Franklin Financial Services Corporation FRAF Defined Contribution Plan Minimum Annual Contributions Per Employee Percent

The Bank has a 401(k) plan which includes an auto enrollment feature and covers all employees of the Bank who have completed four months of service. Employee contributions to the plan are matched at 100% up to 4% of each participant’s deferrals plus 50% of the next 2% of deferrals from participants’ eligible compensation. Under this plan, the maximum amount of employee contributions in any given year is defined by Internal Revenue Service regulations. In addition, a 100% discretionary profit-sharing contribution of up to 2% of each employee’s eligible compensation is possible provided net income targets are achieved. The related expense for the 401(k) plan, and the discretionary profit-sharing plan was $1.6 million in 2025 and $1.3 million in 2024. This expense is recorded in the Salary and employee benefits line of the Consolidated Statements of Income.