# EDGAR Filing Document

**Accession Number:** 0000723646
**File Stem:** 0000723646-26-000005
**Filing Date:** 2026-1
**Character Count:** 82983
**Document Hash:** 2d47d49ec9567c335d4b5cff133e50c2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000723646-26-000005.hdr.sgml**: 20260120

**ACCESSION NUMBER**: 0000723646-26-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 71

**CONFORMED PERIOD OF REPORT**: 20260120

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260120

**DATE AS OF CHANGE**: 20260120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FRANKLIN FINANCIAL SERVICES CORP /PA/
- **CENTRAL INDEX KEY:** 0000723646
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 251440803
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38884
- **FILM NUMBER:** 26542938

**BUSINESS ADDRESS:**
- **STREET 1:** 20 S MAIN ST
- **STREET 2:** P O BOX 6010
- **CITY:** CHAMBERSBURG
- **STATE:** PA
- **ZIP:** 17201-0819
- **BUSINESS PHONE:** 7172646116

**MAIL ADDRESS:**
- **STREET 1:** 20 SOUTH MAIN ST
- **STREET 2:** PO BOX 6010
- **CITY:** CHAMBERSBURG
- **STATE:** PA
- **ZIP:** 17201-0819

?xml version='1.0' encoding='ASCII'? fraf-20260120x8k

**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: **<u>January 20, 2026</u>**

#####  **<u>FRANKLIN FINANCIAL SERVICES CORPORATION</u>** 
(Exact name of registrant as specified in its new charter)

---

| | | |
|:---|:---|:---|
| **Pennsylvania** | **001-38884** | **25-1440803** |
| (State or other jurisdiction<br>of incorporation) | (Commission <br>File Number) | (IRS Employer <br>Identification No.) |

---

---

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

---

#####  **<u>N/A</u>** 
(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:

---

| | | |
|:---|:---|:---|
| <u>Title of class</u> | <u>Symbol</u> | <u>Name of exchange on which registered</u> |
| 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. ◻

 <u>‎</u> 

------

**Item 5.03 <u>Amendments to Articles of Incorporation or Bylaws: Change in Fiscal Year</u>**

On January 15, 2026, the Board of Directors of Franklin Financial Services Corporation (the "Corporation") amended the bylaws of the Corporation by removing Section 5.9 of the bylaws in its entirety. The removed section had previously imposed term limits on the Chairman of the Board of Directors, restricting individuals from serving more than three consecutive one-year terms in that position, subject to certain waiver provisions.

The foregoing description of the amendment to the Bylaws does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended and Restated Bylaws, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 7.01 <u>Regulations FD Disclosure</u>**

The Corporation is furnishing this presentation which will be presented in whole or in part, from time to time, by executives of the Corporation in one or more meetings with investors and analysts. The presentation is attached as Exhibit 99.1 and is incorporated by reference. It is also available on the Corporation's website at www.franklinfin.com.

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.

**<u>Item 8.01 – Other Events</u>**

On January 15, 2026, the Board of Directors of Franklin Financial Services Corporation declared a $.33 per share regular cash dividend for the first quarter of 2026. This compares to a $.33 per share regular cash dividend for the fourth quarter of 2025 and $.32 per share regular cash dividend for the first quarter of 2025, which represents an increase of 3.1% over prior year. The regular quarterly cash dividend will be paid February 25, 2026 to shareholders of record at the close of business on February 6, 2026.

**Item 9.01 <u>Financial Statements and Exhibits</u>**

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

<u>Number</u> <u>Description</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1 [<u>Investor Presentation, dated January 15, 2026 of Franklin Financial Services</u>](fraf-20260120xex99_1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.2 [<u>Franklin Financial Services Corporation Bylaws amended January 15, 2026</u>](fraf-20260120xex99_2.htm)

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

**<u>SIGNATURES</u>**

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: <u>/s/ Craig W. Best</u>

Craig W. Best

Chief Executive Officer and President

Dated: January 20, 2026

## Exhibit 99.1

**Exhibit 99.1**

![Picture 1](fraf-20260120xex99_1g001.jpg)

Welcome Shareholders January 15, 2026 Franklin Financial Services Corporation F&M TRUST Stock Symbol: FRAF (Nasdaq)

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![Picture 2](fraf-20260120xex99_1g002.jpg)

Welcome & Introductions Warren Elliott, Chairman of the Board F&M TRUST

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![Picture 3](fraf-20260120xex99_1g003.jpg)

Board of Directors President & CEO Dan Fisher Craig Best Warren Elliott Chairman of the Board Vice Chairman of the Board F&M TRUST Franklin Financial Services Corporation

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![Picture 4](fraf-20260120xex99_1g004.jpg)

Board of Directors Kevin Craig Greg Duffey Marty Brown F&M TRUST Franklin Financial Services Corporation

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![Picture 5](fraf-20260120xex99_1g005.jpg)

Board of Directors Stanley Kerlin Don Mowery F&M TRUST Franklin Financial Services Corporation

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![Picture 6](fraf-20260120xex99_1g006.jpg)

Board of Directors Kim Rzomp Greg Snook F&M TRUST Franklin Financial Services Corporation

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![Picture 7](fraf-20260120xex99_1g007.jpg)

Craig Best President & CEO (717) 262-7583 craig.best@f-mtrust.com F&M TRUST Franklin Financial Services Corporation

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![Picture 8](fraf-20260120xex99_1g008.jpg)

Franklin Financial Services Corp. Holding Company for F&M Trust Listed on Nasdaq: FRAF Shares Outstanding: 4,481,159 Share Price: $51.41 Dividend: $1.31 / Share Dividend Yield: 2.50% Market Capitalization: $229.15 Average Daily Trades (Trailing 3 Months): 46,989 Number of Shareholders: 1,473 Top 3 Shareholders: Fourthstone LLC # of Shares: 331,586 Market Value: $17M Vanguard Group LLC # of Shares: 226,079 Market Value: $11.6M BlackRock Inc. # of Shares: 212,199 Market Value: $10.9M As of January 14, 2026 F&M TRUST Franklin Financial Services Corporation

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![Picture 9](fraf-20260120xex99_1g009.jpg)

F&M Trust Assets: $2.297 Billion Deposits: $1.903 Billion Loans: $1.544 Billion Branches: 23 Counties: Frankin, Cumberland, Dauphin, Fulton and Huntingdon Counties in PA, and Washington County, MD Customers: 83,067 Households: 48,497 As of September 30, 2025 F&M TRUST Franklin Financial Services Corporation

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![Picture 10](fraf-20260120xex99_1g010.jpg)

23 Locations Serving South Central PA and Washington County MD Primary Trade Area Expanded Trade Area Offering Wealth Management, Commercial Financing, and Residential Lending Services F&M TRUST Franklin Financial Services Corporation

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![Picture 11](fraf-20260120xex99_1g011.jpg)

Agenda Senior Management Introductions 2025 Successes Company Highlights Market Overview - 2025 Year-End Update F&M TRUST Franklin Financial Services Corporation

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![Picture 12](fraf-20260120xex99_1g012.jpg)

Senior Management Chad Carroll Senior Executive Vice President Chief Operating Officer F&M TRUST Franklin Financial Services Corporation

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![Picture 13](fraf-20260120xex99_1g013.jpg)

Senior Management Craig Best President & CEO Mark Hollar Senior Executive Vice President Chief Financial Officer & Treasurer Lorie Heckman , CERP, CRCM Executive Vice President Chief Risk Officer F&M TRUST Franklin Financial Services Corporation

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![Picture 14](fraf-20260120xex99_1g014.jpg)

Senior Management Steve Butz Executive Vice President Chief Commercial Services Officer Lou Giustini Senior Vice President Chief Retail Services Officer Karen Carmack, D.M. Senior Vice President Chief Human Resources Officer F&M TRUST Franklin Financial Services Corporation

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![Picture 15](fraf-20260120xex99_1g015.jpg)

Senior Management Dave Long Senior Vice President Chief Technology Officer Matt Weaver Senior Vice President Chief Marketing Officer F&M TRUST Franklin Financial Services Corporation

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![Picture 16](fraf-20260120xex99_1g016.jpg)

2025 Successes Chad Carroll, Senior Executive VP & COO F&M TRUST Franklin Financial Services Corporation

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![Picture 17](fraf-20260120xex99_1g017.jpg)

Linglestown Community Office Over $54 million in Deposits As of December 31, 2025 Over $6 million in Consumer Loan Originations As of December 31, 2025 474 New Deposit Accounts Opened As of December 31, 2025 F&M TRUST Franklin Financial Services Corporation

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![Picture 18](fraf-20260120xex99_1g018.jpg)

Wealth Management Surpassed $1.4 billion in Assets Under Management Over $9 million in Revenue for 2025 F&M TRUST Franklin Financial Services Corporation

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![Picture 19](fraf-20260120xex99_1g019.jpg)

Community Support Over 2,200 Hours Volunteered Across 100+ Events Supported Over 280 Organizations Through Sponsorships & Donations Over $460,000 Given in Support of Local Community Organizations F&M TRUST Franklin Financial Services Corporation

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![Picture 20](fraf-20260120xex99_1g020.jpg)

F&M TRUST Franklin Financial Services Corporation

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![Picture 21](fraf-20260120xex99_1g021.jpg)

Company Highlights Mark Hollar, Senior Executive VP & CFO F&M TRUST Franklin Financial Services Corporation

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![Picture 22](fraf-20260120xex99_1g022.jpg)

Annual Dividend Per Share $1.28 2021 $1.28 2022 $1.28 2023 $1.28 2024 $1.31 2025 F&M TRUST Franklin Financial Services Corporation

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![Picture 23](fraf-20260120xex99_1g023.jpg)

FRAF Closing Price High - Low - Year End $34.41 $33.10 $26.06 $36.10 $36.10 $28.64 $35.69 $31.55 $24.36 $33.90 $29.90 $25.55 $56.52 $50.20 $28.08 F&M TRUST Franklin Financial Services Corporation

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![Picture 24](fraf-20260120xex99_1g024.jpg)

FRAF Monthly Trading Volume 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Average Daily Volume Traded: 2024 – 5,361 Shares; 2025 – 25,857 Shares F&M TRUST Franklin Financial Services Corporation

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![Picture 25](fraf-20260120xex99_1g025.jpg)

Amanda Ducey Corporate Secretary (717) 261-3553 amanda.ducey@f-mtrust.com Zoe Clayton Assistant Corporate Secretary (717) 261-3551 zoe.clayton@f-mtrust.com F&M TRUST Franklin Financial Services Corporation

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![Picture 26](fraf-20260120xex99_1g026.jpg)

2025 Year-End Update Warren Hurt Senior Vice President Chief Investment Officer F&M TRUST Franklin Financial Services Corporation

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![Picture 27](fraf-20260120xex99_1g027.jpg)

Economic Review and Outlook Headlines: 2025 - A Challenging Year to Navigate F&M TRUST Franklin Financial Services Corporation

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![Picture 28](fraf-20260120xex99_1g028.jpg)

Economic Review and Outlook Current Conditions: GDP Recovers After Negative Q1 2025 Real Gross Domestic Product Q3 2025 GDP: 4.3% Q1 2025 GDP=-0.3% Source: U.S. Department of Commerce: Bureau of Economic Analysis/FRED F&M TRUST Franklin Financial Services Corporation

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![Picture 29](fraf-20260120xex99_1g029.jpg)

Economic Review and Outlook Current Conditions: Inflation Lower but Still Above Target Consumer Price Index Fed Declares "Inflation Transitory" June 2022 Peak = 9.1% December 2025 = 2.7% Source: U.S. Department of Labor. Bureau of Labor Statistics/FRED F&M TRUST Franklin Financial Services Corporation

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![Picture 30](fraf-20260120xex99_1g030.jpg)

Economic Review and Outlook Labor Conditions: Unemployed Workers Just Passed Open Jobs Economic Review and Outlook 2.0 X Job Openings Unemployed Workers March 2022 - 5.9 Million Job Openings November 2025 - 7.15 Million Unemployed Workers November 2025 - 7.78 Million March 2022 - 12.0 Million Source: U.S. Bureau of Labor Statistics via FRED® F&M TRUST Franklin Financial Services Corporation

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![Picture 31](fraf-20260120xex99_1g031.jpg)

Economic Review and Outlook Labor Conditions: Unemployment Rate "Creeping" Higher Civilian Unemployment Rate December 2025 – 4.4% Source: U.S. Department of Labor: Bureau of Labor Statistics/FRED F&M TRUST Franklin Financial Services Corporation

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![Picture 32](fraf-20260120xex99_1g032.jpg)

2025 Equity Review Stock Market Review F&M TRUST Franklin Financial Services Corporation

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![Picture 33](fraf-20260120xex99_1g033.jpg)

Economic Review and Outlook 2025 Equity Review: Third Consecutive Strong Year GLD = GOLD ETF EFA = MCSI EAFE ETF IXIC = NASDAQ RUT= RUSSELL 2000 SMALL CAP SPY = S&P 500 ETF DIA = DJIA ETF \*Above returns based upon price performance as of Jan. 12, 2026 F&M TRUST Franklin Financial Services Corporation

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![Picture 34](fraf-20260120xex99_1g034.jpg)

Economic Review and Outlook 2025 Equity Markets - Mega Cap Stocks Domination Contribution to S&P Return As of Dec. 31, 2026 Other 517 Companies 47.9% Nvidia 15.5% Alphabet 13.3% Microsoft 7.4% Broadcom 7.2% J.P. Morgan 4.6% Palantir 3.5% Meta 0.4% Contribution to S&P 500 Return Rank Ticker Company Contribution 1 NVDA Nvidia 15.5% 2 GOOG Alphabet 13.5% 3 MSFT Microsoft 7.4% 4 AVGO Broadcom 7.2% 5 JPM J.P. Morgan 4.6% 6 PLTR Palantir 3.5% 7 META Meta 0.4% 8-524 Other 517 Companies 47.9% Total Top Seven (52.1%) Total S&P 500 Return 2025 17.9% Seven companies drove the performance of the S&P 500. F&M TRUST Franklin Financial Services Corporation

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![Picture 35](fraf-20260120xex99_1g035.jpg)

Economic Review and Outlook 2025 Equity Update: Small Cap Stocks Catching Up RUT = RUSSELL 2000 SMALL CAP SPX – S&P 500 INDEX RUT +19.80% SPX +19.41% \*Above returns based upon price performance as of Jan. 12, 2026 F&M TRUST Franklin Financial Services Corporation

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![Picture 36](fraf-20260120xex99_1g036.jpg)

Economic Review and Outlook 2025 Equity Update: FRAF Outperforms Index and Peers! FRAF= FRANKLIN FINANCIAL RUT= RUSSELL 2000 SMALL CAP ABQI = OMX ABA Community Bank Index FRAF +80.06% RUT +19.83% ABQI +8.57% \*Above returns based upon price performance as of Jan. 12, 2026 F&M TRUST Franklin Financial Services Corporation

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![Picture 37](fraf-20260120xex99_1g037.jpg)

2025 Fixed Income Review Interest Rate Analysis F&M TRUST Franklin Financial Services Corporation

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![Picture 38](fraf-20260120xex99_1g038.jpg)

Economic Review and Outlook Current Conditions: Fed Policy Easing After Record Tightening 2022 - 24 was fastest and largest tightening cycle since 1980 Fed overnight rate cuts not moving longer term rates Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis Federal Funds Target Range - Lower Limit 10 year Treasury Yield Fed Fund Rate F&M TRUST Franklin Financial Services Corporation

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![Picture 39](fraf-20260120xex99_1g039.jpg)

Economic Review and Outlook Current Conditions: Fed Policy Easing After Record Tightening Fed policy direction pointing to 0.25 - 0.5% of further cuts in 2026 Powell term expiration and Fed independence issues return The December 2025 Dot Plot Expected fed funds rate at year-end Median Range F&M TRUST Franklin Financial Services Corporation

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![Picture 40](fraf-20260120xex99_1g040.jpg)

Economic Review and Outlook 2026 Economic Outlook: 2026 Generally Bullish The Bull Case: Data after the government shutdown is coming in better than expected for key economic measures (Unemployment, Inflation, GDP, etc.) Tariff policy has been less punitive than originally anticipated and tariff revenue is reducing the projected deficit The passage of the "Big Beautiful Bill" gives tax and economic certainty that should be a tailwind for stocks and commercial lending Earnings remain strong, latest information shows 82% of S&P 500 companies have beat earnings estimates F&M TRUST Franklin Financial Services Corporation

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![Picture 41](fraf-20260120xex99_1g041.jpg)

Economic Review and Outlook 2026 Economic Outlook: Risk Factors to Watch The Bear Concerns: Strong stock performance remains concentrated in a few very highly valued AI stocks with very aggressive growth targets Trade policies and Fed independence currently face legal challenges Deficit spending and national debt continue to impact long-term interest rates F&M TRUST Franklin Financial Services Corporation

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![Picture 42](fraf-20260120xex99_1g042.jpg)

Questions Craig Best, President & CEO F&M TRUST Franklin Financial Services Corporation

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![Picture 43](fraf-20260120xex99_1g043.jpg)

Trivia F&M TRUST Franklin Financial Services Corporation

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![Picture 44](fraf-20260120xex99_1g044.jpg)

What former F&M Trust President led a team from Chambersburg on the Nationally Televised TV Show "Almost Anything Goes"? F&M TRUST Franklin Financial Services Corporation

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![Picture 45](fraf-20260120xex99_1g045.jpg)

Bob Zullinger

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![Picture 46](fraf-20260120xex99_1g046.jpg)

In 1990, how many banks were headquartered in Franklin County? F&M TRUST Franklin Financial Services Corporation

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![Picture 47](fraf-20260120xex99_1g047.jpg)

Nine F&M TRUST Franklin Financial Services Corporation

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![Picture 48](fraf-20260120xex99_1g048.jpg)

How many banks are headquartered in Franklin County today? F&M TRUST Franklin Financial Services Corporation

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![Picture 49](fraf-20260120xex99_1g049.jpg)

#1 F&M TRUST Franklin Financial Services Corporation

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![Picture 50](fraf-20260120xex99_1g050.jpg)

What anniversary year is it for F&M Trust this year? A. 100 B. 120 C. 75 F&M TRUST Franklin Financial Services Corporation

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![Picture 51](fraf-20260120xex99_1g051.jpg)

February 5, 1906 – 120 Years F&M TRUST Franklin Financial Services Corporation

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![Picture 52](fraf-20260120xex99_1g052.jpg)

What year was Franklin Financial Services Corporation listed on Nasdaq? F&M TRUST Franklin Financial Services Corporation

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![Picture 53](fraf-20260120xex99_1g053.jpg)

2019 F&M TRUST Franklin Financial Services Corporation

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![Picture 54](fraf-20260120xex99_1g054.jpg)

Closing Comments Warren Elliott, Chairman of the Board F&M TRUST Franklin Financial Services Corporation

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![Picture 55](fraf-20260120xex99_1g055.jpg)

Franklin Financial Services Corporation Annual Meeting Tuesday, April 28, 2026 Additional Details to Follow F&M TRUST Franklin Financial Services Corporation

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![Picture 56](fraf-20260120xex99_1g056.jpg)

Stock Symbol: FRAF (Nasdaq) franklinfin.com fmtrust.bank F&M TRUST Franklin Financial Services Corporation

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![Picture 57](fraf-20260120xex99_1g057.jpg)

Thank You F&M TRUST

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## Exhibit 99.2

**FRANKLIN FINANCIAL SERVICES CORPORATION**

**BYLAWS**

Adopted June 8, 1983

Amended May 22, 1986

Amended February 26, 1987

Effective April 28, 1987

Amended July 26, 1990

Amended December 2, 1999

Amended April 23, 2002

Amended December 16, 2004

Amended March 9, 2017

Amended July 8, 2021

Amended August 25, 2022

Amended December 12, 2024

Amended January 15, 2026

i

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [ARTICLE I – OFFICE](#a1) | 2.0 |
| [Section 1.1 Registered Office.](#a1s1) | 2.0 |
| [Section 1.2 Other Offices.](#a1s2) | 2.0 |
| [ARTICLE II - SHAREHOLDERS' MEETINGS](#a2) | 2.0 |
| [Section 2.1 Place of Shareholders' Meetings.](#a2s1) | 2.0 |
| [Section 2.2 Annual Meeting.](#a2s2) | 2.0 |
| [Section 2.3 Special Meetings.](#a2s3) | 2.0 |
| [Section 2.4 Business at Meetings of Shareholders.](#a2s4) | 3.0 |
| [Section 2.5 Notices of Shareholders' Meetings.](#a2s5) | 4.0 |
| [Section 2.6 Quorum of and Action by Shareholders.](#a2s6) | 4.0 |
| [Section 2.7 Voting.](#a2s7) | 4.0 |
| [Section 2.8 Conduct of Meeting.](#a2s8) | 5.0 |
| [ARTICLE III - BOARD OF DIRECTORS](#a3) | 5.0 |
| [Section 3.1 Number of Directors.](#a3s1) | 5.0 |
| [Section 3.2 Qualifying Shares.](#a3s2) | 6.0 |
| [Section 3.3 Classification of Directors.](#a3s3) | 6.0 |
| [Section 3.4 Vacancies.](#a3s4) | 6.0 |
| [Section 3.5 Nomination of Directors.](#a3s5) | 6.0 |
| [Section 3.6 Place of Meeting.](#a3s6) | 7.0 |
| [Section 3.7 Regular Meetings.](#a3s7) | 7.0 |
| [Section 3.8 Special Meetings.](#a3s8) | 8.0 |
| [Section 3.9 Participation in Meetings by Conference Telephone.](#a3s9) | 8.0 |
| [Section 3.10 Notices of Meeting of Board of Directors.](#a3s10) | 8.0 |
| [Section 3.11 Quorum.](#a3s11) | 8.0 |
| [Section 3.12 Informal Action by the Board of Directors.](#a3s12) | 8.0 |
| [Section 3.13 Powers.](#a3s13) | 8.0 |
| [Section 3.14 Removal of Directors by Shareholders.](#a3s14) | 9.0 |
| [Section 3.15 Compulsory Retirement.](#a3s15) | 9.0 |
| [Section 3.16 Minutes.](#a3s16) | 9.0 |
| [Section 3.17 Personal Liability of Directors.](#a3s17) | 10.0 |
| [ARTICLE IV – COMMITTEES](#a4) | 10.0 |
| [Section 4.1 Appointment of Committees.](#a4s1) | 10.0 |
| [Section 4.2 Delegation of Board Powers to Committees.](#a4s2) | 10.0 |
| [Section 4.3 Accounting Firm.](#a4s3) | 10.0 |
| [ARTICLE V - OFFICERS](#a5) | 11.0 |
| [Section 5.1 Election and Office.](#a5s1) | 11.0 |
| [Section 5.2 Term.](#a5s2) | 11.0 |
| [Section 5.3 Powers and Duties of the President.](#a5s3) | 11.0 |

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i

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| | |
|:---|:---|
| [Section 5.4 Powers and Duties of the Secretary.](#a5s4) | 11.0 |
| [Section 5.5 Powers and Duties of the Treasurer or Controller.](#a5s5) | 11.0 |
| [Section 5.6 Powers and Duties of the Chairman of the Board of Directors.](#a5s6) | 12.0 |
| [Section 5.7 Delegation of Office.](#a5s7) | 12.0 |
| [Section 5.8 Vacancies.](#a5s8) | 12.0 |
| [ARTICLE VI - SURETY BONDS—INSURANCE](#a6) | 12.0 |
| [Section 6.1 Surety Bonds.](#a6s1) | 12.0 |
| [Section 6.2 Insurance.](#a6s2) | 12.0 |
| [ARTICLE VII - CORPORATE SEAL](#a7) | 12.0 |
| [Section 7.1 Corporate Seal.](#a7s2) | 12.0 |
| [ARTICLE VIII ARTICLE VIII - CONFIDENTIAL INFORMATION](#a8) | 12.0 |
| [Section 8.1 Nondisclosure Obligation.](#a8s1) | 12.0 |
| [ARTICLE IX - DIVIDENDS](#a9) | 12.0 |
| [Section 9.1 Cash Dividends.](#a9s1) | 12.0 |
| [Section 9.2 Stock Splits and Stock Dividends.](#a9s2) | 13.0 |
| [ARTICLE X - SHARE CERTIFICATES](#a10) | 13.0 |
| [Section 10.1 Share Certificates.](#a10s1) | 13.0 |
| [Section 10.2 Transfer of Shares.](#a10s2) | 13.0 |
| [Section 10.3 Determination of Shareholders of Record and Closing Transfer Books.](#a10s3) | 13.0 |
| [Section 10.4 Lost Certificates.](#a10s4) | 13.0 |
| [ARTICLE XI – INDEMNIFICATION](#a11) | 14.0 |
| [Section 11.1 General Rule.](#a11s1) | 14.0 |
| [Section 11.2 Advance Payment of Expenses.](#a11s2) | 14.0 |
| [Section 11.3 No Duplication of Payments.](#a11s3) | 14.0 |
| [Section 11.4 Insurance.](#a11s4) | 14.0 |
| [Section 11.5 Indemnification Agreements.](#a11s5) | 15.0 |
| [Section 11.6 Non-Exclusivity.](#a11s6) | 15.0 |
| [Section 11.7 Survival of Rights.](#a11s7) | 15.0 |
| [Section 11.8 Modification or Repeal.](#a11s8) | 15.0 |
| [Section 11.9 Effective Date.](#a11s9) | 15.0 |
| [ARTICLE XII - AMENDMENT OF THE BYLAWS](#a12) | 15.0 |
| [Section 12.1 Amendment.](#a12s1) | 15.0 |
| [ARTICLE XIII - INTERPRETATION OF BYLAWS](#a13) | 16.0 |
| [Section 13.1 Interpretation.](#a13s1) | 16.0 |

---

ii

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---

| | |
|:---|:---|
| [ARTICLE XIV - FISCAL YEAR](#a14) | 16.0 |
| [Section 14.1 Fiscal Year.](#a14s1) | 16.0 |
| [ARTICLE XV - DISASTER](#a15) | 16.0 |
| [Section 15.1 General.](#a15s1) | 16.0 |
| [Section 15.2 Chief Executive Officer.](#a15s2) | 16.0 |
| [Section 15.3 Board of Directors.](#a15s3) | 16.0 |
| [Section 15.4 Termination of State of Emergency.](#a15s4) | 16.0 |
| [Section 15.5 Notice to Regulators.](#a15s5) | 16.0 |
| [ARTICLE XVI - MISCELLANEOUS](#a16) | 17.0 |
| [Section 16.1 1990 Antitakeover Law.](#a16s1) | 17.0 |

---

iii

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**FRANKLIN FINANCIAL SERVICES CORPORATION**

**BYLAWS**

Adopted June 8, 1983

Amended May 22, 1986

Amended February 26, 1987

Effective April 28, 1987

Amended July 26, 1990

Amended December 2, 1999

Amended December 16, 2004

Amended March 9, 2017

Amended July 8, 2021

Amended August 25, 2022

Amended December 12, 2024

Amended January 15, 2026

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ARTICLE I – OFFICE

Section 1.1<u>Registered O</u><u>ffice</u>. The registered office of the Corporation shall be located within the Commonwealth of Pennsylvania, at 1500 Nitterhouse Drive, Chambersburg, Pennsylvania.

Section 1.2<u>Other Office</u><u>s.</u> The Corporation may also have offices at such other places within or without the Commonwealth of Pennsylvania, as the Board of Directors may, from time to time, determine.

ARTICLE II - SHAREHOLDERS' MEETINGS

Section 2.1<u>Place of Shareholders' Meetin</u><u>gs.</u> Meetings of shareholders shall be held at such places within or without the Commonwealth of Pennsylvania as may be fixed by the Board of Directors, from time to time.

Section 2.2<u>Annual Meetin</u><u>g.</u> A meeting of the shareholders of the Corporation shall be held in each calendar year, on such date and at such time as the Board of Directors may determine, or if the Board of Directors fails to set a date and time, on the last Tuesday in April at 10 o'clock a.m., if not a legal holiday, and if such day is a legal holiday, then such meeting shall be held on the next business day. At such annual meeting, there shall be held an election of Directors.

Section 2.3<u>Special Meetin</u><u>gs.</u> Special meetings of the shareholders may be called at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>Chairman or President</u>. By the Chairman of the Board or the President of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Board of Directors</u>. By a majority of the Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)<u>Shareholders</u>. By shareholders entitled to cast at least one third of the votes which all shareholders are entitled to cast at the meeting.

Upon the written request of any person or persons entitled to call a special meeting, which request shall set forth the purpose for which the meeting is desired, it shall be the duty of the Secretary to fix the date of such meeting to be held at such time, not less than ten (10) nor more than sixty (60) days after the receipt of such request, as the Secretary may determine, and to give due notice thereof. If the Secretary shall neglect or refuse to fix the date of such meeting and to give notice thereof within ten (10) days after receipt of such request, the person or persons calling the meeting may do so.

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Section 2.4<u>Business at Meetings of Sharehold</u><u>ers.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>General Rule</u>. Except as otherwise provided by law or in these Bylaws, or except as permitted by the chairman of the meeting in the exercise of such officer's sole discretion in any specific instance, the business which shall be voted upon or discussed at any annual or special meeting of the shareholders shall be limited to the following: (i) matters specified in the written notice of the meeting (or any supplement thereto) given by the Corporation, (ii) matters brought before the meeting at the direction of the Board of Directors, (iii) matters brought before the meeting by the chairman of the meeting, unless a majority of the directors then in office object to such business being conducted at such meeting, or (iv) in the case of an annual meeting of shareholders, matters specified in a written notice given to the Corporation in accordance with all of the requirements set forth below by or on behalf of a shareholder who was a shareholder of record on the record date for such meeting and who continues to be entitled to vote at such meeting (a "Shareholder Notice").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Shareholder Notice</u>. A Shareholder Notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation addressed to the attention of the President: (i) in the case of an annual meeting that is called for a date that is within 30 days before or after the anniversary date of the immediately preceding annual meeting of shareholders, not less than 120 days nor more than 150 days prior to the anniversary date of the proxy statement prepared by the Corporation in connection with the immediately preceding annual meeting of shareholders; provided, however, that a proposal submitted by shareholder for inclusion in the Corporation's proxy statement for an annual meeting which is appropriate for inclusion therein and otherwise complies with Securities Exchange Act of 1934 Rule 14a-8 (including all requirements as to timeliness), or any successor to such Rule, shall be deemed to have also been submitted timely pursuant to these Bylaws, and (ii) in the case of an annual meeting that is called for a date that is not within 30 days before or after the anniversary date of the immediately preceding annual meeting, not later than the close of business on the fifth day following the earlier of the day on which notice of the date of the meeting was mailed or public disclosure of the meeting date was made. Each such Shareholder Notice must set forth: (A) the name and address of the shareholder who intends to bring the business before the annual meeting (the "Proposing Shareholder"), (B) the name and address of the beneficial owner, if different than the Proposing Shareholder, of any of the shares owned of record by the Proposing Shareholder (the "Beneficial Owner"), (C) the number of shares of each class and series of shares of the Corporation which are owned of record and beneficially by the Proposing Shareholder and the number which are owned beneficially by any Beneficial Owner, (D) any interest (other than an interest solely as a shareholder) which the Proposing Shareholder or a Beneficial Owner has in the business being proposed by the Proposing Shareholder, (E) a description of all arrangements and understandings between the Proposing Shareholder and any Beneficial Owner and any other person or persons (naming such person or persons) pursuant to which the proposal in the Shareholder Notice is being made, (F) a description of the business which the Proposing Shareholder seeks to bring before the annual meeting, the reason for doing so and, if a specific action is to be proposed, the text of the resolution or resolutions which the Proposing Shareholder proposes that the Corporation adopt, and (G) a representation that the Proposing Shareholder is at the time of giving the Shareholder Notice, was or will be on the record date for the meeting, and will be on the meeting date, a holder of record of shares of the

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Corporation entitled to vote at such meeting, and intends to appear in person or by proxy at the meeting to bring the business specified in the Shareholder Notice before the meeting. The chairman of the meeting may, in his sole discretion, refuse to acknowledge or entertain any business proposed by a shareholder if he determines that such proposal was not made in compliance with the foregoing procedure.

Section 2.5<u>Notices of Shareholders' Meetin</u><u>gs.</u> Written notice stating the date, place and hour and, if required by law or these Bylaws, the purpose, of any meeting of the shareholders, shall be given to each shareholder of record entitled to vote at the meeting at least twenty (20) days prior to the day named for the meeting, unless otherwise required by law, by courier service (charges prepaid), by first class, express or bulk mail (postage prepaid), or by facsimile transmission, e mail or other electronic communication addressed to the shareholder at the shareholder's postal address, facsimile number, e mail address or other electronic communication address as it appears on the books of the Corporation or as supplied by such shareholder to the Corporation for the purpose of notice. Such notices may be given at the discretion of, or in the name of, the Board of Directors, President, Vice President, Secretary or Assistant Secretary. When a meeting is adjourned, it shall not be necessary to give any notice of the adjourned meeting or of the business to be transacted at an adjourned meeting, other than by announcement at the meeting at which such adjournment is taken. Notice shall be deemed to be given when it is: (i) deposited in the United States mail or with a courier service, or (ii) sent by facsimile transmission, e mail or other electronic communication.

Section 2.6<u>Quorum of and Action by Sharehold</u><u>ers.</u> Unless otherwise provided in the Articles of Incorporation, or in a By-law adopted by the Board of Directors at its organization meeting following the filing of the Articles of Incorporation or by the shareholders, the presence, in person or by proxy, of shareholders entitled to cast at least a majority of the votes which all shareholders are entitled to cast on the particular matters shall constitute a quorum for the purpose of considering such matter, and, unless otherwise specifically provided by law, the acts, at a duly organized meeting, of the shareholders present, in person or by proxy, entitled to cast at least a majority of the votes which all shareholders present are entitled to cast, shall be the acts of the shareholders. The shareholders present at a duly organized meeting can continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. If a meeting cannot be organized because a quorum has not attended, those present may, except as otherwise provided by law, adjourn the meeting to such time and place as they may determine, but in the case of any meeting called for the election of Directors, those shareholders who attend the second of such adjourned meetings, although less than a quorum as fixed in this Section, or in the Articles of Incorporation, shall nevertheless constitute a quorum for the purpose of electing Directors.

Section 2.7<u>Votin</u><u>g.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>Voting</u>. At least five (5) days before any meeting of shareholders, the officer or agent having charge of the transfer books of the Corporation shall make a complete list of the shareholders entitled to vote at such meeting, arranged in alphabetical order with the address of and the number of shares held by each, which list shall be kept on file at the registered office of the Corporation and shall be subject to inspection by any shareholder at any time during

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usual business hours. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to the inspection of any shareholder during the whole time of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Proxies</u>. At all shareholders' meetings, shareholders entitled to vote may attend and vote either in person or by proxy. Every proxy shall be executed or authenticated by the shareholder, or by his duly authorized attorney in fact, and shall be filed with or transmitted to the Secretary of the Corporation or the Corporation's designated agent. A telegram, telex, cablegram, datagram, e mail, Internet communication or other means of electronic transmission from a shareholder or attorney-in-fact, or a photographic, facsimile or similar reproduction of a writing executed by a shareholder or attorney-in-fact: (i) may, at the discretion of the Secretary, be treated as properly executed or authenticated for purposes of this subsection, and (ii) shall be so treated if it sets forth or utilizes a confidential and unique identification number or other mark furnished by the Corporation to the shareholder for the purposes of a particular meeting or transaction. A proxy, unless coupled with an interest, shall be revocable at will, notwithstanding any other agreement or any provision in the proxy to the contrary, but the revocation of a proxy shall not be effective until the notice thereof has been given to the Secretary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)<u>Manner of Voting</u>. All elections of Directors shall be by ballot. All other actions by resolution or motion need not be by ballot except upon demand by a majority of the shareholders entitled to vote in person or by proxy before the voting begins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)<u>Required Vote</u>. A majority of the votes cast shall decide every question or matter submitted to the shareholders at any meeting unless otherwise provided by law, these Bylaws, or the Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)<u>No Cumulative Voting</u>. Cumulative voting shall not be permitted. Each shareholder shall be entitled to one (1) vote for each share standing in his name and may vote, either in person or by proxy, on all matters and elections, including election of Directors.

Section 2.8<u>Conduct of Meet</u><u>ing.</u> The Chairman of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts as are necessary or desirable for the proper conduct of the meeting, including, without limitation, the establishment of procedures for the maintenance of order, safety, limitations on the time allocated to questions or comments on the affairs of the Corporation after the time prescribed for the commencement thereof.

ARTICLE III - BOARD OF DIRECTORS

Section 3.1<u>Number of Direc</u><u>tors.</u> The Board of Directors shall consist of not less than five (5) nor more than twenty-five (25) directors. The number of directors to be elected, subject to the foregoing limits, shall be determined from time to time by the Board of Directors.

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Section 3.2<u>Qualifying Shar</u><u>es.</u> Every Director must be a shareholder of the Corporation, a citizen of the United States, and shall own, in his own right or jointly with a spouse, at least 100 shares to qualify as a Director.

Section 3.3<u>Classification of</u> <u>Directors.</u> The directors shall be divided into three (3) classes, as nearly equal in number as possible, known as Class A, consisting of not more than eight (8) directors, Class B, consisting of not more than eight (8) directors, and Class C, consisting of not more than nine (9) directors. The initial directors of Class A shall serve until the third annual meeting of shareholders. At the third annual meeting of the shareholders, the directors of Class A shall be elected for a term of three (3) years and, after expiration of such term, shall thereafter be elected every three (3) years for three (3) year terms. The initial directors of Class B shall serve until the second annual meeting of shareholders. At the second annual meeting of the shareholders, the directors of Class B shall be elected for a term of three (3) years and, after the expiration of such term, shall thereafter be elected every three (3) years for three (3) year terms. The initial directors of Class C shall serve until the first annual meeting of shareholders. At the first annual meeting of the shareholders, the directors of Class C shall be elected for a term of three (3) years and, after the expiration of such term, shall thereafter be elected every three (3) years for three (3) year terms. Each director shall serve until his successor shall have been elected and shall qualify, even though his term of office as herein provided has otherwise expired, except in the event of his earlier resignation, removal or disqualification.

Section 3.4<u>Vacancie</u><u>s.</u> Vacancies in the Board of Directors, including vacancies resulting from an increase in the number of directors, may be filled by the remaining members of the Board even though less than a quorum. Any director elected to fill a vacancy in the Board of Directors shall become a member of the same class of directors in which the vacancy existed; but if the vacancy is due to an increase in the number of directors, a majority of the members of the Board of Directors shall designate such directorship as belonging to Class A, Class B or Class C so as to maintain the three (3) classes of directors as nearly equal in number as possible. Each director so elected shall be a director until his successor is elected by the shareholders.

Section 3.5<u>Nomination of Directo</u><u>rs.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>General</u>. Notwithstanding the provisions of Section 2.4 of these Bylaws (relating to business at meetings of shareholders), nominations of candidates for election to the Board of Directors may be made by the Board of Directors, by a committee appointed by the Board of Directors with authority to do so, or by any shareholder of record entitled to vote in the election of directors who is a shareholder on the record date of the meeting and also on the date of the meeting at which Directors are to be elected; provided, however, that with respect to a nomination made by a shareholder, such shareholder must provide timely written notice to the President of the Corporation (a "Nomination Notice") in accordance with all of the requirements set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Timing of Nomination Notice</u>. To be timely, a Nomination Notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation

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addressed to the attention of the President: (i) in the case of an annual meeting that is called for a date that is within 30 days before or after the anniversary date of the immediately preceding annual meeting of shareholders, not less than 90 days nor more than 120 days prior to the anniversary date of the immediately preceding annual meeting, or (ii) in the case of an annual meeting that is called for a date that is not within 30 days before or after the anniversary date of the immediately preceding annual meeting or in the case of a special meeting of shareholders called for the purpose of electing directors, not later than the close of business on the fifth day following the earlier of the day on which notice of the date of the meeting was mailed or public disclosure of the meeting date was made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)<u>Contents of Nomination Notice</u>. A Nomination Notice must set forth: (i) the name and address of the shareholder who intends to make the nomination (the "Nominating Shareholder"), (ii) the name and address of the beneficial owner, if different than the Nominating Shareholder, of any of the shares owned of record by the Nominating Shareholder (the "Beneficial Holder"), (iii) the number of shares of each class and series of shares of the Corporation which are owned of record and beneficially by the Nominating Shareholder and the number which are owned beneficially by any Beneficial Holder, (iv) a description of all arrangements and understandings between the Nominating Shareholder and any Beneficial Holder and any other person or persons (naming such person or persons) pursuant to which the nomination is being made, (v) the name and address of the person or persons to be nominated, (vi) a representation that the Nominating Shareholder is at the time of giving of the Nomination Notice, was or will be on the record date for the meeting, and will be on the meeting date, a holder of record of shares of the Corporation entitled to vote at such meeting, and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the Nomination Notice, (vii) such other information regarding each nominee proposed by the Nominating Shareholder as would have been required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission had the nominee been nominated, or intended to be nominated, by the Board of Directors, and (viii) the written consent of each nominee to serve as a director of the Corporation if elected. The chairman of the meeting shall determine in his sole discretion whether nominations have been made in accordance with the requirements of this Section and, if he determines that a nomination is defective, the nomination and any votes cast for the nominee shall be disregarded.

Section 3.6<u>Place of Meetin</u><u>g.</u> Meetings of the Board of Directors may be held at such place within the Commonwealth of Pennsylvania or elsewhere as a majority of the Directors may from time to time appoint or as may be designated in the notice calling the meeting.

Section 3.7<u>Regular Meeting</u><u>s.</u> A regular meeting of the Board of Directors shall be held annually, immediately following the annual meeting of shareholders at the place where such meeting of the shareholders is held or at such other place, date and hour as a majority of the newly elected Directors may designate. At such meeting the Board of Directors shall elect officers of the Corporation. In addition to such regular meeting, the Board of Directors shall have the power to fix by resolution the place, date and hour of other regular meetings of the Board.

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Section 3.8<u>Special Meeti</u><u>ngs.</u> Special meetings of the Board of Directors shall be held whenever ordered by the Chairman of the Board, President, by a majority of the executive committee, if any, or by any three (3) Directors in office.

Section 3.9<u>Participation in Meetings by Conference Telep</u><u>hone.</u> Any director may participate in any meeting of the Board of Directors or of any committee (provided he is otherwise entitled to participate), be counted for the purpose of determining a quorum thereof and exercise all rights and privileges to which he might be entitled were he personally in attendance, including the right to vote, by means of conference telephone or other similar communications equipment by means of which all persons in the meeting can hear each other.

Section 3.10<u>Notices of Meeting of Board of</u> <u>Directors.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>Regular Meetings</u>. No notice shall be required to be given of any regular meeting, unless the same is held at other than the time or place for holding such meetings as fixed in accordance with Section 3.7 of these Bylaws, in which event one (1) day's notice shall be given of the time and place of such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Special Meetings</u>. Written or verbal notice stating the date, place and hour of any special meeting of the Board of Directors shall be given at least one (1) day prior to the date named for the meeting.

Section 3.11<u>Quorum</u><u>.</u> A majority of the Directors in office shall be necessary to constitute a quorum for the transaction of business, and the acts of a majority of the Directors present at a meeting at which a quorum is present shall be considered as the acts of the Board of Directors. If there is no quorum present at a duly convened meeting of the Board of Directors, the majority of those present may adjourn the meeting from time to time and place to place.

Section 3.12<u>Informal Action by the Board of Di</u><u>rectors.</u> Any action which may be taken at a meeting of the Directors, or of the members of any committee of the Board of Directors, may be taken without a meeting if a consent or consents in writing, setting forth the action so taken, shall be signed by all of the Directors, or members of the committee, as the case may be, and shall be filed with the Secretary of the Corporation. Insertion in the minute book of the Corporation shall be deemed filing with the Secretary regardless of whether the Secretary or some other authorized person has actual possession of the minute book. Written consents by all of the Directors or the members of any committee of the Board of Directors executed pursuant to this Section 3.12 may be executed in any number of counterparts and shall be deemed effective as of the date set forth therein.

Section 3.13<u>Pow</u><u>ers.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>General Powers</u>. The Board of Directors shall have all the power and authority granted by law to the Board, including all powers necessary or appropriate to the management of the business and affairs of the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Specific Powers</u>. Without limiting the general powers conferred by the last preceding clause and the powers conferred by the Articles and these Bylaws of the Corporation, it is hereby expressly declared that the Board of Directors shall have the following powers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)To confer upon any officer or officers of the Corporation the power to choose, remove or suspend assistant officers, agents or servants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)To appoint any person, firm or corporation to accept and hold in trust for the Corporation any property belonging to the Corporation or in which it is interested, and to authorize any such person, firm or corporation to execute any documents and perform any duties that may be requisite in relation to any such trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)To appoint a person or persons to vote shares of another corporation held and owned by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) To appoint three (3) judges of election who shall determine the number of shares outstanding, the voting power of each, the shares represented at annual or special meetings, the existence of a quorum, the authenticity, validity and effect of proxies, receive votes or ballots, hear and determine all challenges and questions in any way arising in connection with the right to vote. The judges shall tabulate all votes, determine the result and file a written report at the meeting. The decision of the majority of all judges shall be effective in all respects as to the decisions or certificates of all the judges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)To fix the place, time and purpose of meetings of shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi)To fix the compensation of Directors and officers for their services.

Section 3.14<u>Removal of Directors by Sharehol</u><u>ders.</u> The entire Board of Directors or a class of the Board of Directors, where the Board of Directors is classified with respect to the power to elect Directors, or any individual Director may be removed from office without assigning any cause by the vote of shareholders entitled to cast at least two-thirds of the votes which all shareholders would be entitled to cast at any annual election of Directors or such class of Directors. In case the Board of Directors or such class of the Board of Directors or any one or more Directors is so removed, new Directors may be elected at the same time.

Section 3.15<u>Compulsory Retirem</u><u>ent.</u> Every Director of the Corporation shall automatically retire one year after reaching age 75.

Section 3.16<u>Minute</u><u>s.</u> The Secretary or Assistant Secretary shall keep complete records of the proceedings of the Board of Directors in a minute book kept for that purpose alone.

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Section 3.17<u>Personal Liability of Direct</u><u>ors.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>General Rule</u>. A director of the Corporation shall not be personally liable for monetary damages for any action taken or any failure to take any action, except to the extent that exemption from liability for monetary damages is not permitted under the laws of the Commonwealth of Pennsylvania as now or hereafter in effect. The provisions of this Subsection (a) are intended to exempt the directors of the Corporation from liability for monetary damages to the maximum extent permitted under the Pennsylvania Directors' Liability Act (42 Pa. C.S. § 8361 et seq.) or under any other law now or hereafter in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Specific Rule Under Directors' Liability Act</u>. Without limitation of Subsection (a) above, a director of the Corporation shall not be personally liable for monetary damages for any action taken or any failure to take any action, unless: (i) the director has breached or failed to perform the duties of his office under Section 8363 of the Directors' Liability Act, and (ii) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness. The provisions of the preceding sentence shall not exempt a director from: (i) the responsibility or liability of a director pursuant to any criminal statute; or (ii) the liability of a director for the payment of taxes pursuant to local, state or federal law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)<u>Modification or Repeal</u>. The provisions of this Section 3.17 may be modified or repealed by the Board of Directors in accordance with the procedures for amending these Bylaws; provided, however, that any such modification or repeal shall not have any effect upon the liability of a director relating to any action, any failure to take any action, or events which occurred prior to the effective date of such modification or repeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)<u>Effective Date</u>. The provisions of this Section 3.17 shall become effective immediately following its ratification by the shareholders of the Corporation at a meeting of shareholders duly convened after notice to the shareholders of such purpose.

ARTICLE IV – COMMITTEES

Section 4.1<u>Appointment of Commit</u><u>tees.</u> For the proper conduct of the business of the Corporation, the Chairman shall appoint such committees from time to time as the Chairman deems appropriate, subject to the approval of the majority of the entire Board.

Section 4.2<u>Delegation of Board Pow</u><u>ers to Committees.</u> The majority of the entire Board may delegate certain of its powers to one or more committees from time to time. These powers may be exercised to the extent permitted by the Board, but any committee of three (3) or more members may, pursuant to these Bylaws, convene a special meeting of the entire Board at any time should that committee determine a matter presented is of sufficient importance to do so.

Section 4.3<u>Accounting Firm.</u>An Audit Committee of the Board of Directors, with the approval of a majority of the entire Board, shall select an independent external accounting firm to perform audit services.

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ARTICLE V - OFFICERS

Section 5.1<u>Election and Office.</u> The Corporation shall have a President, a Secretary and a Treasurer who shall be elected by the Board of Directors. The Board of Directors may elect as additional officers a Chairman of the Board of Directors, one (1) or more Vice-Presidents, and one (1) or more other officers or assistant officers. Any number of offices may be held by the same person.

Section 5.2<u>Term.</u> The officers and assistant officers shall each serve at the pleasure of the Board of Directors and until the annual meeting of the Board of Directors following the next annual meeting of shareholders unless removed from office by the Board of Directors during their respective tenures.

Section 5.3<u>Powers and Duties of the P</u><u>resident.</u> Unless otherwise determined by the Board of Directors, the President shall have the usual duties of an executive officer with general supervision over and direction of the affairs of the Corporation. In the exercise of these duties and subject to the limitations of the laws of the Commonwealth of Pennsylvania, these Bylaws, and the actions of the Board of Directors, he may appoint, suspend, and discharge employees, agents and assistant officers, recommend to the Board of Directors compensation of all officers and assistant officers, and, in the absence of the Chairman of the Board of Directors, he shall preside at all meetings of the shareholders and at all meetings of the Board of Directors. He shall also do and perform such other duties as from time to time may be assigned to him by the Board of Directors.

Upon authorization of the Board of Directors, the President shall have full power and authority on behalf of the Corporation to attend and to act and to vote at any meeting of the shareholders of any corporation in which the Corporation may hold stock, and, at any such meeting, shall possess and may exercise any and all the rights and powers incident to the ownership of such stock and which, as the owner thereof, the Corporation might have possessed and exercised.

Section 5.4<u>Powers and Duties of the</u> <u>Secretary.</u> Unless otherwise determined by the Board of Directors, the Secretary shall be responsible for the keeping of the minutes of all meetings of the Board of Directors, shareholders and all committees, in books provided for that purpose, and for the giving and serving of all notices for the Corporation. He shall have charge of the corporate seal, the certificate books, transfer books and stock ledgers, and such other books and papers as the Board of Directors may direct. He shall perform all other duties ordinarily incident to the office of Secretary and shall have such other powers and perform such other duties as may be assigned to him by the Board of Directors.

Section 5.5<u>Powers and Duties of the Treasurer or</u> <u>Controller.</u> The Treasurer or Controller shall receive and take charge of all money, funds, securities, fidelity and indemnify bonds and other valuables belonging to the Corporation, exclusive of assets held by the Corporation in a fiduciary capacity. The Treasurer or Controller shall see that proper records and accounts are kept and proper reports are made to the shareholders, directors, and officers and that

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all laws and regulations are complied with relating thereto and with respect to making and filing registrations and other reports of any nature.

Section 5.6<u>Powers and Duties of the C</u><u>hairman of the Board of Directors.</u> Unless otherwise determined by the Board of Directors, the Chairman of the Board of Directors, shall preside at all meetings of Directors. He shall have such other powers and perform such further duties as may be assigned to him by the Board of Directors.

Section 5.7<u>Delegation of O</u><u>ffice.</u> The Board of Directors may delegate the powers or duties of any officer of the Corporation to any other person from time to time.

Section 5.8<u>Vacanci</u><u>es.</u> The Board of Directors shall have the power to fill any vacancies in any office occurring from whatever reason.

ARTICLE VI - SURETY BONDS—INSURANCE

Section 6.1<u>Surety Bonds.</u> All officers and employees of the Corporation and, in addition, any Director who is authorized to receive payments of money or to handle negotiable securities on behalf of the Corporation, shall, before entering upon the performance of their duties, furnish bond in such amounts and surety as is approved by the Board of Directors. All premiums for surety bonds shall be paid by the corporation.

Section 6.2<u>Insurance.</u> The Corporation shall provide for the Directors liability insurance and shall provide the same for such of the Corporation's officers and employees, together with such other insurance as the Board of Directors determines appropriate.

ARTICLE VII - CORPORATE SEAL

Section 7.1<u>Corporate Seal.</u> The seal of the Corporation shall contain the words "FRANKLIN FINANCIAL SERVICES CORPORATION – Incorporated - 1983."

ARTICLE VIII - CONFIDENTIAL INFORMATION

Section 8.1<u>Nondisclosure Obligation.</u> No Director, officer or employee shall disclose any of the business of the Corporation, not of a public nature or required by legal authority, except the necessary information to patrons concerning their individual business, or to other officers, directors or committees.

ARTICLE IX - DIVIDENDS

Section 9.1<u>Cash Dividends.</u> The Board of Directors may declare, subject to the limitations prescribed by law, a dividend on the shares of the Corporation of so much of the profits as shall appear advisable to the Board, making the same payable at a time in their discretion.

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Section 9.2<u>Stock Splits and Stock Divide</u><u>nds.</u> The Board of Directors may declare, subject to the limitations prescribed by law, stock splits or stock dividends or such other benefits to the shareholders as they deem appropriate in their discretion.

ARTICLE X- SHARE CERTIFICATES

Section 10.1<u>Share Certifi</u><u>cates.</u>

Every share certificate shall be signed by the Chairman of the Board or the President or Vice-President and by the Treasurer, Assistant Treasurer, Secretary or Assistant Secretary and sealed with the corporate seal, which may be a facsimile, engraved or printed, but where such certificate is signed by a transfer agent or a registrar, the signature of any corporate officer upon such certificate may be a facsimile, engraved or printed.

Section 10.2<u>Transfer of Sh</u><u>ares.</u>

Transfer of shares shall be made on the books of the Corporation only upon surrender of the share certificate, duly endorsed or with duly executed stock powers attached and otherwise in proper form for transfer, which certificate shall be cancelled at the time of the transfer.

Section 10.3<u>Determination of Shareholders of Rec</u><u>ord and Closing Transfer</u> <u>Books</u>. The Board of Directors may fix a time, not more than fifty (50) days prior to the date of any meeting of shareholders, or the date fixed for the payment of any dividend or distribution, or the date for the allotment of rights, or the date when any change or conversion or exchange of shares will be made or go into effect, as a record date for the determination of the shareholders entitled to notice of or to vote at any such meeting, or entitled to receive payment of any such dividend or distribution, or to receive any such allotment of rights, or to exercise the rights in respect to any such change, conversion or exchange of shares or otherwise. In such case, only such shareholders as shall be shareholders of record on the date so fixed shall be entitled to notice of or to vote at such meeting, or to receive payment of such dividend, or to receive such allotment of rights, or to exercise such rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after any record date fixed as aforesaid. The Board of Directors may close the books of the Corporation against transfer of shares during the whole or any part of such period, and in such case written or printed notice thereof shall be mailed at least ten (10) days before the closing thereof to each shareholder of record at the address appearing on the records of the Corporation or supplied by him to the Corporation for the purpose of notice. While the stock transfer books of the Corporation are closed, no transfer of shares shall be made thereon. Unless a record date is fixed by the Board of Directors for the determination of shareholders entitled to receive notice of, or vote at, a shareholders' meeting, transferees of shares which are transferred on the books of the Corporation within ten (10) days next preceding the date of such meeting shall not be entitled to notice of or to vote at such meeting. The Corporation may treat the registered owner of each share of stock as the person exclusively entitled to vote, to receive notifications and otherwise to exercise all the rights and powers of the owner thereof.

Section 10.4<u>Lost Certi</u><u>ficates.</u> Any person or persons desiring a certificate of stock to be issued in lieu of one lost or destroyed shall furnish the Corporation with an Affidavit describing the certificate and the circumstances of its loss or destruction, together with a bond of

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indemnity, with satisfactory security or surety, indemnifying the Corporation against any loss that may arise from issuing a new certificate; whereupon the Board of Directors may direct the issue of a new certificate of the same tenor as the one alleged to be lost or destroyed. The application for a new certificate and the evidence of compliance by the applicant with all the requirements of this By-law shall be made in such forms as shall be satisfactory to the Corporation.

ARTICLE XI– INDEMNIFICATION

Section 11.1<u>General Rule.</u> The Corporation shall, to the fullest extent permitted under the laws of the Commonwealth of Pennsylvania as now or hereafter in effect, indemnify any person (and his heirs, executors, and administrators) who was or is a party, witness, or other participant or is threatened to be made a party, witness, or participant to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (including, without limitation, actions by or in the right of the Corporation) by reason of the fact that he is or was a director or officer of the Corporation, or is or was serving at the request of the Corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, against all expenses (including attorneys' fees, court costs, transcript costs, fees of experts and witnesses, travel expenses, and all other similar expenses), judgments, fines, penalties, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding.

Section 11.2<u>Advance Payment</u> <u>of Expenses.</u> The Corporation shall advance all reasonable expenses (including attorneys' fees, court costs, transcript costs, fees of experts and witnesses, travel expenses, and all other similar expenses) reasonably incurred in connection with the defense of or other response to any action, suit, or proceeding referred to in Section 11.1 above upon receipt of an undertaking by or on behalf of the person seeking the advance to repay all amounts advanced if it shall ultimately be determined upon final disposition of such action, suit or proceeding that he is not entitled to be indemnified by the Corporation.

Section 11.3<u>No Duplication of Pay</u><u>ments.</u> The Corporation shall not be liable under this Article XI to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that the person seeking indemnification has otherwise actually received payment therefor under any insurance policy, contract, agreement, or otherwise. In the event that the Corporation makes an advance payment of expenses to a person, such person shall repay to the Corporation the amount so advanced, if and to the extent that he subsequently receives payment therefor under any insurance policy, contract, agreement, or otherwise.

Section 11.4<u>Insurance</u><u>.</u> The Corporation may purchase and maintain at its own expense one or more policies of insurance to protect itself and to protect any director, officer, employee, or agent of the Corporation or of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability, or loss incurred by such person in such capacity, whether or not the Corporation would have the authority to indemnify such person against any such expense, liability, or loss under this Article XI or under the laws of the Commonwealth of Pennsylvania.

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Section 11.5<u>Indemnification Agree</u><u>ments.</u> The Corporation shall have authority by vote of a majority of the Board of Directors to enter into an Indemnification Agreement with any person who may be indemnified by the corporation pursuant to the provisions of this Article XI or otherwise. Any such Indemnification Agreement may contain such terms and conditions as a majority of the Board of Directors shall in the exercise of their discretion determine to be necessary or appropriate. Such terms and conditions may include provisions for greater or lesser indemnification than provided for in this Article XI, provisions establishing procedures for the processing or approval of indemnification claims, and other provisions. The fact that the Corporation has not entered into an Indemnification Agreement with any person shall not in any way limit the indemnification rights of such person under this Article XI or otherwise.

Section 11.6<u>Non-Exclusiv</u><u>ity.</u> The right to indemnification and to the payment of expenses incurred in defending against or otherwise responding to any action, suit, or proceeding in advance of its final disposition as set forth in this Article XI shall not be exclusive of any other rights which any person may now have or hereafter acquire under any agreement, vote of shareholders, vote of disinterested directors, or under any applicable law or under the Articles of Incorporation of the Corporation, or otherwise.

Section 11.7<u>Survival of Ri</u><u>ghts.</u> The indemnification rights provided to a person under the provisions of this Article XI shall continue after such person ceases to be a director or officer of the Corporation or of another entity, as to any action taken, any failure to take action, or any events which occurred while such person was a director or officer of the Corporation or of another entity.

Section 11.8<u>Modification or</u> <u>Repeal.</u> The provisions of this Article XI may be modified or repealed in accordance with the procedures for amending these Bylaws; provided, however, that any such modification or repeal shall not have any effect upon the indemnification rights of any person as they relate to any action taken, any failure to take action, or events which occurred prior to the effective date of such modification or repeal.

Section 11.9<u>Effective Da</u><u>te.</u> The provisions of this Article XI shall become effective immediately following its ratification by the shareholders of the Corporation at a meeting of shareholders duly convened after notice to the shareholders of such purpose.

ARTICLE XII- AMENDMENT OF THE BYLAWS

Section 12.1<u>Amendment.</u> The authority to make, amend, alter, change, or repeal the Bylaws of the Corporation is hereby expressly and solely granted to and vested in the Board of Directors, subject always to the power of the shareholders to make, amend, alter, change, or repeal the Bylaws of the Corporation by the affirmative vote of the holders of not less than two thirds of the then outstanding shares of stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, at a meeting of the shareholders duly convened after-notice to the shareholders of such purpose.

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ARTICLE XIII- INTERPRETATION OF BYLAWS

Section 13.1<u>Interpretation.</u> All words, terms and provisions of these Bylaws shall be interpreted and defined by and in accordance with the Pennsylvania Business Corporation Law, as amended, and as amended from time to time hereafter.

ARTICLE XIV- FISCAL YEAR

Section 14.1<u>Fiscal Year.</u> The Board of Directors shall have the power by resolution to fix the fiscal year of the Corporation. If the Board of Directors shall fail to do so, the President shall fix the fiscal year.

ARTICLE XV- DISASTER

Section 15.1<u>General.</u> In the event of war, armed conflict, insurrection or other similar disaster which does or could prevent the proper operation of the Corporation, in the absence of a Chief Executive Officer, the Chairman of the Board or, in the absence of the Chairman, the President, or the Board of Directors or its Executive Committee, if any, or the Secretary or the Treasurer or the next highest ranking officer, shall designate a person to be the Chief Executive Officer, who may declare an emergency, and the Corporation shall then automatically be operated under the emergency powers set forth in this Article.

Section 15.2<u>Chief Executive Offi</u><u>cer.</u> The Executive Officer having charge of the Corporation shall conduct the affairs of the Corporation under such guidance of the Directors who may be available. The Executive Officer shall have the power to continue business, hire new employees, fix the wages and hours thereof, change the place of the central office, branch offices, select new offices, and transfer the Corporation's assets, records, documents, securities and property to such places where the Executive Officer deems appropriate.

Section 15.3<u>Board of Direct</u><u>ors.</u> The Board of Directors and all other Committees may each function with less than a quorum and at other times and places than specified in the Bylaws and meetings and functions of the Board may be entirely or temporarily suspended. In the event of suspension, the functions of Directors and various Committees shall be conducted by the Chairman of the Board and, if unavailable, by the Executive Officer, under such guidance of Directors who may be available.

Section 15.4<u>Termination of State of Eme</u><u>rgency.</u> The state of emergency may be terminated at any time by the Executive Officer, or by the written signature of five (5) Directors, and, if less than five (5) Directors are available, then by written consent of the Directors who are available.

Section 15.5<u>Notice to Regu</u><u>lators.</u> The person declaring an emergency shall make every effort to give notice thereof to the Pennsylvania Department of Banking, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and any and all other regulatory authorities having jurisdiction over the Corporation and its subsidiaries, and shall make every

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effort to see that the Corporation makes every reasonable effort to comply with all applicable laws and regulations under the circumstances.

ARTICLE XVI- MISCELLANEOUS

Section 16.1<u>1990 Antitakeover La</u><u>w.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<u>Partial Opt Out</u>. The following provisions of the Pennsylvania Antitakeover Law of 1990 shall not be applicable to the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)<u>Control Share Acquisition Law</u>. The provisions of Subchapter 25G of the Business Corporation Law of 1988 (15 Pa. C.S.A. §§ 2561 through 2567) relating to control share acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)<u>Short-Term Profits Disgorgement Law</u>. The provisions of Subchapter 25H of the Business Corporation Law of 1988 (15 Pa. C.S.A. §§2571 through 2575) relating to disgorgement by certain controlling shareholders following attempts to acquire control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)<u>Severance Compensation Law</u>. The provisions of Subchapter 25I of the Business Corporation Law of 1988 (15 Pa. C.S.A. §§ 2581 through 2583) relating to severance compensation for employees terminated following certain control-share acquisitions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)<u>Labor Contract Preservation Law</u>. The provisions of Subchapter 25J of the Business Corporation Law of 1988 (15 Pa. C.S.A. §§ 2585 through 2588) relating to business combination transactions - labor contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<u>Effective Date</u>. This Section 16.1 of Article XVI shall take effect immediately on the date of its adoption, July 26, 1990.

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