Franklin Financial Services : FRAF Investor Presentation - March 2024

Investor Presentation

Fourth Quarter 2023 Highlights

Forward Looking Statements

Certain statements appearing herein which are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements refer to a future period or periods, reflecting management's current views as to likely future developments, and use words "may," "will," "expect," "believe," "estimate," "anticipate," or similar terms. Because forward-looking statements involve certain risks, uncertainties and other factors over which Franklin Financial Services Corporation has no direct control, actual results could differ materially from those contemplated in such statements. These factors include (but are not limited to) the following: general economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of the coronavirus COVID-19 pandemic and responses thereto, changes in interest rates, changes in the Corporation's cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in the rate of inflation, changes in technology, the intensification of competition within the Corporation's market area, and other similar factors.

We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date. The

Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly

Reports on Form 10-Q, and any Current Reports on Form 8-K.

CEO Comments

2023 was a challenging year for financial institutions across the country, but we operated profitably, paid a solid dividend to our shareholders, and made investments that will support the future growth and continued success of Franklin Financial Services Corporation.

Some key changes during the year included the development of a data analytics team that will help improve decision-making and workflows, improving efficiencies that should be reflected in future earnings. Through a series of opportunistic hires, we expanded our trade area into southeastern Pennsylvania and northeast Maryland, which provides the opportunity for profitable growth, particularly in commercial lending and wealth management. We are in the process of updating and improving our retail infrastructure, which includes facility realignment and updated product sets, to continue to support and grow the strong retail deposit base that provides us with low-cost core deposits. Because credit quality remains very good, with no signs of significant deterioration, we have been able to focus on the future and take the necessary charges to adjust our investment portfolio and pay off a non-productive lease. While the combined cost of these moves to the bank in 2023 was $1.6 million, pre-tax, the adjustments will lead to improved performance by the company in future years.

Certainly, there are challenges ahead. Continuing to build new relationships, grow deposits, manage costs and liquidity, and remain vigilant for signs of credit quality issues will be important to the company in 2024. The successes of 2023, including solid loan growth, geographic expansion of markets, and investments in people and systems, while maintaining profitability and providing consistent dividends to our shareholders, help propel us forward as a strong financial services company. Your support continues to be greatly appreciated.

Sincerely,

Mission, Vision & Core Values

Mission Statement

Delivering the right financial solutions from people you know and trust.

Vision

We are committed to remaining independent by growing our bank to meet the increasing needs of our employees, customers, communities, and shareholders.

We strive to be a financial services leader in the markets we serve.

Core Values

The employees, officers and directors are committed to the core values of integrity, teamwork, excellence, accountability, and concern for our customers and the communities we serve.

Overview of Franklin Financial

• • Franklin Financial, which was formed in 1983, is a holding company headquartered in Franklin County, PA

• • Franklin Financial's wholly-owned subsidiary, F&M Trust, was founded in Chambersburg, PA in 1906

• • Total assets of the Company were $1.84 billion as of December 31, 2023

• • As of December 31, 2023, Franklin Financial reported $1.23 billion in brokerage and trust assets under management

• • Franklin Financial stock is trading on the Nasdaq Stock Market (NASDAQ: FRAF)

Trade Area ExpansionExperienced and Cohesive Executive Team

Years of BankingExecutive

Title

ExperienceJoined F&M Trust

Prior Experience

Timothy G. Henry

President & Chief Executive Officer

41 2016

Fulton, Centra Bank, BlueRidge Bank,

Susquehanna Bank, BB&T

Mark R. Hollar

Executive Vice President, Chief Financial Officer & Treasurer

35 1994

ValleyBank & Trust

Charles B. Carroll, Jr.

Executive Vice President, Chief Operating Officer

29 2023

S&T Bank, FirstMerit / Huntington National Bank, BBVA Compass

Lorie Heckman

Senior Vice President, Chief Risk Officer

37 1986

Steven D. Butz

Senior Vice President, Chief Commercial Services Officer

38 2013

PNC, Waypoint, Sovereign, Graystone

Tower, Susquehanna Bank

Scott Ehrig, CFP, CIMA

Senior Vice President, Chief Wealth Management Officer

30 2020

FMA Advisory, Wilmington Trust, M&T

Investment Group, JP Morgan

Experienced and Cohesive Executive Team

Years of BankingExecutive

Title

ExperienceJoined F&M Trust

Prior Experience

Louis J. Giustini

Senior Vice President, Chief Retail Services Officer

35 2022

Hagerstown Trust, Columbia Bank,

Fulton Bank

Karen K. Carmack, DM

Senior Vice President, Chief Human Resources Officer

28 2000

ACNB

Matthew D. Weaver

Senior Vice President, Chief Marketing Officer

23 2014

Susquehanna Bank, Clifton LarsonAllen, IMRE

David Long

Senior Vice President, Chief Technology Officer

16 2022

Howard Bank

A Year of Growth

SELECTED HIGHLIGHTS	GROWTH PERCENTAGE +8% +19.7% +20.6%	KEY STATISTICS
Total Assets	$1.836 Billion as of 12/31/2023 $1.700 Billion as of 12/31/2022
Net Loans	$1.240 Billion as of 12/31/2023 $1.036 Billion as of 12/31/2022
Assets Under Management	$1.230 Billion as of 12/31/2023 $1.020 Billion as of 12/31/2022

Non-Interest Income (Dollars in thousands)

2023

• 1 Does not reflect $1,119 in losses on sales of debt securities.

• 2 Does not reflect $91 in losses on sales of debt securities.

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