#United States #Chambersburg #Franklin Financial #FM Trust

Franklin Financial Services Reports Strong Financial Results

On October 28, 2025, Franklin Financial Services Corporation, trading on NASDAQ under the symbol FRAF, shared its financial performance for the third quarter and year-to-date results of 2025. The bank holding company, headquartered in Chambersburg, Pennsylvania, has shown substantial growth in multiple financial metrics, emphasizing its resilience and operational effectiveness amidst market fluctuations.

Key Financial Highlights

In the third quarter ending September 30, 2025, Franklin Financial reported a net income of $5.4 million or $1.19 per diluted share. This marks a notable increase of 26.9% from $4.2 million or $0.95 per diluted share reported during the same quarter in 2024. However, there was a decrease of 9.4% in net income compared to the second quarter of 2025, which recorded $5.9 million or $1.32 per share.

The Corporation's wealth management fees also saw a rise, reaching $2.3 million, which is an 8.0% increase from $2.1 million in the third quarter last year. Assets under management totaled $1.4 billion on September 30, 2025, further solidifying the company's position in the financial sector.

Growth in Assets and Loans

Franklin Financial's total assets grew to $2.297 billion, an increase of 4.5% from $2.198 billion at the end of 2024. The net loans also increased significantly to $1.544 billion, which is an 11.8% growth compared to the previous year-end. Furthermore, total deposits reached $1.903 billion, reflecting a 4.8% rise since December 31, 2024, primarily driven by growth in money management accounts.

Performance Metrics

The performance indicators for the third quarter demonstrated improved returns. The Return on Average Assets (ROA) was 0.93%, while the Return on Average Equity (ROE) hit 13.39%. The Net Interest Margin (NIM) stood at 3.32% on an annualized basis. These metrics marked significant improvements from the prior year's figures of 0.80% ROA, 11.86% ROE, and 2.97% NIM.

Dividend Declaration

In a positive move for shareholders, the board of directors declared a $0.33 per share cash dividend for the fourth quarter of 2025. This amount represents a 3.1% increase over the previous year’s fourth-quarter dividend. The dividend will be distributed on November 26, 2025, to shareholders of record as of November 7, 2025.

Year-to-Date Performance

For the nine-month period ending September 30, 2025, net income was $15.2 million, translating into $3.39 per diluted share—a substantial increase of 43.1% from $10.6 million last year. Wealth management fees for this period increased by 8.3%, indicating strong performance in service offerings.

The year-to-date metrics also show improvement in performance ratios. The ROA reached 0.90%, the ROE stood at 13.31%, and the NIM was reported at 3.20%. These improvements signal effective management strategies and enhanced financial health.

Balance Sheet Insights

Franklin Financial showcases a robust balance sheet with $2.297 billion in total assets as of September 30, 2025. The company noted a decrease in debt securities due to paydowns, while loans increased significantly. The commercial real estate loan portfolio, which makes up a substantial part of total loans, amounts to $904.6 million, with a diversified collateral base.

With substantial growth in equity—now $166.3 million—and a tangible book value of $35.13 per share, the Corporation is well-positioned in the market. It was also highlighted that approximately 88% of the deposits are federally insured or collateralized, adding a layer of safety for investors.

Conclusion

Franklin Financial Services Corporation’s financial results for the third quarter and year-to-date 2025 indicate a solid financial footing, characterized by healthy growth in net income, asset management, and loan growth. The dividend declaration further assures stakeholders of the company’s commitment to rewarding its investors. As a leader in the local banking sector, Franklin Financial’s performance reflects its strategic initiatives and strong market presence within the communities it serves.

For more detailed information on Franklin Financial Services, please visit their official website.