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<div style='margin-left:72pt;width:468pt'><hr style='border:0;height:0;width:0;margin:14pt 0 0 0'/><p style='font:10pt Times New Roman;margin:0;text-align:center'><b>UNITED STATES</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>Washington, D.C. 20549</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'>&#160;</p>
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<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>CURRENT REPORT</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>Pursuant to Section 13 or 15(d)</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>of The Securities Exchange Act of 1934</b></p>
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<p style='font:10pt Times New Roman;margin:0;text-align:center'>Date of Report (Date of earliest event reported): <ix:nonNumeric name='dei:DocumentPeriodEndDate' contextRef='D211119' format='ixt:datemonthdayyearen'>November 19, 2021</ix:nonNumeric></p>
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<p style='font:10pt Times New Roman;margin:0;text-align:center'><b><ix:nonNumeric name='dei:EntityRegistrantName' contextRef='D211119' escape='true'>1st Franklin Financial Corp</ix:nonNumeric>oration</b></p>
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<p style='font:10pt Times New Roman;margin:0;color:#000000;text-align:center'><b><ix:nonNumeric name='dei:EntityAddressAddressLine1' contextRef='D211119' escape='true'>135 East Tugalo Street</ix:nonNumeric></b></p>
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<p style='font:10pt Times New Roman;margin:0;color:#000000;text-align:center'><b><ix:nonNumeric name='dei:EntityAddressCityOrTown' contextRef='D211119' escape='true'>Toccoa</ix:nonNumeric>, <ix:nonNumeric name='dei:EntityAddressStateOrProvince' contextRef='D211119' format='ixt-sec:stateprovnameen'>Georgia</ix:nonNumeric> <ix:nonNumeric name='dei:EntityAddressPostalZipCode' contextRef='D211119' escape='true'>30577</ix:nonNumeric> </b></p>
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<p style='font:10pt Times New Roman;margin:0;text-align:center'><b>Not Applicable</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:center'>(Former name or former address, if changed since last report)</p>
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<p style='font:10pt Times New Roman;margin:0;text-align:justify'>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>
<p style='font:10pt Times New Roman;margin:0;text-align:justify'>&#160;</p>
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</td><td valign='top'><p style='font:10pt Times New Roman;margin:0;color:#000000;text-align:justify'>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>
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</td><td valign='top'><p style='font:10pt Times New Roman;margin:0;color:#000000;text-align:justify'>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</p>
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<p style='font:10pt Times New Roman;margin:0;text-align:justify'>Securities registered pursuant to Section 12(b) of the Act: <b>None</b></p>
<p style='font:10pt Times New Roman;margin:0;text-align:justify'>&#160;</p>
<p style='font:10pt Times New Roman;margin:0;text-align:justify'>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</p>
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<p style='font:10pt Times New Roman;margin:0;text-align:justify'>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <span style='font-family:Segoe UI Symbol'>&#9744;</span></p>
<hr style='border:0;height:0;width:0;margin:14pt 0 0 0'/><hr style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'/><p style='line-height:0;margin:0'></p>
<hr style='border:0;height:0;width:0;margin:14pt 0 0 0'/><p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><b>Item 1.01 &#8211;&#160;Entry into a Material Definitive Agreement</b>.</p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt;text-indent:36pt'>On November 17, 2021, 1<span style='vertical-align:super'>st</span> Franklin Financial Corporation (the &#8220;Company&#8221;) entered into a Third Amendment (the &#8220;Third Amendment&#8221;) to the Amended and Restated Loan and Security Agreement dated as of November 19, 2019 (as amended from time to time, the &#8220;Amended Loan and Security Agreement&#8221;), by and among the Company, Wells Fargo Bank, N.A., as agent for the lenders (&#8220;the Agent&#8221;), and the other financial institutions from time to time party thereto. </p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt;text-indent:36pt'>The Third Amendment, among other things, increases the Maximum Principal Amount (the &#8220;Accordion Increase&#8221;), subject to the terms and conditions of the Amended and Security Agreement, by an amount acceptable to the Agent in its sole and absolute discretion; provided however, that the aggregate amount of the Accordion Increase shall not exceed $100.0 million. The Third Amendment also amends the definition of &#8220;Applicable Margin&#8221; to mean 2.75% and extends the maturity date of the Amended Loan and Security Agreement to February 28, 2024. The Company&#8217;s obligations under the Amended Loan and Security Agreement are secured by the finance receivables of the Company. As of October 31, 2021, and giving effect to the Third Amendment, the amount outstanding under the Amended Loan and Security Agreement was $42.1 million and available borrowings under the Amended Loan and Security Agreement were $187.9 million, at an interest rate of 3.50%.</p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><kbd style='margin-left:36pt'></kbd>The foregoing description of the Third Amendment is qualified in its entirety by reference to the full text of the Third Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.&#160;</p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><b>Item 2.03 &#8211;&#160;Creation of Direct Financial Obligation or an Obligation under the Off-Balance Sheet Arrangement of a Registrant.</b></p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><kbd style='margin-left:36pt'></kbd>The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.&#160;</p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><b>Item 9.01 &#8211;&#160;Financial Statements and Exhibits</b>.</p>
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<div style='margin-left:72pt'><table style='border-collapse:collapse'><tr><td valign='top' style='width:50.25pt;padding-left:7.2pt;padding-right:7.2pt'><p style='font:12pt Times New Roman;margin:0'><span style='color:#0563C1;border-bottom:1px solid #0563C1'><a href='ff_ex10z1.htm' style='text-decoration:none'>10.1</a></span></p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
</td><td valign='top' style='width:428.25pt;padding-left:7.2pt;padding-right:7.2pt'><p style='font:12pt Times New Roman;margin:0'><span style='color:#0563C1;border-bottom:1px solid #0563C1'><a href='ff_ex10z1.htm' style='text-decoration:none'>Third Amendment to Amended and Restated Loan and Security Agreement, dated as of November 17, 2021, by and among the Company, Wells Fargo Bank, N.A., as agent for the lenders, and the other financial institutions from time to time party thereto.</a></span></p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
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<tr><td valign='top' style='width:50.25pt;padding-left:7.2pt;padding-right:7.2pt'><p style='font:12pt Times New Roman;margin:0'>104</p>
</td><td valign='top' style='width:428.25pt;padding-left:7.2pt;padding-right:7.2pt'><p style='font:12pt Times New Roman;margin:0'>Cover Page Interactive Data File (embedded with the Inline XBRL document).</p>
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<div style='margin-left:72pt;width:468pt'><hr style='border:0;height:0;width:0;margin:14pt 0 0 0'/><hr style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'/><p style='line-height:0;margin:0'></p>
<hr style='border:0;height:0;width:0;margin:14pt 0 0 0'/><p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt;text-align:center'><b>SIGNATURES</b></p>
<p style='font:12pt Times New Roman;margin-top:0pt;margin-bottom:12pt;text-indent:36pt'>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>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0;margin-left:234pt'>1<span style='vertical-align:super'>ST</span> FRANKLIN FINANCIAL CORPORATION</p>
<p style='font:12pt Times New Roman;margin:0;margin-left:234pt'>&#160;</p>
<p style='font:12pt Times New Roman;margin:0;margin-left:234pt'>By: <span style='border-bottom:1px solid #000000'>/s/ Brian J. Gyomory &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span></p>
<p style='font:12pt Times New Roman;margin:0;margin-left:252pt'> Name: Brian J. Gyomory</p>
<p style='font:12pt Times New Roman;margin:0;margin-left:252pt'> Title: &#160; Executive Vice President and<br/>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Financial Officer</p>
<p style='font:12pt Times New Roman;margin:0'>&#160;</p>
<p style='font:12pt Times New;margin:0'><span style='font-family:Times New Roman'>Date: November 19, 2021</span><br/></p>
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1st Franklin Financial Corp - Form 8-K SEC filing
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 19, 2021
1st Franklin Financial Corp
oration
(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
Post Office Box 880
Toccoa
,
Georgia
30577
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(
706
)
886-7571
Not Applicable
(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))
Securities registered pursuant to Section 12(b) of the Act:
None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 1.01 – Entry into a Material Definitive Agreement
.
On November 17, 2021, 1
st
Franklin Financial Corporation (the "Company") entered into a Third Amendment (the "Third Amendment") to the Amended and Restated Loan and Security Agreement dated as of November 19, 2019 (as amended from time to time, the "Amended Loan and Security Agreement"), by and among the Company, Wells Fargo Bank, N.A., as agent for the lenders ("the Agent"), and the other financial institutions from time to time party thereto.
The Third Amendment, among other things, increases the Maximum Principal Amount (the "Accordion Increase"), subject to the terms and conditions of the Amended and Security Agreement, by an amount acceptable to the Agent in its sole and absolute discretion; provided however, that the aggregate amount of the Accordion Increase shall not exceed $100.0 million. The Third Amendment also amends the definition of "Applicable Margin" to mean 2.75% and extends the maturity date of the Amended Loan and Security Agreement to February 28, 2024. The Company's obligations under the Amended Loan and Security Agreement are secured by the finance receivables of the Company. As of October 31, 2021, and giving effect to the Third Amendment, the amount outstanding under the Amended Loan and Security Agreement was $42.1 million and available borrowings under the Amended Loan and Security Agreement were $187.9 million, at an interest rate of 3.50%.
The foregoing description of the Third Amendment is qualified in its entirety by reference to the full text of the Third Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 2.03 – Creation of Direct Financial Obligation or an Obligation under the Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 9.01 – Financial Statements and Exhibits
.
10.1
Third Amendment to Amended and Restated Loan and Security Agreement, dated as of November 17, 2021, by and among the Company, Wells Fargo Bank, N.A., as agent for the lenders, and the other financial institutions from time to time party thereto.
104
Cover Page Interactive Data File (embedded with the Inline XBRL document).
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/ Brian J. Gyomory
Name: Brian J. Gyomory
Title:   Executive Vice President and
Chief Financial Officer
Date: November 19, 2021