Franklin Financial's Q2 profit rises on higher interest income

Franklin Financial Services

24/07/2026 14:09

    

    Overview
  
US community bank's Q2 net income rose 12% yr/yr, EPS up to $1.47
Net interest income for Q2 grew 12% yr/yr
Provision for credit losses increased due to higher reserves on two CRE loans

    

    Outlook
  
Company did not provide specific guidance or outlook for future quarters or full year in press release

    

    Result Drivers
  
NET INTEREST INCOME - Growth driven primarily by a decrease in interest expense, with higher loan interest partially offset by lower investment portfolio income
CREDIT LOSS PROVISION - Higher provision due to increased reserves on two nonaccrual CRE loans
NONINTEREST INCOME - Wealth management fees and gains on loan sales rose, but overall noninterest income was flat due to the absence of a prior-year state sales tax refund

    
Company press release: ID:nPn44zD15a

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$1.47
 
Q2 Net Income
 
$6.61 mln
 
Q2 Net Interest Income
 
$19.35 mln
 

    

    Analyst Coverage
  
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Franklin Financial Services Corp is $64.00, about 1.9% above its July 23 closing price of $62.81
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

    

    Reuters Recommended Reads
  
July 24 - Republic Bancorp Q2 profit rises on interest income growth 
July 23 - Huntington Bancshares' quarterly profit rises on interest income boost
July 24 - BV Financial Q2 net interest income rises on higher yields

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)