CHAMBERSBURG, PA – Franklin Financial Services Corp (NASDAQ:FRAF), the bank holding company for F&M Trust, announced in a recent SEC filing that its Board of Directors has declared a regular cash dividend for the first quarter of 2025, maintaining the payout at $.32 per share, consistent with the fourth quarter of 2024. Shareholders on record as of February 7, 2025, will receive the dividend on February 26, 2025.
In addition to the dividend, the company revealed a new share repurchase program. The Board has authorized the buyback of up to 150,000 shares of the company's common stock. This stock repurchase is set to take place in the open market or through privately negotiated transactions starting January 17, 2025, and is expected to continue until the end of the year. With the stock currently trading at $33.10, near its 52-week high of $34.15, InvestingPro analysis suggests the shares are slightly overvalued at current levels.
The repurchase plan and the dividend declaration are part of Franklin Financial's capital management strategy. These actions reflect the company's commitment to delivering value to its shareholders and its confidence in the financial stability of the corporation. The company's market capitalization stands at $147.44 million, with a P/E ratio of 10.41, indicating relatively modest valuations compared to the broader banking sector.
The company's decision to maintain the dividend at the same level as the previous quarter indicates a steady financial position and a consistent approach to shareholder returns. The share repurchase program also suggests the company believes its stock is undervalued and represents a good investment opportunity.
Franklin Financial Services Corp, operating under the symbol (NASDAQ:FRAF), has not changed its dividend payout despite declaring the repurchase program, which can often be seen as a method to increase the value of remaining shares.
In other recent news, Franklin Financial Services Corp. has announced the appointment of Craig W. Best as the successor to the current President and CEO, Timothy G. Henry, who is set to retire in April 2025. Best, who has a wealth of experience in the banking industry, will assume the role of President immediately and will take over as CEO following Henry's retirement. The company has also executed a substantial reshuffling of its investment portfolio, selling about $46.7 million in lower-yielding U.S. Treasury debt, with the proceeds reinvested in higher-yielding securities.
These are among the recent developments at the company. As part of Best's employment agreement, he will receive an initial annual base salary of $414,986, set to increase to $523,198 by April 2025. The agreement includes provisions for bonuses, benefits, and a restricted stock grant of 1,500 shares of Franklin Financial common stock.
Franklin Financial has maintained its quarterly dividend, declaring a $.32 per share regular cash dividend, consistent with the previous quarter's distribution. Lastly, the company's overall financial health is rated as FAIR by InvestingPro analysts, with strong scores in profitability and relative value metrics.
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