A new home is in the works for F&M Trust, a subsidiary of Franklin Financial Services Corporation (NASDAQ: FRAF), but move-in is still a year away.
The independent community bank headquartered in Chambersburg has completed the purchase of the former Danfoss manufacturing facility. The building on Nitterhouse Drive straddles Chambersburg and Guilford Township, three miles from the bank’s current location.
The state-of-the-art facility is the future site of the bank’s new corporate headquarters and operations center.
The bank purchased the facility for $7 million from CFDC, LLC, an entity jointly owned by the Franklin County Area Development Corp. (FCADC) and Chambersburg Area Development Corp. (CADC). The 67,000 square-foot Gold LEED building, constructed in 2009, is located at 1500 Nitterhouse Drive on an 11-acre parcel.
To prepare for its future move, F&M Trust sold its 41,000 square-foot corporate headquarters at 20 South Main St. for $3.3 million to CFDC. The bank has a lease agreement for the downtown Chambersburg property until renovations are completed and the move to the new home occurs in late 2022.
It will cost an estimated $8.7 million to renovate the new headquarters building.
Room to grow in a new home
The one-story building will house roughly 145 employees with the capacity for additional employees as the bank continues to grow.
F&M will recognize a pre-tax gain of $1.8 million on the sale of its property in the third quarter of 2021. The sale/purchase transaction was structured as a 1031 Exchange for federal income tax purposes.
“Due to the pandemic, we decided to temporarily put our plans on hold so we could focus on other priorities; including taking care of our customers and communities. It was always our intention to move forward with this project; and we are excited to complete this phase,” said Timothy G. Henry, President and CEO of F&M Trust. “The purchase of this facility marks the latest step in the growth of F&M Trust as we are taking decisive action to build for the future. I appreciate the support and patience exhibited by the CFDC, the bank’s board of directors and employees, as well as many others; and I look forward to the expansion of our bank’s reach and capabilities.”
“After 18 months of Covid induced delays, we are finally able to consummate our investment in downtown Chambersburg. The purchase of the F&M Trust building at 20 S. Main Street represents a $3.3 million investment in the continued revitalization of downtown Chambersburg,” said L. Michael Ross, President of FCADC.
“We are fortunate to be in a unique position to assist F&M Trust with their future expansion in Franklin County,” said Stephen Christian, President and Executive Director of CADC and the Greater Chambersburg Chamber of Commerce. “No other financial institution is more thoroughly woven into the fabric of our community than F&M Trust.”
About Franklin County Area Development Corporation
Established in 1986, FCADC formulates, implements, and promotes a comprehensive countywide economic development strategy. The corporation strives to create an atmosphere that nourishes planned growth and family sustainable employment opportunities. Since its establishment, FCADC has successfully facilitated more than 760 projects throughout Franklin County, resulting in more than $2.2 billion in capital expenditures and creating/retaining more than 50,000 jobs.
About Chambersburg Area Development Corporation
Founded in 1960, CADC aims to improve the economic health and quality of life of the Chambersburg Area by bringing major employers to the area. CADC owns and operates an extensive commercial and industrial real-estate portfolio. It provides quality building solutions for dozens of businesses in Chambersburg and Franklin County. CADC is an affiliate of the Greater Chambersburg Chamber of Commerce. It helps create more than 2,800 jobs and over $3 million in local payroll and property tax revenues annually.
About F&M Trust
F&M Trust, a subsidiary of Franklin Financial Services Corporation, has its headquarters in Chambersburg. With approximately $1.6 billion in assets, F&M Trust has 21 community offices in Franklin, Cumberland, Fulton, and Huntingdon counties.
Please visit fmtrust.bank for more information.