Document and Entity Information
Document and Entity Information - $ / shares | Apr. 30, 2021 | Mar. 31, 2021 |
Registrant CIK | 0000038723 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 | 2021 | |
Document Fiscal Period Focus | Q1 | |
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 ($) | Mar. 31, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents | $ 55,258,116 | $ 59,213,703 | |
Restricted Cash | 12,344,353 | 8,464,719 | |
LOANS: | |||
Direct Cash Loans | 753,405,792 | 777,568,737 | |
Real Estate Loans | 40,177,382 | 39,960,390 | |
Sales Finance Contracts | 102,463,694 | 103,258,326 | |
Loans, Total | 896,046,868 | 920,787,453 | |
Unearned Finance Charges | 123,977,884 | 132,703,130 | |
Unearned Insurance Premiums and Commissions | 57,647,016 | 61,018,635 | |
Allowance for Loan Losses | 63,348,497 | 66,327,674 | |
Net Loans | 651,073,471 | 660,738,014 | |
INVESTMENT SECURITIES: | |||
Available for Sale, at fair value | 222,963,346 | 221,054,418 | |
Held to Maturity, at amortized cost | 378,604 | 379,002 | |
Other Investments and Securities, at Cost | 223,341,950 | 221,433,420 | |
Other Assets | 62,268,387 | 63,806,516 | |
ASSETS, Total | 1,004,286,277 | 1,013,656,372 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Senior Debt | 627,609,296 | 637,796,041 | |
Accrued Expenses and Other Liabilities | 64,004,195 | 67,345,604 | |
Subordinated Debt | 30,131,272 | 30,075,399 | |
LIABILITIES, Total | 721,744,763 | 735,217,044 | |
COMMITMENTS AND CONTINGENCIES | [1] | ||
STOCKHOLDERS' EQUITY: | |||
Preferred Stock, Value, Issued | 0 | 0 | |
Accumulated Other Comprehensive Income | 10,395,595 | 13,266,927 | |
Retained Earnings | 271,975,919 | 265,002,401 | |
Stockholders' Equity, Total | 282,541,514 | 278,439,328 | |
LIABILITIES AND STOCKHOLDERS' EQUITY, TOTAL | 1,004,286,277 | 1,013,656,372 | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
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 and Retained Earnings (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Interest Income | $ 59,093,608 | $ 56,146,553 |
Interest Expense | 5,503,225 | 5,422,694 |
NET INTEREST INCOME | 53,590,383 | 50,723,859 |
Provision for loan losses | 6,593,962 | 18,140,668 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 46,996,421 | 32,583,191 |
NET INSURANCE INCOME | ||
Premiums and Commissions | 13,047,509 | 13,226,797 |
Insurance Claims and Expenses | 4,204,534 | 3,660,429 |
Total Net Insurance Income | 8,842,975 | 9,566,368 |
OTHER REVENUE | 1,125,078 | 1,170,424 |
OTHER OPERATING EXPENSES: | ||
Personnel Expense | 29,149,660 | 23,640,418 |
Occupancy Expense | 4,376,644 | 4,486,784 |
Other Expense | 11,430,111 | 12,357,914 |
Operating Expenses, Total | 44,956,415 | 40,485,116 |
INCOME BEFORE INCOME TAXES | 12,008,059 | 2,834,867 |
Provision for Income Taxes | 879,680 | 945,346 |
Net Income (Loss) | $ 11,128,379 | $ 1,889,521 |
170,000 Shares Outstanding for All Periods (1,700 voting, 168,300 non-voting) | $ 65.46 | $ 11.11 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) - Parenthetical - shares | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
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 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Net Income (Loss) | $ 11,128,379 | $ 1,889,521 |
Net changes related to available-for-sale Securities | ||
Unrealized gains (losses) during period | (3,151,688) | 649,365 |
Income tax benefit (expense) | 678,815 | (172,087) |
Net unrealized (losses) gains | (2,472,873) | 477,278 |
Reclassification of (gains)/losses to Net Income (Loss) | 398,459 | 0 |
Other Comprehensive Income (Loss) | (2,871,332) | 477,278 |
Total Comprehensive Income | $ 8,257,047 | $ 2,366,799 |
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, 2019 | $ 170,000 | $ 251,711,270 | $ 9,614,846 | $ 261,496,116 | |
Shares Outstanding, Starting at Dec. 31, 2019 | 170,000 | ||||
Comprehensive Income: | |||||
Net Income (Loss) | $ 0 | 1,889,521 | 0 | 0 | |
Other Comprehensive Income (Loss) | 0 | 0 | 477,278 | 0 | |
Total Comprehensive Income (Loss) | 0 | 0 | 0 | 2,366,799 | |
Cash Distributions Paid | $ 0 | (100,000) | 0 | (100,000) | |
Shares Outstanding, Ending at Mar. 31, 2020 | 170,000 | ||||
Equity Balance, Ending at Mar. 31, 2020 | $ 170,000 | 251,342,630 | 10,092,124 | 261,604,754 | |
Equity Balance, Starting at Dec. 31, 2020 | $ 170,000 | 265,002,401 | 13,266,927 | 278,439,328 | |
Shares Outstanding, Starting at Dec. 31, 2020 | 170,000 | ||||
Comprehensive Income: | |||||
Net Income (Loss) | $ 0 | 11,128,379 | 0 | 0 | |
Other Comprehensive Income (Loss) | 0 | 0 | (2,871,332) | 0 | |
Total Comprehensive Income (Loss) | 0 | 0 | 0 | 8,257,047 | |
Cash Distributions Paid | 0 | (4,154,861) | 0 | (4,154,861) | |
Cumulative Change in Accounting Principal | [1] | $ 0 | (2,158,161) | 0 | (2,158,161) |
Shares Outstanding, Ending at Mar. 31, 2021 | 170,000 | ||||
Equity Balance, Ending at Mar. 31, 2021 | $ 170,000 | $ 271,975,919 | $ 10,395,595 | $ 282,541,514 | |
[1] | See Note 2. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 11,128,379 | $ 1,889,521 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | ||
Provision for loan losses | 6,593,962 | 18,140,668 |
Depreciation and amortization | 1,167,242 | 1,247,582 |
Provision for deferred income taxes | (10,700) | (13,795) |
Other | (471,465) | (52,731) |
Decrease (increase) in miscellaneous other assets | 1,868,025 | 993,043 |
Decrease in other liablities | (3,482,788) | (6,446,265) |
Net Cash Provided by (Used in) Operating Activities | 16,792,655 | 15,758,023 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Loans originated or purchased | (116,305,375) | (108,520,874) |
Loan liquidations | 119,375,956 | 94,690,172 |
Purchases of marketable debt securities | (10,696,400) | (3,932,950) |
Redemptions of marketable debt securities | 5,685,000 | 0 |
Fixed asset additions, net | (657,309) | (539,697) |
Fixed asset net proceeds from sales | 15,253 | 17,474 |
Net Cash Provided by (Used in) Investing Activities | (2,582,875) | (18,285,875) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in senior demand notes | 4,894,094 | 3,304,356 |
Advances on credit line | 43,389,542 | 53,841,307 |
Payments on credit line | (83,139,542) | (49,991,307) |
Commercial paper issued | 34,189,530 | 16,454,542 |
Commercial paper redeemed | (9,520,369) | (19,857,534) |
Subordinated debt securities issued | 1,746,049 | 1,461,602 |
Subordinated debt securities redeemed | (1,690,176) | (1,760,866) |
Dividends / Distributions | (4,154,861) | (100,000) |
Net Cash Provided by (Used in) Financing Activities | (14,285,733) | 3,352,100 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (75,953) | 824,248 |
CASH AND CASH EQUIVALENTS, beginning | 67,678,422 | 58,458,580 |
CASH AND CASH EQUIVALENTS, ending | 67,602,469 | 59,282,828 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for Interest | 5,506,284 | 5,377,386 |
Adoption of CECL Accounting Standard ASU 2016-13 | $ 0 | $ (2,158,161) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, its consolidated results of operations and comprehensive income for the three-month periods ended March 31, 2021 and 2020 and its consolidated cash flows for the three months ended March 31, 2021 and 2020. 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 Company’s financial condition and results of operations as of and for the three-month period ended March 31, 2021 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: March 31, 2021 March 31, 2020 Cash and Cash Equivalents $ 55,258,116 $ 55,419,342 Restricted Cash 12,344,353 3,863,486 Total Cash, Cash Equivalents and Restricted Cash $ 67,602,469 $ 59,282,828 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. During the three months ended March 31, 2021 and 2020, the Company recognized interest related income of $58.8 million and $56.1 million, respectively, insurance related income of $13.0 million and $13.2 million, respectively, and other revenues of $1.1 million and $1.2 million, respectively. Recent Accounting Pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional accounting relief for the expected market transition from the use of the London Interchange Bank Offered Rate (“LIBOR”) to the proposed Secured Overnight Financing Rate (“SOFAR”). The key provisions of optional relief include (1) accounting for contract modifications as a continuation of the existing contract without additional analysis and (2) continuing hedge accounting when certain critical terms of a hedging relationship change. The guidance in ASU No. 2020-04 will generally no longer be available to apply after December 31, 2022. There was no impact of ASU No. 2020-04 on the Company’s condensed consolidated financial statements for the period ended March 31, 2021. The Company is currently evaluating the effect that the new standard may have on its financial statements in future periods. There have been no updates to other recent accounting pronouncements described in our 2020 Annual Report and no other 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 | 3 Months Ended |
Mar. 31, 2021 | |
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. The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) effective January 1, 2020. Adoption of ASU 2016-13 resulted in a $2.2 million one-time charge against retained earnings to increase the allowance for credit losses to forecast expected credit losses. Management estimates and evaluates the allowance for credit losses 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 Company’s expected losses in its loan portfolio. The Company’s allowance for credit losses recorded in the balance sheet reflects management’s 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 segment’s performance until charge-offs were substantially all 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 credit 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 Company’s loan portfolio by loan segment when evaluating loan performance and estimating 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 Company’s 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 Company’s graded delinquency policy. When a loan meets the Company’s 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 Company’s non-accrual policy based on grade delinquency rules, generally when two payments remain unpaid on precomputed loans or when the interest paid-to-date on 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 when the interest paid-to-date on an interest-bearing loan is less than 60 days past due. There were no loans that met the non-accrual policy still accruing interest at March 31, 2021 or December 31, 2020. The Company’s principal balances on non-accrual loans by loan class as of March 31, 2021 and December 31, 2020 are as follows: Loan Class March 31, 2021 December 31, 2020 Live Check Consumer Loans $ 3,548,021 $ 3,964,176 Premier Consumer Loans 1,718,915 2,069,315 Other Consumer Loans 16,773,596 20,181,097 Real Estate Loans 1,320,469 1,414,443 Sales Finance Contracts 2,303,553 3,576,629 Total $ 25,664,554 $ 31,205,660 An age analysis of principal balances on past due loans, segregated by loan class, as of March 31, 2021 and December 31, 2020 follows: March 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 2,021,563 $ 1,170,022 $ 2,293,940 $ 5,485,525 Premier Loans 754,017 445,151 1,060,499 2,259,667 Other Consumer Loans 12,468,116 7,087,458 14,828,240 34,383,814 Real Estate Loans 478,125 341,618 1,332,238 2,151,981 Sales Finance Contracts 1,650,416 860,961 1,969,236 4,480,613 Total $ 17,372,237 $ 9,905,210 $ 21,484,153 $ 48,761,600 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 1,998,538 $ 1,629,874 $ 2,122,317 $ 5,750,729 Premier Loans 895,722 653,370 1,038,398 2,587,490 Other Consumer Loans 14,419,790 8,496,082 14,933,605 37,849,477 Real Estate Loans 502,733 223,007 1,437,966 2,163,706 Sales Finance Contracts 2,251,562 1,340,620 2,260,685 5,852,867 Total $ 20,068,345 $ 12,342,953 $ 21,792,971 $ 54,204,269 While delinquency rating analysis is the primary credit quality indicator, we also consider the ratio of bankrupt accounts to the total loan portfolio in evaluating whether any qualitative adjustments were necessary to the allowance for credit losses. The ratio of bankrupt accounts outstanding to total principal loan balances outstanding at March 31, 2021 and December 31, 2020 was 1.48%. 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 principal balance on loans based on payment activity as of March 31, 2021: Payment Performance - Net Balance by Origination Year 2021(1) 2020 2019 2018 2017 Prior Total Principal Balance (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) Live Checks: Performing $ 26,197 $ 61,899 $ 6,577 $ 1,090 $ 115 $ - $ 95,878 Nonperforming 146 3,020 268 38 3 - 3,475 $ 26,343 $ 64,919 $ 6,845 $ 1,128 $ 118 $ - $ 99,353 Premier Loans: Performing $ 17,547 $ 49,097 $ 18,129 $ 5,147 $ 683 $ - $ 90,603 Nonperforming 9 980 554 146 13 - 1,702 $ 17,556 $ 50,077 18,683 $ 5,293 $ 696 $ - $ 92,305 Other Consumer Loans: Performing $ 135,113 $ 320,412 $ 68,997 $ 15,893 $ 2,812 $ 566 $ 543,793 Nonperforming 350 10,971 3,894 1,176 153 29 16,573 $ 135,463 $ 331,383 $ 72,891 $ 17,069 $ 2,965 $ 595 $ 560,366 Real Estate Loans: Performing $ 3,112 $ 9,967 $ 8,842 $ 6,454 $ 3,571 $ 4,324 $ 36,270 Nonperforming 3 274 381 257 153 180 1,248 $ 3,115 $ 10,241 9,223 $ 6,711 $ 3,724 $ 4,504 $ 37,518 Sales Finance Contracts: Performing $ 16,421 $ 60,255 $ 17,632 $ 4,696 $ 620 $ 90 $ 99,714 Nonperforming 50 1,479 505 208 36 7 2,285 $ 16,471 $ 61,734 18,137 $ 4,904 $ 656 $ 97 $ 101,999 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 March 31, 2021, 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 segment’s snapshot at a point in history and tracing performance until charge-offs are substantially all 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 quarter’s historical loss rates. In response to the COVID-19 pandemic, the Company developed a payment modification program for past due accounts. The payment modification program ran from April 1 st Three Months Ended March 31, 2021 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) (in 000’s) Allowance for Credit Losses: Beginning Balance $ 10,765 $ 5,838 $ 43,833 $ 267 $ 5,625 $ 66,328 Provision for Credit Losses 928 728 4,052 (4) 890 6,594 Charge-offs (2,847) (960) (9,649) (2) (1,572) (15,030) Recoveries 862 172 4,053 - 369 5,456 Ending Balance $ 9,708 $ 5,778 $ 42,289 $ 261 $ 5,312 $ 63,348 Three Months Ended March 31, 2021 March 31, 2020 Allowance for Credit Losses: Beginning Balance $ 66,327,674 $ 53,000,000 Impact of adopting ASC 326 - 2,158,161 Provision for credit losses 6,593,962 18,140,668 Charge-offs (15,029,442) (19,048,499) Recoveries 5,456,303 4,724,230 Ending balance; collectively evaluated for impairment $ 63,348,497 $ 58,974,560 Finance Receivables Ending Balance $ 894,857,186 $ 834,292,994 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 March 31, 2021. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 607 $ 1,135,707 $ 1,105,659 Premier Consumer Loans 118 706,551 670,776 Other Consumer Loans 2,986 10,641,761 10,194,316 Real Estate Loans 11 168,829 168,604 Sales Finance Contracts 215 1,384,117 1,352,988 Total 3,937 $ 14,036,965 $ 13,492,343 The following table presents a summary of loans that were restructured during the three months ended March 31, 2020. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 786 $ 1,282,032 $ 1,245,551 Premier Consumer Loans 164 1,085,667 1,058,529 Other Consumer Loans 3,972 12,983,091 12,224,600 Real Estate Loans 9 111,677 111,677 Sales Finance Contracts 264 1,071,657 1,029,928 Total 5,195 $ 16,534,124 $ 15,670,285 TDRs that occurred during the twelve months ended March 31, 2021 and subsequently defaulted during the three months ended March 31, 2021 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 241 $ 437,937 Premier Consumer Loans 31 193,264 Other Consumer Loans 841 1,948,819 Real Estate Loans - - Sales Finance Contracts 42 141,284 Total 1,155 $ 2,271,304 TDRs that occurred during the twelve months ended March 31, 2020 and subsequently defaulted during the three months ended March 31, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 427 $ 617,260 Premier Consumer Loans 53 327,474 Other Consumer Loans 1,452 2,926,111 Real Estate Loans - - Sales Finance Contracts 89 209,611 Total 2,021 $ 4,080,456 The level of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance of credit losses. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 As of December 31, 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale Obligations of states and political subdivisions $ 209,332,484 $ 222,491,465 $ 204,199,851 $ 220,663,305 Corporate securities 130,316 471,882 130,316 391,113 $ 209,462,800 $ 222,963,347 $ 204,330,167 $ 221,054,418 Held to Maturity Obligations of states and political subdivisions $ 378,604 $ 377,280 $ 379,002 $ 380,850 Gross unrealized losses on investment securities totaled $506,721 and $1,022 at March 31, 2021 and December 31, 2020, respectively. The following table provides an analysis of investment securities in an unrealized loss position for which an allowance for credit losses is unnecessary as of March 31, 2021 and December 31, 2020: Less than 12 Months 12 Months or Longer Total March 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 17,331,589 $ (506,721) $ - $ - $ 17.331.589 $ (506,721) Less than 12 Months 12 Months or Longer Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 920,927 $ (1,022) $ - $ - $ 920,927 $ (1,022) The previous two tables represent 16 and 1 investments held by the Company at March 31, 2021 and December 31, 2020, respectively, the majority of which are rated “A” or higher by Moody’s and/or Standard & Poor’s. The unrealized losses on the Company’s 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, no allowance for credit losses was determined to be necessary as of March 31, 2021 and December 31, 2020. The Company’s 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 March 31, 2021, these trusts held $37.5 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 March 31, 2021, these trusts held $22.1 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 instrument’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 March 31, 2021 and December 31, 2020 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 March 31, Assets Inputs Inputs Description 2021 (Level1) (Level2) (Level3) Corporate securities $ 471,882 $ 471,882 $ -- $ -- Obligations of states and political subdivisions 222,491,465 -- 222,491,465 -- Total $ 222,963,347 $ 471,882 $ 222,491,465 $ -- 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 2020 (Level1) (Level2) (Level3) Corporate securities $ 391,113 $ 391,113 $ -- $ -- Obligations of states and political subdivisions 220,663,305 -- 220,663,305 -- Total $ 221,054,418 $ 391,113 $ 220,663,305 $ -- |
Note 5 - Leases
Note 5 - Leases | 3 Months Ended |
Mar. 31, 2021 | |
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 Company’s condensed consolidated statement of financial position. ROU assets represent the Company’s right to use an underlying asset during the lease term and the operating lease liabilities represent the Company’s obligations for lease payments in accordance with the lease. Recognition of ROU assets and liabilities are recognized at the lease commitment date based on the present value of the remaining lease payments using a discount rate that represents the Company’s 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 Company’s 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 March 31, 2021 the operating lease ROU assets and liabilities were $34.4 million and $35.0 million, respectively. The table below summarizes our lease expense and other information related to the Company’s operating leases with respect to FASB ASC 842: Three Months Ended March 31, 2021 Operating lease expense $ 1,839,767 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,804,066 Weighted-average remaining lease term – operating leases (in years) 7.09 Weighted-average discount rate – operating leases 4.74 % Lease payment schedule as of March 31, 2021: Amount Remainder of 2021 $ 5,393,948 2022 6,738,100 2023 5,854,120 2024 5,064,063 2025 4,712,111 2026 and beyond 13,221,705 Total 40,984,047 Less: Discount (5,974,875) Present Value of Lease Liability $ 35,009,172 |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, 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. Management created a COVID-19 Task Force for the Company which continues to diligently work to identify and manage potential impact. During the first and second quarters of 2020, 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 re-opened our branch lobbies to the public during the second quarter of 2020, however, we requested customers and employees to wear a mask. Branch employees are requested to where a mask when interacting with customers. Customers are required or recommended to wear a mask depending on local mandates. Branch offices are closely monitored and may close temporarily based on exposure. Corporate team members returned to the office during the third quarter of 2020. COVID-19 presents material uncertainty and risk with respect to the Company’s 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 Company’s future results of operations, cash flows and financial condition. |
Note 7 - Income Taxes
Note 7 - Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
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 7% and 33% during the three-month periods ended March 31, 2021 and 2020, respectively. During the current year, the S corporation has earned higher income, which increased the overall pre-tax income of the Company resulting in a lower effective tax rate for the 2021 reporting period compared to the same period in 2020. |
Note 8 - Credit Agreement
Note 8 - Credit Agreement | 3 Months Ended |
Mar. 31, 2021 | |
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. As amended to date, the credit agreement provides for borrowings and reborrrowings of up to $230.0 million, subject to certain limitations, and all borrowings are secured by the finance receivables of the Company. Available borrowings under the credit agreement were $150.9 million and $111.1 million at March 31, 2021 and December 31, 2020, at an interest rate of 3.50% for both periods. Outstanding borrowings on the credit line were $79.2 million and $118.9 million at March 31, 2021 and December 31, 2020, respectively. The credit agreement contains covenants customary for financing transactions of this type. At March 31, 2021, 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 Company’s beneficial owners is a partner. The balance on the commercial loan (including principal and accrued interest) was $1.8 million at March 31, 2021. The Company also has a loan for premium payments to a trust of an executive officer’s irrevocable life insurance policy. The principal balance on this loan at March 31, 2021 was $0.4 million. Please refer to the disclosure contained in Note 12 “Related Party Transactions” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2020 for additional information on related party transactions. |
Note 10 - Segment Financial Inf
Note 10 - Segment Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
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. Offices in North Georgia comprises Division II, Division III consists of offices in South Georgia and Division IX consists of offices in West Georgia. 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. During March of this year, the Company began operating in Texas and the offices are also included in Division VIII. 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 Company’s divisions for the three-month periods ended March 31, 2021 and 2020, 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: 3 Months ended 03/31/2021 $ 9,707 $ 9,502 $ 10,244 $ 10,475 $ 7,223 $ 6,697 $ 5,977 $ 8,528 $ 68,353 3 Months ended 03/31/2020 $ 10,210 $ 9,181 $ 10,163 $ 9,791 $ 6,560 $ 6,304 $ 5,717 $ 8,506 $ 66,432 Division Profit: 3 Months ended 03/31/2021 $ 3,591 $ 4,841 $ 5,139 $ 4,519 $ 2,971 $ 1,996 $ 1,644 $ 3,506 $ 28,207 3 Months ended 03/31/2020 $ 3,253 $ 3,754 $ 4,183 $ 3,193 $ 1,997 $ 1,296 $ 1,403 $ 2,983 $ 22,062 Division Assets: 03/31/2021 $ 102,408 $ 110,430 $ 113,042 $ 131,431 $ 75,114 $ 79,445 $ 79,430 $ 99,551 $ 790,851 12/31/2020 $ 106,982 $ 112,168 $ 117,199 $ 136,558 $ 77,143 $ 82,332 $ 69,344 $ 103,048 $ 804,774 3 Months Ended 03/31/2021 3 Months Ended 03/31/2020 (in 000’s) (in 000’s) Reconciliation of Revenues: Total revenues from reportable divisions $ 68,353 $ 66,432 Corporate finance charges earned, not allocated to divisions 22 31 Corporate investment income earned, not allocated to divisions 2,043 1,780 Timing difference of insurance income allocation to divisions 2,846 2,299 Other revenue not allocated to divisions 2 2 Consolidated Revenues (1) $ 73,266 $ 70,544 Reconciliation of Profit: Profit per division $ 28,207 $ 22,062 Corporate earnings not allocated 4,913 4,112 Corporate expenses not allocated (21,112) (23,339) Consolidated Income Before Income Taxes $ 12,008 $ 2,835 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) | 3 Months Ended |
Mar. 31, 2021 | |
Policies | |
Recent Accounting Pronouncements: | Recent Accounting Pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional accounting relief for the expected market transition from the use of the London Interchange Bank Offered Rate (“LIBOR”) to the proposed Secured Overnight Financing Rate (“SOFAR”). The key provisions of optional relief include (1) accounting for contract modifications as a continuation of the existing contract without additional analysis and (2) continuing hedge accounting when certain critical terms of a hedging relationship change. The guidance in ASU No. 2020-04 will generally no longer be available to apply after December 31, 2022. There was no impact of ASU No. 2020-04 on the Company’s condensed consolidated financial statements for the period ended March 31, 2021. The Company is currently evaluating the effect that the new standard may have on its financial statements in future periods. There have been no updates to other recent accounting pronouncements described in our 2020 Annual Report and no other 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) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | March 31, 2021 March 31, 2020 Cash and Cash Equivalents $ 55,258,116 $ 55,419,342 Restricted Cash 12,344,353 3,863,486 Total Cash, Cash Equivalents and Restricted Cash $ 67,602,469 $ 59,282,828 |
Note 2 - Allowance For Credit_2
Note 2 - Allowance For Credit Losses: Schedule of Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Allowance for Loan Losses | Loan Class March 31, 2021 December 31, 2020 Live Check Consumer Loans $ 3,548,021 $ 3,964,176 Premier Consumer Loans 1,718,915 2,069,315 Other Consumer Loans 16,773,596 20,181,097 Real Estate Loans 1,320,469 1,414,443 Sales Finance Contracts 2,303,553 3,576,629 Total $ 25,664,554 $ 31,205,660 |
Note 2 - Allowance For Credit_3
Note 2 - Allowance For Credit Losses: Past Due Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Past Due Financing Receivables | March 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 2,021,563 $ 1,170,022 $ 2,293,940 $ 5,485,525 Premier Loans 754,017 445,151 1,060,499 2,259,667 Other Consumer Loans 12,468,116 7,087,458 14,828,240 34,383,814 Real Estate Loans 478,125 341,618 1,332,238 2,151,981 Sales Finance Contracts 1,650,416 860,961 1,969,236 4,480,613 Total $ 17,372,237 $ 9,905,210 $ 21,484,153 $ 48,761,600 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Live Check Loans $ 1,998,538 $ 1,629,874 $ 2,122,317 $ 5,750,729 Premier Loans 895,722 653,370 1,038,398 2,587,490 Other Consumer Loans 14,419,790 8,496,082 14,933,605 37,849,477 Real Estate Loans 502,733 223,007 1,437,966 2,163,706 Sales Finance Contracts 2,251,562 1,340,620 2,260,685 5,852,867 Total $ 20,068,345 $ 12,342,953 $ 21,792,971 $ 54,204,269 |
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) | 3 Months Ended |
Mar. 31, 2021 | |
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 2021(1) 2020 2019 2018 2017 Prior Total Principal Balance (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) Live Checks: Performing $ 26,197 $ 61,899 $ 6,577 $ 1,090 $ 115 $ - $ 95,878 Nonperforming 146 3,020 268 38 3 - 3,475 $ 26,343 $ 64,919 $ 6,845 $ 1,128 $ 118 $ - $ 99,353 Premier Loans: Performing $ 17,547 $ 49,097 $ 18,129 $ 5,147 $ 683 $ - $ 90,603 Nonperforming 9 980 554 146 13 - 1,702 $ 17,556 $ 50,077 18,683 $ 5,293 $ 696 $ - $ 92,305 Other Consumer Loans: Performing $ 135,113 $ 320,412 $ 68,997 $ 15,893 $ 2,812 $ 566 $ 543,793 Nonperforming 350 10,971 3,894 1,176 153 29 16,573 $ 135,463 $ 331,383 $ 72,891 $ 17,069 $ 2,965 $ 595 $ 560,366 Real Estate Loans: Performing $ 3,112 $ 9,967 $ 8,842 $ 6,454 $ 3,571 $ 4,324 $ 36,270 Nonperforming 3 274 381 257 153 180 1,248 $ 3,115 $ 10,241 9,223 $ 6,711 $ 3,724 $ 4,504 $ 37,518 Sales Finance Contracts: Performing $ 16,421 $ 60,255 $ 17,632 $ 4,696 $ 620 $ 90 $ 99,714 Nonperforming 50 1,479 505 208 36 7 2,285 $ 16,471 $ 61,734 18,137 $ 4,904 $ 656 $ 97 $ 101,999 |
Note 2 - Allowance For Credit_5
Note 2 - Allowance For Credit Losses: Allowance for Credit Losses on Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Allowance for Credit Losses on Financing Receivables | Three Months Ended March 31, 2021 Live Checks Premier Loans Other Consumer Loans Real Estate Loans Sales Finance Contracts Total (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) Allowance for Credit Losses: Beginning Balance $ 10,765 $ 5,838 $ 43,833 $ 267 $ 5,625 $ 66,328 Provision for Credit Losses 928 728 4,052 (4) 890 6,594 Charge-offs (2,847) (960) (9,649) (2) (1,572) (15,030) Recoveries 862 172 4,053 - 369 5,456 Ending Balance $ 9,708 $ 5,778 $ 42,289 $ 261 $ 5,312 $ 63,348 Three Months Ended March 31, 2021 March 31, 2020 Allowance for Credit Losses: Beginning Balance $ 66,327,674 $ 53,000,000 Impact of adopting ASC 326 - 2,158,161 Provision for credit losses 6,593,962 18,140,668 Charge-offs (15,029,442) (19,048,499) Recoveries 5,456,303 4,724,230 Ending balance; collectively evaluated for impairment $ 63,348,497 $ 58,974,560 Finance Receivables Ending Balance $ 894,857,186 $ 834,292,994 |
Note 2 - Allowance For Credit_6
Note 2 - Allowance For Credit Losses: Troubled Debt Restructurings on Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Troubled Debt Restructurings on Financing Receivables | Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 607 $ 1,135,707 $ 1,105,659 Premier Consumer Loans 118 706,551 670,776 Other Consumer Loans 2,986 10,641,761 10,194,316 Real Estate Loans 11 168,829 168,604 Sales Finance Contracts 215 1,384,117 1,352,988 Total 3,937 $ 14,036,965 $ 13,492,343 The following table presents a summary of loans that were restructured during the three months ended March 31, 2020. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Live Check Consumer Loans 786 $ 1,282,032 $ 1,245,551 Premier Consumer Loans 164 1,085,667 1,058,529 Other Consumer Loans 3,972 12,983,091 12,224,600 Real Estate Loans 9 111,677 111,677 Sales Finance Contracts 264 1,071,657 1,029,928 Total 5,195 $ 16,534,124 $ 15,670,285 TDRs that occurred during the twelve months ended March 31, 2021 and subsequently defaulted during the three months ended March 31, 2021 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 241 $ 437,937 Premier Consumer Loans 31 193,264 Other Consumer Loans 841 1,948,819 Real Estate Loans - - Sales Finance Contracts 42 141,284 Total 1,155 $ 2,271,304 TDRs that occurred during the twelve months ended March 31, 2020 and subsequently defaulted during the three months ended March 31, 2020 are listed below. Number Of Loans Pre-Modification Recorded Investment Live Check Consumer Loans 427 $ 617,260 Premier Consumer Loans 53 327,474 Other Consumer Loans 1,452 2,926,111 Real Estate Loans - - Sales Finance Contracts 89 209,611 Total 2,021 $ 4,080,456 |
Note 3 - Investment Securities_
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of amortized cost and estimated fair values of debt securities | As of March 31, 2021 As of December 31, 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale Obligations of states and political subdivisions $ 209,332,484 $ 222,491,465 $ 204,199,851 $ 220,663,305 Corporate securities 130,316 471,882 130,316 391,113 $ 209,462,800 $ 222,963,347 $ 204,330,167 $ 221,054,418 Held to Maturity Obligations of states and political subdivisions $ 378,604 $ 377,280 $ 379,002 $ 380,850 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities: Schedule of Investment Securities Fair Value and Unrealized Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Investment Securities Fair Value and Unrealized Losses | Less than 12 Months 12 Months or Longer Total March 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 17,331,589 $ (506,721) $ - $ - $ 17.331.589 $ (506,721) Less than 12 Months 12 Months or Longer Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 920,927 $ (1,022) $ - $ - $ 920,927 $ (1,022) |
Note 4 - Fair Value_ Fair Value
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, Assets Inputs Inputs Description 2021 (Level1) (Level2) (Level3) Corporate securities $ 471,882 $ 471,882 $ -- $ -- Obligations of states and political subdivisions 222,491,465 -- 222,491,465 -- Total $ 222,963,347 $ 471,882 $ 222,491,465 $ -- 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 2020 (Level1) (Level2) (Level3) Corporate securities $ 391,113 $ 391,113 $ -- $ -- Obligations of states and political subdivisions 220,663,305 -- 220,663,305 -- Total $ 221,054,418 $ 391,113 $ 220,663,305 $ -- |
Note 5 - Leases_ Schedule of Le
Note 5 - Leases: Schedule of Lease expense and other information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Tables/Schedules | |
Schedule of Lease expense and other information | Three Months Ended March 31, 2021 Operating lease expense $ 1,839,767 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,804,066 Weighted-average remaining lease term – operating leases (in years) 7.09 Weighted-average discount rate – operating leases 4.74 % Lease payment schedule as of March 31, 2021: Amount Remainder of 2021 $ 5,393,948 2022 6,738,100 2023 5,854,120 2024 5,064,063 2025 4,712,111 2026 and beyond 13,221,705 Total 40,984,047 Less: Discount (5,974,875) Present Value of Lease Liability $ 35,009,172 |
Note 10 - Segment Financial I_2
Note 10 - Segment Financial Information: Schedule of Segment Reporting Information, by Segment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: 3 Months ended 03/31/2021 $ 9,707 $ 9,502 $ 10,244 $ 10,475 $ 7,223 $ 6,697 $ 5,977 $ 8,528 $ 68,353 3 Months ended 03/31/2020 $ 10,210 $ 9,181 $ 10,163 $ 9,791 $ 6,560 $ 6,304 $ 5,717 $ 8,506 $ 66,432 Division Profit: 3 Months ended 03/31/2021 $ 3,591 $ 4,841 $ 5,139 $ 4,519 $ 2,971 $ 1,996 $ 1,644 $ 3,506 $ 28,207 3 Months ended 03/31/2020 $ 3,253 $ 3,754 $ 4,183 $ 3,193 $ 1,997 $ 1,296 $ 1,403 $ 2,983 $ 22,062 Division Assets: 03/31/2021 $ 102,408 $ 110,430 $ 113,042 $ 131,431 $ 75,114 $ 79,445 $ 79,430 $ 99,551 $ 790,851 12/31/2020 $ 106,982 $ 112,168 $ 117,199 $ 136,558 $ 77,143 $ 82,332 $ 69,344 $ 103,048 $ 804,774 3 Months Ended 03/31/2021 3 Months Ended 03/31/2020 (in 000Â’s) (in 000Â’s) Reconciliation of Revenues: Total revenues from reportable divisions $ 68,353 $ 66,432 Corporate finance charges earned, not allocated to divisions 22 31 Corporate investment income earned, not allocated to divisions 2,043 1,780 Timing difference of insurance income allocation to divisions 2,846 2,299 Other revenue not allocated to divisions 2 2 Consolidated Revenues (1) $ 73,266 $ 70,544 Reconciliation of Profit: Profit per division $ 28,207 $ 22,062 Corporate earnings not allocated 4,913 4,112 Corporate expenses not allocated (21,112) (23,339) Consolidated Income Before Income Taxes $ 12,008 $ 2,835 Note 1: Includes Finance Charge Income, Investment Income, Insurance Premium Revenues and Other Revenue. |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation: Schedule of reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Details | ||
Cash and Cash Equivalents | $ 55,258,116 | $ 55,419,342 |
Restricted Cash | 12,344,353 | 3,863,486 |
Total Cash, Cash Equivalents and Restricted Cash | $ 67,602,469 | $ 59,282,828 |
Note 2 - Allowance For Credit_7
Note 2 - Allowance For Credit Losses (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Details | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Ratio of bankrupt accounts to total principal loan balances | 1.48% | 1.48% |
Note 2 - Allowance For Credit_8
Note 2 - Allowance For Credit Losses: Schedule of Allowance for Loan Losses (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Live Check Consumer Loans | ||
Financing Receivable, Nonaccrual | $ 3,548,021 | $ 3,964,176 |
Premier Consumer Loans | ||
Financing Receivable, Nonaccrual | 1,718,915 | 2,069,315 |
Other Consumer Loans | ||
Financing Receivable, Nonaccrual | 16,773,596 | 20,181,097 |
Real Estate Loans | ||
Financing Receivable, Nonaccrual | 1,320,469 | 1,414,443 |
Sales Finance Contracts | ||
Financing Receivable, Nonaccrual | 2,303,553 | 3,576,629 |
Financing Receivable, Nonaccrual | $ 25,664,554 | $ 31,205,660 |
Note 2 - Allowance For Credit_9
Note 2 - Allowance For Credit Losses: Past Due Financing Receivables (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Live Check Loans | ||
Financing Receivable, Past Due | $ 5,485,525 | $ 5,750,729 |
Premier Loans | ||
Financing Receivable, Past Due | 2,259,667 | 2,587,490 |
Other Consumer Loans | ||
Financing Receivable, Past Due | 34,383,814 | 37,849,477 |
Real Estate Loans | ||
Financing Receivable, Past Due | 2,151,981 | 2,163,706 |
Sales Finance Contracts | ||
Financing Receivable, Past Due | 4,480,613 | 5,852,867 |
Financing Receivable, Past Due | 48,761,600 | 54,204,269 |
Financial Asset, 30 to 59 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 2,021,563 | 1,998,538 |
Financial Asset, 30 to 59 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 754,017 | 895,722 |
Financial Asset, 30 to 59 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 12,468,116 | 14,419,790 |
Financial Asset, 30 to 59 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 478,125 | 502,733 |
Financial Asset, 30 to 59 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 1,650,416 | 2,251,562 |
Financial Asset, 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | 17,372,237 | 20,068,345 |
Financial Asset, 60 to 89 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 1,170,022 | 1,629,874 |
Financial Asset, 60 to 89 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 445,151 | 653,370 |
Financial Asset, 60 to 89 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 7,087,458 | 8,496,082 |
Financial Asset, 60 to 89 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 341,618 | 223,007 |
Financial Asset, 60 to 89 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 860,961 | 1,340,620 |
Financial Asset, 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | 9,905,210 | 12,342,953 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Live Check Loans | ||
Financing Receivable, Past Due | 2,293,940 | 2,122,317 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Premier Loans | ||
Financing Receivable, Past Due | 1,060,499 | 1,038,398 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Other Consumer Loans | ||
Financing Receivable, Past Due | 14,828,240 | 14,933,605 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real Estate Loans | ||
Financing Receivable, Past Due | 1,332,238 | 1,437,966 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Past Due | 1,969,236 | 2,260,685 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due | $ 21,484,153 | $ 21,792,971 |
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 | Mar. 31, 2021USD ($) | |
Origination year - 2020 | ||
Live Checks, Performing | $ 26,197 | [1] |
Live Checks, Nonperforming | 146 | [1] |
Live Checks | 26,343 | [1] |
Premier Loans, Performing | 17,547 | [1] |
Premier Loans, Nonperforming | 9 | [1] |
Premier Loans | 17,556 | [1] |
Other Consumer Loans, Performing | 135,113 | [1] |
Other Consumer Loans, Nonperforming | 350 | [1] |
Other Consumer Loans | 135,463 | [1] |
Real Estate Loans, Performing | 3,112 | [1] |
Real Estate Loans, Nonperforming | 3 | [1] |
Real Estate Loans | 3,115 | [1] |
Sales Finance Contracts, Performing | 16,421 | [1] |
Sales Finance Contracts, Nonperforming | 50 | [1] |
Sales Finance Contracts | 16,471 | [1] |
Origination year - 2019 | ||
Live Checks, Performing | 61,899 | |
Live Checks, Nonperforming | 3,020 | |
Live Checks | 64,919 | |
Premier Loans, Performing | 49,097 | |
Premier Loans, Nonperforming | 980 | |
Premier Loans | 50,077 | |
Other Consumer Loans, Performing | 320,412 | |
Other Consumer Loans, Nonperforming | 10,971 | |
Other Consumer Loans | 331,383 | |
Real Estate Loans, Performing | 9,967 | |
Real Estate Loans, Nonperforming | 274 | |
Real Estate Loans | 10,241 | |
Sales Finance Contracts, Performing | 60,255 | |
Sales Finance Contracts, Nonperforming | 1,479 | |
Sales Finance Contracts | 61,734 | |
Origination year - 2018 | ||
Live Checks, Performing | 6,577 | |
Live Checks, Nonperforming | 268 | |
Live Checks | 6,845 | |
Premier Loans, Performing | 18,129 | |
Premier Loans, Nonperforming | 554 | |
Premier Loans | 18,683 | |
Other Consumer Loans, Performing | 68,997 | |
Other Consumer Loans, Nonperforming | 3,894 | |
Other Consumer Loans | 72,891 | |
Real Estate Loans, Performing | 8,842 | |
Real Estate Loans, Nonperforming | 381 | |
Real Estate Loans | 9,223 | |
Sales Finance Contracts, Performing | 17,632 | |
Sales Finance Contracts, Nonperforming | 505 | |
Sales Finance Contracts | 18,137 | |
Origination year - 2017 | ||
Live Checks, Performing | 1,090 | |
Live Checks, Nonperforming | 38 | |
Live Checks | 1,128 | |
Premier Loans, Performing | 5,147 | |
Premier Loans, Nonperforming | 146 | |
Premier Loans | 5,293 | |
Other Consumer Loans, Performing | 15,893 | |
Other Consumer Loans, Nonperforming | 1,176 | |
Other Consumer Loans | 17,069 | |
Real Estate Loans, Performing | 6,454 | |
Real Estate Loans, Nonperforming | 257 | |
Real Estate Loans | 6,711 | |
Sales Finance Contracts, Performing | 4,696 | |
Sales Finance Contracts, Nonperforming | 208 | |
Sales Finance Contracts | 4,904 | |
Origination year - 2016 | ||
Live Checks, Performing | 115 | |
Live Checks, Nonperforming | 3 | |
Live Checks | 118 | |
Premier Loans, Performing | 683 | |
Premier Loans, Nonperforming | 13 | |
Premier Loans | 696 | |
Other Consumer Loans, Performing | 2,812 | |
Other Consumer Loans, Nonperforming | 153 | |
Other Consumer Loans | 2,965 | |
Real Estate Loans, Performing | 3,571 | |
Real Estate Loans, Nonperforming | 153 | |
Real Estate Loans | 3,724 | |
Sales Finance Contracts, Performing | 620 | |
Sales Finance Contracts, Nonperforming | 36 | |
Sales Finance Contracts | 656 | |
Origination year - Prior | ||
Live Checks, Performing | 0 | |
Live Checks, Nonperforming | 0 | |
Live Checks | 0 | |
Premier Loans, Performing | 0 | |
Premier Loans, Nonperforming | 0 | |
Premier Loans | 0 | |
Other Consumer Loans, Performing | 566 | |
Other Consumer Loans, Nonperforming | 29 | |
Other Consumer Loans | 595 | |
Real Estate Loans, Performing | 4,324 | |
Real Estate Loans, Nonperforming | 180 | |
Real Estate Loans | 4,504 | |
Sales Finance Contracts, Performing | 90 | |
Sales Finance Contracts, Nonperforming | 7 | |
Sales Finance Contracts | 97 | |
Origination year - Total Net Balance | ||
Live Checks, Performing | 95,878 | |
Live Checks, Nonperforming | 3,475 | |
Live Checks | 99,353 | |
Premier Loans, Performing | 90,603 | |
Premier Loans, Nonperforming | 1,702 | |
Premier Loans | 92,305 | |
Other Consumer Loans, Performing | 543,793 | |
Other Consumer Loans, Nonperforming | 16,573 | |
Other Consumer Loans | 560,366 | |
Real Estate Loans, Performing | 36,270 | |
Real Estate Loans, Nonperforming | 1,248 | |
Real Estate Loans | 37,518 | |
Sales Finance Contracts, Performing | 99,714 | |
Sales Finance Contracts, Nonperforming | 2,285 | |
Sales Finance Contracts | $ 101,999 | |
[1] | Includes loan originated during the three-months ended March 31, 2021. |
Note 2 - Allowance For Credi_11
Note 2 - Allowance For Credit Losses: Allowance for Credit Losses on Financing Receivables (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loans and Leases Receivable, Allowance, Beginning Balance | $ 66,327,674 | $ 53,000,000 |
Provision for Loan, Lease, and Other Losses | 6,593,962 | 18,140,668 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (15,029,442) | (19,048,499) |
Financing Receivable, Allowance for Credit Loss, Recovery | 5,456,303 | 4,724,230 |
Loans and Leases Receivable, Allowance, EndingBalance | 63,348,497 | 58,974,560 |
Impact of adopting ASC 326 | 0 | 2,158,161 |
Financing Receivable, Collectively Evaluated for Impairment | 894,857,186 | $ 834,292,994 |
Live Checks | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 10,765,000 | |
Provision for Loan, Lease, and Other Losses | 928,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (2,847,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 862,000 | |
Loans and Leases Receivable, Allowance, EndingBalance | 9,708,000 | |
Premier Loans | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,838,000 | |
Provision for Loan, Lease, and Other Losses | 728,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (960,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 172,000 | |
Loans and Leases Receivable, Allowance, EndingBalance | 5,778,000 | |
Other Consumer Loans | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 43,833,000 | |
Provision for Loan, Lease, and Other Losses | 4,052,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (9,649,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 4,053,000 | |
Loans and Leases Receivable, Allowance, EndingBalance | 42,289,000 | |
Real Estate Loans | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 267,000 | |
Provision for Loan, Lease, and Other Losses | (4,000) | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (2,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | |
Loans and Leases Receivable, Allowance, EndingBalance | 261,000 | |
Sales Finance Contracts | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 5,625,000 | |
Provision for Loan, Lease, and Other Losses | 890,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,572,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 369,000 | |
Loans and Leases Receivable, Allowance, EndingBalance | 5,312,000 | |
Total | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 66,328,000 | |
Provision for Loan, Lease, and Other Losses | 6,594,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | (15,030,000) | |
Financing Receivable, Allowance for Credit Loss, Recovery | 5,456,000 | |
Loans and Leases Receivable, Allowance, EndingBalance | $ 63,348,000 |
Note 2 - Allowance For Credi_12
Note 2 - Allowance For Credit Losses: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Current 12 months | ||
Financing Receivable, Modifications, Number of Contracts | 3,937 | 5,195 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 14,036,965 | $ 16,534,124 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 13,492,343 | $ 15,670,285 |
Current 12 months | Live Check Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 607 | 786 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 1,135,707 | $ 1,282,032 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 1,105,659 | $ 1,245,551 |
Current 12 months | Premier Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 118 | 164 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 706,551 | $ 1,085,667 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 670,776 | $ 1,058,529 |
Current 12 months | Other Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 2,986 | 3,972 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 10,641,761 | $ 12,983,091 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 10,194,316 | $ 12,224,600 |
Current 12 months | Real Estate Loans | ||
Financing Receivable, Modifications, Number of Contracts | 11 | 9 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 168,829 | $ 111,677 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 168,604 | $ 111,677 |
Current 12 months | Sales Finance Contracts | ||
Financing Receivable, Modifications, Number of Contracts | 215 | 264 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 1,384,117 | $ 1,071,657 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 1,352,988 | $ 1,029,928 |
Previous 12 months | ||
Financing Receivable, Modifications, Number of Contracts | 1,155 | 2,021 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 2,271,304 | $ 4,080,456 |
Previous 12 months | Live Check Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 241 | 427 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 437,937 | $ 617,260 |
Previous 12 months | Premier Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 31 | 53 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 193,264 | $ 327,474 |
Previous 12 months | Other Consumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 841 | |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 1,948,819 | |
Previous 12 months | Real Estate Loans | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 0 | $ 0 |
Previous 12 months | Sales Finance Contracts | ||
Financing Receivable, Modifications, Number of Contracts | 42 | 89 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 141,284 | $ 209,611 |
Previous 12 months | Cosumer Loans | ||
Financing Receivable, Modifications, Number of Contracts | 1,452 | |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 2,926,111 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
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 | $ 506,721 | $ 1,022 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 209,332,484 | $ 204,199,851 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 222,491,465 | 220,663,305 |
Held to Maturity, at amortized cost | 378,604 | 379,002 |
Debt Securities, Held-to-maturity, Fair Value | 377,280 | 380,850 |
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 | 471,882 | 391,113 |
Available-for-sale Securities, Amortized Cost Basis | 209,462,800 | 204,330,167 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 222,963,347 | 221,054,418 |
Held to Maturity, at amortized cost | $ 378,604 | $ 379,002 |
Note 4 - Fair Value_ Fair Val_2
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Corporate Debt Securities | ||
Investments, Fair Value Disclosure | $ 471,882 | $ 391,113 |
US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 222,491,465 | 220,663,305 |
Investments, Fair Value Disclosure | 222,963,347 | 221,054,418 |
Fair Value, Inputs, Level 1 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 471,882 | 391,113 |
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 | 471,882 | 391,113 |
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 | 222,491,465 | 220,663,305 |
Fair Value, Inputs, Level 2 | ||
Investments, Fair Value Disclosure | 222,491,465 | 220,663,305 |
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 |
Mar. 31, 2021USD ($) | |
Details | |
Operating lease expense | $ 1,839,767 |
Operating cash flows from operating leases | $ 1,804,066 |
Weighted-average remaining lease term –operating leases (in years) | 7.09 |
Weighted-average discount rate –operating leases | 4.74% |
Remainder of 2021 | $ 5,393,948 |
2022 | 6,738,100 |
2023 | 5,854,120 |
2024 | 5,064,063 |
2025 | 4,712,111 |
2026 and beyond | 13,221,705 |
Lessee, Operating Lease, Liability, to be Paid | 40,984,047 |
Less: Interest | (5,974,875) |
Present Value of Lease Liability | $ 35,009,172 |
Note 7 - Income Taxes (Details)
Note 7 - Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Details | ||
Effective Income Tax Rate Reconciliation, Percent | 7.00% | 33.00% |
Note 8 - Credit Agreement (Deta
Note 8 - Credit Agreement (Details) - Wells Fargo Preferred Capital, Inc. - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
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. | |
Line of Credit Facility, Current Borrowing Capacity | $ 150.9 | $ 111.1 |
Line of Credit Facility, Interest Rate at Period End | 3.50% | 3.50% |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details) | Mar. 31, 2021USD ($) |
Details | |
Balance on commercial loan (including principal and accrued interest) | $ 1.8 |
Balance on loan for premium payments (including principal and accrued interest) | $ 0.4 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Division I | ||
Segment Reporting Information, Revenue for Reportable Segment | $ 9,707 | $ 10,210 |
Profit (Loss) | 3,591 | 3,253 |
Segment Reporting Information, Net Assets | 102,408 | |
Segment Reporting Information, Net Assets | 106,982 | |
Division II | ||
Segment Reporting Information, Revenue for Reportable Segment | 9,502 | 9,181 |
Profit (Loss) | 4,841 | 3,754 |
Segment Reporting Information, Net Assets | 110,430 | |
Segment Reporting Information, Net Assets | 112,168 | |
Division III | ||
Segment Reporting Information, Revenue for Reportable Segment | 10,244 | 10,163 |
Profit (Loss) | 5,139 | 4,183 |
Segment Reporting Information, Net Assets | 113,042 | |
Segment Reporting Information, Net Assets | 117,199 | |
Division IV | ||
Segment Reporting Information, Revenue for Reportable Segment | 10,475 | 9,791 |
Profit (Loss) | 4,519 | 3,193 |
Segment Reporting Information, Net Assets | 131,431 | |
Segment Reporting Information, Net Assets | 136,558 | |
Division V | ||
Segment Reporting Information, Revenue for Reportable Segment | 7,223 | 6,560 |
Profit (Loss) | 2,971 | 1,997 |
Segment Reporting Information, Net Assets | 75,114 | |
Segment Reporting Information, Net Assets | 77,143 | |
Division VII | ||
Segment Reporting Information, Revenue for Reportable Segment | 6,697 | 6,304 |
Profit (Loss) | 1,996 | 1,296 |
Segment Reporting Information, Net Assets | 79,445 | |
Segment Reporting Information, Net Assets | 82,332 | |
Division VIII | ||
Segment Reporting Information, Revenue for Reportable Segment | 5,977 | 5,717 |
Profit (Loss) | 1,644 | 1,403 |
Segment Reporting Information, Net Assets | 79,430 | |
Segment Reporting Information, Net Assets | 69,344 | |
Division IX | ||
Segment Reporting Information, Revenue for Reportable Segment | 8,528 | 8,506 |
Profit (Loss) | 3,506 | 2,983 |
Segment Reporting Information, Net Assets | 99,551 | |
Segment Reporting Information, Net Assets | 103,048 | |
Segment Reporting Information, Revenue for Reportable Segment | 68,353 | 66,432 |
Profit (Loss) | 28,207 | 22,062 |
Segment Reporting Information, Net Assets | 790,851 | |
Segment Reporting Information, Net Assets | 804,774 | |
Reconciliation of Revenues | ||
Total revenues from reportable divisions | 68,353 | 66,432 |
Corporate finance charges earned not allocated to divisions | 22 | 31 |
Corporate investment income earned not allocated to divisions | 2,043 | 1,780 |
Timing difference of insurance income allocation to divisions | 2,846 | 2,299 |
Other revenue not allocated to divisions | 2 | 2 |
Consolidated Revenues | 73,266 | 70,544 |
Profit per division | 28,207 | 22,062 |
Corporate earnings not allocated | 4,913 | 4,112 |
Corporate expenses not allocated | (21,112) | (23,339) |
Consolidated Income Before Income Taxes | $ 12,008 | $ 2,835 |