Franklin Financial Services Corporation · NASDAQ:FRAF
Franklin Financial Services — Q3 2025 Earnings Presentation
30 slides from Franklin Financial Services's earnings presentation, 2025
Slide 1: Investor Presentation Third Quarter 2025 Highlights
Corporate Headquarters – Chambersburg, PA Investor Presentation Third Quarter 2025 Highlights Stock Symbol: FRAF (Nasdaq)
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements appearing herein which are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements refer to a future period or periods, reflecting management’s cu
Slide 3: Overview of Franklin Financial
Overview of Franklin Financial • Franklin Financial, which was formed in 1983, is a bank holding company headquartered in Franklin County, PA • A $2.3 billion financial services corporation located in South-Central Pennsylvania and northern tier of Maryland • Franklin Financial’s wholly-owned subsid
Slide 4: Trade Area Expansion
Trade Area Expansion 23 Locations Serving South Central PA and Washington County MD a 9) y eaceaginel e Primary Trade Area HARRISBURG e e Expanded Trade Area e@ Oe Offering Wealth Management, Commercial Financing, and e e Residential Lending Services tants mea. e Coie. ee fe e BALTIMORE FAM Services
Slide 5: Why Invest in Franklin Financial?
Why Invest in Franklin Financial? • An exceptionally strong deposit franchise • A company with diversified revenue streams including fee income from a $1.4 billion assets under management wealth management team • A company with solid credit quality • A company that continues to deliver good earnings
Slide 6: Mission, Vision & Core Values
Mission, Vision & Core Values Mission Statement Delivering the right financial solutions from people you know and trust. Vision We are committed to remaining independent by growing our bank to meet the increasing needs of our employees, customers, communities, and shareholders. We strive to be a fin
Slide 7: Experienced and Cohesive Executive Team
Experienced and Cohesive Executive Team Years of Banking Executive Title Joined F&M Trust Prior Experience Experience Peoples Security Bank & Trust, First Craig W. Best President and Chief Executive Officer 42 2025 Commonwealth Bank, Equitable Bank Mark R. Hollar Executive Vice President, Chief Fina
Slide 8: Experienced and Cohesive Executive Team
Experienced and Cohesive Executive Team Years of Banking Executive Title Joined F&M Trust Prior Experience Experience Karen K. Carmack, DM Senior Vice President, Chief Human Resources Officer 30 2000 ACNB Susquehanna Bank, Matthew D. Weaver Senior Vice President, Chief Marketing Officer 25 2014 Clif
Slide 9: Managed Growth
Managed Growth YTD GROWTH SELECTED HIGHLIGHTS PERCENTAGE KEY STATISTICS +4.5% $2.297 Billion as of 9/30/2025 Total Assets $2.198 Billion as of 12/31/2024 +11.8% $1.544 Billion as of 9/30/2025 Net Loans $1.380 Billion as of 12/31/2024 +4.8% $1.903 Billion as of 9/30/2025 Total Deposits $1.816 Billion
Slide 10: Net Interest Income ($000's)
Net Interest Income $70,000 $68,2342 6% 5.16% 5.31% $60,000 4.70% 5% $51,586 $57,514 $50,000 $53,637 $44,671 $51,036 4% $41,961 3.40% $40,000 3.51% ($000’s) 3.06% 3.31% 3.20% 3.21% 3.11% 2.95% 3% 2.88% $30,000 2.68% 2.56% 2% $20,000 1.75% 1% $10,000 0.39% 0.36% 0.24% $0 0% 12/31/2020 12/31/2021 12/3
Slide 11: Diversified Income ($000's)
Diversified Income Non-Interest Income1 $25,000 29.46% 30% 25.83% 23.28% 25% $20,000 22.54% 22.57% 22.10% $5,392 20% $4,116 $15,000 ($000’s) $3,024 $3,610 $3,658 $2,170 $2,279 $3,514 15% $1,868 $2,157 $1,844 $2,258 $2,448 $10,000 $1,773 $2,527 $2,492 $565 $1,977 $2,430 $1,880 10% $770 $199 $1,536 $4
Slide 12: Financial Updates
Financial Updates Third Quarter Ended September 30, 2025 12
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights As of As of As of As of As of As of Dollars in Thousands (000’s) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Total Assets $2,297,077 $2,197,841 $1,836,039 $1,699,579 $1,773,806 $1,535,038 Cash and Cash Equivalents $188,144 $203,613 $23,140 $64,899 $175,1
Slide 14: Investment AFS Portfolio
Investment AFS Portfolio $550,000 $500,000 $45,550 $31,079 $30,666 $45,657 $450,000 $38,733 $28,143 $400,000 $65,950 $149,170 $122,669 $104,005 $118,770 $36,330 $350,000 $8,453 Fair Value ($000’s) $72,241 $24,939 $105,278 $300,000 $93,858 $20,288 $138,742 $250,000 $24,239 $132,376 $23,198 $200,000 $
Slide 15: Diversified Loan Portfolio ($000's)
Diversified Loan Portfolio Loans Outstanding $1,800,000 10% $9,542 $1,600,000 9% $8,853 $103,724 8% $1,400,000 $6,815 $108,545 $419,395 7% $1,200,000 $115,018 $6,199 5.83% $5,577 $6,406 $355,262 5.65% 6% Loan Yield ($000’s) $1,000,000 $118,443 $303,749 5.16% $126,561 $145,279 $140,669 5% 4.14% $122,
Slide 16: Largest Commercial Real Estate Concentrations
Largest Commercial Real Estate Concentrations $600,000 400% 357.59% 332.90% 350% $500,000 $92,421 290.70% $66,645 300% $89,250 $400,000 241.10% 239.30% $62,439 234.40% $82,518 250% ($000’s) $43,812 $68,478 $93,630 $300,000 $92,926 200% $55,428 $49,160 $87,137 $60,343 $103,039 150% $200,000 $30,938 $
Slide 17: Credit Quality
Credit Quality 1.00 0.75 (%) 0.50 0.87 0.74 0.65 0.68 0.57 0.60 0.25 0.44 0.42 0.36 0.01 0.01 0.02 0.00 As of 12/31/2020 As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 9/30/2025 2 Nonperforming Loans 1 / Gross Loans UBPR Peer Group 1Nonperforming loans = nonaccrual loans,
Slide 18: Deposits by Category
Deposits by Category $2,000,000 100% $1,800,000 $286,144 90% $315,905 $1,600,000 80% $74,253 $57,390 $132,446 Uninsured/Uncollateralized $1,400,000 $424,902 70% $76,165 $417,870 $511,969 $496,532 $1,200,000 $454,517 60% $409,178 ($000’s) $1,000,000 50% $800,000 40% $879,924 $699,734 $698,295 $791,52
Slide 19: Cost of Deposits
Cost of Deposits 2.00 1.50 1.89 1.91 (%) 1.00 1.23 0.50 0.28 0.12 0.23 0.00 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 9/30/2025 Average cost year-to-date for all periods 19
Slide 20: Liquidity Available at September 30, 2025
Liquidity Available at September 30, 2025 Dollars in Thousands (000’s) Liquidity Source Capacity Outstanding Available Federal Home Loan Bank $723,389 $200,000 $523,389 Federal Reserve Bank Discount Window $132,935 $ – $132,935 Correspondent Banks $76,000 $ – $76,000 Total $932,324 $200,000 $732,324
Slide 21: Wealth Management ($000's)
Wealth Management $1,600,000 $1,400,000 $1,200,000 $1,000,000 ($000’s) $800,000 $1,273,461 $1,169,290 $1,094,779 $600,000 $946,975 $904,323 $836,382 $400,000 $217,891 $200,000 $147,454 $122,246 $100,457 $109,604 $60,060 $112,624 $118,046 $116,398 $135,423 $139,872 $144,902 $0 As As of of 12/31/2020
Slide 22: Income Statement Highlights
Income Statement Highlights Nine Months Dollars in Thousands Ended Year End Year End Year End Year End Year End (000’s) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Interest Income $85,333 $101,451 $76,762 $56,449 $47,573 $45,939 Interest Expense $34,297 $43,937 $23,125 $4,863 $2
Slide 23: Key Performance Measures
Key Performance Measures Nine Months Ended Year End Year End Year End Year End Year End Percent (%) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Return on Average Assets (ROAA) 0.90 0.54 0.78 0.83 1.17 0.91 Return on Average Equity (ROAE) 13.31 8.05 11.39 11.64 13.20 9.56 Efficie
Slide 24: Balance Sheet Strength
Balance Sheet Strength As of As of As of As of As of As of Percent (%) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Risk-Based Capital Ratio (Total) 12.86 13.85 14.45 17.21 18.41 17.69 Leverage Ratio (Tier 1) 7.90 7.92 9.01 8.95 8.52 8.69 Common Equity Ratio (Tier 1) 11.05 11.31
Slide 25: Market Statistics
Market Statistics Nine Months Ended Year End Year End Year End Year End Year End Per Share Measure / Market Valuation 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Diluted Earnings Per Share $3.39 $2.51 $3.10 $3.36 $4.42 $2.93 Cash Dividend Yield1 2.85% 4.28% 4.06% 3.55% 3.87% 4.4
Slide 26: Stock Symbol: FRAF (Nasdaq)
Stock Symbol: FRAF (Nasdaq) www.franklinfin.com www.fmtrust.bank 26
Slide 27: Appendix
Appendix : FEM [i.. TRUST
Slide 28: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Tangible Book Value (Per Share) (Non-GAAP) As of As of As of As of As of As of Dollars in Thousands (000’s), Except Per Share 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Shareholders’ Equity $ 166,343 $ 144,716 $ 132,136 $ 114,197 $ 157,065 $ 145,1
Slide 29: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Net Income Excluding Securities Losses / Gains (non-GAAP) Nine Months Ended Year End Year End Year End Year End Year End Dollars in Thousands (000’s) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Securities (Losses) / Gains as Reported $ - $ (4,267)
Slide 30: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Efficiency Ratio Nine Months Ended Year End Year End Year End Year End Year End Dollars in Thousands (000’s) 9/30/2025 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Noninterest Expense $ 44,114 $ 55,895 $ 50,011 $ 48,691 $ 43,245 $ 39,362 Net Interest Income 5
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