Franklin Financial Services Corporation · NASDAQ:FRAF
Franklin Financial Services — Shareholder Meeting (April 2025)
54 slides from Franklin Financial Services's shareholder meeting presentation, Apr 29, 2025
Slide 1: Annual Meeting April 29, 2025
Annual Meeting April 29, 2025 F&M TRUST Franklin Financial Services Corporation
Slide 2: Call to Order
Call to Order G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 3: Invocation
Invocation Pam Johns F&M TRUST Franklin Financial Services Corporation
Slide 4: Minutes of Last Meeting
Minutes of Last Meeting G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 5: Forward Looking Statements
Forward Looking Statements In order to help you to better understand the business of the Company – where we have been and where we want to go – my remarks today (and those of other Company officers who will speak or respond to questions) will include forward looking statements relating to anticipate
Slide 6: Introduction
Introduction G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 7: Board of Directors
Board of Directors G. Warren Elliott Chairman of the Board Timothy (Tim) G. Henry CEO Craig W. Best President F&M TRUST Franklin Financial Services Corporation
Slide 8: Board of Directors
Board of Directors Martin R. Brown Kevin W. Craig Gregory A. Duffey F&M TRUST Franklin Financial Services Corporation
Slide 9: Board of Directors
Board of Directors Daniel J. Fisher Allan E. Jennings, Jr. Stanley J. Kerlin F&M TRUST Franklin Financial Services Corporation
Slide 10: Board of Directors
Board of Directors Donald H. Mowery Kimberly M. Rzomp Gregory I. Snook F&M TRUST Franklin Financial Services Corporation
Slide 11: Legal counsel, auditors and Judge of Elections
Nick Bybel Partner, Bybel Rutledge LLP Zoe Clayton Assistant Corporate Secretary – Judge of Elections Allison Minnis Partner, Crowe LLP Ian Kandray Senior Manager, Crowe LLP F&M TRUST Franklin Financial Services Corporation
Slide 12: Chairman's Remarks
Chairman’s Remarks G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 13: G. Warren Elliott, Chairman of the Board
G. Warren Elliott Chairman of the Board F&M TRUST Franklin Financial Services Corporation
Slide 14: 2024 A Milestone Year
2024 A Milestone Year F&M TRUST Franklin Financial Services Corporation
Slide 15: F&M Trust
15 F&M TRUST
Slide 16: 16
16
Slide 17: Allen E. Jennings, Jr., Vice Chairman of the Board
Allen E. Jennings, Jr. Vice Chairman of the Board F&M TRUST Franklin Financial Services Corporation
Slide 18: Nei)
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Slide 19: 19 F&M TRUST Franklin Financial Services Corporation
19 F&M TRUST Franklin Financial Services Corporation
Slide 20: 20 F&M TRUST Franklin Financial Services Corporation
20 F&M TRUST Franklin Financial Services Corporation
Slide 21: Election of Directors
Election of Directors G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 22: Director nominees
Martin R. Brown Gregory A. Duffey Gregory I. Snook F&M TRUST Franklin Financial Services Corporation
Slide 23: Say-On-Pay Vote
Say-On-Pay Vote G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 24: Ratification of Employee Stock Purchase Plan
Ratification of Employee Stock Purchase Plan G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 25: Ratification of Auditors
Ratification of Auditors G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 26: Polls Open
Polls Open G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 27: Financial Overview
Financial Overview Mark R. Hollar, Chief Financial Officer F&M TRUST Franklin Financial Services Corporation
Slide 28: A Year of Growth
A Year of Growth SELECTED HIGHLIGHTS GROWTH PERCENTAGE KEY STATISTICS Total Assets +19.7% $2.198 Billion as of 12/31/2024 $1.836 Billion as of 12/31/2023 Net Loans +11.2% $1.380 Billion as of 12/31/2024 $1.241 Billion as of 12/31/2023 Total Deposits +18.1% $1.816 Billion as of 12/31/2024 $1.538 Bill
Slide 29: Investment AFS Portfolio
Investment AFS Portfolio $600,000 $472,503 $508,604 $500,000 $104,005 $149,170 $400,000 $132,591 $169,821 $300,000 $23,198 $24,224 $200,000 $138,618 $133,592 $100,000 $74,091 ($49,416) $31,797 ($45,449) $0 12/31/2023 12/31/2024 U.S. Treasury Municipal Corporate Agency MBS/ABS Non-Agency MBS/ABS Unre
Slide 30: Loans Outstanding
Loans Outstanding 2.00% $1,400,000 1.75% $1,200,000 $1,256,985 $13,987,077 1.50% $1,000,000 $6,815 $230,597 1.25% $800,000 $242,654 1.28% $230,597 1.26% 1.00% $600,000 $703,767 $803,365 0.75% $400,000 $25,900 $32,427 0.50% $200,000 $277,849 $322,835 0.25% $0 12/31/2023 12/31/2024 0.00% Total Residen
Slide 31: Largest Commercial Real Estate Concentrations
Largest Commercial Real Estate Concentrations CRE Concentrations* $600,000 $500,000 $62,439 $66,645 $400,000 $68,478 $82,518 $300,000 $87,137 $92,926 $200,000 $80,670 $97,460 $100,000 $120,180 $146,661 $0 12/31/2023 12/31/2024 Apartment Unites Hotel & Motel Office Shopping Center Land Development *P
Slide 32: Deposits by Category
Deposits by Category Deposits by Category 100% $1,800,000 90% $1,600,000 80% $1,400,000 70% $1,200,000 60% $1,000,000 50% $800,000 $132,446 $315,905 40% $600,000 $454,817 $417,870 30% $400,000 $667,965 8.9% $791,526 15.4% 20% $200,000 $273,050 $8,677 $290,346 $87,057 10% $0 12/31/2023 12/31/2024 0%
Slide 33: Liquidity Available at December 31, 2024
Liquidity Available at December 31, 2024 Dollars in Thousands (000’s) Liquidity Source Capacity Outstanding Available Federal Home Loan Bank $562,697 $ 200,000 $362,697 Federal Reserve Bank Discount Window $64,575 $ – $64,575 Correspondent Banks $76,000 $ – $76,000 Total $703,272 $200,000 $503,272 F
Slide 34: Earnings Highlights
Earnings Highlights Dollars in Thousands ($000’s); Except Per Share 2024 2023 Change in $ Change in % Interest Income $101,451 $76,762 $24,689 32.2% Interest Expense $43,937 $23,125 $20,812 90.0% Net Interest Income $57,514 $53,637 $3,877 7.2% Provision for Credit Losses – Loans $1,975 $2,589 ($614)
Slide 35: Noninterest Income
Noninterest Income Dollars in Thousands ($000’s) 2024 2023 Change in $ Change in % Wealth Management Fees $8,538 $7,512 $1,026 13.7% Loan Service Charges $987 $811 $176 21.7% Gain on Sale of Loans $565 $199 $366 183.9% Deposit Service Charges and Fees $2,448 $2,492 ($44) -1.8% Other Service Charges
Slide 36: Noninterest Expense
Noninterest Expense Dollars in Thousands ($000’s) 2024 2023 Change in $ Change in % Salaries and Benefits $32,752 $28,813 $3,939 13.7% Net Occupancy $4,583 $4,398 $185 4.2% Marketing and Advertising $1,891 $2,071 ($180) -8.7% Legal and Professional $2,133 $2,301 ($168) -7.3% Data Processing $5,804 $
Slide 37: Performance Measures
Performance Measures 2024 2023 Return on Average Assets (ROA) 0.54% 0.78% Return on Average Equity (ROE) 8.05% 11.39% Return on Average Tangible Equity (ROTE)1 8.62% 12.32% Efficiency Ratio1 73.36% 70.75% Net Interest Margin 2.95% 3.31% ROA – Excluding Securities Losses1 0.70% 0.83% ROE – Excluding
Slide 38: Safety & Soundness
Safety & Soundness 2024 2023 Risk-Based Capital Ratio (Total) 13.85% 14.45% Leverage Ratio (Tier 1) 7.92% 9.01% Nonperforming Assets / Total Assets 0.01% 0.01% Allowance for Credit Loss / Loans 1.26% 1.28% Net Recoveries (Charged-Off) Loans / Average Loans -0.03% -0.02% F&M TRUST Franklin Financial
Slide 39: Shareholder Value
Shareholder Value Per Share Measure / Market Valuation 2024 2023 Diluted Earnings Per Share $2.51 $3.10 Cash Dividend Yield1 4.28% 4.06% Regular Cash Dividends Paid $1.28 $1.28 Market Value Per Share $29.90 $31.55 Book Value Per Share $32.69 $30.23 Tangible Book Value Per Share2 $30.65 $28.17 Market
Slide 40: Quarterly Earnings Performance
Quarterly Earnings Performance Quarterly Earnings $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $3,361 $3,033 $4,218 $487 $3,922 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 F&M TRUST Franklin Financial Services Corporation
Slide 41: Quarterly Earnings Performance: Diluted EPS
Quarterly Earnings Performance Diluted Earnings Per Share $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.77 $0.66 $0.95 $0.11 $0.88 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 F&M TRUST Franklin Financial Services Corporation
Slide 42: CEO's Remarks
CEO’s Remarks Timothy (Tim) G. Henry F&M TRUST Franklin Financial Services Corporation
Slide 43: Timothy (Tim) G. Henry, CEO
Timothy (Tim) G. Henry CEO F&M TRUST Franklin Financial Services Corporation
Slide 44: President's Remarks
President’s Remarks Craig W. Best F&M TRUST Franklin Financial Services Corporation
Slide 45: Craig W. Best, President
Craig W. Best President F&M TRUST Franklin Financial Services Corporation
Slide 46: Questions
Questions G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 47: Polls Closed
Polls Closed G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 48: Report by Judge of Election
Report by Judge of Election Zoe R. Clayton F&M TRUST Franklin Financial Services Corporation
Slide 49: Announcement
Announcement G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 50: Thank You
Thank You G. Warren Elliott F&M TRUST Franklin Financial Services Corporation
Slide 51: Meeting Adjourned
Meeting Adjourned F&M TRUST Franklin Financial Services Corporation
Slide 52: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Return on Tangible Equity 2024 2023 Net Income $ 11,099 $ 13,598 Average Shareholders’ Equity 137,840 (119,408) Less Average Intangible Assets (9,016) (9,016) Tangible Average Shareholders’ Equity (non-GAAP) 128,824 110,392 Return on Average Tangible Equity (ROTE) (non
Slide 53: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Tangible Book Value (per share) (non-GAAP) 2024 2023 Shareholders’ Equity $ 144,716 $ (132,136) Less Intangible Assets (9,016) (9,016) Tangible Shareholders’ Equity (non-GAAP) 135,700 123,120 Shares Outstanding (in thousands) 4,427 4,371 Tangible Book Value (non-GAAP)
Slide 54: GAAP / Non-GAAP Reconciliation
GAAP / Non-GAAP Reconciliation Performance Results Excluding Securities Losses (non-GAAP) 2024 2023 Securities Losses as Reported $ (4,267) $ (1,119) Securities Losses as Reported, Net of Tax Benefit (21%) (non-GAAP) (3,371) (884) Net Income as Reported 11,099 13,598 Plus Securities Losses, Net of T
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