Franklin Financial Services : FRAF Investor Presentation - August 2023

Investor Presentation

Second 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 such as "may," "will," "expect,"

"believe," "estimate," "anticipate," or similar terms. Because forward-looking statements involve certain risks, uncertainties and other factors over which the 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, changes in the rates of inflation and the effects of inflation, changes in interest rates, ongoing disruption in the financial

services industry caused by the recent failure and continuing uncertainty of various banks, changes in the Corporation's

cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, 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.

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CEO Comments

Successful community banking hinges on building strong customer relationships and continuing to look to the future when management is making decisions. During the second quarter of 2023, Franklin Financial Services Corporation and its wholly-owned bank subsidiary, F&M Trust, realized 6.3% loan growth, a slight increase in deposit balances, and improved non-interest income that came with growth in assets under management in our Investment & Trust division. Because of the strength of our second-quarter performance, we were able to look to the future and take short-term losses now that will have a positive effect on future earnings. Those losses include buying out a long-term lease (a $495,000 negative effect on current earnings) and selling low interest-rate investments (a $517,000 negative effect on earnings that, when reinvested, will have a less than 18-monthearn-back). With strong liquidity, a deposit base that is 91.3% insured or collateralized, an allowance for credit loss of 1.28%, negligible credit issues, and a loan-to-deposit ratio of 75%, we are positioned to grow earning assets as we expand in the South Central Pennsylvania and Northern Maryland markets.

There will continue to be challenges brought on by the response to the pandemic, which ultimately led to the well-documented rapid rise in interest rates and other market disruptions. We believe that it will take time, perhaps years, before the effects of these historic changes modulate and level set. However, we believe that there are opportunities during this time of disruption, and by adding key people to our team and stepping into the challenges, we will benefit the company and its shareholders in the years to come. While staying true to our mission, vision, and values, the company continues to evolve and maintain relevance. Part of our evolution is embracing the opportunities presented by the digital technologies available to us. In order to evolve, we are making investments of time and money that impact today's "bottom line," but we believe these investments will improve our future performance to the benefit of both our shareholders and our customers.

We thank you for your support and interest in our company. Sincerely,

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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.

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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 $1.74 billion as of June 30, 2023
• As of June 30, 2023, Franklin Financial reported $1.11 billion in brokerage and trust assets under management
• Franklin Financial stock is trading on the Nasdaq Stock Market (NASDAQ: FRAF)

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