723646--3/15/2007--FRANKLIN_FINANCIAL_SERVICES_CORP

related topics

{stock, price, share}

{provision, law, control}

{condition, economic, financial}

{loan, real, estate}

{competitive, industry, competition}

{loss, insurance, financial}

{personnel, key, retain}

{property, intellectual, protect}

{cost, regulation, environmental}

Risk Factors Relating to the Corporation Our focus on commercial loans may increase the risk of substantial credit losses. Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio. Our lending limit is smaller than We depend on the services of our Management team and the unexpected loss of any member of the Management team could disrupt our operations and may adversely affect our operations. We face strong competition in our primary market areas. We are affected by local, regional and national economic conditions over which we have no control. Changes in interest rates could have an adverse impact upon our results of operations. We are subject to extensive governmental regulation. We may need to spend significant money to keep up with technology so we can remain competitive. Risks relating to the acquisition of Fulton Bancshares Corporation. The Corporation may not be able to recognize the anticipated cost savings from the acquisition. Likewise, the Corporation s ability to capture additional market share in the former Fulton market may not be realized or may take longer to realize than anticipated. If any of these events occur, the effects on the Corporation s operations and financial results could be significant. Risk Factors Relating to the Common Stock Investments in our common stock are not insured by the FDIC. There is a limited trading market for our common stock. The Bank s ability to pay dividends to the Corporation is subject to regulatory limitations that may affect the Corporation s ability to pay dividends to our shareholders.

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723646--3/15/2007--FRANKLIN_FINANCIAL_SERVICES_CORP_/PA/