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 [ ] | 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. | 48 | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 54 |
Item 4. | Controls and Procedures | 54 |
Part II - Other Information | ||
Item 1. | Legal Proceedings | 54 |
Item 1A. | Risk Factors | 54 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | 55 |
Item 4. | Mine Safety Disclosures | 55 |
Item 5. | Other Information | 55 |
Item 6. | Exhibits | 56 |
Signature Page | 57 | |
Certifications | 59 |
Assets | September 30 2018 (Unaudited) | December 31 2017 | ||||||
Investments: | ||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 230,386,875 | $ | 228,397,623 | ||||
Equity securities at estimated fair value | 5,988,918 | 6,037,855 | ||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,470,158 and $1,768,796 for 2018 and 2017) | 181,381,522 | 204,210,885 | ||||||
Real estate held for investment (net of accumulated depreciation of $16,403,949 and $18,788,869 for 2018 and 2017) | 119,076,609 | 141,298,706 | ||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,046,840 and $846,641 for 2018 and 2017) | 44,038,625 | 45,895,472 | ||||||
Accrued investment income | 3,751,942 | 3,644,077 | ||||||
Total investments | 584,624,491 | 629,484,618 | ||||||
Cash and cash equivalents | 137,106,471 | 45,315,661 | ||||||
Loans held for sale at estimated fair value | 165,507,394 | 133,414,188 | ||||||
Receivables (net of allowances for doubtful accounts of $1,614,057 and $1,544,518 for 2018 and 2017) | 8,898,086 | 10,443,869 | ||||||
Restricted assets (including $810,056 and $809,958 for 2018 and 2017 at estimated fair value) | 12,226,773 | 11,830,621 | ||||||
Cemetery perpetual care trust investments (including $677,699 and $682,315 for 2018 and 2017 at estimated fair value) | 4,058,014 | 4,623,563 | ||||||
Receivable from reinsurers | 10,717,118 | 13,394,603 | ||||||
Cemetery land and improvements | 9,885,331 | 9,942,933 | ||||||
Deferred policy and pre-need contract acquisition costs | 87,899,386 | 80,625,304 | ||||||
Mortgage servicing rights, net | 20,875,905 | 21,376,937 | ||||||
Property and equipment, net | 7,206,802 | 8,069,380 | ||||||
Value of business acquired | 5,963,308 | 6,588,759 | ||||||
Goodwill | 2,765,570 | 2,765,570 | ||||||
Other | 6,514,889 | 4,297,048 | ||||||
Total Assets | $ | 1,064,249,538 | $ | 982,173,054 |
Assets | June 30 2019 (Unaudited) | December 31 2018 | ||||||
Investments: | ||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 222,824,099 | $ | 232,078,723 | ||||
Equity securities at estimated fair value | 7,601,561 | 5,558,611 | ||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,292,914 and $1,347,972 for 2019 and 2018) | 188,322,005 | 186,465,069 | ||||||
Real estate held for investment (net of accumulated depreciation of $17,568,917 and $16,739,578 for 2019 and 2018) | 119,469,347 | 121,558,222 | ||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,399,272 and $1,092,528 for 2019 and 2018) | 47,610,741 | 46,617,655 | ||||||
Accrued investment income | 3,894,701 | 3,566,146 | ||||||
Total investments | 589,722,454 | 595,844,426 | ||||||
Cash and cash equivalents | 127,828,356 | 142,199,942 | ||||||
Loans held for sale at estimated fair value | 187,938,302 | 136,210,853 | ||||||
Receivables (net of allowances for doubtful accounts of $1,572,391and $1,519,842 for 2019 and 2018) | 18,729,777 | 8,935,343 | ||||||
Restricted assets (including $828,731 and $744,673 for 2019 and 2018 at estimated fair value) | 12,329,446 | 10,981,562 | ||||||
Cemetery perpetual care trust investments (including $480,537 and $483,353 for 2019 and 2018 at estimated fair value) | 4,107,280 | 4,335,869 | ||||||
Receivable from reinsurers | 10,828,024 | 10,820,102 | ||||||
Cemetery land and improvements | 9,821,371 | 9,878,427 | ||||||
Deferred policy and pre-need contract acquisition costs | 92,510,997 | 89,362,096 | ||||||
Mortgage servicing rights, net | 17,504,477 | 20,016,822 | ||||||
Property and equipment, net | 9,211,456 | 7,010,778 | ||||||
Value of business acquired | 5,396,891 | 5,765,190 | ||||||
Goodwill | 3,519,588 | 2,765,570 | ||||||
Other | 17,014,329 | 6,684,143 | ||||||
Total Assets | $ | 1,106,462,748 | $ | 1,050,811,123 |
September 30 2018 (Unaudited) | December 31 2017 | June 30 2019 (Unaudited) | December 31 2018 | |||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Future policy benefits and unpaid claims | $ | 616,421,261 | $ | 604,746,951 | $ | 626,987,613 | $ | 620,399,714 | ||||||||
Unearned premium reserve | 3,989,237 | 4,222,410 | 3,778,815 | 3,920,473 | ||||||||||||
Bank and other loans payable | 196,422,645 | 157,450,925 | 216,352,961 | 187,521,188 | ||||||||||||
Deferred pre-need cemetery and mortuary contract revenues | 12,442,497 | 12,873,068 | 12,730,705 | 12,508,625 | ||||||||||||
Cemetery perpetual care obligation | 3,793,575 | 3,710,740 | 3,886,614 | 3,821,979 | ||||||||||||
Accounts payable | 3,243,526 | 3,613,100 | 4,024,789 | 2,883,349 | ||||||||||||
Other liabilities and accrued expenses | 33,352,301 | 29,655,087 | 44,324,342 | 31,821,624 | ||||||||||||
Income taxes | 22,552,988 | 17,332,783 | 16,808,733 | 16,122,998 | ||||||||||||
Total liabilities | 892,218,030 | 833,605,064 | 928,894,572 | 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 15,322,830 shares in 2019 and 15,304,798 shares in 2018 | 30,645,660 | 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 2,190,354 shares in 2019 and 2,193,643 shares in 2018 | 4,380,708 | 4,387,286 | ||||||||||||||
Additional paid-in capital | 38,711,180 | 38,125,042 | 42,357,731 | 41,821,778 | ||||||||||||
Accumulated other comprehensive income, net of taxes | (687 | ) | 603,170 | (1,287 | ) | (2,823 | ) | |||||||||
Retained earnings | 100,293,129 | 77,520,951 | 100,611,335 | 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 - 270,803 Class A shares in 2019 and 302,541 Class A shares in 2018 | (425,971 | ) | (206,396 | ) | ||||||||||||
Total stockholders' equity | 172,031,508 | 148,567,990 | 177,568,176 | 171,811,173 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,064,249,538 | $ | 982,173,054 | $ | 1,106,462,748 | $ | 1,050,811,123 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Insurance premiums and other considerations | $ | 18,639,401 | $ | 17,489,560 | $ | 56,640,590 | $ | 52,345,184 | $ | 19,645,218 | $ | 19,190,831 | $ | 38,672,220 | $ | 38,001,189 | ||||||||||||||||
Net investment income | 9,641,496 | 8,220,430 | 29,457,892 | 25,559,113 | 10,540,835 | 9,741,965 | 20,582,503 | 19,816,396 | ||||||||||||||||||||||||
Net mortuary and cemetery sales | 3,646,290 | 2,717,311 | 10,430,128 | 9,356,659 | 4,000,730 | 3,551,109 | 7,679,358 | 6,783,838 | ||||||||||||||||||||||||
Gains on investments and other assets | 1,022,427 | (319,666 | ) | 25,371,595 | 713,066 | |||||||||||||||||||||||||||
Other than temporary impairments on investments | - | (163,375 | ) | - | (481,741 | ) | ||||||||||||||||||||||||||
Gains (losses) on investments and other assets | (1,025,893 | ) | 2,328,229 | 780,768 | 24,349,168 | |||||||||||||||||||||||||||
Mortgage fee income | 31,664,704 | 41,597,573 | 88,833,944 | 122,086,734 | 32,946,567 | 31,709,080 | 57,425,438 | 57,169,240 | ||||||||||||||||||||||||
Other | 2,608,775 | 2,288,982 | 7,430,179 | 6,393,691 | 2,337,725 | 2,343,912 | 4,798,730 | 4,821,404 | ||||||||||||||||||||||||
Total revenues | 67,223,093 | 71,830,815 | 218,164,328 | 215,972,706 | 68,445,182 | 68,865,126 | 129,939,017 | 150,941,235 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Death benefits | 8,616,285 | 8,772,153 | 27,579,540 | 26,113,770 | 9,248,796 | 9,355,157 | 19,326,699 | 18,963,255 | ||||||||||||||||||||||||
Surrenders and other policy benefits | 692,445 | 547,648 | 2,198,479 | 2,085,296 | 763,978 | 695,906 | 1,629,909 | 1,506,034 | ||||||||||||||||||||||||
Increase in future policy benefits | 6,686,536 | 6,735,141 | 18,420,499 | 17,669,279 | 5,676,111 | 6,149,027 | 11,427,241 | 11,733,963 | ||||||||||||||||||||||||
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 | 3,073,478 | 2,110,782 | 6,201,752 | 5,220,715 | ||||||||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||||||||
Commissions | 13,619,192 | 18,999,583 | 39,361,315 | 53,877,389 | 13,853,889 | 14,459,722 | 23,528,981 | 25,742,123 | ||||||||||||||||||||||||
Personnel | 17,075,236 | 17,059,279 | 50,547,638 | 53,754,920 | 15,699,260 | 16,905,714 | 30,730,596 | 33,472,402 | ||||||||||||||||||||||||
Advertising | 1,423,933 | 1,611,599 | 3,647,610 | 4,407,877 | 1,171,903 | 1,194,086 | 2,205,078 | 2,223,677 | ||||||||||||||||||||||||
Rent and rent related | 1,913,813 | 2,257,259 | 5,806,296 | 6,693,292 | 1,724,179 | 1,929,133 | 3,628,467 | 3,892,483 | ||||||||||||||||||||||||
Depreciation on property and equipment | 457,430 | 517,041 | 1,426,087 | 1,723,879 | 422,926 | 491,626 | 872,606 | 968,657 | ||||||||||||||||||||||||
Costs related to funding mortgage loans | 1,732,617 | 2,809,471 | 5,147,557 | 7,315,227 | 1,559,289 | 2,045,659 | 2,914,214 | 3,414,940 | ||||||||||||||||||||||||
Other | 7,616,264 | 7,035,570 | 21,562,432 | 22,227,370 | 8,154,367 | 7,135,844 | 15,799,494 | 13,946,168 | ||||||||||||||||||||||||
Interest expense | 1,855,548 | 1,655,870 | 5,297,066 | 4,295,263 | 1,782,557 | 1,679,841 | 3,274,444 | 3,441,518 | ||||||||||||||||||||||||
Cost of goods and services sold-mortuaries and cemeteries | 575,708 | 453,229 | 1,641,596 | 1,507,295 | 690,606 | 550,398 | 1,343,534 | 1,065,888 | ||||||||||||||||||||||||
Total benefits and expenses | 65,011,295 | 70,692,798 | 190,603,118 | 207,942,620 | 63,821,339 | 64,702,895 | 122,883,015 | 125,591,823 | ||||||||||||||||||||||||
Earnings before income taxes | 2,211,798 | 1,138,017 | 27,561,210 | 8,030,086 | 4,623,843 | 4,162,231 | 7,056,002 | 25,349,412 | ||||||||||||||||||||||||
Income tax expense | (198,052 | ) | (41,179 | ) | (5,383,324 | ) | (2,587,384 | ) | (1,143,789 | ) | (924,014 | ) | (1,645,630 | ) | (5,185,272 | ) | ||||||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 3,480,054 | $ | 3,238,217 | $ | 5,410,372 | $ | 20,164,140 | ||||||||||||||||
Net earnings per Class A Equivalent common share (1) | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | $ | 0.20 | $ | 0.19 | $ | 0.31 | $ | 1.18 | ||||||||||||||||
Net earnings per Class A Equivalent common share-assuming dilution (1) | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | $ | 0.20 | $ | 0.19 | $ | 0.31 | $ | 1.17 | ||||||||||||||||
Weighted-average Class A equivalent common share outstanding (1) | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | 17,255,902 | 17,074,815 | 17,247,778 | 17,031,804 | ||||||||||||||||||||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | 17,473,804 | 17,320,589 | 17,470,726 | 17,249,536 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 3,480,054 | $ | 3,238,217 | $ | 5,410,372 | $ | 20,164,140 | ||||||||||||||||
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 | ) | - | 954 | (1,929 | ) | 2,046 | (1,929 | ) | |||||||||||||||||||||
Other comprehensive income, before income tax | 1,013 | 144,935 | (916 | ) | 109,713 | 954 | (1,929 | ) | 2,046 | (1,929 | ) | |||||||||||||||||||||
Income tax expense | (252 | ) | (50,517 | ) | 229 | (37,904 | ) | |||||||||||||||||||||||||
Income tax benefit | (238 | ) | 481 | (510 | ) | 481 | ||||||||||||||||||||||||||
Other comprehensive income, net of income tax | 761 | 94,418 | (687 | ) | 71,809 | 716 | (1,448 | ) | 1,536 | (1,448 | ) | |||||||||||||||||||||
Comprehensive income | $ | 2,014,507 | $ | 1,191,256 | $ | 22,177,199 | $ | 5,514,511 | $ | 3,480,770 | $ | 3,236,769 | $ | 5,411,908 | $ | 20,162,692 |
Nine Months Ended September 30, 2018 | Six Months Ended June 30, 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, 2018 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
January 1, 2019 | $ | 30,609,596 | $ | 4,387,286 | $ | 41,821,778 | $ | (2,823 | ) | $ | 95,201,732 | $ | (206,396 | ) | $ | 171,811,173 | ||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 16,925,923 | - | 16,925,923 | - | - | - | - | 1,930,318 | - | 1,930,318 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain | - | - | - | 820 | - | - | 820 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,087 | - | - | - | 58,087 | - | - | 64,704 | - | - | - | 64,704 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | 8,936 | - | 8,444 | - | - | - | 17,380 | |||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 88,964 | - | - | 222,410 | 311,374 | - | - | 295,153 | - | - | 42,343 | 337,496 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (112,404 | ) | (112,404 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 3,520 | (4 | ) | 5,362 | - | (8,878 | ) | - | - | 282 | (4 | ) | 489 | - | (769 | ) | - | (2 | ) | |||||||||||||||||||||||||||||||||||||
March 31, 2018 | 29,138,642 | 4,178,744 | 38,255,340 | - | 95,041,166 | (708,665 | ) | 165,905,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 6,560 | (6,560 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | $ | 30,625,374 | $ | 4,380,722 | $ | 42,190,568 | $ | (2,003 | ) | $ | 97,131,281 | $ | (276,457 | ) | $ | 174,049,485 | ||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 3,238,217 | - | 3,238,217 | - | - | - | - | 3,480,054 | - | 3,480,054 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (1,448 | ) | - | (1,448 | ) | - | - | - | 716 | - | 716 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,053 | - | - | - | 58,053 | - | - | 65,037 | - | - | - | 65,037 | ||||||||||||||||||||||||||||||||||||||||||
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 | 20,274 | - | 9,519 | - | - | - | 29,793 | ||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 168,500 | - | - | 242,954 | 411,454 | - | - | 92,605 | - | - | 25,190 | 117,795 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (54,507 | ) | (54,507 | ) | - | - | - | - | - | (174,704 | ) | (174,704 | ) | ||||||||||||||||||||||||||||||||||||||
September 30, 2018 | $ | 29,147,316 | $ | 4,178,368 | $ | 38,711,180 | $ | (687 | ) | $ | 100,293,129 | $ | (297,798 | ) | $ | 172,031,508 | ||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 12 | (14 | ) | 2 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | 30,645,660 | 4,380,708 | 42,357,731 | (1,287 | ) | 100,611,335 | (425,971 | ) | 177,568,176 |
Nine Months Ended September 30, 2017 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2018 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 1,860,000 | - | 1,860,000 | - | - | - | - | 16,925,923 | - | 16,925,923 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | 21,292 | - | - | 21,292 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 101,996 | - | - | - | 101,996 | - | - | 58,087 | - | - | - | 58,087 | ||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 178,002 | - | - | 146,065 | 324,067 | - | - | 88,964 | - | - | 222,410 | 311,374 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | 3,520 | (4 | ) | 5,362 | - | (8,878 | ) | - | - | |||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2017 | 27,640,156 | 3,803,248 | 35,095,594 | 286,114 | 69,265,920 | (1,410,016 | ) | 134,681,016 | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | 29,138,642 | 4,178,744 | 38,255,340 | - | 95,041,166 | (708,665 | ) | 165,905,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 2,485,864 | - | 2,485,864 | - | - | - | - | 3,238,217 | - | 3,238,217 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (43,901 | ) | - | - | (43,901 | ) | - | - | - | (1,448 | ) | - | - | (1,448 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 101,316 | - | - | - | 101,316 | - | - | 58,053 | - | - | - | 58,053 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 195,383 | - | - | 205,092 | 400,475 | - | - | 163,335 | - | - | 222,420 | 385,755 | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2017 | 27,640,158 | 4,010,052 | 35,185,487 | 242,213 | 71,751,784 | (1,204,924 | ) | 137,624,770 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 1,096,838 | - | 1,096,838 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | 94,418 | - | - | 94,418 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 102,429 | - | - | - | 102,429 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 202,111 | - | - | 223,315 | 425,426 | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 | |||||||||||||||||||||||||||||||||||||||||
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 |
Nine Months Ended September 30 | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net cash provided by (used in) operating activities | $ | (10,250,549 | ) | $ | 6,030,453 | |||
Cash flows from investing activities: | ||||||||
Purchases of fixed maturity securities | (29,074,605 | ) | (59,325,291 | ) | ||||
Calls and maturities of fixed maturity securities | 26,356,188 | 11,933,573 | ||||||
Purchases of equity securities | (2,356,207 | ) | (5,126,062 | ) | ||||
Sales of equity securities | 2,478,051 | 9,153,786 | ||||||
Purchases of short-term investments | - | (27,483,124 | ) | |||||
Sales of short-term investments | - | 37,212,174 | ||||||
Net changes in restricted assets | 121,418 | (234,807 | ) | |||||
Net changes in perpetual care trusts | 1,664,215 | (195,340 | ) | |||||
Mortgage loans, other investments and policy loans made | (376,549,887 | ) | (340,424,956 | ) | ||||
Payments received for mortgage loans, other investments and policy loans | 403,724,354 | 344,278,996 | ||||||
Purchase of property and equipment | (1,020,257 | ) | (508,846 | ) | ||||
Sale of property and equipment | 2,014,704 | 9,977 | ||||||
Purchase of real estate | (22,399,516 | ) | (12,474,490 | ) | ||||
Sale of real estate | 65,457,047 | 8,612,307 | ||||||
Cash paid for purchase of subsidiaries, net of cash acquired | (3,405,783 | ) | - | |||||
Net cash provided by (used in) investing activities | 67,009,722 | (34,572,103 | ) | |||||
Cash flows from financing activities: | ||||||||
Investment contract receipts | 8,833,639 | 9,457,285 | ||||||
Investment contract withdrawals | (11,667,269 | ) | (11,522,652 | ) | ||||
Proceeds from stock options exercised | 57,412 | - | ||||||
Purchase of treasury stock | (54,507 | ) | (185,470 | ) | ||||
Repayment of bank loans | (27,873,253 | ) | (2,142,382 | ) | ||||
Proceeds from borrowing on bank loans | 11,455,289 | 16,729,056 | ||||||
Net change in warehouse line borrowings | 14,131,782 | 16,022,738 | ||||||
Net change in line of credit borrowings | 41,250,000 | - | ||||||
Net cash provided by financing activities | 36,133,093 | 28,358,575 | ||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 92,892,266 | (183,075 | ) | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 54,501,923 | 46,942,293 | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 147,394,189 | $ | 46,759,218 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid (received) during the year for: | ||||||||
Interest (net of amount capitalized) | $ | 5,206,262 | $ | 4,188,579 | ||||
Income taxes (net of refunds) | 162,327 | (788,601 | ) | |||||
Non Cash Operating, Investing and Financing Activities: | ||||||||
Benefit plans funded with treasury stock | $ | 1,108,583 | $ | 1,149,968 | ||||
Mortgage loans foreclosed into real estate | 670,601 | 1,576,196 | ||||||
Transfer of loans held for sale to mortgage loans held for investment | 139,464 | 5,032,147 | ||||||
Accrued real estate construction costs and retainage | 17,433 | 1,932,790 | ||||||
Six Months Ended June 30 | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net cash used in operating activities | $ | (40,725,988 | ) | $ | (27,786,532 | ) | ||
Cash flows from investing activities: | ||||||||
Purchases of fixed maturity securities | (4,570,527 | ) | (11,414,568 | ) | ||||
Calls and maturities of fixed maturity securities | 13,688,850 | 10,740,357 | ||||||
Purchases of equity securities | (2,046,346 | ) | (2,124,482 | ) | ||||
Sales of equity securities | 763,548 | 1,852,049 | ||||||
Net changes in restricted assets | (1,380,216 | ) | 165,631 | |||||
Net changes in perpetual care trusts | 757,527 | 1,670,976 | ||||||
Mortgage loans, other investments and policy loans made | (273,167,834 | ) | (251,952,076 | ) | ||||
Payments received for mortgage loans, other investments and policy loans | 269,379,815 | 266,703,802 | ||||||
Purchase of property and equipment | (367,466 | ) | (662,579 | ) | ||||
Sale of property and equipment | 51,102 | 2,011,700 | ||||||
Purchase of real estate | (4,316,130 | ) | (21,152,074 | ) | ||||
Sale of real estate | 4,945,323 | 59,629,788 | ||||||
Cash paid for purchase of subsidiaries, net of cash acquired | (3,261,788 | ) | (3,405,783 | ) | ||||
Net cash provided by investing activities | 475,858 | 52,062,741 | ||||||
Cash flows from financing activities: | ||||||||
Investment contract receipts | 6,275,671 | 5,727,714 | ||||||
Investment contract withdrawals | (8,729,845 | ) | (7,755,515 | ) | ||||
Proceeds from stock options exercised | 47,173 | 41,853 | ||||||
Purchase of treasury stock | (287,108 | ) | - | |||||
Repayment of bank and other loans | (93,583,859 | ) | (47,614,318 | ) | ||||
Proceeds from borrowing on bank loans | 92,967,146 | 76,049,325 | ||||||
Net change in warehouse line borrowings | 29,203,601 | 21,633,787 | ||||||
Net change in line of credit borrowings | - | 1,250,000 | ||||||
Net cash provided by financing activities | 25,892,779 | 49,332,846 | ||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | (14,357,351 | ) | 73,609,055 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 150,936,673 | 54,501,923 | ||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 136,579,322 | $ | 128,110,978 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | 3,219,201 | $ | 3,401,874 | ||||
Income taxes (net of refunds) | 960,408 | 147,327 | ||||||
Non Cash Operating, Investing and Financing Activities: | ||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 11,860,956 | $ | - | ||||
Right-of-use assets obtained in exchange for finance lease liabilities | 244,885 | - | ||||||
Receivable for maturities of fixed maturity securities | 10,000,000 | 10,000,000 | ||||||
Accrued real estate construction costs and retainage | 823,545 | 681,167 | ||||||
Mortgage loans held for investment foreclosed into real estate held for investment | 755,000 | 565,341 | ||||||
Benefit plans funded with treasury stock | 455,291 | 697,129 | ||||||
Mortgage loans held for investment foreclosed into receivables | 155,347 | - | ||||||
Transfer of loans held for sale to mortgage loans held for investment | - | 139,464 | ||||||
See Note 15 regarding non cash transactions included in the acquisitions of Probst Family Funeral and Cremations and Heber Valley Funeral Home and Beta Capital Corp. |
Six Months Ended June 30 | ||||||||||||||||
Nine Months Ended September 30 | 2019 | 2018 | ||||||||||||||
2018 | 2017 | |||||||||||||||
Cash and cash equivalents | $ | 137,106,471 | $ | 38,593,462 | $ | 127,828,356 | $ | 118,705,581 | ||||||||
Restricted assets | 8,717,416 | 7,263,952 | 7,076,341 | 7,886,262 | ||||||||||||
Cemetery perpetual care trust investments | 1,570,302 | 901,804 | 1,674,625 | 1,519,135 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 147,394,189 | $ | 46,759,218 | $ | 136,579,322 | $ | 128,110,978 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
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 | $ | 42,197,238 | $ | 592,789 | $ | (82,086 | ) | $ | 42,707,941 | ||||||||||||||
Obligations of states and political subdivisions | 6,987,405 | 40,224 | (190,262 | ) | 6,837,367 | 6,103,022 | 79,100 | (10,582 | ) | 6,171,540 | ||||||||||||||||||||||
Corporate securities including public utilities | 155,372,733 | 7,544,943 | (2,299,844 | ) | 160,617,832 | 157,441,604 | 14,001,117 | (846,167 | ) | 170,596,554 | ||||||||||||||||||||||
Mortgage-backed securities | 13,731,279 | 135,074 | (323,564 | ) | 13,542,789 | 16,979,038 | 628,906 | (55,141 | ) | 17,552,803 | ||||||||||||||||||||||
Redeemable preferred stock | 612,023 | 36,437 | - | 648,460 | 103,197 | 12,112 | 115,309 | |||||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 230,386,875 | $ | 7,898,977 | $ | (4,061,699 | ) | $ | 234,224,153 | $ | 222,824,099 | $ | 15,314,024 | $ | (993,976 | ) | $ | 237,144,147 | ||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | $ | 7,558,408 | $ | 891,797 | $ | (848,644 | ) | $ | 7,601,561 | ||||||||||||||
Total equity securities at estimated fair value | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | $ | 7,558,408 | $ | 891,797 | $ | (848,644 | ) | $ | 7,601,561 | ||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 79,930,807 | $ | 84,093,609 | ||||||||||||||||||||||||||||
Residential construction | 71,330,891 | 74,712,638 | ||||||||||||||||||||||||||||||
Commercial | 32,869,447 | 32,009,118 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (1,279,465 | ) | (1,200,446 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,470,158 | ) | (1,292,914 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 181,381,522 | $ | 188,322,005 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 26,988,179 | $ | 26,386,608 | ||||||||||||||||||||||||||||
Commercial | 92,088,430 | 93,082,739 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 119,076,609 | $ | 119,469,347 | ||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,389,122 | $ | 6,265,560 | ||||||||||||||||||||||||||||
Insurance assignments | 32,166,750 | 35,789,203 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 2,308,700 | 2,606,500 | ||||||||||||||||||||||||||||||
Other investments | 4,220,893 | 4,348,750 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (1,046,840 | ) | (1,399,272 | ) | ||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 44,038,625 | $ | 47,610,741 | ||||||||||||||||||||||||||||
Accrued investment income | $ | 3,751,942 | $ | 3,894,701 | ||||||||||||||||||||||||||||
Total investments | $ | 584,624,491 | $ | 589,722,454 | ||||||||||||||||||||||||||||
(1) Includes $806,500 of Membership stock and $1,800,000 of Activity stock due to short-term borrowings. | (1) Includes $806,500 of Membership stock and $1,800,000 of Activity stock due to short-term borrowings. |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||||||||||
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 | $ | 54,077,069 | $ | 211,824 | $ | (579,423 | ) | $ | 53,709,470 | $ | 52,017,683 | $ | 264,891 | $ | (727,798 | ) | $ | 51,554,776 | ||||||||||||||
Obligations of states and political subdivisions | 5,843,176 | 112,372 | (71,013 | ) | 5,884,535 | 6,959,237 | 32,274 | (111,271 | ) | 6,880,240 | ||||||||||||||||||||||
Corporate securities including public utilities | 158,350,727 | 14,336,452 | (1,007,504 | ) | 171,679,675 | 157,639,860 | 7,002,864 | (3,704,137 | ) | 160,938,587 | ||||||||||||||||||||||
Mortgage-backed securities | 9,503,016 | 210,652 | (162,131 | ) | 9,551,537 | 15,358,746 | 227,398 | (308,864 | ) | 15,277,280 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 49,748 | (191 | ) | 673,192 | 103,197 | 1,903 | (5,125 | ) | 99,975 | ||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 228,397,623 | $ | 14,921,048 | $ | (1,820,262 | ) | $ | 241,498,409 | $ | 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 | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,312,158 | $ | 422,528 | $ | (1,176,075 | ) | $ | 5,558,611 | ||||||||||||||
Total equity securities at estimated fair value | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,312,158 | $ | 422,528 | $ | (1,176,075 | ) | $ | 5,558,611 | ||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 102,527,111 | $ | 89,935,600 | ||||||||||||||||||||||||||||
Residential construction | 50,157,533 | 71,366,544 | ||||||||||||||||||||||||||||||
Commercial | 54,954,865 | 27,785,927 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (1,659,828 | ) | (1,275,030 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,768,796 | ) | (1,347,972 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 204,210,885 | $ | 186,465,069 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 68,329,917 | $ | 29,507,431 | ||||||||||||||||||||||||||||
Commercial | 72,968,789 | 92,050,791 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 141,298,706 | $ | 121,558,222 | ||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,531,352 | $ | 6,424,325 | ||||||||||||||||||||||||||||
Insurance assignments | 36,301,739 | 35,239,396 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 689,400 | 2,548,700 | ||||||||||||||||||||||||||||||
Other investments | 3,219,622 | 3,497,762 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (846,641 | ) | (1,092,528 | ) | ||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 45,895,472 | $ | 46,617,655 | ||||||||||||||||||||||||||||
Accrued investment income | $ | 3,644,077 | $ | 3,566,146 | ||||||||||||||||||||||||||||
Total investments | $ | 629,484,618 | $ | 595,844,426 | ||||||||||||||||||||||||||||
(1) Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings. | (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 June 30, 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 | $ | - | $ | - | $ | 82,086 | $ | 20,491,005 | $ | 82,086 | $ | 20,491,005 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 46,178 | 2,447,348 | 144,084 | 2,644,649 | 190,262 | 5,091,997 | 114 | 200,992 | 10,468 | 1,288,630 | 10,582 | 1,489,622 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,738,234 | 59,982,599 | 561,610 | 8,915,794 | 2,299,844 | 68,898,393 | 187,944 | 4,835,513 | 658,223 | 10,460,880 | 846,167 | 15,296,393 | ||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 51,253 | 6,780,302 | 272,311 | 2,352,453 | 323,564 | 9,132,755 | 23,369 | 222,869 | 31,772 | 1,117,283 | 55,141 | 1,340,152 | ||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 1,939,735 | $ | 79,206,396 | $ | 2,121,961 | $ | 55,110,321 | $ | 4,061,699 | $ | 134,316,717 | $ | 211,427 | $ | 5,259,374 | $ | 782,549 | $ | 33,357,798 | $ | 993,976 | $ | 38,617,172 | ||||||||||||||||||||||||
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 | $ | 6,201,791 | $ | 6,240,536 | ||||||||
Due in 2-5 years | 66,428,822 | 66,259,870 | 66,350,604 | 67,872,915 | ||||||||||||
Due in 5-10 years | 69,688,359 | 69,760,698 | 66,900,191 | 70,594,910 | ||||||||||||
Due in more than 10 years | 77,026,677 | 81,048,260 | 66,289,278 | 74,767,674 | ||||||||||||
Mortgage-backed securities | 13,731,279 | 13,542,789 | 16,979,038 | 17,552,803 | ||||||||||||
Redeemable preferred stock | 612,023 | 648,460 | 103,197 | 115,309 | ||||||||||||
Total held to maturity | $ | 230,386,875 | $ | 234,224,153 | $ | 222,824,099 | $ | 237,144,147 |
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 June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 109,554 | $ | 110,529 | $ | 397,190 | $ | 163,950 | $ | 163,038 | $ | 259,503 | $ | 248,626 | $ | 287,635 | ||||||||||||||||||||
Gross realized losses | (31,670 | ) | (651,754 | ) | (601,303 | ) | (686,819 | ) | (69,622 | ) | (260,702 | ) | (105,015 | ) | (569,633 | ) | ||||||||||||||||||||
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 (losses) on securities sold | 41,088 | (39,797 | ) | 52,664 | (25,146 | ) | ||||||||||||||||||||||||||||||
Unrealized gains and (losses) on securities held at the end of the period | 284,192 | - | 71,143 | - | 14,016 | 158,993 | 775,224 | (213,048 | ) | |||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||
Gross realized gains | 814,471 | 225,022 | 26,060,598 | (1 | ) | 2,006,721 | 688,289 | 2,294,404 | 1,793,223 | 25,246,127 | (1 | ) | ||||||||||||||||||||||||
Gross realized losses | (165,334 | ) | (29,335 | ) | (542,100 | ) | (844,672 | ) | (1,862,702 | ) | (84,172 | ) | (1,983,954 | ) | (376,767 | ) | ||||||||||||||||||||
Total | $ | 1,022,427 | $ | (483,041 | ) | $ | 25,371,595 | $ | 231,325 | $ | (1,025,893 | ) | $ | 2,328,229 | $ | 780,768 | $ | 24,349,168 | ||||||||||||||||||
(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 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Fixed maturity securities held to maturity | $ | 2,481,202 | $ | 2,692,586 | $ | 7,521,884 | $ | 7,475,156 | ||||||||
Equity securities | 64,214 | 66,320 | 176,126 | 209,517 | ||||||||||||
Mortgage loans held for investment | 4,240,624 | 2,973,349 | 14,016,985 | 8,803,257 | ||||||||||||
Real estate held for investment | 2,124,138 | 2,818,672 | 6,423,996 | 8,540,756 | ||||||||||||
Policy loans | 85,044 | 195,098 | 296,540 | 621,854 | ||||||||||||
Insurance assignments | 3,583,964 | 3,234,520 | 10,956,651 | 9,943,561 | ||||||||||||
Other investments | 57,050 | 16,051 | 186,594 | 36,041 | ||||||||||||
Cash and cash equivalents | 375,310 | 109,939 | 752,339 | 311,989 | ||||||||||||
Gross investment income | 13,011,546 | 12,106,535 | 40,331,115 | 35,942,131 | ||||||||||||
Investment expenses | (3,370,050 | ) | (3,886,105 | ) | (10,873,223 | ) | (10,383,018 | ) | ||||||||
Net investment income | $ | 9,641,496 | $ | 8,220,430 | $ | 29,457,892 | $ | 25,559,113 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Fixed maturity securities held to maturity | $ | 2,528,689 | $ | 2,510,842 | $ | 5,032,554 | $ | 5,040,682 | ||||||||
Equity securities | 74,730 | 53,620 | 152,651 | 111,912 | ||||||||||||
Mortgage loans held for investment | 4,525,817 | 4,872,441 | 8,629,184 | 9,776,361 | ||||||||||||
Real estate held for investment | 2,096,927 | 1,623,044 | 4,007,221 | 4,299,858 | ||||||||||||
Policy loans | 106,905 | 108,630 | 195,042 | 211,496 | ||||||||||||
Insurance assignments | 3,906,832 | 3,511,749 | 8,118,952 | 7,372,687 | ||||||||||||
Other investments | 52,130 | 75,871 | 106,678 | 129,544 | ||||||||||||
Cash and cash equivalents | 465,959 | 239,661 | 964,876 | 377,029 | ||||||||||||
Gross investment income | 13,757,989 | 12,995,858 | 27,207,158 | 27,319,569 | ||||||||||||
Investment expenses | (3,217,154 | ) | (3,253,893 | ) | (6,624,655 | ) | (7,503,173 | ) | ||||||||
Net investment income | $ | 10,540,835 | $ | 9,741,965 | $ | 20,582,503 | $ | 19,816,396 |
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 | |||||||||||||||||||
June 30 | December 31 | June 30 | December 31 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 4,000 | (1 | ) | - | - | ||||||||||
Kansas | 5,400,000 | 6,861,898 | 222,679 | 222,679 | ||||||||||||||||
Louisiana | 454,944 | 467,694 | 7,063 | 7,063 | ||||||||||||||||
Mississippi | 3,289,436 | 3,329,948 | 33,821 | 33,821 | ||||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||||
Texas | 300,000 | (2 | ) | 300,000 | (2 | ) | - | - | ||||||||||||
Utah | 83,627,359 | 81,080,251 | 502,129 | 502,129 | ||||||||||||||||
$ | 93,082,739 | $ | 92,050,791 | 765,692 | 765,692 | |||||||||||||||
_______________ | ||||||||||||||||||||
(1) Undeveloped land | ||||||||||||||||||||
(2) Improved commercial pad |
Net Ending Balance | ||||||||
September | December 31 | |||||||
2018 | 2017 | |||||||
Arizona | $ | - | $ | 217,105 | ||||
California | 4,064,197 | 5,463,878 | ||||||
Florida | 6,677,953 | 7,000,684 | ||||||
Hawaii | - | 712,286 | ||||||
Ohio | 10,000 | 10,000 | ||||||
Oklahoma | - | 17,500 | ||||||
Tennesse | 105,260 | - | ||||||
Texas | 552,615 | 509,011 | ||||||
Utah | 14,951,798 | 54,113,272 | ||||||
Virginia | 150,175 | - | ||||||
Washington | 476,181 | 286,181 | ||||||
$ | 26,988,179 | $ | 68,329,917 |
Net Ending Balance | ||||||||
June 30 | December 31 | |||||||
2019 | 2018 | |||||||
California | $ | 1,911,458 | $ | 2,644,321 | ||||
Florida | 5,645,131 | 6,534,277 | ||||||
Ohio | 10,000 | 10,000 | ||||||
South Carolina | 205,000 | - | ||||||
Tennessee | 105,260 | 105,260 | ||||||
Texas | - | 139,174 | ||||||
Utah | 18,033,578 | 19,598,218 | ||||||
Washington | 476,181 | 476,181 | ||||||
$ | 26,386,608 | $ | 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 | Allowance for Credit Losses and Recorded Investment in Mortgage Loans | Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||||||||||||||||
Commercial | Residential | Residential Construction | Total | Commercial | Residential | Residential Construction | Total | |||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||||||||||||||||||
Beginning balance - January 1, 2019 | $ | 187,129 | $ | 1,125,623 | $ | 35,220 | $ | 1,347,972 | ||||||||||||||||||||||||
Charge-offs | - | (84,902 | ) | - | (84,902 | ) | - | (32,692 | ) | - | (32,692 | ) | ||||||||||||||||||||
Provision | - | (213,736 | ) | - | (213,736 | ) | - | (30,348 | ) | 7,982 | (22,366 | ) | ||||||||||||||||||||
Ending balance - September 30, 2018 | $ | 187,129 | $ | 1,247,809 | $ | 35,220 | $ | 1,470,158 | ||||||||||||||||||||||||
Ending balance - June 30, 2019 | $ | 187,129 | $ | 1,062,583 | $ | 43,202 | $ | 1,292,914 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 75,064 | $ | - | $ | 75,064 | $ | - | $ | 8,367 | $ | - | $ | 8,367 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,172,745 | $ | 35,220 | $ | 1,395,094 | $ | 187,129 | $ | 1,054,216 | $ | 43,202 | $ | 1,284,547 | ||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 32,869,447 | $ | 79,930,807 | $ | 71,330,891 | $ | 184,131,145 | $ | 32,009,118 | $ | 84,093,609 | $ | 74,712,638 | $ | 190,815,365 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 195,911 | $ | 3,088,265 | $ | 1,078,529 | $ | 4,362,705 | $ | 655,499 | $ | 4,589,601 | $ | 4,321,123 | $ | 9,566,223 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 32,673,536 | $ | 76,842,542 | $ | 70,252,362 | $ | 179,768,440 | $ | 31,353,619 | $ | 79,504,008 | $ | 70,391,515 | $ | 181,249,142 | ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||||||||||||||||||
Charge-offs | - | (351,357 | ) | (64,894 | ) | (416,251 | ) | - | (5,725 | ) | - | (5,725 | ) | |||||||||||||||||||
Provision | - | 436,264 | - | 436,264 | - | (415,099 | ) | - | (415,099 | ) | ||||||||||||||||||||||
Ending balance - December 31, 2017 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||||||||||||||||||
Ending balance - December 31, 2018 | $ | 187,129 | $ | 1,125,623 | $ | 35,220 | $ | 1,347,972 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 237,560 | $ | - | $ | 237,560 | $ | - | $ | 74,185 | $ | - | $ | 74,185 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,308,887 | $ | 35,220 | $ | 1,531,236 | $ | 187,129 | $ | 1,051,438 | $ | 35,220 | $ | 1,273,787 | ||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 54,954,865 | $ | 102,527,111 | $ | 50,157,533 | $ | 207,639,509 | $ | 27,785,927 | $ | 89,935,600 | $ | 71,366,544 | $ | 189,088,071 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 4,923,552 | $ | 461,834 | $ | 5,385,386 | $ | 196,182 | $ | 2,939,651 | $ | 502,991 | $ | 3,638,824 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 54,954,865 | $ | 97,603,559 | $ | 49,695,699 | $ | 202,254,123 | $ | 27,589,745 | $ | 86,995,949 | $ | 70,863,553 | $ | 185,449,247 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,745,013 | $ | - | $ | 195,911 | $ | - | $ | 3,940,924 | $ | 28,928,523 | $ | 32,869,447 | $ | (187,129 | ) | $ | (20,919 | ) | $ | 32,661,399 | $ | 233,200 | $ | 1,500,000 | $ | - | $ | 655,499 | $ | 2,388,699 | $ | 29,620,419 | $ | 32,009,118 | $ | (187,129 | ) | $ | (4,140 | ) | $ | 31,817,849 | ||||||||||||||||||||||||||||||||||||
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 | 8,042,198 | 1,915,051 | 2,662,534 | 1,927,067 | 14,546,850 | 69,546,759 | 84,093,609 | (1,062,583 | ) | (736,845 | ) | 82,294,181 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 1,078,529 | - | 1,078,529 | 70,252,362 | 71,330,891 | (35,220 | ) | (579,561 | ) | 70,716,110 | 5,295,675 | 315,908 | 246,854 | 4,074,269 | 9,932,706 | 64,779,932 | 74,712,638 | (43,202 | ) | (459,461 | ) | 74,209,975 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 13,571,073 | $ | 3,730,959 | $ | 2,909,388 | $ | 6,656,835 | $ | 26,868,255 | $ | 163,947,110 | $ | 190,815,365 | $ | (1,292,914 | ) | $ | (1,200,446 | ) | $ | 188,322,005 | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | $ | 655,499 | $ | 655,499 | $ | - | $ | 753,726 | $ | - | ||||||||||||||||||||
Residential | 1,592,174 | 1,592,174 | - | 2,693,459 | - | 4,443,598 | 4,443,598 | - | 3,575,845 | - | ||||||||||||||||||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | 4,321,123 | 4,321,123 | - | 2,412,057 | - | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Residential | 1,496,091 | 1,496,091 | 75,064 | 1,615,392 | - | 146,003 | 146,003 | 8,367 | 377,491 | - | ||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | $ | 655,499 | $ | 655,499 | $ | - | $ | 753,726 | $ | - | ||||||||||||||||||||
Residential | 3,088,265 | 3,088,265 | 75,064 | 4,308,851 | - | 4,589,601 | 4,589,601 | 8,367 | 3,953,336 | - | ||||||||||||||||||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | 4,321,123 | 4,321,123 | - | 2,412,057 | - | ||||||||||||||||||||||||||||||
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 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 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 | $ | 31,353,619 | $ | 27,589,745 | $ | 79,504,008 | $ | 86,995,949 | $ | 70,391,515 | $ | 70,863,553 | $ | 181,249,142 | $ | 185,449,247 | ||||||||||||||||||||||||||||||||
Non-performing | 195,911 | - | 3,088,265 | 4,923,552 | 1,078,529 | 461,834 | 4,362,705 | 5,385,386 | 655,499 | 196,182 | 4,589,601 | 2,939,651 | 4,321,123 | 502,991 | 9,566,223 | 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 | $ | 32,009,118 | $ | 27,785,927 | $ | 84,093,609 | $ | 89,935,600 | $ | 74,712,638 | $ | 71,366,544 | $ | 190,815,365 | $ | 189,088,071 |
Mortgage Loans on Non-Accrual Status | Mortgage Loans on Non-Accrual Status | |||||||||||||||
Mortgage Loans on Non-Accrual Status | ||||||||||||||||
As of June 30 2019 | As of December 31 2018 | |||||||||||||||
As of September 30 2018 | As of December 31 2017 | |||||||||||||||
Commercial | $ | 195,911 | $ | - | $ | 655,499 | $ | 196,182 | ||||||||
Residential | 3,088,265 | 4,923,552 | 4,589,601 | 2,939,651 | ||||||||||||
Residential construction | 1,078,529 | 461,834 | 4,321,123 | 502,991 | ||||||||||||
Total | $ | 4,166,794 | $ | 5,385,386 | $ | 9,566,223 | $ | 3,638,824 |
As of September 30, 2018 | As of June 30 2019 | As of December 31 2018 | ||||||||||
Aggregate fair value | $ | 165,507,394 | $ | 187,938,302 | $ | 136,210,853 | ||||||
Unpaid principal balance | 160,124,093 | 182,173,973 | 131,663,946 | |||||||||
Unrealized gain | 5,383,301 | 5,764,329 | 4,546,907 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Loan fees | $ | 7,758,284 | $ | 15,086,168 | $ | 21,347,320 | $ | 33,149,877 | $ | 8,626,163 | $ | 7,843,728 | $ | 13,437,482 | $ | 13,589,036 | ||||||||||||||||
Interest income | 1,993,895 | 2,097,249 | 4,698,899 | 5,679,868 | 1,690,098 | 1,588,550 | 2,904,730 | 2,705,004 | ||||||||||||||||||||||||
Secondary gains | 22,315,022 | 28,667,234 | 58,633,363 | 87,307,806 | 21,201,216 | 21,765,939 | 38,585,201 | 36,318,341 | ||||||||||||||||||||||||
Change in fair value of loan commitments | 94,569 | (4,833,268 | ) | 537,696 | (3,677,554 | ) | 603,797 | 2,169 | 1,536,324 | 443,127 | ||||||||||||||||||||||
Change in fair value of loans held for sale | (203,623 | ) | 1,061,917 | 4,563,222 | 1,061,917 | 977,799 | 810,755 | 1,216,586 | 4,766,844 | |||||||||||||||||||||||
Provision for loan loss reserve | (293,443 | ) | (481,727 | ) | (946,556 | ) | (1,435,180 | ) | (152,506 | ) | (302,061 | ) | (254,885 | ) | (653,112 | ) | ||||||||||||||||
Mortgage fee income | $ | 31,664,704 | $ | 41,597,573 | $ | 88,833,944 | $ | 122,086,734 | $ | 32,946,567 | $ | 31,709,080 | $ | 57,425,438 | $ | 57,169,240 | ||||||||||||||||
(1) See Fair Value Option Election |
As of September 30 2018 | As of December 31 2017 | As of June 30 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 | 254,885 | 1,148,334 | ||||||||||||
Charge-offs, net of recaptured amounts | (10,061 | ) | 92,604 | (147,444 | ) | (114,989 | ) | |||||||||
Balance, end of period | $ | 3,508,019 | $ | 2,571,524 | $ | 3,712,310 | $ | 3,604,869 | ||||||||
(1) Included in Mortgage fee income | ||||||||||||||||
(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 | (15,328 | ) | - | |||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at June 30, 2019 | 997,946 | $ | 4.50 | 577,280 | $ | 5.15 | ||||||||||
As of June 30, 2019: | ||||||||||||||||
Options exercisable | 921,895 | $ | 4.42 | 530,030 | $ | 5.14 | ||||||||||
As of June 30, 2019: | ||||||||||||||||
Available options for future grant | 299,351 | 146,425 | ||||||||||||||
Weighted average contractual term of options outstanding at June 30, 2019 | 5.65 years | 3.46 years | ||||||||||||||
Weighted average contractual term of options exercisable at June 30, 2019 | 5.53 years | 2.93 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at June 30, 2019 (1) | $ | 822,875 | $ | 218,010 | ||||||||||||
Aggregated intrinsic value of options exercisable at June 30, 2019 (1) | $ | 822,875 | $ | 218,010 | ||||||||||||
_______________ | ||||||||||||||||
(1) The Company used a stock price of $5.02 as of June 30, 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 June 30, 2018 | 842,738 | $ | 4.48 | 523,603 | $ | 5.24 | ||||||||||
�� | ||||||||||||||||
As of June 30, 2018: | ||||||||||||||||
Options exercisable | 777,373 | $ | 4.42 | 486,853 | $ | 5.27 | ||||||||||
As of June 30, 2018: | ||||||||||||||||
Available options for future grant | 421,241 | 165,638 | ||||||||||||||
Weighted average contractual term of options outstanding at June 30, 2018 | 6.30 years | 2.94 years | ||||||||||||||
Weighted average contractual term of options exercisable at June 30, 2018 | 6.29 years | 2.45 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at June 30, 2018 (1) | $ | 873,372 | $ | 267,943 | ||||||||||||
Aggregated intrinsic value of options exercisable at June 30, 2018 (1) | $ | 862,976 | $ | 253,243 | ||||||||||||
_______________ | ||||||||||||||||
(1) The Company used a stock price of $5.20 as of June 30, 2018 to derive intrinsic value. |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net earnings | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | $ | 3,480,054 | $ | 3,238,217 | $ | 5,410,372 | $ | 20,164,140 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic weighted-average shares outstanding | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | 17,255,902 | 17,074,815 | 17,247,778 | 17,031,804 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Employee stock options | 223,495 | 300,093 | 212,163 | 331,020 | 217,902 | 245,774 | 222,948 | 217,732 | ||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | 17,473,804 | 17,320,589 | 17,470,726 | 17,249,536 | ||||||||||||||||||||||||
Basic net earnings per share | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | $ | 0.20 | $ | 0.19 | $ | 0.31 | $ | 1.18 | ||||||||||||||||
Diluted net earnings per share | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | $ | 0.20 | $ | 0.19 | $ | 0.31 | $ | 1.17 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Revenues from external customers | $ | 28,607,056 | $ | 4,543,007 | $ | 35,295,119 | $ | - | $ | 68,445,182 | ||||||||||
Intersegment revenues | 1,080,347 | 113,622 | 124,921 | (1,318,890 | ) | - | ||||||||||||||
Segment profit before income taxes | 1,219,001 | 1,023,782 | 2,381,060 | - | 4,623,843 | |||||||||||||||
- | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 29,370,509 | $ | 5,281,005 | $ | 34,213,612 | $ | - | $ | 68,865,126 | ||||||||||
Intersegment revenues | 987,994 | 107,021 | 132,282 | (1,227,297 | ) | - | ||||||||||||||
Segment profit before income taxes | 2,937,037 | 2,071,666 | (846,472 | ) | - | 4,162,231 | ||||||||||||||
For the Six Months Ended | ||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Revenues from external customers | $ | 59,112,424 | $ | 8,902,292 | $ | 61,924,301 | $ | - | $ | 129,939,017 | ||||||||||
Intersegment revenues | 1,975,719 | 230,273 | 251,279 | (2,457,271 | ) | - | ||||||||||||||
Segment profit before income taxes | 3,304,342 | 2,208,647 | 1,543,013 | - | 7,056,002 | |||||||||||||||
Identifiable Assets | 929,442,236 | 87,450,987 | 202,723,000 | (116,673,063 | ) | 1,102,943,160 | ||||||||||||||
Goodwill | 2,765,570 | 754,018 | - | - | 3,519,588 | |||||||||||||||
Total Assets | 932,207,806 | 88,205,005 | 202,723,000 | (116,673,063 | ) | 1,106,462,748 | ||||||||||||||
For the Six Months Ended | ||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 80,236,374 | $ | 9,051,414 | $ | 61,653,447 | $ | - | $ | 150,941,235 | ||||||||||
Intersegment revenues | 1,807,286 | 216,038 | 265,879 | (2,289,203 | ) | - | ||||||||||||||
Segment profit before income taxes | 26,648,846 | 2,932,429 | (4,231,863 | ) | - | 25,349,412 | ||||||||||||||
Identifiable Assets | 919,115,726 | 95,779,077 | 185,865,711 | (135,776,637 | ) | 1,064,983,877 | ||||||||||||||
Goodwill | 2,765,570 | - | - | 2,765,570 | ||||||||||||||||
Total Assets | 921,881,296 | 95,779,077 | 185,865,711 | (135,776,637 | ) | 1,067,749,447 |
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 | $ | 7,601,561 | $ | 7,601,561 | $ | - | $ | - | ||||||||
Total equity securities | $ | 7,601,561 | $ | 7,601,561 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 187,938,302 | $ | - | $ | - | $ | 187,938,302 | ||||||||
Restricted assets (1) | 828,731 | 828,731 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 480,537 | 480,537 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 3,581,207 | - | - | 3,581,207 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 200,430,338 | $ | 8,910,829 | $ | - | $ | 191,519,509 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - call options (3) | $ | (79,142 | ) | $ | (79,142 | ) | $ | - | $ | - | ||||||
Derivatives - put options (3) | (48,625 | ) | (48,625 | ) | - | - | ||||||||||
Derivatives - loan commitments (3) | (453,067 | ) | - | - | (453,067 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (580,834 | ) | $ | (127,767 | ) | $ | - | $ | (453,067 | ) | |||||
_______________ | ||||||||||||||||
(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 | |||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | 133,414,188 | ||||
Originations | 1,692,673,286 | |||||||
Sales | (1,719,346,884 | ) | ||||||
Transfer to mortgage loans held for investment | (139,464 | ) | ||||||
Total gains (losses): | ||||||||
Included in earnings (1) | 537,696 | 58,906,268 | ||||||
Balance - September 30, 2018 | $ | 2,534,285 | $ | 165,507,394 | ||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings |
Net Loan Commitments | Loans Held for Sale | |||||||
Balance - December 31, 2018 | $ | 1,591,816 | $ | 136,210,853 | ||||
Originations | 1,050,256,047 | |||||||
Sales | (1,034,958,199 | ) | ||||||
Total gains (losses): | ||||||||
Included in earnings (1) | 1,536,324 | 36,429,601 | ||||||
Balance - June 30, 2019 | $ | 3,128,140 | $ | 187,938,302 | ||||
_______________ | ||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings |
Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | ||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (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 nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 1,421,028 | $ | - | $ | - | $ | 1,421,028 | $ | 137,636 | $ | - | $ | - | $ | 137,636 | ||||||||||||||||
Impaired real estate held for investment | 7,079,822 | - | - | 7,079,822 | 5,400,000 | - | - | 5,400,000 | ||||||||||||||||||||||||
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 | $ | 5,537,636 | $ | - | $ | - | $ | 5,537,636 |
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 | $ | 144,967,457 | $ | 6,786,637 | $ | - | $ | 138,180,820 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (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 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 | ||||||||||||||||
Assets | ||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 230,386,875 | $ | - | $ | 201,221,369 | $ | 33,002,784 | $ | 234,224,153 | ||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||
Residential | 78,004,013 | - | - | 82,516,040 | 82,516,040 | |||||||||||||||
Residential construction | 70,716,110 | - | - | 70,716,110 | 70,716,110 | |||||||||||||||
Commercial | 32,661,399 | - | - | 33,475,276 | 33,475,276 | |||||||||||||||
Mortgage loans held for investment, net | $ | 181,381,522 | $ | - | $ | - | $ | 186,707,426 | $ | 186,707,426 | ||||||||||
Policy loans | 6,389,122 | - | - | 6,389,122 | 6,389,122 | |||||||||||||||
Insurance assignments, net (1) | 31,119,910 | - | - | 31,119,910 | 31,119,910 | |||||||||||||||
Restricted assets (2) | 1,199,301 | - | 1,201,983 | - | 1,201,983 | |||||||||||||||
Restricted assets (3) | 1,500,000 | - | - | 1,500,000 | 1,500,000 | |||||||||||||||
Cemetery perpetual care trust investments (2) | 973,821 | - | 963,621 | - | 963,621 | |||||||||||||||
Mortgage servicing rights, net | 20,875,905 | - | - | 32,327,266 | 32,327,266 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Bank and other loans payable | $ | (196,422,645 | ) | $ | - | $ | - | $ | (196,422,645 | ) | $ | (196,422,645 | ) | |||||||
Policyholder account balances (4) | (46,706,179 | ) | - | - | (34,223,082 | ) | (34,223,082 | ) | ||||||||||||
Future policy benefits - annuities (4) | (98,558,234 | ) | - | - | (96,511,305 | ) | (96,511,305 | ) | ||||||||||||
(1) Included in 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) | ||||||||||||||||||||
(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 | ||||||||||||||||
Assets | ||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 222,824,099 | $ | - | $ | 232,886,783 | $ | 4,257,364 | $ | 237,144,147 | ||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||
Residential | 82,294,181 | - | - | 86,460,522 | 86,460,522 | |||||||||||||||
Residential construction | 74,209,975 | - | - | 74,209,975 | 74,209,975 | |||||||||||||||
Commercial | 31,817,849 | - | - | 32,484,689 | 32,484,689 | |||||||||||||||
Mortgage loans held for investment, net | $ | 188,322,005 | $ | - | $ | - | $ | 193,155,186 | $ | 193,155,186 | ||||||||||
Policy loans | 6,265,560 | - | - | 6,265,560 | 6,265,560 | |||||||||||||||
Insurance assignments, net (1) | 34,389,931 | - | - | 34,389,931 | 34,389,931 | |||||||||||||||
Restricted assets (2) | 1,276,771 | - | 1,301,700 | - | 1,301,700 | |||||||||||||||
Restricted assets (3) | 3,147,603 | - | - | 3,156,132 | 3,156,132 | |||||||||||||||
Cemetery perpetual care trust investments (2) | 1,015,628 | - | 1,045,559 | - | 1,045,559 | |||||||||||||||
Mortgage servicing rights, net | 17,504,477 | - | - | 22,084,565 | 22,084,565 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Bank and other loans payable | $ | (216,352,961 | ) | $ | - | $ | - | $ | (216,352,961 | ) | $ | (216,352,961 | ) | |||||||
Policyholder account balances (4) | (45,825,524 | ) | - | - | (36,952,381 | ) | (36,952,381 | ) | ||||||||||||
Future policy benefits - annuities (4) | (96,841,746 | ) | - | - | (96,831,833 | ) | (96,831,833 | ) | ||||||||||||
_______________ | ||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet. | ||||||||||||||||||||
(2) Fixed maturity securities held to maturity | ||||||||||||||||||||
(3) Mortgage loans held for investment | ||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values and Notional Values of Derivative Instruments | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | 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 | $ | 214,982,852 | $ | 3,581,207 | $ | 453,067 | $ | 93,758,218 | $ | 1,969,967 | $ | 378,151 | ||||||||||||||||||||||||
Call options | Other liabilities | 1,758,900 | -- | 38,020 | 1,488,550 | -- | 64,689 | Other liabilities | 2,414,600 | -- | 79,142 | 805,500 | -- | 4,629 | ||||||||||||||||||||||||||||||||||||
Put options | Other liabilities | 2,888,400 | -- | 23,393 | 2,265,900 | -- | 20,568 | Other liabilities | 2,535,696 | -- | 48,625 | 4,861,700 | -- | 296,053 | ||||||||||||||||||||||||||||||||||||
Total | $ | 155,594,540 | $ | 2,595,146 | $ | 122,274 | $ | 109,433,557 | $ | 2,032,782 | $ | 121,450 | $ | 219,933,148 | $ | 3,581,207 | $ | 580,834 | $ | 99,425,418 | $ | 1,969,967 | $ | 678,833 |
Net Amount Gain (Loss) | Net Amount Gain (Loss) | Net Amount Gain (Loss) | Net Amount Gain (Loss) | |||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||
Derivative | Classification | 2018 | 2017 | 2018 | 2017 | Classification | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Loan commitments | Mortgage fee income | $ | 94,569 | $ | (4,833,268 | ) | $ | 537,696 | $ | (3,677,554 | ) | Mortgage fee income | $ | 603,797 | $ | 2,169 | $ | 1,536,324 | $ | 443,127 | ||||||||||||||
Call and put options | Gains on investments and other assets | $ | 83,612 | $ | 27,734 | $ | 313,913 | $ | 216,561 | Gains on investments and other assets | $ | 114,939 | $ | 151,130 | $ | 404,967 | $ | 230,301 |
As of September 30 2018 | As of December 31 2017 | As of June 30 2019 | As of December 31 2018 | |||||||||||||
Amortized cost: | ||||||||||||||||
Balance before valuation allowance at beginning of year | $ | 21,376,937 | $ | 18,872,362 | $ | 20,016,822 | $ | 21,376,937 | ||||||||
MSR additions resulting from loan sales | 1,922,230 | 6,085,352 | 459,414 | 3,922,816 | ||||||||||||
Amortization (1) | (2,423,262 | ) | (3,580,777 | ) | (2,971,759 | ) | (5,282,931 | ) | ||||||||
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 | $ | 17,504,477 | $ | 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 | $ | 20,875,905 | $ | 21,376,937 | $ | 17,504,477 | $ | 20,016,822 | ||||||||
Estimated fair value of MSRs at end of period | $ | 32,327,266 | $ | 27,427,174 | $ | 22,084,565 | $ | 28,885,316 | ||||||||
_______________ | ||||||||||||||||
(1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings |
Estimated MSR Amortization | Estimated MSR Amortization | |||||||
2018 | 1,634,568 | |||||||
2019 | 4,469,364 | 1,945,702 | ||||||
2020 | 4,469,364 | 2,240,020 | ||||||
2021 | 4,469,203 | 1,933,267 | ||||||
2022 | 3,570,974 | 1,656,072 | ||||||
2023 | 1,425,554 | |||||||
Thereafter | 2,262,432 | 8,303,862 | ||||||
Total | $ | 20,875,905 | $ | 17,504,477 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
Contractual servicing fees | $ | 1,905,887 | $ | 1,848,831 | $ | 5,670,346 | $ | 5,359,425 | $ | 1,858,599 | $ | 1,887,576 | $ | 3,668,013 | $ | 3,764,459 | ||||||||||||||||
Late fees | 106,354 | 99,281 | 334,452 | 266,218 | 87,291 | 116,350 | 178,890 | 228,098 | ||||||||||||||||||||||||
Total | $ | 2,012,241 | $ | 1,948,112 | $ | 6,004,798 | $ | 5,625,643 | $ | 1,945,890 | $ | 2,003,926 | $ | 3,846,903 | $ | 3,992,557 |
As of September 30 2018 | As of December 31 2017 | |||||||
Servicing UPB | $ | 2,990,572,817 | $ | 2,924,868,843 |
As of June 30 2019 | As of December 31 2018 | |||||||
Servicing UPB | $ | 2,794,077,226 | $ | 2,941,231,563 |
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 |
Prepayment Speeds | Average Life (Years) | Discount Rate | ||||||||||
June 30, 2019 | 3.10 | % | 5.02 | 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 (6/30/2019) | 2,891,181 | - | 12,730,705 | |||||||||
Increase/(decrease) | 74,956 | - | 222,080 | |||||||||
_______________ | ||||||||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
2018 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Major goods/service lines | ||||||||||||||||||||||||
At-need | $ | 2,772,859 | $ | 7,973,554 | $ | 3,025,783 | $ | 2,463,070 | $ | 5,994,850 | $ | 5,200,695 | ||||||||||||
Pre-need | 873,431 | 2,456,574 | 974,947 | 1,088,039 | 1,684,508 | 1,583,143 | ||||||||||||||||||
$ | 3,646,290 | $ | 10,430,128 | $ | 4,000,730 | $ | 3,551,109 | $ | 7,679,358 | $ | 6,783,838 | |||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||
Goods transferred at a point in time | $ | 2,448,836 | $ | 6,934,973 | $ | 2,754,230 | $ | 2,413,657 | $ | 5,144,840 | $ | 4,486,138 | ||||||||||||
Services transferred at a point in time | 1,197,454 | 3,495,155 | 1,246,500 | 1,137,452 | 2,534,518 | 2,297,700 | ||||||||||||||||||
$ | 3,646,290 | $ | 10,430,128 | $ | 4,000,730 | $ | 3,551,109 | $ | 7,679,358 | $ | 6,783,838 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||
2018 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net mortuary and cemetery sales | $ | 3,646,290 | $ | 10,430,128 | $ | 4,000,730 | $ | 3,551,109 | $ | 7,679,358 | $ | 6,783,838 | ||||||||||||
Gains on investments and other assets | 245,448 | 2,330,701 | 354,500 | 1,676,165 | 853,097 | 2,085,253 | ||||||||||||||||||
Net investment income | 56,284 | 194,425 | 162,562 | 36,129 | 275,371 | 99,601 | ||||||||||||||||||
Other revenues | 60,921 | 105,103 | 25,215 | 17,602 | 94,466 | 82,722 | ||||||||||||||||||
Revenues from external customers | 4,008,943 | 13,060,357 | 4,543,007 | 5,281,005 | 8,902,292 | 9,051,414 |
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 | 754,018 | |||
Other | 21,800 | |||
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 September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Insurance premiums | $ | 18,639 | $ | 17,490 | 7 | % | $ | 56,641 | $ | 52,345 | 8 | % | $ | 19,645 | $ | 19,191 | 2 | % | $ | 38,672 | $ | 38,002 | 2 | % | ||||||||||||||||||||||||
Net investment income | 9,376 | 7,974 | 18 | % | 28,574 | 24,847 | 15 | % | 10,119 | 9,416 | 7 | % | 19,872 | 19,199 | 4 | % | ||||||||||||||||||||||||||||||||
Gains on investments and other assets | 466 | (645 | ) | 172 | % | 22,786 | (623 | ) | 3757 | % | ||||||||||||||||||||||||||||||||||||||
Gains (losses) on investments and other assets | (1,471 | ) | 460 | (420 | %) | (128 | ) | 22,320 | (101 | %) | ||||||||||||||||||||||||||||||||||||||
Other | 482 | 259 | 86 | % | 1,198 | 543 | 121 | % | 314 | 304 | 3 | % | 696 | 716 | (3 | %) | ||||||||||||||||||||||||||||||||
Total | $ | 28,963 | $ | 25,078 | 15 | % | $ | 109,199 | $ | 77,112 | 42 | % | $ | 28,607 | $ | 29,371 | (3 | %) | $ | 59,112 | $ | 80,237 | (26 | %) | ||||||||||||||||||||||||
Intersegment revenue | $ | 1,108 | $ | 1,880 | (41 | %) | $ | 2,915 | $ | 4,930 | (41 | %) | $ | 1,080 | $ | 988 | 9 | % | $ | 1,976 | $ | 1,807 | 9 | % | ||||||||||||||||||||||||
Earnings before income taxes | $ | 2,192 | $ | 497 | 341 | % | $ | 28,841 | $ | 4,780 | 503 | % | $ | 1,219 | $ | 2,937 | (58 | %) | $ | 3,304 | $ | 26,649 | (88 | %) |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortuary revenues | $ | 1,422 | $ | 1,168 | 22 | % | $ | 4,071 | $ | 3,735 | 9 | % | $ | 1,595 | $ | 1,268 | 26 | % | $ | 3,228 | $ | 2,659 | 21 | % | ||||||||||||||||||||||||
Cemetery revenues | 2,225 | 1,551 | 43 | % | 6,359 | 5,622 | 13 | % | 2,405 | 2,283 | 5 | % | 4,451 | 4,125 | 8 | % | ||||||||||||||||||||||||||||||||
Net investment income | 56 | 107 | (48 | %) | 194 | 310 | (37 | %) | 163 | 56 | 191 | % | 275 | 138 | 99 | % | ||||||||||||||||||||||||||||||||
Gains on investments and other assets | 245 | 151 | 62 | % | 2,331 | 166 | 1304 | % | 355 | 1,676 | (79 | %) | 853 | 2,085 | (59 | %) | ||||||||||||||||||||||||||||||||
Other | 61 | 23 | 165 | % | 105 | 74 | 42 | % | 25 | (2 | ) | (1350 | %) | 95 | 44 | 116 | % | |||||||||||||||||||||||||||||||
Total | $ | 4,009 | $ | 3,000 | 34 | % | $ | 13,060 | $ | 9,907 | 32 | % | $ | 4,543 | $ | 5,281 | (14 | %) | $ | 8,902 | $ | 9,051 | (2 | %) | ||||||||||||||||||||||||
Earnings before income taxes | $ | 782 | $ | 248 | 215 | % | $ | 3,714 | $ | 1,332 | 179 | % | $ | 1,024 | $ | 2,071 | (51 | %) | $ | 2,209 | $ | 2,932 | (25 | %) |
Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from loan originations | $ | 9,350 | $ | 12,931 | (28 | %) | $ | 30,201 | $ | 34,778 | (13 | %) | $ | 11,745 | $ | 9,943 | 18 | % | $ | 18,840 | $ | 20,851 | (10 | %) | ||||||||||||||||||||||||
Secondary gains from investors | 22,315 | 28,667 | (22 | %) | 58,633 | 87,308 | (33 | %) | 21,201 | 21,766 | (3 | %) | 38,585 | 36,318 | 6 | % | ||||||||||||||||||||||||||||||||
Net investment income | 259 | 271 | (4 | %) | 435 | 479 | (9 | %) | ||||||||||||||||||||||||||||||||||||||||
Gains on investments and other assets | 91 | 192 | (53 | %) | 56 | (56 | ) | 200 | % | |||||||||||||||||||||||||||||||||||||||
Other | 2,587 | 2,156 | 20 | % | 7,071 | 6,867 | 3 | % | 1,999 | 2,042 | (2 | %) | 4,008 | 4,061 | (1 | %) | ||||||||||||||||||||||||||||||||
Total | $ | 34,252 | $ | 43,754 | (22 | %) | $ | 95,905 | $ | 128,953 | (26 | %) | $ | 35,295 | $ | 34,214 | 3 | % | $ | 61,924 | $ | 61,653 | 0 | % | ||||||||||||||||||||||||
Earnings before income taxes | $ | (762 | ) | $ | 393 | (294 | %) | $ | (4,994 | ) | $ | 1,919 | (360 | %) | $ | 2,381 | $ | (846 | ) | 381 | % | $ | 1,543 | $ | (4,232 | ) | 136 | % |
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 | ||||||||||||
4/1/2019-4/30/2019 | 10,000 | $ | 5.05 | - | 230,620 | |||||||||||
5/1/2019-5/31/2019 | 10,000 | 5.53 | - | 220,620 | ||||||||||||
6/1/2019-6/30/2019 | 10,000 | 5.12 | - | 210,620 | ||||||||||||
Total | 30,000 | $ | 5.17 | - | 210,620 |
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 | |
10.2 | |
10.3 | |
10.5 | |
10.7 | |
14 | |
21 | |
23.1 | |
23.2 | |
31.1 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.xml | Instance Document |
101.xsd | Taxonomy Extension Schema Document |
101.cal | Taxonomy Extension Calculation Linkbase Document |
101.def | Taxonomy Extension Definition Linkbase Document |
101.lab | Taxonomy Extension Label Linkbase Document |
101.pre | Taxonomy Extension Presentation Linkbase Document |
(1) | Incorporated by reference from Registration Statement on Form S‑1, as filed on |
(2) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on |
(3) | |
Incorporated by reference from Report on Form 10-Q, as filed on November | |
Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016 | |
(5) | Incorporated by reference from Registration Statement on Form S-8, as filed on September 7, 2016 |
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 |
February 28, 2019 | |
(10) | Incorporated by reference from Report on Form 10-Q, as filed on |
Dated: | August 14, 2019 | /s/ Scott M. Quist |
Scott M. Quist | ||
Chairman, President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: | August 14, 2019 | /s/ Garrett S. Sill |
Garrett S. Sill | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer and Principal Accounting Officer) |