content: 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)   June 26, 1996               
                                       
                                  
                                  
                FRANKLIN FINANCIAL SERVICES CORPORATION                   
       (Exact name of registrant as specified in its charter)
                                  
  
       Pennsylvania                 0-12126               23-144083 
   (State or other jurisdiction   (Commission         (IRS Employer
   of incorporation)         File Number)          Ident. 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)
  
  
  
  
  
  
  
  
  
  
  
  
  
  Item 5.      Other Events.
  
       The joint press release of Farmers and Merchants Trust Company of
  Chambersburg ("F&M Trust") a wholly owned subsidiary of Franklin Financial
  Services Corporation, and PNC Bank dated June 26, 1996 relating to an
  agreement in principle by F&M Trust to purchase four branch facilities and
  retail deposit customer lists from PNC Bank and attached hereto as Exhibit 99
  is incorporated by reference herein.
  
  Item 7.      Financial Statements and Exhibits.
  
              (c)    Exhibits
  
       The following exhibits are filed herewith:
  
       Number              Description              Page Number
  
         99      Joint press release, dated June 26,      3
                 1996, of Farmers and Merchants
                 Trust Company of Chambersburg
                 and PNC Bank
  
                           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
  
                               /s/ William E. Snell, Jr.
                           By:                                       
                                William E. Snell, Jr., President
                                  and Chief Executive Officer
  
  
  
  Dated: July 3, 1996
  
  
  
  
  
  
  
  
  EXHIBIT 99
  
  
  Joint News Release
  
    PNC Bank, F&M Trust Announce Branch Location Sales Agreement
  
  Camp Hill, PA, June 26, 1996-Bruce E. Walton, executive vice president of PNC
  Bank, Central PA, and William E. Snell, Jr, president and chief executive
  officer of Farmers and Merchants Trust Company of Chambersburg (F&M Trust)
  today jointly announced that the companies have agreed in principle for F&M
  Trust to purchase the physical facilities of the following PNC Bank locations:
  Boiling Springs, Newville, Shippensburg and Chambersburg.
       
       The sales agreement would affect the respective banking officers in the
  following manner:
            
            The Boiling Springs branch, 3 East First Street, Boiling Springs,
            will remain open past the originally announced closing date of
            June 28, 1996 and will continue to operate as PNC Bank until
            further notice.  F&M Trust has plans to continue operations at 
            the Boiling Springs location without interruption.
       
            The Newville branch, 9 Big Spring Avenue, Newville and the 
            Shippensburg branch, 13 Shippensburg Shopping Center, Shippensburg, 
            will continue to operate as PNC until further notice.  F&M Trust 
            intends to continue operations at these locations without 
            interruption.
  
            F&M Trust plans to service Chambersburg area customers through its
            Memorial Square office, which is located about a block away from the 
            PNC Bank Chambersburg branch, 143 East Queen Street, Chambersburg, 
            and through its network of office locations throughout the 
            Chambersburg area.
  
       Under the terms of the agreement, F&M Trust would purchase the physical
  branches and retail deposit customer lists for each of the respective 
  locations. Deposits and loans of the branch are not included in the sale.  
  Financial terms of the agreement were not disclosed.  Customers would have 
  the choice of either moving their accounts to F&M Trust or continuing to bank 
  with PNC Bank.
       
       Agreements like this one allow PNC Bank to focus on the strategic
  realignment of its branch network.  F&M Trust is provided with the opportunity
  to expand its market service area beyond Franklin County into Cumberland 
  County. Communities and customers of these offices will not be inconvenienced 
  with the loss of a local branch and will be offered a comparable array of 
  services as a result of this agreement.
       
       The proposed transaction is subject to a number of conditions, including
  reaching a definitive agreement and securing all necessary bank and regulatory
  approvals.  Consummation of this transaction, assuming that approvals are 
  cleared according to schedule, is expected to occur in late October 1996.
       
       F&M Trust, a community bank headquartered in Chambersburg with nine offices
  located throughout Franklin County in Chambersburg, Marion, Mont Alto, and
  Waynesboro, is the sole banking subsidiary of Franklin Financial Services
  Corporation.  Total assets for the bank holding company on March 31, 1996 were
  $320 million.
       
       PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
  financial services organizations in the United States, with banking subsidiaries
  in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana, Massachusetts,
  and Florida.  Its major businesses include corporate banking; consumer banking;
  mortgage banking; real estate banking; and asset management.
       
  CONTACT: Rob Rutz, PNC Bank Public Relations Mgr. (717) 730-2452 
           Kenneth Ditzler, F&M Trust SVP-Marketing Mgr (717) 261-3665
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metadata_filer: {"company-data": {"conformed-name": "FRANKLIN FINANCIAL SERVICES CORP /PA/", "cik": "0000723646", "assigned-sic": "6022", "irs-number": "251440803", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-12126", "film-number": "96590690"}, "business-address": {"street1": "P O BOX T", "city": "CHAMBERSBURG", "state": "PA", "zip": "17201-0819", "phone": "7172646116"}, "mail-address": {"street1": "P O BOX T", "city": "CHAMBERSBURG", "state": "PA", "zip": "17201"}}
text: 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)   June 26, 1996               
                                       
                                  
                                  
                FRANKLIN FINANCIAL SERVICES CORPORATION                   
       (Exact name of registrant as specified in its charter)
                                  
  
       Pennsylvania                 0-12126               23-144083 
   (State or other jurisdiction   (Commission         (IRS Employer
   of incorporation)         File Number)          Ident. 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)
  
  Item 5.      Other Events.
  
       The joint press release of Farmers and Merchants Trust Company of
  Chambersburg ("F&M Trust") a wholly owned subsidiary of Franklin Financial
  Services Corporation, and PNC Bank dated June 26, 1996 relating to an
  agreement in principle by F&M Trust to purchase four branch facilities and
  retail deposit customer lists from PNC Bank and attached hereto as Exhibit 99
  is incorporated by reference herein.
  
  Item 7.      Financial Statements and Exhibits.
  
              (c)    Exhibits
  
       The following exhibits are filed herewith:
  
       Number              Description              Page Number
  
         99      Joint press release, dated June 26,      3
                 1996, of Farmers and Merchants
                 Trust Company of Chambersburg
                 and PNC Bank
  
                           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
  
                               /s/ William E. Snell, Jr.
                           By:                                       
                                William E. Snell, Jr., President
                                  and Chief Executive Officer
  
  Dated: July 3, 1996
  
  EXHIBIT 99
  
  Joint News Release
  
    PNC Bank, F&M Trust Announce Branch Location Sales Agreement
  
  Camp Hill, PA, June 26, 1996-Bruce E. Walton, executive vice president of PNC
  Bank, Central PA, and William E. Snell, Jr, president and chief executive
  officer of Farmers and Merchants Trust Company of Chambersburg (F&M Trust)
  today jointly announced that the companies have agreed in principle for F&M
  Trust to purchase the physical facilities of the following PNC Bank locations:
  Boiling Springs, Newville, Shippensburg and Chambersburg.
       
       The sales agreement would affect the respective banking officers in the
  following manner:
            
            The Boiling Springs branch, 3 East First Street, Boiling Springs,
            will remain open past the originally announced closing date of
            June 28, 1996 and will continue to operate as PNC Bank until
            further notice.  F&M Trust has plans to continue operations at 
            the Boiling Springs location without interruption.
       
            The Newville branch, 9 Big Spring Avenue, Newville and the 
            Shippensburg branch, 13 Shippensburg Shopping Center, Shippensburg, 
            will continue to operate as PNC until further notice.  F&M Trust 
            intends to continue operations at these locations without 
            interruption.
  
            F&M Trust plans to service Chambersburg area customers through its
            Memorial Square office, which is located about a block away from the 
            PNC Bank Chambersburg branch, 143 East Queen Street, Chambersburg, 
            and through its network of office locations throughout the 
            Chambersburg area.
  
       Under the terms of the agreement, F&M Trust would purchase the physical
  branches and retail deposit customer lists for each of the respective 
  locations. Deposits and loans of the branch are not included in the sale.  
  Financial terms of the agreement were not disclosed.  Customers would have 
  the choice of either moving their accounts to F&M Trust or continuing to bank 
  with PNC Bank.
       
       Agreements like this one allow PNC Bank to focus on the strategic
  realignment of its branch network.  F&M Trust is provided with the opportunity
  to expand its market service area beyond Franklin County into Cumberland 
  County. Communities and customers of these offices will not be inconvenienced 
  with the loss of a local branch and will be offered a comparable array of 
  services as a result of this agreement.
       
       The proposed transaction is subject to a number of conditions, including
  reaching a definitive agreement and securing all necessary bank and regulatory
  approvals.  Consummation of this transaction, assuming that approvals are 
  cleared according to schedule, is expected to occur in late October 1996.
       
       F&M Trust, a community bank headquartered in Chambersburg with nine offices
  located throughout Franklin County in Chambersburg, Marion, Mont Alto, and
  Waynesboro, is the sole banking subsidiary of Franklin Financial Services
  Corporation.  Total assets for the bank holding company on March 31, 1996 were
  $320 million.
       
       PNC Bank Corp., headquartered in Pittsburgh, is one of the largest
  financial services organizations in the United States, with banking subsidiaries
  in Pennsylvania, New Jersey, Delaware, Ohio, Kentucky, Indiana, Massachusetts,
  and Florida.  Its major businesses include corporate banking; consumer banking;
  mortgage banking; real estate banking; and asset management.
       
  CONTACT: Rob Rutz, PNC Bank Public Relations Mgr. (717) 730-2452 
           Kenneth Ditzler, F&M Trust SVP-Marketing Mgr (717) 261-3665