Franklin Financial 2nd Quarter Earnings Decline
Franklin Financial Services Corp., the bank holding company of F&M Trust, reported earnings of $1,355,000 for the quarter ended June 30, 2013. When compared to earnings of $1,906,000 for the second quarter of 2012, net income decreased by 28.9 percent. Net income for the first six months of 2013 was $2,906,000 compared with $3,275,000 for the same period in 2012, a decline of 11.3 percent.
On a per-share basis, diluted earnings were 33 cents for the quarter ended June 30, 2013, and 70 cents for the first six months of 2013, compared to 47 cents and 81 cents for the same periods in 2012.
“The economy continues to limp along and has not shown much improvement, which means a continuation of challenging times for businesses and consumers,” commented William E. Snell Jr., president and CEO. “Many business owners are concerned about the increased expenses on insurance coverage for employees and the new health insurance tax mandated in the Patient Protection and Affordable Care Act (ObamaCare). Most community banks are also experiencing margin compression and sluggish loan demand despite the favorable interest rate environment.
“Consumer and small business borrowing has been adversely impacted by real estate prices, unemployment and consumer confidence. As a result, average loan outstandings decreased 2.4 percent and average commercial loan outstandings declined by 4.4 percent,” remarked Snell.
Total assets at June 30, 2013, were $1.033 billion, a decline of 2.3 percent over total assets of $1.057 billion at June 30, 2012. Total deposits and repurchase agreements grew 1.4 percent to $920.7 million, while net loans declined 5.4 percent from totals a year earlier to $717.7 million. The market value of trust assets under management was $557.8 million on June 30, 2013, representing a 10.8 percent increase from a year earlier.
Franklin Financial is an independent, locally owned and operated bank holding company headquartered in Chambersburg. Its wholly owned subsidiary, F& M Trust operates 26 community banking offices located throughout Cumberland, Franklin, Fulton and southern Huntingdon counties.