New Risk • Jun 09
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$81k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Recent Insider Transactions • Jun 01
Insider recently sold US$81k worth of stock On the 26th of May, Steven Butz sold around 1k shares on-market at roughly US$57.73 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$127k more than they bought in the last 12 months. Reported Earnings • Apr 26
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: US$1.48 (up from US$0.88 in 1Q 2025). Revenue: US$23.7m (up 22% from 1Q 2025). Net income: US$6.64m (up 69% from 1Q 2025). Profit margin: 28% (up from 20% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 10%. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 25
New major risk - Revenue and earnings growth Earnings have declined by 4.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Declared Dividend • Apr 20
Fourth quarter dividend increased to US$0.34 Dividend of US$0.34 is 3.0% higher than last year. Ex-date: 1st May 2026 Payment date: 27th May 2026 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (28% payout ratio) and is expected to be well covered in 3 years' time (21% forecast payout ratio). The dividend has increased by an average of 5.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 14
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Second Quarter of 2026, Payable on May 27, 2026 On April 9, 2026, the Board of Directors of Franklin Financial Services Corporation declared a $0.34 per share regular cash dividend for the second quarter of 2026. This compares to a $0.33 per share regular cash dividend for the first quarter of 2026 and $0.33 per share regular cash dividend for the second quarter of 2025, which represents an increase of 3.0% over the same quarter in 2025. The regular quarterly cash dividend will be paid May 27, 2026 to shareholders of record at the close of business on May 1, 2026. Announcement • Mar 25
Franklin Financial Services Corporation, Annual General Meeting, Apr 28, 2026 Franklin Financial Services Corporation, Annual General Meeting, Apr 28, 2026. Reported Earnings • Mar 16
Full year 2025 earnings released: EPS: US$4.76 (vs US$2.52 in FY 2024) Full year 2025 results: EPS: US$4.76 (up from US$2.52 in FY 2024). Revenue: US$85.9m (up 24% from FY 2024). Net income: US$21.2m (up 91% from FY 2024). Profit margin: 25% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.25% (up from 2.95% in FY 2024). Cost-to-income ratio: 66.5% (down from 73.4% in FY 2024). Non-performing loans: 0.55% (up from 0.02% in FY 2024). Revenue is forecast to grow 9.0% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Mar 15
Independent Director recently bought US$106k worth of stock On the 9th of March, Gregory Snook bought around 2k shares on-market at roughly US$48.18 per share. This transaction amounted to 33% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold US$85k more in shares than they bought in the last 12 months. Reported Earnings • Jan 29
Full year 2025 earnings released: EPS: US$4.74 (vs US$2.52 in FY 2024) Full year 2025 results: EPS: US$4.74 (up from US$2.52 in FY 2024). Revenue: US$85.9m (up 24% from FY 2024). Net income: US$21.2m (up 91% from FY 2024). Profit margin: 25% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jan 25
Third quarter dividend of US$0.33 announced Shareholders will receive a dividend of US$0.33. Ex-date: 6th February 2026 Payment date: 25th February 2026 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 3.8% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jan 21
Franklin Financial Services Corporation Declares Regular Cash Dividend for the First Quarter of 2026, Payable on February 25, 2026 On January 15, 2026, the Board of Directors of Franklin Financial Services Corporation declared a $0.33 per share regular cash dividend for the first quarter of 2026. This compares to a $0.33 per share regular cash dividend for the fourth quarter of 2025 and $0.32 per share regular cash dividend for the first quarter of 2025, which represents an increase of 3.1% over prior year. The regular quarterly cash dividend will be paid February 25, 2026 to shareholders of record at the close of business on February 6, 2026. Recent Insider Transactions • Dec 26
Independent Director recently sold US$81k worth of stock On the 22nd of December, Kimberly Rzomp sold around 2k shares on-market at roughly US$54.07 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought US$290k more than they sold in the last 12 months. Recent Insider Transactions Derivative • Dec 24
Independent Director notifies of intention to sell stock Kimberly Rzomp intends to sell 2k shares in the next 90 days after lodging an Intent To Sell Form on the 22nd of December. If the sale is conducted around the recent share price of US$53.93, it would amount to US$81k. Since December 2024, Kimberly has owned 7.01k shares directly. Company insiders have collectively bought US$489k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: US$1.19 (vs US$0.96 in 3Q 2024) Third quarter 2025 results: EPS: US$1.19 (up from US$0.96 in 3Q 2024). Revenue: US$21.8m (up 15% from 3Q 2024). Net income: US$5.35m (up 27% from 3Q 2024). Profit margin: 25% (up from 22% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Declared Dividend • Oct 23
Second quarter dividend of US$0.33 announced Shareholders will receive a dividend of US$0.33. Ex-date: 7th November 2025 Payment date: 26th November 2025 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Announcement • Oct 19
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Fourth Quarter of 2025, Payable on November 26, 2025 On October 16, 2025, the Board of Directors of Franklin Financial Services Corporation declared a $0.33 per share regular cash dividend for the fourth quarter of 2025. This compares to a $0.33 per share regular cash dividend for the third quarter of 2025 and $0.32 per share regular cash dividend for the fourth quarter of 2024, which represents an increase of 3.1% over prior year. The regular quarterly cash dividend will be paid November 26, 2025 to shareholders of record at the close of business on November 7, 2025. New Risk • Aug 31
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$64k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.4% per year over the past 5 years. Minor Risk Significant insider selling over the past 3 months (US$64k sold). Declared Dividend • Jul 25
Second quarter dividend of US$0.33 announced Shareholders will receive a dividend of US$0.33. Ex-date: 1st August 2025 Payment date: 27th August 2025 Dividend yield will be 3.1%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Reported Earnings • Jul 23
Second quarter 2025 earnings released: EPS: US$1.32 (vs US$0.67 in 2Q 2024) Second quarter 2025 results: EPS: US$1.32 (up from US$0.67 in 2Q 2024). Revenue: US$21.7m (up 21% from 2Q 2024). Net income: US$5.91m (up 95% from 2Q 2024). Profit margin: 27% (up from 17% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jul 23
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Third Quarter of 2025, Payable on August 27, 2025 On July 17, 2025, the Board of Directors of Franklin Financial Services Corporation declared a $0.33 per share regular quarterly cash dividend for the third quarter of 2025 to be paid on August 27, 2025, to shareholders of record at the close of business on August 1, 2025. Recent Insider Transactions Derivative • May 14
EVP, CFO & Treasurer exercised options to buy US$116k worth of stock. On the 9th of May, Mark Hollar exercised options to buy 3k shares at a strike price of around US$21.27, costing a total of US$64k. This transaction amounted to 26% of their direct individual holding at the time of the trade. Since June 2024, Mark's direct individual holding has increased from 11.36k shares to 13.22k. Company insiders have collectively bought US$773k more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • Apr 17
Fourth quarter dividend increased to US$0.33 Dividend of US$0.33 is 3.1% higher than last year. Ex-date: 2nd May 2025 Payment date: 28th May 2025 Dividend yield will be 3.5%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 44% to shift the payout ratio to a potentially unsustainable range, which is more than the 7.5% EPS decline seen over the last 5 years. Announcement • Apr 15
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Second Quarter of 2025, Payable on May 28, 2025 On April 10, 2025, the Board of Directors of Franklin Financial Services Corporation declared a $0.33 per share regular cash dividend for the second quarter of 2025. This compares to a $0.32 per share regular cash dividend for the first quarter of 2025 and the second quarter of 2024 and represents an increase of 3.1% over the comparable quarters. The regular quarterly cash dividend will be paid May 28, 2025 to shareholders of record at the close of business on May 2, 2025. Announcement • Mar 26
Franklin Financial Services Corporation, Annual General Meeting, Apr 29, 2025 Franklin Financial Services Corporation, Annual General Meeting, Apr 29, 2025. Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: US$2.52 (vs US$3.11 in FY 2023) Full year 2024 results: EPS: US$2.52 (down from US$3.11 in FY 2023). Revenue: US$69.2m (up 5.2% from FY 2023). Net income: US$11.1m (down 18% from FY 2023). Profit margin: 16% (down from 21% in FY 2023). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 2.95% (down from 3.31% in FY 2023). Cost-to-income ratio: 73.4% (up from 70.8% in FY 2023). Non-performing loans: 0.02% (up from 0.01% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Recent Insider Transactions • Mar 13
President & Director recently bought US$250k worth of stock On the 7th of March, Craig Best bought around 7k shares on-market at roughly US$37.00 per share. This transaction amounted to 92% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Craig has been a buyer over the last 12 months, purchasing a net total of US$499k worth in shares. Recent Insider Transactions • Feb 06
President & Director recently bought US$249k worth of stock On the 31st of January, Craig Best bought around 7k shares on-market at roughly US$33.92 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. This was Craig's only on-market trade for the last 12 months. Declared Dividend • Jan 31
Fourth quarter dividend of US$0.32 announced Dividend of US$0.32 is the same as last year. Ex-date: 7th February 2025 Payment date: 26th February 2025 Dividend yield will be 3.7%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 43% to shift the payout ratio to a potentially unsustainable range, which is more than the 7.4% EPS decline seen over the last 5 years. Reported Earnings • Jan 29
Full year 2024 earnings released: EPS: US$2.51 (vs US$3.11 in FY 2023) Full year 2024 results: EPS: US$2.51 (down from US$3.11 in FY 2023). Revenue: US$69.2m (up 5.2% from FY 2023). Net income: US$11.1m (down 18% from FY 2023). Profit margin: 16% (down from 21% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Jan 22
Franklin Financial Services Corporation Declares Regular Cash Dividend for the First Quarter of 2025, Payable on February 26, 2025 On January 16, 2025, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the first quarter of 2025. This compares to a $0.32 per share regular cash dividend for the fourth quarter of 2024. The regular quarterly cash dividend will be paid February 26, 2025 to shareholders of record at the close of business on February 7, 2025. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$33.21, the stock trades at a trailing P/E ratio of 10.4x. Average trailing P/E is 12x in the Banks industry in the US. Total returns to shareholders of 12% over the past three years. Announcement • Dec 26
Franklin Financial Services Corporation and Farmers and Merchants Trust Company of Chambersburg Promotes Lorie M. Heckman to Executive Vice President and Chief Risk Officer On December 18, 2024, Lorie M. Heckman was promoted from Senior Vice President and Chief Risk Officer of Franklin Financial Services Corporation and Farmers and Merchants Trust Company of Chambersburg, the Corporation’s wholly-owned subsidiary, to Executive Vice President and Chief Risk Officer. Reported Earnings • Oct 23
Third quarter 2024 earnings released: EPS: US$0.95 (vs US$0.89 in 3Q 2023) Third quarter 2024 results: EPS: US$0.95 (up from US$0.89 in 3Q 2023). Revenue: US$19.0m (up 13% from 3Q 2023). Net income: US$4.22m (up 9.3% from 3Q 2023). Profit margin: 22% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Declared Dividend • Oct 23
Third quarter dividend of US$0.32 announced Dividend of US$0.32 is the same as last year. Ex-date: 1st November 2024 Payment date: 27th November 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 56% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.0% EPS decline seen over the last 5 years. Announcement • Oct 19
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Fourth Quarter of 2024, Payable on November 27, 2024 On October 17, 2024, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the fourth quarter of 2024. This compares to a $0.32 per share regular cash dividend for the third quarter of 2024. The regular quarterly cash dividend will be paid November 27, 2024 to shareholders of record at the close of business on November 1, 2024. Reported Earnings • Jul 24
Second quarter 2024 earnings released: EPS: US$0.66 (vs US$0.68 in 2Q 2023) Second quarter 2024 results: EPS: US$0.66. Revenue: US$18.0m (up 11% from 2Q 2023). Net income: US$3.03m (up 1.9% from 2Q 2023). Profit margin: 17% (down from 18% in 2Q 2023). The decrease in margin was driven by higher expenses. Declared Dividend • Jul 19
First quarter dividend of US$0.32 announced Dividend of US$0.32 is the same as last year. Ex-date: 2nd August 2024 Payment date: 28th August 2024 Dividend yield will be 4.4%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • May 08
Independent Director recently bought US$58k worth of stock On the 3rd of May, Gregory Duffey bought around 2k shares on-market at roughly US$29.00 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$82k more in shares than they have sold in the last 12 months. Upcoming Dividend • Apr 25
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 01 May 2024. Payment date: 22 May 2024. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.0%). Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: US$0.77 (vs US$0.75 in 1Q 2023) First quarter 2024 results: EPS: US$0.77 (up from US$0.75 in 1Q 2023). Revenue: US$17.3m (up 11% from 1Q 2023). Net income: US$3.36m (up 2.1% from 1Q 2023). Profit margin: 19% (down from 21% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$30.50, the stock trades at a trailing P/E ratio of 9.9x. Average trailing P/E is 9x in the Banks industry in the US. Total returns to shareholders of 14% over the past three years. Declared Dividend • Apr 18
Fourth quarter dividend of US$0.32 announced Dividend of US$0.32 is the same as last year. Ex-date: 1st May 2024 Payment date: 22nd May 2024 Dividend yield will be 4.6%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 17% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 20
Franklin Financial Services Corporation, Annual General Meeting, Apr 23, 2024 Franklin Financial Services Corporation, Annual General Meeting, Apr 23, 2024, at 09:00 US Eastern Standard Time. Agenda: To elect the three nominees identified in the accompanying Proxy Statement as directors to Class C for three-year terms and until their successors are elected and qualified; to provide a non-binding advisory vote approving the compensation paid to named executive officers in 2023; to ratify the Audit Committee’s selection of Crowe LLP as Franklin Financial’s independent registered public accounting firm for 2024; and to consider other business, if any, as may properly be brought before the meeting and any adjournments thereof. Reported Earnings • Mar 14
Full year 2023 earnings released: EPS: US$3.11 (vs US$3.38 in FY 2022) Full year 2023 results: EPS: US$3.11 (down from US$3.38 in FY 2022). Revenue: US$65.8m (flat on FY 2022). Net income: US$13.6m (down 9.0% from FY 2022). Profit margin: 21% (down from 23% in FY 2022). Net interest margin (NIM): 3.31% (up from 3.11% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Jan 31
Full year 2023 earnings released: EPS: US$3.10 (vs US$3.38 in FY 2022) Full year 2023 results: EPS: US$3.10 (down from US$3.38 in FY 2022). Revenue: US$65.8m (flat on FY 2022). Net income: US$13.6m (down 9.0% from FY 2022). Profit margin: 21% (down from 23% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Declared Dividend • Jan 25
Third quarter dividend of US$0.32 announced Dividend of US$0.32 is the same as last year. Ex-date: 31st January 2024 Payment date: 28th February 2024 Dividend yield will be 3.8%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.5% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 14% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: US$0.88 (vs US$1.05 in 3Q 2022) Third quarter 2023 results: EPS: US$0.88 (down from US$1.05 in 3Q 2022). Revenue: US$16.8m (down 5.0% from 3Q 2022). Net income: US$3.86m (down 17% from 3Q 2022). Profit margin: 23% (down from 26% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Oct 26
Upcoming dividend of US$0.32 per share at 4.3% yield Eligible shareholders must have bought the stock before 02 November 2023. Payment date: 22 November 2023. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of American dividend payers (5.3%). In line with average of industry peers (4.1%). Announcement • Oct 22
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Fourth Quarter of 2023, Payable on November 22, 2023 On October 19, 2023, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the fourth quarter of 2023. This compares to a $0.32 per share regular cash dividend for the third quarter of 2023. The regular quarterly cash dividend will be paid November 22, 2023 to shareholders of record at the close of business on November 3, 2023. Upcoming Dividend • Jul 27
Upcoming dividend of US$0.32 per share at 4.3% yield Eligible shareholders must have bought the stock before 03 August 2023. Payment date: 23 August 2023. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.4%). Reported Earnings • Jul 26
Second quarter 2023 earnings released: EPS: US$0.68 (vs US$0.80 in 2Q 2022) Second quarter 2023 results: EPS: US$0.68 (down from US$0.80 in 2Q 2022). Revenue: US$16.2m (flat on 2Q 2022). Net income: US$2.98m (down 17% from 2Q 2022). Profit margin: 18% (down from 22% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • May 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$24.36, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 8x in the Banks industry in the US. Total returns to shareholders of 4.4% over the past three years. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: US$0.75 (vs US$0.68 in 1Q 2022) First quarter 2023 results: EPS: US$0.75 (up from US$0.68 in 1Q 2022). Revenue: US$15.5m (up 5.7% from 1Q 2022). Net income: US$3.29m (up 9.3% from 1Q 2022). Profit margin: 21% (in line with 1Q 2022). Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Upcoming Dividend • Apr 27
Upcoming dividend of US$0.32 per share at 4.4% yield Eligible shareholders must have bought the stock before 04 May 2023. Payment date: 24 May 2023. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 4.4%. Lower than top quartile of American dividend payers (5.0%). Higher than average of industry peers (3.7%). Board Change • Mar 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 7 highly experienced directors. Director Gregory Snook was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Feb 19
Director recently bought US$86k worth of stock On the 14th of February, Gregory Snook bought around 3k shares on-market at roughly US$32.86 per share. This transaction increased Gregory's direct individual holding by 3x at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$123k. Insiders have collectively bought US$386k more in shares than they have sold in the last 12 months. Reported Earnings • Jan 26
Full year 2022 earnings released: EPS: US$3.36 (vs US$4.44 in FY 2021) Full year 2022 results: EPS: US$3.36 (down from US$4.44 in FY 2021). Revenue: US$66.2m (flat on FY 2021). Net income: US$14.9m (down 24% from FY 2021). Profit margin: 23% (down from 30% in FY 2021). Net interest margin (NIM): 3.11% (up from 2.88% in FY 2021). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jan 22
Franklin Financial Services Corporation Declares Regular Cash Dividend for the First Quarter of 2023, Payable on February 22, 2023 On January 19, 2023, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the first quarter of 2023. This compares to a $0.32 per share regular cash dividend for the fourth quarter of 2022. The regular quarterly cash dividend will be paid February 22, 2023 to shareholders of record at the close of business on February 3, 2023. Announcement • Jan 20
Franklin Financial Services Corporation, Annual General Meeting, Apr 25, 2023 Franklin Financial Services Corporation, Annual General Meeting, Apr 25, 2023. Announcement • Dec 22
Franklin Financial Services Corporation and Farmers and Merchants Trust Company of Chambersburg Appoint Gregory I. Snook as Director On December 15, 2022, the Board of Directors of Franklin Financial Services Corporation (the Corporation), appointed Gregory I. Snook as Director of the Corporation. Mr. Snook was appointed as a Class B Director with a term scheduled to expire at the annual meeting of shareholders in 2025. On December 15, 2022, the Board of Directors of Farmers and Merchants Trust Company of Chambersburg (F&M Trust, or the Bank), also appointed Mr. Snook as Director of F&M Trust. Recent Insider Transactions • Dec 19
Independent Director recently bought US$123k worth of stock On the 14th of December, Kevin Craig bought around 4k shares on-market at roughly US$30.77 per share. This transaction amounted to 35% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$323k more in shares than they have sold in the last 12 months. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 6 highly experienced directors. Independent Director Kevin Craig was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 26
Third quarter 2022 earnings released: EPS: US$1.05 (vs US$1.32 in 3Q 2021) Third quarter 2022 results: EPS: US$1.05 (down from US$1.32 in 3Q 2021). Revenue: US$17.7m (flat on 3Q 2021). Net income: US$4.63m (down 21% from 3Q 2021). Profit margin: 26% (down from 33% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Oct 25
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 01 November 2022. Payment date: 28 November 2022. Payout ratio is a comfortable 35% and the cash payout ratio is 89%. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.6%). Higher than average of industry peers (3.2%). Announcement • Oct 20
Franklin Financial Services Corporation Declares Regular Cash Dividend for the Fourth Quarter of 2022, Payable from November 28, 2022 On October 13, 2022, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the fourth quarter of 2022. This compares to a $0.32 per share regular cash dividend for the third quarter of 2022. The regular quarterly cash dividend will be paid November 28, 2022 to shareholders of record at the close of business on November 2, 2022. Board Change • Aug 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 6 highly experienced directors. Independent Director Kevin Craig was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Jul 28
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 04 August 2022. Payment date: 24 August 2022. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.1%). Higher than average of industry peers (3.1%). Reported Earnings • Jul 27
Second quarter 2022 earnings released: EPS: US$0.80 (vs US$1.19 in 2Q 2021) Second quarter 2022 results: EPS: US$0.80 (down from US$1.19 in 2Q 2021). Revenue: US$16.2m (down 1.3% from 2Q 2021). Net income: US$3.58m (down 32% from 2Q 2021). Profit margin: 22% (down from 32% in 2Q 2021). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 16
Franklin Financial Services Corporation Declares Cash Dividend for the Third Quarter of 2022, Payable on August 24, 2022 On July 14, 2022, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular cash dividend for the third quarter of 2022. This compares to a $0.32 per share regular cash dividend for the second quarter of 2022. The regular quarterly cash dividend will be paid August 24, 2022 to shareholders of record at the close of business on August 5, 2022. Upcoming Dividend • Apr 28
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 05 May 2022. Payment date: 25 May 2022. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of American dividend payers (3.8%). Higher than average of industry peers (2.8%). Reported Earnings • Apr 27
First quarter 2022 earnings released: EPS: US$0.67 (vs US$1.10 in 1Q 2021) First quarter 2022 results: EPS: US$0.67 (down from US$1.10 in 1Q 2021). Revenue: US$14.7m (down 7.4% from 1Q 2021). Net income: US$3.01m (down 38% from 1Q 2021). Profit margin: 21% (down from 30% in 1Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Apr 27
Franklin Financial Services Corporation Declares Regular Quarterly Cash Dividend for the Second Quarter of 2022, Payable May 25, 2022 On April 14, 2022, the Board of Directors of Franklin Financial Services Corporation declared a $0.32 per share regular quarterly cash dividend for the second quarter of 2022 to be paid on May 25, 2022, to shareholders of record at the close of business on May 6, 2022. This compares to a $0.32 per share regular quarterly cash dividend for the fourth quarter of 2021 and $0.31 per share for the second quarter of 2021. Reported Earnings • Mar 13
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: US$4.44 (up from US$2.94 in FY 2020). Revenue: US$66.3m (up 26% from FY 2020). Net income: US$19.6m (up 53% from FY 2020). Profit margin: 30% (up from 24% in FY 2020). The increase in margin was driven by higher revenue. Net interest margin (NIM): 2.88% (down from 3.21% in FY 2020). Cost-to-income ratio: 66.1% (down from 67.3% in FY 2020). Non-performing loans: 0.74% (down from 0.87% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Jan 27
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: US$66.3m (up 26% from FY 2020). Net income: US$19.6m (up 53% from FY 2020). Profit margin: 30% (up from 24% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS US$1.33 (vs US$0.79 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$17.8m (up 31% from 3Q 2020). Net income: US$5.86m (up 69% from 3Q 2020). Profit margin: 33% (up from 25% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Oct 28
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 04 November 2021. Payment date: 24 November 2021. Trailing yield: 3.9%. Within top quartile of American dividend payers (3.5%). Higher than average of industry peers (2.2%). Reported Earnings • Jul 31
Second quarter 2021 earnings released: EPS US$1.19 (vs US$0.71 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$16.4m (up 40% from 2Q 2020). Net income: US$5.27m (up 72% from 2Q 2020). Profit margin: 32% (up from 26% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 29
Upcoming dividend of US$0.32 per share Eligible shareholders must have bought the stock before 05 August 2021. Payment date: 25 August 2021. Trailing yield: 3.8%. Within top quartile of American dividend payers (3.5%). Higher than average of industry peers (2.4%). Recent Insider Transactions • Jun 19
Independent Director recently bought US$130k worth of stock On the 16th of June, Kevin Craig bought around 4k shares on-market at roughly US$30.20 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$147k more in shares than they have sold in the last 12 months.