Franklin Financial Services (FRAF) investor relations material

Executive summary

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

• Total assets reached $2.335 billion as of June 30, 2026, a 4.3% increase from year-end 2025.

• Wealth management AUM grew to $1.5B, driving non-interest income and profitability.

• The Board declared a $0.34 per share regular quarterly cash dividend for Q3 2026.

Financial highlights

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

• Net interest income for Q2 2026 was $19.3 million, up 12.2% year-over-year; noninterest income was $5.1 million.

• 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, up from $33.20 in Q2 2025.

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

Outlook and guidance

• Management emphasizes continued focus on low-cost deposit franchise, expanding wealth management, asset quality, and improving profitability.

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