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Exhibit 99.1 July 27 , 2021 Franklin Financial Reports 2021 Q2 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 $ 5.3 million ( $ 1.19 per diluted share ) for the second quarter ended June 30 , 2021 , compared to $ 3.1 million ( $ .71 per diluted share ) for the second quarter ended June 30 , 2020 , and $ 4.8 million ( $ 1.09 per diluted share ) for the first quarter of 2021. Year - to - date 2021 net income was $ 10.1 million ( $ 2.28 per diluted share ) compared to $ 4.8 million ( $ 1.10 per diluted share ) for the same six - month period in 2020 . A summary of operating results for the second quarter of 2021 and year - to - date 2021 are as follows : . Net interest income was $ 10.8 million , inclusive of $ 865 thousand of interest and fees from Paycheck Protection Program ( PPP ) loans , for the second quarter of 2021 compared to $ 10.8 million ( including $ 735 thousand of PPP interest and fees ) for the first quarter of 2021 and $ 10.3 million for the second quarter of 2020. Year - to - date , net interest income was $ 21.7 million ( including $ 1.6 million of PPP interest and fees ) compared to $ 20.6 million for the same period in 2020. The net interest margin decreased to 2.82 % for the second quarter of 2021 from 3.26 % for the same quarter of the prior year . On a year - to - date comparison , the net interest margin was 2.92 % for 2021 compared to 3.39 % in 2020. The yield on earning assets decreased in both the second quarter 2021 versus 2020 comparison ( down 0.54 % ) and year - to - date comparison ( down 0.64 % ) as all asset classes had lower yields as market rates decreased over the year . The year - to - date cost of interest - bearing deposits decreased from 0.47 % in 2020 to 0.16 % in 2021 while the cost of total deposits fell from 0.38 % in 2020 to 0.13 % in 2021 as the Bank reduced deposit rates to offset lower asset yields . · Earning assets for the second quarter of 2021 averaged $ 1.6 billion compared to $ 1.3 billion for the same period in 2020 , and year - to - date average earnings assets were 23.2 % greater than 2021. The 2021 average balance of the investment portfolio increased $ 216.2 million over the same comparative period , primarily in the municipal bond portfolio . T he average balance of the loan portfolio increased from $ 962.3 million for the first six months of 2020 to $ 1.0 billion in 2021. The average balance of the commercial loan portfolio increased $ 32.8 million , primarily due to the addition of PPP loans which totaled $ 53.6 million at June 30 , 2021 and averaged $ 57.2 million for the year - to - date period . The average balance of deposits for the year increased $ 259.6 million over the same period in 2020 with every deposit category increasing except for time deposits . . The provision for loan loss expense for the second quarter of 2021 was a reversal of $ 1.1 million compared to an $ 800 thousand reversal in the first quarter of 2021 , and a provision expense of $ 2.0 million for the second quarter of 2020. Year - to - date , the provision for loan loss expense was a reversal