FRANKLIN FINANCIAL SERVICES CORPORATION (OTCMKTS: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. 



Safe Harbor Statement: Certain of the statements made in this Report are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may”, “will”, “anticipate”, “assume”, “should”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “plan”, “point to”, “project”, “could”, “intend”, “target”, and other similar words and expressions of the future. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors, including, without limitation, those risks and uncertainties detailed in the Company’s other filings with the Securities and Exchange Commission. Any such forward-looking statements set forth above are valid only as of the date of this report and the Company disclaims any obligation to update this information.







About FRANKLIN FINANCIAL SERVICES CORPORATION (OTCMKTS:FRAF)

Franklin Financial Services Corporation is a bank holding company. The Company conducts its business through its banking subsidiary, Farmers and Merchants Trust Company of Chambersburg (the Bank). The Bank is a Pennsylvania-chartered commercial bank and trust company. It operates over 20 community banking offices in Franklin, Cumberland, Fulton and Huntingdon counties in Pennsylvania. The Bank is engaged in general commercial, retail banking and trust services associated with community banks. The Bank offers a range of services, including accepting and maintaining checking, savings, and time deposit accounts, making loans and providing safe deposit facilities to businesses, individuals and governmental entities. The Company’s subsidiary, Franklin Future Fund Inc., is a non-bank investment company that makes venture capital investments within the Company’s primary market area.

FRANKLIN FINANCIAL SERVICES CORPORATION (OTCMKTS:FRAF) Recent Trading Information

FRANKLIN FINANCIAL SERVICES CORPORATION (OTCMKTS:FRAF) closed its last trading session down -0.20 at 28.80 with shares trading hands.