<PAGE>   1


                       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, 1997.

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

                        Commission file number 0 - 20880
                           Filing Date: May 14, 1997

--------------------------------------------------------------------------------

                         FRANKLIN BANCORPORATION, INC              
             -----------------------------------------------------
             (Exact name of registrant as specified in its charter)


           DELAWARE                                       52 - 1632361          
---------------------------------                -------------------------------
(State or other jurisdiction of                  (I.R.S. Employer identification
 incorporation or organization)                   Number)                       
                                                                                
     1722 EYE STREET, N.W.                                                      
     WASHINGTON, D.C.  20006                           (202) 429 - 9888         
---------------------------------                -------------------------------
(Address of principal executive                  (Registrant's telephone number,
offices)                                          including area code)          


--------------------------------------------------------------------------------

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 ( )

The total number of shares outstanding of the Registrant's common stock, par
value $0.10 per share, as of May 8, 1997 was 6,487,694.


                                  Page 1 of 15
<PAGE>   2
                         FRANKLIN BANCORPORATION, INC.
                                   FORM 10-Q
                                 March 31, 1997

                               TABLE OF CONTENTS



<TABLE>
<CAPTION>
PART I.  FINANCIAL INFORMATION                                          PAGE

<S>                                                                       <C> 
ITEM 1.  FINANCIAL STATEMENTS
      (a) Consolidated Statements of Financial Condition...............    3
      (b) Consolidated Statements of Income............................    4
      (c) Consolidated Statements of Cash Flows........................    5
      Notes to Consolidated Financial Statements.......................    6




ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS.....................................    9




PART II. OTHER INFORMATION.............................................   13
</TABLE>





                                  Page 2 of 15
<PAGE>   3
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS
(a)   Consolidated Statements of Financial Condition
      (Dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                     UNAUDITED
                                                                     MARCH 31,                   DECEMBER 31,
ASSETS                                                                  1997                        1996    
------                                                               ----------                  -----------
<S>                                                                 <C>                          <C>
Cash and due from banks                                             $  25,213                    $ 22,468
Federal funds sold and securities purchased
 under resale agreements                                               38,800                      71,800

Securities available-for-sale                                          99,011                      97,160
Securities held-to-maturity                                            79,027                      66,956 
                                                                    ----------                   ---------

   Securities                                                         178,038                     164,116

Loans, net of unearned income                                         235,428                     232,581
 Less: allowance for loan losses                                       (4,029)                     (3,842)
                                                                    ----------                   ---------

   Loans, net                                                         231,399                     228,739

Accrued interest receivable                                             3,561                       3,305
Premises and equipment, net                                             2,470                       2,504
Goodwill, net                                                           1,083                       1,115
Other assets                                                            4,399                       3,770 
                                                                    ----------                   ---------

TOTAL ASSETS                                                         $484,963                    $497,817 
                                                                    ==========                   =========

LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------

LIABILITIES:
------------
Non-interest bearing deposits                                        $ 94,354                    $123,197
Interest bearing deposits                                             256,956                     240,230 
                                                                    ----------                   ---------

   Total deposits                                                     351,310                     363,427

Securities sold under repurchase agreements                            97,170                      99,093
Accrued interest payable                                                1,060                         997
Other liabilities                                                       2,943                       2,407 
                                                                    ----------                   ---------

   Total liabilities                                                  452,483                     465,924 
                                                                    ----------                   ---------

STOCKHOLDERS' EQUITY:
---------------------
Common Stock, $0.10 par value, 25,000,000
 shares authorized; 6,487,694 and 6,485,944
 shares issued and outstanding, respectively                              649                         649
Capital surplus                                                        20,975                      20,960
Retained earnings                                                      11,871                      10,488
Unrealized loss on securities
 available-for-sale                                                    (1,015)                       (204)
                                                                    ----------                   ---------

   Total stockholders' equity                                          32,480                      31,893 
                                                                    ----------                   ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $484,963                    $497,817 
                                                                    ==========                   =========
</TABLE>

The accompanying condensed notes are an integral part of these financial
statements.

                                  Page 3 of 15
<PAGE>   4
(b) Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED
                                                                              MARCH 31,    
                                                                         ------------------
                                                                      1997                     1996
                                                                      ----                     ----
<S>                                                                 <C>                       <C>
INTEREST INCOME:
----------------
Interest and fees on loans                                          $5,329                    $4,429
Interest and dividends on securities                                 2,514                     1,634
Interest on federal funds sold and securities
 purchased under resale agreements                                     451                       417 
                                                                    -------                   -------
   Total interest income                                             8,294                     6,480 
                                                                    -------                   -------

INTEREST EXPENSE:
-----------------
Interest on deposits                                                 2,314                     2,100
Interest on securities sold under
 repurchase agreements                                                 909                       347 
                                                                    -------                   -------

   Total interest expense                                            3,223                     2,447 
                                                                    -------                   -------

   Net interest income                                               5,071                     4,033

Provision for loan losses                                              130                        27 
                                                                    -------                   -------

Net interest income after provision
 for loan losses                                                     4,941                     4,006 
                                                                    -------                   -------

NON-INTEREST INCOME:
--------------------
Service charges on deposits                                            332                       241
Other fee income                                                       194                       113 
                                                                    -------                   -------

   Total non-interest income                                           526                       354 
                                                                    -------                   -------

NON-INTEREST EXPENSE:
---------------------
Compensation and employee benefits                                   1,762                     1,528
Occupancy                                                              469                       380
Furniture and equipment                                                225                       189
Goodwill amortization                                                   32                        46
Other                                                                  712                       631 
                                                                    -------                   -------
   Total non-interest expense                                        3,200                     2,774 
                                                                    -------                   -------

Income before income tax expense                                     2,267                     1,586

Income tax expense                                                     884                       622 
                                                                    -------                   -------

NET INCOME                                                          $1,383                    $  964 
                                                                    =======                   =======

PRIMARY EARNINGS PER SHARE:(1)
------------------------------
Net Income                                                          $ 0.20                    $ 0.15

FULLY DILUTED EARNINGS PER SHARE (1)
------------------------------------
Net Income                                                          $ 0.20                    $ 0.15
</TABLE>


(1) See Exhibit 11 - Computation of Primary and Fully Diluted Earnings per
    Share.

The accompanying condensed notes are an integral part of these financial
statements.


                                  Page 4 of 15
<PAGE>   5
(c) Consolidated Statements of Cash Flows (Unaudited)
    (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED
                                                                                          MARCH 31,    
                                                                                     ------------------
                                                                              1997                     1996
                                                                              ----                     ----
<S>                                                                          <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------
Net income                                                                    $  1,383               $    964
Adjustments to reconcile net income to net
 cash provided by operating activities:
Provision for loan losses                                                          130                     27
Depreciation and amortization                                                      182                    205
Change in accrued interest receivable and
 other assets                                                                     (145)                     1
Change in accrued interest payable and other
 liabilities                                                                       599                    670 
                                                                              ---------              ---------

Net cash provided by operating activities                                        2,149                  1,867
                                                                              ---------              ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
Purchases of securities available-for-sale                                      (7,307)               (17,480)
Proceeds from maturities/principal paydowns
 of securities available-for-sale                                                4,126                  6,893
Purchases of securities held-to-maturity                                       (12,766)                 -----
Proceeds from maturities/principal paydowns
 of securities held-to-maturity                                                    705                    984
Net increase in loans receivable                                                (2,966)                (3,308)
Additions to premises and equipment, net                                          (171)                  (347) 
                                                                              ----------             --------- 

Net cash used in investing activities                                          (18,379)               (13,258) 
                                                                              ----------             --------- 

CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
Net decrease in deposits                                                       (12,117)               (19,843)
Net change in securities sold under
 repurchase agreements                                                          (1,923)                 7,479
Proceeds from issuance of common stock                                              15                    151 
                                                                             ----------              ---------

Net cash used in financing activities                                          (14,025)               (12,213)
                                                                             ----------              ---------

Net decrease in cash and cash equivalents                                      (30,255)               (23,604)

Cash and cash equivalents at beginning
 of period                                                                      94,268                 69,686 
                                                                             ----------              ---------

Cash and cash equivalents at end of period                                   $  64,013               $ 46,082 
                                                                             ==========              =========
</TABLE>



The accompanying condensed notes are an integral part of these financial
statements.





                                  Page 5 of 15
<PAGE>   6
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT MARCH 31, 1997
(unaudited) (in thousands)


1.  Basis of Financial Statement Presentation.

The interim financial statements of Franklin Bancorporation, Inc. ("Franklin")
have been prepared pursuant to the requirements for reporting on Form 10-Q and
reflect all adjustments (consisting only of normal recurring adjustments) which
were, in the opinion of management, necessary for a fair statement of the
results of the periods presented.  Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted  accounting principles have been condensed or omitted.  Accordingly,
these unaudited statements should be read in conjunction with the audited
financial statements and related notes in Franklin's most current annual
report.  The current period's results of operations are not necessarily
indicative of results which ultimately may be achieved for the year.

2.  Securities.

The amortized cost and market value of securities are summarized as follows:

<TABLE>
<CAPTION>
                                               March 31, 1997                December 31, 1996
                                               --------------                -----------------
                                           Amortized         Market          Amortized   Market
SECURITIES AVAILABLE-FOR-SALE                Cost            Value             Cost      Value 
-----------------------------              ---------        -------          ---------  -------
<S>                                        <C>              <C>              <C>        <C>
U.S. treasury securities                   $ 18,729         $18,572          $19,712    $19,907
U.S. government agencies                     71,396          70,165           67,393     67,070
Step-up and structured notes                  5,933           5,645            5,928      5,717
Mortgage-backed securities                    2,515           2,427            2,643      2,588
Equity securities                             2,202           2,202            1,878      1,878 
                                           ---------        --------         --------   --------

Total                                      $100,775         $99,011          $97,554    $97,160 
                                           =========        ========         ========   ========
</TABLE>


<TABLE>
<CAPTION>
                                                  March 31,1997               December 31, 1996
                                                  -------------               -----------------
                                           Amortized         Market          Amortized   Market
SECURITIES HELD-TO-MATURITY                  Cost            Value             Cost      Value 
---------------------------                ---------        -------          ---------  -------
<S>                                        <C>              <C>              <C>        <C>
U.S. treasury securities                   $15,945          $15,700          $12,975    $12,840
U.S. government agencies                    11,414           11,201            4,983      4,921
Mortgage-backed securities                  36,548           35,155           37,248     36,014
States and political subdivisions           15,120           14,951           11,750     11,672 
                                           --------         --------         --------   --------

Total                                      $79,027          $77,007          $66,956    $65,447 
                                           ========         ========         ========   ========
</TABLE>



                                  Page 6 of 15
<PAGE>   7


3.  Loans.

    Major categories of loans are as follows:

<TABLE>
<CAPTION>
                                                   March 31,       December 31,
                                                     1997             1996   
                                                   --------        -----------
<S>                                                <C>              <C>
Real Estate
   Commercial                                      $ 45,532         $ 44,136
   Construction and development                      15,265           15,243
   Residential mortgage                              21,595           18,768 
                                                   ---------        ---------

         Total Real Estate                           82,392           78,147

Commercial and Industrial                           139,103          140,544

Consumer
   Consumer                                           9,621            9,800
   Home equity                                        4,741            4,526 
                                                   ---------        ---------

         Total Consumer                              14,362           14,326

Total                                               235,857          233,017 
                                                   ---------        ---------

Unearned income                                        (429)            (436)
                                                   ---------        ---------

Loans, net of unearned income                      $235,428         $232,581 
                                                   ---------        ---------
</TABLE>


At March 31, 1997, impaired loans totaled $721,000 with a corresponding
valuation allowance of $267,000.  Primarily all of the loans deemed to be
impaired are commercial loans.

For the quarter ended March 31, 1997, the average recorded investment in
impaired loans was approximately $749,000.  Had all of these loans performed in
accordance with their original terms, interest income of approximately $20,000
would have been recorded during the first three months of 1997.  Franklin did
not recognize any interest on impaired loans during quarter.

At March 31, 1997, Franklin had no other loans on non-accrual other than those
deemed to be impaired loans.  Loans 90 days or more past due which were still
accruing interest totaled $318,000.





                                  Page 7 of 15
<PAGE>   8


Changes in the allowance for loan losses for the three months ended March 31,
1997 are as follows:

<TABLE>
<S>                                                         <C>
Balance, January 1                                          $3,842

Charge-offs:
   Real Estate                                                ----
   Commercial                                                   (8)
   Consumer                                                     (9) 
                                                            --------

Total                                                          (17) 
                                                            --------

Recoveries:
   Real Estate                                                  26
   Commercial                                                   47
   Consumer                                                      1 
                                                            -------

Total                                                           74 
                                                            -------

Net recoveries                                                  57

Provision for loan losses                                      130

Balance, March 31                                           $4,029 
                                                            =======

Net charge-offs to average loans                            (0.02)%
</TABLE>


Franklin National Bank,in the normal course of business, makes loans to
executive officers, directors and stockholders, as well as to companies and
individuals affiliated with those officers and directors.  In the opinion of
management, these loans are consistent with sound banking practices, are within
regulatory lending limits and do not involve more than normal risk of
collectibility.

Activity in such loans is summarized as follows:

<TABLE>
<S>                                        <C>
Balance, January 1, 1997                   $ 5,427
   New loans                                 6,942
   Repayments                                 (888)
                                           --------

Balance, March 31, 1997                    $11,481 
                                           ========
</TABLE>

There were no loans to directors, officers or related parties that were
impaired as of March 31, 1997.



                                  Page 8 of 15
<PAGE>   9



4.  Time deposits, including IRA's, are as follows:

<TABLE>
<CAPTION>
                                                           March 31,     December 31,
                                                              1997           1996    
                                                          ----------     ------------
<S>                                                         <C>              <C>
Certificates less than $100,000                             $15,081          $14,673
Certificates of $100,000 or more                             89,988           64,757
</TABLE>


ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations.


FINANCIAL SUMMARY

Net income for the three months ended March 31, 1997, increased by 43% to $1.38
million or $0.20 per share compared to $964 thousand or $0.15 per share for the
same period in 1996.  Returns on average assets and average equity for the
first  quarter of 1997 were 1.21% and 17.30%, respectively, compared to 1.11%
and 14.39% for the same period in 1996.

Contributing to the increase in earnings for the first quarter of 1997 were
improvements in net interest income and growth in service charges and other fee
income. The earnings improvement was partially offset by increases in the
provision for loan losses and in compensation and occupancy expenses as
Franklin expanded its branch network into Bethesda, Maryland.

Franklin's total assets decreased to $485 million at March 31, 1997 compared to
$497.8 million at December 31, 1996, a decrease of $12.8 million or 2.6%.  This
is fairly typical for Franklin as total assets normally surge in December of
each year, decline slightly during the first quarter and then increase through
the remaining quarters of the year.  As compared to March 31, 1996, total
assets increased 36% from $356.2 million to $485 million.

The decline in assets during the first quarter of 1997 occurred primarily in
Federal funds sold and securities purchased under resale agreements.  These
short-term investments decreased by $33 million, or 46% from $71.8 million at
December 31, 1996 to $38.8 million at March 31, 1997.  This decline was
anticipated at year-end as Franklin's deposits increased by $69 million in
December, 1996.  Of the $33 million decline, approximately $14 million funded
depositors' withdrawals, $14 million was added to the securities portfolios and
$3 million was added to the loan portfolio.


                                  Page 9 of 15
<PAGE>   10


Loans outstanding at March 31, 1997 totaled $235.4 million, a 1.2% increase
over loans at year end 1996 of $232.6 million.  Franklin's loan to deposit
ratio, a key measure of liquidity, remains conservative at 67% as compared to
64% on December 31, 1996, which management believes will provide Franklin the
ability to continue to meet the borrowing needs of its customers.

Total securities were $178 million as of March 31, 1997, an increase of $13.9
million, or 8%, over total securities of $164.1 million at December 31, 1996.
Additions were made primarily in the held-to-maturity securities portfolio.

Total deposits and customer repurchase agreements were $448.5 million at March
31, 1997 compared to $462.5 million at December 31, 1996, representing a
decrease of 3%.  Franklin's deposit mix at March 31, 1997 included $94.4
million in non-interest bearing deposits, representing 27% of total deposits,
the same percentage of total deposits at December 31, 1996.

Stockholders' equity at March 31, 1997 totaled $32.5 million compared to $31.9
million at December 31, 1996.  Book value per share of common stock on March
31, 1997 was $5.01 per share compared to $4.92 per share at December 31, 1996.
Stockholders' equity was positively impacted by the retention of earnings and
negatively impacted by the increase in the unrealized loss on the
available-for-sale securities portfolio.

EARNINGS ANALYSIS

Net interest income

Net interest income is Franklin's primary source of earnings and represents the
difference between interest and fees earned on earnings assets and the interest
paid on deposits and other interest bearing liabilities.  Net interest income
totaled $5.07 million for the first three months of 1997 compared to $4.03
million for the same period of 1996, an increase of 26%.  The improvements in
net interest income were primarily attributable to a higher volume of earning
assets.  Average earning assets increased 32% to $434.2 million for the three
months ended March 31, 1997 as compared to $328 million for the three months
ended March 31, 1996.  Of that growth, 44% occurred in Franklin's loan
portfolio, its highest yielding asset and 53% occurred in the securities
portfolios.

Total interest income increased $1.8 million, or 28%, to $8.3 million for the
first three months of 1997 as compared to $6.5 million for the same period of
1996, with 50%, or $900 thousand, of that increase occurring in interest and
fees on loans.  Interest expense increased $776 thousand, or 33%, to $3.2
million for the first three months of 1997 as compared to $2.4 million for the
same period of 1996.  The increase is primarily due to volume increases in
average interest bearing liabilities which grew 34% to $327.1 million for the
three months ended March 31, 1997 as compared to $244.4 million for the same
period in 1996.


                                 Page 10 of 15
<PAGE>   11



As a result of competitive market pressures on loan and deposit rates and a
slight change in Franklin's asset mix, Franklin's net interest margin declined
to 4.80% for the three months ended March 31, 1997 as compared to 4.95% for the
same period one year ago.  For the first quarter of 1997, Franklin's average
earning assets consisted of 53% loans, 39% securities and 8% short-term
investments as compared to 56% loans, 35% securities and 9% short-term
investments during the first quarter of 1996.  Management intends to continue
to seek opportunities to increase the volume of Franklin's highest yielding
assets, loans, to sustain and improve its margin.

Non-interest income

Non-interest income increased $172 thousand, or 49%, from $354 thousand for the
three months ending March 31, 1996 to $526 thousand for the same period ending
March 31, 1997.  The increases are a result of Franklin's growing customer
base, as well as the continued expansion of commercial deposit product
offerings, such as cash management and payroll processing services, and foreign
currency exchange services.

Non-interest expense

Total non-interest expense of $3.2 million for the three months ended March 31,
1997 increased $426 thousand, or 15%, compared to $2.8 million for the same
period in 1996.  The components of this increase were as follows: compensation
and employee benefits $234 thousand, or 55% of the increase, occupancy and
furniture and equipment expense $125 thousand, or 29%, and other operating
expense $67 thousand, or 16%.  The increases in all expense categories over
1996 levels are primarily due to Franklin's geographic expansion efforts which
included branch openings in Tysons, Virginia and Bethesda, Maryland.


ASSET QUALITY

Asset quality has continued to improve, however, due to the growth of the loan
portfolio and the reductions in loan recoveries, Franklin has deemed it prudent
to increase provisions for loan losses to $130 thousand for the three months
ended March 31, 1997 as compared to $27 thousand for the same period one year
ago.  For the three months ended March 31, 1997, Franklin recognized net loan
recoveries of $57 thousand, as Franklin received payments from loans
charged-off in prior years.  This compares to first quarter 1996 net loan
recoveries of $277 thousand.  At March 31, 1997, the allowance for loan losses
represented 1.71% of total loans as compared to 1.70% at December 31, 1996.



                                 Page 11 of 15
<PAGE>   12

Non-performing assets decreased to $897 thousand at March 31, 1997 from $908
thousand at December 31, 1996, representing 0.38% of total loans on March 31,
1997 as compared to 0.39% of total loans on December 31, 1996. The allowance
for loan losses as a percentage of non-performing assets increased from 423% on
December 31, 1996 to 449% on March 31, 1997.  Management believes that all
major loan portfolio deficiencies have been identified and adequate reserves
have been established.


RECENT ACCOUNTING DEVELOPMENTS

In February of 1997, Statement of Financial Accounting Standards No. 128,
"Earnings per Share" was issued.  The statement establishes standards for
computing and presenting earnings per share and is required to be adopted in
Franklin's financial statements for the year ended December 31, 1997.  The
statement is not expected to have a material impact on Franklin's financial
results.





                                 Page 12 of 15
<PAGE>   13

--------------------------------------------------------------------------------

PART II - OTHER INFORMATION

--------------------------------------------------------------------------------

Item 1 - Pending Legal Proceedings

At the present time, there are no material legal proceedings to which Franklin
is a party or to which any of Franklin's property is subject.  In addition, to
the best of Franklin's knowledge, no such proceedings are contemplated by
government authorities.

Item 2 - Changes in Securities

There were no changes in the rights of Franklin shareholders during the last
quarter.

Item 3 - Defaults Upon Senior Securities

There were no reportable occurrences during the last quarter.

Item 4 - Submission of Matters to a Vote of Security Holders

There were no reportable occurrences during the last quarter.

Item 5 - Other Information

No other reportable information.

Item 6 - Exhibits and Reports on Form 8-K

a. Exhibits:

   See Exhibit 11, "Computation of Primary and Fully Diluted Earnings per
   Share."

b. Reports on Form 8-K

   There were no reportable occurrences during the quarter.





                                 Page 13 of 15
<PAGE>   14

--------------------------------------------------------------------------------

                                   SIGNATURES
--------------------------------------------------------------------------------

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                           FRANKLIN BANCORPORATION, INC.        
                                                                                
                                                                                
                                                                                
 May 8, 1997                               Robert P. Pincus                     
------------------                         -------------------------------------
      Date                                 Robert P. Pincus                     
                                           President and Chief Executive Officer
                                                                                
                                                                                
 May 8, 1997                               Diane M. Begg                        
------------------                         -------------------------------------
      Date                                 Diane M. Begg                        
                                           Senior Vice President and Chief      
                                            Financial Officer                   





                                 Page 14 of 15