Download PDF

1. Company Snapshot

1.a. Company Description

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania.It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits.The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans to consumers; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing.


In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, as well as custodial services; sells mutual funds, annuities, and insurance products; and offers safe deposit facilities and fiduciary services.Further, the company, through its subsidiary, Franklin Future Fund Inc., operates as a non-bank investment company that makes venture capital investments.It operates twenty-two community banking offices in Franklin, Cumberland, Fulton, and Huntingdon counties, Pennsylvania.


Franklin Financial Services Corporation was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

Show Full description

1.b. Last Insights on FRAF

Franklin Financial Services Corporation's recent performance was negatively impacted by a lack of significant news or events, with the most recent earnings release being a positive catalyst. However, a closer examination of the company's Q1 2025 results reveals that loan growth and higher margins were offset by rising fees, which may indicate increasing competition in the market. Additionally, the company's leadership transition, while ushering in a new strategic phase, may have introduced some uncertainty among investors.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

Franklin Financial Q3 Profit Jumps 27% Y/Y on Strong Loan Growth

Oct -30

Source: zacks.com

Card image cap

Franklin Financial Reports Third Quarter and Year-to-Date 2025 Results; Declares Dividend

Oct -28

Source: prnewswire.com

Card image cap

Franklin Financial Earnings Surge 95% Y/Y in Q2, Stock Slips

Jul -25

Source: zacks.com

Card image cap

Franklin Financial Reports Second Quarter and Year-to-Date 2025 Results; Declares Dividend

Jul -22

Source: prnewswire.com

Card image cap

Franklin Financial Q1 Earnings Rise 17% Y/Y on Loan & Deposit Growth

May -01

Source:

Card image cap

Franklin Financial Reports First Quarter 2025 Results; Declares Dividend

Apr -29

Source: prnewswire.com

Card image cap

Zacks Initiates Coverage of Franklin Financial With Outperform Recommendation

Apr -04

Source: zacks.com

Card image cap

Franklin Financial Reports 2024 Q4 and Year-to-Date Results; Declares Dividend

Jan -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Franklin Financial Services Corporation's Banking and Related Activities segment is expected to grow driven by increasing demand for consumer and commercial banking services, expansion of digital banking channels, and strategic partnerships to enhance deposit and loan products.

7. Detailed Products

Consumer Loans

Personal loans for individuals to meet their financial needs, such as debt consolidation, weddings, or unexpected expenses.

Mortgage Loans

Home financing solutions for purchasing or refinancing a home, including fixed-rate and adjustable-rate mortgages.

Home Equity Loans

Loans that allow homeowners to tap into the equity in their home for home improvements, debt consolidation, or other expenses.

Credit Cards

A range of credit cards with competitive rates, rewards, and benefits for individuals and businesses.

Investment Services

A suite of investment products, including brokerage services, retirement accounts, and wealth management.

Insurance Services

A range of insurance products, including life, disability, and long-term care insurance.

8. Franklin Financial Services Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Franklin Financial Services Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Franklin Financial Services Corporation's customers have significant bargaining power due to the availability of alternative financial services providers. The company's pricing strategy and customer retention efforts are crucial in maintaining a competitive edge.

Bargaining Power Of Suppliers

Franklin Financial Services Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers also help to mitigate any potential disruptions.

Threat Of New Entrants

While there are barriers to entry in the financial services industry, new entrants can still disrupt the market. Franklin Financial Services Corporation's established brand and regulatory compliance expertise help to deter new entrants.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players vying for market share. Franklin Financial Services Corporation must continue to innovate and differentiate its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.23%
Debt Cost 3.95%
Equity Weight 46.77%
Equity Cost 5.68%
WACC 4.76%
Leverage 113.81%

11. Quality Control: Franklin Financial Services Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Capital City Bank

A-Score: 7.1/10

Value: 6.4

Growth: 5.9

Quality: 7.8

Yield: 6.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Franklin Financial

A-Score: 7.0/10

Value: 6.3

Growth: 4.9

Quality: 5.8

Yield: 7.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
WaFed

A-Score: 6.0/10

Value: 5.9

Growth: 6.8

Quality: 5.6

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
BankUnited

A-Score: 5.9/10

Value: 6.7

Growth: 5.8

Quality: 4.8

Yield: 6.0

Momentum: 5.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Coastal Financial

A-Score: 5.7/10

Value: 3.2

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Merchants Bank

A-Score: 4.9/10

Value: 8.2

Growth: 6.6

Quality: 5.0

Yield: 2.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

53.64$

Current Price

53.64$

Potential

-0.00%

Expected Cash-Flows