10-Q

UNITED STATES

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 March 31, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 001-36895

FRANKLIN FINANCIAL NETWORK, INC.

(Exact name of registrant as specified in its charter)

Tennessee	20-8839445
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
722 Columbia Avenue Franklin, Tennessee	37064
(Address of principal executive offices)	(Zip Code)

615-236-2265

(Registrant’s telephone number, including area code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

The number of shares outstanding of the registrant’s common stock, no par value per share, as of April 30, 2015, was 10,499,562.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
Cautionary Note Regarding Forward-Looking Statements	1
Item 1. Condensed Consolidated Financial Statements (unaudited)
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Income	3
Condensed Consolidated Statements of Comprehensive Income	4
Condensed Consolidated Statement of Changes in Shareholders’ Equity	5
Condensed Consolidated Statements of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	46
Item 4. Controls and Procedures	47
PART II OTHER INFORMATION
Item 1. Legal Proceedings	47
Item 1A. Risk Factors	47
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3. Defaults Upon Senior Securities	48
Item 4. Mine Safety Disclosures	48
Item 5. Other Information	49
Item 6. Exhibits	49
SIGNATURES

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” as defined under U.S. federal securities laws. These statements reflect management’s current knowledge, assumptions, beliefs, estimates, and expectations and express management’s current views of future performance, results, and trends and may be identified by their use of terms such as “may,” “would,” “could,” “should,” “will,” “expect,” “anticipate,” “predict,” “project,” “potential,” “continue,” “contemplate,” “seek,” “assume,” “believe,” “intend,” “plan,” “forecast,” “goal,” and “estimate,” and other similar terms. Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those described in the forward-looking statements. Readers should not place undue reliance on forward-looking statements. Such statements are made as of the date of this Quarterly Report on Form 10-Q, and we undertake no obligation to update such statements after this date.

Risks and uncertainties that could cause our actual results to differ materially from those described in forward-looking statements include those discussed in our filings with the Securities and Exchange Commission (“SEC”), including those described in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), on March 27, 2015 (the “Prospectus”) and those described in Item 1A of Part II of this Quarterly Report on Form 10-Q.

1

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FRANKLIN FINANCIAL NETWORK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2015 and December 31, 2014

(Dollar amounts in thousands, except share and per share data)

PART I FINANCIAL INFORMATION

	March 31, 2015			December 31, 2014
	(Unaudited)
ASSETS
Cash and due from financial institutions	$	48,580		$	49,347
Certificates of deposit at other financial institutions		250			250
Securities available for sale		456,520			395,705
Securities held to maturity (fair value 2015—$51,461 and 2014—$53,741)		50,650			53,332
Loans held for sale, at fair value		22,462			18,462
Loans		874,539			787,188
Allowance for loan losses		(7,308	)		(6,680	)
Net loans		867,231			780,508
Restricted equity securities, at cost		5,731			5,349
Premises and equipment, net		9,731			9,664
Accrued interest receivable		3,984			3,545
Bank owned life insurance		21,776			11,664
Deferred tax asset		5,675			6,780
Buildings held for sale		—			4,080
Foreclosed assets		453			715
Servicing rights, net		3,113			3,053
Goodwill		9,124			9,124
Core deposit intangible, net		2,526			2,698
Other assets		1,624			1,551
Total assets	$	1,509,430		$	1,355,827
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non-interest bearing	$	156,062		$	150,337
Interest bearing		1,115,540			1,021,896
Total deposits		1,271,602			1,172,233
Federal funds purchased and repurchase agreements		35,718			39,078
Federal Home Loan Bank advances		19,000			19,000
Accrued interest payable		552			421
Other liabilities		4,017			3,296
Total liabilities		1,330,889			1,234,028
Shareholders’ equity
Senior non-cumulative preferred stock, no par value, $10,000 liquidation value: Series A, 1,000,000 shares authorized; 10,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively		10,000			10,000
Common stock, no par value; 20,000,000 shares authorized; 10,465,930 and 7,756,411 shares issued and outstanding at March 31, 2015 and December 31 2014, respectively		146,330			94,251
Retained earnings		18,479			15,372
Accumulated other comprehensive income		3,732			2,176
Total shareholders’ equity		178,541			121,799
Total liabilities and shareholders’ equity	$	1,509,430		$	1,355,827

See accompanying notes to condensed consolidated financial statements.

2

FRANKLIN FINANCIAL NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31, 2015 and 2014

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Interest income and dividends
Loans, including fees	$	11,154		$	5,918
Securities:
Taxable		2,665			2,303
Tax-Exempt		20			20
Dividends on restricted equity securities		67			40
Federal funds sold and other		20			18
Total interest income		13,926			8,299
Interest expense
Deposits		1,633			1,148
Federal funds purchased and repurchase agreements		71			27
Federal Home Loan Bank advances		65			29
Total interest expense		1,769			1,204
Net interest income		12,157			7,095
Provision for loan losses		625			385
Net interest income after provision for loan losses		11,532			6,710
Noninterest income
Service charges on deposit accounts		16			12
Other service charges and fees		618			236
Net gains on sale of loans		1,647			784
Investment services		286			43
Loan servicing fees, net		43			12
Gain on sale or call of securities		415			8
Net gain on sale of foreclosed assets		6			33
Other		184			293
Total noninterest income		3,215			1,421
Noninterest expense
Salaries and employee benefits		5,681			3,545
Occupancy and equipment		1,579			786
FDIC assessment expense		214			119
Marketing		220			111
Professional fees		359			354
Amortization of core deposit intangible		172			—
Other		1,396			577
Total noninterest expense		9,621			5,492
Income before income tax expense		5,126			2,639
Income tax expense		1,994			1,110
Net income		3,132			1,529
Dividends paid on Series A preferred stock		(25	)		(25	)
Net income available to common shareholders	$	3,107		$	1,504
Earnings per share:
Basic	$	0.39		$	0.31
Diluted		0.37			0.30

See accompanying notes to condensed consolidated financial statements.

3

FRANKLIN FINANCIAL NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31, 2015 and 2014

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Net income	$	3,132		$	1,529
Other comprehensive income, net of tax:
Unrealized gains/losses on securities:
Unrealized holding gain arising during the period		3,036			3,176
Reclassification adjustment for gains included in net income		(415	)		(8	)
Net unrealized gains		2,621			3,168
Tax effect		(1,065	)		(1,213	)
Total other comprehensive income		1,556			1,955
Comprehensive income	$	4,688		$	3,484

See accompanying notes to condensed consolidated financial statements.

4

FRANKLIN FINANCIAL NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Three Months Ended March 31, 2015 and 2014

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

	Preferred Stock		Common Stock		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity
Balance at December 31, 2013	$	10,000	$	52,638	$	7,058		$	(4,533	)	$	65,163
Exercise of common stock options, 119 shares		—		1		—			—			1
Dividends paid on Series A preferred stock		—		—		(25	)		—			(25	)
Stock based compensation expense		—		204		—			—			204
Net income		—		—		1,529			—			1,529
Other comprehensive loss		—		—		—			1,955			1,955
Balance at March 31, 2014	$	10,000	$	52,843	$	8,562		$	(2,578	)	$	68,827
Balance at December 31, 2014	$	10,000	$	94,251	$	15,372		$	2,176		$	121,799
Exercise of common stock options, 70,521 shares		—		780		—			—			780
Exercise of common stock warrants, 200 shares		—		2		—			—			2
Dividends paid on Series A preferred stock		—		—		(25	)		—			(25	)
Stock based compensation expense, net of 1,202 restricted share forfeitures		—		146		—			—			146
Stock (2,640,000 shares) issued related to initial public offering, net of stock issuance costs of $4,436		—		51,004		—			—			51,004
Excess tax benefit from exercise of stock options		—		147		—			—			147
Net income		—		—		3,132			—			3,132
Other comprehensive income		—		—		—			1,556			1,556
Balance at March 31, 2015	$	10,000	$	146,330	$	18,479		$	3,732		$	178,541

See accompanying notes to condensed consolidated financial statements.

5

FRANKLIN FINANCIAL NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2015 and 2014

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities
Net income	$	3,132		$	1,529
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization on premises and equipment		319			159
Accretion of purchase accounting adjustments		(625	)		—
Net amortization of securities		746			556
Amortization of loan servicing right asset		223			215
Amortization of core deposit intangible		172			—
Provision for loan losses		625			385
Excess tax benefit related to the exercise of stock options		(147	)		—
Origination of loans held for sale		(74,849	)		(47,114	)
Proceeds from sale of loans held for sale		72,213			47,216
Net gain on sale of loans		(1,647	)		(784	)
Gain on sale of available for sale securities		(376	)		(8	)
Gain on call of held to maturity securities		(39	)		—
Income from bank owned life insurance		(112	)		(60	)
(Gain) loss on sale and write down of foreclosed assets		(3	)		(33	)
Stock-based compensation		146			204
Deferred gain on sale of loans		(9	)		(12	)
Deferred gain on sale of foreclosed assets		(3	)		—
Net change in:
Accrued interest receivable and other assets		(472	)		(331	)
Accrued interest payable and other liabilities		1,011			(216	)
Net cash from operating activities		305			1,706
Cash flows from investing activities
Available for sale securities:
Sales		9,289			5,451
Purchases		(161,475	)		(34,208	)
Maturities, prepayments and calls		93,686			8,459
Held to maturity securities:
Purchases		—			(8,601	)
Maturities, prepayments and calls		2,657			4,759
Net change in loans		(86,758	)		(30,582	)
Purchase of bank owned life insurance		(10,000	)		—
Proceeds from sale of buildings held for sale		4,080			—
Purchase of restricted equity securities		(382	)		—
Proceeds from sale of foreclosed assets		265			214
Purchases of premises and equipment, net		(386	)		(1,396	)
Net cash from investing activities		(149,024	)		(55,904	)
Cash flows from financing activities
Increase in deposits		99,404			58,334
Decrease in federal funds purchased and repurchase agreements		(3,360	)		(1,459	)
Proceeds from Federal Home Loan Bank advances		—			10,000
Proceeds from exercise of common stock warrants		2			—
Proceeds from exercise of common stock options, including excess tax benefit		927			1
Proceeds from issuance of common stock, net of offering costs		51,004			—
Dividends paid on preferred stock		(25	)		(25	)
Net cash from financing activities		147,952			66,851
Net change in cash and cash equivalents		(767	)		12,653
Cash and cash equivalents at beginning of period		49,347			18,217
Cash and cash equivalents at end of period	$	48,580		$	30,870
Supplemental information:
Interest paid	$	1,638		$	1,143
Income taxes paid		1,500			1,230

See accompanying notes to condensed consolidated financial statements.

6

FRANKLIN FINANCIAL NETWORK, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

NOTE 1—BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Franklin Financial Network, Inc. (“FFN”), and its wholly owned subsidiaries, Franklin Synergy Bank and Banc Compliance Group, Inc. (collectively, the “Company”), have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the periods reported have been included as required by Regulation S-X, Rule 10-01. All such adjustments are of a normal recurring nature. It is suggested that these interim consolidated financial statements and notes be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2015.

NOTE 2—ACQUISITIONS

Acquisition of MidSouth Bank

On July 1, 2014 the Company completed the acquisition of MidSouth Bank (“MidSouth”), pursuant to the terms of the Agreement and Plan of Reorganization and Bank Merger (the “merger agreement”) dated November 19, 2013.

The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition of $9,124, after consideration of a measurement period adjustment discussed below, which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill is calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. Fair value estimates are based on the information available, and are subject to change for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. Fair values are preliminary estimates due to pending appraisals on loans and other real estate owned.

The Company acquired 100% of the outstanding preferred and common stock of MidSouth. The purchase price consisted of both cash and share of the Company’s common stock. MidSouth’s common shareholders received 0.425926 shares of FFN common stock for each share of MidSouth common stock. MidSouth’s preferred shareholders received 0.851852 shares of FFN common stock for each share of MidSouth preferred stock. Each MidSouth Series 2009A warrant holder received 0.18 shares of FFN common stock for each MidSouth Series 2009A warrant, and each Series 2011-A warrant holder received 0.146667 shares of FFN common stock for each MidSouth Series 2011-A warrant. In lieu of issuing fractional shares of FFN common stock, FFN paid former MidSouth shareholders an amount in cash determined by multiplying (i) $13.50 by (ii) the fraction of a share (rounded to the nearest ten thousandth when expressed in decimal form) of FFN common stock.

MidSouth common stock options were converted into options to purchase shares of FFN common stock based on the 0.425926 exchange ratio, with the new exercise price becoming the exercise price of the MidSouth options divided by the exchange ratio. On the date of the merger, 2,766,191 shares of FFN common stock were exchanged for the common and preferred stock, and common stock warrants of MidSouth in accordance with the proration and allocation procedures contained in the merger agreement and as noted above. Subsequently, cash totaling $100 was paid to dissenting MidSouth shareholders representing 7,427 shares of FFN common stock. In addition, $18 of cash was paid to MidSouth shareholders for fractional shares in accordance with the merger agreement.

7

Based on a valuation of the FFN’s common stock as of July 1, 2014, the resulting purchase price was $41,094. The following table summarizes the purchase price calculation:

	Number of MidSouth shares outstanding		Per share exchange ratio		Number of FFN shares—as exchanged
Common Shares		3,873		0.425926		1,650
Convertible Voting Preferred Stock, 2009-A		1,018		0.851852		867
Convertible Voting Preferred Stock, 2011-A		242		0.851852		206
Series 2009-A Stock Warrants (strike price $3.25)		193		0.185185		36
Series 2011-A Stock Warrants (strike price $3.68)		44		0.153333		7
						2,766
Multiplied by FFN common stock value at acquisition date					$	14.50
Fair value of FFN common stock issued (“Stock Consideration”)					$	40,110
Cash consideration paid for fractional shares						18
Cash consideration paid for dissenting shares						100
Fair value of MidSouth stock options converted to FFN stock options						866
Total acquisition consideration					$	41,094

On July 1, 2014 the Company purchased MidSouth. As previously disclosed, the fair values initially assigned to the assets acquired and liabilities assumed were preliminary and subject to refinement for up to one year after the closing date of the acquisition as new information relative to closing date fair values becomes available. Based on appraisals received subsequent to the acquisition date, the Company adjusted its initial fair value estimate of foreclosed assets that were acquired. The table below summarizes the fair value of the assets purchased, including goodwill, and liabilities assumed as of the July 1, 2014 purchase date.

In Thousands	July 1, 2014 (as initially reported)		Measurement Period Adjustments			July 1, 2014 (as adjusted)
Assets:
Cash and due from banks	$	1,369	$	—		$	1,369
Interest-bearing accounts at other financial institutions		10,946					10,946
Securities, available-for-sale		57,431					57,431
Loans held for sale		7,071					7,071
Loans		184,345					184,345
Certificates of deposit at other financial institutions		250					250
Restricted equity securities		1,572					1,572
Bank premises and equipment, net		6,650					6,650
Bank-owned life insurance		3,144					3,144
Accrued interest receivable		728					728
Foreclosed assets		800		(260	)		540
Core deposit intangible		3,060					3,060
Deferred tax asset		6,753		100			6,853
Goodwill		8,964		160			9,124
Other assets		747					747
Total assets acquired	$	293,830	$	—		$	293,830
Liabilities:
Deposits	$	244,415	$	—		$	244,415
Short-term borrowings		6,893					6,893
Other liabilities		1,428					1,428
Total liabilities assumed	$	252,736	$	—		$	252,736

At March 31, 2015, there were no circumstances or significant changes that have occurred since July 1, 2014 related to the acquisition of MidSouth that, in management’s assessment, would necessitate recording impairment of goodwill.

8

In the acquisition, the Company purchased $184,345 of loans at fair value, net of $7,347, or 3.8%, estimated discount to the outstanding principal balance, representing 38.0% of the Company’s total loans at June 30, 2014. Of the total loans acquired, management identified loans totaling $5,527 as having credit deficiencies. All loans that were on non-accrual status and all loan relationships that were identified as substandard or impaired as of the acquisition date were considered by management to be credit-impaired and are accounted for pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of July 1, 2014 for purchased credit-impaired (“PCI”) loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.

Contractually required principal and interest	$	8,510
Non-accretable difference		(1,745	)
Cash flows expected to be collected		6,765
Accretable yield		(1,238	)
Total purchased credit-impaired loans acquired	$	5,527

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance at acquisition date.

	Unpaid Principal Balance		Fair Value
Loans:
Residential real estate	$	39,425	$	38,618
Commercial real estate		82,465		80,566
Construction and land development		43,766		42,454
Commercial loans		16,311		15,352
Consumer and other loans		1,865		1,828
Purchased credit-impaired		7,860		5,527
Total earning assets	$	191,692	$	184,345

In its assumption of the deposit liabilities, the Company believed the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. The Company determined the estimated fair value of the core deposit intangible asset totaled $3,060, which will be amortized utilizing an accelerated amortization method over an estimated economic life of 8.2 years. When determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Pro-forma information

Pro-forma data for the three-month period ending March 31, 2014 listed in the table below presents pro-forma information as if the MidSouth acquisition occurred at the beginning of 2014. Because the MidSouth transaction closed on July 1, 2014, and its actual results are included in the Company’s actual operating results for the three-month period ending March 31, 2015, there is no pro-forma information for the three months ending March 31, 2015.

	Three months ended March 31,
	2014
Net interest income	$	10,405
Net income available to common shareholders		1,814
Earnings per share—basic	$	0.24
Earnings per share—diluted	$	0.23

Supplemental pro forma earnings for the three months ended March 31, 2014 were adjusted to exclude $517 of acquisition-related costs incurred during the first quarter of 2014. Supplemental pro forma earnings for the three months ended March 31, 2014 were adjusted to include discount accretion and premium amortization related to the fair value adjustments to acquisition date assets and liabilities, as appropriate.

9

During the three months ending March 31, 2014, the acquisition of MidSouth increased pro-forma net interest income by approximately $3,310 and net income available to common shareholders by approximately $310.

NOTE 3—SECURITIES

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	46,333	$	233	$	(134	)	$	46,432
Mortgage-backed securities: residential		399,896		6,693		(719	)		405,870
Mortgage-backed securities: commercial		4,144		74		—			4,218
Total	$	450,373	$	7,000	$	(853	)	$	456,520

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	30,070	$	417	$	(314	)	$	30,173
U.S. Treasury securities		20,000		—		—			20,000
Mortgage-backed securities: residential		335,677		4,593		(1,203	)		339,067
Mortgage-backed securities: commercial		6,432		33		—			6,465
Total	$	392,179	$	5,043	$	(1,517	)	$	395,705

The amortized cost and fair value of the held to maturity securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrecognized gains and losses were as follows:

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	4,763	$	128	$	(45	)	$	4,846
Mortgage backed securities: residential		36,970		762		(417	)		37,315
State and political subdivisions		8,917		389		(6	)		9,300
Total	$	50,650	$	1,279	$	(468	)	$	51,461

	Gross Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	5,550	$	162	$	(87	)	$	5,625
Mortgage backed securities: residential		38,587		555		(562	)		38,580
State and political subdivisions		9,195		351		(10	)		9,536
Total	$	53,332	$	1,068	$	(659	)	$	53,741

10

Sales and calls of available for sale securities were as follows:

	Three Months Ended March 31,
	2015			2014
Proceeds	$	11,289		$	5,451
Gross gains		390			24
Gross losses		(14	)		(16	)

Calls of held to maturity securities were as follows:

	Three Months Ended March 31,
	2015		2014
Proceeds	$	800	$	—
Gross gains		39		—
Gross losses		—		—

The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	March 31, 2015
	Amortized Cost		Fair Value
Available for sale
Three months or less	$	30,000	$	30,000
Over three months through one year		—		—
Over one year through five years		—		—
Over five years through ten years		7,788		8,021
Over ten years		8,545		8,411
Mortgage-backed securities: residential		399,896		405,870
Mortgage-backed securities: commercial		4,144		4,218
Total	$	450,373	$	456,520
Held to maturity
Three months or less	$	—	$	—
Over three months through one year		—		—
Over one year through five years		1,385		1,448
Over five years through ten years		1,106		1,141
Over ten years		11,189		11,557
Mortgage-backed securities: residential		36,970		37,315
Total	$	50,650	$	51,461

Securities pledged at March 31, 2015 and December 31, 2014 had a carrying amount of $488,573 and $366,764 and were pledged to secure public deposits and repurchase agreements.

At March 31, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. government-sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.

The following table summarizes the securities with unrealized and unrecognized losses at March 31, 2015 and December 31, 2014, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2015
Available for sale
U.S. government sponsored entities and agencies	$	18,966	$	(34	)	$	4,445	$	(100	)	$	23,411	$	(134	)
Mortgage-backed securities: residential		36,496		(287	)		32,813		(432	)		69,309		(719	)
Total available for sale	$	55,462	$	(321	)	$	37,258	$	(532	)	$	92,720	$	(853	)

11

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	1,978	$	(21	)	$	976	$	(24	)	$	2,954	$	(45	)
Mortgage-backed securities: residential		2,452		(27	)		9,701		(390	)		12,153		(417	)
State and political subdivisions		1,101		(6	)		—		—			1,101		(6	)
Total held to maturity	$	5,531	$	(54	)	$	10,677	$	(414	)	$	16,208	$	(468	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2014
Available for sale
U.S. government sponsored entities and agencies	$	9,999	$	(1	)	$	8,232	$	(313	)	$	18,231	$	(314	)
Mortgage-backed securities: residential		59,078		(323	)		41,939		(880	)		101,017		(1,203	)
Total available for sale	$	69,077	$	(324	)	$	50,171	$	(1,193	)	$	119,248	$	(1,517	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	—	$	—		$	2,913	$	(87	)	$	2,913	$	(87	)
Mortgage-backed securities: residential		5,246		(25	)		13,001		(537	)		18,247		(562	)
State and political subdivisions		507		(1	)		592		(9	)		1,099		(10	)
Total held to maturity	$	5,753	$	(26	)	$	16,506	$	(633	)	$	22,259	$	(659	)

Unrealized losses on debt securities have not been recognized into income because the issuers bonds are of high credit quality (rated AA or higher), management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The fair value is expected to recover as the bonds approach maturity.

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NOTE 4—LOANS

Loans at March 31, 2015 and December 31, 2014 were as follows:

	March 31, 2015			December 31, 2014
Loans that are not PCI loans
Construction and land development	$	282,520		$	239,225
Commercial real estate:
Nonfarm, nonresidential		254,946			240,975
Other		4,259			5,377
Residential real estate:
Closed-end 1-4 family		133,040			130,631
Other		90,438			83,129
Commercial and industrial		98,986			76,570
Consumer and other		7,441			8,025
Loans before net deferred loan fees		871,630			783,932
Deferred loan fees, net		(1,397	)		(1,059	)
Total loans that are not PCI loans		870,233			782,873
PCI loans
Construction and land development	$	76		$	77
Commercial real estate:
Nonfarm, nonresidential		1,750			1,798
Other		—			—
Residential real estate:
Closed-end 1-4 family		697			706
Other		107			108
Commercial and industrial		1,676			1,624
Consumer and other		—			2
Total PCI loans		4,306			4,315
Allowance for loan losses		(7,308	)		(6,680	)
Total loans, net of allowance for loan losses	$	867,231		$	780,508

The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2015 and 2014:

	Construction and Land Development			Commercial Real Estate		Residential Real Estate			Commercial and Industrial		Consumer and Other			Total
Three Months Ending March 31, 2015
Allowance for loan losses:
Beginning balance	$	2,690		$	1,494	$	1,791		$	650	$	55		$	6,680
Provision for loan losses		(141	)		630		(67	)		200		3			625
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		3			—		—			3
Total ending allowance balance	$	2,549		$	2,124	$	1,727		$	850	$	58		$	7,308
Three Months Ending March 31, 2014
Allowance for loan losses:
Beginning balance	$	1,497		$	1,566	$	1,402		$	337	$	98		$	4,900
Provision for loan losses		49			129		115			127		(35	)		385
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		19			—		—			19
Total ending allowance balance	$	1,546		$	1,695	$	1,536		$	464	$	63		$	5,304

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There was no allowance for loan losses for PCI loans for the three months ended March 31, 2015 or for the three months ended March 31, 2014.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2015 and December 31, 2014. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality.

	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
March 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,549		2,124		1,727		832		58		7,290
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,549	$	2,124	$	1,727	$	850	$	58	$	7,308
Loans:
Individually evaluated for impairment	$	—	$	835	$	456	$	111	$	—	$	1,402
Collectively evaluated for impairment		282,520		258,370		223,022		98,875		7,441		870,228
Purchased credit-impaired loans		76		1,750		804		1,676		—		4,306
Total ending loans balance	$	282,596	$	260,955	$	224,282	$	100,662	$	7,441	$	875,936

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	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2014
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,690		1,494		1,791		632		55		6,662
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,690	$	1,494	$	1,791	$	650	$	55	$	6,680
Loans:
Individually evaluated for impairment	$	—	$	835	$	93	$	18	$	—	$	946
Collectively evaluated for impairment		239,225		245,517		213,667		76,552		8,025		782,986
Purchased credit-impaired loans		77		1,798		814		1,624		2		4,315
Total ending loans balance	$	239,302	$	248,150	$	214,574	$	78,194	$	8,027	$	788,247

Loans collectively evaluated for impairment reported at March 31, 2015 include certain loans acquired from MidSouth on July 1, 2014. The acquired loans were recorded at estimated fair value at date of acquisition, which included an estimated credit discount. On July 1, 2014, acquired non-PCI loans were recorded at an estimated fair value of $178,818, comprised of contractually unpaid principal totaling $183,832 net of estimated discounts totaling $5,014 which included both credit and interest rate discount components. At March 31, 2015, acquired non-PCI loans were recorded at an estimated fair value of $134,174. Management evaluated these loans for credit deterioration since acquisition and determined that no allowance for loan losses was necessary at March 31, 2015.

The following table presents information related to impaired loans by class of loans as of March 31, 2015 and December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
March 31, 2015
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		456		456		—
Commercial and industrial		93		93		—
Subtotal		2,971		1,384		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,989	$	1,402	$	18
December 31, 2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		93		93		—
Subtotal		2,515		928		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,533	$	946	$	18

15

The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
Average Recorded Investment	2015		2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	835	$	1,205
Residential real estate:
Closed-end 1-4 family		457		—
Commercial and industrial		83		—
Subtotal		1,375		1,205
With an allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	—	$	1,375
Residential real estate:
1-4 family		—		1,226
Commercial and industrial		19		66
Subtotal		19		2,667
Total	$	1,394	$	3,872

The impact on net interest income for these loans was not material to the Company’s results of operations for the three months ended March 31, 2015 and 2014.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2015 and December 31, 2014:

	Nonaccrual		Loans Past Due Over 90 Days
March 31, 2015
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end1-4 family		—		334
Commercial and industrial		18		—
Total	$	853	$	334
December 31, 2014
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end 1-4 family		—		316
Total	$	835	$	316

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

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The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
March 31, 2015
Construction and land development	$	682	$	—	$	—	$	682	$	281,838	$	76	$	282,596
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		254,111		1,750		256,696
Other		—		—		—		—		4,259		—		4,259
Residential real estate:
Closed-end 1-4 family		475		—		334		809		132,231		697		133,737
Other		1,292		—		—		1,292		89,146		107		90,545
Commercial and industrial		—		—		—		—		98,986		1,676		100,662
Consumer and other		12		14		—		26		7,415		—		7,441
	$	2,461	$	14	$	1,169	$	3,644	$	867,986	$	4,306	$	875,936

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
December 31, 2014
Construction and land development	$	354	$	—	$	—	$	354	$	238,871	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		240,140		1,798		242,773
Other		—		—		—		—		5,377		—		5,377
Residential real estate:
Closed-end 1-4 family		299		165		316		780		129,851		706		131,337
Other		52		—		—		52		83,077		108		83,237
Commercial and industrial		—		212		—		212		76,358		1,624		78,194
Consumer and other		—		—		—		—		8,025		2		8,027
	$	705	$	377	$	1,151	$	2,233	$	781,699	$	4,315	$	788,247

Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans as well as non-homogeneous residential real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

17

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table includes PCI loans, which are included in the “Substandard” column. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Total
March 31, 2015
Construction and land development	$	282,519	$	—	$	77	$	282,596
Commercial real estate:
Nonfarm, nonresidential		253,007		—		3,689		256,696
Other		4,259		—		—		4,259
Residential real estate:
Closed-end 1-4 family		131,803		—		1,934		133,737
Other		90,438		—		107		90,545
Commercial and industrial		98,874		—		1,788		100,662
Consumer and other		7,441		—		—		7,441
	$	868,341	$	—	$	7,595	$	875,936

	Pass		Special Mention		Substandard		Total
December 31, 2014
Construction and land development	$	239,225	$	—	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		239,584		—		3,189		242,773
Other		5,377		—		—		5,377
Residential real estate:
1-4 family		128,869		—		2,468		131,337
Other		83,129		—		108		83,237
Commercial and industrial		76,552		—		1,642		78,194
Consumer and other		8,025		—		2		8,027
	$	780,761	$	—	$	7,486	$	788,247

Purchased Credit-impaired (“PCI”) loans

Income is recognized on PCI loans pursuant to ASC Topic 310-30. A portion of the fair value discount has been recognized as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining non-accretable difference represents cash flows not expected to be collected.

The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans as of March 31, 2015 and December 31, 2014. Contractually required principal and interest payments have been adjusted for estimated prepayments.

	Mar 31, 2015			Dec 31, 2014
Contractually required principal and interest	$	6,135		$	6,532
Non-accretable difference		(989	)		(1,270	)
Cash flows expected to be collected		5,146			5,262
Accretable yield		(840	)		(947	)
Carrying value of acquired loans		4,306			4,315
Allowance for loan losses		—			—
Carrying value less allowance for loan losses	$	4,306		$	4,315

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Management adjusted estimates of future expected losses, cash flows and renewal assumptions during the current quarter. These adjustments resulted in a decrease in expected cash flows and accretable yield, and a decrease in the non-accretable difference. The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans during the three month period ending March 31, 2015.

Activity during the three month period ending March 31, 2015	Dec 31, 2014			Effect of Acquisitions		Income Accretion		All other Adjustments			Mar 31, 2015
Contractually required principal and interest	$	6,532		$	—	$	—	$	(397	)	$	6,135
Non-accretable difference		(1,270	)		—		—		281			(989	)
Cash flows expected to be collected		5,262			—		—		(116	)		5,146
Accretable yield		(947	)		—		57		50			(840	)
Carry value of acquired loans	$	4,315		$	—	$	57	$	(66	)	$	4,306

Troubled Debt Restructurings

The Company’s loan portfolio contains no loans that have been modified in a troubled debt restructuring.

NOTE 5—LOAN SERVICING

Loans serviced for others are not reported as assets. The principal balances of these loans at March 31, 2015 and December 31, 2014 are as follows:

	March 31, 2015		December 31, 2014
Loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	425,714	$	414,222
Other		3,753		3,986

The components of net loan servicing fees for the three months ended March 31, 2015 and 2014 were as follows:

	Three Months Ended March 31,
	2015			2014
Loan servicing fees, net:
Loan servicing fees	$	266		$	227
Amortization of loan servicing fees		(223	)		(215	)
Change in impairment		—			—
Total	$	43		$	12

The fair value of servicing rights was estimated by management to be approximately $3,999 at March 31, 2015. Fair value for March 31, 2015 was determined using a weighted average discount rate of 10.5% and a weighted average prepayment speed of 11.7%. At December 31, 2014, the fair value of servicing rights was estimated by management to be approximately $4,180. Fair value for December 31, 2014 was determined using weighted average discount rate of 10.5% and a weighted average prepayment speed of 10.8%.

The weighted average amortization period is 5.86 years. Estimated amortization expense for each of the next three years is:

2015	$	610
2016		516
2017		516

NOTE 6—SHARE-BASED PAYMENTS

In connection with the Company’s 2010 private offering, 32,425 warrants were issued to shareholders, one warrant for every twenty shares of common stock purchased. Each warrant allows the shareholders to purchase an additional share of common stock at $12.00 per share. The warrants were issued with an effective date of March 30, 2010 and will be exercisable in whole or in part up to seven

19

years following the date of issuance. The warrants are detachable from the common stock. There were 200 warrants exercised during the three months ended March 31, 2015, for which the Company received cash proceeds of $2. The exercised warrants had an intrinsic value of $2 at the date of exercise. No warrants were exercised during the three months ended March 31, 2014. At March 31, 2015, there were 31,677 outstanding warrants associated with the 2010 offering.

In the event the common stock of the Company is to be registered under the Securities Act or is traded on a national securities exchange at $15.00 or more for forty-five (45) consecutive days, the Company may redeem the 2010 warrants at any time thereafter with not less than thirty (30) days’ written notice to the holder of such 2010 warrant, in whole or in part, at a redemption price of $1.00 per warrant; provided, however, that the holder of the 2010 warrant may exercise the 2010 warrant, in whole or in part, during such thirty (30) day period.

Stock Option Plan: The Company’s 2007 Stock Option Plan (“stock option plan” or the “Plan”), which was shareholder-approved, permitted the grant of share options to its employees, organizers and directors for up to 551,250 shares of common stock. The Plan was amended during April 2010 to increase the number of shares available for issuance to 1,000,000. In April 2013, the Plan was amended to offer additional forms of equity compensation, to change the Plan’s name to the Franklin Financial Network, Inc. 2007 Omnibus Equity Incentive Plan, and to increase the number of authorized shares to 1,500,000. The Company believes that such awards better align the interests of its employees with those of its shareholders. Shareholders approved amendments to the Plan to increase the number of authorized shares to 2,000,000 in June 2014 and to 4,000,000 in February 2015. At March 31, 2015, there were 2,617,288 authorized shares available for issuance.

Employee, organizer and director awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have a vesting period of 3 to 5 years and have a 10-year contractual term. The Company assigns discretion to its Board of Directors to make grants either as qualified incentive stock options or as non-qualified stock options. All employee grants are intended to be treated as qualified incentive stock options, if allowable. All other grants are expected to be treated as non-qualified.

During 2014, the Company granted 181,680 options, exercised 23,809 options, and had 31,135 options that were either forfeited, cancelled or expired. In addition, on July 1, 2014, 322,300 MidSouth common stock options were converted into 137,280 options to purchase shares of FFN common stock with an exercise price of $8.57 per option pursuant to the terms of the merger agreement (see Note 2). Using the Black-Scholes option valuation model, the grant date fair value was estimated to be $6.31 per converted option based on the $14.50 fair value per share of FFN common stock at July 1, 2014. No post compensation expense was required related to the converted options.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected stock price volatility is based on historical volatilities of a peer group. The Company uses historical data to estimate option exercise and post-vesting termination behavior.

The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

20

The fair value of options granted was determined using the following weighted-average assumptions as of grant date.

	March 31, 2015			March 31, 2014
Risk-free interest rate		1.93	%		2.48	%
Expected term		7.5 years			7.5 years
Expected stock price volatility		25.00	%		11.04	%
Dividend yield		0.22	%		0.43	%

The weighted average fair value of options granted for the three months ended March 31, 2015 and 2014 were $6.76 and $2.58, respectively.

A summary of the activity in the stock option plans for the three months ended March 31, 2015 follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at beginning of year		1,210,660		$	11.32		6.53	$	7,244
Granted		1,000			21.75
Exercised		(74,634	)		11.55
Forfeited, expired, or cancelled		(2,000	)		18.45
Outstanding at period end		1,135,026		$	11.30		6.23	$	11,013
Vested or expected to vest		1,176,064		$	11.30		6.23	$	10,462
Exercisable at period end		807,599		$	10.52		5.19	$	7,513

The Company received cash proceeds of $780 for the options exercised during the three months ended March 31, 2015. The exercised options had an aggregate intrinsic value of $609 at the date of exercise.

As of March 31, 2015, there was $611 of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.4 years.

Restricted Share Award Plan: Additionally, the Company’s 2007 Omnibus Equity Incentive Plan provides for the granting of restricted share awards and other performance related incentives. During 2014, the Company awarded 87,374 restricted common shares to employees of the Company. When the restricted shares are awarded, a participant receives voting and dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. These awards have a vesting period of three to five years and vest in equal annual installments on the anniversary date of the grant.

A summary of activity for non-vested restricted share awards for the three months ended March 31, 2015 is as follows:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		102,710		$	13.93
Granted		—			—
Vested		—			—
Forfeited		(1,202	)		16.14
Non-vested at March 31, 2015		101,508		$	13.91

Compensation expense associated with the restricted share awards is recognized on a straight-line basis over the time period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. As of March 31, 2015, there was $1,130 of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3 years.

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NOTE 7—REGULATORY CAPITAL MATTERS

In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and Bank. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Framework for More Resilient Banks and Banking Systems” (“Basel III”) and changes required by the Dodd-Frank Act.

Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms became effective to the Company and Bank on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes capital for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital.

In addition to the new minimum capital level requirements, the rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common Tier 1 risk-based capital ratio of 7.0%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The capital conservation buffer is to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company has opted out of this requirement.

Management believes, as of March 31, 2015, that the Company and Bank met all capital adequacy requirements to which they are subject. The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (in thousands):

	Actual					Minimum Capital Requirement					Excess Amount
	Amount		Ratio			Amount		Ratio
March 31, 2015
Company common equity Tier 1 capital to risk-weighted assets	$	149,119		14.01	%	$	47,899		4.50	%	$	101,220
Company total capital to risk-weighted assets	$	166,427		15.64	%	$	85,154		8.00	%	$	81,273
Company Tier 1 capital to risk-weighted assets	$	159,119		14.95	%	$	63,866		6.00	%	$	95,253
Company Tier 1 capital to average assets	$	159,119		11.41	%	$	55,769		4.00	%	$	103,350
Bank common equity Tier 1 capital to risk-weighted assets	$	136,865		12.86	%	$	47,894		4.50	%	$	88,971
Bank total capital to risk-weighted assets	$	153,173		14.39	%	$	85,145		8.00	%	$	68,028
Bank Tier 1 capital to risk-weighted assets	$	145,865		13.71	%	$	63,859		6.00	%	$	82,006
Bank Tier 1 capital to average assets	$	145,865		10.48	%	$	55,697		4.00	%	$	90,168
December 31, 2014
Company total capital to risk-weighted assets	$	114,475		12.30	%	$	74,464		8.00	%	$	40,011
Company Tier 1 capital to risk-weighted assets	$	107,795		11.58	%	$	37,232		4.00	%	$	70,563
Company Tier 1 capital to average assets	$	107,795		8.57	%	$	50,291		4.00	%	$	57,504
Bank total capital to risk-weighted assets	$	113,830		12.23	%	$	74,447		8.00	%	$	39,383
Bank Tier 1 capital to risk-weighted assets	$	107,150		11.51	%	$	37,223		4.00	%	$	69,927
Tier 1 capital to average assets	$	107,150		8.52	%	$	50,279		4.00	%	$	56,871

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Dividend Restrictions: The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. During 2015 the Bank could declare, without prior approval, dividends of approximately $13,836 plus any 2015 net profits retained to the date of declaration.

NOTE 8—FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability:

Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2).

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for impaired loans are generally obtained annually but may be obtained more frequently based on changing circumstances as part of the aforementioned quarterly evaluation.

Foreclosed Assets: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Foreclosed assets are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Loans Held For Sale: During 2014 the Company elected the fair value option for loans held for sale to align with other accounting policies related to mortgage banking, such as mortgage banking derivatives. These loans are typically sold to an investor following loan origination and the fair value of such accounts are readily available based on direct quotes from investors or similar transactions experienced in the secondary loan market. Fair value adjustments, as well as realized gains and losses are recorded in current earnings. Fair value is determined by market prices for similar transactions adjusted for specific attributes of that loan.

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Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

	Fair Value Measurements at March 31, 2015 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	46,432	$	—
Mortgage-backed securities-residential		—		405,870		—
Mortgage-backed securities-commercial		—		4,218		—
Total securities available for sale	$	—	$	456,520	$	—
Loans held for sale	$	—	$	22,462	$	—
Mortgage banking derivatives	$	—	$	552	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	224	$	—

	Fair Value Measurements at December 31, 2014 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	30,173	$	—
U.S. Treasury Bills		20,000		—		—
Mortgage-backed securities-residential		—		339,067		—
Mortgage-backed securities-commercial		—		6,465		—
State and political subdivisions		—		—		—
Total securities available for sale	$	20,000	$	375,705	$	—
Loans held for sale	$	—	$	18,462	$	—
Mortgage banking derivatives	$	—	$	285	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	132	$	—

As of March 31, 2015, the unpaid principal balance of loans held for sale was $21,875 resulting in an unrealized gain of $587 included in gains on sale of loans. For the three months ended March 31, 2015 and 2014, the change in fair value related to loans held for sale, which is included in gain on sale of loans, was $23 and $209, respectively. None of these loans are 90 days or more past due or on nonaccrual as of March 31, 2015.

There were no transfers between level 1 and 2 during 2015 and 2014.

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Assets measured at fair value on a non-recurring basis are summarized below:

There were no collateral dependent impaired loans carried at fair value as of March 31, 2015 or December 31, 2014. For the three months ended March 31, 2015 and 2014, $0 and $66 in additional provision for loan losses was recorded related to impaired loans recorded at fair value of collateral.

Foreclosed assets measured at fair value less costs to sell, had a net carrying amount of $453 and $715 as of March 31, 2015 and December 31, 2014, respectively. There were no properties at March 31, 2015 or 2014 that had required write-downs to fair value resulting in no write downs for the three months ending March 31, 2015 and 2014, respectively.

The carrying amounts and estimated fair values of financial instruments, at March 31, 2015 and December 31, 2014 are as follows:

			Fair Value Measurements at March 31, 2015 Using:
	Carrying Amount
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	48,580	$	48,580	$	—	$	—	$	48,580
Securities available for sale		456,520		—		456,520		—		456,520
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		50,650		—		51,461		—		51,461
Loans held for sale		22,462		—		22,462		—		22,462
Net loans		867,231		—		—		868,887		868,887
Restricted equity securities		5,731		n/a		n/a		n/a		n/a
Servicing rights, net		3,113		—		3,999		—		3,999
Accrued interest receivable		3,984		10		1,502		2,472		3,984
Financial liabilities
Deposits	$	1,271,602	$	902,227	$	372,375	$	—	$	1,274,602
Federal funds purchased and repurchase agreements		35,718		—		35,718		—		35,718
Federal Home Loan Bank advances		19,000		—		19,166		—		19,166
Accrued interest payable		552		36		516		—		552

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	Carrying Amount		Fair Value Measurements at December 31, 2014 Using:
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	49,347	$	49,347	$	—	$	—	$	49,347
Securities available for sale		395,705		20,000		375,705		—		395,705
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		53,332		—		53,741		—		53,741
Loans held for sale		18,462		—		18,462		—		18,462
Net loans		780,508		—		—		782,745		782,745
Restricted equity securities		5,349		n/a		n/a		n/a		n/a
Servicing rights, net		3,053		—		4,180		—		4,180
Accrued interest receivable		3,545		—		1,368		2,177		3,545
Financial liabilities
Deposits	$	1,172,233	$	848,158	$	326,644	$	—	$	1,174,802
Federal funds purchased and repurchase agreements		39,078		—		39,078		—		39,078
Federal Home Loan Bank advances		19,000		—		19,146		—		19,146
Accrued interest payable		421		33		388		—		421

The methods and assumptions not previously described used to estimate fair value are described as follows:

(a) Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.

(b) Loans: Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

(c) Restricted Equity Securities: It is not practical to determine the fair value of Federal Home Loan Bank or Federal Reserve Bank stock due to restrictions placed on its transferability.

(d) Mortgage Servicing Rights: Fair value of mortgage servicing rights is based on valuation models that calculate the present value of estimated net cash flows based on industry market data. The valuation model incorporates assumptions that market participants would use in estimating future net cash flows resulting in a Level 2 classification.

(e) Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(f) Federal Funds Purchased and Repurchase Agreements: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification.

(g) Federal Home Loan Bank Advances: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

(h) Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1 or Level 2 classification based on the asset/liability that they are associated with.

(i) Off-balance Sheet Instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

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NOTE 9—EARNINGS PER SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:

	Three Months Ended March 31,
	2015			2014
Basic
Net income available to common shareholders	$	3,107		$	1,504
Less: earnings allocated to participating securities		(40	)		(9	)
Net income allocated to common shareholders	$	3,067		$	1,495
Weighted average common shares outstanding including participating securities		7,970,250			4,862,674
Less: Participating securities		(102,187	)		(28,476	)
Average shares		7,868,063			4,834,198
Basic earnings per common share	$	0.39		$	0.31

	Three Months Ended March 31,
	2015		2014
Diluted
Net income allocated to common shareholders	$	3,067	$	1,495
Weighted average common shares outstanding for basic earnings per common share		7,868,063		4,834,198
Add: Dilutive effects of assumed exercises of stock options		432,808		123,161
Add: Dilutive effects of assumed exercises of stock warrants		12,951		3,542
Average shares and dilutive potential common shares		8,313,822		4,960,901
Dilutive earnings per common share	$	0.37	$	0.30

Stock options for 3,000 and 125,619 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2015 and 2014 because they were antidilutive.

NOTE 10—CAPITAL OFFERING

The Company initiated an initial public stock offering on March 26, 2015. The Company issued 2,640,000 shares of common stock at a price of $21.00 per share and began trading on the New York Stock Exchange on March 26, 2015, under the ticker symbol “FSB”. The initial public offering was completed during March 2015. Net proceeds were as follows:

Gross proceeds	$	55,440
Less: stock offering costs		(4,436	)
Net proceeds from issuance of common stock	$	51,004

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion is intended to assist in the understanding and assessment of significant changes and trends related to the Company’s results of operations and financial condition. This discussion and analysis should be read in conjunction with the accompanying unaudited financial statements, the financial statements and accompanying notes included in the Company’s Prospectus filed with the SEC on March 27, 2015, which includes additional information about critical accounting policies and practices and risk factors, and Item 1A of Part II of this report, which updates those risk factors. Historical results and trends that might appear in the condensed consolidated financial statements should not be interpreted as being indicative of future operations. All amounts are in thousands, except per share data or unless otherwise indicated.

Critical Accounting Policies

The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The Company’s accounting policies are integral to understanding the results reported. Accounting policies are described in detail in Note 1 of the notes to the consolidated financial statements. The critical accounting policies require judgment to ascertain the valuation of assets, liabilities, commitments and contingencies. Management has established policies and control procedures that are intended to ensure valuation methods are well controlled and applied consistently from period to period. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The following is a brief summary of the more significant policies.

Principles of Consolidation

The consolidated financial statements include Franklin Financial Network, Inc. and its wholly owned subsidiaries, Franklin Synergy Bank and Banc Compliance Group, Inc., together referred to as “the Company.” The Company sold Banc Compliance Group, Inc. in December 2014; therefore, only the consolidated statement of income for the three months ending March 31, 2014 contains income and expenses that include Banc Compliance Group, Inc. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Purchased loans

The Company maintains an allowance for loan losses on purchased loans based on credit deterioration subsequent to the acquisition date. In accordance with the accounting guidance for business combinations, because we recorded all acquired loans at fair value as of the date of the MidSouth acquisition, we did not establish an allowance for loan losses on any of the loans we purchased as of the acquisition date as any credit deterioration evident in the loans was included in the determination of the acquisition date fair values. For purchased credit-impaired loans accounted for under ASC 310-30, management establishes an allowance for loan losses subsequent to the date of acquisition by re-estimating expected cash flows on these loans on a quarterly basis, with any decline in expected cash flows due to credit triggering impairment recorded as provision for loan losses. The allowance established is the excess of the loan’s carrying value over the present value of projected future cash flows, discounted at the current accounting yield of the loan. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. While the determination of specific cash flows involves estimates, each estimate is unique to the individual loan, and none is individually significant. For non-purchased credit-impaired loans acquired in the MidSouth transaction and that are accounted for under ASC 310-20, the historical loss estimates are based on the historical losses experienced by MidSouth for loans with similar characteristics as those acquired other than purchased credit-impaired loans. We record an allowance for loan losses only when the calculated amount exceeds the remaining credit mark established at acquisition.

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors.

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Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

All loans classified by management as substandard or worse are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on a combination of the Bank’s loss history and loss history from the Bank’s peer group over the past three years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

Mortgage Servicing Rights

When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on market prices for comparable servicing contracts. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with loan servicing fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against mortgage loan servicing fee income.

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board (“FASB”) amended existing guidance to clarify when a creditor should derecognize a loan receivable and recognized collateral asset. An in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the

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borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both: (1) the amount of foreclosed residential real estate property held by the creditor; and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this guidance did not have a material impact on the Company’s results of operation or financial position.

In May 2014, the FASB issued an update (ASU No. 2014-09, “Revenue from Contracts with Customers”) creating FASB Topic 606, “Revenue from Contracts with Customers”. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. There is a proposal to defer adoption by one year. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

In August 2014, the FASB issued guidance that requires an entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on that guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable is to be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance is effective for annual and interim reporting periods beginning after December 15, 2014. The adoption of this guidance on January 1, 2015 did not materially impact the Company’s financial condition, results of operations, or liquidity.

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COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED

MARCH 31, 2015 AND 2014

Overview

The Company reported net income of $3,132 and $1,529 for the three months ended March 31, 2015 and 2014, respectively. After the payment of preferred dividends on the senior preferred stock issued to the Treasury pursuant to Small Business Lending Fund (“SBLF”), the Company’s net earnings available to common shareholders for the three months ended March 31, 2015 and 2014 was $3,107 and $1,504, respectively. The primary reasons for the increase in net earnings available to common shareholders for the three months ended March 31, 2015 was increased interest income on loans and investment securities due to significant organic growth in each of these portfolios over the same period in 2014 and the acquisition of MidSouth Bank (“MidSouth”) which, after considering the effect of purchase accounting entries, added $191,416 in loans, including loans held for sale, and $57,431 in securities available for sale when the transaction was completed on July 1, 2014.

Net Interest Income/Margin

Net interest income consists of interest income generated by earning assets, less interest expense. Net interest income for the three months ended March 31, 2015 and 2014, totaled $12,157 and $7,095, respectively, an increase of $5,062, or 71.3%, between the respective periods. For the three months ended March 31, 2015 and 2014, interest income was $13,926 and $8,299, respectively, an increase of 67.8%, due to growth in both the loan and investment securities portfolios and due to the acquisition of MidSouth. For the three months ended March 31, 2015 and 2014, interest expense was $1,769 and $1,204, respectively, an increase of 46.9%, which is a result of increases in both interest-bearing deposits and borrowings and is due to the acquisition of MidSouth.

Interest-earning assets averaged $1,351,351 and $809,554 during the three months ended March 31, 2015 and 2014, respectively, an increase of $541,797, or 66.9%. This increase was due to the acquisition of MidSouth and due to organic growth in both the loan portfolio and the securities portfolio over the past year. Average loans increased 89.7%, and investment securities increased 38.0%, when comparing the three months ended March 31, 2015 with the same period in 2014. When comparing the three months ended March 31, 2015 and 2014, the yield on average interest earning assets increased two basis points to 4.18% compared to 4.16% for the same period during 2014. For the three months ended March 31, 2015 and 2014, the yield on available for sale securities was 2.31% and 2.84%, respectively. The primary drivers for the decrease were the acceleration of prepayment amortization during the three months ended March 31, 2015, as compared to the same period during 2014 combined with a decrease in rates on securities purchased during the past 12 months. During the three months ended March 31, 2015, prepayment amortization of available for sale securities was $804, which represented a yield reduction of 118 basis points. During the three months ended March 31, 2014, prepayment amortization of available for sale securities was $556, which represented a yield reduction of 82 basis points.

Interest-bearing liabilities averaged $1,132,357 during the three months ending March 31, 2015, compared to $704,978 for the same period in 2014, an increase of $427,379, or 60.6%. Total average interest-bearing deposits grew $394,714, including increases in average brokered deposits of $67,706 and average interest-bearing public funds deposits of $75,305 for the three-month period ending March 31, 2015, as compared to the same period during 2014. Rapid growth in the loan portfolio also resulted in increases in average Federal Home Loan Bank advances of $2,966 and average Federal funds purchased of $1,786, when comparing the first three months of 2015 with the same period in 2014. Average securities sold under agreement to repurchase also increased $27,913 for the three months ended March 31, 2015 in comparison with the same period in 2014. The large increase in this funding source is due to the addition of some larger commercial relationships during the past year.

For the three month periods ending March 31, 2015 and 2014, the cost of average interest-bearing liabilities decreased six basis points to 0.63% from 0.69%. The decline was primarily due to decreases in the cost of funds for all types of interest-bearing deposits and Federal funds purchased. These decreases offset increases in the rates paid on Federal Home Loan Bank advances which increased from 0.58% for the first quarter of 2014 to 1.14% for the first quarter of 2015 due to the change in the composition of advances from first quarter 2015, which had a longer weighted average maturity with a higher weighted average rate, when compared to the advances from first quarter 2014, which contained $14,000 in short-term advances at 0.48%. The $427,379 increase in average interest-bearing liabilities for the three-month period ending March 31, 2015, as compared to the same period during 2014, resulted in an increase in interest expense of $565 between the two three-month periods.

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The tables below summarize average balances, yields, cost of funds, and the analysis of changes in interest income and interest expense for the three-months ended March 31, 2015 and 2014:

Average Balances (7)—Yields & Rates

(Dollars are in thousands)

	Three Months Ended March 31,
	2015								2014
	Average Balance			Interest Inc / Exp		Average Yield / Rate			Average Balance			Interest Inc / Exp		Average Yield / Rate
ASSETS:
Loans (1)(6)	$	845,437		$	11,154		5.35	%	$	445,583		$	5,918		5.39	%
Securities available for sale (6)		408,189			2,321		2.31	%		275,569			1,928		2.84	%
Securities held to maturity		52,513			364		2.81	%		58,344			395		2.75	%
Certificates of deposit at other financial institutions		250			1		1.62	%		—			—		0.00	%
Federal funds sold and other (2)		44,962			86		0.78	%		30,058			58		0.78	%
TOTAL INTEREST EARNING ASSETS	$	1,351,351		$	13,926		4.18	%	$	809,554		$	8,299		4.16	%
Allowance for loan losses		(7,043	)							(5,062	)
All other assets		69,350								30,700
TOTAL ASSETS	$	1,413,658							$	835,192
LIABILITIES & SHAREHOLDERS’ EQUITY
Deposits:
Interest checking	$	301,147		$	174		0.23	%	$	210,039		$	166		0.32	%
Money market		394,082			585		0.60	%		237,938			442		0.75	%
Savings		30,615			35		0.46	%		19,741			25		0.51	%
Time deposits		340,509			839		1.00	%		203,921			515		1.02	%
Federal Home Loan Bank advances		23,133			65		1.14	%		20,167			29		0.58	%
Federal funds purchased and other (3)		42,871			71		0.67	%		13,172			27		0.83	%
TOTAL INTEREST BEARING LIABILITIES	$	1,132,357		$	1,769		0.63	%	$	704,978		$	1,204		0.69	%
Demand deposits		150,108								59,754
Other liabilities		5,895								2,532
Total shareholders’ equity		125,298								67,928
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,413,658							$	835,192
NET INTEREST SPREAD (4)							3.55	%							3.47	%
NET INTEREST INCOME				$	12,157							$	7,095
NET INTEREST MARGIN (5)							3.65	%							3.55	%

(1) Loan balances include both loans held in the Bank’s portfolio and mortgage loans held for sale and are net of deferred origination fees and costs. Non-accrual loans are included in total loan balances.

(2) Includes federal funds sold, capital stock in the Federal Reserve Bank and Federal Home Loan Bank, and interest-bearing deposits at the Federal Reserve Bank.

(3) Includes repurchase agreements.

(4) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(5) Represents net interest income (annualized) divided by total average earning assets.

(6) Interest income and rates exclude the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis due to immateriality.

(7) Averages balances are average daily balances.

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The tables below detail the components of the changes in net interest income for the periods indicated. For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volume and changes due to rates, with the changes in both volumes and rates allocated to these two categories based on the proportionate absolute changes in each category.

Analysis of Changes in Interest Income and Expenses

	Net change three months ended March 31, 2015 versus March 31, 2014
	Volume			Rate			Net Change
INTEREST INCOME
Loans	$	5,318		$	(82	)	$	5,236
Securities available for sale		927			(534	)		393
Securities held to maturity		(39	)		8			(31	)
Certificates of deposit at other financial institutions		1			—			1
Federal funds sold and other		28			—			28
TOTAL INTEREST INCOME	$	6,235		$	(608	)	$	5,627
INTEREST EXPENSE
Deposits
Interest checking	$	74		$	(66	)	$	8
Money market accounts		289			(146	)		143
Savings		14			(4	)		10
Time deposits		341			(17	)		324
Federal Home Loan Bank advances		4			32			36
Other borrowed funds		61			(17	)		44
TOTAL INTEREST EXPENSE	$	783		$	(218	)	$	565
NET INTEREST INCOME	$	5,452		$	(390	)	$	5,062

Provision for Loan Losses

The provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that, in management’s evaluation, should be adequate to provide coverage for probable losses incurred in the loan portfolio. The allowance is increased by the provision for loan losses and is decreased by charge-offs, net of recoveries on prior loan charge-offs.

The provision for loan losses was $625 and $385 for the three months ended March 31, 2015 and 2014, respectively. The increase in loan loss provision is due primarily to the Company’s loan growth. Nonperforming loans at March 31, 2015 totaled $1,187 compared to $1,151 at December 31, 2014, representing 0.1% of total loans at both of these period-end dates.

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Non-Interest Income

Non-interest income for the three months ended March 31, 2015 and 2014 was $3,215 and $1,421, respectively. The following is a summary of the components of non-interest income (in thousands):

	Three Months Ended March 31,				$ Increase (Decrease)			% Increase (Decrease)
	2015		2014
Service charges on deposit accounts	$	16	$	12	$	4			33.3	%
Other service charges and fees		618		236		382			161.9	%
Net gains on sale of loans		1,647		784		863			110.1	%
Investment services		286		43		243			565.1	%
Loan servicing fees, net		43		12		31			258.3	%
Gain on sale of investment securities, net		415		8		407			5,087.5	%
Net gain (loss) on sale of foreclosed assets		6		33		(27	)		(81.8	%)
Other		184		293		(109	)		(37.2	%)
Total non-interest income	$	3,215	$	1,421	$	1,794			126.2	%

Other service charges and fees for the three months ending March 31, 2015 increased $382, or 161.9%, from the same period in 2014 due primarily to the MidSouth acquisition, which contributed to an increase in electronic banking fee income.

Net gains on the sale of loans include net gains realized from the sales of mortgage loans and Small Business Administration (“SBA”) loans. Net gains on the sale of mortgage loans are based, in part, on differences between the carrying value of loans being sold to third-party investors and the selling price. Also included are changes in the fair value of mortgage banking derivatives entered into by the Company to hedge the change in interest rates on loan commitments prior to their sale in the secondary market. Fluctuations in mortgage interest rates, changes in the demand for certain loans by investors, and whether servicing rights associated with the loans being sold are retained or released all affect the net gains on mortgage loan sales. Net gains for the three months ending March 31, 2015 were $1,647, an increase of $863, or 110.1%, from the same period during 2014. The increase was primarily due to volume of mortgage loans originated and the sales related to those loans.

Investment services income for the three months ending March 31, 2015 increased $243, or 565.1%, in comparison with the same period in 2014. The increase was primarily due to the acquisition of MidSouth, which brought an established wealth management division and its existing client base into the Company when the acquisition was completed on July 1, 2014.

Loan servicing fees are fees earned for servicing residential mortgages and SBA loans offset by the amortization of the respective servicing rights. These servicing rights are initially recorded at fair value and then amortized in proportion to, and over the period of, the estimated life of the underlying loans. In addition, impairment to the servicing rights may be recognized through a valuation allowance, and adjustments to the allowance can affect the net loan servicing fees. For the three months ending March 31, 2015, net loan servicing fees were $43, compared to $12 for the three months ending March 31, 2014. The favorable increase to loan servicing fees was primarily related to a decrease in amortization.

Net gain on sale of investment securities increased from $8 during the three months ending March 31, 2014 to $415 during the three months ending March 31, 2015, an increase of 5,087.5%. The increase was due to gains from sales and calls of investment securities in the first quarter of 2015. Of the $415 in net gains, $182 was attributable to calls of investment securities.

Other non-interest income decreased by $109, or 37.2%, when comparing first quarter 2015 with first quarter 2014. The decrease is attributed to the compliance consulting fees that were recorded in the first quarter of 2014 by the Company’s subsidiary, Banc Compliance Group, the assets of which the Company sold at the end of 2014. As a result, the Company had no compliance consulting fee income in the first quarter of 2015.

Non-interest Expense

Non-interest expense for the three months ended March 31, 2015 and 2014 was $9,621 and $5,492, respectively, an increase of $4,129, or 75.2%. This increase was the result of the following components listed in the table below (in thousands):

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	Three Months Ended March 31,				$ Increase (Decrease)		% Increase (Decrease)
	2015		2014
Salaries and employee benefits	$	5,681	$	3,545	$	2,136		60.3	%
Occupancy and equipment		1,579		786		793		100.9	%
FDIC assessment expense		214		119		95		79.8	%
Marketing		220		111		109		98.2	%
Professional fees		359		354		5		1.4	%
Amortization of core deposit intangible		172		—		172		NM
Other		1,396		577		819		141.9	%
Total non-interest expense	$	9,621	$	5,492	$	4,129		75.2	%

The increase in non-interest expense noted in the table above is indicative of the Company’s overall growth during this time. Two primary increases for the three months ending March 31, 2015, were in salaries and occupancy, as the Bank added five branch locations with the acquisition of MidSouth, and expanded its headquarters offices in downtown Franklin, Tennessee. Staffing increased from 116 full-time equivalent employees as of March 31, 2014, to 210 as of March 31, 2015. The increased staffing is due to the retention of the majority of the MidSouth employees to continue to support the branches as well as additional operational staff needed to handle the Company’s growth in loans and deposits.

The amortization expense for the core deposit intangible in first quarter 2015 is directly attributable to the acquisition of MidSouth, which brought a core deposit intangible asset that is being amortized over a period of eight years and two months.

For the three months ended March 31, 2015, other non-interest expenses increased $819, or 141.9%, from the same period during 2014. The increase is attributed to an increase of $176 in electronic banking expenses associated with the increased usage by the Company’s customers of technology-based services, such as debit card transactions, internet banking transactions, and other types of automated transactions. Much of the electronic banking expense increase was due to the more consumer-based composition of the customer base added from the MidSouth acquisition. The remaining $643 increase was due to a variety of expense items that include, but are not limited to, deposit expenses, franchise taxes, mortgage lending expenses, meals and travel, communications expenses, etc.

Income Tax Expense

The Company recognized an income tax expense for the three months ended March 31, 2015 and 2014, of $1,994 and $1,110, respectively. The Company’s year-to-date income tax expense for the period ended March 31, 2015 reflects an effective income tax rate of 38.9% compared to 42.1% for the same period in 2014. The decrease in the effective tax rate for the three months ended March 31, 2015, resulted from unfavorable permanent differences incurred during the three months ended March 31, 2014, from expenses associated with the pending merger with MidSouth Bank and from stock based compensation expense incurred from the vesting of incentive stock options as a result of employee retirement.

COMPARISON OF BALANCE SHEETS AT MARCH 31, 2015 AND DECEMBER 31, 2014

Overview

The Company’s total assets increased by $153,603, or 11.3%, from December 31, 2014 to March 31, 2015. The increase in total assets has primarily been the result of organic growth in the loan and investment securities portfolios.

Loans

Lending-related income is the most important component of the Company’s net interest income and is a major contributor to profitability. The loan portfolio is the largest component of earning assets, and therefore generates the largest portion of revenues. The absolute volume of loans and the volume of loans as a percentage of earning assets is an important determinant of net interest margin as loans are expected to produce higher yields than securities and other earning assets. Total loans, net of deferred fees, at March 31, 2015 and December 31, 2014 were $874,539 and $787,188, respectively, an increase of $87,351, or 11.1%. Growth in the loan portfolio is primarily due to increased market penetration and a healthy local economy.

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The table below provides a summary of the loan portfolio composition for the periods noted.

Types of Loans	March 31, 2015						December 31, 2014
	Amount			% of Total Loans			Amount			% of Total Loans
Total loans, excluding PCI loans
Real estate:
Residential	$	223,478			25.5	%	$	213,760			27.1	%
Construction and land development		282,520			32.3	%		239,225			30.4	%
Commercial		259,205			29.6	%		246,352			31.3	%
Commercial and industrial		98,986			11.3	%		76,570			9.7	%
Consumer and other		7,441			0.8	%		8,025			1.0	%
Total loans—gross, excluding PCI loans		871,630			99.5	%		783,932			99.5	%
Types of Loans	March 31, 2015						December 31, 2014
	Amount			% of Total Loans			Amount			% of Total Loans
Total PCI loans (note 1)
Real estate:
Residential	$	804			0.1	%	$	814			0.1	%
Construction and land development		76			NM			77			NM
Commercial		1,750			0.2	%		1,798			0.2	%
Commercial and industrial		1,676			0.2	%		1,624			0.2	%
Consumer and other		—			—	%		2			NM
Total loans—gross PCI loans		4,306			0.5	%		4,315			0.5	%
Total gross loans		875,936			100.0	%		788,247			100.0	%
Less: deferred loan fees, net		(1,397	)					(1,059	)
Allowance for loan losses		(7,308	)					(6,680	)
Total loans, net allowance for loan losses	$	867,231						780,508

Note 1: PCI accounted for pursuant to ASC Topic 310-30.

As presented in the above table, gross loans increased 11.1% during the first three months of 2015, primarily due to organic growth as a result of continued market penetration and the strength of the local economies. During this period, the Company experienced growth in real estate loans of 9.4% with the majority of the growth occurring in the construction and land development (18.1%) segment. The Company also experienced strong growth of 28.7% in the commercial and industrial segment during the first three months of 2015.

Real estate loans comprised 87.7% of the loan portfolio at March 31, 2015. The largest portion of the real estate segments as of March 31, 2015, was construction and land development loans, which totaled 36.8% of real estate loans. Construction and land development loans totaled $282,596 at March 31, 2015, and comprised 32.3% of the total loan portfolio. Loans in this classification provide financing for the construction and development of residential properties and commercial income properties, multi-family residential development, and land designated for future development.

The residential real estate classification primarily includes 1-4 family residential loans which are typically conventional first-lien home mortgages, not including loans held-for-sale in the secondary market. Residential real estate loans totaled $224,282 and increased 4.5% during the first three months of 2015 and comprised 29.2% of real estate loans and 25.6% of total loans at March 31, 2015.

Commercial real estate loans totaled $260,955 at March 31, 2015, and comprised 34.0% of real estate loans and 29.8% of the total loan portfolio. The commercial real estate loan classification primarily includes commercial-based mortgage loans that are secured by nonfarm, nonresidential real estate properties and multi-family residential properties.

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Commercial and industrial loans totaled $100,662 at March 31, 2015 and grew 28.7% during the first three months of 2015. Loans in this classification comprised 11.5% of total loans at March 31, 2015, as compared to 9.9% as of December 31, 2014. The commercial and industrial classification primarily consists of commercial loans to small-to-medium sized businesses.

The repayment of loans is a source of additional liquidity for the Company. The following table sets forth the loans maturing within specific intervals at March 31, 2015, excluding unearned net fees and costs.

Loan Maturity Schedule

	March 31, 2015
	One year or less		Over one year to five years		Over five years		Total
Real estate:
Residential	$	19,698	$	94,857	$	109,727	$	224,282
Construction and land development		183,150		77,006		22,440		282,596
Commercial		21,878		104,559		134,518		260,955
Commercial and industrial		34,886		42,633		23,143		100,662
Consumer and other		2,487		4,440		514		7,441
Total	$	262,099	$	323,495	$	290,342		875,936
Fixed interest rate	$	145,121	$	265,447	$	126,378	$	536,946
Variable interest rate		116,978		58,048		163,964		338,990
Total	$	262,099	$	323,495	$	290,342	$	875,936

The information presented in the above table is based upon the contractual maturities of the individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon their maturity. Consequently, management believes this treatment presents fairly the maturity structure of the loan portfolio.

Allowance for Loan Losses

The Company maintains an allowance for loan losses that management believes is adequate to absorb the probable incurred losses inherent in the Company’s loan portfolio. The allowance is increased by provisions for loan losses charged to earnings and is decreased by loan charge-offs net of recoveries of prior period loan charge-offs. The level of the allowance is determined on a quarterly basis, although management is engaged in monitoring the adequacy of the allowance on a more frequent basis. In estimating the allowance balance, the following factors are considered:

• past loan experience;

• the nature and volume of the portfolio;

• risks known about specific borrowers;

• underlying estimated values of collateral securing loans;

• current and anticipated economic conditions; and

• other factors which may affect the allowance for probable incurred losses.

The allowance for loan losses consists of two primary components: (1) a specific component which relates to loans that are individually classified as impaired and (2) a general component which covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on a combination of the Company’s loss history and loss history from peer group over the past three years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment.

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The following loan portfolio segments have been identified: (1) Construction and land development loans, (2) Commercial real estate loans, (3) Residential real estate, (4) Commercial and industrial loans, and (5) Consumer and other loans. Management evaluates the risks associated with these segments based upon specific characteristics associated with the loan segments. These risk characteristics include, but are not limited to, the value of the underlying collateral, adverse economic conditions, and the borrower’s cash flow. While the total allowance consists of a specific portion and a general portion, both portions of the allowance are available to provide for probable incurred loan losses in the entire portfolio.

In the table below, the components, as discussed above, of the allowance for loan losses are shown at March 31, 2015 and December 31, 2014.

	March 31, 2015							December 31, 2014							Increase (Decrease)
	Loan Balance		ALLL Balance		%			Loan Balance		ALLL Balance		%			Loan Balance			ALLL Balance
Non impaired loans	$	736,054	$	7,290		1.08	%	$	626,180	$	6,662		1.06	%	$	109,874		$	628	-7 bps
MidSouth loans (Note 1)		134,174		—		—	%		156,806		—		—	%		(22,632	)		—	—
Impaired loans		1,402		18		1.28	%		946		18		1.90	%		456			—	-62 bps
Non-PCI loans		871,630		7,308		0.84	%		783,932		6,680		0.85	%		87,698			628	-1 bps
PCI loans		4,306		—		—	%		4,315		—		—	%		(9	)		—	—
Total loans	$	875,936	$	7,308		0.83	%	$	788,247	$	6,680		0.85	%	$	87,689		$	628	-2 bps

Note 1: Loans acquired pursuant to the July 1, 2014 acquisition of MidSouth that are not PCI loans. These are performing loans recorded at estimated fair value at the acquisition date. The fair value adjustment at the acquisition date was approximately $5,014 of the outstanding non-PCI loan balances acquired. This amount is accreted into interest income over the remaining lives of the related loans on a level yield basis. Because these loans were recorded at estimated fair value on July 1, 2014, no allowance for loan loss was recorded at March 31, 2015 related to the acquired loans.

At March 31, 2015, the allowance for loan losses was $7,308, compared to $6,680 at December 31, 2014. The allowance for loan losses as a percentage of total loans was 0.83% and 0.85% at March 31, 2015 and December 31, 2014, respectively. Loan growth during this period is the primary reason for the increase in the allowance amount.

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The table below sets forth the activity in the allowance for loan losses for the periods presented.

	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014
Beginning balance	$	6,680		$	4,900
Loans charged-off:
Residential real estate		—			—
Construction & land development		—			—
Commercial real estate		—			—
Commercial & industrial		—			—
Consumer		—			—
Total loans charged-off		—			—
Recoveries on loans previously charged-off:
Residential real estate		3			19
Construction & land development		—			—
Commercial real estate		—			—
Commercial & industrial		—			—
Consumer		—			—
Total loan recoveries		3			19
Net recoveries (charge-offs)		3			19
Provision for loan losses charged to expense		625			385
Total allowance at end of period	$	7,308		$	5,304
Total loans, gross, at end of period (1)	$	875,936		$	452,700
Average gross loans (1)	$	829,149		$	438,804
Allowance to total loans		0.83	%		1.17	%
Net charge-offs (recoveries) to average loans, annualized		0.00	%		(0.02	%)

(1) Loan balances exclude loans held for sale

While no portion of the allowance is in any way restricted to any individual loan or group of loans, and the entire allowance is available to absorb losses from any and all loans, the following table summarizes the allocation of allowance for loan losses by loan category and loans in each category as a percentage of total loans, for the periods presented.

	March 31, 2015								December 31, 2014
	Amount		% of Allowance to Total			% of Loan Type to Total Loans			Amount		% of Allowance to Total			% of Loan Type to Total Loans
Real estate loans:
Residential	$	1,727		23.6	%		25.6	%	$	1,791		26.8	%		27.2	%
Construction and land development		2,549		34.9	%		32.3	%		2,690		40.3	%		30.4	%
Commercial		2,124		29.1	%		29.8	%		1,494		22.4	%		31.5	%
Total real estate		6,400		87.6	%		87.7	%		5,975		89.5	%		89.1	%
Commercial and industrial		850		11.6	%		11.5	%		650		9.7	%		9.9	%
Consumer and other		58		0.8	%		0.8	%		55		0.8	%		1.0	%

Nonperforming Assets

Non-performing loans consist of non-accrual loans and loans that are past due 90 days or more and still accruing interest. Non-performing assets consist of non-performing loans plus OREO (i.e., real estate acquired through foreclosure or deed in lieu of foreclosure). Loans are placed on non-accrual status when they are past due 90 days and management believes the borrower’s financial condition, after giving consideration to economic conditions and collection efforts, is such that collection of interest is

39

doubtful. When a loan is placed on non-accrual status, interest accruals cease and uncollected interest is reversed and charged against current income. The interest on these loans is accounted for on the cash-basis, or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The primary component of non-performing loans is non-accrual loans, which as of March 31, 2015 totaled $853. The other component of non-performing loans are loans past due greater than 90 days and still accruing interest. Loans past due greater than 90 days are placed on non-accrual status, unless they are both well-secured and in the process of collection. There were outstanding loans totaling $334 that were past due 90 days or more and still accruing interest at March 31, 2015.

The table below summarizes non-performing loans and assets for the periods presented.

	March 31, 2015			December 31, 2014
Non-accrual loans	$	853		$	835
Past due loans 90 days or more and still accruing interest		334			316
Total non-performing loans		1,187			1,151
Foreclosed real estate (“OREO”)		453			715
Total non-performing assets		1,640			1,866
Total non-performing loans as a percentage of total loans		0.1	%		0.1	%
Total non-performing assets as a percentage of total assets		0.1	%		0.1	%
Allowance for loan losses as a percentage of non-performing loans		616	%		580	%

As of March 31, 2015, there were two loans on non-accrual status. The amount and number are further delineated by collateral category and number of loans in the table below.

	Total Amount		Percentage of Total Non-Accrual Loans			Number of Non-Accrual Loans
Residential real estate	$	—		—	%		—
Construction & land development		—		—	%		—
Commercial real estate		835		97.9	%		1
Commercial & industrial		18		2.1	%		1
Consumer		—		—	%		—
Total non-accrual loans	$	853		100.0	%		2

Investment Securities and Other Earning Assets

The investment securities portfolio is intended to provide the Company with adequate liquidity, flexible asset/liability management and a source of stable income. The portfolio is structured with minimal credit exposure to the Company and consists of both securities classified as available-for-sale and securities classified as held-to-maturity. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management deem it to be in the Company’s best interest. Securities available-for-sale, consisting primarily of U.S. government sponsored enterprises and mortgage-backed securities, were $456,520 at March 31, 2015, compared to $395,705 at December 31, 2014, an increase of $60,815 or 15.4%. The increase in available-for-sale securities was primarily attributed to the securities purchased during the first quarter.

The held-to-maturity securities are carried at amortized cost. This portfolio, consisting of U.S. government sponsored enterprises, mortgage-backed securities and municipal securities, totaled $50,650 at March 31, 2015, compared to $53,332 at December 31, 2014, a decrease of $2,682, or 5.0%. The decrease is attributable to securities that were called or matured during the first quarter of 2015.

The combined portfolios represented 33.6% and 33.1% of total assets at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, the Company had no securities that were classified as having Other Than Temporary Impairment.

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The Company also had other investments of $5,731 and $5,349 at March 31, 2015 and December 31, 2014, respectively, consisting of capital stock in the Federal Reserve and the Federal Home Loan Bank (required as members of the Federal Reserve Bank System and the Federal Home Loan Bank System). The Federal Home Loan Bank and Federal Reserve investments are “restricted” in that they can only be sold back to the respective institutions or another member institution at par, and are thus, not liquid, have no ready market or quoted market value, and are carried at cost.

Bank Premises and Equipment

Bank premises and equipment totaled $9,731 at March 31, 2015 compared to $9,664 at December 31, 2014, an increase of $67, or 0.7%. This increase was the result of adding furniture and equipment as needed in the normal course of business.

Buildings Held for Sale

At March 31, 2015, the balance in buildings held for sale was zero, compared with the balance of $4,080 at December 31, 2014. Three of the former MidSouth branch properties were reclassified at December 31, 2014 as held for sale, since they had been identified to be sold, and the sale of the properties was probable at that time. The sale of these properties settled during the three months ending March 31, 2015, and a gain of $15 was realized as a result of the sale.

Deposits

Deposits represent the Company’s largest source of funds. The Company competes with other bank and nonbank institutions for deposits, as well as with a growing number of non-deposit investment alternatives available to depositors, such as mutual funds, money market funds, annuities, and other brokerage investment products. Challenges to deposit growth include price changes on deposit products given movements in the rate environment and other competitive pricing pressures, and customer preferences regarding higher-costing deposit products or non-deposit investment alternatives.

At March 31, 2015, total deposits were $1,271,602, an increase of $99,369, or 8.5%, compared to $1,172,233 at December 31, 2014. The growth in deposits is attributable to growth in brokered deposits, public funds deposits, non-brokered time deposits, noninterest-bearing deposits, and interest checking deposits. These are discussed in the following paragraphs.

Included in the Company’s funding strategy are brokered deposits. Total brokered deposits increased from $86,411 at December 31, 2014 to $136,444 at March 31, 2015, primarily due to brokered deposits that were added as part of the Company’s funding strategy relative to the loan growth experienced by the Company.

Public funds deposits in the form of county deposits are a part of the Company’s funding strategy and are cyclical in nature, with the highest period of growth being during the first quarter of each calendar year. Public funds grew $21,093, or 6.2%, from $342,179 at December 31, 2014 to $363,272 at March 31, 2015.

Time deposits excluding brokered deposits as of March 31, 2015, amounted to $285,961, compared to $268,101 as of December 31, 2014, an increase of $17,860, or 6.7%. Noninterest-bearing checking deposits grew $7,611, or 5.1%, and non-public funds interest checking accounts grew $5,744, or 6.5%, respectively when comparing deposit balances from March 31, 2015 with balances at December 31, 2014.

The following table shows time deposits in denominations of $100 or more by category based on time remaining until maturity.

Maturity of non-brokered time deposits of $100 or more

	March 31, 2015
Three months or less	$	29,414
Three through six months		40,609
Six through twelve months		30,102
Over twelve months		81,955
Total	$	182,080

Federal Funds Purchased and Repurchase Agreements

As of March 31, 2015, the Company had no federal funds purchased from correspondent banks compared to $16,825 outstanding as of December 31, 2014. Securities sold under agreements to repurchase had an outstanding balance of $35,718 as of March 31, 2015, compared to $22,253 as of December 31, 2014. Securities sold under agreements to repurchase are financing arrangements that mature daily. At maturity, the securities underlying the agreements are returned to the Company.

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Federal Home Loan Bank Advances

The Company has established a line of credit with the Federal Home Bank of Cincinnati which is secured by a blanket pledge of 1-4 family residential mortgages. At March 31, 2015 and at December 31, 2014, advances totaled $19,000.

At March 31, 2015, the scheduled maturities of these and advances and interest rates were as follows:

Scheduled Maturities	Amount		Weighted Average Rates
2015	$	2,000		0.70	%
2016		—		—	%
2017		10,000		1.27	%
2018		7,000		1.61	%
Total	$	19,000		1.33	%

Liquidity

Liquidity is defined as the ability to meet anticipated customer demands for funds under credit commitments and deposit withdrawals at a reasonable cost and on a timely basis.

Liquidity risk involves the risk of being unable to fund assets with the appropriate duration and rate-based liabilities, as well as the risk of not being able to meet unexpected cash needs. Liquidity planning and management are necessary to ensure the ability to fund operations cost-effectively and to meet current and future potential obligations such as loan commitments, lease obligations, and unexpected deposit outflows. In this process, management focuses on both assets and liabilities and on the manner in which they combine to provide adequate liquidity to meet the Company’s needs.

Funds are available from a number of basic banking activity sources including the core deposit base, the repayment and maturity of loans, payments of principal and interest as well as sales of investments classified as available-for-sale, and sales of brokered deposits. As of March 31, 2015, $456,520 of the investment securities portfolio was classified as available-for-sale and is reported at fair value on the consolidated balance sheet. Another $50,650 of the portfolio was classified as held-to-maturity and is reported at amortized cost. Approximately $488,573 of the total $507,420 investment securities portfolio on hand at March 31, 2015, was pledged to secure public deposits and repurchase agreements. Other funding sources available include repurchase agreements, federal funds purchased, and borrowings from the Federal Home Loan Bank.

Shareholders’ Equity

On March 26, 2015, The Company launched an initial public stock offering and began trading on the New York Stock Exchange under the ticker symbol “FSB.” In the offering, the Company issued 2,640,000 shares of its common stock at a price of $21.00 per share. The initial public offering was completed during March 2015. Net proceeds were as follows:

Gross proceeds	$	55,440
Less: stock offering costs		(4,436	)
Net proceeds from issuance of common stock	$	51,004

The details of the offering are available in the Prospectus that the Company filed with the SEC on March 27, 2015.

Effects of Inflation and Changing Prices

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time due to inflation. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates generally have a more significant impact on the performance of a financial institution than the effects of general levels of inflation. Although interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services, increases in inflation generally have resulted in increased interest rates. In addition, inflation affects financial institutions’ increased cost of goods and services purchased, the cost of salaries and benefits, occupancy expense, and similar items. Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and shareholders’ equity. Commercial and other loan originations and refinancings tend to slow as interest rates increase, and can reduce the Company’s earnings from such activities.

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Off Balance Sheet Arrangements

The Company generally does not have any off-balance sheet arrangements other than approved and unfunded loans and lines and letters of credit to customers in the ordinary course of business. At March 31, 2015, the Company had unfunded loan commitments outstanding of $51,535, unused lines of credit of $262,845, and outstanding standby letters of credit of $11,087.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

Some of the financial data included in our selected historical consolidated financial information are not measures of financial performance recognized by GAAP. Our management uses these non-GAAP financial measures in its analysis of our performance:

• “Common shareholders’ equity” is defined as total shareholders’ equity at end of period less the liquidation preference value of the preferred stock;

• “Tangible common shareholders’ equity” is common shareholders’ equity less goodwill and other intangible assets;

• “Total tangible assets” is defined as total assets less goodwill and other intangible assets;

• “Other intangible assets” is defined as the sum of core deposit intangible and SBA servicing rights;

• “Tangible book value per share” is defined as tangible common shareholders’ equity divided by total common shares outstanding. This measure is important to investors interested in changes from period-to-period in book value per share exclusive of changes in intangible assets;

• “Tangible common shareholders’ equity ratio” is defined as the ratio of tangible common shareholders’ equity divided by total tangible assets. We believe that this measure is important to many investors in the marketplace who are interested in relative changes from period-to period in common equity and total assets, each exclusive of changes in intangible assets;

• “Return on Average Tangible Common Equity” is defined as net income available to common shareholders divided by average tangible common shareholders’ equity;

• “Efficiency ratio” is defined as noninterest expenses divided by our operating revenue, which is equal to net interest income plus noninterest income;

• “Adjusted yield on loans” is our yield on loans after excluding loan accretion from our acquired loan portfolio. Our management uses this metric to better assess the impact of purchase accounting on our yield on loans, as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off of our balance sheet;

• “Net interest margin” is defined as annualized net interest income divided by average interest-earning assets for the period;

• “Adjusted net interest margin” is net interest margin after excluding loan accretion from the acquired loan portfolio and premiums for acquired time deposits. Our management uses this metric to better assess the impact of purchase accounting on net interest margin, as the effect of loan discount accretion and accretion of net discounts and premiums related to deposits is expected to decrease as the acquired loans and deposits mature or roll off of our balance sheet.

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We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:

	As of or for the Three Months Ended
(Amounts in thousands, except share/ per share data and percentages)	Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			Jun 30, 2014			Mar 31, 2014
Total shareholders’ equity	$	178,541		$	121,799		$	116,454		$	74,199		$	68,827
Less: Preferred stock		10,000			10,000			10,000			10,000			10,000
Total common shareholders’ equity		168,541			111,799			106,454			64,199			58,827
Less: Goodwill and other intangibles		11,709			11,886			12,074			240			245
Tangible common shareholders’ equity	$	156,832		$	99,913		$	94,380		$	63,959		$	58,582
Common shares outstanding		10,465,930			7,756,411			7,739,644			4,915,907			4,862,778
Tangible book value per share	$	14.99		$	12.88		$	12.19		$	13.01		$	12.05
Net income available to common shareholders	$	3,107		$	2,810		$	1,990		$	2,010		$	1,504
Average tangible common equity		103,475			97,630			96,310			60,915			57,679
Return on average tangible common equity		12.18	%		11.42	%		8.20	%		13.23	%		10.58	%
Efficiency Ratio:
Net interest income	$	12,157		$	12,123		$	11,127		$	7,348		$	7,095
Noninterest income		3,215			2,926			3,274			2,430			1,421
Operating revenue		15,372			15,049			14,401			9,778			8,516
Expense
Total noninterest expense		9,621			9,863			10,389			6,078			5,492
Efficiency ratio		62.59	%		65.54	%		72.14	%		62.16	%		64.49	%
Reported yield on loans		5.35	%		5.67	%		5.92	%		5.77	%		5.39	%
Effect of accretion income on acquired loans		(0.28	%)		(0.36	%)		(0.43	%)		0.00	%		0.00	%
Adjusted yield on loans		5.07	%		5.31	%		5.49	%		5.77	%		5.39	%
Reported net interest margin		3.65	%		3.97	%		3.86	%		3.48	%		3.55	%
Effect of accretion income on acquired loans		(0.18	%)		(0.23	%)		(0.27	%)		0.00	%		0.00	%
Effect of premium amortization of acquired deposits		(0.01	%)		(0.02	%)		(0.02	%)		0.00	%		0.00	%
Adjusted net interest margin		3.46	%		3.72	%		3.57	%		3.48	%		3.55	%

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FRANKLIN FINANCIAL NETWORK, INC.

SUMMARY QUARTERLY CONSOLIDATED FINANCIAL DATA (UNAUDITED)

(Amounts in thousands, except per share data and percentages)

	As of and for the three months ended
	Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		Jun 30, 2014			Mar 31, 2014
Income Statement Data ($):
Interest income		13,926		13,742		12,692		8,699			8,299
Interest expense		1,769		1,619		1,565		1,351			1,204
Net interest income		12,157		12,123		11,127		7,348			7,095
Provision for loan losses		625		885		664		440			385
Noninterest income		3,215		2,926		3,274		2,430			1,421
Noninterest expense		9,621		9,863		10,389		6,078			5,492
Net Income before taxes		5,126		4,301		3,348		3,260			2,639
Provision for taxes		1,994		1,466		1,333		1,225			1,110
Net income		3,132		2,835		2,015		2,035			1,529
Net income available to common shareholders		3,107		2,810		1,990		2,010			1,504
Earnings per share, basic		0.39		0.36		0.26		0.41			0.31
Earnings per share, diluted		0.37		0.34		0.25		0.40			0.30
Profitability (%)
Return on average assets		0.90		0.88		0.67		0.94			0.74
Return on average equity		10.14		9.40		7.02		11.47			9.13
Return on average tangible common equity		12.18		11.42		8.20		13.23			10.58
Efficiency ratio		62.59		65.54		72.14		62.16			64.49
Net Interest margin		3.65		3.97		3.86		3.48			3.55
Balance Sheet Data ($):
Loans (including HFS)		897,001		805,650		744,927		501,664			463,137
Loan loss reserve		7,308		6,680		5,883		5,771			5,304
Cash		48,580		49,347		36,657		26,054			30,870
Securities		507,170		449,037		403,043		322,607			351,850
Goodwill		9,124		9,124		9,121		157			157
Intangible assets		2,585		2,762		2,953		83			88
Assets		1,509,430		1,355,827		1,238,579		872,142			866,685
Deposits		1,271,602		1,172,233		1,051,558		747,324			739,634
Liabilities		1,330,889		1,234,028		1,122,125		797,943			797,858
Total equity		178,541		121,799		116,454		74,199			68,827
Common equity		168,541		111,799		106,454		64,199			58,827
Tangible common equity		156,832		99,913		94,380		63,959			58,582
Asset Quality (%)
Nonperforming loans/ total loans		0.14		0.15		0.47		0.34			0.58
Nonperforming assets / total loans + OREO		0.19		0.24		0.70		0.58			0.58
Loan loss reserve / loans (excluding HFS)		0.84		0.85		0.82		1.19			1.17
Net charge-offs / average loans		0.00		0.04		0.30		(0.02	)		(0.02	)
Capital (%)
Tangible common equity to tangible assets		10.47		7.43		7.70		7.34			6.76
Leverage ratio		11.41		8.57		8.83		8.39			8.48
Tier 1 common ratio		14.01		10.51		11.17		11.10			11.38
Tier 1 risk-based capital ratio		14.95		11.58		12.35		12.86			13.24
Total risk-based capital ratio		15.64		12.30		13.05		13.88			14.23

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Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the effectiveness of the Company’s Form S-4 filed with the SEC on May 14, 2014 in connection with the Company’s acquisition of MidSouth, which registered the Company’s common stock issued in the acquisition of MidSouth under the Securities Act, and resulted in the Company becoming an SEC reporting company under Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); (2) the last day of the fiscal year in which we have more than $1.0 billion in annual revenues; (3) the date on which we are deemed to be a “large accelerated filer” under the Exchange Act; or (4) the date on which we have, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on these exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile.

Further, the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, it adopts the new or revised standard at the time public companies adopt the new or revised standard. This election is irrevocable.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The Company’s primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on a large portion of the Company’s assets and liabilities, and the market value of all interest-earning assets and interest-bearing liabilities, other than those which possess a short term to maturity. Based upon the nature of the Company’s operations, the Company is not subject to foreign currency exchange or commodity price risk.

Management seeks to maintain profitability in both immediate and long-term earnings through funds management/interest rate risk management. Interest rate risk (sensitivity) management deals with the potential impact on earnings associated with changing interest rates using various rate change (shock) scenarios. The Company’s rate sensitivity position has an important impact on earnings. Senior management monitors the Company’s rate sensitivity position throughout each month, and then the Asset Liability Committee (“ALCO”) of the Bank meets on a quarterly basis to analyze the rate sensitivity position and other aspects of asset/liability management. These meetings cover the spread between the cost of funds (primarily time deposits) and interest yields generated primarily through loans and investments, rate shock analyses, liquidity and dependency positions, and other areas necessary for proper balance sheet management.

Management believes interest rate risk is best measured by earnings simulation modeling. The simulation is run using the prime rate as the base with the assumption of rates increasing 100, 200, 300 and 400 basis points or decreasing 100 and 200 basis points. All rates are increased or decreased parallel to the change in prime rate. As a result of the simulation, over a 12-month time period ending March 31, 2015, net interest income was estimated to increase 3.63% and 6.03% if rates were to increase 100 basis points and 200 basis points, respectively, and was estimated to decrease 4.76% and 16.67% in a 100 basis points and 200 basis points declining rate assumption, respectively. These results are in line with the Company’s guidelines for rate sensitivity.

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The following chart reflects the Company’s sensitivity to changes in interest rates as indicated as of March 31, 2015.

Projected Interest Rate Change	Net Interest Income	Net Interest Income $ Change from Base	% Change from Base
-200	39,843	-7,968	-16.67%
-100	45,537	-2,274	-4.76%
Base	47,811	—	0.00%
+100	49,546	1,735	3.63%
+200	50,692	2,881	6.03%
+300	51,769	3,957	8.28%
+400	52,790	4,979	10.41%

The preceding sensitivity analysis is a modeling analysis, which changes periodically and consists of hypothetical estimates based upon numerous assumptions including interest rate levels, changes in the shape of the yield curve, prepayments on loans and securities, rates on loans and deposits, reinvestments of pay downs and maturities of loans, investments and deposits, changes in spreads between key market rates, and other assumptions. In addition, there is no input for growth or a change in asset mix. While assumptions are developed based on the current economic and market conditions, the Company cannot make any assurances as to the predictive nature of these assumptions, including how customer preferences or competitor influences might change. As market conditions vary from those assumed in the sensitivity analysis, actual results will differ. Also, these results do not include any management action that might be taken in responding to or anticipating changes in interest rates. The simulation results are one indicator of interest rate risk, and actual net interest income is largely impacted by the allocation of assets, liabilities, and product mix.

ITEM 4. CONTROLS AND PROCEDURES.

(a) Evaluation of Disclosure Controls and Procedures. The Company’s chief executive officer and chief financial officer have evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as that term is defined in Rule 13a-15(e) under the Exchange Act) as of March 31, 2015, the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the chief executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls. There has been no change in our internal control over financial reporting that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Management is not aware of any material pending legal proceedings against the Company which, if determined adversely, the Company believes would have a material adverse impact on the Company’s financial position, results of operations or cash flows.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K filed with the SEC on March 11, 2015 other than the additional disclosure of the risk factors listed below.

An active, liquid market for our common stock may not develop or be sustained, which may impair the ability of our shareholders to sell their shares.

Before the listing of our common stock on the New York Stock Exchange (the “NYSE”) on March 26, 2015, our common stock had very little liquidity, with only limited trading of our common stock on the OTCQB of the OTC Markets Group. Even though our common stock is now listed on the NYSE under the symbol “FSB”, there is limited trading volume and an active, liquid trading market for our common stock may not develop or be sustained. A public trading market having the desired characteristics of depth, liquidity and orderliness depends upon the presence in the marketplace and independent decisions of willing buyers and sellers of our common stock, over which we have no control. If an active, liquid trading market for our common stock does not develop, shareholders may not be able to sell their shares at the volume, prices and times desired. Moreover, the lack of an established market could materially and adversely affect the value of our common stock. The market price of our common stock could decline significantly due to actual or anticipated issuances or sales of our common stock in the future.

47

Shares of our common stock are subject to dilution and the market price of our common stock could decline due to the number of outstanding shares of our common stock eligible for future sale, including shares that will be available for sale following the expiration of lock-up periods.

Actual or anticipated issuances or sales of additional amounts of our common stock in the future could cause the market price of our common stock to decline significantly and make it more difficult for us to sell equity securities in the future at a time and on terms that we deem appropriate. The issuance of any shares of our common stock in the future also would dilute the percentage ownership interest held by shareholders prior to such issuance. As of May 10, 2015, we had 10,501,462 shares of common stock issued and outstanding. Of the outstanding shares of common stock, all of the 2,640,000 shares that were sold in our initial public offering are freely tradable, except that any shares purchased by “affiliates” (as that term is defined in Rule 144 under the Securities Act), may be sold publicly only in compliance with certain limitations. In addition, 2,766,191 shares of our outstanding common stock were issued pursuant to a registration statement on Form S-4 in connection with the acquisition of MidSouth and are freely tradable. Other than certain of the restricted shares we previously issued under our 2007 Omnibus Equity Incentive Plan (the “2007 Plan”), and subject in certain cases to lock-up restrictions with respect to our directors and executive officers that restrict their ability, with certain exceptions, to transfer shares of our common stock held by them for a period of 180 days, the remaining 4,084,234 outstanding shares of our common stock may be sold in the market over time in accordance with Rule 144 under the Securities Act or otherwise in future public offerings. We plan to file a registration statement on Form S-8 under the Securities Act to register an aggregate of 4,000,000 shares of our common stock for issuance under our 2007 Plan. Subject to certain exceptions, approximately 1,224,003 shares of our common stock will become eligible for sale upon expiration of the 180-day lock-up period. Accordingly, the market price of our common stock could be adversely affected by actual of anticipated sales of a significant number of shares of our common stock in the future.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Shares of the Company’s common stock were issued during the first quarter of 2015 pursuant to the exercise of warrants and options issued by the Company, as follows:

Date of Sale	Number of Shares of Common Stock Sold		Type of Issuance	Price Per Share		Aggregate Price
02/02/2015		1,902	Options Exercised	$	11.75	$	22,348.50
		3,945	Options Exercised	$	10.00	$	39,450.00
		7,485	Options Exercised	$	10.50	$	78,592.50
		16,937	Options Exercised	$	12.00	$	203,244.00
		6,850	Options Exercised	$	13.00	$	89,050.00
02/03/2015		200	Warrants Exercised	$	12.00	$	2,400.00
		16,937	Options Exercised	$	12.00	$	203,244.00
02/12/2015		150	Options Exercised	$	10.00		(1)$0.00
		145	Options Exercised	$	10.50		(1)$0.00
		275	Options Exercised	$	11.75		(1)$0.00
		152	Options Exercised	$	12.00		(1)$0.00
		19	Options Exercised	$	13.00		(1)$0.00
02/25/2013		6,850	Options Exercised	$	13.00	$	89,050.00
03/18/2015		586	Options Exercised	$	10.00		(1)$0.00
		293	Options Exercised	$	10.50		(1)$0.00
		983	Options Exercised	$	11.75		(1)$0.00
		526	Options Exercised	$	12.00		(1)$0.00
		97	Options Exercised	$	13.00		(1)$0.00
03/30/2015		6,389	Options Exercised	$	8.57	$	54,753.73

⁽¹⁾  These option exercises were cashless exercises.

Neither the exercises of the warrant and options nor their original issuances involved any underwriters, underwriting discounts or commissions, or any public offering, and the Company believes that such transactions were exempt from the registration requirements of the Securities Act in reliance on Section 4(2) of the Securities Act (or Rule 506 of Regulation D promulgated thereunder) as transactions by an issuer not involving a public offering.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

48

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS

Exhibit No.	Description
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) (Section 302 Certification).
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) (Section 302 Certification).
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (Section 906 Certification).
101	Interactive Data Files.*

* The documents formatted in XBRL (Extensible Business Reporting Language) and attached as Exhibit 101 to this report are deemed not filed as part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act, are deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise are not subject to liability under these sections.

49

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FRANKLIN FINANCIAL NETWORK, INC.
May 14, 2015	By:	/s/ Sally P. Kimble
		Sally P. Kimble
		On behalf of the registrant and as Chief Financial Officer (Principal Financial Officer)

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) (Section 302 Certification).
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) (Section 302 Certification).
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (Section 906 Certification).
101	Interactive Data Files.*

* The documents formatted in XBRL (Extensible Business Reporting Language) and attached as Exhibit 101 to this report are deemed not filed as part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act, are deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise are not subject to liability under these sections.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Richard E. Herrington, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Franklin Financial Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2015	By:	/s/ Richard E. Herrington
		Richard E. Herrington
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Sally P. Kimble, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Franklin Financial Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2015	By:	/s/ Sally P. Kimble
		Sally P. Kimble
		Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO RULE 13a-14(b) UNDER

THE SECURITIES EXCHANGE ACT OF 1934 AND

SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

Each of the undersigned, Richard E. Herrington, the Chief Executive Officer of Franklin Financial Network, Inc. (the “Company”), and Sally P. Kimble, Chief Financial Officer of the Company, certifies, pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code, that (1) this Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, and (2) the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification is signed on May 14, 2015.

By:	/s/ Richard E. Herrington
	Richard E. Herrington Chief Executive Officer
By:	/s/ Sally P. Kimble
	Sally P. Kimble Chief Financial Officer

XML

Securities - Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available for sale
Amortized Cost, Three months or less	$ 30,000
Amortized Cost, Over three months through one year	0
Amortized Cost, Over one year through five years	0
Amortized Cost, Over five years through ten years	7,788
Amortized Cost, Over ten years	8,545
Amortized Cost	450,373	392,179
Held to maturity
Amortized Cost, Three months or less	0
Amortized Cost, Over three months through one year	0
Amortized Cost, Over one year through five years	1,385
Amortized Cost, Over five years through ten years	1,106
Amortized Cost, Over ten years	11,189
Amortized Cost, Mortgage-backed securities: residential	36,970
Amortized Cost	50,650	53,332
Available for sale
Fair Value, Three months or less	30,000
Fair Value, Over three months through one year	0
Fair Value, Over one year through five years	0
Fair Value, Over five years through ten years	8,021
Fair Value, Over ten years	8,411
Fair Value, Mortgage-backed securities	405,870
Fair Value, Mortgage-backed securities	4,218
Fair Value, Total	456,520	395,705
Held to maturity
Fair Value, Three months or less	0
Over three months through one year	0
Fair Value, Over one year through five years	1,448
Fair Value, Over five years through ten years	1,141
Fair Value, Over ten years	11,557
Fair Value, Mortgage-backed securities: residential	37,315
Fair Value, Total	51,461	53,741
Mortgage-Backed Securities: Residential [Member]
Available for sale
Amortized Cost, Mortgage-backed securities	399,896
Amortized Cost	399,896	335,677
Held to maturity
Amortized Cost	36,970	38,587
Available for sale
Fair Value, Total	405,870	339,067
Held to maturity
Fair Value, Total	37,315	38,580
Mortgage-Backed Securities: Commercial [Member]
Available for sale
Amortized Cost, Mortgage-backed securities	4,144
Amortized Cost	4,144	6,432
Available for sale
Fair Value, Total	$ 4,218	$ 6,465

XML

Loan Servicing - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Transfers and Servicing [Abstract]
Fair value of servicing rights	$ 3,999	$ 4,180
Weighted average discount rate	10.50%	10.50%
Weighted average prepayment speed	11.70%	10.80%
Weighted average amortization period	5 years 10 months 10 days

XML

Loans - Schedule of Aging of Recorded Investment in Past Due Loans by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 30-59 Days Past Due	$ 2,461	$ 705
Aging of Recorded Investment, 60-89 Days Past Due	14	377
Aging of Recorded Investment, Greater Than 89 Days Past Due	1,169	1,151
Aging of Recorded Investment, Total Past Due	3,644	2,233
Aging of Recorded Investment, Loans Not Past Due	867,986	781,699
Aging of Recorded Investment, Total	871,630	783,932
Construction and Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 30-59 Days Past Due	682	354
Aging of Recorded Investment, Total Past Due	682	354
Aging of Recorded Investment, Loans Not Past Due	281,838	238,871
Aging of Recorded Investment, Total	282,596	239,302
Commercial Real Estate Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, Greater Than 89 Days Past Due	835	835
Aging of Recorded Investment, Total Past Due	835	835
Aging of Recorded Investment, Loans Not Past Due	254,111	240,140
Aging of Recorded Investment, Total	256,696	242,773
Commercial Real Estate, Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, Loans Not Past Due	4,259	5,377
Aging of Recorded Investment, Total	4,259	5,377
Real Estate Residential Closed-end 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 30-59 Days Past Due	475	299
Aging of Recorded Investment, 60-89 Days Past Due		165
Aging of Recorded Investment, Greater Than 89 Days Past Due	334	316
Aging of Recorded Investment, Total Past Due	809	780
Aging of Recorded Investment, Loans Not Past Due	132,231	129,851
Aging of Recorded Investment, Total	133,737	131,337
Residential Real Estate, Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 30-59 Days Past Due	1,292	52
Aging of Recorded Investment, Total Past Due	1,292	52
Aging of Recorded Investment, Loans Not Past Due	89,146	83,077
Aging of Recorded Investment, Total	90,545	83,237
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 60-89 Days Past Due		212
Aging of Recorded Investment, Total Past Due		212
Aging of Recorded Investment, Loans Not Past Due	98,986	76,358
Aging of Recorded Investment, Total	100,662	78,194
Consumer and Other Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, 30-59 Days Past Due	12
Aging of Recorded Investment, 60-89 Days Past Due	14
Aging of Recorded Investment, Total Past Due	26
Aging of Recorded Investment, Loans Not Past Due	7,415	8,025
Aging of Recorded Investment, Total	7,441	8,027
PCI Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	4,306	4,315
PCI Loans [Member] | Construction and Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	76	77
PCI Loans [Member] | Commercial Real Estate Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	1,750	1,798
PCI Loans [Member] | Real Estate Residential Closed-end 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	697	706
PCI Loans [Member] | Residential Real Estate, Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	107	108
PCI Loans [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans	1,676	1,624
PCI Loans [Member] | Consumer and Other Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Aging of Recorded Investment, PCI Loans		$ 2

XML

Loan Servicing - Schedule of Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 610
2016	516
2017	$ 516

XML

Loans - Summary of Impaired Loans by Class of Loans (Detail) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, With no allowance recorded	$ 2,971,000	$ 2,515,000
Unpaid Principal Balance	2,989,000	2,533,000
Recorded Investment, With no allowance recorded	1,384,000	928,000
Recorded Investment	1,402,000	946,000
Unpaid Principal Balance, With an allowance recorded	18,000	18,000
Recorded Investment, With an allowance recorded	18,000	18,000
Allowance for Loan Losses Allocated	18,000	18,000
Average Recorded Investment, With no allowance recorded	1,375,000	1,205,000
Average Recorded Investment, With an allowance recorded	19,000	2,667,000
Average Recorded Investment	1,394,000	3,872,000
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, With no allowance recorded	93,000
Recorded Investment, With no allowance recorded	93,000
Unpaid Principal Balance, With an allowance recorded	18,000	18,000
Recorded Investment, With an allowance recorded	18,000	18,000
Allowance for Loan Losses Allocated	18,000	18,000
Average Recorded Investment, With no allowance recorded	83,000
Average Recorded Investment, With an allowance recorded	19,000	66,000
Commercial Real Estate Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, With no allowance recorded	2,422,000	2,422,000
Recorded Investment, With no allowance recorded	835,000	835,000
Average Recorded Investment, With no allowance recorded	835,000	1,205,000
Average Recorded Investment, With an allowance recorded		1,375,000
Real Estate Residential Closed-end 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, With no allowance recorded	456,000	93,000
Recorded Investment, With no allowance recorded	456,000	93,000
Average Recorded Investment, With no allowance recorded	457,000
Average Recorded Investment, With an allowance recorded		$ 1,226,000

XML

Acquisitions - Summary of Fair Value of Acquired Loans and Unpaid Principal Balance (Detail) (MidSouth Bank [Member], USD $) In Thousands, unless otherwise specified	Jul. 01, 2014
Unpaid Principal Value [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	$ 191,692
Unpaid Principal Value [Member] | Residential Real Estate [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	39,425
Unpaid Principal Value [Member] | Commercial Real Estate [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	82,465
Unpaid Principal Value [Member] | Construction and Land Development [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	43,766
Unpaid Principal Value [Member] | Commercial Loans [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	16,311
Unpaid Principal Value [Member] | Consumer and Other Loans [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	1,865
Unpaid Principal Value [Member] | Purchased Credit Impaired [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	7,860
Fair Value [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	184,345
Fair Value [Member] | Residential Real Estate [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	38,618
Fair Value [Member] | Commercial Real Estate [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	80,566
Fair Value [Member] | Construction and Land Development [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	42,454
Fair Value [Member] | Commercial Loans [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	15,352
Fair Value [Member] | Consumer and Other Loans [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	1,828
Fair Value [Member] | Purchased Credit Impaired [Member]
Business Acquisition [Line Items]
Unpaid principal amount and Fair value of acquired loans	$ 5,527

XML

Share-Based Payments - Fair Value Assumptions of Stock Options (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	1.93%	2.48%
Expected term	7 years 6 months	7 years 6 months
Expected stock price volatility	25.00%	11.04%
Dividend yield	0.22%	0.43%

XML

Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

	Fair Value Measurements at March 31, 2015 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	46,432	$	—
Mortgage-backed securities-residential		—		405,870		—
Mortgage-backed securities-commercial		—		4,218		—
Total securities available for sale	$	—	$	456,520	$	—
Loans held for sale	$	—	$	22,462	$	—
Mortgage banking derivatives	$	—	$	552	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	224	$	—

	Fair Value Measurements at December 31, 2014 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	30,173	$	—
U.S. Treasury Bills		20,000		—		—
Mortgage-backed securities-residential		—		339,067		—
Mortgage-backed securities-commercial		—		6,465		—
State and political subdivisions		—		—		—
Total securities available for sale	$	20,000	$	375,705	$	—
Loans held for sale	$	—	$	18,462	$	—
Mortgage banking derivatives	$	—	$	285	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	132	$	—

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments, at March 31, 2015 and December 31, 2014 are as follows:

			Fair Value Measurements at March 31, 2015 Using:
	Carrying Amount
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	48,580	$	48,580	$	—	$	—	$	48,580
Securities available for sale		456,520		—		456,520		—		456,520
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		50,650		—		51,461		—		51,461
Loans held for sale		22,462		—		22,462		—		22,462
Net loans		867,231		—		—		868,887		868,887
Restricted equity securities		5,731		n/a		n/a		n/a		n/a
Servicing rights, net		3,113		—		3,999		—		3,999
Accrued interest receivable		3,984		10		1,502		2,472		3,984
Financial liabilities
Deposits	$	1,271,602	$	902,227	$	372,375	$	—	$	1,274,602
Federal funds purchased and repurchase agreements		35,718		—		35,718		—		35,718
Federal Home Loan Bank advances		19,000		—		19,166		—		19,166
Accrued interest payable		552		36		516		—		552

	Carrying Amount		Fair Value Measurements at December 31, 2014 Using:
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	49,347	$	49,347	$	—	$	—	$	49,347
Securities available for sale		395,705		20,000		375,705		—		395,705
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		53,332		—		53,741		—		53,741
Loans held for sale		18,462		—		18,462		—		18,462
Net loans		780,508		—		—		782,745		782,745
Restricted equity securities		5,349		n/a		n/a		n/a		n/a
Servicing rights, net		3,053		—		4,180		—		4,180
Accrued interest receivable		3,545		—		1,368		2,177		3,545
Financial liabilities
Deposits	$	1,172,233	$	848,158	$	326,644	$	—	$	1,174,802
Federal funds purchased and repurchase agreements		39,078		—		39,078		—		39,078
Federal Home Loan Bank advances		19,000		—		19,146		—		19,146
Accrued interest payable		421		33		388		—		421

XML

Loans - Summary of Total Contractually Required Principal and Interest Cash Payments, Management's Estimate of Expected Total Cash Payments and Carrying Value of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Contractually required principal and interest	$ 6,135	$ 6,532
Non-accretable difference	(989)	(1,270)
Cash flows expected to be collected	5,146	5,262
Accretable yield	(840)	(947)
Carrying value of acquired loans	4,306	4,315
Allowance for loan losses	0	0
Carrying value less allowance for loan losses	$ 4,306	$ 4,315

XML

Loans - Summary of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Aging of Recorded Investment, Total	$ 871,630	$ 783,932
Deferred loan fees, net	(1,397)	(1,059)
Total loans that are not PCI loans	870,233	782,873
Allowance for loan losses	(7,308)	(6,680)	(5,304)	(4,900)
Total loans, net of allowance for loan losses	867,231	780,508
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,306	4,315
Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Construction and land development	282,520	239,225
Aging of Recorded Investment, Total	282,596	239,302
Allowance for loan losses	(2,549)	(2,690)	(1,546)	(1,497)
Construction and Land Development [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	76	77
Commercial Real Estate Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonfarm, nonresidential	254,946	240,975
Aging of Recorded Investment, Total	256,696	242,773
Commercial Real Estate Financing Receivable [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,750	1,798
Commercial Real Estate, Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other	4,259	5,377
Aging of Recorded Investment, Total	4,259	5,377
Real Estate Residential Closed-end 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Closed-end 1-4 family	133,040	130,631
Aging of Recorded Investment, Total	133,737	131,337
Real Estate Residential Closed-end 1-4 Family [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	697	706
Residential Real Estate, Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other	90,438	83,129
Aging of Recorded Investment, Total	90,545	83,237
Residential Real Estate, Other [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	107	108
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial and industrial	98,986	76,570
Aging of Recorded Investment, Total	100,662	78,194
Allowance for loan losses	(850)	(650)	(464)	(337)
Commercial and Industrial [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,676	1,624
Consumer and Other Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer and other	7,441	8,025
Aging of Recorded Investment, Total	7,441	8,027
Allowance for loan losses	(58)	(55)	(63)	(98)
Consumer and Other Financing Receivable [Member] | PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans		$ 2

XML

Securities - Summary of Sales and Calls of Available for Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Available-for-sale Securities [Abstract]
Proceeds	$ 11,289	$ 5,451
Gross gains	390	24
Gross losses	$ (14)	$ (16)

XML

Loan Servicing - Schedule of Loans Serviced Not Reported as Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Loans Servicing For Institutional Investors [Line Items]
Loan portfolios serviced	$ 3,999	$ 4,180
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Loans Servicing For Institutional Investors [Line Items]
Loan portfolios serviced	425,714	414,222
Collateralized Mortgage Backed Securities [Member]
Loans Servicing For Institutional Investors [Line Items]
Loan portfolios serviced	$ 3,753	$ 3,986

XML

Capital Offering - Additional Information (Detail) (USD $)	0 Months Ended
	Mar. 26, 2015	Mar. 26, 2015
Equity [Abstract]
Stock offering price per share in private placement		$ 21.00
Common shares issued	2,640,000

XML

Regulatory Capital Matters - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital conservation buffer	2.50%
Capital conservation buffer ratio to be phased in at beginning	0.625%
Capital conservation buffer phase in year	2016
Capital conservation buffer period final year	2019
Capital conservation buffer requirement phase in period in years	3 years
Description of dividend restriction pertaining to the dividends that the company could declare	13,836 plus any 2015 net profits retained to the date of declaration
Capital Conservation Buffer [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Tier 1 risk-based capital ratio	7.00%
Tier 1 risk-based capital ratio	8.50%
Total risk-based capital ratio	10.50%
One-Time Accumulated Other Comprehensive Income Opt-Out [Member] | Maximum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Banks and holding companies capital requirement	250,000,000

XML

Loans - Schedule of Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days on Accrual by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable Recorded Investment Nonaccrual Loans [Line Items]
Recorded Investment, Nonaccrual	$ 853	$ 835
Recorded Investment, Loans Past Due Over 90 Days	334	316
Commercial Real Estate Financing Receivable [Member]
Financing Receivable Recorded Investment Nonaccrual Loans [Line Items]
Recorded Investment, Nonaccrual	835	835
Real Estate Residential Closed-end 1-4 Family [Member]
Financing Receivable Recorded Investment Nonaccrual Loans [Line Items]
Recorded Investment, Loans Past Due Over 90 Days	334	316
Commercial And Industrial Financing Receivable [Member]
Financing Receivable Recorded Investment Nonaccrual Loans [Line Items]
Recorded Investment, Nonaccrual	$ 18

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

NOTE 1—BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Franklin Financial Network, Inc. (“FFN”), and its wholly owned subsidiaries, Franklin Synergy Bank and Banc Compliance Group, Inc. (collectively, the “Company”), have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). All adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the periods reported have been included as required by Regulation S-X, Rule 10-01. All such adjustments are of a normal recurring nature. It is suggested that these interim consolidated financial statements and notes be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2015.

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Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 456,520	$ 395,705
Loans held for sale	22,462	18,462
U.S. Government Sponsored Entities and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	46,432	30,173
Mortgage-Backed Securities: Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	405,870	339,067
Mortgage-Backed Securities: Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	4,218	6,465
U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale		20,000
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale		20,000
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale		20,000
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	456,520	375,705
Loans held for sale	22,462	18,462
Mortgage banking derivatives	552	285
Mortgage banking derivatives	224	132
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Entities and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	46,432	30,173
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities: Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	405,870	339,067
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities: Commercial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 4,218	$ 6,465

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Loans - Activity in Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Allowance For Loan Losses [Line Items]
Beginning balance	$ 6,680	$ 4,900
Provision for loan losses	625	385
Loans charged-off	0	0
Recoveries	3	19
Total ending allowance balance	7,308	5,304
Construction and Land Development [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	2,690	1,497
Provision for loan losses	(141)	49
Loans charged-off	0	0
Total ending allowance balance	2,549	1,546
Commercial Real Estate [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	1,494	1,566
Provision for loan losses	630	129
Loans charged-off	0	0
Total ending allowance balance	2,124	1,695
Residential Portfolio Segment [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	1,791	1,402
Provision for loan losses	(67)	115
Loans charged-off	0	0
Recoveries	3	19
Total ending allowance balance	1,727	1,536
Commercial and Industrial [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	650	337
Provision for loan losses	200	127
Loans charged-off	0	0
Total ending allowance balance	850	464
Consumer and Other Financing Receivable [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	55	98
Provision for loan losses	3	(35)
Loans charged-off	0	0
Total ending allowance balance	$ 58	$ 63

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Acquisitions - Summary of Purchase Price Calculation (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended
	Jul. 01, 2014
MidSouth Bank [Member]
Business Acquisition [Line Items]
Total FFN common shares exchanged, net	2,766,191
Total Stock Consideration-Fair value of FFN common stock issued	$ 40,110
Fair value of FFN stock options granted to MidSouth option holders	866
Total acquisition consideration	41,094
MidSouth Bank [Member] | Common Stock [Member]
Business Acquisition [Line Items]
Common shares, number of MidSouth shares Outstanding	3,873
Purchase price, per share exchange Ratio	0.425926
Total FFN common shares exchanged, net	1,650
Multiplied by FFN common stock value per share	$ 14.50
MidSouth Bank [Member] | Convertible Voting Preferred Stock, 2009-A [Member]
Business Acquisition [Line Items]
Convertible voting preferred stock, number of MidSouth shares outstanding	1,018
Purchase price, per share exchange Ratio	0.851852
Total FFN common shares exchanged, net	867
MidSouth Bank [Member] | Convertible Voting Preferred Stock, 2011-A [Member]
Business Acquisition [Line Items]
Convertible voting preferred stock, number of MidSouth shares outstanding	242
Purchase price, per share exchange Ratio	0.851852
Total FFN common shares exchanged, net	206
MidSouth Bank [Member] | Series 2009-A Stock Warrants [Member]
Business Acquisition [Line Items]
Stock warrants, number of MidSouth Shares Outstanding	193
Purchase price, per share exchange Ratio	0.185185
Total FFN common shares exchanged, net	36
MidSouth Bank [Member] | Series 2011-A Stock Warrants [Member]
Business Acquisition [Line Items]
Stock warrants, number of MidSouth Shares Outstanding	44
Purchase price, per share exchange Ratio	0.153333
Total FFN common shares exchanged, net	7
Fractional Shares [Member] | MidSouth Bank [Member]
Business Acquisition [Line Items]
Cash consideration paid	18
Dissenting Preferred Shares [Member]
Business Acquisition [Line Items]
Total FFN common shares exchanged, net	7,427
Dissenting Preferred Shares [Member] | MidSouth Bank [Member]
Business Acquisition [Line Items]
Cash consideration paid	$ 100

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Acquisitions - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	0 Months Ended		3 Months Ended
	Mar. 31, 2014	Jul. 01, 2014	Jun. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill				$ 9,124	$ 9,124
Acquired loans with credit impaired				4,306	4,315
Acquisition related costs	517
Dissenting Preferred Shares [Member]
Business Acquisition [Line Items]
Common stock issued		7,427
MidSouth Bank [Member]
Business Acquisition [Line Items]
Acquisition completed date				Jul. 01, 2014
Name of the acquired entity				MidSouth Bank
Acquisition agreement date				Nov. 19, 2013
Goodwill		9,124
Business acquisition, percentage of shares acquired		100.00%
Lieu of fractional shares description				In lieu of issuing fractional shares of FFN common stock, FFN paid former MidSouth shareholders an amount in cash determined by multiplying (i) $13.50 by (ii) the fraction of a share (rounded to the nearest ten thousandth when expressed in decimal form) of FFN common stock.
Common stock issued		2,766,191
Total consideration paid		41,094
Loans acquired at fair value		184,345	184,345
Estimated discount to outstanding principal loan balance, value			7,347
Estimated discount to outstanding principal loan balance, percentage			3.80%
Loans acquired, percentage			38.00%
Acquired loans with credit impaired				5,527
Core deposit intangible		3,060
Increase in interest income	3,310
Increase in net income available to common shareholders	310
MidSouth Bank [Member] | Dissenting Preferred Shares [Member]
Business Acquisition [Line Items]
Cash consideration paid		100
MidSouth Bank [Member] | Fractional Shares [Member]
Business Acquisition [Line Items]
Cash consideration paid		18
MidSouth Bank [Member] | Common Stock [Member]
Business Acquisition [Line Items]
Shares received by acquiree		0.425926
MidSouth Bank [Member] | Preferred Stock [Member]
Business Acquisition [Line Items]
Shares received by acquiree		0.851852
MidSouth Bank [Member] | Series 2009-A Stock Warrants [Member]
Business Acquisition [Line Items]
Shares received by acquiree		0.18
MidSouth Bank [Member] | Series 2011-A Stock Warrants [Member]
Business Acquisition [Line Items]
Shares received by acquiree		0.146667
MidSouth Bank [Member] | Core Deposit Intangibles [Member]
Business Acquisition [Line Items]
Core deposit intangible		3,060
Estimated economic life				8 years 2 months 12 days

XML

Share-Based Payments - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended	1 Months Ended			12 Months Ended	1 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014	Apr. 30, 2013	Dec. 31, 2007	Apr. 30, 2010	Jul. 01, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants exercised	200	0
Cash proceeds on warrants exercised	$ 2,000
Intrinsic value of warrants exercised	2,000
Trigger value of 2010 warrant, price per share.	$ 15.00
Warrants, contingent redemption price	$ 1.00
Number of shares authorized for issuance	2,617,288
Exercise price of options	$ 11.30
Share-based compensation arrangements by share-based payment award, estimated grant date fair value	$ 6.76	$ 2.58
Shares, Granted	1,000		181,680
Shares, Exercised	70,521	119	23,809
Shares, Forfeited, expired, or canceled	2,000		31,135
Exercise of stock options	780,000
Intrinsic value of shares exercised	609,000
Unrecognized compensation cost, nonvested stock options	611,000
Unrecognized compensation cost, period of recognition	1 year 4 months 24 days
2010 Offering [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant shares issued	32,425
Warrant exercise price per share	$ 12.00
Warrants exercisable period	7 years
Warrants outstanding	31,677
2007 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options authorized							551,250
Increase in shares authorized						1,500,000
Increased number of authorized shares				4,000,000	2,000,000
Options contractual term	10 years
2007 Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	3 years
2007 Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	5 years
Two Thousand Ten Amended Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options authorized								1,000,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangements by share-based payment award, estimated grant date fair value									$ 14.50
Post combination expense	0
Common Stock [Member] | MidSouth Bank [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock options converted									322,300
Options to purchase shares of common stock									137,280
Exercise price of options									$ 8.57
Share-based compensation arrangements by share-based payment award, estimated grant date fair value									$ 6.31
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, nonvested stock options	$ 1,130,000
Unrecognized compensation cost, period of recognition	3 years
Number of shares granted	87,374
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	3 years
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	5 years

XML

Loans - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Jul. 01, 2014
Loans [Line Items]
Allowance for loan losses for PCI loans	$ 0	$ 0	$ 0
Unpaid principal amount	2,989,000	2,533,000
PCI Loans [Member]
Loans [Line Items]
Estimated credit discount				5,014,000
Estimated fair value	134,174,000			178,818,000
Unpaid principal amount				$ 183,832,000

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Acquisitions - Summary of Purchase Price Calculation (Parenthetical) (Detail) (MidSouth Bank [Member], USD $)	Jul. 01, 2014
Series 2009-A Stock Warrants [Member]
Business Acquisition [Line Items]
Stock warrants strike price	$ 3.25
Series 2011-A Stock Warrants [Member]
Business Acquisition [Line Items]
Stock warrants strike price	$ 3.68

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Acquisitions - Summary of Preliminary Estimates of Fair Value of the Assets Purchased, Including Goodwill and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Jul. 01, 2014	Jun. 30, 2014
Assets:
Goodwill	$ 9,124	$ 9,124
MidSouth Bank [Member]
Assets:
Cash and due from banks			1,369
Interest-bearing accounts at other financial institutions			10,946
Securities, available-for-sale			57,431
Loans held for sale			7,071
Loans			184,345	184,345
Certificates of deposit at other financial institutions			250
Restricted equity securities			1,572
Bank premises and equipment, net			6,650
Bank-owned life insurance			3,144
Accrued interest receivable			728
Foreclosed assets			540
Core deposit intangible			3,060
Deferred tax asset			6,853
Goodwill			9,124
Other assets			747
Total assets acquired			293,830
Deposits			244,415
Short-term borrowings			6,893
Other liabilities			1,428
Total liabilities assumed			252,736
MidSouth Bank [Member] | As Initially Reported [Member]
Assets:
Cash and due from banks			1,369
Interest-bearing accounts at other financial institutions			10,946
Securities, available-for-sale			57,431
Loans held for sale			7,071
Loans			184,345
Certificates of deposit at other financial institutions			250
Restricted equity securities			1,572
Bank premises and equipment, net			6,650
Bank-owned life insurance			3,144
Accrued interest receivable			728
Foreclosed assets			800
Core deposit intangible			3,060
Deferred tax asset			6,753
Goodwill			8,964
Other assets			747
Total assets acquired			293,830
Deposits			244,415
Short-term borrowings			6,893
Other liabilities			1,428
Total liabilities assumed			252,736
MidSouth Bank [Member] | Measurement Period Adjustments [Member]
Assets:
Foreclosed assets			(260)
Deferred tax asset			100
Goodwill			$ 160

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net income	$ 3,132	$ 1,529
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization on premises and equipment	319	159
Accretion of purchase accounting adjustments	(625)
Net amortization of securities	746	556
Amortization of loan servicing right asset	223	215
Amortization of core deposit intangible	172
Provision for loan losses	625	385
Excess tax benefit related to the exercise of stock options	(147)
Origination of loans held for sale	(74,849)	(47,114)
Proceeds from sale of loans held for sale	72,213	47,216
Net gain on sale of loans	(1,647)	(784)
Gain on sale of available for sale securities	(376)	(8)
Gain on call of held to maturity securities	(39)
Income from bank owned life insurance	(112)	(60)
(Gain) loss on sale and write down of foreclosed assets	(6)	(33)
Stock-based compensation	146	204
Deferred gain on sale of loans	(9)	(12)
Deferred gain on sale of foreclosed assets	(3)
Net change in:
Accrued interest receivable and other assets	(472)	(331)
Accrued interest payable and other liabilities	1,011	(216)
Net cash from operating activities	305	1,706
Available for sale securities:
Sales	9,289	5,451
Purchases	(161,475)	(34,208)
Maturities, prepayments and calls	93,686	8,459
Held to maturity securities:
Purchases		(8,601)
Maturities, prepayments and calls	2,657	4,759
Net change in loans	(86,758)	(30,582)
Purchase of bank owned life insurance	(10,000)
Proceeds from sale of buildings held for sale	4,080
Purchase of restricted equity securities	(382)
Proceeds from sale of foreclosed assets	265	214
Purchases of premises and equipment, net	(386)	(1,396)
Net cash from investing activities	(149,024)	(55,904)
Cash flows from financing activities
Increase in deposits	99,404	58,334
Decrease in federal funds purchased and repurchase agreements	(3,360)	(1,459)
Proceeds from Federal Home Loan Bank advances		10,000
Proceeds from exercise of common stock warrants	2
Proceeds from exercise of common stock options, including excess tax benefit	927	1
Proceeds from issuance of common stock, net of offering costs	51,004
Dividends paid on preferred stock	(25)	(25)
Net cash from financing activities	147,952	66,851
Net change in cash and cash equivalents	(767)	12,653
Cash and cash equivalents at beginning of period	49,347	18,217
Cash and cash equivalents at end of period	48,580	30,870
Supplemental information:
Interest paid	1,638	1,143
Income taxes paid	$ 1,500	$ 1,230

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Acquisitions - Contractually Required Principal and Interest Cash Payments, Management's Estimates of Expected Total Cash Payments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Jul. 01, 2014
Business Acquisition [Line Items]
Contractually required principal and interest	$ 6,135	$ 6,532
MidSouth Bank [Member]
Business Acquisition [Line Items]
Contractually required principal and interest			8,510
Non-accretable difference			(1,745)
Cash flows expected to be collected			6,765
Accretable yield			(1,238)
Total purchased credit-impaired loans acquired			$ 5,527

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Securities - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Carrying value of pledged securities	$ 488,573,000	$ 366,764,000
Other than US Government Sponsored Entities and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amount of holdings of securities of any one issuer	$ 0	$ 0

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Loan Servicing - Components of Net Loan Servicing Fees (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Transfers and Servicing [Abstract]
Loan servicing fees	$ 266	$ 227
Amortization of loan servicing fees	(223)	(215)
Change in impairment	0	0
Total	$ 43	$ 12

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from financial institutions	$ 48,580	$ 49,347
Certificates of deposit at other financial institutions	250	250
Securities available for sale	456,520	395,705
Securities held to maturity (fair value 2015-$51,461 and 2014-$53,741)	50,650	53,332
Loans held for sale, at fair value	22,462	18,462
Loans	874,539	787,188
Allowance for loan losses	(7,308)	(6,680)
Net loans	867,231	780,508
Restricted equity securities, at cost	5,731	5,349
Premises and equipment, net	9,731	9,664
Accrued interest receivable	3,984	3,545
Bank owned life insurance	21,776	11,664
Deferred tax asset	5,675	6,780
Buildings held for sale		4,080
Foreclosed assets	453	715
Servicing rights, net	3,113	3,053
Goodwill	9,124	9,124
Core deposit intangible, net	2,526	2,698
Other assets	1,624	1,551
Total assets	1,509,430	1,355,827
Deposits
Non-interest bearing	156,062	150,337
Interest bearing	1,115,540	1,021,896
Total deposits	1,271,602	1,172,233
Federal funds purchased and repurchase agreements	35,718	39,078
Federal Home Loan Bank advances	19,000	19,000
Accrued interest payable	552	421
Other liabilities	4,017	3,296
Total liabilities	1,330,889	1,234,028
Shareholders' equity
Senior non-cumulative preferred stock, no par value, $10,000 liquidation value: Series A, 1,000,000 shares authorized; 10,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	10,000	10,000
Common stock, no par value; 20,000,000 shares authorized; 10,465,930 and 7,756,411 shares issued and outstanding at March 31, 2015 and December 31 2014, respectively	146,330	94,251
Retained earnings	18,479	15,372
Accumulated other comprehensive income	3,732	2,176
Total shareholders' equity	178,541	121,799
Total liabilities and shareholders' equity	$ 1,509,430	$ 1,355,827

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Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 18,000	$ 18,000
Allowance for loan losses, Collectively evaluated for impairment	7,290,000	6,662,000
Purchased credit-impaired loans	0	0	0
Total ending allowance balance	7,308,000	6,680,000	5,304,000	4,900,000
Total ending allowance balance	7,308,000	6,680,000	5,304,000	4,900,000
Loans, Individually evaluated for impairment	1,402,000	946,000
Loans, Collectively evaluated for impairment	870,228,000	782,986,000
Purchased credit-impaired loans	4,306,000	4,315,000
Total ending loans balance	875,936,000	788,247,000
Construction and Land Development [Member]
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	2,549,000	2,690,000
Purchased credit-impaired loans		0
Total ending allowance balance	2,549,000	2,690,000	1,546,000	1,497,000
Total ending allowance balance	2,549,000	2,690,000	1,546,000	1,497,000
Loans, Collectively evaluated for impairment	282,520,000	239,225,000
Purchased credit-impaired loans	76,000	77,000
Total ending loans balance	282,596,000	239,302,000
Commercial Real Estate [Member]
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	2,124,000	1,494,000
Purchased credit-impaired loans		0
Total ending allowance balance	2,124,000	1,494,000	1,695,000	1,566,000
Total ending allowance balance	2,124,000	1,494,000	1,695,000	1,566,000
Loans, Individually evaluated for impairment	835,000	835,000
Loans, Collectively evaluated for impairment	258,370,000	245,517,000
Purchased credit-impaired loans	1,750,000	1,798,000
Total ending loans balance	260,955,000	248,150,000
Residential Portfolio Segment [Member]
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	1,727,000	1,791,000
Purchased credit-impaired loans		0
Total ending allowance balance	1,727,000	1,791,000	1,536,000	1,402,000
Total ending allowance balance	1,727,000	1,791,000	1,536,000	1,402,000
Loans, Individually evaluated for impairment	456,000	93,000
Loans, Collectively evaluated for impairment	223,022,000	213,667,000
Purchased credit-impaired loans	804,000	814,000
Total ending loans balance	224,282,000	214,574,000
Commercial and Industrial [Member]
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Individually evaluated for impairment	18,000	18,000
Allowance for loan losses, Collectively evaluated for impairment	832,000	632,000
Purchased credit-impaired loans		0
Total ending allowance balance	850,000	650,000	464,000	337,000
Total ending allowance balance	850,000	650,000	464,000	337,000
Loans, Individually evaluated for impairment	111,000	18,000
Loans, Collectively evaluated for impairment	98,875,000	76,552,000
Purchased credit-impaired loans	1,676,000	1,624,000
Total ending loans balance	100,662,000	78,194,000
Consumer and Other Financing Receivable [Member]
Allowance For Loan Losses And Recorded Investment In Loans [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	58,000	55,000
Purchased credit-impaired loans		0
Total ending allowance balance	58,000	55,000	63,000	98,000
Total ending allowance balance	58,000	55,000	63,000	98,000
Loans, Collectively evaluated for impairment	7,441,000	8,025,000
Purchased credit-impaired loans		2,000
Total ending loans balance	$ 7,441,000	$ 8,027,000

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) In Thousands	Total	Series A Preferred Stock [Member]	Common Stock [Member]	Retained Earnings [Member]	Retained Earnings [Member] Series A Preferred Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2013	$ 65,163	$ 10,000	$ 52,638	$ 7,058		$ (4,533)
Exercise of common stock options	1		1
Dividends paid on Series A preferred stock	(25)				(25)
Stock based compensation expense	204		204
Net income	1,529			1,529
Other comprehensive income (loss)	1,955					1,955
Ending balance at Mar. 31, 2014	68,827	10,000	52,843	8,562		(2,578)
Beginning balance at Dec. 31, 2014	121,799	10,000	94,251	15,372		2,176
Exercise of common stock options	780		780
Exercise of common stock warrants, 200 shares	2		2
Dividends paid on Series A preferred stock	(25)				(25)
Stock based compensation expense	146		146
Stock (2,640,000 shares) issued related to initial public offering, net of stock issuance costs of $4,436	51,004		51,004
Excess tax benefit from exercise of stock options	147		147
Net income	3,132			3,132
Other comprehensive income (loss)	1,556					1,556
Ending balance at Mar. 31, 2015	$ 178,541	$ 10,000	$ 146,330	$ 18,479		$ 3,732

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Share-Based Payments - Summary of Activity for Nonvested Restricted Share Awards (Detail) (Restricted Stock [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Nonvested, Beginning Balance	102,710
Shares, Granted	0
Shares, Vested	0
Shares, Forfeited	(1,202)
Shares, Nonvested, Ending Balance	101,508
Weighted-Average Grant-Date Fair Value, Nonvested, Beginning Balance	$ 13.93
Weighted-Average Grant-Date Fair Value, Granted	$ 0
Weighted-Average Grant-Date Fair Value, Vested	$ 0
Weighted-Average Grant-Date Fair Value, Forfeited	$ 16.14
Weighted-Average Grant-Date Fair Value, Nonvested, Ending Balance	$ 13.91

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Securities - Summary of Amortized Cost and Fair Value of Available for Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 450,373	$ 392,179
Gross Unrealized Gains	7,000	5,043
Gross Unrealized Losses	(853)	(1,517)
Fair Value	456,520	395,705
U.S. Government Sponsored Entities and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	46,333	30,070
Gross Unrealized Gains	233	417
Gross Unrealized Losses	(134)	(314)
Fair Value	46,432	30,173
Mortgage-Backed Securities: Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	399,896	335,677
Gross Unrealized Gains	6,693	4,593
Gross Unrealized Losses	(719)	(1,203)
Fair Value	405,870	339,067
Mortgage-Backed Securities: Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,144	6,432
Gross Unrealized Gains	74	33
Fair Value	4,218	6,465
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		20,000
Fair Value		$ 20,000

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Earnings Per Share - Computation of Earnings per Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Basic
Net income available to common shareholders	$ 3,107	$ 1,504
Less: earnings allocated to participating securities	(40)	(9)
Net income allocated to common shareholders	3,067	1,495
Weighted average common shares outstanding including participating securities	7,970,250	4,862,674
Less: Participating securities	(102,187)	(28,476)
Average shares	7,868,063	4,834,198
Basic earnings per common share	$ 0.39	$ 0.31
Diluted
Net income allocated to common shareholders	$ 3,067	$ 1,495
Weighted average common shares outstanding for basic earnings per common share	7,868,063	4,834,198
Add: Dilutive effects of assumed exercises of stock options	432,808	123,161
Add: Dilutive effects of assumed exercises of stock warrants	12,951	3,542
Average shares and dilutive potential common shares	8,313,822	4,960,901
Dilutive earnings per common share	$ 0.37	$ 0.30

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Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Schedule of Loans Serviced Not Reported as Assets

Loans serviced for others are not reported as assets. The principal balances of these loans at March 31, 2015 and December 31, 2014 are as follows:

	March 31, 2015		December 31, 2014
Loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	425,714	$	414,222
Other		3,753		3,986

Components of Net Loan Servicing Fees

The components of net loan servicing fees for the three months ended March 31, 2015 and 2014 were as follows:

	Three Months Ended March 31,
	2015			2014
Loan servicing fees, net:
Loan servicing fees	$	266		$	227
Amortization of loan servicing fees		(223	)		(215	)
Change in impairment		—			—
Total	$	43		$	12

Schedule of Estimated Amortization Expense

The weighted average amortization period is 5.86 years. Estimated amortization expense for each of the next three years is:

2015	$	610
2016		516
2017		516

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Securities - Schedule of Amortized Cost and Fair Value of Held to Maturity Securities Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 50,650	$ 53,332
Gross Unrecognized Gains	1,279	1,068
Gross Unrecognized Losses	(468)	(659)
Fair Value	51,461	53,741
U.S. Government Sponsored Entities and Agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,763	5,550
Gross Unrecognized Gains	128	162
Gross Unrecognized Losses	(45)	(87)
Fair Value	4,846	5,625
Mortgage-Backed Securities: Residential [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	36,970	38,587
Gross Unrecognized Gains	762	555
Gross Unrecognized Losses	(417)	(562)
Fair Value	37,315	38,580
State and Political Subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	8,917	9,195
Gross Unrecognized Gains	389	351
Gross Unrecognized Losses	(6)	(10)
Fair Value	$ 9,300	$ 9,536

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Regulatory Capital Matters (Tables)

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Actual and Required Capital Amounts and Ratios

The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (in thousands):

	Actual					Minimum Capital Requirement					Excess Amount
	Amount		Ratio			Amount		Ratio
March 31, 2015
Company common equity Tier 1 capital to risk-weighted assets	$	149,119		14.01	%	$	47,899		4.50	%	$	101,220
Company total capital to risk-weighted assets	$	166,427		15.64	%	$	85,154		8.00	%	$	81,273
Company Tier 1 capital to risk-weighted assets	$	159,119		14.95	%	$	63,866		6.00	%	$	95,253
Company Tier 1 capital to average assets	$	159,119		11.41	%	$	55,769		4.00	%	$	103,350
Bank common equity Tier 1 capital to risk-weighted assets	$	136,865		12.86	%	$	47,894		4.50	%	$	88,971
Bank total capital to risk-weighted assets	$	153,173		14.39	%	$	85,145		8.00	%	$	68,028
Bank Tier 1 capital to risk-weighted assets	$	145,865		13.71	%	$	63,859		6.00	%	$	82,006
Bank Tier 1 capital to average assets	$	145,865		10.48	%	$	55,697		4.00	%	$	90,168
December 31, 2014
Company total capital to risk-weighted assets	$	114,475		12.30	%	$	74,464		8.00	%	$	40,011
Company Tier 1 capital to risk-weighted assets	$	107,795		11.58	%	$	37,232		4.00	%	$	70,563
Company Tier 1 capital to average assets	$	107,795		8.57	%	$	50,291		4.00	%	$	57,504
Bank total capital to risk-weighted assets	$	113,830		12.23	%	$	74,447		8.00	%	$	39,383
Bank Tier 1 capital to risk-weighted assets	$	107,150		11.51	%	$	37,223		4.00	%	$	69,927
Tier 1 capital to average assets	$	107,150		8.52	%	$	50,279		4.00	%	$	56,871

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Capital Offering - Schedule of Net Proceeds (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Gross proceeds	$ 55,440
Less: stock offering costs	(4,436)
Net proceeds from issuance of common stock	$ 51,004

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Exercise of common stock options, number of shares	70,521
Common stock warrants exercised, shares	200
Common Stock [Member]
Restricted share forfeitures	1,202
Initial Public Offering [Member] | Common Stock [Member]
Common stock, shares	2,640,000
Proceeds from issuance of common stock, net of offering costs	4,436

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Held-to-maturity securities, fair value	$ 51,461	$ 53,741
Preferred stock, par value	$ 0	$ 0
Preferred stock, liquidation value	$ 10,000	$ 10,000
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	10,000	10,000
Preferred stock, shares outstanding	10,000	10,000
Common stock, par value	$ 0	$ 0
Common stock shares authorized	20,000,000	20,000,000
Common stock shares issued	10,465,930	7,756,411
Common stock, share outstanding	10,465,930	7,756,411

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Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 9—EARNINGS PER SHARE

The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow:

	Three Months Ended March 31,
	2015			2014
Basic
Net income available to common shareholders	$	3,107		$	1,504
Less: earnings allocated to participating securities		(40	)		(9	)
Net income allocated to common shareholders	$	3,067		$	1,495
Weighted average common shares outstanding including participating securities		7,970,250			4,862,674
Less: Participating securities		(102,187	)		(28,476	)
Average shares		7,868,063			4,834,198
Basic earnings per common share	$	0.39		$	0.31

	Three Months Ended March 31,
	2015		2014
Diluted
Net income allocated to common shareholders	$	3,067	$	1,495
Weighted average common shares outstanding for basic earnings per common share		7,868,063		4,834,198
Add: Dilutive effects of assumed exercises of stock options		432,808		123,161
Add: Dilutive effects of assumed exercises of stock warrants		12,951		3,542
Average shares and dilutive potential common shares		8,313,822		4,960,901
Dilutive earnings per common share	$	0.37	$	0.30

Stock options for 3,000 and 125,619 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2015 and 2014 because they were antidilutive.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	FSB
Entity Registrant Name	FRANKLIN FINANCIAL NETWORK INC.
Entity Central Index Key	0001407067
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,499,562

XML

Capital Offering

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Capital Offering

NOTE 10—CAPITAL OFFERING

The Company initiated an initial public stock offering on March 26, 2015. The Company issued 2,640,000 shares of common stock at a price of $21.00 per share and began trading on the New York Stock Exchange on March 26, 2015, under the ticker symbol “FSB”. The initial public offering was completed during March 2015. Net proceeds were as follows:

Gross proceeds	$	55,440
Less: stock offering costs		(4,436	)
Net proceeds from issuance of common stock	$	51,004

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest income and dividends
Loans, including fees	$ 11,154	$ 5,918
Securities:
Taxable	2,665	2,303
Tax-Exempt	20	20
Dividends on restricted equity securities	67	40
Federal funds sold and other	20	18
Total interest income	13,926	8,299
Interest expense
Deposits	1,633	1,148
Federal funds purchased and repurchase agreements	71	27
Federal Home Loan Bank advances	65	29
Total interest expense	1,769	1,204
Net interest income	12,157	7,095
Provision for loan losses	625	385
Net interest income after provision for loan losses	11,532	6,710
Noninterest income
Service charges on deposit accounts	16	12
Other service charges and fees	618	236
Net gains on sale of loans	1,647	784
Investment services	286	43
Loan servicing fees, net	43	12
Gain on sale or call of securities	415	8
Net gain on sale of foreclosed assets	6	33
Other	184	293
Total noninterest income	3,215	1,421
Noninterest expense
Salaries and employee benefits	5,681	3,545
Occupancy and equipment	1,579	786
FDIC assessment expense	214	119
Marketing	220	111
Professional fees	359	354
Amortization of core deposit intangible	172
Other	1,396	577
Total noninterest expense	9,621	5,492
Income before income tax expense	5,126	2,639
Income tax expense	1,994	1,110
Net income	3,132	1,529
Dividends paid on Series A preferred stock	(25)	(25)
Net income available to common shareholders	$ 3,107	$ 1,504
Earnings per share:
Basic	$ 0.39	$ 0.31
Diluted	$ 0.37	$ 0.30

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Loans

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans

NOTE 4—LOANS

Loans at March 31, 2015 and December 31, 2014 were as follows:

	March 31, 2015			December 31, 2014
Loans that are not PCI loans
Construction and land development	$	282,520		$	239,225
Commercial real estate:
Nonfarm, nonresidential		254,946			240,975
Other		4,259			5,377
Residential real estate:
Closed-end 1-4 family		133,040			130,631
Other		90,438			83,129
Commercial and industrial		98,986			76,570
Consumer and other		7,441			8,025
Loans before net deferred loan fees		871,630			783,932
Deferred loan fees, net		(1,397	)		(1,059	)
Total loans that are not PCI loans		870,233			782,873
PCI loans
Construction and land development	$	76		$	77
Commercial real estate:
Nonfarm, nonresidential		1,750			1,798
Other		—			—
Residential real estate:
Closed-end 1-4 family		697			706
Other		107			108
Commercial and industrial		1,676			1,624
Consumer and other		—			2
Total PCI loans		4,306			4,315
Allowance for loan losses		(7,308	)		(6,680	)
Total loans, net of allowance for loan losses	$	867,231		$	780,508

The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2015 and 2014:

	Construction and Land Development			Commercial Real Estate		Residential Real Estate			Commercial and Industrial		Consumer and Other			Total
Three Months Ending March 31, 2015
Allowance for loan losses:
Beginning balance	$	2,690		$	1,494	$	1,791		$	650	$	55		$	6,680
Provision for loan losses		(141	)		630		(67	)		200		3			625
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		3			—		—			3
Total ending allowance balance	$	2,549		$	2,124	$	1,727		$	850	$	58		$	7,308
Three Months Ending March 31, 2014
Allowance for loan losses:
Beginning balance	$	1,497		$	1,566	$	1,402		$	337	$	98		$	4,900
Provision for loan losses		49			129		115			127		(35	)		385
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		19			—		—			19
Total ending allowance balance	$	1,546		$	1,695	$	1,536		$	464	$	63		$	5,304

There was no allowance for loan losses for PCI loans for the three months ended March 31, 2015 or for the three months ended March 31, 2014.

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2015 and December 31, 2014. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality.

	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
March 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,549		2,124		1,727		832		58		7,290
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,549	$	2,124	$	1,727	$	850	$	58	$	7,308
Loans:
Individually evaluated for impairment	$	—	$	835	$	456	$	111	$	—	$	1,402
Collectively evaluated for impairment		282,520		258,370		223,022		98,875		7,441		870,228
Purchased credit-impaired loans		76		1,750		804		1,676		—		4,306
Total ending loans balance	$	282,596	$	260,955	$	224,282	$	100,662	$	7,441	$	875,936

	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2014
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,690		1,494		1,791		632		55		6,662
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,690	$	1,494	$	1,791	$	650	$	55	$	6,680
Loans:
Individually evaluated for impairment	$	—	$	835	$	93	$	18	$	—	$	946
Collectively evaluated for impairment		239,225		245,517		213,667		76,552		8,025		782,986
Purchased credit-impaired loans		77		1,798		814		1,624		2		4,315
Total ending loans balance	$	239,302	$	248,150	$	214,574	$	78,194	$	8,027	$	788,247

Loans collectively evaluated for impairment reported at March 31, 2015 include certain loans acquired from MidSouth on July 1, 2014. The acquired loans were recorded at estimated fair value at date of acquisition, which included an estimated credit discount. On July 1, 2014, acquired non-PCI loans were recorded at an estimated fair value of $178,818, comprised of contractually unpaid principal totaling $183,832 net of estimated discounts totaling $5,014 which included both credit and interest rate discount components. At March 31, 2015, acquired non-PCI loans were recorded at an estimated fair value of $134,174. Management evaluated these loans for credit deterioration since acquisition and determined that no allowance for loan losses was necessary at March 31, 2015.

The following table presents information related to impaired loans by class of loans as of March 31, 2015 and December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
March 31, 2015
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		456		456		—
Commercial and industrial		93		93		—
Subtotal		2,971		1,384		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,989	$	1,402	$	18
December 31, 2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		93		93		—
Subtotal		2,515		928		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,533	$	946	$	18

The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
Average Recorded Investment	2015		2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	835	$	1,205
Residential real estate:
Closed-end 1-4 family		457		—
Commercial and industrial		83		—
Subtotal		1,375		1,205
With an allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	—	$	1,375
Residential real estate:
1-4 family		—		1,226
Commercial and industrial		19		66
Subtotal		19		2,667
Total	$	1,394	$	3,872

The impact on net interest income for these loans was not material to the Company’s results of operations for the three months ended March 31, 2015 and 2014.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2015 and December 31, 2014:

	Nonaccrual		Loans Past Due Over 90 Days
March 31, 2015
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end1-4 family		—		334
Commercial and industrial		18		—
Total	$	853	$	334
December 31, 2014
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end 1-4 family		—		316
Total	$	835	$	316

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
March 31, 2015
Construction and land development	$	682	$	—	$	—	$	682	$	281,838	$	76	$	282,596
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		254,111		1,750		256,696
Other		—		—		—		—		4,259		—		4,259
Residential real estate:
Closed-end 1-4 family		475		—		334		809		132,231		697		133,737
Other		1,292		—		—		1,292		89,146		107		90,545
Commercial and industrial		—		—		—		—		98,986		1,676		100,662
Consumer and other		12		14		—		26		7,415		—		7,441
	$	2,461	$	14	$	1,169	$	3,644	$	867,986	$	4,306	$	875,936

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
December 31, 2014
Construction and land development	$	354	$	—	$	—	$	354	$	238,871	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		240,140		1,798		242,773
Other		—		—		—		—		5,377		—		5,377
Residential real estate:
Closed-end 1-4 family		299		165		316		780		129,851		706		131,337
Other		52		—		—		52		83,077		108		83,237
Commercial and industrial		—		212		—		212		76,358		1,624		78,194
Consumer and other		—		—		—		—		8,025		2		8,027
	$	705	$	377	$	1,151	$	2,233	$	781,699	$	4,315	$	788,247

Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans as well as non-homogeneous residential real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table includes PCI loans, which are included in the “Substandard” column. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Total
March 31, 2015
Construction and land development	$	282,519	$	—	$	77	$	282,596
Commercial real estate:
Nonfarm, nonresidential		253,007		—		3,689		256,696
Other		4,259		—		—		4,259
Residential real estate:
Closed-end 1-4 family		131,803		—		1,934		133,737
Other		90,438		—		107		90,545
Commercial and industrial		98,874		—		1,788		100,662
Consumer and other		7,441		—		—		7,441
	$	868,341	$	—	$	7,595	$	875,936

	Pass		Special Mention		Substandard		Total
December 31, 2014
Construction and land development	$	239,225	$	—	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		239,584		—		3,189		242,773
Other		5,377		—		—		5,377
Residential real estate:
1-4 family		128,869		—		2,468		131,337
Other		83,129		—		108		83,237
Commercial and industrial		76,552		—		1,642		78,194
Consumer and other		8,025		—		2		8,027
	$	780,761	$	—	$	7,486	$	788,247

Purchased Credit-impaired (“PCI”) loans

Income is recognized on PCI loans pursuant to ASC Topic 310-30. A portion of the fair value discount has been recognized as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining non-accretable difference represents cash flows not expected to be collected.

The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans as of March 31, 2015 and December 31, 2014. Contractually required principal and interest payments have been adjusted for estimated prepayments.

	Mar 31, 2015			Dec 31, 2014
Contractually required principal and interest	$	6,135		$	6,532
Non-accretable difference		(989	)		(1,270	)
Cash flows expected to be collected		5,146			5,262
Accretable yield		(840	)		(947	)
Carrying value of acquired loans		4,306			4,315
Allowance for loan losses		—			—
Carrying value less allowance for loan losses	$	4,306		$	4,315

Management adjusted estimates of future expected losses, cash flows and renewal assumptions during the current quarter. These adjustments resulted in a decrease in expected cash flows and accretable yield, and a decrease in the non-accretable difference. The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans during the three month period ending March 31, 2015.

Activity during the three month period ending March 31, 2015	Dec 31, 2014			Effect of Acquisitions		Income Accretion		All other Adjustments			Mar 31, 2015
Contractually required principal and interest	$	6,532		$	—	$	—	$	(397	)	$	6,135
Non-accretable difference		(1,270	)		—		—		281			(989	)
Cash flows expected to be collected		5,262			—		—		(116	)		5,146
Accretable yield		(947	)		—		57		50			(840	)
Carry value of acquired loans	$	4,315		$	—	$	57	$	(66	)	$	4,306

Troubled Debt Restructurings

The Company’s loan portfolio contains no loans that have been modified in a troubled debt restructuring.

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Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 3—SECURITIES

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	46,333	$	233	$	(134	)	$	46,432
Mortgage-backed securities: residential		399,896		6,693		(719	)		405,870
Mortgage-backed securities: commercial		4,144		74		—			4,218
Total	$	450,373	$	7,000	$	(853	)	$	456,520

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	30,070	$	417	$	(314	)	$	30,173
U.S. Treasury securities		20,000		—		—			20,000
Mortgage-backed securities: residential		335,677		4,593		(1,203	)		339,067
Mortgage-backed securities: commercial		6,432		33		—			6,465
Total	$	392,179	$	5,043	$	(1,517	)	$	395,705

The amortized cost and fair value of the held to maturity securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrecognized gains and losses were as follows:

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	4,763	$	128	$	(45	)	$	4,846
Mortgage backed securities: residential		36,970		762		(417	)		37,315
State and political subdivisions		8,917		389		(6	)		9,300
Total	$	50,650	$	1,279	$	(468	)	$	51,461

	Gross Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	5,550	$	162	$	(87	)	$	5,625
Mortgage backed securities: residential		38,587		555		(562	)		38,580
State and political subdivisions		9,195		351		(10	)		9,536
Total	$	53,332	$	1,068	$	(659	)	$	53,741

Sales and calls of available for sale securities were as follows:

	Three Months Ended March 31,
	2015			2014
Proceeds	$	11,289		$	5,451
Gross gains		390			24
Gross losses		(14	)		(16	)

Calls of held to maturity securities were as follows:

	Three Months Ended March 31,
	2015		2014
Proceeds	$	800	$	—
Gross gains		39		—
Gross losses		—		—

The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	March 31, 2015
	Amortized Cost		Fair Value
Available for sale
Three months or less	$	30,000	$	30,000
Over three months through one year		—		—
Over one year through five years		—		—
Over five years through ten years		7,788		8,021
Over ten years		8,545		8,411
Mortgage-backed securities: residential		399,896		405,870
Mortgage-backed securities: commercial		4,144		4,218
Total	$	450,373	$	456,520
Held to maturity
Three months or less	$	—	$	—
Over three months through one year		—		—
Over one year through five years		1,385		1,448
Over five years through ten years		1,106		1,141
Over ten years		11,189		11,557
Mortgage-backed securities: residential		36,970		37,315
Total	$	50,650	$	51,461

Securities pledged at March 31, 2015 and December 31, 2014 had a carrying amount of $488,573 and $366,764 and were pledged to secure public deposits and repurchase agreements.

At March 31, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. government-sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.

The following table summarizes the securities with unrealized and unrecognized losses at March 31, 2015 and December 31, 2014, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2015
Available for sale
U.S. government sponsored entities and agencies	$	18,966	$	(34	)	$	4,445	$	(100	)	$	23,411	$	(134	)
Mortgage-backed securities: residential		36,496		(287	)		32,813		(432	)		69,309		(719	)
Total available for sale	$	55,462	$	(321	)	$	37,258	$	(532	)	$	92,720	$	(853	)

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	1,978	$	(21	)	$	976	$	(24	)	$	2,954	$	(45	)
Mortgage-backed securities: residential		2,452		(27	)		9,701		(390	)		12,153		(417	)
State and political subdivisions		1,101		(6	)		—		—			1,101		(6	)
Total held to maturity	$	5,531	$	(54	)	$	10,677	$	(414	)	$	16,208	$	(468	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2014
Available for sale
U.S. government sponsored entities and agencies	$	9,999	$	(1	)	$	8,232	$	(313	)	$	18,231	$	(314	)
Mortgage-backed securities: residential		59,078		(323	)		41,939		(880	)		101,017		(1,203	)
Total available for sale	$	69,077	$	(324	)	$	50,171	$	(1,193	)	$	119,248	$	(1,517	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	—	$	—		$	2,913	$	(87	)	$	2,913	$	(87	)
Mortgage-backed securities: residential		5,246		(25	)		13,001		(537	)		18,247		(562	)
State and political subdivisions		507		(1	)		592		(9	)		1,099		(10	)
Total held to maturity	$	5,753	$	(26	)	$	16,506	$	(633	)	$	22,259	$	(659	)

Unrealized losses on debt securities have not been recognized into income because the issuers bonds are of high credit quality (rated AA or higher), management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The fair value is expected to recover as the bonds approach maturity.

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Share-Based Payments (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Fair Value Assumptions of Stock Options

The fair value of options granted was determined using the following weighted-average assumptions as of grant date.

	March 31, 2015			March 31, 2014
Risk-free interest rate		1.93	%		2.48	%
Expected term		7.5 years			7.5 years
Expected stock price volatility		25.00	%		11.04	%
Dividend yield		0.22	%		0.43	%

Summary of Company's Stock Option Activities

A summary of the activity in the stock option plans for the three months ended March 31, 2015 follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at beginning of year		1,210,660		$	11.32		6.53	$	7,244
Granted		1,000			21.75
Exercised		(74,634	)		11.55
Forfeited, expired, or cancelled		(2,000	)		18.45
Outstanding at period end		1,135,026		$	11.30		6.23	$	11,013
Vested or expected to vest		1,176,064		$	11.30		6.23	$	10,462
Exercisable at period end		807,599		$	10.52		5.19	$	7,513

Summary of Activity for Nonvested Restricted Share Awards

A summary of activity for non-vested restricted share awards for the three months ended March 31, 2015 is as follows:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		102,710		$	13.93
Granted		—			—
Vested		—			—
Forfeited		(1,202	)		16.14
Non-vested at March 31, 2015		101,508		$	13.91

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Summary of Purchase Price Calculation

purchase price was $41,094. The following table summarizes the purchase price calculation:

	Number of MidSouth shares outstanding		Per share exchange ratio		Number of FFN shares—as exchanged
Common Shares		3,873		0.425926		1,650
Convertible Voting Preferred Stock, 2009-A		1,018		0.851852		867
Convertible Voting Preferred Stock, 2011-A		242		0.851852		206
Series 2009-A Stock Warrants (strike price $3.25)		193		0.185185		36
Series 2011-A Stock Warrants (strike price $3.68)		44		0.153333		7
						2,766
Multiplied by FFN common stock value at acquisition date					$	14.50
Fair value of FFN common stock issued (“Stock Consideration”)					$	40,110
Cash consideration paid for fractional shares						18
Cash consideration paid for dissenting shares						100
Fair value of MidSouth stock options converted to FFN stock options						866
Total acquisition consideration					$	41,094

Summary of Preliminary Estimates of Fair Value of the Assets Purchased , Including Goodwill, and Liabilities Assumed

that were acquired. The table below summarizes the fair value of the assets purchased, including goodwill, and liabilities assumed as of the July 1, 2014 purchase date.

In Thousands	July 1, 2014 (as initially reported)		Measurement Period Adjustments			July 1, 2014 (as adjusted)
Assets:
Cash and due from banks	$	1,369	$	—		$	1,369
Interest-bearing accounts at other financial institutions		10,946					10,946
Securities, available-for-sale		57,431					57,431
Loans held for sale		7,071					7,071
Loans		184,345					184,345
Certificates of deposit at other financial institutions		250					250
Restricted equity securities		1,572					1,572
Bank premises and equipment, net		6,650					6,650
Bank-owned life insurance		3,144					3,144
Accrued interest receivable		728					728
Foreclosed assets		800		(260	)		540
Core deposit intangible		3,060					3,060
Deferred tax asset		6,753		100			6,853
Goodwill		8,964		160			9,124
Other assets		747					747
Total assets acquired	$	293,830	$	—		$	293,830
Liabilities:
Deposits	$	244,415	$	—		$	244,415
Short-term borrowings		6,893					6,893
Other liabilities		1,428					1,428
Total liabilities assumed	$	252,736	$	—		$	252,736

Contractually Required Principal and Interest Cash Payments, Management's Estimates of Expected Total Cash Payments

accounted for pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of July 1, 2014 for purchased credit-impaired (“PCI”) loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.

Contractually required principal and interest	$	8,510
Non-accretable difference		(1,745	)
Cash flows expected to be collected		6,765
Accretable yield		(1,238	)
Total purchased credit-impaired loans acquired	$	5,527

Summary of Fair Value of Acquired Loans and Unpaid Principal Balance

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance at acquisition date.

	Unpaid Principal Balance		Fair Value
Loans:
Residential real estate	$	39,425	$	38,618
Commercial real estate		82,465		80,566
Construction and land development		43,766		42,454
Commercial loans		16,311		15,352
Consumer and other loans		1,865		1,828
Purchased credit-impaired		7,860		5,527
Total earning assets	$	191,692	$	184,345

Pro-Forma Financial Information and Actual Results of Acquisition

pro-forma information for the three months ending March 31, 2015.

	Three months ended March 31,
	2014
Net interest income	$	10,405
Net income available to common shareholders		1,814
Earnings per share—basic	$	0.24
Earnings per share—diluted	$	0.23

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Regulatory Capital Matters

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Regulatory Capital Matters

NOTE 7—REGULATORY CAPITAL MATTERS

In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and Bank. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Framework for More Resilient Banks and Banking Systems” (“Basel III”) and changes required by the Dodd-Frank Act.

Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms became effective to the Company and Bank on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes capital for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital.

In addition to the new minimum capital level requirements, the rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common Tier 1 risk-based capital ratio of 7.0%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The capital conservation buffer is to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company has opted out of this requirement.

Management believes, as of March 31, 2015, that the Company and Bank met all capital adequacy requirements to which they are subject. The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (in thousands):

	Actual					Minimum Capital Requirement					Excess Amount
	Amount		Ratio			Amount		Ratio
March 31, 2015
Company common equity Tier 1 capital to risk-weighted assets	$	149,119		14.01	%	$	47,899		4.50	%	$	101,220
Company total capital to risk-weighted assets	$	166,427		15.64	%	$	85,154		8.00	%	$	81,273
Company Tier 1 capital to risk-weighted assets	$	159,119		14.95	%	$	63,866		6.00	%	$	95,253
Company Tier 1 capital to average assets	$	159,119		11.41	%	$	55,769		4.00	%	$	103,350
Bank common equity Tier 1 capital to risk-weighted assets	$	136,865		12.86	%	$	47,894		4.50	%	$	88,971
Bank total capital to risk-weighted assets	$	153,173		14.39	%	$	85,145		8.00	%	$	68,028
Bank Tier 1 capital to risk-weighted assets	$	145,865		13.71	%	$	63,859		6.00	%	$	82,006
Bank Tier 1 capital to average assets	$	145,865		10.48	%	$	55,697		4.00	%	$	90,168
December 31, 2014
Company total capital to risk-weighted assets	$	114,475		12.30	%	$	74,464		8.00	%	$	40,011
Company Tier 1 capital to risk-weighted assets	$	107,795		11.58	%	$	37,232		4.00	%	$	70,563
Company Tier 1 capital to average assets	$	107,795		8.57	%	$	50,291		4.00	%	$	57,504
Bank total capital to risk-weighted assets	$	113,830		12.23	%	$	74,447		8.00	%	$	39,383
Bank Tier 1 capital to risk-weighted assets	$	107,150		11.51	%	$	37,223		4.00	%	$	69,927
Tier 1 capital to average assets	$	107,150		8.52	%	$	50,279		4.00	%	$	56,871

Dividend Restrictions: The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. During 2015 the Bank could declare, without prior approval, dividends of approximately $13,836 plus any 2015 net profits retained to the date of declaration.

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Regulatory Capital Matters - Actual and Required Capital Amounts and Ratios (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Bank common equity Tier 1 capital to risk weighted assets, Actual Amount	$ 136,865
Total capital to risk weighted assets	153,173	113,830
Tier 1 capital to risk weighted assets, Actual Amount	145,865	107,150
Tier 1 capital to average assets, Actual Amount	145,865	107,150
Bank common equity Tier 1 capital to risk weighted assets	12.86%
Total capital to risk weighted assets, Actual Ratio	14.52%	12.23%
Tier 1 capital to risk weighted assets, Actual Ratio	13.71%	11.51%
Tier 1 capital to average assets, Actual Ratio	10.48%	8.52%
Bank common equity Tier 1 capital to risk weighted assets	47,894
Total capital to risk weighted assets, Minimum capital requirement amount	85,145	74,447
Tier 1 capital to risk weighted assets, Minimum capital requirement amount	63,859	37,223
Tier 1 capital to average assets, Minimum capital requirement amount	55,697	50,279
Bank common equity Tier 1 capital to risk weighted assets	4.50%
Total capital to risk weighted assets, Minimum capital requirement ratio	8.00%	8.00%
Tier 1 capital to risk weighted assets, Minimum capital requirement ratio	6.00%	4.00%
Tier 1 capital to average assets, Minimum capital requirement ratio	4.00%	4.00%
Bank common equity Tier 1 capital to risk weighted assets	88,971
Bank total capital to risk-weighted assets, Excess amount	68,028	39,383
Bank Tier 1 capital to risk-weighted assets, Excess amount	82,006	69,927
Bank Tier 1 capital to average assets, Excess amount	90,168	56,871
Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Bank common equity Tier 1 capital to risk weighted assets, Actual Amount	149,119
Total capital to risk weighted assets	166,427	114,475
Tier 1 capital to risk weighted assets, Actual Amount	159,119	107,795
Tier 1 capital to average assets, Actual Amount	159,119	107,795
Bank common equity Tier 1 capital to risk weighted assets	14.01%
Total capital to risk weighted assets, Actual Ratio	15.64%	12.30%
Tier 1 capital to risk weighted assets, Actual Ratio	14.95%	11.58%
Tier 1 capital to average assets, Actual Ratio	11.41%	8.57%
Bank common equity Tier 1 capital to risk weighted assets	47,899
Total capital to risk weighted assets, Minimum capital requirement amount	85,154	74,464
Tier 1 capital to risk weighted assets, Minimum capital requirement amount	63,866	37,232
Tier 1 capital to average assets, Minimum capital requirement amount	55,769	50,291
Bank common equity Tier 1 capital to risk weighted assets	4.50%
Total capital to risk weighted assets, Minimum capital requirement ratio	8.00%	8.00%
Tier 1 capital to risk weighted assets, Minimum capital requirement ratio	6.00%	4.00%
Tier 1 capital to average assets, Minimum capital requirement ratio	4.00%	4.00%
Bank common equity Tier 1 capital to risk weighted assets	101,220
Bank total capital to risk-weighted assets, Excess amount	81,273	40,011
Bank Tier 1 capital to risk-weighted assets, Excess amount	95,253	70,563
Bank Tier 1 capital to average assets, Excess amount	$ 103,350	$ 57,504

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Loan Servicing

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Loan Servicing

NOTE 5—LOAN SERVICING

Loans serviced for others are not reported as assets. The principal balances of these loans at March 31, 2015 and December 31, 2014 are as follows:

	March 31, 2015		December 31, 2014
Loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	425,714	$	414,222
Other		3,753		3,986

The components of net loan servicing fees for the three months ended March 31, 2015 and 2014 were as follows:

	Three Months Ended March 31,
	2015			2014
Loan servicing fees, net:
Loan servicing fees	$	266		$	227
Amortization of loan servicing fees		(223	)		(215	)
Change in impairment		—			—
Total	$	43		$	12

The fair value of servicing rights was estimated by management to be approximately $3,999 at March 31, 2015. Fair value for March 31, 2015 was determined using a weighted average discount rate of 10.5% and a weighted average prepayment speed of 11.7%. At December 31, 2014, the fair value of servicing rights was estimated by management to be approximately $4,180. Fair value for December 31, 2014 was determined using weighted average discount rate of 10.5% and a weighted average prepayment speed of 10.8%.

The weighted average amortization period is 5.86 years. Estimated amortization expense for each of the next three years is:

2015	$	610
2016		516
2017		516

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Share-Based Payments

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

NOTE 6—SHARE-BASED PAYMENTS

In connection with the Company’s 2010 private offering, 32,425 warrants were issued to shareholders, one warrant for every twenty shares of common stock purchased. Each warrant allows the shareholders to purchase an additional share of common stock at $12.00 per share. The warrants were issued with an effective date of March 30, 2010 and will be exercisable in whole or in part up to seven years following the date of issuance. The warrants are detachable from the common stock. There were 200 warrants exercised during the three months ended March 31, 2015, for which the Company received cash proceeds of $2. The exercised warrants had an intrinsic value of $2 at the date of exercise. No warrants were exercised during the three months ended March 31, 2014. At March 31, 2015, there were 31,677 outstanding warrants associated with the 2010 offering.

In the event the common stock of the Company is to be registered under the Securities Act or is traded on a national securities exchange at $15.00 or more for forty-five (45) consecutive days, the Company may redeem the 2010 warrants at any time thereafter with not less than thirty (30) days’ written notice to the holder of such 2010 warrant, in whole or in part, at a redemption price of $1.00 per warrant; provided, however, that the holder of the 2010 warrant may exercise the 2010 warrant, in whole or in part, during such thirty (30) day period.

Stock Option Plan: The Company’s 2007 Stock Option Plan (“stock option plan” or the “Plan”), which was shareholder-approved, permitted the grant of share options to its employees, organizers and directors for up to 551,250 shares of common stock. The Plan was amended during April 2010 to increase the number of shares available for issuance to 1,000,000. In April 2013, the Plan was amended to offer additional forms of equity compensation, to change the Plan’s name to the Franklin Financial Network, Inc. 2007 Omnibus Equity Incentive Plan, and to increase the number of authorized shares to 1,500,000. The Company believes that such awards better align the interests of its employees with those of its shareholders. Shareholders approved amendments to the Plan to increase the number of authorized shares to 2,000,000 in June 2014 and to 4,000,000 in February 2015. At March 31, 2015, there were 2,617,288 authorized shares available for issuance.

Employee, organizer and director awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have a vesting period of 3 to 5 years and have a 10-year contractual term. The Company assigns discretion to its Board of Directors to make grants either as qualified incentive stock options or as non-qualified stock options. All employee grants are intended to be treated as qualified incentive stock options, if allowable. All other grants are expected to be treated as non-qualified.

During 2014, the Company granted 181,680 options, exercised 23,809 options, and had 31,135 options that were either forfeited, cancelled or expired. In addition, on July 1, 2014, 322,300 MidSouth common stock options were converted into 137,280 options to purchase shares of FFN common stock with an exercise price of $8.57 per option pursuant to the terms of the merger agreement (see Note 2). Using the Black-Scholes option valuation model, the grant date fair value was estimated to be $6.31 per converted option based on the $14.50 fair value per share of FFN common stock at July 1, 2014. No post compensation expense was required related to the converted options.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected stock price volatility is based on historical volatilities of a peer group. The Company uses historical data to estimate option exercise and post-vesting termination behavior.

The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

The fair value of options granted was determined using the following weighted-average assumptions as of grant date.

	March 31, 2015			March 31, 2014
Risk-free interest rate		1.93	%		2.48	%
Expected term		7.5 years			7.5 years
Expected stock price volatility		25.00	%		11.04	%
Dividend yield		0.22	%		0.43	%

The weighted average fair value of options granted for the three months ended March 31, 2015 and 2014 were $6.76 and $2.58, respectively.

A summary of the activity in the stock option plans for the three months ended March 31, 2015 follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at beginning of year		1,210,660		$	11.32		6.53	$	7,244
Granted		1,000			21.75
Exercised		(74,634	)		11.55
Forfeited, expired, or cancelled		(2,000	)		18.45
Outstanding at period end		1,135,026		$	11.30		6.23	$	11,013
Vested or expected to vest		1,176,064		$	11.30		6.23	$	10,462
Exercisable at period end		807,599		$	10.52		5.19	$	7,513

The Company received cash proceeds of $780 for the options exercised during the three months ended March 31, 2015. The exercised options had an aggregate intrinsic value of $609 at the date of exercise.

As of March 31, 2015, there was $611 of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.4 years.

Restricted Share Award Plan: Additionally, the Company’s 2007 Omnibus Equity Incentive Plan provides for the granting of restricted share awards and other performance related incentives. During 2014, the Company awarded 87,374 restricted common shares to employees of the Company. When the restricted shares are awarded, a participant receives voting and dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. These awards have a vesting period of three to five years and vest in equal annual installments on the anniversary date of the grant.

A summary of activity for non-vested restricted share awards for the three months ended March 31, 2015 is as follows:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2014		102,710		$	13.93
Granted		—			—
Vested		—			—
Forfeited		(1,202	)		16.14
Non-vested at March 31, 2015		101,508		$	13.91

Compensation expense associated with the restricted share awards is recognized on a straight-line basis over the time period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. As of March 31, 2015, there was $1,130 of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3 years.

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Fair Value

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value

NOTE 8—FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability:

Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2).

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for impaired loans are generally obtained annually but may be obtained more frequently based on changing circumstances as part of the aforementioned quarterly evaluation.

Foreclosed Assets: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Foreclosed assets are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Loans Held For Sale: During 2014 the Company elected the fair value option for loans held for sale to align with other accounting policies related to mortgage banking, such as mortgage banking derivatives. These loans are typically sold to an investor following loan origination and the fair value of such accounts are readily available based on direct quotes from investors or similar transactions experienced in the secondary loan market. Fair value adjustments, as well as realized gains and losses are recorded in current earnings. Fair value is determined by market prices for similar transactions adjusted for specific attributes of that loan.

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

	Fair Value Measurements at March 31, 2015 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	46,432	$	—
Mortgage-backed securities-residential		—		405,870		—
Mortgage-backed securities-commercial		—		4,218		—
Total securities available for sale	$	—	$	456,520	$	—
Loans held for sale	$	—	$	22,462	$	—
Mortgage banking derivatives	$	—	$	552	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	224	$	—

	Fair Value Measurements at December 31, 2014 Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Securities available for sale
U.S. government sponsored entities and agencies	$	—	$	30,173	$	—
U.S. Treasury Bills		20,000		—		—
Mortgage-backed securities-residential		—		339,067		—
Mortgage-backed securities-commercial		—		6,465		—
State and political subdivisions		—		—		—
Total securities available for sale	$	20,000	$	375,705	$	—
Loans held for sale	$	—	$	18,462	$	—
Mortgage banking derivatives	$	—	$	285	$	—
Financial Liabilities
Mortgage banking derivatives	$	—	$	132	$	—

As of March 31, 2015, the unpaid principal balance of loans held for sale was $21,875 resulting in an unrealized gain of $587 included in gains on sale of loans. For the three months ended March 31, 2015 and 2014, the change in fair value related to loans held for sale, which is included in gain on sale of loans, was $23 and $209, respectively. None of these loans are 90 days or more past due or on nonaccrual as of March 31, 2015.

There were no transfers between level 1 and 2 during 2015 and 2014.

Assets measured at fair value on a non-recurring basis are summarized below:

There were no collateral dependent impaired loans carried at fair value as of March 31, 2015 or December 31, 2014. For the three months ended March 31, 2015 and 2014, $0 and $66 in additional provision for loan losses was recorded related to impaired loans recorded at fair value of collateral.

Foreclosed assets measured at fair value less costs to sell, had a net carrying amount of $453 and $715 as of March 31, 2015 and December 31, 2014, respectively. There were no properties at March 31, 2015 or 2014 that had required write-downs to fair value resulting in no write downs for the three months ending March 31, 2015 and 2014, respectively.

The carrying amounts and estimated fair values of financial instruments, at March 31, 2015 and December 31, 2014 are as follows:

			Fair Value Measurements at March 31, 2015 Using:
	Carrying Amount
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	48,580	$	48,580	$	—	$	—	$	48,580
Securities available for sale		456,520		—		456,520		—		456,520
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		50,650		—		51,461		—		51,461
Loans held for sale		22,462		—		22,462		—		22,462
Net loans		867,231		—		—		868,887		868,887
Restricted equity securities		5,731		n/a		n/a		n/a		n/a
Servicing rights, net		3,113		—		3,999		—		3,999
Accrued interest receivable		3,984		10		1,502		2,472		3,984
Financial liabilities
Deposits	$	1,271,602	$	902,227	$	372,375	$	—	$	1,274,602
Federal funds purchased and repurchase agreements		35,718		—		35,718		—		35,718
Federal Home Loan Bank advances		19,000		—		19,166		—		19,166
Accrued interest payable		552		36		516		—		552

	Carrying Amount		Fair Value Measurements at December 31, 2014 Using:
			Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	49,347	$	49,347	$	—	$	—	$	49,347
Securities available for sale		395,705		20,000		375,705		—		395,705
Certificates of deposit held at other financial institutions		250		—		250		—		250
Securities held to maturity		53,332		—		53,741		—		53,741
Loans held for sale		18,462		—		18,462		—		18,462
Net loans		780,508		—		—		782,745		782,745
Restricted equity securities		5,349		n/a		n/a		n/a		n/a
Servicing rights, net		3,053		—		4,180		—		4,180
Accrued interest receivable		3,545		—		1,368		2,177		3,545
Financial liabilities
Deposits	$	1,172,233	$	848,158	$	326,644	$	—	$	1,174,802
Federal funds purchased and repurchase agreements		39,078		—		39,078		—		39,078
Federal Home Loan Bank advances		19,000		—		19,146		—		19,146
Accrued interest payable		421		33		388		—		421

The methods and assumptions not previously described used to estimate fair value are described as follows:

(a) Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1.

(b) Loans: Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

(c) Restricted Equity Securities: It is not practical to determine the fair value of Federal Home Loan Bank or Federal Reserve Bank stock due to restrictions placed on its transferability.

(d) Mortgage Servicing Rights: Fair value of mortgage servicing rights is based on valuation models that calculate the present value of estimated net cash flows based on industry market data. The valuation model incorporates assumptions that market participants would use in estimating future net cash flows resulting in a Level 2 classification.

(e) Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(f) Federal Funds Purchased and Repurchase Agreements: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification.

(g) Federal Home Loan Bank Advances: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

(h) Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1 or Level 2 classification based on the asset/liability that they are associated with.

(i) Off-balance Sheet Instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

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Fair Value - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, Carrying Amount	$ 48,580	$ 49,347	$ 30,870	$ 18,217
Securities available for sale	456,520	395,705
Certificates of deposit held at other financial institutions	250	250
Securities held to maturity, Carrying Amount	50,650	53,332
Securities held to maturity, Fair Value	51,461	53,741
Loans held for sale, Fair Value	22,462	18,462
Net loans, Carrying Amount	867,231	780,508
Servicing rights, net, Carrying Amount	3,113	3,053
Servicing rights, net, Fair Value	3,999	4,180
Accrued interest receivable	3,984	3,545
Deposits, Carrying Amount	1,271,602	1,172,233
Federal funds purchased and repurchase agreements, Carrying Amount	35,718	39,078
Federal Home Loan Bank advances, Carrying Amount	19,000	19,000
Accrued interest payable	552	421
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents , Fair Value	48,580	49,347
Securities available for sale	456,520	395,705
Certificates of deposit held at other financial institutions, Fair Value	250	250
Securities held to maturity, Fair Value	51,461	53,741
Loans held for sale, Fair Value	22,462	18,462
Net loans, Fair Value	868,887	782,745
Restricted equity securities, Fair Value	0	0
Servicing rights, net, Fair Value	3,999	4,180
Accrued interest receivable	3,984	3,545
Deposits, Fair Value	1,274,602	1,174,802
Federal funds purchased and repurchase agreements, Fair Value	35,718	39,078
Federal Home Loan Bank advances, Fair Value	19,166	19,146
Accrued interest payable	552	421
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents , Fair Value	48,580	49,347
Securities available for sale		20,000
Restricted equity securities, Fair Value	0	0
Accrued interest receivable	10
Deposits, Fair Value	902,227	848,158
Accrued interest payable	36	33
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	456,520	375,705
Certificates of deposit held at other financial institutions, Fair Value	250	250
Securities held to maturity, Fair Value	51,461	53,741
Loans held for sale, Fair Value	22,462	18,462
Restricted equity securities, Fair Value	0	0
Servicing rights, net, Fair Value	3,113	4,180
Accrued interest receivable	1,502	1,368
Deposits, Fair Value	372,375	326,644
Federal funds purchased and repurchase agreements, Fair Value	35,718	39,078
Federal Home Loan Bank advances, Fair Value	19,166	19,146
Accrued interest payable	516	388
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net loans, Fair Value	868,887	782,745
Restricted equity securities, Fair Value	0	0
Accrued interest receivable	2,472	2,177
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, Carrying Amount	48,580	49,347
Securities available for sale	456,520	395,705
Certificates of deposit held at other financial institutions	250	250
Securities held to maturity, Carrying Amount	50,650	53,332
Loans held for sale, Carrying Amount	22,462	18,462
Net loans, Carrying Amount	867,231	780,508
Restricted equity securities, Carrying Amount	5,731	5,349
Servicing rights, net, Carrying Amount	3,113	3,053
Accrued interest receivable	3,984	3,545
Deposits, Carrying Amount	1,271,602	1,172,233
Federal funds purchased and repurchase agreements, Carrying Amount	35,718	39,078
Federal Home Loan Bank advances, Carrying Amount	19,000	19,000
Accrued interest payable	$ 552	$ 421

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Earnings Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Stock options to purchase shares of the Company's common stock	3,000	125,619

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Fair Value - Additional information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Fair Value Measurements Of Financial Instruments [Line Items]
Unpaid principal balance of loans held for sale	$ 2,989,000		$ 2,533,000
Change in fair value related to loans held for sale	1,647,000	784,000
Loans held for sale carried at fair value	22,462,000		18,462,000
Carrying amount of impaired loans with specific allocations	1,402,000		946,000
Additional provision for loan losses	625,000	385,000
Foreclosed assets	453,000		715,000
Write-down value during period	0	0
Fair Value [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Loans held for sale carried at fair value	22,462,000		18,462,000
Carrying amount of impaired loans with specific allocations	0		0
Changes Measurement [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Additional provision for loan losses	0	66,000
Loans Held For Sale [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Unpaid principal balance of loans held for sale	21,875,000
Change in fair value related to loans held for sale	587,000
Loans held for sale carried at fair value	$ 23,000	$ 209,000
Maximum [Member] | Loans Held For Sale [Member]
Fair Value Measurements Of Financial Instruments [Line Items]
Term of loan	90 days

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Acquisitions - Pro-Forma Financial Information and Actual Results of Acquisition (Detail) (MidSouth Bank [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
MidSouth Bank [Member]
Business Acquisition [Line Items]
Net interest income	$ 10,405
Net income available to common shareholders	$ 1,814
Earnings per share-basic	$ 0.24
Earnings per share-diluted	$ 0.23

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Loans - Summary of Changes in Total Contractually Required Principal and Interest Cash Payments, Managements Estimate of Expected Totral Cash Payments and Carrying Value of Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Contractually required principal and interest	$ 6,135	$ 6,532
Non-accretable difference	(989)	(1,270)
Cash flows expected to be collected	5,146	5,262
Accretable yield	(840)	(947)
Carry value of acquired loans	4,306	4,315
Contractually required principal and interest, Effect of Acquisitions	0
Non-accretable difference, Effect of Acquisitions	0
Cash flows expected to be collected, Effect of Acquisitions	0
Accretable yield, Effect of Acquisitions	0
Carry value of acquired loans, Effect of Acquisitions	0
Contractually required principal and interest, Income Accretion	0
Non-accretable difference, Income Accretion	0
Cash flows expected to be collected, Income Accretion	0
Accretable yield, Income Accretion	57
Carry value of acquired loans, Income Accretion	57
Contractually required principal and interest, All other Adjustments	(397)
Non-accretable difference, All other Adjustments	281
Cash flows expected to be collected, All other Adjustments	(116)
Accretable yield, All other Adjustments	50
Carry value of acquired loans, All other Adjustments	$ (66)

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Loans (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Summary of Loans

Loans at March 31, 2015 and December 31, 2014 were as follows:

	March 31, 2015			December 31, 2014
Loans that are not PCI loans
Construction and land development	$	282,520		$	239,225
Commercial real estate:
Nonfarm, nonresidential		254,946			240,975
Other		4,259			5,377
Residential real estate:
Closed-end 1-4 family		133,040			130,631
Other		90,438			83,129
Commercial and industrial		98,986			76,570
Consumer and other		7,441			8,025
Loans before net deferred loan fees		871,630			783,932
Deferred loan fees, net		(1,397	)		(1,059	)
Total loans that are not PCI loans		870,233			782,873
PCI loans
Construction and land development	$	76		$	77
Commercial real estate:
Nonfarm, nonresidential		1,750			1,798
Other		—			—
Residential real estate:
Closed-end 1-4 family		697			706
Other		107			108
Commercial and industrial		1,676			1,624
Consumer and other		—			2
Total PCI loans		4,306			4,315
Allowance for loan losses		(7,308	)		(6,680	)
Total loans, net of allowance for loan losses	$	867,231		$	780,508

Activity in Allowance for Loan Losses by Portfolio Segment

The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2015 and 2014:

	Construction and Land Development			Commercial Real Estate		Residential Real Estate			Commercial and Industrial		Consumer and Other			Total
Three Months Ending March 31, 2015
Allowance for loan losses:
Beginning balance	$	2,690		$	1,494	$	1,791		$	650	$	55		$	6,680
Provision for loan losses		(141	)		630		(67	)		200		3			625
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		3			—		—			3
Total ending allowance balance	$	2,549		$	2,124	$	1,727		$	850	$	58		$	7,308
Three Months Ending March 31, 2014
Allowance for loan losses:
Beginning balance	$	1,497		$	1,566	$	1,402		$	337	$	98		$	4,900
Provision for loan losses		49			129		115			127		(35	)		385
Loans charged-off		—			—		—			—		—			—
Recoveries		—			—		19			—		—			19
Total ending allowance balance	$	1,546		$	1,695	$	1,536		$	464	$	63		$	5,304

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2015 and December 31, 2014. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality.

	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
March 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,549		2,124		1,727		832		58		7,290
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,549	$	2,124	$	1,727	$	850	$	58	$	7,308
Loans:
Individually evaluated for impairment	$	—	$	835	$	456	$	111	$	—	$	1,402
Collectively evaluated for impairment		282,520		258,370		223,022		98,875		7,441		870,228
Purchased credit-impaired loans		76		1,750		804		1,676		—		4,306
Total ending loans balance	$	282,596	$	260,955	$	224,282	$	100,662	$	7,441	$	875,936

	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2014
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	18	$	—	$	18
Collectively evaluated for impairment		2,690		1,494		1,791		632		55		6,662
Purchased credit-impaired loans		—		—		—		—		—		—
Total ending allowance balance	$	2,690	$	1,494	$	1,791	$	650	$	55	$	6,680
Loans:
Individually evaluated for impairment	$	—	$	835	$	93	$	18	$	—	$	946
Collectively evaluated for impairment		239,225		245,517		213,667		76,552		8,025		782,986
Purchased credit-impaired loans		77		1,798		814		1,624		2		4,315
Total ending loans balance	$	239,302	$	248,150	$	214,574	$	78,194	$	8,027	$	788,247

Summary of Impaired Loans by Class of Loans

The following table presents information related to impaired loans by class of loans as of March 31, 2015 and December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
March 31, 2015
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		456		456		—
Commercial and industrial		93		93		—
Subtotal		2,971		1,384		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,989	$	1,402	$	18
December 31, 2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	2,422	$	835	$	—
Residential real estate:
Closed-end 1-4 family		93		93		—
Subtotal		2,515		928		—
With an allowance recorded:
Commercial and industrial		18		18		18
Subtotal		18		18		18
Total	$	2,533	$	946	$	18

The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
Average Recorded Investment	2015		2014
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	835	$	1,205
Residential real estate:
Closed-end 1-4 family		457		—
Commercial and industrial		83		—
Subtotal		1,375		1,205
With an allowance recorded:
Commercial real estate:
Nonfarm, nonresidential	$	—	$	1,375
Residential real estate:
1-4 family		—		1,226
Commercial and industrial		19		66
Subtotal		19		2,667
Total	$	1,394	$	3,872

Schedule of Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2015 and December 31, 2014:

	Nonaccrual		Loans Past Due Over 90 Days
March 31, 2015
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end1-4 family		—		334
Commercial and industrial		18		—
Total	$	853	$	334
December 31, 2014
Commercial real estate:
Nonfarm, nonresidential	$	835	$	—
Residential real estate:
Closed-end 1-4 family		—		316
Total	$	835	$	316

Schedule of Aging of Recorded Investment in Past Due Loans by Class of Loans

The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
March 31, 2015
Construction and land development	$	682	$	—	$	—	$	682	$	281,838	$	76	$	282,596
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		254,111		1,750		256,696
Other		—		—		—		—		4,259		—		4,259
Residential real estate:
Closed-end 1-4 family		475		—		334		809		132,231		697		133,737
Other		1,292		—		—		1,292		89,146		107		90,545
Commercial and industrial		—		—		—		—		98,986		1,676		100,662
Consumer and other		12		14		—		26		7,415		—		7,441
	$	2,461	$	14	$	1,169	$	3,644	$	867,986	$	4,306	$	875,936

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		PCI Loans		Total
December 31, 2014
Construction and land development	$	354	$	—	$	—	$	354	$	238,871	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		—		—		835		835		240,140		1,798		242,773
Other		—		—		—		—		5,377		—		5,377
Residential real estate:
Closed-end 1-4 family		299		165		316		780		129,851		706		131,337
Other		52		—		—		52		83,077		108		83,237
Commercial and industrial		—		212		—		212		76,358		1,624		78,194
Consumer and other		—		—		—		—		8,025		2		8,027
	$	705	$	377	$	1,151	$	2,233	$	781,699	$	4,315	$	788,247

Summary of Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of March 31, 2015 and December 31, 2014:

	Pass		Special Mention		Substandard		Total
March 31, 2015
Construction and land development	$	282,519	$	—	$	77	$	282,596
Commercial real estate:
Nonfarm, nonresidential		253,007		—		3,689		256,696
Other		4,259		—		—		4,259
Residential real estate:
Closed-end 1-4 family		131,803		—		1,934		133,737
Other		90,438		—		107		90,545
Commercial and industrial		98,874		—		1,788		100,662
Consumer and other		7,441		—		—		7,441
	$	868,341	$	—	$	7,595	$	875,936

	Pass		Special Mention		Substandard		Total
December 31, 2014
Construction and land development	$	239,225	$	—	$	77	$	239,302
Commercial real estate:
Nonfarm, nonresidential		239,584		—		3,189		242,773
Other		5,377		—		—		5,377
Residential real estate:
1-4 family		128,869		—		2,468		131,337
Other		83,129		—		108		83,237
Commercial and industrial		76,552		—		1,642		78,194
Consumer and other		8,025		—		2		8,027
	$	780,761	$	—	$	7,486	$	788,247

Pro-Forma Financial Information and Actual Results of Acquisition

Contractually required principal and interest payments have been adjusted for estimated prepayments.

	Mar 31, 2015			Dec 31, 2014
Contractually required principal and interest	$	6,135		$	6,532
Non-accretable difference		(989	)		(1,270	)
Cash flows expected to be collected		5,146			5,262
Accretable yield		(840	)		(947	)
Carrying value of acquired loans		4,306			4,315
Allowance for loan losses		—			—
Carrying value less allowance for loan losses	$	4,306		$	4,315

Summary of Changes in Total Contractually Required Principal and Interest Cash Payments, Managements Estimate of Expected Total Cash Payments and Carrying Value of Loans

The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans during the three month period ending March 31, 2015.

Activity during the three month period ending March 31, 2015	Dec 31, 2014			Effect of Acquisitions		Income Accretion		All other Adjustments			Mar 31, 2015
Contractually required principal and interest	$	6,532		$	—	$	—	$	(397	)	$	6,135
Non-accretable difference		(1,270	)		—		—		281			(989	)
Cash flows expected to be collected		5,262			—		—		(116	)		5,146
Accretable yield		(947	)		—		57		50			(840	)
Carry value of acquired loans	$	4,315		$	—	$	57	$	(66	)	$	4,306

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Computation of Earning per Share

The factors used in the earnings per share computation follow:

	Three Months Ended March 31,
	2015			2014
Basic
Net income available to common shareholders	$	3,107		$	1,504
Less: earnings allocated to participating securities		(40	)		(9	)
Net income allocated to common shareholders	$	3,067		$	1,495
Weighted average common shares outstanding including participating securities		7,970,250			4,862,674
Less: Participating securities		(102,187	)		(28,476	)
Average shares		7,868,063			4,834,198
Basic earnings per common share	$	0.39		$	0.31

	Three Months Ended March 31,
	2015		2014
Diluted
Net income allocated to common shareholders	$	3,067	$	1,495
Weighted average common shares outstanding for basic earnings per common share		7,868,063		4,834,198
Add: Dilutive effects of assumed exercises of stock options		432,808		123,161
Add: Dilutive effects of assumed exercises of stock warrants		12,951		3,542
Average shares and dilutive potential common shares		8,313,822		4,960,901
Dilutive earnings per common share	$	0.37	$	0.30

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Loans - Summary of Risk Category of Loans by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Risk Category Of Loans [Line Items]
Total Loans	$ 875,936	$ 788,247
Construction and Land Development [Member]
Risk Category Of Loans [Line Items]
Total Loans	282,596	239,302
Commercial Real Estate Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans	256,696	242,773
Commercial Real Estate, Other [Member]
Risk Category Of Loans [Line Items]
Total Loans	4,259	5,377
Real Estate Residential Closed-end 1-4 Family [Member]
Risk Category Of Loans [Line Items]
Total Loans	133,737	131,337
Residential Real Estate, Other [Member]
Risk Category Of Loans [Line Items]
Total Loans	90,545	83,237
Commercial and Industrial [Member]
Risk Category Of Loans [Line Items]
Total Loans	100,662	78,194
Consumer and Other Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans	7,441	8,027
Pass [Member]
Risk Category Of Loans [Line Items]
Total Loans	868,341	780,761
Pass [Member] | Construction and Land Development [Member]
Risk Category Of Loans [Line Items]
Total Loans	282,519	239,225
Pass [Member] | Commercial Real Estate Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans	253,007	239,584
Pass [Member] | Commercial Real Estate, Other [Member]
Risk Category Of Loans [Line Items]
Total Loans	4,259	5,377
Pass [Member] | Real Estate Residential Closed-end 1-4 Family [Member]
Risk Category Of Loans [Line Items]
Total Loans	131,803	128,869
Pass [Member] | Residential Real Estate, Other [Member]
Risk Category Of Loans [Line Items]
Total Loans	90,438	83,129
Pass [Member] | Commercial and Industrial [Member]
Risk Category Of Loans [Line Items]
Total Loans	98,874	76,552
Pass [Member] | Consumer and Other Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans	7,441	8,025
Substandard [Member]
Risk Category Of Loans [Line Items]
Total Loans	7,595	7,486
Substandard [Member] | Construction and Land Development [Member]
Risk Category Of Loans [Line Items]
Total Loans	77	77
Substandard [Member] | Commercial Real Estate Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans	3,689	3,189
Substandard [Member] | Real Estate Residential Closed-end 1-4 Family [Member]
Risk Category Of Loans [Line Items]
Total Loans	1,934	2,468
Substandard [Member] | Residential Real Estate, Other [Member]
Risk Category Of Loans [Line Items]
Total Loans	107	108
Substandard [Member] | Commercial and Industrial [Member]
Risk Category Of Loans [Line Items]
Total Loans	1,788	1,642
Substandard [Member] | Consumer and Other Financing Receivable [Member]
Risk Category Of Loans [Line Items]
Total Loans		$ 2

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Securities - Schedule of Unrealized Losses and Fair Value by Major Security Type (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Schedule Of Held To Maturity And Available For Sale Securities [Line Items]
Less Than 12 Months Available for Sale Fair Value	$ 55,462	$ 69,077
Less Than 12 Months Available for sale Unrealized Losses	(321)	(324)
12 Months or Longer Available for sale Fair Value	37,258	50,171
12 Months or Longer Available for sale Unrealized Losses	(532)	(1,193)
Available for sale Fair Value, Total	92,720	119,248
Available for sale Unrealized Losses, Total	(853)	(1,517)
Less Than 12 Months Held to maturity Fair Value	5,531	5,753
Less Than 12 Months Held to maturity Unrealized Losses	(54)	(26)
12 Months or Longer Held to maturity Fair Value	10,677	16,506
12 Months or Longer Held to maturity Unrealized Losses	(414)	(633)
Held to maturity Fair Value, Total	16,208	22,259
Held to maturity Unrealized Losses, Total	(468)	(659)
U.S. Government Sponsored Entities and Agencies [Member]
Schedule Of Held To Maturity And Available For Sale Securities [Line Items]
Less Than 12 Months Available for Sale Fair Value	18,966	9,999
Less Than 12 Months Available for sale Unrealized Losses	(34)	(1)
12 Months or Longer Available for sale Fair Value	4,445	8,232
12 Months or Longer Available for sale Unrealized Losses	(100)	(313)
Available for sale Fair Value, Total	23,411	18,231
Available for sale Unrealized Losses, Total	(134)	(314)
Less Than 12 Months Held to maturity Fair Value	1,978
Less Than 12 Months Held to maturity Unrealized Losses	(21)
12 Months or Longer Held to maturity Fair Value	976	2,913
12 Months or Longer Held to maturity Unrealized Losses	(24)	(87)
Held to maturity Fair Value, Total	2,954	2,913
Held to maturity Unrealized Losses, Total	(45)	(87)
Mortgage-Backed Securities: Residential [Member]
Schedule Of Held To Maturity And Available For Sale Securities [Line Items]
Less Than 12 Months Available for Sale Fair Value	36,496	59,078
Less Than 12 Months Available for sale Unrealized Losses	(287)	(323)
12 Months or Longer Available for sale Fair Value	32,813	41,939
12 Months or Longer Available for sale Unrealized Losses	(432)	(880)
Available for sale Fair Value, Total	69,309	101,017
Available for sale Unrealized Losses, Total	(719)	(1,203)
Less Than 12 Months Held to maturity Fair Value	2,452	5,246
Less Than 12 Months Held to maturity Unrealized Losses	(27)	(25)
12 Months or Longer Held to maturity Fair Value	9,701	13,001
12 Months or Longer Held to maturity Unrealized Losses	(390)	(537)
Held to maturity Fair Value, Total	12,153	18,247
Held to maturity Unrealized Losses, Total	(417)	(562)
State and Political Subdivisions [Member]
Schedule Of Held To Maturity And Available For Sale Securities [Line Items]
Less Than 12 Months Held to maturity Fair Value	1,101	507
Less Than 12 Months Held to maturity Unrealized Losses	(6)	(1)
12 Months or Longer Held to maturity Fair Value		592
12 Months or Longer Held to maturity Unrealized Losses		(9)
Held to maturity Fair Value, Total	1,101	1,099
Held to maturity Unrealized Losses, Total	$ (6)	$ (10)

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 3,132	$ 1,529
Unrealized gains/losses on securities:
Unrealized holding gain arising during the period	3,036	3,176
Reclassification adjustment for gains included in net income	(415)	(8)
Net unrealized gains	2,621	3,168
Tax effect	(1,065)	(1,213)
Total other comprehensive income	1,556	1,955
Comprehensive income	$ 4,688	$ 3,484

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Acquisitions

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

NOTE 2—ACQUISITIONS

Acquisition of MidSouth Bank

On July 1, 2014 the Company completed the acquisition of MidSouth Bank (“MidSouth”), pursuant to the terms of the Agreement and Plan of Reorganization and Bank Merger (the “merger agreement”) dated November 19, 2013.

The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition of $9,124, after consideration of a measurement period adjustment discussed below, which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill is calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. Fair value estimates are based on the information available, and are subject to change for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. Fair values are preliminary estimates due to pending appraisals on loans and other real estate owned.

The Company acquired 100% of the outstanding preferred and common stock of MidSouth. The purchase price consisted of both cash and share of the Company’s common stock. MidSouth’s common shareholders received 0.425926 shares of FFN common stock for each share of MidSouth common stock. MidSouth’s preferred shareholders received 0.851852 shares of FFN common stock for each share of MidSouth preferred stock. Each MidSouth Series 2009A warrant holder received 0.18 shares of FFN common stock for each MidSouth Series 2009A warrant, and each Series 2011-A warrant holder received 0.146667 shares of FFN common stock for each MidSouth Series 2011-A warrant. In lieu of issuing fractional shares of FFN common stock, FFN paid former MidSouth shareholders an amount in cash determined by multiplying (i) $13.50 by (ii) the fraction of a share (rounded to the nearest ten thousandth when expressed in decimal form) of FFN common stock.

MidSouth common stock options were converted into options to purchase shares of FFN common stock based on the 0.425926 exchange ratio, with the new exercise price becoming the exercise price of the MidSouth options divided by the exchange ratio. On the date of the merger, 2,766,191 shares of FFN common stock were exchanged for the common and preferred stock, and common stock warrants of MidSouth in accordance with the proration and allocation procedures contained in the merger agreement and as noted above. Subsequently, cash totaling $100 was paid to dissenting MidSouth shareholders representing 7,427 shares of FFN common stock. In addition, $18 of cash was paid to MidSouth shareholders for fractional shares in accordance with the merger agreement.

Based on a valuation of the FFN’s common stock as of July 1, 2014, the resulting purchase price was $41,094. The following table summarizes the purchase price calculation:

	Number of MidSouth shares outstanding		Per share exchange ratio		Number of FFN shares—as exchanged
Common Shares		3,873		0.425926		1,650
Convertible Voting Preferred Stock, 2009-A		1,018		0.851852		867
Convertible Voting Preferred Stock, 2011-A		242		0.851852		206
Series 2009-A Stock Warrants (strike price $3.25)		193		0.185185		36
Series 2011-A Stock Warrants (strike price $3.68)		44		0.153333		7
						2,766
Multiplied by FFN common stock value at acquisition date					$	14.50
Fair value of FFN common stock issued (“Stock Consideration”)					$	40,110
Cash consideration paid for fractional shares						18
Cash consideration paid for dissenting shares						100
Fair value of MidSouth stock options converted to FFN stock options						866
Total acquisition consideration					$	41,094

On July 1, 2014 the Company purchased MidSouth. As previously disclosed, the fair values initially assigned to the assets acquired and liabilities assumed were preliminary and subject to refinement for up to one year after the closing date of the acquisition as new information relative to closing date fair values becomes available. Based on appraisals received subsequent to the acquisition date, the Company adjusted its initial fair value estimate of foreclosed assets that were acquired. The table below summarizes the fair value of the assets purchased, including goodwill, and liabilities assumed as of the July 1, 2014 purchase date.

In Thousands	July 1, 2014 (as initially reported)		Measurement Period Adjustments			July 1, 2014 (as adjusted)
Assets:
Cash and due from banks	$	1,369	$	—		$	1,369
Interest-bearing accounts at other financial institutions		10,946					10,946
Securities, available-for-sale		57,431					57,431
Loans held for sale		7,071					7,071
Loans		184,345					184,345
Certificates of deposit at other financial institutions		250					250
Restricted equity securities		1,572					1,572
Bank premises and equipment, net		6,650					6,650
Bank-owned life insurance		3,144					3,144
Accrued interest receivable		728					728
Foreclosed assets		800		(260	)		540
Core deposit intangible		3,060					3,060
Deferred tax asset		6,753		100			6,853
Goodwill		8,964		160			9,124
Other assets		747					747
Total assets acquired	$	293,830	$	—		$	293,830
Liabilities:
Deposits	$	244,415	$	—		$	244,415
Short-term borrowings		6,893					6,893
Other liabilities		1,428					1,428
Total liabilities assumed	$	252,736	$	—		$	252,736

At March 31, 2015, there were no circumstances or significant changes that have occurred since July 1, 2014 related to the acquisition of MidSouth that, in management’s assessment, would necessitate recording impairment of goodwill.

In the acquisition, the Company purchased $184,345 of loans at fair value, net of $7,347, or 3.8%, estimated discount to the outstanding principal balance, representing 38.0% of the Company’s total loans at June 30, 2014. Of the total loans acquired, management identified loans totaling $5,527 as having credit deficiencies. All loans that were on non-accrual status and all loan relationships that were identified as substandard or impaired as of the acquisition date were considered by management to be credit-impaired and are accounted for pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of July 1, 2014 for purchased credit-impaired (“PCI”) loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.

Contractually required principal and interest	$	8,510
Non-accretable difference		(1,745	)
Cash flows expected to be collected		6,765
Accretable yield		(1,238	)
Total purchased credit-impaired loans acquired	$	5,527

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance at acquisition date.

	Unpaid Principal Balance		Fair Value
Loans:
Residential real estate	$	39,425	$	38,618
Commercial real estate		82,465		80,566
Construction and land development		43,766		42,454
Commercial loans		16,311		15,352
Consumer and other loans		1,865		1,828
Purchased credit-impaired		7,860		5,527
Total earning assets	$	191,692	$	184,345

In its assumption of the deposit liabilities, the Company believed the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. The Company determined the estimated fair value of the core deposit intangible asset totaled $3,060, which will be amortized utilizing an accelerated amortization method over an estimated economic life of 8.2 years. When determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.

Pro-forma information

Pro-forma data for the three-month period ending March 31, 2014 listed in the table below presents pro-forma information as if the MidSouth acquisition occurred at the beginning of 2014. Because the MidSouth transaction closed on July 1, 2014, and its actual results are included in the Company’s actual operating results for the three-month period ending March 31, 2015, there is no pro-forma information for the three months ending March 31, 2015.

	Three months ended March 31,
	2014
Net interest income	$	10,405
Net income available to common shareholders		1,814
Earnings per share—basic	$	0.24
Earnings per share—diluted	$	0.23

Supplemental pro forma earnings for the three months ended March 31, 2014 were adjusted to exclude $517 of acquisition-related costs incurred during the first quarter of 2014. Supplemental pro forma earnings for the three months ended March 31, 2014 were adjusted to include discount accretion and premium amortization related to the fair value adjustments to acquisition date assets and liabilities, as appropriate.

During the three months ending March 31, 2014, the acquisition of MidSouth increased pro-forma net interest income by approximately $3,310 and net income available to common shareholders by approximately $310.

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Share-Based Payments - Summary of Company's Stock Option Activities (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares, Outstanding, Beginning Balance	1,210,660
Shares, Granted	1,000		181,680
Shares, Exercised	(70,521)	(119)	(23,809)
Shares, Forfeited, expired, or canceled	(2,000)		(31,135)
Shares, Outstanding, Ending Balance	1,135,026		1,210,660
Shares, Vested or expected to vest	1,176,064
Shares, Exercisable at period end	807,599
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 11.32
Weighted Average Exercise Price, Granted	$ 21.75
Weighted Average Exercise Price, Exercised	$ 11.55
Weighted Average Exercise Price, Forfeited, expired, or cancelled	$ 18.45
Weighted Average Exercise Price, Outstanding, Ending Balance	$ 11.30		$ 11.32
Weighted Average Exercise Price, Vested or expected to vest	$ 11.30
Weighted Average Exercise Price, Exercisable at period end	$ 10.52
Weighted Average Remaining Contractual Term, beginning of year	6 years 2 months 23 days	6 years 6 months 11 days
Weighted Average Remaining Contractual Term, Vested or expected to vest	6 years 2 months 23 days
Weighted Average Remaining Contractual Term, Exercisable at period end	5 years 2 months 9 days
Aggregate Intrinsic Value, Outstanding, Beginning Balance	$ 7,244
Aggregate Intrinsic Value, Outstanding, Ending Balance	11,013		7,244
Aggregate Intrinsic Value, Vested or expected to vest	10,462
Aggregate Intrinsic Value, Exercisable at period end	$ 7,513

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Capital Offering (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Schedule of Net Proceeds

Net proceeds were as follows:

Gross proceeds	$	55,440
Less: stock offering costs		(4,436	)
Net proceeds from issuance of common stock	$	51,004

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Securities - Summary of Calls of Held to Maturity Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Amortized Cost and Fair Value Debt Securities [Abstract]
Proceeds	$ 800
Gross gains	39
Gross losses	$ 0	$ 0

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Securities (Tables)

3 Months Ended

Mar. 31, 2015

Summary of Amortized Cost and Fair Value of Available for Sale Securities

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	46,333	$	233	$	(134	)	$	46,432
Mortgage-backed securities: residential		399,896		6,693		(719	)		405,870
Mortgage-backed securities: commercial		4,144		74		—			4,218
Total	$	450,373	$	7,000	$	(853	)	$	456,520

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	30,070	$	417	$	(314	)	$	30,173
U.S. Treasury securities		20,000		—		—			20,000
Mortgage-backed securities: residential		335,677		4,593		(1,203	)		339,067
Mortgage-backed securities: commercial		6,432		33		—			6,465
Total	$	392,179	$	5,043	$	(1,517	)	$	395,705

Schedule of Amortized Cost and Fair Value of Held to Maturity Securities Portfolio

The amortized cost and fair value of the held to maturity securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of gross unrecognized gains and losses were as follows:

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
March 31, 2015
U.S. government sponsored entities and agencies	$	4,763	$	128	$	(45	)	$	4,846
Mortgage backed securities: residential		36,970		762		(417	)		37,315
State and political subdivisions		8,917		389		(6	)		9,300
Total	$	50,650	$	1,279	$	(468	)	$	51,461

	Gross Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
December 31, 2014
U.S. government sponsored entities and agencies	$	5,550	$	162	$	(87	)	$	5,625
Mortgage backed securities: residential		38,587		555		(562	)		38,580
State and political subdivisions		9,195		351		(10	)		9,536
Total	$	53,332	$	1,068	$	(659	)	$	53,741

Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity

The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	March 31, 2015
	Amortized Cost		Fair Value
Available for sale
Three months or less	$	30,000	$	30,000
Over three months through one year		—		—
Over one year through five years		—		—
Over five years through ten years		7,788		8,021
Over ten years		8,545		8,411
Mortgage-backed securities: residential		399,896		405,870
Mortgage-backed securities: commercial		4,144		4,218
Total	$	450,373	$	456,520
Held to maturity
Three months or less	$	—	$	—
Over three months through one year		—		—
Over one year through five years		1,385		1,448
Over five years through ten years		1,106		1,141
Over ten years		11,189		11,557
Mortgage-backed securities: residential		36,970		37,315
Total	$	50,650	$	51,461

Schedule of Unrealized Losses and Fair Value by Major Security Type

The following table summarizes the securities with unrealized and unrecognized losses at March 31, 2015 and December 31, 2014, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2015
Available for sale
U.S. government sponsored entities and agencies	$	18,966	$	(34	)	$	4,445	$	(100	)	$	23,411	$	(134	)
Mortgage-backed securities: residential		36,496		(287	)		32,813		(432	)		69,309		(719	)
Total available for sale	$	55,462	$	(321	)	$	37,258	$	(532	)	$	92,720	$	(853	)

	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	1,978	$	(21	)	$	976	$	(24	)	$	2,954	$	(45	)
Mortgage-backed securities: residential		2,452		(27	)		9,701		(390	)		12,153		(417	)
State and political subdivisions		1,101		(6	)		—		—			1,101		(6	)
Total held to maturity	$	5,531	$	(54	)	$	10,677	$	(414	)	$	16,208	$	(468	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2014
Available for sale
U.S. government sponsored entities and agencies	$	9,999	$	(1	)	$	8,232	$	(313	)	$	18,231	$	(314	)
Mortgage-backed securities: residential		59,078		(323	)		41,939		(880	)		101,017		(1,203	)
Total available for sale	$	69,077	$	(324	)	$	50,171	$	(1,193	)	$	119,248	$	(1,517	)
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses			Fair Value		Unrecognized Losses
Held to maturity
U.S. government sponsored entities and agencies	$	—	$	—		$	2,913	$	(87	)	$	2,913	$	(87	)
Mortgage-backed securities: residential		5,246		(25	)		13,001		(537	)		18,247		(562	)
State and political subdivisions		507		(1	)		592		(9	)		1,099		(10	)
Total held to maturity	$	5,753	$	(26	)	$	16,506	$	(633	)	$	22,259	$	(659	)

Available-for-sale Securities [Member]

Summary of Sales and Calls of Securities

Sales and calls of available for sale securities were as follows:

	Three Months Ended March 31,
	2015			2014
Proceeds	$	11,289		$	5,451
Gross gains		390			24
Gross losses		(14	)		(16	)

Held-to-maturity Securities [Member]

Summary of Sales and Calls of Securities

Calls of held to maturity securities were as follows:

	Three Months Ended March 31,
	2015		2014
Proceeds	$	800	$	—
Gross gains		39		—
Gross losses		—		—