Franklin Financial Announces Quarter Four Financial Results with Future Growth in Mind

Recently, Franklin Financial, headquartered in Chambersburg, revealed its fourth-quarter earnings, showcasing varied outcomes. As the holding company for F&M Trust, their continued stability was evident despite some fluctuations in their financial figures.

Quarter Four Performance

For the fourth quarter of 2023, the reported net income was $3.5 million, which works out to $0.79 per diluted share. This represents a decline from the previous quarter's $3.9 million, or $0.88 per diluted share. Moreover, when compared to the fourth quarter of the preceding year's $3.7 million, clocking in at $0.84 per diluted share, it marked a 6.6% reduction.

Looking at the entire 2023, the year-to-date net income amounted to $13.6 million, translating to $3.10 per diluted share. This too noted a decrease of 7.7% against the $14.9 million, or $3.36 per diluted share, earned in the same timeframe in 2022. This year's performance was influenced by a $1.1 million loss in securities sales, a $495,000 charge due to lease termination, and a $2.1 million hike in provision for credit losses.

Growth Amidst Challenges

Nevertheless, the company did observe growth in its net loan portfolio. There was a 4.2% rise since the end of the third quarter of 2023 and a 19.7% increase since December 31, 2022. Specifically, net loans grew by $204.1 million or 19.7% over the balance in 2022, largely attributed to a $140 million bump in commercial real estate loans. At the end of the year, commercial real estate loans summed up to $703.8 million, with apartment buildings, office spaces, and hotels and motels constituting the primary collateral segments, mostly located in southcentral Pennsylvania.

President and CEO Tim Henry remarked on the achievements amidst a turbulent financial backdrop marked by swift interest rate changes, banking failures, and market instabilities. He stressed the company's proactive stance in remodeling its investment strategies, curtailing costs, advancing loan balances, addressing deposit challenges, and enhancing its utilization of Salesforce software for improved efficiencies and decision-making. Henry emphasized that these measures are laying the groundwork for a bright future for the independent community bank.

With assets over $1.8 billion, Franklin Financial stands out as the biggest independent, regionally managed bank holding company in Franklin County. Its wholly owned subsidiary, F&M Trust, boasts 22 community banking offices spread across diverse counties in both Pennsylvania and Maryland.

Earnings, Finance, Growth