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Exhibit 99.1 April 26 , 2021 Franklin Financial Reports 2021 Q1 Earnings ; Declares Dividend ( CHAMBERSBURG , PA ) Franklin Financial Services Corporation ( NASDAQ : FRAF ) , the bank holding company of F & M Trust ( the Bank ) , reported consolidated earnings of $ 4.8 million ( $ 1.09 per diluted share ) for the first quarter ended March 31 , 2021 , compared to fourth quarter 2020 earnings of $ 4.6 million ( $ 1.04 per diluted share ) and first quarter 2020 earnings of $ 1.7 million ( $ 0.39 per diluted share ) . A summary of operating results for the first quarter of 2021 are as follows : . . Net interest income was $ 10.8 million for the first quarter of 2021 compared to $ 10.3 million for the first quarter of 2020. The net interest margin for the first quarter fell from 3.53 % in 2020 to 3.03 % in 2021. The year - to - date yield on earning assets fell by 0.77 % from 4.00 % in 2020 to 3.23 % in 2021 as all asset classes had lower yields as market rates decreased over the year . The cost of interest - bearing deposits fell from 0.61 % in 2020 to 0.18 % in 2021 as the Bank reduced deposit rates to offset lower asset yields . The cost of total deposits fell from 0.51 % in 2020 to 0.14 % in 2021 . · Earning assets for the first quarter of 2021 averaged $ 1.5 billion compared to $ 1.2 billion for the same period in 2020. The average balance of the investment portfolio increased $ 212.3 million over the same comparative period , primarily in the municipal bond portfolio . T he average balance of the loan portfolio increased from $ 934.5 million in the first quarter of 2020 to $ 1.0 billion in 2021. The average balance of the commercial loan portfolio increased $ 65.3 million over the first quarter of 2020. The increase is primarily due to the addition of Paycheck Protection Program ( PPP ) loans which totaled $ 55.9 million at March 31 , 2021 and averaged $ 54.6 million for the quarter . The average balance of deposits for the first quarter of 2021 increased $ 268.0 million over the same quarter in 2020 with every deposit category increasing except for time deposits . . The provision for loan loss expense for the first quarter of 2021 was ( $ 800 ) thousand , representing a reversal of previously recorded provision for loan loss expense . This expense reversal compares to a provision for loan loss expense of $ 3.0 million in the first quarter of 2020. The 2020 provision expense was the result of an increase in several qualitative factors in the allowance for loan loss calculation due to the economic effects and impact of the COVID - 19 pandemic . As of March 31 , 2021 several qualitative factors were reduced reflecting a lower risk of loss in the loan portfolio , thereby , resulting in a reversal of the provision for loan loss expense . The allowance for loan loss ratio was 1.61 % of gross loans as of March 31 , 2021 , compared to 1.66 % at December 31 , 2020. Excluding the PPP loans , the allowance for loan loss ratio was 1.71 % at the end of the first quarter of 2021 . Noninterest income totaled $ 4.2 million for the first quarter of 2021 , an increase of $ 338 thousand over the comparable quarter of 2020. The largest