Franklin Financial Reports First Quarter 2025 Results; Declares Dividend

Core Insights - Franklin Financial Services Corporation reported a strong financial performance for the first quarter of 2025, with net income increasing by 16.7% year-over-year to $3.9 million, or $0.88 per diluted share [3][12] - The company experienced growth in total assets, net loans, and deposits, indicating a positive trend in its operational metrics [3][12] Balance Sheet Highlights - Total assets reached $2.257 billion as of March 31, 2025, reflecting a 2.7% increase from $2.198 billion at the end of 2024 [3][12] - Net loans increased by $57.3 million (4.2%) since year-end 2024, primarily driven by a $39.2 million increase in commercial real estate loans [3][12] - Total deposits grew by $51.9 million (2.9%) from the prior year-end, with a cost of 2.02% for the quarter [3][12] Income Statement Highlights - Net interest income for the first quarter of 2025 was $15.6 million, up from $15.1 million in the fourth quarter of 2024 and $13.6 million in the first quarter of 2024 [3][12] - Noninterest income totaled $4.6 million for the first quarter of 2025, a significant increase from $288 thousand in the fourth quarter of 2024 [11][12] - The provision for credit losses was $779 thousand, up from $500 thousand in the fourth quarter of 2024, attributed to loan growth [3][11] Performance Ratios - Return on Average Assets (ROA) was 0.72% and Return on Average Equity (ROE) was 10.80% for the first quarter of 2025, compared to 0.67% and 10.21% respectively for the same period in 2024 [3][12] - The Net Interest Margin (NIM) improved to 3.05% on an annualized basis, up from 2.88% in the first quarter of 2024 [3][12] Shareholder Information - The Board of Directors declared a regular quarterly cash dividend of $0.33 per share for the second quarter of 2025, representing a 3.1% increase over the previous quarter [3][12] - Shareholders' equity increased by $6.7 million to $151.4 million as of March 31, 2025 [3][12] Management Commentary - The CEO highlighted the strategic growth initiatives undertaken in 2023 and 2024, which have contributed to the improved financial performance [5] - The CEO announced retirement plans, expressing confidence in the incoming leadership [5]