"The Bank's management team closely monitored the circumstances that brought about this loan charge-off and took the necessary actions based on our ownership of the transaction," said Timothy G. Henry, President and CEO of F&M Trust. "Despite the adverse impact of the charge-off, we continue to grow commercial loans and lower cost core deposits that are driving the expansion of our net interest margin from 3.60% last year to 3.63% at the end of the second quarter in 2016."
Total assets at June 30, 2016 were $1.1 billion, a 4.7% increase when compared with total assets of $1.0 billion at December 31, 2015. Net loans increased 5.8% to $816.3 million, which was driven by an increase in commercial loans of $41.5 million, or 7.4%. Total deposits increased 5.1% to $965.6 million, which included growth in noninterest-bearing deposits of 6.9%. Net interest income was $17.0 million, representing an increase of $1.1 million, or 7.3%, when compared to June 30, 2015. The market value of trust assets under management increased 3.4% to $606.3 million.
Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $1 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-two community banking offices located in Boiling Springs, Camp Hill, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mechanicsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg and Waynesboro. Franklin Financial stock is trading on the OTCQX® marketplace of the OTC Markets under the symbol FRAF. Please visit our website for more information, www.franklinfin.com.
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.
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SOURCE Franklin Financial Services Corporation