8-K

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 19, 2020

FRANKLIN FINANCIAL SERVICES CORPORATION

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

Pennsylvania 001-38884 25-1440803

(State or other jurisdiction (Commission (IRS Employer

of incorporation) File Number) Indent. No.)

20 South Main Street, 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 7.01 Regulation FD Disclosure.

Franklin Financial Services Corporation (the “Corporation”) mailed its Quarterly Shareholder Newsletter. The mailing is attached hereto as Exhibits 99.1 and is incorporated herein by reference.

The information in this Form 8-K provided under Item 7.01, including all exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of the Corporation under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1Corporate Presentation

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/ Timothy G. Henry

Timothy G. Henry,

President and Chief Executive Officer

Dated: August 19, 2020

EXHIBIT INDEX

Exhibit Number   Description

99.1 Quarterly Shareholder Newsletter, dated August 19, 2020 of Franklin Financial Services Corporation
‎

EX-99.1

Exhibit 99.1

Your Way Summer 2020 Franklin Financial Services Corporation F&M TRUST Ahead. Working to ensure our clients and local communities can move forward confidently. IN THIS EDITION 2 Tim Talk Notes from the President 4 Investor News 2nd Quarter Review 5 Maintaining a Legacy Client Spotlight 6 Getting Into the Spirit The Positive Workplace 8 Helpful Ways COVID-19 Support Efforts MEMBER FDIC Equal Housing Lender Page 2 Banking Done Your Way 1.888.264.6116 fmtrust.bank

Tim Talk Shareholder Update Timothy (Tim) G. Henry President & CEO Going Above andBeyond for You Franklin Financial Services Corporationreported consolidated earnings of$3.1 million for the second quarter endedJune 30, 2020, compared to secondquarter 2019 earnings of $4 million. Similar to our first quarter, wecontinue to prepare the bank forthe challenges ahead. The fulleconomic effects of the pandemicmay not be felt until late in thethird quarter and into the fourthquarter, perhaps into 2021. Whileour credit remains sound, weanticipate an elevated potentialfor loan defaults. As such, weadded another $2 million to ourloan loss reserve, which reducedour earnings.At the same time, we know that wemust also serve our shareholdersby focusing on the long-term andpositioning ourselves for futuregrowth. To that end, the companyis taking steps to minimizecompression of its net interestmargins, bolster fee income producinglines of business,conservatively grow our loanportfolio and build capital.We have not lost sight of the factthat financial hardship is anongoing reality for manybusinesses and individuals. Wehave seen firsthand the challengesour customers are facing duringthis crisis, and we recognize thatthey are relying on us now morethan ever. From helping localbusinesses stay afloat throughthe Paycheck Protection Programloans to supporting our customerswith information and financialresources, our role as acommunity bank has neverbeen more important. PAGE 2 SUMMER 2020 Franklin Financial Services Corporation F&M Trust

I am incredibly proud of thiscompany and the efforts of ouremployees who continue to goabove and beyond to serve ourcustomers. Each day, I aminspired by their creativity,compassion and resilience.Finally, shareholders, it goeswithout saying that it is impossibleto know what the future holds,but we will put all of our energyinto looking forward, safely andwith optimism. We believe thatour dedication to our customersand our strong balance sheetwill enable us to continuemanaging through this crisisfrom a position of strength.Thank you for your continuedsupport and trust.Sincerely yours,Timothy G. HenryPresident & CEOFranklin Financial Services Corporationand F&M Trust. AHEAD. TOGETHER. It’s time to get moving again.Moving in one specific direction: ahead.Ahead puts the past behind us.Ahead is where what’s next is.It’s where things get better.Ahead is where we’re moving.We have the resources to helpyou move ahead, too.Let’s go there together. Your Way SUMMER 200 PAGE 3

2nd Quarter Financial HighlightsCOMPLETE EARNING DETAILS AVAILABLE AT FRANKLINFIN.COMDollars in thousands except per-share data / UnauditedSelected Financial Data Jun 30, 2020 Jun 30, 2019Total Assets $ 1,423,111 $ 1,252,141Loans, Net $ 995,583 $ 969,904Deposits $ 1,273,353 $ 1,113,049Book Value per Common Share $ 30.98 $ 28.21Return on Average Assets1 0.73% 1.28%Return on Average Equity1 7.37% 13.12% Market Value Per Share2 Source: Nasdaq.com $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 QUARTER ENDED SEP 30, 2019 $35.55 DEC 31, 2019 $38.69 MAR 31, 2020 $27.45 JUN 30, 200 $25.90 $30.00 SECOND QUARTER HIGH SECOND QUARTER LOW $22.94 COMPLETE EARNING DETAILS AVAILABLE AT FRANKLINFIN.COM Certain statements appearing herein which are nothistorical in nature are forward-looking statementswithin the meaning of the Private Securities LitigationReform Act of 1995. Such forward-looking statementsrefer to a future period or periods, reflecting management’scurrent views as to likely future developments,and use words “may,” “will,” “expect,” “believe,”“estimate,” “anticipate,” or similar terms. Becauseforward-looking statements involve certain risks,uncertainties and other factors over which FranklinFinancial Services Corporation has no direct control,actual results could differ materially from thosecontemplated in such statements. These factorsinclude (but are not limited to) the following: generaleconomic conditions, changes in interest rates,changes in the Corporation’s cost of funds, changes ingovernment monetary policy, changes in governmentregulation and taxation of financial institutions, changesin the rate of inflation, changes in technology, theintensification of competition within the Corporation’smarket area, and other similar factors.We caution readers not to place undue reliance on theseforward-looking statements. They only reflect management’sanalysis as of this date. The Corporation does notrevise or update these forward-looking statements toreflect events or changed circumstances. Please carefullyreview the risk factors described in other documents theCorporation files from time to time with the SEC, includingthe Annual Reports on Form 10-K, Quarterly Reports onForm 10-Q, and any Current Reports on Form 8-K. 1-Year to date annualized. 2-At close. PAGE 4 SUMMER 2020 Franklin Financial Services Corporation F&M TRUST

CLIENT SPOTLIGHT MAINTAINING A LEGACY Midway Bowl CarlisleIt’s something of a local staple for Carlisle residents. ToDaniel Mowery, though, the bowling alley is part of hisfamily’s legacy. His grandfather purchased the bowlingalley in 1957, and it’s been in the family ever since.In 2016, Daniel acquired the family business with assistancefrom Dave Zimmerman and Kathy Bloss at F&M Trust.“I talked to Dave before I bought it, and gave him a businessplan,” Daniel says. “He encouraged me, and helped me getstarted. I’m grateful for the assistance F&M Trust has giventhroughout the process.”Part of the plan included creating new year-round businessopportunities and fully updating the facility. Renovationsincluded restoring the lanes, revamping the bar, creating anoutdoor area, putting in new pool, ping-pong and foosballtables, and installing a golf simulator.F&M Trust supported Daniel at a time when many otherbanks wouldn’t, and for that he says he is grateful.“F&M Trust stood by the fact that it’s a community bank, andit made the deal happen,” he explains. “It’s been a process,and it’s been very enjoyable. It’s been easier to bank withF&M Trust than it has with other banks. And that’s why I’mstill here and will continue to stay with F&M Trust.”.Now that’s Banking Done Your Way. L-R: Dave Zimmerman, Vice President,Senior Relationship Manager, F&M Trust;Daniel Mowery, Owner, Midway Bowl;Kathy Bloss, Assistant Vice President,Commercial Services Portfolio Manager,F&M Trust“ It’s been easierto bank withF&M Trust thanit has with otherbanks.”Daniel MoweryOwnerMidway Bowl Your Way SUMMER 2020 PAGE 5

GETTING IN THE We’ve Got Spirit,Yes We Do!We’ve Got Spirit,How ’Bout You?In the true spirit of F&M Trust, we foundcreative ways to get through quarantineand even have some fun. This quarter,we held our own “Week-End Spirit Days.”Hawaiian shirts, team jerseys, and twinday were just a few of our themes. PAGE 6 SUMMER 2020 Franklin Financial Services Corporation F&M TRUST

SPIRIT TOGETHER Your Way SUMMER 2020 PAGE 7

Helpful Ways F&M Trust’s Relief Efforts Help Local Communities Move Ahead Easier. We know that standing together is the strongest way to move ahead. Here is how we’re giving back and providing support where it’s needed the most. Last quarter, we donated $100,000 to COVID-19 relief efforts in Central Pennsylvania. The following regional organizations received relief funds: Banking Done Your Way ■ 1.888.264.6116 ■ fmtrust .bank ✚ United Way chapters in Franklin County, Carlisle/Cumberland County, Shippensburg and the Greater Harrisburg/Capital Region ✚ First responders, including fire companies and EMS units that support F&M Trust’s 22 community offices across Central Pennsylvania ✚ Fulton County Family Partnership Paycheck Protection Program Update: We are also participating in the Paycheck Protection Program and supporting small businesses through the coronavirus crisis. As of July 28, 2020, there were: 774 LOANS FUNDED $63,735,280 IN TOTAL DISBURSEMENTS MADE ON PPP LOANS 8,360 JOBS SUPPORTED Banking Done Your Way 1.888.264.6116 fmtrust.bank

XML

Document And Entity Information	Aug. 19, 2020
Document And Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Aug. 19, 2020
Entity Registrant Name	FRANKLIN FINANCIAL SERVICES CORPORATION
Entity Incorporation, State or Country Code	PA
Entity File Number	001-38884
Entity Tax Identification Number	25-1440803
Entity Address, Address Line One	20 South Main Street
Entity Address, City or Town	Chambersburg
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17201
City Area Code	717
Local Phone Number	264-6116
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	FRAF
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000723646
Amendment Flag	false