業績公告
即時報告
8-K
2026-07-24
富蘭克林金融服務第二季淨收入660萬美元升11.9%，不良貸款比率升至1.10%
AI 繁中摘要
📄 **申報類型**：8-K（業績公佈）
🏢 **公司**：Franklin Financial Services Corporation（股票代號：FRAF）
📅 **報告期**：2026 年第二季（截至 6 月 30 日）及上半年
---
### 🟢 第二季 2026 業績重點（與 2025 年第二季比較）
- **淨收入**：660 萬美元（每股攤薄 1.47 美元），按年升 11.9%
- **淨利息收入**：1,930 萬美元，按年升 12.2%，主要受存款成本下降帶動
- **淨息差（NIM）**：3.50%（年化），高於去年的 3.21%
- **非利息收入**：510 萬美元，與去年持平；財富管理費收入 260 萬美元，升 6.1%
- **非利息支出**：1,460 萬美元，按年升 1.5%
- **資產規模**：23.35 億美元，較 2025 年底增 4.3%（年化 8.6%）
- **貸款總額（淨額）**：15.89 億美元，較 2025 年底增 3.1%（年化 6.2%）
- **存款總額**：19.25 億美元，較 2025 年底增 4.8%（年化 9.6%）
- **ROA**：1.14%（年化）｜**ROE**：14.80%（年化）
- **已宣派股息**：每股 0.34 美元（第三季），除息日 8 月 7 日，派息日 8 月 26 日
---
### 🟢 上半年 2026 業績重點（與 2025 年上半年比較）
- **淨收入**：1,320 萬美元（每股攤薄 2.94 美元），按年升 34.8%
- **淨利息收入**：3,790 萬美元，按年升 15.3%
- **非利息收入**：1,050 萬美元，按年升 8.7%，主要受財富管理費、貸款出售收益及存款服務費帶動
- **非利息支出**：3,000 萬美元，按年升 3.4%
- **ROA**：1.17%（年化）｜**ROE**：14.96%（年化）｜**NIM**：3.52%（年化）
---
### ⚠️ 資產質量關注點
- **不良貸款（NPL）**：1,770 萬美元（佔總貸款 1.10%），較 2025 年底的 0.55% 顯著上升
- 主要因第二季新增一筆 880 萬美元的商業房地產（CRE）貸款轉為非應計狀態
- 另有 700 萬美元的已到期建築貸款（混合用途項目），銀行已承諾額外提供最多 250 萬美元融資以保護抵押品
- 信貸損失準備對貸款比率：1.36%（2025 年底為 1.32%）
- 管理層強調銀行仍屬「資本充足」機構，但投資者需留意 CRE 貸款風險
---
### 📊 資產負債表亮點（截至 2026 年 6 月 30 日）
- **股東權益**：1.838 億美元，較 2025 年底增 860 萬美元
- **每股賬面值**：40.91 美元｜**有形賬面值**：38.90 美元（非 GAAP）
- **財富管理資產規模**：14.8 億美元（公允價值）
---
### 💡 對投資者的潛在影響
- 正面：存款成本顯著下降帶動淨息差擴闊，盈利穩定增長，股息連續提升（0.34 美元/季）
- 風險：CRE 不良貸款增加，信貸成本
展開英文正文
EX-99.1
2
fraf-20260724xex99_1.htm
EX-99.1
8-K EarningsRelease 2Q 2026-Exh 991
Exhibit 99.1
July 24, 2026
Franklin Financial Reports Second Quarter and Year-to-Date 2026 Results;
Declares Dividend
(CHAMBERSBURG, PA) Franklin Financial Services Corporation (the Corporation) (NASDAQ: FRAF), the bank holding company of F&M Trust (the Bank) headquartered in Chambersburg, PA, reported its second quarter and year-to-date 2026 financial results.
A summary of notable operating results as of or for the second quarter ended June 30, 2026 follows:
·
Net Income: $6.6 million ($1.47 per diluted share) for the second quarter of 2026 compared to $5.9 million ($1.32 per diluted share) for the second quarter of 2025, an increase of 11.9%.
·
Wealth Management: Fees were $2.6 million, an increase of 6.1% from $2.4 million in the second quarter of 2025. Assets under management were $1.5 billion on June 30, 2026.
·
Asset Growth: $2.335 billion in assets on June 30, 2026, compared to $2.239 billion at year-end 2025, an increase of 4.3% (8.6% annualized).
·
Loan Growth: Total net loans of $1.589 billion on June 30, 2026, an increase of 3.1% (6.2% annualized) from December 31, 2025.
·
Deposit Growth: Total deposits of $1.925 billion on June 30, 2026, an increase of 4.8% (9.6% annualized) from December 31, 2025.
·
Quarterly Performance Metrics: Return on Average Assets (ROA) 1.14%, Return on Average Equity (ROE) 14.80%, and Net Interest Margin (NIM) of 3.50% on an annualized basis, compared to a ROA of 1.04%, ROE of 15.64%, and NIM of 3.21% for the second quarter of 2025.
·
On July 16, 2026, the Board of Directors declared a $0.34 per share regular quarterly cash dividend for the third quarter of 2026 to be paid on August 26, 2026, to shareholders of record at the close of business on August 7, 2026.
A summary of notable operating results for the six months ended June 30, 2026 follows:
·
Net Income: $13.2 million ($2.94 per diluted share) compared to $9.8 million ($2.20 per diluted share) for the six months ended June 30, 2025, an increase of 34.8%.
·
Wealth Management: Fees were $4.9 million, an increase of 5.2% from $4.6 million for the first six months of 2025.
·
Year-to-Date Performance Metrics: Return on Average Assets (ROA) 1.17%, Return on Average Equity (ROE) 14.96%, and Net Interest Margin (NIM) of 3.52% on an annualized basis, compared to a ROA of 0.89%, ROE of 13.27%, and NIM of 3.13% for the comparable period in 2025.
1
Balance Sheet Highlights
Total assets on June 30, 2026 were $2.335 billion an increase of 4.3% from $2.239 billion on December 31, 2025. Significant changes in the balance sheet from December 31, 2025, to June 30, 2026, include:
·
Debt Securities Available for Sale: Decreased $2.2 million, or (0.5%), net of purchases, due primarily to paydowns. On June 30, 2026, the net unrealized loss in the portfolio was $29.1 million compared to $26.8 million at year-end 2025.
·
Net Loans: Increased $48.2 million or 3.1% (6.2% annualized) over the year-end 2025 balance, primarily from an increase of $45.8 million in commercial real estate (CRE) loans and $24.7 million in residential 1-4 family loans, which was partially offset by a decrease of $19.6 million in commercial (C&I) loans. As of June 30, 2026, CRE loans totaled $949.4 million with the largest collateral segments being: apartment buildings ($161.9 million), hotels and motels ($105.8 million), and office buildings ($100.1 million), primarily in the Bank's market area of south-central Pennsylvania. The Bank’s CRE non-owner occupied concentration ratio was 348.2% of risk-based capital as of June 30, 2026, down from 349.9% on December 31, 2025.
·
Deposits: Increased $88.8 million or 4.8% (9.6% annualized)) from year-end 2025. The majority of the growth occurred in noninterest-bearing checking accounts and money management accounts, which was partially offset by a decrease in interest-bearing checking and savings accounts. At June 30, 2026, 17.7% of total deposits were in noninterest checking accounts, compared to 16.9% at year-end 2025. For the first six months of 2026, the cost of total deposits was 1.51%, a decrease from 1.85% for the full year of 2025. On June 30, 2026, the Bank estimated that approximately 90% of its deposits were FDIC insured or collateralized.
·
Shareholders' Equity: Increased $8.6 million to $183.8 million on June 30, 2026 from year-end 2025, and retained earnings increased $10.2 million, net of dividends of $3.0 million, over the same period. The accumulated other comprehensive loss (AOCI) increased $1.9 million during the first six months of 2026 to $23.5 million. On June 30, 2026, the book value of the Corporation's common stock was $40.91 per share and tangible book value (1) increased $1.81 per share from December 31, 2025 to $38.90 per share. In December 2025, an open market repurchase plan was approved to repurchase 150,000 shares over a one-year period and 10,950 shares were repurchased in the first six months of 2026 under the approved plan to fund the dividend reinvestment plan. The Bank is considered to be well-capitalized under regulatory guidance as of June 30, 2026.
2
·
Average Assets: Average interest-earning assets for the first six months of 2026 were $2.198 billion, compared to $2.146 billion for the same period in 2025, an increase of 2.5%. This increase occurred primarily in the loan portfolio which increased 8.8%, driven by a $82.2 million (9.9%) increase in commercial real estate loans and a $44.0 million (17.6%) increase in first lien 1-4 residential real estate loans. The yield on earning assets decreased from 5.28% for the first six months of 2025 to 5.25% for the first six months of 2026. The yield on the loan portfolio increased by 9 basis points, but this increase was partially offset as higher yielding investments continued to paydown and the yield on interest-earning deposits in other banks declined. The yield on earning assets was 5.22% for the second quarter of 2026. Total deposits averaged $1.878 billion for the first six months of 2026, an increase of $26.7 million (1.4%) over the average balance for the same period in 2025. The cost of total deposits decreased from 1.95% for the first six months of 2025 to 1.51% for the first six months of 2026 and decreased to 1.50% for the second quarter of 2026.
·
Nonperforming Assets: Nonperforming loans (nonaccrual loans and loans 90 days past due and still accruing) totaled $17.7 million on June 30, 2026, compared to $8.5 million on December 31, 2025, an increase of $9.2 million due to the addition of an $8.8 million CRE loan to nonaccrual status during the second quarter of 2026. Nonperforming loans were 1.1% of total gross loans on June 30, 2026 compared to 0.55% on December 31, 2025. The nonperforming loans are comprised primarily of two (2) CRE loans to unrelated borrowers totaling $17.4 million. Of these two CRE loans, one is for a matured $7.0 million construction loan on a mixed-use commercial project. During the second quarter, the Bank committed to provide additional funding of up to $2.5 million (with $1.6 million advanced as of June 30, 2026) to fully enclose the property and protect the collateral, and to pay all past due construction costs. As part of this funding commitment, a forbearance agreement was signed by the developer that ceased all construction until funding from new sources was acquired, established specific performance criteria for the developer, and established specific remedies for the Bank in the event of non-compliance with the forbearance agreement. Based on a discounted “as-is” appraisal received in the first quarter of 2026 and the additional funding committed, the Bank increased its specific reserve from $1.0 million on March 31, 2026, to $1.2 million on June 30, 2026. The second CRE loan totals $8.8 million and is secured by six (6) commercial office buildings. This loan is a purchased participation loan where the Bank is not the lead lender. The loan was placed on nonaccrual status during the second quarter of 2026, and as of June 30, 2026, the Bank has a specific reserve of $734 thousand based on a recent appraisal.
·
Allowance for Credit Losses (ACL): The ACL to loans ratio was 1.36% on June 30, 2026, compared to 1.32% on December 31, 2025. The increase is driven by the increase in the specific reserves previously discussed above. The allowance for credit losses (ACL) for unfunded commitments was $2.0 million on June 30, 2026, and $1.9 million on December 31, 2025.
3
Income Statement Highlights – Second Quarter Comparison 2026 v. 2025
·
Net income: Net income for the second quarter of 2026 was $6.6 million ($1.47 per diluted share) compared to $5.90 million ($1.32 per diluted share) for the second quarter of 2025, an increase of 11.9%.
·
Net Interest Income: $19.3 million for the second quarter of 2026 compared to $17.2 million for the second quarter of 2025, an increase of $2.1 million, or 12.2%. The improvement was driven primarily by a decrease in interest expense, as the increase in interest from loans was partially offset by a decrease in interest from the investment portfolio.
·
Provision for Credit Losses: For the second quarter of 2026, the provision for credit losses on loans was $1.6 million compared to $704 thousand for the same quarter of 2025. The increased provision for credit losses on loans was due primarily to an increase in the specific reserve on two nonaccrual loans discussed above. The provision for credit losses on unfunded commitments was $39 thousand for the second quarter of 2026 compared to a reversal of $69 thousand for the second quarter of 2025.
·
Noninterest Income: Noninterest income totaled $5.1 million for the second quarter of 2026 compared to $5.1 million for the same quarter of 2025. As compared to the prior year quarter, wealth management fees and the gain on sale of loans increased, but the increase was nearly offset by a state sales tax refund recorded in the second quarter of 2025.
·
Noninterest Expense: For the second quarter of 2026 was $14.6 million compared to $14.4 million for the second quarter of 2025 (an increase of 1.5%). The increase in salary expense was more than offset by a decrease in health insurance expense during the quarter, and other operating expense increased $230 thousand.
·
Income Tax: The effective income tax rate was 19.9% for the second quarter of 2026 and 19.3% for the same period in 2025.
Income Statement Highlights – Year-to-date Comparison 2026 v. 2025
·
Net income: Net income for the second quarter of 2026 was $6.6 million ($1.47 per diluted share) compared to $5.90 million ($1.32 per diluted share) for the second quarter of 2025, an increase of 11.9%.
·
Net Interest Income: $19.3 million for the second quarter of 2026 compared to $17.2 million for the second quarter of 2025, an increase of $2.1 million, or 12.2%. The improvement was driven primarily by a decrease in interest expense, as the increase in interest from loans was partially offset by a decrease in interest from the investment portfolio.
·
Provision for Credit Losses: For the first six months of 2026, the provision for credit losses on loans was $1.8 million compared to $1.5 million for the same period of 2025. The provision for credit losses on unfunded commitments was $58 thousand for the first six months of 2026 compared to a reversal of $40 thousand for the same period of 2025.
4
·
Noninterest Income: Noninterest income totaled $10.5 million for the first six months of 2026 compared to $9.7 million for the same period of 2025, an increase of 8.7%. The increase was spread across nearly all fee income categories with the largest increases in wealth management fees and gains on loan sales and deposit fees.
·
Noninterest Expense: For the first six months of 2026, noninterest expense was $30.0 million compared to $29.0 million for the same period of 2025 (an increase of 3.4%). The increases occurred primarily in salaries, professional fees, and Pennsylvania shares tax, and were partially offset by a decrease in FDIC insurance premiums.
·
Income Tax: The effective income tax rate was 20.0% for the six months of 2026 and 19.0% for the same period in 2025.
(1)
Non-GAAP measure. See GAAP versus Non-GAAP Reconciliation Presentations that follows.
Additional information on the Corporation is available on our website at: www.franklinfin.com/Presentations.
Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $2.2 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-three community banking locations in Franklin, Cumberland, Dauphin, Fulton and Huntingdon Counties PA, and Washington County MD. Franklin Financial stock is trading on the Nasdaq Stock Market 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 I995. 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: changes in interest rates, changes in the rate of inflation, general economic conditions and their effect on the Corporation and our customers, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in technology, the intensification of competition within the Corporation's market area, and other similar factors.
We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K.
5
GAAP versus non-GAAP Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets. By eliminating intangible assets (Goodwill), the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. In the event of such a disclosure or release, the Securities and Exchange Commission’s Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The following table shows the calculation of the non-GAAP measurements.
FRANKLIN FINANCIAL SERVICES CORPORATION (unaudited)
Income Statement
For the Three Months Ended
For the Six Months Ended
(Dollars in thousands, except per share data)
6/30/2026
3/31/2026
6/30/2025
6/30/2026
6/30/2025
% Change
Interest income
Loans, including fees
$
23,159
$
22,567
$
21,425
$
45,727
$
41,289
10.7%
Interest and dividends on investments:
Taxable interest
3,480
3,616
4,524
7,096
9,349
-24.1%
Tax exempt interest
265
266
269
530
540
-1.9%
Dividend income
201
202
189
404
379
6.6%
Interest-earning deposits in other banks
1,826
1,119
2,193
2,944
4,101
-28.2%
Total interest income
28,931
27,770
28,600
56,701
55,658
1.9%
Interest expense
Deposits
7,202
6,887
8,918
14,089
17,948
-21.5%
FHLB overnight borrowings and advances
2,181
2,157
2,181
4,339
4,339
0.0%
Subordinate notes
201
205
263
406
528
-23.1%
Total interest expense
9,584
9,249
11,362
18,834
22,815
-17.4%
Net interest income
19,347
18,521
17,238
37,867
32,843
15.3%
Provision for credit losses - loans
1,600
202
704
1,802
1,454
23.9%
Provision for credit losses - unfunded commitments
39
19
(69)
58
(40)
-245.0%
Total provision for credit losses
1,639
221
635
1,860
1,414
31.5%
Net interest income after credit loss expense
17,708
18,300
16,603
36,007
31,429
14.6%
Noninterest income
Wealth management fees
2,567
2,306
2,419
4,873
4,633
5.2%
Loan service charges
289
238
294
527
503
4.8%
Gain on sale of loans
227
318
132
545
241
126.1%
Deposit service charges and fees
694
647
613
1,341
1,218
10.1%
Other service charges and fees
521
482
480
1,002
963
4.0%
Debit card income
632
618
608
1,251
1,167
7.2%
Increase in cash surrender value of life insurance
135
132
116
267
230
16.1%
Change in fair value of equity securities
—
—
0
—
(7)
-100.0%
Other
84
619
441
703
716
-1.8%
Total noninterest income
5,149
5,360
5,103
10,509
9,664
8.7%
Noninterest Expense
Salaries
6,453
6,237
6,210
12,690
12,386
2.5%
Employee benefits
2,162
2,788
2,654
4,949
4,984
-0.7%
Net occupancy
1,178
1,241
1,146
2,419
2,371
2.0%
Marketing and advertising
362
426
353
788
786
0.3%
Legal and professional
556
695
537
1,251
1,064
17.6%
Data processing
1,578
1,540
1,514
3,119
3,071
1.6%
Pennsylvania bank shares tax
236
254
137
490
297
65.0%
FDIC Insurance
367
483
409
850
954
-10.9%
ATM/debit card processing
383
377
344
760
683
11.3%
Telecommunications
128
135
109
262
216
21.3%
Other
1,206
1,177
976
2,382
2,153
10.6%
Total noninterest expense
14,609
15,353
14,389
29,960
28,965
3.4%
Income before income taxes
8,248
8,307
7,317
16,556
12,128
36.5%
Income tax expense
1,637
1,670
1,409
3,308
2,299
43.9%
Net income
$
6,611
$
6,637
$
5,908
$
13,248
$
9,829
34.8%
Per share
Basic earnings per share
$
1.47
$
1.48
$
1.32
$
2.95
$
2.21
Diluted earnings per share
$
1.47
$
1.48
$
1.32
$
2.94
$
2.2
6
Consolidated Balance Sheet (as of)
6/30/2026
3/31/2026
6/30/2025
(Dollars in thousands, except per share data)
Assets
Cash and due from banks
$
25,560
$
23,976
$
27,426
Short-term interest-earning deposits in other banks
169,471
186,801
180,364
Total cash and cash equivalents
195,031
210,777
207,790
Long-term interest-earning deposits in other banks
750
750
999
Debt securities available for sale, at fair value
452,345
436,483
481,259
Restricted stock
8,985
8,897
8,894
Loans held for sale
2,797
1,850
1,486
Loans
1,610,619
1,572,426
1,519,157
Allowance for credit losses
(21,864)
(20,729)
(19,122)
Net Loans
1,588,755
1,551,697
1,500,035
Other assets
86,518
87,064
86,282
Total assets
2,335,181
2,297,518
2,286,745
Liabilities
Deposits
Noninterest-bearing checking
341,103
331,658
294,034
Money management, savings, and interest checking
1,354,833
1,319,494
1,279,602
Time
228,652
238,558
319,835
Total deposits
1,924,588
1,889,710
1,893,471
Federal Home Loan Bank advances
200,000
200,000
200,000
Subordinate notes
10,855
10,850
19,719
Other liabilities
15,893
18,214
16,191
Total liabilities
2,151,336
2,118,774
2,129,381
Shareholders' equity
Common Stock
4,711
4,711
4,711
Additional paid-in capital
44,135
43,776
43,763
Retained earnings
165,085
160,001
146,403
Accumulated other comprehensive loss
(23,458)
(23,265)
(30,784)
Treasury stock
(6,628)
(6,479)
(6,729)
Total shareholders' equity
183,845
178,744
157,364
Total liabilities and shareholders' equity
$
2,335,181
$
2,297,518
$
2,286,745
Assets Under Management as of (fair value)
6/30/2026
3/31/2026
6/30/2025
Wealth Management
$
1,326,643
$
1,271,068
$
1,221,333
Held at third party brokers
154,826
145,477
138,763
Total assets under management
$
1,481,469
$
1,416,545
$
1,360,096
7
Key performance ratios as of or for the period ended as shown:
As of or for the Three Months Ended
As of or for the Six Months Ended
Performance Measurements
6/30/2026
3/31/2026
6/30/2025
6/30/2026
6/30/2025
Return on average assets*
1.14%
1.20%
1.04%
1.17%
0.89%
Return on average equity*
14.80%
15.13%
15.64%
14.96%
13.27%
Efficiency ratio (1)
59.07%
63.64%
63.71%
61.33%
67.37%
Net interest margin*
3.50%
3.53%
3.21%
3.52%
3.13%
Shareholders' Value (per common share)
Diluted earnings per share
$
1.47
$
1.48
$
1.32
$
2.94
$
2.20
Regular cash dividend paid
$
0.34
$
0.33
$
0.33
$
0.67
$
0.65
Dividend payout ratio
23.10%
22.30%
24.92%
22.70%
29.39%
Book value, per share
$
40.91
$
39.78
$
35.22
Tangible book value (1)
$
38.90
$
37.78
$
33.20
Market value, per share
$
62.60
$
51.08
$
34.63
Market value/book value ratio
153.02%
128.40%
98.31%
Market value/tangible book value ratio
160.91%
135.22%
104.28%
Price/earnings multiple*
10.65
8.63
6.56
Current quarter dividend yield*
2.17%
2.58%
3.81%
Safety and Soundness
Net loans recovered (charged-off)/average loans*
-0.12%
-0.03%
0.00%
-0.07%
0.00%
Nonperforming loans / gross loans
1.10%
0.54%
0.71%
Nonperforming assets / total assets
0.76%
0.37%
0.47%
Allowance for credit losses / loans
1.36%
1.32%
1.26%
* Annualized
(1) Non-GAAP measurement. See GAAP versus Non-GAAP disclosure reconciliation
GAAP versus non-GAAP Reconciliation Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets. By eliminating intangible assets (Goodwill), the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. In the event of such a disclosure or release, the Securities and Exchange Commission’s Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The following table shows the calculation of the non-GAAP measurements.
Non-GAAP
(Dollars in thousands, except per share)
As of
6/30/2026
3/31/2026
6/30/2025
Tangible Book Value (per share) (non-GAAP)
Shareholders' equity
$
183,845
$
178,744
$
157,364
Less intangible assets
(9,016)
(9,016)
(9,016)
Tangible book value
174,829
169,728
148,348
Shares outstanding (in thousands)
4,494
4,493
4,468
Tangible book value per share
$
38.90
$
37.78
$
33.20
For the three months ended
For the Year to date period ended
Efficiency Ratio (non-GAAP)
6/30/2026
3/31/2026
6/30/2025
6/30/2026
6/30/2025
Noninterest expense
$
14,609
$
15,353
$
14,389
$
29,960
$
28,965
Net interest income
19,347
18,521
17,238
37,867
32,843
Plus tax equivalent adjustment to net interest income
237
245
245
474
490
Plus noninterest income, net of securities gains/losses
5,149
5,360
5,103
10,509
9,664
Total revenue
$
24,733
$
24,126
$
22,586
$
48,850
$
42,997
Efficiency ratio: noninterest expense /total revenue
59.07%
63.64%
63.71%
61.33%
67.37%
8