Local bank raises $138 million in new capital

franklinfederal1Come Thursday, Richmond will be home to a newly public bank flush with a load of fresh capital.

Franklin Federal Savings Bank’s transformation from an old-time mutual savings bank to a publicly traded institution is set to be completed this week.

Franklin Financial Corp., the proposed and soon-to-be public holding company of the Glen Allen-based bank, said Tuesday that it sold 13.88 million shares in its recent stock offering for $10 each, netting about $138 million.

The company said that it expects the offering to officially close Wednesday and that it expects its stock to begin trading on the NASDAQ Global Market on Thursday. Its ticker symbol will be “FRNK.”

“This was quite an undertaking,” said Franklin Federal CEO Rick Wheeler. “It didn’t change who we are as a company. But it certainly gave us a heck of a lot more capital. It just about doubled our capital.”

The offering was so successful that it was oversubscribed by the bank’s depositors and employees, who got first dibs.

“You don’t know what to expect on something like this,” Wheeler said. “We were very pleased with the reception.”

Franklin Federal first announced its plan to convert and go public in October. The bank has said it will look to use the money raised in the offering for potential acquisitions, branch expansion and increased lending.

Wheeler said there is no particular time line for how the money will be put to use.

“It’s a lot of funds to invest, and it would not be prudent to rush into anything,” he said. “We’re going to be cautious and deliberate.”

Franklin Federal was founded in 1933 as Federal Savings and Loan of Sandston and took its current name after it moved to Franklin Street downtown. The bank has about $980 million in total assets and 100 employees at eight branches, including its corporate headquarters in Innsbrook.

As of June 30, Franklin Federal controlled 2.23 percent of the FDIC-insured deposits in the Richmond market.

Kilpatrick Townsend & Stockton and Sandler O’Neill + Partners helped the bank with the offering.

franklinfederal1Come Thursday, Richmond will be home to a newly public bank flush with a load of fresh capital.

Franklin Federal Savings Bank’s transformation from an old-time mutual savings bank to a publicly traded institution is set to be completed this week.

Franklin Financial Corp., the proposed and soon-to-be public holding company of the Glen Allen-based bank, said Tuesday that it sold 13.88 million shares in its recent stock offering for $10 each, netting about $138 million.

The company said that it expects the offering to officially close Wednesday and that it expects its stock to begin trading on the NASDAQ Global Market on Thursday. Its ticker symbol will be “FRNK.”

“This was quite an undertaking,” said Franklin Federal CEO Rick Wheeler. “It didn’t change who we are as a company. But it certainly gave us a heck of a lot more capital. It just about doubled our capital.”

The offering was so successful that it was oversubscribed by the bank’s depositors and employees, who got first dibs.

“You don’t know what to expect on something like this,” Wheeler said. “We were very pleased with the reception.”

Franklin Federal first announced its plan to convert and go public in October. The bank has said it will look to use the money raised in the offering for potential acquisitions, branch expansion and increased lending.

Wheeler said there is no particular time line for how the money will be put to use.

“It’s a lot of funds to invest, and it would not be prudent to rush into anything,” he said. “We’re going to be cautious and deliberate.”

Franklin Federal was founded in 1933 as Federal Savings and Loan of Sandston and took its current name after it moved to Franklin Street downtown. The bank has about $980 million in total assets and 100 employees at eight branches, including its corporate headquarters in Innsbrook.

As of June 30, Franklin Federal controlled 2.23 percent of the FDIC-insured deposits in the Richmond market.

Kilpatrick Townsend & Stockton and Sandler O’Neill + Partners helped the bank with the offering.

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