FRAF · Franklin Financial Services Corporation

Franklin Financial Services Corporation reported strong Q1 2026 results, with net income of $6.6 million, up 69% from $3.9 million in Q1 2025. Diluted EPS rose to $1.48 from $0.88. The improvement was driven by a higher net interest margin of 3.53% (vs. 3.05% a year ago), reflecting a favorable interest rate environment and disciplined liability management. The yield on earning assets increased to 5.28% while the cost of deposits declined to 1.52%. Non-interest income remained stable at $2.3 million, with wealth management fees contributing $1.0 million. Asset quality remained strong, with nonperforming assets at 0.37% of total assets and the allowance for credit losses at 1.32% of loans. The company's tangible common equity ratio stood at 7.42%. The presentations furnished under Item 7.01 provide additional detail on the company's strategy, including its four pillars of priority: low-cost deposits, wealth management, asset quality, and improving profitability. The annual meeting on April 28, 2026, included the election of directors and ratification of auditors.