UTAH | 87-0345941 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
5300 South 360 West, Suite 250, Salt Lake City, Utah | 84123 |
(Address of principal executive offices) | (Zip Code) |
(801) 264-1060 (Registrant's telephone number, including area code) |
Large accelerated filer [ ] | Accelerated filer [ ] | |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [X] | |
Emerging growth company [ ] |
Page No. | ||
Part I - Financial Information | ||
Item 1. | Financial Statements | |
Condensed Consolidated Balance Sheets as of September 30, | 3-4 | |
Condensed Consolidated Statements of Earnings for the Three and Nine Months Ended September 30, | 5 | |
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, | 6 | |
Condensed Consolidated Statements of Stockholders' Equity as of September 30, | ||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended | ||
Notes to Condensed Consolidated Financial Statements (unaudited) | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |
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 | |
Signature Page |
Assets | September 30 2017 (Unaudited) | December 31 2016 (As Restated) | September 30 2018 (Unaudited) | December 31 2017 | ||||||||||||
Investments: | ||||||||||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 230,811,272 | $ | 184,979,644 | $ | 230,386,875 | $ | 228,397,623 | ||||||||
Equity securities, available for sale, at estimated fair value | 5,957,488 | 9,911,256 | ||||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $2,051,818 and $1,748,783 for 2017 and 2016) | 147,300,691 | 148,990,732 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $17,919,427 and $16,138,439 for 2017 and 2016) | 150,568,998 | 145,165,921 | ||||||||||||||
Policy loans and other investments (net of allowances for doubtful accounts of $1,142,257 and $1,119,630 for 2017 and 2016) | 42,489,149 | 41,599,246 | ||||||||||||||
Short-term investments | 17,830,990 | 27,560,040 | ||||||||||||||
Equity securities at estimated fair value | 5,988,918 | 6,037,855 | ||||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,470,158 and $1,768,796 for 2018 and 2017) | 181,381,522 | 204,210,885 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $16,403,949 and $18,788,869 for 2018 and 2017) | 119,076,609 | 141,298,706 | ||||||||||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,046,840 and $846,641 for 2018 and 2017) | 44,038,625 | 45,895,472 | ||||||||||||||
Accrued investment income | 3,391,688 | 2,972,596 | 3,751,942 | 3,644,077 | ||||||||||||
Total investments | 598,350,276 | 561,179,435 | 584,624,491 | 629,484,618 | ||||||||||||
Cash and cash equivalents | 38,593,462 | 38,987,430 | 137,106,471 | 45,315,661 | ||||||||||||
Loans held for sale (including $166,990,187 for 2017 and $-0- for 2016 at estimated fair value) | 201,895,906 | 189,139,832 | ||||||||||||||
Receivables (net of allowances for doubtful accounts of $2,758,394 and $2,355,482 for 2017 and 2016) | 8,613,364 | 8,410,546 | ||||||||||||||
Restricted assets | 10,815,726 | 10,391,394 | ||||||||||||||
Cemetery perpetual care trust investments | 4,438,788 | 4,131,885 | ||||||||||||||
Loans held for sale at estimated fair value | 165,507,394 | 133,414,188 | ||||||||||||||
Receivables (net of allowances for doubtful accounts of $1,614,057 and $1,544,518 for 2018 and 2017) | 8,898,086 | 10,443,869 | ||||||||||||||
Restricted assets (including $810,056 and $809,958 for 2018 and 2017 at estimated fair value) | 12,226,773 | 11,830,621 | ||||||||||||||
Cemetery perpetual care trust investments (including $677,699 and $682,315 for 2018 and 2017 at estimated fair value) | 4,058,014 | 4,623,563 | ||||||||||||||
Receivable from reinsurers | 13,394,586 | 13,079,668 | 10,717,118 | 13,394,603 | ||||||||||||
Cemetery land and improvements | 10,581,368 | 10,672,836 | 9,885,331 | 9,942,933 | ||||||||||||
Deferred policy and pre-need contract acquisition costs | 78,049,594 | 69,118,745 | 87,899,386 | 80,625,304 | ||||||||||||
Mortgage servicing rights, net | 20,396,568 | 18,872,362 | 20,875,905 | 21,376,937 | ||||||||||||
Property and equipment, net | 7,560,662 | 8,791,522 | 7,206,802 | 8,069,380 | ||||||||||||
Value of business acquired | 6,831,777 | 7,570,300 | 5,963,308 | 6,588,759 | ||||||||||||
Goodwill | 2,765,570 | 2,765,570 | 2,765,570 | 2,765,570 | ||||||||||||
Other | 5,616,664 | 9,310,040 | 6,514,889 | 4,297,048 | ||||||||||||
Total Assets | $ | 1,007,904,311 | $ | 952,421,565 | $ | 1,064,249,538 | $ | 982,173,054 |
September 30 2017 (Unaudited) | December 31 2016 (As Restated) | September 30 2018 (Unaudited) | December 31 2017 | |||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Future policy benefits and unpaid claims | $ | 600,643,308 | $ | 584,067,692 | $ | 616,421,261 | $ | 604,746,951 | ||||||||
Unearned premium reserve | 4,290,164 | 4,469,771 | 3,989,237 | 4,222,410 | ||||||||||||
Bank and other loans payable | 182,769,669 | 152,140,679 | 196,422,645 | 157,450,925 | ||||||||||||
Deferred pre-need cemetery and mortuary contract revenues | 12,716,761 | 12,360,249 | 12,442,497 | 12,873,068 | ||||||||||||
Cemetery perpetual care obligation | 3,679,925 | 3,598,580 | 3,793,575 | 3,710,740 | ||||||||||||
Accounts payable | 3,279,790 | 4,213,109 | 3,243,526 | 3,613,100 | ||||||||||||
Other liabilities and accrued expenses | 33,448,055 | 34,693,485 | 33,352,301 | 29,655,087 | ||||||||||||
Income taxes | 27,732,758 | 24,318,869 | 22,552,988 | 17,332,783 | ||||||||||||
Total liabilities | 868,560,430 | 819,862,434 | 892,218,030 | 833,605,064 | ||||||||||||
Stockholders' Equity | ||||||||||||||||
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 13,820,079 shares in 2017 and 13,819,006 shares in 2016 | 27,640,158 | 27,638,012 | ||||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 14,573,658 shares in 2018 and 14,535,577 shares in 2017 | 29,147,316 | 29,071,154 | ||||||||||||||
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,005,026 shares in 2017 and 1,902,229 shares in 2016 | 4,010,052 | 3,804,458 | ||||||||||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,089,184 shares in 2018 and 2,089,374 shares in 2017 | 4,178,368 | 4,178,748 | ||||||||||||||
Additional paid-in capital | 35,490,027 | 34,813,246 | 38,711,180 | 38,125,042 | ||||||||||||
Accumulated other comprehensive income, net of taxes | 336,631 | 264,822 | (687 | ) | 603,170 | |||||||||||
Retained earnings | 72,848,622 | 67,409,204 | 100,293,129 | 77,520,951 | ||||||||||||
Treasury stock at cost - 559,605 Class A shares in 2017 and 704,122 Class A shares in 2016 | (981,609 | ) | (1,370,611 | ) | ||||||||||||
Treasury stock at cost - 328,650 Class A shares in 2018 and 537,203 Class A shares in 2017 | (297,798 | ) | (931,075 | ) | ||||||||||||
Total stockholders' equity | 139,343,881 | 132,559,131 | 172,031,508 | 148,567,990 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,007,904,311 | $ | 952,421,565 | $ | 1,064,249,538 | $ | 982,173,054 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Insurance premiums and other considerations | $ | 17,489,560 | $ | 17,157,319 | $ | 52,345,184 | $ | 47,508,420 | $ | 18,639,401 | $ | 17,489,560 | $ | 56,640,590 | $ | 52,345,184 | ||||||||||||||||
Net investment income | 8,361,466 | 8,089,857 | 25,559,113 | 23,484,280 | 9,641,496 | 8,220,430 | 29,457,892 | 25,559,113 | ||||||||||||||||||||||||
Net mortuary and cemetery sales | 2,717,311 | 2,776,023 | 9,356,659 | 9,541,950 | 3,646,290 | 2,717,311 | 10,430,128 | 9,356,659 | ||||||||||||||||||||||||
Realized gains (losses) on investments and other assets | (319,666 | ) | (39,169 | ) | 713,066 | 179,296 | ||||||||||||||||||||||||||
Gains on investments and other assets | 1,022,427 | (319,666 | ) | 25,371,595 | 713,066 | |||||||||||||||||||||||||||
Other than temporary impairments on investments | (163,375 | ) | (30,000 | ) | (481,741 | ) | (133,630 | ) | - | (163,375 | ) | - | (481,741 | ) | ||||||||||||||||||
Mortgage fee income | 41,597,573 | 53,195,763 | 122,086,734 | 146,967,246 | 31,664,704 | 41,597,573 | 88,833,944 | 122,086,734 | ||||||||||||||||||||||||
Other | 2,288,982 | 1,798,864 | 6,393,691 | 4,944,670 | 2,608,775 | 2,288,982 | 7,430,179 | 6,393,691 | ||||||||||||||||||||||||
Total revenues | 71,971,851 | 82,948,657 | 215,972,706 | 232,492,232 | 67,223,093 | 71,830,815 | 218,164,328 | 215,972,706 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Death benefits | 8,772,153 | 7,250,100 | 26,113,770 | 22,410,230 | 8,616,285 | 8,772,153 | 27,579,540 | 26,113,770 | ||||||||||||||||||||||||
Surrenders and other policy benefits | 547,648 | 630,735 | 2,085,296 | 1,709,915 | 692,445 | 547,648 | 2,198,479 | 2,085,296 | ||||||||||||||||||||||||
Increase in future policy benefits | 6,735,141 | 6,382,949 | 17,669,279 | 15,777,008 | 6,686,536 | 6,735,141 | 18,420,499 | 17,669,279 | ||||||||||||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 2,238,955 | 2,301,107 | 6,271,763 | 6,221,495 | 2,746,288 | 2,238,955 | 7,967,003 | 6,271,763 | ||||||||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||||||||
Commissions | 18,999,583 | 24,395,173 | 53,877,389 | 68,214,894 | 13,619,192 | 18,999,583 | 39,361,315 | 53,877,389 | ||||||||||||||||||||||||
Personnel | 17,200,315 | 17,755,070 | 53,754,920 | 52,535,277 | 17,075,236 | 17,059,279 | 50,547,638 | 53,754,920 | ||||||||||||||||||||||||
Advertising | 1,611,599 | 2,006,013 | 4,407,877 | 5,053,968 | 1,423,933 | 1,611,599 | 3,647,610 | 4,407,877 | ||||||||||||||||||||||||
Rent and rent related | 2,257,259 | 2,122,708 | 6,693,292 | 6,235,430 | 1,913,813 | 2,257,259 | 5,806,296 | 6,693,292 | ||||||||||||||||||||||||
Depreciation on property and equipment | 517,041 | 528,051 | 1,723,879 | 1,585,995 | 457,430 | 517,041 | 1,426,087 | 1,723,879 | ||||||||||||||||||||||||
Provision for loan loss reserve | - | 600,000 | - | 600,000 | ||||||||||||||||||||||||||||
Costs related to funding mortgage loans | 2,809,471 | 2,365,395 | 7,315,227 | 6,956,774 | 1,732,617 | 2,809,471 | 5,147,557 | 7,315,227 | ||||||||||||||||||||||||
Other | 7,035,570 | 8,075,906 | 22,227,370 | 21,388,693 | 7,616,264 | 7,035,570 | 21,562,432 | 22,227,370 | ||||||||||||||||||||||||
Interest expense | 1,655,870 | 1,476,137 | 4,295,263 | 3,775,483 | 1,855,548 | 1,655,870 | 5,297,066 | 4,295,263 | ||||||||||||||||||||||||
Cost of goods and services sold-mortuaries and cemeteries | 453,229 | 485,783 | 1,507,295 | 1,396,574 | 575,708 | 453,229 | 1,641,596 | 1,507,295 | ||||||||||||||||||||||||
Total benefits and expenses | 70,833,834 | 76,375,127 | 207,942,620 | 213,861,736 | 65,011,295 | 70,692,798 | 190,603,118 | 207,942,620 | ||||||||||||||||||||||||
Earnings before income taxes | 1,138,017 | 6,573,530 | 8,030,086 | 18,630,496 | 2,211,798 | 1,138,017 | 27,561,210 | 8,030,086 | ||||||||||||||||||||||||
Income tax expense | (41,179 | ) | (2,390,525 | ) | (2,587,384 | ) | (6,892,544 | ) | (198,052 | ) | (41,179 | ) | (5,383,324 | ) | (2,587,384 | ) | ||||||||||||||||
Net earnings | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Net earnings per Class A Equivalent common share (1) | $ | 0.07 | $ | 0.28 | $ | 0.36 | $ | 0.80 | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | ||||||||||||||||
Net earnings per Class A Equivalent common share-assuming dilution (1) | $ | 0.07 | $ | 0.27 | $ | 0.35 | $ | 0.77 | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | ||||||||||||||||
Weighted-average Class A equivalent common share outstanding (1) | 15,256,857 | 14,830,078 | 15,159,569 | 14,744,779 | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | ||||||||||||||||||||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 15,542,660 | 15,269,613 | 15,474,826 | 15,166,045 | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Net earnings | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | 144,381 | 212,413 | 106,543 | 684,002 | ||||||||||||||||||||||||||||
Unrealized gains on equity securities | - | 144,381 | - | 106,543 | ||||||||||||||||||||||||||||
Unrealized gains on derivative instruments | 554 | - | 3,170 | 5,541 | - | 554 | - | 3,170 | ||||||||||||||||||||||||
Foreign currency translation adjustments | 1,013 | - | (916 | ) | - | |||||||||||||||||||||||||||
Other comprehensive income, before income tax | 144,935 | 212,413 | 109,713 | 689,543 | 1,013 | 144,935 | (916 | ) | 109,713 | |||||||||||||||||||||||
Income tax expense | (50,517 | ) | (74,383 | ) | (37,904 | ) | (239,339 | ) | (252 | ) | (50,517 | ) | 229 | (37,904 | ) | |||||||||||||||||
Other comprehensive income, net of income tax | 94,418 | 138,030 | 71,809 | 450,204 | 761 | 94,418 | (687 | ) | 71,809 | |||||||||||||||||||||||
Comprehensive income | $ | 1,191,256 | $ | 4,321,035 | $ | 5,514,511 | $ | 12,188,156 | $ | 2,014,507 | $ | 1,191,256 | $ | 22,177,199 | $ | 5,514,511 |
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 26,218,200 | $ | 3,419,280 | $ | 30,232,582 | $ | (499,358 | ) | $ | 60,525,404 | $ | (2,179,429 | ) | $ | 117,716,679 | ||||||||||||||||||||||||||||||||||||||||
January 1, 2018 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 16,925,923 | - | 16,925,923 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,087 | - | - | - | 58,087 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 88,964 | - | - | 222,410 | 311,374 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 3,520 | (4 | ) | 5,362 | - | (8,878 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | 29,138,642 | 4,178,744 | 38,255,340 | - | 95,041,166 | (708,665 | ) | 165,905,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 3,238,217 | - | 3,238,217 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (1,448 | ) | - | (1,448 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,053 | - | - | - | 58,053 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 163,335 | - | - | 222,420 | 385,755 | |||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 376 | (376 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | 29,139,018 | 4,178,368 | 38,476,728 | (1,448 | ) | 98,279,383 | (486,245 | ) | 169,585,804 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 11,737,952 | - | 11,737,952 | - | - | - | - | 2,013,746 | - | 2,013,746 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | 450,204 | - | - | 450,204 | - | - | - | 761 | - | 761 | |||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | - | - | 253,427 | - | - | - | 253,427 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 64,834 | - | 12,374 | - | - | - | 77,208 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 440,420 | - | - | 634,268 | 1,074,688 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 274 | 12,768 | 30,779 | - | (43,821 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 17,016 | (17,016 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2016 | $ | 26,300,324 | $ | 3,415,032 | $ | 30,969,582 | $ | (49,154 | ) | $ | 72,219,535 | $ | (1,545,161 | ) | $ | 131,310,158 | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 27,638,012 | $ | 3,804,458 | $ | 34,813,246 | $ | 264,822 | $ | 67,409,204 | $ | (1,370,611 | ) | $ | 132,559,131 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 5,442,702 | - | 5,442,702 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | 71,809 | - | - | 71,809 | |||||||||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | - | - | 305,741 | - | - | - | 305,741 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,691 | - | - | - | 58,691 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | 8,298 | - | 7,261 | - | - | - | 15,559 | |||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 575,496 | - | - | 574,472 | 1,149,968 | - | - | 168,500 | - | - | 242,954 | 411,454 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | - | - | - | - | - | (54,507 | ) | (54,507 | ) | ||||||||||||||||||||||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 | |||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | $ | 29,147,316 | $ | 4,178,368 | $ | 38,711,180 | $ | (687 | ) | $ | 100,293,129 | $ | (297,798 | ) | $ | 172,031,508 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||
January 1, 2017 | $ | 27,638,012 | $ | 3,804,458 | $ | 34,813,246 | $ | 264,822 | $ | 67,409,204 | $ | (1,370,611 | ) | $ | 132,559,131 | |||||||||||||
Net earnings | - | - | - | - | 1,860,000 | - | 1,860,000 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 21,292 | - | - | 21,292 | |||||||||||||||||||||
Stock-based compensation expense | - | - | 101,996 | - | - | - | 101,996 | |||||||||||||||||||||
Sale of treasury stock | - | - | 178,002 | - | - | 146,065 | 324,067 | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | |||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | ||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | ||||||||||||||||||||
March 31, 2017 | 27,640,156 | 3,803,248 | 35,095,594 | 286,114 | 69,265,920 | (1,410,016 | ) | 134,681,016 | ||||||||||||||||||||
Net earnings | - | - | - | - | 2,485,864 | - | 2,485,864 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | (43,901 | ) | - | - | (43,901 | ) | |||||||||||||||||||
Stock-based compensation expense | - | - | 101,316 | - | - | - | 101,316 | |||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | ||||||||||||||||||||
Sale of treasury stock | - | - | 195,383 | - | - | 205,092 | 400,475 | |||||||||||||||||||||
June 30, 2017 | 27,640,158 | 4,010,052 | 35,185,487 | 242,213 | 71,751,784 | (1,204,924 | ) | 137,624,770 | ||||||||||||||||||||
Net earnings | - | - | - | - | 1,096,838 | - | 1,096,838 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 94,418 | - | - | 94,418 | |||||||||||||||||||||
Stock-based compensation expense | - | - | 102,429 | - | - | - | 102,429 | |||||||||||||||||||||
Sale of treasury stock | - | - | 202,111 | - | - | 223,315 | 425,426 | |||||||||||||||||||||
September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 |
Nine Months Ended September 30 | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net cash provided by (used in) operating activities | $ | (10,250,549 | ) | $ | 6,030,453 | |||
Cash flows from investing activities: | ||||||||
Purchases of fixed maturity securities | (29,074,605 | ) | (59,325,291 | ) | ||||
Calls and maturities of fixed maturity securities | 26,356,188 | 11,933,573 | ||||||
Purchases of equity securities | (2,356,207 | ) | (5,126,062 | ) | ||||
Sales of equity securities | 2,478,051 | 9,153,786 | ||||||
Purchases of short-term investments | - | (27,483,124 | ) | |||||
Sales of short-term investments | - | 37,212,174 | ||||||
Net changes in restricted assets | 121,418 | (234,807 | ) | |||||
Net changes in perpetual care trusts | 1,664,215 | (195,340 | ) | |||||
Mortgage loans, other investments and policy loans made | (376,549,887 | ) | (340,424,956 | ) | ||||
Payments received for mortgage loans, other investments and policy loans | 403,724,354 | 344,278,996 | ||||||
Purchase of property and equipment | (1,020,257 | ) | (508,846 | ) | ||||
Sale of property and equipment | 2,014,704 | 9,977 | ||||||
Purchase of real estate | (22,399,516 | ) | (12,474,490 | ) | ||||
Sale of real estate | 65,457,047 | 8,612,307 | ||||||
Cash paid for purchase of subsidiaries, net of cash acquired | (3,405,783 | ) | - | |||||
Net cash provided by (used in) investing activities | 67,009,722 | (34,572,103 | ) | |||||
Cash flows from financing activities: | ||||||||
Investment contract receipts | 8,833,639 | 9,457,285 | ||||||
Investment contract withdrawals | (11,667,269 | ) | (11,522,652 | ) | ||||
Proceeds from stock options exercised | 57,412 | - | ||||||
Purchase of treasury stock | (54,507 | ) | (185,470 | ) | ||||
Repayment of bank loans | (27,873,253 | ) | (2,142,382 | ) | ||||
Proceeds from borrowing on bank loans | 11,455,289 | 16,729,056 | ||||||
Net change in warehouse line borrowings | 14,131,782 | 16,022,738 | ||||||
Net change in line of credit borrowings | 41,250,000 | - | ||||||
Net cash provided by financing activities | 36,133,093 | 28,358,575 | ||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 92,892,266 | (183,075 | ) | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 54,501,923 | 46,942,293 | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 147,394,189 | $ | 46,759,218 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid (received) during the year for: | ||||||||
Interest (net of amount capitalized) | $ | 5,206,262 | $ | 4,188,579 | ||||
Income taxes (net of refunds) | 162,327 | (788,601 | ) | |||||
Non Cash Operating, Investing and Financing Activities: | ||||||||
Benefit plans funded with treasury stock | $ | 1,108,583 | $ | 1,149,968 | ||||
Mortgage loans foreclosed into real estate | 670,601 | 1,576,196 | ||||||
Transfer of loans held for sale to mortgage loans held for investment | 139,464 | 5,032,147 | ||||||
Accrued real estate construction costs and retainage | 17,433 | 1,932,790 | ||||||
Nine Months Ended September 30 | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net cash provided by operating activities | $ | 6,030,453 | $ | 17,639,672 | ||||
Cash flows from investing activities: | ||||||||
Securities held to maturity: | ||||||||
Purchase-fixed maturity securities | (59,325,291 | ) | (6,519,416 | ) | ||||
Calls and maturities - fixed maturity securities | 11,933,573 | 10,032,336 | ||||||
Securities available for sale: | ||||||||
Purchase - equity securities | (5,126,062 | ) | (3,726,194 | ) | ||||
Sales - equity securities | 9,153,786 | 3,349,728 | ||||||
Purchases of short-term investments | (27,483,124 | ) | (13,379,112 | ) | ||||
Sales of short-term investments | 37,212,174 | 7,185,582 | ||||||
Net changes in restricted assets | (409,625 | ) | (438,204 | ) | ||||
Net changes in perpetual care trusts | (231,415 | ) | (966,367 | ) | ||||
Mortgage loans, policy loans, and other investments made | (340,424,956 | ) | (338,457,602 | ) | ||||
Payments received for mortgage loans, policy loans and other investments | 344,278,996 | 330,303,396 | ||||||
Purchase of property and equipment | (508,846 | ) | (1,303,979 | ) | ||||
Sale of property and equipment | 9,977 | 34,000 | ||||||
Purchase of real estate | (12,474,490 | ) | (19,448,152 | ) | ||||
Sale of real estate | 8,612,307 | 5,672,484 | ||||||
Cash paid for purchase of subsidiaries, net of cash acquired | - | (4,328,520 | ) | |||||
Net cash used in investing activities | (34,782,996 | ) | (31,990,020 | ) | ||||
Cash flows from financing activities: | ||||||||
Investment contract receipts | 9,457,285 | 8,401,542 | ||||||
Investment contract withdrawals | (11,522,652 | ) | (9,957,964 | ) | ||||
Proceeds from stock options exercised | - | 77,208 | ||||||
Purchase of treasury stock | (185,470 | ) | - | |||||
Repayment of bank loans | (2,142,382 | ) | (1,169,233 | ) | ||||
Proceeds from borrowing on bank loans | 16,729,056 | 2,523,670 | ||||||
Net change in warehouse line borrowings | 16,022,738 | 23,893,122 | ||||||
Net change in line of credit borrowings | - | 1,439,650 | ||||||
Net cash provided by financing activities | 28,358,575 | 25,207,995 | ||||||
Net change in cash and cash equivalents | (393,968 | ) | 10,857,647 | |||||
Cash and cash equivalents at beginning of period | 38,987,430 | 40,053,242 | ||||||
Cash and cash equivalents at end of period | $ | 38,593,462 | $ | 50,910,889 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid (received) during the year for: | ||||||||
Interest (net of amount capitalized) | $ | 4,188,579 | $ | 3,781,423 | ||||
Income taxes (net of refunds) | (788,601 | ) | 2,538,097 | |||||
Non Cash Operating, Investing and Financing Activities: | ||||||||
Transfer of loans held for sale to mortgage loans held for investment | $ | 5,032,147 | $ | 7,386,432 | ||||
Accrued real estate construction costs and retainage | 1,932,790 | - | ||||||
Mortgage loans foreclosed into real estate | 1,576,196 | 1,703,476 | ||||||
Benefit plans funded with treasury stock | 1,149,968 | 1,074,688 |
Nine Months Ended September 30 | ||||||||
2018 | 2017 | |||||||
Cash and cash equivalents | $ | 137,106,471 | $ | 38,593,462 | ||||
Restricted assets | 8,717,416 | 7,263,952 | ||||||
Cemetery perpetual care trust investments | 1,570,302 | 901,804 | ||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 147,394,189 | $ | 46,759,218 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 54,279,156 | $ | 237,071 | $ | (226,543 | ) | $ | 54,289,684 | $ | 53,683,435 | $ | 142,299 | $ | (1,248,029 | ) | $ | 52,577,705 | ||||||||||||||
Obligations of states and political subdivisions | 5,865,790 | 124,685 | (77,272 | ) | 5,913,203 | 6,987,405 | 40,224 | (190,262 | ) | 6,837,367 | ||||||||||||||||||||||
Corporate securities including public utilities | 160,278,125 | 14,088,157 | (1,285,361 | ) | 173,080,921 | 155,372,733 | 7,544,943 | (2,299,844 | ) | 160,617,832 | ||||||||||||||||||||||
Mortgage-backed securities | 9,764,566 | 253,573 | (171,423 | ) | 9,846,716 | 13,731,279 | 135,074 | (323,564 | ) | 13,542,789 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 53,403 | - | 677,038 | 612,023 | 36,437 | - | 648,460 | ||||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 230,811,272 | $ | 14,756,889 | $ | (1,760,599 | ) | $ | 243,807,562 | $ | 230,386,875 | $ | 7,898,977 | $ | (4,061,699 | ) | $ | 234,224,153 | ||||||||||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||||||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,310,307 | $ | 467,132 | $ | (819,951 | ) | $ | 5,957,488 | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | ||||||||||||||
Total equity securities available for sale at estimated fair value | $ | 6,310,307 | $ | 467,132 | $ | (819,951 | ) | $ | 5,957,488 | |||||||||||||||||||||||
Total equity securities at estimated fair value | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | |||||||||||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 65,759,761 | $ | 79,930,807 | ||||||||||||||||||||||||||||
Residential construction | 41,306,722 | 71,330,891 | ||||||||||||||||||||||||||||||
Commercial | 42,923,761 | 32,869,447 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (637,735 | ) | (1,279,465 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (2,051,818 | ) | (1,470,158 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 147,300,691 | $ | 181,381,522 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 69,469,220 | $ | 26,988,179 | ||||||||||||||||||||||||||||
Commercial | 81,099,778 | 92,088,430 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 150,568,998 | $ | 119,076,609 | ||||||||||||||||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,677,924 | $ | 6,389,122 | ||||||||||||||||||||||||||||
Insurance assignments | 33,340,431 | 32,166,750 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 689,400 | 2,308,700 | ||||||||||||||||||||||||||||||
Other investments | 2,923,681 | 4,220,893 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (1,142,287 | ) | (1,046,840 | ) | ||||||||||||||||||||||||||||
Total policy loans and other investments | $ | 42,489,149 | ||||||||||||||||||||||||||||||
Short-term investments at amortized cost | $ | 17,830,990 | ||||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 44,038,625 | ||||||||||||||||||||||||||||||
Accrued investment income | $ | 3,391,688 | $ | 3,751,942 | ||||||||||||||||||||||||||||
Total investments | $ | 584,624,491 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
December 31, 2016: | ||||||||||||||||||||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 4,475,065 | $ | 249,028 | $ | (66,111 | ) | $ | 4,657,982 | $ | 54,077,069 | $ | 211,824 | $ | (579,423 | ) | $ | 53,709,470 | ||||||||||||||
Obligations of states and political subdivisions | 6,017,225 | 153,514 | (133,249 | ) | 6,037,490 | 5,843,176 | 112,372 | (71,013 | ) | 5,884,535 | ||||||||||||||||||||||
Corporate securities including public utilities | 164,375,636 | 10,440,989 | (3,727,013 | ) | 171,089,612 | 158,350,727 | 14,336,452 | (1,007,504 | ) | 171,679,675 | ||||||||||||||||||||||
Mortgage-backed securities | 9,488,083 | 221,400 | (280,871 | ) | 9,428,612 | 9,503,016 | 210,652 | (162,131 | ) | 9,551,537 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 13,418 | - | 637,053 | 623,635 | 49,748 | (191 | ) | 673,192 | |||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 184,979,644 | $ | 11,078,349 | $ | (4,207,244 | ) | $ | 191,850,749 | $ | 228,397,623 | $ | 14,921,048 | $ | (1,820,262 | ) | $ | 241,498,409 | ||||||||||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||||||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 10,323,238 | $ | 447,110 | $ | (859,092 | ) | $ | 9,911,256 | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | ||||||||||||||
Total securities available for sale carried at estimated fair value | $ | 10,323,238 | $ | 447,110 | $ | (859,092 | ) | $ | 9,911,256 | |||||||||||||||||||||||
Total equity securities at estimated fair value | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | |||||||||||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 58,593,622 | $ | 102,527,111 | ||||||||||||||||||||||||||||
Residential construction | 40,800,117 | 50,157,533 | ||||||||||||||||||||||||||||||
Commercial | 51,536,622 | 54,954,865 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (190,846 | ) | (1,659,828 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,748,783 | ) | (1,768,796 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 148,990,732 | $ | 204,210,885 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumlated depreciation: | ||||||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 76,191,985 | $ | 68,329,917 | ||||||||||||||||||||||||||||
Commercial | 68,973,936 | 72,968,789 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 145,165,921 | $ | 141,298,706 | ||||||||||||||||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,694,148 | $ | 6,531,352 | ||||||||||||||||||||||||||||
Insurance assignments | 33,548,079 | 36,301,739 | ||||||||||||||||||||||||||||||
Promissory notes | 48,797 | |||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 662,100 | 689,400 | ||||||||||||||||||||||||||||||
Other investments | 1,765,752 | 3,219,622 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (1,119,630 | ) | (846,641 | ) | ||||||||||||||||||||||||||||
Total policy loans and other investments | $ | 41,599,246 | ||||||||||||||||||||||||||||||
Short-term investments at amortized cost | $ | 27,560,040 | ||||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 45,895,472 | ||||||||||||||||||||||||||||||
Accrued investment income | $ | 2,972,596 | $ | 3,644,077 | ||||||||||||||||||||||||||||
Total investments | $ | 629,484,618 |
Unrealized Losses for Less than Twelve Months | Fair Value | Unrealized Losses for More than Twelve Months | Fair Value | Total Unrealized Loss | Fair Value | Unrealized Losses for Less than Twelve Months | Fair Value | Unrealized Losses for More than Twelve Months | Fair Value | Total Unrealized Loss | Fair Value | |||||||||||||||||||||||||||||||||||||
At September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies | $ | 182,493 | $ | 51,456,444 | $ | 44,050 | $ | 851,779 | $ | 226,543 | $ | 52,308,223 | ||||||||||||||||||||||||||||||||||||
At September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies | $ | 104,070 | $ | 9,996,147 | $ | 1,143,956 | $ | 41,197,425 | $ | 1,248,029 | $ | 51,193,572 | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 18,357 | 2,486,400 | 58,915 | 1,651,253 | 77,272 | 4,137,653 | 46,178 | 2,447,348 | 144,084 | 2,644,649 | 190,262 | 5,091,997 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 286,166 | 16,526,010 | 999,195 | 10,820,005 | 1,285,361 | 27,346,015 | 1,738,234 | 59,982,599 | 561,610 | 8,915,794 | 2,299,844 | 68,898,393 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 68,972 | 2,026,033 | 102,451 | 1,156,803 | 171,423 | 3,182,836 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 51,253 | 6,780,302 | 272,311 | 2,352,453 | 323,564 | 9,132,755 | ||||||||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 555,988 | $ | 72,494,887 | $ | 1,204,611 | $ | 14,479,840 | $ | 1,760,599 | $ | 86,974,727 | $ | 1,939,735 | $ | 79,206,396 | $ | 2,121,961 | $ | 55,110,321 | $ | 4,061,699 | $ | 134,316,717 | ||||||||||||||||||||||||
At December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies | $ | 66,111 | $ | 1,342,088 | $ | - | $ | - | $ | 66,111 | $ | 1,342,088 | ||||||||||||||||||||||||||||||||||||
At December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies | $ | 532,010 | $ | 51,606,699 | $ | 47,413 | $ | 643,380 | $ | 579,423 | $ | 52,250,079 | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 133,249 | 3,686,856 | - | - | 133,249 | 3,686,856 | 296 | 214,882 | 70,717 | 2,225,021 | 71,013 | 2,439,903 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,728,312 | 41,796,016 | 1,998,701 | 12,969,135 | 3,727,013 | 54,765,151 | 167,786 | 11,551,865 | 839,718 | 13,193,258 | 1,007,504 | 24,745,123 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 176,715 | 4,176,089 | 104,156 | 940,278 | 280,871 | 5,116,367 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 56,756 | 2,516,660 | 105,375 | 1,676,494 | 162,131 | 4,193,154 | ||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 191 | 11,421 | - | - | 191 | 11,421 | ||||||||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 2,104,387 | $ | 51,001,049 | $ | 2,102,857 | $ | 13,909,413 | $ | 4,207,244 | $ | 64,910,462 | $ | 757,039 | $ | 65,901,527 | $ | 1,063,223 | $ | 17,738,153 | $ | 1,820,262 | $ | 83,639,680 |
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||
Held to Maturity: | ||||||||||||||||
Due in 2017 | $ | 1,205,533 | $ | 1,208,929 | ||||||||||||
Due in 2018 through 2021 | 77,063,707 | 78,846,158 | ||||||||||||||
Due in 2022 through 2026 | 54,265,268 | 56,731,089 | ||||||||||||||
Due after 2026 | 87,888,563 | 96,497,632 | ||||||||||||||
Due in 1 year | $ | 2,899,715 | $ | 2,964,076 | ||||||||||||
Due in 2-5 years | 66,428,822 | 66,259,870 | ||||||||||||||
Due in 5-10 years | 69,688,359 | 69,760,698 | ||||||||||||||
Due in more than 10 years | 77,026,677 | 81,048,260 | ||||||||||||||
Mortgage-backed securities | 9,764,566 | 9,846,716 | 13,731,279 | 13,542,789 | ||||||||||||
Redeemable preferred stock | 623,635 | 677,038 | 612,023 | 648,460 | ||||||||||||
Total held to maturity | $ | 230,811,272 | $ | 243,807,562 | $ | 230,386,875 | $ | 234,224,153 |
Unrealized Losses for Less than Twelve Months | No. of Investment Positions | Unrealized Losses for More than Twelve Months | No. of Investment Positions | Total Unrealized Losses | Unrealized Losses for Less than Twelve Months | No. of Investment Positions | Unrealized Losses for More than Twelve Months | No. of Investment Positions | Total Unrealized Losses | |||||||||||||||||||||||||||||||
At September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 150,581 | 108 | $ | 669,370 | 92 | $ | 819,951 | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||||||||||||||
Total unrealized losses | $ | 150,581 | 108 | $ | 669,370 | 92 | $ | 819,951 | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||||||||||||||
Fair Value | $ | 988,159 | $ | 1,444,994 | $ | 2,433,153 | $ | 847,718 | $ | 1,329,213 | $ | 2,176,931 | ||||||||||||||||||||||||||||
At December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||||||||||||||||||||||
Fair Value | $ | 2,063,144 | $ | 1,685,874 | $ | 3,749,018 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||
Gross realized gains | $ | 110,529 | $ | 65,179 | $ | 163,950 | $ | 259,635 | ||||||||
Gross realized losses | (651,754 | ) | (4,527 | ) | (686,819 | ) | (7,405 | ) | ||||||||
Other than temporary impairments | (100,000 | ) | (30,000 | ) | (418,366 | ) | (90,000 | ) | ||||||||
Equity securities available for sale: | ||||||||||||||||
Gross realized gains | 25,898 | 36,751 | 132,350 | 176,331 | ||||||||||||
Gross realized losses | (26 | ) | (4,544 | ) | (58,464 | ) | (37,146 | ) | ||||||||
Other than temporary impairments | (63,375 | ) | - | (63,375 | ) | (43,630 | ) | |||||||||
Other assets: | ||||||||||||||||
Gross realized gains | 225,022 | 191,992 | 2,006,721 | 468,675 | ||||||||||||
Gross realized losses | (29,335 | ) | (324,020 | ) | (844,672 | ) | (680,794 | ) | ||||||||
Total | $ | (483,041 | ) | $ | (69,169 | ) | $ | 231,325 | $ | 45,666 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||||
Gross realized gains | $ | 109,554 | $ | 110,529 | $ | 397,190 | $ | 163,950 | ||||||||||
Gross realized losses | (31,670 | ) | (651,754 | ) | (601,303 | ) | (686,819 | ) | ||||||||||
Other than temporary impairments | - | (100,000 | ) | - | (418,366 | ) | ||||||||||||
Equity securities: | ||||||||||||||||||
Gross realized gains | - | 25,898 | - | 132,350 | ||||||||||||||
Gross realized losses | - | (26 | ) | - | (58,464 | ) | ||||||||||||
Other than temporary impairments | - | (63,375 | ) | - | (63,375 | ) | ||||||||||||
Gains and (losses) during 2018 on securities sold in 2018 | 11,214 | - | (13,933 | ) | - | |||||||||||||
Unrealized gains and (losses) on securities held at the end of the period | 284,192 | - | 71,143 | - | ||||||||||||||
Other assets: | ||||||||||||||||||
Gross realized gains | 814,471 | 225,022 | 26,060,598 | (1 | ) | 2,006,721 | ||||||||||||
Gross realized losses | (165,334 | ) | (29,335 | ) | (542,100 | ) | (844,672 | ) | ||||||||||
Total | $ | 1,022,427 | $ | (483,041 | ) | $ | 25,371,595 | $ | 231,325 | |||||||||
(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village apartments. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Fixed maturity securities held to maturity | $ | 2,481,202 | $ | 2,692,586 | $ | 7,521,884 | $ | 7,475,156 | ||||||||
Equity securities | 64,214 | 66,320 | 176,126 | 209,517 | ||||||||||||
Mortgage loans held for investment | 4,240,624 | 2,973,349 | 14,016,985 | 8,803,257 | ||||||||||||
Real estate held for investment | 2,124,138 | 2,818,672 | 6,423,996 | 8,540,756 | ||||||||||||
Policy loans | 85,044 | 195,098 | 296,540 | 621,854 | ||||||||||||
Insurance assignments | 3,583,964 | 3,234,520 | 10,956,651 | 9,943,561 | ||||||||||||
Other investments | 57,050 | 16,051 | 186,594 | 36,041 | ||||||||||||
Cash and cash equivalents | 375,310 | 109,939 | 752,339 | 311,989 | ||||||||||||
Gross investment income | 13,011,546 | 12,106,535 | 40,331,115 | 35,942,131 | ||||||||||||
Investment expenses | (3,370,050 | ) | (3,886,105 | ) | (10,873,223 | ) | (10,383,018 | ) | ||||||||
Net investment income | $ | 9,641,496 | $ | 8,220,430 | $ | 29,457,892 | $ | 25,559,113 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Fixed maturity securities | $ | 2,692,586 | $ | 2,410,641 | $ | 7,475,156 | $ | 6,472,847 | ||||||||
Equity securities | 66,320 | 78,402 | 209,517 | 208,696 | ||||||||||||
Mortgage loans held for investment | 2,973,349 | 2,830,853 | 8,803,257 | 8,238,249 | ||||||||||||
Real estate held for investment | 2,818,672 | 2,736,301 | 8,540,756 | 8,162,574 | ||||||||||||
Policy loans | 195,098 | 205,537 | 621,854 | 558,778 | ||||||||||||
Insurance assignments | 3,234,520 | 2,952,170 | 9,943,561 | 8,915,654 | ||||||||||||
Other investments | 16,051 | - | 36,041 | 13,962 | ||||||||||||
Short-term investments | 109,939 | 20,978 | 311,989 | 66,480 | ||||||||||||
Gross investment income | 12,106,535 | 11,234,882 | 35,942,131 | 32,637,240 | ||||||||||||
Investment expenses | (3,745,069 | ) | (3,145,025 | ) | (10,383,018 | ) | (9,152,960 | ) | ||||||||
Net investment income | $ | 8,361,466 | $ | 8,089,857 | $ | 25,559,113 | $ | 23,484,280 |
Net Ending Balance | Total Square Footage | |||||||||||||||||
September 30 | December 31 | September 30 | December 31 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 4,000 | (1 | ) | - | - | ||||||||
Arkansas | - | 96,169 | - | 3,200 | ||||||||||||||
Kansas | 6,086,759 | 7,200,000 | 222,679 | 222,679 | ||||||||||||||
Louisiana | 474,069 | 493,197 | 7,063 | 7,063 | ||||||||||||||
Mississippi | 3,655,283 | 3,725,039 | 33,821 | 33,821 | ||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||
Texas | 335,000 | (1 | ) | 335,000 | (1 | ) | - | 23,470 | ||||||||||
Utah | 81,526,319 | (2 | ) | 61,108,384 | (2 | ) | 502,129 | 433,244 | ||||||||||
$ | 92,088,430 | $ | 72,968,789 | 765,692 | 723,477 | |||||||||||||
(1) Undeveloped land | ||||||||||||||||||
(2) Includes Center53 completed in July 2017. The Company is currently in the process of leasing the building. |
Net Ending Balance | Total Square Footage | |||||||||||||||||
September 30 | December 31 | September 30 | December 31 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 450,538 | (1 | ) | - | 16,270 | ||||||||
Arkansas | 97,219 | 100,369 | 3,200 | 3,200 | ||||||||||||||
Kansas | 11,993,029 | 12,450,297 | 222,679 | 222,679 | ||||||||||||||
Louisiana | 499,573 | 518,700 | 7,063 | 7,063 | ||||||||||||||
Mississippi | 3,748,324 | 3,818,985 | 33,821 | 33,821 | ||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||
Texas | 3,728,960 | 3,734,974 | 23,470 | 23,470 | ||||||||||||||
Utah | 61,021,673 | (2 | ) | 47,893,073 | (2 | ) | 433,244 | 433,244 | ||||||||||
$ | 81,099,778 | $ | 68,973,936 | 723,477 | 739,747 | |||||||||||||
(1) Includes undeveloped land | ||||||||||||||||||
(2) Includes 53rd Center completed in July 2017 |
Net Ending Balance | Net Ending Balance | |||||||||||||||
September 30 | December 31 | September | December 31 | |||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
Arizona | $ | 217,516 | $ | 742,259 | $ | - | $ | 217,105 | ||||||||
California | 5,663,871 | 5,848,389 | 4,064,197 | 5,463,878 | ||||||||||||
Colorado | - | 364,489 | ||||||||||||||
Florida | 7,311,913 | 8,327,355 | 6,677,953 | 7,000,684 | ||||||||||||
Hawaii | 712,286 | - | - | 712,286 | ||||||||||||
Ohio | 46,658 | 46,658 | 10,000 | 10,000 | ||||||||||||
Oklahoma | 17,500 | - | - | 17,500 | ||||||||||||
Tennesse | 105,260 | - | ||||||||||||||
Texas | 511,486 | 1,091,188 | 552,615 | 509,011 | ||||||||||||
Utah | 54,701,809 | 59,485,466 | 14,951,798 | 54,113,272 | ||||||||||||
Virginia | 150,175 | - | ||||||||||||||
Washington | 286,181 | 286,181 | 476,181 | 286,181 | ||||||||||||
$ | 69,469,220 | $ | 76,191,985 | $ | 26,988,179 | $ | 68,329,917 |
Location | Business Segment | Approximate Square Footage | Square Footage Occupied by the Company | Business Segment | Approximate Square Footage | Square Footage Occupied by the Company | ||||||||||||
5300 South 360 West, Salt Lake City, UT (1) | Corporate Offices, Life Insurance and Cemetery/Mortuary Operations | 36,000 | 100 | % | Corporate Offices, Life Insurance and Cemetery/Mortuary Operations | 36,000 | 100 | % | ||||||||||
5201 Green Street, Salt Lake City, UT | Mortgage Operations | 36,899 | 34 | % | Mortgage Operations | 36,899 | 34 | % | ||||||||||
1044 River Oaks Dr., Flowood, MS | Life Insurance Operations | 5,522 | 27 | % | Life Insurance Operations | 21,521 | 27 | % | ||||||||||
121 West Election Road, Draper, UT | Mortgage Sales | 78,978 | 19 | % | ||||||||||||||
(1) This asset is included in property and equipment on the condensed consolidated balance sheet | ||||||||||||||||||
(1) This asset is included in property and equipment on the condensed consolidated balance sheets | (1) This asset is included in property and equipment on the condensed consolidated balance sheets |
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
September 30, 2018 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Charge-offs | - | (84,902 | ) | - | (84,902 | ) | ||||||||||
Provision | - | (213,736 | ) | - | (213,736 | ) | ||||||||||
Ending balance - September 30, 2018 | $ | 187,129 | $ | 1,247,809 | $ | 35,220 | $ | 1,470,158 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 75,064 | $ | - | $ | 75,064 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,172,745 | $ | 35,220 | $ | 1,395,094 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 32,869,447 | $ | 79,930,807 | $ | 71,330,891 | $ | 184,131,145 | ||||||||
Ending balance: individually evaluated for impairment | $ | 195,911 | $ | 3,088,265 | $ | 1,078,529 | $ | 4,362,705 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 32,673,536 | $ | 76,842,542 | $ | 70,252,362 | $ | 179,768,440 | ||||||||
December 31, 2017 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||
Charge-offs | - | (351,357 | ) | (64,894 | ) | (416,251 | ) | |||||||||
Provision | - | 436,264 | - | 436,264 | ||||||||||||
Ending balance - December 31, 2017 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 237,560 | $ | - | $ | 237,560 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,308,887 | $ | 35,220 | $ | 1,531,236 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 54,954,865 | $ | 102,527,111 | $ | 50,157,533 | $ | 207,639,509 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 4,923,552 | $ | 461,834 | $ | 5,385,386 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 54,954,865 | $ | 97,603,559 | $ | 49,695,699 | $ | 202,254,123 |
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
September 30, 2017 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||
Charge-offs | - | (49,775 | ) | (64,894 | ) | (114,669 | ) | |||||||||
Provision | - | 417,704 | - | 417,704 | ||||||||||||
Ending balance - September 30, 2017 | $ | 187,129 | $ | 1,829,469 | $ | 35,220 | $ | 2,051,818 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 411,172 | $ | - | $ | 411,172 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,418,297 | $ | 35,220 | $ | 1,640,646 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 42,923,761 | $ | 65,759,761 | $ | 41,306,722 | $ | 149,990,244 | ||||||||
Ending balance: individually evaluated for impairment | $ | 203,806 | $ | 5,425,757 | $ | - | $ | 5,629,563 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 42,719,955 | $ | 60,334,004 | $ | 41,306,722 | $ | 144,360,681 | ||||||||
December 31, 2016 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2016 | $ | 187,129 | $ | 1,560,877 | $ | 100,114 | $ | 1,848,120 | ||||||||
Charge-offs | - | (420,135 | ) | - | (420,135 | ) | ||||||||||
Provision | - | 320,798 | - | 320,798 | ||||||||||||
Ending balance - December 31, 2016 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 374,501 | $ | - | $ | 374,501 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,087,039 | $ | 100,114 | $ | 1,374,282 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 51,536,622 | $ | 58,593,622 | $ | 40,800,117 | $ | 150,930,361 | ||||||||
Ending balance: individually evaluated for impairment | $ | 202,992 | $ | 2,916,538 | $ | 64,895 | $ | 3,184,425 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 51,333,630 | $ | 55,677,084 | $ | 40,735,222 | $ | 147,745,936 |
Age Analysis of Mortgage Loans Held for Investment | Age Analysis of Mortgage Loans Held for Investment | Age Analysis of Mortgage Loans Held for Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Process of Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Unamortized deferred loan fees, net | Net Mortgage Loans | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Process of Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Unamortized deferred loan fees, net | Net Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 513,218 | $ | - | $ | - | $ | 203,806 | $ | 717,024 | $ | 42,206,737 | $ | 42,923,761 | $ | (187,129 | ) | $ | (229,603 | ) | $ | 42,507,029 | $ | 3,745,013 | $ | - | $ | 195,911 | $ | - | $ | 3,940,924 | $ | 28,928,523 | $ | 32,869,447 | $ | (187,129 | ) | $ | (20,919 | ) | $ | 32,661,399 | ||||||||||||||||||||||||||||||||||||
Residential | 22,277 | 1,236,721 | 2,200,206 | 3,225,551 | 6,684,755 | 59,075,006 | 65,759,761 | (1,829,469 | ) | (21,578 | ) | 63,908,714 | 10,783,020 | 1,769,338 | 2,019,323 | 1,068,942 | 15,640,623 | 64,290,184 | 79,930,807 | (1,247,809 | ) | (678,985 | ) | 78,004,013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | - | - | - | 41,306,722 | 41,306,722 | (35,220 | ) | (386,554 | ) | 40,884,948 | - | - | 1,078,529 | - | 1,078,529 | 70,252,362 | 71,330,891 | (35,220 | ) | (579,561 | ) | 70,716,110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 535,495 | $ | 1,236,721 | $ | 2,200,206 | $ | 3,429,357 | $ | 7,401,779 | $ | 142,588,465 | $ | 149,990,244 | $ | (2,051,818 | ) | $ | (637,735 | ) | $ | 147,300,691 | $ | 14,528,033 | $ | 1,769,338 | $ | 3,293,763 | $ | 1,068,942 | $ | 20,660,076 | $ | 163,471,069 | $ | 184,131,145 | $ | (1,470,158 | ) | $ | (1,279,465 | ) | $ | 181,381,522 | ||||||||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 202,992 | $ | 202,992 | $ | 51,333,630 | $ | 51,536,622 | $ | (187,129 | ) | $ | (155,725 | ) | $ | 51,193,768 | $ | 1,943,495 | $ | - | $ | - | $ | - | $ | 1,943,495 | $ | 53,011,370 | $ | 54,954,865 | $ | (187,129 | ) | $ | (67,411 | ) | $ | 54,700,325 | ||||||||||||||||||||||||||||||||||||
Residential | 964,960 | 996,779 | 1,290,355 | 1,626,183 | 4,878,277 | 53,715,345 | 58,593,622 | (1,461,540 | ) | (35,121 | ) | 57,096,961 | 6,613,479 | 495,347 | 3,591,333 | 1,332,219 | 12,032,378 | 90,494,733 | 102,527,111 | (1,546,447 | ) | (1,164,130 | ) | 99,816,534 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 64,895 | - | 64,895 | 40,735,222 | 40,800,117 | (100,114 | ) | - | 40,700,003 | - | - | 461,834 | - | 461,834 | 49,695,699 | 50,157,533 | (35,220 | ) | (428,287 | ) | 49,694,026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 964,960 | $ | 996,779 | $ | 1,355,250 | $ | 1,829,175 | $ | 5,146,164 | $ | 145,784,197 | $ | 150,930,361 | $ | (1,748,783 | ) | $ | (190,846 | ) | $ | 148,990,732 | $ | 8,556,974 | $ | 495,347 | $ | 4,053,167 | $ | 1,332,219 | $ | 14,437,707 | $ | 193,201,802 | $ | 207,639,509 | $ | (1,768,796 | ) | $ | (1,659,828 | ) | $ | 204,210,885 | ||||||||||||||||||||||||||||||||||||
(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. | (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. | (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
Impaired Loans | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
September 30, 2017 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 203,806 | $ | 203,806 | $ | - | $ | 456,524 | $ | - | ||||||||||
Residential | 3,872,587 | 3,872,587 | - | 3,281,980 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,553,170 | 1,553,170 | 411,172 | 1,287,394 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | 203,806 | $ | 203,806 | $ | - | $ | 456,524 | $ | - | ||||||||||
Residential | 5,425,757 | 5,425,757 | 411,172 | 4,569,374 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
December 31, 2016 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | ||||||||||
Residential | - | - | - | - | - | |||||||||||||||
Residential construction | 64,895 | 64,895 | - | 79,082 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 2,916,538 | 2,916,538 | 374,501 | 3,001,850 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | ||||||||||
Residential | 2,916,538 | 2,916,538 | 374,501 | 3,001,850 | - | |||||||||||||||
Residential construction | 64,895 | 64,895 | - | 79,082 | - |
Impaired Loans | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
September 30, 2018 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | ||||||||||
Residential | 1,592,174 | 1,592,174 | - | 2,693,459 | - | |||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,496,091 | 1,496,091 | 75,064 | 1,615,392 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | ||||||||||
Residential | 3,088,265 | 3,088,265 | 75,064 | 4,308,851 | - | |||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | |||||||||||||||
December 31, 2017 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 3,322,552 | 3,322,552 | - | 3,290,094 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,601,000 | 1,601,000 | 237,560 | 1,350,115 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 4,923,552 | 4,923,552 | 237,560 | 4,640,209 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - |
Mortgage Loans Held for Investment Credit Exposure | Mortgage Loans Held for Investment Credit Exposure | Mortgage Loans Held for Investment Credit Exposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | Credit Risk Profile Based on Payment Activity | Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Residential | Residential Construction | Total | Commercial | Residential | Residential Construction | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 42,719,955 | $ | 51,333,630 | $ | 60,334,004 | $ | 55,677,084 | $ | 41,306,722 | $ | 40,735,222 | $ | 144,360,681 | $ | 147,745,936 | $ | 32,673,536 | $ | 54,954,865 | $ | 76,842,542 | $ | 97,603,559 | $ | 70,252,362 | $ | 49,695,699 | $ | 179,768,440 | $ | 202,254,123 | ||||||||||||||||||||||||||||||||
Non-performing | 203,806 | 202,992 | 5,425,757 | 2,916,538 | - | 64,895 | 5,629,563 | 3,184,425 | 195,911 | - | 3,088,265 | 4,923,552 | 1,078,529 | 461,834 | 4,362,705 | 5,385,386 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 42,923,761 | $ | 51,536,622 | $ | 65,759,761 | $ | 58,593,622 | $ | 41,306,722 | $ | 40,800,117 | $ | 149,990,244 | $ | 150,930,361 | $ | 32,869,447 | $ | 54,954,865 | $ | 79,930,807 | $ | 102,527,111 | $ | 71,330,891 | $ | 50,157,533 | $ | 184,131,145 | $ | 207,639,509 |
Mortgage Loans on Non-Accrual Status | ||||||||
As of September 30 2017 | As of December 31 2016 | |||||||
Commercial | $ | 203,806 | $ | 202,992 | ||||
Residential | 5,425,757 | 2,916,538 | ||||||
Residential construction | - | 64,895 | ||||||
Total | $ | 5,629,563 | $ | 3,184,425 |
Mortgage Loans on Non-Accrual Status | ||||||||
As of September 30 2018 | As of December 31 2017 | |||||||
Commercial | $ | 195,911 | $ | - | ||||
Residential | 3,088,265 | 4,923,552 | ||||||
Residential construction | 1,078,529 | 461,834 | ||||||
Total | $ | 4,166,794 | $ | 5,385,386 |
As of September 30 2017 | As of September 30, 2018 | |||||||
Aggregate fair value | $ | 166,990,187 | $ | 165,507,394 | ||||
UPB | 161,165,793 | |||||||
Unpaid principal balance | 160,124,093 | |||||||
Unrealized gain | 5,824,394 | 5,383,301 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Loan fees | $ | 15,203,107 | $ | 11,988,959 | $ | 33,291,947 | $ | 33,071,486 | $ | 7,758,284 | $ | 15,086,168 | $ | 21,347,320 | $ | 33,149,877 | ||||||||||||||||
Interest income | 2,097,249 | 2,204,286 | 5,679,868 | 6,022,796 | 1,993,895 | 2,097,249 | 4,698,899 | 5,679,868 | ||||||||||||||||||||||||
Secondary gains | 28,550,295 | 41,346,576 | 87,165,736 | 108,667,085 | 22,315,022 | 28,667,234 | 58,633,363 | 87,307,806 | ||||||||||||||||||||||||
Change in fair value of loan commitments | (4,833,268 | ) | (1,505,820 | ) | (3,677,554 | ) | 1,459,568 | 94,569 | (4,833,268 | ) | 537,696 | (3,677,554 | ) | |||||||||||||||||||
Change in fair value of loans held for sale | 1,061,917 | - | 1,061,917 | - | (203,623 | ) | 1,061,917 | 4,563,222 | 1,061,917 | |||||||||||||||||||||||
Provision for loan loss reserve | (481,727 | ) | (838,238 | ) | (1,435,180 | ) | (2,253,689 | ) | (293,443 | ) | (481,727 | ) | (946,556 | ) | (1,435,180 | ) | ||||||||||||||||
Mortgage fee income | $ | 41,597,573 | $ | 53,195,763 | $ | 122,086,734 | $ | 146,967,246 | $ | 31,664,704 | $ | 41,597,573 | $ | 88,833,944 | $ | 122,086,734 | ||||||||||||||||
(1) See Fair Value Option Election |
As of September 30 2017 | As of December 31 2016 | As of September 30 2018 | As of December 31 2017 | |||||||||||||
Balance, beginning of period | $ | 627,733 | $ | 2,805,900 | $ | 2,571,524 | $ | 627,733 | ||||||||
Provision on current loan originations (1) | 1,435,180 | 2,988,754 | 946,556 | 1,851,187 | ||||||||||||
Additional provision for loan loss reserve | - | 1,700,000 | ||||||||||||||
Charge-offs, net of recaptured amounts | 108,175 | (6,866,921 | ) | (10,061 | ) | 92,604 | ||||||||||
Balance, end of period | $ | 2,171,088 | $ | 627,733 | $ | 3,508,019 | $ | 2,571,524 | ||||||||
(1) Included in Mortgage fee income |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2017 | 880,426 | $ | 4.35 | 523,603 | $ | 5.24 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (36,133 | ) | - | |||||||||||||
Cancelled | (5,704 | ) | - | |||||||||||||
Outstanding at September 30, 2018 | 838,589 | $ | 4.48 | 523,603 | $ | 5.24 | ||||||||||
As of September 30, 2018: | ||||||||||||||||
Options exercisable | 805,902 | $ | 4.46 | 505,227 | $ | 5.26 | ||||||||||
As of September 30, 2018: | ||||||||||||||||
Available options for future grant | 421,241 | 165,638 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2018 | 6.05 years | 2.69 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2018 | 6.05 years | 2.45 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2018 (1) | $ | 867,356 | $ | 267,943 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2018 (1) | $ | 862,157 | $ | 260,592 | ||||||||||||
(1) The Company used a stock price of $5.20 as of September 30, 2018 to derive intrinsic value. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||
Outstanding at December 31, 2016 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||||||||||||
Granted | - | - | - | - | ||||||||||||||||||||||||||||
Exercised | - | (103,402 | ) | 1.31 | - | (103,402 | ) | |||||||||||||||||||||||||
Cancelled | - | (24,227 | ) | 1.31 | - | (24,227 | ) | |||||||||||||||||||||||||
Outstanding at September 30, 2017 | 741,973 | $ | 4.33 | 428,669 | $ | 5.59 | 741,973 | $ | 4.33 | 428,669 | $ | 5.59 | ||||||||||||||||||||
As of September 30, 2017: | ||||||||||||||||||||||||||||||||
Options exercisable | 706,854 | $ | 4.21 | 407,669 | $ | 5.50 | 706,854 | $ | 4.21 | 407,669 | $ | 5.50 | ||||||||||||||||||||
As of September 30, 2017: | ||||||||||||||||||||||||||||||||
Available options for future grant | 525,682 | 227,750 | 525,682 | 227,750 | ||||||||||||||||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2017 | 6.62 years | 2.63 years | 6.62 years | 2.63 years | ||||||||||||||||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2017 | 6.50 years | 2.55 years | 6.50 years | 2.55 years | ||||||||||||||||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2017 (1) | $ | 941,567 | $ | 151,012 | $ | 941,567 | $ | 151,012 | ||||||||||||||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2017 (1) | $ | 941,311 | $ | 151,012 | $ | 941,311 | $ | 151,012 | ||||||||||||||||||||||||
(1) The Company used a stock price of $5.10 as of September 30, 2017 to derive intrinsic value. | (1) The Company used a stock price of $5.10 as of September 30, 2017 to derive intrinsic value. | (1) The Company used a stock price of $5.10 as of September 30, 2017 to derive intrinsic value. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2015 | 618,261 | $ | 3.89 | 577,436 | $ | 3.54 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (32,417 | ) | 2.38 | - | ||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at September 30, 2016 | 585,844 | $ | 3.97 | 577,436 | $ | 3.54 | ||||||||||
As of September 30, 2016: | ||||||||||||||||
Options exercisable | 550,792 | $ | 3.82 | 551,186 | $ | 3.38 | ||||||||||
As of September 30, 2016: | ||||||||||||||||
Available options for future grant | 397,342 | 57,750 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2016 | 6.99 years | 2.00 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2016 | 6.86 years | 1.90 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2016 (1) | $ | 1,179,541 | $ | 1,460,167 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2016 (1) | $ | 1,179,541 | $ | 1,460,167 | ||||||||||||
(1) The Company used a stock price of $5.86 as of September 30, 2016 to derive intrinsic value. |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net earnings | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic weighted-average shares outstanding | 15,256,857 | 14,830,078 | 15,159,569 | 14,744,779 | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Employee stock options | 285,803 | 439,535 | 315,257 | 421,266 | 223,495 | 300,093 | 212,163 | 331,020 | ||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 15,542,660 | 15,269,613 | 15,474,826 | 15,166,045 | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | ||||||||||||||||||||||||
Basic net earnings per share | $ | 0.07 | $ | 0.28 | $ | 0.36 | $ | 0.80 | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | ||||||||||||||||
Diluted net earnings per share | $ | 0.07 | $ | 0.27 | $ | 0.35 | $ | 0.77 | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 28,962,288 | $ | 4,008,943 | $ | 34,251,862 | $ | - | $ | 67,223,093 | ||||||||||||||||||||||||||||||
Intersegment revenues | 1,108,093 | 106,637 | 117,746 | (1,332,476 | ) | - | ||||||||||||||||||||||||||||||||||
Segment profit before income taxes | 2,192,036 | 781,875 | (762,113 | ) | - | 2,211,798 | ||||||||||||||||||||||||||||||||||
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | - | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 25,229,759 | $ | 2,988,137 | $ | 43,753,955 | $ | - | $ | 71,971,851 | $ | 25,078,051 | $ | 2,998,809 | $ | 43,753,955 | $ | - | $ | 71,830,815 | ||||||||||||||||||||
Intersegment revenues | 3,333,593 | 116,290 | 86,580 | (3,536,463 | ) | - | 1,880,160 | 108,190 | 85,391 | (2,073,741 | ) | - | ||||||||||||||||||||||||||||
Segment profit before income taxes | 522,574 | 237,108 | 378,335 | - | 1,138,017 | 496,902 | 247,780 | 393,335 | - | 1,138,017 | ||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 24,972,397 | $ | 2,900,917 | $ | 55,075,343 | $ | - | $ | 82,948,657 | $ | 109,198,662 | $ | 13,060,357 | $ | 95,905,309 | $ | - | $ | 218,164,328 | ||||||||||||||||||||
Intersegment revenues | 3,318,369 | 107,745 | 79,164 | (3,505,278 | ) | - | 2,915,379 | 322,675 | 383,625 | (3,621,679 | ) | - | ||||||||||||||||||||||||||||
Segment profit before income taxes | 2,139,702 | 54,891 | 4,378,937 | - | 6,573,530 | 28,840,882 | 3,714,304 | (4,993,976 | ) | - | 27,561,210 | |||||||||||||||||||||||||||||
Identifiable Assets | 920,458,422 | 91,084,393 | 178,089,215 | (128,148,062 | ) | 1,061,483,968 | ||||||||||||||||||||||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||||||||||||||||||||||
Total Assets | 923,223,992 | 91,084,393 | 178,089,215 | (128,148,062 | ) | 1,064,249,538 | ||||||||||||||||||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 77,112,117 | $ | 9,907,037 | $ | 128,953,552 | $ | - | $ | 215,972,706 | $ | 77,112,117 | $ | 9,907,037 | $ | 128,953,552 | $ | - | $ | 215,972,706 | ||||||||||||||||||||
Intersegment revenues | 9,299,671 | 338,745 | 268,764 | (9,907,180 | ) | - | 4,930,266 | 314,445 | 267,575 | (5,512,286 | ) | - | ||||||||||||||||||||||||||||
Segment profit before income taxes | 4,824,654 | 1,331,896 | 1,873,536 | - | 8,030,086 | 4,779,656 | 1,331,894 | 1,918,536 | - | 8,030,086 | ||||||||||||||||||||||||||||||
Identifiable Assets | 853,298,860 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,005,138,741 | 853,298,860 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,005,138,741 | ||||||||||||||||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | 2,765,570 | - | - | 2,765,570 | |||||||||||||||||||||||||||||||
Total Assets | 856,064,430 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,007,904,311 | 856,064,430 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,007,904,311 | ||||||||||||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 70,616,968 | $ | 10,045,384 | $ | 151,829,880 | $ | - | $ | 232,492,232 | ||||||||||||||||||||||||||||||
Intersegment revenues | 9,780,803 | 616,532 | 239,503 | (10,636,838 | ) | - | ||||||||||||||||||||||||||||||||||
Segment profit before income taxes | 5,785,464 | 1,283,553 | 11,561,479 | - | 18,630,496 | |||||||||||||||||||||||||||||||||||
Identifiable Assets | 797,486,493 | 95,414,964 | 194,469,525 | (138,809,339 | ) | 948,561,643 | ||||||||||||||||||||||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||||||||||||||||||||||
Total Assets | 800,252,063 | 95,414,964 | 194,469,525 | (138,809,339 | ) | 951,327,213 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||
Common stock | $ | 5,957,488 | $ | 5,957,488 | $ | - | $ | - | ||||||||
Total equity securities available for sale | $ | 5,957,488 | $ | 5,957,488 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 166,990,187 | $ | - | $ | - | $ | 166,990,187 | ||||||||
Restricted assets (1) | 78,421 | 78,421 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 676,881 | 676,881 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 3,140,704 | - | - | 3,140,704 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 176,843,681 | $ | 6,712,790 | $ | - | $ | 170,130,891 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - bank loan interest rate swaps (3) | $ | (138 | ) | $ | - | $ | - | $ | (138 | ) | ||||||
- call options (4) | (50,452 | ) | (50,452 | ) | - | - | ||||||||||
- put options (4) | (63,637 | ) | (63,637 | ) | - | - | ||||||||||
- loan commitments (4) | (8,926 | ) | - | - | (8,926 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (123,153 | ) | $ | (114,089 | ) | $ | - | $ | (9,064 | ) | |||||
(1) Excluding cash | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheet | ||||||||||||||||
(3) Included in bank and other loans payable on the condensed consolidated balance sheet | ||||||||||||||||
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheet |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||
Common stock | $ | 5,988,918 | $ | 5,988,918 | $ | - | $ | - | ||||||||
Total equity securities | $ | 5,988,918 | $ | 5,988,918 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 165,507,394 | $ | - | $ | - | $ | 165,507,394 | ||||||||
Restricted assets (1) | 810,056 | 810,056 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 677,699 | 677,699 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 2,595,146 | - | - | 2,595,146 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 175,579,213 | $ | 7,476,673 | $ | - | $ | 168,102,540 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - call options (3) | $ | (38,020 | ) | $ | (38,020 | ) | $ | - | $ | - | ||||||
Derivatives - put options (3) | (23,393 | ) | (23,393 | ) | - | - | ||||||||||
Derivatives - loan commitments (3) | (60,861 | ) | - | - | (60,861 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (122,274 | ) | $ | (61,413 | ) | $ | - | $ | (60,861 | ) | |||||
(1) Mutual funds and equity securities | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets | ||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets |
Net Loan Commitments | Bank Loan Interest Rate Swaps | Loans Held for Sale | ||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||
Purchases | 636,022,818 | |||||||||||
Sales | (473,930,540 | ) | ||||||||||
Total gains (losses): | ||||||||||||
Included in earnings (1) | (3,677,554 | ) | - | 4,897,909 | ||||||||
Included in other comprehensive income (2) | - | 3,170 | - | |||||||||
Balance - September 30, 2017 | $ | 3,131,778 | $ | (138 | ) | $ | 166,990,187 | |||||
(1) As a component of Mortgage fee income on the condensed consolidated statement of earnings | ||||||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statement of comprehensive income |
Net Loan Commitments | Loans Held for Sale | |||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | 133,414,188 | ||||
Originations | 1,692,673,286 | |||||||
Sales | (1,719,346,884 | ) | ||||||
Transfer to mortgage loans held for investment | (139,464 | ) | ||||||
Total gains (losses): | ||||||||
Included in earnings (1) | 537,696 | 58,906,268 | ||||||
Balance - September 30, 2018 | $ | 2,534,285 | $ | 165,507,394 | ||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings |
Quoted Prices | ||||||||||||||||||||||||||||||||
in Active | Significant | Significant | ||||||||||||||||||||||||||||||
Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 5,218,392 | $ | - | $ | - | $ | 5,218,392 | $ | 1,421,028 | $ | - | $ | - | $ | 1,421,028 | ||||||||||||||||
Impaired real estate held for investment | 7,079,822 | - | - | 7,079,822 | ||||||||||||||||||||||||||||
Mortgage servicing rights additions | 4,057,974 | - | - | 4,057,974 | 1,922,230 | - | - | 1,922,230 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 9,276,366 | $ | - | $ | - | $ | 9,276,366 | $ | 10,423,080 | $ | - | $ | - | $ | 10,423,080 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||
Common stock | $ | 9,911,256 | $ | 9,911,256 | $ | - | $ | - | ||||||||
Total equity securities available for sale | $ | 9,911,256 | $ | 9,911,256 | $ | - | $ | - | ||||||||
Restricted assets (1) | $ | 736,603 | $ | 736,603 | $ | - | $ | - | ||||||||
Cemetery perpetual care trust investments (1) | 698,202 | 698,202 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 6,911,544 | - | - | 6,911,544 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 18,257,605 | $ | 11,346,061 | $ | - | $ | 6,911,544 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - bank loan interest rate swaps (3) | $ | (3,308 | ) | - | - | $ | (3,308 | ) | ||||||||
- call options (4) | (109,474 | ) | (109,474 | ) | - | - | ||||||||||
- put options (4) | (26,494 | ) | (26,494 | ) | - | - | ||||||||||
- loan commitments (4) | (102,212 | ) | - | - | (102,212 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (241,488 | ) | $ | (135,968 | ) | $ | - | $ | (105,520 | ) | |||||
(1) Excluding cash | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheet | ||||||||||||||||
(3) Included in bank and other loans payable on the condensed consolidated balance sheet | ||||||||||||||||
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheet |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||
Common stock | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | ||||||||
Total equity securities | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 133,414,188 | $ | - | $ | - | $ | 133,414,188 | ||||||||
Restricted assets (1) | 809,958 | 809,958 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 682,315 | 682,315 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 2,032,782 | - | - | 2,032,782 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 9,562,910 | $ | 7,530,128 | $ | - | $ | 2,032,782 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - call options (3) | (64,689 | ) | (64,689 | ) | - | - | ||||||||||
Derivatives - put options (3) | (20,568 | ) | (20,568 | ) | - | - | ||||||||||
Derivatives - loan commitments (3) | (36,193 | ) | - | - | (36,193 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (121,450 | ) | $ | (85,257 | ) | $ | - | $ | (36,193 | ) | |||||
(1) Mutual funds and equity securities | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets | ||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets |
Net Loan Commitments | Bank Loan Interest Rate Swaps | Loans Held for Sale | ||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||
Originations | 1,233,683,666 | |||||||||||
Sales | (1,151,031,388 | ) | ||||||||||
Total gains (losses): | ||||||||||||
Included in earnings (1) | (4,812,743 | ) | - | 50,761,910 | ||||||||
Included in other comprehensive income (2) | - | 3,308 | - | |||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | - | $ | 133,414,188 | ||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | ||||||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statements of comprehensive income |
Net Loan Commitments | Bank Loan Interest Rate Swaps | |||||||
Balance - December 31, 2015 | $ | 7,671,495 | $ | (13,947 | ) | |||
Total gains (losses): | ||||||||
Included in earnings (1) | (862,163 | ) | - | |||||
Included in other comprehensive income (2) | - | 10,639 | ||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | |||
(1) As a component of Mortgage fee income on the condensed consolidated statement of earnings | ||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statement of comprehensive income |
Quoted Prices in Active | ||||||||||||||||||||||||||||||||
Markets for | Significant | Significant | ||||||||||||||||||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||||||||||||||||||
Assets | Inputs | Inputs | Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 2,809,925 | $ | - | $ | - | $ | 2,809,925 | $ | 1,363,440 | $ | - | $ | - | $ | 1,363,440 | ||||||||||||||||
Mortgage servicing rights additions | 8,603,154 | - | - | 8,603,154 | 6,085,352 | - | - | 6,085,352 | ||||||||||||||||||||||||
Real estate held for investment | 2,347,820 | - | - | 2,347,820 | ||||||||||||||||||||||||||||
Impaired real estate held for investment | 8,500,000 | - | - | 8,500,000 | ||||||||||||||||||||||||||||
Impaired fixed maturity securities, held to maturity | 426,984 | - | 426,984 | - | ||||||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 13,760,899 | $ | - | $ | - | $ | 13,760,899 | $ | 16,375,776 | $ | - | $ | 426,984 | $ | 15,948,792 |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 230,811,272 | $ | - | $ | 243,807,562 | $ | - | $ | 243,807,562 | $ | 230,386,875 | $ | - | $ | 201,221,369 | $ | 33,002,784 | $ | 234,224,153 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 63,908,714 | - | - | 68,139,551 | 68,139,551 | 78,004,013 | - | - | 82,516,040 | 82,516,040 | ||||||||||||||||||||||||||||||
Residential construction | 40,884,948 | - | - | 40,884,948 | 40,884,948 | 70,716,110 | - | - | 70,716,110 | 70,716,110 | ||||||||||||||||||||||||||||||
Commercial | 42,507,029 | - | - | 44,223,823 | 44,223,823 | 32,661,399 | - | - | 33,475,276 | 33,475,276 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 147,300,691 | $ | - | $ | - | $ | 153,248,322 | $ | 153,248,322 | $ | 181,381,522 | $ | - | $ | - | $ | 186,707,426 | $ | 186,707,426 | ||||||||||||||||||||
Loans held for sale (at amortized costs) | 34,905,719 | - | - | 35,131,853 | 35,131,853 | |||||||||||||||||||||||||||||||||||
Policy loans | 6,677,924 | - | - | 6,677,924 | 6,677,924 | 6,389,122 | - | - | 6,389,122 | 6,389,122 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 32,198,144 | - | - | 32,198,144 | 32,198,144 | 31,119,910 | - | - | 31,119,910 | 31,119,910 | ||||||||||||||||||||||||||||||
Short-term investments | 17,830,990 | - | 17,830,990 | - | 17,830,990 | |||||||||||||||||||||||||||||||||||
Restricted assets (2) | 1,199,301 | - | 1,201,983 | - | 1,201,983 | |||||||||||||||||||||||||||||||||||
Restricted assets (3) | 1,500,000 | - | - | 1,500,000 | 1,500,000 | |||||||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 973,821 | - | 963,621 | - | 963,621 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 20,396,568 | - | - | 26,785,380 | 26,785,380 | 20,875,905 | - | - | 32,327,266 | 32,327,266 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (182,769,531 | ) | $ | - | $ | - | $ | (182,769,531 | ) | $ | (182,769,531 | ) | $ | (196,422,645 | ) | $ | - | $ | - | $ | (196,422,645 | ) | $ | (196,422,645 | ) | ||||||||||||||
Policyholder account balances (2) | (48,200,442 | ) | - | - | (37,564,692 | ) | (37,564,692 | ) | ||||||||||||||||||||||||||||||||
Future policy benefits - annuities (2) | (99,519,758 | ) | - | - | (100,851,101 | ) | (100,851,101 | ) | ||||||||||||||||||||||||||||||||
Policyholder account balances (4) | (46,706,179 | ) | - | - | (34,223,082 | ) | (34,223,082 | ) | ||||||||||||||||||||||||||||||||
Future policy benefits - annuities (4) | (98,558,234 | ) | - | - | (96,511,305 | ) | (96,511,305 | ) | ||||||||||||||||||||||||||||||||
(1) Included in policy loans and other investments on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
(2) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | |||||||||||||||||||||||||||||||||||||||
(2) Fixed maturity securities held to maturity | ||||||||||||||||||||||||||||||||||||||||
(3) Participation in mortgage loans held for investment (residential construction) | (3) Participation in mortgage loans held for investment (residential construction) | |||||||||||||||||||||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 184,979,644 | $ | - | $ | 191,850,749 | $ | - | $ | 191,850,749 | $ | 228,397,623 | $ | - | $ | 233,806,219 | $ | 7,692,190 | $ | 241,498,409 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 57,096,961 | - | - | 61,357,393 | 61,357,393 | 99,816,535 | - | - | 106,050,169 | 106,050,169 | ||||||||||||||||||||||||||||||
Residential construction | 40,700,003 | - | - | 40,700,003 | 40,700,003 | 49,694,025 | - | - | 49,694,025 | 49,694,025 | ||||||||||||||||||||||||||||||
Commercial | 51,193,768 | - | - | 53,299,800 | 53,299,800 | 54,700,325 | - | - | 56,473,156 | 56,473,156 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 148,990,732 | $ | - | $ | - | $ | 155,357,196 | $ | 155,357,196 | $ | 204,210,885 | $ | - | $ | - | $ | 212,217,350 | $ | 212,217,350 | ||||||||||||||||||||
Loans held for sale | 189,578,243 | - | - | 192,289,854 | 192,289,854 | |||||||||||||||||||||||||||||||||||
Policy loans | 6,694,148 | - | - | 6,694,148 | 6,694,148 | 6,531,352 | - | - | 6,531,352 | 6,531,352 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 32,477,246 | - | - | 32,477,246 | 32,477,246 | 35,455,098 | - | - | 35,455,098 | 35,455,098 | ||||||||||||||||||||||||||||||
Short-term investments | 27,560,040 | - | 27,560,040 | - | 27,560,040 | |||||||||||||||||||||||||||||||||||
Restricted assets (2) | 1,130,088 | - | 1,152,324 | - | 1,152,324 | |||||||||||||||||||||||||||||||||||
Restricted assets (3) | 1,701,811 | - | - | 1,796,910 | 1,796,910 | |||||||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 943,211 | - | 953,404 | - | 953,404 | |||||||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (3) | 4,128 | - | - | 4,411 | 4,411 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 18,872,362 | - | - | 25,496,832 | 25,496,832 | 21,376,937 | - | - | 27,427,174 | 27,427,174 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (152,137,371 | ) | $ | - | $ | - | $ | (152,137,371 | ) | $ | (152,137,371 | ) | $ | (157,450,925 | ) | $ | - | $ | - | $ | (157,450,925 | ) | $ | (157,450,925 | ) | ||||||||||||||
Policyholder account balances (2) | (49,421,125 | ) | - | - | (38,530,031 | ) | (38,530,031 | ) | ||||||||||||||||||||||||||||||||
Future policy benefits - annuities (2) | (99,388,662 | ) | - | - | (100,253,261 | ) | (100,253,261 | ) | ||||||||||||||||||||||||||||||||
Policyholder account balances (4) | (47,867,037 | ) | - | - | (34,557,111 | ) | (34,557,111 | ) | ||||||||||||||||||||||||||||||||
Future policy benefits - annuities (4) | (99,474,392 | ) | - | - | (98,827,107 | ) | (98,827,107 | ) | ||||||||||||||||||||||||||||||||
(1) Included in policy loans and other investments on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
(2) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | |||||||||||||||||||||||||||||||||||||||
(2) Fixed maturity securities held to maturity | ||||||||||||||||||||||||||||||||||||||||
(3) Participation in mortgage loans held for investment (commercial) | (3) Participation in mortgage loans held for investment (commercial) | |||||||||||||||||||||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Fair Values and Notional Values of Derivative Instruments | Fair Values and Notional Values of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loan commitments | Other assets and Other liabilities | $ | 147,086,043 | $ | 3,140,704 | $ | 8,926 | $ | 191,757,193 | $ | 6,911,544 | $ | 102,212 | Other assets and Other liabilities | $ | 150,947,240 | $ | 2,595,146 | $ | 60,861 | $ | 105,679,107 | $ | 2,032,782 | $ | 36,193 | |||||||||||||||||||||||||
Call options | Other liabilities | 1,473,050 | -- | 50,452 | 2,169,850 | -- | 109,474 | Other liabilities | 1,758,900 | -- | 38,020 | 1,488,550 | -- | 64,689 | |||||||||||||||||||||||||||||||||||||
Put options | Other liabilities | 2,593,300 | -- | 63,637 | 1,336,750 | -- | 26,494 | Other liabilities | 2,888,400 | -- | 23,393 | 2,265,900 | -- | 20,568 | |||||||||||||||||||||||||||||||||||||
Derivatives designated as fair value hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Bank and other loans payable | 43,940 | -- | 138 | 175,762 | -- | 3,308 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 151,196,333 | $ | 3,140,704 | $ | 123,153 | $ | 195,439,555 | $ | 6,911,544 | $ | 241,488 | $ | 155,594,540 | $ | 2,595,146 | $ | 122,274 | $ | 109,433,557 | $ | 2,032,782 | $ | 121,450 |
Net Amount Gain (Loss) | Net Amount Gain (Loss) | Net Amount Gain (Loss) | Net Amount Gain (Loss) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||
Derivative | Classification | 2017 | 2016 | 2017 | 2016 | Classification | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Interest Rate Swaps | Other comprehensive income | $ | 554 | $ | - | $ | 3,170 | $ | 5,541 | ||||||||||||||||||||||||||
Loan commitments | Mortgage fee income | $ | (4,833,268 | ) | $ | (1,505,820 | ) | $ | (3,677,554 | ) | $ | 1,459,568 | Mortgage fee income | $ | 94,569 | $ | (4,833,268 | ) | $ | 537,696 | $ | (3,677,554 | ) | ||||||||||||
Call and put options | Realized gains on investments and other assets | $ | 27,734 | $ | 73,250 | $ | 216,561 | $ | 210,522 | Gains on investments and other assets | $ | 83,612 | $ | 27,734 | $ | 313,913 | $ | 216,561 |
As of September 30 2017 | As of December 31 2016 | As of September 30 2018 | As of December 31 2017 | |||||||||||||
Amortized cost: | ||||||||||||||||
Balance before valuation allowance at beginning of year | $ | 18,872,362 | $ | 12,679,755 | $ | 21,376,937 | $ | 18,872,362 | ||||||||
MSR additions resulting from loan sales | 4,057,974 | 8,603,154 | 1,922,230 | 6,085,352 | ||||||||||||
Amortization (1) | (2,533,768 | ) | (2,410,547 | ) | (2,423,262 | ) | (3,580,777 | ) | ||||||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | - | - | ||||||||||||
Balance before valuation allowance at end of period | $ | 20,396,568 | $ | 18,872,362 | $ | 20,875,905 | $ | 21,376,937 | ||||||||
Valuation allowance for impairment of MSRs: | ||||||||||||||||
Balance at beginning of year | $ | - | $ | - | $ | - | $ | - | ||||||||
Additions | - | - | - | - | ||||||||||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | - | - | ||||||||||||
Balance at end of period | $ | - | $ | - | $ | - | $ | - | ||||||||
Mortgage servicing rights, net | $ | 20,396,568 | $ | 18,872,362 | $ | 20,875,905 | $ | 21,376,937 | ||||||||
Estimated fair value of MSRs at end of period | $ | 26,785,380 | $ | 25,496,832 | $ | 32,327,266 | $ | 27,427,174 | ||||||||
(1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings |
Estimated MSR Amortization | Estimated MSR Amortization | |||||||
2017 | $ | 162,284 | ||||||
2018 | 3,372,381 | 1,634,568 | ||||||
2019 | 3,372,381 | 4,469,364 | ||||||
2020 | 3,372,381 | 4,469,364 | ||||||
2021 | 3,372,381 | 4,469,203 | ||||||
2022 | 3,570,974 | |||||||
Thereafter | 6,744,760 | 2,262,432 | ||||||
Total | $ | 20,396,568 | $ | 20,875,905 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Contractual servicing fees | $ | 1,848,831 | $ | 1,496,365 | $ | 5,359,425 | $ | 4,024,720 | $ | 1,905,887 | $ | 1,848,831 | $ | 5,670,346 | $ | 5,359,425 | ||||||||||||||||
Late fees | 99,077 | 67,032 | 266,218 | 189,237 | 106,354 | 99,281 | 334,452 | 266,218 | ||||||||||||||||||||||||
Total | $ | 1,947,908 | $ | 1,563,397 | $ | 5,625,643 | $ | 4,213,957 | $ | 2,012,241 | $ | 1,948,112 | $ | 6,004,798 | $ | 5,625,643 |
As of September 30 2017 | As of December 31 2016 | |||||||
Servicing UPB | $ | 3,003,608,494 | $ | 2,720,441,340 |
As of September 30 2018 | As of December 31 2017 | |||||||
Servicing UPB | $ | 2,990,572,817 | $ | 2,924,868,843 |
Prepayment Speeds | Average Life (Years) | Discount Rate | ||||||||||
September 30, 2017 | 3.59 | 6.2 | 10.01 | |||||||||
December 31, 2016 | 3.77 | 6.52 | 10.01 |
Prepayment Speeds | Average Life (Years) | Discount Rate | ||||||||||
September 30, 2018 | 4.24 | % | 7.02 | 9.51 | ||||||||
December 31, 2017 | 3.67 | % | 6.34 | 10.01 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
2018 | 2018 | |||||||
Major goods/service lines | ||||||||
At-need | $ | 2,772,859 | $ | 7,973,554 | ||||
Pre-need | 873,431 | 2,456,574 | ||||||
$ | 3,646,290 | $ | 10,430,128 | |||||
Timing of Revenue Recognition | ||||||||
Goods transferred at a point in time | $ | 2,448,836 | $ | 6,934,973 | ||||
Services transferred at a point in time | 1,197,454 | 3,495,155 | ||||||
$ | 3,646,290 | $ | 10,430,128 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
2018 | 2018 | |||||||
Net mortuary and cemetery sales | $ | 3,646,290 | $ | 10,430,128 | ||||
Gains on investments and other assets | 245,448 | 2,330,701 | ||||||
Net investment income | 56,284 | 194,425 | ||||||
Other revenues | 60,921 | 105,103 | ||||||
Revenues from external customers | 4,008,943 | 13,060,357 |
Contract Balances | ||||||||||||
Receivables (1) | Contract Asset (2) | Contract Liability (2) | ||||||||||
Opening (1/1/2018) | $ | 2,742,765 | $ | 856,479 | $ | 13,729,547 | ||||||
Closing (9/30/2018) | 3,010,663 | 697,832 | 13,140,329 | |||||||||
Increase/(decrease) | 267,898 | (158,647 | ) | (589,218 | ) | |||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets | ||||||||||||
(2) The contract asset and liability are netted together in Deferred pre-need cemetery and mortuary contract revenues on the condensed consolidated balance sheets. |
Fixed maturity securities, held to maturity | $ | 43,878,084 | ||
Equity securities, available for sale | 646,335 | |||
Mortgage loans held for investment | 4,528,582 | |||
Real estate held for investment | 528,947 | |||
Policy loans | 145,953 | |||
Short-term investments | 5,358,403 | |||
Accrued investment income | 585,985 | |||
Cash and cash equivalents | 2,424,480 | |||
Receivables | 73,347 | |||
Property and equipment | 21,083 | |||
Deferred tax asset | 1,190,862 | |||
Receivable from reinsurers | 34,948 | |||
Other | 57,768 | |||
Total assets acquired | 59,474,777 | |||
Future policy benefits and unpaid claims | (52,648,838 | ) | ||
Accounts payable | (6,953 | ) | ||
Other liabilities and accrued expenses | (65,986 | ) | ||
Total liabilities assumed | (52,721,777 | ) | ||
Fair value of net assets acquired/consideration paid | $ | 6,753,000 |
Other investments - insurance assignments | $ | 2,515,783 | ||
Other - intangible asset | 890,000 | |||
Total assets acquired | 3,405,783 | |||
Fair value of net assets acquired/consideration paid | $ | 3,405,783 |
For the Nine Months Ended September 30 (unaudited) | ||||
2016 | ||||
Total revenues | $ | 234,629,101 | ||
Net earnings | $ | 11,472,978 | ||
Net earnings per Class A equivalent common share | $ | 0.78 | ||
Net earnings per Class A equivalent common share | ||||
assuming dilution | $ | 0.76 |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Insurance premiums | $ | 17,490 | $ | 17,157 | 2 | % | $ | 52,345 | $ | 47,508 | 10 | % | $ | 18,639 | $ | 17,490 | 7 | % | $ | 56,641 | $ | 52,345 | 8 | % | ||||||||||||||||||||||||
Net investment income | 8,110 | 7,828 | 4 | % | 24,831 | 22,768 | 9 | % | 9,376 | 7,974 | 18 | % | 28,574 | 24,847 | 15 | % | ||||||||||||||||||||||||||||||||
Gains on investments and other assets | 466 | (645 | ) | 172 | % | 22,786 | (623 | ) | 3757 | % | ||||||||||||||||||||||||||||||||||||||
Other | (370 | ) | (13 | ) | 2746 | % | (64 | ) | 341 | (119 | %) | 482 | 259 | 86 | % | 1,198 | 543 | 121 | % | |||||||||||||||||||||||||||||
Total | $ | 25,230 | $ | 24,972 | 1 | % | $ | 77,112 | $ | 70,617 | 9 | % | $ | 28,963 | $ | 25,078 | 15 | % | $ | 109,199 | $ | 77,112 | 42 | % | ||||||||||||||||||||||||
Intersegment revenue | $ | 3,334 | $ | 3,319 | 0 | % | $ | 9,300 | $ | 9,781 | (5 | %) | $ | 1,108 | $ | 1,880 | (41 | %) | $ | 2,915 | $ | 4,930 | (41 | %) | ||||||||||||||||||||||||
Earnings before income taxes | $ | 523 | $ | 2,139 | (76 | %) | $ | 4,825 | $ | 5,785 | (17 | %) | $ | 2,192 | $ | 497 | 341 | % | $ | 28,841 | $ | 4,780 | 503 | % |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortuary revenues | $ | 1,161 | $ | 1,059 | 10 | % | $ | 3,749 | $ | 3,711 | 1 | % | $ | 1,422 | $ | 1,168 | 22 | % | $ | 4,071 | $ | 3,735 | 9 | % | ||||||||||||||||||||||||
Cemetery revenues | 1,697 | 1,818 | (7 | %) | 6,041 | 6,186 | (2 | %) | 2,225 | 1,551 | 43 | % | 6,359 | 5,622 | 13 | % | ||||||||||||||||||||||||||||||||
Net investment income | 56 | 107 | (48 | %) | 194 | 310 | (37 | %) | ||||||||||||||||||||||||||||||||||||||||
Gains on investments and other assets | 245 | 151 | 62 | % | 2,331 | 166 | 1304 | % | ||||||||||||||||||||||||||||||||||||||||
Other | 130 | 24 | 442 | % | 117 | 148 | (21 | %) | 61 | 23 | 165 | % | 105 | 74 | 42 | % | ||||||||||||||||||||||||||||||||
Total | $ | 2,988 | $ | 2,901 | 3 | % | $ | 9,907 | $ | 10,045 | (1 | %) | $ | 4,009 | $ | 3,000 | 34 | % | $ | 13,060 | $ | 9,907 | 32 | % | ||||||||||||||||||||||||
Earnings before income taxes | $ | 237 | $ | 55 | 331 | % | $ | 1,332 | $ | 1,284 | 4 | % | $ | 782 | $ | 248 | 215 | % | $ | 3,714 | $ | 1,332 | 179 | % |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from loan originations | $ | 15,204 | $ | 13,728 | 11 | % | $ | 41,788 | $ | 43,163 | (3 | %) | $ | 9,350 | $ | 12,931 | (28 | %) | $ | 30,201 | $ | 34,778 | (13 | %) | ||||||||||||||||||||||||
Secondary gains from investors | 28,550 | 41,347 | (31 | %) | 87,166 | 108,667 | (20 | %) | 22,315 | 28,667 | (22 | %) | 58,633 | 87,308 | (33 | %) | ||||||||||||||||||||||||||||||||
Other | 2,587 | 2,156 | 20 | % | 7,071 | 6,867 | 3 | % | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 43,754 | $ | 55,075 | (21 | %) | $ | 128,954 | $ | 151,830 | (15 | %) | $ | 34,252 | $ | 43,754 | (22 | %) | $ | 95,905 | $ | 128,953 | (26 | %) | ||||||||||||||||||||||||
Earnings before income taxes | $ | 379 | $ | 4,379 | (91 | %) | $ | 1,874 | $ | 11,561 | (84 | %) | $ | (762 | ) | $ | 393 | (294 | %) | $ | (4,994 | ) | $ | 1,919 | (360 | %) |
Period | (a) Total Number of Class A Shares Purchased | (b) Average Price Paid per Class A Share | (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program | (d) Maximum Number (or Approximate Dollar Value) of Class A Shares that May Yet Be Purchased Under the Plan or Program | |||||||||||||
1/1/2017-1/31/2017 | - | - | |||||||||||||||
2/1/2017-2/28/2017 | - | - | |||||||||||||||
3/1/2017-3/31/2017 | 29,393 | (1 | ) | $ | 6.31 | ||||||||||||
4/1/2017-4/30/2017 | - | - | |||||||||||||||
5/1/2017-5/31/2017 | - | - | |||||||||||||||
6/1/2017-6/30/2017 | - | - | |||||||||||||||
7/1/2017-7/31/2017 | - | - | |||||||||||||||
8/1/2017-8/31/2017 | - | - | |||||||||||||||
9/1/2017-9/30/2017 | - | - | |||||||||||||||
Total | 29,393 | $ | 6.31 | - | - | ||||||||||||
(1) On March 29, 2017, the Company purchased 29,393 shares of its Class A common stock from Scott M. Quist, Chairman, President and Chief Executive Officer of the Company, pursuant to the Company's Stock Purchase Plan. |
Period | (a) Total Number of Class A Shares Purchased | (b) Average Price Paid per Class A Share | (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program | (d) Maximum Number (or Approximate Dollar Value) of Class A Shares that May Yet Be Purchased Under the Plan or Program | ||||||||||||
7/1/2018-7/31/2018 | - | - | - | - | ||||||||||||
8/1/2018-8/31/2018 | - | - | - | - | ||||||||||||
9/1/2018-9/30/2018 | 10,000 | $ | 5.45 | - | 290,000 | |||||||||||
Total | 10,000 | $ | 5.45 | - | 290,000 |
3.1 | |
3.2 | |
4.1 | Specimen Class A Stock Certificate (1) |
4.2 | Specimen Class C Stock Certificate (1) |
4.3 | Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1) |
7.1 | |
10.1 | Amended and Restated Employee Stock Ownership Plan (ESOP) and Trust Agreement (1) |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.6 | |
10.7 | |
10.9 | Stock Repurchase Plan |
21 | |
23.1 | |
23.2 | |
31.1 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.xml | Instance Document |
101.xsd | Taxonomy Extension Schema Document |
101.cal | Taxonomy Extension Calculation Linkbase Document |
101.def | Taxonomy Extension Definition Linkbase Document |
101.lab | Taxonomy Extension Label Linkbase Document |
101.pre | Taxonomy Extension Presentation Linkbase Document |
(1) | Incorporated by reference from Registration Statement on Form S‑1, as filed on September 29, 1987 |
(2) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on |
(3) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on |
(4) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on |
Incorporated by reference from Report on Form 10-Q, as filed on | |
(6) | Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015 |
(7) | Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016 |
Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017 | |
(9) | Incorporated by reference from Report on Form 8-K, as filed on August 4, 2017 |
(10) | Incorporated by reference from Report on Form 10-Q, as filed on August 25, 2017 |
(11) | Incorporated by reference from Form 8-K, as filed on September 6, 2018 |
Dated: November | /s/ Scott M. Quist | |
Scott M. Quist | ||
Chairman, President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: November | /s/ Garrett S. Sill | |
Garrett S. Sill | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer and Principal Accounting Officer) |