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Yahoo
4 days ago
- Business
- Yahoo
Franklin Financial Earnings Surge 95% Y/Y in Q2, Stock Slips
Shares of Franklin Financial Services Corporation FRAF have declined 6.2% since reporting results for the second quarter of 2025 on July 22. In contrast, the S&P 500 index has risen 0.9% over the same period. Despite this post-earnings dip, FRAF has seen a significant rally of 23.7% over the past month compared with 3.9% growth in the S&P 500. Robust Y/Y Financial Performance Franklin Financial delivered strong second-quarter results, with net income surging 94.8% year over year to $5.9 million, or $1.32 per diluted share, from $3 million, or 66 cents per diluted share, in the prior-year period. Revenue growth was driven largely by a 21.3% increase in net interest income to $17.2 million from $14.2 million a year earlier. The gains were primarily attributed to higher interest income from the expanding loan portfolio. For the first half of 2025, net income rose 53.7% to $9.8 million ($2.20 per diluted share) from the $6.4 million ($1.43 per diluted share) registered in the first six months of 2024. Net interest income for the six months rose 18.3% to $32.8 million, underpinned by a 13.2% increase in commercial real estate loans. Franklin Financial Services Corp. Price, Consensus and EPS Surprise Franklin Financial Services Corp. price-consensus-eps-surprise-chart | Franklin Financial Services Corp. Quote Key Business Metrics: Strong Growth Across Core Segments Franklin Financial's balance sheet reflected healthy expansion. Total assets climbed 4.1% from the end of 2024 to $2.29 billion as of June 30, 2025. Loan growth was particularly strong, with total net loans rising 8.7% over the six months to $1.5 billion. The loan expansion was led by a $68.9-million increase in commercial real estate loans, which now total $872.2 million. Notably, 41% of the CRE portfolio is owner-occupied. Deposits increased 4.3% from Dec. 31, 2024, to $1.89 billion at quarter-end. The rise was mainly driven by money management accounts, partially offset by declines in interest-bearing checking and savings balances. Approximately 89% of deposits were either FDIC-insured or collateralized. Shareholders' equity grew by $12.6 million to $157.4 million, aided by retained earnings of $6.9 million (net) of $2.9 million in dividends. Management Commentary: Focused Expansion & Conservative Risk Posture Management emphasized disciplined growth and asset quality management in its commentary. While the company experienced a marked increase in non-performing loans from $266 thousand at the end of 2024 to $10.8 million at the end of the second quarter, this deterioration was largely concentrated in two loans — a $7.4-million construction loan (current on payments) and a $2.9-million hotel loan slated for auction in July. Despite this uptick, the allowance for credit losses held steady at 1.26% of loans. Executives reiterated the bank's conservative risk approach and highlighted progress in commercial real estate lending and wealth management. Assets under management grew 6.9% year over year to $1.36 billion. Drivers of Performance: Loan & Deposit Momentum Boost Margins The primary driver of the company's performance was loan portfolio growth, particularly in commercial real estate, which led to a 15.4% year-over-year increase in average loan balances. The yield on interest-earning assets improved to 5.30% in the second quarter from 5.10% in the prior-year period. Meanwhile, deposit costs rose year over year from 1.74% to 1.95% but moderated slightly to 1.90% in the second quarter, suggesting stabilizing funding costs. This helped lift the net interest margin to 3.21% from 2.99% in the same quarter last year. Non-interest income also supported the overall performance, climbing 17.3% to $5.1 million for the quarter, boosted by higher wealth management fees, loan-related charges and a one-time refund on state sales taxes. Operating expenses increased just 0.4% year over year to $14.4 million, indicating cost discipline despite inflationary pressures. View: No Specific Outlook Issued Management's discussion suggests a continued focus on expanding commercial lending and managing credit quality, particularly in response to recent non-performing loan developments. Other Developments In January 2025, Franklin Financial authorized an open market share repurchase plan for up to 150,000 shares over one year. As of June 30, 6,700 shares had been repurchased under the plan, primarily to fund the dividend reinvestment program. Additionally, the board declared a third-quarter dividend of 33 cents per share, consistent with the second quarter but representing a 3.1% increase over the dividend declared for the third quarter of 2024. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Financial Services Corp. (FRAF): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Green Dot vs. SoFi: Which Fintech Bank Powerhouse is the Smarter Pick?
Green Dot GDOT and SoFi Technologies SOFI are both U.S.-listed fintech firms competing in the rapidly evolving digital banking space. Green Dot operates primarily as a provider of prepaid debit cards and banking-as-a-service (BaaS) solutions, enabling embedded finance for third-party platforms. Its model focuses on powering banking infrastructure behind major brands and retailers. SoFi, by contrast, runs a full-stack digital banking platform and direct lending operation, offering personal loans, student loan refinancing and mortgage products. With a national bank charter, SoFi also provides high-yield savings, checking and investment tools, positioning itself as a one-stop shop for consumer financial services. Green Dot's Case Green Dot remains committed to driving the long-term growth of its business through a combination of strategic innovation and deep partnerships. A key focus lies in acquiring long-term users by issuing prepaid cards, both under its own brand, widely available in retail stores, and through co-branded offerings such as the Walmart MoneyCard. In addition to its core services, such as prepaid cards and tax processing, Green Dot leverages its proprietary technology platform and FDIC-insured banking license to deliver "Banking-as-a-Service" (BaaS). This model enables Green Dot to offer white-label banking solutions to major corporations, including Walmart WMT, Uber UBER, and Apple AAPL. Through these BaaS partnerships, Green Dot integrates its financial products directly into the ecosystems of Walmart, Uber, and Apple, thereby gaining access to vast and loyal customer bases. As users from these platforms adopt Green Dot-powered banking services, the company generates revenues through interchange fees when customers use their debit cards and earns interest income by retaining deposits. This strategy strengthens the company's relevance in the digital banking space while monetizing high-volume consumer activity. What sets Green Dot apart from other BaaS providers is its asset-light balance sheet, which supports higher interchange margins and limits dependence on interest income. This financial structure enhances operational efficiency, ensuring that its BaaS model remains both scalable and profitable. By continuing to deepen relationships with household names like Walmart, Uber and Apple, Green Dot is well-positioned to sustain growth and expand its footprint across the embedded finance landscape. SoFi's Case SoFi's land-and-expand strategy remains a core strength, provided it is effectively managed. The company has a strong track record of executing this ambitious growth approach. By offering a diverse range of financial services, SoFi attracts a growing customer base. This, in turn, incentivizes more partners to integrate their offerings within SoFi's expanding ecosystem. The result is a robust cross-selling dynamic that enhances overall profitability. Now, SoFi is taking the fight deeper into the fintech trenches. The firm recently extended its $2 billion Loan Platform Business agreement with Fortress Investment Group, focusing on personal loans. This bold move isn't just about scale; it's strategic. SoFi is actively shifting toward fee-based revenues that require less capital and offer more flexibility, signaling a deliberate pivot from traditional lending to a more robust, recurring revenue ecosystem. Meanwhile, SoFi is keeping the innovation pedal floored. It launched two new credit cards — SoFi Everyday Cash Rewards and SoFi Essential Credit Card — cementing its footprint in consumer finance and locking users deeper into its ecosystem. It's not just about more products, it's about smarter ones that boost lifetime value and retention. How Do Zacks Estimates Compare for SOFI & GDOT? The Zacks Consensus Estimate for SOFI's 2025 sales and EPS indicates year-over-year growth of 26% and 87%, respectively. EPS revisions have trended upwards in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for GDOT's 2025 sales indicates a 20% year-over-year increase, and EPS indicates a year-over-year decline of 11%. EPS estimates haven't moved in the past 60 days. Image Source: Zacks Investment Research GDOT Undervalued, SOFI Priced for Growth While GDOT appears attractively valued with a forward 12-month P/E of 7.65X versus its median of 10.51X, SoFi's higher forward P/E of 53.2X — above its median of 41.4X — reflects investor confidence in its rapid earnings growth potential. Winner: SoFi Technologies SoFi emerges as the smarter fintech, thanks to its aggressive growth strategy, national bank charter, and expanding product suite. While Green Dot's BaaS model and strong partnerships with giants like Walmart and Apple offer stability, its declining EPS outlook limits momentum. In contrast, SoFi's 2025 projections show explosive year-over-year growth — 26% in sales and 87% in earnings — supported by upward EPS revisions. The launch of innovative credit products and its pivot to fee-based revenue signal a future-focused approach. Despite its high P/E, investor confidence in SoFi's scalable platform and retention-driven ecosystem makes it the clear long-term winner. Both SOFI and GDOT carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Green Dot Corporation (GDOT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Wire
16-07-2025
- Business
- Business Wire
Old Glory Bank Awards $10,000 Merit Scholarship to Promising Student
ELMORE CITY, Okla.--(BUSINESS WIRE)--Old Glory Bank is proud to announce the recipient of its inaugural Old Glory Bank Merit Scholarship. The one-time, $10,000 award recognizes a rising college freshman who has demonstrated the outstanding values the Bank holds in the highest regard – patriotism, commitment to excellence, integrity, discipline, and service. To be considered, students were required to be an Old Glory Bank account holder and meet minimum GPA requirements. They were asked to submit a transcript demonstrating their academic accomplishments, a resume outlining their community involvement and leadership roles, and an essay. All submissions went through a blind review process, which was carefully structured and anonymized to ensure an unbiased consideration of every applicant, as neither their name, their school, nor their geographic location was known to the scholarship committee. Each reviewer scored the submission based on a defined rubric, and each application was evaluated by several committee members independently. The top ten applications were identified as semi-finalists, which were then sent to our panel of final judges, made up of distinguished community leaders and former educators. Through this competitive selection process, Old Glory Bank selected Taryn McCaa as the 2025 scholarship recipient. 'We are thrilled to celebrate Taryn's accomplishments,' said Anne Marie Ring, Chief Legal and Administrative Officer of Old Glory Bank. 'Her dedication to excellence exemplifies the spirit upon which this Country was founded, and we look forward to supporting her college journey.' Taryn will receive the $10,000 scholarship to use toward tuition, fees, textbooks, or other approved educational expenses for the 2025–2026 academic year. She plans to major in Animal Science at Oklahoma State University, ultimately pursuing a Doctor of Veterinary Medicine degree with a specialization in equine medicine. Says Taryn, 'I am so grateful for this scholarship to help me pursue my college goals. I believe that giving back means leading by example and being true to your own self. I want to continue helping students with disabilities through volunteering involvement in equine therapy programs and ultimately returning to my home community to open a veterinary clinic.' Ring adds, 'At Old Glory Bank, we celebrate a vision where opportunity is dictated by the merit of the individual and our shared American identity. We believe success is a result of hard work, and using one's God-given talents well. We received many applications for this scholarship, all of which gave us encouragement about the future of America. This generation of students holds incredible promise.' Old Glory Bank will announce the next scholarship opportunity in early 2026. Current High School seniors should monitor for application details and deadlines. About Old Glory Bank Old Glory Bank is an FDIC-insured bank that offers the best mobile banking solutions for consumers and businesses, from sea to shining sea. Old Glory Bank is committed to protecting the Privacy, Security, and Liberty of all Americans and serving those who feel marginalized for believing in the greatness of our country. Old Glory Bank was co-founded by some of the leading voices representing freedom and patriotism, including former Secretary of Housing and Urban Development, Dr. Ben Carson; Radio and Television Host Larry Elder; country music superstar, TV host, entrepreneur, and songwriter, John Rich; and former two-term Governor of Oklahoma, Mary Fallin-Christensen. Visit We Stand with You. Member FDIC. Follow us on our social media accounts. X: @oldglorybank, Facebook: Old Glory Bank, Instagram: @oldglorybank, Truth: @oldglorybank, Rumble: @oldglorybank, YouTube: Old Glory Bank,
Business Wire
15-07-2025
- Business
- Business Wire
MFS Amends Shareholder Agreement for MFS High Yield Municipal Trust
BOSTON--(BUSINESS WIRE)--MFS Investment Management® (MFS®) announced today that the Board of Trustees (the "Board") of MFS High Yield Municipal Trust (the "Fund") (NYSE: CMU), a closed-end management investment company, has amended an existing agreement with a large shareholder of the Fund pursuant to which the Board agreed to approve a proposal for a liquidity event, unless the average trading discount of the Shares equaled or was less than 7.50% for the entirety of a consecutive 30 calendar day period (the 'Discount Threshold') ending July 15, 2025. Under the terms of the amendment, the deadline for the Fund to satisfy the Discount Threshold has been extended until December 31, 2025. Cautionary Statement Regarding Forward-Looking Statements This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within The Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and can be identified by the use of words such as "may," "will," "expect," "anticipate," "estimate," "believe," "continue," or other similar words. Such forward-looking statements are based on the Fund's current plans and expectations, are not guarantees of future results or performance, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements are as of the date of this release only; the Fund undertakes no obligation to update or review any forward-looking statements. You are urged to carefully consider all such factors. About the Fund The Fund is a closed-end investment company product advised by MFS Investment Management. Closed end funds, unlike open end funds, are not continuously offered. Shares may trade at a discount to NAV. Shares of the Fund are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the Fund involve investment risk, including possible loss of principal. For more complete information about the Fund, including risks, charges, and expenses, please see the Fund's annual and semi-annual shareholder reports or contact your financial adviser. About MFS Investment Management In 1924, MFS launched the first U.S. open end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries, and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of June 30, 2025, MFS manages $635.4 billion in assets on behalf of individual and institutional investors worldwide. Please visit mf for more information. MFS Investment Management 111 Huntington Ave., Boston, MA 02199 65541.1
Business Wire
15-07-2025
- Business
- Business Wire
MFS Amends Shareholder Agreement for MFS Investment Grade Municipal Trust
BOSTON--(BUSINESS WIRE)--MFS Investment Management® (MFS®) announced today that the Board of Trustees (the "Board") of MFS Investment Grade Municipal Trust (the "Fund") (NYSE: CXH), a closed-end management investment company, has amended an existing agreement with a large shareholder of the Fund pursuant to which the Board agreed to approve a proposal for a liquidity event, unless the average trading discount of the Shares equaled or was less than 7.50% for the entirety of a consecutive 30 calendar day period (the 'Discount Threshold') ending July 15, 2025. Under the terms of the amendment, the deadline for the Fund to satisfy the Discount Threshold has been extended until December 31, 2025. Cautionary Statement Regarding Forward-Looking Statements This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within The Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and can be identified by the use of words such as "may," "will," "expect," "anticipate," "estimate," "believe," "continue," or other similar words. Such forward-looking statements are based on the Fund's current plans and expectations, are not guarantees of future results or performance, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements are as of the date of this release only; the Fund undertakes no obligation to update or review any forward-looking statements. You are urged to carefully consider all such factors. About the Fund The Fund is a closed-end investment company product advised by MFS Investment Management. Closed end funds, unlike open end funds, are not continuously offered. Shares may trade at a discount to NAV. Shares of the Fund are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the Fund involve investment risk, including possible loss of principal. For more complete information about the Fund, including risks, charges, and expenses, please see the Fund's annual and semi-annual shareholder reports or contact your financial adviser. About MFS Investment Management In 1924, MFS launched the first U.S. open end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries, and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of June 30, 2025, MFS manages $635.4 billion in assets on behalf of individual and institutional investors worldwide. Please visit mf for more information. MFS Investment Management 111 Huntington Ave., Boston, MA 02199 65542.1
