Revenue during the quarter grew 3.26 percent to $11.50 million from $11.13 million in the previous year period. Net interest income for the quarter rose 8.76 percent over the prior year period to $8.96 million. Non-interest income for the quarter fell 5.02 percent over the last year period to $2.99 million.

Franklin Financial Services Corp has made provision of $0.45 million for loan losses during the quarter, up 80 percent from $0.25 million in the same period last year.

Net interest margin improved 3 basis points to 3.62 percent in the quarter from 3.59 percent in the last year period.

"In a transition year for the bank, we closed 2016 with very strong core performance and we are encouraged by the opportunities that lie ahead." said Timothy G. Henry, president and chief executive officer of F&M Trust. "We continued our growth in commercial loans and noninterest-bearing deposits and we expect new relationships to develop with aggressive marketing of our Investment and Trust Services team."

Return on average assets moved down 26 basis points to 0.74 percent in the quarter from 1 percent in the last year period. At the same time, return on average equity decreased 248 basis points to 7.04 percent in the quarter from 9.52 percent in the last year period.

Meanwhile, nonperforming assets to total assets was 0.92 percent in the quarter, down from 1.18 percent in the last year period.

Book value per share was $26.99 for the quarter, up 3.61 percent or $0.94 compared to $26.05 for the same period last year.