Franklin Financial announces CEO transition and dividend hike

Published 14/04/2025, 21:16
Franklin Financial announces CEO transition and dividend hike

Franklin Financial Services Corp. /PA/ (NASDAQ:FRAF), a state commercial bank with a market capitalization of $153.46 million and a P/E ratio of 13.7, announced a leadership transition and an increase in its quarterly cash dividend. Craig W. Best, currently President of both the corporation and its subsidiary, Farmers and Merchants Trust Company of Chambersburg, is set to take over as Chief Executive Officer. Best will assume the new role following the corporation’s 2025 Annual Meeting on April 29, succeeding Timothy G. Henry, whose retirement has been extended to May 2. The leadership transition comes as the company shows strong momentum, with a 14.7% return year-to-date.

In addition to the leadership change, Franklin Financial declared a regular cash dividend of $0.33 per share for the second quarter of 2025, marking a 3.1% increase from the dividends declared in the first quarter of 2025 and the second quarter of 2024. The dividend will be payable on May 28 to shareholders of record as of the close of business on May 2. This continues the company’s impressive 42-year streak of dividend payments, with the current yield at 3.76%. InvestingPro analysis reveals additional insights about the company’s dividend sustainability and growth potential.

The company’s recent 8-K filing with the SEC provides the details of these announcements, reflecting the corporation’s ongoing commitment to its shareholders and the planned succession strategy for its executive leadership. The information in this article is based on statements from the press release and financial data from InvestingPro.

In other recent news, Franklin Financial Services Corp announced the maintenance of its regular cash dividend for the first quarter of 2025, holding steady at $0.32 per share, matching the previous quarter’s payout. The company also introduced a new share repurchase program, authorizing the buyback of up to 150,000 shares. This initiative is part of Franklin Financial’s strategy to manage capital effectively and reflects its confidence in the company’s financial stability. These decisions were disclosed in a recent SEC filing, emphasizing the company’s commitment to delivering value to its shareholders.

Additionally, Franklin Financial Services Corp appointed Craig W. Best as the new President and upcoming CEO, succeeding Timothy G. Henry, who will retire on April 29, 2025. Best, who has extensive experience in the banking sector, will assume the CEO role after Henry’s departure. The company has outlined a comprehensive employment agreement for Best, including a base salary, bonuses, and a restricted stock grant. This leadership transition was officially announced through a press release and detailed in an 8-K filing with the SEC.

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