CHAMBERSBURG, Pa., July 29, 2021 /PRNewswire/ -- Franklin
Financial Services Corporation (NASDAQ: FRAF), and its subsidiary
F&M Trust, recently completed the purchase of the former
Danfoss manufacturing facility located in both the Borough of
Chambersburg and Guilford
Township. The state-of-the-art facility, which is three miles from
the bank's current location, is the future site of the bank's new
corporate headquarters and operations center.
The bank purchased the facility for $7.0
million from CFDC, LLC, an entity jointly owned by the
Franklin County Area Development Corp. (FCADC) and Chambersburg
Area Development Corp. (CADC). The 67,000 square-foot Gold LEED
building, constructed in 2009, is located at 1500 Nitterhouse
Drive, Chambersburg, on an 11-acre
parcel.
To prepare for its future move, F&M Trust sold its 41,000
square-foot corporate headquarters located at 20 South Main Street,
for $3.3 million to CFDC and entered
into a lease agreement for the 20 South Main Street property until
renovations are completed and the move to the new building occurs
in late 2022. Renovation costs are currently estimated at
$8.7 million. The one-story building
will house roughly 145 employees with the capacity for additional
employees as the bank continues to grow. The Bank is expected to
recognize a pre-tax gain of $1.8
million on the sale of its property in the third quarter of
2021. The sale / purchase transaction was structured as a 1031
Exchange for federal income tax purposes.
"Due to the pandemic, we decided to temporarily put our plans on
hold so that we could focus on other priorities, including taking
care of our customers and communities. It was always our intention
to move forward with this project, and we are excited to complete
this phase," said Timothy G. Henry,
President and CEO of F&M Trust. "The purchase of this facility
marks the latest step in the growth of F&M Trust as we are
taking decisive action to build for the future. I appreciate the
support and patience exhibited by the CFDC, the bank's board of
directors and employees, as well as many others, and I look forward
to the expansion of our bank's reach and capabilities."
"After 18 months of Covid induced delays, we are finally able to
consummate our investment in downtown Chambersburg. The
purchase of the F&M Trust building at 20 South Main Street
represents a $3.3 million investment
in the continued revitalization of downtown Chambersburg," said L. Michael Ross, President of FCADC.
"We are fortunate to be in a unique position to assist F&M
Trust with their future expansion in Franklin County," said Stephen Christian, President and Executive
Director of CADC and the Greater
Chambersburg Chamber of Commerce. "No other financial
institution is more thoroughly woven into the fabric of our
community than F&M Trust."
About Franklin County Area Development
Corporation
Established in 1986, FCADC formulates,
implements, and promotes a comprehensive countywide economic
development strategy. The corporation strives to create an
atmosphere that nourishes planned growth and family sustainable
employment opportunities. Since its establishment, FCADC has
successfully facilitated more than 760 projects throughout
Franklin County, resulting in more
than $2.2 billion in capital
expenditures and creating/retaining more than 50,000 jobs.
About Chambersburg Area Development
Corporation
Founded in 1960, CADC aims to improve the
economic health and quality of life of the Chambersburg Area by bringing major employers
to the area. CADC owns and operates an extensive commercial and
industrial real-estate portfolio providing quality building
solutions for dozens of businesses in Chambersburg and Franklin County. CADC is an affiliate of the
Greater Chambersburg Chamber of
Commerce and is linked to the creation of more than 2,800 jobs and
over $3 million in local payroll and
property tax revenues annually.
About F&M Trust
A subsidiary of Franklin Financial
Services Corporation, F&M Trust is an independent community
bank headquartered in Chambersburg. With approximately $1.6 billion in assets, F&M Trust has 21
community offices in Franklin,
Cumberland, Fulton, and Huntingdon counties.
Please visit fmtrust.bank for more information.
Certain statements appearing herein which are not historical
in nature are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements refer to a future period or periods,
reflecting management's current views as to likely future
developments, and use words "may," "will," "expect," "believe,"
"estimate," "anticipate," or similar terms. Because forward-looking
statements involve certain risks, uncertainties and other factors
over which Franklin Financial Services Corporation has no direct
control, actual results could differ materially from those
contemplated in such statements. These factors include (but are not
limited to) the following: general economic conditions particularly
with regard to the negative impact of severe, wide-ranging and
continuing disruptions caused by the spread of the coronavirus
COVID-19 pandemic and responses thereto, changes in interest rates,
changes in the Corporation's cost of funds, changes in government
monetary policy, changes in government regulation and taxation
of financial institutions, changes in the rate of inflation,
changes in technology, the intensification of competition within
the Corporation's market area, and other similar factors.
We caution readers not to place undue reliance on these
forward-looking statements. They only reflect management's analysis
as of this date. The Corporation does not revise or update these
forward-looking statements to reflect events or changed
circumstances. Please carefully review the risk factors described
in other documents the Corporation files from time to time with the
SEC, including the Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, and any Current Reports on Form 8-K.
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SOURCE F&M Trust