0000723646-16-000062.txt : 20160725 0000723646-16-000062.hdr.sgml : 20160725 20160725103458 ACCESSION NUMBER: 0000723646-16-000062 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160725 DATE AS OF CHANGE: 20160725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN FINANCIAL SERVICES CORP /PA/ CENTRAL INDEX KEY: 0000723646 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 251440803 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12126 FILM NUMBER: 161781371 BUSINESS ADDRESS: STREET 1: 20 S MAIN ST STREET 2: P O BOX 6010 CITY: CHAMBERSBURG STATE: PA ZIP: 17201-0819 BUSINESS PHONE: 7172646116 MAIL ADDRESS: STREET 1: 20 SOUTH MAIN ST STREET 2: PO BOX 6010 CITY: CHAMBERSBURG STATE: PA ZIP: 17201-0819 8-K 1 fraf-20160725x8k.htm 8-K 2016 2nd Qtr Earnings









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 (Date of earliest event reported)  July 25, 2016  



FRANKLIN FINANCIAL SERVICES CORPORATION

(Exact name of registrant as specified in its charter)



Pennsylvania                                  0-12126                        25-1440803

(State or other jurisdiction             (Commission                      (IRS Employer

of incorporation)                     File Number)                      Indent. No.)



20 South Main Street, 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:



o

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



o

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



o

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



o

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

 







Item 2.02  Results of Operations and Financial Condition.



The news release of Franklin Financial Services Corporation, dated July 25, 2016 and attached as Exhibit 99.1, announces its earnings for the three and six months ended June  30, 2016 and is incorporated by reference herein.





Item 9.01  Financial Statements and Exhibits.



    (c)  Exhibits.     The following exhibits are filed herewith:



Number                              Description                                



   99.1                         News Release, dated July 25, 2016             

                                   of Franklin Financial Services Corporation



















                                                        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/ Timothy G. Henry

Timothy G. Henry, President and                                                                                    Chief Executive Officer



Dated: July 25, 2016



 

 

EXHIBIT INDEX



Exhibit Number Description



99.1News release, dated July 25, 2016 of Franklin Financial Services Corporation







































































EX-99.1 2 fraf-20160725xex99_1.htm EX-99.1 8-K EarningsRelease 2Q 2016-Exh 991 SCRUBBED







Exhibit 99.1



July 25, 2016



Franklin Financial Reports Second Quarter 2016 Earnings



(Chambersburg, PA)  Franklin Financial Services Corporation, the bank holding company of F&M Trust, reported earnings of $1.6 million for the second quarter ended June 30, 2016. This represents a 36.9% decrease when compared to second quarter 2015 earnings of $2.5 million and a 42.7% decrease when compared to first quarter 2016 earnings of $2.7 million. Second quarter 2016 earnings were negatively affected by the provision for loan loss expense of $1.88 million compared to $310 thousand during the same quarter of 2015. The increase in the provision expense was due primarily to a $1.94 million charge-off on a participated commercial loan, but also reflected growth in the loan portfolio during the year. With the additional provision expense, the allowance for loan losses remained strong at 1.25% of total loans at June 30, 2016.  Net income for the first six months of 2016 was $4.3 million compared with $5.4 million for the same period in 2015, a decrease of 20.0%. As previously reported, first quarter 2015 earnings were enhanced by two nonrecurring events that increased noninterest income by $899 thousand.



On a per share basis, diluted earnings were $0.36 for the quarter ended June 30, 2016 and $1.00 for the first six months of 2016, compared to $0.58 and $1.26 for the same periods in 2015.



“The Bank’s management team closely monitored the circumstances that brought about this loan charge-off and took the necessary actions based on our ownership of the transaction.” said Timothy G. Henry, President and CEO of F&M Trust. “Despite the adverse impact of the charge-off, we continue to grow commercial loans and lower cost core deposits that are driving the expansion of our net interest margin from 3.60% last year to 3.63% at the end of the second quarter in 2016.”



Total assets at June 30, 2016 were $1.1 billion, a 4.7% increase when compared with total assets of $1.0 billion at December 31, 2015. Net loans increased 5.8% to $816.3 million, which was driven by an increase in commercial loans of $41.5 million, or 7.4%. Total deposits increased 5.1% to $965.6 million, which included growth in noninterest-bearing deposits of 6.9%. Net interest income was $17.0 million, representing an increase of $1.1 million, or 7.3%, when compared to June 30, 2015. The market value of trust assets under management increased 3.4% to $606.3 million.



Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $1 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-two community banking offices located in Boiling Springs, Camp Hill, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mechanicsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg and Waynesboro. Franklin Financial stock is trading on the OTCQX® marketplace of the OTC Markets under the symbol FRAF. Please visit our website for more information, www.franklinfin.com.