Exhibit 19 |
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1st |
FRANKLIN |
FINANCIAL |
CORPORATION |
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QUARTERLY |
REPORT TO INVESTORS |
AS OF AND FOR THE |
THREE MONTHS ENDED |
MARCH 31, 2007 |
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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The Company was subject to the following contractual obligations and commitments at March 31, 2007: | ||||||||
| 04/01/07 thru 12/31/07 | 2008 | 2009 | 2010 | 2011 | 2012 & Beyond | Total | |
| (in Millions) | |||||||
Credit Line * | $ .4 | $ .6 | $ 7.6 | $ - | $ - | $ - | $ 8.6 | |
Bank Commitment Fee * | - | .1 | .1 | - | - | - | .2 | |
Senior Notes * | 53.6 | - | - | - | - | - | 53.6 | |
Commercial Paper * | 111.8 | - | - | - | - | - | 111.8 | |
Subordinated Debt * | 5.4 | 9.1 | 11.2 | 45.8 | 17.8 | - | 89.3 | |
Operating Leases | 3.4 | 3.9 | 2.2 | 1.4 | .8 | .1 | 11.8 | |
Capitalized Leases (Equipment) | .1 | .2 | - | - | - | - | .3 | |
Software Service Contract ** | 1.8 | 2.4 | 2.4 | 2.4 | 2.4 | 7.1 | 18.5 | |
Data Communication Lines Contract ** | 2.0 | 1.8 | - | - | - | - | 3.8 | |
Total | $ 178.5 | $ 18.1 | $23.5 | $ 49.6 | $ 21.0 | $ 7.2 | $ 297.9 | |
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* Note: Includes estimated interest at current rates ** Note: Based on current usage |
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Critical Accounting Policies: The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States and conform to general practices within the financial services industry. The Company’s more critical accounting and reporting policies include the allowance for loan losses, revenue recognition and insurance claims reserve. The allowance for loan losses is based on the Company's previous loss experience, a review of specifically identified loans where collection is doubtful and Management's evaluation of the inherent risks and changes in the composition of the Company's loan portfolio. Specific provision for loan losses is made for impaired loans based on a comparison of the recorded carrying value in the loan to either the present value of the loan’s expected cash flow, the loan’s estimated market price or the estimated fair value of the underlying collateral. Accounting principles generally accepted in the United States require that an interest yield method be used to calculate the income recognized on accounts which have precomputed charges. An interest yield method is used by the Company on each individual precomputed account to calculate income for on-going precomputed accounts; however, state regulations often allow interest refunds to be made according to the Rule of 78’s method for payoffs and renewals. Since the majority of the Company's precomputed accounts are paid off or renewed prior to maturity, the result is that most of the precomputed accounts effectively yield on a Rule of 78's basis. Precomputed finance charges are included in the gross amount of certain direct cash loans, sales finance contracts and certain real estate loans. These precomputed charges are deferred and recognized as income on an accrual basis using the effective interest method. Some other cash loans and real estate loans, which are not precomputed, have income recognized on a simple interest accrual basis. Income is not accrued on a loan that is more than 60 days past due. Loan fees and origination costs are deferred and recognized as an adjustment to the loan yield over the contractual life of the related loan. The property and casualty credit insurance policies written by the Company, as agent for a non-affiliated insurance company, are reinsured by the Company’s property and casualty insurance subsidiary. The premiums on these policies are deferred and earned over the period of insurance coverage using the pro-rata method or the effective yield method, depending on whether the amount of insurance coverage generally remains level or declines. The credit life and accident and health insurance policies written by the Company, as agent for a non-affiliated insurance company, are reinsured by the Company’s life insurance subsidiary. The premiums are deferred and earned using the pro-rata method for level-term life insurance policies and the effective yield method for decreasing-term life policies. Premiums on accident and health insurance policies are earned based on an average of the pro-rata method and the effective yield method. Included in unearned insurance premiums and commissions on the consolidated statements of financial position are reserves for incurred but unpaid credit insurance claims for policies written by the Company and reinsured by the Company’s wholly-owned insurance subsidiaries. These reserves are established based on generally accepted actuarial methods. In the event that the Company’s actual reported losses for any given period are materially in excess of the previous estimated amounts, such losses could have a material adverse effect on the Company’s results of operations. Different assumptions in the application of these policies could result in material changes in the Company’s consolidated financial position or consolidated results of operations. Recent Accounting Pronouncements: In June 2006, the Financial Accounting Standards Board (the “FASB”) issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), an interpretation of FASB No. 109, “Accounting for Income Taxes”. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in financial statements by prescribing how companies should recognize, measure, present and disclose uncertain tax positions that have been taken on a tax return. The Company adopted FIN 48 effective January 1, 2007 and there was no impact on its consolidated financial statements. In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. (“SFAS No. 157”), which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements disclosures about fair measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new assets or liabilities to be measured at fair value. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Company is currently evaluating the impact that SFAS No. 157 may have on its consolidated financial statements. In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115,” (“SFAS No. 159”), which permits companies to choose to measure many financial instruments and certain other items at fair value. SFAS No. 109 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the effect that SFAS No. 159 may have on its consolidated financial statements. Forward Looking Statements: Certain information in this discussion and other statements contained in this Quarterly Report, which are not historical facts, may be forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements involve known and unknown risks and uncertainties. The Company's results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Possible factors which could cause future results to differ from expectations include, but are not limited to, adverse general economic conditions including the changes in interest rate environment, unexpected reductions in the size or collectibility of amounts in our loan portfolio, reduced sales of our securities, federal and state regulatory changes affecting consumer finance companies, unfavorable outcomes in legal proceedings and other factors referenced elsewhere in our filings with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update any forward-looking statements. |
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1st FRANKLIN FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||
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| March 31, | December 31, |
| 2007 | 2006 |
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ASSETS | ||
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CASH AND CASH EQUIVALENTS | $ 24,717,855 | $ 24,028,767 |
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RESTRICTED CASH | 1,945,304 | 1,869,583 |
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LOANS: Direct Cash Loans Real Estate Loans Sales Finance Contracts Less: Unearned Finance Charges Unearned Insurance Premiums and Commissions
Allowance for Loan Losses Net Loans | 256,264,213 24,334,250 34,530,938 315,129,401 33,995,579 19,020,596 18,085,085 244,028,141 | 267,999,176 23,563,575 33,724,033 325,286,784 36,615,665 20,723,607 18,085,085 249,862,427 |
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INVESTMENT SECURITIES: Available for Sale, at fair market Held to Maturity, at amortized cost | 53,333,022 20,986,008 74,319,030 | 52,032,039 21,034,074 73,066,113 |
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OTHER ASSETS | 12,782,800 | 13,740,379 |
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TOTAL ASSETS | $ 357,793,130 | $ 362,567,269 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||
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SENIOR DEBT | $ 168,626,092 | $ 181,474,304 |
OTHER LIABILITIES | 13,049,839 | 15,538,750 |
SUBORDINATED DEBT | 74,069,335 | 67,189,657 |
Total Liabilities | 255,745,266 | 264,202,711 |
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STOCKHOLDERS' EQUITY: |
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Preferred Stock; $100 par value | -- | -- |
Common Stock Voting Shares; $100 par value; 2,000 shares authorized; 1,700 shares outstanding Non-Voting Shares; no par value; 198,000 shares authorized; 168,300 shares outstanding | 170,000 -- | 170,000 -- |
Accumulated Other Comprehensive Income | 320,066 | 243,805 |
Retained Earnings | 101,557,798 | 97,950,753 |
Total Stockholders' Equity | 102,047,864 | 98,364,558 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 357,793,130 | $ 362,567,269 |
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See Notes to Consolidated Financial Statements |
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1st FRANKLIN FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS | ||
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| Quarter Ended | |
| March 31 | |
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| 2007 | 2006 |
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INTEREST INCOME | $ 22,028,308 | $ 19,316,201 |
INTEREST EXPENSE | 3,647,063 | 2,433,751 |
NET INTEREST INCOME | 18,381,245 | 16,882,450 |
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Provision for Loan Losses | 3,806,625 | 3,503,470 |
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 14,574,620 | 13,378,980 |
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NET INSURANCE INCOME Premiums Insurance Claims and Expenses | 8,168,207 1,537,864 6,630,343 | 7,412,865 1,452,399 5,960,466 |
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OTHER REVENUE | 975,965 | 172,543 |
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OTHER OPERATING EXPENSES: Personnel Expense Occupancy Expense Other Total | 10,780,605 2,316,588 4,754,820 17,852,013 | 10,027,226 2,189,023 4,460,227 16,676,476 |
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INCOME BEFORE INCOME TAXES | 4,328,915 | 2,835,513 |
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Provision for Income Taxes | 716,016 | 666,186 |
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NET INCOME | 3,612,899 | 2,169,327 |
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RETAINED EARNINGS, Beginning of Period | 97,950,753 | 90,746,492 |
Distributions on Common Stock | (5,854) | -- |
RETAINED EARNINGS, End of Period | $101,557,798 | $92,915,819 |
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BASIC EARNINGS PER SHARE: 170,000 Shares Outstanding for all Periods (1,700 voting, 168,300 non-voting) | $21.25 | $12.76 |
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See Notes to Consolidated Financial Statements | ||
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1ST FRANKLIN FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
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| Quarter Ended | |
| March 31, | |
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| 2007 | 2006 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net Income | $ 3,612,899 | $ 2,169,327 |
Adjustments to reconcile net income to net cash provided by operating activities: Provision for Loan Losses Depreciation and Amortization Prepaid Income Taxes Other, net Decrease in Miscellaneous Assets Decrease in Other Liabilities Net Cash Provided | 3,806,625 485,002 (41,167) 38,596 1,694,352 (3,215,633) 6,380,674 | 3,503,470 458,283 (4,708) 19,887 772,097 (1,884,976) 5,033,380 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Loans originated or purchased Loan payments Increase in restricted cash Purchases of marketable debt securities Redemptions of marketable debt securities Fixed asset additions, net Net Cash Provided (Used) | (49,329,881) 51,357,542 (75,721) (4,015,785) 2,876,000 (529,353) 282,802 | (49,642,236) 49,687,110 (12,745) (4,159,173) 2,658,000 (519,470) (1,988,514) |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Decrease in senior debt Subordinated debt issued Subordinated debt redeemed Dividends / Distributions Net Cash Used | (12,848,212) 13,429,683 (6,550,005) (5,854) (5,974,388) | (8,819,910) 9,105,986 (1,756,467) -- (1,470,391) |
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NET INCREASE IN CASH AND CASH EQUIVALENTS | 689,088 | 1,574,475 |
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CASH AND CASH EQUIVALENTS, beginning | 24,028,767 | 13,988,091 |
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CASH AND CASH EQUIVALENTS, ending | $ 24,717,855 | $ 15,562,566 |
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Cash paid during the period for: Interest Income Taxes | $ 3,662,141 31,208 | $ 2,411,577 32,231 |
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See Notes to Consolidated Financial Statements | ||
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9
-NOTES TO UNAUDITED FINANCIAL STATEMENTS- | |
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Note 1 – Basis of Presentation | |
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| The accompanying interim financial information of 1st Franklin Financial Corporation and subsidiaries (the "Company") should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto as of December 31, 2006 and for the year then ended included in the Company's December 31, 2006 Annual Report. |
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| In the opinion of Management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company's financial position as of March 31, 2007 and December 31, 2006 and the results of its operations and cash flows for the three months ended March 31, 2007 and 2006. While certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, the Company believes that the disclosures herein are adequate to make the information presented not misleading. |
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| The results of operations for the three months ended March 31, 2007 are not necessarily indicative of the results to be expected for the full fiscal year. |
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| The computation of earnings per share is self-evident from the Consolidated Statements of Income and Retained Earnings. |
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| Recent Accounting Pronouncements: In June 2006, the Financial Accounting Standards Board (the “FASB”) issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), an interpretation of FASB No. 109, “Accounting for Income Taxes”. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in financial statements by prescribing how companies should recognize, measure, present and disclose uncertain tax positions that have been taken on a tax return. The Company adopted FIN 48 effective January 1, 2007 and there was no impact on its consolidated financial statements. In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. (“SFAS No. 157”), which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements disclosures about fair measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new assets or liabilities to be measured at fair value. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Company is currently evaluating the impact that SFAS No. 157 may have on its consolidated financial statements. In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115,” (“SFAS No. 159”), which permits companies to choose to measure many financial instruments and certain other items at fair value. SFAS No. 109 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the effect that SFAS No. 159 may have on its consolidated financial statements. |
Note 2 – Allowance for Loan Losses | |||
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| An analysis of the allowance for loan losses for the three-month periods ended March 31, 2007 and 2006 is shown in the following table: | ||
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| Three Months Ended March 31, 2007 | Three Months Ended March 31, 2006 |
| Beginning Balance Provision for Loan Losses Charge-offs Recoveries Ending Balance | $ 18,085,085 3,806,625 (5,348,493) 1,541,868 $ 18,085,085 | $ 16,885,085 3,503,470 (4,632,585) 1,429,115 $ 17,185,085 |
Note 3 – Investment Securities | |||||
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| Debt securities available for sale are carried at estimated fair market value. Debt securities designated as "Held to Maturity" are carried at amortized cost based on Management's intent and ability to hold such securities to maturity. The amortized cost and estimated fair market values of these debt securities were as follows: | ||||
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| Amortized Cost | Estimated Fair Market Value | Amortized Cost | Estimated Fair Market Value |
| Available for Sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies Obligations of states and political subdivisions Corporate securities | $ 11,514,010 41,429,492 130,316 $ 53,073,818 | $ 11,398,546 41,178,368 756,108 $ 53,333,022 | $ 12,512,644 39,275,384 130,316 $ 51,918,344 | $ 12,348,660 38,941,756 741,623 $ 52,032,039 |
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| As of March 31, 2007 | As of December 31, 2006 | ||
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| Amortized Cost | Estimated Fair Market Value | Amortized Cost | Estimated Fair Market Value |
Held to Maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies Obligations of states and political subdivisions | $ 5,466,935 15,519,073 $ 20,986,008 | $ 5,368,577 15,545,870 $ 20,914,447 | $ 5,467,437 15,566,637 $ 21,034,074 | $ 5,340,055 15,593,207 $ 20,933,262 |
| Gross unrealized losses totaled $685,321 and $866,394 at March 31, 2007 and December 31, 2006, respectively. The following table provides an analysis of investment securities in an unrealized loss position for which other-than-temporary impairments have not been recognized as of March 31, 2007: | ||||||
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| Less than 12 Months | 12 Months or Longer | Total | |||
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| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses |
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| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ -- | $ -- | $ 9,463,437 | $ 128,600 | $ 9,463,437 | $ 128,600 |
| Obligations of states and political subdivisions | 6,492,041 | 21,987 | 20,334,949 | 358,285 | 26,826,990 | 380,272 |
| Total | 6,492,041 | 21,987 | 29,798,386 | 486,885 | 36,290,427 | 508,872 |
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| Less than 12 Months | 12 Months or Longer | Total | |||
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| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses |
| Held to Maturity: |
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| U.S. Treasury securities and obligations of U.S. government corporations and agencies | -- | -- | 4,660,483 | 100,758 | 4,660,483 | 100,758 |
| Obligations of states and political subdivisions | 1,592,047 | 3,017 | 4,181,907 | 72,674 | 5,773,954 | 75,691 |
| Total | 1,592,047 | 3,017 | 8,842,390 | 173,432 | 10,434,437 | 176,449 |
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| Overall Total | $ 8,084,088 | $ 25,004 | $ 38,640,776 | $ 660,317 | $ 46,724,864 | $ 685,321 |
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The table above represents 143 investments held by the Company, the majority of which are rated AAA by Standard & Poor’s, which is the highest rating given by this service. The unrealized losses on the Company’s investments listed in the above table were primarily the result of interest rate increases. The total impairment was less than 2% of the fair value of the affected investments. Based on the ratings of these investments, the Company’s ability and intent to hold these investments until a recovery of fair value and after considering the severity and duration of the impairments, the Company does not consider the impairment of these investments to be other-than-temporary at March 31, 2007. |
Note 4 – Commitments and contingencies | |
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| The Company is involved in various legal proceedings incidental to its business from time to time. In the opinion of Management, the ultimate resolution of any such known claims or lawsuits is not expected to have a material effect on the Company's financial position, liquidity or results of operations. |
Note 5 – Income Taxes | |
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| Effective income tax rates were 17% and 23% during the three-month periods ended March 31, 2007 and 2006, respectively. The Company has elected to be treated as an S Corporation for income tax reporting purposes. Taxable income or loss of an S Corporation is included in the individual tax returns of the stockholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for the Company's insurance subsidiaries, as they are not allowed by law to be treated as S Corporation, as well as for the Company in Louisiana, which does not recognize S Corporation status. The tax rates of the Company’s insurance subsidiaries are below statutory rates due to (i) certain benefits provided by law to life insurance companies, which reduce the effective tax rates and (ii) investments in tax exempt bonds held by the Company’s property insurance subsidiary. |
Note 6 – Other Comprehensive Income | |
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| Comprehensive income was $3.7 million for the three-month period ended March 31, 2007 as compared to $1.8 million for the same period in 2006. Accumulated other comprehensive income consisted solely of unrealized gains and losses on investment securities available for sale, net of applicable deferred taxes. The Company recorded $.1 million in other comprehensive gains during the three-month period ended March 31, 2007. During the same prior year period, the Company recorded $.4 million in other comprehensive losses. |
Note 7 – Line of Credit | |
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| The Company has an external source of funds through available borrowings under a credit agreement. The credit agreement provides for maximum borrowings of $50.0 million or 80% of our net finance receivables (as defined in the credit agreement), whichever is less. Our credit agreement has a commitment termination date of December 15, 2009 and contains covenants customary for financing transactions of this type. Available borrowings under the agreement were $43.0 million and $25.2 million at March 31, 2007 and December 31, 2006, respectively. |
Note 8 – Related Party Transactions | |
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| The Company engages from time to time in other transactions with related parties. Please refer to the disclosure contained under the heading “Certain Relationships and Related Transactions” contained in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2006 for additional information on related party transactions. |
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Note 9 - Segment Financial Information |
| The Company has six reportable segments. Division I through Division V and Division VII. Each segment is comprised of a number of branch offices that are aggregated based on vice president responsibility and geographic location. Division I is comprised of offices located in South Carolina. Offices in North Georgia comprise Division II, Division III is comprised of offices in South Georgia, and Division VII is comprised of offices in West Georgia. Division IV represents our Alabama offices and our offices in Louisiana and Mississippi encompass Division V. Division VI is reserved for future use. Accounting policies of the segments are the same as those described in the summary of significant accounting policies. Performance is measured based on objectives set at the beginning of each year and include various factors such as segment profit, growth in earning assets and delinquency and loan loss management. All segment revenues result from transactions with third parties. The Company does not allocate income taxes or corporate headquarter expenses to the segments. The following table summarizes assets, revenues and profit by business segment. A reconciliation to consolidated net income is also provided. |
| Division | Division | Division | Division | Division | Division |
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| I | II | III | IV | V | VII | Total |
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Segment Revenues: |
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3 Months ended 3/31/07 | $ 3,755 | $ 4,147 | $ 6,534 | $ 5,220 | $ 4,762 | $ 5,008 | $ 29,426 |
3 Months ended 3/31/06 | 3,621 | 3,558 | 5,591 | 4,426 | 3,549 | 4,426 | 25,171 |
Segment Profit: |
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3 Months ended 3/31/07 | $ 652 | $ 1,452 | $ 2,656 | $ 1,983 | $ 1,535 | $ 1,980 | $ 10,258 |
3 Months ended 3/31/06 | 627 | 1,182 | 2,223 | 1,773 | 881 | 1,800 | 8,486 |
Segment Assets: |
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3/31/07 | $ 35,055 | $ 40,246 | $ 60,546 | $ 54,009 | $ 39,690 | $ 47,310 | $ 276,856 |
3/31/06 | 32,751 | 33,864 | 53,801 | 41,429 | 30,413 | 40,441 | 232,699 |
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| 3 Months Ended 3/31/07 (in 000's) | 3 Months Ended 3/31/06 (in 000's) |
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Reconciliation of Profit: |
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Profit per segments | $ 10,258 | $ 8,486 |
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Corporate earnings (losses) not allocated | 1,747 | 1,730 |
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Corporate expenses not allocated | (7,676) | (7,381) |
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Income taxes not allocated | (716) | (666) |
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Net income | $ 3,613 | $ 2,169 |
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BRANCH OPERATIONS | |
Ronald E. Byerly | Vice President |
Dianne H. Moore | Vice President |
Ronald F. Morrow | Vice President |
J. Patrick Smith, III | Vice President |
Virginia K. Palmer | Vice President |
Michael J. Whitaker | Vice President |
REGIONAL OPERATIONS DIRECTORS | |||
Sonya Acosta | Patricia Dunaway | Sharon Langford | Marty Miskelly |
Bert Brown | Shelia Garrett | Jeff Lee | Mike Olive |
Keith Chavis | Brian Gray | Mike Lee | Hilda Phillips |
Rick Childress | Harriet Healey | Tommy Lennon | Henrietta Reathford |
Bryan Cook | Jack Hobgood | Jimmy Mahaffey | Michelle Rentz |
Jeremy Cranfield | Bruce Hooper | Judy Mayben | Gaines Snow |
Joe Daniel | Jerry Hughes | Brian McSwain | Marc Thomas |
Loy Davis | Janice Hyde | Roy Metzger | Lynn Vaughan |
Glenn Drawdy | Judy Landon |
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BRANCH OPERATIONS | |||||
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ALABAMA | |||||
Albertville | Center Point | Fayette | Moody | Ozark | Selma |
Alexander City | Clanton | Florence | Moulton | Pelham | Sylacauga |
Andalusia | Cullman | Gadsden | Muscle Shoals | Prattville | Troy |
Arab | Decatur | Hamilton | Opelika | Russellville (2) | Tuscaloosa |
Athens | Dothan | Huntsville (2) | Opp | Scottsboro | Wetumpka |
Bessemer | Enterprise | Jasper | Oxford |
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GEORGIA | |||||
Adel | Canton | Dahlonega | Glennville | Madison | Statesboro |
Albany | Carrollton | Dallas | Gray | Manchester | Stockbridge |
Alma | Cartersville | Dalton | Greensboro | McDonough | Swainsboro |
Americus | Cedartown | Dawson | Griffin (2) | Milledgeville | Sylvania |
Athens (2) | Chatsworth | Douglas (2) | Hartwell | Monroe | Sylvester |
Bainbridge | Clarkesville | Douglasville | Hawkinsville | Montezuma | Thomaston |
Barnesville | Claxton | East Ellijay | Hazlehurst | Monticello | Thomson |
Baxley | Clayton | Eastman | Helena | Moultrie | Tifton |
Blairsville | Cleveland | Eatonton | Hinesville (2) | Nashville | Toccoa |
Blakely | Cochran | Elberton | Hogansville | Newnan | Valdosta (2) |
Blue Ridge | Colquitt | Fitzgerald | Jackson | Perry | Vidalia |
Bremen | Commerce | Flowery Branch | Jasper | Pooler | Villa Rica |
Brunswick | Conyers | Forsyth | Jefferson | Richmond Hill | Warner Robins |
Buford | Cordele | Fort Valley | Jesup | Rome | Washington |
Butler | Cornelia | Gainesville | LaGrange | Royston | Waycross |
Cairo | Covington | Garden City | Lavonia | Sandersville | Waynesboro |
Calhoun | Cumming | Georgetown | Lawrenceville | Savannah | Winder |
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LOUISIANA | |||||
Alexandria | DeRidder | Hammond | Lafayette | Morgan City | Opelousas |
Crowley | Eunice ** | Houma | Leesville | Natchitoches | Pineville |
Denham Springs | Franklin | Jena | Marksville | New Iberia | Prairieville |
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BRANCH OPERATIONS | |||||
(Continued) | |||||
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MISSISSIPPI | |||||
Batesville | Corinth | Hazlehurst | Kosciusko | Newton | Senatobia |
Bay St. Louis | Forest | Hernando | Magee | Oxford | Starkville |
Booneville | Grenada | Houston | McComb | Pearl | Tupelo |
Carthage | Gulfport | Iuka | Meridian | Picayune | Winona |
Columbia | Hattiesburg | Jackson | New Albany | Ripley |
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SOUTH CAROLINA | |||||
Aiken | Charleston | Easley | Lancaster | North Augusta | Simpsonville |
Anderson | Chester | Florence | Laurens | North Charleston | Spartanburg |
Barnwell | Clemson | Gaffney | Lexington | North Greenville | Summerville |
Batesburg- Leesvile | Columbia | Greenville | Lugoff | Orangeburg | Sumter |
Boiling Springs | Conway | Greenwood | Marion | Rock Hill | Union |
Cayce | Dillon | Greer | Newberry | Seneca | York |
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** Note: Opened April 2007 |
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DIRECTORS | |
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Ben F. Cheek, III Chairman and Chief Executive Officer 1st Franklin Financial Corporation | C. Dean Scarborough Realtor |
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Ben F. Cheek, IV Vice Chairman 1st Franklin Financial Corporation | Jack D. Stovall President, Stovall Building Supplies, Inc. |
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A. Roger Guimond Executive Vice President and Chief Financial Officer 1st Franklin Financial Corporation | Dr. Robert E. Thompson Retired Physician |
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John G. Sample, Jr. Senior Vice President and Chief Financial Officer Atlantic American Corporation | Keith D. Watson Vice President and Corporate Secretary Bowen & Watson, Inc. |
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EXECUTIVE OFFICERS |
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Ben F. Cheek, III Chairman and Chief Executive Officer |
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Ben F. Cheek, IV Vice Chairman |
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Virginia C. Herring President |
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A. Roger Guimond Executive Vice President and Chief Financial Officer |
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J. Michael Culpepper Executive Vice President and Chief Operating Officer |
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C. Michael Haynie Executive Vice President - Human Resources |
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Kay S. Lovern Executive Vice President – Strategic and Organization Development |
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Lynn E. Cox Vice President / Corporate Secretary and Treasurer |
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LEGAL COUNSEL |
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Jones Day 1420 Peachtree Street, N.E. Suite 800 Atlanta, Georgia 30309-3053 |
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AUDITORS |
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Deloitte & Touche LLP 191 Peachtree Street, N.E. Atlanta, Georgia 30303 |
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