8-K

UNITED STATES

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) January 29, 2008 (January 28, 2008)

FRANKLIN FINANCIAL SERVICES CORPORATION

(Exact name of registrant as specified in its new charter)

Pennsylvania	0-12126	23-144083
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Indent. 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)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a —12 under the Exchange Act (17 CFR 240.14a —12)

o Pre-commencement communications pursuant to Rule 14d — 2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e — 4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01  Other Events.

The news release of Franklin Financial Services Corporation, dated January 28, 2008 and attached as Exhibit 99.1,  announces its earnings for the quarter ended  December  31, 2007 and is incorporated by reference herein.

Item 9.01  Financial Statements and Exhibits.

(c)  Exhibits.

The following exhibits are filed herewith:

Number	Description	Page Number
99 .1	Press Release, dated January 28, 2008	3
	of Franklin Financial Services Corporation

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
By:	/s/ William E. Snell, Jr.
William E. Snell, Jr., President
and Chief Executive Officer

Dated: January 29, 2008

EX-99.1

Exhibit 99.1

News Release — January 28, 2008

Franklin Financial Services Corporation

Kenneth C. Ditzler (717) 261-3665

Franklin Financial posts record earnings for quarter, year

(Chambersburg) Franklin Financial Services Corporation, the bank holding company of F&M Trust, reported record earnings of $9,256,000 for 2007 compared to 2006 earnings of $7,570,000, an increase of 22.3%. Net income for the quarter ending December 31, 2007 was $2,576,000, a record quarter for the company.  It marked the sixth consecutive quarter that the bank’s earnings exceeded $2 million.  Earnings for the quarter represent a 22.5% increase when compared to 2006 fourth quarter earnings of $2,102,000.

On a per share basis, diluted earnings were $.67 and $2.40 for the quarter and twelve months in 2007 compared to $.55 and $2.10 for the same periods in 2006.

Total assets at December 31, 2007 grew by 2.6% over totals a year earlier to $820.4 million.  Average deposits and repurchase agreements and average loan outstandings increased by 16.4% and 19.5%, respectively.  At year-end, net loans were up 8.2% to $564.3 million, while total deposits and repurchase agreements remained relatively unchanged at $674.4 million.  In addition, the market value of trust assets under management declined by 5.6% to $507.9 million at December 31, 2007.  This decline was largely attributable to a short-term deposit into a custody account at year-end 2006 that was subsequently withdrawn, along with the distribution of two large estates during 2007.

Franklin Financial is an independent, locally owned and operated bank holding company headquartered in Chambersburg.  Its wholly-owned subsidiary, F&M Trust, has twenty-four community banking offices throughout Cumberland, Franklin, Fulton and Southern Huntingdon counties located in Boiling Springs, Carlisle, Chambersburg, Greencastle, Hustontown, McConnellsburg, Mont Alto, Marion, Newville, Orbisonia, Shippensburg, St. Thomas, Warfordsburg and Waynesboro. Franklin Financial stock is traded on the over-the-counter market under the symbol FRAF.