1st Franklin Financial Corp. Files Q2 2025 10-Q

TL;DR

**1st Franklin Financial Corp. filed its Q2 2025 10-Q on Aug 14, 2025. Financials are in!**

AI Summary

1st Franklin Financial Corp. filed its 10-Q for the period ending June 30, 2025. The filing, submitted on August 14, 2025, provides financial updates for the company, which operates in the personal credit institutions sector. Key financial data and operational details for the second quarter of 2025 are presented.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational status of 1st Franklin Financial Corp., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided metadata.

Key Numbers

• 20250630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20250814 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• 1st Franklin Financial Corp. (company) — Filer of the 10-Q
• 20250630 (date) — End of the reporting period
• 20250814 (date) — Date of filing
• GA (location) — State of incorporation
• TOCCOA (location) — City of business address

FAQ

Key Financial Figures

• $100 — , 2025 Voting Common Stock, par value $100 per share 1,700 Shares Non-Voting Co
• $35.9 million — : The Company's total assets increased $35.9 million (3%) to $1,347.6 million at June 30, 20
• $1,347.6 million — assets increased $35.9 million (3%) to $1,347.6 million at June 30, 2025 compared to $1,311.7 m
• $1,311.7 million — .6 million at June 30, 2025 compared to $1,311.7 million at December 31, 2024. Increases in our
• $2.8 million — s (excluding restricted cash) increased $2.8 million (8%) at June 30, 2025 while restricted
• $4.8 million — 0, 2025 while restricted cash increased $4.8 million (55%) compared to December 31, 2024. Re
• $123.7 million — ers. Gross loan originations increased $123.7 million for the three months ended June 30, 202
• $127.8 million — d June 30, 2025, originations increased $127.8 million compared to the same period last year.
• $37.0 million — year. Our net loan portfolio increased $37.0 million to $948.7 million at June 30, 2025 comp
• $948.7 million — an portfolio increased $37.0 million to $948.7 million at June 30, 2025 compared to $911.7 mil
• $911.7 million — .7 million at June 30, 2025 compared to $911.7 million at December 31, 2024. Included in our n
• $0.3 million — ion. Management increased the allowance $0.3 million to $73.7 million at June 30, 2025, comp
• $73.7 million — increased the allowance $0.3 million to $73.7 million at June 30, 2025, compared to $73.4 mil
• $73.4 million — 7 million at June 30, 2025, compared to $73.4 million at December 31, 2024. See Note 2, "Allo
• $2.0 million — vestment securities portfolio decreased $2.0 million compared to the prior year-end. The maj

Filing Documents

• fil-20250630.htm (10-Q) — 1974KB
• a1ffc20250630-exx311.htm (EX-31.1) — 9KB
• a1ffc20250630-exx312.htm (EX-31.2) — 9KB
• a1ffc20250630-exx321.htm (EX-32.1) — 6KB
• a1ffc20250630-exx322.htm (EX-32.2) — 6KB
• 0000038723-25-000114.txt ( ) — 10644KB
• fil-20250630.xsd (EX-101.SCH) — 39KB
• fil-20250630_cal.xml (EX-101.CAL) — 73KB
• fil-20250630_def.xml (EX-101.DEF) — 265KB
• fil-20250630_lab.xml (EX-101.LAB) — 529KB
• fil-20250630_pre.xml (EX-101.PRE) — 423KB
• fil-20250630_htm.xml (XML) — 2746KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements: The information contained under the following captions in the Company's Quarterly Report to Investors as of and for the three and six months ended June 30, 2025 is incorporated by reference herein. See Exhibit 13. Condensed Consolidated Statements of Financial Position (Unaudited): June 30, 2025 and December 31, 2024 Condensed Consolidated Statements of Income (Unaudited): Three and Six Months Ended June 30, 2025 and June 30, 2024 Condensed Consolidated Statements of Comprehensive Income (Unaudited): Three and Six Months Ended June 30, 2025 and June 30, 2024 Condensed Consolidated Statements of Stockholders' Equity (Unaudited): Three and Six Months Ended June 30, 2025 and June 30, 2024 Condensed Consolidated Statements of Cash Flows (Unaudited): Six Months Ended June 30, 2025 and June 30, 2024 Notes to Unaudited Condensed Consolidated Financial Statements

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations: The information contained under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Quarterly Report to Investors as of and for the three and six months ended June 30, 2025 is incorporated by reference herein. See Exhibit 13.

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk: The information contained under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Quantitative and Qualitative Disclosures About Market Risk" in the Company's Quarterly Report to Investors as of and for the three and six months ended June 30, 2025 is incorporated by reference herein. See Exhibit 13.

Controls and Procedures

ITEM 4. Controls and Procedures: We maintain a set of disclosure controls and procedures, as such term is defined in Rule 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. An evaluation was carried out as of the end of the period covered by this report, under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of our disclosure controls and procedures. Based on that evaluation, the CEO and CFO have concluded that, as of June 30, 2025, the Company's disclosure controls and procedures were not effective, because of the material weaknesses in our internal control over financial reporting further described below. No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system of controls are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Material Weakness in Internal Control over Financial Reporting A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such tha

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 5. Legal Proceedings: The Company is, and expects to be, involved in various legal proceedings incidental to its business from time to time. In the opinion of Management, the ultimate resolution of any such known claims or proceedings is not expected to have a material adverse effect on the Company's financial position, liquidity or results of operations.

Exhibits

ITEM 6. Exhibits: (a) Exhibits: 10.1 Independent Contractor and Mutual Non-Disclosure Agreement, entered into and effective as of June 1, 2025, by and between the Company and Brian Gyomory (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on June 2, 2025). 13 Quarterly Report to Investors as of and for the Three and Six Months Ended June 30, 2025. 31.1 Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) / 15d-14(a) of the Securities Exchange Act of 1934. 31.2 Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) / 15d-14(a) of the Securities Exchange Act of 1934. 32.1 Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 101.INS Inline XBRL Instance Document. 101.SCH Inline XBRL Taxonomy Extension Schema Document. 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). <PAGE> 4

SIGNATURES

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 thereunto duly authorized. 1 st FRANKLIN FINANCIAL CORPORATION Registrant /s/ Virginia C. Herring President and Chief Executive Officer (Principal Executive Officer) /s/ Jenna C. Hood Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) Date: August 14, 2025 <PAGE> 5 Exhibit 13 1 st FRANKLIN FINANCIAL CORPORATION QUARTERLY REPORT TO INVESTORS AS OF AND FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following narrative is Management's discussion and analysis of the foremost factors that influenced 1 st Franklin Financial Corporation's and its consolidated subsidiaries' (the "Company", "our" or "we") financial condition and operating results as of and for the three and six months ended June 30, 2025 and 2024. This discussion and analysis and the accompanying unaudited condensed consolidated financial information should be read in conjunction with the Company's audited consolidated financial statements and related notes included in the Company's 2024 Annual Report. Results achieved in any interim period are not necessarily indicative of the results to be expected for any other interim or full year period.

Forward-Looking Statements

Forward-Looking Statements : Certain information in this discussion and other statements contained in this Quarterly Report are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are all statements other than those of historical fact. The Company's actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, which involve known and unknown risks and uncertainties. Possible factors that could cause actual future results to differ from expectations include, but are not limited to, the ability to manage cash flow and working capital, the accuracy of Management's estimates and judgments, adverse general economic conditions, including changes in employment rates or in the interest rate environment, unexpected reductions in the size or collectability of our loan portfolio, unexpected increases in our allowance for credit losses, reduced sales or increased redemptions of our securities, unavailability of borrowings under our credit facility, federal and state regulatory changes affecting consumer finance companies, unfavorable outcomes in legal proceedings and those risks and uncertainties described under "Risk Factors" in our 2024 Annual Report, as well as other factors referenced elsewhere in our filings with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update any forward-looking statements, except as required by law. The Company : We are engaged in the consumer finance business, primarily in making consumer installment loans to individuals. Our other lending-related activities include the purchase of sales finance contracts from various dealers and the making of first and second mortgage real estate loans on real estate. All of our loans are at fixed rates, and contain fixed terms and fixed payments. The majority of our revenues are derived from finance char

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