<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 1996.
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
Commission file number 0 - 20880
Filing Date: August 14, 1996
- --------------------------------------------------------------------------------
FRANKLIN BANCORPORATION, INC
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 52 - 1632361
- -------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer identification
incorporation or organization) Number)
1722 EYE STREET, N.W.
WASHINGTON, D.C. 20006 (202) 429 - 9888
- -------------------------------- -------------------------------
(Address of principal executive (Registrant's telephone number,
offices) including area code)
</TABLE>
- --------------------------------------------------------------------------------
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 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES (X) NO ( )
The total number of shares of the Registrant's common stock, par value $0.10
per share, outstanding as of July 31, 1996 was 6,336,107.
Page 1 of 15
<PAGE> 2
FRANKLIN BANCORPORATION, INC.
FORM 10-Q
June 30, 1996
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
<S> <C> <C>
ITEM 1. FINANCIAL STATEMENTS
(a) Consolidated Statements of Income............................ 3
(b) Consolidated Statements of Financial Condition............... 4
(C) Consolidated Statements of Cash Flows........................ 5
Notes to Consolidated Financial Statements....................... 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS........................................ 9
PART II. OTHER INFORMATION................................................ 13
</TABLE>
Page 2 of 15
<PAGE> 3
PART I - FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
ITEM 1 - FINANCIAL STATEMENTS
(a) Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ --------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME:
- ----------------
Interest and fees on loans $4,409 $3,876 $ 8,838 $ 7,029
Interest and dividends on securities 1,896 1,590 3,530 3,113
Interest on federal funds sold and securities
purchased under resale agreements 431 145 848 361
------- ------- -------- -------
Total interest income 6,736 5,611 13,216 10,503
------- ------- -------- -------
INTEREST EXPENSE:
- -----------------
Interest on deposits 2,020 1,720 4,120 3,137
Interest on securities sold under
repurchase agreements 500 328 847 651
------- ------- -------- -------
Total interest expense 2,520 2,048 4,967 3,788
------- ------- -------- -------
Net interest income 4,216 3,563 8,249 6,715
Provision for loan losses - 0- 55 27 135
------- ------- -------- -------
Net interest income after provision
for loan losses 4,216 3,508 8,222 6,580
------- ------- -------- -------
NON-INTEREST INCOME:
- --------------------
Service charges on deposits 250 250 491 460
Other fee income 144 101 257 166
Gains on sales of securities, net 31 8 31 8
------- ------- -------- -------
Total non-interest income 425 359 779 634
------- ------- -------- -------
NON-INTEREST EXPENSE:
- ---------------------
Compensation and employee benefits 1,532 1,204 3,060 2,246
Occupancy expense 402 305 782 533
Goodwill amortization 46 43 92 75
Other 918 910 1,738 1,643
------- ------- -------- -------
Total non-interest expense 2,898 2,462 5,672 4,497
------- ------- -------- -------
Income before income tax expense 1,743 1,405 3,329 2,717
Income tax expense 691 558 1,313 1,143
------- ------- -------- -------
NET INCOME $1,052 $ 847 $ 2,016 $ 1,574
======= ====== ======= =======
PRIMARY EARNINGS PER SHARE:(1)
- ------------------------------
Net Income $ 0.16 $ 0.13 $ 0.31 $ 0.26
FULLY DILUTED EARNINGS PER SHARE:(1)
- ------------------------------------
Net Income $ 0.16 $ 0.13 $ 0.31 $ 0.26
</TABLE>
(1) See Exhibit 11 - Computation of Primary and Fully Diluted Earnings per
Share.
The accompanying condensed notes are an integral part of these financial
statements.
Page 3 of 15
<PAGE> 4
(b) Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
UNAUDITED
JUNE 30, DECEMBER 31,
ASSETS 1996 1995
- ------ --------- ------------
<S> <C> <C>
Cash and due from banks $ 18,302 $ 21,811
Federal funds sold and securities purchased
under resale agreements 29,325 47,875
Securities available-for-sale 76,586 44,867
Securities held-to-maturity 63,308 64,273
--------- ---------
Securities 139,894 109,140
Loans, net of unearned income 194,482 181,650
Less: allowance for loan losses (3,772) (3,443)
--------- ---------
Loans, net 190,710 178,207
Premises and equipment, net 2,523 2,334
Goodwill, net 1,980 2,072
Accrued interest receivable 2,658 2,316
Other assets 3,185 3,276
--------- ---------
TOTAL ASSETS $388,577 $367,031
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------
LIABILITIES:
- ------------
Non-interest bearing deposits $ 97,431 $ 90,454
Interest bearing deposits 209,337 211,981
--------- ---------
Total deposits 306,768 302,435
Federal funds purchased and securities
sold under repurchase agreements 50,972 35,869
Accrued interest payable 957 903
Other liabilities 1,967 1,439
--------- ---------
Total liabilities 360,664 340,646
--------- ---------
STOCKHOLDERS' EQUITY:
- ---------------------
Common Stock, $0.10 par value, 25,000,000
shares authorized; 6,336,107 and 6,283,057
shares issued and outstanding, respectively 634 628
Capital surplus 19,857 19,649
Retained earnings 7,981 5,965
Unrealized (loss) gain on securities
available-for-sale (559) 143
--------- ---------
Total stockholders' equity 27,913 26,385
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $388,577 $367,031
========= =========
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
Page 4 of 15
<PAGE> 5
(C) Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
----------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
- -------------------------------------
Net income $ 2,016 $ 1,574
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 27 135
Depreciation and amortization 449 273
Gains on sales of securities, net (31) (8)
Change in accrued interest receivable and
other assets 227 (63)
Change in accrued interest payable and other
liabilities 582 498
--------- --------
Net cash provided by operating activities 3,270 2,409
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
- -------------------------------------
Purchases of securities held-to-maturity (3,980) 0
Proceeds from maturities/principal paydowns
of securities held-to-maturity 4,979 1,142
Purchases of securities available-for-sale (49,691) (50)
Proceeds from sales of securities available-for-sale 7,018 2,930
Proceeds from maturities/principal paydowns
of securities available-for-sale 9,805 2,087
Net increase in loans receivable (12,530) (9,032)
Cash provided by merger 0 2,512
Additions to premises and equipment, net (580) (410)
--------- ---------
Net cash used in investing activities (44,979) (821)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
- -------------------------------------
Net increase in deposits 4,333 1,960
Net change in federal funds purchased and securities
sold under repurchase agreements 15,103 (5,883)
Proceeds from issuance of common stock 214 0
--------- ---------
Net cash provided by/(used in) financing activities 19,650 (3,923)
--------- ---------
Net decrease in cash and cash equivalents (22,059) (2,335)
Cash and cash equivalents at beginning
of period 69,686 28,045
--------- ---------
Cash and cash equivalents at end of period $ 47,627 $25,710
========= =========
</TABLE>
The accompanying condensed notes are an integral part of these financial
statements.
Page 5 of 15
<PAGE> 6
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 1996
(unaudited) (in thousands)
1. Basis of Financial Statement Presentation.
The interim financial statements of Franklin Bancorporation, Inc. ("Franklin")
have been prepared pursuant to the requirements for reporting on Form 10-Q and
reflect all adjustments (consisting only of normal recurring adjustments) which
were, in the opinion of management, necessary for a fair statement of the
results of the periods presented. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. Accordingly,
these unaudited statements should be read in conjunction with the audited
financial statements and related notes in Franklin's most current annual
report. The current period's results of operations are not necessarily
indicative of results which ultimately may be achieved for the year.
2. Securities.
The amortized cost and market value of securities are summarized as follows:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
Amortized Market Amortized Market
SECURITIES AVAILABLE-FOR-SALE Cost Value Cost Value
- ----------------------------- ---------- --------- --------- -----
<S> <C> <C> <C> <C>
U.S. treasury securities $18,226 $18,205 $ 9,418 $ 9,454
U.S. government agencies 47,779 47,176 20,576 20,843
Step-up and structured notes 6,916 6,590 9,893 9,757
Mortgage-backed securities 2,809 2,749 3,100 3,164
Equity securities 1,866 1,866 1,649 1,649
-------- -------- -------- -------
Total $77,596 $76,586 $44,636 $44,867
======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
Amortized Market Amortized Market
SECURITIES HELD-TO-MATURITY Cost Value Cost Value
- --------------------------- --------- ------ -------- -----
<S> <C> <C> <C> <C>
U.S. treasury securities $17,967 $17,682 $21,408 $21,339
U.S. government agencies 2,990 2,928 1,988 1,984
Mortgage-backed securities 39,371 37,544 40,877 40,046
Municipal securities 2,980 2,950 0 0
------- ------- ------- -------
Total $63,308 $61,104 $64,273 $63,369
======= ======= ======= =======
</TABLE>
Page 6 of 15
<PAGE> 7
3. Loans.
Major categories of loans are as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- -----------
<S> <C> <C>
Real Estate
Commercial $ 39,048 $ 26,818
Construction and development 10,219 9,394
Residential mortgage 17,285 20,638
--------- --------
Total Real Estate 66,552 56,850
--------- --------
Commercial and Industrial 114,233 111,110
Consumer
Consumer 10,691 11,279
Home equity 3,446 2,804
--------- --------
Total Consumer 14,137 14,083
Total 194,922 182,043
--------- --------
Unearned income (440) (393)
--------- ---------
Loans, net of unearned income $194,482 $181,650
--------- --------
</TABLE>
At June 30, 1996, impaired loans totaled $565,000 with a corresponding
valuation allowance of $191,000. All of the loans deemed to be impaired are
commercial loans. Included in impaired loans is one loan of $120,000 which has
been restructured.
For the six months ended June 30, 1996, the average recorded investment in
impaired loans was approximately $786,000. Had all of these loans performed in
accordance with their original terms, interest income of approximately $38,000
would have been recorded during the first six months of 1996. Franklin
recognized $10,000 in interest on impaired loans during the first six months of
1996.
At June 30, 1996, Franklin had no other loans on non-accrual other than those
deemed to be impaired loans. Loans 90 days or more past due which were still
accruing interest totaled $88,000.
Page 7 of 15
<PAGE> 8
Changes in the allowance for loan losses for the six months ended June 30, 1996
are as follows:
<TABLE>
<S> <C>
Balance, January 1 $3,443
Charge-offs:
Real Estate (55)
Commercial (88)
Consumer (31)
--------
Total (174)
--------
Recoveries:
Real Estate 80
Commercial 388
Consumer 8
-------
Total 476
-------
Net recoveries 302
Provision for loan losses 27
Balance, June 30 $3,772
=======
Net charge-offs to average loans (0.16)%
</TABLE>
Franklin National Bank of Washington, D.C. and Franklin National Bank of
Virginia, in the normal course of business, make loans to executive officers,
directors and stockholders, as well as to companies and individuals affiliated
with those officers and directors. In the opinion of management, these loans
are consistent with sound banking practices, are within regulatory lending
limits and do not involve more than normal risk of collectibility.
Activity in such loans is summarized as follows:
<TABLE>
<S> <C>
Balance, January 1, 1996 $ 9,319
New loans 3,243
Repayments (2,967)
--------
Balance, June 30, 1996 $ 9,595
========
</TABLE>
There were no loans to directors, officers or related parties that were
impaired as of June 30, 1996.
Page 8 of 15
<PAGE> 9
4. Time deposits, including IRA's, are as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
--------- -----------
<S> <C> <C>
Certificates less than $100,000 $15,366 $13,158
Certificates of $100,000 or more 55,607 64,786
</TABLE>
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations.
FINANCIAL SUMMARY
Net income for the six months ended June 30, 1996 increased by 28% to $2.02
million or $0.31 per share compared to $1.57 million or $0.26 per share for the
same period in 1995. Returns on average assets and average equity for the
first six months of 1996 were 1.12% and 14.93%, respectively, compared to 1.15%
and 14.44% for the same period in 1995.
Net income for the quarter ended June 30, 1996 increased by 24% to $1.05
million or $0.16 per share compared to $847,000 or $0.13 per share for the
second quarter of 1995. Returns on average assets and average equity for the
second quarter of 1996 were 1.14% and 15.46%, respectively, compared to 1.17%
and 14.37% for the same period in 1995.
Contributing to the increase in earnings for the first six months of 1996 were
improvements in net interest income, reductions in loan loss provisions, growth
in service charges and other fees and the effect of the merger with The George
Washington Banking Corporation. As the merger was effective at the close of
business on March 31, 1995, the earnings of the resulting bank, Franklin
National Bank of Virginia, have been fully consolidated into Franklin's 1996
earnings. The earnings improvement was partially offset by increases in
compensation and occupancy expenses as Franklin expanded its branch network
from 4 to 9 branches over the last 13 months. Earnings for the second quarter
of 1996 increased to a lesser extent when compared to the second quarter of
1995 primarily due to increasing deposit costs.
Page 9 of 15
<PAGE> 10
Franklin has filed applications with the Office of the Comptroller of the
Currency to merge and consolidate its two banks, Franklin of Washington, D.C.
and Franklin of Virginia. It is anticipated the consolidation will be
completed in the third quarter of 1996, resulting in service efficiencies for
Franklin customers as well as operational efficiencies for Franklin.
Franklin continued to experience significant growth as total assets increased
to $388.6 million at June 30, 1996 compared to $367 million at December 31,
1995 representing an increase of $21.6 million or 6%. Loan demand continued to
improve as loans, net of unearned income, increased by $12.8 million to $194.5
million at June 30, 1996 compared to $181.7 million at year-end 1995. Total
deposits and customer repurchase agreements were $357.7 million at June 30,
1996 compared to $338.3 million at December 31, 1995, representing an increase
of 6%. Franklin's deposit mix at June 30,1996 included $97.4 million in
non-interest bearing deposits, representing 32% of total deposits.
Shareholders' equity at June 30, 1996 totaled $27.9 million compared to $26.4
million at December 31, 1995. Book value per share of common stock on June 30,
1996 was $4.41 per share compared to $4.20 per share at December 31, 1995. The
increase in equity was primarily attributable to the retention of earnings.
EARNINGS ANALYSIS
Net interest income
Net interest income is Franklin's primary source of earnings and represents the
difference between interest and fees earned on earning assets and the interest
paid on deposits and other interest bearing liabilities. Net interest income
totaled $8.2 million for the first six months of 1996 compared to $6.7 million
for the same period of 1995. The improvements in net interest income were
primarily attributable to a higher volume of earning assets and secondarily to
the merger. Average earning assets increased 24% to $338 million for the six
months ended June 30, 1996 as compared to $272.6 million for the six months
ended June 30, 1995. Of that growth, 55% occurred in Franklin's loan
portfolio, its highest yielding asset. The merger added $18.7 million in new
loans.
Total interest income increased $2.7 million, or 26% to $13.2 million for the
first six months of 1996 as compared to $10.5 million for the same period of
1995, with 67%, or $1.8 million, of that increase occurring in interest and
fees on loans. Interest expense increased $1.2 million, or 31%, to $5 million
for the
Page 10 of 15
<PAGE> 11
first six months of 1996 as compared to $3.8 million for the same period of
1995. The increase is primarily due to volume increases in average
interest-bearing liabilities which grew 25% to $249.8 million for the six
months ended June 30, 1996 as compared to $199.5 million for the same period in
1995.
As a result of prime rate decreases, which impact Franklin's adjustable rate
loan portfolio, and competitive market pressures on deposit rates, Franklin's
net interest margin declined to 4.92% for the six months ended June 30, 1996 as
compared to 5.20% for the same period one year ago. Management intends to
continue to seek opportunities to increase the volume of Franklin's highest
yielding assets, loans, to sustain and improve its margin.
For the quarter ended June 30, 1996, net interest income totaled $4.2 million
as compared to $3.6 million for the second quarter of 1995, an increase of 18%.
The rate of increase has slowed in the second quarter as Franklin's deposit
growth has exceeded its loan growth. Loan portfolio growth for the second
quarter of 1996 was $9.2 million, or 5%, while interest bearing liabilities
grew $19.6 million, or 8%. Excess funds have been placed in the securities
portfolio and in short-term investments, at resulting lower yields, to provide
the liquidity to fund future loan demand. The growth in the securities
portfolio occurred primarily in the available-for-sale portfolio with purchases
of U.S. Treasury and agency securities. Total interest income increased $1.1
million, or 20%, to $6.7 million for the second quarter of 1996 as compared to
$5.6 million for the second quarter of 1995. Interest and fees on loans
represented $533,000, or 47% of that increase. Interest expense for the second
quarter of 1996 increased by 23%, or $472,000, from $2 million for the quarter
ended June 30, 1995 to $2.5 million for the current quarter.
Non-interest income
Non-interest income, excluding securities gains, increased $122,000, or 19%,
from $626,000 for the six months ending June 30, 1995 to $748,000 for the same
period ending June 30, 1996. For the second quarter of 1996, non-interest
income, excluding securities gains, increased 12% to $394,000 from $351,000 for
the second quarter of 1995. The increases are a result of management's
on-going review of its fee structure for services provided to its customers,
as well as the continued expansion of its commercial deposit product offerings,
such as cash management and payroll processing services.
Page 11 of 15
<PAGE> 12
Non-interest expense
Total non-interest expense of $5.7 million for the six months ended June 30,
1996 increased $1.2 million, or 26%, compared to $4.5 million for the same
period in 1995. The components of this increase were as follows: compensation
and employee benefits $814,000, or 69% of the increase, occupancy expense
$249,000, or 21%, and other operating expense $112,000, or 10%. The increases
in all expense categories over 1995 levels are primarily due to Franklin's
geographic expansion efforts which included the Virginia bank merger, three
branch openings in the District of Columbia, one branch opening in Tysons,
Virginia and one branch opening in Bethesda, Maryland. For the second quarter
of 1996, non-interest expense increased 18% over second quarter 1995 from $2.5
million to $2.9 million due to branch expansion efforts.
ASSET QUALITY
Asset quality has continued to improve, resulting in a reduction in provisions
for loan losses to $27,000 for the six months ended June 30, 1996 as compared
to $135,000 for the same period one year ago. For the six months ended June
30, 1996, Franklin recognized net loan recoveries of $302,000, as Franklin
received payments from loans charged-off in prior years. At June 30, 1996, the
allowance for loan losses represented 1.94% of total loans as compared to 1.90%
at December 31, 1995.
Non-performing assets decreased to $565,000 at June 30, 1996 from $1.3 million
at June 30, 1995, representing only 0.29% of total loans on June 30, 1996 as
compared to 0.77% of total loans on June 30, 1995. This represents a
significant improvement from December 31, 1995 when non-performing assets
totaled $1.6 million or 0.88% of total loans. The allowance for loan losses as
a percentage of non-performing assets increased from 216% on December 31, 1995
to 668% on June 30, 1996. Management believes that all major loan portfolio
deficiencies have been identified and adequate reserves have been established.
Page 12 of 15
<PAGE> 13
PART II - OTHER INFORMATION
Item 1 - Pending Legal Proceedings
At the present time, there are no material legal proceedings to which Franklin
is a party or to which any of Franklin's property is subject. In addition, to
the best of Franklin's knowledge, no such proceedings are contemplated by
government authorities.
Item 2 - Changes in Securities
There were no changes in the rights of Franklin shareholders during the last
quarter.
Item 3 - Defaults Upon Senior Securities
There were no reportable occurrences during the last quarter.
Item 4 - Submission of Matters to a Vote of Security Holders
There were no reportable occurrences during the last quarter.
Item 5 - Other Information
No other reportable information.
Item 6 - Exhibits and Reports on Form 8-K
a. Exhibits:
See Exhibit 11, "Computation of Primary and Fully Diluted Earnings per
Share."
b. Reports on Form 8-K
There were no reportable occurrences during the quarter.
Page 13 of 15
<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.
FRANKLIN BANCORPORATION, INC.
August 8, 1996 Robert P. Pincus
- ----------------- -------------------------------------
Date Robert P. Pincus
President and Chief Executive Officer
August 8, 1996 Diane M. Begg
- ----------------- -------------------------------------
Date Diane M. Begg
Senior Vice President and Chief
Financial Officer
Page 14 of 15
<PAGE> 1
FRANKLIN BANCORPORATION, INC.
EXHIBIT 11
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE:
(DOLLARS IN THOUSANDS - EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE THREE MONTH PERIOD FOR THE SIX MONTH PERIOD
ENDED JUNE 30, ENDED JUNE 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $ 1,052 $ 847 $ 2,016 $ 1,574
Primary earnings (A) 1,052 847 2,016 1,574
Fully diluted earnings (B) 1,052 847 2,016 1,574
Weighted average shares outstanding 6,326,039 6,245,057 6,321,966 5,931,708
Dilutive common stock equivalents for primary
earnings per share 274,189 202,631 275,341 159,113
--------- ---------- ----------- ---------
Weighted average shares and common equivalent shares
outstanding for primary earnings per share (C) 6,600,228 6,447,688 6,597,307 6,090,821
Equivalent shares assuming full dilution 279,329 204,058 278,773 194,684
--------- ---------- ----------- ----------
Weighted average shares and common equivalent
shares outstanding for fully diluted earnings
per share (D) 6,605,368 6,449,115 6,600,739 6,126,392
Earnings per share
Primary (A)/(C) $ 0.16 $ 0.13 $ 0.31 $ 0.26
Fully diluted (B)/(D) $ 0.16 $ 0.13 $ 0.31 $ 0.26
</TABLE>
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED SIX MONTH PERIOD ENDED JUNE 30, 1996 CONSOLIDATED FINANCIAL
STATEMENTS OF FRANKLIN BANCORPORATION, INC. AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 17,804
<INT-BEARING-DEPOSITS> 498
<FED-FUNDS-SOLD> 29,325
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 76,586
<INVESTMENTS-CARRYING> 63,308
<INVESTMENTS-MARKET> 61,104
<LOANS> 194,482
<ALLOWANCE> 3,772
<TOTAL-ASSETS> 388,577
<DEPOSITS> 306,768
<SHORT-TERM> 50,972
<LIABILITIES-OTHER> 2,924
<LONG-TERM> 0
0
0
<COMMON> 634
<OTHER-SE> 27,279
<TOTAL-LIABILITIES-AND-EQUITY> 388,577
<INTEREST-LOAN> 8,838
<INTEREST-INVEST> 3,530
<INTEREST-OTHER> 848
<INTEREST-TOTAL> 13,216
<INTEREST-DEPOSIT> 4,120
<INTEREST-EXPENSE> 4,967
<INTEREST-INCOME-NET> 8,249
<LOAN-LOSSES> 27
<SECURITIES-GAINS> 31
<EXPENSE-OTHER> 5,672
<INCOME-PRETAX> 3,329
<INCOME-PRE-EXTRAORDINARY> 2,016
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,016
<EPS-PRIMARY> 0.31
<EPS-DILUTED> 0.31
<YIELD-ACTUAL> 7.88
<LOANS-NON> 565
<LOANS-PAST> 88
<LOANS-TROUBLED> 120
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,443
<CHARGE-OFFS> 174
<RECOVERIES> 476
<ALLOWANCE-CLOSE> 3,772
<ALLOWANCE-DOMESTIC> 3,301
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 471
</TABLE>
