target by 50 basis points to 3.00%. This followed an adjustment of 75 basis points less than one week earlier. Thus, in a ten day period, the Federal Reserve Bank lowered short-term rates by 125 basis points. This has never happened before in the economic history of our country.

Some could say that these are desperate measures for desperate times.

Before we pass judgment, let's review three of the causes of the difficult time our national economy is suffering:

  1. Business and real estate investing are by nature and definition cyclical. It's always been that way and we can't change the existence of cycles. Cycles come in varying timeframes and the convergence of a business cycle, a real estate cycle, seasonal cycles, and other secular cycles (long term trends) can make for a roaring economy, a stressful period and anything in between. Responsible business leaders and astute investors and consumers have learned the value of managing through predictable cycles.
  2. The Federal Reserve Bank has probably been too active in trying to manage the economy and respond to short-term market pressures. Realizing that hindsight is perfect, the Fed lowered rates too much in the aftermath of the 2001 terrorists strikes, then held rates too low for too long, then over- adjusted by raising rates far too quickly, and now has reversed course and lowered rates too quickly. This creates interest rate market turmoil and volatility. No matter how smart we are, we can't use monetary policy to reduce the impact of normal cycles.
  3. The current economic stress has been heightened by people making poor decisions, especially in the sub-prime real estate markets and other higher risks investments. Economics is a tough task master, and poor decisions don't go unpunished. Oftentimes, the "punishment" is more severe than the poor decision-making warranted, if compounded by trends in business cycles.

There is no doubt that national economic conditions are in turmoil and that a recession is either in place or dangerously close. Williamson County, while not isolated from national and global economic turmoil, is fortunate to be less impacted than many other locales. The important thrust now is what we as individuals and business leaders must do to weather the storm, minimize damage, and prepare for the recovery. Here are a couple of thoughts:

  1. Be patient. Economic, secular, and seasonal cycles will run their course. In the words of scientists, "Don't mess with Mother Nature".
  2. Be an advocate of interest rate stability rather than quick Federal Reserve Bank overreactions. Don't expect Federal Reserve Bank actions on interest rates to quickly bail us out of the current situation, as current conditions in large part are simply representative of a convergence of normal economic cycles.
  3. Focus on the reality that every economic cycle is finite and opportunities exist as the next phase of the cycle develops.
  4. Include the reality of business cycles in any decision- making process.

We at Franklin Synergy Bank are poised and well-positioned to help our customers weather the current storm and prepare for the recovery. Although our bankers have many years of experience working with successful customers, we are a new bank and can focus exclusively on opportunities. Give us a call at 615-236-BANK or visit our website (www.franklinsynergybank.com) to let us help you plan for the future.

Time to Refinance?

The recent decline in interest rates creates a great opportunity for you to refinance your home mortgage. Call Franklin Synergy Mortgage bankers Phyllis Bond at (615) 236-4615 or Nick Lennon at (615) 236-4632 to review your refinancing options. Or visit our mortgage bankers online at www.franklinsynergybank.com, click on the "Mortgage" tab.

Franklin Synergy Bank Travel News...

Great Trains & Grand Canyons


featuring 5 nights at the Sedona Hilton Resort
September 7-12, 2008

Please Join us for a Preview Show
Wednesday, February 27, 2008 1:30 pm

Aspen Grove Christian Church
274 Mallory Station Road

Located off Franklin Road, before Seaboard Lane, between WAKM radio tower and the fire station

Slide show presentation, Refreshments & Door Prizes

For reservations, directions or more information contact
Sandy Green at 615-236-4614 or < href="mailto:sandy.green@franklinsynergy.com">sandy.green@franklinsynergy.com

Last call - Club Banking Mystery Trip

Join Sandy Green and Franklin Synergy Bank Founders on a mystery trip, Thursday, March 27th. Final payment for the Mystery trip is due March 7. Call Sandy at 615-236-4614 to reserve your place today.

The Privileges of Membership in Franklin Synergy Bank Clubs

Franklin Synergy Bank Clubs offer exclusive membership privileges:

Synergy Club Account– Our signature club account offering: special member interest rates, unlimited check writing, unique travel opportunities, five free non-Franklin Synergy Bank ATM fees per statement, preferred rates on mortgages, overdraft protection, free 24 hour online banking with bill pay, and much more.

Pineapple Gold Club Account – Our signature club account for customers age 50 or better. The same great benefits of a Synergy Club Account along with a free (for one year) safe deposit box.

Meet Our Team

Every month we will introduce you to members of the Franklin Synergy Bank team.

Sally Bowers – Executive Vice President and President of Franklin Synergy Mortgage

We are very careful at Franklin Synergy to hire experienced professionals. Sally has more than 30 years of mortgage experience and she leads an energetic team of mortgage professionals.

Prior to joining Franklin Synergy Bank, Sally was President of Cumberland Bank Mortgage and Executive Vice President of Cumberland Bank. She also served Senior Vice President of Franklin Financial Mortgage, a wholly owned subsidiary of Franklin National Bank.

Sally is a graduate of Memphis State University and the BAI Graduate School of Retail Banking at Vanderbilt University's Owen School of Management. Bowers has received numerous certifications from the Mortgage Bankers of America Institute and the American Institute of Banking.

Eddie Maynard – Vice President and Business Development Officer

Please join us in welcoming Eddie Maynard, Jr. to Franklin Synergy Bank as Vice President and Business Development Banker. Eddie joined us in late January and he will be based at our Aspen Brook Village location in Cool Springs. Eddie is an outstanding banker with valuable experience in real estate transactions and we are delighted that he brought his talents to Franklin Synergy Bank.

Prior to joining Franklin Synergy Bank, Eddie was Vice President of Real Estate with Colonial Bank, opening Colonial's Loan Production Office in Franklin. He previously served as Commercial Real Estate Relationship Manager and Commercial Credit Analyst with Fifth Third Bank in Franklin. Early in his career, Eddie was an Accountant with Franklin National Bank. Maynard is a graduate of West Virginia University in Morgantown, West Virginia. He is a member of the National Association of Homebuilders, the Homebuilders Association of Middle Tennessee and the Homebuilders Association of Tennessee. Eddie, his wife Jessica and daughter Hannah are members of the Fairview Church of Christ in Columbia.

We look forward to the opportunity to earn your future business at Franklin Synergy Bank. You may reach your Franklin Synergy banker at 236-BANK (2265) or on our website at www.franklinsynergybank.com. Franklin Synergy is located at 3301 Aspen Grove Drive, Suite 106 in Cool Springs. A parking garage is located directly below the bank for your convenience. Just take the elevator to the first floor.

We appreciate your continued interest in Franklin Synergy Bank.

Sincerely,

Richard Herrington