☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
UTG, INC. | ||
(Exact name of registrant as specified in its charter) | ||
Delaware | 20-2907892 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
205 North Depot Street | ||
(Address of principal executive offices) (Zip Code) | ||
Securities registered pursuant to Section 12(b) of the Act: | |
Title of each class | Name of each exchange on which registered |
None | None |
Large accelerated filer □ | Accelerated filer □ |
Non-accelerated filer | Smaller reporting company ☒ |
Emerging growth company ☐ |
September 30, 2017 | December 31, 2016* | June 30, 2023 | December 31, 2022* | |||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
Investments: | ||||||||||||||||
Investments available for sale: | ||||||||||||||||
Fixed maturities, at fair value (amortized cost $165,885,262 and $170,595,860) | $ | 186,123,212 | $ | 187,239,718 | ||||||||||||
Equity securities, at fair value (cost $37,097,494 and $37,014,712) | 59,578,028 | 51,707,103 | ||||||||||||||
Trading securities, at fair value (cost $0 and $70,690) | - | 2,500 | ||||||||||||||
Investments, available for sale: | ||||||||||||||||
Fixed maturities, at fair value (amortized cost $115,257,457 and $117,279,820) | $ | 107,339,371 | $ | 108,313,059 | ||||||||||||
Equity securities, at fair value (cost $80,670,210 and $77,015,688) | 145,115,511 | 150,053,686 | ||||||||||||||
Equity securities, at cost | 15,683,343 | 15,683,343 | ||||||||||||||
Mortgage loans on real estate at amortized cost | 18,171,257 | 18,577,372 | 28,795,729 | 30,698,694 | ||||||||||||
Investment real estate | 52,637,677 | 57,138,980 | 34,557,435 | 34,934,352 | ||||||||||||
Notes receivable | 17,638,632 | 16,876,485 | 12,868,853 | 14,424,127 | ||||||||||||
Policy loans | 9,669,594 | 10,070,134 | 6,277,787 | 6,567,434 | ||||||||||||
Short-term investments | 3,680,135 | 3,596,941 | ||||||||||||||
Total investments | 343,818,400 | 341,612,292 | 354,318,164 | 364,271,636 | ||||||||||||
Cash and cash equivalents | 15,989,747 | 15,156,548 | 23,841,690 | 45,290,385 | ||||||||||||
Accrued investment income | 2,482,541 | 2,872,850 | 1,458,149 | 1,371,677 | ||||||||||||
Reinsurance receivables: | ||||||||||||||||
Future policy benefits | 26,550,413 | 26,974,819 | 24,041,985 | 24,318,030 | ||||||||||||
Policy claims and other benefits | 4,286,510 | 3,952,465 | 4,765,349 | 4,638,857 | ||||||||||||
Cost of insurance acquired | 6,638,069 | 7,267,397 | 2,367,514 | 2,698,153 | ||||||||||||
Property and equipment, net of accumulated depreciation | 1,230,096 | 1,564,944 | ||||||||||||||
Income tax recoverable | 1,391,041 | 1,223,682 | ||||||||||||||
Income tax receivable | 578,637 | 0 | ||||||||||||||
Other assets | 2,961,268 | 1,476,356 | 806,274 | 4,945,627 | ||||||||||||
Total assets | $ | 405,348,085 | $ | 402,101,353 | $ | 412,177,762 | $ | 447,534,365 | ||||||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
Liabilities: | ||||||||||||||||
Policy liabilities and accruals: | ||||||||||||||||
Future policyholder benefits | $ | 259,711,034 | $ | 263,844,559 | $ | 226,485,914 | $ | 229,582,664 | ||||||||
Policy claims and benefits payable | 5,191,752 | 3,889,572 | 3,591,492 | 4,072,879 | ||||||||||||
Other policyholder funds | 421,728 | 428,769 | 301,209 | 318,096 | ||||||||||||
Dividend and endowment accumulations | 14,548,345 | 14,504,583 | 14,698,988 | 14,802,746 | ||||||||||||
Income taxes payable | 0 | 4,189,081 | ||||||||||||||
Deferred income taxes | 19,080,765 | 15,459,049 | 9,600,138 | 11,582,138 | ||||||||||||
Notes payable | 1,450,000 | 2,900,000 | 0 | 19,000,000 | ||||||||||||
Trading securities, at fair value (proceeds $0 and $181,159) | - | 1,439 | ||||||||||||||
Other liabilities | 6,673,467 | 6,771,540 | 5,457,701 | 5,958,385 | ||||||||||||
Total liabilities | 307,077,091 | 307,799,511 | 260,135,442 | 289,505,989 | ||||||||||||
Shareholders' equity: | ||||||||||||||||
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,339,797 and 3,349,927 shares outstanding | 3,339 | 3,350 | ||||||||||||||
Common stock - no par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,183,035 and 3,164,809 shares outstanding | 3,184 | 3,166 | ||||||||||||||
Additional paid-in capital | 37,679,582 | 37,878,712 | 33,136,764 | 32,693,972 | ||||||||||||
Retained earnings | 31,836,019 | 34,230,307 | 124,672,520 | 131,989,352 | ||||||||||||
Accumulated other comprehensive income (loss) | 27,752,144 | 20,353,692 | (6,283,132 | ) | (7,111,586 | ) | ||||||||||
Total UTG shareholders' equity | 97,271,084 | 92,466,061 | 151,529,336 | 157,574,904 | ||||||||||||
Noncontrolling interests | 999,910 | 1,835,781 | 512,984 | 453,472 | ||||||||||||
Total shareholders' equity | 98,270,994 | 94,301,842 | 152,042,320 | 158,028,376 | ||||||||||||
Total liabilities and shareholders' equity | $ | 405,348,085 | $ | 402,101,353 | $ | 412,177,762 | $ | 447,534,365 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Premiums and policy fees | $ | 2,519,544 | $ | 2,996,420 | $ | 7,892,766 | $ | 8,812,151 | $ | 2,087,436 | $ | 2,155,643 | $ | 4,144,617 | $ | 4,308,704 | ||||||||||||||||
Ceded reinsurance premiums and policy fees | (659,789 | ) | (740,340 | ) | (2,230,079 | ) | (2,244,538 | ) | (807,170 | ) | (721,650 | ) | (1,324,981 | ) | (1,367,799 | ) | ||||||||||||||||
Net investment income | 3,121,288 | 2,850,301 | 8,974,189 | 10,079,273 | 3,243,796 | 4,440,186 | 6,561,961 | 8,899,554 | ||||||||||||||||||||||||
Other income | 93,287 | 90,209 | 304,824 | 385,756 | 70,233 | 93,713 | 106,818 | 155,036 | ||||||||||||||||||||||||
Revenues before realized gains (losses) | 5,074,330 | 5,196,590 | 14,941,700 | 17,032,642 | ||||||||||||||||||||||||||||
Realized investment gains (losses), net: | ||||||||||||||||||||||||||||||||
Other-than-temporary impairments | - | - | - | - | ||||||||||||||||||||||||||||
Revenue before net investment gains (losses) | 4,594,295 | 5,967,892 | 9,488,415 | 11,995,495 | ||||||||||||||||||||||||||||
Net investment gains (losses): | ||||||||||||||||||||||||||||||||
Other realized investment gains, net | 1,121,860 | 1,855,576 | 1,665,920 | 5,923,373 | 319,310 | 79,109 | 1,035,610 | 4,859,258 | ||||||||||||||||||||||||
Total realized investment gains (losses), net | 1,121,860 | 1,855,576 | 1,665,920 | 5,923,373 | ||||||||||||||||||||||||||||
Change in fair value of equity securities | 1,459,478 | (790,338 | ) | (7,185,996 | ) | 7,364,291 | ||||||||||||||||||||||||||
Total net investment gains (losses) | 1,778,788 | (711,229 | ) | (6,150,386 | ) | 12,223,549 | ||||||||||||||||||||||||||
Total revenue | 6,196,190 | 7,052,166 | 16,607,620 | 22,956,015 | 6,373,083 | 5,256,663 | 3,338,029 | 24,219,044 | ||||||||||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses: | ||||||||||||||||||||||||||||||||
Life | 3,756,203 | 5,024,528 | 13,584,805 | 16,407,007 | 4,499,416 | 3,609,121 | 8,148,440 | 8,269,918 | ||||||||||||||||||||||||
Ceded reinsurance benefits and claims | (178,945 | ) | (511,137 | ) | (1,168,721 | ) | (2,017,207 | ) | (883,655 | ) | 245,841 | (1,497,016 | ) | (741,590 | ) | |||||||||||||||||
Annuity | 162,374 | 260,264 | 700,584 | 887,840 | 257,811 | 256,188 | 509,443 | 519,230 | ||||||||||||||||||||||||
Dividends to policyholders | 82,820 | 93,053 | 304,020 | 342,287 | 81,704 | 85,933 | 168,702 | 173,092 | ||||||||||||||||||||||||
Commissions and amortization of deferred policy acquisition costs | (21,389 | ) | (21,923 | ) | (98,473 | ) | (93,865 | ) | (26,298 | ) | (26,290 | ) | (54,154 | ) | (51,959 | ) | ||||||||||||||||
Amortization of cost of insurance acquired | 209,775 | 218,246 | 629,328 | 654,738 | 165,325 | 172,087 | 330,639 | 344,174 | ||||||||||||||||||||||||
Operating expenses | 1,663,349 | 1,792,990 | 5,468,014 | 5,471,329 | 2,035,539 | 1,899,338 | 4,307,415 | 4,817,661 | ||||||||||||||||||||||||
Interest expense | 2,897 | 23,306 | 16,820 | 35,280 | ||||||||||||||||||||||||||||
Total benefits and other expenses | 5,674,187 | 6,856,021 | 19,419,557 | 21,652,129 | 6,132,739 | 6,265,524 | 11,930,289 | 13,365,806 | ||||||||||||||||||||||||
Income (loss) before income taxes | 522,003 | 196,145 | (2,811,937 | ) | 1,303,886 | 240,344 | (1,008,861 | ) | (8,592,260 | ) | 10,853,238 | |||||||||||||||||||||
Income tax (expense) benefit | (355,682 | ) | 152,829 | 354,532 | (339,658 | ) | ||||||||||||||||||||||||||
Income tax expense (benefit) | 131,662 | (270,762 | ) | (1,789,190 | ) | 2,372,300 | ||||||||||||||||||||||||||
Net income (loss) | 166,321 | 348,974 | (2,457,405 | ) | 964,228 | 108,682 | (738,099 | ) | (6,803,070 | ) | 8,480,938 | |||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (32,485 | ) | (29,663 | ) | 63,117 | (75,636 | ) | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (29,022 | ) | (27,107 | ) | (59,512 | ) | (53,821 | ) | ||||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 133,836 | $ | 319,311 | $ | (2,394,288 | ) | $ | 888,592 | $ | 79,660 | $ | (765,206 | ) | $ | (6,862,582 | ) | $ | 8,427,117 | |||||||||||||
Amounts attributable to common shareholders' | ||||||||||||||||||||||||||||||||
Amounts attributable to common shareholders | ||||||||||||||||||||||||||||||||
Basic income (loss) per share | $ | 0.04 | $ | 0.09 | $ | (0.71 | ) | $ | 0.25 | $ | 0.03 | $ | (0.24 | ) | $ | (2.15 | ) | $ | 2.66 | |||||||||||||
Diluted income (loss) per share | $ | 0.04 | $ | 0.09 | $ | (0.71 | ) | $ | 0.25 | $ | 0.03 | $ | (0.24 | ) | $ | (2.15 | ) | $ | 2.66 | |||||||||||||
Basic weighted average shares outstanding | 3,344,236 | 3,439,426 | 3,350,364 | 3,602,164 | 3,185,576 | 3,172,243 | 3,187,327 | 3,171,667 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 3,344,236 | 3,439,426 | 3,350,364 | 3,602,164 | 3,185,576 | 3,172,243 | 3,187,327 | 3,171,667 |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Net income (loss) | $ | 166,321 | $ | 348,974 | $ | (2,457,405 | ) | $ | 964,228 | $ | 108,682 | $ | (738,099 | ) | $ | (6,803,070 | ) | $ | 8,480,938 | |||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during period, pre-tax | 7,534,111 | 7,196,483 | 12,390,006 | 38,064,491 | (1,725,615 | ) | (7,129,016 | ) | 1,084,884 | (16,313,575 | ) | |||||||||||||||||||||
Tax (expense) benefit on unrealized holding gains (losses) arising during the period | (2,636,939 | ) | (2,518,769 | ) | (4,336,502 | ) | (13,322,572 | ) | 366,527 | 1,497,094 | (220,222 | ) | 3,425,851 | |||||||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax | 4,897,172 | 4,677,714 | 8,053,504 | 24,741,919 | (1,359,088 | ) | (5,631,922 | ) | 864,662 | (12,887,724 | ) | |||||||||||||||||||||
Less reclassification adjustment for gains included in net income | (797,165 | ) | (709,955 | ) | (1,007,772 | ) | (1,406,628 | ) | ||||||||||||||||||||||||
Tax expense for gains included in net income | 279,008 | 248,484 | 352,720 | 492,320 | ||||||||||||||||||||||||||||
Reclassification adjustment for gains included in net income, net of tax | (518,157 | ) | (461,471 | ) | (655,052 | ) | (914,308 | ) | ||||||||||||||||||||||||
Less reclassification adjustment for (gains) losses included in net income | (25,000 | ) | 4,896 | (45,833 | ) | 527 | ||||||||||||||||||||||||||
Tax expense (benefit) for gains included in net income (loss) | 5,250 | (1,029 | ) | 9,625 | (111 | ) | ||||||||||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (19,750 | ) | 3,867 | (36,208 | ) | 416 | ||||||||||||||||||||||||||
Subtotal: Other comprehensive income (loss), net of tax | 4,379,015 | 4,216,243 | 7,398,452 | 23,827,611 | (1,378,838 | ) | (5,628,055 | ) | 828,454 | (12,887,308 | ) | |||||||||||||||||||||
Comprehensive income (loss) | 4,545,336 | 4,565,217 | 4,941,047 | 24,791,839 | (1,270,156 | ) | (6,366,154 | ) | (5,974,616 | ) | (4,406,370 | ) | ||||||||||||||||||||
Less comprehensive (income) loss attributable to noncontrolling interests | (32,485 | ) | (29,663 | ) | 63,117 | (75,636 | ) | |||||||||||||||||||||||||
Less comprehensive income attributable to noncontrolling interests | (29,022 | ) | (27,107 | ) | (59,512 | ) | (53,821 | ) | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to UTG, Inc. | $ | 4,512,851 | $ | 4,535,554 | $ | 5,004,164 | $ | 24,716,203 | $ | (1,299,178 | ) | $ | (6,393,261 | ) | $ | (6,034,128 | ) | $ | (4,460,191 | ) |
Three Months Ended June 30, 2023 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||
Balance at March 31, 2023 | $ | 3,189 | $ | 33,268,111 | $ | 124,592,860 | $ | (4,904,294 | ) | $ | 483,962 | $ | 153,443,828 | |||||||||||
Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Treasury shares acquired | (5 | ) | (131,347 | ) | 0 | 0 | 0 | (131,352 | ) | |||||||||||||||
Net income (loss) attributable to common shareholders | 0 | 0 | 79,660 | 0 | 0 | 79,660 | ||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (1,378,838 | ) | 0 | (1,378,838 | ) | ||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Distributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 29,022 | 29,022 | ||||||||||||||||||
Balance at June 30, 2023 | $ | 3,184 | $ | 33,136,764 | $ | 124,672,520 | $ | (6,283,132 | ) | $ | 512,984 | $ | 152,042,320 |
Six Months Ended June 30, 2023 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||
Balance at December 31, 2022 | $ | 3,166 | $ | 32,693,972 | $ | 131,989,352 | $ | (7,111,586 | ) | $ | 453,472 | $ | 158,028,376 | |||||||||||
Adoption of new accounting standard | 0 | 0 | (454,250 | ) | 0 | 0 | (454,250 | ) | ||||||||||||||||
3,166 | 32,693,972 | 131,535,102 | (7,111,586 | ) | 453,472 | 157,574,126 | ||||||||||||||||||
Common stock issued during year | 27 | 674,363 | 0 | 0 | 0 | 674,390 | ||||||||||||||||||
Treasury shares acquired | (9 | ) | (231,571 | ) | 0 | 0 | 0 | (231,580 | ) | |||||||||||||||
Net income (loss) attributable to common shareholders | 0 | 0 | (6,862,582 | ) | 0 | 0 | (6,862,582 | ) | ||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 828,454 | 0 | 828,454 | ||||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Distributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 59,512 | 59,512 | ||||||||||||||||||
Balance at June 30, 2023 | $ | 3,184 | $ | 33,136,764 | $ | 124,672,520 | $ | (6,283,132 | ) | $ | 512,984 | $ | 152,042,320 |
Three Months Ended June 30, 2022 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||
Balance at March 31, 2022 | $ | 3,176 | $ | 32,999,942 | $ | 106,923,670 | $ | 2,993,898 | $ | 503,266 | $ | 143,423,952 | ||||||||||||
Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Treasury shares acquired | (6 | ) | (145,892 | ) | 0 | 0 | 0 | (145,898 | ) | |||||||||||||||
Net income attributable to common shareholders | 0 | 0 | (765,206 | ) | 0 | 0 | (765,206 | ) | ||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (5,628,055 | ) | 0 | (5,628,055 | ) | ||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Distributions | 0 | 0 | 0 | 0 | 603 | 603 | ||||||||||||||||||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 27,107 | 27,107 | ||||||||||||||||||
Balance at June 30, 2022 | $ | 3,170 | $ | 32,854,050 | $ | 106,158,464 | $ | (2,634,157 | ) | $ | 530,976 | $ | 136,912,503 |
Six Months Ended June 30, 2022 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||
Balance at December 31, 2021 | $ | 3,167 | $ | 32,780,587 | $ | 97,731,347 | $ | 10,253,151 | $ | 476,555 | $ | 141,244,807 | ||||||||||||
Common stock issued during year | 18 | 486,779 | 0 | 0 | 0 | 486,797 | ||||||||||||||||||
Treasury shares acquired | (15 | ) | (413,316 | ) | 0 | 0 | 0 | (413,331 | ) | |||||||||||||||
Net income attributable to common shareholders | 0 | 0 | 8,427,117 | 0 | 0 | 8,427,117 | ||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (12,887,308 | ) | 0 | (12,887,308 | ) | ||||||||||||||||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Distributions | 0 | 0 | 0 | 0 | 600 | 600 | ||||||||||||||||||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 53,821 | 53,821 | ||||||||||||||||||
Balance at June 30, 2022 | $ | 3,170 | $ | 32,854,050 | $ | 106,158,464 | $ | (2,634,157 | ) | $ | 530,976 | $ | 136,912,503 |
Nine Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | June 30, | June 30, | |||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) attributable to common shareholders | $ | (2,394,288 | ) | $ | 888,592 | |||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||||
Net income (loss) | $ | (6,803,070 | ) | $ | 8,480,938 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
Amortization (accretion) of investments | 191,820 | (553,517 | ) | (81,839 | ) | (6,865 | ) | |||||||||
Realized investment gains, net | (1,665,920 | ) | (5,923,373 | ) | ||||||||||||
Realized investment (gains) losses, net | (1,035,610 | ) | (4,859,258 | ) | ||||||||||||
Change in fair value of equity securities | 7,185,996 | (7,364,291 | ) | |||||||||||||
Unrealized trading (gains) losses included in income | 111,531 | - | 0 | 1,086 | ||||||||||||
Realized trading (gains) included in income | (110,470 | ) | - | |||||||||||||
Realized trading (gains) losses included in income | 0 | 12,197 | ||||||||||||||
Amortization of cost of insurance acquired | 629,328 | 654,738 | 330,639 | 344,174 | ||||||||||||
Depreciation | 515,132 | 500,538 | ||||||||||||||
Net income (loss) attributable to noncontrolling interest | (63,117 | ) | 75,636 | |||||||||||||
Depreciation and depletion | 318,475 | 918,168 | ||||||||||||||
Stock-based compensation | 674,390 | 486,797 | ||||||||||||||
Charges for mortality and administration of universal life and annuity products | (4,982,000 | ) | (2,116,902 | ) | (2,869,847 | ) | (2,995,235 | ) | ||||||||
Interest credited to account balances | 3,268,536 | 3,466,719 | 1,835,166 | 1,891,086 | ||||||||||||
Change in accrued investment income | 390,309 | (152,822 | ) | (86,472 | ) | (13,861 | ) | |||||||||
Change in reinsurance receivables | 90,361 | (22,291 | ) | 149,553 | 832,213 | |||||||||||
Change in policy liabilities and accruals | (988,645 | ) | (1,897,222 | ) | (2,426,980 | ) | (2,016,166 | ) | ||||||||
Change in income taxes receivable (payable) | (167,359 | ) | (796,159 | ) | (4,767,718 | ) | 66,735 | |||||||||
Change in other assets and liabilities, net | (1,927,847 | ) | 603,671 | 1,522,196 | 2,052,502 | |||||||||||
Net cash used in operating activities | (7,102,629 | ) | (5,272,392 | ) | ||||||||||||
Net cash provided by (used in) operating activities | (6,055,121 | ) | (2,169,780 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from investments sold and matured: | ||||||||||||||||
Fixed maturities available for sale | 17,036,549 | 26,829,015 | 2,045,833 | 7,628,136 | ||||||||||||
Equity securities available for sale | 3,401,217 | 4,506,115 | ||||||||||||||
Equity securities | 4,285,222 | 2,806,561 | ||||||||||||||
Trading securities | 0 | 72,279 | 0 | 17,983 | ||||||||||||
Mortgage loans | 860,187 | 3,482,189 | 1,755,829 | 961,672 | ||||||||||||
Real estate | 6,422,788 | 9,939,470 | 4,365,571 | 8,794,081 | ||||||||||||
Notes receivable | 2,035,706 | 2,778,401 | 4,338,516 | 3,921,082 | ||||||||||||
Policy loans | 1,481,824 | 1,465,996 | 776,616 | 591,084 | ||||||||||||
Short-term investments | 9,740,815 | 0 | ||||||||||||||
Total proceeds from investments sold and matured | 31,238,271 | 49,073,465 | 27,308,402 | 24,720,599 | ||||||||||||
Cost of investments acquired: | ||||||||||||||||
Fixed maturities available for sale | (11,603,539 | ) | (7,919,941 | ) | 0 | (1,112,505 | ) | |||||||||
Equity securities available for sale | (2,471,066 | ) | (2,475,777 | ) | ||||||||||||
Equity securities | (6,292,534 | ) | (6,387,281 | ) | ||||||||||||
Trading securities | 0 | (70,690 | ) | 0 | (32,382 | ) | ||||||||||
Mortgage loans | (360,531 | ) | (6,922,723 | ) | (217,864 | ) | (1,560,291 | ) | ||||||||
Real estate | (2,473,761 | ) | (11,937,317 | ) | (3,581,370 | ) | (3,271,775 | ) | ||||||||
Notes receivable | (2,797,853 | ) | (7,144,707 | ) | (2,953,241 | ) | (3,910,657 | ) | ||||||||
Policy loans | (1,081,284 | ) | (1,018,958 | ) | (486,969 | ) | (523,039 | ) | ||||||||
Short-term investments | (9,701,297 | ) | 0 | |||||||||||||
Total cost of investments acquired | (20,788,034 | ) | (37,490,113 | ) | (23,233,275 | ) | (16,797,930 | ) | ||||||||
Net cash provided by investing activities | 10,450,237 | 11,583,352 | ||||||||||||||
Net cash provided by (used in) investing activities | 4,075,127 | 7,922,669 | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Policyholder contract deposits | 3,641,050 | 407,633 | 2,063,085 | 2,444,662 | ||||||||||||
Policyholder contract withdrawals | (3,733,565 | ) | (3,434,052 | ) | (2,300,206 | ) | (2,522,908 | ) | ||||||||
Proceeds from notes payable/line of credit | - | 2,900,000 | 0 | 9,500,000 | ||||||||||||
Payments of principal on notes payable/line of credit | (1,450,000 | ) | - | (19,000,000 | ) | (26,500,000 | ) | |||||||||
Purchase of treasury stock | (396,628 | ) | (5,296,904 | ) | (231,580 | ) | (413,331 | ) | ||||||||
Issuance of stock | 197,488 | 246,933 | ||||||||||||||
Non controlling contributions (distributions) of consolidated subsidiary | (772,754 | ) | (123,016 | ) | 0 | 600 | ||||||||||
Net cash used in financing activities | (2,514,409 | ) | (5,299,406 | ) | (19,468,701 | ) | (17,490,977 | ) | ||||||||
Net increase in cash and cash equivalents | 833,199 | 1,011,554 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (21,448,695 | ) | (11,738,088 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 15,156,548 | 11,822,615 | 45,290,385 | 30,787,278 | ||||||||||||
Cash and cash equivalents at end of period | $ | 15,989,747 | $ | 12,834,169 | $ | 23,841,690 | $ | 19,049,190 |
September 30, 2017 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
June 30, 2023 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
Investments available for sale: | ||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | 7,678,557 | $ | 47,605 | $ | (67,183 | ) | $ | 7,658,979 | $ | 18,316,746 | $ | 0 | $ | (1,049,098 | ) | $ | 17,267,648 | ||||||||||||||
U.S. special revenue and assessments | 9,010,920 | 755,683 | - | 9,766,603 | 7,532,039 | 0 | (316,968 | ) | 7,215,071 | |||||||||||||||||||||||
All other corporate bonds | 149,195,785 | 19,913,522 | (411,677 | ) | 168,697,630 | 89,408,672 | 54,920 | (6,606,940 | ) | 82,856,652 | ||||||||||||||||||||||
165,885,262 | 20,716,810 | (478,860 | ) | 186,123,212 | $ | 115,257,457 | $ | 54,920 | $ | (7,973,006 | ) | $ | 107,339,371 | |||||||||||||||||||
Equity securities | 37,097,494 | 22,866,154 | (385,620 | ) | 59,578,028 | |||||||||||||||||||||||||||
Total | $ | 202,982,756 | $ | 43,582,964 | $ | (864,480 | ) | $ | 245,701,240 |
December 31, 2016 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||
December 31, 2022 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
Investments available for sale: | ||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | 9,058,210 | $ | 74,581 | $ | (96,981 | ) | $ | 9,035,810 | $ | 18,315,321 | $ | 0 | $ | (1,104,146 | ) | $ | 17,211,175 | ||||||||||||||
U.S. special revenue and assessments | 10,145,531 | 1,002,789 | (14,043 | ) | 11,134,277 | 7,535,018 | 0 | (335,918 | ) | 7,199,100 | ||||||||||||||||||||||
All other corporate bonds | 151,392,119 | 17,234,691 | (1,557,179 | ) | 167,069,631 | 91,429,481 | 65,529 | (7,592,226 | ) | 83,902,784 | ||||||||||||||||||||||
170,595,860 | 18,312,061 | (1,668,203 | ) | 187,239,718 | $ | 117,279,820 | $ | 65,529 | $ | (9,032,290 | ) | $ | 108,313,059 | |||||||||||||||||||
Equity securities | 37,014,712 | 15,214,862 | (522,471 | ) | 51,707,103 | |||||||||||||||||||||||||||
Total | $ | 207,610,572 | $ | 33,526,923 | $ | (2,190,674 | ) | $ | 238,946,821 |
Fixed Maturities Available for Sale September 30, 2017 | Amortized Cost | Estimated Fair Value | ||||||||||||||
Fixed Maturities Available for Sale June 30, 2023 | Amortized Cost | Fair Value | ||||||||||||||
Due in one year or less | $ | 5,383,493 | $ | 5,473,716 | $ | 10,499,837 | $ | 10,402,435 | ||||||||
Due after one year through five years | 29,857,885 | 41,316,685 | 51,518,933 | 49,102,579 | ||||||||||||
Due after five years through ten years | 44,110,567 | 48,479,332 | 4,199,090 | 4,113,718 | ||||||||||||
Due after ten years | 86,533,317 | 90,853,479 | 21,933,561 | 19,661,950 | ||||||||||||
Fixed maturities with no single maturity date | 27,106,036 | 24,058,689 | ||||||||||||||
Total | $ | 165,885,262 | $ | 186,123,212 | $ | 115,257,457 | $ | 107,339,371 |
September 30, 2017 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | 6,610,509 | $ | (67,183 | ) | $ | - | $ | - | $ | 6,610,509 | $ | (67,183 | ) | $ | 1,483,470 | (17,913 | ) | 15,784,178 | (1,031,185 | ) | 17,267,648 | $ | (1,049,098 | ) | |||||||||||||||||||||||
U.S. special revenue and assessments | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
U.S. Special Revenue and Assessments | 7,215,071 | (316,968 | ) | 0 | 0 | 7,215,071 | (316,968 | ) | ||||||||||||||||||||||||||||||||||||||||
All other corporate bonds | 16,381,344 | (234,288 | ) | 5,357,880 | (177,389 | ) | 21,739,224 | (411,677 | ) | 48,366,442 | (3,624,014 | ) | 33,442,210 | (2,982,926 | ) | 81,808,652 | (6,606,940 | ) | ||||||||||||||||||||||||||||||
Total fixed maturities | $ | 22,991,853 | $ | (301,471 | ) | $ | 5,357,880 | (177,389 | ) | $ | 28,349,733 | (478,860 | ) | $ | 57,064,983 | (3,958,895 | ) | 49,226,388 | (4,014,111 | ) | 106,291,371 | $ | (7,973,006 | ) | ||||||||||||||||||||||||
Equity securities | $ | 5,260,992 | $ | (385,620 | ) | $ | - | $ | - | $ | 5,260,992 | $ | (385,620 | ) |
December 31, 2016 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | 6,578,248 | $ | (96,981 | ) | $ | - | $ | - | $ | 6,578,248 | $ | (96,981 | ) | $ | 17,211,175 | (1,104,146 | ) | 0 | 0 | 17,211,175 | $ | (1,104,146 | ) | ||||||||||||||||||||||||
U.S. special revenue and assessments | 974,250 | (14,043 | ) | - | - | 974,250 | (14,043 | ) | 7,199,100 | (335,918 | ) | 0 | 0 | 7,199,100 | (335,918 | ) | ||||||||||||||||||||||||||||||||
All other corporate bonds | 50,161,487 | (1,408,828 | ) | 4,023,510 | (148,351 | ) | 54,184,997 | (1,557,179 | ) | 80,144,564 | (7,592,226 | ) | 0 | 0 | 80,144,564 | (7,592,226 | ) | |||||||||||||||||||||||||||||||
Total fixed maturities | $ | 57,713,985 | $ | (1,519,852 | ) | $ | 4,023,510 | (148,351 | ) | $ | 61,737,495 | (1,668,203 | ) | $ | 104,554,839 | (9,032,290 | ) | 0 | 0 | 104,554,839 | $ | (9,032,290 | ) | |||||||||||||||||||||||||
Equity securities | $ | 4,703,033 | $ | (522,471 | ) | $ | - | $ | - | $ | 4,703,033 | $ | (522,471 | ) |
Less than 12 months | 12 months or longer | Total | ||||||||||
As of September 30, 2017 | ||||||||||||
Fixed maturities | 11 | 3 | 14 | |||||||||
Equity securities | 4 | - | 4 | |||||||||
As of December 31, 2016 | ||||||||||||
Fixed maturities | 25 | 3 | 28 | |||||||||
Equity securities | 3 | - | 3 |
Less than 12 months | 12 months or longer | Total | ||||||||||
As of June 30, 2023 | ||||||||||||
Fixed maturities | 25 | 30 | 55 | |||||||||
As of December 31, 2022 | ||||||||||||
Fixed maturities | 57 | 0 | 57 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Realized gains: | ||||||||||||||||
Sales of fixed maturities | $ | 25,000 | $ | 314 | $ | 45,833 | $ | 4,683 | ||||||||
Sales of equity securities | 163,290 | 12,223 | 248,474 | 397,581 | ||||||||||||
Sales of real estate | 138,986 | 113,398 | 725,760 | 4,571,840 | ||||||||||||
Sales of short-term investments | 0 | 0 | 23,509 | 0 | ||||||||||||
Total realized gains | 327,276 | 125,935 | 1,043,576 | 4,974,104 | ||||||||||||
Realized losses: | ||||||||||||||||
Sales of fixed maturities | 0 | (5,210 | ) | 0 | (5,210 | ) | ||||||||||
Sales of equity securities | (7,966 | ) | (41,616 | ) | (7,966 | ) | (109,636 | ) | ||||||||
Total realized losses | (7,966 | ) | (46,826 | ) | (7,966 | ) | (114,846 | ) | ||||||||
Net realized investment gains (losses) | 319,310 | 79,109 | 1,035,610 | 4,859,258 | ||||||||||||
Change in fair value of equity securities: | ||||||||||||||||
Change in fair value of equity securities held at the end of the period | 1,459,478 | (790,338 | ) | (7,185,996 | ) | 7,364,291 | ||||||||||
Change in fair value of equity securities | 1,459,478 | (790,338 | ) | (7,185,996 | ) | 7,364,291 | ||||||||||
Net investment gains (losses) | $ | 1,778,788 | $ | (711,229 | ) | $ | (6,150,386 | ) | $ | 12,223,549 | ||||||
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: | ||||||||||||||||
Fixed maturities | $ | (1,725,615 | ) | $ | (7,129,016 | ) | $ | 1,084,884 | $ | (16,313,575 | ) | |||||
Net increase (decrease) | $ | (1,725,615 | ) | $ | (7,129,016 | ) | $ | 1,084,884 | $ | (16,313,575 | ) |
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, | June 30, | |||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||
Net unrealized gains (losses) | $ | - | $ | - | $ | 0 | $ | (616 | ) | |||||||
Net realized gains (losses) | - | - | 0 | (9,681 | ) | |||||||||||
Net unrealized and realized gains (losses) | $ | - | $ | - | $ | 0 | $ | (10,297 | ) |
Nine Months Ended | Six Months Ended | |||||||||||||||
September 30, | June 30, | |||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||
Net unrealized gains (losses) | $ | (111,531 | ) | $ | - | $ | 0 | $ | (1,086 | ) | ||||||
Net realized gains (losses) | 110,470 | - | 0 | (12,197 | ) | |||||||||||
Net unrealized and realized gains (losses) | $ | (1,061 | ) | $ | - | $ | 0 | $ | (13,283 | ) |
2017 | 2016 | 2023 | 2022 | |||||||||||||||||||||||||||||
Maximum rate | Minimum rate | Maximum rate | Minimum rate | Maximum rate | Minimum rate | Maximum rate | Minimum rate | |||||||||||||||||||||||||
Farm Loans | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 4.50 | % | 5.00 | % | 4.50 | % | ||||||||||||||||
Commercial Loans | 8.50 | % | 3.94 | % | 8.00 | % | 4.00 | % | 7.00 | % | 4.00 | % | 7.00 | % | 4.00 | % | ||||||||||||||||
Residential Loans | 8.00 | % | 4.00 | % | 8.00 | % | 3.94 | % | 5.00 | % | 4.15 | % | 5.00 | % | 4.15 | % |
June 30, 2023 | December 31, 2022 | |||||||
Farm | $ | 356,095 | $ | 383,278 | ||||
Commercial | 28,600,878 | 30,102,775 | ||||||
Residential | 208,756 | 212,641 | ||||||
Total mortgage loans | 29,165,729 | 30,698,694 | ||||||
Less allowance for credit losses | (370,000 | ) | 0 | |||||
Total mortgage loans, net | $ | 28,795,729 | $ | 30,698,694 |
September 30, 2017 Payment Frequency | Number of Loans | Carrying Value | ||||||
No payments received | 8 | $ | - | |||||
One-time payment received | 1 | - | ||||||
Irregular payments received | 2 | 20,834 | ||||||
Periodic payments received | 5 | 2,090,929 | ||||||
Total | 16 | $ | 2,111,763 |
December 31, 2016 Payment Frequency | Number of Loans | Carrying Value | ||||||
No payments received | 8 | $ | - | |||||
One-time payment received | 1 | - | ||||||
Irregular payments received | 2 | 20,834 | ||||||
Periodic payments received | 5 | 2,168,062 | ||||||
Total | 16 | $ | 2,188,896 |
September 30, 2017 | December 31, 2016 | |||||||
In good standing | $ | 16,059,494 | $ | 16,388,477 | ||||
Overdue interest over 90 days | 20,834 | 20,834 | ||||||
Restructured | 52,827 | 60,827 | ||||||
In process of foreclosure | 2,038,102 | 2,107,234 | ||||||
Total mortgage loans | $ | 18,171,257 | $ | 18,577,372 | ||||
Total foreclosed loans during the year | $ | - | $ | 735,000 |
June 30, 2023 | December 31, 2022 | |||||||
Notes receivable | $ | 13,038,853 | $ | 14,424,127 | ||||
Less allowance for credit losses | (170,000 | ) | 0 | |||||
Total notes receivable, net | $ | 12,868,853 | $ | 14,424,127 |
June 30, 2023 | December 31, 2022 | |||||||
Raw land | $ | 9,591,143 | $ | 11,634,472 | ||||
Commercial | 7,616,305 | 5,124,847 | ||||||
Residential | 5,241,486 | 3,402,502 | ||||||
Land, minerals and royalty interests | 12,108,501 | 14,772,531 | ||||||
Total investment real estate | $ | 34,557,435 | $ | 34,934,352 |
June 30, 2023 | Level 1 | Level 2 | Level 3 | Net Asset Value | Total | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Fixed maturities available for sale: | ||||||||||||||||||||
U.S. Government and government agencies and authorities | $ | 17,267,648 | $ | 0 | $ | 0 | $ | 0 | $ | 17,267,648 | ||||||||||
U.S. special revenue and assessments | 0 | 7,215,071 | 0 | 0 | 7,215,071 | |||||||||||||||
Corporate securities | 0 | 82,856,652 | 0 | 0 | 82,856,652 | |||||||||||||||
Total fixed maturities | 17,267,648 | 90,071,723 | 0 | 0 | 107,339,371 | |||||||||||||||
Equity securities: | ||||||||||||||||||||
Common stocks | 39,594,979 | 5,970,665 | 6,682,899 | 91,619,968 | 143,868,511 | |||||||||||||||
Preferred stocks | 0 | 0 | 1,247,000 | 0 | 1,247,000 | |||||||||||||||
Total equity securities | 39,594,979 | 5,970,665 | 7,929,899 | 91,619,968 | 145,115,511 | |||||||||||||||
Total financial assets | $ | 56,862,627 | $ | 96,042,388 | $ | 7,929,899 | $ | 91,619,968 | $ | 252,454,882 | ||||||||||
December 31, 2022 | Level 1 | Level 2 | Level 3 | Net Asset Value | Total | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Fixed maturities available for sale: | ||||||||||||||||||||
U.S. Government and government agencies and authorities | $ | 17,211,175 | $ | 0 | $ | 0 | $ | 0 | $ | 17,211,175 | ||||||||||
U.S. special revenue and assessments | 0 | 7,199,100 | 0 | 0 | 7,199,100 | |||||||||||||||
Corporate securities | 0 | 83,902,784 | 0 | 0 | 83,902,784 | |||||||||||||||
Total fixed maturities | 17,211,175 | 91,101,884 | 0 | 0 | 108,313,059 | |||||||||||||||
Equity securities: | ||||||||||||||||||||
Common stocks | 45,999,477 | 6,651,800 | 6,720,643 | 89,434,766 | 148,806,686 | |||||||||||||||
Preferred stocks | 0 | 0 | 1,247,000 | 0 | 1,247,000 | |||||||||||||||
Total equity securities | 45,999,477 | 6,651,800 | 7,967,643 | 89,434,766 | 150,053,686 | |||||||||||||||
Total financial assets | $ | 63,210,652 | $ | 97,753,684 | $ | 7,967,643 | $ | 89,434,766 | $ | 258,366,745 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Fixed Maturities, available for sale | $ | 9,683,209 | $ | 173,683,226 | $ | 2,756,777 | $ | 186,123,212 | ||||||||
Equity Securities, available for sale | 22,709,227 | 7,428,608 | 29,440,193 | 59,578,028 | ||||||||||||
Total | $ | 32,392,436 | $ | 181,111,834 | $ | 32,196,970 | $ | 245,701,240 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Fixed Maturities, available for sale | $ | 9,035,810 | $ | 175,120,657 | $ | 3,083,251 | $ | 187,239,718 | ||||||||
Equity Securities, available for sale | 19,360,394 | 6,553,410 | 25,793,299 | 51,707,103 | ||||||||||||
Trading Securities | 2,500 | - | - | 2,500 | ||||||||||||
Total | $ | 28,398,704 | $ | 181,674,067 | $ | 28,876,550 | $ | 238,949,321 | ||||||||
Liabilities | ||||||||||||||||
Trading Securities | $ | 1,439 | $ | - | $ | - | $ | 1,439 |
Equity Securities at Fair Value | Equity Securities at Net Asset Value | Total | ||||||||||
Balance at December 31, 2022 | $ | 7,967,643 | $ | 89,434,766 | $ | 97,402,409 | ||||||
Realized gains (losses) | 0 | 95,606 | 95,606 | |||||||||
Unrealized gains (losses) | (131,807 | ) | (2,359,950 | ) | (2,491,757 | ) | ||||||
Purchases | 177,188 | 4,633,923 | 4,811,111 | |||||||||
Sales | (83,125 | ) | (184,377 | ) | (267,502 | ) | ||||||
Balance at June 30, 2023 | $ | 7,929,899 | $ | 91,619,968 | $ | 99,549,867 |
Financial Assets | Fair Value at June 30, 2023 | Fair Value at December 31, 2022 | Valuation Technique | ||||||
Equities | $ | 91,619,968 | $ | 89,434,766 | Net Asset Value | ||||
Equities | 7,929,899 | 7,967,643 | Pricing Model | ||||||
Total | $ | 99,549,867 | $ | 97,402,409 |
Fixed Maturities, Available for Sale | Equity Securities, Available for Sale | Total | ||||||||||
Balance at December 31, 2016 | $ | 3,083,251 | $ | 25,793,299 | $ | 28,876,550 | ||||||
Total unrealized gains (losses): | ||||||||||||
Included in realized gains (losses) | - | - | - | |||||||||
Included in other comprehensive income | 702,375 | 2,640,392 | 3,342,767 | |||||||||
Purchases | - | 2,114,307 | 2,114,307 | |||||||||
Sales | (1,028,849 | ) | (1,107,805 | ) | (2,136,654 | ) | ||||||
Balance at September 30, 2017 | $ | 2,756,777 | $ | 29,440,193 | $ | 32,196,970 |
Investment Company | Fair Value at June 30, 2023 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||
Common Stocks | ||||||||||||||||
Growth Equity | ||||||||||||||||
Redeemable | $ | 34,359,388 | $ | 0 | Quarterly | 45 days | ||||||||||
Non-Redeemable | 57,260,580 | 6,671,131 | n/a | n/a | ||||||||||||
Total | $ | 91,619,968 | $ | 6,671,131 |
Investment Company | Fair Value at December 31, 2022 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||
Common Stocks | ||||||||||||||||
Growth Equity | ||||||||||||||||
Redeemable | $ | 43,724,562 | $ | 0 | Quarterly | 45 days | ||||||||||
Non-Redeemable | 45,710,204 | 7,779,867 | n/a | n/a | ||||||||||||
Total | $ | 89,434,766 | $ | 7,779,867 |
September 30, 2017 | December 31, 2016 | Carrying | Estimated | |||||||||||||||||||||||||||||||||
June 30, 2023 | Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
Assets | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||||
Preferred stock, at cost | $ | 15,683,343 | 15,683,343 | 0 | 0 | 15,683,343 | ||||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 18,171,257 | $ | 18,171,257 | $ | 18,577,372 | $ | 18,577,372 | 28,795,729 | 27,364,982 | 0 | 0 | 27,364,982 | |||||||||||||||||||||||
Investment real estate | 52,637,677 | 52,637,677 | 57,138,980 | 57,138,980 | 34,557,435 | 86,214,616 | 0 | 0 | 86,214,616 | |||||||||||||||||||||||||||
Notes receivable | 17,638,632 | 17,638,632 | 16,876,485 | 16,876,485 | 12,868,853 | 13,068,961 | 0 | 0 | 13,068,961 | |||||||||||||||||||||||||||
Policy loans | 9,669,594 | 9,669,594 | 10,070,134 | 10,070,134 | 6,277,787 | 6,277,787 | 0 | 0 | 6,277,787 | |||||||||||||||||||||||||||
Cash and cash equivalents | 15,989,747 | 15,989,747 | 15,156,548 | 15,156,548 |
Carrying | Estimated | |||||||||||||||||||
December 31, 2022 | Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Assets | ||||||||||||||||||||
Preferred stock, at cost | $ | 15,683,343 | 15,683,343 | 0 | 0 | 15,683,343 | ||||||||||||||
Mortgage loans on real estate | 30,698,694 | 29,735,873 | 0 | 0 | 46,906,538 | |||||||||||||||
Investment real estate | 34,934,352 | 92,425,241 | 0 | 0 | 92,425,241 | |||||||||||||||
Notes receivable | 14,424,127 | 14,812,523 | 0 | 0 | 14,812,523 | |||||||||||||||
Policy loans | 6,567,434 | 6,567,434 | 0 | 0 | 6,567,434 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Notes payable | 19,000,000 | 19,000,000 | 0 | 19,000,000 | 0 |
Instrument | Issue Date | Maturity Date | Revolving Credit Limit | December 31, 2022 | Borrowings | Repayments | June 30, 2023 | ||||||||||
Lines of Credit: | |||||||||||||||||
UTG | 11/20/2013 | 11/20/2023 | $ | 8,000,000 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||
UG - CMA | 10/21/2021 | 10/6/2023 | 25,000,000 | 19,000,000 | 0 | 19,000,000 | 0 |
Outstanding Principal Balance | ||||||||||
Instrument | Issue Date | Maturity Date | September 30, 2017 | December 31, 2016 | ||||||
Promissory Note: | ||||||||||
SoftVest, LP | 7/22/2016 | 7/22/2018 | $ | 725,000 | $ | 1,450,000 | ||||
SoftSearch Investment, L.P. | 7/22/2016 | 7/22/2018 | 725,000 | 1,450,000 |
Instrument | Issue Date | Maturity Date | Revolving Credit Limit | December 31, 2016 | Borrowings | Repayments | September 30, 2017 | |||||||||||||||
Lines of Credit: | ||||||||||||||||||||||
UTG | 11/20/2013 | 11/20/2018 | $ | 8,000,000 | $ | - | - | - | $ | - | ||||||||||||
UG | 6/2/2015 | 5/10/2018 | 10,000,000 | - | - | - | - |
Total Funding Commitment | Unfunded Commitment | Total Funding Commitment | Unfunded Commitment | |||||||||||||
RLF III, LLC | $ | 4,000,000 | $ | 398,120 | $ | 4,000,000 | $ | 398,120 | ||||||||
Sovereign’s Capital, LP Fund I | 500,000 | 33,642 | 500,000 | 13,000 | ||||||||||||
UGLIC, LLC | 1,600,000 | 120,000 | ||||||||||||||
Sovereign's Capital, LP Fund II | 1,000,000 | 410,301 | 1,000,000 | 76,732 | ||||||||||||
Barton Springs Music, LLC | 2,500,000 | 1,339,063 | ||||||||||||||
Master Mineral Holdings II, LP | 4,122,167 | 556,286 | ||||||||||||||
Sovereign's Capital, LP Fund III | 3,000,000 | 505,453 | ||||||||||||||
Garden City Companies, LLC | 2,000,000 | 1,070,546 | ||||||||||||||
Carrizo Springs Music, LLC | 5,000,000 | 189,711 | ||||||||||||||
Legacy Venture X, LLC | 3,000,000 | 1,500,000 | ||||||||||||||
QCC Investment Co., LLC | 1,500,000 | 150,000 | ||||||||||||||
Sovereign's Capital Evergreen Fund I, LLC | 3,000,000 | 4,062 | ||||||||||||||
Sovereign's Capital Lower Middle Market Fund II, LP | 3,000,000 | 1,555,338 | ||||||||||||||
Elisha's Properties, LLC | 1,096,750 | 491,823 | ||||||||||||||
Granite Shoals Music, LLC | 6,500,000 | 5,633,332 | ||||||||||||||
Legacy Venture XI, LLC | 2,000,000 | 1,920,000 |
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, | June 30, | |||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||
Interest | $ | - | $ | - | $ | 2,898 | $ | 18,387 | ||||||||
Federal income tax | 20,000 | 33,000 | 5,060,000 | 0 |
Nine Months Ended | Six Months Ended | |||||||||||||||
September 30, | June 30, | |||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||
Interest | $ | - | $ | - | $ | 44,814 | $ | 30,196 | ||||||||
Federal income tax | 175,000 | 768,000 | 5,060,000 | 1,000,000 |
June 30, 2023 | Land, Minerals & Royalty Interests | Exploration | Total | |||||||||
Fixed maturities, at fair value | $ | 0 | $ | 1,059,650 | $ | 1,059,650 | ||||||
Equity securities, at fair value | 77,996,181 | 0 | 77,996,181 | |||||||||
Investment real estate | 13,841,426 | 0 | 13,841,426 | |||||||||
Notes receivable | 2,000,000 | 0 | 2,000,000 | |||||||||
Total | $ | 93,837,607 | $ | 1,059,650 | $ | 94,897,257 |
December 31, 2022 | Land, Minerals & Royalty Interests | Exploration | Total | |||||||||
Fixed maturities, at fair value | $ | 0 | $ | 1,060,710 | $ | 1,060,710 | ||||||
Equity securities, at fair value | 93,811,806 | 0 | 93,811,806 | |||||||||
Investment real estate | 14,772,536 | 0 | 14,772,536 | |||||||||
Notes receivable | 1,950,657 | 0 | 1,950,657 | |||||||||
Total | $ | 110,534,999 | $ | 1,060,710 | $ | 111,595,709 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net investment income | $ | 3,243,796 | $ | 4,440,186 | $ | 6,561,961 | $ | 8,899,554 | |||
Net investment gains (losses) | $ | 319,310 | $ | 79,109 | $ | 1,035,610 | $ | 4,859,258 | |||
Change in net unrealized investment gains (losses) on equity securities, pre-tax | $ | 1,459,478 | $ | (790,338) | $ | (7,185,996) | $ | 7,364,291 |
Three Months Ended | Nine Months Ended September 30, | |||||||||||||||||||||||
September 30, | September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Fixed maturities available for sale | $ | 2,312,874 | $ | 2,308,923 | $ | 6,531,313 | $ | 6,946,490 | $ | 1,005,668 | $ | 1,032,842 | $ | 2,020,258 | $ | 2,099,822 | ||||||||
Equity securities | 230,476 | 297,682 | 826,119 | 998,544 | 282,473 | 954,825 | 698,661 | 1,338,033 | ||||||||||||||||
Trading securities | - | (119,749 | ) | (1,061 | ) | (80,272 | ) | 0 | (10,297) | 0 | (13,283) | |||||||||||||
Mortgage loans | 310,804 | 314,128 | 908,488 | 1,566,902 | 336,042 | 311,574 | 674,451 | 599,792 | ||||||||||||||||
Real estate | 533,291 | 363,052 | 1,544,739 | 1,489,981 | 1,895,774 | 2,985,660 | 4,095,478 | 6,178,745 | ||||||||||||||||
Notes receivable | 295,181 | 284,142 | 664,697 | 1,225,723 | 287,660 | 129,086 | 732,978 | 385,648 | ||||||||||||||||
Policy loans | 151,054 | 177,317 | 499,813 | 442,435 | 116,853 | 141,477 | 224,216 | 248,200 | ||||||||||||||||
Short term | - | 7,877 | - | 7,877 | ||||||||||||||||||||
Cash and cash equivalents | 8,349 | 10,905 | 12,315 | 20,465 | ||||||||||||||||||||
Short-term investments | 41,827 | 0 | 99,203 | 0 | ||||||||||||||||||||
Total consolidated investment income | 3,842,029 | 3,644,277 | 10,986,423 | 12,618,145 | 4,174,963 | 5,554,389 | 8,911,784 | 10,846,891 | ||||||||||||||||
Investment expenses | (720,741 | ) | (793,976 | ) | (2,012,234 | ) | (2,538,872 | ) | (931,167) | (1,114,203) | (2,349,823) | (1,947,337) | ||||||||||||
Consolidated net investment income | $ | 3,121,288 | $ | 2,850,301 | $ | 8,974,189 | $ | 10,079,273 | $ | 3,243,796 | $ | 4,440,186 | $ | 6,561,961 | $ | 8,899,554 |
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Fixed maturities available for sale | 25,000 | (4,896) | 45,833 | (527) | ||||
Equity securities | 155,324 | (29,393) | 240,508 | 287,945 | ||||
Real estate | 138,986 | 113,398 | 725,760 | 4,571,840 | ||||
Short-term investments | 0 | 0 | 23,509 | 0 | ||||
Consolidated net realized investment gains | 319,310 | 79,109 | 1,035,610 | 4,859,258 | ||||
Change in fair value of equity securities | 1,459,478 | (790,338) | (7,185,996) | 7,364,291 | ||||
$ | 1,778,788 | $ | (711,229) | $ | (6,150,386) | $ | 12,223,549 |
June 30, 2023 | As a % of Total Investments | As a % of Total Assets | |||||
Fixed maturiries | $ | 107,339,371 | 30% | 26% | |||
Equity securities, at fair value | 145,115,511 | 41% | 35% | ||||
Equity securities, at cost | 15,683,343 | 4% | 4% | ||||
Mortgage loans | 28,795,729 | 8% | 7% | ||||
Real Estate | 34,557,435 | 10% | 8% | ||||
Notes receivable | 12,868,853 | 4% | 3% | ||||
Policy loans | 6,277,787 | 2% | 2% | ||||
Short-term | 3,680,135 | 1% | 1% | ||||
Total investments | $ | 354,318,164 | 100% | 86% |
December 31, 2022 | As a % of Total Investments | As a % of Total Assets | |||||
Fixed maturiries | $ | 108,313,059 | 30% | 24% | |||
Equity securities, at fair value | 150,053,686 | 41% | 33% | ||||
Equity securities, at cost | 15,683,343 | 4% | 4% | ||||
Mortgage loans | 30,698,694 | 8% | 7% | ||||
Real Estate | 34,934,352 | 10% | 8% | ||||
Notes receivable | 14,424,127 | 4% | 3% | ||||
Policy loans | 6,567,434 | 2% | 1% | ||||
Short-term | 3,596,941 | 1% | 1% | ||||
Total investments | $ | 364,271,636 | 100% | 81% |
Description | |
*31.1 | Certification of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
*31.2 | Certification of Theodore C. Miller, Chief Financial Officer and Senior Vice President |
*32.1 | Certificate of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
*32.2 | Certificate of Theodore C. Miller, Chief Financial Officer and Senior Vice President |
**101 | The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements (detail tagged). |
**104 | Cover Page Interactive Data File (formatted in iXBRL and included in exhibit 101). |
Date: | By | /s/ James P. Rousey | ||
James P. Rousey | ||||
President and Director |
Date: | By | /s/ Theodore C. Miller | ||
Theodore C. Miller | ||||
Senior Vice President and Chief Financial Officer |