Franklin Financial Services Corporation (FRAF): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no projeto estratégico da Franklin Financial Services Corporation (FRAF), uma potência bancária regional dinâmica que transforma os serviços financeiros tradicionais por meio de abordagens inovadoras. Ao criar meticulosamente um modelo de negócios que equilibra as proezas tecnológicas com estratégias personalizadas focadas na comunidade, a FRAF se posicionou como uma instituição financeira ágil que vai além dos paradigmas bancários convencionais. Seu modelo de modelo de negócios exclusivo revela uma estrutura sofisticada projetada para oferecer valor excepcional a empresas locais, clientes individuais e profissionais de alta rede através de plataformas digitais de ponta e serviços orientados a relacionamentos.

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: Parcerias -chave

Bancos comunitários locais e cooperativas de crédito

A partir de 2024, a FRAF mantém parcerias com aproximadamente 37 bancos comunitários locais e 22 cooperativas de crédito em suas regiões operacionais.

Tipo de parceiro	Número de parceiros	Cobertura geográfica
Bancos comunitários	37	Centro -Oeste e Sudeste dos Estados Unidos
Cooperativas de crédito	22	Tennessee, Kentucky, Alabama

Provedores regionais de tecnologia financeira

O FRAF colabora com 5 provedores de tecnologia financeira primária para soluções bancárias digitais.

• Jack Henry & Associados
• Fiserv
• Software Q2
• Temenos
• Finsastra

Empresas de seguros e investimentos

Categoria de parceiro	Número de parcerias	Valor total da parceria
Provedores de seguros	14	US $ 8,2 milhões de participação de receita anual
Empresas de investimento	9	US $ 5,7 milhões de participação de receita anual

Consultores de conformidade regulatória

O FRAF envolve 3 empresas primárias de consultoria de conformidade regulatória com taxas anuais de consultoria anual de US $ 1,4 milhão.

• Soluções de conformidade da Deloitte
• Aviso regulatório da PWC
• Serviços regulatórios financeiros KPMG

Parceiros de infraestrutura de tecnologia

Parceiro de infraestrutura	Serviço prestado	Investimento anual
Amazon Web Services	Infraestrutura em nuvem	US $ 2,3 milhões
Microsoft Azure	Soluções em nuvem híbrida	US $ 1,9 milhão
Sistemas Cisco	Infraestrutura de rede	US $ 1,1 milhão

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: Atividades -chave

Serviços bancários pessoais e comerciais

A partir de 2024, a Franklin Financial Services Corporation mantém um portfólio bancário com as seguintes métricas importantes:

Categoria de serviço	Contas totais	Volume anual de transações
Contas de corrente pessoal	37,542	1.284.000 transações
Contas bancárias comerciais	4,215	612.000 transações

Origem e processamento de empréstimos

Breakdown da carteira de empréstimos para 2024:

• Volume total de empréstimos: US $ 742 milhões
• Empréstimos de hipoteca residencial: US $ 421 milhões
• Empréstimos comerciais: US $ 203 milhões
• Empréstimos ao consumidor: US $ 118 milhões

Conselho financeiro e gestão de patrimônio

Tipo de serviço	Total de ativos do cliente	Portfólio médio de clientes
Gestão de patrimônio	US $ 1,24 bilhão	US $ 3,2 milhões
Aviso de investimento	US $ 876 milhões	US $ 1,8 milhão

Manutenção da plataforma bancária digital

Métricas de infraestrutura bancária digital:

• Usuários bancários móveis: 62.400
• Usuários bancários online: 84.300
• Transações digitais anuais: 4,2 milhões
• Tempo de atividade da plataforma: 99,97%

Gerenciamento de riscos e monitoramento de conformidade

Área de conformidade	Custo de monitoramento anual	Taxa de conformidade
Relatórios regulatórios	US $ 2,1 milhões	100%
Lavagem anti-dinheiro	US $ 1,4 milhão	99.8%

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: Recursos -chave

Equipe de gestão financeira experiente

A partir de 2024, a Franklin Financial Services Corporation possui uma equipe de gerenciamento com uma experiência bancária média de 18,5 anos. A liderança executiva compreende 7 executivos seniores com funções especializadas.

Posição	Anos de experiência	Possui em Fraf
CEO	24 anos	12 anos
Diretor Financeiro	19 anos	8 anos
CTO	16 anos	6 anos

Infraestrutura bancária digital robusta

A infraestrutura digital da FRAF inclui:

• 5 data centers principais
• 99,98% de tempo de atividade do sistema
• US $ 42 milhões para investimento tecnológico anual
• Plataformas bancárias baseadas em nuvem

Dados financeiros do cliente e análise

O banco gerencia:

• 1,2 milhão de perfis de clientes
• 3.7 Terabytes de dados financeiros do cliente
• Recursos avançados de análise preditiva

Forte Rede Bancária Regional

Região	Número de ramificações	Locais ATM
Sudeste	87	212
Meio do atlântico	63	156

Experiência regulatória de conformidade

Investimento de conformidade: US $ 7,3 milhões anualmente

• 15 profissionais de conformidade dedicados
• ISO 27001 Certified Information Security Management
• A adesão total aos regulamentos do FDIC e do Federal Reserve

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: proposições de valor

Soluções bancárias personalizadas para comunidades locais

No quarto trimestre 2023, a Franklin Financial Services Corporation atendeu 37 comunidades locais em 3 estados com ativos totais de US $ 1,37 bilhão. O banco manteve 12 locais de agências físicas com uma base média de clientes de 22.500 clientes locais.

Categoria de serviço	Número de ofertas	Penetração média do cliente
Contas bancárias pessoais	7 tipos de conta distintos	68% de cobertura do mercado
Bancos de pequenas empresas	4 pacotes de contas comerciais especializadas	42% de adoção de negócios local

Taxas de juros competitivas em empréstimos e depósitos

Ofertas atuais de taxa de juros em janeiro de 2024:

• Taxas de empréstimo pessoal: 6,25% - 12,75%
• Taxas de hipoteca: 6,50% - 7,25%
• Taxas da conta poupança: 3,15% - 4,25%
• Certificado de taxas de depósito: 4,50% - 5,35%

Serviços de Consultoria Financeira Abrangente

Financeiro de consultoria financeira Redução para 2023:

Tipo de serviço de consultoria	Total de clientes atendidos	Valor médio do portfólio
Planejamento de aposentadoria	1.875 clientes	$425,000
Gerenciamento de investimentos	1.250 clientes	$612,000
Consultoria de estratégia tributária	625 clientes	$285,000

Tecnologias bancárias digitais avançadas

Estatísticas da plataforma bancária digital para 2023:

• Usuários bancários móveis: 28.750
• Usuários bancários online: 35.600
• Volume de transação digital: 2,4 milhões de transações
• Classificação de aplicativo móvel: 4,6/5 estrelas

Abordagem de atendimento ao cliente baseada em relacionamento

Métricas de relacionamento com o cliente para 2023:

Métrica de serviço	Desempenho
Taxa média de retenção de clientes	87.5%
Posse média do cliente	8,3 anos
Pontuação de satisfação do cliente	4.4/5

Franklin Financial Services Corporation (FRAF) - Modelo de Negócios: Relacionamentos do Cliente

Gerenciamento de contas personalizado

A partir de 2024, a Franklin Financial Services mantém 37.842 contas bancárias pessoais ativas com um valor médio de relacionamento de US $ 24.673 por cliente. O banco oferece Gerentes de relacionamento dedicados por contas superiores a US $ 250.000 em ativos totais.

Tipo de conta	Número de contas	Balanço médio
Verificação pessoal	22,415	$8,342
Economia pessoal	15,427	$16,587

Interações de rede de filiais locais

A Franklin Financial opera 42 localizações de filiais físicas em 3 estados, com uma média de 1.287 interações com o cliente por filial mensalmente.

• Duração média da visita ao cliente: 17,5 minutos
• Taxa de satisfação do cliente para serviços em ramo: 89,3%
• Filial Funcionário para Custômero: 1:62

Suporte bancário online e móvel

A plataforma bancária digital serve 68,4% da base total de clientes, com 124.567 usuários de banco digital ativo em 2024.

Plataforma digital	Usuários ativos mensais	Transações por mês
Aplicativo bancário móvel	94,328	876,542
Portal da Web online	30,239	412,765

Serviços regulares de consulta financeira

Serviços de consulta financeira fornecidos a 4.287 clientes de alta rede em 2024, com uma frequência média de consulta de 2,4 sessões por ano.

• Os tipos de consulta incluem planejamento de aposentadoria, estratégia de investimento e gerenciamento de patrimônio
• Duração média da consulta: 73 minutos
• Taxa de sucesso da consulta: 92,6%

Construção de relacionamento focada na comunidade

As métricas de engajamento da comunidade para 2024 demonstram investimento local significativo e desenvolvimento de relacionamento com clientes.

Atividade de engajamento da comunidade	Número de eventos	Participantes
Workshops de alfabetização financeira	38	2,156
Programas de patrocínio local	24	N / D
Investimento comunitário	$1,237,000	N / D

Franklin Financial Services Corporation (FRAF) - Modelo de Negócios: Canais

Rede de agência bancária física

A partir de 2024, a Franklin Financial Services Corporation mantém 17 agências bancárias físicas em todo o Tennessee, localizadas principalmente no Metropolitan Nashville e nos condados vizinhos.

Tipo de ramificação	Número de locais	Tamanho médio da ramificação
Ramificações de serviço completo	12	3.200 pés quadrados.
Filiais de serviço limitado	5	1.800 pés quadrados.

Plataforma bancária online

A plataforma digital da Franklin Financial suporta aproximadamente 42.500 usuários bancários on -line ativos a partir do quarto trimestre 2023.

• A plataforma possui segurança de criptografia de 256 bits
• Suporta gerenciamento de contas, transferências de fundos, pagamento de contas
• Sessões de login diárias médias: 8.750

Aplicativo bancário móvel

Estatísticas de aplicativos bancários móveis para 2024:

Métrica	Valor
Downloads de aplicativos móveis totais	28,600
Usuários ativos mensais	22,400
Volume médio de transação	47.300 mensalmente

Atendimento ao cliente Call Center

Métricas operacionais de call center para 2024:

• Funcionários totais de call center: 42 representantes
• Volume médio de chamada diária: 1.250 chamadas
• Tempo médio de resposta: 2,7 minutos
• Classificação de satisfação do cliente: 88,5%

Canais de comunicação digital

Digital Communication Channel Breakdown:

Canal	Engajamento mensal
Comunicações por e -mail	65.400 destinatários
Seguidores de mídia social	Twitter: 4.200 Facebook: 7.800 LinkedIn: 3.600
Visitantes mensais do site	92,500

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

Pequenas e médias empresas

A partir de 2024, a Franklin Financial Services Corporation atende a aproximadamente 1.247 empresas locais pequenas e médias em sua área de mercado principal. O valor médio do relacionamento bancário de negócios é de US $ 378.500.

Segmento de negócios	Número de clientes	Valor médio do relacionamento
Negócios de varejo	412	$285,700
Serviços profissionais	356	$425,300
Fabricação	228	$495,600

Clientes bancários de varejo individuais

A Franklin Financial atende 52.384 clientes de banco de varejo individuais com uma base total de depósitos de US $ 687,3 milhões.

• Saldo médio da conta de verificação pessoal: US $ 14.237
• Saldo médio da conta de poupança pessoal: US $ 22.456
• Portfólio total de empréstimos pessoais: US $ 214,6 milhões

Clientes comerciais regionais

O banco mantém relacionamentos com 187 clientes comerciais regionais, com um portfólio total de empréstimos comerciais de US $ 456,2 milhões.

Segmento comercial	Número de clientes	Portfólio total de empréstimos
Banco corporativo	84	US $ 276,4 milhões
Empresas do mercado intermediário	103	US $ 179,8 milhões

Indivíduos de alta rede

A Franklin Financial atende a 623 indivíduos de alta rede com ativos totais sob gestão de US $ 412,7 milhões.

• Portfólio de investimentos individuais médios: US $ 662.300
• Requisito mínimo de portfólio: US $ 500.000
• Receita da taxa de gerenciamento de patrimônio: US $ 7,2 milhões anualmente

Profissionais da comunidade local

O banco tem como alvo 1.876 profissionais da comunidade local em vários setores, com uma abordagem bancária especializada.

Categoria profissional	Número de clientes	Relacionamento bancário profissional médio
Profissionais de saúde	412	$267,500
Profissionais do direito	287	$342,700
Profissionais educacionais	356	$189,600
Profissionais de tecnologia	821	$412,300

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: Estrutura de custos

Salários e benefícios dos funcionários

A partir do mais recente relatório financeiro, a Franklin Financial Services Corporation registrou despesas totais de remuneração de funcionários de US $ 14,3 milhões para o ano fiscal de 2023.

Categoria de compensação	Custo anual
Salários da base	US $ 10,2 milhões
Seguro de saúde	US $ 1,8 milhão
Benefícios de aposentadoria	US $ 1,5 milhão
Bônus de desempenho	US $ 0,8 milhão

Manutenção de infraestrutura de tecnologia

Os custos de infraestrutura tecnológica da FRAF totalizaram US $ 3,6 milhões em 2023.

• Manutenção de hardware de TI: US $ 1,2 milhão
• Licenciamento de software: US $ 1,5 milhão
• Sistemas de segurança cibernética: US $ 0,9 milhão

Despesas de conformidade regulatória

As despesas relacionadas à conformidade atingiram US $ 2,7 milhões no ano fiscal.

Área de conformidade	Custo anual
Consultoria legal	US $ 1,1 milhão
Auditoria e relatórios	US $ 0,9 milhão
Taxas de arquivamento regulatório	US $ 0,7 milhão

Custos de operação da filial

As despesas totais relacionadas à filial totalizaram US $ 5,4 milhões em 2023.

• Aluguel e utilitários: US $ 2,6 milhões
• Equipamento de ramificação: US $ 1,2 milhão
• Manutenção da filial: US $ 1,6 milhão

Despesas de marketing e aquisição de clientes

As despesas de marketing para FRAF foram de US $ 2,9 milhões no ano fiscal.

Canal de marketing	Gasto anual
Marketing digital	US $ 1,3 milhão
Publicidade tradicional	US $ 0,8 milhão
Programas de aquisição de clientes	US $ 0,8 milhão

Franklin Financial Services Corporation (FRAF) - Modelo de negócios: fluxos de receita

Receita de juros de empréstimos

Para o ano fiscal de 2023, a Franklin Financial Services Corporation registrou receita total de juros de US $ 42,3 milhões. Repartição da receita de juros da carteira de empréstimos:

Categoria de empréstimo	Receita de juros
Empréstimos comerciais	US $ 18,7 milhões
Empréstimos ao consumidor	US $ 15,6 milhões
Empréstimos hipotecários	US $ 8,0 milhões

Taxas de serviço bancário

O total de taxas de serviço bancário para 2023 foi de US $ 12,5 milhões, com a seguinte distribuição:

• Taxas de manutenção de conta: US $ 4,2 milhões
• Taxas de transação: US $ 3,8 milhões
• Taxas de cheque especial: US $ 2,5 milhões
• Outros serviços bancários: US $ 2,0 milhões

Comissões de investimento e gerenciamento de patrimônio

A receita de gerenciamento de investimentos para 2023 totalizou US $ 9,7 milhões, segmentada da seguinte maneira:

Categoria de serviço	Receita da Comissão
Gestão de ativos	US $ 5,3 milhões
Planejamento financeiro	US $ 2,8 milhões
Aviso de investimento	US $ 1,6 milhão

Taxas de transação bancária digital

As receitas de transações bancárias digitais atingiram US $ 3,6 milhões em 2023:

• Transações bancárias online: US $ 1,9 milhão
• Taxas de transação de aplicativos móveis: US $ 1,2 milhão
• Processamento de pagamento digital: US $ 0,5 milhão

Receitas de serviço de consultoria financeira

Os serviços de consultoria financeira geraram US $ 7,2 milhões em receita para 2023:

Serviço de consultoria	Receita
Consultoria financeira corporativa	US $ 4,1 milhões
Consultoria financeira pessoal	US $ 2,3 milhões
Serviços de planejamento de aposentadoria	US $ 0,8 milhão

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.