Franklin Financial Services (FRAF) investor relations material

Executive summary

• Net income for Q2 2026 was $6.6 million ($1.47 per diluted share), up 11.9% year-over-year; year-to-date net income was $13.2 million ($2.94 per diluted share), up 34.8% from the prior year period.

• Total assets reached $2.34 billion as of June 30, 2026, a 4.3% increase from year-end 2025; net loans grew to $1.59 billion.

• Deposits increased to $1.93 billion, with wealth management AUM at $1.5 billion, driving noninterest income and profitability.

• The Board declared a $0.34 per share dividend for Q3 2026, a 3.0% increase over the prior year.

• Wealth management fees for Q2 2026 were $2.6 million, up 6.1% year-over-year.

Financial highlights

• Net interest margin was 3.50% in Q2 2026, up from 3.21% in Q2 2025.

• Return on average assets (ROA) was 1.14%, and return on average equity (ROE) was 14.80% for Q2 2026.

• Tangible book value per share increased to $38.90 as of June 30, 2026.

• Efficiency ratio improved to 59.07% in Q2 2026 from 63.71% in Q2 2025.

• Noninterest income for Q2 2026 was $5.1 million; year-to-date, $10.5 million, up 8.7% year-over-year.

Outlook and guidance

• Management expects continued asset and loan growth, with a focus on maintaining strong capital and liquidity positions.

• Forward-looking statements highlight risks from economic conditions, interest rates, inflation, and regulatory changes.