Business
Franklin Financial Reports 2022 Q2 Earnings; Declares Dividend
CHAMBERSBURG, Pa., July 26, 2022 /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 26, 2022 /PRNewswire/ -- Franklin Financial Services Corporation (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank), reported consolidated earnings of $3.6 million ($0.80 per diluted share) for the second quarter ended June 30, 2022. This result represents a 19% increase compared to net income of $3.0 million ($0.67 per diluted share) for the first quarter of 2022, and a 32% decrease compared to net income of $5.3 million ($1.19 per diluted share) for the second quarter ended June 30, 2021. Year-to-date 2022 net income was $6.6 million ($1.47 per diluted share) compared to $10.1 million ($2.28 per diluted share) for the same six-month period in 2021, a decrease of 35%.\nA summary of operating results for the second quarter of 2022 and year-to-date 2022 are as follows:\nNet interest income was $12.1 million for the second quarter of 2022 compared to $10.8 million for the second quarter of 2021. The second quarter of 2021 included $746 thousand of PPP interest and fees compared to only $4 thousand for the second quarter of 2022. Year-to-date, net interest income was $22.9 million (including $388 thousand of PPP interest and fees) compared to $21.7 million for the same period in 2021 (including $1.6 million of PPP interest and fees). The net interest margin increased to 2.90% for the second quarter of 2022 from 2.82% for the same quarter of the prior year. On a year-to-date comparison, the net interest margin was 2.80% for 2022 compared to 2.92% in 2021. The yield on earning assets increased in the second quarter 2022 versus 2021 comparison (up 0.08%), but decreased year-over-year (down 0.14%). The increase in the second quarter yield on earning assets was primarily the result of Federal Reserve rate increases that began near the end of the first quarter of 2022 and continued through the second quarter. The year-to-date cost of interest-bearing deposits was 0.15% compared to 0.16% for 2021 while the cost of total deposits decreased from 0.13% in 2021 to 0.12% in 2022.Earning assets for the second quarter of 2022 averaged $1.7 billion compared to $1.6 billion for the same period in 2021, and year-to-date average earnings assets increased 10% from $1.5 billion to $1.7 billion. Year-to-date the average balance of interest-earning cash increased $72.3 million, and the investment portfolio increased...