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, 2002 | |
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, 2002 | |
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, 2002. See Exhibit 19. | ||||||
Consolidated Statements of Financial Position: | ||||||
June 30, 2002 and December 31, 2001 | ||||||
Consolidated Statements of Income and Retained Earnings: | ||||||
Three and Six Months Ended June 30, 2002 and June 30, 2001 | ||||||
Consolidated Statements of Cash Flows: | ||||||
Six Months Ended June 30, 2002 and June 30, 2001 | ||||||
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, 2002. See Exhibit 19. | ||||||
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk: | |||||
The information required hereunder is set forth under “Management's Letter --Quantitative and Qualitative Disclosures about Market Risk" of the Company's Quarterly Report to Investors for the Six Months Ended June 30, 2002. See Exhibit 19. | ||||||
PART II. OTHER INFORMATION | ||||||
ITEM 1. | LEGAL PROCEEDINGS | |||||
Lillie Barnes, et al. vs 1st Franklin Financial Corporation, et al.: Filed in the Circuit Court of Holmes County, Mississippi, Civil Action No. CV 2002-75. | ||||||
This lawsuit alleges fraud and deceit in the Company's sale of credit insurance, refinancing practices and use of arbitration agreements. The plaintiffs seek statutory, compensatory and punitive damages. The case was initially filed on February 21, 2002, but the defendants were not served until the latter part of June 2002. Action has been taken to remove the case to Federal Court based on the diversity of the defendants and to compel arbitration. Management believes that it is too early to asses the Company's potential liability in connection with this suit, and the Company is diligently contesting and defending this case. | ||||||
ITEM 6. | Exhibits and Reports on Form 8-K | |||||
(a) | Exhibits: | |||||
19 | Quarterly Report to Investors as of and for the Six Months Ended June 30, 2002 | |||||
(b) | Reports on Form 8-K | |||||
No reports on Form 8-K were filed during the quarter ended June 30, 2002 | ||||||
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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 16, 2002 | |||
1st FRANKLIN FINANCIAL CORPORATION | ||||
INDEX TO EXHIBITS | ||||
Exhibit No. | Description | Page No. | ||
19 | Quarterly Report to Investors as of and for the Six Months Ended June 30, 2002 | 4 | ||
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