UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25-14408 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25-1440 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Pennsylvania 25-1440803 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 20 South Main Street, Chamber ...

Part I - Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The report presents unaudited consolidated financial statements for the nine months ended September 30, 2020 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $1.51 billion, driven by increases in securities, loans, and deposits Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$1,511,213** | **$1,269,157** | | Total cash and cash equivalents | $71,160 | $83,828 | | Debt securities available for sale | $346,473 | $187,433 | | Net Loans | $1,005,807 | $922,609 | | **Total Liabilities** | **$1,371,639** | **$1,141,629** | | Total deposits | $1,336,749 | $1,125,392 | | Subordinate notes | $19,547 | $— | | **Total Shareholders' Equity** | **$139,574** | **$127,528** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income declined to $8.2 million for the nine-month period due to a higher provision for loan losses Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net Interest Income | $30,968 | $31,725 | | Provision for loan losses | $5,350 | $237 | | Noninterest Income | $10,903 | $10,342 | | Noninterest Expense | $28,821 | $28,010 | | **Net Income** | **$8,248** | **$11,720** | | Diluted Earnings Per Share | $1.89 | $2.66 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by $12.7 million, as financing activities funded investment purchases Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,375 | $14,566 | | Net cash (used in) provided by investing activities | ($242,245) | $12,000 | | Net cash provided by financing activities | $227,202 | $70,611 | | **(Decrease) increase in cash and cash equivalents** | **($12,668)** | **$97,177** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Disclosures cover CECL adoption, COVID-19 loan modifications, new debt, and regulatory capital ratios - The Corporation is preparing for the adoption of the new **CECL standard**, effective January 1, 2023, which is expected to result in earlier recognition of loan loss allowances[25](index=25&type=chunk) - As of September 30, 2020, the Bank has granted approximately **$83 million in loan deferrals** (about 8% of gross loans) in response to the COVID-19 pandemic under the CARES Act[53](index=53&type=chunk) - In Q3 2020, the Corporation issued **$20 million of unsecured subordinated debt** notes, structured to qualify as Tier 2 Capital[79](index=79&type=chunk) Regulatory Capital Ratios (Bank) as of Sep 30, 2020 | Ratio | Actual | Well-Capitalized Minimum | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.99% | 6.50% | | Tier 1 Risk-based Capital | 13.99% | 8.00% | | Total Risk-based Capital | 15.25% | 10.00% | | Tier 1 Leverage | 8.61% | 5.00% | [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition) Management analyzes financial results, focusing on the pandemic's impact on loan loss provisions and balance sheet changes [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Net income fell to $8.2 million due to a $5.4 million provision for loan losses related to the COVID-19 pandemic Year-to-Date Performance Summary (in thousands) | Metric | YTD Sep 30, 2020 | YTD Sep 30, 2019 | | :--- | :--- | :--- | | Net Income | $8,248 | $11,720 | | Net Interest Income | $30,968 | $31,725 | | Provision for Loan Losses | $5,350 | $237 | | Noninterest Income | $10,903 | $10,342 | | Noninterest Expense | $28,821 | $28,010 | - The year-to-date provision for loan loss expense increased to **$5.4 million** due to qualitative factor increases related to the economic effects of the COVID-19 pandemic[112](index=112&type=chunk) - A **tax benefit of $1.1 million** was recorded in Q2 2020 due to a CARES Act provision allowing the carryback of a 2018 Net Operating Loss (NOL)[115](index=115&type=chunk)[142](index=142&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) Total assets grew to $1.51 billion, funded by a surge in deposits and new subordinated debt - Net loans increased by **$83.2 million (9%)** in 2020, largely due to **$63.4 million in Paycheck Protection Program (PPP) loans**[117](index=117&type=chunk) - Deposits increased by **$211.4 million** since year-end 2019, attributed to government stimulus payments and lower consumer spending during the pandemic[119](index=119&type=chunk) - In Q3 2020, the Corporation issued **$20.0 million of subordinated notes** to enhance regulatory capital and for general corporate purposes[120](index=120&type=chunk)[197](index=197&type=chunk) [Loan Portfolio and Quality](index=40&type=section&id=Loan%20Portfolio%20and%20Quality) Loan quality deteriorated with nonperforming loans rising to 0.93%, driven by downgrades in the hotel portfolio Loan Portfolio Composition (in thousands) | Loan Class | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Residential real estate 1-4 family | $200,372 | $190,543 | | Residential real estate - construction | $14,214 | $13,323 | | Commercial real estate | $505,498 | $494,262 | | Commercial (incl. PPP) | $296,331 | $230,007 | | Consumer | $6,543 | $6,440 | | **Total Gross Loans** | **$1,022,958** | **$934,575** | Credit Quality Metrics | Metric | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Nonperforming loans to total gross loans | 0.93% | 0.42% | | Nonperforming assets to total assets | 0.63% | 0.31% | | Allowance for loan losses to nonperforming loans | 180.31% | 306.43% | - The **'watch list' of loans increased to $48.1 million** from $11.6 million at year-end 2019, primarily due to downgrades of hotel loans impacted by the pandemic[163](index=163&type=chunk) - As of Sep 30, 2020, the Bank had **$82.5 million in active loan deferrals** under the CARES Act, with the hotel sector comprising the largest portion at $60.8 million[175](index=175&type=chunk)[177](index=177&type=chunk) [Allowance for Loan Losses (ALL)](index=46&type=section&id=Allowance%20for%20Loan%20Losses%20(ALL)) The ALL increased to $17.2 million (1.68% of loans) due to higher qualitative risk factors for the pandemic - The year-to-date increase in the ALL was **primarily driven by the qualitative analysis** component of the calculation methodology[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - Due to the pandemic, the qualitative risk factor for **'economic conditions' was increased to 'very high'**, and modified loans received a separate, higher risk assessment[186](index=186&type=chunk) Allowance for Loan Losses (ALL) Summary | Metric | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | ALL Balance (in thousands) | $17,151 | $11,966 | | ALL as a % of gross loans | 1.68% | 1.28% | | ALL as a % of gross loans (ex-PPP) | 1.79% | N/A | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The Corporation maintains strong liquidity with $497.1 million in available funding and well-capitalized ratios Available Liquidity at Sep 30, 2020 (in thousands) | Liquidity Source | Available | | :--- | :--- | | Federal Home Loan Bank | $387,935 | | Federal Reserve Bank Discount Window | $24,786 | | Correspondent Banks | $21,000 | | Paycheck Protection Program Liquidity Facility | $63,395 | | **Total** | **$497,116** | - The Corporation's **stock repurchase plan was suspended** on March 19, 2020, and no shares were purchased during the third quarter[200](index=200&type=chunk)[233](index=233&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk exposure were reported for the first nine months of 2020 - There were **no material changes** in the Corporation's market risk exposure during the first nine months of 2020[218](index=218&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020 - The CEO and CFO concluded that as of September 30, 2020, the Corporation's **disclosure controls and procedures are effective**[219](index=219&type=chunk) - **No changes were made** during the quarter that materially affected internal control over financial reporting[219](index=219&type=chunk) Part II - Other Information [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Current litigation is not expected to have a material adverse effect on the Corporation's financial position - In management's opinion, the ultimate aggregate liability from all current litigation is **not expected to have a material adverse effect** on the Corporation's financial position[226](index=226&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) Key risks include the uncertain impact of the COVID-19 pandemic and potential liabilities from PPP lending - The **COVID-19 pandemic could materially and adversely impact the business** through increased credit losses, reduced revenue, and operational disruptions[229](index=229&type=chunk) - Participation in the PPP exposes the Corporation to **litigation risk** from applicants regarding its loan processing procedures[231](index=231&type=chunk) - There is a credit risk that the **SBA may deny its guarantee on PPP loans** if it finds deficiencies in origination, underwriting, or servicing[232](index=232&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The stock repurchase plan was suspended in March 2020, with no shares repurchased in the third quarter - The **stock repurchase plan was suspended** on March 19, 2020, and no share purchases were made during the third quarter of 2020[233](index=233&type=chunk) [Other Items and Exhibits](index=55&type=section&id=Other%20Items%20and%20Exhibits) The report confirms no defaults on senior securities and lists all filed exhibits, including certifications - The report confirms **no defaults on senior securities** and lists filed exhibits, including CEO/CFO certifications and XBRL data files[234](index=234&type=chunk)[236](index=236&type=chunk)

[Part I - FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the period ended June 30, 2020, show a significant increase in total assets to **$1.42 billion**, driven by loan growth (including **$62.5 million** in PPP loans) and a larger investment portfolio, while net income for the first six months of 2020 decreased to **$4.8 million** from **$7.2 million** in the prior year, primarily due to a **$5.0 million** provision for loan losses related to the COVID-19 pandemic's economic impact, with shareholders' equity increasing to **$134.8 million** [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets grew to **$1.423 billion** from **$1.269 billion** at year-end 2019, driven by a **$77.6 million** increase in gross loans to **$1.012 billion** and a **$98.8 million** increase in debt securities available for sale, funded by a **$148.0 million** increase in total deposits, which reached **$1.273 billion**, with shareholders' equity rising to **$134.8 million** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,423,111** | **$1,269,157** | **+$153,954** | | Net Loans | $995,583 | $922,609 | +$72,974 | | Debt securities available for sale | $286,217 | $187,433 | +$98,784 | | Total cash and cash equivalents | $58,599 | $83,828 | -$25,229 | | **Total Liabilities** | **$1,288,271** | **$1,141,629** | **+$146,642** | | Total deposits | $1,273,353 | $1,125,392 | +$147,961 | | **Total Shareholders' Equity** | **$134,840** | **$127,528** | **+$7,312** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the six months ended June 30, 2020, net income was **$4.8 million** (**$1.10** per diluted share), down from **$7.2 million** (**$1.63** per diluted share) in the same period of 2019, primarily driven by a significant increase in the provision for loan losses to **$5.0 million**, compared to **$399 thousand** in the prior year, while net interest income remained relatively stable at **$20.6 million** Six Months Ended June 30 (in thousands, except per share data) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Income | $20,585 | $20,890 | | Provision for loan losses | $4,975 | $399 | | Noninterest Income | $7,301 | $6,862 | | Noninterest Expense | $19,173 | $19,017 | | **Net Income** | **$4,786** | **$7,221** | | Diluted EPS | $1.10 | $1.63 | - The provision for loan losses for the six months ended June 30, 2020, increased dramatically to **$4.975 million** from just **$399 thousand** in the prior-year period, reflecting the anticipated economic impact of the COVID-19 pandemic[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2020, net cash used in investing activities was **$172.9 million**, primarily due to the purchase of investment securities, largely funded by net cash provided by financing activities of **$145.1 million**, driven by a significant increase in deposits, with net cash from operating activities at **$2.6 million**, resulting in an overall decrease in cash and cash equivalents of **$25.2 million** during the period Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,572 | $8,509 | | Net cash used in investing activities | ($172,941) | ($5,854) | | Net cash provided by financing activities | $145,140 | $26,835 | | **Net (Decrease) Increase in Cash** | **($25,229)** | **$29,490** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key disclosures include the delayed adoption of the CECL accounting standard to January 1, 2023, a loan portfolio growth to **$1.012 billion** (including **$62.5 million** in PPP loans), a significant increase in the allowance for loan losses to **$16.6 million** (**1.64%** of gross loans) due to the pandemic, approximately **$196 million** in granted loan deferrals, all capital ratios remaining above "well-capitalized" minimums, and a significant subsequent event of issuing **$20 million** in subordinated debt in August 2020 - The adoption of ASU 2016-13 (CECL) has been delayed and is now effective for the Corporation on January 1, 2023, with the company working with a third-party vendor and expecting to run the model in test mode in 2020[26](index=26&type=chunk) - As of June 30, 2020, the Bank has granted approximately **$196 million** in loan deferrals or modifications, representing about **19%** of gross loans, in response to the COVID-19 pandemic[54](index=54&type=chunk) - On August 4, 2020, the Corporation completed a subordinated debt offering, selling **$15.0 million** in 10-year notes and **$5.0 million** in 15-year notes, structured to qualify as Tier 2 capital[105](index=105&type=chunk)[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition) Management attributes the year-over-year decline in net income primarily to a **$5.0 million** provision for loan losses taken in H1 2020 due to the economic uncertainty from the COVID-19 pandemic, which increased the allowance for loan loss ratio to **1.64%**, while the company actively participated in the Paycheck Protection Program (PPP), funding **$62.8 million** in loans, contributing to a **$77.6 million** growth in the total loan portfolio and a **$148.0 million** increase in deposits, with management believing the Corporation's asset quality is stable and its capital position, with a total risk-based capital ratio of **15.93%**, is strong enough to meet the challenges [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Net income for Q2 2020 was **$3.1 million**, down from **$4.0 million** in Q2 2019, and for the first six months, net income was **$4.7 million**, down from **$7.2 million**, primarily driven by a **$5.0 million** year-to-date provision for loan losses due to the COVID-19 pandemic's economic impact, with net interest income seeing a slight decline as the net interest margin compressed to **3.39%** from **3.80%** year-over-year despite growth in earning assets, while noninterest income increased year-to-date due to a gain on a bank-owned life insurance policy, and noninterest expense remained relatively flat Key Performance Metrics (YTD) | Metric | June 30, 2020 | June 30, 2019 | | :--- | :--- | :--- | | Net Income (in millions) | $4.8 | $7.2 | | Diluted EPS | $1.10 | $1.63 | | Net Interest Margin | 3.39% | 3.80% | | Provision for Loan Loss (in millions) | $5.0 | $0.4 | | Return on average assets | 0.73% | 1.18% | | Return on average equity | 7.37% | 12.02% | - The Corporation recorded an income tax benefit of **$1.1 million** in Q2 2020 due to the CARES Act, which allows for the carryback of a 2018 Net Operating Loss (NOL) to a period with a higher statutory tax rate (**34%** vs. **21%**)[115](index=115&type=chunk)[128](index=128&type=chunk) [Financial Condition](index=38&type=section&id=Financial%20Condition) As of June 30, 2020, the Corporation's financial condition remained strong despite economic headwinds, with total assets growing to **$1.423 billion**, the loan portfolio increasing by **$77.6 million** since year-end largely due to **$62.5 million** in PPP loans, the allowance for loan losses significantly bolstered to **1.64%** of gross loans, deposits surging by **$148.0 million** enhancing liquidity, shareholders' equity growing to **$134.8 million**, and all regulatory capital ratios exceeding "well-capitalized" thresholds - The loan portfolio grew by **$77.6 million** (**8.3%**) since year-end 2019, primarily driven by **$62.5 million** in Paycheck Protection Program (PPP) loans[115](index=115&type=chunk)[158](index=158&type=chunk) - Total deposits increased by **$148.0 million** (**13.1%**) since year-end 2019, with a significant portion of the growth in noninterest-bearing and low-cost checking accounts, and approximately **$36.0 million** of the increase attributed to remaining PPP loan proceeds[191](index=191&type=chunk)[192](index=192&type=chunk) - The Corporation suspended its stock repurchase plan on March 19, 2020, having repurchased **36,401 shares** in the first quarter of 2020 before the suspension[199](index=199&type=chunk)[228](index=228&type=chunk) [Loan Quality and Allowance for Loan Losses](index=40&type=section&id=Loan%20Quality%20and%20Allowance%20for%20Loan%20Losses) Overall loan quality remained stable, with the nonperforming loans to gross loans ratio at **0.41%**, but in response to the pandemic, the Bank increased its Allowance for Loan Losses (ALL) by **$4.6 million** since year-end to **$16.6 million**, or **1.64%** of gross loans, driven by a significant increase in the qualitative component of the ALL calculation reflecting heightened economic risk, and also implemented widespread loan modifications, granting deferrals on approximately **$196 million** (**19%** of gross loans), with the largest exposures in the Real Estate, and Accommodation and Food Services sectors Loan Quality Ratios | Metric | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Nonperforming loans / gross loans | 0.41% | 0.42% | | Allowance for loan losses / gross loans | 1.64% | 1.28% | | Allowance for loan losses / nonperforming loans | 397.86% | 306.43% | - The Bank granted loan deferrals totaling **$196.5 million**, with the largest concentrations in Real Estate and Rental/Leasing (**$72.4 million**) and Accommodation and Food Services (**$70.8 million**)[174](index=174&type=chunk)[176](index=176&type=chunk) - The increase in the Allowance for Loan Losses was primarily due to changes in the qualitative analysis, including increasing the risk factor for economic conditions to "very high" and assigning a higher risk score to the portfolio of modified loans[185](index=185&type=chunk) [Liquidity](index=50&type=section&id=Liquidity) The Corporation maintains a strong liquidity position, with total available liquidity of **$476.7 million** at June 30, 2020, primarily from borrowing capacity from the FHLB (**$372.2 million**) and the Federal Reserve, and to support liquidity during the pandemic, the Bank is participating in the Paycheck Protection Program Liquidity Facility (PPPLF), which provides low-cost funding for the **$62.5 million** in PPP loans it originated, preserving its traditional liquidity sources Available Liquidity Sources (in thousands) | Source | Available Capacity | | :--- | :--- | | Federal Home Loan Bank | $372,200 | | Federal Reserve Bank Discount Window | $21,000 | | Correspondent Banks | $21,000 | | Paycheck Protection Program Liquidity Facility | $62,513 | | **Total** | **$476,713** | - The Bank is utilizing the Paycheck Protection Program Liquidity Facility (PPPLF) to fund its PPP loans, which allows it to preserve its normal liquidity sources like the FHLB[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Corporation reported no material changes in its exposure to market risk during the six months ended June 30, 2020 - There were no material changes in the Corporation's exposure to market risk during the six months ended June 30, 2020[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2020, the Chief Executive Officer and Chief Financial Officer concluded that the Corporation's disclosure controls and procedures are effective[216](index=216&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting[216](index=216&type=chunk) [Part II - OTHER INFORMATION](index=53&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The Corporation is involved in litigation incidental to its business but does not anticipate that the ultimate liability from these proceedings will have a material adverse effect on its financial position, and no material proceedings by governmental authorities are pending or threatened - In management's opinion, the ultimate aggregate liability from all current litigation is not expected to have a material adverse effect on the Corporation's financial position[222](index=222&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) A significant new risk factor has been identified related to the COVID-19 pandemic, which has negatively impacted global, national, and local economies, leading to potential adverse effects on the company's revenue, credit losses, and loan portfolio quality, with the extent of the impact highly uncertain and dependent on future developments, including the duration of the pandemic and government responses - The COVID-19 pandemic is identified as a significant risk factor that could materially and adversely impact the business, including increased credit losses, reduced demand for products and services, and potential impairments on securities[225](index=225&type=chunk) - The ultimate impact of the pandemic on business operations and financial condition is highly uncertain and depends on future developments, such as the scope and duration of the pandemic and related government actions[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation's 2019 stock repurchase plan, authorized for up to **150,000 shares**, was suspended on March 19, 2020, and no shares were repurchased during the second quarter of 2020 - The Corporation suspended its stock repurchase plan on March 19, 2020, and made no share purchases during the second quarter of 2020[228](index=228&type=chunk) [Item 3. Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[229](index=229&type=chunk) [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not Applicable - Not Applicable[229](index=229&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) None - None[230](index=230&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including Articles of Incorporation, Bylaws, CEO/CFO certifications (Rule 13a-14(a) and Section 1350), and Interactive Data Files (XBRL) - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act rules and Interactive Data Files (XBRL)[230](index=230&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 Securities registered pursuant to Section 12(b) of the Act: | Title of class | Symbol | Name of exchange on which r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act NONE PENNSYLVANIA 25-1440803 (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation or organization) 17201-0819 For the t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to___________ Commission file number 001-38884 FRANKLIN FINANCIAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) PENNSYLVANIA 25-14408 ...