UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25-14 ...

Shares of Franklin Financial Services Corporation (FRAF) have declined 6.2% since reporting results for the second quarter of 2025 on July 22. In contrast, the S&P 500 index has risen 0.9% over the same period. Despite this post-earnings dip, FRAF has seen a significant rally of 23.7% over the past month compared with 3.9% growth in the S&P 500.Robust Y/Y Financial PerformanceFranklin Financial delivered strong second-quarter results, with net income surging 94.8% year over year to $5.9 million, or $1.32 pe ...

CHAMBERSBURG, Pa., July 22, 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 second quarter and year-to-date 2025 financial results.A summary of notable operating results as of or for the second quarter ended June 30, 2025, follows: Net Income: $5.9 million ($1.32 per diluted share) compared to $3.0 million ($0.66 per diluted share) for the second quarter of 2024, an ...

Exhibit 99.1 July 22, 2025 Franklin Financial Reports Second Quarter and Year-to-Date 2025 Results; Declares Dividend (CHAMBERSBURG, PA) Franklin Financial Services Corporation (the Corporation) (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank) headquartered in Chambersburg, PA, reported its second quarter and year-to-date 2025 financial results. A summary of notable operating results as of or for the second quarter ended June 30, 2025 follows: A summary of notable operating results as of or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25-1 ...

Core Viewpoint - Franklin Financial Services Corporation (FRAF) has shown resilience in its stock performance despite a recent decline, reflecting renewed investor confidence driven by solid quarterly results [1] Earnings & Revenue Performance - The company reported a first-quarter 2025 net income of $3.9 million, or 88 cents per diluted share, a 16.7% increase from $3.4 million, or 77 cents per share, in the first quarter of 2024 [2] - Total revenue increased, with net interest income rising 15.2% to $15.6 million from $13.6 million year-over-year, and non-interest income improving 8.9% to $4.6 million, primarily due to higher wealth management fees [3] Balance Sheet Expansion - Total assets grew 12.2% year-over-year to $2.26 billion as of March 31, 2025, with net loans increasing 14% to $1.44 billion, driven by commercial real estate loans [4] - Deposit balances expanded 19.8% year-over-year to $1.87 billion, with significant growth in money management and non-interest-bearing checking accounts [5] Management Commentary - Outgoing CEO Tim Henry attributed the improved performance to previous groundwork, including infrastructure development and disciplined balance sheet management [6] - Henry expressed satisfaction with the strong first-quarter results and emphasized ongoing efforts to enhance efficiency and profitability [7] Performance Drivers - Loan growth of $57.3 million from the end of 2024 necessitated a provision for credit losses of $779,000, reflecting a cautious lending posture consistent with rising loan balances [8] - The yield on interest-earning assets improved to 5.25% from 5.03%, while the cost of interest-bearing liabilities increased to 2.64%, compressing spreads [8] Expense Management - Non-interest expenses rose 9.7% year-over-year to $14.6 million due to higher salaries, data processing, and FDIC insurance costs, but the bank's efficiency remains manageable relative to income generation [9] Dividend and Shareholder Value - The company declared a dividend of 33 cents per share for the second quarter, a 3.1% increase from the first quarter, indicating management's confidence in sustained earnings [10] - An open market repurchase plan for up to 150,000 shares was authorized, reflecting management's intent to enhance shareholder value [12] Future Outlook - With a stable capital base, a growing asset portfolio, and a disciplined expense structure, Franklin Financial is well-positioned for continued growth under new leadership [13]

Net income for the first quarter of 2025 was $3.9 million ($0.88 per diluted share) compared to $487 thousand ($0.11 per diluted share) for the fourth quarter of 2024 (an increase of 705%) and $3.4 million ($0.77 per diluted share) for the first quarter of 2024, an increase of 16.7%. The results of the fourth quarter of 2024 were affected by a $3.4 million after-tax loss on the sale of investment securities sold as part of partial portfolio restructuring. Net income for the first quarter of 2025 would have ...

Financial Performance - Net income for Q1 2025 was $3.9 million ($0.88 per diluted share), a 16.7% increase from $3.4 million ($0.77 per diluted share) in Q1 2024[2] - Net income for Q1 2025 reached $3,922,000, significantly higher than $3,361,000 in Q1 2024, marking a 16.67% increase[11] - Diluted earnings per share increased to $0.88, compared to $0.77 in Q1 2024, reflecting a growth of 14.29%[11] - Return on Average Assets (ROA) improved to 0.72% and Return on Average Equity (ROE) increased to 10.80% for Q1 2025[2] - Return on average assets improved to 0.72%, compared to 0.67% in the same quarter last year[11] Asset and Loan Growth - Total assets increased to $2.257 billion, up 2.7% from $2.198 billion at year-end 2024[2] - Total assets as of March 31, 2025, were $2,257,478,000, up from $2,011,614,000 a year earlier, representing a growth of 12.23%[11] - Total net loans rose by $57.3 million (4.2%) since December 31, 2024, primarily driven by a $39.2 million increase in commercial real estate loans[3] - Loans, net, increased to $1,437,747,000, a rise of 14.03% from $1,261,062,000 in Q1 2024[11] Income and Dividends - Net interest income for Q1 2025 was $15.6 million, compared to $15.1 million in Q4 2024 and $13.6 million in Q1 2024[4] - Net interest income rose to $15,606,000, up 15.06% compared to $13,553,000 in the same quarter last year[11] - Interest income for Q1 2025 was $27,058,000, an increase of 9.36% from $23,809,000 in Q1 2024[11] - Noninterest income totaled $4.6 million for Q1 2025, significantly up from $288 thousand in Q4 2024[4] - A quarterly cash dividend of $0.33 per share was declared for Q2 2025, representing a 3.1% increase over the previous quarter[2] - The dividend payout ratio for Q1 2025 was 36.16%, a significant decrease from 41.62% in Q1 2024[11] Credit Loss Provisions - The provision for credit losses was $779 thousand for Q1 2025, an increase from $452 thousand in Q1 2024, due to loan growth[2] - Total provision for credit losses was $779,000, up from $452,000 in Q1 2024, indicating a 72.1% increase[11] Shareholder Equity - Shareholders' equity increased by $6.7 million to $151.4 million at March 31, 2025[3] Market Performance - The market value per share increased to $35.45, up from $26.20 in Q1 2024, reflecting a growth of 35.5%[11]

Core Viewpoint - Zacks Investment Research has initiated coverage of Franklin Financial Services Corporation (FRAF) with an "Outperform" recommendation, emphasizing the bank's strong growth trajectory, resilient balance sheet, and attractive shareholder return profile [1] Group 1: Financial Performance - Franklin Financial has achieved impressive loan growth of 11.2%, with its loan book reaching $1.4 billion, driven by expanding commercial real estate and residential lending portfolios [2] - Deposit growth has surged 18.1% year over year to $1.82 billion, with 85% of deposits being insured or collateralized, providing funding stability [3] - The Wealth Management division has seen assets under management rise 6.4% to $1.31 billion, with fee income increasing nearly 14% year over year, contributing to non-interest income streams [4] Group 2: Strategic Initiatives - In late 2024, Franklin Financial restructured its securities portfolio, incurring a short-term after-tax loss of $3.4 million to position for higher future yields, while adjusted return metrics remain solid [5] - The bank's asset quality is strong, with non-performing assets at 0.01% of total assets and allowances for credit losses at 1.26%, reflecting disciplined underwriting and risk management [6] - Technology investments, including the integration of salesforce, are expected to enhance customer insights and operational efficiency, unlocking margin expansion in the future [6] Group 3: Shareholder Returns - Franklin Financial is committed to rewarding shareholders, with a risk-based capital ratio of 13.85%, an 8.8% rise in tangible book value, a dividend yield of 4.28%, and an active share repurchase plan [7] - Despite a strong stock rally, FRAF shares remain attractively priced below historical valuation ranges and at a discount to industry averages, indicating potential upside for investors [10]

Financial Performance - Net income for 2024 was $11,099 thousand, down from $13,598 thousand in 2023, a decrease of 18.4%[295] - Basic earnings per share decreased to $2.52 in 2024 from $3.11 in 2023, a decline of 15.9%[293] - Noninterest income decreased to $13,679 thousand in 2024 from $14,851 thousand in 2023, a decline of 7.9%[293] - Total noninterest expense increased to $55,895 thousand in 2024, up from $50,011 thousand in 2023, reflecting an increase of 11.7%[293] - The income tax provision for 2024 was $2,216 thousand, representing an effective tax rate of 16.6%, compared to $2,155 thousand and 13.7% in 2023[412] Asset Growth - The Corporation's total assets increased to $2,197,841 thousand in 2024 from $1,836,039 thousand in 2023, representing a growth of approximately 19.7%[290] - Cash and cash equivalents increased significantly to $203,613 thousand as of December 31, 2024, compared to $23,140 thousand at the end of 2023[300] - Total deposits rose to $1,815,647 thousand in 2024, up from $1,537,978 thousand in 2023, reflecting a growth of approximately 18.1%[290] - The Corporation's total shareholders' equity rose to $144,716 thousand in 2024 from $132,136 thousand in 2023, representing a growth of about 9.5%[291] Loan Portfolio - The net loans increased to $1,380,424 thousand in 2024, compared to $1,240,933 thousand in 2023, marking an increase of approximately 11.3%[290] - The loan portfolio increased to $1,398,077 thousand in 2024 from $1,256,985 thousand in 2023, reflecting a growth of approximately 11.2%[380] - Residential real estate loans for 1-4 family properties rose to $322,835 thousand in 2024, up from $277,849 thousand in 2023, indicating an increase of 16.2%[380] - Commercial real estate loans increased to $803,365 thousand in 2024, compared to $703,767 thousand in 2023, representing a growth of 14.2%[380] Credit Losses and Allowance - The allowance for credit losses (ACL) increased to $17,653 thousand in 2024 from $16,052 thousand in 2023, indicating a rise of 10%[290] - The allowance for credit losses was $17,653 thousand in 2024, up from $16,052 thousand in 2023, reflecting a rise of 10%[380] - The Corporation evaluates the adequacy of the ACL based on past loan loss experience and current economic conditions[324] - Management believes the allowance for credit losses as of December 31, 2024, is adequate based on ongoing assessments[386] Interest Income and Rates - Net interest income is projected to increase by 4.4% to $64,596 thousand with a +300 basis points change in interest rates[277] - Total interest income increased to $101,451 thousand in 2024 from $76,762 thousand in 2023, representing a growth of 32.2%[293] - Net interest income after provision for credit loss expense rose to $55,531 thousand in 2024, compared to $50,913 thousand in 2023, an increase of 9.3%[293] Capital and Equity - The Bank's capital conservation buffer was 4.96% as of December 31, 2024, indicating it was "well capitalized" under Basel III requirements[355] - The Corporation's Common Equity Tier 1 Risk-based Capital Ratio was 11.31% as of December 31, 2024, exceeding the minimum requirement of 4.50%[361] - The Bank's Total Risk-based Capital Ratio was 12.96% as of December 31, 2024, above the minimum requirement of 10.00%[361] Dividends and Shareholder Returns - The company declared cash dividends of $1.28 per share in both 2024 and 2023, with total dividends paid of $5,629 thousand in 2024[297] - The Dividend Reinvestment Plan (DRIP) contributed $1.7 million to capital in 2024, with $1.0 million from reinvested dividends and $730,000 from optional cash purchases[446] Risk Management - The Corporation has no foreign currency exchange rate risk, commodity price risk, or material equity price risk, but is exposed to interest rate risk[270] - The financial simulation modeling forecasts net interest income and economic value of equity under various interest rate environments, measured at least quarterly[273] Pension and Employee Benefits - The total net periodic pension cost increased from $99 thousand in 2023 to $168 thousand in 2024, reflecting changes in service and interest costs[425] - The interest cost for the defined benefit pension plan was $769 thousand in 2024, slightly down from $806 thousand in 2023[425] - The Corporation's 401(k) plan expense remained consistent at $1.3 million for both 2024 and 2023, indicating stable employee participation and matching contributions[421] Legal and Compliance - No material legal proceedings are pending against the Corporation that would have a material adverse effect on its financial position[456] - Management does not anticipate that the ultimate aggregate liability from litigation will materially affect the Corporation's financial position[455]