Franklin Financial Services (FRAF) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $5.4 million ($1.19 per diluted share), up 26.9% year-over-year, but down 9.4% sequentially from Q2 2025.

• Net income for the nine months ended September 30, 2025 was $15.2 million ($3.39 per diluted share), a 43.1% increase year-over-year.

• Total assets grew to $2.297 billion, up 4.5% from year-end 2024; net loans increased 11.8% to $1.544 billion; deposits rose 4.8% to $1.903 billion.

• Board declared a $0.33 per share quarterly dividend for Q4 2025, a 3.1% increase over Q4 2024.

• Wealth management fees rose 8.0% year-over-year to $2.3 million in Q3, with assets under management at $1.4 billion.

Financial highlights

• Net interest income for Q3 2025 was $18.2 million, up 24.2% year-over-year; year-to-date net interest income was $51.0 million, up 20.3%.

• Noninterest income for Q3 2025 was $4.8 million, nearly flat year-over-year; year-to-date noninterest income was $14.5 million, up 8.1%.

• Noninterest expense for Q3 2025 was $15.1 million, up 8.8% year-over-year; year-to-date noninterest expense was $44.1 million, up 6.1%.

• Provision for credit losses on loans increased to $1.3 million in Q3 2025, mainly due to an $894,000 specific reserve for a collateral-dependent loan.

• Wealth management fees for Q3 2025 were $2.3 million, up 8.0% year-over-year; year-to-date wealth management fees totaled $6.9 million, up 8.3%.

Outlook and guidance

• Management is evaluating the impact of the One Big Beautiful Bill Act (OBBBA) but does not expect a material effect on financials.

• Management highlights ongoing monitoring of economic and regulatory factors, with caution regarding forward-looking statements due to potential risks and uncertainties.

• A $0.33 per share regular quarterly dividend was declared for Q4 2025, a 3.1% increase over the prior year.