Wed, May 15, 2:57 PM (72 days ago)
1st Franklin Financial Corporation's Form 10-Q for the quarter ended March 31, 2024, reports a slight decrease in total assets by $9.2 million (1%) to $1,231.1 million from December 31, 2023. The decrease is primarily due to a reduction in the net loan portfolio, partially offset by an increase in other assets. Cash and cash equivalents decreased by $1.4 million, while restricted cash increased by $2.1 million. Gross loan originations rose by $34.1 million year-over-year, although the net loan portfolio saw a 1% decrease. The allowance for credit losses was reduced by $2.6 million to $68.8 million, reflecting an improved macroeconomic outlook. Total revenues for the quarter increased to $93.0 million from $84.3 million in the same period last year, driven by higher interest and finance charge revenue. Net income reached $2.1 million, a significant increase of $8.8 million (131%) compared to the prior year, attributed to increased interest income and a lower provision for credit losses, despite higher interest costs and operating expenses. The report also notes no material changes in legal proceedings and no significant impact on the company's financial position or liquidity from these proceedings. The company maintains sufficient liquidity through cash reserves, investment securities, and a revolving credit facility with Wells Fargo Bank, N.A. The company successfully defended a consolidated class action lawsuit related to a cyber-attack, with the court dismissing the case. However, the plaintiffs may still appeal. Future operations are expected to be stable, with adequate liquidity projected to meet financial obligations.