Franklin Financial Reports Third Quarter and Year-to-Date 2025 Results; Declares Dividend

Core Insights - The company reported a net income of $5.4 million for Q3 2025, representing a 26.9% increase from $4.2 million in Q3 2024, but a 9.4% decrease from $5.9 million in Q2 2025 [3][11] - Total assets reached $2.297 billion as of September 30, 2025, marking a 4.5% increase from $2.198 billion at year-end 2024 [2][3] - The company declared a quarterly cash dividend of $0.33 per share for Q4 2025, a 3.1% increase over the previous year's dividend [3] Balance Sheet Highlights - Total assets on September 30, 2025, were $2.297 billion, up 4.5% from $2.198 billion on December 31, 2024 [2] - Debt securities available for sale decreased by $39.3 million (7.7%) primarily due to paydowns [2] - Net loans increased by $163.1 million (11.8%) over the year-end 2024 balance, with commercial real estate loans contributing significantly [2] Income Statement Highlights - Net interest income for Q3 2025 was $18.2 million, an increase of 24.2% from $14.7 million in Q3 2024, driven by higher interest income on loans [11] - Noninterest income totaled $4.8 million for Q3 2025, a slight decrease of 0.9% from $4.9 million in Q3 2024 [11] - Noninterest expense for Q3 2025 was $15.1 million, an increase of 8.8% from $13.9 million in Q3 2024, primarily due to higher salaries and employee benefits [11] Performance Metrics - Return on Average Assets (ROA) was 0.93% for Q3 2025, up from 0.80% in Q3 2024 [3][13] - Return on Average Equity (ROE) was 13.39% for Q3 2025, compared to 11.86% in Q3 2024 [3][13] - Net Interest Margin (NIM) improved to 3.32% for Q3 2025 from 2.97% in Q3 2024 [3][13] Wealth Management - Wealth management fees were $2.3 million for Q3 2025, an increase of 8.0% from $2.1 million in Q3 2024 [3] - Assets under management reached $1.4 billion as of September 30, 2025 [3] Shareholder Equity - Shareholders' equity increased by $21.6 million during the first nine months of 2025 to $166.3 million as of September 30, 2025 [4] - The tangible book value of the Corporation's common stock was $35.13 per share, an increase of $4.48 from December 31, 2024 [4][14]