Franklin Financial Services (FRAF) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $6.0 million ($1.35 per diluted share), a 12.9% increase from $5.4 million ($1.19 per diluted share) in Q3 2025 and significantly higher than $487 thousand ($0.11 per diluted share) in Q4 2024[2] - Net income for Q4 2025 was $6,043,000, a significant increase of 91.2% from $487,000 in Q4 2024[16] - Diluted earnings per share rose to $1.35 in Q4 2025, compared to $0.11 in Q4 2024, marking an increase of 1,227.3%[16] - The return on average assets (ROA) for Q4 2025 was 1.05%, and return on average equity (ROE) was 14.20%, compared to ROA of 0.09% and ROE of 1.32% in Q4 2024[2] - The return on average assets improved to 1.05% for Q4 2025, compared to 0.09% in Q4 2024[16] Assets and Equity - Total assets reached $2.239 billion on December 31, 2025, reflecting a 1.9% increase from $2.198 billion at year-end 2024[4] - Total assets as of December 31, 2025, were $2,239,018,000, a slight increase from $2,197,841,000 a year earlier[16] - Shareholders' equity increased by $30.5 million (21.1%) from December 31, 2024, with retained earnings rising by $15.4 million net of dividends[5] - Shareholders' equity increased to $175,242,000 as of December 31, 2025, up from $144,716,000 in the previous year[16] Loans and Deposits - Net loans increased by $160.2 million (11.6%) year-over-year, totaling $1.541 billion on December 31, 2025, driven by growth in commercial real estate and residential loans[4] - Total deposits were $1.836 billion, up 1.1% from $1.816 billion at year-end 2024, despite a $65.0 million reduction in brokered deposits during Q4 2025[4] Income Sources - Interest income for Q4 2025 was $29,040,000, up 8.1% from $26,856,000 in Q4 2024[16] - Net interest income increased by 21.1% year-over-year, reaching $69,646,000 for the twelve months ended December 31, 2025[16] - Noninterest income for Q4 2025 totaled $4.7 million, a significant increase from $288 thousand in Q4 2024, driven by higher wealth management fees and gains on loan sales[7] - Noninterest income surged by 40.2% to $19,176,000 for the twelve months ended December 31, 2025, compared to $13,679,000 in the previous year[16] - Wealth management fees for Q4 2025 were $2.3 million, a 4.6% increase from $2.2 million in Q4 2024, with assets under management at $1.421 billion[2] Credit Quality - The provision for credit losses on loans was $326 thousand for Q4 2025, down from $451 thousand in Q4 2024, indicating improved credit quality[7] - Total provision for credit losses increased by 46.2% year-over-year to $2,899,000 for the twelve months ended December 31, 2025[16] Dividends - The Board of Directors declared a quarterly cash dividend of $0.33 per share for Q1 2026, representing a 3.1% increase over the Q1 2025 dividend[2] Market Performance - The market value per share reached $50.20, reflecting a 67.5% increase from $29.90 a year ago[16]