Franklin Financial Services's Business Segments

Franklin Financial Services Corporation was organized as a Pennsylvania business corporation on June 1, 1983 and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). On January 16, 1984, pursuant to a plan of reorganization approved by the shareholders of Farmers and Merchants Trust Company of Chambersburg (“F&M Trust” or “the Bank”) and the appropriate regulatory agencies, the Corporation acquired all the shares of F&M Trust and issued its own shares to former F&M Trust shareholders on a share-for-share basis.

The Corporation’s common stock is thinly traded in the over-the-counter market. The Corporation’s stock is listed under the symbol “FRAF” www.otcmarkets.com/stock/FRAF/quote) on the OTCQX Market Tier of the OTC Markets. The Corporation’s Internet address is www.franklinfin.com. Electronic copies of the Corporation’s 2015

Franklin Financial Services Corporation operates as a comprehensive community financial services provider, delivering a diverse range of banking and financial offerings to individuals, businesses, and government entities. This extensive suite of products and services enables them to meet the varied financial needs of their customer base effectively. Below is a detailed exploration of their core segments, products, and services:

Banking Services

1. Retail Banking: Franklin Financial provides a full spectrum of retail banking services, designed for individual customers. Key offerings include:
- Checking Accounts: Various personal checking options with features like online banking, mobile deposits, and debit card access.
- Savings Accounts: Standard savings accounts, high-yield savings options, and special-purpose savings vehicles aimed at helping customers save for specific goals.
- Time Deposits: Certificates of Deposit (CDs) with varied terms that offer guaranteed returns on deposits over fixed periods.

2. Commercial Banking: Tailored services for businesses of all sizes, helping them manage their finances and resources effectively. This segment includes:
- Business Checking Accounts: Flexible account structures for everyday business transactions.
- Business Loans: A range of lending products including lines of credit, term loans, and equipment financing designed to support growth and operational needs.
- Commercial Real Estate Loans: Financing options for purchasing or refinancing real estate properties used for business purposes.

3. Consumer Loans: A suite of consumer financing solutions intended for individual borrowers:
- Personal Loans: Unsecured loans for personal expenses including debt consolidation and major purchases.
- Auto Loans: Financing for the purchase or refinancing of vehicles.

4. Mortgage Loans: Franklin Financial offers various mortgage products catering to homebuyers:
- Conventional Mortgages: Standard fixed-rate and adjustable-rate mortgage options.
- FHA/VA Loans: Government-backed lending options with favorable terms for eligible borrowers.
- Home Equity Lines of Credit (HELOCs): Flexible borrowing against the equity in a home for larger expenses or projects.

Investment and Trust Services

1. Investment Services: Through its Investment and Trust Services Department and Personal Investment Center, Franklin Financial offers:
- Wealth Management: Comprehensive wealth planning services tailored to individual needs including investment strategy development and management.
- Retirement Planning: Strategies and vehicles designed to help clients prepare for retirement, including IRAs and retirement savings accounts.

2. Trust Services: Providing fiduciary services that help individuals and families manage their estate and wealth:
- Estate Planning and Administration: Services to help clients efficiently manage their estates, including will execution and trust establishment and management.
- Corporate Trust Services: Serving businesses with their trust and agency needs, including bond issuance and management.

3. Pension Services: Guidance and management of pension funds for businesses, ensuring compliance with regulations while providing optimal returns for beneficiaries.

Additional Services

1. Safe Deposit Services: Secure storage options for customers’ valuables and important documents, providing peace of mind in asset protection.

2. Online and Mobile Banking: A modern digital banking experience that offers customers convenient access to their accounts, bill payments, fund transfers, and account management tools via secure online and mobile applications.

3. ATM Network: A robust network of automated teller machines that provide customers with easy access to their funds and banking services 24/

Community Focus

Franklin Financial Services Corporation is deeply rooted in its commitment to the community, offering financial literacy programs, local sponsorships, and support for community development initiatives, thereby actively participating in the economic growth of the areas it serves.

In summary, Franklin Financial Services Corporation provides a comprehensive range of traditional banking products and services along with investment, trust, and wealth management solutions. This spectrum supports individuals, businesses, and governmental customers, tailored to their unique financial needs.