Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | First Trinity Financial Corp. | |
Entity Central Index Key | 0001395585 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 7,802,593 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position (Current Period Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Investments | ||
Available-for-sale fixed maturity securities at fair value (amortized cost: $178,477,818 and $134,414,517 as of September 30, 2019 and December 31, 2018, respectively) | $ 192,946,789 | $ 131,152,199 |
Available-for-sale preferred stock at fair value (cost: $49,945 and $99,945 as of September 30, 2019 and December 31, 2018, respectively) | 51,320 | 90,580 |
Equity securities at fair value (cost: $182,186 and $187,122 as of September 30, 2019 and December 31, 2018, respectively) | 199,710 | 198,668 |
Mortgage loans on real estate | 156,504,177 | 130,049,610 |
Investment real estate | 1,988,131 | 2,392,031 |
Policy loans | 1,950,680 | 1,809,339 |
Short-term investments | 209,045 | 896,371 |
Other long-term investments | 72,711,634 | 59,255,477 |
Total investments | 426,561,486 | 325,844,275 |
Cash and cash equivalents | 14,083,748 | 29,665,605 |
Accrued investment income | 5,170,977 | 2,672,978 |
Recoverable from reinsurers | 1,161,862 | 2,323,157 |
Assets held in trust under coinsurance agreement | 104,509,053 | 25,494,700 |
Agents' balances and due premiums | 1,751,485 | 1,418,916 |
Deferred policy acquisition costs | 36,492,172 | 29,681,737 |
Value of insurance business acquired | 4,961,162 | 5,185,870 |
Other assets | 9,298,364 | 11,219,612 |
Total assets | 603,990,309 | 433,506,850 |
Policy liabilities | ||
Policyholders' account balances | 366,988,490 | 297,168,411 |
Future policy benefits | 62,651,571 | 56,261,507 |
Policy claims | 1,453,417 | 1,102,257 |
Other policy liabilities | 71,365 | 72,559 |
Total policy liabilities | 431,164,843 | 354,604,734 |
Funds withheld under coinsurance agreement | 105,200,731 | 29,285,119 |
Deferred federal income taxes | 6,446,615 | 2,373,478 |
Other liabilities | 3,735,466 | 8,118,268 |
Total liabilities | 546,547,655 | 394,381,599 |
Shareholders' equity | ||
Common stock, par value $.01 per share (20,000,000 shares authorized 8,050,173 issued as of September 30, 2019 and December 31, 2018 and 7,802,593 outstanding as of September 30, 2019 and December 31, 2018) | 80,502 | 80,502 |
Additional paid-in capital | 28,684,598 | 28,684,598 |
Treasury stock, at cost (247,580 shares as of September 30, 2019 and December 31, 2018) | (893,947) | (893,947) |
Accumulated other comprehensive income (loss) | 11,414,146 | (2,576,631) |
Accumulated earnings | 18,157,355 | 13,830,729 |
Total shareholders' equity | 57,442,654 | 39,125,251 |
Total liabilities and shareholders' equity | $ 603,990,309 | $ 433,506,850 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale fixed maturity securities at cost | $ 178,477,818 | $ 134,414,517 |
Available-for-sale equity securities at cost | 49,945 | 99,945 |
Equity securities, cost | $ 182,186 | $ 187,122 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,050,173 | 8,050,173 |
Common stock, shares outstanding (in shares) | 7,802,593 | 7,802,593 |
Treasury stock, shares (in shares) | 247,580 | 247,580 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Premiums | $ 5,754,771 | $ 4,701,250 | $ 16,831,658 | $ 13,760,857 |
Net investment income | 6,316,342 | 4,979,031 | 18,172,841 | 14,701,414 |
Net realized investment gains | 339,108 | 245,059 | 325,196 | 269,531 |
Service fees | 58,902 | 66,474 | 1,079,780 | 300,035 |
Other income | 91,354 | 11,977 | 154,093 | 58,149 |
Total revenues | 12,560,477 | 10,003,791 | 36,563,568 | 29,089,986 |
Benefits and claims | ||||
Increase in future policy benefits | 2,231,442 | 1,719,073 | 6,412,219 | 4,684,724 |
Death benefits | 1,762,961 | 876,629 | 4,869,866 | 3,963,815 |
Surrenders | 204,932 | 203,287 | 801,413 | 666,128 |
Interest credited to policyholders | 3,123,621 | 2,329,858 | 8,686,026 | 6,941,291 |
Dividend, endowment and supplementary life contract benefits | 63,101 | 64,339 | 206,891 | 197,034 |
Total benefits and claims | 7,386,057 | 5,193,186 | 20,976,415 | 16,452,992 |
Policy acquisition costs deferred | (2,409,231) | (1,673,638) | (9,681,748) | (6,162,096) |
Amortization of deferred policy acquisition costs | 997,249 | 682,295 | 2,839,129 | 2,677,918 |
Amortization of value of insurance business acquired | 69,717 | 83,935 | 224,708 | 255,424 |
Commissions | 2,348,478 | 1,934,194 | 9,644,315 | 5,963,852 |
Other underwriting, insurance and acquisition expenses | 1,931,334 | 1,849,373 | 7,054,193 | 4,981,401 |
Total expenses | 2,937,547 | 2,876,159 | 10,080,597 | 7,716,499 |
Total benefits, claims and expenses | 10,323,604 | 8,069,345 | 31,057,012 | 24,169,491 |
Income before total federal income tax expense | 2,236,873 | 1,934,446 | 5,506,556 | 4,920,495 |
Current federal income tax expense | 124,807 | 825,861 | ||
Deferred federal income tax expense | 341,202 | 409,687 | 354,069 | 1,055,978 |
Total federal income tax expense | 466,009 | 409,687 | 1,179,930 | 1,055,978 |
Net income | $ 1,770,864 | $ 1,524,759 | $ 4,326,626 | $ 3,864,517 |
Net income per common share basic and diluted (in dollars per share) | $ 0.23 | $ 0.20 | $ 0.55 | $ 0.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net income | $ 1,770,864 | $ 1,524,759 | $ 4,326,626 | $ 3,864,517 | |
Other Comprehensive Income (loss) | |||||
Total net unrealized investment gains (losses) arising during the period | 6,470,486 | (717,379) | 18,092,060 | (7,531,191) | |
Cumulative effect, adoption of accounting guidance for equity securities | (68,508) | ||||
Less net realized investment gains having no credit losses | [1] | 340,869 | 205,453 | 350,031 | 244,930 |
Net unrealized investment gains (losses) | 6,129,617 | (922,832) | 17,742,029 | (7,844,629) | |
Less adjustment to deferred acquisition costs | 9,088 | (14,204) | 32,184 | (132,210) | |
Other comprehensive income (loss) before federal income tax expense (benefit) | 6,120,529 | (908,628) | 17,709,845 | (7,712,419) | |
Federal income tax expense (benefit) | 1,285,311 | (190,813) | 3,719,068 | (1,619,608) | |
Total other comprehensive income (loss) | 4,835,218 | (717,815) | 13,990,777 | (6,092,811) | |
Total comprehensive income (loss) | $ 6,606,082 | $ 806,944 | $ 18,317,403 | $ (2,228,294) | |
[1] | These items appear within net realized investment gains in the consolidated statements of operations. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 80,502 | $ 28,684,598 | $ (893,947) | $ 4,760,951 | $ 8,620,075 | $ 41,252,179 |
Net income | 3,864,517 | 3,864,517 | ||||
Other comprehensive income (loss) | (6,092,811) | (6,092,811) | ||||
Cumulative effect, adoption of accounting guidance for equity securities | 68,508 | 68,508 | ||||
Balance at Sep. 30, 2018 | 80,502 | 28,684,598 | (893,947) | (1,331,860) | 12,553,100 | 39,092,393 |
Balance at Jun. 30, 2018 | 80,502 | 28,684,598 | (893,947) | (614,045) | 11,028,341 | 38,285,449 |
Net income | 1,524,759 | 1,524,759 | ||||
Other comprehensive income (loss) | (717,815) | (717,815) | ||||
Balance at Sep. 30, 2018 | 80,502 | 28,684,598 | (893,947) | (1,331,860) | 12,553,100 | 39,092,393 |
Balance at Dec. 31, 2018 | 80,502 | 28,684,598 | (893,947) | (2,576,631) | 13,830,729 | 39,125,251 |
Net income | 4,326,626 | 4,326,626 | ||||
Other comprehensive income (loss) | 13,990,777 | 13,990,777 | ||||
Balance at Sep. 30, 2019 | 80,502 | 28,684,598 | (893,947) | 11,414,146 | 18,157,355 | 57,442,654 |
Balance at Jun. 30, 2019 | 80,502 | 28,684,598 | (893,947) | 6,578,928 | 16,386,491 | 50,836,572 |
Net income | 1,770,864 | 1,770,864 | ||||
Other comprehensive income (loss) | 4,835,218 | 4,835,218 | ||||
Balance at Sep. 30, 2019 | $ 80,502 | $ 28,684,598 | $ (893,947) | $ 11,414,146 | $ 18,157,355 | $ 57,442,654 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 4,326,626 | $ 3,864,517 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for depreciation | 109,116 | 109,116 |
Accretion of discount on investments | (3,440,762) | (2,951,473) |
Net realized investment gains | (325,196) | (269,531) |
Amortization of policy acquisition cost | 2,839,129 | 2,677,918 |
Policy acquisition costs deferred | (9,681,748) | (6,162,096) |
Amortization of loan origination fees | 20,185 | 32,376 |
Amortization of value of insurance business acquired | 224,708 | 255,424 |
Allowance for mortgage loan losses | 73,783 | 61,083 |
Provision for deferred federal income tax expense | 354,069 | 1,055,978 |
Interest credited to policyholders | 8,686,026 | 6,941,291 |
Change in assets and liabilities: | ||
Policy loans | (141,341) | (95,095) |
Short-term investments | 687,326 | 412,006 |
Accrued investment income | (2,497,999) | (182,814) |
Recoverable from reinsurers | 1,161,295 | (434,381) |
Assets held in trust under coinsurance agreement | (79,014,353) | (15,831,355) |
Agents' balances and due premiums | (332,569) | (32,242) |
Other assets (excludes change in receivable for securities sold of ($201,401) and ($185,389) in 2019 and 2018, respectively) | 2,122,649 | (850,863) |
Future policy benefits | 6,390,064 | 4,653,803 |
Policy claims | 351,160 | (118,473) |
Other policy liabilities | (1,194) | (159) |
Other liabilities (excludes change in payable for securities purchased of ($393,762) and $142,361 in 2019 and 2018, respectively) | (3,989,040) | 768,279 |
Net cash used in operating activities | (72,078,066) | (6,096,691) |
Investing activities | ||
Purchases of fixed maturity securities | (65,392,840) | (11,958,357) |
Maturities of fixed maturity securities | 3,650,000 | 4,876,000 |
Sales of fixed maturity securities | 17,585,794 | 15,933,074 |
Sales of preferred stock securities | 50,000 | |
Purchases of equity securities | (92,956) | (53,828) |
Sales of equity securities | 19,371 | 361,947 |
Joint venture distribution | 90,893 | 34,877 |
Purchases of mortgage loans | (57,015,493) | (47,077,889) |
Payments on mortgage loans | 30,648,943 | 28,034,586 |
Purchases of other long-term investments | (17,590,689) | (6,068,995) |
Payments on other long-term investments | 7,737,867 | 6,606,259 |
Sale of real estate | 350,817 | 261,470 |
Net change in receivable and payable for securities sold and purchased | (595,163) | (43,028) |
Net cash used in investing activities | (80,553,456) | (9,093,884) |
Financing activities | ||
Policyholders' account deposits | 162,175,450 | 35,533,959 |
Policyholders' account withdrawals | (30,178,584) | (21,925,881) |
Funds withheld amounts due to reinsurer | 5,052,799 | |
Net cash provided by financing activities | 137,049,665 | 13,608,078 |
Decrease in cash | (15,581,857) | (1,582,497) |
Cash and cash equivalents, beginning of period | 29,665,605 | 31,496,159 |
Cash and cash equivalents, end of period | $ 14,083,748 | $ 29,913,662 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Change in receivable for securities sold | $ (201,401) | $ (185,389) |
Change in payable of securities purchased | $ (393,762) | $ 142,361 |
Supplemental Disclosure - Cash
Supplemental Disclosure - Cash and Non-cash Impact on Investing Activities | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | During 2019 2018, $99,218 $378,411 In connection with these foreclosures, the non-cash impact on investing activities is summarized as follows: Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 Reduction in mortgage loans due to foreclosure $ 99,218 $ 378,411 Investment real estate held-for-sale acquired through foreclosure (99,218 ) (378,411 ) Net cash used in investing activities $ - $ - See notes to consolidated financial statements (unaudited). |
Note 1 - Organization and Signi
Note 1 - Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Organization and Significant Accounting Policies Nature of Operations First Trinity Financial Corporation (the “Company” or “FTFC”) is the parent holding company of Trinity Life Insurance Company (“TLIC”), Family Benefit Life Insurance Company (“FBLIC”) and First Trinity Capital Corporation (“FTCC”). The Company was incorporated in Oklahoma on April 19, 2004, The Company owns 100% 100% 10, 15, 20 30 The Company owns 100% 2006, January 2007. no June 30, 2012. Company Capitalization The Company raised $1,450,000 two 2004 $25,669,480 two one June 22, 2005 February 23, 2007; June 29, 2010 April 30, 2012 August 15, 2012 March 8, 2013. 7,347,488 $3,624,518 702,685 two 2011 2012 $5,270,138 $5,270,138 The Company has also purchased 247,580 $893,947 Acquisition s On December 23, 2008, 100% $2,695,234 $195,234. On December 31, 2008, 15 $250,000 6% On August 31, 2009, two On December 28, 2011, 100% $13,855,129. On April 28, 2015, $3,055,916. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10 10 X. not The results of operations for the nine September 30, 2019 not December 31, 2019 not 10 December 31, 2018. Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Reclassifications Certain reclassifications have been made in the prior year and prior quarter financial statements to conform to current year and current quarter classifications. These reclassifications had no Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may may Common Stock Common stock is fully paid, non-assessable and has a par value of $.01 Treasury Stock Treasury stock, representing shares of the Company’s common stock that have been reacquired after having been issued and fully paid, is recorded at the reacquisition cost and the shares are no Subsequent Events Management has evaluated all events subsequent to September 30, 2019 On October 2, 2019 ● an amendment and restatement of the Certificate of Incorporation to authorize 50,000,000 $0.01 40,000,000 10,000,000 ● an amendment and restatement of the Certificate of Incorporation to automatically reclassify each issued and outstanding share of the Company’s existing Common Stock as one 1 one 1 ● First Trinity Financial Corporation’s 2019 These amendments, restatements and plans will be implemented during late 2019 2020. On November 8, 2019, $1.5 September 15, 2020. 1% 360 5%. Recent Accounting Pronouncements Leases In February 2016, 2018 11 12 two no not In July 2018, February 2016 ( 2018 11 may one December 15, 2018. In December 2018, 2018 20 not not The Company adopted this guidance in first 2019. 2019 not Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, 2016 13 The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no The updated guidance was effective for reporting periods beginning after December 15, 2019. December 15, 2022. December 15, 2018. not Intangibles - Goodwill and Other In January 2017, 2017 04 2 1 2 1 1 1 may not 2 1. The updated guidance is effective for reporting periods beginning after December 15, 2019 January 1, 2017. not Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, 2018 12 The updated guidance was effective for reporting periods beginning after December 15, 2020. December 15, 2023. may With respect to the market risk benefits, an insurance entity should apply the amendments retrospectively as of the beginning of the earliest period presented. The Company expects that the impact on the Company’s results of operations, financial position and liquidity at the date of adoption of the updated guidance in 2024 Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, 2018 13 December 15, 2019. 2020 not |
Note 2 - Investments
Note 2 - Investments | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 2. Investments Investments in fixed maturity and preferred stock available-for-sale and equity securities as of September 30, 2019 December 31, 2018 Gross Gross Amortized Cost Unrealized Unrealized Fair or Cost Gains Losses Value September 30, 2019 (Unaudited) Fixed maturity securities U.S. government and U.S. government agencies $ 1,804,605 $ 1,072 $ 6,731 $ 1,798,946 States and political subdivisions 9,905,883 618,447 2,739 10,521,591 Residential mortgage-backed securities 20,331 26,343 - 46,674 Corporate bonds 130,012,492 11,427,243 230,709 141,209,026 Asset-backed 2,201,471 117,231 - 2,318,702 Exchange traded securities 500,000 31,600 - 531,600 Foreign bonds 34,033,036 2,861,361 374,147 36,520,250 Total fixed maturity securities 178,477,818 15,083,297 614,326 192,946,789 Preferred stock 49,945 1,375 - 51,320 Equity securities Mutual funds 91,981 - 6,941 85,040 Corporate common stock 90,205 24,465 - 114,670 Total equity securities 182,186 24,465 6,941 199,710 Total fixed maturity, preferred stock and equity securities $ 178,709,949 $ 15,109,137 $ 621,267 $ 193,197,819 December 31, 2018 Fixed maturity securities U.S. government and U.S. government agencies $ 2,793,681 $ 2,769 $ 91,739 $ 2,704,711 States and political subdivisions 9,295,973 215,000 32,941 9,478,032 Residential mortgage-backed securities 23,694 27,461 - 51,155 Corporate bonds 100,360,468 823,991 3,220,268 97,964,191 Asset-backed 253,598 7,820 - 261,418 Foreign bonds 21,687,103 75,525 1,069,936 20,692,692 Total fixed maturity securities 134,414,517 1,152,566 4,414,884 131,152,199 Preferred stock 99,945 - 9,365 90,580 Equity securities Mutual funds 91,981 - 17,082 74,899 Corporate common stock 95,141 28,628 - 123,769 Total equity securities 187,122 28,628 17,082 198,668 Total fixed maturity, preferred stock and equity securities $ 134,701,584 $ 1,181,194 $ 4,441,331 $ 131,441,447 All securities in an unrealized loss position as of the financial statement dates, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position as of September 30, 2019 December 31, 2018 Unrealized Number of Fair Value Loss Securities September 30, 2019 (Unaudited) Fixed maturity securities Less than 12 months in an unrealized loss position U.S. government and U.S. government agencies $ 650,236 $ 4,217 2 States and political subdivisions 102,655 2,739 1 Corporate bonds 1,532,983 87,107 5 Foreign bonds 349,990 11 1 Total less than 12 months in an unrealized loss position 2,635,864 94,074 9 More than 12 months in an unrealized loss position U.S. government and U.S. government agencies 447,760 2,514 2 Corporate bonds 1,643,185 143,602 8 Foreign bonds 1,470,020 374,136 6 Total more than 12 months in an unrealized loss position 3,560,965 520,252 16 Total fixed maturity securities in an unrealized loss position 6,196,829 614,326 25 Equity securities (mutual funds), less than 12 months in an unrealized loss position 85,040 6,941 1 Total fixed maturity, preferred stock and equity securities in an unrealized loss position $ 6,281,869 $ 621,267 $ 26 December 31, 2018 Fixed maturity securities Less than 12 months in an unrealized loss position U.S. government and U.S. government agencies $ 991,660 $ 2,419 1 States and political subdivisions 1,066,743 7,948 6 Corporate bonds 58,506,980 2,154,898 215 Foreign bonds 14,554,291 852,120 50 Total less than 12 months in an unrealized loss position 75,119,674 3,017,385 272 More than 12 months in an unrealized loss position U.S. government and U.S. government agencies 1,590,655 89,320 6 States and political subdivisions 518,969 24,993 4 Corporate bonds 7,107,831 1,065,370 30 Foreign bonds 1,376,680 217,816 5 Total more than 12 months in an unrealized loss position 10,594,135 1,397,499 45 Total fixed maturity securities in an unrealized loss position 85,713,809 4,414,884 317 Preferred stock, less than 12 months in an unrealized loss position 90,580 9,365 2 Equity securities (mutual funds), less than 12 months in an unrealized loss position 74,899 17,082 1 Total fixed maturity, preferred stock and equity securities in an unrealized loss position $ 85,879,288 $ 4,441,331 $ 320 As of September 30, 2019, 25 $614,326, $6,196,829 $6,811,155. September 30, 2019. 25 91%. As of December 31, 2018, 317 $4,414,884, $85,713,809 $90,128,693. December 31, 2018. 317 95%. As of December 31, 2018, two $9,365, $90,580 $99,945. two 91%. As of September 30, 2019, one $6,941, $85,040 $91,981. 92%. As of December 31, 2018, one $17,082, $74,899 $91,981. 81%. Fixed maturity securities were 97% 96% September 30, 2019 December 31, 2018, The Company’s decision to record an impairment loss is primarily based on whether the security’s fair value is likely to remain significantly below its book value based on all of the factors considered. Factors that are considered include the length of time the security’s fair value has been below its carrying amount, the severity of the decline in value, the credit worthiness of the issuer, and the coupon and/or dividend payment history of the issuer. The Company also assesses whether it intends to sell or whether it is more likely than not may For any fixed maturity securities that are other-than-temporarily impaired, the Company determines the portion of the other-than-temporary impairment that is credit-related and the portion that is related to other factors. The credit-related portion is the difference between the expected future cash flows and the amortized cost basis of the fixed maturity security, and that difference is charged to earnings. The non-credit-related portion representing the remaining difference to fair value is recognized in other comprehensive income (loss). Only in the case of a credit-related impairment where management has the intent to sell the security, or it is more likely than not There were no nine September 30, 2019 2018. Management believes that the Company will fully recover its cost basis in the securities held as of September 30, 2019, not not Net unrealized gains (losses) included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes and deferred acquisition costs assuming that the appreciation (depreciation) had been realized as of September 30, 2019 December 31, 2018, (Unaudited) September 30, 2019 December 31, 2018 Unrealized appreciation (depreciation) on available-for-sale securities $ 14,470,346 $ (3,271,683 ) Adjustment to deferred acquisition costs (22,060 ) 10,124 Deferred income taxes (3,034,140 ) 684,928 Net unrealized appreciation (depreciation) on available-for-sale securities $ 11,414,146 $ (2,576,631 ) The Company’s investment in lottery prize cash flows categorized as other long-term investments in the statement of financial position was $72,711,634 $59,255,477 September 30, 2019 December 31, 2018, The amortized cost and fair value of fixed maturity available-for-sale securities and other long-term investments as of September 30, 2019, September 30, 2019 (Unaudited) Fixed Maturity Available-For-Sale Securities Other Long-Term Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,603,868 $ 2,631,429 $ 10,658,928 $ 10,856,012 Due after one year through five years 27,096,934 27,907,661 33,468,523 37,526,966 Due after five years through ten years 63,097,980 67,347,617 20,570,733 27,076,173 Due after ten years 85,658,705 95,013,408 8,013,450 14,507,449 Due at multiple maturity dates 20,331 46,674 - - $ 178,477,818 $ 192,946,789 $ 72,711,634 $ 89,966,600 Expected maturities will differ from contractual maturities because borrowers may Proceeds and gross realized gains (losses) from the sales, calls and maturities of fixed maturity securities available-for-sale, equity securities, investment real estate and preferred stock securities available-for-sale for the three nine September 30, 2019 2018 Three Months Ended September 30, (Unaudited) Fixed Maturity Securities Equity Securities Investment Real Estate 2019 2018 2019 2018 2019 2018 Proceeds $ 3,107,881 $ 12,320,142 $ - $ 346,535 $ 97,253 $ 206,617 Gross realized gains 349,297 305,883 - 25,683 - 52,971 Gross realized losses (8,428 ) (100,430 ) - (58 ) (1,965 ) - Three Months Ended September 30, (Unaudited) Preferred Stock Securities 2019 2018 Proceeds $ 50,000 $ - Gross realized gains - - Gross realized losses - - Nine Months Ended September 30, (Unaudited) Fixed Maturity Securities Equity Securities Investment Real Estate 2019 2018 2019 2018 2019 2018 Proceeds $ 21,235,794 $ 20,809,074 $ 19,371 $ 361,947 $ 350,817 $ 261,470 Gross realized gains 620,876 386,403 12,372 25,790 5,158 52,971 Gross realized losses (270,845 ) (141,473 ) - (58 ) (48,343 ) (1,322 ) Nine Months Ended September 30, (Unaudited) Preferred Stock Securities 2019 2018 Proceeds $ 50,000 $ - Gross realized gains - - Gross realized losses - - The accumulated change in unrealized investment gains (losses) for fixed maturity and preferred stock available-for-sale for the three nine September 30, 2019 2018 three nine September 30, 2019 2018 Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Change in unrealized investment gains (losses): Available-for-sale securities: Fixed maturity securities $ 6,128,777 $ (921,992 ) $ 17,731,289 $ (7,773,581 ) Preferred stock 840 (840 ) 10,740 (2,540 ) Net realized investment gains (losses): Available-for-sale securities: Fixed maturity securities 340,869 205,453 350,031 244,930 Equity securities, sale of securities - 25,625 12,372 25,732 Equity securities, changes in fair value 204 (38,990 ) 5,978 (52,780 ) Investment real estate (1,965 ) 52,971 (43,185 ) 51,649 Major categories of net investment income for the three nine September 30, 2019 2018 Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Fixed maturity securities $ 1,985,449 $ 1,492,224 $ 5,592,131 $ 4,792,648 Preferred stock and equity securities 38,646 24,280 106,392 57,397 Other long-term investments 1,284,234 995,100 3,601,231 2,974,163 Mortgage loans 3,406,458 2,877,910 9,999,923 8,253,828 Policy loans 35,270 31,055 101,038 90,480 Real estate 68,631 94,102 200,441 282,108 Short-term and other investments 110,503 92,711 605,798 160,392 Gross investment income 6,929,191 5,607,382 20,206,954 16,611,016 Investment expenses (612,849 ) (628,351 ) (2,034,113 ) (1,909,602 ) Net investment income $ 6,316,342 $ 4,979,031 $ 18,172,841 $ 14,701,414 TLIC and FBLIC are required to hold assets on deposit with various state insurance departments for the benefit of policyholders and other special deposits in accordance with statutory rules and regulations. As of September 30, 2019 December 31, 2018, $4,411,930 $4,376,463, September 30, 2019 December 31, 2018, $4,443,617 $4,292,657, The Company’s mortgage loans by property type as of September 30, 2019 December 31, 2018 (Unaudited) September 30, 2019 December 31, 2018 Residential mortgage loans $ 144,710,078 $ 120,108,297 Commercial mortgage loans by property type Apartment 1,606,409 1,816,870 Industrial 1,630,369 1,156,157 Lodging 111,098 112,494 Office building 3,589,625 2,348,639 Retail 4,856,598 4,507,153 Total commercial mortgage loans by property type 11,794,099 9,941,313 Total mortgage loans $ 156,504,177 $ 130,049,610 There were 16 $3,920,813 90 September 30, 2019. 11 $2,233,575 90 December 31, 2018. There were no September 30, 2019 December 31, 2018. The Company’s investment real estate as of September 30, 2019 December 31, 2018 (Unaudited) September 30, 2019 December 31, 2018 Land - held for the production of income $ 213,160 $ 213,160 Land - held for investment 745,155 745,155 Total land 958,315 958,315 Building - held for the production of income 2,267,557 2,267,557 Less - accumulated depreciation (1,449,787 ) (1,340,671 ) Buildings net of accumulated depreciation 817,770 926,886 Residential real estate - held for sale 212,046 506,830 Total residential real estate 212,046 506,830 Investment real estate, net of accumulated depreciation $ 1,988,131 $ 2,392,031 TLIC owns approximately six one 20,000 one fourth one four three one During 2019, one $99,218 2019, $394,002. $43,185 $350,817. During 2018, $378,411 2018, $209,821. $51,649 $261,470. |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) on the measurement date. The Company also considers the impact on fair value of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity. The Company holds fixed maturity, preferred stock and equity securities that are measured and reported at fair market value on the statement of financial position. The Company determines the fair market values of its financial instruments based on the fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three may Level 1 1 Level 2 1 not 2 Level 3 no 3 not The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the valuation inputs, or their ability to be observed, may 3 3 The Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total September 30, 2019 (Unaudited) Fixed maturity securities, available-for-sale U.S. government and U.S. government agencies $ - $ 1,798,946 $ - $ 1,798,946 States and political subdivisions - 10,521,591 - 10,521,591 Residential mortgage-backed securities - 46,674 - 46,674 Corporate bonds - 141,209,026 - 141,209,026 Asset-backed - 2,318,702 - 2,318,702 Exchange traded securities - 531,600 - 531,600 Foreign bonds - 36,520,250 - 36,520,250 Total fixed maturity securities $ - $ 192,946,789 $ - $ 192,946,789 Preferred stock, available-for-sale $ 51,320 $ - $ - $ 51,320 Equity securities Mutual funds $ - $ 85,040 $ - $ 85,040 Corporate common stock 48,571 - 66,099 114,670 Total equity securities $ 48,571 $ 85,040 $ 66,099 $ 199,710 December 31, 2018 Fixed maturity securities, available-for-sale U.S. government and U.S. government agencies $ - $ 2,704,711 $ - $ 2,704,711 States and political subdivisions - 9,478,032 - 9,478,032 Residential mortgage-backed securities - 51,155 - 51,155 Corporate bonds - 97,964,191 - 97,964,191 Asset-backed - 261,418 - 261,418 Foreign bonds - 20,692,692 - 20,692,692 Total fixed maturity securities $ - $ 131,152,199 $ - $ 131,152,199 Preferred stock, available-for-sale $ 90,580 $ - $ - $ 90,580 Equity securities Mutual funds $ - $ 74,899 $ - $ 74,899 Corporate common stock 59,733 - 64,036 123,769 Total equity securities $ 59,733 $ 74,899 $ 64,036 $ 198,668 As of September 30, 2019 December 31, 2018, 3 two no These private placement stocks represent investments in small insurance holding companies. The fair value for these securities was determined through the use of unobservable assumptions about market participants. The Company has assumed a willing market participant would purchase the securities for the same price as the Company paid until such time as these small insurance holding companies commence significant operations. The joint venture investment with a mortgage loan originator is accounted for under the equity method of accounting. Fair values for Level 1 2 third third The Company analyzes market valuations received to verify reasonableness and to understand the key assumptions used and the sources. Since the fixed maturity securities owned by the Company do not third 2 2 The Company’s preferred stock is included in Level 1 1 2 3. 1 2 not The Company’s fixed maturity and preferred stock available-for-sale and equity securities portfolio is highly liquid and allows for a high percentage of the portfolio to be priced through pricing services. The change in the fair value of the Company’s Level 3 nine September 30, 2019 2018 Unaudited Nine Months Ended September 30, 2019 2018 Beginning balance $ 64,036 $ 61,500 Joint venture investment - 10,200 Joint venture net income 92,956 40,746 Equity security sales - (15,000 ) Joint venture distribution (90,893 ) (34,877 ) Ending balance $ 66,099 $ 62,569 The carrying amount and fair value of the Company’s financial assets and financial liabilities disclosed, but not September 30, 2019 December 31, 2018, Financial instruments disclosed, but not Carrying Fair Amount Value Level 1 Level 2 Level 3 September 30, 2019 (Unaudited) Financial assets Mortgage loans on real estate Commercial $ 11,794,099 $ 11,968,844 $ - $ - $ 11,968,844 Residential 144,710,078 146,437,856 - - 146,437,856 Policy loans 1,950,680 1,950,680 - - 1,950,680 Short-term investments 209,045 209,045 209,045 - - Other long-term investments 72,711,634 89,966,600 - - 89,966,600 Cash and cash equivalents 14,083,748 14,083,748 14,083,748 - - Accrued investment income 5,170,977 5,170,977 - - 5,170,977 Total financial assets $ 250,630,261 $ 269,787,750 $ 14,292,793 $ - $ 255,494,957 Financial liabilities Policyholders' account balances $ 366,988,490 $ 362,154,709 $ - $ - $ 362,154,709 Policy claims 1,453,417 1,453,417 - - 1,453,417 Total financial liabilities $ 368,441,907 $ 363,608,126 $ - $ - $ 363,608,126 December 31, 2018 Financial assets Mortgage loans on real estate Commercial $ 9,941,313 $ 9,698,226 $ - $ - $ 9,698,226 Residential 120,108,297 115,788,967 - - 115,788,967 Policy loans 1,809,339 1,809,339 - - 1,809,339 Short-term investments 896,371 896,371 896,371 - - Other long-term investments 59,255,477 69,641,358 - - 69,641,358 Cash and cash equivalents 29,665,605 29,665,605 29,665,605 - - Accrued investment income 2,672,978 2,672,978 - - 2,672,978 Total financial assets $ 224,349,380 $ 230,172,844 $ 30,561,976 $ - $ 199,610,868 Financial liabilities Policyholders' account balances $ 297,168,411 $ 259,247,412 $ - $ - $ 259,247,412 Policy claims 1,102,257 1,102,257 - - 1,102,257 Total financial liabilities $ 298,270,668 $ 260,349,669 $ - $ - $ 260,349,669 The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment was required to interpret market data to develop these estimates. Accordingly, the estimates are not may The following methods and assumptions were used in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Fixed Maturity Securities , Preferred Stock and Equity Securities The fair value of fixed maturity securities and equity securities are based on the principles previously discussed as Level 1, 2 3. Mortgage Loans on Real Estate The fair values for mortgage loans are estimated using discounted cash flow analyses. For residential mortgage loans, the discount rate used was indexed to the LIBOR yield curve adjusted for an appropriate credit spread. For commercial (includes apartment, industrial, lodging, office building and retail) mortgage loans, the discount rate used was assumed to be the interest rate on the last commercial mortgage acquired by the Company. Cash and Cash Equivalents, Short-Term Investments, Accrued Investment Income and Policy Loans The carrying value of these financial instruments approximates their fair values. Cash and cash equivalents and short-term investments are included in Level 1 Other Long-Term Investments Other long-term investments are comprised of lottery prize receivables and fair value is derived by using a discounted cash flow approach. Projected cash flows are discounted using the average FTSE Pension Liability Index in effect at the end of each period. Investment Contracts – Policyholders’ Account Balances The fair value for liabilities under investment-type insurance contracts (accumulation annuities) is calculated using a discounted cash flow approach. Cash flows are projected using actuarial assumptions and discounted to the valuation date using risk-free rates adjusted for credit risk and the nonperformance risk of the liabilities. The fair values for insurance contracts other than investment-type contracts are not Policy Claims The carrying amounts reported for these liabilities approximate their fair value. |
Note 4 - Segment Data
Note 4 - Segment Data | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 4. Segment Data The Company has a life insurance segment, consisting of the life insurance operations of TLIC and FBLIC, an annuity segment, consisting of the annuity operations of TLIC and FBLIC and a corporate segment. Results for the parent company and the operations of FTCC, after elimination of intercompany amounts, are allocated to the corporate segment. These segments as of September 30, 2019 December 31, 2018 three nine September 30, 2019 2018 Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Revenues: Life insurance operations $ 6,756,186 $ 5,556,358 $ 19,720,057 $ 16,095,222 Annuity operations 5,658,205 4,346,120 16,339,063 12,647,899 Corporate operations 146,086 101,313 504,448 346,865 Total $ 12,560,477 $ 10,003,791 $ 36,563,568 $ 29,089,986 Income before income taxes: Life insurance operations $ (28,606 ) $ 305,976 $ 235,858 $ 605,498 Annuity operations 2,144,230 1,522,702 4,892,901 4,013,123 Corporate operations 121,249 105,768 377,797 301,874 Total $ 2,236,873 $ 1,934,446 $ 5,506,556 $ 4,920,495 Depreciation and amortization expense: Life insurance operations $ 968,174 $ 829,610 $ 2,500,608 $ 3,044,057 Annuity operations 140,374 (15,587 ) 692,530 30,777 Total $ 1,108,548 $ 814,023 $ 3,193,138 $ 3,074,834 (Unaudited) Assets: September 30, 2019 December 31, 2018 Life insurance operations $ 94,967,352 $ 69,756,013 Annuity operations 398,085,552 332,303,028 Assets held in trust under coinsurance agreement 104,509,053 25,494,700 Corporate operations 6,428,352 5,953,109 Total $ 603,990,309 $ 433,506,850 |
Note 5 - Federal Income Taxes
Note 5 - Federal Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 5. Federal Income Taxes The provision for federal income taxes is based on the asset and liability method of accounting for income taxes. Deferred income taxes are provided for the cumulative temporary differences between balances of assets and liabilities determined under GAAP and the balances using tax bases. The Company has no not not 2016 2018 |
Note 6 - Legal Matters and Cont
Note 6 - Legal Matters and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 6 . Legal Matters and Contingent Liabilities A lawsuit filed by the Company and Chairman, President and Chief Executive Officer, Gregg E. Zahn, against former Company Board of Directors member Wayne Pettigrew and Mr. Pettigrew's company, Group & Pension Planners, Inc. (the "Defendants"), concluded on February 17, 2017. No. 2013 03385 The jury concluded that Mr. Pettigrew, while still a member of the Company’s Board of Directors, did, in fact, make untrue statements regarding the Company and Mr. Zahn and committed breaches of his fiduciary duties to the Company and the jury awarded the Company $800,000 $3,500,000 Mr. Pettigrew has appealed this decision but has failed to post an appeal bond. As a consequence, the Company and Mr. Zahn are in the process of executing on the judgments against Mr. Pettigrew’s assets. The Company and Mr. Zahn have so far collected some property and money in the execution process and will continue to execute on the judgments. Any money or property collected to date during the execution of the judgments are held in an escrow by a third not September 30, 2019 Prior to being acquired by TLIC, FBLIC developed, marketed, and sold life insurance products known as “Decreasing Term to 95” January 17, 2013, March 1, 2013, not not 95 not On November 22, 2013, two not November 27, 2017 December 1, 2017 2018, June 11, 2018. $1.85 95 Guaranty fund assessments, brought about by the insolvency of life and health insurers, are levied at the discretion of the various state guaranty fund associations to cover association obligations. In most states, guaranty fund assessments may five |
Note 7 - Line of Credit
Note 7 - Line of Credit | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. On November 8, 2018, $1.5 November 8, 2019. 1% 360 5%. No September 30, 2019 December 31, 2018. |
Note 8 - Other Comprehensive In
Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 8 . Ot her Comprehensive Income (Loss) and Accumulated O ther Comprehensive Income ( L oss) The changes in the components of the Company’s accumulated other comprehensive income (loss) for the three nine September 30, 2019 2018 Unrealized Appreciation Accumulated (Depreciation) on Adjustment to Other Available-For-Sale Deferred Acquisition Comprehensive Securities Costs Income (Loss) Three Months Ended September 30, 2019 and 2018 (Unaudited) Balance as of July 1, 2019 $ 6,589,162 $ (10,234 ) $ 6,578,928 Other comprehensive income before reclassifications, net of tax 5,111,684 (7,180 ) 5,104,504 Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax 269,286 - 269,286 Other comprehensive income 4,842,398 (7,180 ) 4,835,218 Balance as of September 30, 2019 $ 11,431,560 $ (17,414 ) $ 11,414,146 Balance as of July 1, 2018 $ (625,159 ) $ 11,114 $ (614,045 ) Other comprehensive loss before reclassifications, net of tax (566,729 ) 11,221 (555,508 ) Less amounts reclassified from accumulated other comprehensive loss having no credit losses, net of tax 162,307 - 162,307 Other comprehensive loss (729,036 ) 11,221 (717,815 ) Balance as of September 30, 2018 $ (1,354,195 ) $ 22,335 $ (1,331,860 ) Nine Months Ended September 30, 2019 and 2018 (Unaudited) Balance as of January 1, 2019 $ (2,584,643 ) $ 8,012 $ (2,576,631 ) Other comprehensive income before reclassifications, net of tax 14,292,727 (25,426 ) 14,267,301 Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax 276,524 - 276,524 Other comprehensive income 14,016,203 (25,426 ) 13,990,777 Balance as of September 30, 2019 $ 11,431,560 $ (17,414 ) $ 11,414,146 Balance as of January 1, 2018 $ 4,843,061 $ (82,110 ) $ 4,760,951 Other comprehensive loss before reclassifications, net of tax (6,003,761 ) 104,445 (5,899,316 ) Less amounts reclassified from accumulated other comprehensive loss having no credit losses, net of tax 193,495 - 193,495 Other comprehensive loss (6,197,256 ) 104,445 (6,092,811 ) Balance as of September 30, 2018 $ (1,354,195 ) $ 22,335 $ (1,331,860 ) The pretax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit) for each component for the three nine September 30, 2019 2018 Three Months Ended September 30, 2019 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 6,470,486 $ 1,358,802 $ 5,111,684 Reclassification adjustment for net gains included in operations having no credit losses 340,869 71,583 269,286 Net unrealized gains on investments 6,129,617 1,287,219 4,842,398 Adjustment to deferred acquisition costs (9,088 ) (1,908 ) (7,180 ) Total other comprehensive income $ 6,120,529 $ 1,285,311 $ 4,835,218 Three Months Ended September 30, 2018 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (717,379 ) $ (150,650 ) $ (566,729 ) Reclassification adjustment for net gains included in operations having no credit losses 205,453 43,146 162,307 Net unrealized losses on investments (922,832 ) (193,796 ) (729,036 ) Adjustment to deferred acquisition costs 14,204 2,983 11,221 Total other comprehensive loss $ (908,628 ) $ (190,813 ) $ (717,815 ) Nine Months Ended September 30, 2019 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 18,092,060 $ 3,799,333 $ 14,292,727 Reclassification adjustment for net gains included in operations having no credit losses 350,031 73,507 276,524 Net unrealized gains on investments 17,742,029 3,725,826 14,016,203 Adjustment to deferred acquisition costs (32,184 ) (6,758 ) (25,426 ) Total other comprehensive income $ 17,709,845 $ 3,719,068 $ 13,990,777 Nine Months Ended September 30, 2018 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive loss: Change in net unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (7,599,699 ) $ (1,595,938 ) $ (6,003,761 ) Reclassification adjustment for net gains included in operations having no credit losses 244,930 51,435 193,495 Net unrealized losses on investments (7,844,629 ) (1,647,373 ) (6,197,256 ) Adjustment to deferred acquisition costs 132,210 27,765 104,445 Total other comprehensive loss $ (7,712,419 ) $ (1,619,608 ) $ (6,092,811 ) Realized gains and losses on the sales of investments are determined based upon the specific identification method and include provisions for other-than-temporary impairments where appropriate. The pretax and the related income tax components of the amounts reclassified from the Company’s accumulated other comprehensive income (loss) to the Company’s consolidated statement of operations for the three nine September 30, 2019 2018 Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) Reclassification Adjustments 2019 2018 2019 2018 Realized gains on sales of securities (a) $ 340,869 $ 205,453 $ 350,031 $ 244,930 Income tax expense (b) 71,583 43,146 73,507 51,435 Total reclassification adjustments $ 269,286 $ 162,307 $ 276,524 $ 193,495 (a) These items appear within net realized investment gains in the consolidated statements of operations. (b) These items appear within federal income taxes in the consolidated statements of operations. |
Note 9 - Allowance for Loan Los
Note 9 - Allowance for Loan Losses From Mortgage Loans on Real Estate | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Premiums Receivable Note [Text Block] | 9 . Allowance for Loan Losses from Mortgage Loans on Real Estate The allowance for possible loan losses from investments in mortgage loans on real estate is a reserve established through a provision for possible loan losses charged to expense which represents, in the Company’s judgment, the known and inherent credit losses existing in the mortgage loan portfolio. The allowance, in the judgment of the Company, is necessary to reserve for estimated loan losses inherent in the mortgage loan portfolio and reduces the carrying value of investments in mortgage loans on real estate to the estimated net realizable value on the consolidated statement of financial position. While the Company utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the mortgage loan portfolio, the economy and changes in interest rates. The Company’s allowance for possible mortgage loan losses consists of specific valuation allowances established for probable losses on specific loans and a portfolio reserve for probable incurred but not Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the mortgage loan agreement. Factors considered by the Company in determining impairment include payment status, collateral value of the real estate subject to the mortgage loan, and the probability of collecting scheduled principal and interest payments when due. Mortgage loans that experience insignificant payment delays and payment shortfalls generally are not The Company determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the mortgage loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis. As of September 30, 2019, $1,136,128 third September 30, 2019, $851,208 $4,636,498 September 30, 2019 $284,920 $56,983,924 $497,949 $99,520,253 September 30, 2019. As of December 31, 2018, $823,645 third December 31, 2018, $598,803 $4,942,870 December 31, 2018 $224,842 $44,968,471 $424,166 $85,081,139 December 31, 2018. The balances of and changes in the Company’s credit losses related to residential and commercial (includes apartment, industrial, lodging, office building and retail) mortgage loans on real estate as of and for the three nine September 30, 2019 2018 $56,983,924 $40,786,373 September 30, 2019 2018, one third (Unaudited) Three Months Ended September 30, Residential Mortgage Loans Commercial Mortgage Loans Total 2019 2018 2019 2018 2019 2018 Allowance, beginning $ 457,660 $ 372,352 $ 52,441 $ 37,944 $ 510,101 $ 410,296 Charge offs - - - - - - Recoveries - - - - - - Provision (18,978 ) (9,539 ) 6,826 3,141 (12,152 ) (6,398 ) Allowance, ending $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Allowance, ending: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Carrying Values: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 87,726,154 $ 72,543,552 $ 11,794,099 $ 8,175,791 $ 99,520,253 $ 80,719,343 (Unaudited) Nine Months Ended September 30, Residential Mortgage Loans Commercial Mortgage Loans Total 2019 2018 2019 2018 2019 2018 Allowance, beginning $ 374,209 $ 333,789 $ 49,957 $ 9,026 $ 424,166 $ 342,815 Charge offs - - - - - - Recoveries - - - - - - Provision 64,473 29,024 9,310 32,059 73,783 61,083 Allowance, ending $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Allowance, ending: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Carrying Values: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 87,726,154 $ 72,543,552 $ 11,794,099 $ 8,175,791 $ 99,520,253 $ 80,719,343 The Company utilizes the ratio of the carrying value of individual mortgage loans compared to the individual appraisal value to evaluate the credit quality of its mortgage loans on real estate (commonly referred to as the loan-to-value ratio). The Company’s residential and commercial (includes apartment, industrial, lodging, office building and retail) mortgage loans on real estate by credit quality using this ratio as of September 30, 2019 December 31, 2018 Residential Mortgage Loans Commercial Mortgage Loans Total Mortgage Loans (Unaudited) (Unaudited) (Unaudited) Loan-To-Value Ratio September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Over 70% to 80% $ 39,037,227 $ 23,205,637 $ 276,308 $ 280,020 $ 39,313,535 $ 23,485,657 Over 60% to 70% 49,395,386 43,631,465 2,537,102 2,216,436 51,932,488 45,847,901 Over 50% to 60% 29,317,566 24,890,831 1,504,918 752,181 30,822,484 25,643,012 Over 40% to 50% 12,598,526 16,055,231 1,435,918 1,670,263 14,034,444 17,725,494 Over 30% to 40% 7,367,692 5,984,097 2,199,893 3,341,616 9,567,585 9,325,713 Over 20% to 30% 3,351,000 3,249,410 1,135,979 1,429,085 4,486,979 4,678,495 Over 10% to 20% 2,656,648 2,233,102 2,703,981 251,712 5,360,629 2,484,814 10% or less 986,033 858,524 - - 986,033 858,524 Total $ 144,710,078 $ 120,108,297 $ 11,794,099 $ 9,941,313 $ 156,504,177 $ 130,049,610 |
Note 10 - Coinsurance
Note 10 - Coinsurance | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | 10. Coinsurance Effective January 1, 2018, 90% December 31, 2017 In accordance with this annuity coinsurance agreement, TLIC holds assets and recognizes a funds withheld liability for the benefit of the assuming company in an amount at least equal to the annuity reserves in accordance with U.S. statutory accounting principles generated by this ceded business. In addition, the assuming company maintains a trust related to this ceded business amounting to at least an additional 4% may 30 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Stockholders' Equity, Policy [Policy Text Block] | Company Capitalization The Company raised $1,450,000 two 2004 $25,669,480 two one June 22, 2005 February 23, 2007; June 29, 2010 April 30, 2012 August 15, 2012 March 8, 2013. 7,347,488 $3,624,518 702,685 two 2011 2012 $5,270,138 $5,270,138 The Company has also purchased 247,580 $893,947 |
Business Combinations Policy [Policy Text Block] | Acquisition s On December 23, 2008, 100% $2,695,234 $195,234. On December 31, 2008, 15 $250,000 6% On August 31, 2009, two On December 28, 2011, 100% $13,855,129. On April 28, 2015, $3,055,916. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10 10 X. not The results of operations for the nine September 30, 2019 not December 31, 2019 not 10 December 31, 2018. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made in the prior year and prior quarter financial statements to conform to current year and current quarter classifications. These reclassifications had no |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may may |
Common Stock Policy [Policy Text Block] | Common Stock Common stock is fully paid, non-assessable and has a par value of $.01 |
Treasury Stock [Policy Text Block] | Treasury Stock Treasury stock, representing shares of the Company’s common stock that have been reacquired after having been issued and fully paid, is recorded at the reacquisition cost and the shares are no |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management has evaluated all events subsequent to September 30, 2019 On October 2, 2019 ● an amendment and restatement of the Certificate of Incorporation to authorize 50,000,000 $0.01 40,000,000 10,000,000 ● an amendment and restatement of the Certificate of Incorporation to automatically reclassify each issued and outstanding share of the Company’s existing Common Stock as one 1 one 1 ● First Trinity Financial Corporation’s 2019 These amendments, restatements and plans will be implemented during late 2019 2020. On November 8, 2019, $1.5 September 15, 2020. 1% 360 5%. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Leases In February 2016, 2018 11 12 two no not In July 2018, February 2016 ( 2018 11 may one December 15, 2018. In December 2018, 2018 20 not not The Company adopted this guidance in first 2019. 2019 not Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, 2016 13 The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no The updated guidance was effective for reporting periods beginning after December 15, 2019. December 15, 2022. December 15, 2018. not Intangibles - Goodwill and Other In January 2017, 2017 04 2 1 2 1 1 1 may not 2 1. The updated guidance is effective for reporting periods beginning after December 15, 2019 January 1, 2017. not Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, 2018 12 The updated guidance was effective for reporting periods beginning after December 15, 2020. December 15, 2023. may With respect to the market risk benefits, an insurance entity should apply the amendments retrospectively as of the beginning of the earliest period presented. The Company expects that the impact on the Company’s results of operations, financial position and liquidity at the date of adoption of the updated guidance in 2024 Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, 2018 13 December 15, 2019. 2020 not |
Supplemental Disclosure - Cas_2
Supplemental Disclosure - Cash and Non-cash Impact on Investing Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 Reduction in mortgage loans due to foreclosure $ 99,218 $ 378,411 Investment real estate held-for-sale acquired through foreclosure (99,218 ) (378,411 ) Net cash used in investing activities $ - $ - |
Note 2 - Investments (Tables)
Note 2 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Gross Gross Amortized Cost Unrealized Unrealized Fair or Cost Gains Losses Value September 30, 2019 (Unaudited) Fixed maturity securities U.S. government and U.S. government agencies $ 1,804,605 $ 1,072 $ 6,731 $ 1,798,946 States and political subdivisions 9,905,883 618,447 2,739 10,521,591 Residential mortgage-backed securities 20,331 26,343 - 46,674 Corporate bonds 130,012,492 11,427,243 230,709 141,209,026 Asset-backed 2,201,471 117,231 - 2,318,702 Exchange traded securities 500,000 31,600 - 531,600 Foreign bonds 34,033,036 2,861,361 374,147 36,520,250 Total fixed maturity securities 178,477,818 15,083,297 614,326 192,946,789 Preferred stock 49,945 1,375 - 51,320 Equity securities Mutual funds 91,981 - 6,941 85,040 Corporate common stock 90,205 24,465 - 114,670 Total equity securities 182,186 24,465 6,941 199,710 Total fixed maturity, preferred stock and equity securities $ 178,709,949 $ 15,109,137 $ 621,267 $ 193,197,819 December 31, 2018 Fixed maturity securities U.S. government and U.S. government agencies $ 2,793,681 $ 2,769 $ 91,739 $ 2,704,711 States and political subdivisions 9,295,973 215,000 32,941 9,478,032 Residential mortgage-backed securities 23,694 27,461 - 51,155 Corporate bonds 100,360,468 823,991 3,220,268 97,964,191 Asset-backed 253,598 7,820 - 261,418 Foreign bonds 21,687,103 75,525 1,069,936 20,692,692 Total fixed maturity securities 134,414,517 1,152,566 4,414,884 131,152,199 Preferred stock 99,945 - 9,365 90,580 Equity securities Mutual funds 91,981 - 17,082 74,899 Corporate common stock 95,141 28,628 - 123,769 Total equity securities 187,122 28,628 17,082 198,668 Total fixed maturity, preferred stock and equity securities $ 134,701,584 $ 1,181,194 $ 4,441,331 $ 131,441,447 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Unrealized Number of Fair Value Loss Securities September 30, 2019 (Unaudited) Fixed maturity securities Less than 12 months in an unrealized loss position U.S. government and U.S. government agencies $ 650,236 $ 4,217 2 States and political subdivisions 102,655 2,739 1 Corporate bonds 1,532,983 87,107 5 Foreign bonds 349,990 11 1 Total less than 12 months in an unrealized loss position 2,635,864 94,074 9 More than 12 months in an unrealized loss position U.S. government and U.S. government agencies 447,760 2,514 2 Corporate bonds 1,643,185 143,602 8 Foreign bonds 1,470,020 374,136 6 Total more than 12 months in an unrealized loss position 3,560,965 520,252 16 Total fixed maturity securities in an unrealized loss position 6,196,829 614,326 25 Equity securities (mutual funds), less than 12 months in an unrealized loss position 85,040 6,941 1 Total fixed maturity, preferred stock and equity securities in an unrealized loss position $ 6,281,869 $ 621,267 $ 26 December 31, 2018 Fixed maturity securities Less than 12 months in an unrealized loss position U.S. government and U.S. government agencies $ 991,660 $ 2,419 1 States and political subdivisions 1,066,743 7,948 6 Corporate bonds 58,506,980 2,154,898 215 Foreign bonds 14,554,291 852,120 50 Total less than 12 months in an unrealized loss position 75,119,674 3,017,385 272 More than 12 months in an unrealized loss position U.S. government and U.S. government agencies 1,590,655 89,320 6 States and political subdivisions 518,969 24,993 4 Corporate bonds 7,107,831 1,065,370 30 Foreign bonds 1,376,680 217,816 5 Total more than 12 months in an unrealized loss position 10,594,135 1,397,499 45 Total fixed maturity securities in an unrealized loss position 85,713,809 4,414,884 317 Preferred stock, less than 12 months in an unrealized loss position 90,580 9,365 2 Equity securities (mutual funds), less than 12 months in an unrealized loss position 74,899 17,082 1 Total fixed maturity, preferred stock and equity securities in an unrealized loss position $ 85,879,288 $ 4,441,331 $ 320 |
Unrealized Gain (Loss) on Investments [Table Text Block] | (Unaudited) September 30, 2019 December 31, 2018 Unrealized appreciation (depreciation) on available-for-sale securities $ 14,470,346 $ (3,271,683 ) Adjustment to deferred acquisition costs (22,060 ) 10,124 Deferred income taxes (3,034,140 ) 684,928 Net unrealized appreciation (depreciation) on available-for-sale securities $ 11,414,146 $ (2,576,631 ) |
Realized Gain (Loss) on Investments [Table Text Block] | Three Months Ended September 30, (Unaudited) Fixed Maturity Securities Equity Securities Investment Real Estate 2019 2018 2019 2018 2019 2018 Proceeds $ 3,107,881 $ 12,320,142 $ - $ 346,535 $ 97,253 $ 206,617 Gross realized gains 349,297 305,883 - 25,683 - 52,971 Gross realized losses (8,428 ) (100,430 ) - (58 ) (1,965 ) - Three Months Ended September 30, (Unaudited) Preferred Stock Securities 2019 2018 Proceeds $ 50,000 $ - Gross realized gains - - Gross realized losses - - Nine Months Ended September 30, (Unaudited) Fixed Maturity Securities Equity Securities Investment Real Estate 2019 2018 2019 2018 2019 2018 Proceeds $ 21,235,794 $ 20,809,074 $ 19,371 $ 361,947 $ 350,817 $ 261,470 Gross realized gains 620,876 386,403 12,372 25,790 5,158 52,971 Gross realized losses (270,845 ) (141,473 ) - (58 ) (48,343 ) (1,322 ) Nine Months Ended September 30, (Unaudited) Preferred Stock Securities 2019 2018 Proceeds $ 50,000 $ - Gross realized gains - - Gross realized losses - - |
Investment Income [Table Text Block] | Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Change in unrealized investment gains (losses): Available-for-sale securities: Fixed maturity securities $ 6,128,777 $ (921,992 ) $ 17,731,289 $ (7,773,581 ) Preferred stock 840 (840 ) 10,740 (2,540 ) Net realized investment gains (losses): Available-for-sale securities: Fixed maturity securities 340,869 205,453 350,031 244,930 Equity securities, sale of securities - 25,625 12,372 25,732 Equity securities, changes in fair value 204 (38,990 ) 5,978 (52,780 ) Investment real estate (1,965 ) 52,971 (43,185 ) 51,649 Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Fixed maturity securities $ 1,985,449 $ 1,492,224 $ 5,592,131 $ 4,792,648 Preferred stock and equity securities 38,646 24,280 106,392 57,397 Other long-term investments 1,284,234 995,100 3,601,231 2,974,163 Mortgage loans 3,406,458 2,877,910 9,999,923 8,253,828 Policy loans 35,270 31,055 101,038 90,480 Real estate 68,631 94,102 200,441 282,108 Short-term and other investments 110,503 92,711 605,798 160,392 Gross investment income 6,929,191 5,607,382 20,206,954 16,611,016 Investment expenses (612,849 ) (628,351 ) (2,034,113 ) (1,909,602 ) Net investment income $ 6,316,342 $ 4,979,031 $ 18,172,841 $ 14,701,414 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (Unaudited) September 30, 2019 December 31, 2018 Residential mortgage loans $ 144,710,078 $ 120,108,297 Commercial mortgage loans by property type Apartment 1,606,409 1,816,870 Industrial 1,630,369 1,156,157 Lodging 111,098 112,494 Office building 3,589,625 2,348,639 Retail 4,856,598 4,507,153 Total commercial mortgage loans by property type 11,794,099 9,941,313 Total mortgage loans $ 156,504,177 $ 130,049,610 |
Schedule of Real Estate Properties [Table Text Block] | (Unaudited) September 30, 2019 December 31, 2018 Land - held for the production of income $ 213,160 $ 213,160 Land - held for investment 745,155 745,155 Total land 958,315 958,315 Building - held for the production of income 2,267,557 2,267,557 Less - accumulated depreciation (1,449,787 ) (1,340,671 ) Buildings net of accumulated depreciation 817,770 926,886 Residential real estate - held for sale 212,046 506,830 Total residential real estate 212,046 506,830 Investment real estate, net of accumulated depreciation $ 1,988,131 $ 2,392,031 |
Available For Sale Fixed Maturity Securities [Member] | |
Notes Tables | |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 30, 2019 (Unaudited) Fixed Maturity Available-For-Sale Securities Other Long-Term Investments Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,603,868 $ 2,631,429 $ 10,658,928 $ 10,856,012 Due after one year through five years 27,096,934 27,907,661 33,468,523 37,526,966 Due after five years through ten years 63,097,980 67,347,617 20,570,733 27,076,173 Due after ten years 85,658,705 95,013,408 8,013,450 14,507,449 Due at multiple maturity dates 20,331 46,674 - - $ 178,477,818 $ 192,946,789 $ 72,711,634 $ 89,966,600 |
Note 3 - Fair Value Measureme_2
Note 3 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Level 1 Level 2 Level 3 Total September 30, 2019 (Unaudited) Fixed maturity securities, available-for-sale U.S. government and U.S. government agencies $ - $ 1,798,946 $ - $ 1,798,946 States and political subdivisions - 10,521,591 - 10,521,591 Residential mortgage-backed securities - 46,674 - 46,674 Corporate bonds - 141,209,026 - 141,209,026 Asset-backed - 2,318,702 - 2,318,702 Exchange traded securities - 531,600 - 531,600 Foreign bonds - 36,520,250 - 36,520,250 Total fixed maturity securities $ - $ 192,946,789 $ - $ 192,946,789 Preferred stock, available-for-sale $ 51,320 $ - $ - $ 51,320 Equity securities Mutual funds $ - $ 85,040 $ - $ 85,040 Corporate common stock 48,571 - 66,099 114,670 Total equity securities $ 48,571 $ 85,040 $ 66,099 $ 199,710 December 31, 2018 Fixed maturity securities, available-for-sale U.S. government and U.S. government agencies $ - $ 2,704,711 $ - $ 2,704,711 States and political subdivisions - 9,478,032 - 9,478,032 Residential mortgage-backed securities - 51,155 - 51,155 Corporate bonds - 97,964,191 - 97,964,191 Asset-backed - 261,418 - 261,418 Foreign bonds - 20,692,692 - 20,692,692 Total fixed maturity securities $ - $ 131,152,199 $ - $ 131,152,199 Preferred stock, available-for-sale $ 90,580 $ - $ - $ 90,580 Equity securities Mutual funds $ - $ 74,899 $ - $ 74,899 Corporate common stock 59,733 - 64,036 123,769 Total equity securities $ 59,733 $ 74,899 $ 64,036 $ 198,668 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Unaudited Nine Months Ended September 30, 2019 2018 Beginning balance $ 64,036 $ 61,500 Joint venture investment - 10,200 Joint venture net income 92,956 40,746 Equity security sales - (15,000 ) Joint venture distribution (90,893 ) (34,877 ) Ending balance $ 66,099 $ 62,569 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying Fair Amount Value Level 1 Level 2 Level 3 September 30, 2019 (Unaudited) Financial assets Mortgage loans on real estate Commercial $ 11,794,099 $ 11,968,844 $ - $ - $ 11,968,844 Residential 144,710,078 146,437,856 - - 146,437,856 Policy loans 1,950,680 1,950,680 - - 1,950,680 Short-term investments 209,045 209,045 209,045 - - Other long-term investments 72,711,634 89,966,600 - - 89,966,600 Cash and cash equivalents 14,083,748 14,083,748 14,083,748 - - Accrued investment income 5,170,977 5,170,977 - - 5,170,977 Total financial assets $ 250,630,261 $ 269,787,750 $ 14,292,793 $ - $ 255,494,957 Financial liabilities Policyholders' account balances $ 366,988,490 $ 362,154,709 $ - $ - $ 362,154,709 Policy claims 1,453,417 1,453,417 - - 1,453,417 Total financial liabilities $ 368,441,907 $ 363,608,126 $ - $ - $ 363,608,126 December 31, 2018 Financial assets Mortgage loans on real estate Commercial $ 9,941,313 $ 9,698,226 $ - $ - $ 9,698,226 Residential 120,108,297 115,788,967 - - 115,788,967 Policy loans 1,809,339 1,809,339 - - 1,809,339 Short-term investments 896,371 896,371 896,371 - - Other long-term investments 59,255,477 69,641,358 - - 69,641,358 Cash and cash equivalents 29,665,605 29,665,605 29,665,605 - - Accrued investment income 2,672,978 2,672,978 - - 2,672,978 Total financial assets $ 224,349,380 $ 230,172,844 $ 30,561,976 $ - $ 199,610,868 Financial liabilities Policyholders' account balances $ 297,168,411 $ 259,247,412 $ - $ - $ 259,247,412 Policy claims 1,102,257 1,102,257 - - 1,102,257 Total financial liabilities $ 298,270,668 $ 260,349,669 $ - $ - $ 260,349,669 |
Note 4 - Segment Data (Tables)
Note 4 - Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) 2019 2018 2019 2018 Revenues: Life insurance operations $ 6,756,186 $ 5,556,358 $ 19,720,057 $ 16,095,222 Annuity operations 5,658,205 4,346,120 16,339,063 12,647,899 Corporate operations 146,086 101,313 504,448 346,865 Total $ 12,560,477 $ 10,003,791 $ 36,563,568 $ 29,089,986 Income before income taxes: Life insurance operations $ (28,606 ) $ 305,976 $ 235,858 $ 605,498 Annuity operations 2,144,230 1,522,702 4,892,901 4,013,123 Corporate operations 121,249 105,768 377,797 301,874 Total $ 2,236,873 $ 1,934,446 $ 5,506,556 $ 4,920,495 Depreciation and amortization expense: Life insurance operations $ 968,174 $ 829,610 $ 2,500,608 $ 3,044,057 Annuity operations 140,374 (15,587 ) 692,530 30,777 Total $ 1,108,548 $ 814,023 $ 3,193,138 $ 3,074,834 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | (Unaudited) Assets: September 30, 2019 December 31, 2018 Life insurance operations $ 94,967,352 $ 69,756,013 Annuity operations 398,085,552 332,303,028 Assets held in trust under coinsurance agreement 104,509,053 25,494,700 Corporate operations 6,428,352 5,953,109 Total $ 603,990,309 $ 433,506,850 |
Note 8 - Other Comprehensive _2
Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized Appreciation Accumulated (Depreciation) on Adjustment to Other Available-For-Sale Deferred Acquisition Comprehensive Securities Costs Income (Loss) Three Months Ended September 30, 2019 and 2018 (Unaudited) Balance as of July 1, 2019 $ 6,589,162 $ (10,234 ) $ 6,578,928 Other comprehensive income before reclassifications, net of tax 5,111,684 (7,180 ) 5,104,504 Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax 269,286 - 269,286 Other comprehensive income 4,842,398 (7,180 ) 4,835,218 Balance as of September 30, 2019 $ 11,431,560 $ (17,414 ) $ 11,414,146 Balance as of July 1, 2018 $ (625,159 ) $ 11,114 $ (614,045 ) Other comprehensive loss before reclassifications, net of tax (566,729 ) 11,221 (555,508 ) Less amounts reclassified from accumulated other comprehensive loss having no credit losses, net of tax 162,307 - 162,307 Other comprehensive loss (729,036 ) 11,221 (717,815 ) Balance as of September 30, 2018 $ (1,354,195 ) $ 22,335 $ (1,331,860 ) Nine Months Ended September 30, 2019 and 2018 (Unaudited) Balance as of January 1, 2019 $ (2,584,643 ) $ 8,012 $ (2,576,631 ) Other comprehensive income before reclassifications, net of tax 14,292,727 (25,426 ) 14,267,301 Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax 276,524 - 276,524 Other comprehensive income 14,016,203 (25,426 ) 13,990,777 Balance as of September 30, 2019 $ 11,431,560 $ (17,414 ) $ 11,414,146 Balance as of January 1, 2018 $ 4,843,061 $ (82,110 ) $ 4,760,951 Other comprehensive loss before reclassifications, net of tax (6,003,761 ) 104,445 (5,899,316 ) Less amounts reclassified from accumulated other comprehensive loss having no credit losses, net of tax 193,495 - 193,495 Other comprehensive loss (6,197,256 ) 104,445 (6,092,811 ) Balance as of September 30, 2018 $ (1,354,195 ) $ 22,335 $ (1,331,860 ) |
Comprehensive Income (Loss) [Table Text Block] | Three Months Ended September 30, 2019 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 6,470,486 $ 1,358,802 $ 5,111,684 Reclassification adjustment for net gains included in operations having no credit losses 340,869 71,583 269,286 Net unrealized gains on investments 6,129,617 1,287,219 4,842,398 Adjustment to deferred acquisition costs (9,088 ) (1,908 ) (7,180 ) Total other comprehensive income $ 6,120,529 $ 1,285,311 $ 4,835,218 Three Months Ended September 30, 2018 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (717,379 ) $ (150,650 ) $ (566,729 ) Reclassification adjustment for net gains included in operations having no credit losses 205,453 43,146 162,307 Net unrealized losses on investments (922,832 ) (193,796 ) (729,036 ) Adjustment to deferred acquisition costs 14,204 2,983 11,221 Total other comprehensive loss $ (908,628 ) $ (190,813 ) $ (717,815 ) Nine Months Ended September 30, 2019 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive income: Change in net unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 18,092,060 $ 3,799,333 $ 14,292,727 Reclassification adjustment for net gains included in operations having no credit losses 350,031 73,507 276,524 Net unrealized gains on investments 17,742,029 3,725,826 14,016,203 Adjustment to deferred acquisition costs (32,184 ) (6,758 ) (25,426 ) Total other comprehensive income $ 17,709,845 $ 3,719,068 $ 13,990,777 Nine Months Ended September 30, 2018 (Unaudited) Income Tax Pretax Expense (Benefit) Net of Tax Other comprehensive loss: Change in net unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (7,599,699 ) $ (1,595,938 ) $ (6,003,761 ) Reclassification adjustment for net gains included in operations having no credit losses 244,930 51,435 193,495 Net unrealized losses on investments (7,844,629 ) (1,647,373 ) (6,197,256 ) Adjustment to deferred acquisition costs 132,210 27,765 104,445 Total other comprehensive loss $ (7,712,419 ) $ (1,619,608 ) $ (6,092,811 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Three Months Ended September 30, (Unaudited) Nine Months Ended September 30, (Unaudited) Reclassification Adjustments 2019 2018 2019 2018 Realized gains on sales of securities (a) $ 340,869 $ 205,453 $ 350,031 $ 244,930 Income tax expense (b) 71,583 43,146 73,507 51,435 Total reclassification adjustments $ 269,286 $ 162,307 $ 276,524 $ 193,495 |
Note 9 - Allowance for Loan L_2
Note 9 - Allowance for Loan Losses From Mortgage Loans on Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | (Unaudited) Three Months Ended September 30, Residential Mortgage Loans Commercial Mortgage Loans Total 2019 2018 2019 2018 2019 2018 Allowance, beginning $ 457,660 $ 372,352 $ 52,441 $ 37,944 $ 510,101 $ 410,296 Charge offs - - - - - - Recoveries - - - - - - Provision (18,978 ) (9,539 ) 6,826 3,141 (12,152 ) (6,398 ) Allowance, ending $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Allowance, ending: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Carrying Values: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 87,726,154 $ 72,543,552 $ 11,794,099 $ 8,175,791 $ 99,520,253 $ 80,719,343 (Unaudited) Nine Months Ended September 30, Residential Mortgage Loans Commercial Mortgage Loans Total 2019 2018 2019 2018 2019 2018 Allowance, beginning $ 374,209 $ 333,789 $ 49,957 $ 9,026 $ 424,166 $ 342,815 Charge offs - - - - - - Recoveries - - - - - - Provision 64,473 29,024 9,310 32,059 73,783 61,083 Allowance, ending $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Allowance, ending: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 438,682 $ 362,813 $ 59,267 $ 41,085 $ 497,949 $ 403,898 Carrying Values: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment $ 87,726,154 $ 72,543,552 $ 11,794,099 $ 8,175,791 $ 99,520,253 $ 80,719,343 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Residential Mortgage Loans Commercial Mortgage Loans Total Mortgage Loans (Unaudited) (Unaudited) (Unaudited) Loan-To-Value Ratio September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Over 70% to 80% $ 39,037,227 $ 23,205,637 $ 276,308 $ 280,020 $ 39,313,535 $ 23,485,657 Over 60% to 70% 49,395,386 43,631,465 2,537,102 2,216,436 51,932,488 45,847,901 Over 50% to 60% 29,317,566 24,890,831 1,504,918 752,181 30,822,484 25,643,012 Over 40% to 50% 12,598,526 16,055,231 1,435,918 1,670,263 14,034,444 17,725,494 Over 30% to 40% 7,367,692 5,984,097 2,199,893 3,341,616 9,567,585 9,325,713 Over 20% to 30% 3,351,000 3,249,410 1,135,979 1,429,085 4,486,979 4,678,495 Over 10% to 20% 2,656,648 2,233,102 2,703,981 251,712 5,360,629 2,484,814 10% or less 986,033 858,524 - - 986,033 858,524 Total $ 144,710,078 $ 120,108,297 $ 11,794,099 $ 9,941,313 $ 156,504,177 $ 130,049,610 |
Supplemental Disclosure - Cas_3
Supplemental Disclosure - Cash and Non-cash Impact on Investing Activities (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Residential Mortgage [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Foreclosure | $ 99,218 | $ 378,411 |
Supplemental Disclosure - Cas_4
Supplemental Disclosure - Cash and Non-cash Impact on Investing Activities - Supplement Disclosures to Consolidated Statements of Cash Flows (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Reduction in mortgage loans due to foreclosure | $ 99,218 | $ 378,411 |
Investment real estate held-for-sale acquired through foreclosure | (99,218) | (378,411) |
Net cash used in investing activities |
Note 1 - Organization and Sig_2
Note 1 - Organization and Significant Accounting Policies (Details Textual) | Nov. 08, 2019USD ($) | Apr. 28, 2015USD ($) | Dec. 28, 2011USD ($) | Dec. 31, 2008USD ($) | Dec. 23, 2008USD ($) | Sep. 30, 2019$ / sharesshares | Dec. 31, 2004USD ($) | Dec. 31, 2012USD ($)shares | Dec. 31, 2015USD ($)shares | Mar. 08, 2013USD ($) | Mar. 08, 2013USD ($)shares | Oct. 02, 2019$ / sharesshares | Jun. 30, 2019$ / shares | Dec. 31, 2018$ / sharesshares | Nov. 08, 2018USD ($) | Aug. 31, 2009 |
Proceeds from Issuance of Private Placement | $ 1,450,000 | |||||||||||||||
Number Of Private Placements | 2 | 1 | ||||||||||||||
Proceeds from Issuance Initial Public Offering | $ 25,669,480 | |||||||||||||||
Number of Public Offerings | 2 | |||||||||||||||
Common Stock Dividends, Shares | shares | 702,685 | |||||||||||||||
Number of Stock Dividends | 2 | |||||||||||||||
Treasury Stock, Shares, Acquired | shares | 247,580 | |||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 893,947 | |||||||||||||||
Number of Subsidiaries Merged | 2 | |||||||||||||||
Liabilities Assumed Under Reinsurance Assumption Agreement | $ 3,055,916 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Common Stock, Shares Authorized | shares | 20,000,000 | 20,000,000 | ||||||||||||||
Line of Credit [Member] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | |||||||||||||||
Line of Credit [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||||||
Line of Credit [Member] | Prime Rate [Member] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||||||||||||||
Common Stock, Shares Authorized | shares | 50,000,000 | |||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | |||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | Prime Rate [Member] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||
Subsequent Event [Member] | Common Class A [Member] | ||||||||||||||||
Common Stock, Shares Authorized | shares | 40,000,000 | |||||||||||||||
Subsequent Event [Member] | Common Class B [Member] | ||||||||||||||||
Common Stock, Shares Authorized | shares | 10,000,000 | |||||||||||||||
Retained Earnings [Member] | ||||||||||||||||
Dividends, Total | $ 5,270,138 | |||||||||||||||
Common Stock Including Additional Paid in Capital [Member] | ||||||||||||||||
Stock Issued During Period, Value, Stock Dividend | $ 5,270,138 | |||||||||||||||
Term Products 10 Year [Member] | ||||||||||||||||
Term Products Number of Years | 10 years | |||||||||||||||
Term Products 15 Year [Member] | ||||||||||||||||
Term Products Number of Years | 15 years | |||||||||||||||
Term Products 20 Year [Member] | ||||||||||||||||
Term Products Number of Years | 20 years | |||||||||||||||
Term Products 30 Year [Member] | ||||||||||||||||
Term Products Number of Years | 30 years | |||||||||||||||
Trinity Life Insurance Company [Member] | Family Benefit Life Insurance Company [Member] | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||||||||
Business Combination, Consideration Transferred, Total | $ 13,855,129 | |||||||||||||||
First Trinity Financial Corporation [Member] | First Life America Corporation [Member | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||||||||
Business Combination, Consideration Transferred, Total | $ 2,695,234 | |||||||||||||||
Business Combination, Acquisition Related Costs | $ 195,234 | |||||||||||||||
Debt Instrument, Term | 15 years | |||||||||||||||
Debt Instrument, Face Amount | $ 250,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||||||
Trinity Life Insurance Company [Member] | ||||||||||||||||
Wholly Owned Subsidiary Ownership Percentage | 100.00% | |||||||||||||||
Family Benefit Life Insurance Company [Member] | Trinity Life Insurance Company [Member] | ||||||||||||||||
Wholly Owned Subsidiary Ownership Percentage | 100.00% | |||||||||||||||
First Trinity Capital Corporation [Member] | ||||||||||||||||
Wholly Owned Subsidiary Ownership Percentage | 100.00% | |||||||||||||||
First Trinity Capital Corporation [Member] | First Life America Corporation [Member | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 7,347,488 | |||||||||||||||
Payments of Stock Issuance Costs | $ 3,624,518 |
Note 2 - Investments (Details T
Note 2 - Investments (Details Textual) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)ft²a | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 26 | 320 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | $ 621,267 | $ 4,441,331 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 6,281,869 | 85,879,288 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held, Ending Balance | 0 | $ 0 | |
Deposit Assets, Total | 4,411,930 | 4,376,463 | |
Other Assets, Fair Value Disclosure | $ 4,443,619 | $ 4,292,657 | |
Number Of Loans Past Due | 16 | 11 | |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 3,920,813 | $ 2,233,575 | |
Past Due Loans, Term Past Due | 90 days | 90 days | |
Number of Mortgage Loans in Default | 0 | 0 | |
Real Estate Investments, Net, Total | $ 1,988,131 | $ 2,392,031 | |
Proceeds from Sale of Real Estate Held-for-investment, Total | 350,817 | 261,470 | |
Residential Mortgage [Member] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Foreclosure | 99,218 | 378,411 | |
Real Estate Investments, Net, Total | 394,002 | 209,821 | |
Gains (Losses) on Sales of Investment Real Estate | (43,185) | 51,649 | |
Proceeds from Sale of Real Estate Held-for-investment, Total | $ 350,817 | $ 261,470 | |
Topeka Kansas [Member] | Trinity Life Insurance Company [Member] | |||
Area of Land | a | 6.5 | ||
Topeka Kansas [Member] | Trinity Life Insurance Company [Member] | Held for the Production of Income [Member] | Office Building [Member] | |||
Area of Real Estate Property | ft² | 20,000 | ||
Jefferson City Missouri [Member] | FBLIC [Member] | Assets Held-for-sale not Part of a Disposal Group [Member] | |||
Area of Land | a | 0.5 | ||
Debt Securities [Member] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 25 | 317 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | $ 614,326 | $ 4,414,884 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 6,196,829 | 85,713,809 | |
Available-for-sale Securities Continuous Unrealized Loss Position Amortized Cost | $ 6,811,155 | $ 90,128,693 | |
Fair Value to Cost Ratio | 91.00% | 95.00% | |
Fixed Maturity Securities, Investment Grade Percentage | 97.00% | 96.00% | |
Preferred Stock [Member] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | $ 9,365 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 90,580 | ||
Available-for-sale Securities Continuous Unrealized Loss Position Amortized Cost | $ 99,945 | ||
Fair Value to Cost Ratio | 91.00% | ||
Equity Securities [Member] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 1 | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | $ 6,941 | $ 17,082 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 85,040 | 74,899 | |
Available-for-sale Securities Continuous Unrealized Loss Position Amortized Cost | $ 91,981 | $ 91,981 | |
Fair Value to Cost Ratio | 92.00% | 81.00% | |
Lottery Prize Cash Flows [Member] | |||
Other Investments, Total | $ 72,711,634 | $ 59,255,477 |
Note 2 - Investments - Availabl
Note 2 - Investments - Available-for-sale Fixed Maturity and Equity Securities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Securities, amortized cost | $ 178,709,949 | $ 134,701,584 |
Securities, gross unrealized gains | 15,109,137 | 1,181,194 |
Securities, gross unrealized losses | 621,267 | 4,441,331 |
Available-for-sale securities | 193,197,819 | 131,441,447 |
US Treasury and Government [Member] | ||
Securities, amortized cost | 1,804,605 | 2,793,681 |
Securities, gross unrealized gains | 1,072 | 2,769 |
Securities, gross unrealized losses | 6,731 | 91,739 |
Available-for-sale securities | 1,798,946 | 2,704,711 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities, amortized cost | 9,905,883 | 9,295,973 |
Securities, gross unrealized gains | 618,447 | 215,000 |
Securities, gross unrealized losses | 2,739 | 32,941 |
Available-for-sale securities | 10,521,591 | 9,478,032 |
Residential Mortgage Backed Securities [Member] | ||
Securities, amortized cost | 20,331 | 23,694 |
Securities, gross unrealized gains | 26,343 | 27,461 |
Securities, gross unrealized losses | ||
Available-for-sale securities | 46,674 | 51,155 |
Corporate Debt Securities [Member] | ||
Securities, amortized cost | 130,012,492 | 100,360,468 |
Securities, gross unrealized gains | 11,427,243 | 823,991 |
Securities, gross unrealized losses | 230,709 | 3,220,268 |
Available-for-sale securities | 141,209,026 | 97,964,191 |
Asset-backed Securities [Member] | ||
Securities, amortized cost | 2,201,471 | 253,598 |
Securities, gross unrealized gains | 117,231 | 7,820 |
Securities, gross unrealized losses | ||
Available-for-sale securities | 2,318,702 | 261,418 |
Debt Security, Government, Non-US [Member] | ||
Securities, amortized cost | 34,033,036 | 21,687,103 |
Securities, gross unrealized gains | 2,861,361 | 75,525 |
Securities, gross unrealized losses | 374,147 | 1,069,936 |
Available-for-sale securities | 36,520,250 | 20,692,692 |
Debt Securities [Member] | ||
Securities, amortized cost | 178,477,818 | 134,414,517 |
Securities, gross unrealized gains | 15,083,297 | 1,152,566 |
Securities, gross unrealized losses | 614,326 | 4,414,884 |
Available-for-sale securities | 192,946,789 | 131,152,199 |
Preferred Stock [Member] | ||
Securities, amortized cost | 49,945 | 99,945 |
Securities, gross unrealized gains | 1,375 | |
Securities, gross unrealized losses | 9,365 | |
Available-for-sale securities | 51,320 | 90,580 |
Exchange-traded Debt Securities [Member] | ||
Securities, amortized cost | 500,000 | |
Securities, gross unrealized gains | 31,600 | |
Securities, gross unrealized losses | ||
Available-for-sale securities | 531,600 | |
Mutual Fund [Member] | ||
Securities, amortized cost | 91,981 | 91,981 |
Securities, gross unrealized gains | ||
Securities, gross unrealized losses | 6,941 | 17,082 |
Available-for-sale securities | 85,040 | 74,899 |
Common Stock [Member] | ||
Securities, amortized cost | 90,205 | 95,141 |
Securities, gross unrealized gains | 24,465 | 28,628 |
Securities, gross unrealized losses | ||
Available-for-sale securities | 114,670 | 123,769 |
Equity Securities [Member] | ||
Securities, amortized cost | 182,186 | 187,122 |
Securities, gross unrealized gains | 24,465 | 28,628 |
Securities, gross unrealized losses | 6,941 | 17,082 |
Available-for-sale securities | $ 199,710 | $ 198,668 |
Note 2 - Investments - Securiti
Note 2 - Investments - Securities in an Unrealized Loss Position (Details) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Available-for-sale securities, continuous unrealized loss position, fair value | $ 6,281,869 | $ 85,879,288 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ 621,267 | $ 4,441,331 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | 26 | 320 |
US Government Agencies Debt Securities [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 650,236 | $ 991,660 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 4,217 | $ 2,419 |
Securities in an unrealized loss position, less than twelve months, number | 2 | 1 |
Securities in an unrealized loss position, more than twelve months, fair value | $ 447,760 | $ 1,590,655 |
Securities in an unrealized loss position, more than twelve months, unrealized loss | $ 2,514 | $ 89,320 |
Securities in an unrealized loss position, more than twelve months, number | 2 | 6 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 102,655 | $ 1,066,743 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 2,739 | $ 7,948 |
Securities in an unrealized loss position, less than twelve months, number | 1 | 6 |
Securities in an unrealized loss position, more than twelve months, fair value | $ 518,969 | |
Securities in an unrealized loss position, more than twelve months, unrealized loss | $ 24,993 | |
Securities in an unrealized loss position, more than twelve months, number | 4 | |
Corporate Debt Securities [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 1,532,983 | $ 58,506,980 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 87,107 | $ 2,154,898 |
Securities in an unrealized loss position, less than twelve months, number | 5 | 215 |
Securities in an unrealized loss position, more than twelve months, fair value | $ 1,643,185 | $ 7,107,831 |
Securities in an unrealized loss position, more than twelve months, unrealized loss | $ 143,602 | $ 1,065,370 |
Securities in an unrealized loss position, more than twelve months, number | 8 | 30 |
Debt Security, Government, Non-US [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 349,990 | $ 14,554,291 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 11 | $ 852,120 |
Securities in an unrealized loss position, less than twelve months, number | 1 | 50 |
Securities in an unrealized loss position, more than twelve months, fair value | $ 1,470,020 | $ 1,376,680 |
Securities in an unrealized loss position, more than twelve months, unrealized loss | $ 374,136 | $ 217,816 |
Securities in an unrealized loss position, more than twelve months, number | 6 | 5 |
Debt Securities [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 2,635,864 | $ 75,119,674 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 94,074 | $ 3,017,385 |
Securities in an unrealized loss position, less than twelve months, number | 9 | 272 |
Securities in an unrealized loss position, more than twelve months, fair value | $ 3,560,965 | $ 10,594,135 |
Securities in an unrealized loss position, more than twelve months, unrealized loss | $ 520,252 | $ 1,397,499 |
Securities in an unrealized loss position, more than twelve months, number | 16 | 45 |
Available-for-sale securities, continuous unrealized loss position, fair value | $ 6,196,829 | $ 85,713,809 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ 614,326 | $ 4,414,884 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | 25 | 317 |
Equity Securities [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 85,040 | $ 74,899 |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 6,941 | $ 17,082 |
Securities in an unrealized loss position, less than twelve months, number | 1 | 1 |
Available-for-sale securities, continuous unrealized loss position, fair value | $ 85,040 | $ 74,899 |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ 6,941 | $ 17,082 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | 1 | 1 |
Preferred Stock [Member] | ||
Securities in an unrealized loss position, less than twelve months, fair value | $ 90,580 | |
Securities in an unrealized loss position, less than twelve months, unrealized loss | $ 9,365 | |
Securities in an unrealized loss position, less than twelve months, number | 2 | |
Available-for-sale securities, continuous unrealized loss position, fair value | $ 90,580 | |
Available-for-sale securities, continuous unrealized loss position, accumulated loss | $ 9,365 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | 2 |
Note 2 - Investments - Net Unre
Note 2 - Investments - Net Unrealized Gains Included in Accumulated Other Comprehensive Income (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Unrealized appreciation (depreciation) on available-for-sale securities | $ 14,470,346 | $ (3,271,683) |
Adjustment to deferred acquisition costs | (22,060) | 10,124 |
Deferred income taxes | (3,034,140) | 684,928 |
Net unrealized appreciation (depreciation) on available-for-sale securities | $ 11,414,146 | $ (2,576,631) |
Note 2 - Investments - Fixed Ma
Note 2 - Investments - Fixed Maturity Available-for-sale Securities by Contractual Maturities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturity available-for-sale securities - amortized cost | $ 178,477,818 | $ 134,414,517 |
Fixed maturity available-for-sale securities - fair value | 192,946,789 | $ 131,152,199 |
Fixed Maturities [Member] | ||
Due in one year or less - amortized cost | 2,603,868 | |
Due in one year or less - fair value | 2,631,429 | |
Due in one year through five years - amortized cost | 27,096,934 | |
Due after one year through five years | 27,907,661 | |
Due after five years through ten years - amortized cost | 63,097,980 | |
Due after five years through ten years - fair value | 67,347,617 | |
Due after ten years - amortized cost | 85,658,705 | |
Due after ten years - fair value | 95,013,408 | |
Due at multiple maturity dates - amortized cost | 20,331 | |
Due at multiple maturity dates - fair value | 46,674 | |
Fixed maturity available-for-sale securities - amortized cost | 178,477,818 | |
Fixed maturity available-for-sale securities - fair value | 192,946,789 | |
Other Long-term Investments [Member] | ||
Due in one year or less - amortized cost | 10,658,928 | |
Due in one year or less - fair value | 10,856,012 | |
Due in one year through five years - amortized cost | 33,468,523 | |
Due after one year through five years | 37,526,966 | |
Due after five years through ten years - amortized cost | 20,570,733 | |
Due after five years through ten years - fair value | 27,076,173 | |
Due after ten years - amortized cost | 8,013,450 | |
Due after ten years - fair value | 14,507,449 | |
Due at multiple maturity dates - amortized cost | ||
Due at multiple maturity dates - fair value | ||
Fixed maturity available-for-sale securities - amortized cost | 72,711,634 | |
Fixed maturity available-for-sale securities - fair value | $ 89,966,600 |
Note 2 - Investments - Proceeds
Note 2 - Investments - Proceeds and Gross Realized Gains (Losses) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fixed Maturities [Member] | ||||
Proceeds from sale, maturity, or collection of investments | $ 3,107,881 | $ 12,320,142 | $ 21,235,794 | $ 20,809,074 |
Gross realized gains on sale of investments | 349,297 | 305,883 | 620,876 | 386,403 |
Gross realized losses on sale of investments | (8,428) | (100,430) | (270,845) | (141,473) |
Equity Securities [Member] | ||||
Proceeds from sale, maturity, or collection of investments | 346,535 | 19,371 | 361,947 | |
Gross realized gains on sale of investments | 25,683 | 12,372 | 25,790 | |
Gross realized losses on sale of investments | (58) | (58) | ||
Mortgages [Member] | ||||
Proceeds from sale, maturity, or collection of investments | 97,253 | 206,617 | 350,817 | 261,470 |
Gross realized gains on sale of investments | 52,971 | 5,158 | 52,971 | |
Gross realized losses on sale of investments | (1,965) | (48,343) | (1,322) | |
Preferred Stock [Member] | ||||
Proceeds from sale, maturity, or collection of investments | 50,000 | 50,000 | ||
Gross realized gains on sale of investments | ||||
Gross realized losses on sale of investments |
Note 2 - Investments - Major Ca
Note 2 - Investments - Major Categories of Net Investment Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Change in unrealized investment gains (losses) | $ 4,842,398 | $ (729,036) | $ 14,016,203 | $ (6,197,256) |
Gross Investment income | 6,929,191 | 5,607,382 | 20,206,954 | 16,611,016 |
Investment expenses | (612,849) | (628,351) | (2,034,113) | (1,909,602) |
Net investment income | 6,316,342 | 4,979,031 | 18,172,841 | 14,701,414 |
Fixed Maturities [Member] | ||||
Change in unrealized investment gains (losses) | 6,128,777 | (921,992) | 17,731,289 | (7,773,581) |
Net realized investment gains (losses) | 340,869 | 205,453 | 350,031 | 244,930 |
Gross Investment income | 1,985,449 | 1,492,224 | 5,592,131 | 4,792,648 |
Equity Securities [Member] | ||||
Equity securities, sale of securities | 25,625 | 12,372 | 25,732 | |
Equity securities, changes in fair value | 204 | (38,990) | 5,978 | (52,780) |
Gross Investment income | 38,646 | 24,280 | 106,392 | 57,397 |
Preferred Stock [Member] | ||||
Change in unrealized investment gains (losses) | 840 | (840) | 10,740 | (2,540) |
Other Long-term Investments [Member] | ||||
Gross Investment income | 1,284,234 | 995,100 | 3,601,231 | 2,974,163 |
Mortgages [Member] | ||||
Gross Investment income | 3,406,458 | 2,877,910 | 9,999,923 | 8,253,828 |
Policy Loans [Member] | ||||
Gross Investment income | 35,270 | 31,055 | 101,038 | 90,480 |
Real Estate Investment [Member] | ||||
Net realized investment gains (losses) | (1,965) | 52,971 | (43,185) | 51,649 |
Gross Investment income | 68,631 | 94,102 | 200,441 | 282,108 |
Short-term Investments [Member] | ||||
Gross Investment income | $ 110,503 | $ 92,711 | $ 605,798 | $ 160,392 |
Note 2 - Investments - Mortgage
Note 2 - Investments - Mortgage Loans on Real Estate (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | $ 156,504,177 | $ 130,049,610 |
Residential Portfolio Segment [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 144,710,078 | 120,108,297 |
Commercial Portfolio Segment [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 11,794,099 | 9,941,313 |
Commercial Portfolio Segment [Member] | Industrial Property [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 1,630,369 | 1,156,157 |
Commercial Portfolio Segment [Member] | Apartment Building [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 1,606,409 | 1,816,870 |
Commercial Portfolio Segment [Member] | Hotel [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 111,098 | 112,494 |
Commercial Portfolio Segment [Member] | Office Building [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 3,589,625 | 2,348,639 |
Commercial Portfolio Segment [Member] | Retail Site [Member] | ||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | $ 4,856,598 | $ 4,507,153 |
Note 2 - Investments - Investme
Note 2 - Investments - Investment Real Estate (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Investment real estate, net | $ 1,988,131 | $ 2,392,031 |
Land Held for the Production of Income [Member] | ||
Investment real estate | 213,160 | 213,160 |
Land Held for Sale [Member] | ||
Investment real estate | 745,155 | 745,155 |
Land [Member] | ||
Investment real estate | 958,315 | 958,315 |
Building Held for the Production of Income [Member] | ||
Investment real estate | 2,267,557 | 2,267,557 |
Less - accumulated depreciation | (1,449,787) | (1,340,671) |
Investment real estate, net | 817,770 | 926,886 |
Residential Real Estate - Held for Sale [Member] | ||
Investment real estate | $ 212,046 | $ 506,830 |
Note 3 - Fair Value Measureme_3
Note 3 - Fair Value Measurements (Details Textual) | Sep. 30, 2019 | Dec. 31, 2018 |
Number Of Private Placement Common Stocks | 2 | 2 |
Note 3 - Fair Value Measureme_4
Note 3 - Fair Value Measurements - Fair Value Measured on a Recurring Basis (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities | $ 193,197,819 | $ 131,441,447 |
Fair Value, Recurring [Member] | ||
Available-for-sale securities | 51,320 | 90,580 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 51,320 | 90,580 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
US Treasury and Government [Member] | ||
Available-for-sale securities | 1,798,946 | 2,704,711 |
US Treasury and Government [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 1,798,946 | 2,704,711 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 1,798,946 | 2,704,711 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities | 10,521,591 | 9,478,032 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 10,521,591 | 9,478,032 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 10,521,591 | 9,478,032 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Residential Mortgage Backed Securities [Member] | ||
Available-for-sale securities | 46,674 | 51,155 |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 46,674 | 51,155 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 46,674 | 51,155 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Corporate Debt Securities [Member] | ||
Available-for-sale securities | 141,209,026 | 97,964,191 |
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 141,209,026 | 97,964,191 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 141,209,026 | 97,964,191 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Asset-backed Securities [Member] | ||
Available-for-sale securities | 2,318,702 | 261,418 |
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 2,318,702 | 261,418 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 2,318,702 | 261,418 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Exchange-traded Debt Securities [Member] | ||
Available-for-sale securities | 531,600 | |
Exchange-traded Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 531,600 | |
Exchange-traded Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Exchange-traded Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 531,600 | |
Exchange-traded Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Debt Security, Government, Non-US [Member] | ||
Available-for-sale securities | 36,520,250 | 20,692,692 |
Debt Security, Government, Non-US [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 36,520,250 | 20,692,692 |
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 36,520,250 | 20,692,692 |
Debt Security, Government, Non-US [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Debt Securities [Member] | ||
Available-for-sale securities | 192,946,789 | 131,152,199 |
Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 192,946,789 | 131,152,199 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 192,946,789 | 131,152,199 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Mutual Funds [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 85,040 | 74,899 |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 85,040 | 74,899 |
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Common Stock [Member] | ||
Available-for-sale securities | 114,670 | 123,769 |
Common Stock [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 114,670 | 123,769 |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 48,571 | 59,733 |
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | ||
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 66,099 | 64,036 |
Equity Securities [Member] | ||
Available-for-sale securities | 199,710 | 198,668 |
Equity Securities [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 199,710 | 198,668 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 48,571 | 59,733 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | 85,040 | 74,899 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Available-for-sale securities | $ 66,099 | $ 64,036 |
Note 3 - Fair Value Measureme_5
Note 3 - Fair Value Measurements - Note 3 - Fair Value Measurement - Change in Fair Value of Available-for-sale Equity Securities (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning balance | $ 64,036 | $ 61,500 |
Joint venture investment | 10,200 | |
Joint venture net income | 92,956 | 40,746 |
Equity security sales | (15,000) | |
Joint venture distribution | (90,893) | (34,877) |
Ending balance | $ 66,099 | $ 62,569 |
Note 3 - Fair Value Measureme_6
Note 3 - Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Policy loans | $ 1,950,680 | $ 1,809,339 |
Accrued investment income | 5,170,977 | 2,672,978 |
Policy claims | 1,453,417 | 1,102,257 |
Reported Value Measurement [Member] | ||
Policy loans | 1,950,680 | 1,809,339 |
Short-term investments | 209,045 | 896,371 |
Other long-term investments | 72,711,634 | 59,255,477 |
Cash and cash equivalents | 14,083,748 | 29,665,605 |
Accrued investment income | 5,170,977 | 2,672,978 |
Total financial assets | 250,630,261 | 224,349,380 |
Policyholders' account balances | 366,988,490 | 297,168,411 |
Policy claims | 1,453,417 | 1,102,257 |
Total financial liabilities | 368,441,907 | 298,270,668 |
Reported Value Measurement [Member] | Commercial [Member] | ||
Mortgage loans on real estate | 11,794,099 | 9,941,313 |
Reported Value Measurement [Member] | Residential [Member] | ||
Mortgage loans on real estate | 144,710,078 | 120,108,297 |
Estimate of Fair Value Measurement [Member] | ||
Policy loans | 1,950,680 | 1,809,339 |
Short-term investments | 209,045 | 896,371 |
Other long-term investments | 89,966,600 | 69,641,358 |
Cash and cash equivalents | 14,083,748 | 29,665,605 |
Accrued investment income | 5,170,977 | 2,672,978 |
Total financial assets | 269,787,750 | 230,172,844 |
Policyholders' account balances | 362,154,709 | 259,247,412 |
Policy claims | 1,453,417 | 1,102,257 |
Total financial liabilities | 363,608,126 | 260,349,669 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Policy loans | ||
Short-term investments | 209,045 | 896,371 |
Other long-term investments | ||
Cash and cash equivalents | 14,083,748 | 29,665,605 |
Accrued investment income | ||
Total financial assets | 14,292,793 | 30,561,976 |
Policyholders' account balances | ||
Policy claims | ||
Total financial liabilities | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Policy loans | ||
Short-term investments | ||
Other long-term investments | ||
Cash and cash equivalents | ||
Accrued investment income | ||
Total financial assets | ||
Policyholders' account balances | ||
Policy claims | ||
Total financial liabilities | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Policy loans | 1,950,680 | 1,809,339 |
Short-term investments | ||
Other long-term investments | 89,966,600 | 69,641,358 |
Cash and cash equivalents | ||
Accrued investment income | 5,170,977 | 2,672,978 |
Total financial assets | 255,494,957 | 199,610,868 |
Policyholders' account balances | 362,154,709 | 259,247,412 |
Policy claims | 1,453,417 | 1,102,257 |
Total financial liabilities | 363,608,126 | 260,349,669 |
Estimate of Fair Value Measurement [Member] | Commercial [Member] | ||
Mortgage loans on real estate | 11,968,844 | 9,698,226 |
Estimate of Fair Value Measurement [Member] | Commercial [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Mortgage loans on real estate | ||
Estimate of Fair Value Measurement [Member] | Commercial [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Mortgage loans on real estate | ||
Estimate of Fair Value Measurement [Member] | Commercial [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Mortgage loans on real estate | 11,968,844 | 9,698,226 |
Estimate of Fair Value Measurement [Member] | Residential [Member] | ||
Mortgage loans on real estate | 146,437,856 | 115,788,967 |
Estimate of Fair Value Measurement [Member] | Residential [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Mortgage loans on real estate | ||
Estimate of Fair Value Measurement [Member] | Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Mortgage loans on real estate | ||
Estimate of Fair Value Measurement [Member] | Residential [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Mortgage loans on real estate | $ 146,437,856 | $ 115,788,967 |
Note 4 - Segment Data - Segment
Note 4 - Segment Data - Segment Data - Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenue | $ 12,560,477 | $ 10,003,791 | $ 36,563,568 | $ 29,089,986 |
Income before income taxes | 2,236,873 | 1,934,446 | 5,506,556 | 4,920,495 |
Depreciation and amortization expense | 1,108,548 | 814,023 | 3,193,138 | 3,074,834 |
Life Insurance Operations [Member] | ||||
Total revenue | 6,756,186 | 5,556,358 | 19,720,057 | 16,095,222 |
Income before income taxes | (28,606) | 305,976 | 235,858 | 605,498 |
Depreciation and amortization expense | 968,174 | 829,610 | 2,500,608 | 3,044,057 |
Annuity Operations [Member] | ||||
Total revenue | 5,658,205 | 4,346,120 | 16,339,063 | 12,647,899 |
Income before income taxes | 2,144,230 | 1,522,702 | 4,892,901 | 4,013,123 |
Depreciation and amortization expense | 140,374 | (15,587) | 692,530 | 30,777 |
Corporate Segment [Member] | ||||
Total revenue | 146,086 | 101,313 | 504,448 | 346,865 |
Income before income taxes | $ 121,249 | $ 105,768 | $ 377,797 | $ 301,874 |
Note 4 - Segment Data - Segme_2
Note 4 - Segment Data - Segment Data - Assets (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Total assets | $ 603,990,309 | $ 433,506,850 |
Total assets | 104,509,053 | 25,494,700 |
Life Insurance Operations [Member] | ||
Total assets | 94,967,352 | 69,756,013 |
Annuity Operations [Member] | ||
Total assets | 398,085,552 | 332,303,028 |
Corporate Segment [Member] | ||
Total assets | $ 6,428,352 | $ 5,953,109 |
Note 5 - Federal Income Taxes (
Note 5 - Federal Income Taxes (Details Textual) | 9 Months Ended |
Sep. 30, 2019 | |
Domestic Tax Authority [Member] | |
Open Tax Year | 2016 2017 2018 |
Note 6 - Legal Matters and Co_2
Note 6 - Legal Matters and Contingent Liabilities (Details Textual) - USD ($) | Jun. 11, 2018 | Feb. 17, 2017 |
Case No. CJ-2013-03385 [Member] | Mr. Pettigrew [Member] | First Trinity Financial Corporation [Member] | ||
Loss Contingency, Damages Awarded, Value | $ 800,000 | |
Case No. CJ-2013-03385 [Member] | Mr. Pettigrew [Member] | Mr. Zahn [Member] | ||
Loss Contingency, Damages Awarded, Value | $ 3,500,000 | |
Decreasing Term to 95 [Member] | ||
Loss Contingency, Damages Paid, Value | $ 1,850,000 |
Note 7 - Line of Credit (Detail
Note 7 - Line of Credit (Details Textual) - Line of Credit [Member] - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Nov. 08, 2018 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 | ||
Long-term Line of Credit, Total | $ 0 | $ 0 | |
Minimum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Note 8 - Other Comprehensive _3
Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance | $ 50,836,572 | $ 38,285,449 | $ 39,125,251 | $ 41,252,179 |
Total other comprehensive income (loss) | 4,835,218 | (717,815) | 13,990,777 | (6,092,811) |
Balance | 57,442,654 | 39,092,393 | 57,442,654 | 39,092,393 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Balance | 6,589,162 | (625,159) | (2,584,643) | 4,843,061 |
Other comprehensive income before reclassifications, net of tax | 5,111,684 | (566,729) | 14,292,727 | (6,003,761) |
Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax | 269,286 | 162,307 | 276,524 | 193,495 |
Total other comprehensive income (loss) | 4,842,398 | (729,036) | 14,016,203 | (6,197,256) |
Balance | 11,431,560 | (1,354,195) | 11,431,560 | (1,354,195) |
Adjustment to Deferred Acquisition Costs [Member] | ||||
Balance | (10,234) | 11,114 | 8,012 | (82,110) |
Other comprehensive income before reclassifications, net of tax | (7,180) | 11,221 | (25,426) | 104,445 |
Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax | ||||
Total other comprehensive income (loss) | (7,180) | 11,221 | (25,426) | 104,445 |
Balance | (17,414) | 22,335 | (17,414) | 22,335 |
AOCI Attributable to Parent [Member] | ||||
Balance | 6,578,928 | (614,045) | (2,576,631) | 4,760,951 |
Other comprehensive income before reclassifications, net of tax | 5,104,504 | (555,508) | 14,267,301 | (5,899,316) |
Less amounts reclassified from accumulated other comprehensive income having no credit losses, net of tax | 269,286 | 162,307 | 276,524 | 193,495 |
Total other comprehensive income (loss) | 4,835,218 | (717,815) | 13,990,777 | (6,092,811) |
Balance | $ 11,414,146 | $ (1,331,860) | $ 11,414,146 | $ (1,331,860) |
Note 8 - Other Comprehensive _4
Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) - Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Unrealized holding gains (losses) arising during the period, pretax | $ 6,470,486 | $ (717,379) | $ 18,092,060 | $ (7,531,191) | |
Unrealized holding gains (losses) arising during the period, income tax expense | 1,358,802 | (150,650) | 3,799,333 | (1,595,938) | |
Unrealized holding gains (losses) arising during the period, net of tax | 5,111,684 | (566,729) | 14,292,727 | (6,003,761) | |
Realized gains (losses) on sales of securities | [1] | 340,869 | 205,453 | 350,031 | 244,930 |
Income tax expense (benefit) | [2] | 71,583 | 43,146 | 73,507 | 51,435 |
Reclassification adjustment for net gains included in operations having no credit losses, net of tax | 269,286 | 162,307 | 276,524 | 193,495 | |
Net unrealized gains (losses) on investments, pretax | 6,129,617 | (922,832) | 17,742,029 | (7,844,629) | |
Net unrealized gains (losses) on investments, income tax expense | 1,287,219 | (193,796) | 3,725,826 | (1,647,373) | |
Net unrealized gains (losses) on investments, net of tax | 4,842,398 | (729,036) | 14,016,203 | (6,197,256) | |
Adjustment to deferred acquisition costs, pretax | (9,088) | 14,204 | (32,184) | 132,210 | |
Adjustment to deferred acquisition costs, income tax expense | (1,908) | 2,983 | (6,758) | 27,765 | |
Adjustment to deferred acquisition costs, net of tax | (7,180) | 11,221 | (25,426) | 104,445 | |
Total other comprehensive income (loss), pretax | 6,120,529 | (908,628) | 17,709,845 | (7,712,419) | |
Total other comprehensive income (loss), income tax expense | 1,285,311 | (190,813) | 3,719,068 | (1,619,608) | |
Total other comprehensive income (loss), net of tax | $ 4,835,218 | $ (717,815) | $ 13,990,777 | $ (6,092,811) | |
[1] | These items appear within net realized investment gains in the consolidated statements of operations. | ||||
[2] | These items appear within federal income taxes in the consolidated statements of operations. |
Note 8 - Other Comprehensive _5
Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) - Reclassified From Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Realized gains (losses) on sales of securities | [1] | $ 340,869 | $ 205,453 | $ 350,031 | $ 244,930 |
Income tax expense (benefit) | [2] | 71,583 | 43,146 | 73,507 | 51,435 |
Total reclassification adjustments | $ 269,286 | $ 162,307 | $ 276,524 | $ 193,495 | |
[1] | These items appear within net realized investment gains in the consolidated statements of operations. | ||||
[2] | These items appear within federal income taxes in the consolidated statements of operations. |
Note 9 - Allowance for Loan L_3
Note 9 - Allowance for Loan Losses From Mortgage Loans on Real Estate (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | $ 156,504,177 | $ 130,049,610 | |
Financing Receivable, Collectively Evaluated for Impairment | 99,520,253 | 85,081,139 | |
Independent Mortgage Loan Balances [Member] | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 497,949 | 424,166 | |
One Loan Originator and Investments [Member] | Independent Mortgage Loan Balances [Member] | |||
Escrow Deposit | 1,136,128 | 823,645 | |
Escrow Amount Available | 851,208 | ||
Advances To Loan Originator | 4,636,498 | ||
Residential Real Estate - Held for Sale [Member] | Independent Mortgage Loan Balances [Member] | |||
Escrow Amount Available | 284,920 | 224,842 | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | 56,983,924 | 44,968,471 | |
One Loan Originator [Member] | |||
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total | $ 56,983,924 | $ 40,786,373 | |
One Loan Originator [Member] | Independent Mortgage Loan Balances [Member] | |||
Escrow Amount Available | 598,803 | ||
Advances To Loan Originator | $ 4,942,870 |
Note 9 - Allowance for Loan L_4
Note 9 - Allowance for Loan Losses From Mortgage Loans On Real Estate - Allowance for Loss on Premium Financing (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Provision | $ 73,783 | $ 61,083 | |||
Financing Receivable, Collectively Evaluated for Impairment | $ 99,520,253 | 99,520,253 | $ 85,081,139 | ||
Residential Portfolio Segment [Member] | |||||
Allowance, beginning | 457,660 | $ 372,352 | 374,209 | 333,789 | |
Provision | (18,978) | (9,539) | 64,473 | 29,024 | |
Allowance, ending | 438,682 | 362,813 | 438,682 | 362,813 | |
Collectively evaluated for impairment | 438,682 | 362,813 | 438,682 | 362,813 | |
Financing Receivable, Collectively Evaluated for Impairment | 87,726,154 | 72,543,552 | 87,726,154 | 72,543,552 | |
Commercial Portfolio Segment [Member] | |||||
Allowance, beginning | 52,441 | 37,944 | 49,957 | 9,026 | |
Provision | 6,826 | 3,141 | 9,310 | 32,059 | |
Allowance, ending | 59,267 | 41,085 | 59,267 | 41,085 | |
Collectively evaluated for impairment | 59,267 | 41,085 | 59,267 | 41,085 | |
Financing Receivable, Collectively Evaluated for Impairment | 11,794,099 | 8,175,791 | 11,794,099 | 8,175,791 | |
Premium Finance Loans [Member] | |||||
Allowance, beginning | 510,101 | 410,296 | 424,166 | 342,815 | |
Provision | (12,152) | (6,398) | 73,783 | 61,083 | |
Allowance, ending | 497,949 | 403,898 | 497,949 | 403,898 | |
Collectively evaluated for impairment | 497,949 | 403,898 | 497,949 | 403,898 | |
Financing Receivable, Collectively Evaluated for Impairment | $ 99,520,253 | $ 80,719,343 | $ 99,520,253 | $ 80,719,343 |
Note 9 - Allowance for Loan L_5
Note 9 - Allowance for Loan Losses From Mortgage Loans on Real Estate - Mortgage Loan to Value Ratios (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Mortgage loans on real estate | $ 156,504,177 | $ 130,049,610 |
Loan to Value Range1 [Member] | ||
Mortgage loans on real estate | 39,313,535 | 23,485,657 |
Loan to Value Range 2 [Member] | ||
Mortgage loans on real estate | 51,932,488 | 45,847,901 |
Loan to Value Range 3 [Member] | ||
Mortgage loans on real estate | 30,822,484 | 25,643,012 |
Loan to Value Range 4 [Member] | ||
Mortgage loans on real estate | 14,034,444 | 17,725,494 |
Loan to Value Range 5 [Member] | ||
Mortgage loans on real estate | 9,567,585 | 9,325,713 |
Loan to Value Range 6 [Member] | ||
Mortgage loans on real estate | 4,486,979 | 4,678,495 |
Loan to Value Range 7 [Member] | ||
Mortgage loans on real estate | 5,360,629 | 2,484,814 |
Loan to Value Range 8 [Member] | ||
Mortgage loans on real estate | 986,033 | 858,524 |
Residential Portfolio Segment [Member] | ||
Mortgage loans on real estate | 144,710,078 | 120,108,297 |
Residential Portfolio Segment [Member] | Loan to Value Range1 [Member] | ||
Mortgage loans on real estate | 39,037,227 | 23,205,637 |
Residential Portfolio Segment [Member] | Loan to Value Range 2 [Member] | ||
Mortgage loans on real estate | 49,395,386 | 43,631,465 |
Residential Portfolio Segment [Member] | Loan to Value Range 3 [Member] | ||
Mortgage loans on real estate | 29,317,566 | 24,890,831 |
Residential Portfolio Segment [Member] | Loan to Value Range 4 [Member] | ||
Mortgage loans on real estate | 12,598,526 | 16,055,231 |
Residential Portfolio Segment [Member] | Loan to Value Range 5 [Member] | ||
Mortgage loans on real estate | 7,367,692 | 5,984,097 |
Residential Portfolio Segment [Member] | Loan to Value Range 6 [Member] | ||
Mortgage loans on real estate | 3,351,000 | 3,249,410 |
Residential Portfolio Segment [Member] | Loan to Value Range 7 [Member] | ||
Mortgage loans on real estate | 2,656,648 | 2,233,102 |
Residential Portfolio Segment [Member] | Loan to Value Range 8 [Member] | ||
Mortgage loans on real estate | 986,033 | 858,524 |
Commercial Portfolio Segment [Member] | ||
Mortgage loans on real estate | 11,794,099 | 9,941,313 |
Commercial Portfolio Segment [Member] | Loan to Value Range1 [Member] | ||
Mortgage loans on real estate | 276,308 | 280,020 |
Commercial Portfolio Segment [Member] | Loan to Value Range 2 [Member] | ||
Mortgage loans on real estate | 2,537,102 | 2,216,436 |
Commercial Portfolio Segment [Member] | Loan to Value Range 3 [Member] | ||
Mortgage loans on real estate | 1,504,918 | 752,181 |
Commercial Portfolio Segment [Member] | Loan to Value Range 4 [Member] | ||
Mortgage loans on real estate | 1,435,918 | 1,670,263 |
Commercial Portfolio Segment [Member] | Loan to Value Range 5 [Member] | ||
Mortgage loans on real estate | 2,199,893 | 3,341,616 |
Commercial Portfolio Segment [Member] | Loan to Value Range 6 [Member] | ||
Mortgage loans on real estate | 1,135,979 | 1,429,085 |
Commercial Portfolio Segment [Member] | Loan to Value Range 7 [Member] | ||
Mortgage loans on real estate | 2,703,981 | 251,712 |
Commercial Portfolio Segment [Member] | Loan to Value Range 8 [Member] | ||
Mortgage loans on real estate |
Note 10 - Coinsurance (Details
Note 10 - Coinsurance (Details Textual) | Sep. 30, 2019 | Jan. 01, 2018 |
Percent Ceded | 90.00% | |
Additional Percentage of Assets in Trust above Required Annuity Reserve | 4.00% |