FRAF Q1 2026 EPS hits $1.48 as NIM expands to 3.53%; ROA clears 1.20%
Franklin Financial Services Corporation (Nasdaq: FRAF) printed first-quarter 2026 diluted EPS of $1.48, up from $0.88 in the year-ago period, in an investor presentation filed via 8-K Regulation FD disclosure. Net…
Franklin Financial Services Corporation (Nasdaq: FRAF) printed first-quarter 2026 diluted EPS of $1.48, up from $0.88 in the year-ago period, in an investor presentation filed via 8-K Regulation FD disclosure. Net interest margin reached 3.53% on a fully taxable-equivalent basis, 48 basis points wider than Q1 2025 and 13 basis points above the fourth quarter. Net income for the quarter came to $6.6 million against $3.9 million twelve months prior.
Margin expansion drives profitability reset
Return on average assets cleared 1.20% in Q1 2026, against 0.72% a year earlier and 1.05% in Q4 2025. Return on average equity reached 15.13%, up from 10.80% in Q1 2025. The yield on earning assets held at 5.28% while cost of deposits came in at 1.52%, a spread that pushed net interest income to $18.5 million from $15.6 million in Q1 2025.
Tangible book value per share came to $37.78 at quarter end, up from $31.97 in Q1 2025. The Tier 1 common equity ratio stood at 11.81%, versus 10.86% a year prior. Franklin Financial also paid a quarterly dividend of $0.33 per share, unchanged from Q4 2025 and a penny above the Q1 2025 payout.
Balance sheet and credit
Total loans reached $1.57 billion at March 31, 2026, up from $1.46 billion a year earlier. Total deposits grew to $1.89 billion. The allowance for credit losses to total loans held at 1.32%, flat with Q4 2025.
Nonperforming assets as a share of total assets were 0.37%, compared to 0.38% in the prior quarter. The company cited a five-year average NPL-to-gross-loans ratio of 0.27% and a five-year average net charge-off rate of 0.03%.
Wealth management and what to watch
Assets under management in the wealth segment reached $1.4 billion as of March 31, 2026, a line the company counts as a driver of non-interest income alongside commercial and retail operations. Core non-interest income for Q1 2026 came to $2.31 million, on the company's measure that excludes BOLI gains and asset sale gains.
Franklin Financial operates 22 locations across South-Central Pennsylvania and Washington County, Maryland, and holds a 34% deposit market share in Franklin County. The next item for the tape is the company's second-quarter 2026 results.