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 ( |
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 | 3-4 | |
Condensed Consolidated Statements of Earnings for the | 5 | |
Condensed Consolidated Statements of Comprehensive Income for the | 6 | |
Condensed Consolidated Statements of Stockholders' Equity as of | ||
Condensed Consolidated Statements of Cash Flows for the | ||
Notes to Condensed Consolidated Financial Statements (unaudited) | ||
Item 2. | ||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 54 |
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 2018 (Unaudited) | December 31 2017 | March 31 2019 (Unaudited) | December 31 2018 | ||||||||||||
Investments: | ||||||||||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 230,386,875 | $ | 228,397,623 | $ | 231,378,413 | $ | 232,078,723 | ||||||||
Equity securities at estimated fair value | 5,988,918 | 6,037,855 | 6,927,352 | 5,558,611 | ||||||||||||
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 | ||||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,378,215 and $1,347,972 for 2019 and 2018) | 196,344,356 | 186,465,069 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $17,213,134 and $16,739,578 for 2019 and 2018) | 121,282,747 | 121,558,222 | ||||||||||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,263,475 and $1,092,528 for 2019 and 2018) | 50,649,956 | 46,617,655 | ||||||||||||||
Accrued investment income | 3,751,942 | 3,644,077 | 3,712,606 | 3,566,146 | ||||||||||||
Total investments | 584,624,491 | 629,484,618 | 610,295,430 | 595,844,426 | ||||||||||||
Cash and cash equivalents | 137,106,471 | 45,315,661 | 130,133,196 | 142,199,942 | ||||||||||||
Loans held for sale at estimated fair value | 165,507,394 | 133,414,188 | 123,374,303 | 136,210,853 | ||||||||||||
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 | ||||||||||||||
Receivables (net of allowances for doubtful accounts of $1,538,608 and $1,519,842 for 2019 and 2018) | 8,990,449 | 8,935,343 | ||||||||||||||
Restricted assets (including $799,835 and $744,673 for 2019 and 2018 at estimated fair value) | 12,087,375 | 10,981,562 | ||||||||||||||
Cemetery perpetual care trust investments (including $543,284 and $483,353 for 2019 and 2018 at estimated fair value) | 4,080,363 | 4,335,869 | ||||||||||||||
Receivable from reinsurers | 10,717,118 | 13,394,603 | 10,852,082 | 10,820,102 | ||||||||||||
Cemetery land and improvements | 9,885,331 | 9,942,933 | 9,873,851 | 9,878,427 | ||||||||||||
Deferred policy and pre-need contract acquisition costs | 87,899,386 | 80,625,304 | 90,734,682 | 89,362,096 | ||||||||||||
Mortgage servicing rights, net | 20,875,905 | 21,376,937 | 19,049,013 | 20,016,822 | ||||||||||||
Property and equipment, net | 7,206,802 | 8,069,380 | 9,347,138 | 7,010,778 | ||||||||||||
Value of business acquired | 5,963,308 | 6,588,759 | 5,626,782 | 5,765,190 | ||||||||||||
Goodwill | 2,765,570 | 2,765,570 | 3,516,315 | 2,765,570 | ||||||||||||
Other | 6,514,889 | 4,297,048 | 17,810,980 | 6,684,143 | ||||||||||||
Total Assets | $ | 1,064,249,538 | $ | 982,173,054 | $ | 1,055,771,959 | $ | 1,050,811,123 |
September 30 2018 (Unaudited) | December 31 2017 | March 31 2019 (Unaudited) | December 31 2018 | |||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Future policy benefits and unpaid claims | $ | 616,421,261 | $ | 604,746,951 | $ | 623,507,974 | $ | 620,399,714 | ||||||||
Unearned premium reserve | 3,989,237 | 4,222,410 | 3,859,495 | 3,920,473 | ||||||||||||
Bank and other loans payable | 196,422,645 | 157,450,925 | 175,090,614 | 187,521,188 | ||||||||||||
Deferred pre-need cemetery and mortuary contract revenues | 12,442,497 | 12,873,068 | 12,650,552 | 12,508,625 | ||||||||||||
Cemetery perpetual care obligation | 3,793,575 | 3,710,740 | 3,851,164 | 3,821,979 | ||||||||||||
Accounts payable | 3,243,526 | 3,613,100 | 3,407,759 | 2,883,349 | ||||||||||||
Other liabilities and accrued expenses | 33,352,301 | 29,655,087 | 42,713,828 | 31,821,624 | ||||||||||||
Income taxes | 22,552,988 | 17,332,783 | 16,641,088 | 16,122,998 | ||||||||||||
Total liabilities | 892,218,030 | 833,605,064 | 881,722,474 | 878,999,950 | ||||||||||||
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 14,573,658 shares in 2018 and 14,535,577 shares in 2017 | 29,147,316 | 29,071,154 | ||||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 15,312,687 shares in 2019 and 15,304,798 shares in 2018 | 30,625,374 | 30,609,596 | ||||||||||||||
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 2,089,184 shares in 2018 and 2,089,374 shares in 2017 | 4,178,368 | 4,178,748 | ||||||||||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,190,361 shares in 2019 and 2,193,643 shares in 2018 | 4,380,722 | 4,387,286 | ||||||||||||||
Additional paid-in capital | 38,711,180 | 38,125,042 | 42,190,568 | 41,821,778 | ||||||||||||
Accumulated other comprehensive income, net of taxes | (687 | ) | 603,170 | (2,003 | ) | (2,823 | ) | |||||||||
Retained earnings | 100,293,129 | 77,520,951 | 97,131,281 | 95,201,732 | ||||||||||||
Treasury stock at cost - 328,650 Class A shares in 2018 and 537,203 Class A shares in 2017 | (297,798 | ) | (931,075 | ) | ||||||||||||
Treasury stock at cost - 261,384 Class A shares in 2019 and 302,541 Class A shares in 2018 | (276,457 | ) | (206,396 | ) | ||||||||||||
Total stockholders' equity | 172,031,508 | 148,567,990 | 174,049,485 | 171,811,173 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,064,249,538 | $ | 982,173,054 | $ | 1,055,771,959 | $ | 1,050,811,123 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums and other considerations | $ | 18,639,401 | $ | 17,489,560 | $ | 56,640,590 | $ | 52,345,184 | $ | 19,027,002 | $ | 18,810,358 | ||||||||||||
Net investment income | 9,641,496 | 8,220,430 | 29,457,892 | 25,559,113 | 10,041,668 | 10,074,431 | ||||||||||||||||||
Net mortuary and cemetery sales | 3,646,290 | 2,717,311 | 10,430,128 | 9,356,659 | 3,678,628 | 3,232,729 | ||||||||||||||||||
Gains on investments and other assets | 1,022,427 | (319,666 | ) | 25,371,595 | 713,066 | 1,806,661 | 22,020,939 | |||||||||||||||||
Other than temporary impairments on investments | - | (163,375 | ) | - | (481,741 | ) | ||||||||||||||||||
Mortgage fee income | 31,664,704 | 41,597,573 | 88,833,944 | 122,086,734 | 24,478,871 | 25,460,160 | ||||||||||||||||||
Other | 2,608,775 | 2,288,982 | 7,430,179 | 6,393,691 | 2,461,005 | 2,477,492 | ||||||||||||||||||
Total revenues | 67,223,093 | 71,830,815 | 218,164,328 | 215,972,706 | 61,493,835 | 82,076,109 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||
Death benefits | 8,616,285 | 8,772,153 | 27,579,540 | 26,113,770 | 10,077,903 | 9,608,098 | ||||||||||||||||||
Surrenders and other policy benefits | 692,445 | 547,648 | 2,198,479 | 2,085,296 | 865,931 | 810,128 | ||||||||||||||||||
Increase in future policy benefits | 6,686,536 | 6,735,141 | 18,420,499 | 17,669,279 | 5,751,130 | 5,584,936 | ||||||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 2,746,288 | 2,238,955 | 7,967,003 | 6,271,763 | 3,128,274 | 3,109,933 | ||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||
Commissions | 13,619,192 | 18,999,583 | 39,361,315 | 53,877,389 | 9,675,092 | 11,282,401 | ||||||||||||||||||
Personnel | 17,075,236 | 17,059,279 | 50,547,638 | 53,754,920 | 15,031,336 | 16,566,688 | ||||||||||||||||||
Advertising | 1,423,933 | 1,611,599 | 3,647,610 | 4,407,877 | 1,033,175 | 1,029,591 | ||||||||||||||||||
Rent and rent related | 1,913,813 | 2,257,259 | 5,806,296 | 6,693,292 | 1,904,288 | 1,963,350 | ||||||||||||||||||
Depreciation on property and equipment | 457,430 | 517,041 | 1,426,087 | 1,723,879 | 449,680 | 477,031 | ||||||||||||||||||
Costs related to funding mortgage loans | 1,732,617 | 2,809,471 | 5,147,557 | 7,315,227 | 1,354,925 | 1,369,281 | ||||||||||||||||||
Other | 7,616,264 | 7,035,570 | 21,562,432 | 22,227,370 | 7,645,127 | 6,810,324 | ||||||||||||||||||
Interest expense | 1,855,548 | 1,655,870 | 5,297,066 | 4,295,263 | 1,491,887 | 1,761,677 | ||||||||||||||||||
Cost of goods and services sold-mortuaries and cemeteries | 575,708 | 453,229 | 1,641,596 | 1,507,295 | 652,928 | 515,490 | ||||||||||||||||||
Total benefits and expenses | 65,011,295 | 70,692,798 | 190,603,118 | 207,942,620 | 59,061,676 | 60,888,928 | ||||||||||||||||||
Earnings before income taxes | 2,211,798 | 1,138,017 | 27,561,210 | 8,030,086 | 2,432,159 | 21,187,181 | ||||||||||||||||||
Income tax expense | (198,052 | ) | (41,179 | ) | (5,383,324 | ) | (2,587,384 | ) | (501,841 | ) | (4,261,258 | ) | ||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 1,930,318 | $ | 16,925,923 | ||||||||||||
Net earnings per Class A Equivalent common share (1) | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | $ | 0.11 | $ | 1.00 | ||||||||||||
Net earnings per Class A Equivalent common share-assuming dilution (1) | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | $ | 0.11 | $ | 0.99 | ||||||||||||
Weighted-average Class A equivalent common share outstanding (1) | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | 17,239,564 | 16,993,229 | ||||||||||||||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | 17,450,120 | 17,178,412 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 1,930,318 | $ | 16,925,923 | ||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Unrealized gains on equity securities | - | 144,381 | - | 106,543 | ||||||||||||||||||||
Unrealized gains on derivative instruments | - | 554 | - | 3,170 | ||||||||||||||||||||
Foreign currency translation adjustments | 1,013 | - | (916 | ) | - | 1,092 | - | |||||||||||||||||
Other comprehensive income, before income tax | 1,013 | 144,935 | (916 | ) | 109,713 | 1,092 | - | |||||||||||||||||
Income tax expense | (252 | ) | (50,517 | ) | 229 | (37,904 | ) | (272 | ) | - | ||||||||||||||
Other comprehensive income, net of income tax | 761 | 94,418 | (687 | ) | 71,809 | 820 | - | |||||||||||||||||
Comprehensive income | $ | 2,014,507 | $ | 1,191,256 | $ | 22,177,199 | $ | 5,514,511 | $ | 1,931,138 | $ | 16,925,923 |
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 | ||||||||||||||||||||||
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 | - | - | - | - | 2,013,746 | - | 2,013,746 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 761 | - | 761 | ||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,691 | - | - | - | 58,691 | |||||||||||||||||||||
Exercise of stock options | 8,298 | - | 7,261 | - | - | - | 15,559 | |||||||||||||||||||||
Sale of treasury stock | - | - | 168,500 | - | - | 242,954 | 411,454 | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (54,507 | ) | (54,507 | ) | |||||||||||||||||||
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 | Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | 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 | |||||||||||||||||||||||||||||||||||||||||
January 1, 2019 | $ | 30,609,596 | $ | 4,387,286 | $ | 41,821,778 | $ | (2,823 | ) | $ | 95,201,732 | $ | (206,396 | ) | $ | 171,811,173 | ||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 1,860,000 | - | 1,860,000 | - | - | - | - | 1,930,318 | - | 1,930,318 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | 21,292 | - | - | 21,292 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain | - | - | - | 820 | - | - | 820 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 101,996 | - | - | - | 101,996 | - | - | 64,704 | - | - | - | 64,704 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 8,936 | - | 8,444 | - | - | - | 17,380 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 178,002 | - | - | 146,065 | 324,067 | - | - | 295,153 | - | - | 42,343 | 337,496 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | - | - | - | - | - | (112,404 | ) | (112,404 | ) | ||||||||||||||||||||||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | 282 | (4 | ) | 489 | - | (769 | ) | - | (2 | ) | ||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | 6,560 | (6,560 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
March 31, 2017 | 27,640,156 | 3,803,248 | 35,095,594 | 286,114 | 69,265,920 | (1,410,016 | ) | 134,681,016 | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | $ | 30,625,374 | $ | 4,380,722 | $ | 42,190,568 | $ | (2,003 | ) | $ | 97,131,281 | $ | (276,457 | ) | $ | 174,049,485 | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2018 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 2,485,864 | - | 2,485,864 | - | - | - | - | 16,925,923 | - | 16,925,923 | ||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 102,429 | - | - | - | 102,429 | - | - | 58,087 | - | - | - | 58,087 | ||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 202,111 | - | - | 223,315 | 425,426 | - | - | 88,964 | - | - | 222,410 | 311,374 | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 |
Nine Months Ended September 30 | Three Months Ended March 31 | |||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (10,250,549 | ) | $ | 6,030,453 | |||||||||||
Net cash provided by operating activities | $ | 19,519,486 | $ | 8,712,560 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of fixed maturity securities | (29,074,605 | ) | (59,325,291 | ) | (928,996 | ) | (7,155,114 | ) | ||||||||
Calls and maturities of fixed maturity securities | 26,356,188 | 11,933,573 | 1,541,770 | 3,604,516 | ||||||||||||
Purchases of equity securities | (2,356,207 | ) | (5,126,062 | ) | (1,061,710 | ) | (1,084,398 | ) | ||||||||
Sales of equity securities | 2,478,051 | 9,153,786 | 355,562 | 922,402 | ||||||||||||
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 | ) | (482,975 | ) | (48,832 | ) | |||||||||
Net changes in perpetual care trusts | 1,664,215 | (195,340 | ) | 484,581 | 2,376,461 | |||||||||||
Mortgage loans, other investments and policy loans made | (376,549,887 | ) | (340,424,956 | ) | (137,912,509 | ) | (132,321,562 | ) | ||||||||
Payments received for mortgage loans, other investments and policy loans | 403,724,354 | 344,278,996 | 123,293,624 | 131,816,474 | ||||||||||||
Purchase of property and equipment | (1,020,257 | ) | (508,846 | ) | (76,403 | ) | (169,564 | ) | ||||||||
Sale of property and equipment | 2,014,704 | 9,977 | 799 | 48,314 | ||||||||||||
Purchase of real estate | (22,399,516 | ) | (12,474,490 | ) | (1,309,373 | ) | (768,942 | ) | ||||||||
Sale of real estate | 65,457,047 | 8,612,307 | 2,349,864 | 58,476,379 | ||||||||||||
Cash paid for purchase of subsidiaries, net of cash acquired | (3,405,783 | ) | - | (3,261,788 | ) | - | ||||||||||
Net cash provided by (used in) investing activities | 67,009,722 | (34,572,103 | ) | (17,007,554 | ) | 55,696,134 | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Investment contract receipts | 8,833,639 | 9,457,285 | 2,760,871 | 2,867,412 | ||||||||||||
Investment contract withdrawals | (11,667,269 | ) | (11,522,652 | ) | (3,959,861 | ) | (4,410,074 | ) | ||||||||
Proceeds from stock options exercised | 57,412 | - | 17,380 | 41,853 | ||||||||||||
Purchase of treasury stock | (54,507 | ) | (185,470 | ) | (112,404 | ) | - | |||||||||
Repayment of bank loans | (27,873,253 | ) | (2,142,382 | ) | ||||||||||||
Repayment of bank and other loans | (46,299,191 | ) | (27,369,431 | ) | ||||||||||||
Proceeds from borrowing on bank loans | 11,455,289 | 16,729,056 | 47,273,807 | 20,421,042 | ||||||||||||
Net change in warehouse line borrowings | 14,131,782 | 16,022,738 | (13,643,525 | ) | (309,286 | ) | ||||||||||
Net change in line of credit borrowings | 41,250,000 | - | - | 1,250,000 | ||||||||||||
Net cash provided by financing activities | 36,133,093 | 28,358,575 | ||||||||||||||
Net cash used in financing activities | (13,962,923 | ) | (7,508,484 | ) | ||||||||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 92,892,266 | (183,075 | ) | (11,450,991 | ) | 56,900,210 | ||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 54,501,923 | 46,942,293 | 150,936,673 | 54,501,923 | ||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 147,394,189 | $ | 46,759,218 | $ | 139,485,682 | $ | 111,402,133 | ||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||
Cash paid (received) during the year for: | ||||||||||||||||
Interest (net of amount capitalized) | $ | 5,206,262 | $ | 4,188,579 | ||||||||||||
Cash paid during the year for: | ||||||||||||||||
Interest | $ | 1,508,895 | $ | 1,674,074 | ||||||||||||
Income taxes (net of refunds) | 162,327 | (788,601 | ) | (15,975 | ) | 164 | ||||||||||
Non Cash Operating, Investing and Financing Activities: | ||||||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 11,931,889 | $ | - | ||||||||||||
Right-of-use assets obtained in exchange for finance lease liabilities | 238,335 | - | ||||||||||||||
Accrued real estate construction costs and retainage | 786,859 | 26,769 | ||||||||||||||
Mortgage loans held for investment foreclosed into real estate held for investment | 550,000 | 225,166 | ||||||||||||||
Benefit plans funded with treasury stock | $ | 1,108,583 | $ | 1,149,968 | 337,496 | 311,374 | ||||||||||
Mortgage loans foreclosed into real estate | 670,601 | 1,576,196 | ||||||||||||||
Mortgage loans held for investment foreclosed into receivables | 155,347 | - | ||||||||||||||
Transfer of loans held for sale to mortgage loans held for investment | 139,464 | 5,032,147 | - | 139,464 | ||||||||||||
Accrued real estate construction costs and retainage | 17,433 | 1,932,790 | ||||||||||||||
Nine Months Ended September 30 | Three Months Ended March 31 | |||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||
Cash and cash equivalents | $ | 137,106,471 | $ | 38,593,462 | $ | 130,133,196 | $ | 101,728,202 | ||||||||
Restricted assets | 8,717,416 | 7,263,952 | 7,751,804 | 7,468,609 | ||||||||||||
Cemetery perpetual care trust investments | 1,570,302 | 901,804 | 1,600,682 | 2,205,322 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 147,394,189 | $ | 46,759,218 | $ | 139,485,682 | $ | 111,402,133 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
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 | $ | 53,683,435 | $ | 142,299 | $ | (1,248,029 | ) | $ | 52,577,705 | |||||||
Obligations of states and political subdivisions | 6,987,405 | 40,224 | (190,262 | ) | 6,837,367 | |||||||||||
Corporate securities including public utilities | 155,372,733 | 7,544,943 | (2,299,844 | ) | 160,617,832 | |||||||||||
Mortgage-backed securities | 13,731,279 | 135,074 | (323,564 | ) | 13,542,789 | |||||||||||
Redeemable preferred stock | 612,023 | 36,437 | - | 648,460 | ||||||||||||
Total fixed maturity securities held to maturity | $ | 230,386,875 | $ | 7,898,977 | $ | (4,061,699 | ) | $ | 234,224,153 | |||||||
Equity securities at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | |||||||
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 | $ | 79,930,807 | ||||||||||||||
Residential construction | 71,330,891 | |||||||||||||||
Commercial | 32,869,447 | |||||||||||||||
Less: Unamortized deferred loan fees, net | (1,279,465 | ) | ||||||||||||||
Less: Allowance for loan losses | (1,470,158 | ) | ||||||||||||||
Total mortgage loans held for investment | $ | 181,381,522 | ||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||
Residential | $ | 26,988,179 | ||||||||||||||
Commercial | 92,088,430 | |||||||||||||||
Total real estate held for investment | $ | 119,076,609 | ||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||
Policy loans | $ | 6,389,122 | ||||||||||||||
Insurance assignments | 32,166,750 | |||||||||||||||
Federal Home Loan Bank stock | 2,308,700 | |||||||||||||||
Other investments | 4,220,893 | |||||||||||||||
Less: Allowance for doubtful accounts | (1,046,840 | ) | ||||||||||||||
Total other investments and policy loans | $ | 44,038,625 | ||||||||||||||
Accrued investment income | $ | 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, 2017: | ||||||||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 54,077,069 | $ | 211,824 | $ | (579,423 | ) | $ | 53,709,470 | $ | 52,162,274 | $ | 376,785 | $ | (456,728 | ) | $ | 52,082,331 | ||||||||||||||
Obligations of states and political subdivisions | 5,843,176 | 112,372 | (71,013 | ) | 5,884,535 | 6,131,310 | 42,653 | (55,394 | ) | 6,118,569 | ||||||||||||||||||||||
Corporate securities including public utilities | 158,350,727 | 14,336,452 | (1,007,504 | ) | 171,679,675 | 157,343,929 | 9,982,667 | (1,445,027 | ) | 165,881,569 | ||||||||||||||||||||||
Mortgage-backed securities | 9,503,016 | 210,652 | (162,131 | ) | 9,551,537 | 15,637,703 | 358,905 | (127,773 | ) | 15,868,835 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 49,748 | (191 | ) | 673,192 | 103,197 | 3,872 | 107,069 | ||||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 228,397,623 | $ | 14,921,048 | $ | (1,820,262 | ) | $ | 241,498,409 | $ | 231,378,413 | $ | 10,764,882 | $ | (2,084,922 | ) | $ | 240,058,373 | ||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,974,259 | $ | 739,022 | $ | (785,929 | ) | $ | 6,927,352 | ||||||||||||||
Total equity securities at estimated fair value | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,974,259 | $ | 739,022 | $ | (785,929 | ) | $ | 6,927,352 | ||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 102,527,111 | $ | 89,241,344 | ||||||||||||||||||||||||||||
Residential construction | 50,157,533 | 75,484,460 | ||||||||||||||||||||||||||||||
Commercial | 54,954,865 | 34,258,354 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (1,659,828 | ) | (1,261,587 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,768,796 | ) | (1,378,215 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 204,210,885 | $ | 196,344,356 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 68,329,917 | $ | 27,856,849 | ||||||||||||||||||||||||||||
Commercial | 72,968,789 | 93,425,898 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 141,298,706 | $ | 121,282,747 | ||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,531,352 | $ | 6,354,430 | ||||||||||||||||||||||||||||
Insurance assignments | 36,301,739 | 38,823,751 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 689,400 | |||||||||||||||||||||||||||||||
Federal Home Loan Bank stock (1) | 2,686,500 | |||||||||||||||||||||||||||||||
Other investments | 3,219,622 | 4,048,750 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (846,641 | ) | (1,263,475 | ) | ||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 45,895,472 | $ | 50,649,956 | ||||||||||||||||||||||||||||
Accrued investment income | $ | 3,644,077 | $ | 3,712,606 | ||||||||||||||||||||||||||||
Total investments | $ | 629,484,618 | $ | 610,295,430 | ||||||||||||||||||||||||||||
(1) Includes $806,500 of Membership stock and $1,880,000 of Activity stock due to short-term borrowings. | (1) Includes $806,500 of Membership stock and $1,880,000 of Activity stock due to short-term borrowings. |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
December 31, 2018: | ||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||
Bonds: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 52,017,683 | $ | 264,891 | $ | (727,798 | ) | $ | 51,554,776 | |||||||
Obligations of states and political subdivisions | 6,959,237 | 32,274 | (111,271 | ) | 6,880,240 | |||||||||||
Corporate securities including public utilities | 157,639,860 | 7,002,864 | (3,704,137 | ) | 160,938,587 | |||||||||||
Mortgage-backed securities | 15,358,746 | 227,398 | (308,864 | ) | 15,277,280 | |||||||||||
Redeemable preferred stock | 103,197 | 1,903 | (5,125 | ) | 99,975 | |||||||||||
Total fixed maturity securities held to maturity | $ | 232,078,723 | $ | 7,529,330 | $ | (4,857,195 | ) | $ | 234,750,858 | |||||||
Equity securities at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,312,158 | $ | 422,528 | $ | (1,176,075 | ) | $ | 5,558,611 | |||||||
Total equity securities at estimated fair value | $ | 6,312,158 | $ | 422,528 | $ | (1,176,075 | ) | $ | 5,558,611 | |||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||
Residential | $ | 89,935,600 | ||||||||||||||
Residential construction | 71,366,544 | |||||||||||||||
Commercial | 27,785,927 | |||||||||||||||
Less: Unamortized deferred loan fees, net | (1,275,030 | ) | ||||||||||||||
Less: Allowance for loan losses | (1,347,972 | ) | ||||||||||||||
Total mortgage loans held for investment | $ | 186,465,069 | ||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||
Residential | $ | 29,507,431 | ||||||||||||||
Commercial | 92,050,791 | |||||||||||||||
Total real estate held for investment | $ | 121,558,222 | ||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||
Policy loans | $ | 6,424,325 | ||||||||||||||
Insurance assignments | 35,239,396 | |||||||||||||||
Federal Home Loan Bank stock (1) | 2,548,700 | |||||||||||||||
Other investments | 3,497,762 | |||||||||||||||
Less: Allowance for doubtful accounts | (1,092,528 | ) | ||||||||||||||
Total other investments and policy loans | $ | 46,617,655 | ||||||||||||||
Accrued investment income | $ | 3,566,146 | ||||||||||||||
Total investments | $ | 595,844,426 | ||||||||||||||
(1) Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings. |
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, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
At March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 767 | $ | 495,115 | $ | 455,961 | $ | 40,408,121 | $ | 456,728 | $ | 40,903,236 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 46,178 | 2,447,348 | 144,084 | 2,644,649 | 190,262 | 5,091,997 | - | - | 55,394 | 3,032,383 | 55,394 | 3,032,383 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,738,234 | 59,982,599 | 561,610 | 8,915,794 | 2,299,844 | 68,898,393 | 392,239 | 11,641,590 | 1,052,788 | 23,415,999 | 1,445,027 | 35,057,589 | ||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 51,253 | 6,780,302 | 272,311 | 2,352,453 | 323,564 | 9,132,755 | 24,997 | 389,730 | 102,776 | 1,804,667 | 127,773 | 2,194,397 | ||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 1,939,735 | $ | 79,206,396 | $ | 2,121,961 | $ | 55,110,321 | $ | 4,061,699 | $ | 134,316,717 | $ | 418,003 | $ | 12,526,435 | $ | 1,666,919 | $ | 68,661,170 | $ | 2,084,922 | $ | 81,187,605 | ||||||||||||||||||||||||
At December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 10,519 | $ | 695,863 | $ | 717,279 | $ | 39,930,052 | $ | 727,798 | $ | 40,625,915 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 296 | 214,882 | 70,717 | 2,225,021 | 71,013 | 2,439,903 | 6,643 | 1,791,257 | 104,628 | 2,889,517 | 111,271 | 4,680,774 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 167,786 | 11,551,865 | 839,718 | 13,193,258 | 1,007,504 | 24,745,123 | 2,514,549 | 61,090,431 | 1,189,588 | 11,767,349 | 3,704,137 | 72,857,780 | ||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 56,756 | 2,516,660 | 105,375 | 1,676,494 | 162,131 | 4,193,154 | 79,896 | 1,705,296 | 228,968 | 2,690,065 | 308,864 | 4,395,361 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 191 | 11,421 | - | - | 191 | 11,421 | 5,125 | 90,000 | - | - | 5,125 | 90,000 | ||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 757,039 | $ | 65,901,527 | $ | 1,063,223 | $ | 17,738,153 | $ | 1,820,262 | $ | 83,639,680 | $ | 2,616,732 | $ | 65,372,847 | $ | 2,240,463 | $ | 57,276,983 | $ | 4,857,195 | $ | 122,649,830 |
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||
Held to Maturity: | ||||||||||||||||
Due in 1 year | $ | 2,899,715 | $ | 2,964,076 | $ | 16,752,164 | $ | 16,817,929 | ||||||||
Due in 2-5 years | 66,428,822 | 66,259,870 | 66,507,390 | 67,272,309 | ||||||||||||
Due in 5-10 years | 69,688,359 | 69,760,698 | 66,149,179 | 67,744,587 | ||||||||||||
Due in more than 10 years | 77,026,677 | 81,048,260 | 66,228,780 | 72,247,644 | ||||||||||||
Mortgage-backed securities | 13,731,279 | 13,542,789 | 15,637,703 | 15,868,835 | ||||||||||||
Redeemable preferred stock | 612,023 | 648,460 | 103,197 | 107,069 | ||||||||||||
Total held to maturity | $ | 230,386,875 | $ | 234,224,153 | $ | 231,378,413 | $ | 240,058,373 |
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 December 31, 2017 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||
Total unrealized losses | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||
Fair Value | $ | 847,718 | $ | 1,329,213 | $ | 2,176,931 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||||||||||||||
Gross realized gains | $ | 109,554 | $ | 110,529 | $ | 397,190 | $ | 163,950 | $ | 85,587 | $ | 28,133 | ||||||||||||||||
Gross realized losses | (31,670 | ) | (651,754 | ) | (601,303 | ) | (686,819 | ) | (35,393 | ) | (308,931 | ) | ||||||||||||||||
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 | ) | - | |||||||||||||||||||||||
Gains on securities sold | 11,576 | 14,650 | ||||||||||||||||||||||||||
Unrealized gains and (losses) on securities held at the end of the period | 284,192 | - | 71,143 | - | 761,208 | (372,042 | ) | |||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||
Gross realized gains | 814,471 | 225,022 | 26,060,598 | (1 | ) | 2,006,721 | 1,104,935 | 22,951,723 | (1 | ) | ||||||||||||||||||
Gross realized losses | (165,334 | ) | (29,335 | ) | (542,100 | ) | (844,672 | ) | (121,252 | ) | (292,594 | ) | ||||||||||||||||
Total | $ | 1,022,427 | $ | (483,041 | ) | $ | 25,371,595 | $ | 231,325 | $ | 1,806,661 | $ | 22,020,939 | |||||||||||||||
(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village apartments. | ||||||||||||||||||||||||||||
(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments. | (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 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Fixed maturity securities held to maturity | $ | 2,481,202 | $ | 2,692,586 | $ | 7,521,884 | $ | 7,475,156 | $ | 2,503,865 | $ | 2,529,841 | ||||||||||||
Equity securities | 64,214 | 66,320 | 176,126 | 209,517 | 77,921 | 58,292 | ||||||||||||||||||
Mortgage loans held for investment | 4,240,624 | 2,973,349 | 14,016,985 | 8,803,257 | 4,103,367 | 4,531,927 | ||||||||||||||||||
Real estate held for investment | 2,124,138 | 2,818,672 | 6,423,996 | 8,540,756 | 1,910,294 | 2,670,440 | ||||||||||||||||||
Policy loans | 85,044 | 195,098 | 296,540 | 621,854 | 88,137 | 102,866 | ||||||||||||||||||
Insurance assignments | 3,583,964 | 3,234,520 | 10,956,651 | 9,943,561 | 4,212,120 | 3,860,937 | ||||||||||||||||||
Other investments | 57,050 | 16,051 | 186,594 | 36,041 | 54,548 | 53,673 | ||||||||||||||||||
Cash and cash equivalents | 375,310 | 109,939 | 752,339 | 311,989 | 498,918 | 137,368 | ||||||||||||||||||
Gross investment income | 13,011,546 | 12,106,535 | 40,331,115 | 35,942,131 | 13,449,170 | 13,945,344 | ||||||||||||||||||
Investment expenses | (3,370,050 | ) | (3,886,105 | ) | (10,873,223 | ) | (10,383,018 | ) | (3,407,502 | ) | (3,870,913 | ) | ||||||||||||
Net investment income | $ | 9,641,496 | $ | 8,220,430 | $ | 29,457,892 | $ | 25,559,113 | $ | 10,041,668 | $ | 10,074,431 |
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 | |||||||||||||||||||
March 31 | December 31 | March 31 | December 31 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 4,000 | (1 | ) | - | - | ||||||||||
Kansas | 7,210,017 | 6,861,898 | 222,679 | 222,679 | ||||||||||||||||
Louisiana | 461,319 | 467,694 | 7,063 | 7,063 | ||||||||||||||||
Mississippi | 3,309,692 | 3,329,948 | 33,821 | 33,821 | ||||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||||
Texas | 300,000 | (2 | ) | 300,000 | (2 | ) | - | - | ||||||||||||
Utah | 82,133,870 | 81,080,251 | 502,129 | 502,129 | ||||||||||||||||
$ | 93,425,898 | $ | 92,050,791 | 765,692 | 765,692 | |||||||||||||||
___________________________ | ||||||||||||||||||||
(1) Undeveloped land | ||||||||||||||||||||
(2) Improved commercial pad |
Net Ending Balance | Net Ending Balance | |||||||||||||||
September | December 31 | March 31 | December 31 | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||
Arizona | $ | - | $ | 217,105 | ||||||||||||
California | 4,064,197 | 5,463,878 | $ | 2,256,741 | $ | 2,644,321 | ||||||||||
Florida | 6,677,953 | 7,000,684 | 6,093,133 | 6,534,277 | ||||||||||||
Hawaii | - | 712,286 | ||||||||||||||
Ohio | 10,000 | 10,000 | 10,000 | 10,000 | ||||||||||||
Oklahoma | - | 17,500 | ||||||||||||||
Tennesse | 105,260 | - | ||||||||||||||
Tennessee | 105,260 | 105,260 | ||||||||||||||
Texas | 552,615 | 509,011 | - | 139,174 | ||||||||||||
Utah | 14,951,798 | 54,113,272 | 18,915,534 | 19,598,218 | ||||||||||||
Virginia | 150,175 | - | ||||||||||||||
Washington | 476,181 | 286,181 | 476,181 | 476,181 | ||||||||||||
$ | 26,988,179 | $ | 68,329,917 | $ | 27,856,849 | $ | 29,507,431 |
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 | 21,521 | 27 | % | Life Insurance Operations | 21,521 | 27 | % | ||||||||||
121 West Election Road, Draper, UT | Mortgage Sales | 78,978 | 19 | % | Mortgage Sales | 78,978 | 19 | % | ||||||||||
(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 | (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 | |||||||||||||
March 31, 2019 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2019 | $ | 187,129 | $ | 1,125,623 | $ | 35,220 | $ | 1,347,972 | ||||||||
Charge-offs | - | (24,141 | ) | - | (24,141 | ) | ||||||||||
Provision | - | 46,402 | 7,982 | 54,384 | ||||||||||||
Ending balance - March 31, 2019 | $ | 187,129 | $ | 1,147,884 | $ | 43,202 | $ | 1,378,215 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 39,884 | $ | - | $ | 39,884 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,108,000 | $ | 43,202 | $ | 1,338,331 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 34,258,354 | $ | 89,241,344 | $ | 75,484,460 | $ | 198,984,158 | ||||||||
Ending balance: individually evaluated for impairment | $ | 851,953 | $ | 3,317,070 | $ | 502,991 | $ | 4,672,014 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 33,406,401 | $ | 85,924,274 | $ | 74,981,469 | $ | 194,312,144 | ||||||||
December 31, 2018 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Charge-offs | - | (5,725 | ) | - | (5,725 | ) | ||||||||||
Provision | - | (415,099 | ) | - | (415,099 | ) | ||||||||||
Ending balance - December 31, 2018 | $ | 187,129 | $ | 1,125,623 | $ | 35,220 | $ | 1,347,972 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 74,185 | $ | - | $ | 74,185 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,051,438 | $ | 35,220 | $ | 1,273,787 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 27,785,927 | $ | 89,935,600 | $ | 71,366,544 | $ | 189,088,071 | ||||||||
Ending balance: individually evaluated for impairment | $ | 196,182 | $ | 2,939,651 | $ | 502,991 | $ | 3,638,824 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 27,589,745 | $ | 86,995,949 | $ | 70,863,553 | $ | 185,449,247 |
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 |
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, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,745,013 | $ | - | $ | 195,911 | $ | - | $ | 3,940,924 | $ | 28,928,523 | $ | 32,869,447 | $ | (187,129 | ) | $ | (20,919 | ) | $ | 32,661,399 | $ | 3,626,950 | $ | - | $ | - | $ | 851,953 | $ | 4,478,903 | $ | 29,779,451 | $ | 34,258,354 | $ | (187,129 | ) | $ | 25,582 | $ | 34,096,807 | |||||||||||||||||||||||||||||||||||||
Residential | 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 | 9,148,810 | 2,888,568 | 2,306,154 | 1,010,916 | 15,354,448 | 73,886,896 | 89,241,344 | (1,147,884 | ) | (833,055 | ) | 87,260,405 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 1,078,529 | - | 1,078,529 | 70,252,362 | 71,330,891 | (35,220 | ) | (579,561 | ) | 70,716,110 | - | - | - | 502,991 | 502,991 | 74,981,469 | 75,484,460 | (43,202 | ) | (454,114 | ) | 74,987,144 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 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 | $ | 12,775,760 | $ | 2,888,568 | $ | 2,306,154 | $ | 2,365,860 | $ | 20,336,342 | $ | 178,647,816 | $ | 198,984,158 | $ | (1,378,215 | ) | $ | (1,261,587 | ) | $ | 196,344,356 | ||||||||||||||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,943,495 | $ | - | $ | - | $ | - | $ | 1,943,495 | $ | 53,011,370 | $ | 54,954,865 | $ | (187,129 | ) | $ | (67,411 | ) | $ | 54,700,325 | $ | 4,588,424 | $ | - | $ | 196,182 | $ | - | $ | 4,784,606 | $ | 23,001,321 | $ | 27,785,927 | $ | (187,129 | ) | $ | 32,003 | $ | 27,630,801 | |||||||||||||||||||||||||||||||||||||
Residential | 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 | 9,899,380 | 2,312,252 | 1,715,362 | 1,224,289 | 15,151,283 | 74,784,317 | 89,935,600 | (1,125,623 | ) | (862,411 | ) | 87,947,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 461,834 | - | 461,834 | 49,695,699 | 50,157,533 | (35,220 | ) | (428,287 | ) | 49,694,026 | - | - | - | 502,991 | 502,991 | 70,863,553 | 71,366,544 | (35,220 | ) | (444,622 | ) | 70,886,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 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 | $ | 14,487,804 | $ | 2,312,252 | $ | 1,911,544 | $ | 1,727,280 | $ | 20,438,880 | $ | 168,649,191 | $ | 189,088,071 | $ | (1,347,972 | ) | $ | (1,275,030 | ) | $ | 186,465,069 | ||||||||||||||||||||||||||||||||||||
(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 | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | $ | 851,953 | $ | 851,953 | $ | - | $ | 851,953 | $ | - | ||||||||||||||||||||
Residential | 1,592,174 | 1,592,174 | - | 2,693,459 | - | 2,565,738 | 2,565,738 | - | 2,565,738 | - | ||||||||||||||||||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | 502,991 | 502,991 | - | 502,991 | - | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Residential | 1,496,091 | 1,496,091 | 75,064 | 1,615,392 | - | 751,332 | 751,332 | 39,884 | 751,332 | - | ||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | $ | 851,953 | $ | 851,953 | $ | - | $ | 851,953 | $ | - | ||||||||||||||||||||
Residential | 3,088,265 | 3,088,265 | 75,064 | 4,308,851 | - | 3,317,070 | 3,317,070 | 39,884 | 3,317,070 | - | ||||||||||||||||||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | 502,991 | 502,991 | - | 502,991 | - | ||||||||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | $ | 196,182 | $ | 196,182 | $ | - | $ | 98,023 | $ | - | ||||||||||||||||||||
Residential | 3,322,552 | 3,322,552 | - | 3,290,094 | - | 1,612,164 | 1,612,164 | - | 2,423,135 | - | ||||||||||||||||||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - | 502,991 | 502,991 | - | 675,950 | - | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Residential | 1,601,000 | 1,601,000 | 237,560 | 1,350,115 | - | 1,327,487 | 1,327,487 | 74,185 | 1,543,416 | - | ||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | $ | 196,182 | $ | 196,182 | $ | - | $ | 98,023 | $ | - | ||||||||||||||||||||
Residential | 4,923,552 | 4,923,552 | 237,560 | 4,640,209 | - | 2,939,651 | 2,939,651 | 74,185 | 3,966,551 | - | ||||||||||||||||||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - | 502,991 | 502,991 | - | 675,950 | - |
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, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | March 31, 2019 | December 31, 2018 | March 31, 2019 | December 31, 2018 | March 31, 2019 | December 31, 2018 | March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 32,673,536 | $ | 54,954,865 | $ | 76,842,542 | $ | 97,603,559 | $ | 70,252,362 | $ | 49,695,699 | $ | 179,768,440 | $ | 202,254,123 | $ | 33,406,401 | $ | 27,589,745 | $ | 85,924,274 | $ | 86,995,949 | $ | 74,981,469 | $ | 70,863,553 | $ | 194,312,144 | $ | 185,449,247 | ||||||||||||||||||||||||||||||||
Non-performing | 195,911 | - | 3,088,265 | 4,923,552 | 1,078,529 | 461,834 | 4,362,705 | 5,385,386 | 851,953 | 196,182 | 3,317,070 | 2,939,651 | 502,991 | 502,991 | 4,672,014 | 3,638,824 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 32,869,447 | $ | 54,954,865 | $ | 79,930,807 | $ | 102,527,111 | $ | 71,330,891 | $ | 50,157,533 | $ | 184,131,145 | $ | 207,639,509 | $ | 34,258,354 | $ | 27,785,927 | $ | 89,241,344 | $ | 89,935,600 | $ | 75,484,460 | $ | 71,366,544 | $ | 198,984,158 | $ | 189,088,071 |
Mortgage Loans on Non-Accrual Status | Mortgage Loans on Non-Accrual Status | |||||||||||||||
As of September 30 2018 | As of December 31 2017 | As of March 31 2019 | As of December 31 2018 | |||||||||||||
Commercial | $ | 195,911 | $ | - | $ | 851,953 | $ | 196,182 | ||||||||
Residential | 3,088,265 | 4,923,552 | 3,317,070 | 2,939,651 | ||||||||||||
Residential construction | 1,078,529 | 461,834 | 502,991 | 502,991 | ||||||||||||
Total | $ | 4,166,794 | $ | 5,385,386 | $ | 3,820,061 | $ | 3,442,642 |
As of September 30, 2018 | As of March 31 2019 | As of December 31 2018 | ||||||||||
Aggregate fair value | $ | 165,507,394 | $ | 123,374,303 | $ | 136,210,853 | ||||||
Unpaid principal balance | 160,124,093 | 119,925,635 | 131,663,946 | |||||||||
Unrealized gain | 5,383,301 | 3,448,668 | 4,546,907 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Loan fees | $ | 7,758,284 | $ | 15,086,168 | $ | 21,347,320 | $ | 33,149,877 | $ | 5,741,262 | $ | 5,745,308 | ||||||||||||
Interest income | 1,993,895 | 2,097,249 | 4,698,899 | 5,679,868 | 1,214,632 | 1,116,454 | ||||||||||||||||||
Secondary gains | 22,315,022 | 28,667,234 | 58,633,363 | 87,307,806 | 16,364,771 | 15,578,495 | ||||||||||||||||||
Change in fair value of loan commitments | 94,569 | (4,833,268 | ) | 537,696 | (3,677,554 | ) | 932,527 | 440,958 | ||||||||||||||||
Change in fair value of loans held for sale | (203,623 | ) | 1,061,917 | 4,563,222 | 1,061,917 | 328,058 | 2,929,996 | |||||||||||||||||
Provision for loan loss reserve | (293,443 | ) | (481,727 | ) | (946,556 | ) | (1,435,180 | ) | (102,379 | ) | (351,051 | ) | ||||||||||||
Mortgage fee income | $ | 31,664,704 | $ | 41,597,573 | $ | 88,833,944 | $ | 122,086,734 | $ | 24,478,871 | $ | 25,460,160 | ||||||||||||
(1) See Fair Value Option Election |
As of September 30 2018 | As of December 31 2017 | As of March 31 2019 | As of December 31 2018 | |||||||||||||
Balance, beginning of period | $ | 2,571,524 | $ | 627,733 | $ | 3,604,869 | $ | 2,571,524 | ||||||||
Provision on current loan originations (1) | 946,556 | 1,851,187 | 102,379 | 1,148,334 | ||||||||||||
Charge-offs, net of recaptured amounts | (10,061 | ) | 92,604 | (3,233 | ) | (114,989 | ) | |||||||||
Balance, end of period | $ | 3,508,019 | $ | 2,571,524 | $ | 3,704,015 | $ | 3,604,869 | ||||||||
_______________________________ | ||||||||||||||||
(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 | |||||||||||||
Outstanding at December 31, 2018 | 1,011,274 | $ | 4.49 | 577,280 | $ | 5.15 | ||||||||||
Granted | 2,000 | - | ||||||||||||||
Exercised | (968 | ) | - | |||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at March 31, 2019 | 1,012,306 | $ | 4.49 | 577,280 | $ | 5.15 | ||||||||||
As of March 31, 2019: | ||||||||||||||||
Options exercisable | 898,472 | $ | 4.36 | 506,404 | $ | 5.13 | ||||||||||
As of March 31, 2019: | ||||||||||||||||
Available options for future grant | 295,128 | 146,425 | ||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2019 | 5.89 years | 3.71 years | ||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2019 | 5.71 years | 2.87 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2019 (1) | $ | 704,498 | $ | 137,424 | ||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2019 (1) | $ | 704,498 | $ | 137,424 | ||||||||||||
__________________________________ | ||||||||||||||||
(1) The Company used a stock price of $4.72 as of March 31, 2019 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, 2016 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | (103,402 | ) | |||||||||||||
Cancelled | - | (24,227 | ) | |||||||||||||
Outstanding at September 30, 2017 | 741,973 | $ | 4.33 | 428,669 | $ | 5.59 | ||||||||||
As of September 30, 2017: | ||||||||||||||||
Options exercisable | 706,854 | $ | 4.21 | 407,669 | $ | 5.50 | ||||||||||
As of September 30, 2017: | ||||||||||||||||
Available options for future grant | 525,682 | 227,750 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2017 | 6.62 years | 2.63 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2017 | 6.50 years | 2.55 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2017 (1) | $ | 941,567 | $ | 151,012 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2017 (1) | $ | 941,311 | $ | 151,012 | ||||||||||||
(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, 2017 | 880,426 | �� | $ | 4.35 | 523,603 | $ | 5.24 | |||||||||
Granted | - | - | ||||||||||||||
Exercised | (31,984 | ) | - | |||||||||||||
Cancelled | (5,704 | ) | - | |||||||||||||
Outstanding at March 31, 2018 | 842,738 | $ | 4.48 | 523,603 | $ | 5.24 | ||||||||||
As of March 31, 2018: | ||||||||||||||||
Options exercisable | 744,686 | $ | 4.40 | 468,477 | $ | 5.29 | ||||||||||
As of March 31, 2018: | ||||||||||||||||
Available options for future grant | 421,241 | 165,638 | ||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2018 | 6.55 years | 3.19 years | ||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2018 | 6.53 years | 2.43 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2018 (1) | $ | 850,528 | $ | 251,961 | ||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2018 (1) | $ | 836,882 | $ | 232,667 | ||||||||||||
_________________________________________ | ||||||||||||||||
(1) The Company used a stock price of $5.15 as of March 31, 2018 to derive intrinsic value. |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 1,930,318 | $ | 16,925,923 | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Basic weighted-average shares outstanding | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | 17,239,564 | 16,993,229 | ||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||
Employee stock options | 223,495 | 300,093 | 212,163 | 331,020 | 210,556 | 185,183 | ||||||||||||||||||
Diluted weighted-average shares outstanding | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | 17,450,120 | 17,178,412 | ||||||||||||||||||
Basic net earnings per share | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | $ | 0.11 | $ | 1.00 | ||||||||||||
Diluted net earnings per share | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | $ | 0.11 | $ | 0.99 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||
Revenues from external customers | $ | 30,505,368 | $ | 4,359,285 | $ | 26,629,182 | $ | - | $ | 61,493,835 | ||||||||||
Intersegment revenues | 895,372 | 116,651 | 126,358 | (1,138,381 | ) | - | ||||||||||||||
Segment profit before income taxes | 2,085,341 | 1,184,865 | (838,047 | ) | - | 2,432,159 | ||||||||||||||
- | ||||||||||||||||||||
Identifiable Assets | 935,021,695 | 87,087,362 | 155,695,585 | (125,548,998 | ) | 1,052,255,644 | ||||||||||||||
Goodwill | 2,765,570 | 750,745 | - | - | 3,516,315 | |||||||||||||||
Total Assets | 937,787,265 | 87,838,107 | 155,695,585 | (125,548,998 | ) | 1,055,771,959 | ||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 50,860,529 | $ | 3,775,745 | $ | 27,439,835 | $ | - | $ | 82,076,109 | ||||||||||
Intersegment revenues | 819,292 | 109,017 | 133,370 | (1,061,679 | ) | - | ||||||||||||||
Segment profit before income taxes | 23,711,809 | 860,763 | (3,385,391 | ) | - | 21,187,181 | ||||||||||||||
Identifiable Assets | 873,263,596 | 92,747,811 | 163,896,491 | (134,701,132 | ) | 995,206,766 | ||||||||||||||
Goodwill | 2,765,570 | - | - | 2,765,570 | ||||||||||||||||
Total Assets | 876,029,166 | 92,747,811 | 163,896,491 | (134,701,132 | ) | 997,972,336 |
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 | ||||||||||||||
- | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 25,078,051 | $ | 2,998,809 | $ | 43,753,955 | $ | - | $ | 71,830,815 | ||||||||||
Intersegment revenues | 1,880,160 | 108,190 | 85,391 | (2,073,741 | ) | - | ||||||||||||||
Segment profit before income taxes | 496,902 | 247,780 | 393,335 | - | 1,138,017 | |||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 109,198,662 | $ | 13,060,357 | $ | 95,905,309 | $ | - | $ | 218,164,328 | ||||||||||
Intersegment revenues | 2,915,379 | 322,675 | 383,625 | (3,621,679 | ) | - | ||||||||||||||
Segment profit before income taxes | 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 | ||||||||||
Intersegment revenues | 4,930,266 | 314,445 | 267,575 | (5,512,286 | ) | - | ||||||||||||||
Segment profit before income taxes | 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 | ||||||||||||||
Goodwill | 2,765,570 | - | - | 2,765,570 | ||||||||||||||||
Total Assets | 856,064,430 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,007,904,311 |
a) | Quoted prices for similar assets or liabilities in active markets; |
b) | Quoted prices for identical or similar assets or liabilities in non-active markets; or |
c) | Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. |
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 | $ | 6,927,352 | $ | 6,927,352 | $ | - | $ | - | ||||||||
Total equity securities | $ | 6,927,352 | $ | 6,927,352 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 123,374,303 | $ | - | $ | - | $ | 123,374,303 | ||||||||
Restricted assets (1) | 799,835 | 799,835 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 543,284 | 543,284 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 2,849,706 | - | - | 2,849,706 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 134,494,480 | $ | 8,270,471 | $ | - | $ | 126,224,009 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - call options (3) | $ | (50,305 | ) | $ | (50,305 | ) | $ | - | $ | - | ||||||
Derivatives - put options (3) | (89,733 | ) | (89,733 | ) | - | - | ||||||||||
Derivatives - loan commitments (3) | (325,363 | ) | - | - | (325,363 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (465,401 | ) | $ | (140,038 | ) | $ | - | $ | (325,363 | ) | |||||
_______________________________________________ | ||||||||||||||||
(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 |
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 | Loans Held for Sale | Net Loan Commitments | Loans Held for Sale | |||||||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | 133,414,188 | ||||||||||||
Balance - December 31, 2018 | $ | 1,591,816 | $ | 136,210,853 | ||||||||||||
Originations | 1,692,673,286 | 428,500,921 | ||||||||||||||
Sales | (1,719,346,884 | ) | (456,552,964 | ) | ||||||||||||
Transfer to mortgage loans held for investment | (139,464 | ) | ||||||||||||||
Total gains (losses): | ||||||||||||||||
Included in earnings (1) | 537,696 | 58,906,268 | 932,527 | 15,215,493 | ||||||||||||
Balance - September 30, 2018 | $ | 2,534,285 | $ | 165,507,394 | ||||||||||||
Balance - March 31, 2019 | $ | 2,524,343 | $ | 123,374,303 | ||||||||||||
________________________________________ | ||||||||||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings |
Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | Quoted Prices in Active Markets for Identical 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 | $ | 1,421,028 | $ | - | $ | - | $ | 1,421,028 | $ | 711,448 | $ | - | $ | - | $ | 711,448 | ||||||||||||||||
Impaired real estate held for investment | 7,079,822 | - | - | 7,079,822 | ||||||||||||||||||||||||||||
Mortgage servicing rights additions | 1,922,230 | - | - | 1,922,230 | ||||||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 10,423,080 | $ | - | $ | - | $ | 10,423,080 | $ | 711,448 | $ | - | $ | - | $ | 711,448 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | 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 | $ | - | $ | - | $ | 5,558,611 | $ | 5,558,611 | $ | - | $ | - | ||||||||||||||||
Total equity securities | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | $ | 5,558,611 | $ | 5,558,611 | $ | - | $ | - | ||||||||||||||||
Loans held for sale | $ | 133,414,188 | $ | - | $ | - | $ | 133,414,188 | $ | 136,210,853 | $ | - | $ | - | $ | 136,210,853 | ||||||||||||||||
Restricted assets (1) | 809,958 | 809,958 | - | - | 744,673 | 744,673 | - | - | ||||||||||||||||||||||||
Cemetery perpetual care trust investments (1) | 682,315 | 682,315 | - | - | 483,353 | 483,353 | - | - | ||||||||||||||||||||||||
Derivatives - loan commitments (2) | 2,032,782 | - | - | 2,032,782 | 1,969,967 | - | - | 1,969,967 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 9,562,910 | $ | 7,530,128 | $ | - | $ | 2,032,782 | $ | 8,756,604 | $ | 6,786,637 | $ | - | $ | 1,969,967 | ||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||||||
Derivatives - call options (3) | (64,689 | ) | (64,689 | ) | - | - | (4,629 | ) | (4,629 | ) | - | - | ||||||||||||||||||||
Derivatives - put options (3) | (20,568 | ) | (20,568 | ) | - | - | (296,053 | ) | (296,053 | ) | - | - | ||||||||||||||||||||
Derivatives - loan commitments (3) | (36,193 | ) | - | - | (36,193 | ) | (378,151 | ) | - | - | (378,151 | ) | ||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (121,450 | ) | $ | (85,257 | ) | $ | - | $ | (36,193 | ) | $ | (678,833 | ) | $ | (300,682 | ) | $ | - | $ | (378,151 | ) | ||||||||||
_________________________________ | ||||||||||||||||||||||||||||||||
(1) Mutual funds and equity securities | ||||||||||||||||||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets | (2) Included in other assets on the condensed consolidated balance sheets | (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 | (3) Included in other liabilities and accrued expenses 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 | Net Loan Commitments | Loans Held for Sale | ||||||||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | 133,414,188 | ||||||||||||||||
Originations | 1,233,683,666 | 2,194,607,543 | ||||||||||||||||||
Sales | (1,151,031,388 | ) | (2,259,145,473 | ) | ||||||||||||||||
Transfer to mortgage loans held for investment | (10,827,797 | ) | ||||||||||||||||||
Total gains (losses): | ||||||||||||||||||||
Included in earnings (1) | (4,812,743 | ) | - | 50,761,910 | (404,773 | ) | 78,162,392 | |||||||||||||
Included in other comprehensive income (2) | - | 3,308 | - | |||||||||||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | - | $ | 133,414,188 | ||||||||||||||
Balance - December 31, 2018 | $ | 1,591,816 | $ | 136,210,853 | ||||||||||||||||
__________________________________ | ||||||||||||||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (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 |
Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | Quoted Prices in Active Markets for Identical Assets | Significant Observable | Significant Unobservable Inputs | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Assets accounted for at fair value on a | ||||||||||||||||||||||||||||||||
nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 1,363,440 | $ | - | $ | - | $ | 1,363,440 | $ | 1,253,302 | $ | - | $ | - | $ | 1,253,302 | ||||||||||||||||
Mortgage servicing rights additions | 6,085,352 | - | - | 6,085,352 | ||||||||||||||||||||||||||||
Impaired real estate held for investment | 8,500,000 | - | - | 8,500,000 | 1,611,384 | - | - | 1,611,384 | ||||||||||||||||||||||||
Impaired fixed maturity securities, held to maturity | 426,984 | - | 426,984 | - | ||||||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 16,375,776 | $ | - | $ | 426,984 | $ | 15,948,792 | $ | 2,864,686 | $ | - | $ | - | $ | 2,864,686 |
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 | $ | 230,386,875 | $ | - | $ | 201,221,369 | $ | 33,002,784 | $ | 234,224,153 | $ | 231,378,413 | $ | - | $ | 235,280,653 | $ | 4,777,720 | $ | 240,058,373 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 78,004,013 | - | - | 82,516,040 | 82,516,040 | 87,260,405 | - | - | 91,648,513 | 91,648,513 | ||||||||||||||||||||||||||||||
Residential construction | 70,716,110 | - | - | 70,716,110 | 70,716,110 | 74,987,143 | - | - | 74,987,143 | 74,987,143 | ||||||||||||||||||||||||||||||
Commercial | 32,661,399 | - | - | 33,475,276 | 33,475,276 | 34,096,808 | - | - | 34,884,705 | 34,884,705 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 181,381,522 | $ | - | $ | - | $ | 186,707,426 | $ | 186,707,426 | $ | 196,344,356 | $ | - | $ | - | $ | 201,520,361 | $ | 201,520,361 | ||||||||||||||||||||
Policy loans | 6,389,122 | - | - | 6,389,122 | 6,389,122 | 6,354,430 | - | - | 6,354,430 | 6,354,430 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 31,119,910 | - | - | 31,119,910 | 31,119,910 | 37,560,276 | - | - | 37,560,276 | 37,560,276 | ||||||||||||||||||||||||||||||
Restricted assets (2) | 1,199,301 | - | 1,201,983 | - | 1,201,983 | 1,262,819 | - | 1,279,342 | - | 1,279,342 | ||||||||||||||||||||||||||||||
Restricted assets (3) | 1,500,000 | - | - | 1,500,000 | 1,500,000 | 1,964,168 | - | - | 1,969,979 | 1,969,979 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 973,821 | - | 963,621 | - | 963,621 | 999,907 | - | 1,010,578 | - | 1,010,578 | ||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 20,875,905 | - | - | 32,327,266 | 32,327,266 | 19,049,013 | - | - | 26,133,155 | 26,133,155 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (196,422,645 | ) | $ | - | $ | - | $ | (196,422,645 | ) | $ | (196,422,645 | ) | $ | (175,090,614 | ) | $ | - | $ | - | $ | (175,090,614 | ) | $ | (175,090,614 | ) | ||||||||||||||
Policyholder account balances (4) | (46,706,179 | ) | - | - | (34,223,082 | ) | (34,223,082 | ) | (46,019,974 | ) | - | - | (36,999,896 | ) | (36,999,896 | ) | ||||||||||||||||||||||||
Future policy benefits - annuities (4) | (98,558,234 | ) | - | - | (96,511,305 | ) | (96,511,305 | ) | (97,583,996 | ) | - | - | (97,207,710 | ) | (97,207,710 | ) | ||||||||||||||||||||||||
______________________________ | ______________________________ | |||||||||||||||||||||||||||||||||||||||
(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. | (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) Mortgage loans held for investment | ||||||||||||||||||||||||||||||||||||||||
(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. | (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 Estimate Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 228,397,623 | $ | - | $ | 233,806,219 | $ | 7,692,190 | $ | 241,498,409 | $ | 232,078,723 | $ | - | $ | 229,668,844 | $ | 5,082,014 | $ | 234,750,858 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 99,816,535 | - | - | 106,050,169 | 106,050,169 | 87,947,566 | - | - | 92,503,553 | 92,503,553 | ||||||||||||||||||||||||||||||
Residential construction | 49,694,025 | - | - | 49,694,025 | 49,694,025 | 70,886,702 | - | - | 70,886,702 | 70,886,702 | ||||||||||||||||||||||||||||||
Commercial | 54,700,325 | - | - | 56,473,156 | 56,473,156 | 27,630,801 | - | - | 28,359,205 | 28,359,205 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 204,210,885 | $ | - | $ | - | $ | 212,217,350 | $ | 212,217,350 | $ | 186,465,069 | $ | - | $ | - | $ | 191,749,460 | $ | 191,749,460 | ||||||||||||||||||||
Policy loans | 6,531,352 | - | - | 6,531,352 | 6,531,352 | 6,424,325 | - | - | 6,424,325 | 6,424,325 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 35,455,098 | - | - | 35,455,098 | 35,455,098 | 34,146,868 | - | - | 34,146,868 | 34,146,868 | ||||||||||||||||||||||||||||||
Restricted assets (2) | 1,130,088 | - | 1,152,324 | - | 1,152,324 | 1,258,397 | - | 1,271,687 | - | 1,271,687 | ||||||||||||||||||||||||||||||
Restricted assets (3) | 1,701,811 | - | - | 1,796,910 | 1,796,910 | 1,799,268 | - | - | 1,810,185 | 1,810,185 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 943,211 | - | 953,404 | - | 953,404 | 990,390 | - | 983,410 | - | 983,410 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (3) | 4,128 | - | - | 4,411 | 4,411 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 21,376,937 | - | - | 27,427,174 | 27,427,174 | 20,016,822 | - | - | 28,885,316 | 28,885,316 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (157,450,925 | ) | $ | - | $ | - | $ | (157,450,925 | ) | $ | (157,450,925 | ) | $ | (187,521,188 | ) | $ | - | $ | - | $ | (187,521,188 | ) | $ | (187,521,188 | ) | ||||||||||||||
Policyholder account balances (4) | (47,867,037 | ) | - | - | (34,557,111 | ) | (34,557,111 | ) | (46,479,853 | ) | - | - | (37,348,289 | ) | (37,348,289 | ) | ||||||||||||||||||||||||
Future policy benefits - annuities (4) | (99,474,392 | ) | - | - | (98,827,107 | ) | (98,827,107 | ) | (98,137,615 | ) | - | - | (97,641,146 | ) | (97,641,146 | ) | ||||||||||||||||||||||||
______________________________ | ||||||||||||||||||||||||||||||||||||||||
(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. | (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) | (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. | (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, 2018 | December 31, 2017 | March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | 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 | $ | 150,947,240 | $ | 2,595,146 | $ | 60,861 | $ | 105,679,107 | $ | 2,032,782 | $ | 36,193 | Other assets and Other liabilities | $ | 179,148,085 | $ | 2,849,706 | $ | 325,363 | $ | 93,758,218 | $ | 1,969,967 | $ | 378,151 | ||||||||||||||||||||||||
Call options | Other liabilities | 1,758,900 | -- | 38,020 | 1,488,550 | -- | 64,689 | Other liabilities | 1,881,800 | -- | 50,305 | 805,500 | -- | 4,629 | ||||||||||||||||||||||||||||||||||||
Put options | Other liabilities | 2,888,400 | -- | 23,393 | 2,265,900 | -- | 20,568 | Other liabilities | 3,218,200 | -- | 89,733 | 4,861,700 | -- | 296,053 | ||||||||||||||||||||||||||||||||||||
Total | $ | 155,594,540 | $ | 2,595,146 | $ | 122,274 | $ | 109,433,557 | $ | 2,032,782 | $ | 121,450 | $ | 184,248,085 | $ | 2,849,706 | $ | 465,401 | $ | 99,425,418 | $ | 1,969,967 | $ | 678,833 |
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 March 31 | ||||||||||||||||||||||||
Derivative | Classification | 2018 | 2017 | 2018 | 2017 | Classification | 2019 | 2018 | ||||||||||||||||||
Loan commitments | Mortgage fee income | $ | 94,569 | $ | (4,833,268 | ) | $ | 537,696 | $ | (3,677,554 | ) | Mortgage fee income | $ | 932,527 | $ | 440,958 | ||||||||||
Call and put options | Gains on investments and other assets | $ | 83,612 | $ | 27,734 | $ | 313,913 | $ | 216,561 | Gains on investments and other assets | $ | 290,028 | $ | 79,171 |
As of March 31 2019 | As of December 31 2018 | |||||||
Amortized cost: | ||||||||
Balance before valuation allowance at beginning of year | $ | 20,016,822 | $ | 21,376,937 | ||||
MSR additions resulting from loan sales | 275,533 | 3,922,816 | ||||||
Amortization (1) | (1,243,342 | ) | (5,282,931 | ) | ||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | ||||||
Balance before valuation allowance at end of period | $ | 19,049,013 | $ | 20,016,822 | ||||
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 | $ | 19,049,013 | $ | 20,016,822 | ||||
Estimated fair value of MSRs at end of period | $ | 26,133,155 | $ | 28,885,316 | ||||
_________________________ | ||||||||
(1) Included in other expenses on the condensed consolidated statements of earnings |
As of September 30 2018 | As of December 31 2017 | |||||||
Amortized cost: | ||||||||
Balance before valuation allowance at beginning of year | $ | 21,376,937 | $ | 18,872,362 | ||||
MSR additions resulting from loan sales | 1,922,230 | 6,085,352 | ||||||
Amortization (1) | (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 | $ | 20,875,905 | $ | 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 | $ | 20,875,905 | $ | 21,376,937 | ||||
Estimated fair value of MSRs at end of period | $ | 32,327,266 | $ | 27,427,174 | ||||
(1) Included in other expenses on the condensed consolidated statements of earnings |
Estimated MSR Amortization | Estimated MSR Amortization | |||||||
2018 | 1,634,568 | |||||||
2019 | 4,469,364 | 2,117,384 | ||||||
2020 | 4,469,364 | 2,437,671 | ||||||
2021 | 4,469,203 | 2,103,851 | ||||||
2022 | 3,570,974 | 1,802,199 | ||||||
2023 | 1,551,340 | |||||||
Thereafter | 2,262,432 | 9,036,568 | ||||||
Total | $ | 20,875,905 | $ | 19,049,013 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||
Contractual servicing fees | $ | 1,905,887 | $ | 1,848,831 | $ | 5,670,346 | $ | 5,359,425 | $ | 1,858,599 | $ | 1,876,883 | ||||||||||||
Late fees | 106,354 | 99,281 | 334,452 | 266,218 | 87,291 | 111,748 | ||||||||||||||||||
Total | $ | 2,012,241 | $ | 1,948,112 | $ | 6,004,798 | $ | 5,625,643 | $ | 1,945,890 | $ | 1,988,631 |
As of March 31 2019 | As of December 31 2018 | |||||||
Servicing UPB | $ | 2,902,805,249 | $ | 2,941,231,563 |
Prepayment Speeds | Average Life (Years) | Discount Rate | ||||||||||
March 31, 2019 | 3.54 | % | 5.8 | 9.51 | ||||||||
December 31, 2018 | 3.86 | % | 6.33 | 9.51 |
Contract Balances | ||||||||||||
Receivables (1) | Contract Asset | Contract Liability | ||||||||||
Opening (1/1/2019) | $ | 2,816,225 | $ | - | $ | 12,508,625 | ||||||
Closing (3/31/2019) | 2,913,958 | - | 12,650,552 | |||||||||
Increase/(decrease) | 97,733 | - | 141,927 | |||||||||
_______________________ | ||||||||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets |
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, 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 | Three Months Ended March 31 | ||||||||||||||
2018 | 2018 | 2019 | 2018 | |||||||||||||
Major goods/service lines | ||||||||||||||||
At-need | $ | 2,772,859 | $ | 7,973,554 | $ | 2,969,067 | $ | 2,737,625 | ||||||||
Pre-need | 873,431 | 2,456,574 | 709,561 | 495,104 | ||||||||||||
$ | 3,646,290 | $ | 10,430,128 | $ | 3,678,628 | $ | 3,232,729 | |||||||||
Timing of Revenue Recognition | ||||||||||||||||
Goods transferred at a point in time | $ | 2,448,836 | $ | 6,934,973 | $ | 2,390,609 | $ | 2,072,481 | ||||||||
Services transferred at a point in time | 1,197,454 | 3,495,155 | 1,288,019 | 1,160,248 | ||||||||||||
$ | 3,646,290 | $ | 10,430,128 | $ | 3,678,628 | $ | 3,232,729 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended March 31 | ||||||||||||||
2018 | 2018 | 2019 | 2018 | |||||||||||||
Net mortuary and cemetery sales | $ | 3,646,290 | $ | 10,430,128 | $ | 3,678,628 | $ | 3,232,729 | ||||||||
Gains on investments and other assets | 245,448 | 2,330,701 | 498,597 | 409,088 | ||||||||||||
Net investment income | 56,284 | 194,425 | 112,809 | 88,078 | ||||||||||||
Other revenues | 60,921 | 105,103 | 69,251 | 45,850 | ||||||||||||
Revenues from external customers | 4,008,943 | 13,060,357 | 4,359,285 | 3,775,745 |
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. |
Cash | $ | 53,859 | ||
Property and equipment | 2,475,526 | |||
Receivables | 13,620 | |||
Goodwill | 750,745 | |||
Other | 25,073 | |||
Total assets acquired | 3,318,823 | |||
Bank and other loans payable | (3,176 | ) | ||
Total liabilities assumed | (3,176 | ) | ||
Fair value of net assets acquired/consideration paid | $ | 3,315,647 |
Other investments - insurance assignments | $ | 2,515,783 | $ | 2,515,783 | ||||
Other - intangible asset | 890,000 | |||||||
Other - customer list intangible asset | 890,000 | |||||||
Total assets acquired | 3,405,783 | 3,405,783 | ||||||
Fair value of net assets acquired/consideration paid | $ | 3,405,783 | $ | 3,405,783 |
Three Months Ended March 31 | ||||
2019 | ||||
Lease Cost | ||||
Finance lease cost: | ||||
Amortization of right-of-use assets (1) | $ | 32,835 | ||
Interest on lease liabilities (2) | 1,873 | |||
Operating lease cost (3) | 1,532,256 | |||
Short-term lease cost (3)(4) | 40,676 | |||
Variable lease cost | - | |||
Sublease income (3) | (167,071 | ) | ||
Total lease cost | $ | 1,440,569 | ||
Other Information | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 1,472,852 | ||
Operating cash flows from finance leases | 1,873 | |||
Financing cash flows from finance leases | 32,290 | |||
Right-of-use assets obtained in exchange for lease liabilities: | ||||
Operating leases | $ | 11,931,889 | ||
Finance leases | 238,336 | |||
Weighted-average remaining lease term (in years) | ||||
Finance leases | 3.30 | |||
Operating leases | 4.53 | |||
Weighted-average discount rate | ||||
Finance leases | 5.14 | % | ||
Operating leases | 4.88 | % | ||
________________________________ | ||||
(1) Included in Depreciation on property and equipment on the condensed consolidated statements of earnings | ||||
(2) Included in Interest expense on the condensed consolidated statements of earnings | ||||
(3) Included in Rent and rent related expenses on the condensed consolidated statements of earnings | ||||
(4) Includes leases with a term of 12 months or less |
Maturity Analysis of Lease Liabilities | ||||||||
Finance Leases | Operating Leases | |||||||
Lease payments due in: | ||||||||
Remainder of 2019 | $ | 71,007 | $ | 3,978,317 | ||||
2020 | 62,357 | 3,401,717 | ||||||
2021 | 41,235 | 1,841,369 | ||||||
2022 | 27,474 | 806,858 | ||||||
2023 | 22,566 | 686,698 | ||||||
Thereafter | 1,156 | 2,339,369 | ||||||
Total undiscounted lease payments | 225,795 | 13,054,328 | ||||||
Less: Discount on cash flows | (19,749 | ) | (2,504,322 | ) | ||||
Present value of lease liabilities | 206,046 | 10,550,006 |
Balance Sheet Location | As of March 31 2019 | ||||
Operating Leases | |||||
Right-of-use assets | Other assets | $ | 10,494,641 | ||
Lease liabilities | Other liabilities and accrued expenses | $ | 10,550,006 | ||
Finance Leases | |||||
Right-of-use assets | $ | 238,336 | |||
Accumulated amortization | (32,835 | ) | |||
Right-of-use assets, net | Property and equipment, net | $ | 205,501 | ||
Lease liabilities | Bank and other loans payable | $ | 206,046 |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended March 31 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Insurance premiums | $ | 18,639 | $ | 17,490 | 7 | % | $ | 56,641 | $ | 52,345 | 8 | % | $ | 19,027 | $ | 18,810 | 1 | % | ||||||||||||||||||
Net investment income | 9,376 | 7,974 | 18 | % | 28,574 | 24,847 | 15 | % | 9,753 | 9,778 | 0 | % | ||||||||||||||||||||||||
Gains on investments and other assets | 466 | (645 | ) | 172 | % | 22,786 | (623 | ) | 3757 | % | 1,343 | 21,860 | (94 | %) | ||||||||||||||||||||||
Other | 482 | 259 | 86 | % | 1,198 | 543 | 121 | % | 382 | 412 | (7 | %) | ||||||||||||||||||||||||
Total | $ | 28,963 | $ | 25,078 | 15 | % | $ | 109,199 | $ | 77,112 | 42 | % | $ | 30,505 | $ | 50,860 | (40 | %) | ||||||||||||||||||
Intersegment revenue | $ | 1,108 | $ | 1,880 | (41 | %) | $ | 2,915 | $ | 4,930 | (41 | %) | $ | 895 | $ | 819 | 9 | % | ||||||||||||||||||
Earnings before income taxes | $ | 2,192 | $ | 497 | 341 | % | $ | 28,841 | $ | 4,780 | 503 | % | $ | 2,085 | $ | 23,712 | (91 | %) |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended March 31 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Mortuary revenues | $ | 1,422 | $ | 1,168 | 22 | % | $ | 4,071 | $ | 3,735 | 9 | % | $ | 1,633 | $ | 1,391 | 17 | % | ||||||||||||||||||
Cemetery revenues | 2,225 | 1,551 | 43 | % | 6,359 | 5,622 | 13 | % | 2,046 | 1,842 | 11 | % | ||||||||||||||||||||||||
Net investment income | 56 | 107 | (48 | %) | 194 | 310 | (37 | %) | 113 | 88 | 28 | % | ||||||||||||||||||||||||
Gains on investments and other assets | 245 | 151 | 62 | % | 2,331 | 166 | 1304 | % | 498 | 409 | 22 | % | ||||||||||||||||||||||||
Other | 61 | 23 | 165 | % | 105 | 74 | 42 | % | 69 | 46 | 50 | % | ||||||||||||||||||||||||
Total | $ | 4,009 | $ | 3,000 | 34 | % | $ | 13,060 | $ | 9,907 | 32 | % | $ | 4,359 | $ | 3,776 | 15 | % | ||||||||||||||||||
Earnings before income taxes | $ | 782 | $ | 248 | 215 | % | $ | 3,714 | $ | 1,332 | 179 | % | $ | 1,185 | $ | 861 | 38 | % |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended March 31 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Income from loan originations | $ | 9,350 | $ | 12,931 | (28 | %) | $ | 30,201 | $ | 34,778 | (13 | %) | $ | 8,114 | $ | 9,882 | (18 | %) | ||||||||||||||||||
Secondary gains from investors | 22,315 | 28,667 | (22 | %) | 58,633 | 87,308 | (33 | %) | 16,365 | 15,578 | 5 | % | ||||||||||||||||||||||||
Net investment income | 176 | 208 | (15 | %) | ||||||||||||||||||||||||||||||||
Gains on investments and other assets | (35 | ) | (248 | ) | 86 | % | ||||||||||||||||||||||||||||||
Other | 2,587 | 2,156 | 20 | % | 7,071 | 6,867 | 3 | % | 2,009 | 2,019 | 0 | % | ||||||||||||||||||||||||
Total | $ | 34,252 | $ | 43,754 | (22 | %) | $ | 95,905 | $ | 128,953 | (26 | %) | $ | 26,629 | $ | 27,439 | (3 | %) | ||||||||||||||||||
Earnings before income taxes | $ | (762 | ) | $ | 393 | (294 | %) | $ | (4,994 | ) | $ | 1,919 | (360 | %) | $ | (838 | ) | $ | (3,385 | ) | 75 | % |
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 |
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 | ||||||||||||
1/1/2019-1/31/2019 | 10,080 | $ | 5.40 | - | 251,220 | |||||||||||
2/1/2019-2/28/2019 | 10,000 | 5.44 | - | 241,220 | ||||||||||||
3/1/2019-3/31/2019 | 600 | 5.11 | - | 240,620 | ||||||||||||
Total | 20,680 | $ | 5.40 | - | 240,620 |
(a)(1) | Financial Statements |
See “Table of Contents – Part I – Financial Information” under page 2 above | |
(a)(2) | Financial Statement Schedules |
None | |
All other schedules to the consolidated financial statements required by Article 7 of Regulation S‑X are not required under the related instructions or are inapplicable and therefore have been omitted. | |
(a)(3) | Exhibits |
The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S‑K or are incorporated by reference to previous filings. |
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) |
10.1 | Amended and Restated Employee Stock Ownership Plan (ESOP) and Trust Agreement (1) |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.7 | |
14 | |
21 | |
23.1 | |
23.2 | |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
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 |
(3) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September |
(4) | |
Incorporated by reference from Report on Form 10-Q, as filed on November 15, 2015 | |
Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015 | |
Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017 | |
(7) | Incorporated by reference from Report on Form 8-K, as filed on June 6, 2018 |
(8) | Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2018 |
(9) | Incorporated by reference from Report on Form 8-K, as filed on |
Dated: | /s/ Scott M. Quist | |
Scott M. Quist | ||
Chairman, President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: | /s/ Garrett S. Sill | |
Garrett S. Sill | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer and Principal Accounting Officer) |