⌧ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 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 | ||
STANFORD, KY 40484 | ||
(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 □ |
PART I. Financial Information | 3 |
Item 1. Financial Statements | 3 |
Condensed Consolidated Balance Sheets | 3 |
Condensed Consolidated Statements of Operations | 4 |
Condensed Consolidated Statements of Comprehensive Income (Loss) | 5 |
Condensed Consolidated Statements of Shareholders' Equity | 6 |
Condensed Consolidated Statements of Cash Flows | 8 |
Notes to Condensed Consolidated Financial Statements | 9 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 4. Controls and Procedures | |
PART II. Other Information | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. Defaults Upon Senior Securities | |
Item 4. Mine Safety Disclosures | |
Item 5. Other Information | |
Item 6. Exhibits | |
Signatures |
September 30, 2019 | December 31, 2018* | September 30, 2020 | December 31, 2019* | ||||||||||
ASSETS | ASSETS | ASSETS | |||||||||||
Investments: | |||||||||||||
Investments available for sale: | |||||||||||||
Fixed maturities, at fair value (amortized cost $163,291,888 and $160,895,869) | $ | 176,002,451 | $ | 160,960,784 | |||||||||
Equity securities, at fair value (cost $32,549,036 and $34,885,107) | 76,939,974 | 67,664,482 | |||||||||||
Fixed maturities, at fair value (amortized cost $156,998,638 and $159,959,855) | $ | 176,720,947 | $ | 171,629,373 | |||||||||
Equity securities, at fair value (cost $33,521,163 and $32,578,862) | 65,588,029 | 78,661,793 | |||||||||||
Equity securities, at cost | 11,289,805 | 12,118,617 | 14,417,247 | 10,919,247 | |||||||||
Mortgage loans on real estate at amortized cost | 8,526,598 | 9,069,111 | 20,392,053 | 8,223,286 | |||||||||
Investment real estate | 45,796,423 | 52,518,577 | 36,421,627 | 44,344,236 | |||||||||
Notes receivable | 27,953,110 | 23,717,312 | 19,298,398 | 19,487,458 | |||||||||
Policy loans | 8,853,633 | 9,204,222 | 8,727,991 | 8,803,876 | |||||||||
Short-term investments | 7,973,910 | 10,442,173 | |||||||||||
Total investments | 355,361,994 | 335,253,105 | 349,540,202 | 352,511,442 | |||||||||
Cash and cash equivalents | 25,728,799 | 20,150,162 | 24,723,191 | 28,787,629 | |||||||||
Accrued investment income | 1,744,076 | 2,119,882 | 1,247,946 | 1,679,783 | |||||||||
Reinsurance receivables: | |||||||||||||
Future policy benefits | 25,741,028 | 26,117,936 | 25,412,611 | 25,655,161 | |||||||||
Policy claims and other benefits | 3,970,131 | 4,053,882 | 4,262,277 | 4,142,142 | |||||||||
Cost of insurance acquired | 5,040,297 | 5,622,227 | 4,287,682 | 4,846,321 | |||||||||
Property and equipment, net of accumulated depreciation | 447,905 | 688,567 | 367,999 | 427,736 | |||||||||
Income tax receivable | 200,595 | 279,333 | 145,067 | 0 | |||||||||
Other assets | 636,478 | 1,263,242 | 764,344 | 695,517 | |||||||||
Total assets | $ | 418,871,303 | $ | 395,548,336 | $ | 410,751,319 | $ | 418,745,731 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Liabilities: | |||||||||||||
Policy liabilities and accruals: | |||||||||||||
Future policyholder benefits | $ | 250,008,948 | $ | 253,852,368 | $ | 245,084,324 | $ | 249,264,308 | |||||
Policy claims and benefits payable | 3,769,383 | 4,267,481 | 3,811,781 | 3,631,666 | |||||||||
Other policyholder funds | 407,283 | 372,072 | 402,225 | 404,177 | |||||||||
Dividend and endowment accumulations | 14,649,215 | 14,608,838 | 14,764,957 | 14,626,475 | |||||||||
Income taxes payable | 0 | 313,662 | |||||||||||
Deferred income taxes | 14,264,938 | 9,113,480 | 11,343,548 | 13,222,604 | |||||||||
Trading securities, at fair value (proceeds $5,584 and $0) | 4,003 | 0 | |||||||||||
Other liabilities | 6,763,117 | 6,257,387 | 6,172,576 | 5,785,933 | |||||||||
Total liabilities | 289,862,884 | 288,471,626 | 281,583,414 | 287,248,825 | |||||||||
Shareholders' equity: | |||||||||||||
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,276,560 and 3,295,870 shares outstanding | 3,277 | 3,296 | |||||||||||
Common stock - no par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,176,672 and 3,277,830 shares outstanding | 3,177 | 3,279 | |||||||||||
Additional paid-in capital | 35,965,153 | 36,567,865 | 33,056,562 | 36,012,401 | |||||||||
Retained earnings | 82,949,194 | 69,708,901 | 80,266,031 | 85,979,678 | |||||||||
Accumulated other comprehensive income | 9,597,996 | 62,495 | 15,218,666 | 8,977,914 | |||||||||
Total UTG shareholders' equity | 128,515,620 | 106,342,557 | 128,544,436 | 130,973,272 | |||||||||
Noncontrolling interests | 492,799 | 734,153 | 623,469 | 523,634 | |||||||||
Total shareholders' equity | 129,008,419 | 107,076,710 | 129,167,905 | 131,496,906 | |||||||||
Total liabilities and shareholders' equity | $ | 418,871,303 | $ | 395,548,336 | $ | 410,751,319 | $ | 418,745,731 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Premiums and policy fees | $ | 2,385,113 | $ | 2,469,322 | $ | 7,319,807 | $ | 7,659,198 | $ | 2,285,170 | $ | 2,385,113 | $ | 7,020,901 | $ | 7,319,807 | |||||||||||
Ceded reinsurance premiums and policy fees | (678,941 | ) | (652,418 | ) | (2,009,252 | ) | (2,164,581 | ) | (757,649) | (678,941) | (2,128,125) | (2,009,252) | |||||||||||||||
Net investment income | 2,818,669 | 2,309,470 | 8,632,402 | 8,996,566 | 2,231,360 | 2,818,669 | 8,083,200 | 8,632,402 | |||||||||||||||||||
Other income | 95,141 | 128,059 | 254,898 | 308,616 | 111,775 | 95,141 | 264,589 | 254,898 | |||||||||||||||||||
Revenue before net investment gains (losses) | 4,619,982 | 4,254,433 | 14,197,855 | 14,799,799 | 3,870,656 | 4,619,982 | 13,240,565 | 14,197,855 | |||||||||||||||||||
Net investment gains (losses): | |||||||||||||||||||||||||||
Other-than-temporary impairments | - | (300,000 | ) | - | (300,000 | ) | |||||||||||||||||||||
Other realized investment gains, net | 3,727,538 | 12,074,120 | 10,143,014 | 12,723,566 | 1,754,315 | 3,727,538 | 10,708,155 | 10,143,014 | |||||||||||||||||||
Change in fair value of equity securities | (4,046,457 | ) | 6,689,533 | 10,838,322 | 22,050,489 | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 | ||||||||||||||||||
Total net investment gains (losses) | (318,919 | ) | 18,463,653 | 20,981,336 | 34,474,055 | (523,587) | (318,919) | (3,307,910) | 20,981,336 | ||||||||||||||||||
Total revenue | 4,301,063 | 22,718,086 | 35,179,191 | 49,273,854 | 3,347,069 | 4,301,063 | 9,932,655 | 35,179,191 | |||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||
Benefits, claims and settlement expenses: | |||||||||||||||||||||||||||
Life | 4,029,261 | 4,388,733 | 12,047,346 | 12,927,216 | 4,460,762 | 4,029,261 | 11,423,300 | 12,047,346 | |||||||||||||||||||
Ceded reinsurance benefits and claims | (501,184 | ) | (1,044,894 | ) | (1,583,345 | ) | (1,996,044 | ) | (966,260) | (501,184) | (1,954,371) | (1,583,345) | |||||||||||||||
Annuity | 265,413 | 252,260 | 770,452 | 783,724 | 250,486 | 265,413 | 742,023 | 770,452 | |||||||||||||||||||
Dividends to policyholders | 74,864 | 77,489 | 274,516 | 301,779 | 70,125 | 74,864 | 256,445 | 274,516 | |||||||||||||||||||
Commissions and amortization of deferred policy acquisition costs | (39,665 | ) | (34,464 | ) | (102,784 | ) | (110,920 | ) | (35,865) | (39,665) | (99,541) | (102,784) | |||||||||||||||
Amortization of cost of insurance acquired | 193,977 | 201,516 | 581,930 | 604,549 | 186,214 | 193,977 | 558,639 | 581,930 | |||||||||||||||||||
Operating expenses | 1,940,795 | 3,401,169 | 5,875,135 | 7,271,820 | 2,559,653 | 1,940,795 | 6,249,951 | 5,875,135 | |||||||||||||||||||
Total benefits and other expenses | 5,963,461 | 7,241,809 | 17,863,250 | 19,782,124 | 6,525,115 | 5,963,461 | 17,176,446 | 17,863,250 | |||||||||||||||||||
Income (loss) before income taxes | (1,662,398 | ) | 15,476,277 | 17,315,941 | 29,491,730 | (3,178,046) | (1,662,398) | (7,243,791) | 17,315,941 | ||||||||||||||||||
Income tax (benefit) expense | (578,549 | ) | 3,506,656 | 3,781,340 | 6,563,628 | (765,421) | (578,549) | (1,629,979) | 3,781,340 | ||||||||||||||||||
Net income (loss) | (1,083,849 | ) | 11,969,621 | 13,534,601 | 22,928,102 | (2,412,625) | (1,083,849) | (5,613,812) | 13,534,601 | ||||||||||||||||||
Net income attributable to noncontrolling interests | (32,795 | ) | (32,078 | ) | (294,308 | ) | (184,565 | ) | (34,081) | (32,795) | (99,835) | (294,308) | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ (1,116,644 | ) | $ | 11,937,543 | $ | 13,240,293 | $ | 22,743,537 | $ | (2,446,706) | $ | (1,116,644) | $ | (5,713,647) | $ | 13,240,293 | ||||||||||
Amounts attributable to common shareholders | |||||||||||||||||||||||||||
Basic income (loss) per share | $ | $ (0.34 | ) | $ | 3.62 | $ | 4.03 | $ | 6.87 | $ | (0.76) | $ | (0.34) | $ | (1.75) | $ | 4.03 | ||||||||||
Diluted income (loss) per share | $ | $ (0.34 | ) | $ | 3.62 | $ | 4.03 | $ | 6.87 | $ | (0.76) | $ | (0.34) | $ | (1.75) | $ | 4.03 | ||||||||||
Basic weighted average shares outstanding | 3,279,684 | 3,299,615 | 3,289,133 | 3,311,912 | 3,221,049 | 3,279,684 | 3,256,217 | 3,289,133 | |||||||||||||||||||
Diluted weighted average shares outstanding | 3,279,684 | 3,299,615 | 3,289,133 | 3,311,912 | 3,221,049 | 3,279,684 | 3,256,217 | 3,289,133 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income (loss) | $ | (1,083,849 | ) | $ | 11,969,621 | $ | 13,534,601 | $ | 22,928,102 | $ | (2,412,625) | $ | (1,083,849) | $ | (5,613,812) | $ | 13,534,601 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during period, pre-tax | 3,184,769 | 1,244,302 | 12,044,690 | (4,982,237 | ) | 169,058 | 3,184,769 | 8,237,909 | 12,044,690 | ||||||||||||||||||
Tax (expense) benefit on unrealized holding gains (losses) arising during the period | (668,802 | ) | (261,303 | ) | (2,529,385 | ) | 1,046,270 | (35,502) | (668,802) | (1,729,961) | (2,529,385) | ||||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax | 2,515,967 | 982,999 | 9,515,305 | (3,935,967 | ) | 133,556 | 2,515,967 | 6,507,948 | 9,515,305 | ||||||||||||||||||
Less reclassification adjustment for gains (losses) included in net income | 30,793 | (11,018,710 | ) | 25,564 | (11,133,914 | ) | |||||||||||||||||||||
Tax (expense) benefit for gains included in net income | (6,466 | ) | 2,313,929 | (5,368 | ) | 2,338,122 | |||||||||||||||||||||
Reclassification adjustment for gains (losses) included in net income, net of tax | 24,327 | (8,704,781 | ) | 20,196 | (8,795,792 | ) | |||||||||||||||||||||
Less reclassification adjustment for (gains) losses included in net income | 0 | 30,793 | (338,223) | 25,564 | |||||||||||||||||||||||
Tax expense (benefit) for gains included in net income (loss) | 0 | (6,466) | 71,027 | (5,368) | |||||||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income, net of tax | 0 | 24,327 | (267,196) | 20,196 | |||||||||||||||||||||||
Subtotal: Other comprehensive income (loss), net of tax | 2,540,294 | (7,721,782 | ) | 9,535,501 | (12,731,759 | ) | 133,556 | 2,540,294 | 6,240,752 | 9,535,501 | |||||||||||||||||
Comprehensive income (loss) | 1,456,445 | 4,247,839 | 23,070,102 | 10,196,343 | (2,279,069) | 1,456,445 | 626,940 | 23,070,102 | |||||||||||||||||||
Less comprehensive income attributable to noncontrolling interests | (32,795 | ) | (32,078 | ) | (294,308 | ) | (184,565 | ) | (34,081) | (32,795) | (99,835) | (294,308) | |||||||||||||||
Comprehensive income (loss) attributable to UTG, Inc. | $ | 1,423,650 | $ | 4,215,761 | $ | 22,775,794 | $ | 10,011,778 | $ | (2,313,150) | $ | 1,423,650 | $ | 527,105 | $ | 22,775,794 |
Three Months Ended September 30, 2019 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 3,286 | $ | 36,253,067 | $ | 84,065,838 | $ | 7,057,702 | $ | 749,916 | $ | 128,129,809 | ||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 3,272 | $ | 35,780,640 | $ | 82,712,737 | $ | 15,085,110 | $ | 589,388 | $ | 134,171,147 | ||||||||||||||||||||||||
Common stock issued during year | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Treasury shares acquired | (9 | ) | (287,914 | ) | - | - | - | (287,923 | ) | (95) | (2,724,078) | 0 | 0 | 0 | (2,724,173) | |||||||||||||||||||||
Net income attributable to common shareholders | - | - | (1,116,644 | ) | - | - | (1,116,644 | ) | ||||||||||||||||||||||||||||
Net income (loss) attributable to common shareholders | 0 | 0 | (2,446,706) | 0 | 0 | (2,446,706) | ||||||||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | - | - | - | 2,540,294 | - | 2,540,294 | 0 | 0 | 0 | 133,556 | 0 | 133,556 | ||||||||||||||||||||||||
Contributions | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Distributions | - | - | - | - | (289,912 | ) | (289,912 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Gain attributable to noncontrolling interest | - | - | - | - | 32,795 | 32,795 | 0 | 0 | 0 | 0 | 34,081 | 34,081 | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 3,277 | $ | 35,965,153 | $ | 82,949,194 | $ | 9,597,996 | $ | 492,799 | $ | 129,008,419 | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 3,177 | $ | 33,056,562 | $ | 80,266,031 | $ | 15,218,666 | $ | 623,469 | $ | 129,167,905 |
Nine Months Ended September 30, 2019 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 3,296 | $ | 36,567,865 | $ | 69,708,901 | $ | 62,495 | $ | 734,153 | $ | 107,076,710 | ||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 3,279 | $ | 36,012,401 | $ | 85,979,678 | $ | 8,977,914 | $ | 523,634 | $ | 131,496,906 | ||||||||||||||||||||||||
Common stock issued during year | 7 | 246,527 | - | - | - | 246,534 | 7 | 218,282 | 0 | 0 | 0 | 218,289 | ||||||||||||||||||||||||
Treasury shares acquired | (26 | ) | (849,239 | ) | - | - | - | (849,265 | ) | (109) | (3,174,121) | 0 | 0 | 0 | (3,174,230) | |||||||||||||||||||||
Net income attributable to common shareholders | - | - | 13,240,293 | - | - | 13,240,293 | ||||||||||||||||||||||||||||||
Net income (loss) attributable to common shareholders | 0 | 0 | (5,713,647) | 0 | 0 | (5,713,647) | ||||||||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | - | - | - | 9,535,501 | - | 9,535,501 | 0 | 0 | 0 | 6,240,752 | 0 | 6,240,752 | ||||||||||||||||||||||||
Contributions | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Distributions | - | - | - | - | (535,662 | ) | (535,662 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Gain attributable to noncontrolling interest | - | - | - | - | 294,308 | 294,308 | 0 | 0 | 0 | 0 | 99,835 | 99,835 | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 3,277 | $ | 35,965,153 | $ | 82,949,194 | $ | 9,597,996 | $ | 492,799 | $ | 129,008,419 | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 3,177 | $ | 33,056,562 | $ | 80,266,031 | $ | 15,218,666 | $ | 623,469 | $ | 129,167,905 |
Three Months Ended September 30, 2018 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 3,305 | $ | 36,829,530 | $ | 68,123,778 | $ | 9,665,033 | $ | 804,122 | $ | 115,425,768 | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 3,286 | $ | 36,253,067 | $ | 84,065,838 | $ | 7,057,702 | $ | 749,916 | $ | 128,129,809 | ||||||||||||||||||||||||
Common stock issued during year | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Treasury shares acquired | (9 | ) | (264,374 | ) | - | - | - | (264,383 | ) | (9) | (287,914) | 0 | 0 | 0 | (287,923) | |||||||||||||||||||||
Net income attributable to common shareholders | - | - | 11,937,543 | - | - | 11,937,543 | 0 | 0 | (1,116,644) | 0 | 0 | (1,116,644) | ||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | - | - | - | (7,721,782 | ) | - | (7,721,782 | ) | 0 | 0 | 0 | 2,540,294 | 0 | 2,540,294 | ||||||||||||||||||||||
Contributions | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Distributions | - | - | - | - | - | - | 0 | 0 | 0 | 0 | (289,912) | (289,912) | ||||||||||||||||||||||||
Gain attributable to noncontrolling interest | - | - | - | - | 32,078 | 32,078 | 0 | 0 | 0 | 0 | 32,795 | 32,795 | ||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 3,296 | $ | 36,565,156 | $ | 80,061,321 | $ | 1,943,251 | $ | 836,200 | $ | 119,409,224 | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 3,277 | $ | 35,965,153 | $ | 82,949,194 | $ | 9,597,996 | $ | 492,799 | $ | 129,008,419 |
Nine Months Ended September 30, 2018 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 3,333 | $ | 37,536,164 | $ | 39,040,456 | $ | 32,952,338 | $ | 899,227 | $ | 110,431,518 | ||||||||||||||||||||||||
Adoption of Accounting Standards Update No 2016-01 | - | - | 18,277,328 | (18,277,328 | ) | - | - | |||||||||||||||||||||||||||||
January 1, 2018 | 3,333 | 37,536,164 | 57,317,784 | 14,675,010 | 899,227 | 110,431,518 | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 3,296 | $ | 36,567,865 | $ | 69,708,901 | $ | 62,495 | $ | 734,153 | $ | 107,076,710 | ||||||||||||||||||||||||
Common stock issued during year | 10 | 246,747 | - | - | - | 246,757 | 7 | 246,527 | 0 | 0 | 0 | 246,534 | ||||||||||||||||||||||||
Treasury shares acquired | (47 | ) | (1,217,755 | ) | - | - | - | (1,217,802 | ) | (26) | (849,239) | 0 | 0 | 0 | (849,265) | |||||||||||||||||||||
Net income attributable to common shareholders | - | - | 22,743,537 | - | - | 22,743,537 | 0 | 0 | 13,240,293 | 0 | 0 | 13,240,293 | ||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | - | - | - | (12,731,759 | ) | - | (12,731,759 | ) | 0 | 0 | 0 | 9,535,501 | 0 | 9,535,501 | ||||||||||||||||||||||
Contributions | - | - | - | - | - | - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Distributions | - | - | - | - | (247,592 | ) | (247,592 | ) | 0 | 0 | 0 | 0 | (535,662) | (535,662) | ||||||||||||||||||||||
Gain attributable to noncontrolling interest | - | - | - | - | 184,565 | 184,565 | 0 | 0 | 0 | 0 | 294,308 | 294,308 | ||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 3,296 | $ | 36,565,156 | $ | 80,061,321 | $ | 1,943,251 | $ | 836,200 | $ | 119,409,224 | ||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 3,277 | $ | 35,965,153 | $ | 82,949,194 | $ | 9,597,996 | $ | 492,799 | $ | 129,008,419 |
Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2019 | 2018 | 2020 | 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 13,534,601 | $ | 22,928,102 | |||||||||
Net income (loss) | $ | (5,613,812) | $ | 13,534,601 | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Amortization (accretion) of investments | 28,936 | 137,899 | (87,559) | 28,936 | |||||||||
Other-than-temporary impairments | - | 300,00 | |||||||||||
Realized investment gains, net | (10,143,014 | ) | (12,723,566 | ) | (10,708,155) | (10,143,014) | |||||||
Unrealized trading (gains) losses included in income | (1,581) | 0 | |||||||||||
Change in fair value of equity securities | (10,838,322 | ) | (22,050,489 | ) | 14,016,065 | (10,838,322) | |||||||
Amortization of cost of insurance acquired | 581,930 | 604,549 | 558,639 | 581,930 | |||||||||
Depreciation | 868,630 | 814,202 | 338,550 | 868,630 | |||||||||
Stock-based compensation | 246,534 | 246,757 | 218,289 | 246,534 | |||||||||
Charges for mortality and administration of universal life and annuity products | (4,839,551 | ) | (4,948,332 | ) | (4,759,240) | (4,839,551) | |||||||
Interest credited to account balances | 3,068,614 | 3,177,834 | 3,014,030 | 3,068,614 | |||||||||
Change in accrued investment income | 375,806 | 42,511 | 431,837 | 375,806 | |||||||||
Change in reinsurance receivables | 460,659 | 91,579 | 122,415 | 460,659 | |||||||||
Change in policy liabilities and accruals | (2,458,575 | ) | (2,613,125 | ) | (2,463,865) | (2,458,575) | |||||||
Change in income taxes receivable (payable) | 78,738 | 2,221,052 | (458,729) | 78,738 | |||||||||
Change in other assets and liabilities, net | 3,749,194 | 9,987,926 | (3,373,186) | 3,749,194 | |||||||||
Net cash used in operating activities | (5,285,820 | ) | (1,783,101 | ) | (8,766,302) | (5,285,820) | |||||||
Cash flows from investing activities: | |||||||||||||
Proceeds from investments sold and matured: | |||||||||||||
Fixed maturities available for sale | 8,563,966 | 54,220,638 | 12,253,350 | 8,563,966 | |||||||||
Equity securities | 10,219,197 | 843,260 | 17,071,364 | 10,219,197 | |||||||||
Mortgage loans | 4,824,430 | 4,496,554 | 554,787 | 4,824,430 | |||||||||
Real estate | 11,620,038 | 12,783,088 | 8,513,461 | 11,620,038 | |||||||||
Notes receivable | 4,296,998 | 2,559,264 | 3,689,060 | 4,296,998 | |||||||||
Policy loans | 1,324,183 | 1,423,014 | 914,651 | 1,324,183 | |||||||||
Short-term investments | - | 2,114,000 | 10,500,000 | 0 | |||||||||
Total proceeds from investments sold and matured | 40,848,812 | 78,439,818 | 53,496,673 | 40,848,812 | |||||||||
Cost of investments acquired: | |||||||||||||
Fixed maturities available for sale | (11,655,148 | ) | (42,955,401 | ) | (9,038,928) | (11,655,148) | |||||||
Equity securities | (1,323,310 | ) | (9,538,853 | ) | (12,011,489) | (1,323,310) | |||||||
Trading securities | (132,518 | ) | - | 5,584 | (132,518) | ||||||||
Mortgage loans | (4,216,644 | ) | (16,453 | ) | (12,692,488) | (4,216,644) | |||||||
Real estate | (1,729,000 | ) | (10,113,852 | ) | 0 | (1,729,000) | |||||||
Notes receivable | (8,532,796 | ) | (4,000,000 | ) | (3,500,000) | (8,532,796) | |||||||
Policy loans | (973,594 | ) | (1,244,976 | ) | (838,766) | (973,594) | |||||||
Short-term investments | - | (7,549,076 | ) | (7,890,228) | 0 | ||||||||
Total cost of investments acquired | (28,563,010 | ) | (75,418,611 | ) | (45,966,315) | (28,563,010) | |||||||
Net cash provided by investing activities | 12,285,802 | 3,021,207 | 7,530,358 | 12,285,802 | |||||||||
Cash flows from financing activities: | |||||||||||||
Policyholder contract deposits | 3,542,562 | 3,548,809 | 3,386,396 | 3,542,562 | |||||||||
Policyholder contract withdrawals | (3,578,980 | ) | (2,849,310 | ) | (3,040,660) | (3,578,980) | |||||||
Purchase of treasury stock | (849,265 | ) | (1,217,802 | ) | (3,174,230) | (849,265) | |||||||
Non controlling contributions (distributions) of consolidated subsidiary | (535,662 | ) | (247,592 | ) | 0 | (535,662) | |||||||
Net cash used in financing activities | (1,421,345 | ) | (765,895 | ) | (2,828,494) | (1,421,345) | |||||||
Net increase in cash and cash equivalents | 5,578,637 | 472,211 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (4,064,438) | 5,578,637 | |||||||||||
Cash and cash equivalents at beginning of period | 20,150,162 | 25,434,199 | 28,787,629 | 20,150,162 | |||||||||
Cash and cash equivalents at end of period | $ | 25,728,799 | $ | 25,906,410 | $ | 24,723,191 | $ | 25,728,799 |
September 30, 2019 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
September 30, 2020 | 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 | $ | 35,283,800 | $ | 483,968 | $ | (333 | ) | $ | 35,767,435 | $ | 44,789,865 | $ | 1,418,625 | $ | 0 | $ | 46,208,490 | |||||||||||
U.S. special revenue and assessments | 14,376,048 | 1,002,030 | (99 | ) | 15,377,979 | 14,356,937 | 1,487,743 | 0 | 15,844,680 | |||||||||||||||||||
All other corporate bonds | 113,632,040 | 11,224,997 | - | 124,857,037 | 97,851,836 | 16,815,941 | 0 | 114,667,777 | ||||||||||||||||||||
$ | 163,291,888 | $ | 12,710,995 | $ | (432 | ) | $ | 176,002,451 | $ | 156,998,638 | $ | 19,722,309 | $ | 0 | $ | 176,720,947 |
December 31, 2018 | Original or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
December 31, 2019 | 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 | $ | 25,649,410 | $ | 149,006 | $ | (138,222 | ) | $ | 25,660,194 | $ | 35,761,440 | $ | 402,832 | $ | (35,529) | $ | 36,128,743 | |||||||||||
U.S. special revenue and assessments | 16,350,486 | 334,300 | (4,406 | ) | 16,680,380 | 14,371,263 | 832,100 | 0 | 15,203,363 | |||||||||||||||||||
All other corporate bonds | 118,895,973 | 2,569,287 | (2,845,050 | ) | 118,620,210 | 109,827,152 | 10,470,115 | 0 | 120,297,267 | |||||||||||||||||||
$ | 160,895,869 | $ | 3,052,593 | $ | (2,987,678 | ) | $ | 160,960,784 | $ | 159,959,855 | $ | 11,705,047 | $ | (35,529) | $ | 171,629,373 |
Fixed Maturities Available for Sale September 30, 2019 | Amortized Cost | Fair Value | ||||||||||||
Fixed Maturities Available for Sale September 30, 2020 | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | 2,500,083 | $ | 2,499,750 | $ | 26,793,810 | $ | 27,113,305 | ||||||
Due after one year through five years | 62,005,611 | 64,052,446 | 46,406,659 | 49,706,585 | ||||||||||
Due after five years through ten years | 50,915,439 | 56,800,689 | 32,831,635 | 37,877,774 | ||||||||||
Due after ten years | 47,870,755 | 52,649,566 | 24,192,862 | 28,870,286 | ||||||||||
Fixed maturities with no single maturity date | 26,773,672 | 33,152,997 | ||||||||||||
Total | $ | 163,291,888 | $ | 176,002,451 | $ | 156,998,638 | $ | 176,720,947 |
September 30, 2019 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | - | - | 2,499,750 | (333 | ) | 2,499,750 | $ | (333 | ) | ||||||||||||||
U.S. special revenue and assessments | 2,027,140 | (99) | - | - | 2,027,140 | (99) | ||||||||||||||||||
Total fixed maturities | $ | 2,027,140 | (99 | ) | 2,499,750 | (333 | ) | 4,526,890 | $ | (432 | ) | |||||||||||||
September 30, 2020 | Less than 12 months | 12 months or longer | Total | |||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
All other corporate bonds | $ | 0 | 0 | 0 | 0 | 0 | $ | 0 | ||||||||||
Total fixed maturities | $ | 0 | 0 | 0 | 0 | 0 | $ | 0 | ||||||||||
December 31, 2018 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||
U.S. Government and govt. agencies and authorities | $ | 6,429,700 | (49,904 | ) | 1,592,679 | (88,318 | ) | 8,022,379 | $ | (138,222 | ) | |||||||||||||
U.S. special revenue and assessments | 4,023,920 | (4,406 | ) | - | - | 4,023,920 | (4,406 | ) | ||||||||||||||||
All other corporate bonds | 49,270,729 | (2,033,507 | ) | 15,337,739 | (811,543 | ) | 64,608,468 | (2,845,050 | ) | |||||||||||||||
Total fixed maturities | $ | 59,724,349 | (2,087,817 | ) | 16,930,418 | (899,861 | ) | 76,654,767 | $ | (2,987,678 | ) | |||||||||||||
December 31, 2019 | Less than 12 months | 12 months or longer | Total | |||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||
U.S. Government and govt. agencies and authorities | $ | 6,059,380 | (35,529) | 0 | 0 | 6,059,380 | $ | (35,529) | ||||||||||
Total fixed maturities | $ | 6,059,380 | (35,529) | 0 | 0 | 6,059,380 | $ | (35,529) | ||||||||||
Less than 12 months | 12 months or longer | Total | Less than 12 months | 12 months or longer | Total | |||||
As of September 30, 2019 | ||||||||||
As of September 30, 2020 | ||||||||||
Fixed maturities | 1 | 1 | 2 | 0 | 0 | 0 | ||||
As of December 31, 2018 | ||||||||||
As of December 31, 2019 | ||||||||||
Fixed maturities | 30 | 10 | 40 | 3 | 0 | 3 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Realized gains: | |||||||||||||||||||||||||||
Sales of fixed maturities | $ | - | $ | 11,018,711 | $ | 116,690 | $ | 11,392,373 | $ | 0 | $ | 0 | $ | 403,215 | $ | 116,690 | |||||||||||
Sales of equity securities | 3,738,333 | - | 6,504,246 | - | 884,559 | 3,738,333 | 9,500,176 | 6,504,246 | |||||||||||||||||||
Sales of real estate | 20,000 | 1,055,409 | 3,796,850 | 1,589,651 | 869,756 | 20,000 | 869,756 | 3,796,850 | |||||||||||||||||||
Other | - | - | - | - | 0 | 0 | 0 | 0 | |||||||||||||||||||
Total realized gains | 3,758,333 | 12,074,120 | 10,417,786 | 12,982,024 | 1,754,315 | 3,758,333 | 10,773,147 | 10,417,786 | |||||||||||||||||||
Realized losses: | |||||||||||||||||||||||||||
Sales of fixed maturities | (30,795 | ) | - | (142,254 | ) | (258,458 | ) | 0 | (30,795) | (64,992) | (142,254) | ||||||||||||||||
Sales of equity securities | - | - | - | - | 0 | 0 | 0 | 0 | |||||||||||||||||||
Sales of real estate | - | - | - | - | 0 | 0 | 0 | 0 | |||||||||||||||||||
Other-than-temporary impairments | - | (300,000 | ) | - | (300,000 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||
Other | - | - | (132,518 | ) | - | 0 | 0 | 0 | (132,518) | ||||||||||||||||||
Total realized losses | (30,795 | ) | (300,000 | ) | (274,772 | ) | (558,458 | ) | 0 | (30,795) | (64,992) | (274,772) | |||||||||||||||
Net realized investment gains (losses) | 3,727,538 | 11,774,120 | 10,143,014 | 12,423,566 | 1,754,315 | 3,727,538 | 10,708,155 | 10,143,014 | |||||||||||||||||||
Change in fair value of equity securities: | |||||||||||||||||||||||||||
Change in fair value of equity securities held at the end of the period | (4,046,457 | ) | 6,689,533 | 10,838,322 | 22,050,489 | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 | ||||||||||||||||||
Change in fair value of equity securities | (4,046,457 | ) | 6,689,533 | 10,838,322 | 22,050,489 | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 | ||||||||||||||||||
Net investment gains (losses) | $ | (318,919 | ) | $ | 18,463,653 | $ | 20,981,336 | $ | 34,474,055 | $ | (523,587) | $ | (318,919) | $ | (3,307,910) | $ | 20,981,336 | ||||||||||
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: | |||||||||||||||||||||||||||
Fixed maturities | $ | 3,184,769 | $ | 1,244,302 | $ | 12,044,690 | $ | (4,982,237 | ) | $ | 169,058 | $ | 3,184,769 | $ | 8,237,909 | $ | 12,044,690 | ||||||||||
Equity securities | - | - | - | - | |||||||||||||||||||||||
Net increase (decrease) | $ | 3,184,769 | $ | 1,244,302 | $ | 12,044,690 | $ | (4,982,237 | ) | $ | 169,058 | $ | 3,184,769 | $ | 8,237,909 | $ | 12,044,690 |
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Net gains (losses) recognized during the period on equity securities | $ | (1,393,343) | $ | (308,124) | $ | (4,515,889) | $ | 17,342,568 |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 884,559 | 3,738,333 | 9,500,176 | 6,504,246 | ||||
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ | (2,277,902) | $ | (4,046,457) | $ | (14,016,065) | $ | 10,838,322 |
Three Months Ended | |||||
September 30, | |||||
2020 | 2019 | ||||
Net unrealized gains (losses) | $ | 1,581 | $ | 0 | |
Net realized gains (losses) | 0 | 0 | |||
Net unrealized and realized gains (losses) | $ | 1,581 | $ | 0 |
Nine Months Ended | |||||
September 30, | |||||
2020 | 2019 | ||||
Net unrealized gains (losses) | $ | 1,581 | $ | 0 | |
Net realized gains (losses) | 0 | 0 | |||
Net unrealized and realized gains (losses) | $ | 1,581 | $ | 0 |
2019 | 2018 | 2020 | 2019 | |||||||||||
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% | 5.00% | 5.00% | 5.00% | ||||||
Commercial Loans | 7.50% | 4.82% | 7.50% | 4.00% | 7.50% | 4.24% | 7.50% | 4.82% | ||||||
Residential Loans | 5.50% | 5.50% | 8.00% | 8.00% | 5.50% | 5.50% | 5.50% | 5.50% |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | ||||||||||
In good standing | $ | 6,695,892 | $ | 7,169,272 | $ | 18,319,413 | $ | 8,223,286 | |||||
Overdue interest over 90 days | 1,830,706 | 1,899,839 | 2,072,640 | 0 | |||||||||
Total mortgage loans | $ | 8,526,598 | $ | 9,069,111 | $ | 20,392,053 | $ | 8,223,286 |
September 30, 2020 | December 31, 2019 | ||||
Raw land | $ | 9,915,856 | $ | 16,089,540 | |
Commercial | 5,414,238 | 4,908,028 | |||
Residential | 2,235,678 | 2,251,772 | |||
Land, minerals and royalty interests | 18,855,855 | 21,094,896 | |||
Total investment real estate | $ | 36,421,627 | $ | 44,344,236 |
September 30, 2020 | 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 | $ | 46,208,490 | $ | 0 | $ | 0 | $ | 0 | $ | 46,208,490 | ||||
U.S. special revenue and assessments | 0 | 15,844,680 | 0 | 0 | 15,844,680 | |||||||||
Corporate securities | 0 | 114,667,777 | 0 | 0 | 114,667,777 | |||||||||
Total fixed maturities | 46,208,490 | 130,512,457 | 0 | 0 | 176,720,947 | |||||||||
Equity securities: | ||||||||||||||
Common stocks | 22,790,516 | 16,908,050 | 3,051,875 | 22,814,521 | 65,564,962 | |||||||||
Preferred stocks | 0 | 23,066 | 0 | 0 | 23,066 | |||||||||
Total equity securities | 22,790,516 | 16,931,116 | 3,051,875 | 22,814,521 | 65,588,028 | |||||||||
Total financial assets | $ | 68,999,006 | $ | 147,443,573 | $ | 3,051,875 | $ | 22,814,521 | $ | 242,308,975 | ||||
Liabilities | ||||||||||||||
Trading Securities | $ | (4,003) | $ | 0 | $ | 0 | $ | 0 | $ | (4,003) |
December 31, 2019 | 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 | $ | 36,128,743 | $ | 0 | $ | 0 | $ | 0 | $ | 36,128,743 | ||||
U.S. special revenue and assessments | 0 | 15,203,363 | 0 | 0 | 15,203,363 | |||||||||
Corporate securities | 0 | 120,297,267 | 0 | 0 | 120,297,267 | |||||||||
Total fixed maturities | 36,128,743 | 135,500,630 | 0 | 0 | 171,629,373 | |||||||||
Equity securities: | ||||||||||||||
Common stocks | 29,888,281 | 14,258,750 | 10,274,810 | 24,239,952 | 78,661,793 | |||||||||
Total equity securities | 29,888,281 | 14,258,750 | 10,274,810 | 24,239,952 | 78,661,793 | |||||||||
Total financial assets | $ | 66,017,024 | $ | 149,759,380 | $ | 10,274,810 | $ | 24,239,952 | $ | 250,291,166 |
Fixed Maturities, Available for Sale | Equity Securities at Fair Value | Equity Securities at Net Asset Value | Total | ||||||||
Balance at December 31, 2019 | $ | 0 | $ | 10,274,810 | $ | 24,239,952 | $ | 34,514,762 | |||
Realized gains (losses) | 0 | 6,284,302 | 0 | 6,284,302 | |||||||
Unrealized gains (losses) | 0 | (3,850,560) | (2,809,324) | (6,659,884) | |||||||
Purchases | 0 | 1,797,500 | 1,415,757 | 3,213,257 | |||||||
Sales | 0 | (11,454,177) | (31,864) | (11,486,041) | |||||||
Balance at September 30, 2020 | $ | 0 | $ | 3,051,875 | $ | 22,814,521 | $ | 25,866,396 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Fixed Maturities, available for sale | $ | 35,767,435 | $ | 139,812,089 | $ | 422,927 | $ | 176,002,451 | ||||||||
Equity Securities | 29,232,731 | 14,328,980 | 33,378,263 | 76,939,974 | ||||||||||||
Total | $ | 65,000,166 | $ | 154,141,069 | $ | 33,801,190 | $ | 252,942,425 |
Financial Assets | Fair Value at September 30, 2020 | Fair Value at December 31, 2019 | Valuation Technique | ||
Common stocks | $ | 22,814,521 | $ | 24,239,952 | Net Asset Value |
Common stocks | 3,051,875 | 10,274,810 | Pricing Model | ||
Total | $ | 25,866,396 | $ | 34,514,762 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Fixed Maturities, available for sale | $ | 25,660,194 | $ | 134,865,746 | $ | 434,844 | $ | 160,960,784 | ||||||||
Equity Securities | 27,634,283 | 10,557,031 | 29,473,168 | 67,664,482 | ||||||||||||
Total | $ | 53,294,477 | $ | 145,422,777 | $ | 29,908,012 | $ | 228,625,266 |
Investment Company | Fair Value at September 30, 2020 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||
Common Stocks | ||||||
Growth Equity | ||||||
Redeemable | $ | 18,482,622 | $ | 0 | Quarterly | 45 days |
Non-Reedemable | 4,331,899 | 2,295,675 | n/a | n/a | ||
Total | $ | 22,814,521 | $ | 2,295,675 |
Investment Company | Fair Value at September 30, 2019 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||
Common Stocks | ||||||
Growth Equity | ||||||
Redeemable | $ | 21,270,734 | $ | 0 | Quarterly | 45 days |
Non-Reedemable | 2,969,218 | 163,750 | n/a | n/a | ||
Total | $ | 24,239,952 | $ | 163,750 |
Fixed Maturities, Available for Sale | Equity Securities | Total | ||||||||||
Balance at December 31, 2018 | $ | 434,844 | $ | 29,473,168 | $ | 29,908,012 | ||||||
Total unrealized gain or (losses): | ||||||||||||
Included in net income (loss) | - | 5,937,050 | 5,937,050 | |||||||||
Included in other comprehensive income | - | - | - | |||||||||
Purchases | - | 275,720 | 275,720 | |||||||||
Sales | (11,917 | ) | (2,307,675 | ) | (2,319,592 | ) | ||||||
Balance at September 30, 2019 | $ | 422,927 | $ | 33,378,263 | $ | 33,801,190 |
September 30, 2019 | December 31, 2018 | |||||||
Change in fair value of equity securities included in net income (loss) relating to assets held | $ | 5,937,050 | $ | 4,633,751 |
September 30, 2019 | December 31, 2018 | Carrying | Estimated | |||||||||||||||||||
Assets | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Equity securities | $ | 11,289,805 | $ | 11,289,805 | $ | 12,118,617 | $ | 12,118,617 | ||||||||||||||
September 30, 2020 | Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Common stock, at cost | $ | 5,860,000 | 5,860,000 | 0 | 0 | 5,860,000 | ||||||||||||||||
Preferred stock, at cost | 8,557,247 | 8,557,247 | 0 | 0 | 8,557,247 | |||||||||||||||||
Mortgage loans on real estate | 8,526,598 | 8,526,598 | 9,069,111 | 9,069,111 | 20,392,053 | 20,614,085 | 0 | 0 | 20,614,085 | |||||||||||||
Investment real estate | 45,796,423 | 45,796,423 | 52,518,577 | 52,518,577 | 36,421,627 | 81,351,608 | 0 | 0 | 81,351,608 | |||||||||||||
Notes receivable | 27,953,110 | 27,953,110 | 23,717,312 | 23,717,312 | 19,298,398 | 22,380,946 | 0 | 0 | 22,380,946 | |||||||||||||
Policy loans | 8,853,633 | 8,853,633 | 9,204,222 | 9,204,222 | 8,727,991 | 8,727,991 | 0 | 0 | 8,727,991 | |||||||||||||
Cash and cash equivalents | 25,728,799 | 25,728,799 | 20,150,162 | 20,150,162 |
Carrying | Estimated | |||||
December 31, 2019 | Amount | Fair Value | Level 1 | Level 2 | Level 3 | |
Common stock, at cost | $ | 7,875,145 | 7,875,145 | 0 | 0 | 7,875,145 |
Preferred stock, at cost | 3,044,102 | 3,044,102 | 0 | 0 | 3,044,102 | |
Mortgage loans on real estate | 8,223,286 | 7,531,094 | 0 | 0 | 7,531,094 | |
Investment real estate | 44,344,236 | 88,483,424 | 0 | 0 | 88,483,424 | |
Notes receivable | 19,487,458 | 19,332,472 | 0 | 0 | 19,332,472 | |
Policy loans | 8,803,876 | 8,803,876 | 0 | 0 | 8,803,876 |
Instrument | Issue Date | Maturity Date | Revolving Credit Limit | December 31, 2018 | Borrowings | Repayments | September 30, 2019 | Issue Date | Maturity Date | Revolving Credit Limit | December 31, 2019 | Borrowings | Repayments | September 30, 2020 | ||||||||||||||||||||||||||||||
Lines of Credit: | Lines of Credit: | Lines of Credit: | ||||||||||||||||||||||||||||||||||||||||||
UTG | 11/20/2013 | 11/20/2019 | $ | 8,000,000 | - | - | - | - | 11/20/2013 | 11/20/2020 | $ | 8,000,000 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
UG | 6/2/2015 | 5/8/2020 | 10,000,000 | - | - | - | - | 6/2/2015 | 5/7/2021 | 10,000,000 | 0 | 0 | 0 | 0 |
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 | 24,493 | 500,000 | 20,000 | |||||||||
Sovereign's Capital, LP Fund II | 1,000,000 | 158,596 | 1,000,000 | 158,596 | |||||||||
Sovereign's Capital, LP Fund III | 1,000,000 | 800,000 | 3,000,000 | 2,137,079 | |||||||||
Barton Springs Music, LLC | 1,750,000 | 1,064,750 | |||||||||||
Macritchie Storage II, LP | 7,000,750 | 1,840,485 | |||||||||||
Garden City Companies, LLC | 2,000,000 | 1,956,688 | |||||||||||
Carrizo Springs Music, LLC | 2,500,000 | 1,115,000 | |||||||||||
Modern Distributors, Inc. | 7,200,000 | 3,700,000 |
Three Months Ended | Three Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2020 | 2019 | ||||||||||
Interest | $ | - | $ | - | $ | 0 | $ | 0 | |||||
Federal income tax | - | - | 419,000 | 0 |
Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2019 | 2018 | 2020 | 2019 | ||||||||||
Interest | $ | - | $ | - | $ | 0 | $ | 0 | |||||
Federal income tax | 1,106,000 | 67,000 | 2,529,000 | 1,106,000 |
September 30, 2020 | December 31, 2019 | |||
Land, mineral, and royalty interests | $ | 57,246,945 | $ | 80,182,100 |
Transportation | 0 | 3,812,565 | ||
Exploration | 1,258,750 | 2,824,810 | ||
Total | $ | 58,505,695 | $ | 86,819,475 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net investment income | $ | 2,818,669 | $ | 2,309,470 | $ | 8,632,402 | $ | 8,996,566 | $ | 2,231,360 | $ | 2,818,669 | $ | 8,083,200 | $ | 8,632,402 | |||||||||||
Net investment gains (losses) | $ | (318,919 | ) | $ | 18,463,653 | $ | 20,981,336 | $ | 34,474,055 | $ | (523,587) | $ | (318,919) | $ | (3,307,910) | $ | 20,981,336 | ||||||||||
Change in net unrealized investment gains (losses) on available-for-sale securities, pre-tax | $ | 3,184,769 | $ | 1,244,302 | $ | 12,044,690 | $ | (4,982,237 | ) | $ | 169,058 | $ | 3,184,769 | $ | 8,237,909 | $ | 12,044,690 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Fixed maturities available for sale | $ | 1,445,341 | $ | 1,887,731 | $ | 4,371,895 | $ | 5,650,502 | $ | 1,301,923 | $ | 1,445,341 | $ | 4,023,342 | $ | 4,371,895 | ||||||||
Equity securities | 287,462 | 431,176 | 1,256,794 | 1,303,489 | 238,082 | 287,462 | 1,182,308 | 1,256,794 | ||||||||||||||||
Trading securities | - | - | - | - | 1,581 | - | 1,581 | - | ||||||||||||||||
Mortgage loans | 83,528 | 267,137 | 369,132 | 673,209 | 147,202 | 83,528 | 392,286 | 369,132 | ||||||||||||||||
Real estate | 881,705 | 531,892 | 2,141,339 | 2,396,586 | 563,306 | 881,705 | 2,805,810 | 2,141,339 | ||||||||||||||||
Notes receivable | 485,288 | 599,622 | 1,435,947 | 1,133,129 | 244,473 | 485,288 | 783,406 | 1,435,947 | ||||||||||||||||
Policy loans | 149,979 | 156,520 | 460,995 | 485,630 | 139,602 | 149,979 | 444,280 | 460,995 | ||||||||||||||||
Short term | - | 236,397 | - | 331,898 | ||||||||||||||||||||
Cash and cash equivalents | 58,573 | 6,109 | 146,435 | 11,863 | 284 | (1,407) | 53,458 | 2,815 | ||||||||||||||||
Short-term | 38,429 | 59,980 | 141,509 | 143,620 | ||||||||||||||||||||
Total consolidated investment income | 3,391,876 | 4,116,584 | 10,182,537 | 11,986,306 | 2,674,882 | 3,391,876 | 9,827,980 | 10,182,537 | ||||||||||||||||
Investment expenses | (573,207 | ) | (1,807,114 | ) | (1,550,135 | ) | (2,989,740 | ) | (443,522) | (573,207) | (1,744,780) | (1,550,135) | ||||||||||||
Consolidated net investment income | $ | 2,818,669 | $ | 2,309,470 | $ | 8,632,402 | $ | 8,996,566 | $ | 2,231,360 | $ | 2,818,669 | $ | 8,083,200 | $ | 8,632,402 |
Exhibit Number | 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, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
*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, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
**101 | Interactive Data File |
Date: | November | By | /s/ James P. Rousey | |
James P. Rousey | ||||
President and Director |
Date: | November | By | /s/ Theodore C. Miller | |
Theodore C. Miller | ||||
Senior Vice President and Chief Financial Officer |