Franklin Financial Services Corporation reported a net income of $6.6 million for the second quarter of 2026, reflecting an 11.9% increase from $5.9 million in the same period of 2025. For the first half of 2026, net income reached $13.2 million, a 34.8% rise compared to $9.8 million in the first half of 2025. Basic earnings per share for the second quarter were $1.47, up from $1.32 a year earlier, while diluted earnings per share were $1.47 compared to $1.32 in the prior year. The corporation's total assets increased by 4.3% to $2.335 billion as of June 30, 2026, compared to $2.239 billion at the end of 2025.
The company experienced growth in its loan and deposit portfolios, with net loans totaling $1.589 billion, a 3.1% increase from $1.541 billion at the end of 2025. Total deposits rose by 4.8% to $1.925 billion, up from $1.836 billion at year-end 2025. The increase in deposits was driven by a $76.8 million rise in the money management product and a $30.9 million increase in noninterest-bearing checking accounts. The corporation's return on average assets (ROA) for the second quarter was 1.14%, while the return on average equity (ROE) was 14.80%.
In terms of operational developments, Franklin Financial's wealth management segment reported fees of $2.6 million for the second quarter of 2026, a 6.1% increase from $2.4 million in the same quarter of 2025. The total assets under management reached $1.481 billion as of June 30, 2026. The corporation's noninterest income also saw a slight increase, totaling $5.1 million for the second quarter, compared to $5.1 million in the same period of 2025, with notable growth in wealth management fees and gains on the sale of loans.
The provision for credit losses on loans increased to $1.6 million in the second quarter of 2026, up from $704,000 in the same quarter of 2025, primarily due to specific reserves on two collateral-dependent loans. The allowance for credit losses (ACL) ratio for loans was 1.36% as of June 30, 2026, compared to 1.32% at the end of 2025. The corporation's management continues to monitor loan quality closely, with nonaccrual loans totaling $17.7 million, up from $8.5 million at the end of 2025.
Looking ahead, Franklin Financial Services Corporation remains optimistic about its growth trajectory, supported by its strong capital ratios and liquidity position. The corporation's capital ratios indicate it is well-capitalized, with a total risk-based capital ratio of 13.77% as of June 30, 2026. The board of directors declared a quarterly cash dividend of $0.34 per share for the third quarter of 2026, representing a 3.0% increase over the previous year's dividend, reflecting the corporation's commitment to returning value to shareholders while maintaining a solid financial foundation.
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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