Document and Entity Information
Document and Entity Information - $ / shares | Jul. 31, 2019 | Jun. 30, 2020 |
Registrant CIK | 0000038723 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 2-27985 | |
Entity Registrant Name | 1st Franklin Financial Corporation | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-0521233 | |
Entity Address, Address Line One | 135 East Tugalo Street | |
Entity Address, Address Line Two | Post Office Box 880 | |
Entity Address, City or Town | Toccoa | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30577 | |
City Area Code | 706 | |
Local Phone Number | 886-7571 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Voting Common Stock | ||
Entity Listing, Par Value Per Share | $ 100 | |
Entity Common Stock, Shares Outstanding | 1,700 | |
Nonvoting Common Stock | ||
Entity Listing, Par Value Per Share | $ 0 | |
Entity Common Stock, Shares Outstanding | 168,300 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and Cash Equivalents | $ 56,795,213 | $ 51,934,265 | |
Restricted Cash | 5,293,015 | 6,524,315 | |
LOANS: | |||
Direct Cash Loans | 683,492,926 | 737,254,501 | |
Real Estate Loans | 38,980,274 | 37,255,330 | |
Sales Finance Contracts | 106,449,512 | 70,019,005 | |
Loans, Total | 828,922,712 | 844,528,836 | |
Unearned Finance Charges | 117,256,261 | 118,748,137 | |
Unearned Insurance Premiums and Commissions | 51,245,594 | 57,620,339 | |
Allowance for Loan Losses | 58,766,403 | 53,000,000 | |
Net Loans | 601,654,454 | 615,160,360 | |
INVESTMENT SECURITIES: | |||
Available for Sale, at fair value | 212,040,438 | 204,457,522 | |
Held to Maturity, at amortized cost | 379,788 | 380,561 | |
Other Investments and Securities, at Cost | 212,420,226 | 204,838,083 | |
Other Assets | 60,459,781 | 60,722,555 | |
ASSETS, Total | 936,622,689 | 939,179,578 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Senior Debt | 582,182,571 | 591,091,095 | |
Accrued Expenses and Other Liabilities | 57,369,941 | 57,587,343 | |
Subordinated Debt | 28,760,887 | 29,005,024 | |
LIABILITIES, Total | 668,313,399 | 677,683,462 | |
COMMITMENTS AND CONTINGENCIES | [1] | ||
STOCKHOLDERS' EQUITY: | |||
Preferred Stock, Value, Issued | 0 | 0 | |
Accumulated Other Comprehensive Income | 11,931,234 | 9,614,846 | |
Retained Earnings | 256,208,056 | 251,711,270 | |
Stockholders' Equity, Total | 268,309,290 | 261,496,116 | |
LIABILITIES AND STOCKHOLDERS' EQUITY, TOTAL | 936,622,689 | 939,179,578 | |
Voting Common Stock | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock, Value, Issued | 170,000 | 170,000 | |
Nonvoting Common Stock | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock, Value, Issued | $ 0 | $ 0 | |
[1] | Note 6. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position (Unaudited) - Parenthetical - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Preferred Stock, Shares Authorized | 6,000 | 6,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Voting Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Common Stock, Shares Authorized | 2,000 | 2,000 |
Common Stock, Shares, Issued | 1,700 | 1,700 |
Common Stock, Shares, Outstanding | 1,700 | 1,700 |
Nonvoting Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 198,000 | 198,000 |
Common Stock, Shares, Issued | 168,300 | 168,300 |
Common Stock, Shares, Outstanding | 168,300 | 168,300 |
Condensed Consolidated Statem_3
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 | |
Details | ||||
Interest Income | $ 52,463,312 | $ 50,733,368 | $ 108,609,865 | $ 100,429,041 |
Interest Expense | 5,128,758 | 4,730,805 | 10,551,452 | 9,077,311 |
NET INTEREST INCOME | 47,334,554 | 46,002,563 | 98,058,413 | 91,351,730 |
Provision for loan losses | 12,561,600 | 13,965,736 | 30,702,268 | 24,508,305 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 34,772,954 | 32,036,827 | 67,356,145 | 66,843,425 |
NET INSURANCE INCOME | ||||
Premiums and Commissions | 11,936,547 | 11,913,843 | 25,163,344 | 23,824,837 |
Insurance Claims and Expenses | 3,825,274 | 3,068,488 | 7,485,703 | 6,402,549 |
Total Net Insurance Income | 8,111,273 | 8,845,355 | 17,677,641 | 17,422,288 |
OTHER REVENUE | 933,720 | 1,525,405 | 2,104,144 | 2,667,102 |
OTHER OPERATING EXPENSES: | ||||
Personnel Expense | 24,236,205 | 22,839,753 | 47,876,623 | 46,612,332 |
Occupancy Expense | 4,334,687 | 4,479,776 | 8,821,471 | 8,977,083 |
Other Expense | 9,679,126 | 10,326,080 | 22,037,040 | 21,254,147 |
Operating Expenses, Total | 38,250,018 | 37,645,609 | 78,735,134 | 76,843,562 |
INCOME BEFORE INCOME TAXES | 5,567,929 | 4,761,978 | 8,402,796 | 10,089,253 |
Provision for Income Taxes | 702,503 | 901,019 | 1,647,849 | 1,724,003 |
Net Income (Loss) | $ 4,865,426 | $ 3,860,959 | $ 6,754,947 | $ 8,365,250 |
BASIC AND DILUTED EARNINGS PER SHARE | ||||
170,000 Shares Outstanding for All Periods (1,700 voting, 168,300 non-voting) | $ 28.62 | $ 22.71 | $ 39.73 | $ 49.21 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Income (Unaudited) - Parenthetical - shares | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Voting Common Stock | ||||||
Common Stock, Shares, Outstanding | 1,700 | 1,700 | ||||
Nonvoting Common Stock | ||||||
Common Stock, Shares, Outstanding | 168,300 | 168,300 | ||||
Common Stock | ||||||
Shares, Outstanding | 170,000 | 170,000 | 170,000 | 170,000 | 170,000 | 170,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Details | |||||
Net Income (Loss) | $ 4,865,426 | $ 3,860,959 | $ 6,754,947 | $ 8,365,250 | |
Net changes related to available-for-sale securities | |||||
Unrealized gains (losses) during period | 2,334,174 | 3,727,494 | 2,983,539 | 11,178,944 | |
Income tax provision | (485,199) | (776,921) | (657,286) | (2,329,189) | |
Net unrealized (losses) gains | 1,848,975 | 2,950,573 | 2,326,253 | 8,849,755 | |
Reclassification of (gains)/losses to Net Income (Loss) | [1] | 9,865 | 4,290 | 9,865 | 4,290 |
Other Comprehensive Income (Loss) | 1,839,110 | 2,946,283 | 2,316,388 | 8,845,465 | |
Total Comprehensive Income | $ 6,704,536 | $ 6,807,242 | $ 9,071,335 | $ 17,210,715 | |
[1] | (1)Reclassified $12,488 to other operating expenses and $2,623 to provision for income taxes on the Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) during the three- and six-month periods ended June 30, 2020. Reclassified $5,431 to other operating expenses and $1,141 to provision for income taxes on the Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) during the three- and six-month periods ended June 30, 2019. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss | Total | |
Equity Balance, Starting at Dec. 31, 2018 | $ 170,000 | $ 241,082,137 | $ (391,979) | $ 240,860,158 | |
Shares Outstanding, Starting at Dec. 31, 2018 | 170,000 | ||||
Comprehensive Income (Loss): | |||||
Net Income (Loss) | $ 0 | 8,365,250 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | 8,845,465 | 8,845,465 | |
Total Comprehensive Income (Loss) | 0 | 0 | 0 | 17,210,715 | |
Cash Distributions Paid | $ 0 | (842,082) | 0 | (842,082) | |
Shares Outstanding, Ending at Jun. 30, 2019 | 170,000 | ||||
Equity Balance, Ending at Jun. 30, 2019 | $ 170,000 | 248,605,305 | 8,453,486 | 257,228,791 | |
Equity Balance, Starting at Mar. 31, 2019 | $ 170,000 | 245,468,095 | 5,507,203 | 251,145,298 | |
Shares Outstanding, Starting at Mar. 31, 2019 | 170,000 | ||||
Comprehensive Income (Loss): | |||||
Net Income (Loss) | $ 0 | 3,860,959 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | 2,946,283 | 2,946,283 | |
Total Comprehensive Income (Loss) | 0 | 0 | 0 | 6,807,242 | |
Cash Distributions Paid | $ 0 | (723,749) | 0 | (723,749) | |
Shares Outstanding, Ending at Jun. 30, 2019 | 170,000 | ||||
Equity Balance, Ending at Jun. 30, 2019 | $ 170,000 | 248,605,305 | 8,453,486 | 257,228,791 | |
Equity Balance, Starting at Dec. 31, 2019 | $ 170,000 | 251,711,270 | 9,614,846 | 261,496,116 | |
Shares Outstanding, Starting at Dec. 31, 2019 | 170,000 | ||||
Comprehensive Income (Loss): | |||||
Net Income (Loss) | $ 0 | 6,754,947 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | 2,316,388 | 2,316,388 | |
Total Comprehensive Income (Loss) | 0 | (2,158,161) | 0 | (2,158,161) | |
Cash Distributions Paid | 0 | (100,000) | 0 | (100,000) | |
Cumulative Change in Accounting Principal | [1] | $ 0 | 0 | 0 | 9,071,335 |
Shares Outstanding, Ending at Jun. 30, 2020 | 170,000 | ||||
Equity Balance, Ending at Jun. 30, 2020 | $ 170,000 | 256,208,056 | 11,931,234 | 268,309,290 | |
Equity Balance, Starting at Mar. 31, 2020 | $ 170,000 | 251,342,630 | 10,092,124 | 261,604,754 | |
Shares Outstanding, Starting at Mar. 31, 2020 | 170,000 | ||||
Comprehensive Income (Loss): | |||||
Net Income (Loss) | $ 0 | 4,865,426 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | 1,839,110 | 1,839,110 | |
Total Comprehensive Income (Loss) | 0 | 0 | 0 | 6,704,536 | |
Cash Distributions Paid | $ 0 | 0 | 0 | 0 | |
Shares Outstanding, Ending at Jun. 30, 2020 | 170,000 | ||||
Equity Balance, Ending at Jun. 30, 2020 | $ 170,000 | $ 256,208,056 | $ 11,931,234 | $ 268,309,290 | |
[1] | See Note 1. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 6,754,947 | $ 8,365,250 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | ||
Provision for loan losses | 30,702,268 | 24,508,305 |
Depreciation and amortization | 2,449,636 | 2,420,789 |
Provision for (prepaid) deferred income taxes | (209,917) | 101,845 |
Other | (112,613) | 9,010 |
Decrease (increase) in miscellaneous other assets | 505,882 | (1,661,052) |
Decrease in other liablities | (2,038,685) | (5,597,982) |
Net Cash Provided by (Used in) Operating Activities | 38,051,518 | 28,146,165 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Loans originated or purchased | (191,954,686) | (258,275,210) |
Loan liquidations | 172,600,163 | 205,642,070 |
Purchases of marketable debt securities | (7,881,790) | (3,265,479) |
Redemptions of marketable debt securities | 3,355,000 | 3,105,000 |
Fixed asset additions, net | (1,330,021) | (2,330,727) |
Fixed asset proceeds from sales | 42,125 | 28,780 |
Net Cash Provided by (Used in) Investing Activities | (25,169,209) | (55,095,566) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in senior demand notes outstanding | 7,174,786 | 965,988 |
Advances on credit line | 84,231,820 | 93,325,848 |
Payments on credit line | (98,381,820) | (70,656,848) |
Commercial paper issued | 33,819,226 | 47,501,544 |
Commercial paper redeemed | (35,752,536) | (31,681,169) |
Subordinated debt securities issued | 2,689,883 | 3,093,882 |
Subordinated debt securities redeemed | (2,934,020) | (4,844,803) |
Dividends / Distributions | (100,000) | (842,082) |
Net Cash Provided by (Used in) Financing Activities | (9,252,661) | 36,862,360 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,629,648 | 9,912,959 |
CASH AND CASH EQUIVALENTS, beginning | 58,458,580 | 14,025,868 |
CASH AND CASH EQUIVALENTS, ending | 62,088,228 | 23,938,827 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for Interest | 10,682,860 | 8,937,647 |
Income Taxes Paid | 0 | 1,585,000 |
Adoption of Lease Accounting Standard ASU 2016-02 | $ 0 | $ 29,781,213 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 1 - Basis of Presentation | Note 1 Basis of Presentation The accompanying unaudited condensed consolidated financial statements of 1 st In the opinion of Management of the Company, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the Company's consolidated financial position as of June 30, 2020 and December 31, 2019, its consolidated results of operations and comprehensive income for the three- and six-month periods ended June 30, 2020 and 2019 and its consolidated cash flows for the six months ended June 30, 2020 and 2019. While certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, the Company believes that the disclosures herein are adequate to make the information presented not misleading. The Companys financial condition and results of operations as of and for the three- and six-month periods ended June 30, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period. The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities at and as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The computation of earnings per share is self-evident from the accompanying Condensed Consolidated Statements of Income and Retained Earnings (Unaudited). The Company has no dilutive securities outstanding. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported shown in the condensed consolidated statements of cash flows: June 30, 2020 June 30, 2019 Cash and Cash Equivalents $ 56,795,213 $ 18,505,318 Restricted Cash 5,593,015 5,433,509 Total Cash, Cash Equivalents and Restricted Cash $ 62,388,228 $ 23,938,827 Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 (ASC 606), Revenue from Contracts with Customers. Under the guidance, companies are required to recognize revenue when the seller satisfies a performance obligation, which would be when the buyer takes control of the good or service. The Company adopted this guidance using the modified retrospective method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The Company categorizes its primary sources of revenue into three categories: (1) interest related revenues, (2) insurance related revenue and (3) revenue from contracts with customers. · · · Other revenues, as a whole, are immaterial to total revenues. There was no change to previously reported amounts from the cumulative effect of the adoption of ASC 606. During the three months ended June 30, 2020 and 2019, the Company recognized interest related income of $52.5 million and $50.7 million, respectively, insurance related income of $11.9 million and $11.9 million, respectively, and other revenues of $.9 million and $1.5 million, respectively. During the six months ended June 30, 2020 and 2019, the Company recognized interest related income of $108.6 million and $100.4 million, respectively, insurance related income of $25.2 million and $23.8 million, respectively, and other revenues of $2.1 million and $2.7 million, respectively. In February 2016, the FASB issued ASU 2016-02, Leases Topic (842): Leases. This ASU supersedes existing guidance on accounting for leases in Leases (Topic 840). The update requires disclosures regarding key information about leasing arrangements and requires all leases for a leasee to be recognized on the balance sheet as a right-of-use asset and a corresponding lease liability. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize a right-of-use asset or lease liability. The Company adopted the new standard during the first quarter of 2019 using the modified retrospective transition method resulting in the recording of a right-to-use asset of $29.7 million on the balance sheet and a corresponding liability. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. As part of the adoption of the accounting standard, the Company elected to not recognize short-term leases on the condensed consolidated balance sheet. All non-lease components, such as common area maintenance, were excluded. See Note 5. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This ASU amends existing guidance that requires an incurred loss impairment methodology that delays recognition until it is probable a loss has been incurred. The new guidance requires measurement and recognition of an allowance for credit losses that estimates expected credit losses and applies to financial assets measured at amortized cost including financing receivables, as well as net investments in leases recognized by a lessor, off-balance sheet credit exposures and reinsurance recoverables. The ASU is effective for annual and interim periods beginning after December 15, 2019. The Company adopted this guidance as of January 1, 2020 using the modified retrospective approach. Transition to the new ASU was through a cumulative-effect adjustment to beginning retained earnings as of January 1, 2020. The following table illustrates the impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified as a result of changes made to our primary portfolio segments under CECL: January 1, 2020 Assets As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (in 000s) (in 000s) (in 000s) Loans: $ 88,442 $ - $ 88,442 85,252 - 85,252 563,560 - 563,560 37,255 - 37,255 70,019 - 70,019 - 844,528 (844,528) 118,748 118,748 - 57,620 57,620 - 55,158 53,000 2,158 $ 613,002 $ 615,160 $ (2,158) Equity: Retained Earnings $ 249,553 $ 251,711 $ (2,158) There have been no updates to other recent accounting pronouncements described in our 2019 Annual Report and no new pronouncements that Management believes would have a material impact on the Company. |
Note 2 - Allowance for Credit L
Note 2 - Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 2 - Allowance for Credit Losses | Note 2 Allowance for Credit Losses The allowance for credit losses is based on Management's evaluation of the inherent risks and changes in the composition of the Company's loan portfolio. Management estimates and evaluates the allowance for credit losses by utilizing an open pool loss rate method on collectively evaluated loans with similar risk characteristics in pools, whereby a historical loss rate is calculated and applied to the balance of loans outstanding in the portfolio at each reporting date. This historical loss rate is then adjusted by macroeconomic forecast and other qualitative factors, as appropriate, to fully reflect the Companys expected losses in its loan portfolio. The Companys allowance for credit losses recorded in the balance sheet reflects managements best estimate within the range of expected credit losses. The Company calculates an expected credit loss by utilizing a snapshot of each specific loan segment at a point in history and tracing that segments performance until charge-offs were mostly exhausted for that particular segment. Charge-offs in subsequent periods are aggregated to derive an unadjusted lifetime historical charge-off rate by segment. The level of receivables at the balance sheet date is reviewed and adjustments to the allowance for credit losses are made if Management determines increases or decreases in the level of receivables warrants an adjustment. The Company performs a correlation analysis between macroeconomic factors and prior charge-offs for the following macroeconomic factors: Annual Unemployment Rates, Real Gross Domestic Product, Consumer Price Index (CPI), and US National Home Price Index (HPI). To evaluate the overall adequacy of our allowance for credit losses, we consider the level of loan receivables, historical loss trends, loan delinquency trends, bankruptcy trends and overall economic conditions. Such allowance is, in the opinion of Management, sufficiently adequate for expected losses in the current loan portfolio. As the estimates used in determining the loan loss reserve are influenced by outside factors, such as consumer payment patterns and general economic conditions, there is uncertainty inherent in these estimates. Actual results could vary based on future changes in significant assumptions. Management disaggregates the Companys loan portfolio by loan segment when evaluating loan performance and calculating the allowance for credit losses. Although most loans are similar in nature, the Company concluded that based on variations in loss experience (severity and duration) driven by product and customer type it is most relevant to segment the portfolio by loan product consisting of five different segments: live checks, premier loans, other consumer loans, real estate loans, and sales finance contracts. The total segments are monitored for credit losses based on graded contractual delinquency and other economic conditions. The Company classifies delinquent accounts at the end of each month according to the Companys graded delinquency rules which includes the number of installments past due at that time, based on the then-existing terms of the contract. Accounts are classified in delinquency categories of 30-59 days past due, 60-89 days past due, or 90 or more days past due based on the Companys graded delinquency policy. When a loan meets the Companys charge-off policy, the loan is charged off, unless Management directs that it be retained as an active loan. In making this charge off evaluation, Management considers factors such as pending insurance, bankruptcy status and other indicators of collectability. The amount charged off is the unpaid balance less the unearned finance charges and the unearned insurance premiums, if applicable. Management ceases accruing finance charges on loans that meet the Companys non-accrual policy based on grade delinquency rules, generally when two payments remain unpaid on precomputed loans or when an interest-bearing loan is 60 days or more past due. Finance charges are then only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status. Accounts qualify for return to accrual status when the graded delinquency on a precomputed loan is less than two payments and on an interest-bearing loan when it is less than 60 days past due. There were no loans 60 days or more past due and still accruing interest at June 30, 2020 or December 31, 2019. The Companys principal balances on non-accrual loans by loan class as of June 30, 2020 and December 31, 2019 are as follows: Loan Class June 30, 2020 December 31, 2019 Live Check Consumer Loans $ 3,391,920 $ 4,689,601 Premier Consumer Loans 1,830,080 2,587,373 Other Consumer Loans 16,313,638 26,509,178 Real Estate Loans 1,538,823 1,259,471 Sales Finance Contracts 1,523,678 2,301,970 $ 24,598,139 $ 37,347,593 An age analysis of principal balances on past due loans, segregated by loan class, as of June 30, 2020 and December 31, 2019 follows: June 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 1,617,594 $ 749,448 $ 2,374,262 $ 4,741,304 Premier Loans 898,246 336,902 989,993 2,225,141 Other Consumer Loans 10,800,069 4,190,690 14,678,801 29,669,560 Real Estate Loans 453,635 248,478 1,664,238 2,366,351 Sales Finance Contracts 1,484,895 527,619 1,262,224 3,274,738 $ 15,254,439 $ 6,053,137 $ 20,969,518 $ 42,277,094 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 2,089,313 $ 1,576,158 $ 3,079,737 $ 6,745,208 Premier Loans 1,174,364 791,218 1,216,080 3,181,662 Other Consumer Loans 16,309,594 9,251,491 20,675,879 46,236,964 Real Estate Loans 900,373 339,977 1,592,069 2,832,419 Sales Finance Contractss 1,691,694 754,381 1,755,318 4,201,393 $ 22,165,338 $ 12,713,225 $ 28,319,083 $ 63,197,646 In addition to the delinquency rating analysis, the ratio of bankrupt accounts to the total loan portfolio is also used as a credit quality indicator. The ratio of bankrupt accounts outstanding to total principal loan balances outstanding at June 30, 2020 and December 31, 2019 was 1.84% and 2.09%, respectively. The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For consumer and real estate segments, the Company also evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the net balance (principal balance less unearned finance charges and unearned insurance) in consumer and residential loans based on payment activity as of June 30, 2020: Payment Performance Net Balance by Origination Year 2020(1) 2019 2018 2017 2016 Prior Total Net Balance (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Live Checks: $ 43,012 $ 28,370 $ 3,333 $ 461 $ 4 $ 1 $ 75,181 1,556 1,464 173 17 - - 3,210 $ 44,568 $ 29,834 3,506 $ 478 $ 4 $ 1 $ 78,391 Premier Loans: $ 23,104 $ 35,682 $ 10,330 $ 1,592 $ - $ - $ 70,708 154 1,124 376 81 - - 1,735 $ 23,258 $ 36,806 10,706 $ 1,673 $ - $ - $ 72,443 Other Consumer Loans: $ 159,249 $ 184,972 $ 34,119 $ 5,666 $ 1,028 $ 391 $ 385,425 2,227 9,212 2,353 357 95 27 14,271 $ 161,476 $ 194,184 $ 36,472 $ 6,023 $ 1,123 $ 418 $ 399,696 Real Estate Loans: $ 5,758 $ 10,885 $ 7,901 $ 4,557 $ 2,321 $ 3,571 $ 34,991 78 437 384 256 172 287 1,614 $ 5,836 $ 11,322 8,285 $ 4,813 $ 2,493 $ 3,858 $ 36,607 Sales Finance Contracts: $ 42,957 $ 25,242 $ 7,837 $ 1,463 $ 180 $ 57 $ 77,736 358 558 280 82 19 7 1,304 $ 43,315 $ 25,800 8,117 $ 1,545 $ 199 $ 64 $ 79,040 (1) Includes loans originated during the six-months ended June 30, 2020. Due to the composition of the loan portfolio, the Company determines and monitors the allowance for credit losses on a portfolio segment basis. As of June 30, 2020, a historical look back period of five quarters was utilized for live checks; six quarters for other consumer loans, premier loans, and sales finance contracts; and a look back period of five years was utilized for real estate loans. Expected look back periods are determined based on analyzing the history of each segments snapshot at a point in history and tracing performance until charge-offs are mostly exhausted. The Company addresses seasonality primarily through the use of an average in quarterly historical loss rates over a 4-quarter snapshot time span instead of using one specific snapshot quarters historical loss rates. In response to the COVID-19 pandemic, the Company developed a payment modification program for past due accounts. The payment modifications program ran from April 1 st st th The Company implemented a quantitative decision matrix for Sales Finance Contract applications in February 2020. Initial quantitative decisions were inconsistent with historical subjective decisions to extend credit. The quantitative decision matrix has been updated to align with historical decisions. A $0.6 million qualitative adjustment was made to increase the allowance for credit losses based on early performance indicators. Segmentation of the portfolio began with the adoption of ASC 326 on January 1, 2020. The following table provides additional information on our allowance for credit losses based on a collective evaluation. Three Months Ended June 30, 2020 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Allowance for Credit Losses: $ 9,059 $ 4,517 $ 39,446 $ 239 $ 5,713 $ 58,974 1,635 1,524 8,197 5 1,201 12,562 (2,900) (1,424) (11,842) (5) (922) (17,093) 789 105 3,218 1 210 4,323 $ 8,583 $ 4,722 $ 39,019 $ 240 $ 6,202 $ 58,766 Six Months Ended June 30, 2020 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Allowance for Credit Losses: $ - $ - $ - $ - $ - $ 53,000 - - - - - 2,158 $ 8,177 $ 4,121 $ 39,180 $ 169 $ 3,511 $ 55,158 5,395 3,184 17,858 78 4,187 30,702 (6,471) (2,782) (24,951) (12) (1,926) (36,142) 1,482 199 6,932 5 430 9,048 $ 8,583 $ 4,722 $ 39,019 $ 240 $ 6,202 $ 58,766 Three Months Ended Six Months Ended June 30, 2020 June 30,2019 June 30, 2020 June 30, 2019 Allowance for Credit Losses: Beginning Balance $ 58,974,560 $ 43,500,000 $ 53,000,000 $ 43,000,000 - - 2,158,161 - - 12,561,600 13,965,736 30,702,268 24,508,305 (17,093,237) (15,526,988) (36,141,737) (29,726,870) 4,323,480 4,061,252 9,047,711 8,218,565 Ending balance; collectively evaluated for impairment $ 58,766,403 $ 46,000,000 $ 58,766,403 $ 46,000,000 Finance Receivables Ending Balance $ 825,074,569 $ 769,791,457 $ 825,074,569 $ 769,791,457 Troubled Debt Restructurings ("TDRs") represent loans on which the original terms have been modified as a result of the following conditions: (i) the restructuring constitutes a concession and (ii) the borrower is experiencing financial difficulties. Loan modifications by the Company involve payment alterations, interest rate concessions and/or reductions in the amount owed by the borrower. The following table presents a summary of loans that were restructured during the three months ended June 30, 2020. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 326 $ 526,181 $ 510,145 Premier Consumer Loans 70 471,275 450,836 Other Consumer Loans 1,892 7,048,324 6,436,597 Real Estate Loans 15 125,994 125,192 Sales Finance Contracts 137 598,578 565,952 2,440 $ 8,870,352 $ 8,088,722 The following table presents a summary of loans that were restructured during the three months ended June 30, 2019. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 4,286 $ 12,546,322 $ 11,990,277 Real Estate Loans 7 66,178 66,178 Sales Finance Contracts 179 695,639 659,460 4,472 $ 13,308,139 $ 12,715,915 The following table presents a summary of loans that were restructured during the six months ended June 30, 2020. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 1,122 $ 1,826,042 $ 1,773,540 Premier Consumer Loans 233 1,546,354 1,498,776 Other Consumer Loans 5,822 19,844,595 18,474,903 Real Estate Loans 23 234,189 233,387 Sales Finance Contracts 384 1,609,026 1,534,682 7,584 $ 25,060,206 $ 23,515,288 The following table presents a summary of loans that were restructured during the six months ended June 30, 2019. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 8,941 $ 25,191,874 $ 24,170,946 Real Estate Loans 19 326,510 324,687 Sales Finance Contracts 379 1,373,113 1,310,166 9,339 $ 26,891,497 $ 25,805,799 TDRs that occurred during the twelve months ended June 30, 2020 and subsequently defaulted during the three months ended June 30, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 275 $ 380,724 Premier Consumer Loans 38 199,325 Other Consumer Loans 1,065 2,405,262 Real Estate Loans 1 1,832 Sales Finance Contracts 68 155,141 1,447 $ 3,142,284 TDRs that occurred during the twelve months ended June 30, 2019 and subsequently defaulted during the three months ended June 30, 2019 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,902 $ 3,478,965 Real Estate Loans - - Sales Finance Contracts 63 156,739 1,965 $ 3,635,704 TDRs that occurred during the twelve months ended June 30, 2020 and subsequently defaulted during the six months ended June 30, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 665 $ 961,371 Premier Consumer Loans 81 465,502 Other Consumer Loans 2,338 4,913,928 Real Estate Loans 1 1,832 Sales Finance Contracts 149 336,613 3,234 $ 6,679,246 TDRs that occurred during the twelve months ended June 30, 2019 and subsequently defaulted during the six months ended June 30, 2019 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 3,351 $ 5,957,308 Real Estate Loans - - Sales Finance Contracts 132 312,212 3,483 $ 6,269,520 The level of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance of loan losses. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 3 - Investment Securities | Note 3 Investment Securities Debt securities available-for-sale are carried at estimated fair value. Debt securities designated as "Held to Maturity" are carried at amortized cost based on Management's intent and ability to hold such securities to maturity. The amortized cost and estimated fair values of these debt securities were as follows: As of June 30, 2020 As of December 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale $196,852,116 $211,741,506 $192,240,250 $204,012,197 130,316 298,932 130,316 445,325 $196,982,432 $212,040,438 $192,370,566 $204,457,522 Held to Maturity $379,788 $387,161 $380,561 $389,520 Gross unrealized losses on investment securities totaled $25,550 and $24,092 at June 30, 2020 and December 31, 2019, respectively. The following table provides an analysis of investment securities in an unrealized loss position for which other-than-temporary impairments have not been recognized as of June 30, 2020 and December 31, 2019: Less than 12 Months 12 Months or Longer Total June 30, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: $ 3,933,780 $ (15,092) $ 979,134 $ (10,458) $ 4,912,914 $ (25,550) Less than 12 Months 12 Months or Longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: $ 1,206,656 $ (18,941) $ 986,642 $ (5,151) $ 2,193,298 $ (24,092) The previous two tables represent 3 and 2 investments held by the Company at June 30, 2020 and December 31, 2019, respectively, the majority of which are rated A or higher by Moodys and/or Standard & Poors. The unrealized losses on the Companys investments listed in the above table were primarily the result of interest rate and market fluctuations. Based on the credit ratings of these investments, along with the consideration of whether the Company has the intent to sell or will be more likely than not required to sell the applicable investment before recovery of amortized cost basis, the Company does not consider the impairment of any of these investments to be other-than-temporary at June 30, 2020 or December 31, 2019. The Companys insurance subsidiaries internally designate certain investments as restricted to cover their policy reserves and loss reserves. Funds are held in separate trusts for the benefit of each insurance subsidiary at U.S. Bank National Association ("US Bank"). US Bank serves as trustee under trust agreements with the Company's property and casualty insurance company subsidiary (Frandisco P&C), as grantor, and American Bankers Insurance Company of Florida, as beneficiary. At June 30, 2020, these trusts held $41.3 million in available-for-sale investment securities at market value. US Bank also serves as trustee under trust agreements with the Company's life insurance company subsidiary (Frandisco Life), as grantor, and American Bankers Life Assurance Company, as beneficiary. At June 30, 2020, these trusts held $19.9 million in available-for-sale investment securities at market value and $.4 million in held-to-maturity investment securities at amortized cost. The amounts required to be held in each trust change as required reserves change. All earnings on assets in the trusts are remitted to the Company's insurance subsidiaries. |
Note 4 - Fair Value
Note 4 - Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 4 - Fair Value | Note 4 Fair Value Under ASC 820, fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs used to determine the fair value of an asset or liability, with the highest priority given to Level 1, as these are the most transparent or reliable. A financial instruments level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurements. The following methods and assumptions are used by the Company in estimating fair values of its financial instruments: Cash and Cash Equivalents: Cash includes cash on hand and with banks. Cash equivalents are short-term highly liquid investments with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value due to the relatively short period of time between origination of the instruments and their expected realization. The estimate of the fair value of cash and cash equivalents is classified as a Level 1 financial asset. Loans: The carrying value of the Companys direct cash loans and sales finance contracts approximates the fair value since the estimated life, assuming prepayments, is short-term in nature. The fair value of the Companys real estate loans approximates the carrying value since the interest rate charged by the Company approximates market rate. The estimate of fair value of loans is classified as a Level 3 financial asset. Marketable Debt Securities: The Company values Level 2 securities using various observable market inputs obtained from a pricing service. The pricing service prepares evaluations of fair value for our Level 2 securities using proprietary valuation models based on techniques such as multi-dimensional relational models, and series of matrices that use observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company uses the following observable market inputs (standard inputs), listed in the approximate order of priority, in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. State, municipalities and political subdivisions securities are priced by our pricing service using material event notices and new issue data inputs in addition to the standard inputs. See additional information, including the table below, regarding fair value under ASC 820, and the fair value measurement of available-for-sale marketable debt securities. Corporate Securities: The Company estimates the fair value of corporate securities with readily determinable fair values based on quoted prices observed in active markets; therefore, these investments are classified as Level 1. Senior Debt Securities: The carrying value of the Companys senior debt securities approximates fair value due to the relatively short period of time between the origination of the instruments and their expected repayment. The estimate of fair value of senior debt securities is classified as a Level 2 financial liability. Subordinated Debt Securities: The carrying value of the Companys variable rate subordinated debt securities approximates fair value due to the re-pricing frequency of the securities. The estimate of fair value of subordinated debt securities is classified as a Level 2 financial liability. The Company is responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. The Company performs due diligence to understand the inputs and how the data was calculated or derived. The Company employs a market approach in the valuation of its obligations of states, political subdivisions and municipal revenue bonds that are available-for-sale. These investments are valued on the basis of current market quotations provided by independent pricing services selected by Management based on the advice of an investment manager. To determine the value of a particular investment, these independent pricing services may use certain information with respect to market transactions in such investment or comparable investments, various relationships observed in the market between investments, quotations from dealers, and pricing metrics and calculated yield measures based on valuation methodologies commonly employed in the market for such investments. Quoted prices are subject to our internal price verification procedures. We validate prices received using a variety of methods including, but not limited, to comparison to other pricing services or corroboration of pricing by reference to independent market data such as a secondary broker. There was no change in this methodology during any period reported. Assets measured at fair value as of June 30, 2020 and December 31, 2019 were available-for-sale investment securities which are summarized below: Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs Description 2020 (Level1) (Level2) (Level3) Corporate securities $ 298,932 $ 298,932 $ -- $ -- Obligations of states and political subdivisions 211,741,506 -- 211,741,506 -- Total $ 212,040,438 $ 298,932 $ 211,741,506 $ -- Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2019 (Level1) (Level2) (Level3) Corporate securities $ 445,325 $ 445,325 $ -- $ -- Obligations of states and political subdivisions 204,012,195 -- 204,012,195 -- Total $ 204,457,520 $ 445,325 $ 204,012,195 $ -- |
Note 5 - Leases
Note 5 - Leases | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 5 - Leases | Note 5 Leases The Company is obligated under operating leases for its branch loan offices and home office locations. The operating leases are recorded as operating lease right-of-use (ROU) assets and operating lease liabilities. The ROU asset is included in other assets and the corresponding liability is included in accounts payable and accrued expenses on the Companys condensed consolidated statement of financial position. ROU assets represent the Companys right to use an underlying asset during the lease term and the operating lease liabilities represent the Companys obligations for lease payments in accordance with the lease. Recognition of ROU assets and liabilities are recognized at the lease commitment based on the present value of the remaining lease payments using a discount rate that represents the Companys incremental borrowing rate at the lease commitment date or adoption date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy expense in the condensed consolidated statement of income. Remaining lease terms range from 1 to 10 years. The Companys leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments made in applying the requirements of Topic 842. Operating leases with a term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. At June 30, 2020 the operating lease ROU assets and liabilities were $32.6 million and $33.0 million, respectively. The table below summarizes our lease expense and other information related to the Companys operating leases with respect to FASB ASC 842: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Operating lease expense $ 1,800,009 $ 3,587,594 Cash paid for amounts included in the measurement of lease liabilities: 1,757,246 3,513,126 Weighted-average remaining lease term operating leases (in years) 7.04 Weighted-average discount rate operating leases 5.33 % Lease maturity schedule as of June 30, 2020: Amount Remainder of 2020 $ 3,488,489 6,573,797 5,968,827 5,178,703 4,491,185 13,708,299 39,409,300 Less: Interest (6,377,200) Present Value of Lease Liability $ 33,032,100 |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 6 - Commitments and Contingencies | Note 6 Commitments and Contingencies The Company is, and expects in the future to be, involved in various legal proceedings incidental to its business from time to time. Management makes provisions in its financial statements for legal, regulatory, and other contingencies when, in the opinion of Management, a loss is probable and reasonably estimable. At June 30, 2020, no such known proceedings or amounts, individually or in the aggregate, were expected to have a material impact on the Company or its financial condition or results of operations. During the first quarter of 2020 there was global outbreak of a new strain of coronavirus, COVID-19. The global and domestic response to the ongoing COVID-19 outbreak continues to evolve. Thus far, certain responses to the COVID-19 outbreak have included mandates from federal, state and/or local authorities that have required temporary closure of or imposed limitations on the operations of certain non-essential businesses and industries. The ongoing outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The ongoing development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of the novel coronavirus. Management created a COVID-19 Task Force for the Company which continues to diligently work to identify and manage impact from the pandemic. During the first quarter and during part of the second quarter, the Task Force initially closed branch offices to the public. Loans were originated by appointment only with no more than one customer in the branch office at any time. Customers were and are encouraged to pay electronically. For those unable to pay electronically a no contact process was implemented for the branch offices. We have since re-opened our branch lobbies to the public, but request customers and employees to wear a mask. We have not experienced any significant impact on our delinquencies through June 30, 2020 that can be attributed to COVID-19. However, we have modified the payment terms of certain loans and have increased our allowance for credit losses as the performance of these accounts may not match historical loss rates. Many corporate team members are working remotely where practicable. COVID-19 presents material uncertainty and risk with respect to the Companys performance and operations, including the potential impact on delinquencies and the allowance for credit losses if our customers experience prolonged periods of unemployment, which could result in material impact to the Companys future results of operations, cash flows and financial condition. |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 7 - Income Taxes | Note 7 Income Taxes The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status. Effective income tax rates were 13% and 20% during the three- and six-month periods ended June 30, 2020, respectively, compared to 19% and 17% during the same comparable periods a year ago. During the three-month period just ended, the S corporation incurred higher income, which increased the overall pre-tax income of the Company resulting in a lower effective tax rate for the quarter just ended compared to the same period in 2019. However, during the six-month period just ended, the S corporation incurred a higher loss, which lowered the overall pre-tax income of the Company resulting in a higher effective tax rate for the six-month period just ended compared to the same period a year ago. |
Note 8 - Credit Agreement
Note 8 - Credit Agreement | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 8 - Credit Agreement | Note 8 Credit Agreement Effective September 11, 2009, the Company entered into a credit facility with Wells Fargo Preferred Capital, Inc. (now Wells Fargo Bank, N.A.). As amended to date, the credit agreement provides for borrowings and reborrrowings of up to $200.0 million, subject to certain limitations, and all borrowings are secured by the finance receivables of the Company. Available borrowings under the credit agreement were $102.8 million and $87.7 million at June 30, 2020 and December 31, 2019, at interest rates of 3.50% and 4.45%, respectively. Outstanding borrowings on the credit line were $97.2 million and $111.4 million at June 30, 2020 and December 31, 2019, respectively. The credit agreement contains covenants customary for financing transactions of this type. At June 30, 2020, the Company believes it was in compliance with all covenants. The credit agreement has a commitment termination date of February 28, 2022. |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 9 - Related Party Transactions | Note 9 Related Party Transactions The Company engages from time to time in transactions with related parties. The Company has an outstanding loan to a real estate development partnership of which one of the Companys beneficial owners is a partner. The balance on the commercial loan (including principal and accrued interest) was $1.7 million at June 30, 2020. The Company also has a loan for premium payments to a trust of an executive officers irrevocable life insurance policy. The principal balance on this loan at June 30, 2020 was $.4 million. Please refer to the disclosure contained in Note 12 Related Party Transactions in the Notes to Consolidated Financial Statements in the Companys Annual Report on Form 10-K as of and for the year ended December 31, 2019 for additional information on related party transactions. |
Note 10 - Segment Financial Inf
Note 10 - Segment Financial Information | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Note 10 - Segment Financial Information | Note 10 Segment Financial Information The Company discloses segment information in accordance with FASB ASC 280. FASB ASC 280 requires companies to determine segments based on how management makes decisions about allocating resources to segments and measuring their performance. The Company has eight divisions which comprise its operations: Division I through Division V, Division VII, Division VIII and Division IX. Each division consists of branch offices that are aggregated based on vice president responsibility and geographic location. Division I consists of offices located in South Carolina. Prior to 2020, offices in North Georgia comprised Division II, Division III consisted of offices in South Georgia and Division IX consisted of offices in West Georgia. Effective January 1, 2020, the Company geographically realigned the Georgia Divisions into Division II consisting of Middle Georgia, Division III consisting of South Georgia and Division IX consisting of North Georgia. Various branches were realigned in order to be in the appropriate geographic division. Division IV represents our Alabama offices, Division V represents our Mississippi offices, Division VII represents our Tennessee offices and Division VIII represents our Louisiana offices. The following division financial data has been retrospectively presented to give effect to the current structure. The change in the Georgia reporting structure had no impact on the previously reported consolidated results. Accounting policies of each of the divisions are the same as those for the Company as a whole. Performance is measured based on objectives set at the beginning of each year and include various factors such as division profit, growth in earning assets and delinquency and loan loss management. All division revenues result from transactions with third parties. The Company does not allocate income taxes or corporate headquarter expenses to the divisions. Below is a performance recap of each of the Companys divisions for the three- and six-month periods ended June 30, 2020 and 2019, followed by a reconciliation to consolidated Company data. Division Division Division Division Division Division Division Division I II III IV V VII VIII IX Total (in thousands) Division Revenues: $ 9,430 $ 8,789 $ 9,542 $ 9,186 $ 6,276 $ 5,987 $ 5,198 $ 7,701 $ 62,109 $ 9,130 $ 8,620 $ 9,504 $ 9,360 $ 5,624 $ 5,502 $ 4,856 $ 8,093 $ 60,689 $ 19,640 $ 17,970 $ 19,705 $ 18,977 $ 12,837 $ 12,291 $ 10,914 $ 16,207 $ 128,541 $ 17,911 $ 17,129 $ 18,816 $ 18,405 $ 11,192 $ 10,682 $ 9,540 $ 16,099 $ 119,774 Division Profit: $ 2,908 $ 3,506 $ 3,846 $ 2,650 $ 1,740 $ 1,450 $ 1,107 $ 2,192 $ 19,399 $ 3,121 $ 3,452 $ 3,989 $ 3,026 $ 1,490 $ 1,209 $ 1,066 $ 2,568 $ 19,921 $ 6,161 $ 7,260 $ 8,029 $ 5,843 $ 3,737 $ 2,746 $ 2,510 $ 5,175 $ 41,461 $ 6,221 $ 7,013 $ 8,150 $ 6,069 $ 3,022 $ 2,464 $ 2,264 $ 5,662 $ 40,865 Division Assets: $ 101,310 $ 102,672 $ 106,493 $ 123,152 $ 68,824 $ 75,682 $ 58,009 $ 94,433 $ 730,575 $ 105,094 $ 102,952 $ 109,390 $ 123,652 $ 68,269 $ 73,116 $ 59,100 $ 98,875 $ 740,448 3 Months Ended 6/30/2020 3 Months Ended 6/30/2019 6 Months Ended 6/30/2020 6 Months Ended 6/30/2019 (in 000s) (in 000s) (in 000s) (in 000s) Reconciliation of Revenues: Total revenues from reportable divisions $ 62,109 $ 59,085 $ 128,541 $ 119,774 Corporate finance charges earned, not allocated to divisions 21 34 52 65 Corporate investment income earned, not allocated to divisions 1,669 1,788 3,449 3,672 Timing difference of insurance income allocation to divisions 1,531 1,837 3,830 3,403 Other revenue not allocated to divisions 3 4 5 7 Consolidated Revenues (1) $ 65,333 $ 62,748 $ 135,877 $ 126,921 3 Months Ended 6/30/2020 3 Months Ended 6/30/2019 6 Months Ended 6/30/2020 6 Months Ended 6/30/2019 (in 000s) (in 000s) (in 000s) (in 000s) Reconciliation of Profit: Profit per division $ 19,399 $ 19,921 $ 41,461 $ 40,865 Corporate earnings not allocated 3,224 3,484 7,336 7,147 Corporate expenses not allocated (17,055) (18,643) (40,394) (37,923) Consolidated Income Before Income Taxes $ 5,568 $ 4,762 $ 8,403 $ 10,089 Note 1: Includes Finance Charge Income, Investment Income, Insurance Premium Revenues and Other Revenue. |
Note 1 - Basis of Presentation_
Note 1 - Basis of Presentation: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Recent Accounting Pronouncements: | Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 (ASC 606), Revenue from Contracts with Customers. Under the guidance, companies are required to recognize revenue when the seller satisfies a performance obligation, which would be when the buyer takes control of the good or service. The Company adopted this guidance using the modified retrospective method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The Company categorizes its primary sources of revenue into three categories: (1) interest related revenues, (2) insurance related revenue and (3) revenue from contracts with customers. · · · Other revenues, as a whole, are immaterial to total revenues. There was no change to previously reported amounts from the cumulative effect of the adoption of ASC 606. During the three months ended June 30, 2020 and 2019, the Company recognized interest related income of $52.5 million and $50.7 million, respectively, insurance related income of $11.9 million and $11.9 million, respectively, and other revenues of $.9 million and $1.5 million, respectively. During the six months ended June 30, 2020 and 2019, the Company recognized interest related income of $108.6 million and $100.4 million, respectively, insurance related income of $25.2 million and $23.8 million, respectively, and other revenues of $2.1 million and $2.7 million, respectively. In February 2016, the FASB issued ASU 2016-02, Leases Topic (842): Leases. This ASU supersedes existing guidance on accounting for leases in Leases (Topic 840). The update requires disclosures regarding key information about leasing arrangements and requires all leases for a leasee to be recognized on the balance sheet as a right-of-use asset and a corresponding lease liability. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize a right-of-use asset or lease liability. The Company adopted the new standard during the first quarter of 2019 using the modified retrospective transition method resulting in the recording of a right-to-use asset of $29.7 million on the balance sheet and a corresponding liability. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The Company utilized the package of practical expedients allowing the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs. As part of the adoption of the accounting standard, the Company elected to not recognize short-term leases on the condensed consolidated balance sheet. All non-lease components, such as common area maintenance, were excluded. See Note 5. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This ASU amends existing guidance that requires an incurred loss impairment methodology that delays recognition until it is probable a loss has been incurred. The new guidance requires measurement and recognition of an allowance for credit losses that estimates expected credit losses and applies to financial assets measured at amortized cost including financing receivables, as well as net investments in leases recognized by a lessor, off-balance sheet credit exposures and reinsurance recoverables. The ASU is effective for annual and interim periods beginning after December 15, 2019. The Company adopted this guidance as of January 1, 2020 using the modified retrospective approach. Transition to the new ASU was through a cumulative-effect adjustment to beginning retained earnings as of January 1, 2020. The following table illustrates the impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified as a result of changes made to our primary portfolio segments under CECL: January 1, 2020 Assets As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (in 000s) (in 000s) (in 000s) Loans: $ 88,442 $ - $ 88,442 85,252 - 85,252 563,560 - 563,560 37,255 - 37,255 70,019 - 70,019 - 844,528 (844,528) 118,748 118,748 - 57,620 57,620 - 55,158 53,000 2,158 $ 613,002 $ 615,160 $ (2,158) Equity: Retained Earnings $ 249,553 $ 251,711 $ (2,158) There have been no updates to other recent accounting pronouncements described in our 2019 Annual Report and no new pronouncements that Management believes would have a material impact on the Company. |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation: Schedule of reconciliation of cash, cash equivalents and restricted cash (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | June 30, 2020 June 30, 2019 Cash and Cash Equivalents $ 56,795,213 $ 18,505,318 Restricted Cash 5,593,015 5,433,509 Total Cash, Cash Equivalents and Restricted Cash $ 62,388,228 $ 23,938,827 |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation: Recent Accounting Pronouncements: Schedule of impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified | January 1, 2020 Assets As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (in 000s) (in 000s) (in 000s) Loans: $ 88,442 $ - $ 88,442 85,252 - 85,252 563,560 - 563,560 37,255 - 37,255 70,019 - 70,019 - 844,528 (844,528) 118,748 118,748 - 57,620 57,620 - 55,158 53,000 2,158 $ 613,002 $ 615,160 $ (2,158) Equity: Retained Earnings $ 249,553 $ 251,711 $ (2,158) |
Note 2 - Allowance for Credit_2
Note 2 - Allowance for Credit Losses: Schedule of Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Allowance for Loan Losses | Loan Class June 30, 2020 December 31, 2019 Live Check Consumer Loans $ 3,391,920 $ 4,689,601 Premier Consumer Loans 1,830,080 2,587,373 Other Consumer Loans 16,313,638 26,509,178 Real Estate Loans 1,538,823 1,259,471 Sales Finance Contracts 1,523,678 2,301,970 $ 24,598,139 $ 37,347,593 |
Note 2 - Allowance for Credit_3
Note 2 - Allowance for Credit Losses: Past Due Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Past Due Financing Receivables | June 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 1,617,594 $ 749,448 $ 2,374,262 $ 4,741,304 Premier Loans 898,246 336,902 989,993 2,225,141 Other Consumer Loans 10,800,069 4,190,690 14,678,801 29,669,560 Real Estate Loans 453,635 248,478 1,664,238 2,366,351 Sales Finance Contracts 1,484,895 527,619 1,262,224 3,274,738 $ 15,254,439 $ 6,053,137 $ 20,969,518 $ 42,277,094 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 2,089,313 $ 1,576,158 $ 3,079,737 $ 6,745,208 Premier Loans 1,174,364 791,218 1,216,080 3,181,662 Other Consumer Loans 16,309,594 9,251,491 20,675,879 46,236,964 Real Estate Loans 900,373 339,977 1,592,069 2,832,419 Sales Finance Contractss 1,691,694 754,381 1,755,318 4,201,393 $ 22,165,338 $ 12,713,225 $ 28,319,083 $ 63,197,646 |
Note 2 - Allowance for Credit_4
Note 2 - Allowance for Credit Losses: Schedule of net balance (principal balance less unearned finance charges and unearned insurance) in consumer and residential loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of net balance (principal balance less unearned finance charges and unearned insurance) in consumer and residential loans | Payment Performance Net Balance by Origination Year 2020(1) 2019 2018 2017 2016 Prior Total Net Balance (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Live Checks: $ 43,012 $ 28,370 $ 3,333 $ 461 $ 4 $ 1 $ 75,181 1,556 1,464 173 17 - - 3,210 $ 44,568 $ 29,834 3,506 $ 478 $ 4 $ 1 $ 78,391 Premier Loans: $ 23,104 $ 35,682 $ 10,330 $ 1,592 $ - $ - $ 70,708 154 1,124 376 81 - - 1,735 $ 23,258 $ 36,806 10,706 $ 1,673 $ - $ - $ 72,443 Other Consumer Loans: $ 159,249 $ 184,972 $ 34,119 $ 5,666 $ 1,028 $ 391 $ 385,425 2,227 9,212 2,353 357 95 27 14,271 $ 161,476 $ 194,184 $ 36,472 $ 6,023 $ 1,123 $ 418 $ 399,696 Real Estate Loans: $ 5,758 $ 10,885 $ 7,901 $ 4,557 $ 2,321 $ 3,571 $ 34,991 78 437 384 256 172 287 1,614 $ 5,836 $ 11,322 8,285 $ 4,813 $ 2,493 $ 3,858 $ 36,607 Sales Finance Contracts: $ 42,957 $ 25,242 $ 7,837 $ 1,463 $ 180 $ 57 $ 77,736 358 558 280 82 19 7 1,304 $ 43,315 $ 25,800 8,117 $ 1,545 $ 199 $ 64 $ 79,040 |
Note 2 - Allowance for Credit_5
Note 2 - Allowance for Credit Losses: Allowance for Credit Losses on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Allowance for Credit Losses on Financing Receivables | Three Months Ended June 30, 2020 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Allowance for Credit Losses: $ 9,059 $ 4,517 $ 39,446 $ 239 $ 5,713 $ 58,974 1,635 1,524 8,197 5 1,201 12,562 (2,900) (1,424) (11,842) (5) (922) (17,093) 789 105 3,218 1 210 4,323 $ 8,583 $ 4,722 $ 39,019 $ 240 $ 6,202 $ 58,766 Six Months Ended June 30, 2020 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) (in 000s) Allowance for Credit Losses: $ - $ - $ - $ - $ - $ 53,000 - - - - - 2,158 $ 8,177 $ 4,121 $ 39,180 $ 169 $ 3,511 $ 55,158 5,395 3,184 17,858 78 4,187 30,702 (6,471) (2,782) (24,951) (12) (1,926) (36,142) 1,482 199 6,932 5 430 9,048 $ 8,583 $ 4,722 $ 39,019 $ 240 $ 6,202 $ 58,766 Three Months Ended Six Months Ended June 30, 2020 June 30,2019 June 30, 2020 June 30, 2019 Allowance for Credit Losses: Beginning Balance $ 58,974,560 $ 43,500,000 $ 53,000,000 $ 43,000,000 - - 2,158,161 - - 12,561,600 13,965,736 30,702,268 24,508,305 (17,093,237) (15,526,988) (36,141,737) (29,726,870) 4,323,480 4,061,252 9,047,711 8,218,565 Ending balance; collectively evaluated for impairment $ 58,766,403 $ 46,000,000 $ 58,766,403 $ 46,000,000 Finance Receivables Ending Balance $ 825,074,569 $ 769,791,457 $ 825,074,569 $ 769,791,457 |
Note 2 - Allowance for Credit_6
Note 2 - Allowance for Credit Losses: Troubled Debt Restructurings on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Troubled Debt Restructurings on Financing Receivables | Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 326 $ 526,181 $ 510,145 Premier Consumer Loans 70 471,275 450,836 Other Consumer Loans 1,892 7,048,324 6,436,597 Real Estate Loans 15 125,994 125,192 Sales Finance Contracts 137 598,578 565,952 2,440 $ 8,870,352 $ 8,088,722 The following table presents a summary of loans that were restructured during the three months ended June 30, 2019. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 4,286 $ 12,546,322 $ 11,990,277 Real Estate Loans 7 66,178 66,178 Sales Finance Contracts 179 695,639 659,460 4,472 $ 13,308,139 $ 12,715,915 The following table presents a summary of loans that were restructured during the six months ended June 30, 2020. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 1,122 $ 1,826,042 $ 1,773,540 Premier Consumer Loans 233 1,546,354 1,498,776 Other Consumer Loans 5,822 19,844,595 18,474,903 Real Estate Loans 23 234,189 233,387 Sales Finance Contracts 384 1,609,026 1,534,682 7,584 $ 25,060,206 $ 23,515,288 The following table presents a summary of loans that were restructured during the six months ended June 30, 2019. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 8,941 $ 25,191,874 $ 24,170,946 Real Estate Loans 19 326,510 324,687 Sales Finance Contracts 379 1,373,113 1,310,166 9,339 $ 26,891,497 $ 25,805,799 TDRs that occurred during the twelve months ended June 30, 2020 and subsequently defaulted during the three months ended June 30, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 275 $ 380,724 Premier Consumer Loans 38 199,325 Other Consumer Loans 1,065 2,405,262 Real Estate Loans 1 1,832 Sales Finance Contracts 68 155,141 1,447 $ 3,142,284 TDRs that occurred during the twelve months ended June 30, 2019 and subsequently defaulted during the three months ended June 30, 2019 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,902 $ 3,478,965 Real Estate Loans - - Sales Finance Contracts 63 156,739 1,965 $ 3,635,704 TDRs that occurred during the twelve months ended June 30, 2020 and subsequently defaulted during the six months ended June 30, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 665 $ 961,371 Premier Consumer Loans 81 465,502 Other Consumer Loans 2,338 4,913,928 Real Estate Loans 1 1,832 Sales Finance Contracts 149 336,613 3,234 $ 6,679,246 TDRs that occurred during the twelve months ended June 30, 2019 and subsequently defaulted during the six months ended June 30, 2019 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 3,351 $ 5,957,308 Real Estate Loans - - Sales Finance Contracts 132 312,212 3,483 $ 6,269,520 |
Note 3 - Investment Securities_
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of amortized cost and estimated fair values of debt securities | As of June 30, 2020 As of December 31, 2019 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale $196,852,116 $211,741,506 $192,240,250 $204,012,197 130,316 298,932 130,316 445,325 $196,982,432 $212,040,438 $192,370,566 $204,457,522 Held to Maturity $379,788 $387,161 $380,561 $389,520 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities: Schedule of Investment Securities Fair Value and Unrealized Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Investment Securities Fair Value and Unrealized Losses | Less than 12 Months 12 Months or Longer Total June 30, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: $ 3,933,780 $ (15,092) $ 979,134 $ (10,458) $ 4,912,914 $ (25,550) Less than 12 Months 12 Months or Longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: $ 1,206,656 $ (18,941) $ 986,642 $ (5,151) $ 2,193,298 $ (24,092) |
Note 4 - Fair Value_ Fair Value
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Fair Value Measurements, by Fair Value hierarchy | Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs Description 2020 (Level1) (Level2) (Level3) Corporate securities $ 298,932 $ 298,932 $ -- $ -- Obligations of states and political subdivisions 211,741,506 -- 211,741,506 -- Total $ 212,040,438 $ 298,932 $ 211,741,506 $ -- Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2019 (Level1) (Level2) (Level3) Corporate securities $ 445,325 $ 445,325 $ -- $ -- Obligations of states and political subdivisions 204,012,195 -- 204,012,195 -- Total $ 204,457,520 $ 445,325 $ 204,012,195 $ -- |
Note 5 - Leases_ Schedule of Le
Note 5 - Leases: Schedule of Lease expense and other information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Lease expense and other information | Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Operating lease expense $ 1,800,009 $ 3,587,594 Cash paid for amounts included in the measurement of lease liabilities: 1,757,246 3,513,126 Weighted-average remaining lease term operating leases (in years) 7.04 Weighted-average discount rate operating leases 5.33 % Lease maturity schedule as of June 30, 2020: Amount Remainder of 2020 $ 3,488,489 6,573,797 5,968,827 5,178,703 4,491,185 13,708,299 39,409,300 Less: Interest (6,377,200) Present Value of Lease Liability $ 33,032,100 |
Note 10 - Segment Financial I_2
Note 10 - Segment Financial Information: Schedule of Segment Reporting Information, by Segment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Division Division Division Division Division Division Division Division I II III IV V VII VIII IX Total (in thousands) Division Revenues: $ 9,430 $ 8,789 $ 9,542 $ 9,186 $ 6,276 $ 5,987 $ 5,198 $ 7,701 $ 62,109 $ 9,130 $ 8,620 $ 9,504 $ 9,360 $ 5,624 $ 5,502 $ 4,856 $ 8,093 $ 60,689 $ 19,640 $ 17,970 $ 19,705 $ 18,977 $ 12,837 $ 12,291 $ 10,914 $ 16,207 $ 128,541 $ 17,911 $ 17,129 $ 18,816 $ 18,405 $ 11,192 $ 10,682 $ 9,540 $ 16,099 $ 119,774 Division Profit: $ 2,908 $ 3,506 $ 3,846 $ 2,650 $ 1,740 $ 1,450 $ 1,107 $ 2,192 $ 19,399 $ 3,121 $ 3,452 $ 3,989 $ 3,026 $ 1,490 $ 1,209 $ 1,066 $ 2,568 $ 19,921 $ 6,161 $ 7,260 $ 8,029 $ 5,843 $ 3,737 $ 2,746 $ 2,510 $ 5,175 $ 41,461 $ 6,221 $ 7,013 $ 8,150 $ 6,069 $ 3,022 $ 2,464 $ 2,264 $ 5,662 $ 40,865 Division Assets: $ 101,310 $ 102,672 $ 106,493 $ 123,152 $ 68,824 $ 75,682 $ 58,009 $ 94,433 $ 730,575 $ 105,094 $ 102,952 $ 109,390 $ 123,652 $ 68,269 $ 73,116 $ 59,100 $ 98,875 $ 740,448 3 Months Ended 6/30/2020 3 Months Ended 6/30/2019 6 Months Ended 6/30/2020 6 Months Ended 6/30/2019 (in 000s) (in 000s) (in 000s) (in 000s) Reconciliation of Revenues: Total revenues from reportable divisions $ 62,109 $ 59,085 $ 128,541 $ 119,774 Corporate finance charges earned, not allocated to divisions 21 34 52 65 Corporate investment income earned, not allocated to divisions 1,669 1,788 3,449 3,672 Timing difference of insurance income allocation to divisions 1,531 1,837 3,830 3,403 Other revenue not allocated to divisions 3 4 5 7 Consolidated Revenues (1) $ 65,333 $ 62,748 $ 135,877 $ 126,921 3 Months Ended 6/30/2020 3 Months Ended 6/30/2019 6 Months Ended 6/30/2020 6 Months Ended 6/30/2019 (in 000s) (in 000s) (in 000s) (in 000s) Reconciliation of Profit: Profit per division $ 19,399 $ 19,921 $ 41,461 $ 40,865 Corporate earnings not allocated 3,224 3,484 7,336 7,147 Corporate expenses not allocated (17,055) (18,643) (40,394) (37,923) Consolidated Income Before Income Taxes $ 5,568 $ 4,762 $ 8,403 $ 10,089 Note 1: Includes Finance Charge Income, Investment Income, Insurance Premium Revenues and Other Revenue. |
Note 1 - Basis of Presentatio_4
Note 1 - Basis of Presentation: Schedule of reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||
Cash and Cash Equivalents | $ 56,795,213 | $ 18,505,318 |
Restricted Cash | 5,593,015 | 5,433,509 |
Total Cash, Cash Equivalents and Restricted Cash | $ 62,388,228 | $ 23,938,827 |
Note 1 - Basis of Presentatio_5
Note 1 - Basis of Presentation: Recent Accounting Pronouncements: Schedule of impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified (Details) $ in Thousands | Jun. 30, 2020USD ($) |
As Reported Under ASC 326 | |
Loans | |
Loans, Live Checks | $ 88,442 |
Loans, Premier Loans | 85,252 |
Loans, Other Consumer Loans | 563,560 |
Loans, Real Estate Loans | 37,255 |
Loans, Sales Finance Contracts | 70,019 |
Loans, Total Portfolio Level | 0 |
Loans, Unearned Finance Charges | 118,748 |
Loans, Unearned Insurance Premiums & Comm | 57,620 |
Loans, Allowance for Credit Losses | 55,158 |
Loans, Total Net | 613,002 |
Equity | |
Equity, Retained Earnings | 249,553 |
Pre-ASC 326 Adoption | |
Loans | |
Loans, Live Checks | 0 |
Loans, Premier Loans | 0 |
Loans, Other Consumer Loans | 0 |
Loans, Real Estate Loans | 0 |
Loans, Sales Finance Contracts | 0 |
Loans, Total Portfolio Level | 844,528 |
Loans, Unearned Finance Charges | 118,748 |
Loans, Unearned Insurance Premiums & Comm | 57,620 |
Loans, Allowance for Credit Losses | 53,000 |
Loans, Total Net | 615,160 |
Equity | |
Equity, Retained Earnings | 251,711 |
Impact of ASC 326 Adoption | |
Loans | |
Loans, Live Checks | 88,442 |
Loans, Premier Loans | 85,252 |
Loans, Other Consumer Loans | 563,560 |
Loans, Real Estate Loans | 37,255 |
Loans, Sales Finance Contracts | 70,019 |
Loans, Total Portfolio Level | (844,528) |
Loans, Unearned Finance Charges | 0 |
Loans, Unearned Insurance Premiums & Comm | 0 |
Loans, Allowance for Credit Losses | 2,158 |
Loans, Total Net | (2,158) |
Equity | |
Equity, Retained Earnings | $ (2,158) |
Note 2 - Allowance for Credit_7
Note 2 - Allowance for Credit Losses (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Details | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Ratio of bankrupt accounts to total principal loan balances | 1.84% | 2.09% |
Note 2 - Allowance for Credit_8
Note 2 - Allowance for Credit Losses: Schedule of Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Live Check Consumer Loans | ||
Financing Receivable, Nonaccrual | $ 3,391,920 | $ 4,689,601 |
Premier Consumer Loans | ||
Financing Receivable, Nonaccrual | 1,830,080 | 2,587,373 |
Other Consumer Loans | ||
Financing Receivable, Nonaccrual | 16,313,638 | 26,509,178 |
Real Estate Loans | ||
Financing Receivable, Nonaccrual | 1,538,823 | 1,259,471 |
Sales Finance Contracts | ||
Financing Receivable, Nonaccrual | 1,523,678 | 2,301,970 |
Financing Receivable, Nonaccrual | $ 24,598,139 | $ 37,347,593 |
Note 2 - Allowance for Credit_9
Note 2 - Allowance for Credit Losses: Past Due Financing Receivables (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Live Check Loans | ||
Financing Receivable, Past Due | $ 4,741,304 | $ 6,745,208 |
Premier Loans | ||
Financing Receivable, Past Due | 2,225,141 | 3,181,662 |
Other Consumer Loans | ||
Financing Receivable, Past Due | 29,669,560 | 46,236,964 |
Real Estate Loans | ||
Financing Receivable, Past Due | 2,366,351 | 2,832,419 |
Sales Finance Contracts | ||
Financing Receivable, Past Due | 3,274,738 | 4,201,393 |
Financing Receivable, Past Due | 42,277,094 | 63,197,646 |
Financial Asset, 30 to 59 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 1,617,594 | 2,089,313 |
Financial Asset, 30 to 59 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 898,246 | 1,174,364 |
Financial Asset, 30 to 59 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 10,800,069 | 16,309,594 |
Financial Asset, 30 to 59 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 453,635 | 900,373 |
Financial Asset, 30 to 59 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 1,484,895 | 1,691,694 |
Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | 15,254,439 | 22,165,338 |
Financial Asset, 60 to 89 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 749,448 | 1,576,158 |
Financial Asset, 60 to 89 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 336,902 | 791,218 |
Financial Asset, 60 to 89 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 4,190,690 | 9,251,491 |
Financial Asset, 60 to 89 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 248,478 | 339,977 |
Financial Asset, 60 to 89 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 527,619 | 754,381 |
Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | 6,053,137 | 12,713,225 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 2,374,262 | 3,079,737 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 989,993 | 1,216,080 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 14,678,801 | 20,675,879 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 1,664,238 | 1,592,069 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 1,262,224 | 1,755,318 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due | $ 20,969,518 | $ 28,319,083 |
Note 2 - Allowance for Credi_10
Note 2 - Allowance for Credit Losses: Schedule of net balance (principal balance less unearned finance charges and unearned insurance) in consumer and residential loans (Details) $ in Thousands | Jun. 30, 2020USD ($) | |
Origination year - 2020 | ||
Live Checks, Performing | $ 43,012 | [1] |
Live Checks, Nonperforming | 1,556 | [1] |
Live Checks | 44,568 | [1] |
Premier Loans, Performing | 23,104 | [1] |
Premier Loans, Nonperforming | 154 | [1] |
Premier Loans | 23,258 | [1] |
Other Consumer Loans, Performing | 159,249 | [1] |
Other Consumer Loans, Nonperforming | 2,227 | [1] |
Other Consumer Loans | 161,476 | [1] |
Real Estate Loans, Performing | 5,758 | [1] |
Real Estate Loans, Nonperforming | 78 | [1] |
Real Estate Loans | 5,836 | [1] |
Sales Finance Contracts, Performing | 42,957 | [1] |
Sales Finance Contracts, Nonperforming | 358 | [1] |
Sales Finance Contracts | 43,315 | [1] |
Origination year - 2019 | ||
Live Checks, Performing | 28,370 | |
Live Checks, Nonperforming | 1,464 | |
Live Checks | 29,834 | |
Premier Loans, Performing | 35,682 | |
Premier Loans, Nonperforming | 1,124 | |
Premier Loans | 36,806 | |
Other Consumer Loans, Performing | 184,972 | |
Other Consumer Loans, Nonperforming | 9,212 | |
Other Consumer Loans | 194,184 | |
Real Estate Loans, Performing | 10,885 | |
Real Estate Loans, Nonperforming | 437 | |
Real Estate Loans | 11,322 | |
Sales Finance Contracts, Performing | 25,242 | |
Sales Finance Contracts, Nonperforming | 558 | |
Sales Finance Contracts | 25,800 | |
Origination year - 2018 | ||
Live Checks, Performing | 3,333 | |
Live Checks, Nonperforming | 173 | |
Live Checks | 3,506 | |
Premier Loans, Performing | 10,330 | |
Premier Loans, Nonperforming | 376 | |
Premier Loans | 10,706 | |
Other Consumer Loans, Performing | 34,119 | |
Other Consumer Loans, Nonperforming | 2,353 | |
Other Consumer Loans | 36,472 | |
Real Estate Loans, Performing | 7,901 | |
Real Estate Loans, Nonperforming | 384 | |
Real Estate Loans | 8,285 | |
Sales Finance Contracts, Performing | 7,837 | |
Sales Finance Contracts, Nonperforming | 280 | |
Sales Finance Contracts | 8,117 | |
Origination year - 2017 | ||
Live Checks, Performing | 461 | |
Live Checks, Nonperforming | 17 | |
Live Checks | 478 | |
Premier Loans, Performing | 1,592 | |
Premier Loans, Nonperforming | 81 | |
Premier Loans | 1,673 | |
Other Consumer Loans, Performing | 5,666 | |
Other Consumer Loans, Nonperforming | 357 | |
Other Consumer Loans | 6,023 | |
Real Estate Loans, Performing | 4,557 | |
Real Estate Loans, Nonperforming | 256 | |
Real Estate Loans | 4,813 | |
Sales Finance Contracts, Performing | 1,463 | |
Sales Finance Contracts, Nonperforming | 82 | |
Sales Finance Contracts | 1,545 | |
Origination year - 2016 | ||
Live Checks, Performing | 4 | |
Live Checks, Nonperforming | 0 | |
Live Checks | 4 | |
Premier Loans, Performing | 0 | |
Premier Loans, Nonperforming | 0 | |
Premier Loans | 0 | |
Other Consumer Loans, Performing | 1,028 | |
Other Consumer Loans, Nonperforming | 95 | |
Other Consumer Loans | 1,123 | |
Real Estate Loans, Performing | 2,321 | |
Real Estate Loans, Nonperforming | 172 | |
Real Estate Loans | 2,493 | |
Sales Finance Contracts, Performing | 180 | |
Sales Finance Contracts, Nonperforming | 19 | |
Sales Finance Contracts | 199 | |
Origination year - Prior | ||
Live Checks, Performing | 1 | |
Live Checks, Nonperforming | 0 | |
Live Checks | 1 | |
Premier Loans, Performing | 0 | |
Premier Loans, Nonperforming | 0 | |
Premier Loans | 0 | |
Other Consumer Loans, Performing | 391 | |
Other Consumer Loans, Nonperforming | 27 | |
Other Consumer Loans | 418 | |
Real Estate Loans, Performing | 3,571 | |
Real Estate Loans, Nonperforming | 287 | |
Real Estate Loans | 3,858 | |
Sales Finance Contracts, Performing | 57 | |
Sales Finance Contracts, Nonperforming | 7 | |
Sales Finance Contracts | 64 | |
Origination year - Total Net Balance | ||
Live Checks, Performing | 75,181 | |
Live Checks, Nonperforming | 3,210 | |
Live Checks | 78,391 | |
Premier Loans, Performing | 70,708 | |
Premier Loans, Nonperforming | 1,735 | |
Premier Loans | 72,443 | |
Other Consumer Loans, Performing | 385,425 | |
Other Consumer Loans, Nonperforming | 14,271 | |
Other Consumer Loans | 399,696 | |
Real Estate Loans, Performing | 34,991 | |
Real Estate Loans, Nonperforming | 1,614 | |
Real Estate Loans | 36,607 | |
Sales Finance Contracts, Performing | 77,736 | |
Sales Finance Contracts, Nonperforming | 1,304 | |
Sales Finance Contracts | $ 79,040 | |
[1] | Includes loans originated during the six-months ended June 30, 2020. |
Note 2 - Allowance for Credi_11
Note 2 - Allowance for Credit Losses: Allowance for Credit Losses on Financing Receivables (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Loans and Leases Receivable, Allowance, Beginning Balance | $ 58,974,560 | $ 43,500,000 | $ 53,000,000 | $ 43,000,000 |
Provision for Loan, Lease, and Other Losses | 12,561,600 | 13,965,736 | 30,702,268 | 24,508,305 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (17,093,237) | (15,526,988) | (36,141,737) | (29,726,870) |
Financing Receivable, Allowance for Credit Loss, Recovery | 4,323,480 | 4,061,252 | 9,047,711 | 8,218,565 |
Loans and Leases Receivable, Allowance, EndingBalance | 58,766,403 | 58,766,403 | ||
Impact of adopting ASC 326 | 0 | $ 0 | 2,158,161 | $ 0 |
Live Checks | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 9,059,000 | 0 | ||
Provision for Loan, Lease, and Other Losses | 1,635,000 | 5,395,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (2,900,000) | (6,471,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 789,000 | 1,482,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | 8,583,000 | 8,583,000 | ||
Impact of adopting ASC 326 | 0 | |||
Premier Loans | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 4,517,000 | 0 | ||
Provision for Loan, Lease, and Other Losses | 1,524,000 | 3,184,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,424,000) | (2,782,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 105,000 | 199,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | 4,722,000 | 4,722,000 | ||
Impact of adopting ASC 326 | 0 | |||
Other Consumer Loans | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 39,446,000 | 0 | ||
Provision for Loan, Lease, and Other Losses | 8,197,000 | 17,858,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (11,842,000) | (24,951,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 3,218,000 | 6,932,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | 39,019,000 | 39,019,000 | ||
Impact of adopting ASC 326 | 0 | |||
Real Estate Loans | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 239,000 | 0 | ||
Provision for Loan, Lease, and Other Losses | 5,000 | 78,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (5,000) | (12,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 1,000 | 5,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | 240,000 | 240,000 | ||
Impact of adopting ASC 326 | 0 | |||
Sales Finance Contracts | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,713,000 | 0 | ||
Provision for Loan, Lease, and Other Losses | 1,201,000 | 4,187,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (922,000) | (1,926,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 210,000 | 430,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | 6,202,000 | 6,202,000 | ||
Impact of adopting ASC 326 | 0 | |||
Total | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | 58,974,000 | 53,000,000 | ||
Provision for Loan, Lease, and Other Losses | 12,562,000 | 30,702,000 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (17,093,000) | (36,142,000) | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 4,323,000 | 9,048,000 | ||
Loans and Leases Receivable, Allowance, EndingBalance | $ 58,766,000 | 58,766,000 | ||
Impact of adopting ASC 326 | $ 2,158,000 |
Note 2 - Allowance for Credi_12
Note 2 - Allowance for Credit Losses: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Current 12 months | ||||
Financing Receivable, Modifications, Number of Contracts | 2,440 | 4,472 | 7,584 | 9,339 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 8,870,352 | $ 13,308,139 | $ 25,060,206 | $ 26,891,497 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 8,088,722 | $ 12,715,915 | $ 23,515,288 | $ 25,805,799 |
Current 12 months | Live Check Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 326 | 1,122 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 526,181 | $ 1,826,042 | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 510,145 | $ 1,773,540 | ||
Current 12 months | Premier Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 70 | 233 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 471,275 | $ 1,546,354 | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 450,836 | $ 1,498,776 | ||
Current 12 months | Other Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 1,892 | 5,822 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 7,048,324 | $ 19,844,595 | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 6,436,597 | $ 18,474,903 | ||
Current 12 months | Real Estate Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 15 | 7 | 23 | 19 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 125,994 | $ 66,178 | $ 234,189 | $ 326,510 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 125,192 | $ 66,178 | $ 233,387 | $ 324,687 |
Current 12 months | Sales Finance Contracts | ||||
Financing Receivable, Modifications, Number of Contracts | 137 | 179 | 384 | 379 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 598,578 | $ 695,639 | $ 1,609,026 | $ 1,373,113 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 565,952 | $ 659,460 | $ 1,534,682 | $ 1,310,166 |
Current 12 months | Cosumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 4,286 | 8,941 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 12,546,322 | $ 25,191,874 | ||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 11,990,277 | $ 24,170,946 | ||
Previous 12 months | ||||
Financing Receivable, Modifications, Number of Contracts | 1,447 | 1,965 | 3,234 | 3,483 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 3,142,284 | $ 3,635,704 | $ 6,679,246 | $ 6,269,520 |
Previous 12 months | Live Check Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 275 | 665 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 380,724 | $ 961,371 | ||
Previous 12 months | Premier Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 38 | 81 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 199,325 | $ 465,502 | ||
Previous 12 months | Other Consumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 1,065 | 2,338 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 2,405,262 | $ 4,913,928 | ||
Previous 12 months | Real Estate Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 1 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 1,832 | $ 0 | $ 1,832 | $ 0 |
Previous 12 months | Sales Finance Contracts | ||||
Financing Receivable, Modifications, Number of Contracts | 68 | 63 | 149 | 132 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 155,141 | $ 156,739 | $ 336,613 | $ 312,212 |
Previous 12 months | Cosumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 1,902 | 3,351 | ||
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 3,478,965 | $ 5,957,308 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Details | ||
Basis for Valuation, Debt Securities | Debt securities available-for-sale are carried at estimated fair value. Debt securities designated as 'Held to Maturity' are carried at amortized cost based on Management's intent and ability to hold such securities to maturity. | |
Gross unrealized losses on investment securities | $ 25,550 | $ 24,092 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 196,852,116 | $ 192,240,250 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 211,741,506 | 204,012,197 |
Held to Maturity, at amortized cost | 379,788 | 380,561 |
Debt Securities, Held-to-maturity, Fair Value | 387,161 | 389,520 |
Corporate Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 130,316 | 130,316 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 298,932 | 445,325 |
Available-for-sale Securities, Amortized Cost Basis | 196,982,432 | 192,370,566 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 212,040,438 | 204,457,522 |
Held to Maturity, at amortized cost | $ 379,788 | $ 380,561 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities: Schedule of Investment Securities Fair Value and Unrealized Losses (Details) - US States and Political Subdivisions Debt Securities - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 3,933,780 | $ 1,206,656 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (15,092) | (18,941) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 979,134 | 986,642 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (10,458) | (5,151) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,912,914 | 2,193,298 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ (25,550) | $ (24,092) |
Note 4 - Fair Value_ Fair Val_2
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Corporate Debt Securities | ||
Investments, Fair Value Disclosure | $ 298,932 | $ 445,325 |
US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 211,741,506 | 204,012,195 |
Investments, Fair Value Disclosure | 212,040,438 | 204,457,520 |
Fair Value, Inputs, Level 1 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 298,932 | 445,325 |
Fair Value, Inputs, Level 1 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Investments, Fair Value Disclosure | 298,932 | 445,325 |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 211,741,506 | 204,012,195 |
Fair Value, Inputs, Level 2 | ||
Investments, Fair Value Disclosure | 211,741,506 | 204,012,195 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Note 5 - Leases_ Schedule of _2
Note 5 - Leases: Schedule of Lease expense and other information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Details | ||
Operating lease expense | $ 1,800,009 | $ 3,587,594 |
Operating cash flows from operating leases | $ 1,757,246 | 3,513,126 |
Weighted-average remaining lease term –operating leases (in years) | 7.04 | |
Weighted-average discount rate –operating leases | 5.33% | |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 3,488,489 | 3,488,489 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 6,573,797 | 6,573,797 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 5,968,827 | 5,968,827 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 5,178,703 | 5,178,703 |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 4,491,185 | 4,491,185 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 13,708,299 | 13,708,299 |
Lessee, Operating Lease, Liability, to be Paid | 39,409,300 | 39,409,300 |
Less: Interest | (6,377,200) | (6,377,200) |
Present Value of Lease Liability | $ 33,032,100 | $ 33,032,100 |
Note 7 - Income Taxes (Details)
Note 7 - Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||||
Effective Income Tax Rate Reconciliation, Percent | 13.00% | 19.00% | 20.00% | 17.00% |
Note 8 - Credit Agreement (Deta
Note 8 - Credit Agreement (Details) - Wells Fargo Preferred Capital, Inc. - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Line of Credit Facility, Initiation Date | Sep. 11, 2009 | |
Line of Credit Facility, Description | Company entered into a credit facility with Wells Fargo Preferred Capital, Inc. (now Wells Fargo Bank, N.A.). | |
Line of Credit Facility, Current Borrowing Capacity | $ 102.8 | $ 87.7 |
Line of Credit Facility, Interest Rate at Period End | 3.50% | 4.45% |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details) $ in Millions | Jun. 30, 2020USD ($) | [1] |
Details | ||
Balance on commercial loan (including principal and accrued interest) | $ 1.7 | |
Balance on loan for premium payments (including principal and accrued interest) | $ 0.4 | |
[1] | Please refer to the disclosure contained in Note 12 Related Party Transactions in the Notes to Consolidated Financial Statements in the Companys Annual Report on Form 10-K as of and for the year ended December 31, 2019 for additional information on related party transactions. |
Note 10 - Segment Financial I_3
Note 10 - Segment Financial Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Division I | ||||||
Segment Reporting Information, Revenue for Reportable Segment | $ 9,430 | $ 9,130 | $ 19,640 | $ 17,911 | ||
Profit (Loss) | 2,908 | 3,121 | 6,161 | 6,221 | ||
Segment Reporting Information, Net Assets | 101,310 | 101,310 | ||||
Segment Reporting Information, Net Assets | 105,094 | |||||
Division II | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 8,789 | 8,620 | 17,970 | 17,129 | ||
Profit (Loss) | 3,506 | 3,452 | 7,260 | 7,013 | ||
Segment Reporting Information, Net Assets | 102,672 | 102,672 | ||||
Segment Reporting Information, Net Assets | 102,952 | |||||
Division III | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 9,542 | 9,504 | 19,705 | 18,816 | ||
Profit (Loss) | 3,846 | 3,989 | 8,029 | 8,150 | ||
Segment Reporting Information, Net Assets | 106,493 | 106,493 | ||||
Segment Reporting Information, Net Assets | 109,390 | |||||
Division IV | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 9,186 | 9,360 | 18,977 | 18,405 | ||
Profit (Loss) | 2,650 | 3,026 | 5,843 | 6,069 | ||
Segment Reporting Information, Net Assets | 123,152 | 123,152 | ||||
Segment Reporting Information, Net Assets | 123,652 | |||||
Division V | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 6,276 | 5,624 | 12,837 | 11,192 | ||
Profit (Loss) | 1,740 | 1,490 | 3,737 | 3,022 | ||
Segment Reporting Information, Net Assets | 68,824 | 68,824 | ||||
Segment Reporting Information, Net Assets | 68,269 | |||||
Division VII | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 5,987 | 5,502 | 12,291 | 10,682 | ||
Profit (Loss) | 1,450 | 1,209 | 2,746 | 2,464 | ||
Segment Reporting Information, Net Assets | 75,682 | 75,682 | ||||
Segment Reporting Information, Net Assets | 73,116 | |||||
Division VIII | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 5,198 | 4,856 | 10,914 | 9,540 | ||
Profit (Loss) | 1,107 | 1,066 | 2,510 | 2,264 | ||
Segment Reporting Information, Net Assets | 58,009 | 58,009 | ||||
Segment Reporting Information, Net Assets | 59,100 | |||||
Division IX | ||||||
Segment Reporting Information, Revenue for Reportable Segment | 7,701 | 8,093 | 16,207 | 16,099 | ||
Profit (Loss) | 2,192 | 2,568 | 5,175 | 5,662 | ||
Segment Reporting Information, Net Assets | 94,433 | 94,433 | ||||
Segment Reporting Information, Net Assets | 98,875 | |||||
Segment Reporting Information, Revenue for Reportable Segment | 62,109 | 60,689 | 128,541 | 119,774 | ||
Profit (Loss) | 19,399 | 19,921 | 41,461 | $ 40,865 | ||
Segment Reporting Information, Net Assets | 730,575 | 730,575 | ||||
Segment Reporting Information, Net Assets | 740,448 | |||||
Reconciliation of Revenues | ||||||
Total revenues from reportable divisions | 62,109 | 59,085 | 128,541 | $ 119,774 | ||
Corporate finance charges earned not allocated to divisions | 21 | 34 | 52 | 65 | ||
Corporate investment income earned not allocated to divisions | 1,669 | 1,788 | 3,449 | 3,672 | ||
Timing difference of insurance income allocation to divisions | 1,531 | 1,837 | 3,830 | 3,403 | ||
Other revenue not allocated to divisions | 3 | 4 | 5 | 7 | ||
Consolidated Revenues | [1] | 65,333 | 62,748 | 135,877 | 126,921 | |
Profit per division | 19,399 | 19,921 | 41,461 | 40,865 | ||
Corporate earnings not allocated | 3,224 | 3,484 | 7,336 | 7,147 | ||
Corporate expenses not allocated | (17,055) | (18,643) | (40,394) | (37,923) | ||
Consolidated Income Before Income Taxes | $ 5,568 | $ 4,762 | $ 8,403 | $ 10,089 | ||
[1] | Includes Finance Charge Income, Investment Income, Insurance Premium Revenues and Other Revenue. |