FRAF Stock: Insider Activity, Filings & Research

Franklin Financial Services Corporation (FRAF) — Drillr’s hub for FRAF insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, FRAF insiders filed 3 open-market buys and 1 sale (SEC Form 4).

Sentiment

57/100

Buys (3m)

Sells (3m)

Net (3m)

$27.2K

Insiders buying

Insider trades by month Buys Sells

Nov

Dec

Feb

Mar

Apr

Jun

Context3-month price +6.8%Institutions accumulating (13F)

Date	Insider	Type	Shares	Price
Jun 2, 2026	BEST CRAIG Wofficer: CEO	Grant	246	$47.51
Jun 2, 2026	Hollar Mark Rofficer: SEVP/CFO	Grant	136	$47.51
Jun 2, 2026	Carroll Charles Benner Jrofficer: President & COO	Grant	109	$47.51
Jun 2, 2026	Carmack Karen Kofficer: SVP, Chief HR Officer	Grant	7	$47.51
Jun 2, 2026	Giustini Louis Jofficer: SVP, CRSO	Grant	82	$47.51
Jun 2, 2026	Long David Mofficer: SVP, Chief Technology Officer	Grant	16	$47.51
Jun 1, 2026	Duffey Gregory Adirector	Buy	17	$58.88
Jun 1, 2026	Butz Steven Dofficer: EVP, CCSO	Sell	1,400	$57.73
Apr 30, 2026	Duffey Gregory Adirector	Buy	18	$55.35
Apr 29, 2026	Carroll Charles Benner Jrofficer: President & COO	Grant	1,020	—
Mar 30, 2026	Snook Gregory Idirector	Grant	128	$50.56
Mar 30, 2026	ELLIOTT G WARRENdirector	Grant	48	$50.56
Mar 30, 2026	Craig Kevin Wdirector	Grant	214	$50.56
Mar 30, 2026	Fisher Daniel Jdirector	Grant	97	$50.56
Mar 30, 2026	Duffey Gregory Adirector	Grant	63	$50.56

Source: FRAF SEC Form 4 filings, latest Jun 2, 2026. For informational purposes only — not investment advice.

Overview

Franklin Financial Services Corporation (NASDAQ:FRAF) is a Pennsylvania-based bank holding company founded in 1906 and headquartered in Chambersburg. The company operates through its primary subsidiary, Farmers and Merchants Trust Company of Chambersburg, providing traditional community banking services across south-central Pennsylvania. With over a century of operations, Franklin Financial has established itself as a regional community bank serving Franklin, Cumberland, Fulton, and Huntingdon counties through twenty-two banking offices. The company went public in 1994 and continues to focus on serving small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in its geographic footprint.

Business

Franklin Financial operates as a traditional community bank in the regional banking sector, which involves taking deposits from customers and lending those funds to borrowers while earning a profit on the interest rate spread. Community banks like Franklin Financial serve as financial intermediaries in local economies, channeling savings from depositors to borrowers who need capital for various purposes. The company's core banking services include deposit products such as checking accounts, savings accounts, money management accounts, and time deposits (certificates of deposit). These products allow customers to safely store their money while earning interest, and they provide the bank with the funds needed for lending operations. On the lending side, Franklin Financial offers several loan categories: commercial real estate loans for business property purchases, construction and land development financing for real estate projects, agricultural loans for farming operations, commercial and industrial loans for business operations and equipment, and residential mortgage loans for home purchases. The bank also provides consumer installment loans and revolving credit lines for personal use. Beyond traditional banking, Franklin Financial operates a trust and investment services division that manages estates, corporate and personal trust funds, pension plans, and employee benefit programs. This division also provides custodial services and sells investment products including mutual funds, annuities, and insurance products. Additionally, the company operates Franklin Future Fund Inc., a non-bank investment subsidiary that makes venture capital investments in local businesses. While specific revenue breakdowns by segment are not provided in the available data, traditional community banks typically generate approximately 70-80% of their revenue from net interest income (the difference between interest earned on loans and interest paid on deposits), with the remainder coming from fee-based services like trust management, investment sales, and other banking fees.

Revenue model

Franklin Financial generates revenue through the traditional community banking model centered on net interest income and fee-based services. The primary revenue source is the interest rate spread between what the bank pays depositors and what it charges borrowers. When the bank accepts a deposit paying 2% interest and lends those funds at 6%, it earns a 4% net interest margin on that transaction. The bank's paying customers include local businesses seeking commercial loans and lines of credit, individuals obtaining mortgages and personal loans, and depositors who provide the funding base. The trust and investment services division generates fee income from wealthy individuals and businesses requiring estate planning, pension management, and investment services. Several factors can significantly impact Franklin Financial's profitability margins. Interest rate environments play a crucial role - when rates rise rapidly, the bank may face pressure as deposit costs increase faster than loan yields can be repriced. Conversely, a favorable rate environment can expand net interest margins. Credit quality directly affects profitability, as loan losses from defaults reduce net income. Economic conditions in the bank's Pennsylvania markets influence both loan demand and credit quality. Competition from larger banks and credit unions can pressure both deposit rates (increasing funding costs) and loan rates (reducing yield), compressing margins. Additionally, regulatory compliance costs represent a fixed expense burden that can impact smaller community banks disproportionately. The bank's ability to grow its loan portfolio and maintain deposit relationships while controlling operating expenses determines its overall profitability trajectory. The trust and investment services provide some revenue diversification, generating fee income that is less sensitive to interest rate fluctuations but more dependent on market conditions and asset values under management.

Competitive moat

Franklin Financial operates with a moderate community banking moat built primarily on local relationships and geographic convenience, though this moat faces ongoing erosion from multiple competitive pressures. The company's primary competitive advantage stems from its deep roots in south-central Pennsylvania communities, where it has operated for over a century. Local businesses and individuals often prefer working with community banks that understand regional economic conditions and can make lending decisions locally rather than through distant corporate headquarters. The bank's relationship-based banking model creates some customer stickiness, particularly in commercial lending where businesses value personal service and local decision-making. The trust and investment services division adds another layer of customer retention, as these services often involve long-term relationships and switching costs for clients. However, Franklin Financial's moat is relatively narrow and faces significant competitive threats. Larger regional and national banks offer more sophisticated digital banking platforms, broader product suites, and often more competitive pricing due to their scale advantages. Credit unions in the region provide similar community-focused service while operating with tax advantages that allow them to offer better rates. Digital disruption poses an increasing threat as online banks and fintech companies offer higher deposit rates and more convenient services without the overhead of physical branches. Younger customers, in particular, show less loyalty to traditional community banks and are more willing to bank digitally with institutions outside their geographic area. The bank's concentration in a limited geographic area also represents a vulnerability, as economic downturns or demographic changes in its Pennsylvania markets could disproportionately impact its business. While the community banking model provides some defensive characteristics, Franklin Financial lacks the scale, technological resources, and geographic diversification that would constitute a truly strong competitive moat in today's evolving banking landscape.

Risks & safety

Franklin Financial presents a moderate margin of safety with solid capital levels but elevated valuation metrics that suggest limited downside protection. • Solvency and Capital: The bank maintains strong liquidity with $205 million in cash and short-term investments against $2.2 billion in total assets. The debt-to-equity ratio of 1.55x is typical for community banks, reflecting the leveraged nature of banking operations. No immediate solvency concerns are evident. • Profitability Trends: Net income declined significantly from $14.9 million in 2022 to $11.1 million in 2024, with return on equity dropping from 13.1% to 7.7%, indicating deteriorating profitability. • Valuation Metrics: Current P/E ratio of 11.9x appears reasonable for a community bank, though this follows a sharp decline in earnings. Price-to-book ratio of 0.91x suggests the stock trades below tangible book value, providing some asset-based downside protection. • Cash Generation: Free cash flow of $19.2 million in 2024 demonstrates the bank's ability to generate cash, though this represents a decline from $26.0 million in 2023. • Other Considerations: The concentrated geographic footprint increases risk exposure to regional economic downturns. Interest rate sensitivity could pressure margins if funding costs rise faster than loan yields can be adjusted.

Recent development

Based on the available financial data, Franklin Financial has experienced mixed operational performance over recent years, with some concerning trends emerging. The bank's profitability has declined notably, with net income falling from $14.9 million in 2022 to $11.1 million in 2024, representing a 26% decrease despite relatively stable revenue levels around $65-70 million annually. This suggests the bank is facing margin pressure, likely from increased funding costs in the rising interest rate environment. The bank's balance sheet has grown substantially, with total assets increasing from $1.7 billion in 2022 to $2.2 billion in 2024, indicating successful deposit gathering and loan growth. However, this growth has not translated into proportional earnings growth, suggesting challenges in maintaining net interest margins during the expansion. Cash and liquidity positions have strengthened significantly, with cash and short-term investments rising from $79 million in 2022 to $205 million in 2024. This increased liquidity provides financial flexibility but may also indicate difficulty in deploying funds profitably in the current interest rate environment. The bank's return on equity has deteriorated markedly, declining from 13.1% in 2022 to 7.7% in 2024, reflecting the earnings pressure relative to growing shareholder equity. This trend suggests the bank is struggling to generate adequate returns on invested capital in the current operating environment. Without access to recent earnings call transcripts, specific strategic initiatives or management commentary on future direction are not available, but the financial trends suggest the bank is navigating challenges common to community banks in periods of interest rate volatility and competitive pressure.

FRAF company profile · for informational purposes only — not investment advice.

Track FRAF with Drillr

SEC filings, earnings calls, insider activity, alt-data signals — all queryable through Drillr's AI terminal and MCP API.

Try Drillr for free