1st Franklin Financial Corporation is a regional consumer finance company specializing in small short-term installment loans, real estate financing, and purchasing retail dealer contracts, with a large loan portfolio, nearly 1,700 employees, and close to $378 million in revenue in 2024.

# Summary of 1st Franklin Financial Corporation

## Business Activities
- **Industry**: Consumer finance, primarily focused on making installment loans to individuals.
- **Core Offerings**:
  - **Direct cash loans**: Small amounts, short-term, typically repayable in 6 to 60 months, generally not exceeding $15,000.
  - **Real estate loans**: First and second mortgages secured by real estate, with loan amounts from $3,000 to $75,000, terms from 35 to 240 months.
  - **Sales finance contracts**: Purchased from retail dealers, with maturities from 3 to 60 months and amounts up to $25,000.
  - **Insurance products**: Optional credit life insurance, accident and health, unemployment, and property insurance, sold through subsidiaries and agent agreements.
  
## Market Presence
- **Number of Branch Offices**:
  - 369 in 2024 across nine states:
    - Georgia (115), Alabama (48), South Carolina (43), Mississippi (40),
    - Tennessee (39), Louisiana (37), Texas (23), Kentucky (17), Virginia (7).
- **Employees**:
  - 1,713 employees as of December 31, 2024.

## Financial Highlights (2024)
- **Total Assets**: $1.35 billion, an increase of 6% from 2023.
- **Loan Portfolio**:
  - Gross loans originated (2024): $1.34 billion
  - Net loan receivables at end of 2024: $1.26 billion
  - Compared to 2023, loans increased by 9% in originations and 6% in net outstanding.
- **Revenue**:
  - Total revenue for 2024: **$377.8 million**
  - Revenue for 2023: **$351.4 million**
- **Net Income**:
  - Loss in 2024: **$5.6 million**
  - Income in 2023: **$0.53 million**

## Additional Financial Data
- **Interest Income** (2024): $296.5 million
- **Interest Expense** (2024): $58.7 million
- **Insurance Income** (2024): $47.6 million
- **Loans Outstanding at Dec 31, 2024**:
  - **Cash loans**: $1.08 billion
  - **Real estate loans**: $23.4 million
  - **Sales finance contracts**: $154.7 million

## Business Focus & Strategy
- Primarily makes small consumer installment loans, secured by personal property or real estate.
- Also involved in purchasing sales finance contracts from retail dealers.
- Offers optional credit insurance products for customer protection.
- Operates in a highly competitive environment with regional and national competitors.
- Growth strategy involves expanding branch network and securing funding via a $300 million credit and security agreement with BMO Bank, N.A.
- Dependence on maintaining liquidity, collecting receivables, and managing interest rate and credit risk.

## Regulatory & Operational Environment
- Complies with federal and state laws, including TILA, ECOA, FCRA, and RESPA.
- Has a network of 369 branches across southern U.S. states.
- Employs policies and procedures to mitigate cybersecurity, market, and credit risk.
- Focused on servicing its 1,713 employees with benefits including 401(k), insurance, and performance incentives.

**In summary**, 1st Franklin Financial Corporation is a privately-held consumer finance company with a regional footprint across nine Southern states, engaging mainly in small short-term installment loans, real estate financing, and purchasing retail contracts, supported by a sizeable loan portfolio, nearly 1,700 employees, and revenues approaching $378 million in 2024. Its strategic focus is on growth through branch expansion and secure funding arrangements.

1st Franklin Financial Corporation is a consumer finance company offering loans tailored for salaried individuals and wage earners through a network of branches.

# Company Overview: 1st Franklin Financial Corporation

## General Description
1st Franklin Financial Corporation is a consumer finance company that primarily focuses on providing loans to salaried individuals and wage earners. The company aims to meet the personal finance needs of its customers through various financial products, primarily loans, which are supported by a network of branch offices.

## Key Details
- **Number of Customers**: The company serves a broad customer base consisting of individuals who depend on their earnings to meet their repayment obligations. Specific customer numbers are typically detailed in annual reports but are not disclosed in the provided text.
  
- **Number of Employees**: The company employs a significant workforce to manage its operations, although precise numbers are not provided in the text. Specific employee numbers can usually be found in annual reports or company filings.

- **Revenue and Income**: The company generates revenue primarily through the interest on loans issued to customers. While specific figures regarding revenue and income are not detailed in the provided information, it is indicated that the company's profitability is closely tied to its ability to manage loan interest rates, customer repayments, and operational costs.

## Financial Operations
1st Franklin generates cash flow through:
- Sale of debt securities.
- Collection of receivables.
- Loans to customers based on their creditworthiness.

The company faces competition from large national, regional, and local financial companies, contributing to a dynamic environment for customer acquisition and retention.

## Risk Factors
1st Franklin's operations are characterized by various risks, including:
- **Liquidity Risks**: Dependence on the sale of debt securities and the collection of receivables affects financial health.
- **Credit Risks**: The company's ability to collect on loans may be adversely affected by factors impacting its customers, such as economic downturns.
- **Regulatory Risks**: As a financial institution, it is subject to extensive regulations which may impose additional costs and operational restrictions. 

## Cybersecurity and Data Protection
1st Franklin emphasizes the importance of protecting customer data and maintaining operational integrity against cybersecurity threats. The company has implemented significant measures to mitigate these risks, including staff training, vulnerability assessments, and incident response strategies.

Overall, 1st Franklin Financial Corporation is positioned in the consumer finance industry to provide critical loan services while navigating the associated risks and regulatory challenges. Further quantitative details, particularly regarding customer numbers, revenue, and employee statistics, would typically be available in the company's financial statements or annual reports.

1st FRANKLIN FINANCIAL CORP

10-K / April 30, 2025

10-K / April 1, 2024

10-K / April 30, 2025

Summary of 1st Franklin Financial Corporation

Business Activities

Market Presence

Financial Highlights (2024)

Additional Financial Data

Business Focus & Strategy

Regulatory & Operational Environment