The bank holding company, which operates F&M Trust, saw its net income climb to $13.2 million for the first half of 2026, marking a 34.8% jump compared to the same period last year. Total assets reached $2.335 billion by June 30, fueled by a 4.3% increase since the end of 2025. Wealth management fees also provided a steady tailwind, growing 6.1% to reach $2.6 million for the quarter.

Despite the positive earnings, the bank's credit quality profile shifted during the quarter. Nonperforming loans rose to $17.7 million, up from $8.5 million at the end of last year. This increase is primarily driven by two commercial real estate loans, including a $7 million construction project and an $8.8 million participation loan secured by office buildings. To address these exposures, Franklin Financial increased its specific reserves to $1.2 million and $734 thousand respectively, signaling a cautious approach to its real estate concentration, which remains at 348.2% of risk-based capital.

On July 16, the Board of Directors declared a regular quarterly cash dividend of $0.34 per share, payable on August 26 to shareholders of record as of August 7.