SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 26, 1996
FRANKLIN FINANCIAL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 0-12126 23-144083
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Ident. No.)
20 South Main Street, Chambersburg, PA 17201
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (717) 264-6116
N/A
(Former name or former address, if changes since last report)
Item 5. Other Events.
The joint press release of Farmers and Merchants Trust Company of
Chambersburg ("F&M Trust") a wholly owned subsidiary of Franklin Financial
Services Corporation, and PNC Bank dated June 26, 1996 relating to an
agreement in principle by F&M Trust to purchase four branch facilities and
retail deposit customer lists from PNC Bank and attached hereto as Exhibit 99
is incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
The following exhibits are filed herewith:
Number Description Page Number
99 Joint press release, dated June 26, 3
1996, of Farmers and Merchants
Trust Company of Chambersburg
and PNC Bank
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FRANKLIN FINANCIAL SERVICES CORPORATION
/s/ William E. Snell, Jr.
By:
William E. Snell, Jr., President
and Chief Executive Officer
Dated: July 3, 1996
EXHIBIT 99
Joint News Release
PNC Bank, F&M Trust Announce Branch Location Sales Agreement
Camp Hill, PA, June 26, 1996-Bruce E. Walton, executive vice president of PNC
Bank, Central PA, and William E. Snell, Jr, president and chief executive
officer of Farmers and Merchants Trust Company of Chambersburg (F&M Trust)
today jointly announced that the companies have agreed in principle for F&M
Trust to purchase the physical facilities of the following PNC Bank locations:
Boiling Springs, Newville, Shippensburg and Chambersburg.
The sales agreement would affect the respective banking officers in the
following manner:
The Boiling Springs branch, 3 East First Street, Boiling Springs,
will remain open past the originally announced closing date of
June 28, 1996 and will continue to operate as PNC Bank until
further notice. F&M Trust has plans to continue operations at
the Boiling Springs location without interruption.
The Newville branch, 9 Big Spring Avenue, Newville and the
Shippensburg branch, 13 Shippensburg Shopping Center, Shippensburg,
will continue to operate as PNC until further notice. F&M Trust
intends to continue operations at these locations without
interruption.
F&M Trust plans to service Chambersburg area customers through its
Memorial Square office, which is located about a block away from the
PNC Bank Chambersburg branch, 143 East Queen Street, Chambersburg,
and through its network of office locations throughout the
Chambersburg area.
Under the terms of the agreement, F&M Trust would purchase the physical
branches and retail deposit customer lists for each of the respective
locations. Deposits and loans of the branch are not included in the sale.
Financial terms of the agreement were not disclosed. Customers would have
the choice of either moving their accounts to F&M Trust or continuing to bank
with PNC Bank.
Agreements like this one allow PNC Bank to focus on the strategic
realignment of its branch network. F&M Trust is provided with the opportunity
to expand its market service area beyond Franklin County into Cumberland
County. Communities and customers of these offices will not be inconvenienced
with the loss of a local branch and will be offered a comparable array of
services as a result of this agreement.
The proposed transaction is subject to a number of conditions, including
reaching a definitive agreement and securing all necessary bank and regulatory
approvals. Consummation of this transaction, assuming that approvals are
cleared according to schedule, is expected to occur in late October 1996.
F&M Trust, a community bank headquartered in Chambersburg with nine offices
located throughout Franklin County in Chambersburg, Marion, Mont Alto, and
Waynesboro, is the sole banking subsidiary of Franklin Financial Services
Corporation. Total assets for the bank holding company on March 31, 1996 were
$320 million.
PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
financial services organizations in the United States, with banking subsidiaries
in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana, Massachusetts,
and Florida. Its major businesses include corporate banking; consumer banking;
mortgage banking; real estate banking; and asset management.
CONTACT: Rob Rutz, PNC Bank Public Relations Mgr. (717) 730-2452
Kenneth Ditzler, F&M Trust SVP-Marketing Mgr (717) 261-3665
