Franklin Financial (NASDAQ: FRAF) plans $9M note redemption at 60% of principal

Rhea-AI Filing Summary

Franklin Financial Services Corporation plans to redeem a portion of its 5.00% Fixed to Floating Rate Notes due September 1, 2030. The company notified holders that on September 30, 2025 it will redeem notes having an aggregate principal amount of $9,000,000 in accordance with the terms of the notes. The total redemption price will be 60% of the aggregate principal amount of the notes, plus accrued and unpaid interest to, but excluding, the redemption date. The company states that it will use excess cash on hand to fund the redemption.

Insights

Bank capital structure analyst

Franklin Financial is using excess cash to redeem $9M of subordinated notes at a 60% redemption price.

Franklin Financial Services Corporation is redeeming a portion of its 5.00% Fixed to Floating Rate Notes due September 1, 2030. The filing states that notes with an aggregate principal amount of $9,000,000 will be redeemed on September 30, 2025, with a total redemption price equal to 60% of the aggregate principal amount, plus accrued and unpaid interest.

This action reduces outstanding debt obligations ahead of the notes’ 2030 maturity and is funded from excess cash on hand, indicating the company is not raising external capital for this transaction. The redemption terms, including the 60% of principal plus accrued interest, follow the existing note provisions referenced in the filing.

Investors can look to future filings covering periods after September 30, 2025 for updates on interest expense, capital ratios, and cash levels following this partial debt redemption.

8-K Event Classification

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report: August 25, 2025

FRANKLIN FINANCIAL SERVICES CORPORATION

(Exact name of registrant as specified in its new charter)

	Pennsylvania	001-38884	25-1440803
	(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

	1500 Nitterhouse Drive, Chambersburg, PA	17201
	(Address of principal executive office)	(Zip Code)
	Registrant's telephone number, including area code	(717) 264-6116

N/A

(Former name or former address, if changes since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨   Soliciting material pursuant to Rule 14a –12 under the Exchange Act (17 CFR 240.14a –12)

¨   Pre-commencement communications pursuant to Rule 14d – 2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨   Pre-commencement communications pursuant to Rule 13e – 4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:



Title of class	Symbol	Name of exchange on which registered
Common stock	FRAF	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

‎

Item 8.01 Other Events.

On August 25, 2025, Franklin Financial Services Corporation (the "Company") notified holders that the Company will redeem on September 30, 2025 (the "Redemption Date") a portion of the Company's outstanding 5.00% Fixed to Floating Rate Notes due September 1, 2030, having an aggregate principal amount of $9,000,000 (the "Notes"), in accordance with the terms of the Notes. The total redemption price will be 60% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, to but excluding, the Redemption Date. The Company will utilize excess cash on hand for the redemption payment.

Item 9.01 Financial Statements and Exhibits. 

    (c)  Exhibits.     The following exhibits are filed herewith:

 

Number                              Description                                

 

104      The cover page from this Current Report on Form 8-K, formatted in Inline XBRL 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FRANKLIN FINANCIAL SERVICES CORPORATION

By: /s/ Craig W. Best

Craig W. Best

President and Chief Executive Officer

Dated: August 25, 2025

FAQ

What did Franklin Financial Services Corporation (FRAF) announce in this 8-K?

Franklin Financial Services Corporation announced that it will redeem on September 30, 2025 a portion of its outstanding 5.00% Fixed to Floating Rate Notes due September 1, 2030 with an aggregate principal amount of $9,000,000.

What type and amount of debt is Franklin Financial (FRAF) redeeming?

The company is redeeming a portion of its 5.00% Fixed to Floating Rate Notes due September 1, 2030, with the filing stating an aggregate principal amount of $9,000,000 for the notes being redeemed.

At what price will Franklin Financial (FRAF) redeem the notes?

The total redemption price will be 60% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest to, but excluding, the September 30, 2025 redemption date.

When is the redemption date for Franklin Financial’s (FRAF) 5.00% Fixed to Floating Rate Notes?

The redemption date for the portion of the 5.00% Fixed to Floating Rate Notes is September 30, 2025.

How will Franklin Financial (FRAF) fund the redemption of its notes?

The company states that it will use excess cash on hand to make the redemption payment for the notes.

What is the interest rate and maturity of the Franklin Financial (FRAF) notes being redeemed?

The notes being redeemed carry a 5.00% fixed to floating interest rate and are originally due on September 1, 2030.