Exhibit 99.1

October 25, 2017



Franklin Financial Reports Q3 2017 Earnings;
Declares Q4 Dividend



(Chambersburg, PA)  Franklin Financial Services Corporation, the bank holding company of F&M Trust, reported earnings of $3.1 million for the third quarter ended September 30, 2017. This represents a 48.2% increase when compared to third quarter 2016 earnings of $2.1 million and an 8.0% decrease when compared to second quarter 2017 earnings of $3.3 million. Second quarter 2017 results were positively impacted by a recovery of past due interest and fees ($374 thousand pre-tax) from a large non-accrual commercial loan that was paid off. Net income for the first nine months of 2017 was $9.4 million compared with $6.4 million for the same period in 2016, an increase of 48.3%.



Compared to the third quarter of 2016, net interest income increased 7.4% to $9.4 million and noninterest income increased 6.0% to $3.0 million. Noninterest expense increased by 4.1%, but the provision for loan losses decreased by 78.3%. The increase in year-to-date net income for 2017 was driven by an increase in net interest income of $2.0 million and a reduction in the provision for loan losses of $2.9 million.



On a per share basis, diluted earnings were $0.70 for the quarter ended September 30, 2017 and $2.17 for the first nine months of 2017, compared to $0.48 and $1.48 for the same periods in 2016.



“Our performance during the quarter and throughout the year is reflective of our continued focus on delivering value to our customers and shareholders while reinvesting in our online, mobile and social platforms,” said Timothy G. Henry, President and CEO. “Additionally, we’ve invested in our most important asset, our people, by expanding our Investment & Trust Services team in the Cumberland County and Greater Capital Region to build on our momentum in that market and support the growth of our noninterest income.”



Total assets at September 30, 2017 were $1.2 billion, a 5.3% increase when compared with total assets at September 30, 2016. Net loans increased 6.1% to $900.0 million, and total deposits increased 5.6% to $1.0 billion for the third quarter of 2017 over the same period last year. Additionally, the market value of assets under management and held at third-party brokers increased slightly to $815.9 million ($662.7 million and $153.2 million, respectively).



The Board of Directors of Franklin Financial Services Corporation declared a $0.24 per share regular cash dividend for the fourth quarter of 2017. This compares to a $0.21 per share regular cash dividend for the fourth quarter of 2016, representing a 14.3% increase. Total cash dividends paid during the four quarters of 2017 will be $0.93 per share compared to $0.82 per share in 2016, an increase of 13.4%.



The regular quarterly cash dividend will be paid on November 22, 2017 to shareholders of record at the close of business on November 3, 2017.



Franklin Financial is the largest independent, locally owned and operated bank holding company headquartered in Franklin County with assets of more than $1 billion. Its wholly-owned subsidiary, F&M Trust, has twenty-two community banking offices located in Boiling Springs, Camp Hill, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mechanicsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg and Waynesboro. Franklin Financial stock is trading on the OTCQX® marketplace of the OTC Markets under the symbol FRAF. Please visit our website for more information, www.franklinfin.com.