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<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
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<TR><TD valign=top width=638.4><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>Washington, D.C. 20549</B></P>
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<TR><TD valign=top width=638.4><P style="line-height:16pt; margin-top:0px; margin-bottom:18.667px; font-size:14pt" align=center><B>FORM 8-K</B></P>
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<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
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<TR><TD valign=top width=638.4><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
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</DIV><TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=212.8></TD><TD width=106.4></TD><TD width=30></TD><TD width=76.4></TD><TD width=127.6></TD><TD width=85.2></TD></TR>
<TR><TD valign=top width=319.2 colspan=2><P style="line-height:14pt; margin:0px; font-size:12pt">Date of report (Date of earliest event reported)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=319.2 colspan=4><P style="line-height:14pt; margin:0px; font-size:12pt">November 5, 2009 (November 3, 2009)</P>
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<TR><TD valign=top width=319.2 colspan=2><P>&nbsp;</P></TD><TD valign=top width=319.2 colspan=4><P>&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=638.4 colspan=6><P style="line-height:16pt; margin:0px; font-size:14pt" align=center>1<SUP>st</SUP> Franklin Financial Corporation</P>
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<TR><TD valign=top width=638.4 colspan=6><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Exact name of registrant as specified in its charter)</P>
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<TR><TD valign=top width=319.2 colspan=2><P>&nbsp;</P></TD><TD valign=top width=319.2 colspan=4><P>&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>Georgia</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=212.8 colspan=3><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>2-27985</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=212.8 colspan=2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>58-0521233</P>
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<TR><TD valign=top width=212.8><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(State or other jurisdiction <BR>
of incorporation)</P>
</TD><TD valign=top width=212.8 colspan=3><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Commission File Number)</P>
</TD><TD valign=top width=212.8 colspan=2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(IRS employer <BR>
Identification No.)</P>
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<TR><TD valign=top width=319.2 colspan=2><P>&nbsp;</P></TD><TD valign=top width=319.2 colspan=4><P>&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=553.2 colspan=5><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>135 East Tugalo Street, P.O. Box 880, Toccoa, Georgia</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=85.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>30577</P>
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<TR><TD valign=top width=553.2 colspan=5><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=85.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Zip Code)</P>
</TD></TR>
<TR><TD valign=top width=319.2 colspan=2><P>&nbsp;</P></TD><TD valign=top width=319.2 colspan=4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=349.2 colspan=3><P style="line-height:14pt; margin:0px; font-size:12pt">Registrant's telephone number, including area code</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=289.2 colspan=3><P style="line-height:14pt; margin:0px; font-size:12pt">(706) 886-7571</P>
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<TR><TD valign=top width=319.2 colspan=2><P>&nbsp;</P></TD><TD valign=top width=319.2 colspan=4><P>&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=638.4 colspan=6><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>n/a</P>
</TD></TR>
<TR><TD valign=top width=638.4 colspan=6><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Former name or former address, if changed since last report)</P>
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<DIV style="width:624px"><P style="margin:0px"><BR></P>
</DIV><TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=638.4></TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0px; margin-bottom:13.333px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0px; margin-bottom:13.333px">[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0px; margin-bottom:13.333px">[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0px; margin-bottom:13.333px">[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0px; margin-bottom:13.333px">[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Section 1 &#150; Registrant&#146;s Business and Operations</B></P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Item 1.01 &#150; Entry into a Material Definitive Agreement</B>.</P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">On November 3, 2009, 1<SUP>st</SUP> Franklin Financial Corporation (the &#147;Company&#148;) entered into a First Amendment (the &#147;First Amendment&#148;) to that certain Loan and Security Agreement dated as of September 11, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for lenders, and the other financial institutions from time to time party thereto. &nbsp;The following description of the First Amendment is qualified in its entirety by reference to the First Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by this reference. &nbsp;</P>
</TD></TR>
<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">The First Amendment increases the maximum amount the Company may borrow or reborrow under the Credit Agreement from $60.0 million to the lesser of the Borrowing Base (as defined) or $100.0 million. &nbsp;All other terms and conditions of the Credit Agreement remain uncharged.</P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Section 2 &#150; Financial Information</B></P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Item 2.03 &#150; Creation of a Direct Financial Obligation or an Obligation Under an Off Balance Sheet Arrangement of a Registrant</B></P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">The information under Item 1.01 is incorporated herein by reference</P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Section 9 &#150; Financial Statements and Exhibits</B></P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt"><B>Item 9.01 &#150; Financial Statements and Exhibits</B>.</P>
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<TR><TD valign=top width=67.2><P style="line-height:14pt; margin:0px; font-size:12pt">10.1</P>
</TD><TD valign=top width=571.2><P style="line-height:14pt; margin:0px; font-size:12pt">First Amendment to Loan and Security Agreement, dated as of November 3, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for Lenders, and the financial institutions from time to time party thereto.</P>
</TD></TR>
<TR><TD valign=top width=67.2><P>&nbsp;</P></TD><TD valign=top width=571.2><P>&nbsp;</P></TD></TR>
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<TR><TD valign=top width=638.4><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SIGNATURES</B></P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt">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 hereunto duly authorized.</P>
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<TR><TD valign=top width=638.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt">1<SUP>ST</SUP> FRANKLIN FINANCIAL CORPORATION</P>
</TD></TR>
<TR><TD valign=top width=638.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: &nbsp;<U>/s/ A. Roger Guimond</U></P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin-top:0px; margin-bottom:-18.667px; font-size:12pt">&nbsp;</P>
<P style="line-height:14pt; margin:0px; text-indent:384px; font-size:12pt">&nbsp;Name: &nbsp;A. Roger Guimond</P>
</TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt" align=right>&nbsp;&nbsp;Title: &nbsp;&nbsp;&nbsp;Executive Vice President and<BR>
Chief Financial Officer</P>
</TD></TR>
<TR><TD valign=top width=638.4><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="line-height:14pt; margin:0px; font-size:12pt">Date: &nbsp;November 5, 2009</P>
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<TR><TD valign=top width=638.4 colspan=2><P style="line-height:14pt; margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>EXHIBIT LIST</B></P>
</TD></TR>
<TR><TD valign=top width=67.2><P style="line-height:14pt; margin:0px; font-size:12pt">10.1</P>
</TD><TD valign=top width=571.2><P style="line-height:14pt; margin:0px; font-size:12pt">First Amendment to Loan and Security Agreement, dated as of November 3, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for Lenders, and the financial institutions from time to time party thereto.</P>
</TD></TR>
<TR><TD valign=top width=67.2><P>&nbsp;</P></TD><TD valign=top width=571.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=67.2><P>&nbsp;</P></TD><TD valign=top width=571.2><P>&nbsp;</P></TD></TR>
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_
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported)
November 5, 2009 (November 3, 2009)
1
st
Franklin Financial Corporation
(Exact name of registrant as specified in its charter)
Georgia
2-27985
58-0521233
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS employer
Identification No.)
135 East Tugalo Street, P.O. Box 880, Toccoa, Georgia
30577
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(706) 886-7571
n/a
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 1 – Registrant's Business and Operations
Item 1.01 – Entry into a Material Definitive Agreement
.
On November 3, 2009, 1
st
Franklin Financial Corporation (the "Company") entered into a First Amendment (the "First Amendment") to that certain Loan and Security Agreement dated as of September 11, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for lenders, and the other financial institutions from time to time party thereto.  The following description of the First Amendment is qualified in its entirety by reference to the First Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by this reference.
The First Amendment increases the maximum amount the Company may borrow or reborrow under the Credit Agreement from $60.0 million to the lesser of the Borrowing Base (as defined) or $100.0 million.  All other terms and conditions of the Credit Agreement remain uncharged.
Section 2 – Financial Information
Item 2.03 – Creation of a Direct Financial Obligation or an Obligation Under an Off Balance Sheet Arrangement of a Registrant
The information under Item 1.01 is incorporated herein by reference
Section 9 – Financial Statements and Exhibits
Item 9.01 – Financial Statements and Exhibits
.
10.1
First Amendment to Loan and Security Agreement, dated as of November 3, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for Lenders, and the financial institutions from time to time party thereto.
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 hereunto duly authorized.
1
ST
FRANKLIN FINANCIAL CORPORATION
By:
/s/ A. Roger Guimond
Name:  A. Roger Guimond
Title:    Executive Vice President and
Chief Financial Officer
Date:  November 5, 2009
EXHIBIT LIST
10.1
First Amendment to Loan and Security Agreement, dated as of November 3, 2009, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for Lenders, and the financial institutions from time to time party thereto.