FRANKLIN FINANCIAL SERVICES CORPORATION (NASDAQ:FRAF) Files An 8-K Material Impairments
Item 2.06 Material Impairments



The Board of Directors of Franklin Financial Services Corporation (the “Corporation”) reported on January 6, 2017 that its bank subsidiary, Farmers and Merchants Trust Company of Chambersburg (“F&M Trust”), wrote down as of December 31, 2016 the value of a property held as other real estate owned in participation with another bank by $1.1 million to $1.9 million. F&M Trust holds a 68.4% participation interest in the property.  The other bank is the lead bank.  The property, approximately 90 acres of undeveloped commercial real estate in south-central Pennsylvania, was acquired by the lead lender in 2015.  F&M Trust has carried the property at a value of $3.0 million based upon an October 2015 appraisal of $8.5 million that was obtained by the lead lender. The $1.1 million write down is the result of a subsequent appraisal of the property obtained by the lead bank, completed in November 2016, showing a value of $3.0 million. 



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