Franklin Financial Services Corporation reported a net income of $5.4 million for the third quarter of 2025, reflecting a 26.9% increase from $4.2 million in the same period last year. This translates to earnings per diluted share of $1.19, up from $0.95 in the third quarter of 2024. For the nine months ending September 30, 2025, net income reached $15.2 million, a 43.1% increase compared to $10.6 million for the same period in 2024. The company’s total assets grew to $2.297 billion, a 4.5% increase from $2.198 billion at the end of 2024, driven by an 11.8% rise in net loans, which reached $1.544 billion.
The company experienced significant growth in its loan portfolio, with total deposits increasing by 4.8% to $1.903 billion as of September 30, 2025. The increase in deposits was primarily attributed to a rise in noninterest-bearing checking accounts and money management products. The bank's wealth management fees also saw an 8.0% increase, totaling $2.3 million for the third quarter, supported by growth in assets under management, which reached $1.4 billion.
Operationally, Franklin Financial Services has made strategic adjustments, including the redemption of $9 million of its subordinated notes, which contributed to a specific reserve of $894,000 for a commercial real estate loan. The allowance for credit losses increased to $20.4 million, representing 1.30% of total loans, up from 1.26% at the end of 2024. The bank's nonaccrual loans rose to $10.7 million, compared to $266,000 at the end of 2024, indicating a need for enhanced monitoring of loan quality.
Looking ahead, the bank's management remains optimistic about future growth, citing a strong capital position with a total risk-based capital ratio of 12.86% as of September 30, 2025, well above the regulatory minimum. The bank's capital conservation buffer was 4.88%, indicating a solid buffer above the required levels. The board has also declared a quarterly cash dividend of $0.33 per share for the fourth quarter of 2025, reflecting a 3.1% increase from the previous year, signaling confidence in the bank's ongoing financial health and commitment to returning value to shareholders.
About FRANKLIN FINANCIAL SERVICES CORP /PA/
Franklin Financial Services Corporation is a bank holding company that operates primarily through its wholly-owned subsidiary, F&M Trust, a community bank offering retail, commercial, and trust banking services in Pennsylvania and Maryland. It provides loans secured by real estate and assets, deposit products, wealth management, and trust services. The company emphasizes local customer service, community involvement, and prudent risk management within a highly regulated banking environment.
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