Business
Franklin Financial Reports Q2 2019 Earnings; Declares Dividend
CHAMBERSBURG, Pa., July 30, 2019 /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 30, 2019 /PRNewswire/ -- Franklin Financial Services Corporation (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank), reported consolidated earnings of $4.0 million ($0.90 per diluted share) for the second quarter ended June 30, 2019, which ranks as the second highest quarter of earnings in the Corporation's history compared to the first quarter 2019 earnings of $3.2 million ($0.73 per diluted share) and a net loss of $5.2 million for the second quarter 2018 (-$1.18 per diluted share). Net income for the first six months of 2019 was $7.2 million ($1.63 per diluted share) compared with a net loss of $1.7 million (-$0.38 per diluted share) for the same period in 2018. As previously reported, results for the second quarter 2018 and six months ended June 30, 2018, were adversely impacted by impairment charges on a loan participation that was initially reported in our current report on Form 8-K filed May 31, 2018.\nTotal assets at June 30, 2019 were $1.3 billion, a 6.3% increase when compared with total assets at June 30, 2018 and a 3.5% increase over year-end 2018. Net loans increased slightly to $969.9 million as new origination lending activity slowed and the balance of purchased participation loans decreased during the six month period. Total deposits increased 5.2% to $1.1 billion for the second quarter of 2019 over the same period last year and grew by 2.8% from December 31, 2019. In addition, the market value of assets under management and held at third-party brokers increased 7.0% to $888.7 million ($763.2 million and $125.5 million, respectively) during the six month period.\n\"Although lending activity slowed somewhat during the second quarter, we are maintaining a well-diversified portfolio with good asset quality while reducing our reliance on participation loans,\" said Timothy G. Henry, President and CEO. \"As we move into the second half of 2019, we are focused on building and expanding core customer relationships, operating the Bank in a sound and efficient manner, investing in technology and distribution channels, upgrading our infrastructure and leveraging our listing on Nasdaq and inclusion in the Russell 2000 Index to bring additional shareholder value.\"\nCompared to the second quarter of 2018, net interest income increased 4.6% to $10.6 million. Year-over-year, net intere...