FRAF · Franklin Financial Services Corporation

Franklin Financial Services Corporation delivered a strong first quarter in 2026, with net income surging 69.2% year-over-year to $6.6 million, or $1.48 per diluted share. This performance was primarily driven by a significant expansion in net interest margin (NIM), which improved to 3.53% from 3.05% in the prior year quarter. The NIM expansion was fueled by a 13.6% increase in interest income from the loan portfolio and a 19.2% decrease in interest expense, as the cost of total deposits declined to 1.52% from 2.02%. Net interest income rose 18.7% to $18.5 million. Noninterest income also contributed to growth, increasing 17.5% to $5.4 million, aided by higher wealth management fees and a $351 thousand gain from life insurance proceeds. The corporation maintained strong asset quality, with nonaccrual loans holding steady at 0.54% of total gross loans. Balance sheet growth was solid, with total assets increasing 2.6% to $2.298 billion and total deposits growing 2.9% to $1.890 billion. Demonstrating confidence in its financial position, the Board declared a quarterly dividend of $0.34 per share, representing a 3.0% increase over the prior year. The Bank remains "well-capitalized" under regulatory guidelines.