Franklin Financial Reports 2025 Q4 and Year-to-Date Results; Declares Dividend

Core Insights - Franklin Financial Services Corporation reported strong financial results for the fourth quarter and year-to-date 2025, with significant increases in net income and asset growth [1][4][15]. Financial Performance Highlights - For the fourth quarter of 2025, net income was $6.0 million ($1.35 per diluted share), a 12.9% increase from the previous quarter and a substantial rise from $487 thousand ($0.11 per diluted share) in Q4 2024 [4][5]. - Year-to-date net income for 2025 reached $21.2 million ($4.74 per diluted share), marking a 91.2% increase compared to $11.1 million ($2.51 per diluted share) in 2024 [4][15]. - Noninterest income for Q4 2025 was $4.7 million, a significant increase from $288 thousand in Q4 2024, driven by higher wealth management fees and gains on loan sales [6][15]. Balance Sheet Highlights - Total assets as of December 31, 2025, were $2.239 billion, up 1.9% from $2.198 billion at the end of 2024 [4][16]. - Net loans increased by 11.6% to $1.541 billion from $1.380 billion at year-end 2024, primarily due to growth in commercial real estate and residential loans [4][15]. - Total deposits rose to $1.836 billion, a 1.1% increase from $1.816 billion at the end of 2024, despite the Bank paying off $65.0 million in brokered deposits during Q4 2025 [4][15]. Performance Metrics - The return on average assets (ROA) for Q4 2025 was 1.05%, compared to 0.09% in Q4 2024, while the return on average equity (ROE) improved to 14.20% from 1.32% in the same period [4][17]. - The net interest margin (NIM) for Q4 2025 was 3.40%, up from 2.92% in Q4 2024, reflecting improved interest income from the loan portfolio [4][17]. - The effective income tax rate for Q4 2025 was 19.2%, compared to 11.3% in Q4 2024 [7][15]. Wealth Management - Wealth management fees for Q4 2025 totaled $2.3 million, a 4.6% increase from $2.2 million in Q4 2024, with assets under management reaching $1.421 billion [4][15]. - Year-to-date wealth management fees increased by 7.4% to $9.2 million from $8.5 million in 2024 [4][15]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.33 per share for Q1 2026, representing a 3.1% increase over the dividend paid in Q1 2025 [4][15].