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Exhibit 99.1 October 26 , 2021 Franklin Financial Reports 2021 Q3 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 $ 5.9 million ( $ 1.31 per diluted share ) for the third quarter ended September 30 , 2021 , compared to $ 3.5 million ( $ 0.79 per diluted share ) for the third quarter ended September 30 , 2020 , and $ 5.3 million ( $ 1.19 per diluted share ) for the second quarter of 2021. Year - to - date 2021 net income was $ 16.0 million ( $ 3.60 per diluted share ) compared to $ 8.2 million ( $ 1.89 per diluted share ) for the same nine - month period in 2020. Net income for both the third quarter of 2021 and the year - to - date period of 2021 was boosted by a gain of $ 1.8 million on the sale of the Bank's headquarters building , as previously reported . A summary of operating results for the third quarter of 2021 and year - to - date 2021 are as follows : Net interest income was $ 11.6 million , inclusive of $ 1.2 million of interest and fees from Paycheck Protection Program ( PPP ) loans , for the third quarter of 2021 compared to $ 10.8 million ( including $ 865 thousand of interest and fees from the PPP program ) for the second quarter of 2021 and $ 10.4 million for the third quarter of 2020. Year - to - date , net interest income was $ 33.3 million ( including $ 2.8 million of PPP interest and fees ) compared to $ 31.0 million for the same period in 2020. The net interest margin decreased to 2.89 % for the third quarter of 2021 from 3.02 % for the same quarter of the prior year . On a year - to - date comparison basis , the net interest margin was 2.91 % for 2021 compared to 3.25 % in 2020. The yield on earning assets decreased in both the third quarter 2021 versus 2020 third quarter comparison ( down 0.20 % ) and the year - over - year comparison ( down 0.48 % ) as all asset classes had lower yields as market rates remained low during the year . The year - to - date cost of interest- bearing deposits decreased from 0.39 % in 2020 to 0.16 % in 2021 while the cost of total deposits decreased from 0.32 % in 2020 to 0.13 % in 2021 as the Bank reduced deposit rates to offset lower asset yields . Earning assets for the third quarter of 2021 averaged $ 1.6 billion compared to $ 1.4 billion for the same period in 2020 , and 2021 year - to - date average earning assets were 20.62 % greater than 2020. The 2021 average balance of the investment portfolio increased $ 214.1 million over the same year - to - date comparative period , primarily in the municipal bond portfolio . T he average balance of the loan portfolio increased from $ 983.2 million for the first nine months of 2020 to $ 1.0 billion in 2021. The average balance of the commercial loan portfolio increased $ 12.9 million , due to the addition of PPP loans which totaled $ 21.7 million at September 30 , 2021 and averaged $ 50.3 million for the year - to - date period . The average balance of deposits for the year increased $ 242.5 million ( 20.0 % ) over the same period in 2020 with every deposit category increasing except for time deposits .