# EDGAR Filing Document

**Accession Number:** 0000723646
**File Stem:** 0000723646-25-000052
**Filing Date:** 2025-6
**Character Count:** 23021
**Document Hash:** 5a781c0a13d3a66ce70b804957dfe395
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000723646-25-000052.hdr.sgml**: 20250602

**ACCESSION NUMBER**: 0000723646-25-000052

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 42

**CONFORMED PERIOD OF REPORT**: 20250602

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250602

**DATE AS OF CHANGE**: 20250602

**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:** 251015043

**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-20250602x8k

**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>June 2, 2025</u>**

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

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

---

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| | |
|:---|:---|
| **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> 

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

Franklin Financial Services Corporation ("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.

**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 June 2, 2025 of Franklin Financial Services</u>](fraf-20250602xex99_1.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: June 2, 2025

## Exhibit 99.1

**Exhibit 99.1**

Investor Presentation First Quarter 2025 Highlights Franklin Financial Services Corporation F&M TRUST

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![Picture 2](fraf-20250602xex99_1g002.jpg)

Forward Looking Statements Certain statements appearing herein which are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements refer to a future period or periods, reflecting management's current views as to likely future developments, and use words "may," "will," "expect," "believe," "estimate," "anticipate," or similar terms. Because forward-looking statements involve certain risks, uncertainties and other factors over which Franklin Financial Services Corporation has no direct control, actual results could differ materially from those contemplated in such statements. These factors include (but are not limited to) the following: general economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of the coronavirus COVID-19 pandemic and responses thereto, changes in interest rates, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in the rate of inflation, changes in technology, the intensification of competition within the Corporation's market area, and other similar factors. We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K. F&M TRUST Franklin Financial Services Corporation 2

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![Picture 3](fraf-20250602xex99_1g003.jpg)

Why Invest in Franklin Financial? A premier, $2.3 billion, bank franchise located in South-Central Pennsylvania and northern tier of Maryland A company that is focused on building shareholder value by investing in technology and infrastructure to position itself for growth and profitability improvement A company that continues to grow core, low-rate deposits A company with diversified revenue streams including fee income from a $1.3 billion assets under management wealth management team A company with pristine credit quality A company with an above peer average dividend yield Attractive valuation entry point F&M TRUST Franklin Financial Services Corporation 3

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![Picture 4](fraf-20250602xex99_1g004.jpg)

Mission, Vision & Core Values Mission Statement Delivering the right financial solutions from people you know and trust. Vision We are committed to remaining independent by growing our bank to meet the increasing needs of our employees, customers, communities, and shareholders. We strive to be a financial services leader in the markets we serve. Core Values The employees, officers and directors are committed to the core values of integrity, teamwork, excellence, accountability, and concern for our customers and the communities we serve. F&M TRUST Franklin Financial Services Corporation 4

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![Picture 5](fraf-20250602xex99_1g005.jpg)

Overview of Franklin Financial Franklin Financial, which was formed in 1983, is a holding company headquartered in Franklin County, PA Franklin Financial's wholly-owned subsidiary, F&M Trust, was founded in Chambersburg, PA in 1906 Total assets of the Company were $2.3 billion as of March 31, 2025 As of March 31, 2025, Franklin Financial reported $1.3 billion in trust and brokerage assets under management Franklin Financial stock is trading on the Nasdaq Stock Market (NASDAQ: FRAF) F&M TRUST Franklin Financial Services Corporation 5

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![Picture 6](fraf-20250602xex99_1g006.jpg)

Trade Area Expansion 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 6

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![Picture 7](fraf-20250602xex99_1g007.jpg)

Experienced and Cohesive Executive Team Executive Title Years of Banking Experience Joined F&M Trust Prior Experience Craig W. Best President and Chief Executive Officer 42 2025 Peoples Security Bank & Trust, First Commonwealth Bank, Equitable Bank Mark R. Hollar Executive Vice President, Chief Financial Officer & Treasurer 37 1994 ValleyBank & Trust Charles B. Carroll, Jr. Executive Vice President, Chief Operating Officer 31 2023 S&T Bank, FirstMerit / Huntington National Bank, BBVA Compass Lorie Heckman, CERP, CRCM Executive Vice President, Chief Risk Officer 39 1986 F&M Trust, Vice President of Compliance and Security Steven D. Butz Senior Vice President, Chief Commercial Services Officer 40 2013 PNC, Waypoint, Sovereign, Graystone Tower, Susquehanna Bank Scott Ehrig, CFP®, CIMA® Senior Vice President, Chief Wealth Management Officer 32 2020 FMA Advisory, Wilmington Trust, M&T Investment Group, JP Morgan Louis J. Giustini Senior Vice President, Chief Retail Services Officer 37 2022 Hagerstown Trust, Columbia Bank, Fulton Bank F&M TRUST Franklin Financial Services Corporation 7

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![Picture 8](fraf-20250602xex99_1g008.jpg)

Experienced and Cohesive Executive Team Executive Title Years of Banking Experience Joined F&M Trust Prior Experience Karen K. Carmack, DM Senior Vice President, Chief Human Resources Officer 30 2000 ACNB Matthew D. Weaver Senior Vice President, Chief Marketing Officer 25 2014 Susquehanna Bank, Clifton LarsonAllen, IMRE David M. Long Senior Vice President, Chief Technology Officer 18 2022 Howard Bank F&M TRUST Franklin Financial Services Corporation 8

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![Picture 9](fraf-20250602xex99_1g009.jpg)

Consistent Quarterly Results SELECTED HIGHLIGHTS Growth Percetage KEY STATISTICS Total Assets +2.7% $2.257 Billion as of 3/31/2025 $2.198 Billion as of 12/31/2024 Net Loans +4.2% $1.438 Billion as of 3/31/2025 $1.380 Billion as of 12/31/2024 Total Deposits +2.9% $1.868 Billion as of 3/31/2025 $1.816 Billion as of 12/31/2024 Assets Under Management +1.1% $1.323 Billion as of 3/31/2025 $1.309 Billion as of 12/31/2024 F&M TRUST Franklin Financial Services Corporation 9

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![Picture 10](fraf-20250602xex99_1g010.jpg)

Income Growth Net Interest Income (Millions) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $13.6 $15.6 3/31/224 3/31/2025 Quarter End Quarter End Net interest margin was 3.05% for the quarter ended 3/31/25 compared to 2.88% for the same period in 2024; Non-interest income for the quarter ended 3/31/25 was $4.6 million compared to $4.2 million for the same period in 2024 Non-Interest Income1 ($000's) $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $996 $1,082 $1,500 $536 $558 $1,000 $613 $605 $500 $58 $109 $0 $2,026 $2,215 3/31/224 3/31/2025 Quarter End Quarter End Wealth Management Fees Gain on Sale of Loans Deposit Service Fees Debit Card Income Other 1Excludes net securities gains/losses F&M TRUST Franklin Financial Services Corporation 10

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![Picture 11](fraf-20250602xex99_1g011.jpg)

Financial Updates First Quarter Ended March 31, 2025 F&M TRUST Franklin Financial Services Corporation 11

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![Picture 12](fraf-20250602xex99_1g012.jpg)

Balance Sheet Highlights Dollars in Thousands (000's) 3/31/2025 12/31/2024 12/31/2023 12/31/2022 Total Assets $2,257,478 $2,197,841 $1,836,039 $1,699,579 Cash and Cash Equiv. $224,956 $203,613 $23,140 $64,899 Investments AFS $495,487 $508,604 $472,503 $487,247 Net Loans $1,437,747 $1,380,424 $1,240,933 $1,036,866 Deposits $1,867,577 $1,815,647 $1,537,978 $1,551,448 Shareholders' Equity $151,391 $144,716 $132,136 $114,197 F&M TRUST Franklin Financial Services Corporation 12

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![Picture 13](fraf-20250602xex99_1g013.jpg)

Investment AFS Portfolio $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $45,657 $38,733 $31,079 $29,975 $200,000 $65,950 $104,005 $149,170 $137,127 $150,000 $105,278 $93,858 $138,742 $137,693 $100,000 $24,239 $23,198 $24,224 $24,341 $50,000 $155,455 $138,618 $133,592 $133,879 $0 $90,257 ($61,497) $74,091 ($49,416) $31,797 ($45,449) $32,472 ($38,926) 12/31/2022 12/31/2023 12/31/2024 3/31/2025 U.S. Treasury Municipal Corporate Agency MBS/CMO Non-Agency MBS/CMO Asset-Backed Unrealized (loss)/Gain 1Included in reported fair values F&M TRUST Franklin Financial Services Corporation 13

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![Picture 14](fraf-20250602xex99_1g014.jpg)

Diversified Loan Portfolio $1,600,000 $1,400,000 $1,200,000 $1,000,000 $37,486 $35,373 $35,086 $30,569 $800,000 $113,629 $160,612 $239,559 $210,692 $600,000 $118,443 $115,018 $108,545 $108,191 $400,000 $218,468 4.14% $275,216 5.16% $322,366 5.65% $328,539 5.72% $200,000 $106,921 $119,365 $114,841 $124,061 $0 $456,198 $70,609 $551,287 $97,811 $580,142 $107,167 $655,926 $111,525 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Commercial Real Estate Commercial (C&I) 1-4 Family State/Muni Loans Construction Ag, Consumer and Other Purchased Participations Loan Yield 1Purchased participations are included as part of the loans outstanding; 2Year-to-date F&M TRUST Franklin Financial Services Corporation 14

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![Picture 15](fraf-20250602xex99_1g015.jpg)

Largest Commercial Real Estate Concentrations CRE Concentrations $600,000 $500,000 $400,000 $43,812 $62,439 $66,645 $64,307 $300,000 $55,428 $68,478 $82,518 $83,157 $200,000 $58,382 $87,137 $92,926 $92,654 $100,000 $81,283 $80,670 $97,460 $100,926 $0 $96,515 $120,180 $146,661 $166,642 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Apartment Units Hotel & Motel Office Shopping Center Land Development \*Primarily in South Central Pennsylvania F&M TRUST Franklin Financial Services Corporation 15

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![Picture 16](fraf-20250602xex99_1g016.jpg)

Strong Credit Quality Nonperforming Assets1 / Assets (%) 0.20% 0.15% 0.10% 0.05% 0.00% 0.01% 0.01% 0.01% 0.01% 12/31/2022 12/31/2023 12/31/2024 3/31/2025 1Nonperforming assets = nonaccrual loans, loans 90 days past due and other real estate owned F&M TRUST Franklin Financial Services Corporation 16

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![Picture 17](fraf-20250602xex99_1g017.jpg)

Deposits by Category Deposits by Category $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $57,390 $132,446 $315,905 $311,530 $400,000 $496,532 $454,517 $417,870 $407,951 $200,000 $698,295 8.5% $677,967 8.9% $791,526 15.4% $849,151 10.6% $0 $299,231 $273,050 $8,677 $290,346 $87,057 $298,945 $87,057 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Demand Deposit MMA & Savings Interest Bearing Checking Time Brokered Total Uninsured/Uncollateralized 1Brokered deposits are included as part of time deposits F&M TRUST Franklin Financial Services Corporation 17

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![Picture 18](fraf-20250602xex99_1g018.jpg)

Cost of Deposits Cost of Deposits1 (%) 2.50 2.00 1.50 1.00 0.50 0.00 0.23 1.23 1.89 2.02 2022 2023 2024 3/31/2025 1Year-to-date F&M TRUST Franklin Financial Services Corporation 18

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![Picture 19](fraf-20250602xex99_1g019.jpg)

Liquidity Available at March 31, 2025 Dollars in Thousands (000's) Liquidity Source Capacity Outstanding Available Federal Home Loan Bank $567,117 $200,000 $367,117 Federal Reserve Bank Discount Window $65,885 $– $65,885 Correspondent Banks $76,000 $– $76,000 Total $709,002 $200,000 $509,002 F&M TRUST Franklin Financial Services Corporation 19

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![Picture 20](fraf-20250602xex99_1g020.jpg)

Wealth Management Total and New Assets Under Management ($000's) $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $135,423 $1,094,779 $1,230,202 $217,891 $139,872 $1,169,290 $1,309,162 $109,304 $139,918 $1,183,246 $1,323,165 $43,311 12312023 12/31/2024 3/31/2025 Brokerage Trust Total New Assets Under Management (YTD) F&M TRUST Franklin Financial Services Corporation 20

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![Picture 21](fraf-20250602xex99_1g021.jpg)

Income Statement Highlights Dollars in Thousands (000's) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Interest Income $27,058 $26,856 $23,809 Interest Expense $11,452 $11,760 $10,256 Provision for Credit Losses $779 $500 $452 Noninterest Income1 $4,569 $4,574 $4,229 Noninterest Expense $14,577 $14,335 $13,304 Net Income $3,922 $487 $3,361 Net income excluding securities losses, net of tax benefit (non-GAAP)2 $3,922 $3,858 $3,361 1Excludes net securities gains/losses in all periods; 2See GAAP versus Non-GAAP reconciliation F&M TRUST Franklin Financial Services Corporation 21

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![Picture 22](fraf-20250602xex99_1g022.jpg)

Key Performance Measures Percent (%) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Return on Average Assets (ROAA) 0.72 0.09 0.67 ROAA excluding securities losses, net of tax benefit (non-GAAP)1 0.72 0.71 0.67 Return on Average Equity (ROAE) 10.80 1.32 10.21 ROAE excluding securities losses, net of tax benefit (non-GAAP)1 10.80 10.50 10.21 Efficiency Ratio1 71.36 72.05 73.76 Net Interest Margin 3.05 2.92 2.88 Non-Interest Income2 / Operating Revenue 22.65 23.25 23.78 F&M TRUST Franklin Financial Services Corporation 22

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![Picture 23](fraf-20250602xex99_1g023.jpg)

Balance Sheet Strength Percent (%) 3/31/2025 12/31/2024 3/31/2024 Risk-Based Capital Ratio (Total) 13.30 13.85 14.53 Leverage Ratio (Tier 1) 7.82 7.92 8.32 Common Equity Ratio (Tier 1) 10.86 11.31 11.91 Tangible Common Equity Ratio 6.33 6.20 6.25 Tangible Common Equity Ratio excluding AOCI 7.75 7.82 8.31 Nonperforming Assets1 / Total Assets 0.01 0.01 0.02 Allowance for Credit Loss as a % of Loans 1.27 1.26 1.29 Allowance to Nonaccrual Loans NM2 NM3 NM4 1Nonperforming assets = nonaccrual loans, loans 90-days past due and other real estate owned; 2Not meaningful = 7,290.12%; 3Not meaningful = 6,636.47%; 4Not meaningful = 3,374.08% F&M TRUST Franklin Financial Services Corporation 23

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![Picture 24](fraf-20250602xex99_1g024.jpg)

Market Statistics Per Share Measure / Market Valuation Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Diluted Earnings Per Share $0.88 $0.11 $0.77 Cash Dividend Yield 3.61% 4.28% 4.89% Regular Cash Dividends Paid $0.32 $0.32 $0.32 Dividend Payout Ratio 36.16% 290.14% 41.62% Market Value Per Share $35.45 $29.90 $26.20 Book Value Per Share $33.99 $32.69 $30.55 Tangible Book Value Per Share1 $31.97 $30.65 $28.50 Market Cap ($M) $157.89 $132.37 $115.12 Price / Book (%) 104.30% 91.47% 85.76% Price / Tangible Book (%) 110.90% 97.54% 91.94% Price / LTM EPS (X) 13.63 12.01 8.40 1See GAAP versus Non-GAAP reconciliation F&M TRUST Franklin Financial Services Corporation 24

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![Picture 25](fraf-20250602xex99_1g025.jpg)

F&M TRUST Franklin Financial Stock Symbol: FRAF (Nasdaq) www.franklinfin.com www.fmtrust.bank Services Corporation 25

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Appendix F&M TRUST Franklin Financial Services Corporation 26

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![Picture 27](fraf-20250602xex99_1g027.jpg)

GAAP / Non-GAAP Reconciliation Tangible Book Value (Per Share) (Non-GAAP) Dollars in Thousands (000's), Except Per Share 3/31/2025 12/31/2024 3/31/2024 Shareholders' Equity $151,391 $144,716 $134,237 Less Intangible Assets (9,016) (9,016) (9,016) Shareholders' Equity (Non-GAAP) 142,375 135,700 125,221 Less AOCI (31,856) (35,508) (41,234) Tangible Shareholders' Equity Excl. AOCI (Non-GAAP) 174,231 171,208 166,455 Total Assets 2,257,478 2,197,841 2,011,614 Less Intangible Assets (9,016) (9,016) (9,016) Total Tangible Assets (Non-GAAP) $2,248,462 $2,188,825 $2,002,598 Tangible Common Equity Ratio (Non-GAAP) 6.33% 6.20% 6.25% Tangible Common Equity Ratio Excl. AOCI (Non-GAAP) 7.75% 7.82% 8.31% Shares Outstanding (In Thousands) 4,454 4,427 4,394 Tangible Book Value Per Share (Non-GAAP) $31.97 $30.65 $28.50 F&M TRUST Franklin Financial Services Corporation 27

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![Picture 28](fraf-20250602xex99_1g028.jpg)

GAAP / Non-GAAP Reconciliation Net Income Excluding Securities Losses (non-GAAP) Dollars in Thousands (000's) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Securities Losses as Reported $– $(4,267) $– Securities Losses as Reported, Net of Tax Benefit (Non-GAAP) – (3,371) – Noninterest Income as Reported 4,562 288 4,188 Plus Securities Losses – 4,267 – Noninterest Income Excluding Securities Losses, Net of Tax Benefit (Non-GAAP) 4,562 4,555 4,188 Net Income as Reported 3,922 487 3,361 Plus Securities Losses, Net of Tax Benefit – 3,371 – Net Income Excluding Securities Losses, Net of Tax Benefit (Non-GAAP) $3,922 $3,858 $3,361 Return on Average Assets as Reported (ROAA) 0.72% 0.09% 0.67% ROAA Excluding Securities Losses, Net of Tax Benefit (Non-GAAP) 0.72% 0.71% 0.67% Return on Average Equity as Reported (ROAE) 10.80% 1.32% 10.21% ROAE Excluding Securities Losses, Net of Tax Benefit (Non-GAAP) 10.80% 10.50% 10.21% F&M TRUST Franklin Financial Services Corporation 28

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![Picture 29](fraf-20250602xex99_1g029.jpg)

GAAP / Non-GAAP Reconciliation Efficiency Ratio Dollars in Thousands (000's) Quarter Ended 3/31/2025 Quarter Ended 12/31/2024 Quarter Ended 3/31/2024 Noninterest Expense $14,577 $14,335 $13,304 Net Interest Income 15,606 15,096 13,553 Plus Tax Equivalent Adjustment to Net Interest Income 251 227 254 Plus Noninterest Income, Net of Securities Transactions1 $4,569 $4,574 $4,229 Total Revenue 20,426 19,897 18,036 Efficiency Ratio (Non-GAAP) 71.36% 72.05% 73.76% 1Excludes securities gains in all periods F&M TRUST Franklin Financial Services Corporation 29

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