Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 10, 2020 | |
Registrant CIK | 0000318673 | |
Fiscal Year End | --12-31 | |
Registrant Name | Security National Financial Corporation | |
SEC Form | 10-Q | |
Period End date | Jun. 30, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Class A | ||
Number of common stock shares outstanding | 16,557,925 | |
Common Class C | ||
Number of common stock shares outstanding | 2,551,445 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities, available for sale, at estimated fair value | $ 348,628,792 | $ 355,977,820 |
Equity securities at estimated fair value | 11,791,511 | 7,271,165 |
Mortgage loans held for investment (net of allowances for loan losses of $2,443,557 and $1,453,037 for 2020 and 2019) | 260,418,004 | 236,694,546 |
Real estate held for investment (net of accumulated depreciation of $12,801,555 and $12,788,739 for 2020 and 2019) | 113,192,422 | 102,756,946 |
Real estate held for sale | 10,598,341 | 14,097,627 |
Other investments and policy loans (net of allowances for doubtful accounts of $1,533,696 and $1,448,026 for 2020 and 2019) | 65,700,611 | 60,245,269 |
Accrued investment income | 5,008,772 | 4,833,232 |
Total investments | 815,338,453 | 781,876,605 |
Cash and cash equivalents | 116,961,182 | 127,754,719 |
Loans held for sale at estimated fair value | 356,949,958 | 213,457,632 |
Receivables (net of allowances for doubtful accounts of $1,731,873 and $1,724,156 for 2020 and 2019) | 10,208,989 | 9,236,330 |
Restricted assets (including $3,029,593 and $2,985,347 for 2020 and 2019 at estimated fair value) | 16,445,277 | 13,935,317 |
Cemetery perpetual care trust investments (including $2,671,716 and $2,581,124 for 2020 and 2019 at estimated fair value) | 5,230,630 | 4,411,864 |
Receivable from reinsurers | 15,858,896 | 15,747,768 |
Cemetery land and improvements | 9,173,403 | 9,519,950 |
Deferred plicy and pre-need contract acquisition costs | 97,528,343 | 94,701,920 |
Mortgage servicing rights, net | 21,695,123 | 17,155,529 |
Property and equipment, net | 12,952,262 | 14,600,394 |
Value of business acquired | 9,570,741 | 9,876,647 |
Goodwill | 3,519,588 | 3,519,588 |
Other | 29,628,897 | 18,649,812 |
Total Assets | 1,521,061,742 | 1,334,444,075 |
Liabilities | ||
Future policy benefits and unpaid claims | 837,481,978 | 825,600,918 |
Unearned premium reserve | 3,476,463 | 3,621,697 |
Bank and other loans payable | 347,139,008 | 217,572,612 |
Deferred pre-need cemetery and mortuary contract revenues | 12,930,466 | 12,607,978 |
Cemetery Perpetual Care Trust Obligation | 4,003,169 | 3,933,719 |
Accounts payable | 4,920,178 | 5,056,983 |
Other liabilities and accrued expenses | 62,689,482 | 50,652,591 |
Income Taxes | 25,806,772 | 18,686,972 |
Total liabilities | 1,298,447,516 | 1,137,733,470 |
Stockholders' Equity | ||
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Additional paid-in capital | 48,917,891 | 46,091,112 |
Accumulated other comprehensive income, net of taxes | 16,894,089 | 13,726,514 |
Retained earnings | 120,126,524 | 101,256,229 |
Treasury stock at cost - 349,850 Class A shares in 2020 and 490,823 Class A shares in 2019 | (1,542,276) | (1,580,582) |
Total stockholders' equity | 222,614,226 | 196,710,605 |
Total Liabilities and Stockholders' Equity | 1,521,061,742 | 1,334,444,075 |
Common Class A | ||
Stockholders' Equity | ||
Common Stock, Value, Issued | 33,115,108 | 32,215,558 |
Common Class B | ||
Stockholders' Equity | ||
Common Stock, Value, Issued | 0 | 0 |
Common Class C | ||
Stockholders' Equity | ||
Common Stock, Value, Issued | $ 5,102,890 | $ 5,001,774 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance for Loan and Lease Losses, Real Estate | $ 2,443,557 | $ 1,453,037 |
Real Estate Investment Property, Accumulated Depreciation | 12,801,555 | 12,788,739 |
Allowance for Doubtful Accounts, Premiums and Other Receivables | 1,533,696 | 1,448,026 |
Accounts Receivable, Allowance for Credit Loss | 1,731,873 | 1,724,156 |
Aggregate Fair Value, Restricted Assets | 3,029,593 | 2,985,347 |
Aggregate Fair Value, Cemetary Perpetual Care Trust Investments | $ 2,671,716 | $ 2,581,124 |
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 |
Treasury Stock, Shares | 349,850 | 490,823 |
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 | 16,557,554 | 16,107,779 |
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 | 2,551,445 | 2,500,887 |
Common Stock, Shares, Outstanding | 2,551,445 | 2,500,887 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Insurance premiums and other considerations | $ 22,924,709 | $ 19,645,218 | $ 45,215,985 | $ 38,672,220 |
Net investment income | 12,962,745 | 10,540,835 | 26,363,244 | 20,582,503 |
Net mortuary and cemetery sales | 4,700,778 | 4,000,730 | 9,158,869 | 7,679,358 |
Gains (losses) on investments and other assets | 2,238,279 | (1,025,893) | (973,968) | 780,768 |
Mortgage fee income | 73,368,333 | 32,946,567 | 113,650,094 | 57,425,438 |
Other Revenues | 2,466,898 | 2,337,725 | 4,856,467 | 4,798,730 |
Total revenues | 118,661,742 | 68,445,182 | 198,270,691 | 129,939,017 |
Benefits and expenses: | ||||
Death benefits | 13,586,723 | 9,248,796 | 26,994,350 | 19,326,699 |
Surrenders and other policy benefits | 838,191 | 763,978 | 1,908,666 | 1,629,909 |
Increase in future policy benefits | 6,603,843 | 5,676,111 | 13,641,876 | 11,427,241 |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 3,026,666 | 3,073,478 | 6,541,723 | 6,201,752 |
Selling, general and administrative expenses: | ||||
Commissions | 27,239,088 | 13,853,889 | 43,793,831 | 23,528,981 |
Personnel | 20,538,655 | 15,699,260 | 39,258,653 | 30,730,596 |
Advertising | 1,229,841 | 1,171,903 | 2,235,158 | 2,205,078 |
Rent and rent related | 1,662,853 | 1,724,179 | 3,277,594 | 3,628,467 |
Depreciation on property and equipment | 518,070 | 422,926 | 1,034,283 | 872,606 |
Costs related to funding mortgage loans | 2,378,815 | 1,559,289 | 4,335,097 | 2,914,214 |
Other | 11,303,388 | 8,154,367 | 21,378,930 | 15,799,494 |
Interest expense | 1,881,440 | 1,782,557 | 3,700,049 | 3,274,444 |
Cost of goods and services sold-mortuaries and cemeteries | 660,413 | 690,606 | 1,502,491 | 1,343,534 |
Total benefits and expenses | 91,467,986 | 63,821,339 | 169,602,701 | 122,883,015 |
Earnings before income taxes | 27,193,756 | 4,623,843 | 28,667,990 | 7,056,002 |
Income tax expense | (6,636,709) | (1,143,789) | (6,686,494) | (1,645,630) |
Net earnings | $ 20,557,047 | $ 3,480,054 | $ 21,981,496 | $ 5,410,372 |
Net earnings per Class A Equivalent common share | $ 1.10 | $ 0.19 | $ 1.18 | $ 0.29 |
Net earnings per Class A Equivalent common share-assuming dilution | $ 1.07 | $ 0.19 | $ 1.15 | $ 0.29 |
Weighted-average Class A equivalent common share outstanding | 18,764,831 | 18,576,031 | 18,703,390 | 18,567,907 |
Weighted-average Class A equivalent common shares outstanding-assuming dilution | 19,183,491 | 18,810,276 | 19,036,249 | 18,807,576 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Net earnings | $ 20,557,047 | $ 3,480,054 | $ 21,981,496 | $ 5,410,372 |
Other comprehensive income: | ||||
Unrealized gains on fixed maturity securities available for sale | 15,180,782 | 0 | 3,999,631 | 0 |
Unrealized gains on restricted assets | 18,072 | 0 | 4,987 | 0 |
Unrealized gains on cemetery perpetual care trust investments | 17,815 | 0 | 5,769 | 0 |
Foreign currency translation adjustments | 165 | 954 | (280) | 2,046 |
Other comprehensive income, before income tax | 15,216,834 | 954 | 4,010,107 | 2,046 |
Income tax benefit | (3,196,946) | (238) | (842,532) | (510) |
Other comprehensive income, net of income tax | 12,019,888 | 716 | 3,167,575 | 1,536 |
Comprehensive income | $ 32,576,935 | $ 3,480,770 | $ 25,149,071 | $ 5,411,908 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net cash used in operating activities | $ (109,561,903) | $ (40,725,988) |
Cash flows from investing activities: | ||
Purchases of fixed maturity securities | (49,243,362) | (4,570,527) |
Calls and maturities of fixed maturity securities | 60,438,933 | 13,688,850 |
Purchases of equity securities | (13,396,648) | (2,046,346) |
Sales of equity securities | 7,841,952 | 763,548 |
Net changes in restricted assets | (1,476,279) | (1,380,216) |
Net changes in perpetual care trusts | (120,904) | 757,527 |
Mortgage loans held for investment, other investments and policy loans made | (313,439,255) | (273,167,834) |
Payments received for mortgage loans held for investment, other investments and policy loans | 291,577,885 | 269,379,815 |
Purchase of property and equipment | (910,429) | (367,466) |
Sale of property and equipment | 0 | 51,102 |
Purchase of real estate | (12,217,051) | (4,316,130) |
Sale of real estate | 6,584,359 | 4,945,323 |
Cash paid for purchase of subsidiaries, net of cash acquired | 0 | (3,261,788) |
Net cash provided by (used in) investing activities | (24,360,799) | 475,858 |
Cash flows from financing activities: | ||
Investment contract receipts | 5,180,530 | 6,275,671 |
Investment contract withdrawals | (8,606,537) | (8,729,845) |
Proceeds from stock options exercised | 10,892 | 47,173 |
Payments to acquire treasury stock | (890,321) | (287,108) |
Repayment of bank and other loans | (48,739,820) | (93,583,859) |
Proceeds from borrowing on bank loans | 119,172,821 | 92,967,146 |
Net change in warehouse line borrowings for loans held for sale | 59,048,513 | 29,203,601 |
Net cash provided by financing activities | 125,176,078 | 25,892,779 |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | (8,746,624) | (14,357,351) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 137,735,673 | 150,936,673 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 128,989,049 | 136,579,322 |
Supplemental Cash Flow Information | ||
Cash paid during the year for interest | 3,732,031 | 3,219,201 |
Cash paid during the year for income taxes (net of refunds) | 409,223 | 960,408 |
Non Cash Operating, Investing and Financing Activities: | ||
Transfer of loans held for sale to mortgage loans held for investment | 8,933,676 | 0 |
Right-of-use assets obtained in exchange for operating lease liabilities | 4,641,238 | 11,860,956 |
Benefit plans funded with treasury stock | 1,466,583 | 455,291 |
Accrued real estate construction costs and retainage | 687,314 | 823,545 |
Mortgage loans held for investment foreclosed into real estate held for investment | 686,124 | 755,000 |
Right-of-use assets obtained in exchange for finance lease liabilities | 8,494 | 244,855 |
Receivable for maturities of fixed maturity securities | 0 | 10,000,000 |
Mortgage loans held for investment foreclosed into receivables | $ 0 | $ 155,347 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows (Continued) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||
Cash and cash equivalents | $ 116,961,182 | $ 127,828,356 |
Restricted assets | 9,992,953 | 7,076,341 |
Cemetery perpetual care trust investments | 2,034,914 | 1,674,625 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 128,989,049 | $ 136,579,322 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Class A Common Stock | Class C Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2018 | $ 30,609,596 | $ 4,387,286 | $ 41,821,778 | $ (2,823) | $ 95,201,732 | $ (206,396) | $ 171,811,173 |
Net earnings | 1,930,318 | 1,930,318 | |||||
Other comprehensive loss | 820 | 820 | |||||
Stock-based compensation expense | 64,704 | 64,704 | |||||
Exercise of stock options | 8,936 | 8,444 | 17,380 | ||||
Sale of treasury stock | 295,153 | 42,343 | 337,496 | ||||
Purchase of treasury stock | (112,404) | (112,404) | |||||
Stock dividends | 282 | (4) | 489 | (769) | (2) | ||
Conversion Class C to Class A | 6,560 | (6,560) | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2019 | 30,625,374 | 4,380,722 | 42,190,568 | (2,003) | 97,131,281 | (276,457) | 174,049,485 |
Net earnings | 3,480,054 | 3,480,054 | |||||
Other comprehensive loss | 716 | 716 | |||||
Stock-based compensation expense | 65,037 | 65,037 | |||||
Exercise of stock options | 20,274 | 9,519 | 29,793 | ||||
Sale of treasury stock | 92,605 | 25,190 | 117,795 | ||||
Purchase of treasury stock | (174,704) | (174,704) | |||||
Conversion Class C to Class A | 12 | (14) | 2 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2019 | 30,645,660 | 4,380,708 | 42,357,731 | (1,287) | 100,611,335 | (425,971) | 177,568,176 |
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 loss | (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 |
Net earnings | 20,557,047 | 20,557,047 | |||||
Other comprehensive loss | 12,019,888 | 12,019,888 | |||||
Stock-based compensation expense | 101,520 | 101,520 | |||||
Exercise of stock options | 22,726 | (22,726) | |||||
Sale of treasury stock | 319,676 | 664,546 | 984,222 | ||||
Purchase of treasury stock | (760,713) | (760,713) | |||||
Stock dividends | 807,356 | 124,460 | 2,175,790 | (3,107,607) | (1) | ||
Conversion Class C to Class A | |||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2020 | $ 33,115,108 | $ 5,102,890 | $ 48,917,891 | $ 16,894,089 | $ 120,126,524 | $ (1,542,276) | $ 222,614,226 |
1) Basis of Presentation
1) Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, 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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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. The novel coronavirus (“COVID-19”) spread rapidly across the world in the first and second quarters of 2020 and was declared a pandemic (the “COVID-19 Pandemic”) by the World Health Organization. The government and private sector responses to contain its spread began to affect the Company’s operations in March, has continued to affect the Company’s operations and will likely continue to affect nearly all of the Company’s operations in the third quarter, although such effects may vary significantly. The duration and extent of the effects over longer terms cannot be reasonably estimated at this time. The risks and uncertainties resulting from the pandemic that may affect the Company’s future earnings, cash flows, and financial condition include the nature and duration of the curtailment or closure of the Company’s various facilities and the long-term effect on the demand for the Company’s products and services. 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. |
2) Recent Accounting Pronouncem
2) Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
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 Adopted in 2019 ASU No. 2016-02: “Leases (Topic 842)” The Company adopted this standard on January 1, 2019 using the modified retrospective transition method with no cumulative-effect adjustment to the opening balance of retained earnings. Under this transition method, the application date was the beginning of the reporting period, January 1, 2019, in which the Company first applied the standard. Under this transition option, the Company will apply the legacy guidance in ASC 840, “Leases”, including its disclosure requirements, in the comparative periods presented in the year of adoption. The Company has made an accounting policy election not to apply the recognition requirements to short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying assets that the lessee is reasonably certain to exercise. The new authoritative guidance allows for certain practical expedients to be utilized to assist with the implementation of the new standard. The Company has elected the transition package of practical expedients which allows the Company to not reassess whether any expired or existing contracts are or contain leases, to not reassess the lease classification for any expired or existing leases and to not reassess initial direct costs for any existing leases. The Company implemented a third-party lease accounting system to assist with the measurement of the lease liabilities and the related right-of-use assets. The Company compiled an inventory of its leases, determined the appropriate discount rates and has determined the impact of this standard which is not material to the Company’s results of operations, but has an effect on the balance sheet presentation for leased assets and obligations. The Company recognized a right-of-use asset and related lease liability for approximately $12,076,000 on January 1, 2019. This standard did not impact the Company’s accounting for leases where the Company is the lessor. 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 | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
3) Investments | 3) Investments The Company’s investments as of June 30, 2020 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2020 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 102,442,154 $ 2,147,334 $ - $ 104,589,488 Obligations of states and political subdivisions 5,878,900 269,394 (2,661) 6,145,633 Corporate securities including public utilities 182,731,042 21,371,660 (2,841,768) 201,260,934 Mortgage-backed securities 35,789,063 1,209,447 (734,173) 36,264,337 Redeemable preferred stock 364,339 21,561 (17,500) 368,400 Total fixed maturity securities available for sale $ 327,205,498 $ 25,019,396 $ (3,596,102) $ 348,628,792 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 12,380,259 $ 1,525,151 $ (2,113,899) $ 11,791,511 Total equity securities at estimated fair value $ 12,380,259 $ 1,525,151 $ (2,113,899) $ 11,791,511 Mortgage loans held for investment at amortized cost: Residential $ 109,304,960 Residential construction 106,890,366 Commercial 49,613,367 Less: Unamortized deferred loan fees, net (1,730,243) Less: Allowance for loan losses (2,443,557) Less: Net discounts (1,216,889) Total mortgage loans held for investment $ 260,418,004 Real estate held for investment - net of accumulated depreciation: Residential $ 19,973,537 Commercial 93,218,885 Total real estate held for investment $ 113,192,422 Real estate held for sale: Residential $ 4,522,020 Commercial 6,076,321 Total real estate held for sale $ 10,598,341 Other investments and policy loans at amortized cost: Policy loans $ 14,450,587 Insurance assignments 43,276,682 Federal Home Loan Bank stock (1) 4,056,600 Other investments 5,450,438 Less: Allowance for doubtful accounts (1,533,696) Total policy loans and other investments $ 65,700,611 Accrued investment income $ 5,008,772 Total investments $ 815,338,453 (1) Includes $874,400 of Membership stock and $3,182,200 of Activity stock due to short-term borrowings. The Company’s investments as of December 31, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 142,740,641 $ 632,185 $ (25,215) $ 143,347,611 Obligations of states and political subdivisions 7,450,366 87,812 (9,026) 7,529,152 Corporate securities including public utilities 156,599,184 16,768,449 (463,413) 172,904,220 Mortgage-backed securities 31,475,280 597,395 (240,177) 31,832,498 Redeemable preferred stock 364,339 - - 364,339 Total fixed maturity securities available for sale $ 338,629,810 $ 18,085,841 $ (737,831) $ 355,977,820 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 6,900,537 $ 1,139,799 $ (769,171) $ 7,271,165 Total equity securities at estimated fair value $ 6,900,537 $ 1,139,799 $ (769,171) $ 7,271,165 Mortgage loans held for investment at amortized cost: Residential $ 113,043,965 Residential construction 89,430,237 Commercial 38,718,220 Less: Unamortized deferred loan fees, net (2,391,567) Less: Allowance for loan losses (1,453,037) Less: Net discounts (653,272) Total mortgage loans held for investment $ 236,694,546 Real estate held for investment - net of accumulated depreciation: Residential $ 12,530,306 Commercial 90,226,640 Total real estate held for investment $ 102,756,946 Real estate held for sale: Residential $ 8,021,306 Commercial 6,076,321 Total real estate held for sale $ 14,097,627 Other investments and policy loans at amortized cost: Policy loans $ 14,762,805 Insurance assignments 41,062,965 Federal Home Loan Bank stock (1) 894,300 Other investments 4,973,225 Less: Allowance for doubtful accounts (1,448,026) Total policy loans and other investments $ 60,245,269 Accrued investment income $ 4,833,232 Total investments $ 781,876,605 (1) Includes $894,300 of Membership stock and $-0- 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 June 30, 2020 and December 31, 2019. 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 Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At June 30, 2020 Obligations of States and Political Subdivisions $ 2,661 $ 717,466 $ - $ - $ 2,661 $ 717,466 Corporate Securities 1,876,784 22,141,540 964,984 3,039,240 2,841,768 25,180,780 Mortgage and other asset-backed securities 710,364 10,024,319 23,809 504,583 734,173 10,528,902 Redeemable preferred stock 17,500 232,500 - - 17,500 232,500 Total unrealized losses $ 2,607,309 $ 33,115,825 $ 988,793 $ 3,543,823 $ 3,596,102 $ 36,659,648 At December 31, 2019 U.S. Treasury Securities and Obligations of U.S. Government Agencies $ 20,211 $ 30,629,288 $ 5,004 $ 10,000,400 $ 25,215 $ 40,629,688 Obligations of States and Political Subdivisions 9,026 3,062,889 - - 9,026 3,062,889 Corporate Securities 118,746 7,184,311 344,667 3,950,509 463,413 11,134,820 Mortgage and other asset-backed securities 205,470 13,266,443 34,707 502,769 240,177 13,769,212 Total unrealized losses $ 353,453 $ 54,142,931 $ 384,378 $ 14,453,678 $ 737,831 $ 68,596,609 There were 134 securities with fair value of 91.1% of amortized cost at June 30, 2020. There were 93 securities with fair value of 98.9% of amortized cost at December 31, 2019. No credit losses have been recognized for the three and six months ended June 30, 2020 and 2019. 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. Impairment losses are treated as credit losses as the Company holds fixed maturity securities to maturity unless the underlying conditions have changed in the financial instrument to require an impairment. 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 amortized cost and estimated fair value of fixed maturity securities available for sale, at June 30, 2020, 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 $ 61,039,649 $ 61,451,128 Due in 2-5 years 73,278,818 76,149,038 Due in 5-10 years 82,777,913 88,468,598 Due in more than 10 years 73,955,716 85,927,291 Mortgage-backed securities 35,789,063 36,264,337 Redeemable preferred stock 364,339 368,400 Total $ 327,205,498 $ 348,628,792 The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). The Company pledged a total of $100,000,000, par value, of United States Treasury fixed maturity securities with the FHLB at June 30, 2020. These securities are used as collateral on any cash borrowings from the FHLB. As of June 30, 2020, the Company owed $79,000,000 to the FHLB and its estimated remaining maximum borrowing capacity was $19,572,000. 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 June 30 Six Months Ended June 30 2020 2019 2020 2019 Fixed maturity securities: Gross realized gains $ 55,138 $ 163,038 $ 150,959 $ 248,626 Gross realized losses (12,089) (69,622) (12,089) (105,015) Equity securities: Gains (losses) on securities sold (50,029) 41,088 (107,471) 52,664 Unrealized gains and (losses) on securities held at the end of the period 1,738,059 14,016 (1,023,797) 775,224 Other assets: Gross realized gains 48,736 688,289 505,764 1,793,223 Gross realized losses 458,464 (1,862,702) (487,334) (1,983,954) Total $ 2,238,279 $ (1,025,893) $ (973,968) $ 780,768 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. On December 31, 2019, the Company changed the classification of its bond and preferred stock investments from held to maturity to available for sale based on the Company’s need to be able to respond proactively to market risks in managing its portfolio. Proceeds received from the sale of fixed maturity available for sale securities for the six months ended June 30, 2020, were $2,753,331, and resulted in gross realized gains and gross realized losses of $133,339 and $137, respectively. The carrying amount of held to maturity securities sold for the six months ended June 30, 2019 was $662,972 and the net realized loss related to these sales was $53,097. Major categories of net investment income are as follows: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Fixed maturity securities $ 3,143,072 $ 2,528,689 $ 6,067,786 $ 5,032,554 Equity securities 111,122 74,730 203,164 152,651 Mortgage loans held for investment 5,582,152 4,525,817 11,236,042 8,629,184 Real estate held for investment 2,787,881 2,096,927 5,941,267 4,007,221 Policy loans 257,527 106,905 491,492 195,042 Insurance assignments 4,383,398 3,906,832 8,682,602 8,118,952 Other investments 398 52,130 25,421 106,678 Cash and cash equivalents 22,385 465,959 320,390 964,876 Gross investment income 16,287,935 13,757,989 32,968,164 27,207,158 Investment expenses (3,325,190) (3,217,154) (6,604,920) (6,624,655) Net investment income $ 12,962,745 $ 10,540,835 $ 26,363,244 $ 20,582,503 Net investment income includes income earned by the restricted assets cemeteries and mortuaries of $140,093 and $134,229 for the three months ended June 30, 2020 and 2019, respectively, and $250,732 and $220,516 for the six months ended June 30, 2020 and 2019, 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 $9,632,398 at June 30, 2020 and $9,633,818 at December 31, 2019. 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 June 30, 2020, other than investments issued or guaranteed by the United States Government. Real Estate Held for Investment and Held for Sale The Company continues to strategically deploy 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 13 commercial properties in 5 states. These properties include office buildings, an assisted living facility, 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 borrowings was approximately $70,578,000 and $87,815,000 as of June 30, 2020 and December 31, 2019, respectively. The associated bank loan carrying values totaled approximately $47,068,000 and $54,917,000 as of June 30, 2020 and December 31, 2019, respectively. During the three months ended June 30, 2020 and 2019, the Company recorded impairment losses on commercial real estate held for sale of $15,551 and $-0-, respectively. During the six months ended June 30, 2020 and 2019, the Company recorded impairment losses on commercial real estate held for sale of $46,980 and $1,867,197, 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 June 30 December 31 2019 June 30 December 31 2019 Louisiana $ 5,929,267 $ 6,009,079 125,114 125,114 Mississippi 2,914,989 2,951,478 21,521 21,521 Utah (1) 84,374,629 81,266,083 462,730 462,730 $93,218,885 $ 90,226,640 609,365 609,365 (1) Includes Center53 phase 1 completed in July 2017 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 June 30 December 31 2019 June 30 December 31 2019 Arizona (1) $ 2,500 $ 2,500 - - Kansas 4,800,000 4,800,000 222,679 222,679 Mississippi 318,322 318,322 12,300 12,300 Nevada 655,499 655,499 4,800 4,800 Texas (2) 300,000 300,000 - - $ 6,076,321 $ 6,076,321 239,779 239,779 (1) Undeveloped land (2) 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 portfolio of residential homes primarily as a result of loan foreclosures. The strategy has been to lease these homes to produce cash flow and allow time for the economic fundamentals to return to the various markets. As an orderly and active market for these homes returns, the Company has the option to dispose or to continue and hold them for cash flow and acceptable returns. The Company also invests in residential subdivision 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 June 30, 2020, SNRE manages 24 residential properties in 6 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 $7,698,000 and $12,434,000 as of June 30, 2020 and December 31, 2019, respectively. During the three and six months ended June 30, 2020 and 2019 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 June 30 December 31 2019 Florida $ 1,269,577 $ 2,487,723 Nevada 686,124 293,516 Utah (1) 17,731,655 9,462,886 Washington 286,181 286,181 $ 19,973,537 $ 12,530,306 (1) Includes subdivision land developments The following is a summary of the Company’s residential real estate held for sale for the periods presented: Net Ending Balance June 30 December 31 2019 California 421,452 640,452 Florida 1,351,040 1,300,641 Nevada 293,516 - Ohio 10,000 10,000 Utah 2,446,012 5,880,213 Washington - 190,000 $ 4,522,020 $ 8,021,306 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 June 30, 2020, 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)(2) Life Insurance Operations 12,274 100% 909 Foisy Street, Alexandria, LA (1)(2) Life Insurance Sales 8,059 100% 812 Sheppard Street, Minden, LA (1)(2) Life Insurance Sales 1,560 100% 1550 N 3rd Street, Jena, LA (1)(2) Life Insurance Sales 1,737 100% (1) Included in property and equipment on the condensed consolidated balance sheets (2) See Note 15 regarding the acquisition of Kilpatrick Life Insurance Company 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 June 30, 2020, the Company had 54%, 15%, 8%, 5%, 5% and 3% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, Nevada, California, and Arizona, respectively. At December 31, 2019, the Company had 48%, 16%, 10%, 6%, 6% and 5% 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 June 30, 2020 Allowance for credit losses: Beginning balance - January 1, 2020 $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Charge-offs - - - - Provision - 990,520 - 990,520 Ending balance - June 30, 2020 $ 187,129 $ 2,213,226 $ 43,202 $ 2,443,557 Ending balance: individually evaluated for impairment $ - $ 427,069 $ - $ 427,069 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,786,157 $ 43,202 $ 2,016,488 Mortgage loans: Ending balance $ 49,613,367 $ 109,304,960 $ 106,890,366 $ 265,808,693 Ending balance: individually evaluated for impairment $ 1,039,013 $ 7,106,397 $ 1,389,574 $ 9,534,984 Ending balance: collectively evaluated for impairment $ 48,574,354 $ 102,198,563 $ 105,500,792 $ 256,273,709 December 31, 2019 Allowance for credit losses: Beginning balance - January 1, 2019 $ 187,129 $ 1,125,623 $ 35,220 $ 1,347,972 Charge-offs - (32,692) - (32,692) Provision - 129,775 7,982 137,757 Ending balance - December 31, 2019 $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Ending balance: individually evaluated for impairment $ - $ 195,993 $ - $ 195,993 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,026,713 $ 43,202 $ 1,257,044 Mortgage loans: Ending balance $ 38,718,220 $ 113,043,965 $ 89,430,237 $ 241,192,422 Ending balance: individually evaluated for impairment $ 4,488,719 $ 3,752,207 $ 655,000 $ 8,895,926 Ending balance: collectively evaluated for impairment $ 34,229,501 $ 109,291,758 $ 88,775,237 $ 232,296,496 The following is a summary of the aging of mortgage loans held for investment for the periods presented: 30-59 Days 60-89 Days Greater Than In Process of Foreclosure (1) Total Current Total Allowance for Unamortized deferred loan fees, net Unamortized discounts, net Net Mortgage June 30, 2020 Commercial $ 2,783,200 $ 371,938 $ 1,039,013 $ - $ 4,194,151 $ 45,419,216 $ 49,613,367 $ (187,129) $ (11,545) $ (849,914) $ 48,564,779 Residential 7,624,435 3,308,995 5,423,083 1,683,314 18,039,827 91,265,133 109,304,960 (2,213,226) (1,258,346) (366,975) 105,466,413 Residential - - 1,389,574 - 1,389,574 105,500,792 106,890,366 (43,202) (460,352) - 106,386,812 Total $ 10,407,635 $ 3,680,933 $ 7,851,670 $ 1,683,314 $23,623,552 $242,185,141 $ 65,808,693 $(2,443,557) $ (1,730,243) $ (1,216,889) $ 260,418,004 December 31, 2019 Commercial $ 1,872,000 $ - $ 4,488,719 $ - $ 6,360,719 $ 32,357,501 $ 38,718,220 $ (187,129) $ (88,918) $ (653,272) $ 37,788,901 Residential 10,609,296 4,085,767 2,100,742 1,651,465 18,447,270 94,596,695 113,043,965 (1,222,706) (1,567,581) - 110,253,678 Residential - - 655,000 - 655,000 88,775,237 89,430,237 (43,202) (735,068) - 88,651,967 Total $ 12,481,296 $ 4,085,767 $ 7,244,461 $ 1,651,465 $25,462,989 $215,729,433 $241,192,422 $(1,453,037) $ (2,391,567) $ (653,272) $236,694,546 (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 June 30, 2020 With no related allowance recorded: Commercial $ 1,039,013 $ 1,039,013 $ - $ 951,866 $ - Residential 4,683,807 4,683,807 - 3,466,388 - Residential construction 1,389,574 1,389,574 - 694,787 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 2,422,590 2,422,590 427,069 2,355,231 - Residential construction - - - - - Total: Commercial $ 1,039,013 $ 1,039,013 $ - $ 951,866 $ - Residential 7,106,397 7,106,397 427,069 5,821,619 - Residential construction 1,389,574 1,389,574 - 694,787 - December 31, 2019 With no related allowance recorded: Commercial $ 4,488,719 $ 4,488,719 $ - $ 1,499,043 $ - Residential 2,254,189 2,254,189 - 3,367,151 - Residential construction 655,000 655,000 - 1,457,278 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,498,018 1,498,018 195,993 665,270 - Residential construction - - - - - Total: Commercial $ 4,488,719 $ 4,488,719 $ - $ 1,499,043 $ - Residential 3,752,207 3,752,207 195,993 4,032,421 - Residential construction 655,000 655,000 - 1,457,278 - 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 June December June December June December June December Performing $ 48,574,354 $ 34,229,501 $ 102,198,563 $109,291,758 $ 105,500,792 $ 88,775,237 $ 256,273,709 $ 232,296,496 Non-performing 1,039,013 4,488,719 7,106,397 3,752,207 1,389,574 655,000 9,534,984 8,895,926 Total $ 49,613,367 $ 38,718,220 $ 109,304,960 $113,043,965 $ 106,890,366 $ 89,430,237 $ 265,808,693 $ 241,192,422 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 $384,000 and $203,000 as of June 30, 2020 and December 31, 2019, respectively. The following is a summary of mortgage loans held for investment on a non-accrual status for the periods presented. As of June 30 As of December 31 Commercial $ 1,039,013 $ 4,488,719 Residential 7,106,397 3,752,207 Residential construction 1,389,574 655,000 Total $ 9,534,984 $ 8,895,926 |
4) Loans Held For Sale
4) Loans Held For Sale | 6 Months Ended |
Jun. 30, 2020 | |
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. There is one loan with an unpaid principal balance of $227,794 that is 90 or more days past due and on a nonaccrual status as of June 30, 2020. 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 June 30 As of December 31 2019 Aggregate fair value $ 356,949,958 $ 213,457,632 Unpaid principal balance 344,480,058 206,417,122 Unrealized gain 12,469,900 7,040,510 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 June 30 Six Months Ended June 30 2020 2019 2020 2019 Loan fees $ 15,226,536 $ 8,626,163 $ 22,940,750 $ 13,437,482 Interest income 2,601,605 1,690,098 4,282,063 2,904,730 Secondary gains 49,422,815 21,201,216 77,269,683 38,585,201 Change in fair value of loan commitments 5,278,099 603,797 8,553,132 1,536,324 Change in fair value of loans held for sale 2,363,713 977,799 2,742,010 1,216,586 Provision for loan loss reserve (1,524,435) (152,506) (2,137,544) (254,885) Mortgage fee income $ 73,368,333 $ 32,946,567 $ 113,650,094 $ 57,425,438 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 June 30 As of December 31 Balance, beginning of period $ 4,046,288 $ 3,604,869 Provision on current loan originations (1) 1,524,435 643,284 Charge-offs, net of recaptured amounts (784,357) (201,865) Balance, end of period $ 4,786,366 $ 4,046,288 (1) Included in mortgage fee income The Company maintains reserves for estimated losses on current production volumes. For the six months ended June 30, 2020, $1,768,968 in reserves were added at a rate of 8.6 basis points per loan, the equivalent of $860 per $1,000,000 in loans originated. This is an increase over the six months ended June 30, 2019, 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 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. Based on the Company’s best estimate for potential loan losses and considering published industry data, a loss reserve of 8 basis points per loan originated will continue in the third quarter 2020. The Company will continue to monitor data and economic conditions in order to maintain adequate loss reserves on current production. As of June 30, 2020, the loan loss reserve includes approximately $3,000,000 for remaining losses still to be settled on loans originated between 2004 and 2007. On July 30, 2020, a settlement agreement with an investor was executed which covered all remaining anticipated claims against this population of loans. Loss reserves are sufficient to cover the settlement expense, and the reserves will be reduced by that amount during the third quarter 2020. No additional loss reserves are being held for loans originated between 2004 and 2007. Thus, the Company believes that the final loan loss reserve as of June 30, 2020, represents its best estimate for adequate loss reserves on loans sold. |
5) Stock Compensation Plans
5) Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2020 | |
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 $101,520 and $65,037 has been recognized for these plans for the three months ended June 30, 2020 and 2019, respectively, and $167,397 and $129,741 has been recognized for these plans for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the total unrecognized compensation expense related to the options issued was $227,269, which is expected to be recognized over the vesting period of one year. 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 June 30, 2020, and the changes during the six months ended June 30, 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 29,099 22,544 Granted 77,000 180,000 Exercised (78,803) - Cancelled - - Outstanding at June 30, 2020 1,113,349 $ 4.27 796,676 $ 4.87 As of June 30, 2020: Options exercisable 1,013,955 $ 4.27 561,440 $ 5.11 As of June 30, 2020: Available options for future grant 325,372 266,500 Weighted average contractual term of options outstanding at June 30, 2020 5.97 years 6.18 years Weighted average contractual term of options exercisable at June 30, 2020 5.61 years 5.32 years Aggregated intrinsic value of options outstanding at June 30, 2020 (1) $2,568,502 $1,360,855 Aggregated intrinsic value of options exercisable at June 30, 2020 (1) $2,338,090 $823,712 (1) The Company used a stock price of $6.58 as of June 30, 2020 to derive intrinsic value. A summary of the status of the Company’s stock compensation plans as of June 30, 2019, and the changes during the three months ended June 30, 2019, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2019 1,011,274 $ 4.49 577,280 $ 5.15 Granted 2,000 - Exercised (15,328) - Cancelled - - Outstanding at June 30, 2019 997,946 $ 4.50 577,280 $ 5.15 As of June 30, 2019: Options exercisable 921,895 $ 4.42 530,030 $ 5.14 As of June 30, 2019: Available options for future grant 299,351 146,425 Weighted average contractual term of options outstanding at June 30, 2019 5.65 years 3.46 years Weighted average contractual term of options exercisable at June 30, 2019 5.53 years 2.93 years Aggregated intrinsic value of options outstanding at June 30, 2019 (1) $822,875 $218,010 Aggregated intrinsic value of options exercisable at June 30, 2019 (1) $822,875 $218,010 (1) The Company used a stock price of $5.02 as of June 30, 2019 to derive intrinsic value. 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 six months June 30, 2020 and 2019 was $191,656 and $15,220, respectively. |
6) Earnings Per Share
6) Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended 2020 2019 2020 2019 Numerator: Net earnings $ 20,557,047 $ 3,480,054 $ 21,981,496 $ 5,410,372 Denominator: Basic weighted-average shares outstanding 18,764,831 18,576,031 18,703,390 18,567,907 Effect of dilutive securities: Employee stock options 418,660 234,245 332,859 239,669 Diluted weighted-average shares outstanding 19,183,491 18,810,276 19,036,249 18,807,576 Basic net earnings per share $1.10 $0.19 $1.18 $0.29 Diluted net earnings per share $1.07 $0.19 $1.15 $0.29 Net earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. For the six months June 30, 2020 and 2019, there were -0- and 857,227 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. |
7) Business Segment Information
7) Business Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019. 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 Eliminations Consolidated For the Three Months Ended June 30, 2020 Revenues from external customers $ 37,788,593 $ 5,306,305 $ 75,566,844 $ - $ 118,661,742 Intersegment revenues 1,816,185 89,799 190,701 (2,096,685) - Segment profit before income taxes 3,670,369 1,548,452 21,974,935 - 27,193,756 For the Three Months Ended June 30, 2019 Revenues from external customers $ 28,607,056 $ 4,543,007 $ 35,295,119 $ - $ 68,445,182 Intersegment revenues 1,080,347 113,622 124,921 (1,318,890) - Segment profit before income taxes 1,219,001 1,023,782 2,381,060 - 4,623,843 For the Six Months Ended June 30, 2020 Revenues from external customers $ 70,994,355 $ 9,320,001 $ 117,956,335 $ - $ 198,270,691 Intersegment revenues 2,724,353 193,313 391,033 (3,308,699) - Segment profit before income taxes 601,202 1,653,253 26,413,535 - 28,667,990 Identifiable Assets 1,206,815,231 75,048,428 346,286,603 (110,608,108) 1,517,542,154 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,209,580,801 75,802,446 346,286,603 (110,608,108) 1,521,061,742 For the Six Months Ended June 30, 2019 Revenues from external customers $ 59,112,424 $ 8,902,292 $ 61,924,301 $ - $ 129,939,017 Intersegment revenues 1,975,719 230,273 251,279 (2,457,271) - Segment profit before income taxes 3,304,342 2,208,647 1,543,013 - 7,056,002 Identifiable Assets 929,442,236 87,450,987 202,723,000 (116,673,063) 1,102,943,160 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 932,207,806 88,205,005 202,723,000 (116,673,063) 1,106,462,748 |
8) Fair Value of Financial Inst
8) Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
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 Loans Held for Sale Restricted Assets Cemetery Endowment Care Trust Investments Call and Put Option Derivatives The items shown under Level 3 are valued as follows: 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 Real Estate Held for Investment 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 June 30, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 348,628,792 $ - $ 346,407,400 $ 2,221,392 Equity securities 11,791,511 11,791,511 - - Loans held for sale 356,949,958 - - 356,949,958 Restricted assets (1) 1,041,792 - 1,041,792 - Restricted assets (2) 1,987,801 1,987,801 - - Cemetery perpetual care trust investments (1) 1,003,687 - 1,003,687 - Cemetery perpetual care trust investments (2) 1,668,029 1,668,029 - - Derivatives - loan commitments (3) 12,702,945 - - 12,702,945 Total assets accounted for at fair value on a $ 735,774,515 $ 15,447,341 $ 348,452,879 $ 371,874,295 Liabilities accounted for at fair value on a Derivatives - call options (4) $ (73,451) $ (73,451) $ - $ - Derivatives - put options (4) (49,136) (49,136) - - Derivatives - loan commitments (4) (1,658,581) - - (1,658,581) Total liabilities accounted for at fair value $ (1,781,168) $ (122,587) $ - $ (1,658,581) (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, 2019. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 355,977,820 $ - $ 352,761,438 $ 3,216,382 Equity securities 7,271,165 7,271,165 - - Loans held for sale 213,457,632 - - 213,457,632 Restricted assets (1) 1,008,867 - 1,008,867 - Restricted assets (2) 1,976,480 1,976,480 - - Cemetery perpetual care trust investments (1) 975,673 - 975,673 - Cemetery perpetual care trust investments (2) 1,605,451 1,605,451 - - Derivatives - loan commitments (3) 2,722,580 - - 2,722,580 Total assets accounted for at fair value on a $ 584,995,668 $ 10,853,096 $ 354,745,978 $ 219,396,594 Liabilities accounted for at fair value on a Derivatives - call options (4) $ (62,265) $ (62,265) $ - $ - Derivatives - put options (4) (22,282) (22,282) - - Derivatives - loan commitments (4) (231,347) - - (231,347) Total liabilities accounted for at fair value $ (315,894) $ (84,547) $ - $ (231,347) (1) Fixed maturity securities available for sale (2) Mutual funds and equity securities (3) Included in other assets on the condensed consolidated balance sheets (4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets For Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 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 6/30/2020 Technique Input(s) Value Value Average Loans held for sale $ 356,949,958 Market approach Investor contract pricing as a percentage of unpaid principal balance 99.0% 109.0% 104.0% Derivatives - loan commitments (net) 11,044,365 Market approach Fall-out factor 1.0% 92.0% 80.0% Initial-Value N/A N/A N/A Servicing 0 bps 190 bps 58 bps Fixed maturity securities available for sale 2,221,392 Broker quotes Pricing quotes $ 91.49 $ 119.33 $ 113.29 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019, 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 12/31/2019 Technique Input(s) Value Value Average Loans held for sale $ 213,457,632 Market approach Investor contract pricing as a percentage of unpaid principal balance 98.0% 109.0% 103.0% Derivatives - loan commitments (net) 2,491,233 Market approach Fall-out factor 1.0% 92.0% 81.0% Initial-Value N/A N/A N/A Servicing 0 bps 318 bps 79 bps Fixed maturity securities available for sale 3,216,382 Broker quotes Pricing quotes $ 95.02 $ 115.80 $ 107.98 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 - 2,105,048,030 - Sales, maturities and paydowns - (2,017,976,791) (1,020,800) Transfer to mortgage loans held for investment - (8,933,676) - Total gains (losses): Included in earnings 8,553,132 (1) 65,354,763 (1) 1,672 (2) Included in other comprehensive income - - 24,138 Balance - June 30, 2020 $ 11,044,365 $ 356,949,958 $ 2,221,392 (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 Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2018 $ 1,591,816 $ 136,210,853 $ - Originations/purchases - 2,606,839,175 - Sales - (2,580,875,055) - Transfer to mortgage loans held for investment - (31,881,851) - Transfer from fixed maturity securities held to maturity - - 3,216,382 Total gains (losses): Included in earnings (1) 899,417 83,164,510 - Balance - December 31, 2019 $ 2,491,233 $ 213,457,632 $ 3,216,382 (1) As a component of mortgage fee 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 June 30, 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 $ 1,995,521 $ - $ - $ 1,995,521 Total assets accounted for at fair value on a nonrecurring basis $ 1,995,521 $ - $ - $ 1,995,521 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, 2019. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 1,302,025 $ - $ - $ 1,302,025 Impaired real estate held for investment 8,375,884 - - 8,375,884 Total assets accounted for at fair value on $ 9,677,909 $ - $ - $ 9,677,909 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 June 30, 2020 and December 31, 2019. 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 June 30, 2020: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 105,466,412 $ - $ - $ 110,991,353 $ 110,991,353 Residential construction 106,386,812 - - 106,386,812 106,386,812 Commercial 48,564,780 - - 48,187,935 48,187,935 Mortgage loans held for investment, net $ 260,418,004 $ - $ - $ 265,566,100 $ 265,566,100 Policy loans 14,450,587 - - 14,450,587 14,450,587 Insurance assignments, net (1) 41,742,986 - - 41,742,986 41,742,986 Restricted assets (2) 3,422,731 - - 3,422,731 3,422,731 Cemetery perpetual care trust investments (2) 524,000 - - 524,000 524,000 Mortgage servicing rights, net 21,695,123 - - 22,921,824 22,921,824 Liabilities Bank and other loans payable $ (347,139,008) $ - $ - $ (347,139,008) $ (347,139,008) Policyholder account balances (3) (44,656,276) - - (41,469,707) (41,469,707) Future policy benefits - annuities (3) (111,726,731) - - (115,708,414) (115,708,414) (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, 2019: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 110,253,678 $ - $ - $ 115,320,638 $ 115,320,638 Residential construction 88,651,967 - - 88,651,967 88,651,967 Commercial 37,788,901 - - 39,289,462 39,289,462 Mortgage loans held for investment, net $ 236,694,546 $ - $ - $ 243,262,067 $ 243,262,067 Policy loans 14,762,805 - - 14,762,805 14,762,805 Insurance assignments, net (1) 39,614,939 - - 39,614,939 39,614,939 Restricted assets (2) 2,275,756 - - 2,289,679 2,289,679 Cemetery perpetual care trust investments (2) 524,000 - - 536,553 536,553 Mortgage servicing rights, net 17,155,529 - - 22,784,571 22,784,571 Liabilities Bank and other loans payable $ (217,572,612) $ - $ - $ (217,572,612) $ (217,572,612) Policyholder account balances (3) (45,154,180) - - (41,828,469) (41,828,469) Future policy benefits - annuities (3) (113,579,830) - - (117,304,614) (117,304,614) (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 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 | 6 Months Ended |
Jun. 30, 2020 | |
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 | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019. Fair Values and Notional Values of Derivative Instruments June 30, 2020 December 31, 2019 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 $839,341,522 $12,702,945 $ 1,658,581 $224,202,514 $2,722,580 $231,347 Call options Other liabilities 3,126,800 - 73,451 1,813,500 - 62,265 Put options Other liabilities 2,755,200 - 49,136 1,573,100 - 22,282 Total $845,223,522 $12,702,945 $ 1,781,168 $227,589,114 $2,722,580 $315,894 The following table shows the gains and losses on derivatives for the periods presented. Net Amount Gain (Loss) Net Amount Gain (Loss) Three Months Ended June 30 Six Months Ended June 30 Derivative Classification 2020 2019 2020 2019 Loan commitments Mortgage fee income $ 5,278,099 $ 603,797 $ 8,553,132 $ 1,536,324 Call and put options Gains on investments and other assets $ 828,205 $ 114,939 $ 90,346 $ 404,967 |
11) Reinsurance, Commitments an
11) Reinsurance, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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, management 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 June 30, 2020 and December 31, 2019, the balances were $4,786,000 and $4,046,000, respectively. As of June 30, 2020, the loan loss reserve includes an estimate of approximately $3,000,000 for remaining losses still to be settled on loans originated between 2004 and 2007. On July 30, 2020, a settlement agreement was executed which covered all potential asserted claims against the population of loans referenced above. Loss reserves are sufficient to cover the settlement expense and the reserves will be reduced by that amount during the third quarter 2020. No additional loss reserves are being held for loans originated between 2004 and 2007. Thus, the Company believes that the final loan loss reserve as of June 30, 2020, represents its best estimate for adequate loss reserves on loans sold. Mortgage Loan Loss Litigation Lehman Brothers Holdings Litigation – Delaware and New York In January 2014, Lehman Brothers Holdings Inc. (“Lehman Holdings”) entered into a settlement with the Federal National Mortgage Association (Fannie Mae) concerning the mortgage loan claims that Fannie Mae had asserted against Lehman Holdings, which were based on alleged breaches of certain representations and warranties by Lehman Holdings in the mortgage loans it had sold to Fannie Mae. Lehman Holdings had acquired these loans from Aurora Bank, FSB, formerly known as Lehman Brothers Bank, FSB, which in turn purchased the loans from residential mortgage loan originators, including SecurityNational Mortgage Company (“SecurityNational Mortgage”). A settlement based on similar circumstances was entered into between Lehman Holdings and the Federal Home Loan Mortgage Corporation (Freddie Mac) in February 2014. Lehman Holdings filed a motion in May 2014 with the U.S. Bankruptcy Court of the Southern District of New York to require the mortgage loan originators, including SecurityNational Mortgage, to engage in non-binding mediations of the alleged indemnification claims against the mortgage loan originators relative to the Fannie Mae and Freddie Mac settlements with Lehman Holdings. The mediation was not successful in resolving any issues between SecurityNational Mortgage and Lehman Holdings. On January 26, 2016, SecurityNational Mortgage filed a declaratory judgment action against Lehman Holdings in the Superior Court for the State of Delaware. In the Delaware action, SecurityNational Mortgage asserted its right to obtain a declaration of rights in that there are allegedly millions of dollars in dispute with Lehman Holdings pertaining to approximately 136 mortgage loans. SecurityNational Mortgage sought a declaratory judgment as to its rights as it contends that it has no liability to Lehman Holdings as a result of Lehman Holdings’ settlements with Fannie Mae and Freddie Mac. Lehman Holdings filed a motion in the Delaware court seeking to stay or dismiss the declaratory judgment action. On August 24, 2016, the Court ruled that it would exercise its discretion to decline jurisdiction over the action and granted Lehman Holdings’ motion to dismiss. On February 3, 2016, Lehman Holdings filed an adversary proceeding against approximately 150 mortgage loan originators, including SecurityNational Mortgage, in the U.S. Bankruptcy Court of the Southern District of New York seeking a declaration of rights similar in nature to the declaration that SecurityNational Mortgage sought in its Delaware lawsuit, and for damages relating to the alleged obligations of the defendants under indemnification provisions of the 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. No response was required to be filed relative to the Complaint or the Amended Complaint dated March 7, 2016. A Case Management Order was entered on November 1, 2016. On December 27, 2016, pursuant to the Case Management Order, Lehman Holdings filed a Second Amended Complaint against SecurityNational Mortgage, which eliminates the declaratory judgment claim but retains a similar claim for damages as in the Complaint. Many of the defendants, including SecurityNational Mortgage, filed a joint motion in the case asserting that the Bankruptcy Court does not have subject matter jurisdiction concerning the matter and that venue is improper. Lehman Holdings’ response memorandum was filed on May 31, 2017 and a reply memorandum of the defendants filing the motion was filed on July 14, 2017. A hearing on the motion was held on June 12, 2018. On August 13, 2018, the Court issued its Memorandum Decision and Order (“Decision”) denying the motion. On August 27, 2018, a number of the defendants, including SecurityNational Mortgage, filed a joint motion with the United States District Court (Case No. 18-mc-00392(VEC)) requesting that the Bankruptcy Court’s Decision be treated as findings of fact and conclusions of law, and for the District Court to review the Decision de novo On September 17, 2018, certain defendants, including SecurityNational Mortgage, also filed a notice of appeal, and thereafter a motion for leave to file an interlocutory appeal as to the Bankruptcy Court’s Decision pertaining to jurisdiction and improper venue as a “protective” appeal should the District Court decide not to treat the Decision as findings of fact and conclusions of law. Separately, certain other defendants also filed a notice of appeal and motion for leave to file an interlocutory appeal with respect to the Bankruptcy Court’s Decision concerning improper venue. Lehman Holdings filed its response on October 22, 2018, and defendants filed a joint reply to Lehman Holdings’ response on November 26, 2018. The motions to file appeals were consolidated before Valerie Caproni, U.S. District Court Judge, Case No. 18-cv-08986 (VEC). Case No. 18-mc-00392 (VEC) was also before Judge Caproni. On May 8, 2019, Judge Caproni issued her Opinion and Order denying the motion for an interlocutory appeal of the bankruptcy court’s ruling relative to jurisdiction and venue. Further, the judge denied the motion for immediate de novo de novo On October 1, 2018, Lehman Holdings filed a motion for leave to file Third Amended Complaints against numerous defendants including SecurityNational Mortgage. In addition to the Fannie Mae and Freddie Mac related loans, the amendments and supplements include additional mortgage loans sold to Lehman Holdings that were packaged for securitization (“RMBS loans”). The RMBS loans had allegedly been sold by defendants to Lehman Bank that, in turn, sold them to Lehman Holdings. The allegations pertaining to the RMBS loans include, e.g., purported breaches of representations and warranties made to the securitization trusts by Lehman Holdings. Lehman Holdings asserts that it made representations and warranties purportedly based in part by representations and warranties made to Lehman Bank by loan originators, including SecurityNational Mortgage. The alleged RMBS loans in dispute with SecurityNational Mortgage allegedly involve millions of dollars pertaining to approximately 577 mortgage loans in addition to the Fannie Mae and Freddie Mac related loans. Lehman Holdings also moved the Court to simultaneously allow alternative dispute resolution procedures to take place including potential mediation. Over objections, at a hearing on October 29, 2018, the Court granted Lehman Holdings’ motion to amend or supplement its complaints adding the RMBS loans, and also to mandate alternative dispute resolution procedures affecting many defendants, including SecurityNational Mortgage. Instead of filing a Third Amended Complaint to include the RMBS loans referenced above, Lehman Holdings filed the matter against SecurityNational Mortgage as a new complaint ("RMBS Complaint") (United States Bankruptcy Court, Southern District of New York, Adversary Proceeding 18-01819) pertaining to the approximately 577 RMBS loans, in addition to the Second Amended Complaint already on file. The RMBS Complaint seeks alleged damages relating to obligations under alleged contractual indemnification provisions in an amount to be determined at trial, interest, costs and expenses incurred by LBHI in enforcing alleged obligations, including attorneys' fees and costs and any expert witness fees incurred in litigation; and such other relief as the Court deems just and proper. In response to a Court order, certain defendants referenced in the Second Amended Complaint and the RMBS Complaints negotiated with Lehman Holdings concerning an amended case management order pertaining to certain case procedures and management for both lawsuits including, but not limited to, timing for filing motions and answering the complaints, and provisions concerning discovery such as document production, taking depositions, and use of experts. At a hearing held on March 7, 2019, the Court considered differences of the parties as to the content of an amended case management order, and thereafter signed an amended case management order dated March 13, 2019. SecurityNational Mortgage filed an answer and amended answer in the Fannie Mae and Freddie Mac case, and in the RMBS case. Discovery is in process. Lehman Holdings sent an Indemnification Alternative Dispute Resolution Notice to SecurityNational Mortgage dated August 1, 2019. SecurityNational Mortgage sent its Statement of Position to Lehman Brothers Holdings dated September 3, 2019 in response to the notice. Thereafter, Lehman Holdings sent its Reply dated October 2, 2019 to SecurityNational Mortgage. On January 9, 2020, SecurityNational Mortgage submitted further information to the mediator. Mediation was set to take place on January 23, 2020 in New York. In view of SecurityNational Mortgage’s motion dated January 15, 2020, Lehman Holdings requested that the mediation be continued. On January 15, 2020, SecurityNational Mortgage filed a motion to dismiss Lehman Holdings’ RMBS action in the Bankruptcy Court for lack of subject matter jurisdiction and standing. It was not filed in the Bankruptcy Court but in the United States District Court for the Southern District of New York. The District Court referred the matter to a magistrate judge for general pretrial, which “includes scheduling, discovery, non-dispositive pretrial motions, and settlement,” as well as for “a Report and Recommendation” as to the pending motion. The final disposition of the motion will be with the District Court judge. Lehman Holdings has asked the District Court to transfer the case to one of two other judges allegedly due to related matters. No action has been taken by the District Court to transfer the case. However, Lehman Holdings filed its response brief to the motion and SecurityNational Mortgage filed its reply so the matter is now fully briefed. On July 10, 2020, the magistrate judge filed a report and recommendation with the District Court judge recommending that SecurityNational Mortgage’s motion to dismiss be denied on the basis that the motion should not be in the District Court, but the Bankruptcy Court. SecurityNational Mortgage filed an objection to the report and recommendation to which Lehman Holdings is entitled to respond. A ruling relative to the issue as to the proper court will be made by the District Court, and if the motion is retained by the District Court, the matter of dismissal for lack of subject matter jurisdiction and standing will be before the District Court. On March 17, 2020, Lehman Holdings filed a motion for partial summary judgment against dozens of defendants asserting that sufficient notice was given defendants concerning the settlement of the RMBS claims so that Lehman Holdings, as an indemnitee, would not have to prove that it (Lehman Holdings) had liability to the RMBS Trustees, but only that its settlement was reasonable and in good faith. Defendants involved filed a response brief that for various reasons Lehman Holdings cannot establish sufficient notice as required by law. Certain defendants, excluding SecurityNational Mortgage, also filed a cross motion to seek an affirmative ruling on the issue of Lehman Holdings’ motion. Thereafter, Lehman Holdings filed a reply brief in support of its motion, and also a response brief to certain defendants’ cross motion. Defendants that filed a cross motion have the opportunity to file a reply brief in support of the cross motion. Even if Lehman Holdings were to prevail on its motion, it does not absolve Lehman Holdings of its burden to prove indemnity liability to the defendants. SecurityNational Mortgage denies any liability to Lehman Holdings and intends to vigorously protect and defend its position. 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, also uses a line of credit with Texas Capital Bank N.A. This agreement with the bank allows SecurityNational Mortgage to borrow up to $100,000,000 for the sole purpose of funding mortgage loans. The agreement charges interest at the 1-Month LIBOR rate plus 3% and matures on September 9, 2020. 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, also uses a line of credit with Comerica Bank. This agreement with the bank allows SecurityNational Mortgage to borrow up to $40,000,000 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, also uses a line of credit with Texas Capital Bank N.A. This agreement with the bank allows EverLEND Mortgage to borrow up to $10,000,000 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, 2020. 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 June 30, 2020, 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 June 30, 2020, the Company’s commitments were approximately $161,213,000 for these loans, of which $108,801,000 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 | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 As of December 31 Amortized cost: Balance before valuation allowance at beginning of year $ 17,155,529 $ 20,016,822 MSR additions resulting from loan sales 9,488,179 4,194,502 Amortization (1) (4,948,585) (7,055,795) Application of valuation allowance to write down MSRs - - Balance before valuation allowance at end of period $ 21,695,123 $ 17,155,529 Valuation allowance for impairment of MSRs: Balance at beginning of year $ - $ - Additions - - Application of valuation allowance to write down MSRs - - Balance at end of period $ - $ - Mortgage servicing rights, net $ 21,695,123 $ 17,155,529 Estimated fair value of MSRs at end of period $ 22,921,824 $ 22,784,571 (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 2020 3,370,190 2021 2,535,104 2022 1,999,989 2023 1,608,753 2024 1,317,529 Thereafter 10,863,558 Total $ 21,695,123 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 Six Months Ended 2020 2019 2020 2019 Contractual servicing fees $ 1,929,565 $ 1,858,599 $ 3,714,509 $ 3,668,013 Late fees 71,704 87,291 169,512 178,890 Total $ 2,001,269 $ 1,945,890 $ 3,884,021 $ 3,846,903 The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented: As of June 30 As of December 31 2019 Servicing UPB $ 3,430,482,161 $ 2,804,139,415 The following key assumptions were used in determining MSR value: Prepayment Average Discount June 30, 2020 18.90 4.57 9.51 December 31, 2019 15.30 5.27 9.51 |
13) Income Taxes
13) Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
13) Income Taxes | 13) Income Taxes The Company’s overall effective tax rate for the three months ended June 30, 2020 and 2019 was 24.4% and 24.7%, respectively, which resulted in a provision for income taxes of $6,636,709 and $1,143,789, respectively. The Company’s overall effective tax rate for the six months ended June 30, 2020 and 2019 was 23.3% and 23.3%, respectively, which resulted in a provision for income taxes of $6,686,494 and $1,645,630, 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 decreased when compared to the prior year period partly due to the Company’s provision for state income taxes. |
14) Revenues From Contracts Wit
14) Revenues From Contracts With Customers | 6 Months Ended |
Jun. 30, 2020 | |
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 (1/1/2020) $ 2,778,879 $ - $ 12,607,978 Closing (6/30/2020) 3,575,456 - 12,930,466 Increase/(decrease) 796,577 - 322,488 Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2019) $ 2,816,225 $ - $ 12,508,625 Closing (12/31/2019) 2,778,879 - 12,607,978 Increase/(decrease) (37,346) - 99,353 (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 June 30, 2020 and 2019 was $880,633 and $889,578, respectively, and for the six months ended June 30, 2020 and 2019 was $1,831,406 and $1,631,098, 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 Six Months 2020 2019 2020 2019 Major goods/service lines At-need $ 3,257,705 $ 3,025,783 $ 6,642,896 $ 5,994,850 Pre-need 1,443,073 974,947 2,515,973 1,684,508 $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 Timing of Revenue Recognition Goods transferred at a point in time $ 3,088,616 $ 2,754,230 $ 6,082,320 $ 5,144,840 Services transferred at a point in time 1,612,162 1,246,500 3,076,549 2,534,518 $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 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 Six Months Ended 2020 2019 2020 2019 Net mortuary and cemetery sales $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 Gains (losses) on investments and other assets 482,383 354,500 (177,740) 853,097 Net investment income 71,647 162,562 276,493 275,371 Other revenues 51,497 25,215 62,379 94,466 Revenues from external customers 5,306,305 4,543,007 9,320,001 8,902,292 |
15) Acquisitions
15) Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
15) Acquisitions | 15) Acquisitions Probst Family Funerals and Cremations and Heber Valley Funeral Home On February 15, 2019, the Company, through its wholly-owned subsidiary, Memorial Mortuary Inc., completed an asset purchase transaction with Probst Family Funerals and Cremations, LLC. (“Probst Family Funerals”) and Heber Valley Funeral Home, Inc. (“Heber Valley Funeral Home”). These funeral homes are both located in Heber Valley, a community situated about 45 miles southeast of Salt Lake City. Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated February 15, 2019, Memorial Mortuary Inc. paid a net purchase price of $3,315,647 for the business and assets of Probst Family Funerals and Heber Valley Funeral Home, subject to a $150,000 holdback. In August 2019, this escrow account was settled and $137,550 was paid to the prior owners. The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Cash $ 53,859 Property and equipment 2,475,526 Receivables 13,620 Goodwill 754,018 Other 21,800 Total assets acquired 3,318,823 Bank and other loans payable (3,176) Total liabilities assumed (3,176) Fair value of net assets acquired/consideration paid $ 3,315,647 Kilpatrick Life Insurance Company On December 13, 2019, the Company, through its wholly owned subsidiary, Security National Life Insurance Company (“Security National Life”) completed a stock purchase transaction with Kilpatrick Life Insurance Company, a Louisiana domiciled life insurance company (“Kilpatrick Life”) and its shareholders, which resulted in the purchase of all the outstanding shares of common stock of Kilpatrick Life. The closing of the transaction was subject to approval by the Louisiana Department of Insurance of the change of control of Kilpatrick Life, which was received on December 12, 2019. Under the terms of the transaction, the total Purchase Price that Security National Life paid for all the shares held by the Kilpatrick shareholders was $23,779,940 subject to a $1,400,000 holdback Kilpatrick Life has been in operation since 1932 and provides life insurance products and services through insurance plans such as permanent and term life insurance, asset protection plans, graded whole life insurance, and annuities. Additionally, it provides insurance services for emergencies and pre-arranged funeral services. Kilpatrick Life is based in Shreveport, Louisiana with additional offices in Jena, Alexandria, Minden, and Arcadia, Louisiana. Kilpatrick Life employs a staff of almost 120 associates in four offices in Louisiana and is licensed to operate in Louisiana, Texas, Arkansas, Oklahoma, and Mississippi with the home office located in Shreveport, LA. It is the mission of Kilpatrick Life to continue providing the utmost service and protection for its policyholders for generations to come. Prior to the stock purchase transaction, Security National life and Kilpatrick Life entered into a coinsurance agreement, effective October 1, 2019. After the effective date, Security National Life, as coinsurer, agreed to be responsible for and was obligated with respect to 100% of the contractual liabilities under the Kilpatrick Life’s life insurance policies in accordance with the terms and conditions of the policies and applicable law. Unless otherwise directed by Security National Life, as coinsurer, Kilpatrick Life continued to administer the policies on behalf of Security National Life, as coinsurer, for the duration of the coinsurance agreement. As part of the coinsurance agreement, effective October 1, 2019, Security National Life acquired the following assets and assumed the following contractual liabilities. Other investments and policy loans $ 9,124,459 Real estate held for investment 2,850,000 Mortgage loans held for investment 200,000 Receivables 131,258 Total assets acquired 12,305,717 Future policy benefits and unpaid claims (165,404,970) Other liabilities and accrued expenses (5,259,341) Total liabilities assumed (170,664,311) Cash received for reinsurance assumed $ 158,358,594 Contemporaneous with the stock purchase transaction, both Kilpatrick Life and Security National Life, as coinsurer, agreed to terminate the coinsurance agreement, to require the recapture of the life insurance policies by Kilpatrick Life and provided notification to the Louisiana Department of Insurance. The final settlement and transfer of the coinsurance trust assets from Security National Life back to Kilpatrick Life occurred shortly thereafter. The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition, on December 13, 2019, are shown in the following table. At the time of acquisition some of these assets and liabilities became intercompany items, and the Company has eliminated them for consolidation. Fixed maturity securities, available for sale $ 22,766,520 Fixed maturity securities, held to maturity 16,436 Mortgage loans held for investment 8,011,660 Real estate held for investment 2,708,557 Other investments 446,655 Accrued investment income 183,527 Total investments 34,133,355 Cash and cash equivalents 6,900,654 Receivables, net 5,407,736 (1) Receivables from reinsurers 168,105,064 (1) Property and equipment, net 1,498,245 Value of business acquired 4,962,831 Deferred taxes 167,344 Other 712,323 Total assets acquired 221,887,552 Future policy benefits and unpaid claims (189,071,407) Accounts payable (283,304) Other liabilities and accrued expenses (7,870,944) Income taxes (881,957) Total liabilities assumed (198,107,612) Fair value of net assets acquired/consideration paid $ 23,779,940 Fair value of net assets acquired/consideration paid, net of cash acquired $ 16,879,286 (1) Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life. |
3) Investments (Tables)
3) Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Table Text Block Supplement [Abstract] | |
Held-to-maturity Securities | The Company’s investments as of June 30, 2020 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2020 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 102,442,154 $ 2,147,334 $ - $ 104,589,488 Obligations of states and political subdivisions 5,878,900 269,394 (2,661) 6,145,633 Corporate securities including public utilities 182,731,042 21,371,660 (2,841,768) 201,260,934 Mortgage-backed securities 35,789,063 1,209,447 (734,173) 36,264,337 Redeemable preferred stock 364,339 21,561 (17,500) 368,400 Total fixed maturity securities available for sale $ 327,205,498 $ 25,019,396 $ (3,596,102) $ 348,628,792 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 12,380,259 $ 1,525,151 $ (2,113,899) $ 11,791,511 Total equity securities at estimated fair value $ 12,380,259 $ 1,525,151 $ (2,113,899) $ 11,791,511 Mortgage loans held for investment at amortized cost: Residential $ 109,304,960 Residential construction 106,890,366 Commercial 49,613,367 Less: Unamortized deferred loan fees, net (1,730,243) Less: Allowance for loan losses (2,443,557) Less: Net discounts (1,216,889) Total mortgage loans held for investment $ 260,418,004 Real estate held for investment - net of accumulated depreciation: Residential $ 19,973,537 Commercial 93,218,885 Total real estate held for investment $ 113,192,422 Real estate held for sale: Residential $ 4,522,020 Commercial 6,076,321 Total real estate held for sale $ 10,598,341 Other investments and policy loans at amortized cost: Policy loans $ 14,450,587 Insurance assignments 43,276,682 Federal Home Loan Bank stock (1) 4,056,600 Other investments 5,450,438 Less: Allowance for doubtful accounts (1,533,696) Total policy loans and other investments $ 65,700,611 Accrued investment income $ 5,008,772 Total investments $ 815,338,453 (1) Includes $874,400 of Membership stock and $3,182,200 of Activity stock due to short-term borrowings. The Company’s investments as of December 31, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 142,740,641 $ 632,185 $ (25,215) $ 143,347,611 Obligations of states and political subdivisions 7,450,366 87,812 (9,026) 7,529,152 Corporate securities including public utilities 156,599,184 16,768,449 (463,413) 172,904,220 Mortgage-backed securities 31,475,280 597,395 (240,177) 31,832,498 Redeemable preferred stock 364,339 - - 364,339 Total fixed maturity securities available for sale $ 338,629,810 $ 18,085,841 $ (737,831) $ 355,977,820 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 6,900,537 $ 1,139,799 $ (769,171) $ 7,271,165 Total equity securities at estimated fair value $ 6,900,537 $ 1,139,799 $ (769,171) $ 7,271,165 Mortgage loans held for investment at amortized cost: Residential $ 113,043,965 Residential construction 89,430,237 Commercial 38,718,220 Less: Unamortized deferred loan fees, net (2,391,567) Less: Allowance for loan losses (1,453,037) Less: Net discounts (653,272) Total mortgage loans held for investment $ 236,694,546 Real estate held for investment - net of accumulated depreciation: Residential $ 12,530,306 Commercial 90,226,640 Total real estate held for investment $ 102,756,946 Real estate held for sale: Residential $ 8,021,306 Commercial 6,076,321 Total real estate held for sale $ 14,097,627 Other investments and policy loans at amortized cost: Policy loans $ 14,762,805 Insurance assignments 41,062,965 Federal Home Loan Bank stock (1) 894,300 Other investments 4,973,225 Less: Allowance for doubtful accounts (1,448,026) Total policy loans and other investments $ 60,245,269 Accrued investment income $ 4,833,232 Total investments $ 781,876,605 (1) Includes $894,300 of Membership stock and $-0- of Activity stock due to short-term borrowings. |
Schedule of Unrealized Loss on Investments | The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At June 30, 2020 Obligations of States and Political Subdivisions $ 2,661 $ 717,466 $ - $ - $ 2,661 $ 717,466 Corporate Securities 1,876,784 22,141,540 964,984 3,039,240 2,841,768 25,180,780 Mortgage and other asset-backed securities 710,364 10,024,319 23,809 504,583 734,173 10,528,902 Redeemable preferred stock 17,500 232,500 - - 17,500 232,500 Total unrealized losses $ 2,607,309 $ 33,115,825 $ 988,793 $ 3,543,823 $ 3,596,102 $ 36,659,648 At December 31, 2019 U.S. Treasury Securities and Obligations of U.S. Government Agencies $ 20,211 $ 30,629,288 $ 5,004 $ 10,000,400 $ 25,215 $ 40,629,688 Obligations of States and Political Subdivisions 9,026 3,062,889 - - 9,026 3,062,889 Corporate Securities 118,746 7,184,311 344,667 3,950,509 463,413 11,134,820 Mortgage and other asset-backed securities 205,470 13,266,443 34,707 502,769 240,177 13,769,212 Total unrealized losses $ 353,453 $ 54,142,931 $ 384,378 $ 14,453,678 $ 737,831 $ 68,596,609 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of fixed maturity securities available for sale, at June 30, 2020, 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 $ 61,039,649 $ 61,451,128 Due in 2-5 years 73,278,818 76,149,038 Due in 5-10 years 82,777,913 88,468,598 Due in more than 10 years 73,955,716 85,927,291 Mortgage-backed securities 35,789,063 36,264,337 Redeemable preferred stock 364,339 368,400 Total $ 327,205,498 $ 348,628,792 |
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 June 30 Six Months Ended June 30 2020 2019 2020 2019 Fixed maturity securities: Gross realized gains $ 55,138 $ 163,038 $ 150,959 $ 248,626 Gross realized losses (12,089) (69,622) (12,089) (105,015) Equity securities: Gains (losses) on securities sold (50,029) 41,088 (107,471) 52,664 Unrealized gains and (losses) on securities held at the end of the period 1,738,059 14,016 (1,023,797) 775,224 Other assets: Gross realized gains 48,736 688,289 505,764 1,793,223 Gross realized losses 458,464 (1,862,702) (487,334) (1,983,954) Total $ 2,238,279 $ (1,025,893) $ (973,968) $ 780,768 |
Schedule of Major categories of net investment income | Major categories of net investment income are as follows: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Fixed maturity securities $ 3,143,072 $ 2,528,689 $ 6,067,786 $ 5,032,554 Equity securities 111,122 74,730 203,164 152,651 Mortgage loans held for investment 5,582,152 4,525,817 11,236,042 8,629,184 Real estate held for investment 2,787,881 2,096,927 5,941,267 4,007,221 Policy loans 257,527 106,905 491,492 195,042 Insurance assignments 4,383,398 3,906,832 8,682,602 8,118,952 Other investments 398 52,130 25,421 106,678 Cash and cash equivalents 22,385 465,959 320,390 964,876 Gross investment income 16,287,935 13,757,989 32,968,164 27,207,158 Investment expenses (3,325,190) (3,217,154) (6,604,920) (6,624,655) Net investment income $ 12,962,745 $ 10,540,835 $ 26,363,244 $ 20,582,503 |
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 June 30 December 31 2019 June 30 December 31 2019 Louisiana $ 5,929,267 $ 6,009,079 125,114 125,114 Mississippi 2,914,989 2,951,478 21,521 21,521 Utah (1) 84,374,629 81,266,083 462,730 462,730 $93,218,885 $ 90,226,640 609,365 609,365 (1) Includes Center53 phase 1 completed in July 2017 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 June 30 December 31 2019 June 30 December 31 2019 Arizona (1) $ 2,500 $ 2,500 - - Kansas 4,800,000 4,800,000 222,679 222,679 Mississippi 318,322 318,322 12,300 12,300 Nevada 655,499 655,499 4,800 4,800 Texas (2) 300,000 300,000 - - $ 6,076,321 $ 6,076,321 239,779 239,779 (1) Undeveloped land (2) 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 June 30 December 31 2019 Florida $ 1,269,577 $ 2,487,723 Nevada 686,124 293,516 Utah (1) 17,731,655 9,462,886 Washington 286,181 286,181 $ 19,973,537 $ 12,530,306 (1) Includes subdivision land developments The following is a summary of the Company’s residential real estate held for sale for the periods presented: Net Ending Balance June 30 December 31 2019 California 421,452 640,452 Florida 1,351,040 1,300,641 Nevada 293,516 - Ohio 10,000 10,000 Utah 2,446,012 5,880,213 Washington - 190,000 $ 4,522,020 $ 8,021,306 |
Real Estate Owned and Occupied by the Company | As of June 30, 2020, 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)(2) Life Insurance Operations 12,274 100% 909 Foisy Street, Alexandria, LA (1)(2) Life Insurance Sales 8,059 100% 812 Sheppard Street, Minden, LA (1)(2) Life Insurance Sales 1,560 100% 1550 N 3rd Street, Jena, LA (1)(2) Life Insurance Sales 1,737 100% (1) Included in property and equipment on the condensed consolidated balance sheets (2) See Note 15 regarding the acquisition of Kilpatrick Life Insurance Company |
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 June 30, 2020 Allowance for credit losses: Beginning balance - January 1, 2020 $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Charge-offs - - - - Provision - 990,520 - 990,520 Ending balance - June 30, 2020 $ 187,129 $ 2,213,226 $ 43,202 $ 2,443,557 Ending balance: individually evaluated for impairment $ - $ 427,069 $ - $ 427,069 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,786,157 $ 43,202 $ 2,016,488 Mortgage loans: Ending balance $ 49,613,367 $ 109,304,960 $ 106,890,366 $ 265,808,693 Ending balance: individually evaluated for impairment $ 1,039,013 $ 7,106,397 $ 1,389,574 $ 9,534,984 Ending balance: collectively evaluated for impairment $ 48,574,354 $ 102,198,563 $ 105,500,792 $ 256,273,709 December 31, 2019 Allowance for credit losses: Beginning balance - January 1, 2019 $ 187,129 $ 1,125,623 $ 35,220 $ 1,347,972 Charge-offs - (32,692) - (32,692) Provision - 129,775 7,982 137,757 Ending balance - December 31, 2019 $ 187,129 $ 1,222,706 $ 43,202 $ 1,453,037 Ending balance: individually evaluated for impairment $ - $ 195,993 $ - $ 195,993 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,026,713 $ 43,202 $ 1,257,044 Mortgage loans: Ending balance $ 38,718,220 $ 113,043,965 $ 89,430,237 $ 241,192,422 Ending balance: individually evaluated for impairment $ 4,488,719 $ 3,752,207 $ 655,000 $ 8,895,926 Ending balance: collectively evaluated for impairment $ 34,229,501 $ 109,291,758 $ 88,775,237 $ 232,296,496 |
Schedule of aging of mortgage loans | The following is a summary of the aging of mortgage loans held for investment for the periods presented: 30-59 Days 60-89 Days Greater Than In Process of Foreclosure (1) Total Current Total Allowance for Unamortized deferred loan fees, net Unamortized discounts, net Net Mortgage June 30, 2020 Commercial $ 2,783,200 $ 371,938 $ 1,039,013 $ - $ 4,194,151 $ 45,419,216 $ 49,613,367 $ (187,129) $ (11,545) $ (849,914) $ 48,564,779 Residential 7,624,435 3,308,995 5,423,083 1,683,314 18,039,827 91,265,133 109,304,960 (2,213,226) (1,258,346) (366,975) 105,466,413 Residential - - 1,389,574 - 1,389,574 105,500,792 106,890,366 (43,202) (460,352) - 106,386,812 Total $ 10,407,635 $ 3,680,933 $ 7,851,670 $ 1,683,314 $23,623,552 $242,185,141 $ 65,808,693 $(2,443,557) $ (1,730,243) $ (1,216,889) $ 260,418,004 December 31, 2019 Commercial $ 1,872,000 $ - $ 4,488,719 $ - $ 6,360,719 $ 32,357,501 $ 38,718,220 $ (187,129) $ (88,918) $ (653,272) $ 37,788,901 Residential 10,609,296 4,085,767 2,100,742 1,651,465 18,447,270 94,596,695 113,043,965 (1,222,706) (1,567,581) - 110,253,678 Residential - - 655,000 - 655,000 88,775,237 89,430,237 (43,202) (735,068) - 88,651,967 Total $ 12,481,296 $ 4,085,767 $ 7,244,461 $ 1,651,465 $25,462,989 $215,729,433 $241,192,422 $(1,453,037) $ (2,391,567) $ (653,272) $236,694,546 (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 June 30, 2020 With no related allowance recorded: Commercial $ 1,039,013 $ 1,039,013 $ - $ 951,866 $ - Residential 4,683,807 4,683,807 - 3,466,388 - Residential construction 1,389,574 1,389,574 - 694,787 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 2,422,590 2,422,590 427,069 2,355,231 - Residential construction - - - - - Total: Commercial $ 1,039,013 $ 1,039,013 $ - $ 951,866 $ - Residential 7,106,397 7,106,397 427,069 5,821,619 - Residential construction 1,389,574 1,389,574 - 694,787 - December 31, 2019 With no related allowance recorded: Commercial $ 4,488,719 $ 4,488,719 $ - $ 1,499,043 $ - Residential 2,254,189 2,254,189 - 3,367,151 - Residential construction 655,000 655,000 - 1,457,278 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,498,018 1,498,018 195,993 665,270 - Residential construction - - - - - Total: Commercial $ 4,488,719 $ 4,488,719 $ - $ 1,499,043 $ - Residential 3,752,207 3,752,207 195,993 4,032,421 - Residential construction 655,000 655,000 - 1,457,278 - |
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 June December June December June December June December Performing $ 48,574,354 $ 34,229,501 $ 102,198,563 $109,291,758 $ 105,500,792 $ 88,775,237 $ 256,273,709 $ 232,296,496 Non-performing 1,039,013 4,488,719 7,106,397 3,752,207 1,389,574 655,000 9,534,984 8,895,926 Total $ 49,613,367 $ 38,718,220 $ 109,304,960 $113,043,965 $ 106,890,366 $ 89,430,237 $ 265,808,693 $ 241,192,422 |
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 June 30 As of December 31 Commercial $ 1,039,013 $ 4,488,719 Residential 7,106,397 3,752,207 Residential construction 1,389,574 655,000 Total $ 9,534,984 $ 8,895,926 |
4) Loans Held For Sale (Tables)
4) Loans Held For Sale (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 As of December 31 2019 Aggregate fair value $ 356,949,958 $ 213,457,632 Unpaid principal balance 344,480,058 206,417,122 Unrealized gain 12,469,900 7,040,510 |
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 June 30 Six Months Ended June 30 2020 2019 2020 2019 Loan fees $ 15,226,536 $ 8,626,163 $ 22,940,750 $ 13,437,482 Interest income 2,601,605 1,690,098 4,282,063 2,904,730 Secondary gains 49,422,815 21,201,216 77,269,683 38,585,201 Change in fair value of loan commitments 5,278,099 603,797 8,553,132 1,536,324 Change in fair value of loans held for sale 2,363,713 977,799 2,742,010 1,216,586 Provision for loan loss reserve (1,524,435) (152,506) (2,137,544) (254,885) Mortgage fee income $ 73,368,333 $ 32,946,567 $ 113,650,094 $ 57,425,438 |
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 June 30 As of December 31 Balance, beginning of period $ 4,046,288 $ 3,604,869 Provision on current loan originations (1) 1,524,435 643,284 Charge-offs, net of recaptured amounts (784,357) (201,865) Balance, end of period $ 4,786,366 $ 4,046,288 (1) Included in mortgage fee income |
5) Stock-based Compensation (Ta
5) Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020, and the changes during the six months ended June 30, 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 29,099 22,544 Granted 77,000 180,000 Exercised (78,803) - Cancelled - - Outstanding at June 30, 2020 1,113,349 $ 4.27 796,676 $ 4.87 As of June 30, 2020: Options exercisable 1,013,955 $ 4.27 561,440 $ 5.11 As of June 30, 2020: Available options for future grant 325,372 266,500 Weighted average contractual term of options outstanding at June 30, 2020 5.97 years 6.18 years Weighted average contractual term of options exercisable at June 30, 2020 5.61 years 5.32 years Aggregated intrinsic value of options outstanding at June 30, 2020 (1) $2,568,502 $1,360,855 Aggregated intrinsic value of options exercisable at June 30, 2020 (1) $2,338,090 $823,712 (1) The Company used a stock price of $6.58 as of June 30, 2020 to derive intrinsic value. A summary of the status of the Company’s stock compensation plans as of June 30, 2019, and the changes during the three months ended June 30, 2019, are presented below: Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2019 1,011,274 $ 4.49 577,280 $ 5.15 Granted 2,000 - Exercised (15,328) - Cancelled - - Outstanding at June 30, 2019 997,946 $ 4.50 577,280 $ 5.15 As of June 30, 2019: Options exercisable 921,895 $ 4.42 530,030 $ 5.14 As of June 30, 2019: Available options for future grant 299,351 146,425 Weighted average contractual term of options outstanding at June 30, 2019 5.65 years 3.46 years Weighted average contractual term of options exercisable at June 30, 2019 5.53 years 2.93 years Aggregated intrinsic value of options outstanding at June 30, 2019 (1) $822,875 $218,010 Aggregated intrinsic value of options exercisable at June 30, 2019 (1) $822,875 $218,010 (1) The Company used a stock price of $5.02 as of June 30, 2019 to derive intrinsic value. |
6) Earnings Per Share (Tables)
6) Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended 2020 2019 2020 2019 Numerator: Net earnings $ 20,557,047 $ 3,480,054 $ 21,981,496 $ 5,410,372 Denominator: Basic weighted-average shares outstanding 18,764,831 18,576,031 18,703,390 18,567,907 Effect of dilutive securities: Employee stock options 418,660 234,245 332,859 239,669 Diluted weighted-average shares outstanding 19,183,491 18,810,276 19,036,249 18,807,576 Basic net earnings per share $1.10 $0.19 $1.18 $0.29 Diluted net earnings per share $1.07 $0.19 $1.15 $0.29 |
7) Business Segments Informatio
7) Business Segments Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Table Text Block Supplement [Abstract] | |
Schedule of Revenues and Expenses by Reportable Segment | 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 Eliminations Consolidated For the Three Months Ended June 30, 2020 Revenues from external customers $ 37,788,593 $ 5,306,305 $ 75,566,844 $ - $ 118,661,742 Intersegment revenues 1,816,185 89,799 190,701 (2,096,685) - Segment profit before income taxes 3,670,369 1,548,452 21,974,935 - 27,193,756 For the Three Months Ended June 30, 2019 Revenues from external customers $ 28,607,056 $ 4,543,007 $ 35,295,119 $ - $ 68,445,182 Intersegment revenues 1,080,347 113,622 124,921 (1,318,890) - Segment profit before income taxes 1,219,001 1,023,782 2,381,060 - 4,623,843 For the Six Months Ended June 30, 2020 Revenues from external customers $ 70,994,355 $ 9,320,001 $ 117,956,335 $ - $ 198,270,691 Intersegment revenues 2,724,353 193,313 391,033 (3,308,699) - Segment profit before income taxes 601,202 1,653,253 26,413,535 - 28,667,990 Identifiable Assets 1,206,815,231 75,048,428 346,286,603 (110,608,108) 1,517,542,154 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 1,209,580,801 75,802,446 346,286,603 (110,608,108) 1,521,061,742 For the Six Months Ended June 30, 2019 Revenues from external customers $ 59,112,424 $ 8,902,292 $ 61,924,301 $ - $ 129,939,017 Intersegment revenues 1,975,719 230,273 251,279 (2,457,271) - Segment profit before income taxes 3,304,342 2,208,647 1,543,013 - 7,056,002 Identifiable Assets 929,442,236 87,450,987 202,723,000 (116,673,063) 1,102,943,160 Goodwill 2,765,570 754,018 - - 3,519,588 Total Assets 932,207,806 88,205,005 202,723,000 (116,673,063) 1,106,462,748 |
8) Fair Value of Financial In_2
8) Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 348,628,792 $ - $ 346,407,400 $ 2,221,392 Equity securities 11,791,511 11,791,511 - - Loans held for sale 356,949,958 - - 356,949,958 Restricted assets (1) 1,041,792 - 1,041,792 - Restricted assets (2) 1,987,801 1,987,801 - - Cemetery perpetual care trust investments (1) 1,003,687 - 1,003,687 - Cemetery perpetual care trust investments (2) 1,668,029 1,668,029 - - Derivatives - loan commitments (3) 12,702,945 - - 12,702,945 Total assets accounted for at fair value on a $ 735,774,515 $ 15,447,341 $ 348,452,879 $ 371,874,295 Liabilities accounted for at fair value on a Derivatives - call options (4) $ (73,451) $ (73,451) $ - $ - Derivatives - put options (4) (49,136) (49,136) - - Derivatives - loan commitments (4) (1,658,581) - - (1,658,581) Total liabilities accounted for at fair value $ (1,781,168) $ (122,587) $ - $ (1,658,581) (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, 2019. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 355,977,820 $ - $ 352,761,438 $ 3,216,382 Equity securities 7,271,165 7,271,165 - - Loans held for sale 213,457,632 - - 213,457,632 Restricted assets (1) 1,008,867 - 1,008,867 - Restricted assets (2) 1,976,480 1,976,480 - - Cemetery perpetual care trust investments (1) 975,673 - 975,673 - Cemetery perpetual care trust investments (2) 1,605,451 1,605,451 - - Derivatives - loan commitments (3) 2,722,580 - - 2,722,580 Total assets accounted for at fair value on a $ 584,995,668 $ 10,853,096 $ 354,745,978 $ 219,396,594 Liabilities accounted for at fair value on a Derivatives - call options (4) $ (62,265) $ (62,265) $ - $ - Derivatives - put options (4) (22,282) (22,282) - - Derivatives - loan commitments (4) (231,347) - - (231,347) Total liabilities accounted for at fair value $ (315,894) $ (84,547) $ - $ (231,347) (1) Fixed maturity securities available for sale (2) Mutual funds and equity securities (3) Included in other assets on the condensed consolidated balance sheets (4) Included in other liabilities and accrued expenses on the condensed 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 June 30, 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 6/30/2020 Technique Input(s) Value Value Average Loans held for sale $ 356,949,958 Market approach Investor contract pricing as a percentage of unpaid principal balance 99.0% 109.0% 104.0% Derivatives - loan commitments (net) 11,044,365 Market approach Fall-out factor 1.0% 92.0% 80.0% Initial-Value N/A N/A N/A Servicing 0 bps 190 bps 58 bps Fixed maturity securities available for sale 2,221,392 Broker quotes Pricing quotes $ 91.49 $ 119.33 $ 113.29 For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019, 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 12/31/2019 Technique Input(s) Value Value Average Loans held for sale $ 213,457,632 Market approach Investor contract pricing as a percentage of unpaid principal balance 98.0% 109.0% 103.0% Derivatives - loan commitments (net) 2,491,233 Market approach Fall-out factor 1.0% 92.0% 81.0% Initial-Value N/A N/A N/A Servicing 0 bps 318 bps 79 bps Fixed maturity securities available for sale 3,216,382 Broker quotes Pricing quotes $ 95.02 $ 115.80 $ 107.98 |
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, 2019 $ 2,491,233 $ 213,457,632 $ 3,216,382 Originations and purchases - 2,105,048,030 - Sales, maturities and paydowns - (2,017,976,791) (1,020,800) Transfer to mortgage loans held for investment - (8,933,676) - Total gains (losses): Included in earnings 8,553,132 (1) 65,354,763 (1) 1,672 (2) Included in other comprehensive income - - 24,138 Balance - June 30, 2020 $ 11,044,365 $ 356,949,958 $ 2,221,392 (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 Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2018 $ 1,591,816 $ 136,210,853 $ - Originations/purchases - 2,606,839,175 - Sales - (2,580,875,055) - Transfer to mortgage loans held for investment - (31,881,851) - Transfer from fixed maturity securities held to maturity - - 3,216,382 Total gains (losses): Included in earnings (1) 899,417 83,164,510 - Balance - December 31, 2019 $ 2,491,233 $ 213,457,632 $ 3,216,382 (1) As a component of mortgage fee 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 June 30, 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 $ 1,995,521 $ - $ - $ 1,995,521 Total assets accounted for at fair value on a nonrecurring basis $ 1,995,521 $ - $ - $ 1,995,521 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, 2019. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 1,302,025 $ - $ - $ 1,302,025 Impaired real estate held for investment 8,375,884 - - 8,375,884 Total assets accounted for at fair value on $ 9,677,909 $ - $ - $ 9,677,909 |
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 June 30, 2020: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 105,466,412 $ - $ - $ 110,991,353 $ 110,991,353 Residential construction 106,386,812 - - 106,386,812 106,386,812 Commercial 48,564,780 - - 48,187,935 48,187,935 Mortgage loans held for investment, net $ 260,418,004 $ - $ - $ 265,566,100 $ 265,566,100 Policy loans 14,450,587 - - 14,450,587 14,450,587 Insurance assignments, net (1) 41,742,986 - - 41,742,986 41,742,986 Restricted assets (2) 3,422,731 - - 3,422,731 3,422,731 Cemetery perpetual care trust investments (2) 524,000 - - 524,000 524,000 Mortgage servicing rights, net 21,695,123 - - 22,921,824 22,921,824 Liabilities Bank and other loans payable $ (347,139,008) $ - $ - $ (347,139,008) $ (347,139,008) Policyholder account balances (3) (44,656,276) - - (41,469,707) (41,469,707) Future policy benefits - annuities (3) (111,726,731) - - (115,708,414) (115,708,414) (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, 2019: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 110,253,678 $ - $ - $ 115,320,638 $ 115,320,638 Residential construction 88,651,967 - - 88,651,967 88,651,967 Commercial 37,788,901 - - 39,289,462 39,289,462 Mortgage loans held for investment, net $ 236,694,546 $ - $ - $ 243,262,067 $ 243,262,067 Policy loans 14,762,805 - - 14,762,805 14,762,805 Insurance assignments, net (1) 39,614,939 - - 39,614,939 39,614,939 Restricted assets (2) 2,275,756 - - 2,289,679 2,289,679 Cemetery perpetual care trust investments (2) 524,000 - - 536,553 536,553 Mortgage servicing rights, net 17,155,529 - - 22,784,571 22,784,571 Liabilities Bank and other loans payable $ (217,572,612) $ - $ - $ (217,572,612) $ (217,572,612) Policyholder account balances (3) (45,154,180) - - (41,828,469) (41,828,469) Future policy benefits - annuities (3) (113,579,830) - - (117,304,614) (117,304,614) (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 |
10) Derivative Instruments (Tab
10) Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019. Fair Values and Notional Values of Derivative Instruments June 30, 2020 December 31, 2019 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 $839,341,522 $12,702,945 $ 1,658,581 $224,202,514 $2,722,580 $231,347 Call options Other liabilities 3,126,800 - 73,451 1,813,500 - 62,265 Put options Other liabilities 2,755,200 - 49,136 1,573,100 - 22,282 Total $845,223,522 $12,702,945 $ 1,781,168 $227,589,114 $2,722,580 $315,894 |
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) Net Amount Gain (Loss) Three Months Ended June 30 Six Months Ended June 30 Derivative Classification 2020 2019 2020 2019 Loan commitments Mortgage fee income $ 5,278,099 $ 603,797 $ 8,553,132 $ 1,536,324 Call and put options Gains on investments and other assets $ 828,205 $ 114,939 $ 90,346 $ 404,967 |
12) Mortgage Servicing Rightss
12) Mortgage Servicing Rightss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30 As of December 31 Amortized cost: Balance before valuation allowance at beginning of year $ 17,155,529 $ 20,016,822 MSR additions resulting from loan sales 9,488,179 4,194,502 Amortization (1) (4,948,585) (7,055,795) Application of valuation allowance to write down MSRs - - Balance before valuation allowance at end of period $ 21,695,123 $ 17,155,529 Valuation allowance for impairment of MSRs: Balance at beginning of year $ - $ - Additions - - Application of valuation allowance to write down MSRs - - Balance at end of period $ - $ - Mortgage servicing rights, net $ 21,695,123 $ 17,155,529 Estimated fair value of MSRs at end of period $ 22,921,824 $ 22,784,571 (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 2020 3,370,190 2021 2,535,104 2022 1,999,989 2023 1,608,753 2024 1,317,529 Thereafter 10,863,558 Total $ 21,695,123 |
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 Six Months Ended 2020 2019 2020 2019 Contractual servicing fees $ 1,929,565 $ 1,858,599 $ 3,714,509 $ 3,668,013 Late fees 71,704 87,291 169,512 178,890 Total $ 2,001,269 $ 1,945,890 $ 3,884,021 $ 3,846,903 |
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 June 30 As of December 31 2019 Servicing UPB $ 3,430,482,161 $ 2,804,139,415 |
Assumptions used in determining MSR value | The following key assumptions were used in determining MSR value: Prepayment Average Discount June 30, 2020 18.90 4.57 9.51 December 31, 2019 15.30 5.27 9.51 |
14) Revenues From Contracts W_2
14) Revenues From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 (1/1/2020) $ 2,778,879 $ - $ 12,607,978 Closing (6/30/2020) 3,575,456 - 12,930,466 Increase/(decrease) 796,577 - 322,488 Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2019) $ 2,816,225 $ - $ 12,508,625 Closing (12/31/2019) 2,778,879 - 12,607,978 Increase/(decrease) (37,346) - 99,353 (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 Six Months 2020 2019 2020 2019 Major goods/service lines At-need $ 3,257,705 $ 3,025,783 $ 6,642,896 $ 5,994,850 Pre-need 1,443,073 974,947 2,515,973 1,684,508 $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 Timing of Revenue Recognition Goods transferred at a point in time $ 3,088,616 $ 2,754,230 $ 6,082,320 $ 5,144,840 Services transferred at a point in time 1,612,162 1,246,500 3,076,549 2,534,518 $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 |
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 Six Months Ended 2020 2019 2020 2019 Net mortuary and cemetery sales $ 4,700,778 $ 4,000,730 $ 9,158,869 $ 7,679,358 Gains (losses) on investments and other assets 482,383 354,500 (177,740) 853,097 Net investment income 71,647 162,562 276,493 275,371 Other revenues 51,497 25,215 62,379 94,466 Revenues from external customers 5,306,305 4,543,007 9,320,001 8,902,292 |
15) Acquisitions (Tables)
15) Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Probst Family Funerals and Cremations and Heber Valley Funeral Home | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Cash $ 53,859 Property and equipment 2,475,526 Receivables 13,620 Goodwill 754,018 Other 21,800 Total assets acquired 3,318,823 Bank and other loans payable (3,176) Total liabilities assumed (3,176) Fair value of net assets acquired/consideration paid $ 3,315,647 |
Kilpatrick | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | As part of the coinsurance agreement, effective October 1, 2019, Security National Life acquired the following assets and assumed the following contractual liabilities. Other investments and policy loans $ 9,124,459 Real estate held for investment 2,850,000 Mortgage loans held for investment 200,000 Receivables 131,258 Total assets acquired 12,305,717 Future policy benefits and unpaid claims (165,404,970) Other liabilities and accrued expenses (5,259,341) Total liabilities assumed (170,664,311) Cash received for reinsurance assumed $ 158,358,594 At the time of acquisition some of these assets and liabilities became intercompany items, and the Company has eliminated them for consolidation. Fixed maturity securities, available for sale $ 22,766,520 Fixed maturity securities, held to maturity 16,436 Mortgage loans held for investment 8,011,660 Real estate held for investment 2,708,557 Other investments 446,655 Accrued investment income 183,527 Total investments 34,133,355 Cash and cash equivalents 6,900,654 Receivables, net 5,407,736 (1) Receivables from reinsurers 168,105,064 (1) Property and equipment, net 1,498,245 Value of business acquired 4,962,831 Deferred taxes 167,344 Other 712,323 Total assets acquired 221,887,552 Future policy benefits and unpaid claims (189,071,407) Accounts payable (283,304) Other liabilities and accrued expenses (7,870,944) Income taxes (881,957) Total liabilities assumed (198,107,612) Fair value of net assets acquired/consideration paid $ 23,779,940 Fair value of net assets acquired/consideration paid, net of cash acquired $ 16,879,286 (1) Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life. |
3) Investments_ Held-to-maturit
3) Investments: Held-to-maturity Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
AmortizedCost | $ 327,205,498 | $ 323,056,426 |
Held to maturity securities, Estimated fair value | 348,628,792 | 329,145,562 |
Mortgage loans on real estate and construction | 260,418,004 | 236,694,546 |
Mortgage loans on real estate and construction, unamortized deferred loan fees, net | (1,730,243) | 2,391,567 |
Mortgage loans on real estate and construction, allowance for losses | (2,443,557) | (1,453,037) |
Mortgage loans on real estate and construction, Discount | (1,216,889) | (653,272) |
Real estate held for investment, net of depreciation | 113,192,422 | 102,756,946 |
Real estate held for sale | 10,598,341 | 14,097,627 |
Policy loans | 14,450,587 | 14,762,805 |
Insurance assignments | 43,276,682 | 41,062,965 |
Federal Home Loan Bank stock | 4,056,600 | 894,300 |
Other investments | 5,450,438 | 4,973,225 |
Allowance for doubtful accounts | (1,533,696) | (1,448,026) |
Total other investments and policy loans | 65,700,611 | 60,245,269 |
Accrued investment income | 5,008,772 | 4,833,232 |
Total investments | 815,338,453 | 781,876,605 |
Total | ||
AmortizedCost | 327,205,498 | 338,629,810 |
Held-to-maturity Securities, Unrecognized Holding Gain | 25,019,396 | 18,085,841 |
Held-to-maturity Securities, Unrecognized Holding Loss | (3,596,102) | (737,831) |
Held to maturity securities, Estimated fair value | 348,628,792 | 355,977,820 |
US Treasury Securities | ||
AmortizedCost | 102,442,154 | 142,740,641 |
Held-to-maturity Securities, Unrecognized Holding Gain | 2,147,334 | 632,185 |
Held-to-maturity Securities, Unrecognized Holding Loss | 0 | (25,215) |
Held to maturity securities, Estimated fair value | 104,589,488 | 143,347,611 |
US States and Political Subdivisions Debt Securities | ||
AmortizedCost | 5,878,900 | 7,450,366 |
Held-to-maturity Securities, Unrecognized Holding Gain | 269,394 | 87,812 |
Held-to-maturity Securities, Unrecognized Holding Loss | (2,661) | (9,026) |
Held to maturity securities, Estimated fair value | 6,145,633 | 7,529,152 |
Corporate Debt Securities | ||
AmortizedCost | 182,731,042 | 156,599,184 |
Held-to-maturity Securities, Unrecognized Holding Gain | 21,371,660 | 16,768,449 |
Held-to-maturity Securities, Unrecognized Holding Loss | (2,841,768) | (463,413) |
Held to maturity securities, Estimated fair value | 201,260,934 | 172,904,220 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
AmortizedCost | 35,789,063 | 31,475,280 |
Held-to-maturity Securities, Unrecognized Holding Gain | 1,209,447 | 597,395 |
Held-to-maturity Securities, Unrecognized Holding Loss | (734,173) | (240,177) |
Held to maturity securities, Estimated fair value | 36,264,337 | 31,832,498 |
Redeemable Preferred Stock | ||
AmortizedCost | 364,339 | 364,339 |
Held-to-maturity Securities, Unrecognized Holding Gain | 21,561 | 0 |
Held-to-maturity Securities, Unrecognized Holding Loss | (17,500) | 0 |
Held to maturity securities, Estimated fair value | 368,400 | 364,339 |
Industrial, miscellaneous and all other | ||
Available-for-sale Securities, Amortized Cost Basis | 12,380,259 | 6,900,537 |
Available-for-sale Securities, Gross Unrealized Gain | 1,525,151 | 1,139,799 |
Available For Sale Securities - Gross Unrealized Losses | (2,113,899) | (769,171) |
Available for Sale Securities - Estimated Fair Value | 11,791,511 | 7,271,165 |
Equity Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 12,380,259 | 6,900,537 |
Available-for-sale Securities, Gross Unrealized Gain | 1,525,151 | 1,139,799 |
Available For Sale Securities - Gross Unrealized Losses | (2,113,899) | (769,171) |
Available for Sale Securities - Estimated Fair Value | 11,791,511 | 7,271,165 |
Residential Mortgage | ||
Mortgage loans on real estate and construction | 109,304,960 | 113,043,965 |
Real estate held for investment, net of depreciation | 19,973,537 | 12,530,306 |
Real estate held for sale | 4,522,020 | 8,021,306 |
Residential construction | ||
Mortgage loans on real estate and construction | 106,890,366 | 89,430,237 |
Commercial | ||
Mortgage loans on real estate and construction | 49,613,367 | 38,718,220 |
Real estate held for investment, net of depreciation | 93,218,885 | 90,226,640 |
Real estate held for sale | $ 6,076,321 | $ 6,076,321 |
3) Investments_ Schedule of Unr
3) Investments: Schedule of Unrealized Loss on Investments (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
US States and Political Subdivisions Debt Securities | ||
Held-to-maturity Securities, Unrecognized Holding Loss | $ 2,661 | $ 9,026 |
Debt Securities, Held-to-maturity, Fair Value | 717,466 | 3,062,889 |
US States and Political Subdivisions Debt Securities | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 2,661 | 9,026 |
Debt Securities, Held-to-maturity, Fair Value | 717,466 | 3,062,889 |
US States and Political Subdivisions Debt Securities | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 |
Corporate Securities | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 2,841,768 | 463,413 |
Debt Securities, Held-to-maturity, Fair Value | 25,180,780 | 11,134,820 |
Corporate Securities | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 1,876,784 | 118,746 |
Debt Securities, Held-to-maturity, Fair Value | 22,141,540 | 7,184,311 |
Corporate Securities | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 964,984 | 344,667 |
Debt Securities, Held-to-maturity, Fair Value | 3,039,240 | 3,950,509 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 734,173 | 240,177 |
Debt Securities, Held-to-maturity, Fair Value | 10,528,902 | 13,769,212 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 710,364 | 205,470 |
Debt Securities, Held-to-maturity, Fair Value | 10,024,319 | 13,266,443 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 23,809 | 34,707 |
Debt Securities, Held-to-maturity, Fair Value | 504,583 | 502,769 |
Redeemable Preferred Stock | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 17,500 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 232,500 | |
Redeemable Preferred Stock | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 17,500 | |
Debt Securities, Held-to-maturity, Fair Value | 232,500 | |
Redeemable Preferred Stock | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | |
Total unrealized losses | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 3,596,102 | 737,831 |
Debt Securities, Held-to-maturity, Fair Value | 36,659,648 | 68,596,609 |
Total unrealized losses | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 2,607,309 | 353,453 |
Debt Securities, Held-to-maturity, Fair Value | 33,115,825 | 54,142,931 |
Total unrealized losses | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 988,793 | 384,378 |
Debt Securities, Held-to-maturity, Fair Value | 3,543,823 | 14,453,678 |
US Treasury Securities [Member] | ||
Held-to-maturity Securities, Unrecognized Holding Loss | $ 0 | 25,215 |
Debt Securities, Held-to-maturity, Fair Value | 40,629,688 | |
US Treasury Securities [Member] | Less Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 20,211 | |
Debt Securities, Held-to-maturity, Fair Value | 30,629,288 | |
US Treasury Securities [Member] | More Than 12 Months | ||
Held-to-maturity Securities, Unrecognized Holding Loss | 5,004 | |
Debt Securities, Held-to-maturity, Fair Value | $ 10,000,400 |
3) Investments (Details)
3) Investments (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Average market value over amortized cost | 91.10% | 98.90% |
3) Investments_ Investments Cla
3) Investments: Investments Classified by Contractual Maturity Date (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 327,205,498 | $ 323,056,426 |
Held to maturity securities, Estimated fair value | 348,628,792 | 329,145,562 |
Due in 1 year | ||
Amortized Cost | 61,039,649 | |
Held to maturity securities, Estimated fair value | 61,451,128 | |
Due in 2-5 years | ||
Amortized Cost | 73,278,818 | |
Held to maturity securities, Estimated fair value | 76,149,038 | |
Due in 5-10 years | ||
Amortized Cost | 82,777,913 | |
Held to maturity securities, Estimated fair value | 88,468,598 | |
Due in more than 10 years | ||
Amortized Cost | 73,955,716 | |
Held to maturity securities, Estimated fair value | 85,927,291 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Amortized Cost | 35,789,063 | 31,475,280 |
Held to maturity securities, Estimated fair value | 36,264,337 | 31,832,498 |
Redeemable Preferred Stock | ||
Amortized Cost | 364,339 | 364,339 |
Held to maturity securities, Estimated fair value | $ 368,400 | $ 364,339 |
3) Investments_ Gain (Loss) on
3) Investments: Gain (Loss) on Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fixed maturity securities held to maturity: | $ 2,238,279 | $ (1,025,893) | $ (973,968) | $ 780,768 |
Equity Securities | ||||
Gains on securities sold | (50,029) | 41,088 | (107,471) | 52,664 |
Unrealized Gains and Losses on securities held at end of period | 1,738,059 | 14,016 | (1,023,797) | 775,224 |
Held-to-maturity Securities {1} | ||||
Gross Realized Gains | 55,138 | 163,038 | 150,959 | 248,626 |
Gross Realized Losses | (12,089) | (69,622) | (12,089) | (105,015) |
Other Assets {1} | ||||
Gross Realized Gains | 48,736 | 688,289 | 505,764 | 1,793,223 |
Gross Realized Losses | $ 458,464 | $ (1,862,702) | $ (487,334) | $ (1,983,954) |
3) Investments_ Net carrying am
3) Investments: Net carrying amount of held to maturity securities (Details) - Held-to-maturity Securities {1} - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Net carrying amount for sales of securities | $ 662,972 | |
Net realized loss related to sales of securities | $ 53,097 | |
Proceeds received from sale of fixed maturity available for sale securities | $ 2,753,331 | |
Gross realized gains | 133,339 | |
Gross realized losses | $ 37 |
3) Investments_ Schedule of Maj
3) Investments: Schedule of Major categories of net investment income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gross investment income | $ 16,287,935 | $ 13,757,989 | $ 32,968,164 | $ 27,207,158 |
Investment Income, Investment Expense | (3,325,190) | (3,217,154) | (6,604,920) | (6,624,655) |
Net investment income | 12,962,745 | 10,540,835 | 26,363,244 | 20,582,503 |
Fixed Maturities | ||||
Gross investment income | 3,143,072 | 2,528,689 | 6,067,786 | 5,032,554 |
Equity Securities | ||||
Gross investment income | 111,122 | 74,730 | 203,164 | 152,651 |
Mortgage Loans Real Estate | ||||
Gross investment income | 5,582,152 | 4,525,817 | 11,236,042 | 8,629,184 |
Real Estate | ||||
Gross investment income | 2,787,881 | 2,096,927 | 5,941,267 | 4,007,221 |
Policy Student and Other Loans | ||||
Gross investment income | 257,527 | 106,905 | 491,492 | 195,042 |
Insurance Assignments | ||||
Gross investment income | 4,383,398 | 3,906,832 | 8,682,602 | 8,118,952 |
Other Investments {1} | ||||
Gross investment income | 398 | 52,130 | 25,421 | 106,678 |
Cash and Cash Equivalents | ||||
Gross investment income | $ 22,385 | $ 465,959 | $ 320,390 | $ 964,876 |
3) Investments_ Net Investment
3) Investments: Net Investment Income - Additional (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Net investment income | $ 12,962,745 | $ 10,540,835 | $ 26,363,244 | $ 20,582,503 | |
Securities on deposit for regulatory authorities | 9,632,398 | 9,632,398 | $ 9,633,818 | ||
Cemeteries And Mortuaries | |||||
Net investment income | $ 140,093 | $ 134,229 | $ 250,732 | $ 220,516 |
3) Investments_ Commercial Real
3) Investments: Commercial Real Estate Held for Investment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Bank and other loans payable | $ 347,139,008 | $ 347,139,008 | $ 217,572,612 | ||
Impairment losses on commercial real estate held for sale | 15,551 | $ 0 | 46,980 | $ 1,867,197 | |
Commercial Real Estate | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Gross | 70,578,000 | 70,578,000 | 87,815,000 | ||
Bank and other loans payable | $ 47,068,000 | $ 47,068,000 | $ 54,917,000 |
3) Investments_ Commercial Re_2
3) Investments: Commercial Real Estate Investment (Details) | Jun. 30, 2020USD ($)ft² | Dec. 31, 2019USD ($)ft² |
Real estate held for investment (net of accumulated depreciation) | $ 113,192,422 | $ 102,756,946 |
Real estate held for sale | 10,598,341 | 14,097,627 |
Commercial Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | $ 93,218,885 | $ 90,226,640 |
Total Square Footage | ft² | 609,365 | 609,365 |
Real estate held for sale | $ 4,522,020 | $ 6,076,321 |
Square Footage | ft² | 239,779 | 239,779 |
Arizona | Commercial Real Estate | ||
Real estate held for sale | $ 2,500 | $ 2,500 |
Square Footage | ft² | 0 | 0 |
Kansas | Commercial Real Estate | ||
Real estate held for sale | $ 4,800,000 | $ 4,800,000 |
Square Footage | ft² | 222,679 | 222,679 |
Nevada | Commercial Real Estate | ||
Real estate held for sale | $ 655,499 | $ 655,499 |
Square Footage | ft² | 4,800 | 4,800 |
Texas | Commercial Real Estate | ||
Real estate held for sale | $ 300,000 | $ 300,000 |
Square Footage | ft² | 0 | 0 |
Louisiana | Commercial Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | $ 5,929,267 | $ 6,009,079 |
Total Square Footage | ft² | 125,114 | 125,114 |
Square Footage | ft² | 0 | |
Mississippi | Commercial Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | $ 2,914,989 | $ 2,951,478 |
Total Square Footage | ft² | 21,521 | 21,521 |
Real estate held for sale | $ 318,322 | $ 318,322 |
Square Footage | ft² | 12,300 | 12,300 |
Utah | Commercial Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | $ 84,374,629 | $ 81,266,083 |
Total Square Footage | ft² | 462,730 | 462,730 |
3) Investments_ Residential Rea
3) Investments: Residential Real Estate Held for Investment (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
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 | $ 7,698,000 | $ 12,434,000 |
3) Investments_ Residential R_2
3) Investments: Residential Real Estate Investment (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Real estate held for investment (net of accumulated depreciation) | $ 113,192,422 | $ 102,756,946 |
Real estate held for sale | 10,598,341 | 14,097,627 |
Residential Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | 19,973,537 | 12,530,306 |
Real estate held for sale | 4,522,020 | 8,021,306 |
California | Residential Real Estate | ||
Real estate held for sale | 421,452 | 640,452 |
Florida | Residential Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | 1,269,577 | 2,487,723 |
Real estate held for sale | 1,351,040 | 1,300,641 |
Nevada | Residential Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | 686,124 | 293,516 |
Real estate held for sale | 293,516 | 0 |
Ohio | Residential Real Estate | ||
Real estate held for sale | 10,000 | 10,000 |
Utah | Residential Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | 17,731,655 | 9,462,886 |
Real estate held for sale | 2,446,012 | 5,880,213 |
Washington | Residential Real Estate | ||
Real estate held for investment (net of accumulated depreciation) | 286,181 | 286,181 |
Real estate held for sale | $ 0 | $ 190,000 |
3) Investments_ Real Estate Own
3) Investments: Real Estate Owned and Occupied by the Company (Details) | Jun. 30, 2020ft² |
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 |
Square Footage Occupied by the Company | 73.00% |
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 |
Square Footage Occupied by the Company | 100.00% |
Mortgage Sales | |
Approximate Square Footage | 8,059 |
Square Footage Occupied by the Company | 100.00% |
Mortgage Sales | |
Approximate Square Footage | 1,560 |
Square Footage Occupied by the Company | 100.00% |
Mortgage Sales | |
Approximate Square Footage | 1,737 |
Square Footage Occupied by the Company | 100.00% |
3) Investments_ Schedule of All
3) Investments: Schedule of Allowance for loan losses as a contra-asset account (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss | $ 1,453,037 | $ 1,347,972 |
Allowance for credit losses, Charge-offs | 0 | (32,692) |
Allowance for Credit Losses, Provision | 990,520 | 137,757 |
Financing Receivable, Allowance for Credit Loss | 2,443,557 | 1,453,037 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 427,069 | 195,993 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,016,488 | 1,257,044 |
Mortgage loans | 265,808,693 | 241,192,422 |
Financing Receivable, Individually Evaluated for Impairment | 9,534,984 | 8,895,926 |
Financing Receivable, Collectively Evaluated for Impairment | 256,273,709 | 232,296,496 |
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 | 49,613,367 | 38,718,220 |
Financing Receivable, Individually Evaluated for Impairment | 1,039,013 | 4,488,719 |
Financing Receivable, Collectively Evaluated for Impairment | 48,574,354 | 34,229,501 |
Residential Mortgage | ||
Financing Receivable, Allowance for Credit Loss | 1,222,706 | 1,125,623 |
Allowance for credit losses, Charge-offs | 0 | (32,692) |
Allowance for Credit Losses, Provision | 990,520 | 129,775 |
Financing Receivable, Allowance for Credit Loss | 2,213,226 | 1,222,706 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 427,069 | 195,993 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,786,157 | 1,026,713 |
Mortgage loans | 109,304,960 | 113,043,965 |
Financing Receivable, Individually Evaluated for Impairment | 7,106,397 | 3,752,207 |
Financing Receivable, Collectively Evaluated for Impairment | 102,198,563 | 109,291,758 |
Residential construction | ||
Financing Receivable, Allowance for Credit Loss | 43,202 | 35,220 |
Allowance for credit losses, Charge-offs | 0 | 0 |
Allowance for Credit Losses, Provision | 0 | 7,982 |
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 | 106,890,366 | 89,430,237 |
Financing Receivable, Individually Evaluated for Impairment | 1,389,574 | 655,000 |
Financing Receivable, Collectively Evaluated for Impairment | $ 105,500,792 | $ 88,775,237 |
3) Investments_ Schedule of agi
3) Investments: Schedule of aging of mortgage loans (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Mortgage Loans during period | $ 65,808,693 | $ 241,192,422 |
Mortgage Loans, Allowance for Loan Losses | (2,443,557) | (1,453,037) |
Mortgage Loans, Unamortized deferred loan fees, net | (1,730,243) | (2,391,567) |
Mortgage Loans, Unamortized discounts, net | (1,216,889) | (653,272) |
Past Due 30 to 59 Days | ||
Mortgage Loans during period | 10,407,635 | 12,481,296 |
Past Due 60 to 89 Days | ||
Mortgage Loans during period | 3,680,933 | 4,085,767 |
Past Due 90 or More Days | ||
Mortgage Loans during period | 7,851,670 | 7,244,461 |
In Foreclosure | ||
Mortgage Loans during period | 1,683,314 | 1,651,465 |
Total Past Due | ||
Mortgage Loans during period | 23,623,552 | 25,462,989 |
Current | ||
Mortgage Loans during period | 242,185,141 | 215,729,433 |
Net Mortgage Loans | ||
Mortgage Loans during period | 260,418,004 | 236,694,546 |
Commercial Loan | ||
Mortgage Loans during period | 49,613,367 | 38,718,220 |
Mortgage Loans, Allowance for Loan Losses | (187,129) | (187,129) |
Mortgage Loans, Unamortized deferred loan fees, net | (11,545) | (88,918) |
Mortgage Loans, Unamortized discounts, net | (849,914) | (653,272) |
Commercial Loan | Past Due 30 to 59 Days | ||
Mortgage Loans during period | 2,783,200 | 1,872,000 |
Commercial Loan | Past Due 60 to 89 Days | ||
Mortgage Loans during period | 371,938 | 0 |
Commercial Loan | Past Due 90 or More Days | ||
Mortgage Loans during period | 1,039,013 | 4,488,719 |
Commercial Loan | In Foreclosure | ||
Mortgage Loans during period | 0 | 0 |
Commercial Loan | Total Past Due | ||
Mortgage Loans during period | 4,194,151 | 6,360,719 |
Commercial Loan | Current | ||
Mortgage Loans during period | 45,419,216 | 32,357,501 |
Commercial Loan | Net Mortgage Loans | ||
Mortgage Loans during period | 48,564,779 | 37,788,901 |
Residential Mortgage | ||
Mortgage Loans during period | 109,304,960 | 113,043,965 |
Mortgage Loans, Allowance for Loan Losses | (2,213,226) | (1,222,706) |
Mortgage Loans, Unamortized deferred loan fees, net | (1,258,346) | (1,567,581) |
Mortgage Loans, Unamortized discounts, net | (366,975) | 0 |
Residential Mortgage | Past Due 30 to 59 Days | ||
Mortgage Loans during period | 7,624,435 | 10,609,296 |
Residential Mortgage | Past Due 60 to 89 Days | ||
Mortgage Loans during period | 3,308,995 | 4,085,767 |
Residential Mortgage | Past Due 90 or More Days | ||
Mortgage Loans during period | 5,423,083 | 2,100,742 |
Residential Mortgage | In Foreclosure | ||
Mortgage Loans during period | 1,683,314 | 1,651,465 |
Residential Mortgage | Total Past Due | ||
Mortgage Loans during period | 18,039,827 | 18,447,270 |
Residential Mortgage | Current | ||
Mortgage Loans during period | 91,265,133 | 94,596,695 |
Residential Mortgage | Net Mortgage Loans | ||
Mortgage Loans during period | 105,466,413 | 110,253,678 |
Residential construction | ||
Mortgage Loans during period | 106,890,366 | 89,430,237 |
Mortgage Loans, Allowance for Loan Losses | (43,202) | (43,202) |
Mortgage Loans, Unamortized deferred loan fees, net | (460,352) | (735,068) |
Mortgage Loans, Unamortized discounts, net | 0 | 0 |
Residential construction | Past Due 30 to 59 Days | ||
Mortgage Loans during period | 1,389,574 | 0 |
Residential construction | Past Due 60 to 89 Days | ||
Mortgage Loans during period | 0 | |
Residential construction | Past Due 90 or More Days | ||
Mortgage Loans during period | 655,000 | |
Residential construction | In Foreclosure | ||
Mortgage Loans during period | 0 | |
Residential construction | Total Past Due | ||
Mortgage Loans during period | 1,389,574 | 655,000 |
Residential construction | Current | ||
Mortgage Loans during period | 105,500,792 | 88,775,237 |
Residential construction | Net Mortgage Loans | ||
Mortgage Loans during period | $ 10,407,635 | $ 88,651,967 |
3) Investments_ Schedule of Imp
3) Investments: Schedule of Impaired Mortgage Loans (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commercial Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1,039,013 | $ 4,488,719 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,039,013 | 4,488,719 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 951,866 | 1,499,043 |
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 | 1,039,013 | 4,488,719 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,039,013 | 4,488,719 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 951,866 | 1,499,043 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential Mortgage | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 4,683,807 | 2,254,189 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 4,683,807 | 2,254,189 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,466,388 | 3,367,151 |
Impaired Financing Receivable, with No Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,422,590 | 1,498,018 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,422,590 | 1,498,018 |
Impaired Financing Receivable, Related Allowance | 427,069 | 195,993 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,355,231 | 665,270 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential Mortgage | Total | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 7,106,397 | 3,752,207 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 7,106,397 | 3,752,207 |
Impaired Financing Receivable, Related Allowance | 427,069 | 195,993 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,821,619 | 4,032,421 |
Impaired Financing Receivable, with Interest Income Recognized | 0 | 0 |
Residential construction | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,389,574 | 655,000 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,389,574 | 655,000 |
Impaired Financing Receivable, with No Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 694,787 | 1,457,278 |
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 | 1,389,574 | 655,000 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,389,574 | 655,000 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 694,787 | 1,457,278 |
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 ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Mortgage loans | $ 265,808,693 | $ 241,192,422 |
Commercial Loan | ||
Mortgage loans | 49,613,367 | 38,718,220 |
Residential Mortgage | ||
Mortgage loans | 109,304,960 | 113,043,965 |
Residential construction | ||
Mortgage loans | 106,890,366 | 89,430,237 |
Performing Financing Receivable | ||
Mortgage loans | 256,273,709 | 232,296,496 |
Performing Financing Receivable | Commercial Loan | ||
Mortgage loans | 48,574,354 | 34,229,501 |
Performing Financing Receivable | Residential Mortgage | ||
Mortgage loans | 102,198,563 | 109,291,758 |
Performing Financing Receivable | Residential construction | ||
Mortgage loans | 105,500,792 | 88,775,237 |
Nonperforming Financing Receivable | ||
Mortgage loans | 9,534,984 | 8,895,926 |
Nonperforming Financing Receivable | Commercial Loan | ||
Mortgage loans | 1,039,013 | 4,488,719 |
Nonperforming Financing Receivable | Residential Mortgage | ||
Mortgage loans | 7,106,397 | 3,752,207 |
Nonperforming Financing Receivable | Residential construction | ||
Mortgage loans | $ 1,389,574 | $ 655,000 |
3) Investments_ Summary of Inte
3) Investments: Summary of Interest not accrued on non-performing mortgage loans (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Interest not accrued on non-performing loans | $ 384,000 | $ 203,000 |
3) Investments_ Schedule of Mor
3) Investments: Schedule of Mortgage loans on a nonaccrual status (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 9,534,984 | $ 8,895,926 |
Commercial | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,039,013 | 4,488,719 |
Residential Mortgage | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 7,106,397 | 3,752,207 |
Residential construction | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 1,389,574 | $ 655,000 |
4) Loans Held For Sale_ Aggrega
4) Loans Held For Sale: Aggregate fair value - Loans Held for Sale (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Aggregate Fair Value - Loans Held For Sale | $ 356,949,958 | $ 213,457,632 |
Aggregate unpaid principal balance - Loans Held for Sale | 344,480,058 | 206,417,122 |
Unrealized gain - Loans Held for Sale | $ 12,469,900 | $ 7,040,510 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Mortgage fee income | $ 73,368,333 | $ 32,946,567 | $ 113,650,094 | $ 57,425,438 |
Loans Held For Sale | ||||
Loan fees | 15,226,536 | 8,626,163 | 22,940,750 | 13,437,482 |
Interest Income | 2,601,605 | 1,690,098 | 4,282,063 | 2,904,730 |
Secondary gains | 49,422,815 | 21,201,216 | 77,269,683 | 38,585,201 |
Change in fair value of loan commitments | 5,278,099 | 603,797 | 8,553,132 | 1,536,324 |
Change in fair value of loans held for sale | 2,363,713 | 977,799 | 2,742,010 | 1,216,586 |
Provision for loan loss reserve | (1,524,435) | (152,506) | (2,137,544) | (254,885) |
Mortgage fee income | $ 73,368,333 | $ 32,946,567 | $ 113,650,094 | $ 57,425,438 |
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 ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Beginning, Loan Loss Reserve | $ 4,046,288 | $ 3,604,869 |
Loan loss reserve, Provisions for losses | 1,524,435 | 643,284 |
Loan loss reserve, Charge-offs | (784,357) | (201,865) |
Ending, Loan Loss Reserve | $ 4,786,366 | $ 4,046,288 |
5) Stock-based Compensation (De
5) Stock-based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Share-based Payment Arrangement, Amount Capitalized | $ 101,520 | $ 65,037 | $ 167,397 | $ 129,741 |
Unrecognized compensation expense related to the options issued in December 2014 | $ 227,269 | 227,269 | ||
Total intrinsic value | $ 191,656 | $ 15,220 |
5) Stock-based Compensation_ Sc
5) Stock-based Compensation: Schedule of stock inventive plan changes (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Class A | ||||
Shares, Outstanding | 1,113,349 | 997,946 | 1,086,053 | 577,280 |
Shares outstanding | $ 4.27 | $ 4.50 | $ 4.41 | $ 5.15 |
Adjustment for effect of stock dividends | 29,099 | |||
Shares Granted | 77,000 | 2,000 | ||
Shares Exercised | (78,803) | (15,328) | ||
Shares Cancelled | 0 | 0 | ||
Options Exercisable | 1,013,955 | 921,895 | ||
Options exercisable | $ 4.27 | $ 4.42 | ||
Available options for future grant | $ 325,372 | $ 299,351 | ||
Weighted average contractual term of options outstanding | 5.97 years | 5.65 years | ||
Weighted average contractual term of options exercisable | 5.61 years | 5.53 years | ||
Aggregated intrinsic value of options outstanding | $ 2,568,502 | $ 822,875 | ||
Aggregated intrinsic value of options exercisable | $ 2,338,090 | $ 822,875 | ||
Common Class C | ||||
Shares, Outstanding | 796,676 | 577,280 | 594,132 | 1,011,274 |
Shares outstanding | $ 4.87 | $ 4.42 | $ 5.36 | $ 4.49 |
Adjustment for effect of stock dividends | 22,544 | |||
Shares Granted | 180,000 | 0 | ||
Shares Exercised | 0 | 0 | ||
Shares Cancelled | 0 | 0 | ||
Options Exercisable | 561,440 | 530,030 | ||
Options exercisable | $ 5.11 | $ 5.14 | ||
Available options for future grant | $ 266,500 | $ 146,425 | ||
Weighted average contractual term of options outstanding | 6.18 years | 3.46 years | ||
Weighted average contractual term of options exercisable | 5.32 years | 2.93 years | ||
Aggregated intrinsic value of options outstanding | $ 1,360,855 | $ 218,010 | ||
Aggregated intrinsic value of options exercisable | $ 823,712 | $ 218,010 |
6) Earnings Per Share_ Schedule
6) Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Net earnings | $ 20,557,047 | $ 3,480,054 | $ 21,981,496 | $ 5,410,372 |
Weighted Average Number of Shares Outstanding, Basic | 18,764,831 | 18,576,031 | 18,703,390 | 18,567,907 |
Employee stock options | $ 418,660 | $ 234,245 | $ 332,859 | $ 239,669 |
Diluted weighted-average shares outstanding | 19,183,491 | 18,810,276 | 19,036,249 | 18,807,576 |
Earnings Per Share, Basic | $ 1.10 | $ 0.19 | $ 1.18 | $ 0.29 |
Earnings Per Share, Diluted | $ 1.07 | $ 0.19 | $ 1.15 | $ 0.29 |
6) Earnings Per Share (Details)
6) Earnings Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 857,227 |
7) Business Segments Informat_2
7) Business Segments Information : Schedule of Revenues and Expenses by Reportable Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue from customers | $ 118,661,742 | $ 68,445,182 | $ 198,270,691 | $ 129,939,017 | |
Segment Reporting Information, Intersegment Revenue | 0 | 0 | 0 | 0 | |
Segment Reporting Information, Income Loss Before Income Taxes | 27,193,756 | 4,623,843 | 28,667,990 | 7,056,002 | |
Identifiable Assets | 1,517,542,154 | 1,102,943,160 | 1,517,542,154 | 1,102,943,160 | |
Goodwill | 3,519,588 | 3,519,588 | 3,519,588 | 3,519,588 | $ 3,519,588 |
Total Assets | 1,521,061,742 | 1,106,462,748 | 1,521,061,742 | 1,106,462,748 | $ 1,334,444,075 |
Life Insurance Product Line | |||||
Revenue from customers | 37,788,593 | 28,607,056 | 70,994,355 | 59,112,424 | |
Segment Reporting Information, Intersegment Revenue | 1,816,185 | 1,080,347 | 2,724,353 | 1,975,719 | |
Segment Reporting Information, Income Loss Before Income Taxes | 3,670,369 | 1,219,001 | 601,202 | 3,304,342 | |
Identifiable Assets | 1,206,815,231 | 929,442,236 | 1,206,815,231 | 929,442,236 | |
Goodwill | 2,765,570 | 2,765,570 | 2,765,570 | 2,765,570 | |
Total Assets | 1,209,580,801 | 932,207,806 | 1,209,580,801 | 932,207,806 | |
Cemetery and Mortuary | |||||
Revenue from customers | 5,306,305 | 4,543,007 | 9,320,001 | 8,902,292 | |
Segment Reporting Information, Intersegment Revenue | 89,799 | 113,622 | 193,313 | 230,273 | |
Segment Reporting Information, Income Loss Before Income Taxes | 1,548,452 | 1,023,782 | 1,653,253 | 2,208,647 | |
Identifiable Assets | 75,048,428 | 87,450,987 | 75,048,428 | 87,450,987 | |
Goodwill | 754,018 | 754,018 | 754,018 | 754,018 | |
Total Assets | 75,802,446 | 88,205,005 | 75,802,446 | 88,205,005 | |
Mortgage | |||||
Revenue from customers | 75,566,844 | 35,295,119 | 117,956,335 | 61,924,301 | |
Segment Reporting Information, Intersegment Revenue | 190,701 | 124,921 | 391,033 | 251,279 | |
Segment Reporting Information, Income Loss Before Income Taxes | 21,974,935 | 2,381,060 | 26,413,535 | 1,543,013 | |
Identifiable Assets | 346,286,603 | 202,723,000 | 346,286,603 | 202,723,000 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total Assets | 346,286,603 | 202,723,000 | 346,286,603 | 202,723,000 | |
Intercompany Eliminations | |||||
Revenue from customers | 0 | 0 | 0 | 0 | |
Segment Reporting Information, Intersegment Revenue | (2,096,685) | (1,318,890) | (3,308,699) | (2,457,271) | |
Segment Reporting Information, Income Loss Before Income Taxes | 0 | 0 | 0 | 0 | |
Identifiable Assets | (110,608,108) | (116,673,063) | (110,608,108) | (116,673,063) | |
Goodwill | 0 | 0 | 0 | 0 | |
Total Assets | $ (110,608,108) | $ (116,673,063) | $ (110,608,108) | $ (116,673,063) |
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 ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Trading Securities, Equity | $ 348,628,792 | $ 355,977,820 |
Available-for-sale Securities | 11,791,511 | 7,271,165 |
Loans Held-for-sale, Fair Value Disclosure | 356,949,958 | 213,457,632 |
Restricted assets of cemeteries and mortuaries | 1,041,792 | 1,008,867 |
Restricted assets of cemeteries and mortuaries | 1,987,801 | 1,976,480 |
Cemetery perpetual care trust investments | 1,003,687 | 975,673 |
Cemetery perpetual care trust investments | 1,668,029 | 1,605,451 |
Derivatives - loan commitments | 12,702,945 | 2,722,580 |
Assets, Fair Value Disclosure, Recurring | 735,774,515 | 584,995,668 |
Derivatives - bank loan interest rate swaps, Call Options | (73,451) | (62,265) |
Derivatives - bank loan interest rate swaps, Put Options | (49,136) | (22,282) |
Derivatives - bank loan interest rate swaps, loan commitments | (1,658,581) | (231,347) |
Obligations, Fair Value Disclosure | (1,781,168) | (315,894) |
Fair Value, Inputs, Level 1 | ||
Trading Securities, Equity | 0 | 0 |
Available-for-sale Securities | 11,791,511 | 7,271,165 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 |
Restricted assets of cemeteries and mortuaries | 0 | 0 |
Restricted assets of cemeteries and mortuaries | 1,987,801 | 1,976,480 |
Cemetery perpetual care trust investments | 0 | 0 |
Cemetery perpetual care trust investments | 1,668,029 | 1,605,451 |
Derivatives - loan commitments | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 15,447,341 | 10,853,096 |
Derivatives - bank loan interest rate swaps, Call Options | (73,451) | (62,265) |
Derivatives - bank loan interest rate swaps, Put Options | (49,136) | (22,282) |
Derivatives - bank loan interest rate swaps, loan commitments | 0 | 0 |
Obligations, Fair Value Disclosure | (122,587) | (84,547) |
Fair Value, Inputs, Level 2 | ||
Trading Securities, Equity | 346,407,400 | 352,761,438 |
Available-for-sale Securities | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 |
Restricted assets of cemeteries and mortuaries | 1,041,792 | 1,008,867 |
Restricted assets of cemeteries and mortuaries | 0 | 0 |
Cemetery perpetual care trust investments | 1,003,687 | 975,673 |
Cemetery perpetual care trust investments | 0 | 0 |
Derivatives - loan commitments | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 348,452,879 | 354,745,978 |
Derivatives - bank loan interest rate swaps, Call Options | 0 | 0 |
Derivatives - bank loan interest rate swaps, Put Options | 0 | 0 |
Derivatives - bank loan interest rate swaps, loan commitments | 0 | 0 |
Obligations, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Trading Securities, Equity | 2,221,392 | 3,216,382 |
Available-for-sale Securities | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 356,949,958 | 213,457,632 |
Restricted assets of cemeteries and mortuaries | 0 | 0 |
Restricted assets of cemeteries and mortuaries | 0 | 0 |
Cemetery perpetual care trust investments | 0 | 0 |
Cemetery perpetual care trust investments | 0 | 0 |
Derivatives - loan commitments | 12,702,945 | 2,722,580 |
Assets, Fair Value Disclosure, Recurring | 371,874,295 | 219,396,594 |
Derivatives - bank loan interest rate swaps, Call Options | 0 | 0 |
Derivatives - bank loan interest rate swaps, Put Options | 0 | 0 |
Derivatives - bank loan interest rate swaps, loan commitments | (1,658,581) | (231,347) |
Obligations, Fair Value Disclosure | $ (1,658,581) | $ (231,347) |
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 ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Loans Held For Sale | ||
Fair Value Balance | $ 356,949,958 | $ 213,457,632 |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs minimum | 99.00% | 98.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs maximum | 109.00% | 109.00% |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average | 104.00% | 103.00% |
Net Derivatives Loan Commitments | ||
Fair Value Balance | $ 11,044,365 | $ 2,491,233 |
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs minimum | 1.00% | 1.00% |
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 | 80.00% | 81.00% |
Fixed maturity securities available for sale | ||
Fair Value Balance | $ 2,221,392 | $ 3,216,382 |
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 ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Net Derivatives Loan Commitments | ||
Fair Value Balance | $ 2,491,233 | $ 1,591,816 |
Originations | 0 | 0 |
Sales | 0 | 0 |
Transfer to mortgage loans held for investment | 0 | 0 |
Transfer from fixed maturity securities held to maturity | 0 | |
Fair Value, Gains (Losses) included in earnings | 8,553,132 | 899,417 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Fair Value Balance | 11,044,365 | 2,491,233 |
Loans Held For Sale | ||
Fair Value Balance | 213,457,632 | 136,210,853 |
Originations | 2,105,048,030 | 2,606,839,175 |
Sales | (2,017,976,791) | (2,580,875,055) |
Transfer to mortgage loans held for investment | (8,933,676) | (31,881,851) |
Transfer from fixed maturity securities held to maturity | 0 | |
Fair Value, Gains (Losses) included in earnings | 65,354,763 | 83,164,510 |
Total gains (losses) included in other comprehensive income | 0 | 0 |
Fair Value Balance | 356,949,958 | 213,457,632 |
Fixed maturity securities available for sale | ||
Fair Value Balance | 3,216,382 | 0 |
Originations | 0 | 0 |
Sales | (1,020,800) | 0 |
Transfer to mortgage loans held for investment | 0 | 0 |
Transfer from fixed maturity securities held to maturity | 3,216,382 | |
Fair Value, Gains (Losses) included in earnings | 1,672 | 0 |
Total gains (losses) included in other comprehensive income | 24,138 | 0 |
Fair Value Balance | $ 2,221,392 | $ 3,216,382 |
8) Fair Value of Financial In_6
8) Fair Value of Financial Instruments: Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Impaired mortgage loans held for investment | $ 1,995,521 | $ 1,302,025 |
Impaired real estate held for investment | 8,375,884 | |
Assets, Fair Value Disclosure, Nonrecurring | 1,995,521 | 9,677,909 |
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 | 1,995,521 | 1,302,025 |
Impaired real estate held for investment | 8,375,884 | |
Assets, Fair Value Disclosure, Nonrecurring | $ 1,995,521 | $ 9,677,909 |
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 ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Residential Mortgage | ||
Carrying Value | $ 105,466,412 | $ 110,253,678 |
Estimated Carrying Value | 110,991,353 | 115,320,638 |
Residential construction | ||
Carrying Value | 106,386,812 | 88,651,967 |
Estimated Carrying Value | 106,386,812 | 88,651,967 |
Commercial Loan | ||
Carrying Value | 48,564,780 | 37,788,901 |
Estimated Carrying Value | 48,187,935 | 39,289,462 |
Mortgage Loans Net | ||
Carrying Value | 260,418,004 | 236,694,546 |
Estimated Carrying Value | 265,566,100 | 243,262,067 |
Policy Loan | ||
Carrying Value | 14,450,587 | 14,762,805 |
Estimated Carrying Value | 14,450,587 | 14,762,805 |
Insurance Assignments | ||
Carrying Value | 41,742,986 | 39,614,939 |
Estimated Carrying Value | 41,742,986 | 39,614,939 |
Restricted Assets 1 | ||
Carrying Value | 3,422,731 | 2,275,756 |
Estimated Carrying Value | 3,422,731 | 2,289,679 |
Cemetery Perpetual Care Trust Investments | ||
Carrying Value | 524,000 | 524,000 |
Estimated Carrying Value | 524,000 | 536,553 |
Mortgage Servicing Rights | ||
Carrying Value | 21,695,123 | 17,155,529 |
Estimated Carrying Value | 22,921,824 | 22,784,571 |
Bank And Other Loans Payable | ||
Carrying Value | (347,139,008) | (217,572,612) |
Estimated Carrying Value | (347,139,008) | (217,572,612) |
Policyholder Account Balances | ||
Carrying Value | (44,656,276) | (45,154,180) |
Estimated Carrying Value | (41,469,707) | (41,828,469) |
Future Policy Benefits Annuities | ||
Carrying Value | (111,726,731) | (113,579,830) |
Estimated Carrying Value | (115,708,414) | (117,304,614) |
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 | 0 |
Fair Value, Inputs, Level 1 | Restricted Assets 1 | ||
Estimated Carrying Value | 0 | 0 |
Fair Value, Inputs, Level 1 | Cemetery Perpetual Care Trust Investments | ||
Estimated Carrying Value | 0 | 0 |
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 | 0 |
Fair Value, Inputs, Level 1 | Future Policy Benefits Annuities | ||
Estimated Carrying Value | 0 | 0 |
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 | 0 |
Fair Value, Inputs, Level 2 | Restricted Assets 1 | ||
Estimated Carrying Value | 0 | 0 |
Fair Value, Inputs, Level 2 | Cemetery Perpetual Care Trust Investments | ||
Estimated Carrying Value | 0 | 0 |
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 | 0 |
Fair Value, Inputs, Level 2 | Policyholder Account Balances | ||
Estimated Carrying Value | 0 | 0 |
Fair Value, Inputs, Level 2 | Future Policy Benefits Annuities | ||
Estimated Carrying Value | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | ||
Estimated Carrying Value | 106,386,812 | 88,651,967 |
Fair Value, Inputs, Level 3 | Residential Mortgage | ||
Estimated Carrying Value | 110,991,353 | 115,320,638 |
Fair Value, Inputs, Level 3 | Commercial Loan | ||
Estimated Carrying Value | 48,187,935 | 39,289,462 |
Fair Value, Inputs, Level 3 | Mortgage Loans Net | ||
Estimated Carrying Value | 265,566,100 | 243,262,067 |
Fair Value, Inputs, Level 3 | Policy Loan | ||
Estimated Carrying Value | 14,450,587 | 14,762,805 |
Fair Value, Inputs, Level 3 | Insurance Assignments | ||
Estimated Carrying Value | 41,742,986 | 39,614,939 |
Fair Value, Inputs, Level 3 | Restricted Assets 1 | ||
Estimated Carrying Value | 3,422,731 | 2,289,679 |
Fair Value, Inputs, Level 3 | Cemetery Perpetual Care Trust Investments | ||
Estimated Carrying Value | 524,000 | 536,553 |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | ||
Estimated Carrying Value | 22,921,824 | 22,784,571 |
Fair Value, Inputs, Level 3 | Bank And Other Loans Payable | ||
Estimated Carrying Value | (347,139,008) | (217,572,612) |
Fair Value, Inputs, Level 3 | Policyholder Account Balances | ||
Estimated Carrying Value | (41,469,707) | (41,828,469) |
Fair Value, Inputs, Level 3 | Future Policy Benefits Annuities | ||
Estimated Carrying Value | $ (115,708,414) | $ (117,304,614) |
10) Derivative Instruments_ Sch
10) Derivative Instruments: Schedule of Derivative Assets at Fair Value (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Loan Commitments | ||
Derivative, Notional Amount | $ 839,341,522 | $ 224,202,514 |
Derivative Asset, Notional Amount | 12,702,945 | 2,722,580 |
Derivative Liability, Notional Amount | 1,658,581 | 231,347 |
Call Options | ||
Derivative, Notional Amount | 3,126,800 | 1,813,500 |
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Liability, Notional Amount | 73,451 | 62,265 |
Put Options | ||
Derivative, Notional Amount | 2,755,200 | 1,573,100 |
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Liability, Notional Amount | 49,136 | 22,282 |
Net Derivatives Loan Commitments | ||
Derivative, Notional Amount | 845,223,522 | 227,589,114 |
Derivative Asset, Notional Amount | 12,702,945 | 2,722,580 |
Derivative Liability, Notional Amount | $ 1,781,168 | $ 315,894 |
10) Derivative Instruments_ S_2
10) Derivative Instruments: Schedule of Gains and Losses on Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Gain (Loss) on Derivatives, Loan Commitments | $ 5,278,099 | $ 603,797 | $ 8,553,132 | $ 1,536,324 |
Gain (Loss) on Derivatives, Call and put options | $ 828,205 | $ 114,939 | $ 90,346 | $ 404,967 |
11) Reinsurance, Commitments _2
11) Reinsurance, Commitments and Contingencies: Mortgage Loan Loss Settlements (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Funds reserved and accrued to settle investor related claims | $ 4,786,000 | $ 4,046,000 |
11) Reinsurance, Commitments _3
11) Reinsurance, Commitments and Contingencies: Other Contingencies and Commitments (Details) | Jun. 30, 2020USD ($) |
Text Block [Abstract] | |
Commitments to fund new residential construction loans | $ 161,213,000 |
Commitments to fund new residential construction loans funded | $ 108,801,000 |
12) Mortgage Servicing Rights_
12) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Balance before valuation allowance at beginning of year | $ 17,155,529 | $ 20,016,822 |
MSRs proceeds from loan sales | 9,488,179 | 4,194,502 |
Amortization | (4,948,585) | (7,055,795) |
Application of valuation allowance to write down MSRs with other than temporary impairment | 0 | 0 |
Balance before valuation allowance at year end | 21,695,123 | 17,155,529 |
Mortgage servicing rights, net | 21,695,123 | 17,155,529 |
Estimated fair value of MSRs at end of period | $ 22,921,824 | $ 22,784,571 |
12) Mortgage Servicing Rights_2
12) Mortgage Servicing Rights: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights (Details) | Jun. 30, 2020USD ($) |
Text Block [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 3,370,190 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,535,104 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,999,989 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,608,753 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,317,529 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 10,863,558 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 21,695,123 |
12) Mortgage Servicing Rights_3
12) Mortgage Servicing Rights: Schedule of Other Revenues (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income | $ 2,001,269 | $ 1,945,890 | $ 3,884,021 | $ 3,846,903 |
Contractual Servicing Fees | ||||
Other Income | 1,929,565 | 1,858,599 | 3,714,509 | 3,668,013 |
Late Fees | ||||
Other Income | $ 71,704 | $ 87,291 | $ 169,512 | $ 178,890 |
12) Mortgage Servicing Rights_4
12) Mortgage Servicing Rights: Summary of Unpaid Principal Balances of the Servicing Portfolio (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Servicing Unpaid Principal Balance | $ 3,430,482,161 | $ 2,804,139,415 |
12) Mortgage Servicing Rights_5
12) Mortgage Servicing Rights: Assumptions used in determining MSR value (Details) - Decimal | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Prepayment Speeds | 18.9 | 15.30 |
Average Life in Years of MSR | 4 years 6 months 25 days | 5 years 3 months 8 days |
Discount Rate | 9.51 | 9.51 |
13) Income Taxes (Details)
13) Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.40% | 24.70% | 23.30% | 23.30% |
Provision for income taxes | $ 6,636,709 | $ 1,143,789 | $ 6,686,494 | $ 1,645,630 |
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 ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables | $ 10,208,989 | $ 9,236,330 | |
Deferred pre-need cemetery and mortuary contract revenues | 12,930,466 | 12,607,978 | |
Receivables | |||
Receivables | 796,577 | 2,778,879 | $ 2,816,225 |
Increase (Decrease) in Accounts Receivable | 3,575,456 | (37,346) | |
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 | 322,488 | 12,607,978 | $ 12,508,625 |
Increase (Decrease) in Deferred Revenue | $ 12,930,466 | $ 99,353 |
14) Revenues From Contracts W_4
14) Revenues From Contracts With Customers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Text Block [Abstract] | ||||
Revenue recognized included in the opening contract liability | $ 880,633 | $ 889,578 | $ 1,831,406 | $ 1,631,098 |
14) Revenues From Contracts W_5
14) Revenues From Contracts With Customers: Revenues of the Cemetery and Mortuary Contracts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net mortuary and cemetery sales | $ 4,700,778 | $ 4,000,730 | $ 9,158,869 | $ 7,679,358 |
Major Goods Or Services Lines, at Need | ||||
Net mortuary and cemetery sales | 3,257,705 | 3,025,783 | 6,642,896 | 5,994,850 |
Major Goods Or Services Lines, Pre Need | ||||
Net mortuary and cemetery sales | 1,443,073 | 974,947 | 2,515,973 | 1,684,508 |
Timing Of Revenue Recognition, Goods Transferred At A Point In Time | ||||
Net mortuary and cemetery sales | 3,088,616 | 2,754,230 | 6,082,320 | 5,144,840 |
Timing Of Revenue Recognition, Services Transferred At A Point In Time | ||||
Net mortuary and cemetery sales | $ 1,612,162 | $ 1,246,500 | $ 3,076,549 | $ 2,534,518 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net mortuary and cemetery sales | $ 4,700,778 | $ 4,000,730 | $ 9,158,869 | $ 7,679,358 |
Gains (losses) on investments and other assets | 2,238,279 | (1,025,893) | (973,968) | 780,768 |
Net investment income | 12,962,745 | 10,540,835 | 26,363,244 | 20,582,503 |
Other Revenues | 2,466,898 | 2,337,725 | 4,856,467 | 4,798,730 |
Cemetery and Mortuary | ||||
Net mortuary and cemetery sales | 4,700,778 | 4,000,730 | 9,158,869 | 7,679,358 |
Gains (losses) on investments and other assets | 482,383 | 354,500 | (177,740) | 853,097 |
Net investment income | 71,647 | 162,562 | 276,493 | 275,371 |
Other Revenues | 51,497 | 25,215 | 62,379 | 94,466 |
Revenues from External Customers | $ 5,306,305 | $ 4,543,007 | $ 9,320,001 | $ 8,902,292 |
15) Acquisitions_ Estimated Fai
15) Acquisitions: Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Coinsurance Agreement | |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other investments and policy loans | $ 9,124,459 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Real estate held for investment | 2,850,000 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Mortgage loans held for investment | 200,000 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Future policy benefits and unpaid claims | (165,404,970) |
Cash received for reinsurance assumed | 158,358,594 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 12,305,717 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (170,664,311) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 131,258 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (5,259,341) |
Probst Family Funerals and Cremations and Heber Valley Funeral Home | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,475,526 |
Fair Value of Net Assets Acquired / Consideration Paid, Net of Cash Acquired | 3,315,647 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 754,018 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 3,318,823 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (3,176) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 53,859 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 13,620 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 21,800 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (3,176) |
Kilpatrick Life Insurance Co | |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Real estate held for investment | 2,708,557 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Mortgage loans held for investment | 8,011,660 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Future policy benefits and unpaid claims | (189,071,407) |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Fixed maturity securities, available for sale | 22,766,520 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Fixed maturity securities, held to maturity | 16,436 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other investments | 446,655 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Accrued investment income | 183,527 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Investments | 34,133,355 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Receivables from reinsurers | 168,105,064 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,498,245 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Value of business acquired | 4,962,831 |
Fair Value of Assets Acquired | 23,779,940 |
Fair Value of Net Assets Acquired / Consideration Paid, Net of Cash Acquired | 16,879,286 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 221,887,552 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (7,870,944) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (198,107,612) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 6,900,654 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 5,407,736 |
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 167,344 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 712,323 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (283,304) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ (881,957) |