Exhibit 99.1

Franklin Financial announces regular 3^rd Quarter dividend

(CHAMBERSBURG, PA) The Board of Directors of Franklin Financial Services Corporation declared a $.27 per share regular cash dividend for the third quarter of 2009.

Total regular cash dividends paid during the first three quarters of 2009 will be $.81 per share, compared to $.80 per share paid during the same period in 2008, an increase of 1.3%. The third quarter cash dividend will be paid on August 29, 2009 to shareholders of record at the close of business on August 7.

Franklin Financial is the largest independent, locally owned and operated bank holding company in Franklin County with assets of approximately $967 million. Its wholly-owned subsidiary, F&M Trust Company, has twenty-five community banking offices located throughout Cumberland, Franklin, Fulton, and Huntingdon Counties in Boiling Springs, Carlisle, Chambersburg, Greencastle, Hustontown, Marion, McConnellsburg, Mont Alto, Newville, Orbisonia, Shippensburg, St. Thomas, Warfordsburg and Waynesboro. Franklin Financial stock is traded on the over-the-counter market under the symbol FRAF.