Franklin Financial Services Corporation, the bank holding company of F&M Trust Company, reported earnings of $1,418,000 for the first three months of 2002.

This represents an increase of 6.3% when compared to earnings of $1,334,000 for the quarter ended March 31, 2001. On a per share basis, basic earnings were $.53 for the first three months in 2002 compared to $.50 for the same period in 2001, a 6.0% increase.

Total assets at March 31, 2002 grew by 5.9% over totals a year earlier to a record $515,262,000. Net loans were up 4.6%, and total deposits and repurchase agreements increased by 1.0%. The market value of trust assets under management remained relatively flat at $377,167,000 on March 31, 2002.

Franklin Financial is the bank holding company for F&M Trust, a locally-owned and operated community bank with thirteen community offices throughout Franklin and Cumberland Counties in Boiling Springs, Carlisle, Chambersburg, Marion, Mont Alto, Newville, Shippensburg and Waynesboro.