Franklin Financial Services Corporation · NASDAQ:FRAF
Franklin Financial Services — Q1 2025 Earnings Presentation
29 slides from Franklin Financial Services's earnings presentation, Jun 2, 2025
Slide 1: First Quarter 2025 Highlights
Investor Presentation First Quarter 2025 Highlights Franklin Financial Services Corporation F&M TRUST
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: Why Invest in Franklin Financial?
Why Invest in Franklin Financial? A premier, $2.3 billion, bank franchise located in South-Central Pennsylvania and northern tier of Maryland A company that is focused on building shareholder value by investing in technology and infrastructure to position itself for growth and profitability improvem
Slide 4: 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 5: Overview of Franklin Financial
Overview of Franklin Financial Franklin Financial, which was formed in 1983, is a holding company headquartered in Franklin County, PA Franklin Financial’s wholly-owned subsidiary, F&M Trust, was founded in Chambersburg, PA in 1906 Total assets of the Company were $2.3 billion as of March 31, 2025 A
Slide 6: Trade Area Expansion Locations
Trade Area Expansion 23 Locations Serving South Central PA and Washington County MD Primary Trade Area Expanded Trade Area Offering Wealth Management, Commercial Financing, and Residential Lending Services F&M TRUST Franklin Financial Services Corporation 6
Slide 7: Experienced and Cohesive Executive Team
Experienced and Cohesive Executive Team Executive Title Years of Banking Experience Joined F&M Trust Prior Experience Craig W. Best President and Chief Executive Officer 42 2025 Peoples Security Bank & Trust, First Commonwealth Bank, Equitable Bank Mark R. Hollar Executive Vice President, Chief Fina
Slide 8: Experienced and Cohesive Executive Team
Experienced and Cohesive Executive Team Executive Title Years of Banking Experience Joined F&M Trust Prior Experience Karen K. Carmack, DM Senior Vice President, Chief Human Resources Officer 30 2000 ACNB Matthew D. Weaver Senior Vice President, Chief Marketing Officer 25 2014 Susquehanna Bank, Clif
Slide 9: Consistent Quarterly Results
Consistent Quarterly Results SELECTED HIGHLIGHTS Growth Percetage KEY STATISTICS Total Assets +2.7% $2.257 Billion as of 3/31/2025 $2.198 Billion as of 12/31/2024 Net Loans +4.2% $1.438 Billion as of 3/31/2025 $1.380 Billion as of 12/31/2024 Total Deposits +2.9% $1.868 Billion as of 3/31/2025 $1.816
Slide 10: Income Growth
Income Growth Net Interest Income (Millions) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $13.6 $15.6 3/31/224 3/31/2025 Quarter End Quarter End Net interest margin was 3.05% for the quarter ended 3/31/25 compared to 2.88% for the same period in 2024; Non-interest income fo
Slide 11: Financial Updates First Quarter Ended March 31, 2025
Financial Updates First Quarter Ended March 31, 2025 F&M TRUST Franklin Financial Services Corporation 11
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights Dollars in Thousands (000’s) 3/31/2025 12/31/2024 12/31/2023 12/31/2022 Total Assets $2,257,478 $2,197,841 $1,836,039 $1,699,579 Cash and Cash Equiv. $224,956 $203,613 $23,140 $64,899 Investments AFS $495,487 $508,604 $472,503 $487,247 Net Loans $1,437,747 $1,380,424 $1,240,
Slide 13: Investment AFS Portfolio
Investment AFS Portfolio $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $45,657 $38,733 $31,079 $29,975 $200,000 $65,950 $104,005 $149,170 $137,127 $150,000 $105,278 $93,858 $138,742 $137,693 $100,000 $24,239 $23,198 $24,224 $24,341 $50,000 $155,455 $138,618 $133,592 $133,879 $0 $90,
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio $1,600,000 $1,400,000 $1,200,000 $1,000,000 $37,486 $35,373 $35,086 $30,569 $800,000 $113,629 $160,612 $239,559 $210,692 $600,000 $118,443 $115,018 $108,545 $108,191 $400,000 $218,468 4.14% $275,216 5.16% $322,366 5.65% $328,539 5.72% $200,000 $106,921 $119,365 $114,841 $1
Slide 15: Largest Commercial Real Estate Concentrations
Largest Commercial Real Estate Concentrations CRE Concentrations $600,000 $500,000 $400,000 $43,812 $62,439 $66,645 $64,307 $300,000 $55,428 $68,478 $82,518 $83,157 $200,000 $58,382 $87,137 $92,926 $92,654 $100,000 $81,283 $80,670 $97,460 $100,926 $0 $96,515 $120,180 $146,661 $166,642 12/31/2022 12/
Slide 16: Strong Credit Quality
Strong Credit Quality Nonperforming Assets1 / Assets (%) 0.20% 0.15% 0.10% 0.05% 0.00% 0.01% 0.01% 0.01% 0.01% 12/31/2022 12/31/2023 12/31/2024 3/31/2025 1Nonperforming assets = nonaccrual loans, loans 90 days past due and other real estate owned F&M TRUST Franklin Financial Services Corporation 16
Slide 17: Deposits by Category
Deposits by Category Deposits by Category $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $57,390 $132,446 $315,905 $311,530 $400,000 $496,532 $454,517 $417,870 $407,951 $200,000 $698,295 8.5% $677,967 8.9% $791,526 15.4% $849,151 10.6% $0 $299,231 $273,050 $8,677 $290,346 $
Slide 18: Cost of Deposits
Cost of Deposits Cost of Deposits1 (%) 2.50 2.00 1.50 1.00 0.50 0.00 0.23 1.23 1.89 2.02 2022 2023 2024 3/31/2025 1Year-to-date F&M TRUST Franklin Financial Services Corporation 18
Slide 19: Liquidity Available at March 31, 2025
Liquidity Available at March 31, 2025 Dollars in Thousands (000’s) Liquidity Source Capacity Outstanding Available Federal Home Loan Bank $567,117 $200,000 $367,117 Federal Reserve Bank Discount Window $65,885 $ – $65,885 Correspondent Banks $76,000 $ – $76,000 Total $709,002 $200,000 $509,002 F&M T
Slide 20: Wealth Management Total and New Assets Under Management
Wealth Management Total and New Assets Under Management ($000’s) $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $135,423 $1,094,779 $1,230,202 $217,891 $139,872 $1,169,290 $1,309,162 $109,304 $139,918 $1,183,246 $1,323,165 $43,311 12312023 12/31/2024 3/31/2025 Brokerage Trus
Slide 21: Income Statement Highlights
Income Statement Highlights Dollars in Thousands (000’s) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Interest Income $27,058 $26,856 $23,809 Interest Expense $11,452 $11,760 $10,256 Provision for Credit Losses $779 $500 $452 Noninterest Income1 $4,569 $4,574 $4,229 Nonin
Slide 22: Key Performance Measures
Key Performance Measures Percent (%) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Return on Average Assets (ROAA) 0.72 0.09 0.67 ROAA excluding securities losses, net of tax benefit (non-GAAP)1 0.72 0.71 0.67 Return on Average Equity (ROAE) 10.80 1.32 10.21 ROAE excluding
Slide 23: Balance Sheet Strength
Balance Sheet Strength Percent (%) 3/31/2025 12/31/2024 3/31/2024 Risk-Based Capital Ratio (Total) 13.30 13.85 14.53 Leverage Ratio (Tier 1) 7.82 7.92 8.32 Common Equity Ratio (Tier 1) 10.86 11.31 11.91 Tangible Common Equity Ratio 6.33 6.20 6.25 Tangible Common Equity Ratio excluding AOCI 7.75 7.82
Slide 24: Market Statistics
Market Statistics Per Share Measure / Market Valuation Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Diluted Earnings Per Share $0.88 $0.11 $0.77 Cash Dividend Yield 3.61% 4.28% 4.89% Regular Cash Dividends Paid $0.32 $0.32 $0.32 Dividend Payout Ratio 36.16% 290.14% 41.62%
Slide 25: Franklin Financial Stock Symbol: FRAF (Nasdaq)
F&M TRUST Franklin Financial Stock Symbol: FRAF (Nasdaq) www.franklinfin.com www.fmtrust.bank Services Corporation 25
Slide 26: Appendix
Appendix F&M TRUST Franklin Financial Services Corporation 26
Slide 27: GAAP / Non-GAAP Reconciliation: Tangible Book Value
GAAP / Non-GAAP Reconciliation Tangible Book Value (Per Share) (Non-GAAP) Dollars in Thousands (000’s), Except Per Share 3/31/2025 12/31/2024 3/31/2024 Shareholders’ Equity $ 151,391 $ 144,716 $ 134,237 Less Intangible Assets (9,016) (9,016) (9,016) Shareholders’ Equity (Non-GAAP) 142,375 135,700 12
Slide 28: GAAP / Non-GAAP Reconciliation: Net Income Excluding Securities Losses
GAAP / Non-GAAP Reconciliation Net Income Excluding Securities Losses (non-GAAP) Dollars in Thousands (000’s) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Securities Losses as Reported $ – $ (4,267) $ – Securities Losses as Reported, Net of Tax Benefit (Non-GAAP) – (3,371
Slide 29: GAAP / Non-GAAP Reconciliation: Efficiency Ratio
GAAP / Non-GAAP Reconciliation Efficiency Ratio Dollars in Thousands (000’s) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Noninterest Expense $ 14,577 $ 14,335 $ 13,304 Net Interest Income 15,606 15,096 13,553 Plus Tax Equivalent Adjustment to Net Interest Income 251 227
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