Franklin Financial Q3 Net Income Jumps 59.4% to $8.5M; Nonperforming Loans Climb to $17.8M
FRAF sits 44% above its 52-week low of $44.99.
Summary
Franklin Financial earned $8.5 million in Q3 2026, up 59.4% year over year, or $1.89 per diluted share, on a 3.58% net interest margin. Nonperforming loans rose to $17.8 million, concentrated in three commercial real estate credits.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — Franklin Financial Svcs reported 3Q EPS of $1.89.
Key Events · Earnings and Guidance · FRAF
-
Q3 Net Income Up 59.4%
Net income came in at $8.5 million, or $1.89 per diluted share, versus $5.4 million ($1.19) in Q3 2025.
-
Margin Expansion Drives Results
Net interest margin rose to 3.58% from 3.32%, with total deposit cost down to 1.46% for the quarter; ROE reached 18.53%.
-
Nonperforming Loans Double
Nonperforming loans totaled $17.8 million (1.1% of gross loans) versus $8.5 million (0.55%) at year-end 2025, driven by three CRE loans totaling $17.5 million to two borrowers.
-
Construction Loan Forbearance
Two construction loans totaling $8.9 million to one borrower on a mixed-use project; the $7.0 million loan has matured and a forbearance agreement with performance criteria is in place, with a $1.2 million specific reserve.
Analysis · FRAF · Finance
Earnings nearly doubled year over year, helped by a wider net interest margin (3.58% vs 3.32%) and lower deposit costs, and the bank remains well capitalized with a 1.32% allowance to loans. Per-share profit came in at $1.89 diluted. Credit is the offset: nonperforming loans have more than doubled since year-end to $17.8 million, concentrated in three CRE credits to two borrowers, and the bank added a $1.5 million reserve on a letter of credit tied to a matured construction loan. Book equity also carries the weight of a $46.0 million unrealized loss in the securities portfolio, up from $26.8 million. Net: strong core profitability against a deteriorating CRE credit picture that will drive the stock more than the headline beat.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 31% of the 1656 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.01%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FRAF was trading at $64.95 on NASDAQ in the Finance sector, with a market capitalization of approximately $292.2M. The 52-week trading range was $44.99 to $65.41. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.