Franklin Financial Services : FRAF Investor Presentation - January 2021

Investor Presentation

Fourth Quarter 2020 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.

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CEO Comments

We finished 2020 with strong fourth quarter results and net income for the year that was the second highest in the Company's history, second only to our performance in 2019. While we started the year without realizing the coming impact of Covid-19, the successful implementation of our existing Pandemic Policy and Procedures plan, our strong capital base made stronger by the sale of $20 million in sub debt, our strong customer base and the determination, competence and creativity of our team of employees carried us through the year successfully.

Despite the challenges, there have been positives to the Company as a result of the situations caused by the Pandemic. The conditions we had to operate under have helped propel us forward by forcing us to adopt more digital resources and rethink how we do business, which will benefit our customers and shareholders We have been pleased with how we responded to the Paycheck Protection Program and the growth of our residential mortgage team which resulted in record mortgage originations and fee income.

While our stock performance for the year was disappointing it has been nice to see our stock price start to recover in the fourth quarter as the investors began to find opportunities in the financial services sector and in Franklin Financial Services Corp. We will continue to do what we can to support the value of our shares throughout the coming year. Our short-term challenges going forward will be loan portfolio growth, while maintaining good credit quality, and improving the bank's overall operating efficiency. Given the strength of the Bank's balance sheet and how well the Bank's team of employees handled the challenges of 2020, I believe we are well positioned to be successful in 2021.

The following investor presentation being released on Form 8(k) is a supplement to our quarterly earnings release. While it remains very difficult to give clear guidance for 2021, we can give you insight to where we are today and what we are doing for tomorrow. We appreciate the support of our shareholders and I am available to you at any time to listen to your concerns and ideas and answer your questions to the best of my ability.

Sincerely,

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Overview of Franklin Financial

• Franklin Financial, which was formed in 1983, is the largest independent, locally owned and operated bank 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 $1.5 billion as of December 31, 2020
• As of December 31, 2020, Franklin Financial reported $949.0 million in brokerage and trust assets under management
• Franklin Financial stock is trading on the Nasdaq Stock Market (NASDAQ: FRAF)

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