Financial Performance - Net income for 2024 was 13,598 thousand in 2023, a decrease of 18.4%[295] - Basic earnings per share decreased to 3.11 in 2023, a decline of 15.9%[293] - Noninterest income decreased to 14,851 thousand in 2023, a decline of 7.9%[293] - Total noninterest expense increased to 50,011 thousand in 2023, reflecting an increase of 11.7%[293] - The income tax provision for 2024 was 2,155 thousand and 13.7% in 2023[412] Asset Growth - The Corporation's total assets increased to 1,836,039 thousand in 2023, representing a growth of approximately 19.7%[290] - Cash and cash equivalents increased significantly to 23,140 thousand at the end of 2023[300] - Total deposits rose to 1,537,978 thousand in 2023, reflecting a growth of approximately 18.1%[290] - The Corporation's total shareholders' equity rose to 132,136 thousand in 2023, representing a growth of about 9.5%[291] Loan Portfolio - The net loans increased to 1,240,933 thousand in 2023, marking an increase of approximately 11.3%[290] - The loan portfolio increased to 1,256,985 thousand in 2023, reflecting a growth of approximately 11.2%[380] - Residential real estate loans for 1-4 family properties rose to 277,849 thousand in 2023, indicating an increase of 16.2%[380] - Commercial real estate loans increased to 703,767 thousand in 2023, representing a growth of 14.2%[380] Credit Losses and Allowance - The allowance for credit losses (ACL) increased to 16,052 thousand in 2023, indicating a rise of 10%[290] - The allowance for credit losses was 16,052 thousand in 2023, reflecting a rise of 10%[380] - The Corporation evaluates the adequacy of the ACL based on past loan loss experience and current economic conditions[324] - Management believes the allowance for credit losses as of December 31, 2024, is adequate based on ongoing assessments[386] Interest Income and Rates - Net interest income is projected to increase by 4.4% to 101,451 thousand in 2024 from 55,531 thousand in 2024, compared to 1.28 per share in both 2024 and 2023, with total dividends paid of 1.7 million to capital in 2024, with 730,000 from optional cash purchases[446] Risk Management - The Corporation has no foreign currency exchange rate risk, commodity price risk, or material equity price risk, but is exposed to interest rate risk[270] - The financial simulation modeling forecasts net interest income and economic value of equity under various interest rate environments, measured at least quarterly[273] Pension and Employee Benefits - The total net periodic pension cost increased from 168 thousand in 2024, reflecting changes in service and interest costs[425] - The interest cost for the defined benefit pension plan was 806 thousand in 2023[425] - The Corporation's 401(k) plan expense remained consistent at $1.3 million for both 2024 and 2023, indicating stable employee participation and matching contributions[421] Legal and Compliance - No material legal proceedings are pending against the Corporation that would have a material adverse effect on its financial position[456] - Management does not anticipate that the ultimate aggregate liability from litigation will materially affect the Corporation's financial position[455]
Franklin Financial Services (FRAF) - 2024 Q4 - Annual Report