First Franklin Corp. (FFHS, Financial) filed Quarterly Report for the period ended 2009-03-31.
FIRST FRANKLIN CORP.is a bank holding company engaged in general banking business. First Franklin Corp. has a market cap of $8.5 million; its shares were traded at around $5.05 with and P/S ratio of 0.5. First Franklin Corp. had an annual average earning growth of 6.5% over the past 5 years.
Liquid assets increased $2.72 million during the quarter ended March 31, 2009 to $23.57 million. This increase reflects loan and mortgage-backed securities repayments of $19.64 million, loan sales of $54.77 million and deposit growth of $16.71 million, less loan disbursements of $69.30 million and repayment of borrowings of $17.33 million. At March 31, 2009, liquid assets were 7.43% of total assets.
At March 31, 2009, deposits were $239.82 million compared to $223.11 million at December 31, 2008, an increase of $16.71 million. During the current quarter, consumers moved funds into insured deposit products from uninsured investments, such as stocks, bonds and mutual funds, due to the uncertainty in the financial markets. As a result, core deposits increased $3.94 million and certificates increased $12.77 million. Interest of $1.67 million during the current quarter was credited to accounts. After eliminating the effect of interest credited, deposits increased $15.04 during the quarter ended March 31, 2009.
At March 31, 2009, $13.49 million of assets were classified substandard, no assets were classified doubtful, $1.90 million were classified loss and $3.96 million were designated by management as special mention, compared to $9.70 million as substandard, $2.23 million as loss and $3.80 million designated as special mention at December 31, 2008. Non-accruing loans and accruing loans delinquent 90 days or more, net of reserves, were $8.26 million at March 31, 2009 and $5.20 million at December 31, 2008. The increase in assets classified substandard and non-accruing loans is due to the addition of a $759,000 mortgage loan secured by a church, a single family home with a book value of $1.66 million and 11 other mortgage loans secured by one-to four-family properties with an aggregate net book value of $1.24 million. At March 31, 2009, the recorded investment in loans for which impairment has been recognized was approximately $5.49 million with related reserves of $1.72 million. Because of the current state of the real estate market, and the economy in general, Franklin believes that non-performing assets may increase. Resolving these problem assets may be a long-term process. The decrease in total loss reserves shown in the table below is the result of $452,000 in charge-offs, which included $230,000 on a multi-family loan and $186,000 on one-to four-family non-owner occupied properties.
Net income was $260,000 ($0.15 per basic share) for the current quarter compared to $104,000 ($0.06 per basic share) for the quarter ended March 31, 2008. The increase in income before taxes during the current three-month period, when compared to the same period in 2008, reflects increases of $100,000 in net interest income and $565,000 in profits on the sale of loans, which were partially offset by increases of $226,000 in noninterest expenses and $87,000 in provisions for loan losses and a decrease of $83,000 in profits on the sale of investments.
As the tables below illustrate, average interest-earning assets decreased $176,000 to $301.58 million during the three months ended March 31, 2009, from $301.76 million for the three months ended March 31, 2008. Average interest-bearing liabilities increased $5.19 million from $290.75 million for the three months ended March 31, 2008, to $295.94 million for the current three-month period. Thus, average net interest-earning assets decreased $5.37 million when comparing the two periods. The interest rate spread (the yield on interest-earning assets less the cost of interest-bearing liabilities) was 2.02% for the three months ended March 31, 2009, compared to 1.81% for the same period in 2008. The increase in the interest rate spread was the result of a decrease in the cost of interest-bearing liabilities from 3.96% for the three months ended March 31, 2008, to 3.35% for the same three-month period in 2009. During the same period, the yield on interest-earning assets decreased from 5.77% to 5.37%. The majority of the decrease in the cost of interest-bearing liabilities is the result of decreases in the cost of savings deposits from 1.43% to 0.77%, demand deposits from 0.90% to 0.39% and certificates from 4.60% to 4.08% and the decrease in the yield on interest-earning assets is the result of a decrease in the yield on loans from 5.83% to 5.48% and investment securities from 5.62% to 4.08%.
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FIRST FRANKLIN CORP.is a bank holding company engaged in general banking business. First Franklin Corp. has a market cap of $8.5 million; its shares were traded at around $5.05 with and P/S ratio of 0.5. First Franklin Corp. had an annual average earning growth of 6.5% over the past 5 years.
Highlight of Business Operations:
Loan disbursements of $69.30 million occurred during the current quarter compared to loan disbursements of $16.15 million during the three months ended March 31, 2008. Mortgage loan sales of $54.77 million occurred during the current three-month period compared to loan sales of $3.71 million in the first quarter of 2008. The increase in loan disbursements during the current quarter reflects the increase in the loan origination staff discussed earlier and lower interest rates which caused many borrowers to refinance their existing loans. At March 31, 2009, Franklin had $1.71 million of commitments to originate mortgage loans, $27.15 million of mortgage loans in various stages of processing that have not been committed, $2.11 million of undisbursed loan funds held on various construction loans, commitments to sell $27.91 million of mortgage loans and $18.84 million of undisbursed consumer and commercial lines of credit. Management believes that sufficient cash flow and borrowing capacity exist to fund these commitments. Included in loans receivable at March 31, 2009 were $2.27 million of available-for-sale mortgage loans, at the lower of cost or market, which were sold in April 2009.Liquid assets increased $2.72 million during the quarter ended March 31, 2009 to $23.57 million. This increase reflects loan and mortgage-backed securities repayments of $19.64 million, loan sales of $54.77 million and deposit growth of $16.71 million, less loan disbursements of $69.30 million and repayment of borrowings of $17.33 million. At March 31, 2009, liquid assets were 7.43% of total assets.
At March 31, 2009, deposits were $239.82 million compared to $223.11 million at December 31, 2008, an increase of $16.71 million. During the current quarter, consumers moved funds into insured deposit products from uninsured investments, such as stocks, bonds and mutual funds, due to the uncertainty in the financial markets. As a result, core deposits increased $3.94 million and certificates increased $12.77 million. Interest of $1.67 million during the current quarter was credited to accounts. After eliminating the effect of interest credited, deposits increased $15.04 during the quarter ended March 31, 2009.
At March 31, 2009, $13.49 million of assets were classified substandard, no assets were classified doubtful, $1.90 million were classified loss and $3.96 million were designated by management as special mention, compared to $9.70 million as substandard, $2.23 million as loss and $3.80 million designated as special mention at December 31, 2008. Non-accruing loans and accruing loans delinquent 90 days or more, net of reserves, were $8.26 million at March 31, 2009 and $5.20 million at December 31, 2008. The increase in assets classified substandard and non-accruing loans is due to the addition of a $759,000 mortgage loan secured by a church, a single family home with a book value of $1.66 million and 11 other mortgage loans secured by one-to four-family properties with an aggregate net book value of $1.24 million. At March 31, 2009, the recorded investment in loans for which impairment has been recognized was approximately $5.49 million with related reserves of $1.72 million. Because of the current state of the real estate market, and the economy in general, Franklin believes that non-performing assets may increase. Resolving these problem assets may be a long-term process. The decrease in total loss reserves shown in the table below is the result of $452,000 in charge-offs, which included $230,000 on a multi-family loan and $186,000 on one-to four-family non-owner occupied properties.
Net income was $260,000 ($0.15 per basic share) for the current quarter compared to $104,000 ($0.06 per basic share) for the quarter ended March 31, 2008. The increase in income before taxes during the current three-month period, when compared to the same period in 2008, reflects increases of $100,000 in net interest income and $565,000 in profits on the sale of loans, which were partially offset by increases of $226,000 in noninterest expenses and $87,000 in provisions for loan losses and a decrease of $83,000 in profits on the sale of investments.
As the tables below illustrate, average interest-earning assets decreased $176,000 to $301.58 million during the three months ended March 31, 2009, from $301.76 million for the three months ended March 31, 2008. Average interest-bearing liabilities increased $5.19 million from $290.75 million for the three months ended March 31, 2008, to $295.94 million for the current three-month period. Thus, average net interest-earning assets decreased $5.37 million when comparing the two periods. The interest rate spread (the yield on interest-earning assets less the cost of interest-bearing liabilities) was 2.02% for the three months ended March 31, 2009, compared to 1.81% for the same period in 2008. The increase in the interest rate spread was the result of a decrease in the cost of interest-bearing liabilities from 3.96% for the three months ended March 31, 2008, to 3.35% for the same three-month period in 2009. During the same period, the yield on interest-earning assets decreased from 5.77% to 5.37%. The majority of the decrease in the cost of interest-bearing liabilities is the result of decreases in the cost of savings deposits from 1.43% to 0.77%, demand deposits from 0.90% to 0.39% and certificates from 4.60% to 4.08% and the decrease in the yield on interest-earning assets is the result of a decrease in the yield on loans from 5.83% to 5.48% and investment securities from 5.62% to 4.08%.
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