Franklin Financial Services Corporation Annual Report 2017

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FY2017 Annual Report · Franklin Financial Services Corporation

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A N N U A L R E P O R T

M M X V I I

P.O. Box 6010 | Chambersburg, PA 17201

888.264.6116 |

Uncommon Independence

“We need people who pay attention
to the local areas,
and F&M Trust certainly does that.”

Jeremy Bowersox

Grove-Bowersox Funeral Home, Inc.

Table of Contents

Shareholder Letter .........................................................................................................................................2

Stability Graphics .......................................................................................................................................5

Consolidated Financial Highlights ............................................................................................... 7

Snyder’s Gateway, Inc. ......................................................................................................................8

Board of Directors ...........................................................................................................................9

Public Library Systems ......................................................................................................... 10

2017 Community Highlights ...........................................................................................12

C&J Catering ........................................................................................................................13

Senior Management .................................................................................................... 14

Grove-Bowersox Funeral Home, Inc...............................................................15

Officers ..........................................................................................................................16

BWise Trailers .......................................................................................................19

Locations .............................................................................................................20

“I’m always impressed with F&M Trust’s
generosity. Without them, we wouldn’t
be able to offer the programs that
we do.”

Jamie Brambley
Fulton County Library

Cover: Snyder’s Gateway, Inc.
Top to bottom: BWise Trailers; C&J Catering;
Bosler Memorial Library; Grove-Bowersox Funeral Home, Inc.

Shareholder Letter

DEAR FELLOW SHAREHOLDERS,

Uncommon. When I think about 2017 it was an uncommon year

positive manner without having to make changes to our

for everyone. Whether you are talking about politics, weather, the

successful operating strategies.

stock market, taxes or the myriad of new social issues that we

saw in 2017, it was an uncommon year. And, at Franklin Financial

Services Corporation and F&M Trust, you can also find much that

is “uncommon,” such as:

• How the Company appreciates its wonderful customers,

some who are featured in this annual report, who support

their own employees, customers and communities by providing

great products and services that benefit all of us in one way or

another. It is an honor to be able to serve these customers

and help them realize their goals and dreams.

• The F&M Trust team of employees, who are responsible for

the strong financial operating performance delivered for the

Corporation’s shareholders and customers through the Bank’s

Retail, Commercial and Investment and Trust services. These

same employees, collectively and individually, also gave back

willingly to the communities the Bank serves, through gifts of

their time, talent and treasure, that enhance the areas we serve.

• The price appreciation of the stock of Franklin Financial

Services Corporation (FRAF), which, when combined with

the dividend income, gave shareholders a 33.9% total return

on their investment for the year 2017. In comparison, our

shareholder’s total return eclipsed the total returns for the

NASDAQ Composite, SNL Mid-Atlantic Bank and SNL

Mid-Atlantic Bank ($1B–$2B) indexes.

• The Corporation’s 2017 earnings were negatively affected by

the passing of the Tax Cuts and Jobs Act, which required the

Company to revalue its net deferred tax assets and take the write

down of the assets in 2017. After absorbing the negative impact

of the tax law change in 2017, the passing of the Act will have

a positive effect on the Corporation going forward into 2018.

It is also uncommon for me to report to you two sets of financial

results, but I think it is important to share our results after the effect

of the proposed class action settlement, the write down of the

net deferred tax assets and, for analysis purposes, our financial

results before the effect of the same two events.

“These same employees...also gave back

willingly to the communities...through

gifts of their time, talent and treasure,

that enhance the areas we serve.”

For 2017, the Company had interest income of $39.9 million and

net interest income of $37.4 million compared to $37.0 million and

$34.7 million, respectively in 2016, an increase of 7.9% and 7.7%.

The net interest margin (NIM) increased from 3.62% in 2016 to

We also experienced the other side of “uncommon” as….

3.72% in 2017. The improvements were due primarily to the Company

being able to continue to build its commercial loan portfolio while

• The Bank entered into a term sheet to settle a potential class

also growing its low cost core deposit base to fund the loans.

action suit related to a 2008 acquisition and described in our

Current Reports on Form 8-K filed on January 2, 2018. While the

Total non-interest income grew 5% in 2017, from $11.6 million

proposed settlement did significantly affect the 2017 reported

to $12.2 million, due primarily to the continued growth in the

net income of the Corporation, because of our strong capital

Investment and Trust business lines where assets under

position, we will be able to continue to move forward in a

management and held at third-party brokers grew by 10.4%

M M X V I I Shareholder Letter

2017 ANNUAL REPORT

and fee income was up by 8.1%. Other sources of non-interest

consultative approach to customer interactions. We expect similar

income, including Treasury Management services and

results in Greencastle, and we are already working on plans for our

mortgage sales, also added to the growth in revenues.

next Community Office renovation, which will be completed in 2018.

Non-interest expense in 2017, before the proposed settlement,

We have committed additional resources to our Treasury

was essentially flat at $33.2 million compared to 2016’s $33.2

Management functions in order to better service our corporate

million, demonstrating good cost control. However, the previously

and municipal deposit customers. By adding services and qualified

mentioned proposed settlement increased total non-interest

personnel to our team, we continue to enhance our value to our

expense to $43.2 million, reducing the income before taxes to

deposit customers by bringing sophisticated services and the

$5.7 million compared to $9.4 million in 2016.

personal touch to their complex world.

While the Tax Cuts and Jobs Act passed in December of 2017

In 2017, we saw a significant improvement to the loan quality metrics

will have a positive effect on the future tax expense, the effect

of our commercial loan portfolio. We also took the opportunity,

of the Act in 2017 was an additional tax expense to the Company

during a period of strong loan growth, to rotate out of $28 million

of $2.3 million, due to the remeasurement of net deferred tax assets.

in participation loans we had been holding on our books. While

As a result of the proposed settlement and additional tax expense,

this move dampened our year-over-year loan growth numbers, we

net income, after taxes, decreased from $8.1 million in 2016 to

believe it has the effect of strengthening our loan portfolio and better

$2.1 million in 2017. Had the proposed settlement and additional

positioning us to manage through any future shocks to our economy.

tax expense not occurred, the net income, after tax, would have

Without the rotation out of some participation loans, our year-over-

been $12.4 million, an increase of 52.9% over 2016’s results.

year loan growth in 2017 would have been 11.2%, which stands

up well against our peers.

Total assets grew 4.6% in 2017 to $1.2 billion, with net loans growing

5.5%. Deposits grew by 6.6% to $931.9 million. Shareholder equity

fell from $116.4 million as of December 31, 2016, to $115.1 million

as total dividends paid exceeded net income. Yet, capital ratios

remain strong as total risk-based capital stood at 15.31%, and our

tier 1 leverage ratio was 9.73%. The Corporation continues to be

“well-capitalized” by regulatory definitions.

While the reality of our 2017 net income and the effect on the

Company’s equity position cannot be ignored, the positive trajectory

of our operating results is encouraging and gives me confidence in

our ability to compete and bring value to both our shareholders and

our customers. Steps taken in 2017 will carry over into 2018 and

will help us continue to build on our successes of the past year.

Our Community Office service platform continues to develop.

In 2018, we will be adding a call center so we can provide a

personal contact, 24/7, to meet the needs of our customers.

We will also continue our rollout of the “Branch of the Future”

concept that we started at our Waynesboro office. In 2017,

we completed renovations at our Boiling Springs office, and

similar renovations will be completed in March 2018 at our

Greencastle office. The sales results at both completed

Community Offices, subsequent to the renovations, have

been very good and can be attributed, in part, to the

improved physical layout and to the staffing concepts

employed at those offices, which relies on a more

We continue to see great growth opportunities in the Cumberland

increase over the December 31, 2015 price. Our year end stock

County/Harrisburg Capital Region. We have added Retail,

price in 2017 was $37.36, a 30.6% increase. Dividends paid

Commercial, Treasury Management and Investment & Trust

increased by 13.4%. The factors behind this increase are many

personnel and made improvements to three of our seven

and include the often-talked-about “Trump effect” that has buoyed

physical locations to better serve this quickly growing market.

confidence in equities, the recognition by the investing public of

“It is an honor to be able to serve these
customers and help them realize their
goals and dreams.”

our positive operating results and the fact that, compared to

peers, many investors believed we were undervalued. While we

have enjoyed the appreciation in stock value, we also recognize

that we are relatively “thinly traded,” and we are focused on increasing

the liquidity of our stock through investor presentations to increase

the awareness of and interest in our shares. I will note that our

investor presentations begin with the statement that the Board and

Senior Management of your company continue to believe that, at

We recognize that our customers want to interact with us in

this time, our shareholders and stakeholders are best served by the

different ways than in years past. In recognition of these changes,

Corporation remaining independent, and our present strategies are

we have made significant enhancements to our online and mobile

focused on the goal of retaining that independence.

platforms, with additional services and capabilities coming online

in 2018 that will provide our customers with the opportunity to

bank with us when, where and how they want.

I look to the future with great optimism. Part of what fuels my

enthusiasm is the new employees that are joining our company.

While the number of F&M Trust retirees grows, our ranks are being

As more of our customers bank with us online or through their

filled with intelligent, caring, motivated young people who are already

mobile devices, we realize fewer customers are coming into our

making a substantial and positive impact on the Corporation. They

offices. To meet the challenge of interfacing with our customers

represent our future, and I could not be more pleased.

2017 was an uncommon year in many ways. Perhaps 2018 will be

equally as uncommon — without the negatives. I look forward to the

year ahead and to reporting back to you in this letter next year.

Sincerely,

Timothy G. Henry

President and CEO

across all divisions, we have stepped up our social presence on

Facebook, Twitter and online in an effort to meet our customers

where they want to meet. The success of our efforts to attract and

retain the attention of our customers and prospects, particularly

those between the ages of 25 and 45, has been very good,

and we continue learn and build on those results.

Over the course of the year, we have initiated two important

in-house programs, one being an internal and external customer

service program, and the other being an employee engagement

program. Importantly, both of these programs have been employee-

driven with the development, execution and support being driven

not just by Senior Management, but across a wide base of

employees from all different areas of the bank. To me, it shows

the care, concern and pride our employees have in the bank and

the important role it plays for you, our shareholder, and for the

communities we serve. I’m personally honored and proud to be

a part of this team of professionals who are striving to be

their best every day.

On December 31, 2016, our stock price closed at $28.60, a 21.7%

M M X V I I Shareholder Letter

2017 ANNUAL REPORT Stability Graphics

T O T A L R E T U R N P E R F O R M A N C E ( A S D O L L A R S )

e
u

a
V
x
e
d
n

350

300

250

200

150

100

$317

12/31/12

12/31/13

12/31/14

12/31/15

12/31/16

12/31/17

L E G E N D

Franklin Financial Services Corp.

NASDAQ Composite Index

SNL Mid-Atlantic Bank Index

Peer Group

N E T I N C O M E
( A S D O L L A R S I N M I L L I O N S)

R E G U L A R C A S H D I V I D E N D S P A I D
( A S D O L L A R S P E R S H A R E)

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

2.20

8.09

10.20

8.40

6.23

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

0.93

0.82

0.74

0.68

M M X V I I Stability Graphics

N E T L O A N S
( A S D O L L A R S I N M I L L I O N S)

R E T U R N O N A V E R A G E A S S E T S
( A S P E R C E N T A G E V A L U E S)

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

932

883

772

717

714

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

0.19

0.74

1.00

0.83

0.61

T O T A L A S S E T S
( A S D O L L A R S I N M I L L I O N S)

T O T A L D E P O S I T S
( A S D O L L A R S I N M I L L I O N S)

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

1,180

1,127

1,035

1,001

985

M M X V I I Stability Graphics

2
0
1
7

2
0
1
6

2
0
1
5

2
0
1
4

2
0
1
3

1,047

982

919

881

846

2017 ANNUAL REPORT Consolidated Financial Highlights

( DO L L A R S I N T H O U S A N D S , E X C E P T P E R S H A R E )

2 0 1 7

2 0 1 6

P E R F O R M A N C E M E A S U R E M E N T

Net income

Return on average assets

Return on average equity

Net interest margin

S H A R E H O L D E R S ’ V A L U E ( P E R C O M M O N S H A R E )

Diluted earnings per share

Basic earnings per share

Regular cash dividends paid

Book value

Market value

Market value/book value ratio

Price/earnings multiple

Current dividend yield

Dividend payment ratio

B A L A N C E S H E E T H I G H L I G H T S

Total assets

Investment securities

Loans, net

Deposits

Shareholders’ equity

S A F E T Y A N D S O U N D N E S S

Risk-based capital ratio (Tier 1)

Leverage ratio (Tier 1)

Common equity ratio (Tier 1)

Nonperforming loans/gross loans

Nonperforming assets/total assets

Allowance for loan loss/loans

Net (recoveries) loans charged off/average loans

A S S E T S U N D E R M A N A G E M E N T

2 , 1 7 6

0 . 1 9 %

1 . 8 0 %

3 . 7 2 %

0 . 5 0

0 . 9 3

2 6 . 4 4

3 7 . 3 6

1 4 1 . 3 0 %

7 4 . 7 2

2 . 4 9 %

1 8 5 . 2 5 %

8 , 0 8 7

0 . 7 4 %

7 . 0 4 %

3 . 6 2 %

1 . 8 8

0 . 8 2

2 6 . 9 9

2 8 . 6 0

1 0 5 . 9 7 %

1 5 . 2 1

2 . 9 4 %

4 3 . 5 6 %

1 , 1 7 9 , 8 1 3

1 , 1 2 7 , 4 4 3

1 2 7 , 3 3 6

9 3 1 , 9 0 8

1 , 0 4 7 , 1 8 1

1 1 5 , 1 4 4

1 5 . 3 1 %

9 . 7 3 %

1 4 . 0 6 %

0 . 2 8 %

0 . 4 5 %

1 . 2 5 %

- 0 . 0 1 %

1 4 3 , 8 7 5

8 8 2 , 7 9 8

9 8 2 , 1 2 0

1 1 6 , 4 9 3

1 5 . 6 7 %

1 0 . 1 1 %

1 4 . 4 1 %

0 . 6 1 %

0 . 9 2 %

1 . 2 4 %

0 . 3 3 %

Trust and investment services (fair value)

6 8 6 , 9 4 1

6 2 2 , 6 3 0

Held at third party brokers (fair value)

1 5 8 , 1 4 5

1 4 2 , 6 7 6

M M X V I I Consolidated Financial Highlights

Client Profile

Phil Pantano, Vice President, Commercial Services, Franklin and Fulton/
Huntingdon County, Market Manager; John Bittner, Vice President
Snyder’s Gateway, Inc.; Tim Henry, President and Chief Executive Officer

Snyder’s Gateway, Inc.
Breezewood, PA

UNCOMMON HOSPITALITY

Any road-weary traveler will tell you that a good rest stop is worth

Beyond its personal touch, Bittner also appreciates F&M Trust’s

its weight in gold. Since 1941, Snyder’s Gateway (The Gateway

ease of connectivity. “We’re not working with an account manager;

Travel Plaza) has been giving Pennsylvania Turnpike drivers the

we’re working with the President on down. That kind of relationship

golden standard of hospitality: the family-owned, personal touch.

means a lot to us.”

“This is our family’s bread and butter. We’re here every day,” said

John Bittner, Vice President of Snyder’s Gateway, Inc. and great-

nephew of its founders, Merle and Marion Snyder. Today, the

travel plaza includes food and retail shops, a refueling station,

a conference center and lodging.

The small-town charm and family-focused operation hasn’t

gone unnoticed by travelers — Snyder’s Gateway has had to

expand many times. The Gateway Travel Plaza is currently

undergoing enhancements to its facilities, as well as a

full-scale food court expansion.

“They have shown faith in us as individuals
and as business operators to continually
reinvest in our ventures — which, in
business, is never a given.”

- John Bittner, Vice President

It’s a relationship that’s been going strong since 1999, even without

In an age where independently owned and operated travel plazas

an F&M Trust community office near the Snyder’s Gateway location

are uncommon, Bittner and his relatives prefer a bank that mirrors

in Breezewood, PA. “Again, it comes back to that personal touch.

their independent status. “F&M Trust recognizes the aspects of

We don’t feel the need to be across the street because we know

being family-owned and -operated. They have shown faith in us

where and who they are and the level of service and commitment

as individuals and as business operators to continually reinvest

that they provide,” said Bittner. It’s a partnership that allows a

in our ventures — which, in business, is never a given.”

travel plaza owner to rest easy.

2017 ANNUAL REPORT Board of Directors

G. Warren Elliott
President, Cardinal Crossings, Inc.,
Former Franklin County Commissioner

Timothy (Tim) G. Henry
President and Chief Executive Officer

Martin R. Brown
President, M. R. Brown
Funeral Home, Inc.

Gregory A. Duffey
President, CFPM Division of
Keller Stonebraker Insurance

Daniel J. Fisher
Retired, D. L. Martin Company

Donald A. Fry
President, Cumberland Valley Rental
and Towne Cleaners; ANDOCO, Inc.

Allan E. Jennings, Jr.
President, Jennings Chevrolet,
Buick, GMC, Inc.

Richard E. Jordan III
President and CEO, Smith Land
& Improvement Corporation

Stanley J. Kerlin
Attorney, Law Office of
Stanley J. Kerlin, LLC

Patricia D. Lacy
President and Director,
Beistle Company

Donald H. Mowery
Managing Partner, RSM Associates, LP

Martha B. Walker
Partner, Walker, Connor &
Spang, LLC

FFSC Officers

G. Warren Elliott
Chairman of the Board

Timothy (Tim) G. Henry
President and CEO

Mark R. Hollar
Treasurer and CFO

Amanda M. Ducey
Corporate Secretary

Joyce A. Riley
Assistant Corporate Secretary

M M X V I I Board of Directors

Client Profile

Public Library Systems
Cumberland, Franklin and Fulton County, PA

UNCOMMON DEDICATION

A common perception of public libraries is that they’re archaic places

received.” The expansion doubled the Coyle Free Library’s size and

filled with books. Do libraries have books? Yes. But archaic? Quite the

added unique amenities, like a creation station studio, a cultural arts

opposite. “Libraries are community institutions that empower and

theater and a skylight atrium.

engage people in lifelong learning,” said Jeff Swope, Executive Director

of Bosler Memorial Library in Carlisle, PA. “We see ourselves as the

In January 2017, F&M Trust guided Fulton County’s McConnellsburg

community core,” Bernice Crouse, Executive Director of the Franklin

Library through the process of quadrupling the size of its children’s

County Library System, confidently stated. And she’s not wrong.

center. The expansion included more public computers, a children’s

Libraries are public meeting spaces, educational resources,

community program creators, technology suppliers — the list

goes on. Yet, for a public resource so valuable and versatile,

libraries struggle to receive the appropriate amount of funding.

“In Fulton County, there isn’t a library tax,” said Fulton County Library

Director Jamie Brambley. “We really depend on local businesses for

funding.” And here lies the silver lining: Even with so much adversity,

libraries are continuing to grow, thanks in part to local businesses,

like F&M Trust, that are stepping up to the challenge.

Franklin County’s Coyle Free Library just finished a $5.5 million

expansion in December 2017. “We couldn’t have done it without

librarian’s office and a dedicated room for community programs.

“We bring in speech therapists and community nurses, introduce

kids to everything from robot programming to art, and have weekly

story times,” Brambley explained. “Before, we were so cramped

that all of our programs had to be held in the basement. I’m always

impressed with F&M Trust’s generosity. Without them, we

wouldn’t be able to offer the programs that we do.”

F&M Trust also assisted Bosler Memorial Library with a $6.5 million

expansion and renovation in 2013. Today, F&M Trust is helping

Bosler Memorial make good on its investment. “F&M Trust is helping

to ensure that our library can last in perpetuity. Not only are they

F&M Trust’s support,” said Crouse. “Not only did they offer us a

being good stewards of our long-term investments, but they also

reasonable line of credit, but they also pledged their own money

support what we do today by investing their own funds, which help

to the project, which was the largest business pledge that we

to support our programs, collections and services,” said Swope.

2017 ANNUAL REPORT LEFT: Kathy Powley, Vice President, Commercial Services,
Portfolio Manager; Denice Bigham, Senior Director of Library
Services and Technology - Franklin County Library System;
Jim Probst, Vice President, Investment and Trust Services,
Relationship Manager; Jill Yaich, Director - Coyle Free Library;
Bernice Crouse, Executive Director - Franklin County Library
System; Mark Story, Senior Director of Advancement and
Publicity - Franklin County Library System; Amy Wertz, Director of
Finance and Human Resources - Franklin County Library System

MIDDLE: Renee Preso, Vice
President, Fulton/Huntingdon
County Market, Market Manager;
Jamie Brambley, Fulton County
Library Director; Mary Wright,
Financial Services Officer,
McConnellsburg & Hustontown
Community Office Manager

RIGHT: Bruce Smith, Investment and Trust
Services, Cumberland County, Market Manager;
Paulo Oliveira, Cumberland County/Capital
Region, Market Manager; Molly Shane,
Development Officer, Bosler Memorial Library;
Jeffrey Swope, Executive Director, Bosler
Memorial Library; Tim Henry, President
and Chief Executive Officer

F&M Trust’s unwavering dedication to public libraries allows these

about 10 years ago, they let us have all of our children’s programs

community institutions to continue their goal of facilitating old and

at the Fulton Theatre, which is attached to one of their community

new ideas. “Our creation station studio is a place where patrons

offices, for almost a year.”

can write, record and develop original works,” Crouse explained.

“It’s allowing people to become sources of information, art and

literature themselves.”

“Not only did they offer us a reasonable
line of credit, but they also pledged their
own money to the project, which was the
largest business pledge that we received.”

- Bernice Crouse, Executive Director

There is value in supporting such community centers — one that

is beyond dollars. “F&M Trust is community-minded through and

through,” said Crouse. “They’re actually interested in what we’re up

to,” Swope echoed. Jamie Brambley recalled a time that F&M Trust

was especially generous. “When we were doing major construction

Beyond the company as a whole, these executive directors were

quick to compliment F&M Trust’s employees. “Kathy Powley (VP,

Commercial Services Portfolio Manager) was particularly excellent.

She made [Coyle Free Library’s renovation project] so easy for

us,” said Crouse. “I can pick up the phone and call the people who

are actually handling our investments — who are coming over to

volunteer when we have programs going on,” added Swope.

Public libraries may be an uncommon investment, but it’s one that’s

crucial to F&M Trust’s local communities. “F&M Trust is investing

in a public institution. They deserve some credit, because not

everybody sees the relevance in libraries,” Swope pointed out.

“I know there are bigger projects out there,” Crouse admitted,

“but F&M Trust has time and time again proven that they care

about our community.” That’s why, for these public libraries,

as Crouse put it, “It’s F&M Trust. No one else.”

M E L B O U R N E
“ M E L ”

2017 Community Highlights

Community

Franklin Financial Services Corporation and F&M Trust employees are devoted to

serving the communities they live and work in. Each year, our employees assist

numerous nonprofit organizations by volunteering their time at community events

or by serving as members of a board of directors.

60 EVENTS | 521 VOLUNTEERS | 1,456 VOLUNTEER HOURS

Donations

In 2017, F&M Trust continued investing in each of the regions we serve by

contributing to organizations that are dedicated to improving the quality of

life for those communities.

$322,245 IN COMMUNITY INVESTMENTS

300+ ORGANIZATIONS SUPPORTED

2017 ANNUAL REPORT Client Profile

Andrew Zimmerman, Chief Business Development Officer, C&J Catering,
Partner, Spring Garden, LLC; Sherry Zerbe, Chief Human Resource Officer,
C&J Catering; Jamie Berger, Founder & CEO, C&J Catering, Partner, Spring
Garden, LLC; Dallas Zulli, Assistant Vice President, Commercial Services,
Relationship Manager

C&J Catering
Harrisburg, PA

CATERING TO THE UNCOMMON

In 2004, Jamie Berger had just graduated college and was eyeing

“My business isn’t easy. It requires a lot of capital backing in the

up law school. Little did she know that, 13 years later, her clients

beginning. F&M Trust has been very good to me every time I’ve had

wouldn’t be plaintiffs; rather, fiancés, pharmaceutical reps and

a hair-brained idea about starting another business line. They’ve

anyone else in need of a catered event.

come right alongside me to help accomplish my vision,” said Berger.

“The company started a little bit by accident,” said Berger,

Berger credits F&M Trust’s ease of banking to her strong relationship

C&J Catering Founder and CEO. “I did something for my church,

with Dallas Zulli (AVP, Commercial Services). “He’s been with me

and that led to something else, and all of a sudden, there I was

since, literally, day one,” Berger explained. “I have him on speed dial.

with this business.”

He probably understands my business better than anyone else.”

C&J Catering has been steadily growing ever since. Today,

Berger’s company employs over 155 people, is one of Pennsylvania’s

only PA Preferred caterers and offers a multitude of services beyond

food — creating a one-stop shop for total event production.

“Our mission is to provide something for everyone. We treat every

customer independently; they don’t fall into a box. My business is the

same way. Everything is a little bit different,” explained Berger. “F&M

Trust understands that C&J Catering isn’t a traditional company.”

This uncommon and unrestricted business model has led Berger

“F&M Trust understands that C&J Catering
isn’t a traditional company.”

- Jamie Berger, Founder and CEO

Where will Berger’s insatiable pursuit for excellence in customer

service take her next? F&M Trust doesn’t know. But it does know

that it will be there to continue making Berger’s business dreams

to opening her own venue, the 903, in Middletown, PA — a project

a reality.

backed by F&M Trust.

Senior Management

Timothy (Tim) G. Henry
President and Chief Executive Officer

Mark R. Hollar
Senior Vice President,
Chief Financial Officer and Treasurer

Patricia A. Hanks
Senior Vice President,
Retail Services Market Manager

Lise M. Shehan, ESQ., CFIRS
Senior Vice President,
Investment & Trust Services Manager

Steven D. Butz
Senior Vice President,
Commercial Services Market Manager

Lorie M. Heckman, CRCM
Senior Vice President,
Risk Management Officer

Ronald L. Cekovich
Senior Vice President,
Technology Services Manager

Karen K. Carmack, SPHR
Senior Vice President,
Human Resources Manager,
Affirmative Action and
HIPAA Privacy Officer

Matthew D. Weaver
Senior Vice President,
Marketing and Corporate Communications
Manager

M M X V I I Senior Management

2017 ANNUAL REPORT Client Profile

Matt Berger, Investment and Trust Services, Franklin And Fulton/
Huntingdon County, Market Manager; Chastity L. Wantz, Financial Services
Officer, Waynesboro Community Office Manager; Andrea Bowersox,
Owner, Grove-Bowersox Funeral Home, Inc.; Jeremy Bowersox, Supervisor/
Owner, Grove-Bowersox Funeral Home, Inc.; Mary Cordell, Vice President,
Commercial Services, Relationship Manager

Grove-Bowersox Funeral Home, Inc.
Waynesboro, PA

UNCOMMON COMPASSION

Since 1829 and 1887, respectively, Greencastle, PA, and

“The more we do ourselves, the more peace of mind our customers

Waynesboro, PA, communities have found reassurance in the

can have,” Bowersox explained. “It’s important that people in the

locally owned and operated Grove-Bowersox Funeral Home, Inc.

community know who we are and that they have access to us.

and its branch location, Miller-Bowersox Funeral Home.

That’s also important to us when we work with other businesses.”

It’s how Bowersox’s relationship with F&M Trust began in 2014.

As a second-generation owner, Jeremy Bowersox knows the

importance of keeping his company an independent, community-

“Some businesses need a bank with a branch in 46 states. We do

focused business. “Both funeral homes have been in their

not. We need people who pay attention to the local areas, and F&M

communities for over a century. We like keeping that small-

Trust certainly does that,” said Bowersox.

town touch,” he said.

“A lot of F&M Trust’s employees have
become close personal friends.”

- Jeremy Bowersox, Supervisor/Owner

For a business that deals with such a delicate time in families’

lives, providing comfort, compassion and confidence in quality is

everything. “We do quality work. We do caring work. Their loved

F&M Trust handles Grove-Bowersox Funeral Home’s day-to-day

banking and long-term investments and also guided Bowersox and

his wife through the process of purchasing the Grove-Bowersox

funeral home building from his parents.

Because both F&M Trust and Grove-Bowersox Funeral Home

strongly believe in community-focused business practices,

Bowersox sees F&M Trust employees alongside him on community

boards and volunteer projects, and even in his free time. “A lot

of F&M Trust’s employees have become close personal friends.

They are really great,” said Bowersox.

ones never leave our small block,” said Bowersox. Grove-Bowersox

While this business relationship continues to grow, it is one that

Funeral Home proudly offers both an on-site crematorium and

feels uncommonly comfortable.

full-service monument shop.

Officers

COMMERICAL
SERVICES

Steven D. Butz
Senior Vice President
Commercial Services
Manager

Philip A. Pantano
Vice President
Commercial Services
Franklin and Fulton/
Huntingdon County
Market Manager

Mary S. Cordell
Vice President
Commercial Services
Relationship Manager

Matthew D. Harshbarger
Vice President
Commercial Services
Relationship Manager

Michael S. Metz
Vice President
Commercial Services
Relationship Manager

Kathleen M. Bloss
Assistant Vice President
Commercial Services
Portfolio Manager

Katherine M. Powley
Vice President
Commercial Services
Portfolio Manager

Kristi A. Dorsey
Vice President
Commercial Services
Relationship Manager

Brian C. Reidell
Vice President
Commercial Services
Treasury Management
Manager

M M X V I I Officers

Cydnie Kelly
Treasury Management
Relationship Manager

David P. Zimmerman
Vice President
Commercial Services
Relationship Manager

Dallas J. Zulli, MBA
Assistant Vice President
Commercial Services
Relationship Manager

Jeramy D. Culler
Assistant Vice President
Business Banking Manager

Patricia M. Murray
Assistant Vice President
Business Banker

Benjamin S. Debell
Business Banker

Michael N. Scudder
Business Banker

Crystal M. Sunderland
Business Banker

Eric J. Fleming
Vice President,
Credit Department Manager

Julie A. Powell
Senior Credit Analyst

Maria S. Seabra
Senior Credit Analyst

Michael R. Cook
Credit Analyst

Kofi E. Odoom
Credit Analyst

EXECUTIVE

Timothy (Tim) G. Henry
President and Chief
Executive Officer

Amanda M. Ducey
Corporate Secretary

Joyce A. Riley
Assistant Corporate
Secretary

FACILITIES

Tex E. Miller, Jr.
Facilities Manager

FINANCE

Mark R. Hollar
Senior Vice President
Chief Financial Officer
And Treasurer

Kim A. Brant
Asset-Liability Analyst

Amy B. Herrold
Controller

HUMAN RESOURCES

Karen K. Carmack,
SHRM-SCP, SPHR
Senior Vice President
Human Resources Manager
Affirmative Action and
HIPAA Privacy Officer

Levi L. Crouse,
MBA, SHRM-CP
Human Resources Officer

Michele A. Williams
Training & Development Officer
CTA Certified Coach

INVESTMENT &
TRUST SERVICES

Lise M. Shehan, Esq., CFIRS
Senior Vice President
Investment and Trust
Services Manager

Warren M. Hurt
Vice President
Chief Investment Officer

Michell Friese
Investment and Trust Service
Support Specialist

Avis M. Graham
Assistant Vice President
Investment and Trust
Services Compliance Officer

Heather C. Hershey
Estate Administration Officer

David Y. Luo
Investment Portfolio Manager

Robin L. Murray
Trust Operations Manager

Matthew W. Berger
Assistant Vice President
Investment and Trust Services
Franklin and Fulton/
Huntingdon County
Market Manager

Carole L. Crist
Vice President
Investment and Trust Services
Relationship Manager

Karen L. Degenhart
Vice President
Employee Benefits Officer

Ronald R. Froeschle
Vice President
Employee Benefits Officer

2017 ANNUAL REPORT James P. Probst
Vice President
Investment and Trust Services
Relationship Manager

Diana L. Sponseller
Vice President
Investment and Trust Services
Relationship Manager

Dennis L. Wilson
Vice President
Investment and Trust Services
Relationship Manager

Hammond Urner
Vice President
Investment and Trust Services
Relationship Manager

Jeffrey A. Peterson
Investment and Trust Services
Relationship Manager

Bruce A. Smith
Vice President
Investment and Trust Services
Cumberland County
Market Manager

Joseph G. Maxwell
Vice President
Investment and Trust Services
Relationship Manager

James C. McElhenie
Vice President
Investment and Trust Services
Relationship Manager

Andrew M. Otto
Assistant Vice President
Investment and Trust Services
Relationship Manager

MARKETING

Matthew D. Weaver
Senior Vice President
Marketing and Corporate
Communications Manager

Melissa D. Miller
Assistant Vice President
Marketing Officer

Jill M. Reddecliff
Marketing Analyst

RETAIL SERVICES

Patricia A. Hanks
Senior Vice President
Retail Services Market
Manager

Jordan M. Peffer
Retail Services
Operations Officer

CONSUMER
LENDING

Jared M. Leonard
Assistant Vice President
Consumer and Residential
Mortgage Lending Manager

Cathy S. Goodhart
Residential Mortgage
Lending Officer

Timothy A. Rarick
Consumer Lending Officer

David R. Winters
Consumer Lending Officer

CHAMBERSBURG
MARKET

Summer Franzoni
Assistant Vice President
Chambersburg
Market Manager

Memorial Square
Marisol Feliciano
Financial Services Officer
Manager

Norland Avenue
Danielle R. Ritter
Financial Services Officer
Manager

Chambers Pointe & Brookview
Barbara A. Seylar
Financial Services Officer
Manager

Lincoln Way East &
Philadelphia Avenue
Lisa A. Hogue
Financial Services Officer
Manager

Orchard Park
Dana L. Kaiser-Brechbiel
Assistant Vice President
Financial Services Officer
Manager

West Side
Meghan N. Heebner
Financial Services Officer
Manager

CUMBERLAND
COUNTY MARKET

Paulo M. Oliveira
Vice President
Cumberland County/
Capital Region
Market Manager

Camp Hill & Mechanicsburg
Miriam Defehr
Financial Services Officer
Manager

Heather E. Yoder
Assistant Financial
Services Officer

Carlisle Crossing &
Boiling Springs
Bree C. Vance
Financial Services Officer
Manager

Boiling Springs
Barb M. Minnier
Assistant Financial
Services Officer

Shippensburg & Newville
Ellen L. Ile
Financial Services Officer
Manager

Ritner Highway
Adam B. Smith
Financial Services Officer
Manager

SOUTHERN FRANKLIN
COUNTY MARKET

Renee L. Preso
Vice President
Southern Franklin County
Market Manager

Greencastle & Marion
Cynthia E. Marconi
Assistant Vice President
Financial Services Officer
Manager

Mont Alto
Sarah S. Stansfield
Financial Services Officer
Manager

Waynesboro
Chastity L. Wantz
Financial Services Officer

Rachel Bowers
Assistant Financial
Services Officer

M M X V I I Officers

Olaf R. Hasse
Vice President
Loan Portfolio Risk
Management Officer

Sheryl R. Snider
Compliance Officer
and CRA Officer

Rainbow D. Hopkins
BSA/OFAC Officer

TECHNOLOGY
SERVICES

Ronald L. Cekovich
Senior Vice President
Technology Services
Manager

Joseph C. Lieb
Assistant Technology
Services Manager

Matthew C. Clark
Assistant Vice President
Technology Services
Officer

Patricia R. Ganoe
Assistant Vice President
Deposit/Data Operations
Manager

Pamela A. Johns
Assistant Vice President
Loan Servicing Manager

Stephanie Gearhart
Assistant Loan
Servicing Manager

FULTON/HUNTINGDON
COUNTY MARKET

Renee L. Preso
Vice President
Fulton/Huntingdon
County Market
Market Manager

McConnellsburg
& Hustontown
Mary E. Wright
Financial Services Officer
Manager

Orbisonia
Bertha A. Peffer
Financial Services Officer
Manager

RISK MANAGEMENT

Lorie M. Heckman, CRCM
Senior Vice President
Risk Management Officer

William A. Pryor
Vice President
Chief Credit Officer

Steven R. Gormont
Consumer Credit
Recovery Officer

Frank M. Severa
Commercial Credit
Recovery Officer

Eric M. Follin
Documentation Review
Officer

Matthew R. Shank
Assistant Documentation
Review Officer

Janet E. Stamper
Consumer Documentation
Review Officer

M M X V I I Officers

2017 ANNUAL REPORT Client Profile

Steve Butz, Senior Vice President, Commercial Services, Manager;
Tim Henry, President And Chief Executive Officer; Brian Wise, Owner,
Bwise Manufacturing, LLC; Phil Pantano, Vice President, Commercial
Services, Franklin And Fulton/Huntingdon County, Market Manager;
Scott Mentzer, CFO, Bwise Manufacturing, LLC

BWise Trailers
Chambersburg, PA

UNCOMMON INNOVATION

Just off Interstate 81 in Chambersburg, PA, lives the future of

F&M Trust also helped BWise Trailers purchase an automated

the trailer industry. “We don’t like being the follower. We like being

painting system that furthered the company’s efficiency. “They

the leader,” said BWise Founder and President Brian Wise. “We

stepped up to the plate in the last year to help us with two major

do things to our trailers that are standard features that most

projects,” said Wise. F&M Trust was supportive for good reason:

competitors don’t even offer — and if they do, it costs extra.”

Brian Wise has been a loyal client since 2008.

BWise Trailer’s mission is to build trailers of the highest quality

and to offer the best service to customers at a competitive price.

It’s why BWise Trailers doesn’t assemble its trailers from

outsourced parts. “A large percentage of parts that we use are

“They stepped up to the plate in the last
year to help us with two major projects.”

made in-house. It gives us the ability to machine parts for the

- Brian Wise, Founder and President

trailers that fit perfectly, giving us a fit and finish that our

competitors can’t achieve,” explained Wise, who has an

extensive background in metal machining.

This business philosophy of quality and innovation has shown

repeat growth. “At the start, we rented 120,000 square feet of our

current building. Just last year, we purchased the entire 414,000

With its newly acquired space and state-of-the-art painting system,

this independent company is going places — but only figuratively.

“We have a great facility and a very good workforce here. We have

all the pieces in place to experience a lot of growth,” said Wise.

square-foot building,” said Wise. It was a large and somewhat

In the future, expect more uncommonly innovative trailer designs,

aggressive purchase, but both BWise Trailers and F&M Trust saw

a larger body of sales and an even stronger relationship between

opportunity. “We went to F&M Trust, not thinking that they would

F&M Trust and Brian Wise. “They’ve been very good to work with,”

be able to pull this off, but they did. We’re very thankful for that. It

said Wise. “Phil Pantano (VP and Commercial Services Market

enabled us to make changes to the building that have improved

Manager) has been nothing but excellent for us. He understands

our manufacturing process,” said Wise.

our business — and that’s what really matters.”

Community Office/ATM Locations

CHAMBERSBURG
AREA

Lincoln Way East Office
1712 Lincoln Way East,
Chambersburg, PA
Phone: (717) 264-9414

Memorial Square Office
20 South Main Street,
Chambersburg, PA
Phone: (717) 264-6116

Brookview Office
2075 Scotland Avenue,
Chambersburg, PA
Phone: (717) 261-3697

Norland Avenue Office
870 Norland Avenue,
Chambersburg, PA
Phone: (717) 262-2085

Orchard Park Office
841 Wayne Avenue,
Chambersburg, PA
Phone: (717) 263-1801

Chambers Pointe Office
1425 Philadelphia Avenue,
Chambersburg, PA
Phone: (717) 261-3660

Philadelphia Avenue Office
2405 Philadelphia Avenue,
Chambersburg, PA
Phone: (717) 264-5122

West Side Office
1100 Lincoln Way West,
Chambersburg, PA
Phone: (717) 263-9168

SOUTHERN
FRANKLIN
COUNTY

Greencastle Office
518 North Antrim Way,
Greencastle, PA
Phone: (717) 597-2384

Marion Office
5293 Main Street,
Marion, PA
Phone: (717) 375-2210

Mont Alto Office
8 Park Street,
Mont Alto, PA
Phone: (717) 749-3161

Waynesboro
200 East Main Street,
Waynesboro, PA
Phone: (717) 762-2188

CUMBERLAND
COUNTY

Boiling Springs Office
3 East First Street,
Boiling Springs, PA
Phone: (717) 241-4131

Camp Hill Office
3907 Market Street,
Camp Hill, PA
Phone: (717) 731-9604

Carlisle Crossing Office
214A Westminster Drive,
Carlisle, PA
Phone: (717) 243-2215

Carlisle Plaza Drive-Up
700 East High Street,
Carlisle, PA
Phone: (717) 243-0416

Mechanicsburg Office
6375 Carlisle Pike
Mechanicsburg, PA
Phone: (717) 697-0444

Newville Office
51 South High Street,
Newville, PA
Phone: (717) 776-2240

Ritner Highway Office
1901 Ritner Highway
Carlisle, PA
Phone: (717) 960-1400

Shippensburg Office
13 Shippensburg
Shopping Center,
Shippensburg, PA
Phone: (717) 530-2100

FULTON &
HUNTINGDON
COUNTIES

Hustontown Office
7781 Waterfall Road,
Hustontown, PA
Phone: (717) 987-3193

McConnellsburg Office
100 Lincoln Way East,
McConnellsburg, PA
Phone: (717) 485-3144

Orbisonia Office
18810 Sandy Ridge Station,
Orbisonia, PA
Phone: (814) 447-3104

ADDITIONAL
ATM LOCATIONS

Ayr Town Center ATM
368 S. 2nd Street,
McConnellsburg, PA

Fayetteville Post Office
4025 Lincoln Way East,
Fayetteville, PA

Brookview Campus -
Northfield
Northgate Commons
and Apartments
1500 Northfield Drive,
Chambersburg, PA

Penn National Golf Clubhouse
3720 Clubhouse Drive,
Fayetteville, PA

Penns Village ATM
182 Buchanan Trail,
McConnellsburg, PA

Quincy Village -
Colestock Center
6596 Orphanage Road,
Quincy, PA

Riverview Business Center ATM
11734 Lenape Drive,
Mount Union, PA

Shippensburg West End
9966 Molly Pitcher Hwy,
Shippensburg, PA

Waynesboro Marketplace
11123 Buchanan Trail East,
Waynesboro, PA

Zullinger
4884 Buchanan Trail East,
Zullinger, PA

2017 ANNUAL REPORT A N N U A L R E P O R T

M M X V I I

P.O. Box 6010 | Chambersburg, PA 17201

888.264.6116 |

Uncommon Independence