Finance and Economic

First Franklin Corp. slid to loss of $558,000, or a loss of 33 cents per share, in the second quarter of 2010.

In the same quarter a year ago, the Cincinnati-based bank recorded net income of $7,000, or 1 cent per share.

In a statement, CEO Jack Kuntz attributed the lower performance during the quarter to lingering effects of the recession. But he also noted a number of higher expenses and one-time charges, including a loan loss reserve increase of $260,000; an increase in compensation of $224,000; $175,000 in costs related to the company’s proxy fight with Lenox Wealth Management; and a $300,000 external fraud loss.

“Although the economic upheaval combined with other expense burdens has impacted our financial performance, I remain optimistic and encouraged by our core business metrics,” he said in a news release.

First Franklin’s net interest income increased to $1.7 million from $1.5 million in last year’s second quarter, he said.

First Franklin is the parent of Franklin Savings, which has seven banking offices around Hamilton County and is the 18th-largest bank in Greater Cincinnati.

Source