Franklin Financial Services (FRAF) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $5.9M ($1.32/diluted share), up 94.8% year-over-year; YTD net income was $9.8M ($2.20/diluted share), up 53.7% year-over-year.

• Total assets reached $2.287B as of June 30, 2025, a 4.1% increase from year-end 2024; net loans grew by $119.6M (8.7%) to $1.5B; deposits rose by $77.8M (4.3%) to $1.893B.

• Wealth management fees for H1 2025 were $4.6M, with assets under management at $1.4B; fees increased 7.9% in Q2 and 8.5% YTD.

• Board declared a $0.33/share quarterly dividend for Q3 2025, a 3.1% increase over Q3 2024, payable August 27, 2025.

Financial highlights

• Net interest income for H1 2025 was $32.8M, up from $27.8M in H1 2024; Q2 2025 net interest income was $17.2M, up 21.3% year-over-year.

• Noninterest income for H1 2025 was $9.7M, up 13.2% year-over-year; Q2 2025 noninterest income was $5.1M, up 17.3%.

• Noninterest expense for H1 2025 was $29.0M, up 4.8%; Q2 2025 noninterest expense was $14.4M, up 0.4% year-over-year.

• Provision for credit losses was $1.5M YTD (vs. $1.1M in 2024), with $704K in Q2 2025 (vs. $560K in Q2 2024), mainly due to loan growth.

• Effective tax rate was 19.3% for Q2 2025 and 19.0% YTD.

Outlook and guidance

• Management expects continued loan and deposit growth, with a focus on maintaining strong asset quality.

• The impact of the One Big Beautiful Bill Act is under evaluation but is not expected to materially affect financials.

• Forward-looking statements are subject to risks including interest rates, inflation, economic conditions, and regulatory changes.