#USA #Chambersburg #Franklin Financial #F&M Trust #Chambersburg PA

Franklin Financial Services Corporation Reports Q4 and Year-to-Date Results for 2024

Chambersburg, PA – January 28, 2025 – Franklin Financial Services Corporation (NASDAQ: FRAF), the parent company of F&M Trust, has disclosed its financial results for the fourth quarter of 2024, along with year-to-date data. This report represents key metrics that shareholders and stakeholders should evaluate as the company navigates through recent economic difficulties.

In Q4 of 2024, Franklin Financial reported a net income of $487,000, translating to $0.11 per diluted share. This figure shows a striking decline of 88.5% compared to $4.2 million in the prior quarter and represents a drop of 86% from the $3.5 million recorded in Q4 of 2023. This decrease is primarily attributed to a substantial $3.4 million after-tax loss incurred from the sale of investment securities linked to portfolio restructuring activities undertaken during the quarter. The details surrounding this restructuring can be accessed in a Form 8-K report filed on October 18, 2024.

When analyzing the year-to-date performance, total net income for 2024 stood at $11.1 million or $2.51 per diluted share compared to $13.6 million and $3.10 per diluted share over the same duration in 2023, marking an 18.4% decline. This year-to-date performance was also influenced by the aforementioned loss on securities.

The fourth quarter of 2024 saw a $500,000 provision for credit losses, slightly up from $485,000 in Q3 2024, but lower than the $788,000 recorded in Q4 2023. Meanwhile, the total assets of Franklin Financial grew to $2.198 billion, reflecting a robust increase of 19.7% year-over-year. The bank's total net loans surged by $139.5 million (11.2%) to reach $1.380 billion, while total deposits escalated by $277.7 million (18.1%) to $1.816 billion.

Additionally, as of December 31, 2024, borrowings from the Federal Home Loan Bank of Pittsburgh amounted to $200 million, underpinning the bank’s financial resilience. Shareholders’ equity also exhibited growth, rising by $12.6 million to $144.7 million.

In terms of profitability metrics, the year-to-date Return on Assets (ROA) was recorded at 0.54%, and the Return on Equity (ROE) at 8.05%, a decrease from 0.78% and 11.39% respectively for 2023. The Net Interest Margin (NIM) was 2.95%, down from 3.31% a year prior.

On January 16, 2025, the Board of Directors announced a quarterly cash dividend of $0.32 per share, applicable for Q1 2025, to be disbursed on February 26, 2025, to shareholders listed at the close of business on February 7, 2025.

Highlights from the balance sheet indicate notable movements in various areas. Total debt securities designated for sale rose by $36.1 million to $508.6 million, while the net unrealized loss in this investment portfolio decreased, showing improved conditions compared to year-end 2023.

The bank’s operational segments, particularly within commercial real estate, saw substantial growth, contributing significantly to the increase in net loans. For instance, commercial real estate loans executed a jump to $803.4 million, with formidable sectors including apartment buildings and hotels.