Business
Franklin Financial Reports 2021 Q3 Earnings; Declares Dividend
CHAMBERSBURG, Pa., Oct. 26, 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., Oct. 26, 2021 /PRNewswire/ -- Franklin Financial Services Corporation (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank), reported consolidated earnings of $5.9 million ($1.31 per diluted share) for the third quarter ended September 30, 2021, compared to $3.5 million ($0.79 per diluted share) for the third quarter ended September 30, 2020, and $5.3 million ($1.19 per diluted share) for the second quarter of 2021. Year-to-date 2021 net income was $16.0 million ($3.60 per diluted share) compared to $8.2 million ($1.89 per diluted share) for the same nine-month period in 2020. Net income for both the third quarter of 2021 and the year-to-date period of 2021 was boosted by a gain of $1.8 million on the sale of the Bank's headquarters building, as previously reported. \n\n \n \n \n \n \n \n\n \nA summary of operating results for the third quarter of 2021 and year-to-date 2021 are as follows:\nNet interest income was $11.6 million, inclusive of $1.2 million of interest and fees from Paycheck Protection Program (PPP) loans, for the third quarter of 2021 compared to $10.8 million (including $865 thousand of interest and fees from the PPP program) for the second quarter of 2021 and $10.4 million for the third quarter of 2020. Year-to-date, net interest income was $33.3 million (including $2.8 million of PPP interest and fees) compared to $31.0 million for the same period in 2020. The net interest margin decreased to 2.89% for the third quarter of 2021 from 3.02% for the same quarter of the prior year. On a year-to-date comparison basis, the net interest margin was 2.91% for 2021 compared to 3.25% in 2020. The yield on earning assets decreased in both the third quarter 2021 versus 2020 third quarter comparison (down 0.20%) and the year-over-year comparison (down 0.48%) as all asset classes had lower yields as market rates remained low during the year. The year-to-date cost of interest-bearing deposits decreased from 0.39% in 2020 to 0.16% in 2021 while the cost of total deposits decreased from 0.32% in 2020 to 0.13% in 2021 as the Bank reduced deposit rates to offset lower asset yields. Earning assets for the third quarter of 2021 averaged $1.6 billion compared to $1.4 billion for the same period in 2020, and 2021 year-to-date average earning assets were 20.62% greater than 2020. The 2021 average balance ...