Franklin Financial Second-Quarter Earnings Decline
Franklin Financial Services Corp., the bank holding company of F&M Trust Co., reported earnings of $1,758,000 for the quarter ended June 30, 2011. When compared to earnings of $2,159,000 for the second quarter of 2010, net income declined by 18.6 percent. Net income for the first six months of 2011 was $3,608,000 compared with $4,133,000 for the same period in 2010, a decrease of 12.7 percent.
On a per-share basis, diluted earnings were 45 cents for the quarter ended June 30, 2011, and 92 cents for the first six months of 2011, compared to 56 cents and $1.07 for the same periods in 2010.
“From an industry perspective, the low interest rate environment, unemployment levels, increased loan delinquency, added federal regulations, and a climbing count of bank failures have had a significant impact on most financial institutions. Like most consumers and businesses, we continue to be challenged by the current economic climate,” commented William E. Snell Jr., president and CEO.
“Housing prices and consumer confidence are big factors when it comes to consumer and small business borrowing. While average loan outstandings for the first six months of 2011 grew to a record $752 million, the growth represented only a 1.5 percent increase from a year earlier. Average commercial loan outstandings increased 6.4 percent, but was offset by a decline in average consumer loan outstandings and lower retention of originations in our residential mortgage portfolio. Average deposit and repurchase agreement balances were up 10.5 percent from a year earlier,” remarked Snell.
Total assets at June 30, 2011, reached a record $1.007 billion, an increase of 2.0 percent over total assets of $987 million at June 30, 2010. Total deposits and repurchase agreements grew 7.7 percent to $860 million, while net loans totaled $762 million at June 30, 2011, an increase of 1.8 percent from totals a year earlier. The market value of trust assets under management was $509 million on June 30, 2011, representing an 11.2 percent increase from a year earlier.