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Franklin Financial Services Corporation conducts almost all its business through its wholly owned bank, F&M Trust, serving businesses, individuals and government entities mainly in south-central Pennsylvania and Washington County, Maryland. Customer deposits provide most of its funding, which it uses to make loans and hold securities. Borrowers’ interest payments are its largest revenue source, and earnings depend chiefly on the interest it receives exceeding what it pays for deposits and borrowings.
Commercial real estate accounts for most of the loan portfolio. Repayment therefore depends heavily on local business performance, while property values support the collateral behind the loans. F&M Trust also manages investments, trusts and estates for fees. Asset-management fees depend mainly on the market value of client assets, so this income moves with financial markets.
The bank is not materially dependent on any single customer, but it relies on the Federal Home Loan Bank of Pittsburgh as an important borrowing source that would be difficult to replace quickly. The parent company depends on cash from F&M Trust to pay shareholder dividends; laws and regulators limit how much the bank may distribute to it.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Orrstown Financial Services Inc competes through Orrstown Bank with Franklin’s F&M Trust for banking customers in Pennsylvania’s Franklin, Cumberland and Dauphin counties and Maryland’s Washington County. Watch Orrstown’s customer gains and losses in those counties for signs of pressure on F&M Trust’s local banking relationships.
Mid Penn Bancorp, Inc., through Mid Penn Bank, competes with Franklin’s F&M Trust for deposits, business and property loans, and customers’ trust business in south-central Pennsylvania.
Fulton Financial Corp’s Fulton Bank competes with Franklin’s F&M Trust for Pennsylvania and Maryland customers’ deposits, business loans, mortgages and wealth-management business. Fulton’s lending to small and medium-sized businesses is worth watching because F&M Trust also lends to that customer group.
First United Corp, through First United Bank & Trust, competes with Franklin’s F&M Trust for business and household loans, deposits and trust customers in Washington County, Maryland.
Citizens Financial Services, Inc. offers a comparison for Franklin: its First Citizens Community Bank and F&M Trust both lend to Pennsylvania businesses and households and provide trust services, though their disclosed county footprints differ. Watch its Pennsylvania property-loan credit quality as a comparison for F&M Trust, whose commercial real estate loans made up 57.9% of gross loans at December 31, 2025.
Western New England Bancorp, Inc. is a nonlocal comparison for Franklin because its Westfield Bank and F&M Trust both lend mainly against commercial and residential property to businesses and individuals. Watch Westfield’s property-loan credit quality and the gap between lending income and funding costs: commercial and residential real estate accounted for 50.4% and 39.3% of its gross loans, respectively, at December 31, 2025.
Orrstown Financial Services Inc earningsORRF
Orrstown Financial Services’ report will show whether it is gaining or losing customers in counties where it competes with Franklin Financial Services for local banking relationships.
Focus on Orrstown’s customer changes in the counties where the banks overlap, not just its company-wide result. Gains would show it is attracting households and businesses from the same local market, putting more pressure on F&M Trust’s deposit, loan or trust relationships; losses would point to less competitive pressure there.
Franklin Financial Services Corporation earningsThis company
Franklin Financial Services earns mainly from loan interest after deposit and other funding costs, and this report will show whether loan yields still cover those costs comfortably.
Read net interest income alongside net interest margin. Net interest income is interest earned on loans and securities minus interest paid on deposits and other funding; the margin shows the gap between asset yields and funding costs. Stable or rising figures would show that loan growth is adding earnings without being eaten up by funding costs. A narrower margin and weaker income would show that higher funding costs or lower asset yields are squeezing the bank’s main profit source.
Fed Interest Rate Decision
For F&M Trust, the Fed’s rate decision signals how borrowing costs may change, affecting interest earned on its loans and securities and interest paid on deposits and borrowings—and therefore its net interest income.
Expected4.0%Last release4.0%
If it comes in above expectations
If rates rise, F&M Trust may pay more on deposits and borrowings before yields on its loans and securities catch up, squeezing the difference it earns.
If it comes in below expectations
If rates fall, lower yields on F&M Trust’s loans and securities may reduce interest income; if deposit and borrowing costs also ease, the effect on the difference it earns depends on how quickly each adjusts.
