Form 8-K

8-K — FRANKLIN FINANCIAL SERVICES CORP /PA/

Accession: 0000723646-26-000063

Filed: 2026-07-24

Period: 2026-07-24

CIK: 0000723646

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — fraf-20260724x8k.htm (Primary)

EX-99.1 (fraf-20260724xex99_1.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: fraf-20260724x8k.htm · Sequence: 1

fraf-20260724x8k

false000072364600007236462026-07-242026-07-24

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report: July 24, 2026

FRANKLIN FINANCIAL SERVICES CORPORATION

(Exact name of registrant as specified in its new charter)

Pennsylvania

001-38884

25-1440803

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

1500 Nitterhouse Drive, Chambersburg, PA

17201

(Address of principal executive office)

(Zip Code)

Registrant's telephone number, including area code

(717) 264-6116

N/A

(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a –12 under the Exchange Act (17 CFR 240.14a –12)

¨ Pre-commencement communications pursuant to Rule 14d – 2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e – 4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of class

Symbol

Name of exchange on which registered

Common stock

FRAF

Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

‎

Item 2.02 Results of Operations

The news release of Franklin Financial Services Corporation, dated July 24, 2026 and attached as Exhibit 99.1, announces its earnings for the three and six months ended June 30, 2026 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

Number Description

99.1 News Release, dated July 24, 2026 of Franklin Financial Services Corporation

104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN FINANCIAL SERVICES CORPORATION

By: /s/ Craig W. Best

Craig W. Best

Chief Executive Officer

By: /s/ Charles B. Carroll, Jr.

Charles B. Carroll, Jr.

President

Dated: July 24, 2026

EX-99.1

Filename: fraf-20260724xex99_1.htm · Sequence: 2

8-K EarningsRelease 2Q 2026-Exh 991

Exhibit 99.1

July 24, 2026

Franklin Financial Reports Second Quarter and Year-to-Date 2026 Results;

Declares Dividend

(CHAMBERSBURG, PA) Franklin Financial Services Corporation (the Corporation) (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank) headquartered in Chambersburg, PA, reported its second quarter and year-to-date 2026 financial results.

A summary of notable operating results as of or for the second quarter ended June 30, 2026 follows:

Net Income: $6.6 million ($1.47 per diluted share) for the second quarter of 2026 compared to $5.9 million ($1.32 per diluted share) for the second quarter of 2025, an increase of 11.9%.

Wealth Management: Fees were $2.6 million, an increase of 6.1% from $2.4 million in the second quarter of 2025. Assets under management were $1.5 billion on June 30, 2026.

Asset Growth: $2.335 billion in assets on June 30, 2026, compared to $2.239 billion at year-end 2025, an increase of 4.3% (8.6% annualized).

Loan Growth: Total net loans of $1.589 billion on June 30, 2026, an increase of 3.1% (6.2% annualized) from December 31, 2025.

Deposit Growth: Total deposits of $1.925 billion on June 30, 2026, an increase of 4.8% (9.6% annualized) from December 31, 2025.

Quarterly Performance Metrics: Return on Average Assets (ROA) 1.14%, Return on Average Equity (ROE) 14.80%, and Net Interest Margin (NIM) of 3.50% on an annualized basis, compared to a ROA of 1.04%, ROE of 15.64%, and NIM of 3.21% for the second quarter of 2025.

On July 16, 2026, the Board of Directors declared a $0.34 per share regular quarterly cash dividend for the third quarter of 2026 to be paid on August 26, 2026, to shareholders of record at the close of business on August 7, 2026.

A summary of notable operating results for the six months ended June 30, 2026 follows:

Net Income: $13.2 million ($2.94 per diluted share) compared to $9.8 million ($2.20 per diluted share) for the six months ended June 30, 2025, an increase of 34.8%.

Wealth Management: Fees were $4.9 million, an increase of 5.2% from $4.6 million for the first six months of 2025.

Year-to-Date Performance Metrics: Return on Average Assets (ROA) 1.17%, Return on Average Equity (ROE) 14.96%, and Net Interest Margin (NIM) of 3.52% on an annualized basis, compared to a ROA of 0.89%, ROE of 13.27%, and NIM of 3.13% for the comparable period in 2025.

Balance Sheet Highlights

Total assets on June 30, 2026 were $2.335 billion an increase of 4.3% from $2.239 billion on December 31, 2025. Significant changes in the balance sheet from December 31, 2025, to June 30, 2026, include:

Debt Securities Available for Sale: Decreased $2.2 million, or (0.5%), net of purchases, due primarily to paydowns. On June 30, 2026, the net unrealized loss in the portfolio was $29.1 million compared to $26.8 million at year-end 2025.

Net Loans: Increased $48.2 million or 3.1% (6.2% annualized) over the year-end 2025 balance, primarily from an increase of $45.8 million in commercial real estate (CRE) loans and $24.7 million in residential 1-4 family loans, which was partially offset by a decrease of $19.6 million in commercial (C&I) loans. As of June 30, 2026, CRE loans totaled $949.4 million with the largest collateral segments being: apartment buildings ($161.9 million), hotels and motels ($105.8 million), and office buildings ($100.1 million), primarily in the Bank's market area of south-central Pennsylvania. The Bank’s CRE non-owner occupied concentration ratio was 348.2% of risk-based capital as of June 30, 2026, down from 349.9% on December 31, 2025.

Deposits: Increased $88.8 million or 4.8% (9.6% annualized)) from year-end 2025. The majority of the growth occurred in noninterest-bearing checking accounts and money management accounts, which was partially offset by a decrease in interest-bearing checking and savings accounts. At June 30, 2026, 17.7% of total deposits were in noninterest checking accounts, compared to 16.9% at year-end 2025. For the first six months of 2026, the cost of total deposits was 1.51%, a decrease from 1.85% for the full year of 2025. On June 30, 2026, the Bank estimated that approximately 90% of its deposits were FDIC insured or collateralized.

Shareholders' Equity: Increased $8.6 million to $183.8 million on June 30, 2026 from year-end 2025, and retained earnings increased $10.2 million, net of dividends of $3.0 million, over the same period. The accumulated other comprehensive loss (AOCI) increased $1.9 million during the first six months of 2026 to $23.5 million. On June 30, 2026, the book value of the Corporation's common stock was $40.91 per share and tangible book value (1) increased $1.81 per share from December 31, 2025 to $38.90 per share. In December 2025, an open market repurchase plan was approved to repurchase 150,000 shares over a one-year period and 10,950 shares were repurchased in the first six months of 2026 under the approved plan to fund the dividend reinvestment plan. The Bank is considered to be well-capitalized under regulatory guidance as of June 30, 2026.

Average Assets: Average interest-earning assets for the first six months of 2026 were $2.198 billion, compared to $2.146 billion for the same period in 2025, an increase of 2.5%. This increase occurred primarily in the loan portfolio which increased 8.8%, driven by a $82.2 million (9.9%) increase in commercial real estate loans and a $44.0 million (17.6%) increase in first lien 1-4 residential real estate loans. The yield on earning assets decreased from 5.28% for the first six months of 2025 to 5.25% for the first six months of 2026. The yield on the loan portfolio increased by 9 basis points, but this increase was partially offset as higher yielding investments continued to paydown and the yield on interest-earning deposits in other banks declined. The yield on earning assets was 5.22% for the second quarter of 2026. Total deposits averaged $1.878 billion for the first six months of 2026, an increase of $26.7 million (1.4%) over the average balance for the same period in 2025. The cost of total deposits decreased from 1.95% for the first six months of 2025 to 1.51% for the first six months of 2026 and decreased to 1.50% for the second quarter of 2026.

Nonperforming Assets: Nonperforming loans (nonaccrual loans and loans 90 days past due and still accruing) totaled $17.7 million on June 30, 2026, compared to $8.5 million on December 31, 2025, an increase of $9.2 million due to the addition of an $8.8 million CRE loan to nonaccrual status during the second quarter of 2026. Nonperforming loans were 1.1% of total gross loans on June 30, 2026 compared to 0.55% on December 31, 2025. The nonperforming loans are comprised primarily of two (2) CRE loans to unrelated borrowers totaling $17.4 million. Of these two CRE loans, one is for a matured $7.0 million construction loan on a mixed-use commercial project. During the second quarter, the Bank committed to provide additional funding of up to $2.5 million (with $1.6 million advanced as of June 30, 2026) to fully enclose the property and protect the collateral, and to pay all past due construction costs. As part of this funding commitment, a forbearance agreement was signed by the developer that ceased all construction until funding from new sources was acquired, established specific performance criteria for the developer, and established specific remedies for the Bank in the event of non-compliance with the forbearance agreement. Based on a discounted “as-is” appraisal received in the first quarter of 2026 and the additional funding committed, the Bank increased its specific reserve from $1.0 million on March 31, 2026, to $1.2 million on June 30, 2026. The second CRE loan totals $8.8 million and is secured by six (6) commercial office buildings. This loan is a purchased participation loan where the Bank is not the lead lender. The loan was placed on nonaccrual status during the second quarter of 2026, and as of June 30, 2026, the Bank has a specific reserve of $734 thousand based on a recent appraisal.

Allowance for Credit Losses (ACL): The ACL to loans ratio was 1.36% on June 30, 2026, compared to 1.32% on December 31, 2025. The increase is driven by the increase in the specific reserves previously discussed above. The allowance for credit losses (ACL) for unfunded commitments was $2.0 million on June 30, 2026, and $1.9 million on December 31, 2025.

Income Statement Highlights – Second Quarter Comparison 2026 v. 2025

Net income: Net income for the second quarter of 2026 was $6.6 million ($1.47 per diluted share) compared to $5.90 million ($1.32 per diluted share) for the second quarter of 2025, an increase of 11.9%.

Net Interest Income: $19.3 million for the second quarter of 2026 compared to $17.2 million for the second quarter of 2025, an increase of $2.1 million, or 12.2%. The improvement was driven primarily by a decrease in interest expense, as the increase in interest from loans was partially offset by a decrease in interest from the investment portfolio.

Provision for Credit Losses: For the second quarter of 2026, the provision for credit losses on loans was $1.6 million compared to $704 thousand for the same quarter of 2025. The increased provision for credit losses on loans was due primarily to an increase in the specific reserve on two nonaccrual loans discussed above. The provision for credit losses on unfunded commitments was $39 thousand for the second quarter of 2026 compared to a reversal of $69 thousand for the second quarter of 2025.

Noninterest Income: Noninterest income totaled $5.1 million for the second quarter of 2026 compared to $5.1 million for the same quarter of 2025. As compared to the prior year quarter, wealth management fees and the gain on sale of loans increased, but the increase was nearly offset by a state sales tax refund recorded in the second quarter of 2025.

Noninterest Expense: For the second quarter of 2026 was $14.6 million compared to $14.4 million for the second quarter of 2025 (an increase of 1.5%). The increase in salary expense was more than offset by a decrease in health insurance expense during the quarter, and other operating expense increased $230 thousand.

Income Tax: The effective income tax rate was 19.9% for the second quarter of 2026 and 19.3% for the same period in 2025.

Income Statement Highlights – Year-to-date Comparison 2026 v. 2025

Provision for Credit Losses: For the first six months of 2026, the provision for credit losses on loans was $1.8 million compared to $1.5 million for the same period of 2025. The provision for credit losses on unfunded commitments was $58 thousand for the first six months of 2026 compared to a reversal of $40 thousand for the same period of 2025.

Noninterest Income: Noninterest income totaled $10.5 million for the first six months of 2026 compared to $9.7 million for the same period of 2025, an increase of 8.7%. The increase was spread across nearly all fee income categories with the largest increases in wealth management fees and gains on loan sales and deposit fees.

Noninterest Expense: For the first six months of 2026, noninterest expense was $30.0 million compared to $29.0 million for the same period of 2025 (an increase of 3.4%). The increases occurred primarily in salaries, professional fees, and Pennsylvania shares tax, and were partially offset by a decrease in FDIC insurance premiums.

Income Tax: The effective income tax rate was 20.0% for the six months of 2026 and 19.0% for the same period in 2025.

(1)

Non-GAAP measure. See GAAP versus Non-GAAP Reconciliation Presentations that follows.

Additional information on the Corporation is available on our website at: www.franklinfin.com/Presentations.

Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $2.2 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-three community banking locations in Franklin, Cumberland, Dauphin, Fulton and Huntingdon Counties PA, and Washington County MD. Franklin Financial stock is trading on the Nasdaq Stock Market 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 I995. 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: changes in interest rates, changes in the rate of inflation, general economic conditions and their effect on the Corporation and our customers, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in technology, the intensification of competition within the Corporation's market area, and other similar factors.

We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K.

GAAP versus non-GAAP Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets. By eliminating intangible assets (Goodwill), the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. In the event of such a disclosure or release, the Securities and Exchange Commission’s Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The following table shows the calculation of the non-GAAP measurements.

FRANKLIN FINANCIAL SERVICES CORPORATION (unaudited)

Income Statement

For the Three Months Ended

For the Six Months Ended

(Dollars in thousands, except per share data)

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

% Change

Interest income

Loans, including fees

23,159

22,567

21,425

45,727

41,289

10.7%

Interest and dividends on investments:

Taxable interest

3,480

3,616

4,524

7,096

9,349

-24.1%

Tax exempt interest

265

266

269

530

540

-1.9%

Dividend income

201

202

189

404

379

6.6%

Interest-earning deposits in other banks

1,826

1,119

2,193

2,944

4,101

-28.2%

Total interest income

28,931

27,770

28,600

56,701

55,658

1.9%

Interest expense

Deposits

7,202

6,887

8,918

14,089

17,948

-21.5%

FHLB overnight borrowings and advances

2,181

2,157

2,181

4,339

0.0%

Subordinate notes

201

205

263

406

528

-23.1%

Total interest expense

9,584

9,249

11,362

18,834

22,815

-17.4%

Net interest income

19,347

18,521

17,238

37,867

32,843

15.3%

Provision for credit losses - loans

1,600

202

704

1,802

1,454

23.9%

Provision for credit losses - unfunded commitments

(69)

(40)

-245.0%

Total provision for credit losses

1,639

221

635

1,860

1,414

31.5%

Net interest income after credit loss expense

17,708

18,300

16,603

36,007

31,429

14.6%

Noninterest income

Wealth management fees

2,567

2,306

2,419

4,873

4,633

5.2%

Loan service charges

289

238

294

527

503

4.8%

Gain on sale of loans

227

318

132

545

241

126.1%

Deposit service charges and fees

694

647

613

1,341

1,218

10.1%

Other service charges and fees

521

482

480

1,002

963

4.0%

Debit card income

632

618

608

1,251

1,167

7.2%

Increase in cash surrender value of life insurance

135

132

116

267

230

16.1%

Change in fair value of equity securities

—

(7)

-100.0%

Other

619

441

703

716

-1.8%

Total noninterest income

5,149

5,360

5,103

10,509

9,664

8.7%

Noninterest Expense

Salaries

6,453

6,237

6,210

12,690

12,386

2.5%

Employee benefits

2,162

2,788

2,654

4,949

4,984

-0.7%

Net occupancy

1,178

1,241

1,146

2,419

2,371

2.0%

Marketing and advertising

362

426

353

788

786

0.3%

Legal and professional

556

695

537

1,251

1,064

17.6%

Data processing

1,578

1,540

1,514

3,119

3,071

1.6%

Pennsylvania bank shares tax

236

254

137

490

297

65.0%

FDIC Insurance

367

483

409

850

954

-10.9%

ATM/debit card processing

383

377

344

760

683

11.3%

Telecommunications

128

135

109

262

216

21.3%

Other

1,206

1,177

976

2,382

2,153

10.6%

Total noninterest expense

14,609

15,353

14,389

29,960

28,965

3.4%

Income before income taxes

8,248

8,307

7,317

16,556

12,128

36.5%

Income tax expense

1,637

1,670

1,409

3,308

2,299

43.9%

Net income

6,611

6,637

5,908

13,248

9,829

34.8%

Per share

Basic earnings per share

1.47

1.48

1.32

2.95

2.21

Diluted earnings per share

1.47

1.48

1.32

2.94

2.2

Consolidated Balance Sheet (as of)

6/30/2026

3/31/2026

6/30/2025

(Dollars in thousands, except per share data)

Assets

Cash and due from banks

25,560

23,976

27,426

Short-term interest-earning deposits in other banks

169,471

186,801

180,364

Total cash and cash equivalents

195,031

210,777

207,790

Long-term interest-earning deposits in other banks

750

999

Debt securities available for sale, at fair value

452,345

436,483

481,259

Restricted stock

8,985

8,897

8,894

Loans held for sale

2,797

1,850

1,486

Loans

1,610,619

1,572,426

1,519,157

Allowance for credit losses

(21,864)

(20,729)

(19,122)

Net Loans

1,588,755

1,551,697

1,500,035

Other assets

86,518

87,064

86,282

Total assets

2,335,181

2,297,518

2,286,745

Liabilities

Deposits

Noninterest-bearing checking

341,103

331,658

294,034

Money management, savings, and interest checking

1,354,833

1,319,494

1,279,602

Time

228,652

238,558

319,835

Total deposits

1,924,588

1,889,710

1,893,471

Federal Home Loan Bank advances

200,000

Subordinate notes

10,855

10,850

19,719

Other liabilities

15,893

18,214

16,191

Total liabilities

2,151,336

2,118,774

2,129,381

Shareholders' equity

Common Stock

4,711

Additional paid-in capital

44,135

43,776

43,763

Retained earnings

165,085

160,001

146,403

Accumulated other comprehensive loss

(23,458)

(23,265)

(30,784)

Treasury stock

(6,628)

(6,479)

(6,729)

Total shareholders' equity

183,845

178,744

157,364

Total liabilities and shareholders' equity

2,335,181

2,297,518

2,286,745

Assets Under Management as of (fair value)

6/30/2026

3/31/2026

6/30/2025

Wealth Management

1,326,643

1,271,068

1,221,333

Held at third party brokers

154,826

145,477

138,763

Total assets under management

1,481,469

1,416,545

1,360,096

Key performance ratios as of or for the period ended as shown:

As of or for the Three Months Ended

As of or for the Six Months Ended

Performance Measurements

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Return on average assets*

1.14%

1.20%

1.04%

1.17%

0.89%

Return on average equity*

14.80%

15.13%

15.64%

14.96%

13.27%

Efficiency ratio (1)

59.07%

63.64%

63.71%

61.33%

67.37%

Net interest margin*

3.50%

3.53%

3.21%

3.52%

3.13%

Shareholders' Value (per common share)

Diluted earnings per share

1.47

1.48

1.32

2.94

2.20

Regular cash dividend paid

0.34

0.33

0.67

0.65

Dividend payout ratio

23.10%

22.30%

24.92%

22.70%

29.39%

Book value, per share

40.91

39.78

35.22

Tangible book value (1)

38.90

37.78

33.20

Market value, per share

62.60

51.08

34.63

Market value/book value ratio

153.02%

128.40%

98.31%

Market value/tangible book value ratio

160.91%

135.22%

104.28%

Price/earnings multiple*

10.65

8.63

6.56

Current quarter dividend yield*

2.17%

2.58%

3.81%

Safety and Soundness

Net loans recovered (charged-off)/average loans*

-0.12%

-0.03%

0.00%

-0.07%

0.00%

Nonperforming loans / gross loans

1.10%

0.54%

0.71%

Nonperforming assets / total assets

0.76%

0.37%

0.47%

Allowance for credit losses / loans

1.36%

1.32%

1.26%

* Annualized

(1) Non-GAAP measurement. See GAAP versus Non-GAAP disclosure reconciliation

GAAP versus non-GAAP Reconciliation Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets.  By eliminating intangible assets (Goodwill), the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.  In the event of such a disclosure or release, the Securities and Exchange Commission’s Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The following table shows the calculation of the non-GAAP measurements.

Non-GAAP

(Dollars in thousands, except per share)

As of

6/30/2026

3/31/2026

6/30/2025

Tangible Book Value (per share) (non-GAAP)

Shareholders' equity

183,845

178,744

157,364

Less intangible assets

(9,016)

Tangible book value

174,829

169,728

148,348

Shares outstanding (in thousands)

4,494

4,493

4,468

Tangible book value per share

38.90

37.78

33.20

For the three months ended

For the Year to date period ended

Efficiency Ratio (non-GAAP)

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Noninterest expense

14,609

15,353

14,389

29,960

28,965

Net interest income

19,347

18,521

17,238

37,867

32,843

Plus tax equivalent adjustment to net interest income

237

245

474

490

Plus noninterest income, net of securities gains/losses

5,149

5,360

5,103

10,509

9,664

Total revenue

24,733

24,126

22,586

48,850

42,997

Efficiency ratio: noninterest expense /total revenue

59.07%

63.64%

63.71%

61.33%

67.37%

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Jul. 24, 2026

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FRANKLIN FINANCIAL SERVICES CORPORATION

Entity Incorporation, State or Country Code

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001-38884

Entity Tax Identification Number

25-1440803

Entity Address, Address Line One

1500 Nitterhouse Drive

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Chambersburg

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