1st Franklin Financial set variable-rate subordinated Debenture terms with effective yields reaching 5.13% and interest rates reaching 5.00%, subject to adjustment periods from one month to four years. Investors face a $500.00 minimum investment, but the securities are not bank deposits or federally insured and depend solely on 1FFC’s ability to pay.

Key Highlights

  • One-month and three-month adjustment Options carry effective yields of 1.77% and interest rates of 1.75%.
  • The September 3 through September 9 period repeats the same six rate and adjustment combinations.
  • Debentures mature four years after issuance, with a possible four-year extension if holders do not redeem at maturity.

1st FRANKLIN FINANCIAL CORP set effective yields of up to 5.13% on variable-rate subordinated debentures offered during the periods from August 27 through September 2 and September 3 through September 9. The corresponding Interest Rate reaches 5.00%, with a $500.00 minimum Investment amount for each listed term. Interest is earned daily and compounded using a 365/366-day convention.

The terms provide adjustment periods ranging from one month to four years. The securities are not bank deposits or obligations, and investors must rely solely on 1FFC’s ability to pay principal and interest.

Six Debenture Terms Available

The first period, running from August 27 through September 2, includes six adjustment choices. One-month and three-month terms carry an effective Yield of 1.77% and an interest rate of 1.75%, each with a $500.00 minimum investment amount.

The six-month option lists a 4.60% effective yield and a 4.50% interest rate. The one-year and two-year options each carry a 5.13% effective yield and a 5.00% interest rate, while the four-year term lists a 4.60% effective yield and a 4.50% interest rate.

The September 3 through September 9 period uses the same six combinations. Each option has a $500.00 minimum investment amount.

Daily Interest And Maturity Terms

Interest accrues each day and is compounded based on a 365/366-year calculation. Holders may request payment of interest, with payment made promptly upon request. If no request is made, principal and interest are payable at maturity.

The debentures mature four years from their issue date, subject to earlier Redemption provisions. Redemption at other times remains at 1FFC’s discretion and carries an interest penalty.

A holder who does not redeem at maturity receives an extension for one four-year period. The extension remains subject to the same redemption rights.

Investor Protection Terms

1st Franklin Financial states that its investment offerings are not insured by the FDIC or any other federal or state agency. The securities are also not otherwise guaranteed by a depository institution.

1FFC identifies itself as not being a bank. Investors therefore depend on the company’s capacity to pay the securities’ principal and interest.

The securities are offered only through a prospectus, with access available through 1FFC’s Toccoa, Georgia, address, mailing address or telephone contacts.

September Rate Window

The second rate period begins September 3 and ends September 9. Its one-month and three-month adjustment periods carry an effective yield of 1.77% and an interest rate of 1.75%.

The six-month and four-year options each list a 4.60% effective yield and a 4.50% interest rate. The one-year and two-year options each list a 5.13% effective yield and a 5.00% interest rate.

The rates are subject to adjustment at the end of each stated interest adjustment period.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/38723/000162828026059181/prospectussuppdeb.htm