Franklin Financial Services (FRAF) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $487K ($0.11/share), down 88.5% from Q3 2024 and 86.0% from Q4 2023, impacted by a $3.4M after-tax loss on securities sales as part of portfolio restructuring.

• Full-year 2024 net income was $11.1M ($2.51/share), down 18.4% year-over-year, also affected by the securities loss.

• Excluding securities losses, Q4 2024 net income was $3.9M and full-year net income was $14.5M, nearly flat year-over-year.

• Board declared a $0.32/share regular quarterly dividend for Q1 2025.

Financial highlights

• Total assets reached $2.20B at year-end 2024, up 19.7% from 2023.

• Net loans grew 11.2% to $1.38B, driven by commercial real estate and residential loans.

• Deposits increased 18.1% to $1.82B, with strong growth in money management and time deposits.

• Net interest income for 2024 rose 7.2% to $57.5M; NIM was 2.95% for 2024, down from 3.31% in 2023.

• Noninterest income for 2024 was $13.7M, down 7.9% due to securities loss; excluding losses, noninterest income rose 12.5%.

• Noninterest expense increased 11.8% to $55.9M, mainly from higher salaries, data processing, and FDIC premiums.

Outlook and guidance

• Management highlights strong loan and deposit growth, ongoing investment in systems and infrastructure, and a focus on future profitability through balance sheet restructuring.

• Open market share repurchase plan for up to 150,000 shares approved through 2025.