<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 September 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: November 14, 1996
- --------------------------------------------------------------------------------
FRANKLIN BANCORPORATION, INC
------------------------------------------------------
(Exact name of registrant as specified in its charter)
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)
- --------------------------------------------------------------------------------
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 Novemer 8, 1996 was 6,360,144.
Page 1 of 15
<PAGE> 2
FRANKLIN BANCORPORATION, INC.
FORM 10-Q
September 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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME:
- ----------------
Interest and fees on loans $4,880 $4,081 $13,718 $11,110
Interest and dividends on securities 2,243 1,532 5,773 4,645
Interest on federal funds sold and securities
purchased under resale agreements 834 221 1,682 582
------- ------- -------- --------
Total interest income 7,957 5,834 21,173 16,337
------- ------- -------- --------
INTEREST EXPENSE:
- -----------------
Interest on deposits 2,115 1,826 6,235 4,963
Interest on securities sold under
repurchase agreements 824 253 1,671 904
------- ------- -------- --------
Total interest expense 2,939 2,079 7,906 5,867
------- ------- -------- --------
Net interest income 5,018 3,755 13,267 10,470
Provision for loan losses ----- 46 27 181
------- ------- -------- --------
Net interest income after provision
for loan losses 5,018 3,709 13,240 10,289
------- ------- -------- --------
NON-INTEREST INCOME:
- --------------------
Service charges on deposits 276 267 767 727
Other fee income 161 152 418 318
Gains on sales of securities, net ----- 46 31 54
------- ------- -------- --------
Total non-interest income 437 465 1,216 1,099
------- ------- -------- --------
NON-INTEREST EXPENSE:
- ---------------------
Compensation and employee benefits 1,736 1,307 4,796 3,553
Occupancy expense 475 332 1,257 865
Goodwill amortization 37 51 129 126
Other 1,359 908 3,097 2,551
------- ------- -------- --------
Total non-interest expense 3,607 2,598 9,279 7,095
------- ------- -------- --------
Income before income tax expense 1,848 1,576 5,177 4,293
Income tax expense 627 614 1,940 1,757
------- ------- -------- --------
NET INCOME $1,221 $ 962 $ 3,237 $ 2,536
======= ======= ======== ========
PRIMARY EARNINGS PER SHARE:(1)
- ------------------------------
Net Income $ 0.18 $ 0.15 $ 0.49 $ 0.41
FULLY DILUTED EARNINGS PER SHARE (1)
- ------------------------------------
Net Income $ 0.18 $ 0.15 $ 0.49 $ 0.40
</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
SEPTEMBER 30, DECEMBER 31,
ASSETS 1996 1995
- ------ ------------ -----------
<S> <C> <C>
Cash and due from banks $ 27,934 $ 21,811
Federal funds sold and securities purchased
under resale agreements 48,000 47,875
Securities available-for-sale 90,169 44,867
Securities held-to-maturity 65,107 64,273
---------- ---------
Securities 155,276 109,140
Loans, net of unearned income 207,626 181,650
Less: allowance for loan losses (4,014) (3,443)
---------- ---------
Loans, net 203,612 178,207
Premises and equipment, net 2,522 2,334
Goodwill, net 1,147 2,072
Accrued interest receivable 2,936 2,316
Other assets 3,988 3,276
---------- ---------
TOTAL ASSETS $445,415 $367,031
========== =========
LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------
LIABILITIES:
- ------------
Non-interest bearing deposits $124,641 $ 90,454
Interest bearing deposits 217,378 211,981
---------- ---------
Total deposits 342,019 302,435
Federal funds purchased and securities
sold under repurchase agreements 70,733 35,869
Accrued interest payable 873 903
Other liabilities 2,483 1,439
---------- ---------
Total liabilities 416,108 340,646
---------- ---------
STOCKHOLDERS' EQUITY:
- ---------------------
Common Stock, $0.10 par value, 25,000,000
shares authorized; 6,347,107 and 6,283,057
shares issued and outstanding, respectively 635 628
Capital surplus 19,903 19,649
Retained earnings 9,202 5,965
Unrealized (loss) gain on securities
available-for-sale (433) 143
---------- ---------
Total stockholders' equity 29,307 26,385
---------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $445,415 $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>
NINE MONTHS ENDED
SEPTEMBER 30,
-----------------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
- -------------------------------------
Net income $ 3,237 $ 2,536
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 27 181
Depreciation and amortization 647 560
Gains on sales of securities, net (31) (54)
Change in deferred tax valuation allowance (233) ------
Change in accrued interest receivable and
other assets 87 (865)
Change in accrued interest payable and other
liabilities 1,014 695
---------- ----------
Net cash provided by operating activities 4,748 3,053
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
- -------------------------------------
Purchases of securities held-to-maturity (9,315) ------
Proceeds from maturities/principal paydowns
of securities held-to-maturity 8,531 2,588
Purchases of securities available-for-sale (67,122) (4,075)
Proceeds from sales of securities available-for-sale 7,018 4,430
Proceeds from maturities/principal paydowns
of securities available-for-sale 13,894 4,389
Net increase in loans receivable (25,432) (16,840)
Cash provided by merger -------- 2,495
Additions to premises and equipment, net (783) (593)
----------- -----------
Net cash used in investing activities (73,209) (7,606)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
- -------------------------------------
Net increase in deposits 39,584 (2,619)
Net change in federal funds purchased and securities
sold under repurchase agreements 34,864 1,887
Proceeds from issuance of common stock 261 45
---------- ----------
Net cash provided by/(used in) financing activities 74,709 (687)
---------- ----------
Net increase (decrease) in cash and cash equivalents 6,248 (5,240)
Cash and cash equivalents at beginning
of period 69,686 28,045
---------- ----------
Cash and cash equivalents at end of period $ 75,934 $22,805
========== ==========
</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 SEPTEMBER 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>
September 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 $20,696 $20,708 $ 9,418 $ 9,454
U.S. government agencies 59,743 59,336 20,576 20,843
Step-up and structured notes 5,923 5,632 9,893 9,757
Mortgage-backed securities 2,717 2,615 3,100 3,164
Equity securities 1,878 1,878 1,649 1,649
-------- -------- -------- --------
Total $90,957 $90,169 $44,636 $44,867
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
September 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 $15,971 $15,727 $21,408 $21,339
U.S. government agencies 6,991 6,937 1,988 1,984
Mortgage-backed securities 37,830 36,101 40,877 40,046
Municipal securities 4,315 4,303 ------ ------
-------- -------- -------- --------
Total $65,107 $63,068 $64,273 $63,369
======== ======== ======== ========
</TABLE>
Page 6 of 15
<PAGE> 7
3. Loans.
Major categories of loans are as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ -----------
<S> <C> <C>
Real Estate
Commercial $ 39,483 $ 26,818
Construction and development 14,039 9,394
Residential mortgage 16,008 20,638
--------- ---------
Total Real Estate 69,530 56,850
--------- ---------
Commercial and Industrial 125,196 111,110
Consumer
Consumer 9,780 11,279
Home equity 3,533 2,804
--------- ---------
Total Consumer 13,313 14,083
Total 208,039 182,043
--------- ---------
Unearned income (413) (393)
--------- ---------
Loans, net of unearned income $207,626 $181,650
--------- ---------
</TABLE>
At September 30, 1996, impaired loans totaled $841,000 with a corresponding
valuation allowance of $207,000. Primarily all of the loans deemed to be
impaired are commercial loans. Included in impaired loans is one loan of
$117,000 which has been restructured.
For the nine months ended September 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
$63,000 would have been recorded during the first nine months of 1996.
Franklin recognized $10,000 in interest on impaired loans during the first nine
months of 1996.
At September 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 $80,000.
Page 7 of 15
<PAGE> 8
Changes in the allowance for loan losses for the nine months ended September
30, 1996 are as follows:
<TABLE>
<S> <C>
Balance, January 1 $3,443
Charge-offs:
Real Estate (55)
Commercial (125)
Consumer (93)
---------
Total (273)
---------
Recoveries:
Real Estate 91
Commercial 718
Consumer 8
--------
Total 817
--------
Net recoveries 544
Provision for loan losses 27
Balance, September 30 $4,014
========
Net charge-offs to average loans (0.29)%
</TABLE>
Franklin National Bank,in the normal course of business, makes 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 4,291
Repayments (4,127)
---------
Balance, September 30, 1996 $ 9,483
=========
</TABLE>
There were no loans to directors, officers or related parties that were
impaired as of September 30,1996.
Page 8 of 15
<PAGE> 9
4. Time deposits, including IRA's, are as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
<S> <C> <C>
Certificates less than $100,000 $14,527 $13,158
Certificates of $100,000 or more 66,164 64,786
</TABLE>
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations.
FINANCIAL SUMMARY
Net income for the nine months ended September 30, 1996, increased by 28% to
$3.24 million or $0.49 per share compared to $2.54 million or $0.41 per share
for the same period in 1995. Returns on average assets and average equity for
the first nine months of 1996 were 1.12% and 15.71%, respectively, compared to
1.20% and 14.79% for the same period in 1995.
Net income for the quarter ended September 30, 1996 increased by 27% to $1.22
million or $0.18 per share compared to $962,000 or $0.15 per share for the
third quarter of 1995. Returns on average assets and average equity for the
third quarter of 1996 were 1.11% and 17.17%, respectively, compared to 1.39%
and 15.39% for the same period in 1995.
Contributing to the increase in earnings for the first nine 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.
Page 9 of 15
<PAGE> 10
Effective August 19, 1996, Franklin completed the merger and consolidation of
its two banks, Franklin National Bank of Washington, D.C. and Franklin National
Bank of Virginia into Franklin National Bank. As a result of the
consolidation, the deferred tax valuation allowance established against
Franklin National Bank of Virginia's net operating losses of approximately $1
million was reversed resulting in the elimination of the goodwill associated
with the purchase of approximately $800,000 and recognition of an income tax
credit of approximately $200,000. The consolidation will result in service
efficiencies for Franklin customers as well as operational efficiencies for
Franklin.
Franklin continued to experience significant growth as total assets increased
to $445.4 million at September 30, 1996 compared to $367 million at December
31, 1995 representing an increase of $78.4 million or 21%. Loan demand
continued to improve as loans, net of unearned income, increased by $25.9
million to $207.6 million at September 30, 1996 compared to $181.7 million at
year-end 1995. However, as deposit growth has exceeded loan growth,
investments in securities increased. Total securities were $155.3 million as
of September 30, 1996, an increase of $46.2 million, or 42%, over total
securities of $109.1 million at December 31, 1995. Total deposits and customer
repurchase agreements were $412.8 million at September 30, 1996 compared to
$338.3 million at December 31, 1995, representing an increase of 22%.
Franklin's deposit mix at September 30, 1996 included $124.6 million in
non-interest bearing deposits, representing 36% of total deposits.
Shareholders' equity at September 30, 1996 totaled $29.3 million compared to
$26.4 million at December 31, 1995. Book value per share of common stock on
September 30, 1996 was $4.62 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 earnings assets and the interest
paid on deposits and other interest bearing liabilities. Net interest income
totaled $13.3 million for the first nine months of 1996 compared to $10.5
million for the same period of 1995, an increase of 27%. 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 32% to
$362.1 million for the nine months ended September 30, 1996 as compared to
$274.4 million for the nine months ended September 30, 1995. Of that growth,
43% occurred in Franklin's loan portfolio, its highest yielding asset. The
merger added $18.7 million in new loans.
Page 10 of 15
<PAGE> 11
Total interest income increased $4.9 million, or 30%, to $21.2 million for the
first nine months of 1996 as compared to $16.3 million for the same period of
1995, with 53%, or $2.6 million, of that increase occurring in interest and
fees on loans. Interest expense increased $2.0 million, or 34%, to $7.9
million for the first nine months of 1996 as compared to $5.9 million for the
same period of 1995. The increase is primarily due to volume increases in
average interest bearing liabilities which grew 33% to $263 million for the
nine months ended September 30, 1996 as compared to $198.4 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 4.89% for the nine months ended September 30,
1996 as compared to 5.24% 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 September 30, 1996, net interest income totaled $5.0
million as compared to $3.8 million for the third quarter of 1995, an increase
of 32%. The rate of increase improved in the third quarter as Franklin
benefited from a large, short-term, non-interest bearing deposit account which
was invested in short-term federal funds and government securities. That
account will be substantially withdrawn by the end of October. Loan portfolio
growth for the third quarter of 1996 was $13.1 million, or 7%, while interest
bearing liabilities grew $27.8 million, or 11%. 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, of approximately $15 million during the third quarter,
occurred primarily in the available-for-sale portfolio with purchases of U.S.
Treasury and agency securities. Total interest income increased $2.1 million,
or 36%, to $7.9 million for the third quarter of 1996 as compared to $5.8
million for the third quarter of 1995. Interest and fees on loans represented
$799,000, or 38% of that increase. Interest expense for the third quarter of
1996 increased by 41%, or $860,000, from $2 million for the quarter ended
September 30, 1995 to $2.9 million for the current quarter.
Non-interest income
Non-interest income, excluding securities gains, increased $140,000, or 13%,
from $1.0 million for the nine months ending September 30, 1995 to $1.2 million
for the same period ending September 30, 1996. 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 $9.3 million for the nine months ended September
30, 1996 increased $2.2 million, or 31%, compared to $7.1 million for the same
period in 1995. The components of this increase were as follows: compensation
and employee benefits $1.2 million, or 57% of the increase, occupancy expense
$392,000, or 18%, and other operating expense $549,000, or 25%. 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 third quarter
of 1996, non-interest expense increased 38% over third quarter 1995 from $2.6
million to $3.6 million primarily due to expansion efforts.
ASSET QUALITY
Asset quality has continued to improve, resulting in a reduction in provisions
for loan losses to $27,000 for the nine months ended September 30, 1996 as
compared to $181,000 for the same period one year ago. For the nine months
ended September 30, 1996, Franklin recognized net loan recoveries of $544,000,
as Franklin received payments from loans charged-off in prior years. At
September 30, 1996, the allowance for loan losses represented 1.93% of total
loans as compared to 1.90% at December 31, 1995.
Non-performing assets decreased to $841,000 at September 30, 1996 from $1.4
million at September 30, 1995, representing only 0.40% of total loans on
September 30, 1996 as compared to 0.90% of total loans on September 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 477% on September 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.
November 8, 1996 Robert P. Pincus
- ------------------ -------------------------------------
Date Robert P. Pincus
President and Chief Executive Officer
November 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 NINE MONTH PERIOD
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $ 1,221 $ 962 $ 3,237 $ 2,536
Primary earnings (A) 1,221 962 3,237 2,536
Fully diluted earnings (B) 1,221 962 3,237 2,536
Weighted average shares outstanding 6,343,411 6,248,340 6,329,166 6,038,412
Dilutive common stock equivalents for primary
earnings per share 258,676 218,373 266,856 178,365
---------- ---------- ---------- -----------
Weighted average shares and common equivalent shares
outstanding for primary earnings per share (C) 6,602,087 6,466,713 6,596,022 6,216,777
Equivalent shares assuming full dilution 277,419 261,873 276,587 248,996
---------- ---------- ---------- -----------
Weighted average shares and common equivalent
shares outstanding for fully diluted earnings
per share (D) 6,620,830 6,510,213 6,605,753 6,287,408
Earnings per share
Primary (A)/(C) $ 0.18 $ 0.15 $ 0.49 $ 0.41
Fully diluted (B)/(D) $ 0.18 $ 0.15 $ 0.49 $ 0.40
</TABLE>
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED NINE MONTH PERIOD ENDED SEPTEMBER 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 27,554
<INT-BEARING-DEPOSITS> 380
<FED-FUNDS-SOLD> 48,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 90,169
<INVESTMENTS-CARRYING> 65,107
<INVESTMENTS-MARKET> 63,068
<LOANS> 207,626
<ALLOWANCE> 4,014
<TOTAL-ASSETS> 445,415
<DEPOSITS> 342,019
<SHORT-TERM> 70,733
<LIABILITIES-OTHER> 3,356
<LONG-TERM> 0
0
0
<COMMON> 635
<OTHER-SE> 28,673
<TOTAL-LIABILITIES-AND-EQUITY> 445,415
<INTEREST-LOAN> 13,718
<INTEREST-INVEST> 5,773
<INTEREST-OTHER> 1,682
<INTEREST-TOTAL> 21,173
<INTEREST-DEPOSIT> 6,235
<INTEREST-EXPENSE> 1,671
<INTEREST-INCOME-NET> 7,906
<LOAN-LOSSES> 27
<SECURITIES-GAINS> 31
<EXPENSE-OTHER> 9,279
<INCOME-PRETAX> 5,177
<INCOME-PRE-EXTRAORDINARY> 3,237
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,237
<EPS-PRIMARY> 0.49
<EPS-DILUTED> 0.49
<YIELD-ACTUAL> 7.56
<LOANS-NON> 841
<LOANS-PAST> 80
<LOANS-TROUBLED> 117
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3443
<CHARGE-OFFS> 273
<RECOVERIES> 817
<ALLOWANCE-CLOSE> 4014
<ALLOWANCE-DOMESTIC> 4014
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,048
</TABLE>
