Franklin Financial Services Corporation (FRAF): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumerja el plan estratégico de Franklin Financial Services Corporation (FRAF), una potencia bancaria regional dinámica que transforma los servicios financieros tradicionales a través de enfoques innovadores. Al crear meticulosamente un modelo de negocio que equilibra la destreza tecnológica con estrategias personalizadas centradas en la comunidad, FRAF se ha posicionado como una institución financiera ágil que va más allá de los paradigmas bancarios convencionales. Su lienzo de modelo de negocio único revela un marco sofisticado diseñado para ofrecer un valor excepcional a las empresas locales, clientes individuales y profesionales de alto nivel de red a través de plataformas digitales de vanguardia y servicios basados ​​en relaciones.

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: asociaciones clave

Bancos comunitarios locales y cooperativas de crédito

A partir de 2024, FRAF mantiene asociaciones con aproximadamente 37 bancos comunitarios locales y 22 cooperativas de crédito en sus regiones operativas.

Tipo de socio	Número de socios	Cobertura geográfica
Bancos comunitarios	37	Medio oeste y sudeste de los Estados Unidos
Coeficientes de crédito	22	Tennessee, Kentucky, Alabama

Proveedores de tecnología financiera regional

FRAF colabora con 5 proveedores principales de tecnología financiera para soluciones de banca digital.

• Jack Henry & Asociado
• Fiserv
• Software Q2
• Temenos
• Finastra

Empresas de seguros e inversiones

Categoría de socio	Número de asociaciones	Valor de asociación total
Proveedores de seguros	14	Acción de ingresos anual de $ 8.2 millones
Empresas de inversión	9	Acción de ingresos anual de $ 5.7 millones

Consultores de cumplimiento regulatorio

FRAF involucra 3 empresas de consultoría de cumplimiento regulatorio primario con tarifas de consultoría anuales totales de $ 1.4 millones.

• Soluciones de cumplimiento de Deloitte
• Asesoramiento regulatorio de PWC
• KPMG Servicios regulatorios financieros

Socios de infraestructura tecnológica

Socio de infraestructura	Servicio proporcionado	Inversión anual
Servicios web de Amazon	Infraestructura en la nube	$ 2.3 millones
Microsoft Azure	Soluciones de nubes híbridas	$ 1.9 millones
Sistemas de Cisco	Infraestructura de red	$ 1.1 millones

Franklin Financial Services Corporation (FRAF) - Modelo de negocio: actividades clave

Servicios de banca personal y comercial

A partir de 2024, Franklin Financial Services Corporation mantiene una cartera bancaria con las siguientes métricas clave:

Categoría de servicio	Cuentas totales	Volumen de transacción anual
Cuentas corrientes personales	37,542	1,284,000 transacciones
Cuentas de banca comercial	4,215	612,000 transacciones

Originación y procesamiento de préstamos

Desglose de la cartera de préstamos para 2024:

• Volumen total del préstamo: $ 742 millones
• Préstamos hipotecarios residenciales: $ 421 millones
• Préstamos comerciales: $ 203 millones
• Préstamos al consumidor: $ 118 millones

Asesoramiento financiero y gestión de patrimonio

Tipo de servicio	Activos totales del cliente	Cartera promedio de clientes
Gestión de patrimonio	$ 1.24 mil millones	$ 3.2 millones
Aviso de inversión	$ 876 millones	$ 1.8 millones

Mantenimiento de la plataforma de banca digital

Métricas de infraestructura bancaria digital:

• Usuarios de banca móvil: 62,400
• Usuarios bancarios en línea: 84,300
• Transacciones digitales anuales: 4.2 millones
• Tiempo de actividad de la plataforma: 99.97%

Gestión de riesgos y monitoreo de cumplimiento

Área de cumplimiento	Costo de monitoreo anual	Tasa de cumplimiento
Informes regulatorios	$ 2.1 millones	100%
Anti-lavado de dinero	$ 1.4 millones	99.8%

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: recursos clave

Equipo experimentado de gestión financiera

A partir de 2024, Franklin Financial Services Corporation tiene un equipo de gestión con una experiencia bancaria promedio de 18.5 años. El liderazgo ejecutivo comprende 7 ejecutivos altos con roles especializados.

Posición	Años de experiencia	Tenencia en FRAF
CEO	24 años	12 años
director de Finanzas	19 años	8 años
CTO	16 años	6 años

Infraestructura de banca digital robusta

La infraestructura digital de FRAF incluye:

• 5 centros de datos primarios
• 99.98% de tiempo de actividad del sistema
• $ 42 millones de inversión tecnológica anual
• Plataformas bancarias basadas en la nube

Datos y análisis financieros del cliente

El banco maneja:

• 1.2 millones de perfiles de clientes
• 3.7 terabytes de datos financieros del cliente
• Capacidades de análisis predictivo avanzado

Red bancaria regional fuerte

Región	Número de ramas	Ubicaciones de cajeros automáticos
Sudeste	87	212
Atlántico medio	63	156

Experiencia de cumplimiento regulatorio

Inversión de cumplimiento: $ 7.3 millones anuales

• 15 profesionales de cumplimiento dedicados
• Gestión de seguridad de la información certificada ISO 27001
• Adherencia total a las regulaciones de la FDIC y la Reserva Federal

Franklin Financial Services Corporation (FRAF) - Modelo de negocio: propuestas de valor

Soluciones bancarias personalizadas para comunidades locales

A partir del cuarto trimestre de 2023, Franklin Financial Services Corporation atendió a 37 comunidades locales en 3 estados con activos totales de $ 1.37 mil millones. El banco mantuvo 12 ubicaciones de sucursales físicas con una base de clientes promedio de 22,500 clientes locales.

Categoría de servicio	Número de ofrendas	Penetración promedio del cliente
Cuentas bancarias personales	7 tipos de cuenta distintos	Cobertura del mercado del 68%
Banca de pequeñas empresas	4 paquetes de cuentas comerciales especializadas	42% de adopción de negocios locales

Tasas de interés competitivas sobre préstamos y depósitos

Ofertas actuales de tasas de interés a partir de enero de 2024:

• Tasas de préstamo personal: 6.25% - 12.75%
• Tasas hipotecarias: 6.50% - 7.25%
• Tasas de cuenta de ahorro: 3.15% - 4.25%
• Certificado de tasas de depósito: 4.50% - 5.35%

Servicios de asesoramiento financiero integral

Desglose del servicio de asesoramiento financiero para 2023:

Tipo de servicio de asesoramiento	Total de clientes atendidos	Valor de cartera promedio
Planificación de jubilación	1.875 clientes	$425,000
Gestión de inversiones	1.250 clientes	$612,000
Consultoría de estrategia fiscal	625 clientes	$285,000

Tecnologías de banca digital avanzadas

Estadísticas de la plataforma de banca digital para 2023:

• Usuarios de banca móvil: 28,750
• Usuarios bancarios en línea: 35,600
• Volumen de transacciones digitales: 2.4 millones de transacciones
• Calificación de aplicaciones móviles: 4.6/5 estrellas

Enfoque de servicio al cliente basado en relaciones

Métricas de la relación con el cliente para 2023:

Métrico de servicio	Actuación
Tasa promedio de retención de clientes	87.5%
Promedio de la tenencia del cliente	8.3 años
Puntuación de satisfacción del cliente	4.4/5

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: relaciones con los clientes

Gestión de cuentas personalizada

A partir de 2024, Franklin Financial Services mantiene 37,842 cuentas de banca personal activa con un valor de relación promedio de $ 24,673 por cliente. El banco ofrece Gerentes de relaciones dedicadas para cuentas superiores a $ 250,000 en activos totales.

Tipo de cuenta	Número de cuentas	Saldo promedio
Comprobación personal	22,415	$8,342
Ahorros personales	15,427	$16,587

Interacciones de la red de sucursales locales

Franklin Financial opera 42 ubicaciones de sucursales físicas en 3 estados, con un promedio de 1,287 interacciones de clientes por rama mensualmente.

• Duración promedio de la visita al cliente: 17.5 minutos
• Tasa de satisfacción del cliente para servicios en la rama: 89.3%
• Relación de personal a cliente de rama: 1:62

Soporte bancario en línea y móvil

La plataforma de banca digital atiende al 68.4% de la base total de clientes con 124,567 usuarios activos de banca digital en 2024.

Plataforma digital	Usuarios activos mensuales	Transacciones por mes
Aplicación de banca móvil	94,328	876,542
Portal web en línea	30,239	412,765

Servicios de consulta financiera regular

Servicios de consulta financiera proporcionados a 4,287 clientes de alto valor de la red en 2024, con una frecuencia de consulta promedio de 2.4 sesiones por año.

• Los tipos de consulta incluyen planificación de jubilación, estrategia de inversión y gestión de patrimonio
• Duración de consulta promedio: 73 minutos
• Tasa de éxito de consulta: 92.6%

Construcción de relaciones centradas en la comunidad

Las métricas de participación comunitaria para 2024 demuestran una importante inversión local y desarrollo de relaciones con los clientes.

Actividad de participación comunitaria	Número de eventos	Participantes
Talleres de educación financiera	38	2,156
Programas de patrocinio locales	24	N / A
Inversión comunitaria	$1,237,000	N / A

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: canales

Red de sucursales bancarias físicas

A partir de 2024, Franklin Financial Services Corporation mantiene 17 sucursales bancarios físicos en Tennessee, ubicados principalmente en el metropolitano Nashville y los condados circundantes.

Tipo de rama	Número de ubicaciones	Tamaño promedio de la rama
Ramas de servicio completo	12	3,200 pies cuadrados.
Ramas de servicio limitadas	5	1.800 pies cuadrados.

Plataforma bancaria en línea

La plataforma digital de Franklin Financial admite aproximadamente 42,500 usuarios bancarios en línea activos a partir del cuarto trimestre de 2023.

• La plataforma cuenta con seguridad de cifrado de 256 bits
• Admite la gestión de cuentas, transferencias de fondos, pagos de facturas
• Sesiones de inicio de sesión diarias promedio: 8,750

Aplicación de banca móvil

Estadísticas de aplicaciones de banca móvil para 2024:

Métrico	Valor
Descargas totales de aplicaciones móviles	28,600
Usuarios activos mensuales	22,400
Volumen de transacción promedio	47,300 mensuales

Centro de llamadas de servicio al cliente

Métricas operativas del centro de llamadas para 2024:

• Personal total del centro de llamadas: 42 representantes
• Volumen de llamadas diarias promedio: 1.250 llamadas
• Tiempo de respuesta promedio: 2.7 minutos
• Calificación de satisfacción del cliente: 88.5%

Canales de comunicación digital

Desglose del canal de comunicación digital:

Canal	Compromiso mensual
Comunicaciones por correo electrónico	65.400 destinatarios
Seguidores de redes sociales	Twitter: 4.200 Facebook: 7,800 LinkedIn: 3.600
Sitio web Visitantes mensuales	92,500

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: segmentos de clientes

Empresas locales pequeñas a medianas

A partir de 2024, Franklin Financial Services Corporation atiende aproximadamente 1,247 empresas locales pequeñas a medianas en su área de mercado primario. El valor promedio de la relación bancaria comercial es de $ 378,500.

Segmento de negocios	Número de clientes	Valor de relación promedio
Negocios minoristas	412	$285,700
Servicios profesionales	356	$425,300
Fabricación	228	$495,600

Clientes de banca minorista individual

Franklin Financial atiende a 52,384 clientes de banca minorista individual con una base de depósito total de $ 687.3 millones.

• Saldo promedio de la cuenta corriente personal: $ 14,237
• Saldo promedio de la cuenta de ahorro personal: $ 22,456
• Cartera total de préstamos personales: $ 214.6 millones

Clientes comerciales regionales

El banco mantiene relaciones con 187 clientes comerciales regionales, con una cartera de préstamos comerciales totales de $ 456.2 millones.

Segmento comercial	Número de clientes	Cartera de préstamos totales
Banca corporativa	84	$ 276.4 millones
Empresas del mercado medio	103	$ 179.8 millones

Individuos de alto nivel de red

Franklin Financial atiende a 623 personas de alto patrimonio con activos totales bajo una administración de $ 412.7 millones.

• Portafolio de inversión individual promedio: $ 662,300
• Requisito mínimo de cartera: $ 500,000
• Ingresos de tarifas de gestión de patrimonio: $ 7.2 millones anuales

Profesionales de la comunidad local

El banco ha dirigido a 1.876 profesionales de la comunidad local en varios sectores, con un enfoque bancario especializado.

Categoría profesional	Número de clientes	Relación bancaria profesional promedio
Profesionales de la salud	412	$267,500
Profesionales legales	287	$342,700
Profesionales educativos	356	$189,600
Profesionales de la tecnología	821	$412,300

Franklin Financial Services Corporation (FRAF) - Modelo de negocio: Estructura de costos

Salarios y beneficios de los empleados

A partir del último informe financiero, Franklin Financial Services Corporation informó gastos de compensación de empleados totales de $ 14.3 millones para el año fiscal 2023.

Categoría de compensación	Costo anual
Salarios base	$ 10.2 millones
Seguro médico	$ 1.8 millones
Beneficios de jubilación	$ 1.5 millones
Bonos de rendimiento	$ 0.8 millones

Mantenimiento de la infraestructura tecnológica

Los costos de infraestructura tecnológica para FRAF totalizaron $ 3.6 millones en 2023.

• Mantenimiento de hardware de TI: $ 1.2 millones
• Licencias de software: $ 1.5 millones
• Sistemas de ciberseguridad: $ 0,9 millones

Gastos de cumplimiento regulatorio

Los gastos relacionados con el cumplimiento alcanzaron los $ 2.7 millones para el año fiscal.

Área de cumplimiento	Costo anual
Consultoría legal	$ 1.1 millones
Auditoría e informes	$ 0.9 millones
Tarifas de presentación regulatoria	$ 0.7 millones

Costos de operación de sucursal

Los gastos totales relacionados con la sucursal ascendieron a $ 5.4 millones en 2023.

• Alquiler y servicios públicos: $ 2.6 millones
• Equipo de rama: $ 1.2 millones
• Mantenimiento de sucursales: $ 1.6 millones

Gastos de marketing y adquisición de clientes

Los gastos de marketing para FRAF fueron de $ 2.9 millones en el año fiscal.

Canal de marketing	Gasto anual
Marketing digital	$ 1.3 millones
Publicidad tradicional	$ 0.8 millones
Programas de adquisición de clientes	$ 0.8 millones

Franklin Financial Services Corporation (FRAF) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de préstamos

Para el año fiscal 2023, Franklin Financial Services Corporation reportó ingresos por intereses totales de $ 42.3 millones. Desglose de los ingresos por intereses de la cartera de préstamos:

Categoría de préstamo	Ingresos por intereses
Préstamos comerciales	$ 18.7 millones
Préstamos al consumo	$ 15.6 millones
Préstamos hipotecarios	$ 8.0 millones

Tarifas de servicio bancario

Las tarifas de servicio bancario total para 2023 fueron de $ 12.5 millones, con la siguiente distribución:

• Tarifas de mantenimiento de la cuenta: $ 4.2 millones
• Tarifas de transacción: $ 3.8 millones
• Tarifas de sobregiro: $ 2.5 millones
• Otros servicios bancarios: $ 2.0 millones

Comisiones de inversión y gestión de patrimonio

Los ingresos de gestión de inversiones para 2023 totalizaron $ 9.7 millones, segmentados de la siguiente manera:

Categoría de servicio	Ingresos por comisión
Gestión de activos	$ 5.3 millones
Planificación financiera	$ 2.8 millones
Aviso de inversión	$ 1.6 millones

Tarifas de transacción bancaria digital

Los ingresos de la transacción bancaria digital alcanzaron los $ 3.6 millones en 2023:

• Transacciones bancarias en línea: $ 1.9 millones
• Tarifas de transacción de aplicaciones móviles: $ 1.2 millones
• Procesamiento de pagos digitales: $ 0.5 millones

Ingresos del servicio de asesoramiento financiero

Los servicios de asesoramiento financiero generaron $ 7.2 millones en ingresos para 2023:

Servicio de asesoramiento	Ganancia
Asesoramiento financiero corporativo	$ 4.1 millones
Consultoría financiera personal	$ 2.3 millones
Servicios de planificación de jubilación	$ 0.8 millones

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Value Propositions

You're looking at what Franklin Financial Services Corporation (FRAF), through its primary bank, F&M Trust, actually offers its clients. It's not just about checking accounts; it's about a specific, localized promise built on financial strength and personal connection.

Relationship-focused community banking through F&M Trust

The core value proposition centers on being a community bank in South Central PA, emphasizing a relationship-first approach, often branded as Banking Done Your Way®. This means you get local decision-making and a commitment to the area. For example, F&M Trust demonstrates this commitment by supporting organizations like Habitat for Humanity of Franklin County through sponsorship, board representation, and volunteer participation. This local embedding is key to building the trust you expect from a community partner.

The commitment to the community is tangible:

• F&M Trust donated $5,000 to two Washington County youth organizations in October 2025.
• Team members volunteered over 500 hours as part of the library tour with the ALC (a literacy effort).
• The bank hosts students as part of the Banking Externship Program at Shippensburg University.

They aim to have better conversations with your money, making banking easy.

Diversified financial solutions for business and retail clients

Franklin Financial Services Corporation delivers a broad suite of services that go beyond traditional lending and deposits, supporting both individual and commercial needs. This diversification helps stabilize revenue streams, as seen in the growth of the Wealth Management segment.

Here's a look at the scale and diversity as of September 30, 2025, or for the nine months ended that date:

Financial Metric	Value as of Q3 2025 / 9M 2025	Context
Total Assets	$2.297 billion (as of Sep 30, 2025)	Overall size of the balance sheet.
Total Net Loans	$1.544 billion (as of Sep 30, 2025)	Reflecting 11.8% growth from year-end 2024.
Total Deposits	$1.903 billion (as of Sep 30, 2025)	Reflecting 4.8% growth from year-end 2024.
Wealth Management Fees	$2.3 million (Q3 2025)	An 8.0% increase year-over-year for the quarter.
Assets Under Management	$1.4 billion (as of Sep 30, 2025)	Scale of the trust and investment services.

The solutions span the spectrum, including commercial real estate, construction, C&I loans, residential mortgages, personal lines of credit, estate planning, corporate trust management, and even non-bank investment activities like venture capital.

Strong financial stability and well-capitalized status

A key proposition for any financial institution is its safety and soundness. Franklin Financial Services Corporation is explicitly stated to be well-capitalized under regulatory guidance as of September 30, 2025. This stability underpins all other services you receive.

The performance metrics for the first nine months of 2025 show strong operational health:

• Net Income: $15.2 million (43.1% increase over 9M 2024).
• Return on Average Equity (ROE): 13.31% (9M 2025 annualized).
• Return on Average Assets (ROA): 0.90% (9M 2025 annualized).
• Net Interest Margin (NIM): 3.20% (9M 2025 annualized).

The company's shareholders' equity rose to $166.3 million, reflecting that healthy earnings growth is being retained to support the balance sheet.

Delivering the right financial solutions from people you defintely trust

This value proposition ties the financial strength to the personal relationship. The focus is on providing tailored advice, such as promoting the FlexLOC® Home Equity Line of Credit which allows clients to choose between an adjustable rate or locking in a rate. You get flexibility in your financing options.

Trust is actively managed by setting clear boundaries against fraud. F&M Trust makes it clear that they will NEVER call you to verify personal information, including your full debit card details or Social Security number. If you get such a request, you should report it immediately to 717-264-6116. This proactive communication about security reinforces the trust relationship.

Finance: draft 13-week cash view by Friday.

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Customer Relationships

Personalized, dedicated service at branch locations is supported by F&M Trust's physical footprint of 23 community-banking locations across Pennsylvania and Maryland as of late 2025.

For commercial and wealth clients, the relationship-centric approach is evidenced by the Assets under Management (AUM) figure, which stood at $1.4 billion on September 30, 2025.

Automated self-service via digital banking platforms is a component of the overall customer base management, where total deposits reached $1.903 billion as of September 30, 2025.

High-touch advisory for trust and investment services generated $2.3 million in fees for the third quarter of 2025 alone.

You see this relationship focus reflected across the balance sheet and revenue drivers:

• Wealth Management fees for the first nine months of 2025 totaled $6.9 million.
• Noninterest-bearing accounts represented 16.4% of total deposits on September 30, 2025.
• The cost of total deposits for the third quarter of 2025 was 1.83%.
• Approximately 88% of deposits were estimated to be FDIC insured or collateralized on September 30, 2025.

Here's a quick look at the key metrics tied to these customer relationships as of the third quarter end:

Metric	Value (As of 9/30/2025)
Total Assets	$2.297 billion
Total Deposits	$1.903 billion
Assets Under Management (AUM)	$1.4 billion
Wealth Management Fees (Q3 2025)	$2.3 million

The continued growth in total assets, up 4.5% from year-end 2024 to $2.297 billion, shows these relationship strategies are supporting balance sheet expansion.

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Channels

You're looking at how Franklin Financial Services Corporation (FRAF), through its subsidiary F&M Trust, gets its value propositions to the customer base as of late 2025. The channel strategy blends a traditional community footprint with necessary digital capabilities.

The physical presence remains a core channel, deeply rooted in its South-Central Pennsylvania and Maryland market area. As of the third quarter of 2025 reporting, F&M Trust operates a network of exactly 23 community banking locations.

This physical network is complemented by the standard cash access channel, the ATM network, though the exact count isn't publicly itemized in the latest reports. Still, the physical offices serve as hubs for more complex interactions.

The digital channel is critical for scale and daily transaction processing. While FRAF does not report its specific active digital customer count, the broader market context shows this channel is dominant: 81% of U.S. bank customers use mobile banking as of 2025, and a significant majority, 77 percent of consumers, prefer managing accounts via a mobile app or computer. This suggests FRAF's online and mobile applications must handle the bulk of routine customer interactions.

For high-value services like commercial and residential lending, FRAF relies on a dedicated direct sales force. This channel is clearly driving asset growth. For the first nine months of 2025, total net loans grew to $1.500 billion, with commercial real estate loans specifically increasing by 16.3% ($119.3 million) over year-end 2024 balances. This direct sales effort is translating directly into balance sheet expansion.

Here is a breakdown of the channel mix and associated scale metrics:

Channel Type	Specific Component	Quantifiable Metric (Latest Available 2025 Data)	Contextual Market Data (2025)
Physical Presence	Community Bank Branches (F&M Trust)	23 locations	Geographic focus: South-Central PA and Washington County, MD.
Digital Access	Online and Mobile Applications	N/A (FRAF Specific)	81% of U.S. bank customers use mobile banking.
Direct Sales	Commercial & Residential Lending Force	Commercial Real Estate Loan Growth: 16.3% (9M 2025 YTD)	Total Net Loans reached $1.500 billion as of June 30, 2025.
Cash Access	ATM Network	N/A (FRAF Specific Count)	Standard expectation for a regional bank network.

The effectiveness of these channels can be seen in the balance sheet growth reported through September 30, 2025. Total assets reached $2.297 billion, up 4.5% from year-end 2024. The deposit channel, which relies on both physical and digital access points, saw total deposits increase by 4.8% ($87.2 million) from year-end 2024 to September 30, 2025.

You should note the following key channel characteristics:

• Physical Branch Utility: Branches are key for relationship banking in Franklin, Cumberland, Dauphin, Fulton, and Huntingdon Counties, PA, and Washington County, MD.
• Digital Preference Alignment: The digital channel serves the majority preference, with 77 percent of consumers preferring app/computer management.
• Lending Channel Focus: The direct sales force is heavily focused on commercial real estate, which saw a 15.4% dollar increase ($111.2 million) in the first half of 2025.
• Deposit Channel Mix: Growth in deposits was primarily in money management accounts, partially offset by a decrease in interest-bearing checking and savings accounts for the first nine months of 2025.

Finance: draft 13-week cash view by Friday.

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Customer Segments

Franklin Financial Services Corporation (FRAF), through its subsidiary F&M Trust, focuses its business on specific geographic and client profiles within its operating area of South-Central Pennsylvania and Maryland. As of September 30, 2025, the Corporation reported total assets of $2.297 billion. F&M Trust operates 23 community-banking locations across five Pennsylvania counties (Franklin, Cumberland, Dauphin, Fulton, and Huntingdon) and Washington County, Maryland.

The customer base is served across four primary segments, reflecting the community banking and trust services model:

• Retail customers in South-Central Pennsylvania and Maryland
• Small to middle-market businesses (e.g., commercial real estate)
• High-net-worth individuals requiring wealth management
• Local municipalities and non-profit organizations

The lending portfolio provides concrete evidence of the focus on small to middle-market commercial clients, especially in real estate. As of September 30, 2025, total net loans stood at $1.544 billion, an 11.8% increase from December 31, 2024. Commercial Real Estate (CRE) loans were a significant driver of this growth, increasing by 16.3% ($119.3 million) in the first nine months of 2025.

Here is a breakdown illustrating the concentration within the Commercial Real Estate portfolio as of June 30, 2025, which is representative of the business segment focus:

CRE Collateral Segment	Loan Balance (as of June 30, 2025)	Portfolio Percentage (as of June 30, 2025)
Apartment Buildings	$167.7 million	19.23% (of $872.2M CRE)
Hotels and Motels	$102.3 million	11.73% (of $872.2M CRE)
Office Buildings	$92.8 million	10.64% (of $872.2M CRE)
Total Commercial Real Estate Loans	$872.2 million	100%

The wealth management segment, serving high-net-worth individuals and potentially related entities, shows clear growth in fee income. For the third quarter of 2025, income from Wealth Management increased by $167 thousand compared to the third quarter of 2024. This indicates active engagement with clients needing estate planning, personal trust fund management, and other fiduciary services.

The retail and general business segments are supported by the deposit base, which totaled $1.903 billion on September 30, 2025, a 4.8% increase from year-end 2024. The composition of these deposits reflects the local retail and business reliance on the bank:

• Noninterest-bearing accounts represented 16.4% of total deposits as of September 30, 2025.
• Money management accounts saw the majority of deposit growth in the first nine months of 2025.
• Approximately 88% of deposits were estimated to be FDIC insured or collateralized on September 30, 2025.

The bank explicitly provides commercial, retail banking, and trust services to governmental entities and non-profit organizations alongside businesses and individuals. The total number of community banking locations serving these segments is 23. Finance: review the Q4 2025 deposit mix to see if noninterest-bearing accounts crossed the 17% threshold by year-end.

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Cost Structure

You're looking at the expense side of Franklin Financial Services Corporation's (FRAF) operations as of late 2025. This is where the money goes to keep the lights on and the balance sheet growing. Honestly, for a bank, the cost of money is always front and center.

The interest expense on deposits, which is the cost of funding the balance sheet through customer accounts, was reported at 1.90% for the second quarter of 2025. That's down slightly from the first six months of 2025 cost of total deposits, which was 1.95%.

Here's a quick look at some of the key cost drivers we have data for from the recent reports:

Cost Component	Period/Date	Reported Value
Cost of Total Deposits	Q2 2025	1.90%
Provision for Credit Losses (PCL)	Q2 2025	$704 thousand
Provision for Credit Losses (PCL)	Q3 2025	$894 thousand
Total Noninterest Expense	Q3 2025	$15.1 million
Total Noninterest Expense	Q2 2025	$14.4 million

Salaries and employee benefits remain a major noninterest expense. You can see the pressure here; for the third quarter of 2025, salaries and employee benefits increased by $1.1 million compared to the third quarter of 2024. Breaking that down a bit, the increase was primarily in salaries, which went up $506 thousand, and health insurance, which rose by $420 thousand period over period. It definitely shows that keeping skilled people is costing more.

For occupancy and equipment costs for the branch network, the specific line item isn't broken out in the latest summaries, but it rolls into the total noninterest expense. That total noninterest expense climbed to $15.1 million in Q3 2025, up from $13.9 million in Q3 2024. This overall increase suggests that fixed costs, including the physical footprint and technology needed to run the bank, are rising alongside personnel costs.

The provision for credit losses (PCL) is a key variable cost tied directly to asset quality. For Q2 2025, FRAF recorded a PCL of $704 thousand. However, that figure ticked up in the most recent quarter, Q3 2025, to $894 thousand. That Q3 provision included an $894 thousand specific reserve added for one commercial real estate credit. This signals a near-term risk area you need to watch closely.

• Noninterest expense for the first nine months of 2025 totaled $44.1 million.
• The cost of deposits fell to 1.90% in Q2 2025 from the 9-month average of 1.91%.
• Total deposits stood at $1.903 billion as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

Franklin Financial Services Corporation (FRAF) - Canvas Business Model: Revenue Streams

You're looking at how Franklin Financial Services Corporation (FRAF) brings in its money as of late 2025. It's a pretty standard mix for a community bank holding company, heavily reliant on the spread between what it earns on assets and what it pays for deposits, but with a solid fee income component too.

The primary driver remains Net Interest Income (NII), which is the core banking profit from lending and investing. For the first nine months of 2025, Franklin Financial Services Corporation reported NII of $51.04 million, a solid increase from $42.42 million in the same period of 2024. This growth was fueled by average interest-earning assets growing to $2.164 billion for the nine months ended September 30, 2025.

The fee-based income streams are also important for diversification. As of the nine months ended September 30, 2025, Wealth Management fees were $6.9 million, up 8.3% from the prior year period. This fee income is generated from the $1.4 billion in trust and brokerage assets under management reported as of September 30, 2025.

The other noninterest income sources, which include service charges and loan fees, round out the non-interest revenue picture. For the first nine months of 2025, total Noninterest income reached $14.5 million. This total is composed of several items, including the Wealth Management fees, plus service charges on deposit accounts and various loan fees.

Here's a quick look at the major revenue components for the first nine months of 2025:

Revenue Component	Amount (9M 2025)	Year-over-Year Change (9M 2025 vs 9M 2024)
Net Interest Income (NII)	$51.04 million	Increase of 20.3%
Wealth Management and Trust Fees	$6.9 million	Increase of 8.3%
Total Noninterest Income	$14.5 million	Data not explicitly provided for YoY change

You can see the breakdown of the noninterest income streams, which includes the service charges and loan fees, is critical to hitting that total noninterest income number. For context, the growth in noninterest income for the first six months of 2025 was attributed primarily to increases in wealth management fees and loan charges.

The specific components making up the service charges and loan fees revenue stream for the full nine months of 2025 would be found within the detailed income statement, but the known revenue sources are:

• Net Interest Income from loans and investments.
• Wealth Management and Trust fees.
• Service charges on deposit accounts.
• Various loan fees.

The total noninterest income of $14.5 million for the nine months ended September 30, 2025, is the aggregate of these fee-based activities, minus any realized gains or losses on securities.