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, 2012
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:
| ¨ | 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)) |
Item 2.02 Results of Operations and Financial Condition.
The news release of Franklin Financial Services Corporation, dated July 25, 2012 and attached as Exhibit 99.1, announces its earnings for the three and six months ended June 30, 2012 and is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed herewith:
| Number | Description | |
| 99 .1 | Press Release, dated July 25, 2012 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/ William E. Snell, Jr. | |
| William E. Snell, Jr., President | ||
| and Chief Executive Officer | ||
Dated: July 25, 2012
Exhibit 99.1
Franklin Financial 2nd quarter earnings grow 8%
(Chambersburg, PA) Franklin Financial Services Corporation, the bank holding company of F&M Trust Company, reported earnings of $1,906,000 for the quarter ended June 30, 2012. When compared to earnings of $1,758,000 for the second quarter of 2011, net income grew by 8.4%. Net income for the first six months of 2012 was $3,275,000 compared with $3,608,000 for the same period in 2011, a decline of 9.2%.
On a per share basis, diluted earnings were $.47 for the quarter ended June 30, 2012 and $.81 for the first six months of 2012, compared to $.45 and $.92 for the same periods in 2011.
“These continue to be very challenging economic times for businesses and consumers,” commented William E. Snell, Jr., President and CEO. “From an industry perspective, the low interest rate environment, unemployment levels, increased loan delinquency, and added federal regulations continue to significantly impact most financial institutions.”
“Locally, there appears to be some improvement in the housing market. However, real estate prices and consumer confidence are big factors when it comes to consumer and small business borrowing. And the lack of demand as well as creditworthiness and appraisal issues have impacted loan volume. Average commercial loan outstandings increased 3.3%, but this growth was offset by an 11.4% decline in average consumer loan outstandings. Average deposit and repurchase agreement balances were up 7.7% from a year earlier,” remarked Snell.
Total assets at June 30, 2012 reached a record $1.057 billion, an increase of 5.0% over total assets of $1.007 billion at June 30, 2011. Total deposits and repurchase agreements grew 5.5% to $908 million, while net loans remained relatively flat from totals a year earlier at $760 million. The market value of trust assets under management was $504 million on June 30, 2012, representing a 1.0% decrease 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 twenty-five community banking offices located throughout Cumberland, Franklin, Fulton and southern Huntingdon counties in Boiling Springs, Camp Hill, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg, St. Thomas, Warfordsburg and Waynesboro. Franklin Financial stock is listed on the OTC Bulletin Board under the symbol FRAF.
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 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 similar factors.