Franklin Financial Services Corporation · NASDAQ:FRAF

Franklin Financial Services — Q4 2025 Earnings Presentation

30 slides from Franklin Financial Services's earnings presentation, Feb 2, 2026

  1. Slide 1: Investor Presentation Fourth Quarter 2025 Highlights

    Investor Presentation Fourth Quarter 2025 Highlights Corporate Headquarters – Chambersburg, PA Stock Symbol: FRAF (Nasdaq)

  2. 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

  3. 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 $2.2 billion financial services corporation located in South-Central Pennsylvania and northern tier of Maryland Franklin Financial’s wholly-owned subsidiary,

  4. Slide 4: 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 4

  5. 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 A compa

  6. 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

  7. 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 Senior Executive Vice President, Chi

  8. 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

  9. Slide 9: Managed Growth

    Managed Growth SELECTED HIGHLIGHTS KEY STATISTICS Total Assets Net Loans Total Deposits Assets Under Management YTD GROWTH PERCENTAGE $2,239 Billion as of 12/31/2025 $2,198 Billion as of 12/31/2024 $1,541 Billion as of 12/31/2025 $1,380 Billion as of 12/31/2024 $1,836 Billion as of 12/31/2025 $1,816

  10. Slide 10: Net Interest Income

    Net Interest Income $41,961 $44,671 $51,586 $53,637 $57,514 $69,646 3.51% 3.06% 3.40% 4.70% 5.16% 5.31% 3.21% 2.88% 3.11% 3.31% 2.95% 3.25% 0.39% 0.24% 0.36% 1.75% 2.68% 2.50% 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Net Interest Income Asset Yield Liability Cost Net Interes

  11. Slide 11: Diversified Income

    Diversified Income Non-Interest Income1 25.83% 29.46% 22.54% 22.57% 23.28% 21.59% $3,658 $5,392 $3,024 $3,610 $4,116 $4,430 $1,844 $2,170 $1,868 $2,157 $2,279 $2,370 $1,977 $2,258 $2,527 $2,492 $2,448 $2,535 $1,536 $2,430 $770 $199 $565 $672 7/14/1916 6/20/1919 7/31/1919 7/25/1920 5/17/1923 2/6/1925

  12. Slide 12: Financial Updates December 31, 2025

    Financial Updates December 31, 2025 12

  13. Slide 13: Balance Sheet Highlights

    Balance Sheet Highlights Dollars in Thousands (000’s) As of 12/31/2025 As of 12/31/2024 As of 12/31/2023 As of 12/31/2022 As of 12/31/2021 As of 12/31/2020 Total Assets $2,239,018 $2,197,841 $1,836,039 $1,699,579 $1,773,806 $1,535,038 Cash and Cash Equivalents $127,721 $203,613 $23,140 $64,899 $175,

  14. Slide 14: Investment AFS Portfolio

    Investment AFS Portfolio $36,330 $45,550 $45,657 $38,733 $31,079 $27,281 $8,453 $30,666 $65,950 $104,005 $149,170 $111,668 $72,241 $122,669 $105,278 $93,858 $138,742 $129,860 $20,288 $24,939 $24,239 $23,198 $24,224 $14,675 $247,054 $212,227 $155,455 $138,618 $133,592 $137,839 $12,574 $12,571 $93,760

  15. Slide 15: Diversified Loan Portfolio

    Diversified Loan Portfolio $5,577 $6,406 $6,199 $6,815 $8,853 $9,657 $145,279 $140,669 $118,443 $115,018 $108,545 $101,958 $218,893 4.05% $225,084 3.86% $242,578 4.14% $303,749 5.16% $355,262 5.65% $422,511 5.84% $135,978 $103,874 $117,159 $127,636 $122,052 $123,541 $266,359 $257,782 $248,216 $300,2

  16. Slide 16: Largest Commercial Real Estate Concentrations

    Largest Commercial Real Estate Concentrations 241.10% 234.40% 239.30% 290.70% 332.90% 382.22% $60,343 $49,160 $43,812 $62,439 $66,645 $97,047 $35,556 $30,938 $55,428 $68,478 $82,518 $87,934 $54,153 $50,105 $58,382 $87,137 $92,926 $92,828 $72,079 $75,839 $81,283 $80,670 $97,460 $102,194 $24,459 $69,7

  17. Slide 17: Credit Quality

    Credit Quality 0.87 0.65 0.74 0.44 0.01 0.36 0.01 0.42 0.02 0.57 0.55 0.63 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Nonperforming Loans / Gross Loans UBPR Peer Group 1Nonperforming loans = nonaccrual loans, loans 90 days past due; 2Peer group data as of 9/30/2025 for banks $

  18. Slide 18: Deposits by Category

    Deposits by Category $76,165 $74,253 $57,390 $132,446 $315,905 $224,323 $409,178 $511,969 $496,532 $454,517 $417,870 $431,843 $610,170 $699,734 $698,295 $677,965 $791,526 $869,355 $259,060 11.1% $298,403 9.0% $299,231 8.5% $273,050 8.9% $290,346 15.4% $310,251 13.1% 12/31/2020 12/31/2021 12/31/2022

  19. Slide 19: Cost of Deposits

    Cost of Deposits 0.28 0.12 0.23 1.23 1.89 1.85 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Average cost year-to-date for all periods 19

  20. Slide 20: Liquidity Available at December 31, 2025

    Liquidity Available at December 31, 2025 Dollars in Thousands (000’s) Liquidity Source Capacity Outstanding Available Federal Home Loan Bank $734,597 $200,000 $534,597 Federal Reserve Bank Discount Window $131,072 $ – $131,072 Correspondent Banks $76,000 $ – $76,000 Total $941,669 $200,000 $741,669

  21. Slide 21: Wealth Management

    Wealth Management $836,382 $946,975 $904,323 $1,094,779 $1,169,290 $1,273,421 $112,624 $60,060 $118,046 $100,457 $116,398 $147,454 $135,423 $217,891 $139,872 $109,604 $147,880 $153,866 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Brokerage Trust New Assets Under Management (YTD)

  22. Slide 22: Income Statement Highlights

    Income Statement Highlights Dollars in Thousands (000’s) Year Ended 12/31/2025 Year Ended 12/31/2024 Year Ended 12/31/2023 Year Ended 12/31/2022 Year Ended 12/31/2021 Year Ended 12/31/2020 Interest Income $114,371 $101,451 $76,762 $56,449 $47,573 $45,939 Interest Expense $44,725 $43,937 $23,125 $4,8

  23. Slide 23: Key Performance Measures

    Key Performance Measures Dollars in Thousands (000’s) Year Ended 12/31/2025 Year Ended 12/31/2024 Year Ended 12/31/2023 Year Ended 12/31/2022 Year Ended 12/31/2021 Year Ended 12/31/2020 Interest Income $114,371 $101,451 $76,762 $56,449 $47,573 $45,939 Interest Expense $44,725 $43,937 $23,125 $4,863

  24. Slide 24: Balance Sheet Strength

    Balance Sheet Strength Percent (%) As of 12/31/2025 As of 12/31/2024 As of 12/31/2023 As of 12/31/2022 As of 12/31/2021 As of 12/31/2020 Risk-Based Capital Ratio (Total) 13.27 13.85 14.45 17.21 18.41 17.69 Leverage Ratio (Tier 1) 8.17 7.92 9.01 8.95 8.52 8.69 Common Equity Ratio (Tier 1) 11.45 11.31

  25. Slide 25: Market Statistics

    Market Statistics1 Per Share Measure / Market Valuation Year End 12/31/2025 Year End 12/31/2024 Year End 12/31/2023 Year End 12/31/2022 Year End 12/31/2021 Year End 12/31/2020 Diluted Earnings Per Share $4.74 $2.51 $3.10 $3.36 $4.42 $2.93 Cash Dividend Yield 2.61% 4.28% 4.06% 3.55% 3.87% 4.44% Regul

  26. Slide 26: Stock Symbol: FRAF (Nasdaq)

    Stock Symbol: FRAF (Nasdaq) www.franklinfin.com www.fmtrust.bank 26

  27. Slide 27: Appendix

    Appendix ; FEM

  28. Slide 28: 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 As of 12/31/2025 As of 12/31/2024 As of 12/31/2023 As of 12/31/2022 As of 12/31/2021 As of 12/31/2020 Shareholders’ Equity $ 175,242 $ 144,716 $ 132,136 $ 114,197 $ 157,065 $ 145,

  29. Slide 29: GAAP / Non-GAAP Reconciliation Net Income Excluding Securities

    GAAP / Non-GAAP Reconciliation Net Income Excluding Securities Losses / Gains (non-GAAP) Dollars in Thousands (000’s) Year End 12/31/2025 Year End 12/31/2024 Year End 12/31/2023 Year End 12/31/2022 Year End 12/31/2021 Year End 12/31/2020 Securities (Losses) / Gains as Reported $ - $ (4,267) $ (1,119

  30. Slide 30: GAAP / Non-GAAP Reconciliation Efficiency Ratio

    GAAP / Non-GAAP Reconciliation Efficiency Ratio Dollars in Thousands (000’s) Year End 12/31/2025 Year End 12/31/2024 Year End 12/31/2023 Year End 12/31/2022 Year End 12/31/2021 Year End 12/31/2020 Noninterest Expense $ 59,656 $ 55,895 $ 50,011 $ 48,691 $ 43,245 $ 39,362 Net Interest Income 69,646 57

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