Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30,1997
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Transition Period
Commission File Number 0-16362
First Franklin Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware 31-1221029
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
4750 Ashwood Drive Cincinnati, Ohio 45241
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code (513) 469-5352
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
requirements for the past 90 days.
Yes [X] NO [ ]
As of September 30,1997, there were issued and outstanding 1,192,029 shares of
the Registrant's Common Stock.
Transitional Small Business Format (check one)
Yes [ ] NO [X]
<PAGE> 1
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I Financial Information
Item 1. Consolidated Balance Sheets - September 30, 1997 and
December 31, 1996 3
Consolidated Statements of Income and Retained Earnings -
Three and Nine Month Periods ended September 30,1997 and 1996 4
Consolidated Statements of Cash Flows - Three and Nine Month
Periods ended September 30,1997 and 1996 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 7
Part II Other Information 12
Item 5. Press Release Dated September 25, 1997 13
Press Release Dated October 16, 1997 14
Signatures 15
</TABLE>
<PAGE> 2
Part I - Item 1.
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
Sept 30, 1997 Dec 31, 1996
------------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash, including CD's & other interest-earning deposits of
$2,890 and $7,625 at 09/30/97 and 12/31/96, respectively $ 5,885 $ 10,009
Investment securities
Available-for-sale, at market value (amortized cost of
$29,256 and $17,424, respectively) 29,307 17,358
Mortgage-backed securities
Available-for-sale, at market value (amortized cost of
$19,403 and $19,107, respectively) 19,973 19,503
Held-to-maturity, at amortized cost (market value of
$17,885 and $19,249, respectively) 18,017 19,622
Loans receivable, net 152,304 150,135
Real estate owned, net 0 181
Stock in Federal Home Loan Bank of Cincinnati, at cost 1,776 1,750
Accrued interest receivable 1,442 1,240
Property and equipment, net 1,942 1,900
Other assets 543 604
--------------------------
$ 231,189 $ 222,302
LIABILITIES
Savings accounts $ 203,130 $ 194,648
Borrowings 6,111 6,423
Advances by borrowers for taxes and insurance 631 1,066
Other liabilities 470 435
--------------------------
Total liabilities 210,342 202,572
--------------------------
STOCKHOLDERS' EQUITY:
Preferred stock; $.01 par value per share; 500,000 shares
authorized; no shares issued
Common stock; $.01 par value per share; 2,500,000 shares
authorized; 1,340,584 shares issued at 09/30/97 and
1,293,012 at 12/31/96 13 13
Additional paid in capital 6,190 5,952
Treasury stock, at cost- 148,555 and 136,578 shares at
09/30/97 and 12/31/96, respectively (1,344) (1,141)
Unrealized gain on available-for-sale securities, net of
taxes of $211 at 09/30/97 and $112 at 12/31/96 410 218
Retained earnings, substantially restricted 15,578 14,688
--------------------------
Total stockholders' equity 20,847 19,730
--------------------------
$ 231,189 $ 222,302
</TABLE>
The accompanying notes are an integral part of
the consolidated financial statements.
<PAGE> 3
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNING
(Dollars in Thousands Except per Share Data)
<TABLE>
<CAPTION>
For The Three Months Ended For The Nine Months Ended
------------------------------ ------------------------------
Sept 30, 1997 Sept 30, 1996 Sept 30, 1997 Sept 30, 1996
------------- ------------- ------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $ 3,075 $ 2,943 $ 9,087 $ 8,626
Mortgage-backed securities 628 682 1,878 1,986
Investment securities 510 335 1,291 1,052
-----------------------------------------------------------
4,213 3,960 12,256 11,664
Interest expense:
Savings accounts 2,644 2,349 7,529 6,944
Borrowings 99 116 305 352
-----------------------------------------------------------
2,743 2,465 7,834 7,296
-----------------------------------------------------------
Net interest income 1,470 1,495 4,422 4,368
Provision for loan losses 21 31 63 72
-----------------------------------------------------------
Net interest income after provision for loan losses 1,449 1,464 4,359 4,296
-----------------------------------------------------------
Noninterest income:
Gain on loans sold 56 21 120 36
Service fees on NOW accounts 51 55 148 157
Other income 64 56 155 163
-----------------------------------------------------------
171 132 423 356
Noninterest expenses:
Salaries and employee benefits 469 437 1,341 1,271
Occupancy expense 148 160 444 459
Federal insurance premiums 32 1,259 70 1,471
Service bureau expense 58 59 170 200
Other expenses 301 306 965 927
-----------------------------------------------------------
1,008 2,221 2,990 4,328
Income before federal income taxes 612 (625) 1,792 324
Provision for federal income taxes 203 (215) 593 99
-----------------------------------------------------------
Net Income $ 409 $ (410) $ 1,199 $ 225
RETAINED EARNINGS-BEGINNING OF PERIOD $ 15,289 $ 15,235 $ 14,688 $ 14,777
Net income 409 (410) 1,199 225
Less: dividends declared (120) (93) (309) (270)
-----------------------------------------------------------
RETAINED EARNINGS-END OF PERIOD $ 15,578 $ 14,732 $ 15,578 $ 14,732
EARNINGS PER COMMON SHARE $ 0.33 $ (0.34) $ 0.98 $ 0.18
DIVIDENDS DECLARED PER COMMON SHARE $ 0.10 $ 0.08 $ 0.26 $ 0.23
</TABLE>
The accompanying notes are an integral part of
the consolidated financial statements.
<PAGE> 4
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
<TABLE>
<CAPTION>
For The Nine Months Ended
-------------------------------
Sept 30, 1997 Sept 30, 1996
------------- -------------
(Unaudited)
<S> <C> <C>
Cash provided by (used in) operating activities:
Net income $ 1,199 $ 225
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for loan losses 63 72
Depreciation and amortization 130 121
SAIF special assessment 0 1,150
FHLB stock dividend (93) (87)
Increase in accrued interest receivable (202) (160)
Decrease (Increase) in other assets 61 (780)
Increase in other liabilities 35 233
Other, net (161) (626)
Loans sold 6,737 2,280
Disbursements on loans originated for sale (6,001) (2,080)
---------------------------
Net cash provided by operating activities 1,768 348
---------------------------
Cash provided by (used in) investing activities:
Loan principal reductions 22,960 23,296
Disbursements on mortgage and other loans purchased or
originated for investment (25,858) (32,425)
Repayments on mortgage-backed securities 3,851 4,434
Purchase of available-for-sale mortgage-backed securities (2,551) (3,947)
Purchase of available-for-sale investment securities (21,644) (4,199)
Proceeds from the maturity of available-for-sale investment
securities 9,820 3,000
Sale of Federal Home Loan Bank stock 67 17
Procceds from the sale of real estate owned 173 122
Capital expenditures (171) (64)
---------------------------
Net cash used in investing activities (13,353) (9,766)
---------------------------
Cash provided by (used in) financing activities:
Net decrease in passbook accounts and demand deposits (5,098) (2,698)
Proceeds from sales of certificates of deposit 62,206 46,048
Payments for maturing certificates of deposit (48,626) (43,955)
Purchase of deposit accounts 5,300
Repayment of borrowed money (312) (239)
Decrease in advances by borrowers for taxes and insurance (435) (563)
Purchase of treasury stock (444)
Proceeds from sale of common stock 35 49
Payment of dividends (309) (270)
---------------------------
Net cash provided by financing activities 7,461 3,228
---------------------------
Net decrease in cash $ (4,124) $ (6,190)
Cash at beginning of period 10,009 8,653
---------------------------
CASH AT END OF PERIOD $ 5,885 $ 2,463
</TABLE>
The accompanying notes are an integral part of
the consolidated financial statements.
<PAGE> 5
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three and
nine month periods ended September 30,1997 are not necessarily indicative of
the results that may be expected for the full year. The December 31,1996
Balance Sheet data was derived from audited Financial Statements, but does not
include all disclosures required by generally accepted accounting principles.
Effective January 1, 1997 the Company was required to adopt Statement of
Financial Accounting Standards ("SFAS") No. 125 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities" which
establishes accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities. The standards are based on
a consistent application of a financial components approach that focuses on
control. Under that approach, after a transfer of financial assets, an entity
recognizes the financial and servicing assets it controls and the liabilities
it has incurred, derecognizes financial assets when control has been
surrendered, and derecognizes liabilities when extinguished. SFAS No. 125
provides consistent standards for distinguishing transfers of financial assets
that are sales from transfers that are secured borrowings. The adoption of this
new accounting standard did not have a significant impact on the Company's
Consolidated Statement of Income for the three and nine month periods ended
September 30, 1997.
On March 3, 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 128, "Earnings per Share" which will replace the current presentation of
"primary" and "fully diluted" earnings per share with newly defined "basic" and
"diluted" earnings per share. "Basic" earnings per share will not include
dilutive effect on earnings. "Diluted" earnings per share will reflect the
potential dilution of securities that could share in an enterprises earnings.
The statement will require dual presentation of basic and diluted earnings per
share on the income statement for all entities having complex capital
structures. It is effective for all financial statements issued for periods
ending after December 31, 1997. Management is currently assessing the impact
that adoption will have on the Company's financial statements.
<PAGE> 6
Part I - Item 2.
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
FIRST FRANKLIN CORPORATION ("Company") is a savings and loan holding company
which was incorporated under the laws of the State of Delaware in September
1987 by authorization of the Board of Directors of the Franklin Savings and
Loan Company ("Franklin"). The Company applied for and received regulatory
approval to acquire all the common stock of Franklin issued in connection with
its conversion from the mutual to stock form of ownership. This conversion was
completed January 25,1988.
The Company's operating philosophy is to be an efficient and profitable
financial services organization with a professional staff committed to
maximizing shareholder value by structuring and delivering quality services
that attract customers and satisfy their needs. Management's goal is to
maintain profitability and a strong capital base. It seeks to accomplish this
goal by pursuing the following strategies; (i) emphasizing lending in the
one-to four-family residential mortgage market, (ii) managing deposit pricing,
(iii) controlling interest rate risk, (iv) controlling operating expenses, (v)
controlling asset growth, and (vi) maintaining asset quality.
As a Delaware corporation, First Franklin is authorized to engage in any
activity permitted by Delaware General Corporation Law. As a unitary savings
and loan holding company, First Franklin is subject to examination and
supervision by the Office of Thrift Supervision ("OTS") , although the
Company's activities are not limited by the OTS as long as certain conditions
are met. The Company's assets consist of cash, investment securities, the
office building where the corporate office is located and investments in
Franklin and DirectTeller Systems Inc. ("DirectTeller").
Franklin is an Ohio chartered stock savings and loan headquartered in
Cincinnati, Ohio. It was originally chartered in 1883 as the Green Street
Number 2 Loan and Building Company. Franklin operates seven banking offices in
Hamilton County, Ohio through which it offers a wide range of consumer banking
services, including mortgage loans, credit cards, checking accounts, auto
loans, savings and certificate accounts, automated teller machines and a voice
response telephone inquiry system. Franklin also offers mutual funds, annuities
and discount brokerage services in its offices through an agreement with a
third party. The business of Franklin consists primarily of attracting deposits
from the general public and using those deposits, together with borrowings and
other funds, to originate and purchase investments and real estate loans for
retention in its portfolio and sale in the secondary market.
Legislation has been introduced to restructure the federal banking system. Such
legislation might require Franklin to convert to a state savings bank or
national bank charter. As a result, it could become subject to the more
restrictive activity limits imposed on national banks, but it would have a
specified period of time to divest any non-conforming assets. In addition, the
Company might be required to become a bank holding company, which would subject
it to more restrictive activity limits and to capital requirements similar to
those imposed on Franklin. The Company cannot evaluate how this legislation may
impact it until it has been enacted.
Franklin has one wholly-owned subsidiary, Madison Service Corporation
("Madison"). Madison was formed on February 22,1972 to allow Franklin to
diversify into certain types of business which, by regulation, savings and
loans were unable to enter. At the present time, Madison's only activity is its
contract with the third party registered broker dealer that offers brokerage
services at the offices of Franklin. Madison's assets consist solely of cash
and interest-earning deposits.
DirectTeller was formed in 1989 by the Company and DataTech Services, Inc. to
develop and market a voice response inquiry system to allow financial
institution customers to access information about their accounts via the
telephone and/or a facsimile machine. The inquiry system is currently in
operation at Intreive Inc., a computer service bureau which offers the
DirectTeller system to the financial institutions it services. The agreement
with Intrieve gives DirectTeller a percentage of the profits generated by the
inquiry system.
Since the results of operations of Madison and DirectTeller have not been
material to the operations and financial condition of the Company, the
following discussion focuses primarily on Franklin.
<PAGE> 7
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Consolidated assets increased $8.9 million (4.0%) from $222.3 million at
December 31, 1996 to $231.2 million at September 30,1997, compared to a $4.7
million (2.2%) increase for the same period in 1996.
Loan disbursements were $31.9 million during the current nine month period
compared to $34.5 million during the nine months ended September 30,1996.
Disbursements during the Third Quarter 1997 were $10.9 million compared to
$12.5 million during the same quarter in 1996. During the current nine month
period loan sales were $6.7 million. At September 30,1997, commitments to
originate mortgage loans were $2.3 million. At the same date, $2.7 million of
undisbursed loan funds were being held on various construction loans.
Management believes that sufficient cash flow and borrowing capacity exists to
fund these commitments.
Liquid assets increased $7.8 million during the nine months ended September
30,1997 to $35.2 million. This increase reflects net savings deposits of $8.5
million, loan sales of $6.7 million and loan and mortgage-backed securities
repayments of $26.8 million less loan disbursements of $31.9 million and
purchases of mortgage-backed securities of $2.6 million. At September 30, 1997
liquid assets were 15.2 % of total assets, which was above management's target
of 8%.
The Company's investment and mortgage-backed securities are classified based on
its current intention to hold to maturity or have available for sale, if
necessary. The following table shows the gross unrealized gains or losses on
mortgage-backed securities and investment securities as of September 30,1997.
During the current nine month period, there have been no sales of investments
or mortgage-backed securities. No securities are classified as trading.
<TABLE>
<CAPTION>
Amortized Market Unrealized Unrealized
Cost Value Gains Losses
(in thousands)
<S> <C> <C> <C> <C>
Available-for-sale
Investment securities $29,256 $29,307 $101 $ 50
Mortgage-backed securities 19,403 19,973 587 17
Held-to-maturity
Mortgage-backed securities 18,017 17,885 74 206
</TABLE>
At September 30,1997 savings deposits were $203.1 million compared to $194.6
million at December 31,1996. This is an increase of $8.5 million during the
current nine month period. During the nine months ended September 30,1997, core
deposits (transaction and passbook savings accounts) decreased $5.1 million.
During the same period, short term certificates (two years or less) increased
$7.7 million and certificates with original terms greater than two years
increased $5.9 million. Interest of $2.4 million during the current quarter and
$6.7 million during the current nine month period was credited to accounts.
After eliminating the effect of interest credited, savings increased $1.2
million during the three months period and increased $1.8 million during the
nine months ended September 30, 1997.
At September 30,1997 borrowings consisted of $6.1 million in fixed-rate Federal
Home Loan Bank advances at an average cost of 6.44%. All advances are being
amortized monthly.
At September 30,1997, $1.2 million of assets were classified substandard,
$296,000 classified loss and $2.1 million classified as special mention
compared to $1.4 million as substandard, $344,000 as loss and $2.5 million as
special mention at December 31,1996. Non-accruing and accruing loans delinquent
ninety days or more, net of reserves, were $795,000 at September 30,1997 and
$693,000 at December 31,1996. At September 30, 1997 the recorded investment in
loans for which impairment under SFAS No. 114 has been recognized was
immaterial to the Company's financial statements.
In management's opinion, adequate reserves are available to protect against
reasonably foreseeable losses that may occur on loans or repossessed assets.
The following table shows the activity that has occurred on loss reserves
during the nine months ended September 30,1997.
<TABLE>
<CAPTION>
(Dollars in Thousands)
<S> <C>
Balance at beginning of period $ 981
Charge offs 60
Additions charged to operations 63
Recoveries 0
-----
Balance at end of period $ 984
</TABLE>
<PAGE> 8
The Company's capital supports business growth, provides protection to
depositors, and represents the investment of stockholders on which management
strives to achieve adequate returns. First Franklin continues to enjoy a strong
capital position. At September 30,1997, net worth was $20.8 million, which is
9.02% of assets. At the same date, book value per share was $17.49 compared to
$17.06 at December 31,1996.
The following table summarizes, as of September 30,1997, the regulatory capital
position of our subsidiary, Franklin Savings.
<TABLE>
<CAPTION>
Capital Standard Actual Required Excess Actual Required Excess
------- -------- ------- ------ -------- ------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Tangible $14,785 $3,380 $11,405 6.56% 1.50% 5.06%
Core $14,785 $6,760 $ 8,025 6.56% 3.00% 3.56%
Risk-based $15,440 $8,459 $ 6,981 14.60% 8.00% 6.60%
</TABLE>
RESULTS OF OPERATIONS
Net income was $409,000 ($0.33 per share) for the current quarter and
$1,199,000 ($0.98 per share) for the nine months ended September 30, 1997.
During the Third Quarter 1996, Franklin recorded a one-time special assessment
to recapitalize the Savings Association Insurance Fund (SAIF) of $1.15 million.
Excluding this special assessment, net income was $349,000 ($0.29 per share)
for the quarter and $984,000 ($0.81 per share) for the nine months ended
September 30, 1996. After the SAIF assessment, the Company had a net loss of
$410,000 ($0.34 per share) for the Third Quarter 1996 and net income of
$225,000 ($0.18 per share) for the nine month period.
Net interest income, before provisions for loan losses, was $1.47 million for
the current quarter and $4.42 million for the first nine months of 1997
compared to $1.50 million and $4.37 million, respectively, for the same periods
in 1996. The most significant impact on the net interest income between periods
relates to the interaction of changes in the volume of and rates earned or paid
on interest-earning assets and interest-bearing liabilities. The following
rate/volume analysis describes the extent to which changes in interest rates
and the volume of interest related assets and liabilities have affected net
interest income during the periods indicated.
<TABLE>
<CAPTION>
For the Nine Month Periods
ended September 30,
1997 vs 1996
----------------------------------
Increase
(Decrease) Total
due to Increase
Volume Rate (Decrease)
------ ---------- ----------
(Dollars in Thousands)
<S> <C> <C> <C>
Interest Income Attributable to:
Loans Receivable (1) $ 496 $ (34) $ 462
Mortgage-backed Securities (150) 43 (107)
Investments 190 41 231
FHLB Stock 4 2 6
--------------------------------
Total Interest-earning Assets $ 540 $ 52 $ 592
Interest Expense Attributable to:
Demand Deposits $ (2) $ (11) $ (13)
Savings Accounts (40) 3 (37)
Certificates 617 18 635
FHLB Advances (47) 0 (47)
--------------------------------
Total Interest-bearing Liabilities $ 528 $ 10 $ 538
Increase in Net Interest Income $ 12 $ 42 $ 54
<FN>
- -------------------
<F1> Includes non-accruing loans.
</FN>
</TABLE>
As the tables below illustrate, average interest-earning assets increased $9.9
million to $219.9 million during the nine months ended September 30,1997 from
$210.0 million for the nine months ended September 30,1996. Average
interest-bearing liabilities increased $11.1 million from $194.1 million for
the nine months ended September 30,1996 to $205.2 for the current nine 'month
period. Thus, average net interest-earning assets decreased $1.2 million when
comparing the two periods. The interest rate spread (the yield on
interest-earning assets less the cost of interest-bearing liabilities) was
2.34% for the nine months ended September 30, 1997 compared to 2.40% for the
same period in 1996. The decline in the interest rate spread was the result of
an increase in the cost of interest-bearing liabilities from 5.01% for the nine
months ended September 30, 1996 to 5.09% for the same nine month period during
1997.
<PAGE> 9
<TABLE>
<CAPTION>
For the Nine Months ended
September 30, 1997
---------------------------
Average
Outstanding Yield/cost
----------- ----------
($ in thousands)
<S> <C> <C>
Average interest-earning assets
Loans $ 153,192 7.91%
Mortgage-backed securities 37,220 6.73%
Investments 27,753 5.75%
FHLB stock 1,746 7.10%
Total $ 219,911 7.43%
Average interest-bearing liabilities
Demand deposits $ 23,375 2.16%
Savings accounts 22,969 2.76%
Certificates 152,558 5.83%
FHLB advances 6,293 6.46%
Total $ 205,195 5.09%
Net interest-earning assets $ 14,716 2.34%
<CAPTION>
For the Nine Months ended
September 30, 1996
---------------------------
Average
Outstanding Yield/cost
----------- ----------
($ in thousands)
<S> <C> <C>
Average interest-earning assets
Loans $ 144,828 7.94%
Mortgage-backed securities 40,172 6.59%
Investments 23,300 5.52%
FHLB stock 1,675 6.93%
Total $ 209,975 7.41%
Average interest-bearing liabilities
Demand deposits $ 23,467 2.23%
Savings accounts 24,902 2.74%
Certificates 138,444 5.82%
FHLB advances 7,261 6.46%
Total $ 194,074 5.01%
Net interest-earning assets $ 15,901 2.40%
</TABLE>
<PAGE> 10
Noninterest income was $171,000 for the quarter and $423,000 for the nine
months ended September 30,1997 compared to $132,000 for the same quarter in
1996 and $356,000 for nine months ended September 30, 1996. The increase in
income when comparing the three and nine month periods is the result of an
increase in profits on the sale of loans.
Noninterest expenses were $1.01 million for the current quarter and $2.99
million for the current nine month period compared to $2.22 million and $4.33
million for the three and nine month periods ended September 30,1996. As a
percentage of average assets, this is 1.75% for the current nine month period
compared to 1.96% for the first nine months of 1996, excluding the SAIF special
assessment.
<PAGE> 11
PART II
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
Item 1. LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the
holding company or any subsidiary is a party or to which any of
their property is subject.
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
A. Press Release Dated September 25, 1997
B. Press Release Dated October 16, 1997
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE> 12
First Franklin Corporation
4750 Ashwood Drive Cincinnati, Ohio 45241
(513) 469-8000 Fax (513)469-5360
September 25, 1997
FOR IMMEDIATE RELEASE
CONTACT: Thomas H. Siemers
President and CEO
(513) 469-8000
The Board of Directors of First Franklin Corporation declared a dividend of
$.10 per share payable October 20,1997 to shareholders of record October
3,1997. This dividend, the thirty-sixth consecutive paid by the Company, is a
25% increase over the dividend paid in the previous quarter.
First Franklin is the parent organization of Franklin Savings, which has
seven offices in Greater Cincinnati.
<PAGE> 13
First Franklin Corporation
4750 Ashwood Drive Cincinnati, Ohio 45241
(513) 469-8000 Fax (513) 469-5360
October 16,1997
FOR IMMEDIATE RELEASE
CONTACT: Thomas H. Siemers
President and CEO
(513) 469-8000
First Franklin Corporation, the parent of Franklin Savings and Loan Company,
Cincinnati, Ohio today announced earnings of $409,000 ($0.33 per share) for
the third quarter of 1997 and $1,199,000 (0.98 per share) for the first nine
months of the year. This compares to earnings, excluding a special assessment
to recapitalize the Savings Association Insurance Fund (SAIF) of $1.15
million, of $349,000 ($0.29 per share) for the third quarter of 1996 and
$984,000 ($0.81 per share) for the nine months ended September 30,1996. After
the SAIF assessment, the Company had a net loss of $410,000 ($0.34 per share)
for the third quarter of 1996 and net income of $225,000 ($0.18 per share) for
the first nine months of 1996.
First Franklin conducts its business through its subsidiary, Franklin Savings,
with seven full service offices located in Greater Cincinnati.
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FIRST FRANKLIN CORPORATION
/s/ DANIEL T. VOELPEL
Daniel T. Voelpel
Vice President and Chief Financial Officer
Date: November 1, 1997
<PAGE> 15
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,995
<INT-BEARING-DEPOSITS> 2,890
<FED-FUNDS-SOLD> 0
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<DEPOSITS> 203,130
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<LONG-TERM> 6,111
0
0
<COMMON> 13
<OTHER-SE> 20,834
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<INTEREST-LOAN> 3,075
<INTEREST-INVEST> 1,082
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<INTEREST-TOTAL> 4,213
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<INCOME-PRE-EXTRAORDINARY> 409
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<EPS-PRIMARY> 0.34
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<LOANS-NON> 481
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<ALLOWANCE-CLOSE> 984
<ALLOWANCE-DOMESTIC> 408
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 576
</TABLE>
