Franklin Financial's Q2 profit rises on higher interest income

• NET INTEREST INCOME - Growth driven primarily by a decrease in interest expense, with higher loan interest partially offset by lower investment portfolio income
• CREDIT LOSS PROVISION - Higher provision due to increased reserves on two nonaccrual CRE loans
• NONINTEREST INCOME - Wealth management fees and gains on loan sales rose, but overall noninterest income was flat due to the absence of a prior-year state sales tax refund

Company press release: ID:nPn44zD15a

• Company did not provide specific guidance or outlook for future quarters or full year in press release

• The one available analyst rating on the shares is "buy"
• The average consensus recommendation for the banks peer group is "buy"
• Wall Street's median 12-month price target for Franklin Financial Services Corp is $64.00, about 1.9% above its July 23 closing price of $62.81
• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

• US community bank's Q2 net income rose 12% yr/yr, EPS up to $1.47
• Net interest income for Q2 grew 12% yr/yr
• Provision for credit losses increased due to higher reserves on two CRE loans