Tue, May 20, 8:49 PM (33 days ago)
**1st Franklin Financial Corporation (FFFC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $103.0 million, up from $93.0 million in Q1 2024. - **Net Income:** $4.2 million, a 100% increase from $2.1 million in Q1 2024. - **Net Interest Income:** $71.8 million, up 14% from $62.9 million in Q1 2024. - **Provision for Credit Losses:** $21.5 million, up 10% from $19.7 million in Q1 2024. - **Total Assets:** $1.286 billion, down 2% from $1.312 billion in Q4 2024. - **Total Liabilities:** $1.035 billion, down 2% from $1.061 billion in Q4 2024. - **Stockholders' Equity:** $250.5 million, slightly down from $250.7 million in Q4 2024. **Profit Margins:** - **Net Margin:** 4.1% (Net Income / Total Revenue). - **Interest Coverage:** 5.1x (EBIT / Interest Expense). **Cash Flow:** - **Operating Cash Flow:** $28.7 million, up from $17.9 million in Q1 2024. - **Investing Cash Flow:** -$1.4 million, improved from -$12.4 million in Q1 2024. - **Financing Cash Flow:** -$23.0 million, improved from -$4.7 million in Q1 2024. **Earnings Changes:** - **Earnings per Share (EPS):** $24.68, up from $12.32 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher interest and finance charge revenue, and increased insurance premium and commission revenues. - **Net Income Growth:** Higher interest income and insurance income, partially offset by increased interest expense, provision for credit losses, and personnel expenses. - **Asset Decrease:** Due to decreases in the net loan portfolio, investment securities, and other assets, partially offset by increases in cash and cash equivalents and restricted cash. **Trends and Uncertainties:** - **Loan Portfolio:** Gross loan originations increased by $4.0 million, but the net loan portfolio decreased by $22.9 million. - **Investment Securities:** Decreased by $2.8 million due to fair market value decreases. - **Credit Quality:** The allowance for credit losses decreased by $2.9 million, but management believes it is adequate to cover expected losses. - **Liquidity:** The company expects sufficient liquidity from cash, cash equivalents, cash flows from operations, sales of debt securities, available lines of credit, and borrowings. **Future Operations Impact:** - **Growth Strategy:** The company plans to grow through strategic geographic expansion of its branch office network. - **Risk Management:** The company is addressing material weaknesses in internal control over financial reporting, particularly related to the conversion to and implementation of a new loan servicing system. - **Regulatory Environment:** The company is subject to various legal proceedings and regulatory changes that could impact its business. **Ticker:** FFFC