SECURITIES AND EXCHANGE COMMISSION
Washington, D.C 2049
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FORM 10-Q
(X)	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the Quarterly Period Ended June 30, 2001
OR
( )	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the transition period from ______________ to _____________
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Commission File Number 2-27985
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1st Franklin Financial Corporation
A Georgia Corporation		I.R.S. Employer No. 58-0521233
213 East Tugalo Street
Post Office Box 880
Toccoa, Georgia 30577
(706) 886-7571
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Indicate by check mark whether the registrant: (1) has filed reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class			Outstanding at July 31, 2001
Voting Common Stock, par value $100 per share			1,700 Shares
Non-Voting Common Stock, no par value			168,300 Shares
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PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements:
	The following financial statements required hereunder are incorporated by reference from the Company's Quarterly Report to Investors for the Six Months Ended June 30, 2001. See Exhibit 19
			Consolidated Statements of Financial Position:
					June 30, 2001 and December 31, 2000
			Consolidated Statements of Income and Retained Earnings:
					Six Months Ended June 30, 2001 and March 31, 2000
			Consolidated Statements of Cash Flows:
					Six Months Ended June 30, 2001 and June 30, 2000
			Notes to Consolidated Financial Statements
ITEM 2.	Managements' Discussion and Analysis of Financial Condition and Results of Operations:
	The information required hereunder is set forth under "Management's Letter" of the Company's Quarterly Report to Investors for the Six Months Ended June 30, 2001. See Exhibit 19.
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk:
	The information required hereunder is set forth under "Management's Letter", "Market Risk" sub-heading, of the Company's Quarterly Report to Investors for the Six Months Ended June 30, 2001. See Exhibit 19.
PART II. OTHER INFORMATION
ITEM 6.	Exhibits and Reports on Form 8-K
	(a)	Exhibits:
				19		Quarterly Report to Investors for the Six Months Ended June 30, 2001
	(b)	Reports on Form 8-K
				No reports on Form 8-K were filed during the quarter ended June 30, 2001

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
			1st FRANKLIN FINANCIAL CORPORATION
			Registrant
			/s/ Ben F. Cheek, III
			Chairman of Board
			/s/ A. Roger Guimond
			Vice President, Chief Financial
			Officer and Principal Accounting Officer
Date:	August 14, 2001
1st FRANKLIN FINANCIAL CORPORATION
INDEX TO EXHIBITS
Exhibit No..		Description		Page No.
19		Quarterly Report to Investors for the Six Months Ended June 30, 2001		4

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