Franklin Financial reported second-quarter 2026 net income of $6.6 million, or $1.47 per diluted share, up 11.9% from the year-ago quarter, and year-to-date net income of $13.2 million ($2.94 diluted EPS), a 34.8% increase versus the first half of 2025. Total assets were $2.335 billion and the board declared a $0.34 per share quarterly cash dividend payable August 26, 2026. Quarterly performance metrics included an annualized ROA of 1.14%, ROE of 14.80% and a net interest margin of 3.50%.

Financial Highlights

  • Net income (Q2 2026): $6.611 million; diluted EPS: $1.47 (up 11.9% vs Q2 2025).
  • Net income (YTD 6/30/2026): $13.248 million; diluted EPS YTD: $2.94 (up 34.8% vs prior year).
  • Net interest income (Q2 2026): $19.347 million; net interest income YTD: $37.867 million (15.3% increase Q2 vs prior year quarter).
  • Total assets: $2.335 billion as of June 30, 2026; total deposits: $1.924588 billion.
  • Declared regular quarterly cash dividend: $0.34 per share to be paid August 26, 2026 (record date August 7, 2026).

Business Highlights

  • Asset and loan growth: Total assets rose 4.3% from year-end 2025 to $2.335 billion; net loans increased to $1.588755 billion (3.1% growth since 12/31/2025), driven by increases in commercial real estate and residential 1-4 family lending.
  • Deposit mix shift: Deposits increased 4.8% from year-end 2025 with majority growth in noninterest-bearing checking accounts and money management accounts; noninterest checking represented 17.7% of total deposits at quarter end.
  • Wealth management momentum: Fees of $2.567 million in Q2 and assets under management of $1.481469 billion as of June 30, 2026.
  • Credit and asset quality actions: Nonperforming loans rose to $17.7 million primarily due to two CRE loans; the bank provided additional funding and forbearance on a construction loan and increased specific reserves related to those loans.
  • Capital and shareholder metrics: Shareholders' equity totaled $183.845 million; tangible book value per share was $38.90 and the bank remains well-capitalized under regulatory guidance.

Original SEC Filing:

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