Franklin Financial Reports Record Q2 2017 Earnings; Declares Q3 Dividend

CHAMBERSBURG, Pa., July 25, 2017 /PRNewswire/ -- Franklin Financial Services Corporation, the bank holding company of F&M Trust, reported earnings of $3.3 million for the second quarter ended June 30, 2017. This represents a 114.1% increase when compared to second quarter 2016 earnings of $1.6 million and a 10.7% increase when compared to first quarter 2017 earnings of $3.0 million. Net income for the first six months of 2017 was $6.4 million compared with $4.3 million for the same period in 2016, an increase of 48.4%.

Compared to the second quarter of 2016, net interest income increased 10.8% to $ 9.3 million and noninterest income increased 10.5% to $3.2 million. Noninterest expense increased by 5.6%, but the provision for loan loss expense decreased by $ 1.8 million. The increase in year-to-date net income for 2017 was driven by an increase in net interest income of $1.3 million and a reduction in the provision for loan loss expense of $2.0 million.

On a per share basis, diluted earnings were $0.77 for the quarter ended June 30, 2017 and $1.47 for the first six months of 2017, compared to $0.36 and $1.00 for the same periods in 2016.

"We are encouraged by our performance for the second quarter, which is a result of our focus on growth, while maintaining our margins, asset quality and delivering exceptional customer service," said Timothy G. Henry, President and CEO. "We've been successful in attracting new talent that will support revenue expansion across business lines, and we continue to strategically invest in and effectively deploy technologies that improve efficiencies and create value for clients and shareholders."

Total assets at June 30, 2017 were $1.1 billion, a 4.7% increase when compared with total assets at June 30, 2016. Net loans increased 9.0% to $890.1 million, and total deposits increased 4.3% to $1.0 billion for the second quarter of 2017 over the same period last year. Additionally, the market value of assets under management and held at third-party brokers increased 10.8% to $803.7 million ($652.9 million and $150.8 million, respectively).

The Board of Directors of Franklin Financial Services Corporation declared a $0.24 per share regular cash dividend for the third quarter of 2017. This compares to a $0.21 per share regular cash dividend for the third quarter of 2016, representing a 14.3% increase. Total cash dividends paid during the first three quarters of 2017 will be $0.69 per share compared to $0.61 per share in 2016, an increase of 13.1%.

The regular quarterly cash dividend will be paid on August 23, 2017 to shareholders of record at the close of business on August 4, 2017.

Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $1 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-two community banking offices located in Boiling Springs, Camp Hill, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mechanicsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg and Waynesboro. Franklin Financial stock is trading on the OTCQX^® marketplace of the OTC Markets under the symbol FRAF. Please visit our website for more information, www.franklinfin.com.

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements.  The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements when filed with the Securities and Exchange Commission ("SEC"). Accordingly, the financial information in this announcement is subject to change.

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 current views as to likely future developments, and use words "may," "will," "expect," "believe," "estimate," "anticipate," or similar terms.  Because forward-looking statements involve certain risks, uncertainties and other factors over which Franklin Financial Services Corporation has no direct control, actual results could differ materially from those contemplated in such statements.  These factors include (but are not limited to) the following: general economic conditions, changes in interest rates, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in the rate of inflation, changes in technology, the intensification of competition within the Corporation's market area, and other similar factors. 

SOURCE Franklin Financial Services Corporation

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