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SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2023 AND 2022
ASSETS
20232022
CASH AND CASH EQUIVALENTS$4,348,911 $6,659,184 
RESTRICTED CASH 627,628 532,706 
LOANS:
Direct Cash Loans 972,567,737 911,821,593 
Real Estate Loans 29,812,798 37,323,155 
Sales Finance Contracts 175,548,110 146,507,130 
1,177,928,645 1,095,651,878 
Less: Unearned Finance Charges 174,043,203 154,630,023 
Unearned Insurance Commissions 27,944,898 26,914,714 
Allowance for Credit Losses 71,361,745 75,210,063 
904,578,799 838,897,078 
INVESTMENTS IN SUBSIDIARIES 278,856,873 248,545,940 
INVESTMENT SECURITIES:
Available for Sale, at fair market value 485,051 380,316 
OTHER ASSETS:
Land, Buildings, Equipment and Leasehold Improvements,
Less accumulated depreciation and amortization of $55,304,631 and $50,116,238 in 2023 and 2022, respectively
17,215,898 13,111,394 
Operating Lease Right-of-Use Assets41,938,371 38,153,238 
Miscellaneous 23,228,957 16,644,400 
82,383,226 67,909,032 
TOTAL ASSETS $1,271,280,488 $1,162,924,256 
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2023 AND 2022
LIABILITIES AND STOCKHOLDERS' EQUITY
20232022
SENIOR DEBT:
Bank Borrowings$122,050,000 $67,531,000 
Subsidiary Borrowings (Note 1)30,000,000 — 
Senior Demand Notes, including accrued interest100,568,430 112,325,674 
Commercial Paper661,573,356 624,585,553 
914,191,786 804,442,227 
ACCOUNTS PAYABLE AND ACCRUED EXPENSES:
Operating Lease Liabilities43,034,942 39,019,208 
Other Accounts Payable and Accrued Expenses20,936,706 31,163,971 
63,971,648 70,183,179 
SUBORDINATED DEBT28,533,940 29,005,826 
Total Liabilities1,006,697,374 903,631,232 
STOCKHOLDERS' EQUITY:
Preferred Stock; $100 par value
6,000 shares authorized; no shares issued or outstanding
— — 
Common Stock:
Voting Shares; $100 par value;
2,000 shares authorized; 1,700 shares issued and outstanding as of December 31, 2023 and 2022
170,000 170,000 
Non-Voting Shares; no par value;
198,000 shares authorized; 168,300 shares issued and outstanding as of December 31, 2023 and 2022
— — 
Accumulated Other Comprehensive Income (18,955,725)(26,401,816)
Retained Earnings 283,368,839 285,524,840 
Total Stockholders' Equity264,583,114 259,293,024 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,271,280,488 $1,162,924,256 
Senior Demand Notes, including accrued interest
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021
202320222021
INTEREST INCOME:
Finance Charges $276,974,396 $266,963,826 $236,651,728 
Investment Income 124,042 (18,381)309,412 
277,098,438 266,945,445 236,961,140 
INTEREST EXPENSE:
Senior Debt 43,951,125 27,483,876 22,786,460 
Subordinated Debt 1,099,749 971,958 977,093 
45,050,874 28,455,834 23,763,553 
NET INTEREST INCOME 232,047,564 238,489,611 213,197,587 
PROVISION FOR CREDIT LOSSES 87,387,765 84,287,916 42,183,163 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 144,659,799 154,201,695 171,014,424 
NET INSURANCE INCOME21,544,942 21,957,943 20,664,481 
OTHER REVENUE 7,882,862 6,939,179 7,029,120 
OPERATING EXPENSES:
Personnel Expense 111,763,367 113,732,789 109,011,575 
Occupancy Expense 20,705,383 18,173,248 17,382,787 
Other Expense 65,182,973 56,955,705 47,765,457 
197,651,723 188,861,742 174,159,819 
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES (23,564,120)(5,762,925)24,548,206 
PROVISION FOR INCOME TAXES 39,339 655,722 595,915 
EQUITY IN EARNINGS OF SUBSIDIARIES, Net of Tax 24,133,548 22,578,274 17,908,716 
NET INCOME $530,089 $16,159,627 $41,861,007 
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021
202320222021
Net Income$530,089 $16,159,627 $41,861,007 
Other Comprehensive Loss:
Net changes related to available-for-sale securities
Unrealized gain (loss)9,743,321 (45,165,474)(3,858,538)
Income tax (provision) benefit(2,026,463)9,479,082 816,053 
Net unrealized gain (loss)7,716,858 (35,686,392)(3,042,485)
Less reclassification of gain to net income270,767 452,074 487,791 
Total Other Comprehensive Income (Loss)7,446,091 (36,138,467)(3,530,276)
Total Comprehensive Income (Loss)$7,976,180 $(19,978,840)$38,330,731 
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021
Common StockRetained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
SharesAmount
Balance at December 31, 2020170,000170,000 265,002,401 13,266,927 278,439,328 
Comprehensive Income:
Net Income for 2021—— 41,861,007 — 
Other Comprehensive Loss—— — (3,530,276)
Total Comprehensive Income—— — — 38,330,731 
Cash Distributions Paid—— (20,012,306)— (20,012,306)
Balance at December 31, 2021170,000$170,000 $286,851,102 $9,736,651 $296,757,753 
Comprehensive Loss:
Net Income for 2022—— 16,159,627 — 
Other Comprehensive Loss—— — (36,138,467)
Total Comprehensive Loss—— — — (19,978,840)
Cash Distributions Paid—— (17,485,889)— (17,485,889)
Balance at December 31, 2022170,000$170,000 $285,524,840 $(26,401,816)$259,293,024 
Comprehensive Loss:
Net Income for 2023—— 530,089 — 
Other Comprehensive Income—— — 7,446,091 
Total Comprehensive Income—— — — 7,976,180 
Cash Distributions Paid—— (2,686,090)— (2,686,090)
Balance at December 31, 2023170,000$170,000 $283,368,839 $(18,955,725)$264,583,114 
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
1st FRANKLIN FINANCIAL CORPORATION
(Parent Company Only)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021
202320222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $530,089 $16,159,627 $41,861,007 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses 87,387,765 84,287,916 42,183,163 
Depreciation and amortization 6,606,132 4,425,985 4,629,756 
Equity in undistributed earnings of subsidiaries(24,133,548)(22,578,274)(17,908,716)
Net (gains) losses due to called redemptions of marketable securities, gain on sales of equipment and amortization on securities (104,735)38,232 (301,151)
(Increase) in miscellaneous assets and other (5,737,477)(7,647,230)(893,761)
Increase (Decrease) in other liabilities (8,792,129)(2,135,176)7,029,138 
Net Cash Provided 55,756,097 72,551,080 76,599,436 
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans originated or purchased (642,891,708)(602,792,430)(588,636,277)
Loan payments 489,822,223 471,094,166 451,062,343 
Capital expenditures (11,493,546)(5,219,242)(3,339,606)
Proceeds from sale of equipment — 22,929 35,088 
Net Cash Used (164,563,031)(136,894,577)(140,878,452)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in Senior Demand Notes (11,757,244)8,282,195 17,420,976 
Advances on bank credit line 239,172,362 213,677,200 164,964,653 
Payments on bank credit line (184,653,362)(206,446,200)(223,564,653)
Advances on subsidiary credit line30,000,000 — — 
Commercial paper issued 146,377,614 135,878,572 161,768,917 
Commercial paper redeemed (109,389,811)(63,485,901)(41,849,573)
Subordinated debt issued 6,795,654 5,759,655 6,963,742 
Subordinated debt redeemed(7,267,540)(6,446,173)(7,346,797)
Dividends / distributions paid (2,686,090)(17,485,889)(20,012,306)
Net Cash Provided 106,591,583 69,733,459 58,344,959 
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (2,215,351)5,389,962 (5,934,057)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning 7,191,890 1,801,928 7,735,985 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ending 4,976,539 7,191,890 1,801,928 
Supplemental Cash Flow Information:
Cash paid during the period for:
Interest paid41,752,170 27,264,793 23,000,475 
Income taxes paid39,000 309,000 219,000 
Non-Cash Transactions
ROU assets and associated liabilities10,311,099 9,553,566 7,069,375