Thu, Aug 15, 10:02 AM (152 days ago)
For the quarter ending June 30, 2024, 1st Franklin Financial Corporation reported total revenues of $93.7 million, reflecting a year-over-year increase of 9.4% from $85.3 million in Q2 2023. This growth was driven by higher interest and finance charges from an expanded loan portfolio and increased insurance income. However, the company recorded a slight net loss of $9.6 thousand for Q2 2024, compared to a profit of $644.1 thousand in the same period last year, primarily due to rising interest expenses which surged 32% to $13.3 million. For the six months ending June 30, 2024, net income rose to $2.1 million, a significant recovery from a loss of $6 million in the prior year. The company’s total assets increased marginally to $1.24 billion, with cash and cash equivalents up 21% to $27.6 million. The allowance for credit losses decreased slightly to $70.8 million, indicating improved credit quality. Looking ahead, 1st Franklin remains cautious about economic uncertainties impacting loan performance and interest rates. The company has a robust liquidity position, with $27.6 million in cash and available borrowings under its credit facility. Overall, the financial health appears stable, but management emphasizes vigilance in monitoring credit risks and operational costs.