Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Registrant CIK | 0000318673 | |
Fiscal Year End | --12-31 | |
Registrant Name | Security National Financial Corporation | |
SEC Form | 10-Q | |
Period End date | Mar. 31, 2021 | |
Tax Identification Number (TIN) | 87-0345941 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Entity Incorporation, State or Country Code | UT | |
Entity File Number | 000-09341 | |
Entity Address, Address Line One | 121 West Election Road | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Draper | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84020 | |
City Area Code | (801) | |
Local Phone Number | 264-1060 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Class A | ||
Number of common stock shares outstanding | 16,701,916 | |
Common Class C | ||
Number of common stock shares outstanding | 2,631,076 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $256,894,421 and $265,150,484 for 2021 and 2020) | $ 279,550,528 | $ 294,656,679 |
Equity securities at estimated fair value (cost of $8,913,275 and $9,698,490 for 2021 and 2020) | 11,154,495 | 11,324,239 |
Mortgage loans held for investment (net of allowances for loan losses of $1,897,155 and $2,005,127 for 2021 and 2020) | 244,951,952 | 249,343,936 |
Real estate held for investment (net of accumulated depreciation of $14,473,417 and $13,800,973 for 2021 and 2020) | 157,040,536 | 131,684,453 |
Real estate held for sale | 5,556,866 | 7,878,807 |
Other investments and policy loans (net of allowances for doubtful accounts of $1,662,394 and $1,645,475 for 2021 and 2020) | 74,690,150 | 73,696,661 |
Accrued investment income | 6,266,403 | 5,360,523 |
Total investments | 779,210,930 | 773,945,298 |
Cash and cash equivalents | 144,159,566 | 106,219,429 |
Loans held for sale at estimated fair value | 304,030,372 | 422,772,418 |
Receivables (net of allowances for doubtful accounts of $1,698,691 and $1,685,382 for 2021 and 2020) | 13,970,177 | 10,899,207 |
Restricted assets (including $4,160,721 and $3,989,415 for 2021 and 2020 at estimated fair value) | 16,494,477 | 16,150,036 |
Cemetery perpetual care trust investments (including $2,947,117 and $2,810,070 for 2021 and 2020 at estimated fair value) | 6,602,118 | 6,413,167 |
Receivable from reinsurers | 15,836,062 | 15,569,156 |
Cemetery land and improvements | 8,524,629 | 8,761,436 |
Deferred policy and pre-need contract acquisition costs | 101,695,734 | 100,075,276 |
Mortgage servicing rights, net | 42,779,361 | 35,210,516 |
Property and equipment, net | 14,836,721 | 12,473,345 |
Value of business acquired | 8,748,055 | 8,955,249 |
Goodwill | 3,519,588 | 3,519,588 |
Other | 27,819,736 | 27,976,357 |
Total Assets | 1,488,227,526 | 1,548,940,478 |
Liabilities | ||
Future policy benefits and unpaid claims | 846,737,059 | 844,790,087 |
Unearned premium reserve | 3,265,505 | 3,328,623 |
Bank and other loans payable | 245,973,378 | 297,824,368 |
Deferred pre-need cemetery and mortuary contract revenues | 13,514,055 | 13,080,179 |
Cemetery Perpetual Care Trust Obligation | 4,130,579 | 4,087,704 |
Accounts payable | 10,404,210 | 8,932,683 |
Other liabilities and accrued expenses | 64,282,931 | 87,650,981 |
Income Taxes | 28,051,968 | 25,258,800 |
Total liabilities | 1,216,359,685 | 1,284,953,425 |
Stockholders' Equity | ||
Additional paid-in capital | 50,650,188 | 50,287,253 |
Accumulated other comprehensive income, net of taxes | 17,854,611 | 23,243,133 |
Retained earnings | 165,867,882 | 153,739,167 |
Treasury stock at cost - 77,825 Class A shares and 56,276 Class C shares in 2021; and 227,852 Class A shares and 10,985 Class C shares in 2020 | (1,111,464) | (1,833,272) |
Total stockholders' equity | 271,867,841 | 263,987,053 |
Total Liabilities and Stockholders' Equity | 1,488,227,526 | 1,548,940,478 |
Common Class A | ||
Stockholders' Equity | ||
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | ||
Common Stock, Value, Issued | 33,344,472 | 33,191,566 |
Common Class B | ||
Stockholders' Equity | ||
Common Stock, Value, Issued | ||
Common Class C | ||
Stockholders' Equity | ||
Common Stock, Value, Issued | $ 5,262,152 | $ 5,359,206 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized cost | $ 256,894,421 | $ 265,150,484 |
Equity securities cost | 8,913,275 | 9,698,490 |
Allowance for Loan and Lease Losses, Real Estate | 1,897,155 | 2,005,127 |
Real Estate Investment Property, Accumulated Depreciation | 14,473,417 | 13,800,973 |
Allowance for Doubtful Accounts, Premiums and Other Receivables | 1,662,394 | 1,645,475 |
Accounts Receivable, Allowance for Credit Loss | 1,698,691 | 1,685,382 |
Aggregate Fair Value, Restricted Assets | 4,160,721 | 3,989,415 |
Aggregate Fair Value, Cemetary Perpetual Care Trust Investments | $ 2,947,117 | $ 2,810,070 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Class A | ||
Common Stock, Par or Stated Value Per Share | $ 2 | $ 2 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 16,672,236 | 16,595,783 |
Treasury Stock, Shares | 77,825 | 227,852 |
Common Class B | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 0 | 0 |
Common Stock, Shares, Outstanding | 0 | 0 |
Common Class C | ||
Common Stock, Par or Stated Value Per Share | $ 2 | $ 2 |
Common Stock, Shares Authorized | 3,000,000 | 3,000,000 |
Common Stock, Shares, Issued | 2,631,076 | 2,679,603 |
Treasury Stock, Shares | 56,276 | 10,985 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Revenues: | |||
Mortgage fee income | $ 72,998,612 | $ 40,281,761 | |
Insurance premiums and other considerations | 23,350,210 | 22,291,276 | |
Net investment income | 14,293,887 | 13,400,499 | |
Net mortuary and cemetery sales | 5,942,126 | 4,458,091 | |
Gains (losses) on investments and other assets | 1,960,113 | (3,212,247) | |
Other Revenues | 4,113,658 | 2,389,569 | |
Total revenues | 122,658,606 | 79,608,949 | |
Benefits and expenses: | |||
Death benefits | 18,312,006 | 13,407,627 | |
Surrenders and other policy benefits | 1,077,644 | 1,070,475 | |
Increase in future policy benefits | 4,254,658 | 7,038,033 | |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 3,576,865 | 3,515,057 | |
Selling, general and administrative expenses: | |||
Commissions | 32,729,680 | 16,554,743 | |
Personnel | 24,371,505 | 18,719,998 | |
Advertising | 1,800,998 | 1,005,317 | |
Rent and rent related | 1,865,898 | 1,614,741 | |
Depreciation on property and equipment | 501,645 | 516,213 | |
Costs related to funding mortgage loans | 2,937,225 | 1,956,282 | |
Other | 11,949,864 | 10,075,542 | |
Interest expense | 1,825,599 | 1,818,609 | |
Cost of goods and services sold-mortuaries and cemeteries | 1,099,964 | 842,078 | |
Total benefits and expenses | 106,303,551 | 78,134,715 | |
Earnings before income taxes | 16,355,055 | 1,474,234 | |
Income tax expense | (4,226,340) | (49,785) | |
Net earnings | $ 12,128,715 | $ 1,424,449 | |
Net earnings per Class A Equivalent common share | [1] | $ 0.63 | $ 0.08 |
Net earnings per Class A Equivalent common share-assuming dilution | [1] | $ 0.61 | $ 0.08 |
Weighted-average Class A equivalent common shares outstanding | [1] | 19,124,001 | 18,641,950 |
Weighted-average Class A equivalent common shares outstanding-assuming dilution | [1] | 20,008,050 | 18,833,396 |
[1] | Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Net earnings | $ 12,128,715 | $ 1,424,449 |
Other comprehensive income: | ||
Unrealized gains (losses) on fixed maturity securities available for sale | (6,805,903) | (11,181,151) |
Unrealized gains (losses) on restricted assets | (10,428) | (13,085) |
Unrealized gains (losses) on cemetery perpetual care trust investments | (8,197) | (12,046) |
Foreign currency translation adjustments | 2,835 | (445) |
Other comprehensive income (loss), before income tax | (6,821,693) | (11,206,727) |
Income tax benefit (expense) | 1,433,171 | 2,354,414 |
Other comprehensive income (loss), net of income tax | (5,388,522) | (8,852,313) |
Comprehensive income (loss) | $ 6,740,193 | $ (7,427,864) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Class A Common Stock | Class C Common Stock | Additional Paid-In Capital | Other Comprehensive Income / Loss | Retained Earnings | Treasury Stock | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2019 | $ 32,215,558 | $ 5,001,774 | $ 46,091,112 | $ 13,726,514 | $ 101,256,229 | $ (1,580,582) | $ 196,710,605 |
Net earnings | 1,424,449 | 1,424,449 | |||||
Other comprehensive income | (8,852,313) | (8,852,313) | |||||
Stock based compensation expense | 65,877 | 65,877 | |||||
Exercise of stock options | 44,822 | (33,930) | 10,892 | ||||
Sale of treasury stock | 218,280 | 264,081 | 482,361 | ||||
Purchase of treasury stock | (129,608) | (129,608) | |||||
Stock dividends | 2,322 | (1,020) | 2,292 | (3,594) | |||
Conversion Class C to Class A | 22,324 | (22,324) | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2020 | 32,285,026 | 4,978,430 | 46,343,631 | 4,874,201 | 102,677,084 | (1,446,109) | 189,712,263 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2020 | 33,191,566 | 5,359,206 | 50,287,253 | 23,243,133 | 153,739,167 | (1,833,272) | 263,987,053 |
Net earnings | 12,128,715 | 12,128,715 | |||||
Other comprehensive income | (5,388,522) | (5,388,522) | |||||
Stock based compensation expense | 39,153 | 39,153 | |||||
Exercise of stock options | 55,852 | 33,401 | 89,253 | ||||
Sale of treasury stock | 290,381 | 1,632,041 | 1,922,422 | ||||
Purchase of treasury stock | (910,233) | (910,233) | |||||
Conversion Class C to Class A | 97,054 | (97,054) | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2021 | $ 33,344,472 | $ 5,262,152 | $ 50,650,188 | $ 17,854,611 | $ 165,867,882 | $ (1,111,464) | $ 271,867,841 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 100,975,851 | $ (63,771,244) |
Cash flows from investing activities: | ||
Purchases of fixed maturity securities | (1,753,606) | (28,691,834) |
Sales, calls and maturities of fixed maturity securities | 9,993,624 | 44,166,424 |
Purchases of equity securities | (367,786) | (10,650,102) |
Sales of equity securities | 1,376,669 | 7,576,507 |
Net changes in restricted assets | 179,052 | 753,326 |
Net changes in perpetual care trusts | (47,841) | (107,286) |
Mortgage loans held for investment, other investments and policy loans made | (200,084,136) | (153,050,405) |
Payments received for mortgage loans held for investment, other investments and policy loans | 203,929,458 | 149,366,124 |
Purchase of property and equipment | (2,865,020) | (534,737) |
Purchase of real estate | (23,554,515) | (750,018) |
Sale of real estate | 5,147,199 | 4,153,329 |
Net cash provided by (used in) investing activities | (8,046,902) | 12,231,328 |
Cash flows from financing activities: | ||
Investment contract receipts | 2,542,681 | 2,640,020 |
Investment contract withdrawals | (4,386,172) | (4,662,891) |
Proceeds from stock options exercised | 89,253 | 10,892 |
Purchases of treasury stock | (910,233) | (129,608) |
Repayment of bank loans | (46,367,270) | (810,623) |
Proceeds from bank loans | 54,896,199 | 20,172,821 |
Net change in warehouse line borrowings for loans held for sale | (60,432,330) | 16,982,783 |
Net cash provided by (used in) financing activities | (54,567,872) | 34,203,394 |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 38,361,077 | (17,336,522) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 115,465,086 | 137,735,673 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 153,826,163 | 120,399,151 |
Supplemental Cash Flow Information | ||
Cash paid during the year for interest | 2,142,375 | 1,845,747 |
Income taxes (net of refunds) | ||
Non Cash Operating, Investing and Financing Activities: | ||
Accrued real estate construction costs and retainage | 4,521,048 | 399,976 |
Benefit plans funded with treasury stock | 1,922,422 | 482,361 |
Right-of-use assets obtained in exchange for operating lease liabilities | 1,082,388 | 3,271,518 |
Mortgage loans held for investment foreclosed into real estate held for investment | 389,145 | 0 |
Transfer of loans held for sale to mortgage loans held for investment | 201,951 | 8,933,676 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ 0 | $ 9,394 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Cash and cash equivalents | $ 144,159,566 | $ 103,769,066 |
Restricted assets | 9,256,997 | 15,347,648 |
Cemetery perpetual care trust investments | 409,600 | 1,282,437 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ 153,826,163 | $ 120,399,151 |
1) Basis of Presentation
1) Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
1) Basis of Presentation | 1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Articles 8 and 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K (File Number 000-09341). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to adopt policies and make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In applying these policies and estimates, the Company makes judgments that frequently require assumptions about matters that are inherently uncertain. Accordingly, significant estimates used in the preparation of the Company’s financial statements may be subject to significant adjustments in future periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the value of mortgage loans foreclosed to real estate held for investment; those used in determining the liability for future policy benefits; those used in estimating other than temporary impairments on available for sale securities; those used in determining the value of mortgage servicing rights; those used in determining allowances for loan losses for mortgage loans held for investment; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. COVID-19 Like most businesses, COVID-19 has impacted the Company. However, the Company cannot, with any certainty predict the severity or duration with which COVID-19 will impact the Company’s business, financial condition, results of operations, and cash flows. To the extent the COVID-19 pandemic adversely affects the Company’s business, financial condition, and results of operations, it may also have the effect of heightening many of the other risks described in this Management’s Discussion and Analysis of Financial Condition and Results of Operations. These uncertainties have the potential to negatively affect the risk of credit default for the issuers of the Company’s fixed maturity debt securities and individual borrowers with mortgage loans held by the Company. The Company has implemented risk management, business continuity plans and has taken preventive measures and other precautions, such as business travel restrictions and remote work arrangements. Such measures and precautions have enabled the Company to continue to conduct business. |
2) Recent Accounting Pronouncem
2) Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
2) Recent Accounting Pronouncements | 2) Recent Accounting Pronouncements Accounting Standards Adopted in 2020 ASU No. 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” Accounting Standards Issued But Not Yet Adopted ASU No. 2016-13: “Financial Instruments – Credit Losses (Topic 326)” ASU No. 2018-12: “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position. |
3) Investments
3) Investments | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
3) Investments | 3) Investments The Company’s investments as of March 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2021 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 42,427,856 $ 1,099,519 $ - $ 43,527,375 Obligations of states and political subdivisions 5,370,754 209,554 (24,569) 5,555,739 Corporate securities including public utilities 179,026,864 21,203,792 (501,358) 199,729,298 Mortgage-backed securities 29,799,733 892,449 (236,547) 30,455,635 Redeemable preferred stock 269,214 13,267 - 282,481 Total fixed maturity securities available for sale $ 256,894,421 $ 23,418,581 $ (762,474) $ 279,550,528 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,913,275 $ 2,586,343 $ (345,123) $ 11,154,495 Total equity securities at estimated fair value $ 8,913,275 $ 2,586,343 $ (345,123) $ 11,154,495 Mortgage loans held for investment at amortized cost: Residential $ 88,266,355 Residential construction 105,450,591 Commercial 55,065,455 Less: Unamortized deferred loan fees, net (1,223,014) Less: Allowance for loan losses (1,897,155) Less: Net discounts (710,280) Total mortgage loans held for investment $ 244,951,952 Real estate held for investment - net of accumulated depreciation: Residential $ 39,752,530 Commercial 117,288,006 Total real estate held for investment $ 157,040,536 Real estate held for sale: Residential $ 1,156,313 Commercial 4,400,553 Total real estate held for sale $ 5,556,866 Other investments and policy loans at amortized cost: Policy loans $ 13,946,739 Insurance assignments 54,618,319 Federal Home Loan Bank stock (1) 2,544,700 Other investments 5,242,786 Less: Allowance for doubtful accounts (1,662,394) Total policy loans and other investments $ 74,690,150 Accrued investment income $ 6,266,403 Total investments $ 779,210,930 (1) Includes $905,700 of Membership stock and $1,639,000 of Activity stock due to short-term borrowings. The Company’s investments as of December 31, 2020 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2020 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 42,381,805 $ 1,358,562 $ - $ 43,740,367 Obligations of states and political subdivisions 5,383,762 312,214 (1,261) 5,694,715 Corporate securities including public utilities 186,067,912 27,216,496 (681,478) 212,602,930 Mortgage-backed securities 31,047,791 1,565,377 (267,106) 32,346,062 Redeemable preferred stock 269,214 3,391 - 272,605 Total fixed maturity securities available for sale $ 265,150,484 $ 30,456,040 $ (949,845) $ 294,656,679 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 9,698,490 $ 2,376,156 $ (750,407) $ 11,324,239 Total equity securities at estimated fair value $ 9,698,490 $ 2,376,156 $ (750,407) $ 11,324,239 Mortgage loans held for investment at amortized cost: Residential $ 95,822,448 Residential construction 111,111,777 Commercial 46,836,866 Less: Unamortized deferred loan fees, net (1,161,132) Less: Allowance for loan losses (2,005,127) Less: Net discounts (1,260,896) Total mortgage loans held for investment $ 249,343,936 Real estate held for investment - net of accumulated depreciation: Residential $ 24,843,743 Commercial 106,840,710 Total real estate held for investment $ 131,684,453 Real estate held for sale: Residential $ 3,478,254 Commercial 4,400,553 Total real estate held for sale $ 7,878,807 Other investments and policy loans at amortized cost: Policy loans $ 14,171,589 Insurance assignments 53,231,131 Federal Home Loan Bank stock (1) 2,506,600 Other investments 5,432,816 Less: Allowance for doubtful accounts (1,645,475) Total policy loans and other investments $ 73,696,661 Accrued investment income $ 5,360,523 Total investments $ 773,945,298 (1) Includes $866,900 of Membership stock and $1,639,700 of Activity stock due to short-term borrowings. Fixed Maturity Securities The following tables summarize unrealized losses on fixed maturity securities available for sale, which were carried at estimated fair value, at March 31, 2021 and December 31, 2020. The unrealized losses were primarily related to interest rate fluctuations and uncertainties relating to COVID-19. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Unrealized Fair Value Unrealized Fair Value Total Fair Value At March 31, 2021 Obligations of States and Political Subdivisions $ 24,569 $ 778,979 $ - $ - $ 24,569 $ 778,979 Corporate Securities 137,661 9,760,180 363,697 9,199,818 501,358 18,959,998 Mortgage and other asset-backed securities 90,713 5,235,918 145,834 2,026,009 236,547 7,261,927 Total unrealized losses $ 252,943 $ 15,775,077 $ 509,531 $ 11,225,827 $ 762,474 $ 27,000,904 At December 31, 2020 Obligations of States and Political Subdivisions $ 1,261 $ 206,812 $ - $ - $ 1,261 $ 206,812 Corporate Securities 242,596 9,919,298 438,882 2,593,026 681,478 12,512,324 Mortgage and other asset-backed securities 266,522 3,455,574 584 51,961 267,106 3,507,535 Total unrealized losses $ 510,379 $ 13,581,684 $ 439,466 $ 2,644,987 $ 949,845 $ 16,226,671 There were 79 securities with fair value of 97.3% of amortized cost at March 31, 2021. There were 63 securities with fair value of 94.7% of amortized cost at December 31, 2020. No credit losses have been recognized for the three months ended March 31, 2021 and 2020. On a quarterly basis, the Company evaluates its fixed maturity securities available for sale. This evaluation includes a review of current ratings by the National Association of Insurance Commissions (NAIC). Securities with a rating of 1 or 2 are considered investment grade and are not reviewed for impairment. Securities with ratings of 3 to 5 are evaluated for impairment. Securities with a rating of 6 are automatically determined to be impaired and are written down. The evaluation involves an analysis of the securities in relation to historical values, interest payment history, projected earnings and revenue growth rates as well as a review of the reason for a downgrade in the NAIC rating. Based on the analysis of a security that is rated 3 to 5, a determination is made whether the security will likely make interest and principal payments in accordance with the terms of the financial instrument. If it is unlikely that the security will meet contractual obligations, the loss is considered to be other than temporary, the security is written down to the new anticipated market value and an impairment loss is recognized. The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments. The following table presents a rollforward of the Company's cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale for the three months ended March 31: 2021 2020 Balance of credit-related OTTI at January 1 $ 370,975 $ - Additions for credit impairments recognized on: Securities not previously impaired - - Securities previously impaired - - Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (realized) - - Securities due to an increase in expected cash flows - - Balance of credit-related OTTI at March 31 $ 370,975 $ - The amortized cost and estimated fair value of fixed maturity securities available for sale at March 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated Fair Due in 1 year $ 21,362,110 $ 21,444,660 Due in 2-5 years 66,817,800 71,062,356 Due in 5-10 years 70,609,309 77,487,611 Due in more than 10 years 68,036,255 78,817,785 Mortgage-backed securities 29,799,733 30,455,635 Redeemable preferred stock 269,214 282,481 Total $ 256,894,421 $ 279,550,528 The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). The Company pledged a total of $40,000,000, par value, of United States Treasury fixed maturity securities with the FHLB at March 31, 2021. These securities are used as collateral on any cash borrowings from the FHLB. As of March 31, 2021, the Company did not have any amounts outstanding with the FHLB and its estimated remaining maximum borrowing capacity was $38,559,265. Investment Related Earnings The Company’s net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments are summarized as follows: Three Months Ended March 31 2021 2020 Fixed maturity securities: Gross realized gains $ 97,622 $ 95,821 Gross realized losses (24,997) - Equity securities: Gains (losses) on securities sold 106,569 (57,442) Unrealized gains and (losses) on securities held at the end of the period 952,030 (2,761,856) Other assets: Gross realized gains 1,109,358 457,028 Gross realized losses (280,469) (945,798) Total $ 1,960,113 $ (3,212,247) The net realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined using the specific identification method. Information regarding sales of fixed maturity securities available for sale is summarized as follows: Three Months Ended March 31 2021 2020 Proceeds from sales $ 819,565 $ 645,750 Gross realized gains 59,794 79,411 Gross realized losses - - Major categories of net investment income are as follows: Three Months Ended March 31 2021 2020 Fixed maturity securities $ 2,824,111 $ 2,924,714 Equity securities 128,229 92,042 Mortgage loans held for investment 6,084,417 5,653,890 Real estate 3,042,829 3,153,385 Policy loans 232,353 233,966 Insurance assignments 5,345,729 4,299,205 Other investments 13,707 25,023 Cash and cash equivalents 39,594 298,005 Gross investment income 17,710,969 16,680,230 Investment expenses (3,417,082) (3,279,731) Net investment income $ 14,293,887 $ 13,400,499 Net investment income includes income earned by the restricted assets cemeteries and mortuaries of $161,211 and $110,639 for the three months ended March 31, 2021 and 2020, respectively. Net investment income on real estate consists primarily of rental revenue. Investment expenses consist primarily of depreciation, property taxes, operating expenses of real estate and an estimated portion of administrative expenses relating to investment activities. Securities on deposit with regulatory authorities as required by law amounted to $9,864,903 at March 31, 2021 and $9,684,409 at December 31, 2020. These restricted securities are included in various assets under investments on the accompanying condensed consolidated balance sheets. There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses on equity securities and fixed maturity securities) at March 31, 2021, other than investments issued or guaranteed by the United States Government. Real Estate Held for Investment and Held for Sale The Company strategically deploys resources into real estate to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business units in the form of acquisition, development and mortgage foreclosures. Commercial Real Estate Held for Investment and Held for Sale The Company owns and manages commercial real estate assets as a means of generating investment income. These assets are acquired in accordance with the Company’s goals and objectives for risk-adjusted returns. Due diligence is conducted on each asset using internal and third-party reports. Geographic locations and asset classes of the investment activity is determined by senior management under the direction of the Board of Directors. The Company employs full-time employees to attend to the day-to-day operations of those assets within the greater Salt Lake area and close surrounding markets. The Company utilizes third party property managers when the geographic boundary does not warrant full-time staff or through strategic lease-up periods. The Company generally looks to acquire assets in regions that are high growth regions for employment and population and in assets that provide operational efficiencies. The Company currently owns and operates 11 commercial properties in 5 states. These properties include office buildings, a funeral home, flex office space, and includes the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company also holds undeveloped land that may be used for future commercial developments. The Company uses bank debt in strategic cases to leverage established yields or to acquire a higher quality or different class of asset. The aggregated net ending balance of commercial real estate that serves as collateral for bank loans was $99,547,615 and $71,517,902 as of March 31, 2021 and December 31, 2020, respectively. The associated bank loan carrying values totaled $55,831,600 and $46,153,283 as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, the Company recorded impairment losses on commercial real estate held for sale of $-0- and $31,429, respectively. These impairment losses relate to an office building held by the life insurance segment. Impairment losses are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings. The following is a summary of the Company’s commercial real estate held for investment for the periods presented: Net Ending Balance Total Square Footage March 31 December 31 March 31 December 31 Utah (1) $ 111,008,057 $ 100,927,528 379,066 379,066 Louisiana 2,981,296 2,998,684 84,841 84,841 Mississippi 2,909,508 2,914,498 21,521 21,521 California 389,145 - 2,872 - $ 117,288,006 $ 106,840,710 488,300 485,428 (1) Includes Center53 phase 1 and phase 2 which is under construction. The following is a summary of the Company’s commercial real estate held for sale for the periods presented: Net Ending Balance Total Square Footage March 31 December 31 March 31 December 31 Kansas 4,000,000 4,000,000 222,679 222,679 Texas (1) 249,000 249,000 - - Mississippi 151,553 151,553 - - $ 4,400,553 $ 4,400,553 222,679 222,679 (1) Improved commercial pad These properties are all actively being marketed with the assistance of commercial real estate brokers in the markets where the properties are located. The Company expects these properties to sell within the coming 12 months. Residential Real Estate Held for Investment and Held for Sale The Company owns a small portfolio of residential homes primarily as a result of loan foreclosures. The Company has the option to sell them or to continue to hold them for cash flow and acceptable returns. The Company also invests in residential subdivision land developments. The Company established Security National Real Estate Services (“SNRE”) to manage the residential portfolio. SNRE cultivates and maintains the preferred vendor relationships necessary to manage costs and quality of work performed on the portfolio of homes across the country. As of March 31, 2021, SNRE manages 5 residential properties in 4 states across the United States. The net ending balance of foreclosed residential real estate included in residential real estate held for investment and sale is $1,657,285 and $4,327,079 as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020 the Company did not record any impairment losses on residential real estate held for investment or held for sale. Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings. The following is a summary of the Company’s residential real estate held for investment for the periods presented: Net Ending Balance March 31 December 31 2020 Utah (1) 39,466,349 $ 24,557,562 Washington (2) 286,181 286,181 $ 39,752,530 $ 24,843,743 (1) Includes subdivision land developments (2) Improved residential lots Additional information regarding the Company’s subdivision land developments in Utah is summarized as follows: March 31 December 31 2020 Lots available for sale 81 36 Lots to be developed 369 350 Ending Balance (1) $ 39,251,557 $ 23,777,478 (1) The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively. The following is a summary of the Company’s residential real estate held for sale for the periods presented: Net Ending Balance March 31 December 31 2020 Nevada $ 979,640 $ 979,640 Florida 166,673 744,322 Ohio 10,000 10,000 Utah - 1,744,292 $ 1,156,313 $ 3,478,254 These properties are all actively being marketed with the assistance of residential real estate brokers in the markets where the properties are located. The Company expects these properties to sell within the coming 12 months. Real Estate Owned and Occupied by the Company The primary business units of the Company occupy a portion of the real estate owned by the Company. As of March 31, 2021, real estate owned and occupied by the Company is summarized as follows: Location Business Segment Approximate Square Footage Square Footage Occupied by the Company 121 W. Election Rd., Draper, UT Corporate Offices, Life Insurance and 78,979 18% 5201 Green Street, Salt Lake City, UT (1) Life Insurance and Mortgage Operations 39,157 73% 1044 River Oaks Dr., Flowood, MS Life Insurance Operations 19,694 28% 1818 Marshall Street, Shreveport, LA (1) Life Insurance Operations 12,274 100% 909 Foisy Street, Alexandria, LA (1) Life Insurance Sales 8,059 100% 812 Sheppard Street, Minden, LA (1) Life Insurance Sales 1,560 100% 1550 N 3rd Street, Jena, LA (1) Life Insurance Sales 1,737 100% (1) Included in property and equipment on the condensed consolidated balance sheets Mortgage Loans Held for Investment Mortgage loans held for investment consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0% to 10.5%, maturity dates range from nine months to 30 years and are secured by real estate. Concentrations of credit risk arise when a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of its debtors’ ability to honor obligations is reliant on the economic stability of the geographic region in which the debtors do business. At March 31, 2021, the Company had 54%, 14%, 9%, 3%, 3% and 3% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, California, Nevada, and Arizona, respectively. At December 31, 2020, the Company had 57%, 13%, 9%, 4%, 3% and 3% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, California, Nevada and Arizona, respectively. Mortgage loans held for investment are Mortgage loans are secured by the underlying property and require an appraisal at the time of underwriting and funding. Generally, the Company will fund a loan not to exceed 80% of the loan’s collateral fair market value. Amounts over 80% will require additional collateral or mortgage insurance by an approved third-party insurer. The Company provides for losses on its mortgage loans held for investment through an allowance for loan losses (a contra-asset account). The allowance is comprised of two components. The first component is an allowance for collectively evaluated impairment that is based upon the Company’s historical experience in collecting similar receivables. The second component is based upon individual evaluation of loans that are determined to be impaired. Upon determining impairment, the Company establishes an individual impairment allowance based upon an assessment of the fair value of the underlying collateral. The allowance for losses on mortgage loans held for investment could change based on changes in the value of the underlying collateral, the performance status of the loans, or the Company’s actual collection experience. The actual losses could change, in the near term, from the established allowance, based upon the occurrence or non-occurrence of these events. For purposes of determining the allowance for losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows: Commercial Residential Residential construction (including land acquisition and development) The Company establishes a valuation allowance for credit losses in its mortgage loans held for investment portfolio. The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented: Commercial Residential Residential Construction Total March 31, 2021 Allowance for credit losses: Beginning balance - January 1, 2021 $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Charge-offs - - - - Provision - (107,972) - (107,972) Ending balance - March 31, 2021 $ 187,129 $ 1,666,824 $ 43,202 $ 1,897,155 Ending balance: individually evaluated for impairment $ - $ 207,578 $ - $ 207,578 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,459,246 $ 43,202 $ 1,689,577 Mortgage loans: Ending balance $ 55,065,455 $ 88,266,355 $ 105,450,591 $ 248,782,401 Ending balance: individually evaluated for impairment $ 1,068,365 $ 4,436,082 $ 200,963 $ 5,705,410 Ending balance: collectively evaluated for impairment $ 53,997,090 $ 83,830,273 $ 105,249,628 $ 243,076,991 December 31, 2020 Allowance for credit losses: Beginning balance $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Charge-offs - - - - Provision - 552,090 - 552,090 Ending balance $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Ending balance: individually evaluated for impairment $ - $ 219,905 $ - $ 219,905 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,554,891 $ 43,202 $ 1,785,222 Mortgage loans: Ending balance $ 46,836,866 $ 111,111,777 $ 95,822,448 $ 253,771,091 Ending balance: individually evaluated for impairment $ 2,148,827 $ 7,932,680 $ 200,963 $ 10,282,470 Ending balance: collectively evaluated for impairment $ 44,688,039 $ 103,179,097 $ 95,621,485 $ 243,488,621 The following is a summary of the aging of mortgage loans held for investment for the periods presented: Commercial Residential Residential Total March 31, 2021 30-59 Days Past Due $ - $ 4,352,659 $ 301,071 $ 4,653,730 60-89 Days Past Due 2,027,048 1,317,057 - 3,344,105 Greater Than 90 Days (1) 817,429 2,522,314 - 3,339,743 In Process of Foreclosure (1) 250,936 1,913,768 200,963 2,365,667 Total Past Due 3,095,413 10,105,798 502,034 13,703,245 Current 51,970,042 78,160,557 104,948,557 235,079,156 Total Mortgage Loans 55,065,455 88,266,355 105,450,591 248,782,401 Allowance for Loan Losses (187,129) (1,666,824) (43,202) (1,897,155) Unamortized deferred loan fees, net (115,893) (951,108) (156,013) (1,223,014) Unamortized discounts, net (358,587) (351,693) - (710,280) Net Mortgage Loans $ 54,403,846 $ 85,296,730 $ 105,251,376 $ 244,951,952 December 31, 2020 30-59 Days Past Due $ 233,200 $ 5,866,505 $ 127,191 $ 6,226,896 60-89 Days Past Due 812,780 2,048,148 - 2,860,928 Greater Than 90 Days (1) 2,148,827 5,669,583 - 7,818,410 In Process of Foreclosure (1) - 2,263,097 200,963 2,464,060 Total Past Due 3,194,807 15,847,333 328,154 19,370,294 Current 43,642,059 79,975,115 110,783,623 234,400,797 Total Mortgage Loans 46,836,866 95,822,448 111,111,777 253,771,091 Allowance for Loan Losses (187,129) (1,774,796) (43,202) (2,005,127) Unamortized deferred loan fees, net (32,557) (909,864) (218,711) (1,161,132) Unamortized discounts, net (880,721) (380,175) - (1,260,896) Net Mortgage Loans $ 45,736,459 $ 92,757,613 $ 110,849,864 $ 249,343,936 (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. Impaired Mortgage Loans Held for Investment Impaired mortgage loans held for investment include loans with a related specific valuation allowance or loans whose carrying amount has been reduced to the expected collectible amount because the impairment has been considered other than temporary. The recorded investment in and unpaid principal balance of impaired loans along with the related loan specific allowance for losses, if any, for each reporting period and the average recorded investment and interest income recognized during the time the loans were impaired were as follows: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2021 With no related allowance recorded: Commercial $ 1,068,365 $ 1,068,365 $ - $ 1,068,365 $ - Residential 3,054,262 3,054,262 - 3,054,262 - Residential construction 200,963 200,963 - 200,963 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,381,820 1,381,820 207,578 1,381,820 - Residential construction - - - - - Total: Commercial $ 1,068,365 $ 1,068,365 $ - $ 1,068,365 $ - Residential 4,436,082 4,436,082 207,578 4,436,082 - Residential construction 200,963 200,963 - 200,963 - December 31, 2020 With no related allowance recorded: Commercial $ 2,148,827 $ 2,148,827 $ - $ 1,866,819 $ - Residential 6,415,419 6,415,419 - 5,010,078 - Residential construction 200,963 200,963 - 555,278 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,517,261 1,517,261 219,905 1,182,368 - Residential construction - - - - - Total: Commercial $ 2,148,827 $ 2,148,827 $ - $ 1,866,819 $ - Residential 7,932,680 7,932,680 219,905 6,192,446 - Residential construction 200,963 200,963 - 555,278 - Credit Risk Profile Based on Performance Status The Company’s mortgage loan held for investment portfolio is monitored based on performance of the loans. Monitoring a mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The Company defines non-performing mortgage loans as loans 90 days or greater delinquent or on non-accrual status. The Company’s performing and non-performing mortgage loans held for investment were as follows: Commercial Residential Residential Construction Total March December March December March December March December Performing $ 53,997,090 $ 44,688,039 $ 83,830,273 $ 87,889,768 $ 105,249,628 $ 110,910,814 $ 243,076,991 $ 243,488,621 Non-performing 1,068,365 2,148,827 4,436,082 7,932,680 200,963 200,963 5,705,410 10,282,470 Total $ 55,065,455 $ 46,836,866 $ 88,266,355 $ 95,822,448 $ 105,450,591 $ 111,111,777 $ 248,782,401 $ 253,771,091 Non-Accrual Mortgage Loans Held for Investment Once a loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and write off any interest income that had been accrued. Payments received for loans on a non-accrual status are recognized on a cash basis. Interest income recognized from any payments received for loans on a non-accrual status was immaterial. Accrual of interest resumes if a loan is brought current. Interest not accrued on these loans totals approximately $321,000 and $491,000 as of March 31, 2021 and December 31, 2020, respectively. The following is a summary of mortgage loans held for investment on a non-accrual status for the periods presented. As of March 31 As of December 31 Commercial $ 1,068,365 $ 2,148,827 Residential 4,436,082 7,932,680 Residential construction 200,963 200,963 Total $ 5,705,410 $ 10,282,470 |
4) Loans Held For Sale
4) Loans Held For Sale | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
4) Loans Held For Sale | 4) Loans Held for Sale The Company has elected the fair value option for loans held for sale. Changes in the fair value of the loans are included in mortgage fee income. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on mortgage loans held for investment and is included in mortgage fee income on the condensed consolidated statement of earnings. See Note 8 to the condensed consolidated financial statements for additional disclosures regarding loans held for sale. The following is a summary of the aggregate fair value and the aggregate unpaid principal balance of loans held for sale for the periods presented: As of March 31 As of December 31 Aggregate fair value $ 304,030,372 $ 422,772,418 Unpaid principal balance 294,207,728 406,407,323 Unrealized gain 9,822,644 16,365,095 Mortgage Fee Income Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination and sale of mortgage loans held for sale. Major categories of mortgage fee income for loans held for sale are as follows: Three Months Ended March 31 2021 2020 Loan fees $ 9,539,956 $ 8,916,153 Interest income 2,311,802 1,680,459 Secondary gains 68,438,933 26,641,492 Change in fair value of loan commitments 314,466 3,275,032 Change in fair value of loans held for sale (6,945,882) 381,734 Provision for loan loss reserve (660,663) (613,109) Mortgage fee income $ 72,998,612 $ 40,281,761 Loan Loss Reserve When a repurchase demand corresponding to a mortgage loan previously held for sale and sold to a third-party investor is received from a third-party investor, the relevant data is reviewed and captured so that an estimated future loss can be calculated. The key factors that are used in the estimated loss calculation are as follows: (i) lien position, (ii) payment status, (iii) claim type, (iv) unpaid principal balance, (v) interest rate, and (vi) validity of the demand. Other data is captured and is useful for management purposes; the actual estimated loss is generally based on these key factors. The Company conducts its own review upon the receipt of a repurchase demand. In many instances, the Company is able to resolve the issues relating to the repurchase demand by the third-party investor without having to make any payments to the investor. The following is a summary of the loan loss reserve that is included in other liabilities and accrued expenses: As of March 31 As of December 31 Balance, beginning of period $ 20,583,618 $ 4,046,288 Provision on current loan originations (1) 660,663 4,938,214 Additional provision for loan loss reserve - 16,506,030 Charge-offs, net of recaptured amounts (19,039,298) (4,906,914) Balance, end of period $ 2,204,983 $ 20,583,618 (1) Included in mortgage fee income The Company maintains reserves for estimated losses on current production volumes. For the three months ended March 31, 2021, $660,663 in reserves were added at a rate of 4.5 basis points per loan, the equivalent of $450 per $1,000,000 in loans originated. This is an increase over the three months ended March 31, 2020, when reserves were added at a rate of 2.5 basis points per loan originated, the equivalent of $250 per $1,000,000 in loans originated. The Company also increased its loan loss reserve for the year ended December 31, 2020 by an additional $16,506,030 to account for changes in estimates specific to settlements of loan losses. . The economic impact of COVID-19 and subsequent government action has increased the potential for losses due to early payoff penalties and potential for losses due to increased delinquency. The unique nature of these current events creates significant difficulty for forecasting potential future losses. The Company will continue to monitor data and economic conditions in order to maintain adequate loss reserves on current production. Thus, the Company believes that the final loan loss reserve as of March 31, 2021, represents its best estimate for adequate loss reserves on loans sold. |
5) Stock Compensation Plans
5) Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
5) Stock-based Compensation | 5) Stock Compensation Plans The Company has two fixed option plans (the “2013 Plan” and the “2014 Director Plan”). Compensation expense for options issued of $39,153 and $65,877 has been recognized for these plans for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the total unrecognized compensation expense related to the options issued was $-0-. The fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant. A summary of the status of the Company’s stock compensation plans as of March 31, 2021, and the changes during the three months ended March 31, 2021, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2021 1,072,863 $ 4.33 662,666 $ 4.73 Adjustment for effect of stock dividends - - Granted - - Exercised (32,925) - Cancelled - - Outstanding at March 31, 2021 1,039,938 $ 4.34 662,666 $ 4.73 As of March 31, 2021: Options exercisable 1,039,938 $ 4.34 662,666 $ 4.73 As of March 31, 2021: Available options for future grant 330,371 266,500 Weighted average contractual term of options outstanding at March 31, 2021 6.28years 6.71years Weighted average contractual term of options exercisable at March 31, 2021 6.28years 6.71years Aggregated intrinsic value of options outstanding at March 31, 2021 (1) $ 5,212,677 $ 3,059,620 Aggregated intrinsic value of options exercisable at March 31, 2021 (1) $ 5,212,677 $ 3,059,620 (1) The Company used a stock price of $9.35 as of March 31, 2021 to derive intrinsic value. A summary of the status of the Company’s stock compensation plans as of March 31, 2020, and the changes during the three months ended March 31, 2020, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2020 1,086,053 $ 4.41 594,132 $ 5.36 Adjustment for effect of stock dividends 829 - Granted 37,500 90,000 Exercised (42,294) - Cancelled - - Outstanding at March 31, 2020 1,082,088 $ 4.44 684,132 $ 5.15 As of March 31, 2020: Options exercisable 985,366 $ 4.42 452,381 $ 5.39 As of March 31, 2020: Available options for future grant 97,218 - Weighted average contractual term of options outstanding at March 31, 2020 5.57years 5.96years Weighted average contractual term of options exercisable at March 31, 2020 5.16years 4.70years Aggregated intrinsic value of options outstanding at March 31, 2020 (1) $ 489,237 $ 41,150 Aggregated intrinsic value of options exercisable at March 31, 2020 (1) $ 471,642 $ - (1) The Company used a stock price of $4.27 as of March 31, 2020 to derive intrinsic value. The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the three months March 31, 2021 and 2020 was $139,035 and $73,072, respectively. |
6) Earnings Per Share
6) Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
6) Earnings Per Share | 6) Earnings Per Share The basic and diluted earnings per share amounts were calculated as follows: Three Months Ended 2021 2020 Numerator: Net earnings $ 12,128,715 $ 1,424,449 Denominator: Basic weighted-average shares outstanding 19,124,001 18,641,950 Effect of dilutive securities: Employee stock options 884,049 191,446 Diluted weighted-average shares outstanding 20,008,050 18,833,396 Basic net earnings per share $ 0.63 $ 0.08 Diluted net earnings per share $ 0.61 $ 0.08 Net earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. For the three months March 31, 2021 and 2020, there were -0- and 1,316,506 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive. Basic and diluted earnings per share amounts are the same for each class of common stock. The following table summarizes the activity in shares of capital stock for the periods presented: Class A Class C Outstanding shares at December 31, 2019 16,107,779 2,500,887 Exercise of stock options 22,411 - Stock dividends 404,839 61,720 Conversion of Class C to Class A 11,162 (11,162) Outstanding shares at March 31, 2020 16,546,191 2,551,445 Outstanding shares at December 31, 2020 16,595,783 2,679,603 Exercise of stock options 27,926 - Stock dividends - - Conversion of Class C to Class A 48,527 (48,527) Outstanding shares at March 31, 2021 16,672,236 2,631,076 |
7) Business Segment Information
7) Business Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
7) Business Segment Information | 7) Business Segment Information Description of Products and Services by Segment The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage segment consists of fee income and expenses from the originations of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale. Measurement of Segment Profit or Loss and Segment Assets The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the Form 10-K for the year ended December 31, 2020. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation. Factors Management Used to Identify the Enterprise’s Reportable Segments The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported. Life Insurance Cemetery/ Mortgage Intercompany Consolidated For the Three Months Ended March 31, 2021 Revenues from external customers $ 38,943,834 $ 6,999,265 $ 76,715,507 $ - $ 122,658,606 Intersegment revenues 1,902,052 77,507 161,016 (2,140,575) - Segment profit before income taxes 2,695,028 2,700,945 10,959,082 - 16,355,055 Identifiable Assets 1,174,305,180 57,269,639 337,524,300 (84,391,181) 1,484,707,938 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,177,070,750 58,023,657 337,524,300 (84,391,181) 1,488,227,526 - For the Three Months Ended March 31, 2020 Revenues from external customers $ 33,205,762 $ 4,013,696 $ 42,389,491 $ - $ 79,608,949 Intersegment revenues 908,168 103,514 200,332 (1,212,014) - Segment profit before income taxes (3,069,167) 104,801 4,438,600 - 1,474,234 Identifiable Assets 1,124,244,140 79,695,043 278,195,425 (109,493,359) 1,372,641,249 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,127,009,710 80,449,061 278,195,425 (109,493,359) 1,376,160,837 |
8) Fair Value of Financial Inst
8) Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
8) Fair Value of Financial Instruments | 8) Fair Value of Financial Instruments GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: Level 1: Level 2: a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active markets; or c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: The Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value. The following methods and assumptions were used by the Company in estimating the fair value disclosures related to significant financial instruments. The items shown under Level 1 and Level 2 are valued as follows: Fixed Maturity Securities Available for Sale Equity Securities Restricted Assets Cemetery Perpetual Care Trust Investments Call and Put Option Derivatives The items shown under Level 3 are valued as follows: Loans Held for Sale Loan Commitments and Forward Sale Commitments The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted MBS prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments. Impaired Mortgage Loans Held for Investment The Company believes that the fair value of these nonperforming loans will approximate the unpaid principal balance expected to be recovered based on the fair value of the underlying collateral. For residential and commercial properties, the collateral value is estimated by obtaining an independent appraisal. The appraisal typically considers area comparables and property condition as well as potential rental income that could be generated (particularly for commercial properties). For residential construction loans, the collateral is typically incomplete, so fair value is estimated as the replacement cost using data from a provider of building cost information to the real estate construction. Impaired Real Estate Held for Investment The Company believes that in an orderly market, fair value will approximate the replacement cost of a home and the rental income provides a cash flow stream for investment analysis. The Company believes the highest and best use of the properties are as income producing assets since it is the Company’s intent to hold the properties as rental properties, matching the income from the investment in rental properties with the funds required for future estimated policy claims. It should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider of building cost information to the real estate construction industry. For the investment analysis, the Company uses market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company also considers area comparables and property condition when determining fair value. In addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment. This depreciation reduces the book value of these properties and lessens the exposure to the Company from further deterioration in real estate values. Mortgage Servicing Rights The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at March 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 279,550,528 $ - $ 277,359,435 $ 2,191,093 Equity securities 11,154,495 11,154,495 - - Loans held for sale 304,030,372 - - 304,030,372 Restricted assets (1) 1,456,017 - 1,456,017 - Restricted assets (2) 2,704,704 2,704,704 - - Cemetery perpetual care trust investments (1) 738,979 - 738,979 - Cemetery perpetual care trust investments (2) 2,208,138 2,208,138 - - Derivatives - loan commitments (3) 10,671,623 - - 10,671,623 Total assets accounted for at fair value on a recurring basis $ 612,514,856 $ 16,067,337 $ 279,554,431 $ 316,893,088 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (79,567) $ (79,567) $ - $ - Derivatives - loan commitments (4) (228,547) - - (228,547) Total liabilities accounted for at fair value on a recurring basis $ (308,114) $ (79,567) $ - $ (228,547) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at December 31, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 294,656,679 $ - $ 292,455,504 $ 2,201,175 Equity securities 11,324,239 11,324,239 - - Loans held for sale 422,772,418 - - 422,772,418 Restricted assets (1) 1,473,637 - 1,473,637 - Restricted assets (2) 2,515,778 2,515,778 - - Cemetery perpetual care trust investments (1) 747,767 - 747,767 - Cemetery perpetual care trust investments (2) 2,062,303 2,062,303 - - Derivatives - loan commitments (3) 12,592,672 - - 12,592,672 Total assets accounted for at fair value on a recurring basis $ 748,145,493 $ 15,902,320 $ 294,676,908 $ 437,566,265 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (43,097) $ (43,097) $ - $ - Derivatives - loan commitments (4) (2,464,062) - - (2,464,062) Total liabilities accounted for at fair value on a recurring basis $ (2,507,159) $ (43,097) $ - $ (2,464,062) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 3/31/2021 Technique Input(s) Value Value Average Loans held for sale $ 304,030,372 Market approach Investor contract pricing as a percentage of unpaid principal balance 95.0% 109.0% 103.0% Derivatives - loan commitments (net) 10,443,076 Market approach Pull-through rate 61.0% 92.0% 82.0% Initial-Value N/A N/A N/A Servicing 0 bps 129 bps 55 bps Fixed maturity securities available for sale 2,191,093 Broker quotes Pricing quotes $ 90.83 $ 119.33 $ 113.57 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2020 Technique Input(s) Value Value Average Loans held for sale $ 422,772,418 Market approach Investor contract pricing as a percentage of unpaid principal balance 99.0% 110.0% 104.0% Derivatives - loan commitments (net) 10,128,610 Market approach Pull-through rate 52.0% 92.0% 81.0% Initial-Value N/A N/A N/A Servicing 0 bps 184 bps 58 bps Fixed maturity securities available for sale 2,201,175 Broker quotes Pricing quotes $ 90.83 $ 119.33 $ 113.47 Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2020 $ 10,128,610 $ 422,772,418 $ 2,201,175 Originations and purchases - 1,449,841,009 - Sales, maturities and paydowns - (1,614,880,058) (11,100) Transfer to mortgage loans held for investment - (201,951) - Total gains (losses): Included in earnings 314,466 (1) 46,498,954 (1) 893 (2) Included in other comprehensive income - - 125 Balance - March 31, 2021 $ 10,443,076 $ 304,030,372 $ 2,191,093 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2019 $ 2,491,233 $ 213,457,632 $ 3,216,382 Originations and purchases - 792,193,592 - Sales, maturities and paydowns - (739,130,456) (10,300) Transfer to mortgage loans held for investment - (8,933,676) - Total gains (losses): Included in earnings 3,275,032 (1) 23,465,484 (1) 828 (2) Included in other comprehensive income - - 68,416 Balance - March 31, 2020 $ 5,766,265 $ 281,052,576 $ 3,275,326 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the condensed consolidated balance sheet at March 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a nonrecurring basis Impaired mortgage loans held for investment $ 1,174,242 $ - $ - $ 1,174,242 Total assets accounted for at fair value on a nonrecurring basis $ 1,174,242 $ - $ - $ 1,174,242 The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the condensed consolidated balance sheet at December 31, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a nonrecurring basis Impaired mortgage loans held for investment $ 1,297,356 $ - $ - $ 1,297,356 Impaired real estate held for sale 4,249,000 - - 4,249,000 Total assets accounted for at fair value on a nonrecurring basis $ 5,546,356 $ - $ - $ 5,546,356 Fair Value of Financial Instruments Carried at Other Than Fair Value ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at March 31, 2021 and December 31, 2020. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of March 31, 2021: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 85,296,730 $ - $ - $ 90,940,077 $ 90,940,077 Residential construction 105,251,376 - - 105,251,376 105,251,376 Commercial 54,403,846 - - 55,014,500 55,014,500 Mortgage loans held for investment, net $ 244,951,952 $ - $ - $ 251,205,953 $ 251,205,953 Policy loans 13,946,739 - - 13,946,739 13,946,739 Insurance assignments, net (1) 52,955,925 - - 52,955,925 52,955,925 Restricted assets (2) 3,076,760 - - 3,076,760 3,076,760 Cemetery perpetual care trust investments (2) 1,450,600 - - 1,450,600 1,450,600 Mortgage servicing rights, net 42,779,361 - - 55,087,150 55,087,150 Liabilities Bank and other loans payable $ (245,973,378) $ - $ - $ (245,973,378) $ (245,973,378) Policyholder account balances (3) (43,728,587) - - (42,141,870) (42,141,870) Future policy benefits - annuities (3) (108,202,268) - - (112,119,227) (112,119,227) (1) Included in other investments and policy loans on the condensed consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2020: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 92,757,613 $ - $ - $ 100,384,283 $ 100,384,283 Residential construction 110,849,864 - - 110,849,864 110,849,864 Commercial 45,736,459 - - 45,259,425 45,259,425 Mortgage loans held for investment, net $ 249,343,936 $ - $ - $ 256,493,572 $ 256,493,572 Policy loans 14,171,589 - - 14,171,589 14,171,589 Insurance assignments, net (1) 51,585,656 - - 51,585,656 51,585,656 Restricted assets (2) 3,317,877 - - 3,317,877 3,317,877 Cemetery perpetual care trust investments (2) 1,468,600 - - 1,468,600 1,468,600 Mortgage servicing rights, net 35,210,516 - - 38,702,358 38,702,358 Liabilities Bank and other loans payable $ (297,824,368) $ - $ - $ (297,824,368) $ (297,824,368) Policyholder account balances (3) (44,026,809) - - (42,220,725) (42,220,725) Future policy benefits - annuities (3) (106,522,113) - - (112,354,186) (112,354,186) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of these financial instruments are summarized as follows: Mortgage Loans Held for Investment Residential – The estimated fair value is determined through a combination of discounted cash flows (estimating expected future cash flows of payments and discounting them using current interest rates from single family mortgages) and considering pricing of similar loans that were sold recently. Residential Construction – These loans are primarily short in maturity. Accordingly, the estimated fair value is determined to be the carrying value. Commercial – The estimated fair value is determined by estimating expected future cash flows of payments and discounting them using current interest rates for commercial mortgages. Policy Loans Insurance Assignments, Net Bank and Other Loans Payable The carrying amounts reported in the accompanying condensed consolidated balance sheet for these financial instruments approximate their fair values due to their relatively short-term maturities and variable interest rates. Policyholder Account Balances and Future Policy Benefits-Annuities Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 1.5% to 6.5%. The fair values for these investment-type insurance contracts are estimated based on the present value of liability cash flows. The fair values for the Company’s insurance contracts other than investment-type contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. |
9) Allowance For Doubtful Accou
9) Allowance For Doubtful Accounts | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
9) Allowance for Doubtful Accounts | 9) Allowance for Doubtful Accounts The Company records an allowance and recognizes an expense for potential losses from other investments and receivables in accordance with generally accepted accounting principles. Receivables are the result of cemetery and mortuary operations, mortgage loan operations and life insurance operations. The allowance is based upon the Company’s historical experience for collectively evaluated impairment. Other allowances are based upon receivables individually evaluated for impairment. Collectability of the cemetery and mortuary receivables is significantly influenced by current economic conditions. The critical issues that impact recovery of mortgage loan operations are interest rate risk, loan underwriting, new regulations and the overall economy |
10) Derivative Instruments
10) Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
10) Derivative Instruments | 10) Derivative Instruments Mortgage Banking Derivatives Loan Commitments The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded or the loan application is denied or withdrawn within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment. In general, the probability of funding increases if mortgage rates rise and decreases if mortgage rates fall. This is due primarily to the relative attractiveness of current mortgage rates compared to the applicant’s committed rate. The probability that a loan will not be funded within the terms of the mortgage loan commitment also is influenced by the source of the applications (retail, broker or correspondent channels), proximity to rate lock expiration, purpose for the loan (purchase or refinance), product type and the application approval status. The Company has developed fallout estimates using historical data that take into account all of the variables, as well as renegotiations of rate and point commitments that tend to occur when mortgage rates fall. These fallout estimates are used to estimate the number of loans that the Company expects to be funded within the terms of the loan commitments and are updated periodically to reflect the most current data. The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued and is shown net of expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Forward Sale Commitments The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments. The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the condensed consolidated balance sheets. Call and Put Options The Company uses a strategy of selling “out of the money” call options on its equity securities as a source of revenue. The options give the purchaser the right to buy from the Company specified equity securities at a set price up to a pre-determined date in the future. The Company uses the strategy of selling put options as a means of generating cash or purchasing equity securities at lower than current market prices. The Company receives an immediate payment of cash for the value of the option and establishes a liability for the fair value of the option. The liability for options is adjusted to fair value at each reporting date. In the event a call option is exercised, the Company sells the equity security at a favorable price enhanced by the value of the option that was sold. If the option expires unexercised, the Company recognizes a gain from the expired option. In the event a put option is exercised, the Company acquires an equity security at the strike price of the option reduced by the value received from the sale of the put option. The equity security is then treated as a normal equity security in the Company’s portfolio. The net changes in the fair value of call and put options are shown in current earnings as a component of realized gains (losses) on investments and other assets. Call and put options are shown in other liabilities and accrued expenses on the condensed consolidated balance sheets. The following table shows the notional amount and fair value of derivatives as of March 31, 2021 and December 31, 2020. Fair Values and Notional Values of Derivative Instruments March 31, 2021 December 31, 2020 Balance Sheet Location Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives not designated as hedging instruments: Loan commitments Other assets and Other liabilities $ 817,802,853 $ 10,671,623 $ 228,547 $ 659,245,038 $ 12,592,672 $ 2,464,062 Call options Other liabilities 2,042,500 - 79,567 1,873,200 - 43,097 Total $ 819,845,353 $ 10,671,623 $ 308,114 $ 661,118,238 $ 12,592,672 $ 2,507,159 The following table shows the gains and losses on derivatives for the periods presented. Net Amount Gain (Loss) Three Months Ended March 31 Derivative Classification 2021 2020 Loan commitments Mortgage fee income $ 314,466 $ 3,275,032 Call and put options Gains on investments and other assets $ 26,762 $ (737,860) |
11) Reinsurance, Commitments an
11) Reinsurance, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
11) Reinsurance, Commitments and Contingencies | 11) Reinsurance, Commitments and Contingencies Reinsurance The Company follows the procedure of reinsuring risks in excess of a specified limit, which ranges from $25,000 to $100,000. The Company is liable for these amounts in the event such reinsurers are unable to pay their portion of the claims. The Company has also assumed insurance from other companies. Mortgage Loan Loss Settlements Future loan losses can be extremely difficult to estimate. However, the Company believes that the Company’s reserve methodology and its current practice of property preservation allow it to estimate its potential losses on loans sold. The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of March 31, 2021 and December 31, 2020, the balances were $2,204,983 and $20,583,618, respectively. The Company believes that the final loan loss reserve as of March 31, 2021, represents its best estimate for adequate loss reserves on loans sold. Mortgage Loan Loss Litigation Settlement Agreement and Mutual Release with Lehman Brothers Holdings Inc. From 2004 to early 2008, SecurityNational Mortgage Company (“SecurityNational Mortgage”), a wholly owned subsidiary of the Company, originated “limited documentation” or “reduced documentation” loans which were sold to certain affiliates of Lehman Brothers Holdings Inc. (“Lehman Holdings”). Certain of these loans became the subject of disputes between SecurityNational Mortgage and Lehman Holdings and certain Lehman Holdings affiliates. Lehman Holdings filed a Petition for Relief under Chapter 11 of the United States Bankruptcy Code in 2008. In May of 2011, SecurityNational Mortgage filed a complaint in U.S. District Court against certain Lehman Holdings affiliates. In June of 2011, Lehman Holdings filed a complaint in Federal District Court against SecurityNational Mortgage, both of which were later resolved. In 2016, certain other pending loan disputes between SecurityNational Mortgage and Lehman Holdings became the subject of an unsuccessful, non-binding alternate dispute resolution mediation proceeding. Thereafter, in 2016, Lehman Holdings filed an adversary proceeding complaint against approximately 150 mortgage loan originators, including SecurityNational Mortgage, in the U.S. Bankruptcy Court of the Southern District of New York, which included seeking damages relating to the alleged obligations of the defendants under indemnification provisions of alleged agreements, in amounts to be determined at trial, including interest, attorneys’ fees and costs incurred by Lehman Holdings in enforcing the obligations of the defendants. The complaint was later amended with the latest amended complaint filed against SecurityNational Mortgage on December 27, 2016, seeking damages to be determined at trial, including interest, attorneys’ fees and costs. This complaint involved approximately 135 mortgage loans, there being millions of dollars allegedly in dispute. These claims against SecurityNational Mortgage were asserted as a result of Lehman Holdings’ earlier settlements with the FederalNational Mortgage Association (“Fannie Mae”) and the Federal Home Loan Corporation (“Freddie Mac”). In 2018, Lehman Holdings filed a separate adversary proceeding complaint against SecurityNational Mortgage. This adversary proceeding allegedly involved approximately 577 mortgage loans relative to private securitization trusts (“RMBS Loans”) and millions of dollars in damages. Thereafter, Lehman Holdings made a filing that effectively reduced the number of RMBS Loans to 248. This proceeding was in addition to the above-referenced proceeding involving the Fannie Mae and Freddie Mac mortgage loans. As with the above-referenced proceeding, damages were sought including interest, costs, and attorneys’ fees. SecurityNational Mortgage, as well as other defendants, have been involved in written discovery, and production of documents relative to the cases, and the filing of motions. The deposition phase of the cases was yet to begin, as well as the later expert witness phase. Those phases would require substantial expenditures of legal fees and costs. On February 1, 2021, SecurityNational Mortgage executed a settlement agreement with Lehman Holdings in relation to these two adversary proceedings wherein all mortgage loan related claims were resolved, thereby ending all liabilities asserted by Lehman Holdings and conclusively ending all proceedings between SecurityNational Mortgage and Lehman Holdings. In accordance with GAAP, the full amount of SecurityNational Mortgage’s settlement payment was accounted for in the Company’s loan loss reserve as of December 31, 2020 and was paid during the first quarter 2021. Debt Covenants for Mortgage Warehouse Lines of Credit The Company, through its subsidiary SecurityNational Mortgage, has a $150,000,000 line of credit with Wells Fargo Bank N.A. The agreement charges interest at the 1-Month LIBOR rate plus 2.1% and matures on June 24, 2021. SecurityNational Mortgage is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, the ratio of indebtedness to adjusted tangible net worth, and the liquidity overhead coverage ratio, and a quarterly gross profit of at least $1.00. The Company, through its subsidiary SecurityNational Mortgage, has a line of credit with Texas Capital Bank N.A. This agreement with the bank allows SecurityNational Mortgage to borrow up to $175,000,000 for the sole purpose of funding mortgage loans. The agreement charges interest at the 1-Month LIBOR rate plus 2% and matures on November 15, 2021. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1.00 on a rolling four-quarter basis. The Company through its subsidiary SecurityNational Mortgage, has a line of credit with Comerica Bank. This agreement with the bank allows SecurityNational Mortgage to borrow up to $90,000,000 for the sole purpose of funding mortgage loans. The agreement charges interest at the 1-Month LIBOR rate plus 2.5% and matures on May 27, 2021. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1.00 on a rolling twelve months. The Company, through its subsidiary EverLEND Mortgage, has a line of credit with Texas Capital Bank N.A. This agreement with the bank allows EverLEND Mortgage to borrow up to $5,000,000 for the sole purpose of funding mortgage loans. The agreement charges interest at the 1-Month LIBOR rate plus 2.5% and matures on August 1, 2021. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1.00 on a rolling four-quarter basis. The agreements for warehouse lines include cross default provisions in that a covenant violation under one agreement constitutes a covenant violation under the other agreement. As of March 31, 2021, the Company believes that it was in compliance with all debt covenants. Other Contingencies and Commitments The Company has entered into commitments to fund construction and land development loans and has also provided financing for land acquisition and development. As of March 31, 2021, the Company’s commitments were approximately $194,792,000 for these loans, of which $109,977,951 had been funded. The Company will advance funds once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees and interest for these loans and the interest rate is generally fixed 5.50% to 8.00% per annum. Maturities range between six and eighteen months. The Company belongs to a captive insurance group for certain casualty insurance, worker compensation and liability programs. Insurance reserves are maintained relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the insurance liabilities and related reserves, the captive insurance management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required. The estimation process contains uncertainty since captive insurance management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. The Company is a defendant in various other legal actions arising from the normal conduct of business. Management believes that none of the actions will have a material effect on the Company’s financial position or results of operations. Based on management’s assessment and legal counsel’s representations concerning the likelihood of unfavorable outcomes, no amounts have been accrued for the above claims in the consolidated financial statements. The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which, if adversely determined, would have a material adverse effect on its financial condition or results of operations. |
12) Mortgage Servicing Rights
12) Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
12) Mortgage Servicing Rights | 12) Mortgage Servicing Rights The Company initially records these MSRs at fair value as discussed in Note 8. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. Amortization expense is included in other expenses on the consolidated statements of earnings. MSR amortization is determined by amortizing the MSR balance in proportion to, and over the period of the estimated future net servicing income of the underlying financial assets. The Company periodically assesses MSRs for impairment. Impairment occurs when the current fair value of the MSR falls below the asset’s carrying value (carrying value is the amortized cost reduced by any related valuation allowance). If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adjusted through a valuation allowance. Management periodically reviews the various loan strata to determine whether the value of the MSRs in a given stratum is impaired and likely to recover. When management deems recovery of the value to be unlikely in the foreseeable future, a write-down of the cost of the MSRs for that stratum to its estimated recoverable value is charged to the valuation allowance. The following is a summary of the MSR activity for the periods presented. As of March 31 As of December 31 Amortized cost: Balance before valuation allowance at beginning of year $ 35,210,516 $ 17,155,529 MSR additions resulting from loan sales 11,008,149 29,896,465 Amortization (1) (3,439,304) (11,841,478) Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance before valuation allowance at end of period $ 42,779,361 $ 35,210,516 Valuation allowance for impairment of MSRs: Balance at beginning of year $ - $ - Additions - - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance at end of period $ - $ - Mortgage servicing rights, net $ 42,779,361 $ 35,210,516 Estimated fair value of MSRs at end of period $ 55,087,150 $ 38,702,358 (1) Included in other expenses on the condensed consolidated statements of earnings The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost: Estimated MSR Amortization 2021 5,760,982 2022 4,670,850 2023 4,116,524 2024 3,617,054 2025 3,191,065 Thereafter 21,422,886 Total $ 42,779,361 The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated statement of earnings: Three Months Ended 2021 2020 Contractual servicing fees $ 3,387,472 $ 1,784,944 Late fees 81,050 97,808 Total $ 3,468,522 $ 1,882,752 The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented: As of March 31 As of December 31 2020 Servicing UPB $ 5,824,986,566 $ 5,070,287,864 The following key assumptions were used in determining MSR value: Prepayment Average Discount March 31, 2021 11.90 6.72 9.50 December 31, 2020 15.60 5.30 9.50 |
13) Income Taxes
13) Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
13) Income Taxes | 13) Income Taxes The Company’s overall effective tax rate for the three months ended March 31, 2021 and 2020 was 25.8% and 3.4%, respectively, which resulted in a provision for income taxes of $4,226,340 and $49,785, respectively. The Company's effective tax rates differ from the U.S. federal statutory rate of 21% partially due to its provision for state income taxes. The effective tax rate in the current period increased when compared to the prior year period partly due the Coronavirus Aid Relief and Economic Security (“CARES”) Act. Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although the Company believes its tax estimates are reasonable, the Company can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in its historical income tax provisions and accruals. |
14) Revenues From Contracts Wit
14) Revenues From Contracts With Customers | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Text Block [Abstract] | |
14) Revenues From Contracts With Customers | 14) Revenues from Contracts with Customers The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers. Information about Performance Obligations and Contract Balances The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The Company’s three types of future obligations are as follows: Pre-need Merchandise and Service Revenue At-need Specialty Merchandise Revenue Deferred Pre-need Land Revenue Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. A transfer of goods and services does not fulfill an obligation and revenue remains deferred. The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2021) $ 4,119,988 $ - $ 13,080,179 Closing (3/31/2021) 3,988,538 - 13,514,055 Increase/(decrease) (131,450) - 433,876 Contract Balances Receivables(1) Contract Asset Contract Liability Opening (1/1/2020) $ 2,778,879 $ - $ 12,607,978 Closing (12/31/2020) 4,119,988 - 13,080,179 Increase/(decrease) 1,341,109 - 472,201 (1) Included in Receivables, net on the condensed consolidated balance sheets The amount of revenue recognized and included in the opening contract liability balance for the three months ended March 31, 2021 and 2020 was $1,135,001 and $950,772, respectively. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Disaggregation of Revenue The following table disaggregates revenue for the Company’s cemetery and mortuary contracts for the periods presented: Three Months Ended 2021 2020 Major goods/service lines At-need $ 4,042,020 $ 3,385,191 Pre-need 1,900,106 1,072,900 $ 5,942,126 $ 4,458,091 Timing of Revenue Recognition Goods transferred at a point in time $ 4,198,673 $ 2,993,704 Services transferred at a point in time 1,743,453 1,464,387 $ 5,942,126 $ 4,458,091 The following table reconciles revenues from cemetery and mortuary contracts to Note 7 – Business Segment Information for the Cemetery/Mortuary Segment for the periods presented: Three Months Ended 2021 2020 Net mortuary and cemetery sales $ 5,942,126 $ 4,458,091 Gains (losses) on investments and other assets 798,340 (660,123) Net investment income 230,304 204,846 Other revenues 28,495 10,882 Revenues from external customers 6,999,265 4,013,696 |
3) Investments (Tables)
3) Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Available for sale | The Company’s investments as of March 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2021 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 42,427,856 $ 1,099,519 $ - $ 43,527,375 Obligations of states and political subdivisions 5,370,754 209,554 (24,569) 5,555,739 Corporate securities including public utilities 179,026,864 21,203,792 (501,358) 199,729,298 Mortgage-backed securities 29,799,733 892,449 (236,547) 30,455,635 Redeemable preferred stock 269,214 13,267 - 282,481 Total fixed maturity securities available for sale $ 256,894,421 $ 23,418,581 $ (762,474) $ 279,550,528 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,913,275 $ 2,586,343 $ (345,123) $ 11,154,495 Total equity securities at estimated fair value $ 8,913,275 $ 2,586,343 $ (345,123) $ 11,154,495 Mortgage loans held for investment at amortized cost: Residential $ 88,266,355 Residential construction 105,450,591 Commercial 55,065,455 Less: Unamortized deferred loan fees, net (1,223,014) Less: Allowance for loan losses (1,897,155) Less: Net discounts (710,280) Total mortgage loans held for investment $ 244,951,952 Real estate held for investment - net of accumulated depreciation: Residential $ 39,752,530 Commercial 117,288,006 Total real estate held for investment $ 157,040,536 Real estate held for sale: Residential $ 1,156,313 Commercial 4,400,553 Total real estate held for sale $ 5,556,866 Other investments and policy loans at amortized cost: Policy loans $ 13,946,739 Insurance assignments 54,618,319 Federal Home Loan Bank stock (1) 2,544,700 Other investments 5,242,786 Less: Allowance for doubtful accounts (1,662,394) Total policy loans and other investments $ 74,690,150 Accrued investment income $ 6,266,403 Total investments $ 779,210,930 (1) Includes $905,700 of Membership stock and $1,639,000 of Activity stock due to short-term borrowings. The Company’s investments as of December 31, 2020 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2020 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 42,381,805 $ 1,358,562 $ - $ 43,740,367 Obligations of states and political subdivisions 5,383,762 312,214 (1,261) 5,694,715 Corporate securities including public utilities 186,067,912 27,216,496 (681,478) 212,602,930 Mortgage-backed securities 31,047,791 1,565,377 (267,106) 32,346,062 Redeemable preferred stock 269,214 3,391 - 272,605 Total fixed maturity securities available for sale $ 265,150,484 $ 30,456,040 $ (949,845) $ 294,656,679 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 9,698,490 $ 2,376,156 $ (750,407) $ 11,324,239 Total equity securities at estimated fair value $ 9,698,490 $ 2,376,156 $ (750,407) $ 11,324,239 Mortgage loans held for investment at amortized cost: Residential $ 95,822,448 Residential construction 111,111,777 Commercial 46,836,866 Less: Unamortized deferred loan fees, net (1,161,132) Less: Allowance for loan losses (2,005,127) Less: Net discounts (1,260,896) Total mortgage loans held for investment $ 249,343,936 Real estate held for investment - net of accumulated depreciation: Residential $ 24,843,743 Commercial 106,840,710 Total real estate held for investment $ 131,684,453 Real estate held for sale: Residential $ 3,478,254 Commercial 4,400,553 Total real estate held for sale $ 7,878,807 Other investments and policy loans at amortized cost: Policy loans $ 14,171,589 Insurance assignments 53,231,131 Federal Home Loan Bank stock (1) 2,506,600 Other investments 5,432,816 Less: Allowance for doubtful accounts (1,645,475) Total policy loans and other investments $ 73,696,661 Accrued investment income $ 5,360,523 Total investments $ 773,945,298 (1) Includes $866,900 of Membership stock and $1,639,700 of Activity stock due to short-term borrowings. |
Schedule of Unrealized Loss on Investments | The following tables summarize unrealized losses on fixed maturity securities available for sale, which were carried at estimated fair value, at March 31, 2021 and December 31, 2020. The unrealized losses were primarily related to interest rate fluctuations and uncertainties relating to COVID-19. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Unrealized Fair Value Unrealized Fair Value Total Fair Value At March 31, 2021 Obligations of States and Political Subdivisions $ 24,569 $ 778,979 $ - $ - $ 24,569 $ 778,979 Corporate Securities 137,661 9,760,180 363,697 9,199,818 501,358 18,959,998 Mortgage and other asset-backed securities 90,713 5,235,918 145,834 2,026,009 236,547 7,261,927 Total unrealized losses $ 252,943 $ 15,775,077 $ 509,531 $ 11,225,827 $ 762,474 $ 27,000,904 At December 31, 2020 Obligations of States and Political Subdivisions $ 1,261 $ 206,812 $ - $ - $ 1,261 $ 206,812 Corporate Securities 242,596 9,919,298 438,882 2,593,026 681,478 12,512,324 Mortgage and other asset-backed securities 266,522 3,455,574 584 51,961 267,106 3,507,535 Total unrealized losses $ 510,379 $ 13,581,684 $ 439,466 $ 2,644,987 $ 949,845 $ 16,226,671 |
Schedule of earnings on fixed maturity securities | The following table presents a rollforward of the Company's cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale for the three months ended March 31: 2021 2020 Balance of credit-related OTTI at January 1 $ 370,975 $ - Additions for credit impairments recognized on: Securities not previously impaired - - Securities previously impaired - - Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (realized) - - Securities due to an increase in expected cash flows - - Balance of credit-related OTTI at March 31 $ 370,975 $ - |
Investments Classified by Contractual Maturity Date | Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated Fair Due in 1 year $ 21,362,110 $ 21,444,660 Due in 2-5 years 66,817,800 71,062,356 Due in 5-10 years 70,609,309 77,487,611 Due in more than 10 years 68,036,255 78,817,785 Mortgage-backed securities 29,799,733 30,455,635 Redeemable preferred stock 269,214 282,481 Total $ 256,894,421 $ 279,550,528 |
Gain (Loss) on Investments | The Company’s net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments are summarized as follows: Three Months Ended March 31 2021 2020 Fixed maturity securities: Gross realized gains $ 97,622 $ 95,821 Gross realized losses (24,997) - Equity securities: Gains (losses) on securities sold 106,569 (57,442) Unrealized gains and (losses) on securities held at the end of the period 952,030 (2,761,856) Other assets: Gross realized gains 1,109,358 457,028 Gross realized losses (280,469) (945,798) Total $ 1,960,113 $ (3,212,247) |
Schedule of Major categories of net investment income | Information regarding sales of fixed maturity securities available for sale is summarized as follows: Three Months Ended March 31 2021 2020 Proceeds from sales $ 819,565 $ 645,750 Gross realized gains 59,794 79,411 Gross realized losses - - Major categories of net investment income are as follows: Three Months Ended March 31 2021 2020 Fixed maturity securities $ 2,824,111 $ 2,924,714 Equity securities 128,229 92,042 Mortgage loans held for investment 6,084,417 5,653,890 Real estate 3,042,829 3,153,385 Policy loans 232,353 233,966 Insurance assignments 5,345,729 4,299,205 Other investments 13,707 25,023 Cash and cash equivalents 39,594 298,005 Gross investment income 17,710,969 16,680,230 Investment expenses (3,417,082) (3,279,731) Net investment income $ 14,293,887 $ 13,400,499 |
Commercial Real Estate Investment | The following is a summary of the Company’s commercial real estate held for investment for the periods presented: Net Ending Balance Total Square Footage March 31 December 31 March 31 December 31 Utah (1) $ 111,008,057 $ 100,927,528 379,066 379,066 Louisiana 2,981,296 2,998,684 84,841 84,841 Mississippi 2,909,508 2,914,498 21,521 21,521 California 389,145 - 2,872 - $ 117,288,006 $ 106,840,710 488,300 485,428 (1) Includes Center53 phase 1 and phase 2 which is under construction. The following is a summary of the Company’s commercial real estate held for sale for the periods presented: Net Ending Balance Total Square Footage March 31 December 31 March 31 December 31 Kansas 4,000,000 4,000,000 222,679 222,679 Texas (1) 249,000 249,000 - - Mississippi 151,553 151,553 - - $ 4,400,553 $ 4,400,553 222,679 222,679 (1) Improved commercial pad |
Residential Real Estate Investment | The following is a summary of the Company’s residential real estate held for investment for the periods presented: Net Ending Balance March 31 December 31 2020 Utah (1) 39,466,349 $ 24,557,562 Washington (2) 286,181 286,181 $ 39,752,530 $ 24,843,743 (1) Includes subdivision land developments (2) Improved residential lots Additional information regarding the Company’s subdivision land developments in Utah is summarized as follows: March 31 December 31 2020 Lots available for sale 81 36 Lots to be developed 369 350 Ending Balance (1) $ 39,251,557 $ 23,777,478 (1) The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively. The following is a summary of the Company’s residential real estate held for sale for the periods presented: Net Ending Balance March 31 December 31 2020 Nevada $ 979,640 $ 979,640 Florida 166,673 744,322 Ohio 10,000 10,000 Utah - 1,744,292 $ 1,156,313 $ 3,478,254 |
Real Estate Owned and Occupied by the Company | As of March 31, 2021, real estate owned and occupied by the Company is summarized as follows: Location Business Segment Approximate Square Footage Square Footage Occupied by the Company 121 W. Election Rd., Draper, UT Corporate Offices, Life Insurance and 78,979 18% 5201 Green Street, Salt Lake City, UT (1) Life Insurance and Mortgage Operations 39,157 73% 1044 River Oaks Dr., Flowood, MS Life Insurance Operations 19,694 28% 1818 Marshall Street, Shreveport, LA (1) Life Insurance Operations 12,274 100% 909 Foisy Street, Alexandria, LA (1) Life Insurance Sales 8,059 100% 812 Sheppard Street, Minden, LA (1) Life Insurance Sales 1,560 100% 1550 N 3rd Street, Jena, LA (1) Life Insurance Sales 1,737 100% (1) Included in property and equipment on the condensed consolidated balance sheets |
Schedule of Allowance for loan losses as a contra-asset account | The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented: Commercial Residential Residential Construction Total March 31, 2021 Allowance for credit losses: Beginning balance - January 1, 2021 $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Charge-offs - - - - Provision - (107,972) - (107,972) Ending balance - March 31, 2021 $ 187,129 $ 1,666,824 $ 43,202 $ 1,897,155 Ending balance: individually evaluated for impairment $ - $ 207,578 $ - $ 207,578 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,459,246 $ 43,202 $ 1,689,577 Mortgage loans: Ending balance $ 55,065,455 $ 88,266,355 $ 105,450,591 $ 248,782,401 Ending balance: individually evaluated for impairment $ 1,068,365 $ 4,436,082 $ 200,963 $ 5,705,410 Ending balance: collectively evaluated for impairment $ 53,997,090 $ 83,830,273 $ 105,249,628 $ 243,076,991 December 31, 2020 Allowance for credit losses: Beginning balance $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Charge-offs - - - - Provision - 552,090 - 552,090 Ending balance $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Ending balance: individually evaluated for impairment $ - $ 219,905 $ - $ 219,905 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,554,891 $ 43,202 $ 1,785,222 Mortgage loans: Ending balance $ 46,836,866 $ 111,111,777 $ 95,822,448 $ 253,771,091 Ending balance: individually evaluated for impairment $ 2,148,827 $ 7,932,680 $ 200,963 $ 10,282,470 Ending balance: collectively evaluated for impairment $ 44,688,039 $ 103,179,097 $ 95,621,485 $ 243,488,621 |
Schedule of aging of mortgage loans | The following is a summary of the aging of mortgage loans held for investment for the periods presented: Commercial Residential Residential Total March 31, 2021 30-59 Days Past Due $ - $ 4,352,659 $ 301,071 $ 4,653,730 60-89 Days Past Due 2,027,048 1,317,057 - 3,344,105 Greater Than 90 Days (1) 817,429 2,522,314 - 3,339,743 In Process of Foreclosure (1) 250,936 1,913,768 200,963 2,365,667 Total Past Due 3,095,413 10,105,798 502,034 13,703,245 Current 51,970,042 78,160,557 104,948,557 235,079,156 Total Mortgage Loans 55,065,455 88,266,355 105,450,591 248,782,401 Allowance for Loan Losses (187,129) (1,666,824) (43,202) (1,897,155) Unamortized deferred loan fees, net (115,893) (951,108) (156,013) (1,223,014) Unamortized discounts, net (358,587) (351,693) - (710,280) Net Mortgage Loans $ 54,403,846 $ 85,296,730 $ 105,251,376 $ 244,951,952 December 31, 2020 30-59 Days Past Due $ 233,200 $ 5,866,505 $ 127,191 $ 6,226,896 60-89 Days Past Due 812,780 2,048,148 - 2,860,928 Greater Than 90 Days (1) 2,148,827 5,669,583 - 7,818,410 In Process of Foreclosure (1) - 2,263,097 200,963 2,464,060 Total Past Due 3,194,807 15,847,333 328,154 19,370,294 Current 43,642,059 79,975,115 110,783,623 234,400,797 Total Mortgage Loans 46,836,866 95,822,448 111,111,777 253,771,091 Allowance for Loan Losses (187,129) (1,774,796) (43,202) (2,005,127) Unamortized deferred loan fees, net (32,557) (909,864) (218,711) (1,161,132) Unamortized discounts, net (880,721) (380,175) - (1,260,896) Net Mortgage Loans $ 45,736,459 $ 92,757,613 $ 110,849,864 $ 249,343,936 (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
Schedule of Impaired Mortgage Loans | The recorded investment in and unpaid principal balance of impaired loans along with the related loan specific allowance for losses, if any, for each reporting period and the average recorded investment and interest income recognized during the time the loans were impaired were as follows: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2021 With no related allowance recorded: Commercial $ 1,068,365 $ 1,068,365 $ - $ 1,068,365 $ - Residential 3,054,262 3,054,262 - 3,054,262 - Residential construction 200,963 200,963 - 200,963 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,381,820 1,381,820 207,578 1,381,820 - Residential construction - - - - - Total: Commercial $ 1,068,365 $ 1,068,365 $ - $ 1,068,365 $ - Residential 4,436,082 4,436,082 207,578 4,436,082 - Residential construction 200,963 200,963 - 200,963 - December 31, 2020 With no related allowance recorded: Commercial $ 2,148,827 $ 2,148,827 $ - $ 1,866,819 $ - Residential 6,415,419 6,415,419 - 5,010,078 - Residential construction 200,963 200,963 - 555,278 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,517,261 1,517,261 219,905 1,182,368 - Residential construction - - - - - Total: Commercial $ 2,148,827 $ 2,148,827 $ - $ 1,866,819 $ - Residential 7,932,680 7,932,680 219,905 6,192,446 - Residential construction 200,963 200,963 - 555,278 - |
Schedule Of Credit Risk Of Mortgage Loans Based On Performance Status: | The Company’s performing and non-performing mortgage loans held for investment were as follows: Commercial Residential Residential Construction Total March December March December March December March December Performing $ 53,997,090 $ 44,688,039 $ 83,830,273 $ 87,889,768 $ 105,249,628 $ 110,910,814 $ 243,076,991 $ 243,488,621 Non-performing 1,068,365 2,148,827 4,436,082 7,932,680 200,963 200,963 5,705,410 10,282,470 Total $ 55,065,455 $ 46,836,866 $ 88,266,355 $ 95,822,448 $ 105,450,591 $ 111,111,777 $ 248,782,401 $ 253,771,091 |
Schedule of Mortgage loans on a nonaccrual status | The following is a summary of mortgage loans held for investment on a non-accrual status for the periods presented. As of March 31 As of December 31 Commercial $ 1,068,365 $ 2,148,827 Residential 4,436,082 7,932,680 Residential construction 200,963 200,963 Total $ 5,705,410 $ 10,282,470 |
4) Loans Held For Sale (Tables)
4) Loans Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Aggregate fair value - Loans Held for Sale | The following is a summary of the aggregate fair value and the aggregate unpaid principal balance of loans held for sale for the periods presented: As of March 31 As of December 31 Aggregate fair value $ 304,030,372 $ 422,772,418 Unpaid principal balance 294,207,728 406,407,323 Unrealized gain 9,822,644 16,365,095 |
Schedule of Mortgage Fee Income for Loans Held for Sale | Major categories of mortgage fee income for loans held for sale are as follows: Three Months Ended March 31 2021 2020 Loan fees $ 9,539,956 $ 8,916,153 Interest income 2,311,802 1,680,459 Secondary gains 68,438,933 26,641,492 Change in fair value of loan commitments 314,466 3,275,032 Change in fair value of loans held for sale (6,945,882) 381,734 Provision for loan loss reserve (660,663) (613,109) Mortgage fee income $ 72,998,612 $ 40,281,761 |
Schedule of loan loss reserve which is included in other liabilities and accrued expenses | The following is a summary of the loan loss reserve that is included in other liabilities and accrued expenses: As of March 31 As of December 31 Balance, beginning of period $ 20,583,618 $ 4,046,288 Provision on current loan originations (1) 660,663 4,938,214 Additional provision for loan loss reserve - 16,506,030 Charge-offs, net of recaptured amounts (19,039,298) (4,906,914) Balance, end of period $ 2,204,983 $ 20,583,618 (1) Included in mortgage fee income |
5) Stock Compensation Plans (Ta
5) Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of stock inventive plan changes | A summary of the status of the Company’s stock compensation plans as of March 31, 2021, and the changes during the three months ended March 31, 2021, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2021 1,072,863 $ 4.33 662,666 $ 4.73 Adjustment for effect of stock dividends - - Granted - - Exercised (32,925) - Cancelled - - Outstanding at March 31, 2021 1,039,938 $ 4.34 662,666 $ 4.73 As of March 31, 2021: Options exercisable 1,039,938 $ 4.34 662,666 $ 4.73 As of March 31, 2021: Available options for future grant 330,371 266,500 Weighted average contractual term of options outstanding at March 31, 2021 6.28years 6.71years Weighted average contractual term of options exercisable at March 31, 2021 6.28years 6.71years Aggregated intrinsic value of options outstanding at March 31, 2021 (1) $ 5,212,677 $ 3,059,620 Aggregated intrinsic value of options exercisable at March 31, 2021 (1) $ 5,212,677 $ 3,059,620 (1) The Company used a stock price of $9.35 as of March 31, 2021 to derive intrinsic value. A summary of the status of the Company’s stock compensation plans as of March 31, 2020, and the changes during the three months ended March 31, 2020, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2020 1,086,053 $ 4.41 594,132 $ 5.36 Adjustment for effect of stock dividends 829 - Granted 37,500 90,000 Exercised (42,294) - Cancelled - - Outstanding at March 31, 2020 1,082,088 $ 4.44 684,132 $ 5.15 As of March 31, 2020: Options exercisable 985,366 $ 4.42 452,381 $ 5.39 As of March 31, 2020: Available options for future grant 97,218 - Weighted average contractual term of options outstanding at March 31, 2020 5.57years 5.96years Weighted average contractual term of options exercisable at March 31, 2020 5.16years 4.70years Aggregated intrinsic value of options outstanding at March 31, 2020 (1) $ 489,237 $ 41,150 Aggregated intrinsic value of options exercisable at March 31, 2020 (1) $ 471,642 $ - (1) The Company used a stock price of $4.27 as of March 31, 2020 to derive intrinsic value. |
6) Earnings Per Share (Tables)
6) Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The basic and diluted earnings per share amounts were calculated as follows: Three Months Ended 2021 2020 Numerator: Net earnings $ 12,128,715 $ 1,424,449 Denominator: Basic weighted-average shares outstanding 19,124,001 18,641,950 Effect of dilutive securities: Employee stock options 884,049 191,446 Diluted weighted-average shares outstanding 20,008,050 18,833,396 Basic net earnings per share $ 0.63 $ 0.08 Diluted net earnings per share $ 0.61 $ 0.08 |
Schedule of Activity of Stock Option Plans | The following table summarizes the activity in shares of capital stock for the periods presented: Class A Class C Outstanding shares at December 31, 2019 16,107,779 2,500,887 Exercise of stock options 22,411 - Stock dividends 404,839 61,720 Conversion of Class C to Class A 11,162 (11,162) Outstanding shares at March 31, 2020 16,546,191 2,551,445 Outstanding shares at December 31, 2020 16,595,783 2,679,603 Exercise of stock options 27,926 - Stock dividends - - Conversion of Class C to Class A 48,527 (48,527) Outstanding shares at March 31, 2021 16,672,236 2,631,076 |
7) Business Segments Informatio
7) Business Segments Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of Revenues and Expenses by Reportable Segment | The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported. Life Insurance Cemetery/ Mortgage Intercompany Consolidated For the Three Months Ended March 31, 2021 Revenues from external customers $ 38,943,834 $ 6,999,265 $ 76,715,507 $ - $ 122,658,606 Intersegment revenues 1,902,052 77,507 161,016 (2,140,575) - Segment profit before income taxes 2,695,028 2,700,945 10,959,082 - 16,355,055 Identifiable Assets 1,174,305,180 57,269,639 337,524,300 (84,391,181) 1,484,707,938 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,177,070,750 58,023,657 337,524,300 (84,391,181) 1,488,227,526 - For the Three Months Ended March 31, 2020 Revenues from external customers $ 33,205,762 $ 4,013,696 $ 42,389,491 $ - $ 79,608,949 Intersegment revenues 908,168 103,514 200,332 (1,212,014) - Segment profit before income taxes (3,069,167) 104,801 4,438,600 - 1,474,234 Identifiable Assets 1,124,244,140 79,695,043 278,195,425 (109,493,359) 1,372,641,249 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,127,009,710 80,449,061 278,195,425 (109,493,359) 1,376,160,837 |
8) Fair Value of Financial In_2
8) Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of fair value assets and liabilities measured on a recurring basis | The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at March 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 279,550,528 $ - $ 277,359,435 $ 2,191,093 Equity securities 11,154,495 11,154,495 - - Loans held for sale 304,030,372 - - 304,030,372 Restricted assets (1) 1,456,017 - 1,456,017 - Restricted assets (2) 2,704,704 2,704,704 - - Cemetery perpetual care trust investments (1) 738,979 - 738,979 - Cemetery perpetual care trust investments (2) 2,208,138 2,208,138 - - Derivatives - loan commitments (3) 10,671,623 - - 10,671,623 Total assets accounted for at fair value on a recurring basis $ 612,514,856 $ 16,067,337 $ 279,554,431 $ 316,893,088 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (79,567) $ (79,567) $ - $ - Derivatives - loan commitments (4) (228,547) - - (228,547) Total liabilities accounted for at fair value on a recurring basis $ (308,114) $ (79,567) $ - $ (228,547) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at December 31, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 294,656,679 $ - $ 292,455,504 $ 2,201,175 Equity securities 11,324,239 11,324,239 - - Loans held for sale 422,772,418 - - 422,772,418 Restricted assets (1) 1,473,637 - 1,473,637 - Restricted assets (2) 2,515,778 2,515,778 - - Cemetery perpetual care trust investments (1) 747,767 - 747,767 - Cemetery perpetual care trust investments (2) 2,062,303 2,062,303 - - Derivatives - loan commitments (3) 12,592,672 - - 12,592,672 Total assets accounted for at fair value on a recurring basis $ 748,145,493 $ 15,902,320 $ 294,676,908 $ 437,566,265 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (43,097) $ (43,097) $ - $ - Derivatives - loan commitments (4) (2,464,062) - - (2,464,062) Total liabilities accounted for at fair value on a recurring basis $ (2,507,159) $ (43,097) $ - $ (2,464,062) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets |
Assets and liabilities measured at fair value on a recurring basis | For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 3/31/2021 Technique Input(s) Value Value Average Loans held for sale $ 304,030,372 Market approach Investor contract pricing as a percentage of unpaid principal balance 95.0% 109.0% 103.0% Derivatives - loan commitments (net) 10,443,076 Market approach Pull-through rate 61.0% 92.0% 82.0% Initial-Value N/A N/A N/A Servicing 0 bps 129 bps 55 bps Fixed maturity securities available for sale 2,191,093 Broker quotes Pricing quotes $ 90.83 $ 119.33 $ 113.57 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2020 Technique Input(s) Value Value Average Loans held for sale $ 422,772,418 Market approach Investor contract pricing as a percentage of unpaid principal balance 99.0% 110.0% 104.0% Derivatives - loan commitments (net) 10,128,610 Market approach Pull-through rate 52.0% 92.0% 81.0% Initial-Value N/A N/A N/A Servicing 0 bps 184 bps 58 bps Fixed maturity securities available for sale 2,201,175 Broker quotes Pricing quotes $ 90.83 $ 119.33 $ 113.47 |
Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs | Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2020 $ 10,128,610 $ 422,772,418 $ 2,201,175 Originations and purchases - 1,449,841,009 - Sales, maturities and paydowns - (1,614,880,058) (11,100) Transfer to mortgage loans held for investment - (201,951) - Total gains (losses): Included in earnings 314,466 (1) 46,498,954 (1) 893 (2) Included in other comprehensive income - - 125 Balance - March 31, 2021 $ 10,443,076 $ 304,030,372 $ 2,191,093 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: Net Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2019 $ 2,491,233 $ 213,457,632 $ 3,216,382 Originations and purchases - 792,193,592 - Sales, maturities and paydowns - (739,130,456) (10,300) Transfer to mortgage loans held for investment - (8,933,676) - Total gains (losses): Included in earnings 3,275,032 (1) 23,465,484 (1) 828 (2) Included in other comprehensive income - - 68,416 Balance - March 31, 2020 $ 5,766,265 $ 281,052,576 $ 3,275,326 (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings (2) As a component of Net investment income on the condensed consolidated statements of earnings |
Fair Value Assets Measured on a Nonrecurring Basis | The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the condensed consolidated balance sheet at March 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a nonrecurring basis Impaired mortgage loans held for investment $ 1,174,242 $ - $ - $ 1,174,242 Total assets accounted for at fair value on a nonrecurring basis $ 1,174,242 $ - $ - $ 1,174,242 The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the condensed consolidated balance sheet at December 31, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a nonrecurring basis Impaired mortgage loans held for investment $ 1,297,356 $ - $ - $ 1,297,356 Impaired real estate held for sale 4,249,000 - - 4,249,000 Total assets accounted for at fair value on a nonrecurring basis $ 5,546,356 $ - $ - $ 5,546,356 |
Schedule of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of March 31, 2021: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 85,296,730 $ - $ - $ 90,940,077 $ 90,940,077 Residential construction 105,251,376 - - 105,251,376 105,251,376 Commercial 54,403,846 - - 55,014,500 55,014,500 Mortgage loans held for investment, net $ 244,951,952 $ - $ - $ 251,205,953 $ 251,205,953 Policy loans 13,946,739 - - 13,946,739 13,946,739 Insurance assignments, net (1) 52,955,925 - - 52,955,925 52,955,925 Restricted assets (2) 3,076,760 - - 3,076,760 3,076,760 Cemetery perpetual care trust investments (2) 1,450,600 - - 1,450,600 1,450,600 Mortgage servicing rights, net 42,779,361 - - 55,087,150 55,087,150 Liabilities Bank and other loans payable $ (245,973,378) $ - $ - $ (245,973,378) $ (245,973,378) Policyholder account balances (3) (43,728,587) - - (42,141,870) (42,141,870) Future policy benefits - annuities (3) (108,202,268) - - (112,119,227) (112,119,227) (1) Included in other investments and policy loans on the condensed consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2020: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 92,757,613 $ - $ - $ 100,384,283 $ 100,384,283 Residential construction 110,849,864 - - 110,849,864 110,849,864 Commercial 45,736,459 - - 45,259,425 45,259,425 Mortgage loans held for investment, net $ 249,343,936 $ - $ - $ 256,493,572 $ 256,493,572 Policy loans 14,171,589 - - 14,171,589 14,171,589 Insurance assignments, net (1) 51,585,656 - - 51,585,656 51,585,656 Restricted assets (2) 3,317,877 - - 3,317,877 3,317,877 Cemetery perpetual care trust investments (2) 1,468,600 - - 1,468,600 1,468,600 Mortgage servicing rights, net 35,210,516 - - 38,702,358 38,702,358 Liabilities Bank and other loans payable $ (297,824,368) $ - $ - $ (297,824,368) $ (297,824,368) Policyholder account balances (3) (44,026,809) - - (42,220,725) (42,220,725) Future policy benefits - annuities (3) (106,522,113) - - (112,354,186) (112,354,186) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets |
10) Derivative Instruments (Tab
10) Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table shows the notional amount and fair value of derivatives as of March 31, 2021 and December 31, 2020. Fair Values and Notional Values of Derivative Instruments March 31, 2021 December 31, 2020 Balance Sheet Location Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives not designated as hedging instruments: Loan commitments Other assets and Other liabilities $ 817,802,853 $ 10,671,623 $ 228,547 $ 659,245,038 $ 12,592,672 $ 2,464,062 Call options Other liabilities 2,042,500 - 79,567 1,873,200 - 43,097 Total $ 819,845,353 $ 10,671,623 $ 308,114 $ 661,118,238 $ 12,592,672 $ 2,507,159 |
Schedule of Gains and Losses on Derivatives | The following table shows the gains and losses on derivatives for the periods presented. Net Amount Gain (Loss) Three Months Ended March 31 Derivative Classification 2021 2020 Loan commitments Mortgage fee income $ 314,466 $ 3,275,032 Call and put options Gains on investments and other assets $ 26,762 $ (737,860) |
12) Mortgage Servicing Rightss
12) Mortgage Servicing Rightss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of Mortgage Servicing Rights | The following is a summary of the MSR activity for the periods presented. As of March 31 As of December 31 Amortized cost: Balance before valuation allowance at beginning of year $ 35,210,516 $ 17,155,529 MSR additions resulting from loan sales 11,008,149 29,896,465 Amortization (1) (3,439,304) (11,841,478) Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance before valuation allowance at end of period $ 42,779,361 $ 35,210,516 Valuation allowance for impairment of MSRs: Balance at beginning of year $ - $ - Additions - - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance at end of period $ - $ - Mortgage servicing rights, net $ 42,779,361 $ 35,210,516 Estimated fair value of MSRs at end of period $ 55,087,150 $ 38,702,358 (1) Included in other expenses on the condensed consolidated statements of earnings |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights | The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost: Estimated MSR Amortization 2021 5,760,982 2022 4,670,850 2023 4,116,524 2024 3,617,054 2025 3,191,065 Thereafter 21,422,886 Total $ 42,779,361 |
Schedule of Other Revenues | The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated statement of earnings: Three Months Ended 2021 2020 Contractual servicing fees $ 3,387,472 $ 1,784,944 Late fees 81,050 97,808 Total $ 3,468,522 $ 1,882,752 |
Summary of Unpaid Principal Balances of the Servicing Portfolio | The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented: As of March 31 As of December 31 2020 Servicing UPB $ 5,824,986,566 $ 5,070,287,864 |
Assumptions used in determining MSR value | The following key assumptions were used in determining MSR value: Prepayment Average Discount March 31, 2021 11.90 6.72 9.50 December 31, 2020 15.60 5.30 9.50 |
14) Revenues From Contracts W_2
14) Revenues From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Table Text Block Supplement [Abstract] | |
Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities | The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2021) $ 4,119,988 $ - $ 13,080,179 Closing (3/31/2021) 3,988,538 - 13,514,055 Increase/(decrease) (131,450) - 433,876 Contract Balances Receivables(1) Contract Asset Contract Liability Opening (1/1/2020) $ 2,778,879 $ - $ 12,607,978 Closing (12/31/2020) 4,119,988 - 13,080,179 Increase/(decrease) 1,341,109 - 472,201 (1) Included in Receivables, net on the condensed consolidated balance sheets |
Revenues of the Cemetery and Mortuary Contracts | The following table disaggregates revenue for the Company’s cemetery and mortuary contracts for the periods presented: Three Months Ended 2021 2020 Major goods/service lines At-need $ 4,042,020 $ 3,385,191 Pre-need 1,900,106 1,072,900 $ 5,942,126 $ 4,458,091 Timing of Revenue Recognition Goods transferred at a point in time $ 4,198,673 $ 2,993,704 Services transferred at a point in time 1,743,453 1,464,387 $ 5,942,126 $ 4,458,091 |
Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information | The following table reconciles revenues from cemetery and mortuary contracts to Note 7 – Business Segment Information for the Cemetery/Mortuary Segment for the periods presented: Three Months Ended 2021 2020 Net mortuary and cemetery sales $ 5,942,126 $ 4,458,091 Gains (losses) on investments and other assets 798,340 (660,123) Net investment income 230,304 204,846 Other revenues 28,495 10,882 Revenues from external customers 6,999,265 4,013,696 |
3) Investments_ Held-to-maturit
3) Investments: Held-to-maturity Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | |||
Available for sale securities, Amortized Cost | $ 256,894,421 | $ 265,150,484 | ||
Available for sale securities, Unrecognized Holding Gain | 23,418,581 | 30,456,040 | ||
Available for sale securities, Unrecognized Holding Loss | (762,474) | (949,845) | ||
Available for sale securities, Estimated fair value | 279,550,528 | 294,656,679 | ||
Mortgage loans on real estate and construction | 244,951,952 | 249,343,936 | ||
Mortgage loans on real estate and construction, unamortized deferred loan fees, net | (1,223,014) | (1,161,132) | ||
Mortgage loans on real estate and construction, allowance for losses | (1,897,155) | (2,005,127) | ||
Mortgage loans on real estate and construction, Discount | (710,280) | (1,260,896) | ||
Real estate held for investment, net of depreciation | 157,040,536 | 131,684,453 | ||
Real estate held for sale | 5,556,866 | 7,878,807 | ||
Policy loans | 13,946,739 | 14,171,589 | ||
Insurance assignments | 54,618,319 | 53,231,131 | ||
Federal Home Loan Bank stock | 2,544,700 | [1] | 2,506,600 | [2] |
Other investments | 5,242,786 | 5,432,816 | ||
Allowance for doubtful accounts | (1,662,394) | (1,645,475) | ||
Total policy loans and other investments | 74,690,150 | 73,696,661 | ||
Accrued investment income | 6,266,403 | 5,360,523 | ||
Total investments | 779,210,930 | 773,945,298 | ||
US Treasury Securities | ||||
Available for sale securities, Amortized Cost | 42,427,856 | 42,381,805 | ||
Available for sale securities, Unrecognized Holding Gain | 1,099,519 | 1,358,562 | ||
Available for sale securities, Unrecognized Holding Loss | 0 | |||
Available for sale securities, Estimated fair value | 43,527,375 | 43,740,367 | ||
US States and Political Subdivisions Debt Securities | ||||
Available for sale securities, Amortized Cost | 5,370,754 | 5,383,762 | ||
Available for sale securities, Unrecognized Holding Gain | 209,554 | 312,214 | ||
Available for sale securities, Unrecognized Holding Loss | (24,569) | (1,261) | ||
Available for sale securities, Estimated fair value | 5,555,739 | 5,694,715 | ||
Corporate Debt Securities | ||||
Available for sale securities, Amortized Cost | 179,026,864 | 186,067,912 | ||
Available for sale securities, Unrecognized Holding Gain | 21,203,792 | 27,216,496 | ||
Available for sale securities, Unrecognized Holding Loss | (501,358) | (681,478) | ||
Available for sale securities, Estimated fair value | 199,729,298 | 212,602,930 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||||
Available for sale securities, Amortized Cost | 29,799,733 | 31,047,791 | ||
Available for sale securities, Unrecognized Holding Gain | 892,449 | 1,565,377 | ||
Available for sale securities, Unrecognized Holding Loss | (236,547) | (267,106) | ||
Available for sale securities, Estimated fair value | 30,455,635 | 32,346,062 | ||
Redeemable Preferred Stock | ||||
Available for sale securities, Amortized Cost | 269,214 | 269,214 | ||
Available for sale securities, Unrecognized Holding Gain | 13,267 | 3,391 | ||
Available for sale securities, Unrecognized Holding Loss | 0 | 0 | ||
Available for sale securities, Estimated fair value | 282,481 | 272,605 | ||
Industrial, miscellaneous and all other | ||||
Available-for-sale Securities, Amortized Cost Basis | 8,913,275 | 9,698,490 | ||
Available-for-sale Securities, Gross Unrealized Gain | 2,586,343 | 2,376,156 | ||
Available For Sale Securities - Gross Unrealized Losses | (345,123) | (750,407) | ||
Available for Sale Securities - Estimated Fair Value | 11,154,495 | 11,324,239 | ||
Equity Securities | ||||
Available-for-sale Securities, Amortized Cost Basis | 8,913,275 | 9,698,490 | ||
Available-for-sale Securities, Gross Unrealized Gain | 2,586,343 | 2,376,156 | ||
Available For Sale Securities - Gross Unrealized Losses | (345,123) | (750,407) | ||
Available for Sale Securities - Estimated Fair Value | 11,154,495 | 11,324,239 | ||
Residential Mortgage | ||||
Mortgage loans on real estate and construction | 88,266,355 | 95,822,448 | ||
Real estate held for investment, net of depreciation | 39,752,530 | 24,843,743 | ||
Real estate held for sale | 1,156,313 | 3,478,254 | ||
Residential construction | ||||
Mortgage loans on real estate and construction | 105,450,591 | 111,111,777 | ||
Commercial | ||||
Mortgage loans on real estate and construction | 55,065,455 | 46,836,866 | ||
Real estate held for investment, net of depreciation | 117,288,006 | 106,840,710 | ||
Real estate held for sale | $ 4,400,553 | $ 4,400,553 | ||
[1] | Includes $905,700 of Membership stock and $1,639,000 of Activity stock due to short-term borrowings. | |||
[2] | Includes $866,900 of Membership stock and $1,639,700 of Activity stock due to short-term borrowings. |
3) Investments_ Schedule of Unr
3) Investments: Schedule of Unrealized Loss on Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
US States and Political Subdivisions Debt Securities | ||
Available for sale Securities, Unrecognized Holding Loss | $ 24,569 | $ 1,261 |
Available for sale Securities, Fair Value | 778,979 | 206,812 |
US States and Political Subdivisions Debt Securities | Less Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 24,569 | 1,261 |
Available for sale Securities, Fair Value | 778,979 | 206,812 |
US States and Political Subdivisions Debt Securities | More Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 0 | |
Available for sale Securities, Fair Value | 0 | |
Corporate Securities | ||
Available for sale Securities, Unrecognized Holding Loss | 501,358 | 681,478 |
Available for sale Securities, Fair Value | 18,959,998 | 12,512,324 |
Corporate Securities | Less Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 137,661 | 242,596 |
Available for sale Securities, Fair Value | 9,760,180 | 9,919,298 |
Corporate Securities | More Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 363,697 | 438,882 |
Available for sale Securities, Fair Value | 9,199,818 | 2,593,026 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available for sale Securities, Unrecognized Holding Loss | 236,547 | 267,106 |
Available for sale Securities, Fair Value | 7,261,927 | 3,507,535 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Less Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 90,713 | 266,522 |
Available for sale Securities, Fair Value | 5,235,918 | 3,455,574 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | More Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 145,834 | 584 |
Available for sale Securities, Fair Value | 2,026,009 | 51,961 |
Total unrealized losses | ||
Available for sale Securities, Unrecognized Holding Loss | 762,474 | 949,845 |
Available for sale Securities, Fair Value | 27,000,904 | 16,226,671 |
Total unrealized losses | Less Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 252,943 | 510,379 |
Available for sale Securities, Fair Value | 15,775,077 | 13,581,684 |
Total unrealized losses | More Than 12 Months | ||
Available for sale Securities, Unrecognized Holding Loss | 509,531 | 439,466 |
Available for sale Securities, Fair Value | $ 11,225,827 | $ 2,644,987 |
3) Investments (Details)
3) Investments (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
Text Block [Abstract] | ||
Average market value over amortized cost | 97.30% | 94.70% |
3) Investments_ Other than temp
3) Investments: Other than temporary credit impairments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Balance of credit-related OTTI at beginning | $ 370,975 | $ 0 |
Additions for credit impairments recognized on: | ||
Securities not previously impaired | 0 | 0 |
Securities previously impaired | 0 | 0 |
Reductions for credit impairments previously recognized on: | ||
Securities that matured or were sold during the period (realized) | 0 | 0 |
Securities due to an increase in expected cash flows | 0 | 0 |
Balance of credit-related OTTI at ending | $ 370,975 | $ 0 |
3) Investments_ Investments Cla
3) Investments: Investments Classified by Contractual Maturity Date (Details) | Mar. 31, 2021USD ($) |
Amortized Cost | $ 256,894,421 |
Estimated fair value | 279,550,528 |
Due in 1 year | |
Amortized Cost | 21,362,110 |
Estimated fair value | 21,444,660 |
Due in 2-5 years | |
Amortized Cost | 66,817,800 |
Estimated fair value | 71,062,356 |
Due in 5-10 years | |
Amortized Cost | 70,609,309 |
Estimated fair value | 77,487,611 |
Due in more than 10 years | |
Amortized Cost | 68,036,255 |
Estimated fair value | 78,817,785 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | |
Amortized Cost | 29,799,733 |
Estimated fair value | 30,455,635 |
Redeemable Preferred Stock | |
Amortized Cost | 269,214 |
Estimated fair value | $ 282,481 |
3) Investments_ Gain (Loss) on
3) Investments: Gain (Loss) on Investments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fixed maturity securities held to maturity: | $ 1,960,113 | $ (3,212,247) |
Fixed Maturity Securities | ||
Gross Realized Gains | 97,622 | 95,821 |
Gross Realized Losses | (24,997) | 0 |
Other Assets {1} | ||
Gross Realized Gains | 1,109,358 | 457,028 |
Gross Realized Losses | (280,469) | (945,798) |
Equity Securities | ||
Gains (losses) on securities sold | 106,569 | (57,442) |
Unrealized Gains and Losses on securities held at end of period | $ 952,030 | $ (2,761,856) |
3) Investments_ Net carrying am
3) Investments: Net carrying amount of held to maturity securities (Details) - Fixed Maturity Securities - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Proceeds received from sale of fixed maturity available for sale securities | $ 819,565 | $ 645,750 |
Gross realized gains | 59,794 | 79,411 |
Gross realized losses |
3) Investments_ Schedule of Maj
3) Investments: Schedule of Major categories of net investment income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Gross investment income | $ 17,710,969 | $ 16,680,230 |
Investment Income, Investment Expense | (3,417,082) | (3,279,731) |
Net investment income | 14,293,887 | 13,400,499 |
Fixed Maturities | ||
Gross investment income | 2,824,111 | 2,924,714 |
Equity Securities | ||
Gross investment income | 128,229 | 92,042 |
Mortgage Loans Real Estate | ||
Gross investment income | 6,084,417 | 5,653,890 |
Real Estate | ||
Gross investment income | 3,042,829 | 3,153,385 |
Policy Student and Other Loans | ||
Gross investment income | 232,353 | 233,966 |
Insurance Assignments | ||
Gross investment income | 5,345,729 | 4,299,205 |
Other Investments {1} | ||
Gross investment income | 13,707 | 25,023 |
Cash and Cash Equivalents | ||
Gross investment income | $ 39,594 | $ 298,005 |
3) Investments_ Net Investment
3) Investments: Net Investment Income - Additional (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Net investment income | $ 14,293,887 | $ 13,400,499 | |
Securities on deposit for regulatory authorities | 9,864,903 | $ 9,684,409 | |
Cemeteries And Mortuaries | |||
Net investment income | $ 161,211 | $ 110,639 |
3) Investments_ Commercial Real
3) Investments: Commercial Real Estate Held for Investment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Bank and other loans payable | $ 245,973,378 | $ 297,824,368 | |
Impairment losses on commercial real estate held for sale | 0 | $ 31,429 | |
Commercial Real Estate | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Gross | 99,547,615 | 71,517,902 | |
Bank and other loans payable | $ 55,831,600 | $ 46,153,283 |
3) Investments_ Commercial Re_2
3) Investments: Commercial Real Estate Investment (Details) | Mar. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($)ft² | |
Real estate held for investment (net of accumulated depreciation) | $ 157,040,536 | $ 131,684,453 | |
Real estate held for sale | 5,556,866 | 7,878,807 | |
Commercial Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | $ 117,288,006 | $ 106,840,710 | |
Total Square Footage | ft² | 488,300 | 485,428 | |
Real estate held for sale | $ 4,400,553 | $ 4,400,553 | |
Square Footage | ft² | 222,679 | 222,679 | |
Utah | |||
Real estate held for investment (net of accumulated depreciation) | [1] | $ 39,251,557 | $ 23,777,478 |
Utah | Commercial Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | $ 111,008,057 | $ 100,927,528 | |
Total Square Footage | ft² | 379,066 | 379,066 | |
Louisiana | Commercial Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | $ 2,981,296 | $ 2,998,684 | |
Total Square Footage | ft² | 84,841 | 84,841 | |
Mississippi | Commercial Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | $ 2,909,508 | $ 2,914,498 | |
Total Square Footage | ft² | 21,521 | 21,521 | |
Real estate held for sale | $ 151,553 | $ 151,553 | |
Square Footage | ft² | 0 | 0 | |
California | Commercial Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | $ 389,145 | $ 0 | |
Total Square Footage | ft² | 2,872 | 0 | |
Kansas | Commercial Real Estate | |||
Real estate held for sale | $ 4,000,000 | $ 4,000,000 | |
Square Footage | ft² | 222,679 | 222,679 | |
Texas | Commercial Real Estate | |||
Real estate held for sale | $ 249,000 | $ 249,000 | |
Square Footage | ft² | 0 | 0 | |
[1] | The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively. |
3) Investments_ Residential Rea
3) Investments: Residential Real Estate Held for Investment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Impairment losses on residential real estate held for investment | $ 0 | $ 0 | |
Residential Real Estate | |||
Foreclosed Residential Real Estate included in Residential Real Estate Held for Investment | $ 1,657,285 | $ 4,327,079 |
3) Investments_ Residential R_2
3) Investments: Residential Real Estate Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | ||
Real estate held for investment (net of accumulated depreciation) | $ 157,040,536 | $ 131,684,453 | |
Real estate held for sale | 5,556,866 | 7,878,807 | |
Residential Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | 39,752,530 | 24,843,743 | |
Real estate held for sale | 1,156,313 | 3,478,254 | |
Nevada | Residential Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | 293,516 | ||
Real estate held for sale | 979,640 | 979,640 | |
Florida | Residential Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | 2,487,723 | ||
Real estate held for sale | 166,673 | 744,322 | |
Ohio | Residential Real Estate | |||
Real estate held for sale | 10,000 | 10,000 | |
Washington | Residential Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | [1] | 286,181 | 286,181 |
Utah | |||
Real estate held for investment (net of accumulated depreciation) | [2] | 39,251,557 | 23,777,478 |
Lots available for sale | 81 | 36 | |
Lots to be developed | 369 | 350 | |
Utah | Residential Real Estate | |||
Real estate held for investment (net of accumulated depreciation) | [3] | 39,466,349 | 24,557,562 |
Real estate held for sale | $ 0 | $ 1,744,292 | |
[1] | Improved residential lots | ||
[2] | The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively. | ||
[3] | Includes subdivision land developments |
3) Investments_ Real Estate Own
3) Investments: Real Estate Owned and Occupied by the Company (Details) | Mar. 31, 2021ft² | |
Corporate Offices, Life Insurance and Cemetery/Mortuary Operations | ||
Approximate Square Footage | 78,979 | |
Square Footage Occupied by the Company | 18.00% | |
Mortgage | ||
Approximate Square Footage | 39,157 | [1] |
Square Footage Occupied by the Company | 73.00% | [1] |
Life Insurance Operations | ||
Approximate Square Footage | 19,694 | |
Square Footage Occupied by the Company | 28.00% | |
Life Insurance Operations 1 | ||
Approximate Square Footage | 12,274 | [1] |
Square Footage Occupied by the Company | 100.00% | [1] |
Life Insurance Sales | ||
Approximate Square Footage | 8,059 | [1] |
Square Footage Occupied by the Company | 100.00% | [1] |
Life Insurance Sales 1 | ||
Approximate Square Footage | 1,560 | [1] |
Square Footage Occupied by the Company | 100.00% | [1] |
Life Insurance Sales 2 | ||
Approximate Square Footage | 1,737 | [1] |
Square Footage Occupied by the Company | 100.00% | [1] |
[1] | Included in property and equipment on the condensed consolidated balance sheets |
3) Investments_ Schedule of All
3) Investments: Schedule of Allowance for loan losses as a contra-asset account (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss | $ 2,005,127 | $ 1,453,037 |
Allowance for credit losses, Charge-offs | 0 | 0 |
Allowance for Credit Losses, Provision | 107,972 | 552,090 |
Financing Receivable, Allowance for Credit Loss | 1,897,155 | 2,005,127 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 207,578 | 219,905 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,689,577 | 1,785,222 |
Mortgage loans | 248,782,401 | 253,771,091 |
Financing Receivable, Individually Evaluated for Impairment | 5,705,410 | 10,282,470 |
Financing Receivable, Collectively Evaluated for Impairment | 243,076,991 | 243,488,621 |
Commercial Loan | ||
Financing Receivable, Allowance for Credit Loss | 187,129 | 187,129 |
Allowance for credit losses, Charge-offs | 0 | 0 |
Allowance for Credit Losses, Provision | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 187,129 | 187,129 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 187,129 | 187,129 |
Mortgage loans | 55,065,455 | 46,836,866 |
Financing Receivable, Individually Evaluated for Impairment | 1,068,365 | 2,148,827 |
Financing Receivable, Collectively Evaluated for Impairment | 53,997,090 | 44,688,039 |
Residential Mortgage | ||
Financing Receivable, Allowance for Credit Loss | 1,774,796 | 1,222,706 |
Allowance for credit losses, Charge-offs | 0 | 0 |
Allowance for Credit Losses, Provision | 107,972 | 552,090 |
Financing Receivable, Allowance for Credit Loss | 1,666,824 | 1,774,796 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 207,578 | 219,905 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,459,246 | 1,554,891 |
Mortgage loans | 88,266,355 | 111,111,777 |
Financing Receivable, Individually Evaluated for Impairment | 4,436,082 | 7,932,680 |
Financing Receivable, Collectively Evaluated for Impairment | 83,830,273 | 103,179,097 |
Residential construction | ||
Financing Receivable, Allowance for Credit Loss | 43,202 | 43,202 |
Allowance for credit losses, Charge-offs | 0 | 0 |
Allowance for Credit Losses, Provision | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 43,202 | 43,202 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 43,202 | 43,202 |
Mortgage loans | 105,450,591 | 95,822,448 |
Financing Receivable, Individually Evaluated for Impairment | 200,963 | 200,963 |
Financing Receivable, Collectively Evaluated for Impairment | $ 105,249,628 | $ 95,621,485 |
3) Investments_ Schedule of agi
3) Investments: Schedule of aging of mortgage loans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | ||
Mortgage Loans during period | $ 248,782,401 | $ 253,771,091 | |
Mortgage Loans, Allowance for Loan Losses | 1,897,155 | (2,005,127) | |
Mortgage Loans, Unamortized deferred loan fees, net | 1,223,014 | (1,161,132) | |
Mortgage Loans, Unamortized discounts, net | 710,280 | (1,260,896) | |
Past Due 30 to 59 Days | |||
Mortgage Loans during period | 4,653,730 | 6,226,896 | |
Past Due 60 to 89 Days | |||
Mortgage Loans during period | 3,344,105 | 2,860,928 | |
Past Due 90 or More Days | |||
Mortgage Loans during period | [1] | 3,339,743 | 7,818,410 |
In Foreclosure | |||
Mortgage Loans during period | [1] | 2,365,667 | 2,464,060 |
Total Past Due | |||
Mortgage Loans during period | 13,703,245 | 19,370,294 | |
Current | |||
Mortgage Loans during period | 235,079,156 | 234,400,797 | |
Net Mortgage Loans | |||
Mortgage Loans during period | 244,951,952 | 249,343,936 | |
Commercial Loan | |||
Mortgage Loans during period | 55,065,455 | 46,836,866 | |
Mortgage Loans, Allowance for Loan Losses | 187,129 | (187,129) | |
Mortgage Loans, Unamortized deferred loan fees, net | 115,893 | (32,557) | |
Mortgage Loans, Unamortized discounts, net | 358,587 | (880,721) | |
Commercial Loan | Past Due 30 to 59 Days | |||
Mortgage Loans during period | 0 | 233,200 | |
Commercial Loan | Past Due 60 to 89 Days | |||
Mortgage Loans during period | 2,027,048 | 812,780 | |
Commercial Loan | Past Due 90 or More Days | |||
Mortgage Loans during period | [1] | 817,429 | 2,148,827 |
Commercial Loan | In Foreclosure | |||
Mortgage Loans during period | [1] | 250,936 | 0 |
Commercial Loan | Total Past Due | |||
Mortgage Loans during period | 3,095,413 | 3,194,807 | |
Commercial Loan | Current | |||
Mortgage Loans during period | 51,970,042 | 43,642,059 | |
Commercial Loan | Net Mortgage Loans | |||
Mortgage Loans during period | 54,403,846 | 45,736,459 | |
Residential Mortgage | |||
Mortgage Loans during period | 88,266,355 | 95,822,448 | |
Mortgage Loans, Allowance for Loan Losses | 1,666,824 | (1,774,796) | |
Mortgage Loans, Unamortized deferred loan fees, net | 951,108 | (909,864) | |
Mortgage Loans, Unamortized discounts, net | 351,693 | (380,175) | |
Residential Mortgage | Past Due 30 to 59 Days | |||
Mortgage Loans during period | 4,352,659 | 5,866,505 | |
Residential Mortgage | Past Due 60 to 89 Days | |||
Mortgage Loans during period | 1,317,057 | 2,048,148 | |
Residential Mortgage | Past Due 90 or More Days | |||
Mortgage Loans during period | [1] | 2,522,314 | 5,669,583 |
Residential Mortgage | In Foreclosure | |||
Mortgage Loans during period | [1] | 1,913,768 | 2,263,097 |
Residential Mortgage | Total Past Due | |||
Mortgage Loans during period | 10,105,798 | 15,847,333 | |
Residential Mortgage | Current | |||
Mortgage Loans during period | 78,160,557 | 79,975,115 | |
Residential Mortgage | Net Mortgage Loans | |||
Mortgage Loans during period | 85,296,730 | 92,757,613 | |
Residential construction | |||
Mortgage Loans during period | 105,450,591 | 111,111,777 | |
Mortgage Loans, Allowance for Loan Losses | 43,202 | (43,202) | |
Mortgage Loans, Unamortized deferred loan fees, net | 156,013 | (218,711) | |
Mortgage Loans, Unamortized discounts, net | 0 | 0 | |
Residential construction | Past Due 30 to 59 Days | |||
Mortgage Loans during period | 301,071 | 127,191 | |
Residential construction | Past Due 60 to 89 Days | |||
Mortgage Loans during period | 0 | 0 | |
Residential construction | Past Due 90 or More Days | |||
Mortgage Loans during period | [1] | 0 | 0 |
Residential construction | In Foreclosure | |||
Mortgage Loans during period | [1] | 200,963 | 200,963 |
Residential construction | Total Past Due | |||
Mortgage Loans during period | 502,034 | 328,154 | |
Residential construction | Current | |||
Mortgage Loans during period | 104,948,557 | 110,783,623 | |
Residential construction | Net Mortgage Loans | |||
Mortgage Loans during period | $ 105,251,376 | $ 110,849,864 | |
[1] | Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
3) Investments_ Schedule of Imp
3) Investments: Schedule of Impaired Mortgage Loans (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commercial Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1,068,365 | $ 2,148,827 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,068,365 | 2,148,827 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,068,365 | 1,866,819 |
Impaired Financing Receivable, with No Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Commercial Loan | Total | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,068,365 | 2,148,827 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,068,365 | 2,148,827 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,068,365 | 1,866,819 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential Mortgage | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,054,262 | 6,415,419 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,054,262 | 6,415,419 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,054,262 | 5,010,078 |
Impaired Financing Receivable, with No Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,381,820 | 1,517,261 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,381,820 | 1,517,261 |
Impaired Financing Receivable, Related Allowance | 207,578 | 219,905 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,381,820 | 1,182,368 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential Mortgage | Total | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,436,082 | 7,932,680 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4,436,082 | 7,932,680 |
Impaired Financing Receivable, Related Allowance | 207,578 | 219,905 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 4,436,082 | 6,192,446 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential construction | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 200,963 | 200,963 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 200,963 | 200,963 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 200,963 | 555,278 |
Impaired Financing Receivable, with No Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential construction | Total | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 200,963 | 200,963 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 200,963 | 200,963 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 200,963 | 555,278 |
Impaired Financing Receivable, with Interest Income Recognized | $ 0 | $ 0 |
3) Investments_ Schedule Of Cre
3) Investments: Schedule Of Credit Risk Of Mortgage Loans Based On Performance Status (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Mortgage loans | $ 248,782,401 | $ 253,771,091 |
Commercial Loan | ||
Mortgage loans | 55,065,455 | 46,836,866 |
Residential Mortgage | ||
Mortgage loans | 88,266,355 | 111,111,777 |
Residential construction | ||
Mortgage loans | 105,450,591 | 95,822,448 |
Performing Financing Receivable | ||
Mortgage loans | 243,076,991 | 243,488,621 |
Performing Financing Receivable | Commercial Loan | ||
Mortgage loans | 53,997,090 | 44,688,039 |
Performing Financing Receivable | Residential Mortgage | ||
Mortgage loans | 83,830,273 | 87,889,768 |
Performing Financing Receivable | Residential construction | ||
Mortgage loans | 105,249,628 | 110,910,814 |
Nonperforming Financing Receivable | ||
Mortgage loans | 5,705,410 | 10,282,470 |
Nonperforming Financing Receivable | Commercial Loan | ||
Mortgage loans | 1,068,365 | 2,148,827 |
Nonperforming Financing Receivable | Residential Mortgage | ||
Mortgage loans | 4,436,082 | 7,932,680 |
Nonperforming Financing Receivable | Residential construction | ||
Mortgage loans | $ 200,963 | $ 200,963 |
3) Investments_ Summary of Inte
3) Investments: Summary of Interest not accrued on non-performing mortgage loans (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Text Block [Abstract] | ||
Interest not accrued on non-performing loans | $ 321,000 | $ 491,000 |
3) Investments_ Schedule of Mor
3) Investments: Schedule of Mortgage loans on a nonaccrual status (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 5,705,410 | $ 10,282,470 |
Commercial | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,068,365 | 2,148,827 |
Residential Mortgage | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 4,436,082 | 7,932,680 |
Residential construction | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 200,963 | $ 200,963 |
4) Loans Held For Sale_ Aggrega
4) Loans Held For Sale: Aggregate fair value - Loans Held for Sale (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Text Block [Abstract] | ||
Aggregate Fair Value - Loans Held For Sale | $ 304,030,372 | $ 422,772,418 |
Aggregate unpaid principal balance - Loans Held for Sale | 294,207,728 | 406,407,323 |
Unrealized gain - Loans Held for Sale | $ 9,822,644 | $ 16,365,095 |
4) Loans Held For Sale_ Schedul
4) Loans Held For Sale: Schedule of Mortgage Fee Income for Loans Held for Sale (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mortgage fee income | $ 72,998,612 | $ 40,281,761 |
Loans Held For Sale | ||
Loan fees | 9,539,956 | 8,916,153 |
Interest Income | 2,311,802 | 1,680,459 |
Secondary gains | 68,438,933 | 26,641,492 |
Change in fair value of loan commitments | 314,466 | 3,275,032 |
Change in fair value of loans held for sale | (6,945,882) | 381,734 |
Provision for loan loss reserve | (660,663) | (613,109) |
Mortgage fee income | $ 72,998,612 | $ 40,281,761 |
4) Loans Held For Sale_ Sched_2
4) Loans Held For Sale: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Text Block [Abstract] | |||
Beginning, Loan Loss Reserve | $ 20,583,618 | $ 4,046,288 | |
Loan loss reserve, Provisions for losses | [1] | 660,663 | 4,938,214 |
Loan loss reserve, Additional | 0 | 16,506,030 | |
Loan loss reserve, Charge-offs | (19,039,298) | (4,906,914) | |
Ending, Loan Loss Reserve | $ 2,204,983 | $ 20,583,618 | |
[1] | Included in mortgage fee income |
5) Stock Compensation Plans (De
5) Stock Compensation Plans (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Share-based Payment Arrangement, Amount Capitalized | $ 39,153 | $ 65,877 |
Unrecognized compensation expense related to the options issued in December 2014 | 0 | |
Total intrinsic value | $ 139,035 | $ 73,072 |
5) Stock Compensation Plans_ Sc
5) Stock Compensation Plans: Schedule of stock inventive plan changes (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Common Class A | ||||||
Shares, Outstanding | 1,039,938 | 1,082,088 | 1,072,863 | 1,086,053 | ||
Shares outstanding | $ 4.34 | $ 4.44 | $ 4.33 | $ 4.41 | ||
Adjustment for effect of stock dividends | 0 | 829 | ||||
Shares Granted | 0 | 37,500 | ||||
Shares Exercised | (32,925) | (42,294) | ||||
Shares Cancelled | 0 | 0 | ||||
Options Exercisable | 1,039,938 | 985,366 | ||||
Options exercisable | $ 4.34 | $ 4.42 | ||||
Available options for future grant | $ 330,371 | $ 97,218 | ||||
Weighted average contractual term of options outstanding | 6 years 3 months 11 days | 5 years 6 months 25 days | ||||
Weighted average contractual term of options exercisable | 6 years 3 months 11 days | 5 years 1 month 27 days | ||||
Aggregated intrinsic value of options outstanding | $ 5,212,677 | [1] | $ 489,237 | [2] | ||
Aggregated intrinsic value of options exercisable | $ 5,212,677 | [1] | $ 471,642 | [2] | ||
Common Class C | ||||||
Shares, Outstanding | 662,666 | 684,132 | 662,666 | 594,132 | ||
Shares outstanding | $ 4.73 | $ 5.15 | $ 4.73 | $ 5.36 | ||
Adjustment for effect of stock dividends | 0 | 594,132 | ||||
Shares Granted | 0 | 0 | ||||
Shares Exercised | 0 | 90,000 | ||||
Shares Cancelled | 0 | 0 | ||||
Options Exercisable | 662,666 | 452,381 | ||||
Options exercisable | $ 4.73 | $ 5.39 | ||||
Available options for future grant | $ 266,500 | $ 0 | ||||
Weighted average contractual term of options outstanding | 6 years 8 months 16 days | 5 years 11 months 15 days | ||||
Weighted average contractual term of options exercisable | 6 years 8 months 16 days | 4 years 8 months 12 days | ||||
Aggregated intrinsic value of options outstanding | $ 3,059,620 | [1] | $ 41,150 | [2] | ||
Aggregated intrinsic value of options exercisable | $ 3,059,620 | [1] | $ 0 | [2] | ||
[1] | The Company used a stock price of $9.35 as of March 31, 2021 to derive intrinsic value. | |||||
[2] | The Company used a stock price of $4.27 as of March 31, 2020 to derive intrinsic value. |
6) Earnings Per Share_ Schedule
6) Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Text Block [Abstract] | |||
Net earnings | $ 12,128,715 | $ 1,424,449 | |
Weighted Average Number of Shares Outstanding, Basic | [1] | 19,124,001 | 18,641,950 |
Employee stock options | $ 884,049 | $ 191,446 | |
Diluted weighted-average shares outstanding | 20,008,050 | 18,833,396 | |
Earnings Per Share, Basic | [1] | $ 0.63 | $ 0.08 |
Earnings Per Share, Diluted | [1] | $ 0.61 | $ 0.08 |
[1] | Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. |
6) Earnings Per Share_ Share-ba
6) Earnings Per Share: Share-based Payment Arrangement, Option, Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Common Class A | ||
Common Stock, Shares, Outstanding | 16,595,783 | 16,107,779 |
Exercise of stock options | 27,926 | 22,411 |
Dividends | $ 404,839 | |
Conversion of Class C to Class A | 48,527 | 11,162 |
Common Stock, Shares, Outstanding | 16,672,236 | 16,546,191 |
Common Class C | ||
Common Stock, Shares, Outstanding | 2,679,603 | 2,500,887 |
Exercise of stock options | ||
Dividends | $ 61,720 | |
Conversion of Class C to Class A | (48,527) | (11,162) |
Common Stock, Shares, Outstanding | 2,631,076 | 2,551,445 |
6) Earnings Per Share (Details)
6) Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,316,506 |
7) Business Segments Informat_2
7) Business Segments Information : Schedule of Revenues and Expenses by Reportable Segment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue from customers | $ 122,658,606 | $ 79,608,949 | |
Segment Reporting Information, Intersegment Revenue | 0 | 0 | |
Segment Reporting Information, Income Loss Before Income Taxes | 16,355,055 | 1,474,234 | |
Identifiable Assets | 1,484,707,938 | 1,372,641,249 | |
Goodwill | 3,519,588 | 3,519,588 | $ 3,519,588 |
Total Assets | 1,488,227,526 | 1,376,160,837 | $ 1,548,940,478 |
Life Insurance Product Line | |||
Revenue from customers | 38,943,834 | 33,205,762 | |
Segment Reporting Information, Intersegment Revenue | 1,902,052 | 908,168 | |
Segment Reporting Information, Income Loss Before Income Taxes | 2,695,028 | 3,069,167 | |
Identifiable Assets | 1,174,305,180 | 1,124,244,140 | |
Goodwill | 2,765,570 | 2,765,570 | |
Total Assets | 1,177,070,750 | 1,127,009,710 | |
Cemetery and Mortuary | |||
Revenue from customers | 6,999,265 | 4,013,696 | |
Segment Reporting Information, Intersegment Revenue | 77,507 | 103,514 | |
Segment Reporting Information, Income Loss Before Income Taxes | 2,700,945 | 104,801 | |
Identifiable Assets | 57,269,639 | 79,695,043 | |
Goodwill | 754,018 | 754,018 | |
Total Assets | 58,023,657 | 80,449,061 | |
Mortgage | |||
Revenue from customers | 76,715,507 | 42,389,491 | |
Segment Reporting Information, Intersegment Revenue | 161,016 | 200,332 | |
Segment Reporting Information, Income Loss Before Income Taxes | 10,959,082 | 4,438,600 | |
Identifiable Assets | 337,524,300 | 278,195,425 | |
Goodwill | 0 | 0 | |
Total Assets | 337,524,300 | 278,195,425 | |
Intercompany Eliminations | |||
Revenue from customers | 0 | 0 | |
Segment Reporting Information, Intersegment Revenue | 2,140,575 | 1,212,014 | |
Segment Reporting Information, Income Loss Before Income Taxes | 0 | 0 | |
Identifiable Assets | 84,391,181 | 109,493,359 | |
Goodwill | 0 | 0 | |
Total Assets | $ 84,391,181 | $ 109,493,359 |
8) Fair Value of Financial In_3
8) Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a recurring basis (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Trading Securities, Equity | $ 279,550,528 | $ 294,656,679 | |
Available-for-sale Securities | 11,154,495 | 11,324,239 | |
Loans Held-for-sale, Fair Value Disclosure | 304,030,372 | 422,772,418 | |
Restricted assets of cemeteries and mortuaries | [1] | 1,456,017 | 1,473,637 |
Restricted assets of cemeteries and mortuaries | [2] | 2,704,704 | 2,515,778 |
Cemetery perpetual care trust investments | [1] | 738,979 | 747,767 |
Cemetery perpetual care trust investments | [2] | 2,208,138 | 2,062,303 |
Derivatives - loan commitments | [3] | 10,671,623 | 12,592,672 |
Assets, Fair Value Disclosure, Recurring | 612,514,856 | 748,145,493 | |
Derivatives - bank loan interest rate swaps, Call Options | [4] | (79,567) | (43,097) |
Derivatives - bank loan interest rate swaps, loan commitments | [4] | (228,547) | (2,464,062) |
Obligations, Fair Value Disclosure | (308,114) | (2,507,159) | |
Fair Value, Inputs, Level 1 | |||
Trading Securities, Equity | 0 | 0 | |
Available-for-sale Securities | 11,154,495 | 11,324,239 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | |
Restricted assets of cemeteries and mortuaries | [1] | 0 | 0 |
Restricted assets of cemeteries and mortuaries | [2] | 2,704,704 | 2,515,778 |
Cemetery perpetual care trust investments | [1] | 0 | 0 |
Cemetery perpetual care trust investments | [2] | 2,208,138 | 2,062,303 |
Derivatives - loan commitments | [3] | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 16,067,337 | 15,902,320 | |
Derivatives - bank loan interest rate swaps, Call Options | [4] | (79,567) | (43,097) |
Derivatives - bank loan interest rate swaps, loan commitments | [4] | 0 | 0 |
Obligations, Fair Value Disclosure | (79,567) | (43,097) | |
Fair Value, Inputs, Level 2 | |||
Trading Securities, Equity | 277,359,435 | 292,455,504 | |
Available-for-sale Securities | 0 | 0 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | |
Restricted assets of cemeteries and mortuaries | [1] | 1,456,017 | 1,473,637 |
Restricted assets of cemeteries and mortuaries | [2] | 0 | 0 |
Cemetery perpetual care trust investments | [1] | 738,979 | 747,767 |
Cemetery perpetual care trust investments | [2] | 0 | 0 |
Derivatives - loan commitments | [3] | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 279,554,431 | 294,676,908 | |
Derivatives - bank loan interest rate swaps, Call Options | [4] | 0 | 0 |
Derivatives - bank loan interest rate swaps, loan commitments | [4] | 0 | 0 |
Obligations, Fair Value Disclosure | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Trading Securities, Equity | 2,191,093 | 2,201,175 | |
Available-for-sale Securities | 0 | 0 | |
Loans Held-for-sale, Fair Value Disclosure | 304,030,372 | 422,772,418 | |
Restricted assets of cemeteries and mortuaries | [1] | 0 | 0 |
Restricted assets of cemeteries and mortuaries | [2] | 0 | 0 |
Cemetery perpetual care trust investments | [1] | 0 | 0 |
Cemetery perpetual care trust investments | [2] | 0 | 0 |
Derivatives - loan commitments | [3] | 10,671,623 | 12,592,672 |
Assets, Fair Value Disclosure, Recurring | 316,893,088 | 437,566,265 | |
Derivatives - bank loan interest rate swaps, Call Options | [4] | 0 | 0 |
Derivatives - bank loan interest rate swaps, loan commitments | [4] | (228,547) | (2,464,062) |
Obligations, Fair Value Disclosure | $ (228,547) | $ (2,464,062) | |
[1] | Fixed maturity securities available for sale | ||
[2] | Equity securities | ||
[3] | Included in other assets on the consolidated balance sheets | ||
[4] | Included in other liabilities and accrued expenses on the consolidated balance sheets |
8) Fair Value of Financial In_4
8) Fair Value of Financial Instruments: Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Loans Held For Sale | ||
Fair Value Balance | $ 304,030,372 | $ 422,772,418 |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs minimum | 95.00% | 99.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs maximum | 109.00% | 110.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average | 103.00% | 104.00% |
Net Derivatives Loan Commitments | ||
Fair Value Balance | $ 10,443,076 | $ 10,128,610 |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs minimum | 61.00% | 52.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs maximum | 92.00% | 92.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average | 82.00% | 81.00% |
Fixed maturity securities available for sale | ||
Fair Value Balance | $ 2,191,093 | $ 2,201,175 |
8) Fair Value of Financial In_5
8) Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net Derivatives Loan Commitments | |||
Fair Value Balance | $ 10,128,610 | $ 2,491,233 | |
Originations | 0 | 0 | |
Sales | 0 | 0 | |
Transfer to mortgage loans held for investment | 0 | 0 | |
Fair Value, Gains (Losses) included in earnings | [1] | 314,466 | 3,275,032 |
Total gains (losses) included in other comprehensive income | 0 | 0 | |
Fair Value Balance | 10,443,076 | 5,766,265 | |
Loans Held For Sale | |||
Fair Value Balance | 422,772,418 | 213,457,632 | |
Originations | 1,449,841,009 | 792,193,592 | |
Sales | (1,614,880,058) | (739,130,456) | |
Transfer to mortgage loans held for investment | (201,951) | (8,933,676) | |
Fair Value, Gains (Losses) included in earnings | [1] | 46,498,954 | 23,465,484 |
Total gains (losses) included in other comprehensive income | 0 | 0 | |
Fair Value Balance | 304,030,372 | 281,052,576 | |
Fixed maturity securities available for sale | |||
Fair Value Balance | 2,201,175 | 3,216,382 | |
Originations | 0 | 0 | |
Sales | (11,100) | (10,300) | |
Transfer to mortgage loans held for investment | 0 | 0 | |
Fair Value, Gains (Losses) included in earnings | [2] | 893 | 828 |
Total gains (losses) included in other comprehensive income | 125 | 68,416 | |
Fair Value Balance | $ 2,191,093 | $ 3,275,326 | |
[1] | As a component of Mortgage fee income on the condensed consolidated statements of earnings | ||
[2] | As a component of Net investment income on the condensed consolidated statements of earnings |
8) Fair Value of Financial In_6
8) Fair Value of Financial Instruments: Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Impaired mortgage loans held for investment | $ 1,174,242 | $ 1,297,356 |
Impaired real estate held for investment | 4,249,000 | |
Assets, Fair Value Disclosure, Nonrecurring | 1,174,242 | 5,546,356 |
Fair Value, Inputs, Level 1 | ||
Impaired mortgage loans held for investment | 0 | 0 |
Impaired real estate held for investment | 0 | |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Impaired mortgage loans held for investment | 0 | 0 |
Impaired real estate held for investment | 0 | |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Impaired mortgage loans held for investment | 1,174,242 | 1,297,356 |
Impaired real estate held for investment | 4,249,000 | |
Assets, Fair Value Disclosure, Nonrecurring | $ 1,174,242 | $ 5,546,356 |
8) Fair Value of Financial In_7
8) Fair Value of Financial Instruments: Schedule of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |||
Residential Mortgage | |||||
Carrying Value | $ 85,296,730 | $ 92,757,613 | |||
Estimated Carrying Value | 90,940,077 | 100,384,283 | |||
Residential construction | |||||
Carrying Value | 105,251,376 | 110,849,864 | |||
Estimated Carrying Value | 105,251,376 | 110,849,864 | |||
Commercial Loan | |||||
Carrying Value | 54,403,846 | 45,736,459 | |||
Estimated Carrying Value | 55,014,500 | 45,259,425 | |||
Mortgage Loans Net | |||||
Carrying Value | 244,951,952 | 249,343,936 | |||
Estimated Carrying Value | 251,205,953 | 256,493,572 | |||
Policy Loan | |||||
Carrying Value | 13,946,739 | 14,171,589 | |||
Estimated Carrying Value | 13,946,739 | 14,171,589 | |||
Insurance Assignments | |||||
Carrying Value | 52,955,925 | [1] | 51,585,656 | [2] | |
Estimated Carrying Value | 52,955,925 | [1] | 51,585,656 | [2] | |
Restricted Assets 1 | |||||
Carrying Value | [3] | 3,076,760 | 3,317,877 | ||
Estimated Carrying Value | [3] | 3,076,760 | 3,317,877 | ||
Cemetery Perpetual Care Trust Investments | |||||
Carrying Value | [3] | 1,450,600 | 1,468,600 | ||
Estimated Carrying Value | [3] | 1,450,600 | 1,468,600 | ||
Mortgage Servicing Rights | |||||
Carrying Value | 42,779,361 | 35,210,516 | |||
Estimated Carrying Value | 55,087,150 | 38,702,358 | |||
Bank And Other Loans Payable | |||||
Carrying Value | (245,973,378) | (297,824,368) | |||
Estimated Carrying Value | (245,973,378) | (297,824,368) | |||
Policyholder Account Balances | |||||
Carrying Value | (43,728,587) | [4] | (44,026,809) | [5] | |
Estimated Carrying Value | (42,141,870) | [4] | (42,220,725) | [5] | |
Future Policy Benefits Annuities | |||||
Carrying Value | (108,202,268) | [4] | (106,522,113) | [5] | |
Estimated Carrying Value | (112,119,227) | [4] | (112,354,186) | [5] | |
Fair Value, Inputs, Level 1 | Residential Mortgage | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Residential construction | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Commercial Loan | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Mortgage Loans Net | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Policy Loan | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Insurance Assignments | |||||
Estimated Carrying Value | 0 | [1] | 0 | [2] | |
Fair Value, Inputs, Level 1 | Restricted Assets 1 | |||||
Estimated Carrying Value | [3] | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Cemetery Perpetual Care Trust Investments | |||||
Estimated Carrying Value | 0 | [1] | 0 | [3] | |
Fair Value, Inputs, Level 1 | Mortgage Servicing Rights | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Bank And Other Loans Payable | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 1 | Policyholder Account Balances | |||||
Estimated Carrying Value | 0 | [6] | 0 | [5] | |
Fair Value, Inputs, Level 1 | Future Policy Benefits Annuities | |||||
Estimated Carrying Value | 0 | [6] | 0 | [5] | |
Fair Value, Inputs, Level 2 | Residential Mortgage | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Residential construction | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Commercial Loan | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Mortgage Loans Net | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Policy Loan | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Insurance Assignments | |||||
Estimated Carrying Value | 0 | [1] | 0 | [2] | |
Fair Value, Inputs, Level 2 | Restricted Assets 1 | |||||
Estimated Carrying Value | [3] | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Cemetery Perpetual Care Trust Investments | |||||
Estimated Carrying Value | 0 | [1] | 0 | [3] | |
Fair Value, Inputs, Level 2 | Mortgage Servicing Rights | |||||
Estimated Carrying Value | 0 | 0 | |||
Fair Value, Inputs, Level 2 | Bank And Other Loans Payable | |||||
Estimated Carrying Value | 0 | [6] | 0 | ||
Fair Value, Inputs, Level 2 | Policyholder Account Balances | |||||
Estimated Carrying Value | 0 | [6] | 0 | [5] | |
Fair Value, Inputs, Level 2 | Future Policy Benefits Annuities | |||||
Estimated Carrying Value | 0 | 0 | [5] | ||
Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | |||||
Estimated Carrying Value | 110,849,864 | ||||
Fair Value, Inputs, Level 3 | Residential Mortgage | |||||
Estimated Carrying Value | 90,940,077 | 100,384,283 | |||
Fair Value, Inputs, Level 3 | Residential construction | |||||
Estimated Carrying Value | 105,251,376 | ||||
Fair Value, Inputs, Level 3 | Commercial Loan | |||||
Estimated Carrying Value | 55,014,500 | 45,259,425 | |||
Fair Value, Inputs, Level 3 | Mortgage Loans Net | |||||
Estimated Carrying Value | 251,205,953 | 256,493,572 | |||
Fair Value, Inputs, Level 3 | Policy Loan | |||||
Estimated Carrying Value | 13,946,739 | 14,171,589 | |||
Fair Value, Inputs, Level 3 | Insurance Assignments | |||||
Estimated Carrying Value | 52,955,925 | [1] | 51,585,656 | [2] | |
Fair Value, Inputs, Level 3 | Restricted Assets 1 | |||||
Estimated Carrying Value | [3] | 3,076,760 | 3,317,877 | ||
Fair Value, Inputs, Level 3 | Cemetery Perpetual Care Trust Investments | |||||
Estimated Carrying Value | 1,450,600 | [1] | 1,468,600 | [3] | |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | |||||
Estimated Carrying Value | 55,087,150 | 38,702,358 | |||
Fair Value, Inputs, Level 3 | Bank And Other Loans Payable | |||||
Estimated Carrying Value | (245,973,378) | (297,824,368) | |||
Fair Value, Inputs, Level 3 | Policyholder Account Balances | |||||
Estimated Carrying Value | (42,141,870) | (42,220,725) | [5] | ||
Fair Value, Inputs, Level 3 | Future Policy Benefits Annuities | |||||
Estimated Carrying Value | $ (112,119,227) | $ (112,354,186) | [5] | ||
[1] | Included in other investments and policy loans on the condensed consolidated balance sheets | ||||
[2] | Included in other investments and policy loans on the consolidated balance sheets | ||||
[3] | Mortgage loans held for investment | ||||
[4] | Included in future policy benefits and unpaid claims on the consolidated balance sheets | ||||
[5] | Included in other expenses on the condensed consolidated statements of earnings | ||||
[6] | Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets |
10) Derivative Instruments_ Sch
10) Derivative Instruments: Schedule of Derivative Assets at Fair Value (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Loan Commitments | ||
Derivative, Notional Amount | $ 817,802,853 | $ 659,245,038 |
Derivative Asset, Notional Amount | 10,671,623 | 12,592,672 |
Derivative Liability, Notional Amount | 228,547 | 2,464,062 |
Call Options | ||
Derivative, Notional Amount | 2,042,500 | 1,873,200 |
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Liability, Notional Amount | 79,567 | 43,097 |
Net Derivatives Loan Commitments | ||
Derivative, Notional Amount | 819,845,353 | 661,118,238 |
Derivative Asset, Notional Amount | 10,671,623 | 12,592,672 |
Derivative Liability, Notional Amount | $ 308,114 | $ 2,507,159 |
10) Derivative Instruments_ S_2
10) Derivative Instruments: Schedule of Gains and Losses on Derivatives (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Gain (Loss) on Derivatives, Loan Commitments | $ 314,466 | $ 3,275,032 |
Gain (Loss) on Derivatives, Call and put options | $ 26,762 | $ (737,860) |
11) Reinsurance, Commitments _2
11) Reinsurance, Commitments and Contingencies: Mortgage Loan Loss Settlements (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Text Block [Abstract] | ||
Funds reserved and accrued to settle investor related claims | $ 2,204,983 | $ 20,583,618 |
11) Reinsurance, Commitments _3
11) Reinsurance, Commitments and Contingencies: Other Contingencies and Commitments (Details) | Mar. 31, 2021USD ($) |
Text Block [Abstract] | |
Commitments to fund new residential construction loans | $ 194,792,000 |
Commitments to fund new residential construction loans funded | $ 109,977,951 |
12) Mortgage Servicing Rights_
12) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Text Block [Abstract] | |||
Balance before valuation allowance at beginning of year | $ 35,210,516 | $ 17,155,529 | |
MSRs proceeds from loan sales | 11,008,149 | 29,896,465 | |
Amortization | [1] | (3,439,304) | (11,841,478) |
Application of valuation allowance to write down MSRs with other than temporary impairment | 0 | 0 | |
Balance before valuation allowance at year end | 42,779,361 | 35,210,516 | |
Mortgage servicing rights, net | 42,779,361 | 35,210,516 | |
Estimated fair value of MSRs at end of period | $ 55,087,150 | $ 38,702,358 | |
[1] | Included in other expenses on the condensed consolidated statements of earnings |
12) Mortgage Servicing Rights_2
12) Mortgage Servicing Rights: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights (Details) | Mar. 31, 2021USD ($) |
Text Block [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 5,760,982 |
Finite-Lived Intangible Assets, Amortization Expense, Year One | 4,670,850 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 4,116,524 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,617,054 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,191,065 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 21,422,886 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 42,779,361 |
12) Mortgage Servicing Rights_3
12) Mortgage Servicing Rights: Schedule of Other Revenues (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income | $ 3,468,522 | $ 1,882,752 |
Contractual Servicing Fees | ||
Other Income | 3,387,472 | 1,784,944 |
Late Fees | ||
Other Income | $ 81,050 | $ 97,808 |
12) Mortgage Servicing Rights_4
12) Mortgage Servicing Rights: Summary of Unpaid Principal Balances of the Servicing Portfolio (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Text Block [Abstract] | ||
Servicing Unpaid Principal Balance | $ 5,824,986,566 | $ 5,070,287,864 |
12) Mortgage Servicing Rights_5
12) Mortgage Servicing Rights: Assumptions used in determining MSR value (Details) - Decimal | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Text Block [Abstract] | ||
Prepayment Speeds | 11.90 | 15.60 |
Average Life in Years of MSR | 6 years 8 months 19 days | 5 years 3 months 19 days |
Discount Rate | 9.50 | 9.50 |
13) Income Taxes (Details)
13) Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 25.80% | 3.40% |
Provision for income taxes | $ 4,226,340 | $ 49,785 |
14) Revenues From Contracts W_3
14) Revenues From Contracts With Customers: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Receivables | $ 13,970,177 | $ 10,899,207 | ||
Deferred pre-need cemetery and mortuary contract revenues | 13,514,055 | 13,080,179 | ||
Receivables | ||||
Receivables | [1] | 3,988,538 | 4,119,988 | $ 2,778,879 |
Increase (Decrease) in Accounts Receivable | [1] | (131,450) | 1,341,109 | |
Contract Asset | ||||
Deferred pre-need cemetery and mortuary contract revenues | 0 | 0 | 0 | |
Increase (Decrease) in Deferred Revenue | 0 | 0 | ||
Contract Liability | ||||
Deferred pre-need cemetery and mortuary contract revenues | 13,514,055 | 13,080,179 | $ 12,508,625 | |
Increase (Decrease) in Deferred Revenue | $ 433,876 | $ 472,201 | ||
[1] | Included in Receivables, net on the condensed consolidated balance sheets |
14) Revenues From Contracts W_4
14) Revenues From Contracts With Customers (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Text Block [Abstract] | ||
Revenue recognized included in the opening contract liability | $ 1,135,001 | $ 950,772 |
14) Revenues From Contracts W_5
14) Revenues From Contracts With Customers: Revenues of the Cemetery and Mortuary Contracts (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net mortuary and cemetery sales | $ 5,942,126 | $ 4,458,091 |
Major Goods Or Services Lines, at Need | ||
Net mortuary and cemetery sales | 4,042,020 | 3,385,191 |
Major Goods Or Services Lines, Pre Need | ||
Net mortuary and cemetery sales | 1,900,106 | 1,072,900 |
Timing Of Revenue Recognition, Goods Transferred At A Point In Time | ||
Net mortuary and cemetery sales | 4,198,673 | 2,993,704 |
Timing Of Revenue Recognition, Services Transferred At A Point In Time | ||
Net mortuary and cemetery sales | $ 1,743,453 | $ 1,464,387 |
14) Revenues From Contracts W_6
14) Revenues From Contracts With Customers: Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net mortuary and cemetery sales | $ 5,942,126 | $ 4,458,091 |
Gains (losses) on investments and other assets | 1,960,113 | (3,212,247) |
Net investment income | 14,293,887 | 13,400,499 |
Other Revenues | 4,113,658 | 2,389,569 |
Cemetery and Mortuary | ||
Net mortuary and cemetery sales | 5,942,126 | 4,458,091 |
Gains (losses) on investments and other assets | 798,340 | (660,123) |
Net investment income | 230,304 | 204,846 |
Other Revenues | 28,495 | 10,882 |
Revenues from External Customers | $ 6,999,265 | $ 4,013,696 |