Attached files
| file | filename |
|---|---|
| 8-K - FRANKLIN FINANCIAL SERVICES CORP /PA/ | v209600_8k.htm |
Exhibit
99.1
News
Release – January 31, 2011
Franklin
Financial YTD earnings increase 16%
(Chambersburg)
Franklin Financial Services Corporation, the bank holding company of
F&M Trust, reported earnings of $7,612,000 for 2010 compared to 2009
earnings of $6,585,000, an increase of 15.6%. Net income for the quarter ended
December 31, 2010 was $1,676,000, representing a 4.9% decrease when compared to
2009 fourth quarter earnings of $1,763,000.
On a per
share basis, diluted earnings were $0.43 and $1.96 for the quarter and twelve
months in 2010 compared to $0.46 and $1.71 for the same periods in
2009.
“The high
level of unemployment, increased loan delinquency, and low interest rate
environment inherent in the current recession created a challenging environment
for financial institutions during 2010,” commented William E. Snell, Jr.,
president and CEO. “The growth of our balance sheet slowed considerably during
the past 12 months, reflecting the significant impact of the economy on both
individuals and businesses in South Central Pennsylvania. While our earnings
this year compared quite favorably with the previous year’s results, 2009
results were negatively impacted by increased premiums for FDIC deposit
insurance including a special FDIC assessment as well as write-downs from
investments categorized as other than temporarily impaired and an increased
provision for loan loss expense resulting from increased levels of delinquency
in both our consumer and commercial loan portfolios.”
Total
assets were $951.9 million at December 31, 2010, a 2.8% decline from assets at
December 31, 2009. Average net loans grew 6.0% to $744.0 million and
average deposits and repurchase agreement grew by 4.4% to $787.2
million. At year-end, net loans were up 1.3% to $739.8 million, while
total deposits and repurchase agreements declined by 1.1% to $785.5 million. In
addition, the market value of trust assets under management increased 6.6% to
$490.4 million at December 31, 2010.
Franklin
Financial is an independent, locally owned and operated bank holding company
headquartered in Chambersburg. Its wholly-owned subsidiary, F&M
Trust, has twenty-five community banking offices throughout Cumberland,
Franklin, Fulton and Huntingdon counties located in Boiling Springs, Camp Hill,
Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mont Alto,
Marion, Newville, Orbisonia, Shippensburg, St. Thomas, Warfordsburg and
Waynesboro. Franklin Financial stock is listed on the over-the-counter market
under the symbol FRAF.
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. 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.