Franklin Financial Q2 net income +12% to $6.6M as two CRE loans default, $8.6M loan breaches forbearance

Filed August 10, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 14, 2025 · ~1 min read

Key Changes

• high

  An $8.6M nonaccrual loan defaulted under forbearance on Aug 2, 2026; borrower remains in cure period while the Bank reviews remedies. No balance-sheet adjustment required as of June 30.

  Subsequent Events note view on EDGAR →
• high

  Nonaccrual loans doubled to $17.7M (1.10% of loans) from $10.8M a year earlier, driven by two CRE credits totaling $17.4M under forbearance with $1.9M in specific reserves.

  MD&A: Loan Quality verify on EDGAR →
• high

  Q2 2026 net income rose 11.9% to $6.6M ($1.47 diluted EPS); year-to-date net income up 34.8% to $13.2M as net interest margin expanded 39bp to 3.52%.

  MD&A: Results of Operations verify on EDGAR →