Franklin Financial Services Reports Stellar Q2 2025 Results and Dividend Declaration
Franklin Financial Services Corporation, the parent company for F&M Trust based in Chambersburg, PA, recently shared its financial results for the second quarter and year-to-date 2025. Their net income reached $5.9 million, translating to $1.32 per diluted share, marking a striking 94.8% rise from the same period in 2024 when it stood at $3.0 million or $0.66 per diluted share.
In addition to significant net income, the bank reported wealth management fees of $2.4 million, reflecting a 7.9% increase compared to $2.2 million in Q2 2024. This growth aligns with their assets under management, totaling $1.4 billion as of June 30, 2025.
Franklin Financial’s total assets grew to approximately $2.287 billion, which is a 4.1% increase compared to $2.198 billion at the end of 2024. They also realized substantial loan growth, bringing total net loans to $1.5 billion, higher by 8.7% than the previous reporting period. Furthermore, total deposits reached $1.893 billion, showing a 4.3% increase from the end of 2024.
The company showcased impressive performance metrics, with a return on average assets (ROA) of 1.04%, a return on average equity (ROE) of 15.64%, and a net interest margin (NIM) of 3.21% on an annualized basis. This improvement signifies a considerable advancement from the previous year, where ROA was 0.59%, ROE was 9.12%, and NIM was 2.99%.
In light of these results, the Board of Directors declared a regular quarterly cash dividend of $0.33 per share on July 17, 2025. This dividend is set for payment on August 27, 2025, with a record date of August 1, 2025. The decision to declare a dividend reflects their confidence in sustained financial growth.
Looking at the financial results for the first half of 2025, net income stood at $9.8 million or $2.20 per diluted share, compared to $6.4 million or $1.43 per diluted share in the prior year—a notable 53.7% increase.
Wealth management fees for the first six months also increased to $4.6 million, up from $4.3 million year-over-year, while total noninterest income rose to $9.7 million, marking a 13.2% increase primarily due to wealth management fees and loan-related charges.
Another point of interest is the company’s asset management strategy, which illustrated a focus on growing commercial real estate loans, accounting for $872.2 million. Significant collateral segments in this area include apartment buildings, hotels, and office buildings within the south-central Pennsylvania market.
In terms of balance sheet health, total deposits saw an average of $1.852 billion for the first six months of 2025, which was an improvement of approximately 18.7% compared to the same period in 2024. The overall cost of deposits saw a slight increase as it rose to 1.95% for the first half of 2025, although it dropped to 1.90% in the second quarter.
While there was an increase in nonperforming loans during this quarter, rising from $266 thousand on December 31, 2024, to $10.8 million, the corporation continues to be regarded as well-capitalized under regulatory standards.
In summary, Franklin Financial Services Corporation has made significant strides in its financial performance in the second quarter of 2025, setting a strong foundation for future growth while returning value to its shareholders through dividends. The management team expresses optimism for continued positive momentum as the year progresses, emphasizing the robustness of their financial strategies and underlying business growth.
In addition to significant net income, the bank reported wealth management fees of $2.4 million, reflecting a 7.9% increase compared to $2.2 million in Q2 2024. This growth aligns with their assets under management, totaling $1.4 billion as of June 30, 2025.
Franklin Financial’s total assets grew to approximately $2.287 billion, which is a 4.1% increase compared to $2.198 billion at the end of 2024. They also realized substantial loan growth, bringing total net loans to $1.5 billion, higher by 8.7% than the previous reporting period. Furthermore, total deposits reached $1.893 billion, showing a 4.3% increase from the end of 2024.
The company showcased impressive performance metrics, with a return on average assets (ROA) of 1.04%, a return on average equity (ROE) of 15.64%, and a net interest margin (NIM) of 3.21% on an annualized basis. This improvement signifies a considerable advancement from the previous year, where ROA was 0.59%, ROE was 9.12%, and NIM was 2.99%.
In light of these results, the Board of Directors declared a regular quarterly cash dividend of $0.33 per share on July 17, 2025. This dividend is set for payment on August 27, 2025, with a record date of August 1, 2025. The decision to declare a dividend reflects their confidence in sustained financial growth.
Looking at the financial results for the first half of 2025, net income stood at $9.8 million or $2.20 per diluted share, compared to $6.4 million or $1.43 per diluted share in the prior year—a notable 53.7% increase.
Wealth management fees for the first six months also increased to $4.6 million, up from $4.3 million year-over-year, while total noninterest income rose to $9.7 million, marking a 13.2% increase primarily due to wealth management fees and loan-related charges.
Another point of interest is the company’s asset management strategy, which illustrated a focus on growing commercial real estate loans, accounting for $872.2 million. Significant collateral segments in this area include apartment buildings, hotels, and office buildings within the south-central Pennsylvania market.
In terms of balance sheet health, total deposits saw an average of $1.852 billion for the first six months of 2025, which was an improvement of approximately 18.7% compared to the same period in 2024. The overall cost of deposits saw a slight increase as it rose to 1.95% for the first half of 2025, although it dropped to 1.90% in the second quarter.
While there was an increase in nonperforming loans during this quarter, rising from $266 thousand on December 31, 2024, to $10.8 million, the corporation continues to be regarded as well-capitalized under regulatory standards.
In summary, Franklin Financial Services Corporation has made significant strides in its financial performance in the second quarter of 2025, setting a strong foundation for future growth while returning value to its shareholders through dividends. The management team expresses optimism for continued positive momentum as the year progresses, emphasizing the robustness of their financial strategies and underlying business growth.
Topics Financial Services & Investing）
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