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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; font-size:12pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>Washington, D.C. 20549</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin-top:0px; margin-bottom:18.667px; font-size:14pt" align=center><B>FORM 8-K</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="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="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=212.8 /><TD width=106.4 /><TD width=30 /><TD width=76.4 /><TD width=127.6 /><TD width=85.2 /></TR>
<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; font-size:12pt">Date of report (Date of earliest event reported)</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2 colspan=4><P style="margin:0px; font-size:12pt">September 21, 2011 (September 20, 2011)</P>
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<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=319.2 colspan=4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=6><P style="margin:0px; font-size:14pt" align=center>1<SUP>st</SUP> Franklin Financial Corporation</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=6><P style="margin:0px; font-size:12pt" align=center>(Exact name of registrant as specified in its charter)</P>
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<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=319.2 colspan=4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=212.8><P style="margin:0px; font-size:12pt" align=center>Georgia</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=212.8 colspan=3><P style="margin:0px; font-size:12pt" align=center>2-27985</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=212.8 colspan=2><P style="margin:0px; font-size:12pt" align=center>58-0521233</P>
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<TR><TD style="margin-top:0px" valign=top width=212.8><P style="margin:0px; font-size:12pt" align=center>(State or other jurisdiction <BR>
of incorporation)</P>
</TD><TD style="margin-top:0px" valign=top width=212.8 colspan=3><P style="margin:0px; font-size:12pt" align=center>(Commission File Number)</P>
</TD><TD style="margin-top:0px" valign=top width=212.8 colspan=2><P style="margin:0px; font-size:12pt" align=center>(IRS employer <BR>
Identification No.)</P>
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<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=319.2 colspan=4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=553.2 colspan=5><P style="margin:0px; font-size:12pt" align=center>135 East Tugalo Street, P.O. Box 880, Toccoa, Georgia</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=85.2><P style="margin:0px; font-size:12pt" align=center>30577</P>
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<TR><TD style="margin-top:0px" valign=top width=553.2 colspan=5><P style="margin:0px; font-size:12pt" align=center>(Address of principal executive offices)</P>
</TD><TD style="margin-top:0px" valign=top width=85.2><P style="margin:0px; font-size:12pt" align=center>(Zip Code)</P>
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<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=319.2 colspan=4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=349.2 colspan=3><P style="margin:0px; font-size:12pt">Registrant's telephone number, including area code</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=289.2 colspan=3><P style="margin:0px; font-size:12pt">(706) 886-7571</P>
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<TR><TD style="margin-top:0px" valign=top width=319.2 colspan=2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=319.2 colspan=4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=6><P style="margin:0px; font-size:12pt" align=center>n/a</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=6><P style="margin:0px; font-size:12pt" align=center>(Former name or former address, if changed since last report)</P>
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</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=638.4 /></TR>
<TR><TD style="margin-top:0px" 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 style="margin-top:0px" 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 style="margin-top:0px" 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>
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<TR><TD style="margin-top:0px" 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>
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<TR><TD style="margin-top:0px" 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 style="margin-top:0px" valign=top width=638.4 colspan=2><P style="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 style="margin-top:0px" valign=top width=638.4 colspan=2><P style="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 style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin-top:0px; margin-bottom:16px; font-size:12pt">1<SUP>st</SUP> Franklin Financial Corporation (the &#147;Company&#148;) has previously entered into 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;Effective September 20, 2011, the parties thereto entered into a Third Amendment (the &#147;Third Amendment&#148;) to the Credit Agreement. &nbsp;</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin-top:0px; margin-bottom:16px; font-size:12pt">The Third Amendment extends the maturity date of the Credit Agreement from September 11, 2013 to September 11, 2014. &nbsp;All other terms and conditions of the Credit Agreement remain unchanged.</P>
<P style="margin-top:0px; margin-bottom:16px; font-size:12pt">The foregoing description of the Third Amendment is qualified in its entirety by reference to the Third Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by this reference</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="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 style="margin-top:0px" valign=top width=638.4 colspan=2><P style="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 style="margin-top:0px" valign=top width=67.2><P style="margin:0px; font-size:12pt">10.1</P>
</TD><TD style="margin-top:0px" valign=top width=571.2><P style="margin:0px; font-size:12pt">Third Amendment to Loan and Security Agreement, dated as of September 20, 2011, 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>
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<TR><TD style="margin-top:0px" valign=top width=67.2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=571.2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>SIGNATURES</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="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 style="margin-top:0px" valign=top width=638.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; font-size:12pt">1<SUP>ST</SUP> FRANKLIN FINANCIAL CORPORATION</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4><P style="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>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin-top:0px; margin-bottom:-2px; width:384px; font-size:12pt; float:left">&nbsp;</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt">&nbsp;Name: &nbsp;A. Roger Guimond</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; font-size:12pt" align=right>&nbsp;&nbsp;Title: &nbsp;&nbsp;&nbsp;Executive Vice President and<BR>
Chief Financial Officer</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4><P style="margin:0px; font-size:12pt">Date: &nbsp;September 21, 2011</P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>EXHIBIT LIST</B></P>
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<TR><TD style="margin-top:0px" valign=top width=67.2><P style="margin:0px; font-size:12pt">10.1</P>
</TD><TD style="margin-top:0px" valign=top width=571.2><P style="margin:0px; font-size:12pt">Third Amendment to Loan and Security Agreement, dated as of September 20, 2011, 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 style="margin-top:0px" valign=top width=67.2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=571.2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=67.2><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=571.2><P style="margin:0px; padding:0px; font-size:12pt">&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)
September 21, 2011 (September 20, 2011)
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
.
1
st
Franklin Financial Corporation (the "Company") has previously entered into 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.  Effective September 20, 2011, the parties thereto entered into a Third Amendment (the "Third Amendment") to the Credit Agreement.
The Third Amendment extends the maturity date of the Credit Agreement from September 11, 2013 to September 11, 2014.  All other terms and conditions of the Credit Agreement remain unchanged.
The foregoing description of the Third Amendment is qualified in its entirety by reference to the Third Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by this reference
Section 9 – Financial Statements and Exhibits
Item 9.01 – Financial Statements and Exhibits
.
10.1
Third Amendment to Loan and Security Agreement, dated as of September 20, 2011, 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:  September 21, 2011
EXHIBIT LIST
10.1
Third Amendment to Loan and Security Agreement, dated as of September 20, 2011, by and among the Company, Wells Fargo Preferred Capital, Inc., as agent for Lenders, and the financial institutions from time to time party thereto.