Form 4: FRAF Executive Exercises Stock Options

Steven D. Butz, EVP and CCSO of Franklin Financial Services Corp, exercised 2,700 incentive stock options and had shares withheld for tax purposes.

Summary

• Steven D. Butz, Executive Vice President and Chief Corporate Services Officer (CCSO) of Franklin Financial Services Corp /PA/ (FRAF), exercised 2,700 incentive stock options on December 18, 2025.
• The exercise price for these options was $21.27 per share.
• Concurrently, 1,024 shares of common stock were withheld by the issuer at a market price of $56.12 per share to fund the cashless exercise and cover associated liabilities.
• Following these transactions, Mr. Butz beneficially owns 6,602 shares of common stock, which includes previously reported unvested restricted stock units.
• Mr. Butz still holds 2,700 incentive stock options exercisable at $30 with an expiration date of February 23, 2027, and another 2,700 incentive stock options exercisable at $34.1 with an expiration date of February 22, 2028.

Sentiment

Score: 6

Explanation: The filing reports a standard executive stock option exercise, which is a neutral event. The executive realizing value from options is a positive for the individual, but the transaction itself does not significantly alter the company's outlook or financial health. The future transaction date is unusual but does not inherently imply negative sentiment without further context.

Positives

• The executive exercised options at a significantly lower price ($21.27) than the market price ($56.12), indicating a substantial in-the-money value for the options.
• The cashless exercise mechanism allowed the executive to realize value from the options without needing to provide upfront cash.

Negatives

• 1,024 shares were disposed of (withheld) to cover the exercise cost and tax liabilities, reducing the total number of shares beneficially owned by the executive post-transaction.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This Form 4 filing details a routine executive compensation event (stock option exercise) and does not provide information relevant to broader industry trends or competitive analysis.

Related Party Transactions

• The cashless exercise of incentive stock options and the withholding of shares by the issuer to cover costs and taxes constitute a transaction between the reporting person (an executive) and the company (issuer), which is a related party transaction. This is a standard part of executive compensation plans.

Stakeholder Impact

• Shareholders: Minimal direct impact from a single executive's routine option exercise. It reflects an executive realizing value from their compensation plan.
• Employees: No direct impact on general employees.
• Customers/Suppliers/Creditors: No direct impact.

Key Dates

Keywords

Franklin Financial Services, FRAF, Steven D. Butz, stock options, insider transaction, Form 4, executive compensation, beneficial ownership, cashless exercise