Franklin Financial Reports 2025 Q4 and Year-to-Date Results; Declares Dividend

CHAMBERSBURG, Pa., Jan. 27, 2026 /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 fourth quarter 2025 and year-to-date 2025 results.

A summary of notable operating results as of or for the fourth quarter ended December 31, 2025 follows:

A summary of notable operating results as of or for the twelve months ended December 31, 2025, follows :

Balance Sheet Highlights

Total assets on December 31, 2025, were $2.239 billion up 1.9% from $2.198 billion on December 31, 2024. Changes in the balance sheet from December 31, 2024, to December 31, 2025, include:

Income Statement Highlights – Fourth Quarter 2025 v. 2024

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

(1) NonGAAP 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 more than $2.2 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 nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 technology, the intensification of competition within the Corporation's market area, and other similar factors.

We 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 events 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 Twelve Months Ended

(Dollars in thousands, except per share data)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

% Change

Interest income

29,040

29,675

26,856

114,371

101,451

12.7

Interest expense

10,428

11,482

11,760

44,725

43,937

1.8

Net interest income

18,612

18,193

15,096

69,646

57,514

21.1

Provision for credit losses - loans

326

1,251

451

3,030

1,975

53.4

Provision for credit losses - unfunded commitments

(37)

(53)

(131)

0.0

Total provision for credit losses

289

1,198

500

2,899

1,983

0.0

Noninterest income

4,700

4,811

288

19,176

13,679

40.2

Noninterest expense

15,543

15,148

14,335

59,656

55,895

6.7

Income before income taxes

7,480

6,658

549

26,267

13,315

97.3

Income taxes

1,437

1,304

5,041

2,216

127.5

Net income

6,043

5,354

487

21,226

11,099

91.2

Diluted earnings per share

$1.35

$1.19

$0.11

$4.74

$2.51

88.8

Regular cash dividends paid

$0.33

$0.32

$1.31

$1.28

2.3

Balance Sheet Highlights (as of)

12/31/2025

9/30/2025

12/31/2024

Total assets

2,239,018

2,297,077

2,197,841

Debt securities available for sale, at fair value

454,586

469,285

508,604

Loans, net

1,540,583

1,543,515

1,380,424

Deposits

1,835,772

1,902,895

1,815,647

Other borrowings

200,000

Shareholders' equity

175,242

166,343

144,716

Assets Under Management (fair value)

Wealth Management

1,273,421

1,273,461

1,169,282

Held at third party brokers

147,880

144,902

139,872

Total assets under management

1,421,301

1,418,363

1,309,154

As of and for the Three Months Ended

For the Twelve Months Ended

Performance Ratios

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Return on average assets*

1.05 %

0.93 %

0.09 %

0.94 %

0.54 %

Return on average equity*

14.20 %

13.39 %

1.32 %

13.55 %

8.05 %

Dividend payout ratio

27.54 %

27.61 %

290.14 %

27.54 %

50.72 %

Net interest margin*

3.40 %

3.32 %

2.92 %

3.25 %

2.95 %

Net loan recoveries (chargeoffs) /average loans

0.00 %

-0.01 %

-0.02 %

0.00 %

-0.03 %

Nonperforming loans / gross loans

0.55 %

0.68 %

0.02 %

Nonperforming assets / total assets

0.38 %

0.47 %

0.01 %

Allowance for loan loss / loans

1.32 %

1.30 %

1.26 %

Book value, per share

39.11

37.15

32.69

Tangible book value (1)

37.10

35.13

30.65

Market value, per share

50.20

46.00

29.90

Market value/book value ratio

128.36 %

123.83 %

91.47 %

Market value/tangible book value ratio

135.33 %

130.93 %

97.54 %

Price/earnings multiple*

9.30

9.66

67.95

10.59

11.91

Current quarter dividend yield*

2.61 %

2.87 %

4.28 %

* Annualized

(1) NonGAAP measurement. See GAAP versus NonGAAP disclosure

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

NonGAAP

(Dollars in thousands, except per share)

As of

December 31, 2025

September 30, 2025

December 31, 2024

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

Shareholders' equity

175,242

166,343

144,716

Less intangible assets

(9,016)

Shareholders' equity (non-GAAP)

166,226

157,327

135,700

Shares outstanding (in thousands)

4,481

4,478

4,427

Tangible book value (non-GAAP)

37.10

35.13

30.65

Three Months

Twelve Months

Ended

Summary Results Excluding Securities Losses (non-GAAP)

12/31/24

12/31/25

12/31/24

Securities losses as reported

—

(4,267)

—

(4,267)

Securities losses as reported, net of tax benefit (21%) (non-GAAP)

—

(3,371)

—

(3,371)

Nonintertest income as reported

4,700

288

19,176

13,679

Plus securities losses

—

4,267

—

4,267

Nonintertest income excluding securities losses (non-GAAP)

4,700

4,555

19,176

17,946

Net income as reported

6,043

487

21,226

11,099

Plus securities losses, net of tax benefit

—

3,371

—

3,371

Net iucome excluding securities losses net of tax benefit (non-GAAP)

6,043

3,858

21,226

14,470

ROA as reported

1.05 %

0.09 %

0.94 %

0.78 %

ROA excluding securities losses net of tax benefit (non-GAAP)

1.05 %

0.71 %

0.94 %

0.83 %

ROE as reported

14.20 %

1.32 %

13.55 %

11.39 %

ROE excluding securities losses net of tax benefit (non-GAAP)

14.20 %

10.50 %

13.55 %

12.12 %

Dividend payout ratio as reported

24.46 %

290.14 %

27.54 %

41.15 %

Dividend payout ratio excluding securities losses net of tax benefit (non-GAAP)

24.46 %

36.63 %

27.54 %

38.67 %

SOURCE Franklin Financial Services Corporation