Wed, Apr 30, 10:05 AM (18 days ago)
### Summary of 1st Franklin Financial Corporation (Ticker: N/A) #### **Financial Performance (2024):** - **Revenue:** $377.8 million - **Net Income:** -$5.6 million (loss) - **Net Interest Income:** $238.08 million - **Provision for Credit Losses:** $83.39 million - **Operating Expenses:** $223.17 million #### **Strategic Overview:** - **Business Focus:** Consumer finance, direct cash loans, real estate loans, and sales finance contracts. - **Market Position:** Operates in nine southern states with 369 branch offices. - **Growth Strategy:** Expansion of branch office network and strategic investments in technology. #### **Future Outlook:** - **Growth Goals:** Continued expansion and strategic investments. - **Market Position:** Strong focus on customer service and community involvement. #### **Risk Factors:** - **Economic Uncertainty:** Potential impacts from economic downturns, interest rate changes, and regulatory changes. - **Credit Risk:** Dependence on customer repayment abilities. - **Operational Risks:** Technological failures and cybersecurity threats. #### **Financial Condition:** - **Assets:** $1.346 billion - **Liabilities:** $1.095 billion - **Stockholders' Equity:** $250.71 million - **Liquidity:** Strong liquidity position with sufficient cash reserves and credit facilities. #### **Market Position Changes:** - **Expansion:** Opened eight new offices in 2024. - **Loan Portfolio:** Grew to over $1 billion in net outstanding. - **Investment Center:** Grew by $48.9 million. #### **Management and Governance:** - **Board Composition:** Includes independent directors and executive officers. - **Compensation:** Based on performance metrics and strategic goals. - **Corporate Governance:** Strong focus on ethical practices and regulatory compliance. #### **Key Financial Ratios (2024):** - **Total Liabilities to Stockholders' Equity:** 4.23 - **Unsubordinated Debt to Subordinated Debt Plus Stockholders' Equity:** 3.42 #### **Debt Overview:** - **Senior Debt:** $961.69 million - **Subordinated Debt:** $30.77 million - **Credit Facility:** $300.0 million with BMO Bank, N.A. #### **Operational Highlights:** - **Branch Offices:** 369 locations across nine states. - **Employees:** 1,713 as of December 31, 2024. - **Technology:** Investments in loan servicing and cybersecurity infrastructure. #### **Cybersecurity:** - **Risk Management:** Comprehensive cybersecurity program. - **Incidents:** Previous cyberattack in November 2022. - **Insurance:** Cybersecurity insurance coverage in place. #### **Regulatory Environment:** - **Compliance:** Adherence to federal and state regulations. - **Risk:** Potential impacts from regulatory changes and enforcement actions. #### **Conclusion:** 1st Franklin Financial Corporation demonstrates a strong strategic focus on growth and technological advancement while managing risks associated with economic uncertainty and regulatory compliance. The company's financial condition remains robust, supported by a diversified revenue stream and a strong liquidity position. The future outlook is positive, with continued expansion and strategic investments expected to drive further growth.