Franklin Financial Reports Third Quarter and Year-to-Date 2025 Results; Declares Dividend

CHAMBERSBURG, Pa., Oct. 28, 2025 /PRNewswire/ -- Franklin Financial Services Corporation (the Corporation) (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank) headquartered in Chambersburg, PA, reported its third quarter and year-to-date 2025 financial results.

A summary of notable operating results as of or for the third quarter ended September 30, 2025, follows:

A summary of notable operating results as of or for the nine months ended September 30, 2025, follows:

Balance Sheet Highlights

Total assets on September 30, 2025, were $2.297 billion, up 4.5% from $2.198 billion on December 31, 2024. Significant changes in the balance sheet from December 31, 2024, to September 30, 2025 include:

Income Statement Highlights – Third Quarter Comparison 2025 v. 2024

Income Statement Highlights – Year-to-date Comparison 2025 v. 2024

(1) Non-GAAP measure. See GAAP versus Non-GAAP Presentation that follows.

Additional information on the Corporation is available on our website at: www.franklinfin.com/Presentations.

Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of $2.3 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-three community banking locations in Franklin, Cumberland, Dauphin, Fulton and Huntingdon Counties PA, and Washington County MD. Franklin Financial stock is trading on the Nasdaq Stock Market under the symbol FRAF. Please visit our website for more information, www.franklinfin.com.

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements when filed with the Securities and Exchange Commission ("SEC''). Accordingly, the financial information in this announcement is subject to change .

Certain statements appearing herein which are not historical in natur e are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of I 995. Such forward-looking statements refer to a future period or periods, reflecting management 's current views as to likely future developments, and use words "may," "will," "expect," "believe," "estimate," "anticipate," or similar terms. Because forward-looking statements involve certain risks, uncertainties and other factors over which Franklin Financial Services Corporation has no direct control, actual results could differ materially from those contemplated in such statements. These factors include (but are not limited to) the following: changes in interest rates, changes in the rate of inflation, general economic conditions and their effect on the Corporation and our customers, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in te c hnology , the intensification of competition within the Corporation's market area, and other similar factors.

W e caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date . The Corporation does not revise or update these forward-looking statements to reflect eve nts or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8- K.

FRANKLIN FINANCIAL SERVICES CORPORATION

Financial Highlights (Unaudited)

Earnings Summary

For the Three Months Ended

For the Nine Months Ended

(Dollars in thousands, except per share data)

9/30/2025

6/30/2025

9/30/2024

9/30/2025

9/30/2024

% Change

Interest income

29,675

28,600

26,053

85,333

74,594

14.4 %

Interest expense

11,482

11,362

11,401

34,297

32,176

6.6 %

Net interest income

18,193

17,238

14,652

51,036

42,418

20.3 %

Provision for credit losses - loans

1,251

704

474

2,704

1,524

77.4 %

(Reversal of) provision for credit losses - unfunded commitments

(53)

(69)

(93)

(41)

126.8 %

Total provision for credit losses

1,198

635

485

2,611

1,483

76.1 %

Noninterest income

4,811

5,103

4,853

14,475

13,392

8.1 %

Noninterest expense

15,148

14,389

13,917

44,114

41,561

6.1 %

Income before income taxes

6,658

7,317

5,103

18,786

12,766

47.2 %

Income taxes

1,304

1,409

885

3,603

2,154

67.3 %

Net income

5,354

5,908

4,218

15,183

10,612

43.1 %

Diluted earnings per share

1.19

1.32

0.95

3.39

2.41

40.7 %

Regular cash dividends declared

0.33

0.32

0.98

0.96

2.1 %

Balance Sheet Highlights (as of )

9/30/2025

6/30/2025

9/30/2024

Total assets

2,297,077

2,286,745

2,151,363

Debt securities available for sale

469,285

481,259

466,485

Loans, net

1,543,515

1,500,035

1,348,386

Deposits

1,902,895

1,893,471

1,723,491

Other borrowings

200,000

240,000

Shareholders' equity

166,343

157,364

149,928

Assets Under Management (fair value)

Wealth Management

1,273,461

1,221,333

1,176,879

Held at third party brokers

144,902

138,763

144,168

Total assets under management

1,418,363

1,360,096

1,321,047

As of or for the Three Months Ended

As of or for the Nine Months Ended

Performance Ratios

9/30/2025

6/30/2025

9/30/2024

9/30/2025

9/30/2024

Return on average assets*

0.93 %

1.04 %

0.80 %

0.90 %

0.69 %

Return on average equity*

13.39 %

15.64 %

11.86 %

13.31 %

10.47 %

Dividend payout ratio

27.61 %

24.92 %

33.45 %

28.76 %

39.74 %

Net interest margin*

3.32 %

3.21 %

2.97 %

3.20 %

2.95 %

Net loans recovered (charged-off)/average loans*

-0.01 %

0.00 %

-0.02 %

0.00 %

-0.01 %

Nonperforming loans / gross loans

0.68 %

0.71 %

0.03 %

Nonperforming assets / total assets

0.47 %

0.02 %

Allowance for credit losses / loans

1.30 %

1.26 %

1.28 %

Book value, per share

37.15

35.22

33.93

Tangible book value (1)

35.13

33.20

31.89

Market value, per share

46.00

34.63

30.13

Market value/book value ratio

123.83 %

98.31 %

88.80 %

Market value/tangible book value ratio

130.93 %

104.28 %

94.49 %

Price/earnings multiple*

9.66

6.56

7.93

Current quarter dividend yield*

2.87 %

3.81 %

4.25 %

* Annualized

(1) Non-GAAP measurement. See GAAP versus Non-GAAP disclosure reconciliation

GAAP versus non-GAAP Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets. By eliminating intangible assets (Goodwill), the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. In the event of such a disclosure or release, the Securities and Exchange Commission's Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The following table shows the calculation of the non-GAAP measurements.

Non-GAAP

(Dollars in thousands, except per share)

As of

September 30, 2025

June 30, 2025

September 30, 2024

Tangible Book Value (per share) (non-GAAP)

Shareholders' equity

166,343

157,364

149,928

Less intangible assets

(9,016)

Tangible book value (non-GAAP)

157,327

148,348

140,912

Shares outstanding (in thousands)

4,478

4,468

4,419

Tangible book value per share (non-GAAP)

35.13

33.20

31.89

SOURCE Franklin Financial Services Corporation