Segment Financial Information (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Segment Reporting Information, by Segment

Below is a performance recap of each of the Company’s segments (in millions) for the three and six months ended June 30, 2025 and June 30, 2024, followed by a reconciliation to consolidated Company data.


Three Months Ended June 30, 2025	North		South		Total
	(In Millions)
Revenues:
Finance Charges Earned	$	34	$	51	$	85
Insurance Income	5		10		15
Other	1		1		2
	40		62		102

Expenses:
Interest Cost	6		9		15
Provision for Loan Losses	12		17		29
Depreciation and Amortization	—		1		1
Other Expense	11		17		28
	29		44		73
Segment Profit	$	11	$	18	$	29

Segment Assets:
Net Receivables	$	394	$	646	$	1,040
Cash	9		5		14
Net Fixed Assets	3		6		9
Other Assets	15		22		37
Total Segment Assets	$	421	$	679	$	1,100


Three Months Ended June 30, 2024	North		South		Total
	(In Millions)
Revenues:
Finance Charges Earned	$	28	$	45	$	73
Insurance Income	5		10		15
Other	1		1		2
	34		56		90

Expenses:
Interest Cost	5		9		14
Provision for Loan Losses	8		11		19
Depreciation and Amortization	—		1		1
Other Expense	5		22		27
	18		43		61
Segment Profit	$	16	$	13	$	29

Segment Assets:
Net Receivables	$	358	$	605	$	963
Cash	1		1		2
Net Fixed Assets	3		7		10
Other Assets	16		26		42
Total Segment Assets	$	378	$	639	$	1,017


Six Months Ended June 30, 2025	North		South		Total
	(In Millions)
Revenues:
Finance Charges Earned	$	66	$	102	$	168
Insurance Income	10		20		30
Other	2		2		4
	78		124		202

Expenses:
Interest Cost	11		19		30
Provision for Loan Losses	23		30		53
Depreciation and Amortization	1		1		2
Other Expense	21		35		56
	56		85		141
Segment Profit	$	22	$	39	$	61
Segment Assets:
Segment Assets:
Net Receivables	$	394	$	646	$	1,040
Cash	9		5		14
Net Fixed Assets	3		6		9
Other Assets	15		22		37
Total Segment Assets	$	421	$	679	$	1,100


Six Months Ended June 30, 2024	North		South		Total
	(In Millions)
Revenues:
Finance Charges Earned	$	57	$	90	$	147
Insurance Income	9		19		28
Other	1		2		3
	67		111		178

Expenses:
Interest Cost	10		18		28
Provision for Loan Losses	17		24		41
Depreciation and Amortization	1		1		2
Other Expense	17		38		55
	45		81		126
Segment Profit	$	22	$	30	$	52

Segment Assets:
Net Receivables	$	358	$	605	963
Cash	1		1		2
Net Fixed Assets	3		7		10
Other Assets	16		26		42
Total Segment Assets	$	378	$	639	$	1,017


(in millions)	Three Months Ended June 30, 2025		Three Months Ended June 30, 2024		Six Months Ended June 30, 2025		Six Months Ended June 30, 2024
Reconciliation of Revenues:
Total revenues from reportable divisions	$	102	$	90	$	202	$	178
Corporate finance charges earned, not allocated to divisions	(1)		—		(1)		—
Corporate investment income earned, not allocated to divisions	3		3		5		5
Timing difference of insurance income allocation to divisions	1		1		2		3

Consolidated Revenues (1)	$	105	$	94	$	208	$	186

	Three Months Ended June 30, 2025		Three Months Ended June 30, 2024		Six Months Ended June 30, 2025		Six Months Ended June 30, 2024
Reconciliation of Income Before Taxes:
Profit per division	$	29	$	29	$	61	$	52
Corporate earnings not allocated	3		4		7		9
Corporate expenses not allocated	(29)		(32)		(59)		(56)
Consolidated Income Before Income Taxes	$	3	$	1	$	9	$	5

(1) Includes Finance Charge Income, Investment Income, Insurance Premium Revenues and Other Revenue.

1st FRANKLIN FINANCIAL CORP 10-Q