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Franklin Financial Network

NYSE:FSB
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FSB
NYSE
$453M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Franklin Financial Network, Inc. operates as the holding company for Franklin Synergy Bank that provides various banking and related financial services to small businesses, corporate entities, local governments, and individuals. The last earnings update was 55 days ago. More info.


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FSB Share Price and Events
7 Day Returns
3.5%
NYSE:FSB
2.4%
US Banks
2.4%
US Market
1 Year Returns
-6.6%
NYSE:FSB
-9.8%
US Banks
1.9%
US Market
FSB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Franklin Financial Network (FSB) 3.5% -8.8% 19.6% -6.6% 10% -
US Banks 2.4% 0.5% 12.6% -9.8% 48.9% 40.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • FSB outperformed the Banks industry which returned -9.8% over the past year.
  • FSB underperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
FSB
Industry
5yr Volatility vs Market

Value

 Is Franklin Financial Network undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Franklin Financial Network to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Franklin Financial Network.

NYSE:FSB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $29.40 * 10.5%
$3.10
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $29.40
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FSB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.637 (1 + (1- 21%) (94.36%))
1.075
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.075 * 5.96%)
9.14%

Discounted Cash Flow Calculation for NYSE:FSB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Franklin Financial Network is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:FSB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.5% – 9.14%) * $29.40)
$0.41
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.41 / (9.14% - 2.73%)
$6.45
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $29.40 + $6.45
$35.85
NYSE:FSB Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.85
Current discount Discount to share price of $31.14
= -1 x ($31.14 - $35.85) / $35.85
13.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Franklin Financial Network is available for.
Intrinsic value
13%
Share price is $31.14 vs Future cash flow value of $35.85
Current Discount Checks
For Franklin Financial Network to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Franklin Financial Network's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Franklin Financial Network's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Franklin Financial Network's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Franklin Financial Network's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FSB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.46
NYSE:FSB Share Price ** NYSE (2019-03-18) in USD $31.14
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.36x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Franklin Financial Network.

NYSE:FSB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FSB Share Price ÷ EPS (both in USD)

= 31.14 ÷ 2.46

12.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franklin Financial Network is good value based on earnings compared to the US Banks industry average.
  • Franklin Financial Network is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Franklin Financial Network's expected growth come at a high price?
Raw Data
NYSE:FSB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
11%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.24x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:FSB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.65x ÷ 11%

1.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franklin Financial Network is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Franklin Financial Network's assets?
Raw Data
NYSE:FSB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $25.64
NYSE:FSB Share Price * NYSE (2019-03-18) in USD $31.14
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.25x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:FSB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FSB Share Price ÷ Book Value per Share (both in USD)

= 31.14 ÷ 25.64

1.21x

* Primary Listing of Franklin Financial Network.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franklin Financial Network is good value based on assets compared to the US Banks industry average.
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Value checks
We assess Franklin Financial Network's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Franklin Financial Network has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Franklin Financial Network expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Franklin Financial Network expected to grow at an attractive rate?
  • Franklin Financial Network's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Franklin Financial Network's earnings growth is positive but not above the United States of America market average.
  • Franklin Financial Network's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FSB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FSB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 11%
NYSE:FSB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 10.7%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FSB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FSB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 142 43 5
2019-12-31 131 40 5
NYSE:FSB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 114 35
2018-09-30 115 41 33
2018-06-30 112 37 31
2018-03-31 110 41 30
2017-12-31 107 56 28
2017-09-30 104 56 33
2017-06-30 101 49 31
2017-03-31 96 42 29
2016-12-31 91 28 28
2016-09-30 87 27 25
2016-06-30 81 34 23
2016-03-31 74 41 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Franklin Financial Network's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • Franklin Financial Network's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FSB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Franklin Financial Network Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FSB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.92 3.17 2.56 6.00
2019-12-31 2.70 2.80 2.54 6.00
NYSE:FSB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.46
2018-09-30 2.39
2018-06-30 2.33
2018-03-31 2.29
2017-12-31 2.14
2017-09-30 2.57
2017-06-30 2.56
2017-03-31 2.58
2016-12-31 2.56
2016-09-30 2.40
2016-06-30 2.22
2016-03-31 1.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Franklin Financial Network is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Franklin Financial Network's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Franklin Financial Network has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Franklin Financial Network performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Franklin Financial Network's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Franklin Financial Network has delivered over 20% year on year earnings growth in the past 5 years.
  • Franklin Financial Network's 1-year earnings growth is less than its 5-year average (23.8% vs 33.5%)
  • Franklin Financial Network's earnings growth has not exceeded the US Banks industry average in the past year (23.8% vs 43.2%).
Earnings and Revenue History
Franklin Financial Network's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Franklin Financial Network Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FSB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 113.91 34.51 60.92
2018-09-30 114.93 32.83 55.38
2018-06-30 112.36 31.23 52.82
2018-03-31 109.66 29.98 50.35
2017-12-31 107.45 27.86 48.85
2017-09-30 103.98 32.60 46.85
2017-06-30 100.84 30.84 45.55
2017-03-31 96.06 29.47 43.76
2016-12-31 91.48 27.75 41.96
2016-09-30 86.69 25.23 40.29
2016-06-30 81.34 23.23 37.85
2016-03-31 73.72 18.89 35.81
2015-12-31 67.24 15.81 34.01
2015-09-30 63.09 13.99 31.93
2015-06-30 58.02 10.88 32.02
2015-03-31 51.99 9.79 28.77
2014-12-31 45.27 8.22 26.66
2014-09-30 38.78 6.82 23.21
2014-06-30 31.43 5.83 18.60
2014-03-31 28.87 5.00 17.55
2013-12-31 26.87 4.43 16.81
2013-09-30 25.61 4.56 16.30
2012-12-31 22.54 3.68 14.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Franklin Financial Network has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Franklin Financial Network used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Franklin Financial Network improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Franklin Financial Network's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Franklin Financial Network has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Franklin Financial Network's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Franklin Financial Network's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Franklin Financial Network Company Filings, last reported 2 months ago.

NYSE:FSB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 372.83 427.19 283.81
2018-09-30 356.18 430.15 147.76
2018-06-30 348.16 410.45 188.54
2018-03-31 304.87 411.63 249.02
2017-12-31 304.65 361.52 254.57
2017-09-30 303.70 428.33 158.21
2017-06-30 293.02 387.51 99.27
2017-03-31 278.51 345.81 116.70
2016-12-31 270.36 273.64 92.21
2016-09-30 209.64 266.14 56.80
2016-06-30 204.28 146.98 73.12
2016-03-31 191.91 145.44 63.12
2015-12-31 188.82 158.09 53.06
2015-09-30 187.61 94.62 47.91
2015-06-30 177.08 93.58 43.41
2015-03-31 178.54 54.94 48.83
2014-12-31 121.80 58.08 49.88
2014-09-30 116.45 67.29 37.28
2014-06-30 74.20 48.99 26.58
2014-03-31 68.83 55.83 31.29
2013-12-31 65.16 47.29 18.68
2013-09-30 64.13 69.39 17.10
2012-12-31 51.36 9.60 25.69
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Franklin Financial Network has an acceptable proportion of non-loan assets held.
  • Franklin Financial Network's liabilities are made up of primarily low risk sources of funding.
  • Loans at Franklin Financial Network are broadly funded by customer deposits.
  • Franklin Financial Network's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Franklin Financial Network has a sufficient allowance for bad loans.
  • Franklin Financial Network has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Franklin Financial Network's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Franklin Financial Network has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Franklin Financial Network's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.51%
Current annual income from Franklin Financial Network dividends. Estimated to be 0.54% next year.
If you bought $2,000 of Franklin Financial Network shares you are expected to receive $10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Franklin Financial Network's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Franklin Financial Network's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FSB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FSB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.17 3.00
2019-12-31 0.16 3.00
NYSE:FSB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-23 0.160 0.498

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Franklin Financial Network is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Franklin Financial Network is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Franklin Financial Network's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Franklin Financial Network's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Franklin Financial Network's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Franklin Financial Network's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Franklin Financial Network afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Franklin Financial Network has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Franklin Financial Network's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
J. Jones
COMPENSATION $256,090
AGE 67
TENURE AS CEO 0 years
CEO Bio

Mr. J. Myers Jones, III has been an Interim Chief Executive Officer at Franklin Financial Network, Inc. and Franklin Synergy Bank since March 8, 2019. Mr. Jones was an Executive Vice President and Chief Credit Officer of Franklin Synergy Bank since 2011 until March 8, 2019. Mr. Jones has more than 30 years of local community banking experience, most recently with Cadence Bank in Franklin, Tennessee, where he served as Executive Vice President of Commercial Lending. Prior to his service at Cadence Bank, Mr. Jones served as President and Chief Executive Officer of Franklin National Bank in Franklin, Tennessee, for 13 years prior to Franklin National’s acquisition by Fifth Third Bank. In addition to Franklin National Bank and Cadence Bank, Mr. Jones was instrumental in the success of several other area banks, including Sovran Bank and Commerce Union Bank. Mr. Jones is a graduate of Austin Peay State University in Clarksville, Tennessee and the Herbert V. Prochnow Graduate School of Banking at the University of Wisconsin in Madison, Wisconsin. In addition, Mr. Myers is a graduate of the ABA National Commercial Lending School at the University of Oklahoma.

CEO Compensation
  • J.'s compensation has been consistent with company performance over the past year.
  • Insufficient data for J. to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Franklin Financial Network management team in years:

5.2
Average Tenure
64.5
Average Age
  • The average tenure for the Franklin Financial Network management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Kemp

TITLE
Secretary & Director
COMPENSATION
$194K
AGE
59

Sally Bowers

TITLE
Executive VP & Chief Mortgage Officer of Franklin Synergy Bank
COMPENSATION
$649K
AGE
65
TENURE
11.3 yrs

David McDaniel

TITLE
Executive VP
COMPENSATION
$512K
AGE
50
TENURE
6.2 yrs

J. Jones

TITLE
Interim Chief Executive Officer
COMPENSATION
$256K
AGE
67

Lee Moss

TITLE
Interim President
COMPENSATION
$334K
AGE
67

Chris Black

TITLE
Executive VP & CFO
AGE
43
TENURE
0.3 yrs

Sally Kimble

TITLE
Executive VP & Chief Administrative Officer
AGE
64
TENURE
5.2 yrs

Terry Howell

TITLE
Executive VP & Corporate Risk Officer
TENURE
2.8 yrs

Beverly Dinsdale

TITLE
Vice President

Dallas Caudle

TITLE
Executive VP & Rutherford County President of Franklin Synergy Bank
AGE
70
Board of Directors Tenure

Average tenure and age of the Franklin Financial Network board of directors in years:

2.7
Average Tenure
59
Average Age
  • The average tenure for the Franklin Financial Network board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Cross

TITLE
Chairman
COMPENSATION
$194K
AGE
54

David Kemp

TITLE
Secretary & Director
COMPENSATION
$194K
AGE
59
TENURE
0.8 yrs

Pam Stephens

TITLE
Director
COMPENSATION
$198K
AGE
59
TENURE
9.7 yrs

Jimmy Allen

TITLE
Director
COMPENSATION
$202K
AGE
78
TENURE
4.7 yrs

Ben Wynd

TITLE
Director
COMPENSATION
$198K
AGE
40
TENURE
3.6 yrs

Melody Sullivan

TITLE
Lead Independent Director
COMPENSATION
$199K
AGE
65

Hank Brockman

TITLE
Director
COMPENSATION
$195K
AGE
69
TENURE
0.8 yrs

Paul Pratt

TITLE
Director
COMPENSATION
$194K
AGE
54
TENURE
1.8 yrs

Greg Waldron

TITLE
Director
COMPENSATION
$194K
AGE
55
TENURE
3.9 yrs

Anil Patel

TITLE
Director
AGE
60
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Franklin Financial Network insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Feb 19 Sell Henry Brockman Individual 20. Feb 19 20. Feb 19 -1,000 $34.55 $-34,550
14. Feb 19 Sell Kevin Herrington Individual 13. Feb 19 13. Feb 19 -518 $33.02 $-17,087
29. Jan 19 Buy Pamela Stephens Individual 28. Jan 19 28. Jan 19 1,000 $31.65 $31,650
15. Aug 18 Sell Sarah Meyerrose Individual 14. Aug 18 14. Aug 18 -2,000 $38.50 $-77,000
02. Aug 18 Sell Sarah Meyerrose Individual 01. Aug 18 01. Aug 18 -876 $39.15 $-34,295
18. Jun 18 Sell Henry Brockman Individual 14. Jun 18 14. Jun 18 -1,600 $38.10 $-60,960
14. Jun 18 Sell Sally Kimble Individual 12. Jun 18 12. Jun 18 -271 $39.11 $-10,599
12. Jun 18 Sell Henry Brockman Individual 08. Jun 18 12. Jun 18 -5,700 $40.00 $-220,349
10. May 18 Sell Sally Kimble Individual 08. May 18 08. May 18 -759 $34.26 $-26,003
10. May 18 Sell Kevin Herrington Individual 09. May 18 09. May 18 -1,400 $34.81 $-48,734
X
Management checks
We assess Franklin Financial Network's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Franklin Financial Network has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Investor Owns Most Of Franklin Financial Network, Inc. (NYSE:FSB)?

The big shareholder groups in Franklin Financial Network, Inc. … Franklin Financial Network is a smaller company with a market capitalization of US$478m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Franklin Financial Network

Simply Wall St -

Here's What We Think About Franklin Financial Network, Inc.'s (NYSE:FSB) CEO Pay

Richard Herrington has been the CEO of Franklin Financial Network, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Richard Herrington's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Can Franklin Financial Network, Inc. (NYSE:FSB) Survive The Next Financial Crisis?

As a small-cap bank stock with a market capitalisation of US$472m, Franklin Financial Network, Inc.’s (NYSE:FSB) risk and profitability are largely determined by the underlying economic growth of the US regions in which it operates. … After the Financial Crisis in 2008, a set of reforms called Basel III was created with the purpose of strengthening regulation, risk management and supervision in the banking sector. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Franklin Financial Network to vulnerabilities.

Simply Wall St -

Is It Time To Consider Buying Franklin Financial Network, Inc. (NYSE:FSB)?

Franklin Financial Network, Inc. … (NYSE:FSB), operating in the financial services industry based in United States,. … Today I will analyse the most recent data on Franklin Financial Network’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Should You Be Worried About Insider Transactions At Franklin Financial Network, Inc. (NYSE:FSB)?

We often see insiders buying up shares in companies that perform well over the long term. … The Last 12 Months Of Insider Transactions At Franklin Financial Network. … Over the last year we saw more insider selling of Franklin Financial Network shares, than buying

Simply Wall St -

What You Should Know About Franklin Financial Network, Inc.’s (NYSE:FSB) Risks

Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Franklin Financial Network’s bottom line. … Looking through a risk-lens is a useful way to assess the attractiveness of Franklin Financial Network's a stock investment. … View our latest analysis for Franklin Financial Network

Simply Wall St -

Intrinsic Calculation For Franklin Financial Network Inc (NYSE:FSB) Shows Investors Are Overpaying

Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

How Does Investing In Franklin Financial Network Inc (NYSE:FSB) Impact The Volatility Of Your Portfolio?

If you're interested in Franklin Financial Network Inc (NYSE:FSB), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St -

Is Franklin Financial Network Inc (NYSE:FSB) Overpaying Its CEO?

In 2014 Richard Herrington was appointed CEO of Franklin Financial Network Inc (NYSE:FSB). … How Does Richard Herrington's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Richard Herrington is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

Understated Factors To Consider Before Investing In Franklin Financial Network Inc (NYSE:FSB)

As a small-cap bank stock with a market capitalisation of US$568.64m, Franklin Financial Network Inc’s (NYSE:FSB) risk and profitability are largely determined by the underlying economic growth of the US regions in which it operates. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Franklin Financial Network to vulnerabilities. … Today we will be measuring Franklin Financial Network’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Company Info

Description

Franklin Financial Network, Inc. operates as the holding company for Franklin Synergy Bank that provides various banking and related financial services to small businesses, corporate entities, local governments, and individuals. The company’s deposit products include demand, interest-bearing transaction accounts, money market accounts, certificates of deposit, municipal deposits, savings, and deposit accounts. The company also provides consumer lending solutions, including first mortgage real estate loans, home equity loans, and other personal loans; small business administration, and commercial and industrial loans; and single-family residential mortgage loans and construction loans for residential and commercial purposes. In addition, it offers wealth management/trust services; and retirement planning, financial planning, investment services, and insurance products. The company operates through 13 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area. Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee.

Details
Name: Franklin Financial Network, Inc.
FSB
Exchange: NYSE
Founded: 2007
$452,715,966
14,538,085
Website: http://www.franklinsynergybank.com
Address: Franklin Financial Network, Inc.
722 Columbia Avenue,
Franklin,
Tennessee, 37064,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FSB Common Stock New York Stock Exchange US USD 22. Mar 2013
Number of employees
Current staff
Staff numbers
327
Franklin Financial Network employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 00:30
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/01/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.