Franklin Financial Services (FRAF) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $5.4 million ($1.19 per diluted share), a 26.9% increase from $4.2 million ($0.95 per diluted share) in Q3 2024, but a 9.4% decrease from $5.9 million ($1.32 per diluted share) in Q2 2025 [2]. - Net income for Q3 2025 was $5,354,000, a 43.1% increase from $4,218,000 in Q3 2024 [15]. - Diluted earnings per share for Q3 2025 was $1.19, up 25.3% from $0.95 in Q3 2024 [15]. - The effective federal income tax rate was 19.6% for Q3 2025, up from 17.3% for the same period in 2024 [8]. - The dividend payout ratio for Q3 2025 was 27.61%, a decrease from 33.45% in Q3 2024 [15]. Assets and Loans - Total assets reached $2.297 billion on September 30, 2025, reflecting a 4.5% increase from $2.198 billion at year-end 2024 [4]. - Total net loans increased to $1.544 billion, an 11.8% rise from December 31, 2024, driven by a $101.3 million increase in commercial real estate loans [4]. - Loans, net increased to $1,543,515,000 as of September 30, 2025, compared to $1,348,386,000 a year prior [15]. Deposits and Equity - Total deposits amounted to $1.903 billion, a 4.8% increase from December 31, 2024, with noninterest-bearing accounts comprising 16.4% of total deposits [4]. - Shareholders' equity increased by $21.6 million to $166.3 million as of September 30, 2025, with retained earnings rising by $10.8 million [4]. - Shareholders' equity rose to $166,343,000 as of September 30, 2025, from $149,928,000 a year earlier [15]. Income and Fees - Wealth management fees for Q3 2025 were $2.3 million, an 8.0% increase from $2.1 million in Q3 2024, with assets under management totaling $1.4 billion [2]. - Net interest income for Q3 2025 was $18.2 million, a 24.2% increase from $14.7 million in Q3 2024, primarily due to higher interest income from the loan portfolio [8]. - Interest income for Q3 2025 reached $29,675,000, up 14.4% from $26,053,000 in Q3 2024 [15]. - Net interest income increased by 20.3% to $51,036,000 for the nine months ended September 30, 2025, compared to $42,418,000 for the same period in 2024 [15]. - Noninterest income for the first nine months of 2025 totaled $14.5 million, an 8.1% increase from $13.4 million in the same period of 2024 [14]. Credit Losses - The provision for credit losses on loans was $1.3 million for Q3 2025, compared to $474 thousand for Q3 2024, reflecting a specific reserve of $894 thousand [8]. - Total provision for credit losses rose by 76.1% to $2,611,000 for the nine months ended September 30, 2025, from $1,483,000 in the prior year [15]. Market Performance - The market value per share increased to $46.00, reflecting a 52.5% rise from $30.13 in Q3 2024 [15].