Core Viewpoint - Franklin Financial Services Corporation reported significant growth in total assets and deposits for the year 2024, despite a notable decline in net income due to a loss on the sale of investment securities [1][3][4]. Balance Sheet Highlights - Total assets increased to $2.198 billion as of December 31, 2024, representing a 19.7% increase from $1.836 billion at the end of 2023 [1][10]. - Total net loans rose by $139.5 million (11.2%) to $1.380 billion, driven primarily by increases in commercial real estate loans and residential real estate loans [3][10]. - Total deposits grew by $277.7 million (18.1%) to $1.816 billion, with significant contributions from noninterest-bearing deposits and time deposits [3][10]. - Shareholders' equity increased by $12.6 million year-to-date to $144.7 million, with a book value of $32.69 per share [3][10]. Income Statement Highlights - Net income for Q4 2024 was $487 thousand ($0.11 per diluted share), a decrease of 88.5% from Q3 2024 and 86.0% from Q4 2023, largely due to a $3.4 million after-tax loss on the sale of investment securities [3][10]. - Year-to-date net income for 2024 was $11.1 million ($2.51 per diluted share), down 18.4% from $13.6 million in 2023 [3][10]. - Noninterest income for Q4 2024 totaled $288 thousand, a decrease of 94.1% from Q3 2024, primarily due to the aforementioned securities loss [3][10]. Performance Ratios - Return on Assets (ROA) for 2024 was 0.54%, down from 0.78% in 2023, while Return on Equity (ROE) was 8.05%, compared to 11.39% in the previous year [3][10]. - The Net Interest Margin (NIM) for 2024 was 2.95%, down from 3.31% in 2023 [3][10]. Dividend Information - The Board of Directors declared a regular quarterly cash dividend of $0.32 per share for Q1 2025, consistent with the previous quarter [3][10]. Management Commentary - The CEO expressed optimism about the future, highlighting strong loan and deposit growth, a robust balance sheet, and ongoing investments in systems and infrastructure to support future growth [4].

Financial Performance - Net income for Q4 2024 was $487 thousand ($0.11 per diluted share), a decrease of 88.5% from $4.2 million ($0.95 per diluted share) in Q3 2024 and a decrease of 86.0% from $3.5 million ($0.79 per diluted share) in Q4 2023[2] - Year-to-date net income for 2024 was $11.1 million ($2.51 per diluted share), down 18.4% from $13.6 million ($3.10 per diluted share) in 2023[2] - Net income decreased to $487,000 in Q4 2024, down 86.0% from $3,471,000 in Q4 2023[14] - Return on average assets (ROA) dropped to 0.09% in Q4 2024, down from 0.75% in Q4 2023[14] Asset and Loan Growth - Total assets increased by 19.7% to $2.198 billion as of December 31, 2024, compared to $1.836 billion at the end of 2023[1] - Total net loans increased by $139.5 million (11.2%) to $1.380 billion at December 31, 2024, from $1.241 billion at the end of 2023[2] - Loans, net rose to $1,380,424,000, reflecting an increase of 11.3% from $1,240,933,000 in Q4 2023[14] Deposits and Income - Total deposits rose by $277.7 million (18.1%) to $1.816 billion at December 31, 2024, compared to $1.538 billion at the end of 2023[2] - Interest income for Q4 2024 was $26,856,000, up 24.8% from $21,516,000 in Q4 2023[14] - Noninterest income for Q4 2024 was $288 thousand, a decrease of 94.1% from $4.9 million in Q3 2024 and a decrease of 92.9% from $4.1 million in Q4 2023[7] - Noninterest income fell to $288,000 in Q4 2024, a decline of 92.9% compared to $4,085,000 in Q4 2023[14] Expenses and Provisions - Noninterest expense for 2024 was $55.9 million, an increase of $5.9 million (11.8%) from $50.0 million in 2023[7] - The provision for credit losses on loans was $451 thousand for Q4 2024, down from $474 thousand in Q3 2024 and $732 thousand in Q4 2023[7] - Total provision for credit losses decreased by 27.2% year-over-year to $1,983,000 for the twelve months ended December 31, 2024[14] Shareholder Returns - The Board of Directors declared a $0.32 per share regular quarterly cash dividend for Q1 2025, payable on February 26, 2025[2] - The dividend payout ratio surged to 290.14% in Q4 2024, compared to 40.23% in Q4 2023[14] Stock Performance - The book value of the Corporation's common stock increased to $32.69 per share as of December 31, 2024[4] - Tangible book value per share (non-GAAP) was $30.65 as of December 31, 2024, an increase from $28.17 a year prior[17] - Market value per share decreased to $29.90 as of December 31, 2024, down from $31.55 in Q4 2023[14]

Financial Performance - Total interest income for September 2024 was $26,053 thousand, an increase of 29.0% compared to $20,154 thousand in September 2023[7]. - Net interest income after credit loss expense for September 2024 was $14,167 thousand, up 10.4% from $12,832 thousand in September 2023[7]. - Net income for September 2024 was $4,218 thousand, an increase of 9.3% compared to $3,859 thousand in September 2023[8]. - Basic earnings per share for September 2024 was $0.96, up from $0.89 in September 2023, reflecting an increase of 7.9%[7]. - Noninterest income for the nine months ended September 2024 was $13,392 thousand, a significant increase from $10,766 thousand in the same period of 2023, representing a growth of 24.0%[7]. - Net income for the nine months ended September 30, 2024, was $10,612,000, compared to $10,127,000 for the same period in 2023, reflecting a year-over-year increase of approximately 4.8%[11]. - Net income for Q3 2024 was $4.2 million ($0.95 per diluted share), a 39.1% increase from Q2 2024 and a 9.3% increase from Q3 2023[89]. - Year-to-date net income for 2024 reached $10.6 million ($2.41 per diluted share), up 4.8% compared to the same period in 2023[89]. Expenses and Income - Total noninterest expense for the nine months ended September 2024 was $41,561 thousand, compared to $36,864 thousand in the same period of 2023, indicating an increase of 12.6%[7]. - Noninterest expense increased by $1.7 million to $13,917 thousand in Q3 2024, primarily due to higher salaries and benefits costs[103]. - The provision for credit losses on loans for September 2024 was $474 thousand, a decrease of 45.2% from $866 thousand in September 2023[7]. - The provision for credit losses was $485 thousand for Q3 2024, down from $875 thousand in Q3 2023[90]. - Noninterest income rose by $840 thousand to $4,853 thousand in Q3 2024, a 20.9% increase compared to Q3 2023, driven by higher wealth management fees and loan service charges[101]. Assets and Liabilities - Total assets as of September 30, 2024, increased to $1,200 million, reflecting a growth of 8.0% from $1,111 million as of December 31, 2023[7]. - The total cash and cash equivalents at the end of the period were $236,317,000, significantly higher than $73,953,000 at the end of September 2023, marking an increase of approximately 219.5%[11]. - The total outstanding loans increased to $1,348,386 thousand as of September 30, 2024, compared to $1,240,933 thousand at December 31, 2023, reflecting a growth of approximately 8.7%[34]. - Total deposits increased to $1,723,491 thousand from $1,537,978 thousand as of December 31, 2023, representing an increase of approximately 12.1%[73]. - The total interest-bearing liabilities rose to $1,640,311 thousand in Q3 2024, compared to $1,349,860 thousand in Q3 2023, marking an increase of 21.5%[99]. Shareholder Equity - Total shareholders' equity increased to $149,928,000 as of September 30, 2024, up from $132,136,000 at the beginning of the year, representing a growth of approximately 13.5%[9]. - Shareholders' equity increased by $17.8 million year-to-date to $149.9 million, with a book value of $33.93 per share[91]. - The Corporation's dividend payout ratio was 39.74% for the first nine months of 2024, down from 41.45% for the same period in 2023[132]. Credit Quality - The allowance for credit losses was $17,507 thousand as of September 30, 2024, compared to $16,052 thousand at December 31, 2023, showing an increase of 9.1%[34]. - The total provision for credit losses decreased to $1,483 thousand in Q3 2024 from $1,936 thousand in Q3 2023, a reduction of 23.4%[94]. - The total past due loans amount to $2,077 thousand, with 30-59 days past due at $781 thousand and 90 days or more at $351 thousand[45]. - The total nonaccrual loans as of September 30, 2024, include $43 thousand in residential real estate and $147 thousand in commercial loans[44]. Market and Economic Conditions - The Corporation's market area includes diverse industries such as warehousing, healthcare, and agriculture, providing a stable economic base for growth[136]. - The Bank's capital conservation buffer was 5.44% as of September 30, 2024, exceeding the regulatory minimum of 2.5%[75]. - The Corporation's liquidity management strategy includes regular reviews of projected net cash flows at 30 and 90-day intervals to ensure adequate funding resources[138]. Regulatory Compliance - Common Equity Tier 1 (CET1) Risk-based Capital Ratio for Franklin Financial Services Corporation was 12.08% as of September 30, 2024, up from 11.82% at December 31, 2023[76]. - Total risk-based capital ratio for Franklin Financial Services Corporation was 14.73% as of September 30, 2024, compared to 14.45% at December 31, 2023[76].

Core Insights - Franklin Financial Services Corporation reported a net income of $4.2 million for Q3 2024, a 39.1% increase from Q2 2024 and a 9.3% increase from Q3 2023 [1] - Year-to-date net income for 2024 reached $10.6 million, up 4.8% from the same period in 2023 [1] - Total assets increased by 17.2% to $2.151 billion as of September 30, 2024, compared to December 31, 2023 [2] Financial Performance - Net interest income for Q3 2024 was $14.7 million, up from $13.7 million in Q3 2023, with a net interest margin (NIM) of 2.97% [4] - Noninterest income for Q3 2024 totaled $4.9 million, a 20.9% increase from Q3 2023 [4] - Noninterest expense for Q3 2024 was $13.9 million, reflecting a 14.1% increase from the same quarter in 2023 [4] Balance Sheet Highlights - Total net loans increased by $107.5 million (8.7%) to $1.348 billion since December 31, 2023, driven by growth in commercial real estate loans [2] - Total deposits rose by $185.5 million (12.1%) to $1.723 billion as of September 30, 2024 [2] - Shareholders' equity increased by $17.8 million year-to-date to $149.9 million, with a book value of $33.93 per share [2][4] Credit Quality - The provision for credit losses was $485 thousand for Q3 2024, down from $875 thousand in Q3 2023 [4] - The Allowance for Credit Losses (ACL) for loans remained stable at 1.28% as of September 30, 2024 [4] Dividends and Shareholder Returns - A regular quarterly cash dividend of $0.32 per share was declared for Q4 2024, to be paid on November 27, 2024 [1] - The company has an open market repurchase plan for 150,000 shares, with 20,079 shares repurchased in 2024 [3]

Financial Performance - Net income for Q3 2024 was $4.2 million ($0.95 per diluted share), a 39.1% increase from Q2 2024 and a 9.3% increase from Q3 2023[1] - Year-to-date net income for 2024 was $10.6 million ($2.41 per diluted share), up 4.8% from $10.1 million in the same period of 2023[1] - Noninterest income for Q3 2024 was $4.9 million, an 11.6% increase from Q2 2024 and a 20.9% increase from Q3 2023[2] - Noninterest expense for Q3 2024 was $13.9 million, a decrease of 2.9% from Q2 2024 but an increase of 14.1% from Q3 2023[3] - Interest income for Q3 2024 increased by 35.0% year-over-year to $26,053,000, compared to $20,154,000 in Q3 2023[8] - Net interest income rose by 6.7% to $14,652,000 for Q3 2024, up from $13,707,000 in Q3 2023[8] - Noninterest income grew by 24.4% to $4,853,000 for Q3 2024, compared to $4,013,000 in Q3 2023[8] - Net income for Q3 2024 was $4,218,000, reflecting a 4.8% increase from $3,859,000 in Q3 2023[8] - Diluted earnings per share for Q3 2024 increased by 4.3% to $0.95, compared to $0.88 in Q3 2023[8] Assets and Liabilities - Total assets increased by 17.2% to $2.151 billion as of September 30, 2024, compared to $1.836 billion at December 31, 2023[1] - Total net loans rose by $107.5 million (8.7%) to $1.348 billion from $1.241 billion at year-end 2023[1] - Total deposits increased by $185.5 million (12.1%) to $1.723 billion as of September 30, 2024, from $1.538 billion at December 31, 2023[1] - Total assets as of September 30, 2024, reached $2,151,363,000, up from $1,827,910,000 a year earlier[8] - Shareholders' equity increased to $149,928,000 as of September 30, 2024, compared to $114,769,000 on the same date last year[10] Credit Losses and Provisions - The provision for credit losses on loans was $474 thousand for Q3 2024, down from $560 thousand in Q2 2024 and $866 thousand in Q3 2023[2] - Total provision for credit losses decreased by 23.4% to $485,000 for Q3 2024, down from $875,000 in Q3 2023[8] Stock and Dividends - The book value of the Corporation's common stock increased to $33.93 per share as of September 30, 2024[2] - Tangible book value per share (non-GAAP) rose to $31.89 as of September 30, 2024, from $24.24 a year ago[10] - The current quarter dividend yield was 4.25%, slightly down from 4.53% in the previous quarter[8] Taxation - The effective federal income tax rate was 17.3% for Q3 2024 and 16.9% year-to-date[3]

Financial Performance - Total assets increased to $2,039,126 thousand as of June 30, 2024, up from $1,836,039 thousand at December 31, 2023, representing an increase of 11.1%[6] - Net income for the second quarter of 2024 was $3,033 thousand, compared to $2,976 thousand in the same quarter of 2023, indicating a growth of 1.9%[7] - Basic earnings per share for the second quarter of 2024 were $0.67, slightly down from $0.68 in the same quarter of 2023[7] - Net income for the first half of 2024 was $6,394,000, a 2% increase from $6,268,000 in the same period of 2023[10] - Total comprehensive income for the first half of 2024 was $6,453,000, down 32.4% from $9,594,000 in the same period of 2023[8] Income and Expenses - Total interest income for the six months ended June 30, 2024, was $48,541 thousand, a 38.5% increase compared to $35,094 thousand for the same period in 2023[7] - Net interest income after credit loss expense was $26,767 thousand for the six months ended June 30, 2024, compared to $24,971 thousand for the same period in 2023, reflecting a growth of 7.2%[7] - Noninterest income totaled $8,538 thousand for the six months ended June 30, 2024, up from $6,754 thousand in the same period of 2023, marking a 26.3% increase[7] - Total noninterest expense for the six months ended June 30, 2024, was $27,642 thousand, compared to $24,667 thousand for the same period in 2023, representing an increase of 11.9%[7] Loans and Credit Quality - Net loans reached $1,301,302 thousand, an increase of 4.9% from $1,240,933 thousand at the end of 2023[6] - The allowance for credit losses was $17,018 thousand, compared to $16,052 thousand previously, indicating a slight increase in risk management provisions[34] - The provision for credit losses on loans was $560 thousand for the second quarter of 2024, compared to $524 thousand in the same quarter of 2023, reflecting a slight increase[7] - The corporation's provision for credit losses was $998,000, down from $1,061,000, indicating a decrease of approximately 6%[11] - The bank categorizes loans into risk categories, with ongoing monitoring of cash flow and financial performance indicators occurring at least annually[35] Shareholder Equity and Dividends - Cash dividends declared were $0.32 per share in Q2 2024, totaling $1,407,000[8] - The total number of shares outstanding increased to 4,412,374 by June 30, 2024, from 4,393,873 at the end of Q1 2024[8] - Retained earnings rose to $137,581,000 by June 30, 2024, up from $135,955,000 at the end of Q1 2024[9] - The company repurchased 14,684 shares of treasury stock in Q2 2024, costing $400,000[8] Cash Flow and Liquidity - Net cash provided by operating activities decreased to $9,736,000 from $13,385,000, a decline of approximately 27%[11] - Total cash and cash equivalents at the end of the period increased to $179,727,000 from $64,832,000, a significant increase of 177%[11] - Net cash used in investing activities was $(49,553,000), compared to $(40,767,000) in the previous year, indicating a 21% increase in cash outflow[11] - Net cash provided by financing activities rose to $196,404,000 from $27,315,000, an increase of 620%[11] Asset Quality and Valuation - The fair value of the Corporation's equity investment decreased to $352 thousand as of June 30, 2024, from $427 thousand at the end of 2023, indicating a decline of approximately 17.6%[27] - The total fair value of Available for Sale (AFS) securities is $454.465 million, down from $472.503 million on December 31, 2023, reflecting a decrease of approximately 3.1%[18] - The fair value of debt securities pledged to secure public funds, trust deposits, and FHLB loan commitments increased to $231.0 million as of June 30, 2024, compared to $207.4 million at the end of 2023, representing an increase of about 11.5%[18] - The total unrealized losses on AFS securities as of June 30, 2024, amounted to $49.563 million, compared to $49.554 million at the end of 2023, showing a marginal increase[24] Capital and Regulatory Ratios - The Bank's Common Equity Tier 1 (CET1) Risk-based Capital Ratio was 12.01% as of June 30, 2024, up from 11.82% at December 31, 2023[68] - The Bank's capital conservation buffer was 5.52% as of June 30, 2024, exceeding the regulatory minimum of 2.5%[66] - The Bank's Tier 1 Leverage Ratio was 8.38% as of June 30, 2024, down from 9.01% at December 31, 2023[68] - The Bank's Total Risk-based Capital Ratio was 14.66% as of June 30, 2024, slightly up from 14.45% at December 31, 2023[68] Future Outlook and Strategy - The company plans to focus on expanding its commercial real estate lending, particularly in agricultural and business asset sectors, to enhance its portfolio[42] - Future guidance indicates a cautious optimism for growth in both residential and commercial loan segments, with a focus on maintaining asset quality[42]

CHAMBERSBURG, Pa., July 23, 2024 /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 2024 and year-to-date 2024 results. A summary of operating results follows: Debt securities available for sale decreased $18.0 million (3.8%) due to paydowns and maturities within the portfolio. At June 30, 2024, the net unrealized loss in the portfolio was $49.3 million, esse ...

· Net income for the second quarter of 2024 was $3.0 million ($0.66 per diluted share) compared to $3.4 million ($0.77 per diluted share) for the first quarter of 2024 (a decrease of 9.8%), and $3.0 million ($0.68 per diluted share) for the second quarter of 2023. · Total assets were $2.039 billion as of June 30, 2024. · Shareholders' equity increased by $4.7 million, year-to-date, to $136.8 million, and the book value of the Corporation's common stock increased to $31.01 per share. · On July 11, 2024, the ...

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, 2024 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 ...

Exhibit 99.1 April 23, 2024 Balance Sheet Highlights Total assets at March 31, 2024 were $2.011 billion, up 9.5% from $1.836 billion at December 31, 2023. Changes in the balance sheet from December 31, 2023 to March 31, 2024 include: · Net income for the first quarter of 2024 was $3.4 million compared to $3.5 million for the fourth quarter of 2023 (a decrease of 3.2%) and $3.3 million for the first quarter of 2023 (an increase of 2.1%). Diluted earnings per share were $0.77, $0.79, and $0.75, for the respec ...