Business
Franklin Financial Reports 2021 Q2 Earnings; Declares Dividend
CHAMBERSBURG, Pa., July 27, 2021 /PRNewswire/ -- Franklin Financial Services Corporation (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank),
About this update from Franklin Financial Services Corporation
[{"type":"text","content":"CHAMBERSBURG, Pa., July 27, 2021 /PRNewswire/ -- Franklin Financial Services Corporation (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank), reported consolidated earnings of $5.3 million ($1.19 per diluted share) for the second quarter ended June 30, 2021, compared to $3.1 million ($0.71 per diluted share) for the second quarter ended June 30, 2020, and $4.8 million ($1.09 per diluted share) for the first quarter of 2021. Year-to-date 2021 net income was $10.1 million ($2.28 per diluted share) compared to $4.8 million ($1.10 per diluted share) for the same six- month period in 2020.\n\n \n \n \n \n \n \n\n \nA summary of operating results for the second quarter of 2021 and year-to-date 2021 are as follows:\nNet interest income was $10.8 million, inclusive of $865 thousand of interest and fees from Paycheck Protection Program (PPP) loans, for the second quarter of 2021 compared to $10.8 million (including $735 thousand of PPP interest and fees) for the first quarter of 2021 and $10.3 million for the second quarter of 2020. Year-to-date, net interest income was $21.7 million (including $1.6 million of PPP interest and fees) compared to $20.6 million for the same period in 2020. The net interest margin decreased to 2.82% for the second quarter of 2021 from 3.26% for the same quarter of the prior year. On a year-to-date comparison, the net interest margin was 2.92% for 2021 compared to 3.39% in 2020. The yield on earning assets decreased in both the second quarter 2021 versus 2020 comparison (down 0.54%) and year-to-date comparison (down 0.64%) as all asset classes had lower yields as market rates decreased over the year. The year-to-date cost of interest-bearing deposits decreased from 0.47% in 2020 to 0.16% in 2021 while the cost of total deposits decreased from 0.38% in 2020 to 0.13% in 2021 as the Bank reduced deposit rates to offset lower asset yields.Earning assets for the second quarter of 2021 averaged $1.6 billion compared to $1.3 billion for the same period in 2020, and year-to-date average earnings assets were 23.2% greater than 2021. The 2021 average balance of the investment portfolio increased $216.2 million over the same comparative period, primarily in the municipal bond portfolio. The average balance of the loan portfolio increased from $962.3 million for the first six months of 2020 to $1.0 billion i...