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Shares Of Franklin Financial Network Inc. (FSB) Hit 52-Week High

Shares of Franklin Financial Network Inc. (FSB) recorded a new 52-week high of $38.54 on Wednesday, January 22, 2020, following the announcement of its strategic merger agreement with FB Financial Corp. (FBK). FSB closed Wednesday's trading session at $38.52, up $4.37 or 12.80%.

Franklin Financial Network Merger With FB Financial

Franklin Financial Network, parent company of Franklin Synergy Bank, and FirstBank's parent company FB Financial Corp. jointly announced that Franklin will be merged with and into FB Financial. The merger is expected to close in Q3 of 2020.

The transaction is expected to be about 10% accretive to FB Financial's EPS on a fully-phased in basis and neutral to FB Financial's tangible book value per share at the close of the transaction.

As per the terms of the agreement, Franklin shareholders will receive 0.9650 shares of FB Financial common stock and $2.00 in cash for each share of Franklin stock. Based on FB Financial's closing price of $38.80 per share as of January 17, 2019, the implied transaction value is about $611 million in the aggregate or $39.44 per share.

Franklin's CEO, Myers Jones, III, said, "...As we look ahead, we are very excited to announce that we will be joining our partners at FirstBank to continue to build a phenomenal middle Tennessee-headquartered bank and look forward to years of growing together, with our shared passion and focus on our customers, employees, communities, and shareholders."

Q4 Results

The company reported Q4 net income of $9.7 million or $0.64 per share versus $3.8 million or $0.25 per share last year.

Core net income rose to $10.2 million or $0.68 per share from the previous year's $9.2 million or $0.61 per share.

Net interest income was $28.3 million versus $26.9 million last year. Non-interest income was $4.57 million, compared to a loss of $384 thousand reported in the prior year period.

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