News Release - October 31, 2012
Franklin Financial Services Corporation
Kenneth C. Ditzler (717) 261-3665
Franklin Financial reports 7.6% earnings improvement
(Chambersburg, PA) Franklin Financial Services
Corporation, the bank holding company of F&M Trust, reported
earnings of $1,747,000 for the quarter ended September 30,
2012 compared to earnings of $1,059,000 for the quarter ended
September 30, 2011. Net income for the first nine months of
2012 was $5,021,000 compared with $4,667,000 for the same
period in 2011, an increase of 7.6%.
Diluted earnings per share were $.43 for the quarter and
$1.24 for the first nine months of
2012. This compares to $.27 and $1.18 for the same periods in
"While some areas across the country are experiencing
economic growth, the recovery does not appear to have reached
South Central Pennsylvania," commented William E. Snell, Jr.,
president and CEO. "The slow current economic environment
continues to stymie growth and have a significant impact on
individuals and businesses in the market. These challenging
times continue with high unemployment numbers and low real
estate market valuations that contribute asset quality issues
at many financial institutions in this region."
"The increase in net income year-over-year was largely
attributed to the provision for loan losses. Last year during
the third quarter we substantially increased our provision
for loan loss expense to $2.8 million as a result of a $1.3
million charge-off of a commercial real estate loan due to
lower appraisal values on the real estate collateral, as well
as to position ourselves for the future. Comparatively, the
2012 provision for loan losses to date is approximately $1.8
million below last year's provision through September 30,
Total assets were $1.06 billion at September 30, 2012,
growing by 6.1% compared to assets on September 30, 2011.
Total deposits and repurchase agreements grew 7.2%, while net
loans were down 2.0% over totals a year earlier. The market
value of trust assets under management increased 5.2% to
$511.1 million at September 30, 2012.
Franklin Financial is the bank holding company for F&M Trust,
a locally-owned and operated community bank with twenty-five
community offices throughout Franklin, Cumberland, Fulton and
Huntingdon Counties in Boiling Springs, Camp Hill, Carlisle,
Chambersburg, Greencastle, Hustontown, Marion,
McConnellsburg, Mont Alto, Newville, Orbisonia, Shippensburg,
St. Thomas, Warfordsburg and Waynesboro. Franklin Financial
stock is listed on the over- the-counter market under the
symbol FRAF (OTCQB: FRAF).
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 1995. 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:
general economic conditions, changes in interest rates,
changes in the Corporation's cost of funds, changes in
government monetary policy, changes in government regulation
and taxation of financial institutions, changes in the rate
of inflation, changes in technology, the intensification of
competition within the Corporation's market area, and other
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.