UTAH | 87-0345941 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
5300 South 360 West, Suite 250, Salt Lake City, Utah | 84123 |
(Address of principal executive offices) | (Zip Code) |
(801) 264-1060 (Registrant's telephone number, including area code) |
Large accelerated filer [ ] | Accelerated filer [ ] | |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [X] | |
Emerging growth company [ ] |
Page No. | ||
Part I - Financial Information | ||
Item 1. | Financial Statements | |
Condensed Consolidated Balance Sheets as of | 3-4 | |
Condensed Consolidated Statements of Earnings for the Three and | 5 | |
Condensed Consolidated Statements of Comprehensive Income for the Three and | 6 | |
Condensed Consolidated Statements of Stockholders' Equity as of | ||
Condensed Consolidated Statements of Cash Flows for the | ||
Notes to Condensed Consolidated Financial Statements (unaudited) | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 48 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 54 |
Item 4. | Controls and Procedures | 54 |
Part II - Other Information | ||
Item 1. | Legal Proceedings | 54 |
Item 1A. | Risk Factors | 54 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 54 |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | 55 |
Item 6. | Exhibits | 56 |
Signature Page |
Assets | June 30 2018 (Unaudited) | December 31 2017 | September 30 2018 (Unaudited) | December 31 2017 | ||||||||||||
Investments: | ||||||||||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 218,409,812 | $ | 228,397,623 | $ | 230,386,875 | $ | 228,397,623 | ||||||||
Equity securities at estimated fair value | 6,078,767 | 6,037,855 | 5,988,918 | 6,037,855 | ||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,563,664 and $1,768,796 for 2018 and 2017) | 193,068,837 | 204,210,885 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $16,240,453 and $18,788,869 for 2018 and 2017) | 124,578,839 | 141,298,706 | ||||||||||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,011,924 and $846,641 for 2018 and 2017) | 44,793,898 | 45,895,472 | ||||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,470,158 and $1,768,796 for 2018 and 2017) | 181,381,522 | 204,210,885 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $16,403,949 and $18,788,869 for 2018 and 2017) | 119,076,609 | 141,298,706 | ||||||||||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,046,840 and $846,641 for 2018 and 2017) | 44,038,625 | 45,895,472 | ||||||||||||||
Accrued investment income | 3,968,447 | 3,644,077 | 3,751,942 | 3,644,077 | ||||||||||||
Total investments | 590,898,600 | 629,484,618 | 584,624,491 | 629,484,618 | ||||||||||||
Cash and cash equivalents | 118,705,581 | 45,315,661 | 137,106,471 | 45,315,661 | ||||||||||||
Loans held for sale at estimated fair value | 170,538,537 | 133,414,188 | 165,507,394 | 133,414,188 | ||||||||||||
Receivables (net of allowances for doubtful accounts of $1,586,009 and $1,544,518 for 2018 and 2017) | 19,524,786 | 10,443,869 | ||||||||||||||
Restricted assets (including $809,002 and $809,958 for 2018 and 2017 at estimated fair value) | 11,354,894 | 11,830,621 | ||||||||||||||
Cemetery perpetual care trust investments (including $683,233 and $682,315 for 2018 and 2017 at estimated fair value) | 3,973,545 | 4,623,563 | ||||||||||||||
Receivables (net of allowances for doubtful accounts of $1,614,057 and $1,544,518 for 2018 and 2017) | 8,898,086 | 10,443,869 | ||||||||||||||
Restricted assets (including $810,056 and $809,958 for 2018 and 2017 at estimated fair value) | 12,226,773 | 11,830,621 | ||||||||||||||
Cemetery perpetual care trust investments (including $677,699 and $682,315 for 2018 and 2017 at estimated fair value) | 4,058,014 | 4,623,563 | ||||||||||||||
Receivable from reinsurers | 13,256,173 | 13,394,603 | 10,717,118 | 13,394,603 | ||||||||||||
Cemetery land and improvements | 9,906,590 | 9,942,933 | 9,885,331 | 9,942,933 | ||||||||||||
Deferred policy and pre-need contract acquisition costs | 85,701,658 | 80,625,304 | 87,899,386 | 80,625,304 | ||||||||||||
Mortgage servicing rights, net | 21,117,937 | 21,376,937 | 20,875,905 | 21,376,937 | ||||||||||||
Property and equipment, net | 7,307,352 | 8,069,380 | 7,206,802 | 8,069,380 | ||||||||||||
Value of business acquired | 6,159,749 | 6,588,759 | 5,963,308 | 6,588,759 | ||||||||||||
Goodwill | 2,765,570 | 2,765,570 | 2,765,570 | 2,765,570 | ||||||||||||
Other | 6,538,475 | 4,297,048 | 6,514,889 | 4,297,048 | ||||||||||||
Total Assets | $ | 1,067,749,447 | $ | 982,173,054 | $ | 1,064,249,538 | $ | 982,173,054 |
June 30 2018 (Unaudited) | December 31 2017 | September 30 2018 (Unaudited) | December 31 2017 | |||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Future policy benefits and unpaid claims | $ | 610,717,068 | $ | 604,746,951 | $ | 616,421,261 | $ | 604,746,951 | ||||||||
Unearned premium reserve | 4,058,696 | 4,222,410 | 3,989,237 | 4,222,410 | ||||||||||||
Bank and other loans payable | 208,777,621 | 157,450,925 | 196,422,645 | 157,450,925 | ||||||||||||
Deferred pre-need cemetery and mortuary contract revenues | 12,337,571 | 12,873,068 | 12,442,497 | 12,873,068 | ||||||||||||
Cemetery perpetual care obligation | 3,761,500 | 3,710,740 | 3,793,575 | 3,710,740 | ||||||||||||
Accounts payable | 4,354,663 | 3,613,100 | 3,243,526 | 3,613,100 | ||||||||||||
Other liabilities and accrued expenses | 31,786,281 | 29,655,087 | 33,352,301 | 29,655,087 | ||||||||||||
Income taxes | 22,370,243 | 17,332,783 | 22,552,988 | 17,332,783 | ||||||||||||
Total liabilities | 898,163,643 | 833,605,064 | 892,218,030 | 833,605,064 | ||||||||||||
Stockholders' Equity | ||||||||||||||||
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 14,569,509 shares in 2018 and 14,535,577 shares in 2017 | 29,139,018 | 29,071,154 | ||||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 14,573,658 shares in 2018 and 14,535,577 shares in 2017 | 29,147,316 | 29,071,154 | ||||||||||||||
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,089,184 shares in 2018 and 2,089,374 shares in 2017 | 4,178,368 | 4,178,748 | 4,178,368 | 4,178,748 | ||||||||||||
Additional paid-in capital | 38,476,728 | 38,125,042 | 38,711,180 | 38,125,042 | ||||||||||||
Accumulated other comprehensive income, net of taxes | (1,448 | ) | 603,170 | (687 | ) | 603,170 | ||||||||||
Retained earnings | 98,279,383 | 77,520,951 | 100,293,129 | 77,520,951 | ||||||||||||
Treasury stock at cost - 397,022 Class A shares in 2018 and 537,203 Class A shares in 2017 | (486,245 | ) | (931,075 | ) | ||||||||||||
Treasury stock at cost - 328,650 Class A shares in 2018 and 537,203 Class A shares in 2017 | (297,798 | ) | (931,075 | ) | ||||||||||||
Total stockholders' equity | 169,585,804 | 148,567,990 | 172,031,508 | 148,567,990 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,067,749,447 | $ | 982,173,054 | $ | 1,064,249,538 | $ | 982,173,054 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Insurance premiums and other considerations | $ | 19,190,831 | $ | 17,498,500 | $ | 38,001,189 | $ | 34,855,624 | $ | 18,639,401 | $ | 17,489,560 | $ | 56,640,590 | $ | 52,345,184 | ||||||||||||||||
Net investment income | 9,741,965 | 8,322,307 | 19,816,396 | 17,338,683 | 9,641,496 | 8,220,430 | 29,457,892 | 25,559,113 | ||||||||||||||||||||||||
Net mortuary and cemetery sales | 3,551,109 | 3,280,375 | 6,783,838 | 6,639,348 | 3,646,290 | 2,717,311 | 10,430,128 | 9,356,659 | ||||||||||||||||||||||||
Gains on investments and other assets | 2,328,229 | 887,402 | 24,349,168 | 1,032,732 | 1,022,427 | (319,666 | ) | 25,371,595 | 713,066 | |||||||||||||||||||||||
Other than temporary impairments on investments | - | (266,227 | ) | - | (318,366 | ) | - | (163,375 | ) | - | (481,741 | ) | ||||||||||||||||||||
Mortgage fee income | 31,709,080 | 41,514,401 | 57,169,240 | 80,489,161 | 31,664,704 | 41,597,573 | 88,833,944 | 122,086,734 | ||||||||||||||||||||||||
Other | 2,343,912 | 2,075,836 | 4,821,404 | 4,104,709 | 2,608,775 | 2,288,982 | 7,430,179 | 6,393,691 | ||||||||||||||||||||||||
Total revenues | 68,865,126 | 73,312,594 | 150,941,235 | 144,141,891 | 67,223,093 | 71,830,815 | 218,164,328 | 215,972,706 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Death benefits | 9,355,157 | 8,547,019 | 18,963,255 | 17,341,617 | 8,616,285 | 8,772,153 | 27,579,540 | 26,113,770 | ||||||||||||||||||||||||
Surrenders and other policy benefits | 695,906 | 680,117 | 1,506,034 | 1,537,648 | 692,445 | 547,648 | 2,198,479 | 2,085,296 | ||||||||||||||||||||||||
Increase in future policy benefits | 6,149,027 | 5,366,096 | 11,733,963 | 10,934,138 | 6,686,536 | 6,735,141 | 18,420,499 | 17,669,279 | ||||||||||||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 2,110,782 | 1,768,769 | 5,220,715 | 4,032,808 | 2,746,288 | 2,238,955 | 7,967,003 | 6,271,763 | ||||||||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||||||||||
Commissions | 14,459,722 | 18,522,758 | 25,742,123 | 34,877,806 | 13,619,192 | 18,999,583 | 39,361,315 | 53,877,389 | ||||||||||||||||||||||||
Personnel | 16,905,714 | 18,105,954 | 33,472,402 | 36,695,641 | 17,075,236 | 17,059,279 | 50,547,638 | 53,754,920 | ||||||||||||||||||||||||
Advertising | 1,194,086 | 1,485,604 | 2,223,677 | 2,796,278 | 1,423,933 | 1,611,599 | 3,647,610 | 4,407,877 | ||||||||||||||||||||||||
Rent and rent related | 1,929,133 | 2,212,037 | 3,892,483 | 4,436,033 | 1,913,813 | 2,257,259 | 5,806,296 | 6,693,292 | ||||||||||||||||||||||||
Depreciation on property and equipment | 491,626 | 581,026 | 968,657 | 1,206,838 | 457,430 | 517,041 | 1,426,087 | 1,723,879 | ||||||||||||||||||||||||
Costs related to funding mortgage loans | 2,045,659 | 2,286,107 | 3,414,940 | 4,505,756 | 1,732,617 | 2,809,471 | 5,147,557 | 7,315,227 | ||||||||||||||||||||||||
Other | 7,135,844 | 7,845,307 | 13,946,168 | 15,191,800 | 7,616,264 | 7,035,570 | 21,562,432 | 22,227,370 | ||||||||||||||||||||||||
Interest expense | 1,679,841 | 1,385,354 | 3,441,518 | 2,639,393 | 1,855,548 | 1,655,870 | 5,297,066 | 4,295,263 | ||||||||||||||||||||||||
Cost of goods and services sold-mortuaries and cemeteries | 550,398 | 532,147 | 1,065,888 | 1,054,066 | 575,708 | 453,229 | 1,641,596 | 1,507,295 | ||||||||||||||||||||||||
Total benefits and expenses | 64,702,895 | 69,318,295 | 125,591,823 | 137,249,822 | 65,011,295 | 70,692,798 | 190,603,118 | 207,942,620 | ||||||||||||||||||||||||
Earnings before income taxes | 4,162,231 | 3,994,299 | 25,349,412 | 6,892,069 | 2,211,798 | 1,138,017 | 27,561,210 | 8,030,086 | ||||||||||||||||||||||||
Income tax expense | (924,014 | ) | (1,508,435 | ) | (5,185,272 | ) | (2,546,205 | ) | (198,052 | ) | (41,179 | ) | (5,383,324 | ) | (2,587,384 | ) | ||||||||||||||||
Net earnings | $ | 3,238,217 | $ | 2,485,864 | $ | 20,164,140 | $ | 4,345,864 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Net earnings per Class A Equivalent common share (1) | $ | 0.20 | $ | 0.16 | $ | 1.24 | $ | 0.27 | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | ||||||||||||||||
Net earnings per Class A Equivalent common share-assuming dilution (1) | $ | 0.20 | $ | 0.15 | $ | 1.23 | $ | 0.27 | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 | ||||||||||||||||
Weighted-average Class A equivalent common share outstanding (1) | 16,252,998 | 15,931,031 | 16,209,987 | 15,879,461 | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | ||||||||||||||||||||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 16,487,068 | 16,278,148 | 16,417,351 | 16,241,068 | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Net earnings | $ | 3,238,217 | $ | 2,485,864 | $ | 20,164,140 | $ | 4,345,864 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) on equity securities | - | (67,708 | ) | - | (37,838 | ) | ||||||||||||||||||||||||||
Unrealized gains on equity securities | - | 144,381 | - | 106,543 | ||||||||||||||||||||||||||||
Unrealized gains on derivative instruments | - | 1,021 | - | 2,616 | - | 554 | - | 3,170 | ||||||||||||||||||||||||
Foreign currency translation adjustments | (1,929 | ) | - | (1,929 | ) | - | 1,013 | - | (916 | ) | - | |||||||||||||||||||||
Other comprehensive income, before income tax | (1,929 | ) | (66,687 | ) | (1,929 | ) | (35,222 | ) | 1,013 | 144,935 | (916 | ) | 109,713 | |||||||||||||||||||
Income tax expense | 481 | 22,786 | 481 | 12,613 | (252 | ) | (50,517 | ) | 229 | (37,904 | ) | |||||||||||||||||||||
Other comprehensive income, net of income tax | (1,448 | ) | (43,901 | ) | (1,448 | ) | (22,609 | ) | 761 | 94,418 | (687 | ) | 71,809 | |||||||||||||||||||
Comprehensive income | $ | 3,236,769 | $ | 2,441,963 | $ | 20,162,692 | $ | 4,323,255 | $ | 2,014,507 | $ | 1,191,256 | $ | 22,177,199 | $ | 5,514,511 |
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 27,638,012 | $ | 3,804,458 | $ | 34,813,246 | $ | 264,822 | $ | 67,409,204 | $ | (1,370,611 | ) | $ | 132,559,131 | |||||||||||||||||||||||||||||||||||||||||
January 1, 2018 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 16,925,923 | - | 16,925,923 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,087 | - | - | - | 58,087 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 88,964 | - | - | 222,410 | 311,374 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 3,520 | (4 | ) | 5,362 | - | (8,878 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | 29,138,642 | 4,178,744 | 38,255,340 | - | 95,041,166 | (708,665 | ) | 165,905,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 3,238,217 | - | 3,238,217 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (1,448 | ) | - | (1,448 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,053 | - | - | - | 58,053 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 163,335 | - | - | 222,420 | 385,755 | |||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 376 | (376 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | 29,139,018 | 4,178,368 | 38,476,728 | (1,448 | ) | 98,279,383 | (486,245 | ) | 169,585,804 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 4,345,864 | - | 4,345,864 | - | - | - | - | 2,013,746 | - | 2,013,746 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | (22,609 | ) | - | - | (22,609 | ) | - | - | - | 761 | - | 761 | |||||||||||||||||||||||||||||||||||||||||
Grant of stock options | - | - | 203,312 | - | - | - | 203,312 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | - | - | 58,691 | - | - | - | 58,691 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | 8,298 | - | 7,261 | - | - | - | 15,559 | |||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 373,385 | - | - | 351,157 | 724,542 | - | - | 168,500 | - | - | 242,954 | 411,454 | ||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | - | - | - | - | - | (54,507 | ) | (54,507 | ) | ||||||||||||||||||||||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,185,487 | $ | 242,213 | $ | 71,751,784 | $ | (1,204,924 | ) | $ | 137,624,770 | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 29,071,154 | $ | 4,178,748 | $ | 38,125,042 | $ | 603,170 | $ | 77,520,951 | $ | (931,075 | ) | $ | 148,567,990 | |||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) | - | - | - | (603,170 | ) | 603,170 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | - | - | 20,164,140 | - | 20,164,140 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (1,448 | ) | - | (1,448 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | - | - | 116,140 | - | - | - | 116,140 | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 63,968 | - | (22,115 | ) | - | - | - | 41,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury stock | - | - | 252,299 | - | - | 444,830 | 697,129 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock dividends | 3,520 | (4 | ) | 5,362 | - | (8,878 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion Class C to Class A | 376 | (376 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 29,139,018 | $ | 4,178,368 | $ | 38,476,728 | $ | (1,448 | ) | $ | 98,279,383 | $ | (486,245 | ) | $ | 169,585,804 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | $ | 29,147,316 | $ | 4,178,368 | $ | 38,711,180 | $ | (687 | ) | $ | 100,293,129 | $ | (297,798 | ) | $ | 172,031,508 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||
Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Treasury Stock | Total | ||||||||||||||||||||||
January 1, 2017 | $ | 27,638,012 | $ | 3,804,458 | $ | 34,813,246 | $ | 264,822 | $ | 67,409,204 | $ | (1,370,611 | ) | $ | 132,559,131 | |||||||||||||
Net earnings | - | - | - | - | 1,860,000 | - | 1,860,000 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 21,292 | - | - | 21,292 | |||||||||||||||||||||
Stock-based compensation expense | - | - | 101,996 | - | - | - | 101,996 | |||||||||||||||||||||
Sale of treasury stock | - | - | 178,002 | - | - | 146,065 | 324,067 | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | - | (185,470 | ) | (185,470 | ) | |||||||||||||||||||
Stock dividends | 930 | 4 | 2,350 | - | (3,284 | ) | - | - | ||||||||||||||||||||
Conversion Class C to Class A | 1,214 | (1,214 | ) | - | - | - | - | - | ||||||||||||||||||||
March 31, 2017 | 27,640,156 | 3,803,248 | 35,095,594 | 286,114 | 69,265,920 | (1,410,016 | ) | 134,681,016 | ||||||||||||||||||||
Net earnings | - | - | - | - | 2,485,864 | - | 2,485,864 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | (43,901 | ) | - | - | (43,901 | ) | |||||||||||||||||||
Stock-based compensation expense | - | - | 101,316 | - | - | - | 101,316 | |||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | ||||||||||||||||||||
Sale of treasury stock | - | - | 195,383 | - | - | 205,092 | 400,475 | |||||||||||||||||||||
June 30, 2017 | 27,640,158 | 4,010,052 | 35,185,487 | 242,213 | 71,751,784 | (1,204,924 | ) | 137,624,770 | ||||||||||||||||||||
Net earnings | - | - | - | - | 1,096,838 | - | 1,096,838 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 94,418 | - | - | 94,418 | |||||||||||||||||||||
Stock-based compensation expense | - | - | 102,429 | - | - | - | 102,429 | |||||||||||||||||||||
Sale of treasury stock | - | - | 202,111 | - | - | 223,315 | 425,426 | |||||||||||||||||||||
September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 |
Six Months Ended June 30 | Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (27,786,532 | ) | $ | 20,042,049 | $ | (10,250,549 | ) | $ | 6,030,453 | ||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of fixed maturity securities | (11,414,568 | ) | (14,739,655 | ) | (29,074,605 | ) | (59,325,291 | ) | ||||||||
Calls and maturities of fixed maturity securities | 10,740,357 | 5,780,429 | 26,356,188 | 11,933,573 | ||||||||||||
Purchases of equity securities | (2,124,482 | ) | (4,662,660 | ) | (2,356,207 | ) | (5,126,062 | ) | ||||||||
Sales of equity securities | 1,852,049 | 8,728,231 | 2,478,051 | 9,153,786 | ||||||||||||
Purchases of short-term investments | - | (10,545,721 | ) | - | (27,483,124 | ) | ||||||||||
Sales of short-term investments | - | 14,657,281 | - | 37,212,174 | ||||||||||||
Net changes in restricted assets | 165,631 | (172,770 | ) | 121,418 | (234,807 | ) | ||||||||||
Net changes in perpetual care trusts | 1,670,976 | (162,966 | ) | 1,664,215 | (195,340 | ) | ||||||||||
Mortgage loans, other investments and policy loans made | (251,952,076 | ) | (225,709,097 | ) | (376,549,887 | ) | (340,424,956 | ) | ||||||||
Payments received for mortgage loans, other investments and policy loans | 266,703,802 | 243,249,202 | 403,724,354 | 344,278,996 | ||||||||||||
Purchase of property and equipment | (662,579 | ) | (396,225 | ) | (1,020,257 | ) | (508,846 | ) | ||||||||
Sale of property and equipment | 2,011,700 | 9,973 | 2,014,704 | 9,977 | ||||||||||||
Purchase of real estate | (21,152,074 | ) | (9,792,553 | ) | (22,399,516 | ) | (12,474,490 | ) | ||||||||
Sale of real estate | 59,629,788 | 6,955,785 | 65,457,047 | 8,612,307 | ||||||||||||
Cash paid for purchase of subsidiaries, net of cash acquired | (3,405,783 | ) | - | (3,405,783 | ) | - | ||||||||||
Net cash provided by investing activities | 52,062,741 | 13,199,254 | ||||||||||||||
Net cash provided by (used in) investing activities | 67,009,722 | (34,572,103 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Investment contract receipts | 5,727,714 | 6,619,919 | 8,833,639 | 9,457,285 | ||||||||||||
Investment contract withdrawals | (7,755,515 | ) | (8,281,872 | ) | (11,667,269 | ) | (11,522,652 | ) | ||||||||
Proceeds from stock options exercised | 41,853 | - | 57,412 | - | ||||||||||||
Purchase of treasury stock | - | (185,470 | ) | (54,507 | ) | (185,470 | ) | |||||||||
Repayment of bank loans | (27,614,318 | ) | (1,450,283 | ) | (27,873,253 | ) | (2,142,382 | ) | ||||||||
Proceeds from borrowing on bank loans | 11,049,325 | 13,785,915 | 11,455,289 | 16,729,056 | ||||||||||||
Net change in warehouse line borrowings | 21,633,787 | (891,035 | ) | 14,131,782 | 16,022,738 | |||||||||||
Net change in line of credit borrowings | 46,250,000 | - | 41,250,000 | - | ||||||||||||
Net cash provided by financing activities | 49,332,846 | 9,597,174 | 36,133,093 | 28,358,575 | ||||||||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 73,609,055 | 42,838,477 | 92,892,266 | (183,075 | ) | |||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 54,501,923 | 46,942,293 | 54,501,923 | 46,942,293 | ||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 128,110,978 | $ | 89,780,770 | $ | 147,394,189 | $ | 46,759,218 | ||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||
Cash paid (received) during the year for: | ||||||||||||||||
Interest (net of amount capitalized) | $ | 3,401,874 | $ | 2,617,241 | $ | 5,206,262 | $ | 4,188,579 | ||||||||
Income taxes (net of refunds) | 147,327 | (804,859 | ) | 162,327 | (788,601 | ) | ||||||||||
Non Cash Operating, Investing and Financing Activities: | ||||||||||||||||
Receivable for maturities of fixed maturity securities | $ | 10,000,000 | $ | - | ||||||||||||
Benefit plans funded with treasury stock | 697,129 | 724,542 | $ | 1,108,583 | $ | 1,149,968 | ||||||||||
Accrued real estate construction costs and retainage | 681,167 | 3,013,225 | ||||||||||||||
Mortgage loans foreclosed into real estate | 565,341 | 1,345,213 | 670,601 | 1,576,196 | ||||||||||||
Transfer of loans held for sale to mortgage loans held for investment | 139,464 | 5,032,147 | 139,464 | 5,032,147 | ||||||||||||
Accrued real estate construction costs and retainage | 17,433 | 1,932,790 | ||||||||||||||
Six Months Ended June 30 | Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash and cash equivalents | $ | 118,705,581 | $ | 82,258,418 | $ | 137,106,471 | $ | 38,593,462 | ||||||||
Restricted assets | 7,886,262 | 6,681,375 | 8,717,416 | 7,263,952 | ||||||||||||
Cemetery perpetual care trust investments | 1,519,135 | 840,977 | 1,570,302 | 901,804 | ||||||||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 128,110,978 | $ | 89,780,770 | $ | 147,394,189 | $ | 46,759,218 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 44,290,515 | $ | 161,391 | $ | (1,053,070 | ) | $ | 43,398,836 | $ | 53,683,435 | $ | 142,299 | $ | (1,248,029 | ) | $ | 52,577,705 | ||||||||||||||
Obligations of states and political subdivisions | 6,715,254 | 56,035 | (154,442 | ) | 6,616,847 | 6,987,405 | 40,224 | (190,262 | ) | 6,837,367 | ||||||||||||||||||||||
Corporate securities including public utilities | 154,368,566 | 8,196,301 | (2,033,410 | ) | 160,531,457 | 155,372,733 | 7,544,943 | (2,299,844 | ) | 160,617,832 | ||||||||||||||||||||||
Mortgage-backed securities | 12,411,842 | 199,574 | (295,001 | ) | 12,316,415 | 13,731,279 | 135,074 | (323,564 | ) | 13,542,789 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 36,767 | (299 | ) | 660,103 | 612,023 | 36,437 | - | 648,460 | |||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 218,409,812 | $ | 8,650,068 | $ | (3,536,222 | ) | $ | 223,523,658 | $ | 230,386,875 | $ | 7,898,977 | $ | (4,061,699 | ) | $ | 234,224,153 | ||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,267,290 | $ | 557,705 | $ | (746,228 | ) | $ | 6,078,767 | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | ||||||||||||||
Total equity securities at estimated fair value | $ | 6,267,290 | $ | 557,705 | $ | (746,228 | ) | $ | 6,078,767 | $ | 5,891,712 | $ | 786,960 | $ | (689,754 | ) | $ | 5,988,918 | ||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 87,960,136 | $ | 79,930,807 | ||||||||||||||||||||||||||||
Residential construction | 63,461,371 | 71,330,891 | ||||||||||||||||||||||||||||||
Commercial | 44,682,145 | 32,869,447 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (1,471,151 | ) | (1,279,465 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,563,664 | ) | (1,470,158 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 193,068,837 | $ | 181,381,522 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 31,111,447 | $ | 26,988,179 | ||||||||||||||||||||||||||||
Commercial | 93,467,392 | 92,088,430 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 124,578,839 | $ | 119,076,609 | ||||||||||||||||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,310,614 | $ | 6,389,122 | ||||||||||||||||||||||||||||
Insurance assignments | 32,705,857 | 32,166,750 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 2,508,700 | 2,308,700 | ||||||||||||||||||||||||||||||
Other investments | 4,280,651 | 4,220,893 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (1,011,924 | ) | (1,046,840 | ) | ||||||||||||||||||||||||||||
Total policy loans and other investments | $ | 44,793,898 | ||||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 44,038,625 | ||||||||||||||||||||||||||||||
Accrued investment income | $ | 3,968,447 | $ | 3,751,942 | ||||||||||||||||||||||||||||
Total investments | $ | 590,898,600 | $ | 584,624,491 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 54,077,069 | $ | 211,824 | $ | (579,423 | ) | $ | 53,709,470 | $ | 54,077,069 | $ | 211,824 | $ | (579,423 | ) | $ | 53,709,470 | ||||||||||||||
Obligations of states and political subdivisions | 5,843,176 | 112,372 | (71,013 | ) | 5,884,535 | 5,843,176 | 112,372 | (71,013 | ) | 5,884,535 | ||||||||||||||||||||||
Corporate securities including public utilities | 158,350,727 | 14,336,452 | (1,007,504 | ) | 171,679,675 | 158,350,727 | 14,336,452 | (1,007,504 | ) | 171,679,675 | ||||||||||||||||||||||
Mortgage-backed securities | 9,503,016 | 210,652 | (162,131 | ) | 9,551,537 | 9,503,016 | 210,652 | (162,131 | ) | 9,551,537 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 49,748 | (191 | ) | 673,192 | 623,635 | 49,748 | (191 | ) | 673,192 | ||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 228,397,623 | $ | 14,921,048 | $ | (1,820,262 | ) | $ | 241,498,409 | $ | 228,397,623 | $ | 14,921,048 | $ | (1,820,262 | ) | $ | 241,498,409 | ||||||||||||||
Equity securities at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | ||||||||||||||
Total equity securities at estimated fair value | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | $ | 6,002,931 | $ | 667,593 | $ | (632,669 | ) | $ | 6,037,855 | ||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 102,527,111 | $ | 102,527,111 | ||||||||||||||||||||||||||||
Residential construction | 50,157,533 | 50,157,533 | ||||||||||||||||||||||||||||||
Commercial | 54,954,865 | 54,954,865 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (1,659,828 | ) | (1,659,828 | ) | ||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,768,796 | ) | (1,768,796 | ) | ||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 204,210,885 | $ | 204,210,885 | ||||||||||||||||||||||||||||
Real estate held for investment net of accumlated depreciation: | ||||||||||||||||||||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 68,329,917 | $ | 68,329,917 | ||||||||||||||||||||||||||||
Commercial | 72,968,789 | 72,968,789 | ||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 141,298,706 | $ | 141,298,706 | ||||||||||||||||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||||||||||||||||||
Other investments and policy loans at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,531,352 | $ | 6,531,352 | ||||||||||||||||||||||||||||
Insurance assignments | 36,301,739 | 36,301,739 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 689,400 | 689,400 | ||||||||||||||||||||||||||||||
Other investments | 3,219,622 | 3,219,622 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (846,641 | ) | (846,641 | ) | ||||||||||||||||||||||||||||
Total policy loans and other investments | $ | 45,895,472 | ||||||||||||||||||||||||||||||
Total other investments and policy loans | $ | 45,895,472 | ||||||||||||||||||||||||||||||
Accrued investment income | $ | 3,644,077 | $ | 3,644,077 | ||||||||||||||||||||||||||||
Total investments | $ | 629,484,618 | $ | 629,484,618 |
Unrealized Losses for Less than Twelve Months | Fair Value | Unrealized Losses for More than Twelve Months | Fair Value | Total Unrealized Loss | Fair Value | Unrealized Losses for Less than Twelve Months | Fair Value | Unrealized Losses for More than Twelve Months | Fair Value | Total Unrealized Loss | Fair Value | |||||||||||||||||||||||||||||||||||||
At June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies | $ | 980,567 | $ | 39,678,285 | $ | 72,503 | $ | 2,310,384 | $ | 1,053,070 | $ | 41,988,669 | $ | 104,070 | $ | 9,996,147 | $ | 1,143,956 | $ | 41,197,425 | $ | 1,248,029 | $ | 51,193,572 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 27,244 | 2,178,208 | 127,198 | 2,676,232 | 154,442 | 4,854,440 | 46,178 | 2,447,348 | 144,084 | 2,644,649 | 190,262 | 5,091,997 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,474,703 | 52,689,981 | 558,707 | 9,403,585 | 2,033,410 | 62,093,566 | 1,738,234 | 59,982,599 | 561,610 | 8,915,794 | 2,299,844 | 68,898,393 | ||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 91,703 | 2,719,836 | 203,298 | 2,025,315 | 295,001 | 4,745,151 | 51,253 | 6,780,302 | 272,311 | 2,352,453 | 323,564 | 9,132,755 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 299 | 11,612 | - | - | 299 | 11,612 | ||||||||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 2,574,516 | $ | 97,277,922 | $ | 961,706 | $ | 16,415,516 | $ | 3,536,222 | $ | 113,693,438 | $ | 1,939,735 | $ | 79,206,396 | $ | 2,121,961 | $ | 55,110,321 | $ | 4,061,699 | $ | 134,316,717 | ||||||||||||||||||||||||
At December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies | $ | 532,010 | $ | 51,606,699 | $ | 47,413 | $ | 643,380 | $ | 579,423 | $ | 52,250,079 | $ | 532,010 | $ | 51,606,699 | $ | 47,413 | $ | 643,380 | $ | 579,423 | $ | 52,250,079 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 296 | 214,882 | 70,717 | 2,225,021 | 71,013 | 2,439,903 | 296 | 214,882 | 70,717 | 2,225,021 | 71,013 | 2,439,903 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 167,786 | 11,551,865 | 839,718 | 13,193,258 | 1,007,504 | 24,745,123 | 167,786 | 11,551,865 | 839,718 | 13,193,258 | 1,007,504 | 24,745,123 | ||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | 56,756 | 2,516,660 | 105,375 | 1,676,494 | 162,131 | 4,193,154 | 56,756 | 2,516,660 | 105,375 | 1,676,494 | 162,131 | 4,193,154 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 191 | 11,421 | - | - | 191 | 11,421 | 191 | 11,421 | - | - | 191 | 11,421 | ||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 757,039 | $ | 65,901,527 | $ | 1,063,223 | $ | 17,738,153 | $ | 1,820,262 | $ | 83,639,680 | $ | 757,039 | $ | 65,901,527 | $ | 1,063,223 | $ | 17,738,153 | $ | 1,820,262 | $ | 83,639,680 |
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||
Held to Maturity: | ||||||||||||||||
Due in 1 year | $ | 4,672,982 | $ | 4,780,152 | $ | 2,899,715 | $ | 2,964,076 | ||||||||
Due in 2-5 years | 66,946,075 | 66,997,789 | 66,428,822 | 66,259,870 | ||||||||||||
Due in 5-10 years | 56,121,102 | 56,597,254 | 69,688,359 | 69,760,698 | ||||||||||||
Due in more than 10 years | 77,634,176 | 82,171,945 | 77,026,677 | 81,048,260 | ||||||||||||
Mortgage-backed securities | 12,411,842 | 12,316,415 | 13,731,279 | 13,542,789 | ||||||||||||
Redeemable preferred stock | 623,635 | 660,103 | 612,023 | 648,460 | ||||||||||||
Total held to maturity | $ | 218,409,812 | $ | 223,523,658 | $ | 230,386,875 | $ | 234,224,153 |
Unrealized Losses for Less than Twelve Months | No. of Investment Positions | Unrealized Losses for More than Twelve Months | No. of Investment Positions | Total Unrealized Losses | ||||||||||||||||
At December 31, 2017 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||
Total unrealized losses | $ | 213,097 | 98 | $ | 419,572 | 81 | $ | 632,669 | ||||||||||||
Fair Value | $ | 847,718 | $ | 1,329,213 | $ | 2,176,931 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
Fixed maturity securities held to maturity: | |||||||||||||||||||||||||||||||||||
Gross realized gains | $ | 259,503 | $ | 50,987 | $ | 287,635 | $ | 53,422 | $ | 109,554 | $ | 110,529 | $ | 397,190 | $ | 163,950 | |||||||||||||||||||
Gross realized losses | (260,702 | ) | (35,066 | ) | (569,633 | ) | (35,066 | ) | (31,670 | ) | (651,754 | ) | (601,303 | ) | (686,819 | ) | |||||||||||||||||||
Other than temporary impairments | - | (266,227 | ) | - | (318,366 | ) | - | (100,000 | ) | - | (418,366 | ) | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Gross realized gains | - | 45,474 | - | 106,452 | - | 25,898 | - | 132,350 | |||||||||||||||||||||||||||
Gross realized losses | - | (53,881 | ) | - | (58,437 | ) | - | (26 | ) | - | (58,464 | ) | |||||||||||||||||||||||
Other than temporary impairments | - | (63,375 | ) | - | (63,375 | ) | |||||||||||||||||||||||||||||
Gains and (losses) during 2018 on securities sold in 2018 | (39,797 | ) | - | (25,146 | ) | - | 11,214 | - | (13,933 | ) | - | ||||||||||||||||||||||||
Unrealized gains and (losses) on securities held at the end of the period | 158,993 | - | (213,048 | ) | - | 284,192 | - | 71,143 | - | ||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||
Gross realized gains | 2,294,404 | 1,325,424 | 25,246,127 | (1 | ) | 1,781,698 | 814,471 | 225,022 | 26,060,598 | (1 | ) | 2,006,721 | |||||||||||||||||||||||
Gross realized losses | (84,172 | ) | (445,536 | ) | (376,767 | ) | (815,337 | ) | (165,334 | ) | (29,335 | ) | (542,100 | ) | (844,672 | ) | |||||||||||||||||||
Total | $ | 2,328,229 | $ | 621,175 | $ | 24,349,168 | $ | 714,366 | $ | 1,022,427 | $ | (483,041 | ) | $ | 25,371,595 | $ | 231,325 | ||||||||||||||||||
(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village apartments. | (1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village apartments. | (1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village apartments. |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 2,510,842 | $ | 2,508,454 | $ | 5,040,682 | $ | 4,933,259 | $ | 2,481,202 | $ | 2,692,586 | $ | 7,521,884 | $ | 7,475,156 | ||||||||||||||||
Equity securities | 53,620 | 59,066 | 111,912 | 113,852 | 64,214 | 66,320 | 176,126 | 209,517 | ||||||||||||||||||||||||
Mortgage loans held for investment | 4,872,441 | 2,410,234 | 9,776,361 | 5,810,030 | 4,240,624 | 2,973,349 | 14,016,985 | 8,803,257 | ||||||||||||||||||||||||
Real estate held for investment | 1,623,044 | 2,834,022 | 4,299,858 | 5,722,084 | 2,124,138 | 2,818,672 | 6,423,996 | 8,540,756 | ||||||||||||||||||||||||
Policy loans | 108,630 | 153,552 | 211,496 | 270,397 | 85,044 | 195,098 | 296,540 | 621,854 | ||||||||||||||||||||||||
Insurance assignments | 3,511,749 | 3,100,721 | 7,372,687 | 6,382,333 | 3,583,964 | 3,234,520 | 10,956,651 | 9,943,561 | ||||||||||||||||||||||||
Other investments | 75,871 | 12,448 | 129,544 | 19,990 | 57,050 | 16,051 | 186,594 | 36,041 | ||||||||||||||||||||||||
Cash and cash equivalents | 239,661 | 155,073 | 377,029 | 256,943 | 375,310 | 109,939 | 752,339 | 311,989 | ||||||||||||||||||||||||
Gross investment income | 12,995,858 | 11,233,570 | 27,319,569 | 23,508,888 | 13,011,546 | 12,106,535 | 40,331,115 | 35,942,131 | ||||||||||||||||||||||||
Investment expenses | (3,253,893 | ) | (2,911,263 | ) | (7,503,173 | ) | (6,170,205 | ) | (3,370,050 | ) | (3,886,105 | ) | (10,873,223 | ) | (10,383,018 | ) | ||||||||||||||||
Net investment income | $ | 9,741,965 | $ | 8,322,307 | $ | 19,816,396 | $ | 17,338,683 | $ | 9,641,496 | $ | 8,220,430 | $ | 29,457,892 | $ | 25,559,113 |
Net Ending Balance | Total Square Footage | Net Ending Balance | Total Square Footage | |||||||||||||||||||||||||||||||||||
June 30 | December 31 | June 30 | December 31 | September 30 | December 31 | September 30 | December 31 | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 4,000 | (1 | ) | - | - | $ | 4,000 | (1 | ) | $ | 4,000 | (1 | ) | - | - | ||||||||||||||||||
Arkansas | - | 96,169 | - | 3,200 | - | 96,169 | - | 3,200 | ||||||||||||||||||||||||||||||
Kansas | 7,225,273 | 7,200,000 | 222,679 | 222,679 | 6,086,759 | 7,200,000 | 222,679 | 222,679 | ||||||||||||||||||||||||||||||
Louisiana | 480,445 | 493,197 | 7,063 | 7,063 | 474,069 | 493,197 | 7,063 | 7,063 | ||||||||||||||||||||||||||||||
Mississippi | 3,678,509 | 3,725,039 | 33,821 | 33,821 | 3,655,283 | 3,725,039 | 33,821 | 33,821 | ||||||||||||||||||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||||||||||||||
Texas | 335,000 | (1 | ) | 335,000 | (1 | ) | - | 23,470 | 335,000 | (1 | ) | 335,000 | (1 | ) | - | 23,470 | ||||||||||||||||||||||
Utah | 81,737,165 | (2 | ) | 61,108,384 | (2 | ) | 502,129 | 433,244 | 81,526,319 | (2 | ) | 61,108,384 | (2 | ) | 502,129 | 433,244 | ||||||||||||||||||||||
$ | 93,467,392 | $ | 72,968,789 | 765,692 | 723,477 | $ | 92,088,430 | $ | 72,968,789 | 765,692 | 723,477 | |||||||||||||||||||||||||||
(1) Undeveloped land | (1) Undeveloped land | (1) Undeveloped land | ||||||||||||||||||||||||||||||||||||
(2) Includes Center53 completed in July 2017. The Company is currently in the process of leasing the building. | (2) Includes Center53 completed in July 2017. The Company is currently in the process of leasing the building. | (2) Includes Center53 completed in July 2017. The Company is currently in the process of leasing the building. |
Net Ending Balance | ||||||||
September | December 31 | |||||||
2018 | 2017 | |||||||
Arizona | $ | - | $ | 217,105 | ||||
California | 4,064,197 | 5,463,878 | ||||||
Florida | 6,677,953 | 7,000,684 | ||||||
Hawaii | - | 712,286 | ||||||
Ohio | 10,000 | 10,000 | ||||||
Oklahoma | - | 17,500 | ||||||
Tennesse | 105,260 | - | ||||||
Texas | 552,615 | 509,011 | ||||||
Utah | 14,951,798 | 54,113,272 | ||||||
Virginia | 150,175 | - | ||||||
Washington | 476,181 | 286,181 | ||||||
$ | 26,988,179 | $ | 68,329,917 |
Net Ending Balance | ||||||||
June | December 31 | |||||||
2018 | 2017 | |||||||
Arizona | $ | - | $ | 217,105 | ||||
California | 4,955,551 | 5,463,878 | ||||||
Florida | 6,792,934 | 7,000,684 | ||||||
Hawaii | 712,286 | 712,286 | ||||||
Ohio | 10,000 | 10,000 | ||||||
Oklahoma | - | 17,500 | ||||||
Texas | 553,550 | 509,011 | ||||||
Utah | 17,460,770 | 54,113,272 | ||||||
Virginia | 150,175 | - | ||||||
Washington | 476,181 | 286,181 | ||||||
$ | 31,111,447 | $ | 68,329,917 |
Location | Business Segment | Approximate Square Footage | Square Footage Occupied by the Company | Business Segment | Approximate Square Footage | Square Footage Occupied by the Company | ||||||||||||
5300 South 360 West, Salt Lake City, UT (1) | Corporate Offices, Life Insurance and Cemetery/Mortuary Operations | 36,000 | 100 | % | Corporate Offices, Life Insurance and Cemetery/Mortuary Operations | 36,000 | 100 | % | ||||||||||
5201 Green Street, Salt Lake City, UT | Mortgage Operations | 36,899 | 34 | % | Mortgage Operations | 36,899 | 34 | % | ||||||||||
1044 River Oaks Dr., Flowood, MS | Life Insurance Operations | 21,521 | 27 | % | Life Insurance Operations | 21,521 | 27 | % | ||||||||||
121 West Election Road, Draper, UT | Mortgage Sales | 78,978 | 19 | % | Mortgage Sales | 78,978 | 19 | % | ||||||||||
(1) This asset is included in property and equipment on the condensed consolidated balance sheets | (1) This asset is included in property and equipment on the condensed consolidated balance sheets | (1) This asset is included in property and equipment on the condensed consolidated balance sheets |
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
June 30, 2018 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Charge-offs | - | (5,725 | ) | - | (5,725 | ) | ||||||||||
Provision | - | (199,407 | ) | - | (199,407 | ) | ||||||||||
Ending balance - June 30, 2018 | $ | 187,129 | $ | 1,341,315 | $ | 35,220 | $ | 1,563,664 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 240,152 | $ | - | $ | 240,152 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,101,163 | $ | 35,220 | $ | 1,323,512 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 44,682,145 | $ | 87,960,136 | $ | 63,461,371 | $ | 196,103,652 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 4,475,326 | $ | 1,122,279 | $ | 5,597,605 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 44,682,145 | $ | 83,484,810 | $ | 62,339,092 | $ | 190,506,047 | ||||||||
December 31, 2017 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||
Charge-offs | - | (351,357 | ) | (64,894 | ) | (416,251 | ) | |||||||||
Provision | - | 436,264 | - | 436,264 | ||||||||||||
Ending balance - December 31, 2017 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 237,560 | $ | - | $ | 237,560 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,308,887 | $ | 35,220 | $ | 1,531,236 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 54,954,865 | $ | 102,527,111 | $ | 50,157,533 | $ | 207,639,509 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 4,923,552 | $ | 461,834 | $ | 5,385,386 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 54,954,865 | $ | 97,603,559 | $ | 49,695,699 | $ | 202,254,123 |
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
September 30, 2018 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2018 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Charge-offs | - | (84,902 | ) | - | (84,902 | ) | ||||||||||
Provision | - | (213,736 | ) | - | (213,736 | ) | ||||||||||
Ending balance - September 30, 2018 | $ | 187,129 | $ | 1,247,809 | $ | 35,220 | $ | 1,470,158 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 75,064 | $ | - | $ | 75,064 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,172,745 | $ | 35,220 | $ | 1,395,094 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 32,869,447 | $ | 79,930,807 | $ | 71,330,891 | $ | 184,131,145 | ||||||||
Ending balance: individually evaluated for impairment | $ | 195,911 | $ | 3,088,265 | $ | 1,078,529 | $ | 4,362,705 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 32,673,536 | $ | 76,842,542 | $ | 70,252,362 | $ | 179,768,440 | ||||||||
December 31, 2017 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||
Charge-offs | - | (351,357 | ) | (64,894 | ) | (416,251 | ) | |||||||||
Provision | - | 436,264 | - | 436,264 | ||||||||||||
Ending balance - December 31, 2017 | $ | 187,129 | $ | 1,546,447 | $ | 35,220 | $ | 1,768,796 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 237,560 | $ | - | $ | 237,560 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,308,887 | $ | 35,220 | $ | 1,531,236 | ||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ | 54,954,865 | $ | 102,527,111 | $ | 50,157,533 | $ | 207,639,509 | ||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 4,923,552 | $ | 461,834 | $ | 5,385,386 | ||||||||
Ending balance: collectively evaluated for impairment | $ | 54,954,865 | $ | 97,603,559 | $ | 49,695,699 | $ | 202,254,123 |
Age Analysis of Mortgage Loans Held for Investment | Age Analysis of Mortgage Loans Held for Investment | Age Analysis of Mortgage Loans Held for Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Process of Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Unamortized deferred loan fees, net | Net Mortgage Loans | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Process of Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Unamortized deferred loan fees, net | Net Mortgage Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,062,767 | $ | 836,970 | $ | - | $ | - | $ | 1,899,737 | $ | 42,782,408 | $ | 44,682,145 | $ | (187,129 | ) | $ | (42,566 | ) | $ | 44,452,450 | $ | 3,745,013 | $ | - | $ | 195,911 | $ | - | $ | 3,940,924 | $ | 28,928,523 | $ | 32,869,447 | $ | (187,129 | ) | $ | (20,919 | ) | $ | 32,661,399 | ||||||||||||||||||||||||||||||||||||
Residential | 6,994,194 | 652,173 | 2,080,525 | 2,394,801 | 12,121,693 | 75,838,443 | 87,960,136 | (1,341,315 | ) | (885,680 | ) | 85,733,141 | 10,783,020 | 1,769,338 | 2,019,323 | 1,068,942 | 15,640,623 | 64,290,184 | 79,930,807 | (1,247,809 | ) | (678,985 | ) | 78,004,013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 1,122,279 | - | 1,122,279 | 62,339,092 | 63,461,371 | (35,220 | ) | (542,905 | ) | 62,883,246 | - | - | 1,078,529 | - | 1,078,529 | 70,252,362 | 71,330,891 | (35,220 | ) | (579,561 | ) | 70,716,110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 8,056,961 | $ | 1,489,143 | $ | 3,202,804 | $ | 2,394,801 | $ | 15,143,709 | $ | 180,959,943 | $ | 196,103,652 | $ | (1,563,664 | ) | $ | (1,471,151 | ) | $ | 193,068,837 | $ | 14,528,033 | $ | 1,769,338 | $ | 3,293,763 | $ | 1,068,942 | $ | 20,660,076 | $ | 163,471,069 | $ | 184,131,145 | $ | (1,470,158 | ) | $ | (1,279,465 | ) | $ | 181,381,522 | ||||||||||||||||||||||||||||||||||||
December 31, 2017 | December 31, 2017 | December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,943,495 | $ | - | $ | - | $ | - | $ | 1,943,495 | $ | 53,011,370 | $ | 54,954,865 | $ | (187,129 | ) | $ | (67,411 | ) | $ | 54,700,325 | $ | 1,943,495 | $ | - | $ | - | $ | - | $ | 1,943,495 | $ | 53,011,370 | $ | 54,954,865 | $ | (187,129 | ) | $ | (67,411 | ) | $ | 54,700,325 | ||||||||||||||||||||||||||||||||||||
Residential | 6,613,479 | 495,347 | 3,591,333 | 1,332,219 | 12,032,378 | 90,494,733 | 102,527,111 | (1,546,447 | ) | (1,164,130 | ) | 99,816,534 | 6,613,479 | 495,347 | 3,591,333 | 1,332,219 | 12,032,378 | 90,494,733 | 102,527,111 | (1,546,447 | ) | (1,164,130 | ) | 99,816,534 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 461,834 | - | 461,834 | 49,695,699 | 50,157,533 | (35,220 | ) | (428,287 | ) | 49,694,026 | - | - | 461,834 | - | 461,834 | 49,695,699 | 50,157,533 | (35,220 | ) | (428,287 | ) | 49,694,026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 8,556,974 | $ | 495,347 | $ | 4,053,167 | $ | 1,332,219 | $ | 14,437,707 | $ | 193,201,802 | $ | 207,639,509 | $ | (1,768,796 | ) | $ | (1,659,828 | ) | $ | 204,210,885 | $ | 8,556,974 | $ | 495,347 | $ | 4,053,167 | $ | 1,332,219 | $ | 14,437,707 | $ | 193,201,802 | $ | 207,639,509 | $ | (1,768,796 | ) | $ | (1,659,828 | ) | $ | 204,210,885 | ||||||||||||||||||||||||||||||||||||
(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. | (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. | (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
Impaired Loans | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
June 30, 2018 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 2,536,912 | 2,536,912 | - | 3,212,156 | - | |||||||||||||||
Residential construction | 1,122,279 | 1,122,279 | - | 561,139 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,938,414 | 1,938,414 | 240,152 | 1,706,989 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 4,475,326 | 4,475,326 | 240,152 | 4,919,145 | - | |||||||||||||||
Residential construction | 1,122,279 | 1,122,279 | - | 561,139 | - | |||||||||||||||
December 31, 2017 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 3,322,552 | 3,322,552 | - | 3,290,094 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,601,000 | 1,601,000 | 237,560 | 1,350,115 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 4,923,552 | 4,923,552 | 237,560 | 4,640,209 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - |
Impaired Loans | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
September 30, 2018 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | ||||||||||
Residential | 1,592,174 | 1,592,174 | - | 2,693,459 | - | |||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,496,091 | 1,496,091 | 75,064 | 1,615,392 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | 195,911 | $ | 195,911 | $ | - | $ | 65,304 | $ | - | ||||||||||
Residential | 3,088,265 | 3,088,265 | 75,064 | 4,308,851 | - | |||||||||||||||
Residential construction | 1,078,529 | 1,078,529 | - | 733,603 | - | |||||||||||||||
December 31, 2017 | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 3,322,552 | 3,322,552 | - | 3,290,094 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Residential | 1,601,000 | 1,601,000 | 237,560 | 1,350,115 | - | |||||||||||||||
Residential construction | - | - | - | - | - | |||||||||||||||
Total: | ||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 365,220 | $ | - | ||||||||||
Residential | 4,923,552 | 4,923,552 | 237,560 | 4,640,209 | - | |||||||||||||||
Residential construction | 461,834 | 461,834 | - | 277,232 | - |
Mortgage Loans Held for Investment Credit Exposure | Mortgage Loans Held for Investment Credit Exposure | Mortgage Loans Held for Investment Credit Exposure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | Credit Risk Profile Based on Payment Activity | Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Residential | Residential Construction | Total | Commercial | Residential | Residential Construction | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 44,682,145 | $ | 54,954,865 | $ | 83,484,810 | $ | 97,603,559 | $ | 62,339,092 | $ | 49,695,699 | $ | 190,506,047 | $ | 202,254,123 | $ | 32,673,536 | $ | 54,954,865 | $ | 76,842,542 | $ | 97,603,559 | $ | 70,252,362 | $ | 49,695,699 | $ | 179,768,440 | $ | 202,254,123 | ||||||||||||||||||||||||||||||||
Non-performing | - | - | 4,475,326 | 4,923,552 | 1,122,279 | 461,834 | 5,597,605 | 5,385,386 | 195,911 | - | 3,088,265 | 4,923,552 | 1,078,529 | 461,834 | 4,362,705 | 5,385,386 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 44,682,145 | $ | 54,954,865 | $ | 87,960,136 | $ | 102,527,111 | $ | 63,461,371 | $ | 50,157,533 | $ | 196,103,652 | $ | 207,639,509 | $ | 32,869,447 | $ | 54,954,865 | $ | 79,930,807 | $ | 102,527,111 | $ | 71,330,891 | $ | 50,157,533 | $ | 184,131,145 | $ | 207,639,509 |
Mortgage Loans on Non-Accrual Status | ||||||||
As of June 30 2018 | As of December 31 2017 | |||||||
Residential | $ | 4,475,326 | $ | 4,923,552 | ||||
Residential construction | 1,122,279 | 461,834 | ||||||
Total | $ | 5,597,605 | $ | 5,385,386 |
Mortgage Loans on Non-Accrual Status | ||||||||
As of September 30 2018 | As of December 31 2017 | |||||||
Commercial | $ | 195,911 | $ | - | ||||
Residential | 3,088,265 | 4,923,552 | ||||||
Residential construction | 1,078,529 | 461,834 | ||||||
Total | $ | 4,166,794 | $ | 5,385,386 |
As of June 30, 2018 | ||||
Aggregate fair value | $ | 170,538,537 | ||
Unpaid principal balance | 165,180,172 | |||
Unrealized gain | 5,358,365 |
As of September 30, 2018 | ||||
Aggregate fair value | $ | 165,507,394 | ||
Unpaid principal balance | 160,124,093 | |||
Unrealized gain | 5,383,301 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
Loan fees | $ | 7,843,728 | $ | 8,758,784 | $ | 13,589,036 | $ | 18,063,709 | $ | 7,758,284 | $ | 15,086,168 | $ | 21,347,320 | $ | 33,149,877 | ||||||||||||||||||||
Interest income | 1,588,550 | 1,848,092 | 2,705,004 | 3,582,619 | 1,993,895 | 2,097,249 | 4,698,899 | 5,679,868 | ||||||||||||||||||||||||||||
Secondary gains | 21,765,939 | 32,446,222 | 36,318,341 | 58,640,572 | 22,315,022 | 28,667,234 | 58,633,363 | 87,307,806 | ||||||||||||||||||||||||||||
Change in fair value of loan commitments | 2,169 | (1,011,879 | ) | 443,127 | 1,155,714 | 94,569 | (4,833,268 | ) | 537,696 | (3,677,554 | ) | |||||||||||||||||||||||||
Change in fair value of loans held for sale | 810,755 | (1 | ) | - | 4,766,844 | (1 | ) | - | (203,623 | ) | 1,061,917 | 4,563,222 | 1,061,917 | |||||||||||||||||||||||
Provision for loan loss reserve | (302,061 | ) | (526,818 | ) | (653,112 | ) | (953,453 | ) | (293,443 | ) | (481,727 | ) | (946,556 | ) | (1,435,180 | ) | ||||||||||||||||||||
Mortgage fee income | $ | 31,709,080 | $ | 41,514,401 | $ | 57,169,240 | $ | 80,489,161 | $ | 31,664,704 | $ | 41,597,573 | $ | 88,833,944 | $ | 122,086,734 | ||||||||||||||||||||
(1) See Fair Value Option Election |
As of June 30 2018 | As of December 31 2017 | As of September 30 2018 | As of December 31 2017 | |||||||||||||
Balance, beginning of period | $ | 2,571,524 | $ | 627,733 | $ | 2,571,524 | $ | 627,733 | ||||||||
Provision on current loan originations (1) | 653,112 | 1,851,187 | 946,556 | 1,851,187 | ||||||||||||
Charge-offs, net of recaptured amounts | (44,382 | ) | 92,604 | (10,061 | ) | 92,604 | ||||||||||
Balance, end of period | $ | 3,180,254 | $ | 2,571,524 | $ | 3,508,019 | $ | 2,571,524 | ||||||||
(1) Included in Mortgage fee income |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2017 | 880,426 | $ | 4.35 | 523,603 | $ | 5.24 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (31,984 | ) | - | |||||||||||||
Cancelled | (5,704 | ) | - | |||||||||||||
Outstanding at June 30, 2018 | 842,738 | $ | 4.48 | 523,603 | $ | 5.24 | ||||||||||
As of June 30, 2018: | ||||||||||||||||
Options exercisable | 777,373 | $ | 4.42 | 486,853 | $ | 5.27 | ||||||||||
As of June 30, 2018: | ||||||||||||||||
Available options for future grant | 421,241 | 165,638 | ||||||||||||||
Weighted average contractual term of options outstanding at June 30, 2018 | 6.30 years | 2.94 years | ||||||||||||||
Weighted average contractual term of options exercisable at June 30, 2018 | 6.29 years | 2.45 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at June 30, 2018 (1) | $ | 873,372 | $ | 267,943 | ||||||||||||
Aggregated intrinsic value of options exercisable at June 30, 2018 (1) | $ | 862,976 | $ | 253,243 | ||||||||||||
(1) The Company used a stock price of $5.20 as of June 30, 2018 to derive intrinsic value. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2017 | 880,426 | $ | 4.35 | 523,603 | $ | 5.24 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (36,133 | ) | - | |||||||||||||
Cancelled | (5,704 | ) | - | |||||||||||||
Outstanding at September 30, 2018 | 838,589 | $ | 4.48 | 523,603 | $ | 5.24 | ||||||||||
As of September 30, 2018: | ||||||||||||||||
Options exercisable | 805,902 | $ | 4.46 | 505,227 | $ | 5.26 | ||||||||||
As of September 30, 2018: | ||||||||||||||||
Available options for future grant | 421,241 | 165,638 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2018 | 6.05 years | 2.69 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2018 | 6.05 years | 2.45 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2018 (1) | $ | 867,356 | $ | 267,943 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2018 (1) | $ | 862,157 | $ | 260,592 | ||||||||||||
(1) The Company used a stock price of $5.20 as of September 30, 2018 to derive intrinsic value. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2016 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | (103,402 | ) | |||||||||||||
Cancelled | - | (24,227 | ) | |||||||||||||
Outstanding at June 30, 2017 | 741,973 | $ | 4.33 | 428,669 | $ | 5.59 | ||||||||||
As of June 30, 2017: | ||||||||||||||||
Options exercisable | 671,816 | $ | 4.08 | 386,669 | $ | 5.40 | ||||||||||
As of June 30, 2017: | ||||||||||||||||
Available options for future grant | 525,682 | 227,750 | ||||||||||||||
Weighted average contractual term of options outstanding at June 30, 2017 | 6.87 years | 2.88 years | ||||||||||||||
Weighted average contractual term of options exercisable at June 30, 2017 | 6.61 years | 2.71 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at June 30, 2017 (1) | $ | 1,564,592 | $ | 449,896 | ||||||||||||
Aggregated intrinsic value of options exercisable at June 30, 2017 (1) | $ | 1,564,592 | $ | 449,896 | ||||||||||||
(1) The Company used a stock price of $6.37 as of June 30, 2017 to derive intrinsic value. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2016 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | (103,402 | ) | |||||||||||||
Cancelled | - | (24,227 | ) | |||||||||||||
Outstanding at September 30, 2017 | 741,973 | $ | 4.33 | 428,669 | $ | 5.59 | ||||||||||
As of September 30, 2017: | ||||||||||||||||
Options exercisable | 706,854 | $ | 4.21 | 407,669 | $ | 5.50 | ||||||||||
As of September 30, 2017: | ||||||||||||||||
Available options for future grant | 525,682 | 227,750 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2017 | 6.62 years | 2.63 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2017 | 6.50 years | 2.55 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2017 (1) | $ | 941,567 | $ | 151,012 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2017 (1) | $ | 941,311 | $ | 151,012 | ||||||||||||
(1) The Company used a stock price of $5.10 as of September 30, 2017 to derive intrinsic value. |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net earnings | $ | 3,238,217 | $ | 2,485,864 | $ | 20,164,140 | $ | 4,345,864 | $ | 2,013,746 | $ | 1,096,838 | $ | 22,177,886 | $ | 5,442,702 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic weighted-average shares outstanding | 16,252,998 | 15,931,031 | 16,209,987 | 15,879,461 | 16,330,839 | 16,026,199 | 16,250,714 | 15,928,911 | ||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Employee stock options | 234,070 | 347,117 | 207,364 | 361,607 | 223,495 | 300,093 | 212,163 | 331,020 | ||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 16,487,068 | 16,278,148 | 16,417,351 | 16,241,068 | 16,554,334 | 16,326,292 | 16,462,877 | 16,259,931 | ||||||||||||||||||||||||
Basic net earnings per share | $ | 0.20 | $ | 0.16 | $ | 1.24 | $ | 0.27 | $ | 0.12 | $ | 0.07 | $ | 1.36 | $ | 0.34 | ||||||||||||||||
Diluted net earnings per share | $ | 0.20 | $ | 0.15 | $ | 1.23 | $ | 0.27 | $ | 0.12 | $ | 0.07 | $ | 1.35 | $ | 0.33 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 29,370,509 | $ | 5,281,005 | $ | 34,213,612 | $ | - | $ | 68,865,126 | ||||||||||
Intersegment revenues | 987,994 | 107,021 | 132,282 | (1,227,297 | ) | - | ||||||||||||||
Segment profit before income taxes | 2,937,037 | 2,071,666 | (846,472 | ) | - | 4,162,231 | ||||||||||||||
- | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
June 30, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 25,870,031 | $ | 3,308,665 | $ | 44,133,898 | $ | - | $ | 73,312,594 | ||||||||||
Intersegment revenues | 1,588,782 | 105,004 | 86,414 | (1,780,200 | ) | - | ||||||||||||||
Segment profit before income taxes | 2,799,274 | 325,203 | 869,822 | - | 3,994,299 | |||||||||||||||
For the Six Months Ended | ||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||
Revenues from external customers | $ | 80,236,374 | $ | 9,051,414 | $ | 61,653,447 | $ | - | $ | 150,941,235 | ||||||||||
Intersegment revenues | 1,807,286 | 216,038 | 265,879 | (2,289,203 | ) | - | ||||||||||||||
Segment profit before income taxes | 26,648,846 | 2,932,429 | (4,231,863 | ) | - | 25,349,412 | ||||||||||||||
Identifiable Assets | 919,115,726 | 95,779,077 | 185,865,711 | (135,776,637 | ) | 1,064,983,877 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||
Total Assets | 921,881,296 | 95,779,077 | 185,865,711 | (135,776,637 | ) | 1,067,749,447 | ||||||||||||||
For the Six Months Ended | ||||||||||||||||||||
June 30, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 52,034,068 | $ | 6,908,226 | $ | 85,199,597 | $ | - | $ | 144,141,891 | ||||||||||
Intersegment revenues | 3,050,106 | 206,255 | 182,184 | (3,438,545 | ) | - | ||||||||||||||
Segment profit before income taxes | 4,282,754 | 1,084,114 | 1,525,201 | - | 6,892,069 | |||||||||||||||
Identifiable Assets | 839,619,710 | 95,058,739 | 170,463,229 | (131,393,058 | ) | 973,748,620 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||
Total Assets | 842,385,280 | 95,058,739 | 170,463,229 | (131,393,058 | ) | 976,514,190 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||||||
Common stock | $ | 6,078,767 | $ | 6,078,767 | $ | - | $ | - | $ | 5,988,918 | $ | 5,988,918 | $ | - | $ | - | ||||||||||||||||
Total equity securities | $ | 6,078,767 | $ | 6,078,767 | $ | - | $ | - | $ | 5,988,918 | $ | 5,988,918 | $ | - | $ | - | ||||||||||||||||
Loans held for sale | $ | 170,538,537 | $ | - | $ | - | $ | 170,538,537 | $ | 165,507,394 | $ | - | $ | - | $ | 165,507,394 | ||||||||||||||||
Restricted assets (1) | 809,002 | 809,002 | - | - | 810,056 | 810,056 | - | - | ||||||||||||||||||||||||
Cemetery perpetual care trust investments (1) | 683,233 | 683,233 | - | - | 677,699 | 677,699 | - | - | ||||||||||||||||||||||||
Derivatives - loan commitments (2) | 2,935,344 | - | - | 2,935,344 | 2,595,146 | - | - | 2,595,146 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 181,044,883 | $ | 7,571,002 | $ | - | $ | 173,473,881 | $ | 175,579,213 | $ | 7,476,673 | $ | - | $ | 168,102,540 | ||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||||||
Derivatives - call options (3) | $ | (28,325 | ) | $ | (28,325 | ) | $ | - | $ | - | $ | (38,020 | ) | $ | (38,020 | ) | $ | - | $ | - | ||||||||||||
Derivatives - put options (3) | (57,591 | ) | (57,591 | ) | - | - | (23,393 | ) | (23,393 | ) | - | - | ||||||||||||||||||||
Derivatives - loan commitments (3) | (495,628 | ) | - | - | (495,628 | ) | (60,861 | ) | - | - | (60,861 | ) | ||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (581,544 | ) | $ | (85,916 | ) | $ | - | $ | (495,628 | ) | $ | (122,274 | ) | $ | (61,413 | ) | $ | - | $ | (60,861 | ) | ||||||||||
(1) Mutual funds and equity securities | ||||||||||||||||||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets | (2) Included in other assets on the condensed consolidated balance sheets | (2) Included in other assets on the condensed consolidated balance sheets | ||||||||||||||||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets | (3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets | (3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets |
Net Loan Commitments | Loans Held for Sale | Net Loan Commitments | Loans Held for Sale | |||||||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | 133,414,188 | $ | 1,996,589 | $ | 133,414,188 | ||||||||
Originations | 1,095,373,146 | 1,692,673,286 | ||||||||||||||
Sales | (1,097,388,896 | ) | (1,719,346,884 | ) | ||||||||||||
Transfer to mortgage loans held for investment | (139,464 | ) | (139,464 | ) | ||||||||||||
Total gains (losses): | ||||||||||||||||
Included in earnings (1) | 443,127 | 39,279,563 | 537,696 | 58,906,268 | ||||||||||||
Balance - June 30, 2018 | $ | 2,439,716 | $ | 170,538,537 | ||||||||||||
Balance - September 30, 2018 | $ | 2,534,285 | $ | 165,507,394 | ||||||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | (1) As a component of Mortgage fee income on the condensed consolidated statements of earnings |
Quoted Prices | ||||||||||||||||||||||||||||||||
in Active | Significant | Significant | ||||||||||||||||||||||||||||||
Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 1,698,262 | $ | - | $ | - | $ | 1,698,262 | $ | 1,421,028 | $ | - | $ | - | $ | 1,421,028 | ||||||||||||||||
Impaired real estate held for investment | 999,465 | - | - | 999,465 | 7,079,822 | - | - | 7,079,822 | ||||||||||||||||||||||||
Mortgage servicing rights additions | 1,364,733 | - | - | 1,364,733 | 1,922,230 | - | - | 1,922,230 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 4,062,460 | $ | - | $ | - | $ | 4,062,460 | $ | 10,423,080 | $ | - | $ | - | $ | 10,423,080 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||||||
Common stock | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | ||||||||||||||||
Total equity securities | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | $ | 6,037,855 | $ | 6,037,855 | $ | - | $ | - | ||||||||||||||||
Loans held for sale | $ | 133,414,188 | $ | - | $ | - | $ | 133,414,188 | $ | 133,414,188 | $ | - | $ | - | $ | 133,414,188 | ||||||||||||||||
Restricted assets (1) | 809,958 | 809,958 | - | - | 809,958 | 809,958 | - | - | ||||||||||||||||||||||||
Cemetery perpetual care trust investments (1) | 682,315 | 682,315 | - | - | 682,315 | 682,315 | - | - | ||||||||||||||||||||||||
Derivatives - loan commitments (2) | 2,032,782 | - | - | 2,032,782 | 2,032,782 | - | - | 2,032,782 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 9,562,910 | $ | 7,530,128 | $ | - | $ | 2,032,782 | $ | 9,562,910 | $ | 7,530,128 | $ | - | $ | 2,032,782 | ||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||||||
Derivatives - call options (3) | (64,689 | ) | (64,689 | ) | - | - | (64,689 | ) | (64,689 | ) | - | - | ||||||||||||||||||||
Derivatives - put options (3) | (20,568 | ) | (20,568 | ) | - | - | (20,568 | ) | (20,568 | ) | - | - | ||||||||||||||||||||
Derivatives - loan commitments (3) | (36,193 | ) | - | - | (36,193 | ) | (36,193 | ) | - | - | (36,193 | ) | ||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (121,450 | ) | $ | (85,257 | ) | $ | - | $ | (36,193 | ) | $ | (121,450 | ) | $ | (85,257 | ) | $ | - | $ | (36,193 | ) | ||||||||||
(1) Mutual funds and equity securities | ||||||||||||||||||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets | (2) Included in other assets on the condensed consolidated balance sheets | (2) Included in other assets on the condensed consolidated balance sheets | ||||||||||||||||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets | (3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets | (3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets |
Net Loan Commitments | Bank Loan Interest Rate Swaps | Loans Held for Sale | ||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||
Originations | 1,233,683,666 | |||||||||||
Sales | (1,151,031,388 | ) | ||||||||||
Total gains (losses): | ||||||||||||
Included in earnings (1) | (4,812,743 | ) | - | 50,761,910 | ||||||||
Included in other comprehensive income (2) | - | 3,308 | - | |||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | - | $ | 133,414,188 | ||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | ||||||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statements of comprehensive income |
Net Loan Commitments | Bank Loan Interest Rate Swaps | Loans Held for Sale | ||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||
Originations | 1,233,683,666 | |||||||||||
Sales | (1,151,031,388 | ) | ||||||||||
Total gains (losses): | ||||||||||||
Included in earnings (1) | (4,812,743 | ) | - | 50,761,910 | ||||||||
Included in other comprehensive income (2) | - | 3,308 | - | |||||||||
Balance - December 31, 2017 | $ | 1,996,589 | $ | - | $ | 133,414,188 | ||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings | ||||||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statements of comprehensive income |
Quoted Prices | ||||||||||||||||||||||||||||||||
in Active | Significant | Significant | ||||||||||||||||||||||||||||||
Markets for | Observable | Unobservable | ||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | Quoted Prices in ActiveIdentical Assets | Significant Observable | Significant Unobservable | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 1,363,440 | $ | - | $ | - | $ | 1,363,440 | $ | 1,363,440 | $ | - | $ | - | $ | 1,363,440 | ||||||||||||||||
Mortgage servicing rights additions | 6,085,352 | - | - | 6,085,352 | 6,085,352 | - | - | 6,085,352 | ||||||||||||||||||||||||
Impaired real estate held for investment | 8,500,000 | - | - | 8,500,000 | 8,500,000 | - | - | 8,500,000 | ||||||||||||||||||||||||
Impaired fixed maturity securities, held to maturity | 426,984 | - | 426,984 | - | 426,984 | - | 426,984 | - | ||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 16,375,776 | $ | - | $ | 426,984 | $ | 15,948,792 | $ | 16,375,776 | $ | - | $ | 426,984 | $ | 15,948,792 |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 218,409,812 | $ | - | $ | 192,836,479 | $ | 30,687,179 | $ | 223,523,658 | $ | 230,386,875 | $ | - | $ | 201,221,369 | $ | 33,002,784 | $ | 234,224,153 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 85,733,141 | - | - | 90,610,146 | 90,610,146 | 78,004,013 | - | - | 82,516,040 | 82,516,040 | ||||||||||||||||||||||||||||||
Residential construction | 62,883,246 | - | - | 62,883,246 | 62,883,246 | 70,716,110 | - | - | 70,716,110 | 70,716,110 | ||||||||||||||||||||||||||||||
Commercial | 44,452,450 | - | - | 45,438,216 | 45,438,216 | 32,661,399 | - | - | 33,475,276 | 33,475,276 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 193,068,837 | $ | - | $ | - | $ | 198,931,608 | $ | 198,931,608 | $ | 181,381,522 | $ | - | $ | - | $ | 186,707,426 | $ | 186,707,426 | ||||||||||||||||||||
Policy loans | 6,310,614 | - | - | 6,310,614 | 6,310,614 | 6,389,122 | - | - | 6,389,122 | 6,389,122 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 31,693,933 | - | - | 31,693,933 | 31,693,933 | 31,119,910 | - | - | 31,119,910 | 31,119,910 | ||||||||||||||||||||||||||||||
Restricted assets (2) | 1,159,629 | - | 1,169,967 | - | 1,169,967 | 1,199,301 | - | 1,201,983 | - | 1,201,983 | ||||||||||||||||||||||||||||||
Restricted assets (3) | 1,500,000 | - | - | 1,500,000 | 1,500,000 | 1,500,000 | - | - | 1,500,000 | 1,500,000 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 963,646 | - | 961,655 | - | 961,655 | 973,821 | - | 963,621 | - | 963,621 | ||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 21,117,937 | - | - | 31,037,960 | 31,037,960 | 20,875,905 | - | - | 32,327,266 | 32,327,266 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (208,777,621 | ) | $ | - | $ | - | $ | (208,777,621 | ) | $ | (208,777,621 | ) | $ | (196,422,645 | ) | $ | - | $ | - | $ | (196,422,645 | ) | $ | (196,422,645 | ) | ||||||||||||||
Policyholder account balances (4) | (46,914,113 | ) | - | - | (34,441,613 | ) | (34,441,613 | ) | (46,706,179 | ) | - | - | (34,223,082 | ) | (34,223,082 | ) | ||||||||||||||||||||||||
Future policy benefits - annuities (4) | (98,787,048 | ) | - | - | (96,759,178 | ) | (96,759,178 | ) | (98,558,234 | ) | - | - | (96,511,305 | ) | (96,511,305 | ) | ||||||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||
(2) Fixed maturity securities held to maturity | ||||||||||||||||||||||||||||||||||||||||
(3) Participation in mortgage loans held for investment (residential construction) | (3) Participation in mortgage loans held for investment (residential construction) | (3) Participation in mortgage loans held for investment (residential construction) | ||||||||||||||||||||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 228,397,623 | $ | - | $ | 208,672,036 | $ | 32,826,373 | $ | 241,498,409 | $ | 228,397,623 | $ | - | $ | 233,806,219 | $ | 7,692,190 | $ | 241,498,409 | ||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 99,816,535 | - | - | 106,050,169 | 106,050,169 | 99,816,535 | - | - | 106,050,169 | 106,050,169 | ||||||||||||||||||||||||||||||
Residential construction | 49,694,025 | - | - | 49,694,025 | 49,694,025 | 49,694,025 | - | - | 49,694,025 | 49,694,025 | ||||||||||||||||||||||||||||||
Commercial | 54,700,325 | - | - | 56,473,156 | 56,473,156 | 54,700,325 | - | - | 56,473,156 | 56,473,156 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 204,210,885 | $ | - | $ | - | $ | 212,217,350 | $ | 212,217,350 | $ | 204,210,885 | $ | - | $ | - | $ | 212,217,350 | $ | 212,217,350 | ||||||||||||||||||||
Policy loans | 6,531,352 | - | - | 6,531,352 | 6,531,352 | 6,531,352 | - | - | 6,531,352 | 6,531,352 | ||||||||||||||||||||||||||||||
Insurance assignments, net (1) | 35,455,098 | - | - | 35,455,098 | 35,455,098 | 35,455,098 | - | - | 35,455,098 | 35,455,098 | ||||||||||||||||||||||||||||||
Restricted assets (2) | 1,130,088 | - | 1,152,324 | - | 1,152,324 | 1,130,088 | - | 1,152,324 | - | 1,152,324 | ||||||||||||||||||||||||||||||
Restricted assets (3) | 1,701,811 | - | - | 1,796,910 | 1,796,910 | 1,701,811 | - | - | 1,796,910 | 1,796,910 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (2) | 943,211 | - | 953,404 | - | 953,404 | 943,211 | - | 953,404 | - | 953,404 | ||||||||||||||||||||||||||||||
Cemetery perpetual care trust investments (3) | 4,128 | - | - | 4,411 | 4,411 | 4,128 | - | - | 4,411 | 4,411 | ||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 21,376,937 | - | - | 27,427,174 | 27,427,174 | 21,376,937 | - | - | 27,427,174 | 27,427,174 | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (157,450,925 | ) | $ | - | $ | - | $ | (157,450,925 | ) | $ | (157,450,925 | ) | $ | (157,450,925 | ) | $ | - | $ | - | $ | (157,450,925 | ) | $ | (157,450,925 | ) | ||||||||||||||
Policyholder account balances (4) | (47,867,037 | ) | - | - | (34,557,111 | ) | (34,557,111 | ) | (47,867,037 | ) | - | - | (34,557,111 | ) | (34,557,111 | ) | ||||||||||||||||||||||||
Future policy benefits - annuities (4) | (99,474,392 | ) | - | - | (98,827,107 | ) | (98,827,107 | ) | (99,474,392 | ) | - | - | (98,827,107 | ) | (98,827,107 | ) | ||||||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | (1) Included in other investments and policy loans on the condensed consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||
(2) Fixed maturity securities held to maturity | ||||||||||||||||||||||||||||||||||||||||
(3) Participation in mortgage loans held for investment (commercial) | (3) Participation in mortgage loans held for investment (commercial) | (3) Participation in mortgage loans held for investment (commercial) | ||||||||||||||||||||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Fair Values and Notional Values of Derivative Instruments | Fair Values and Notional Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Notional Amount | Asset Fair Value | Liability Fair Value | Notional Amount | Asset Fair Value | Liability Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan commitments | Other assets and Other liabilities | $ | 172,439,140 | $ | 2,935,344 | $ | 495,628 | $ | 105,679,107 | $ | 2,032,782 | $ | 36,193 | Other assets and Other liabilities | $ | 150,947,240 | $ | 2,595,146 | $ | 60,861 | $ | 105,679,107 | $ | 2,032,782 | $ | 36,193 | ||||||||||||||||||||||||
Call options | Other liabilities | 2,900,750 | -- | 28,325 | 1,488,550 | -- | 64,689 | Other liabilities | 1,758,900 | -- | 38,020 | 1,488,550 | -- | 64,689 | ||||||||||||||||||||||||||||||||||||
Put options | Other liabilities | 4,524,200 | -- | 57,591 | 2,265,900 | -- | 20,568 | Other liabilities | 2,888,400 | -- | 23,393 | 2,265,900 | -- | 20,568 | ||||||||||||||||||||||||||||||||||||
Total | $ | 179,864,090 | $ | 2,935,344 | $ | 581,544 | $ | 109,433,557 | $ | 2,032,782 | $ | 121,450 | $ | 155,594,540 | $ | 2,595,146 | $ | 122,274 | $ | 109,433,557 | $ | 2,032,782 | $ | 121,450 |
Net Amount Gain | Net Amount Gain | ||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
Derivative | Classification | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Loan commitments | Mortgage fee income | $ | 2,169 | $ | (1,011,879 | ) | $ | 443,127 | $ | 1,155,714 | |||||||
Call and put options | Gains on investments and other assets | $ | 151,130 | $ | 54,266 | $ | 230,301 | $ | 188,828 |
Net Amount Gain (Loss) | Net Amount Gain (Loss) | ||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
Derivative | Classification | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Loan commitments | Mortgage fee income | $ | 94,569 | $ | (4,833,268 | ) | $ | 537,696 | $ | (3,677,554 | ) | ||||||
Call and put options | Gains on investments and other assets | $ | 83,612 | $ | 27,734 | $ | 313,913 | $ | 216,561 |
As of June 30 2018 | As of December 31 2017 | As of September 30 2018 | As of December 31 2017 | |||||||||||||
Amortized cost: | ||||||||||||||||
Balance before valuation allowance at beginning of year | $ | 21,376,937 | $ | 18,872,362 | $ | 21,376,937 | $ | 18,872,362 | ||||||||
MSR additions resulting from loan sales | 1,364,733 | 6,085,352 | 1,922,230 | 6,085,352 | ||||||||||||
Amortization (1) | (1,623,733 | ) | (3,580,777 | ) | (2,423,262 | ) | (3,580,777 | ) | ||||||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | - | - | ||||||||||||
Balance before valuation allowance at end of period | $ | 21,117,937 | $ | 21,376,937 | $ | 20,875,905 | $ | 21,376,937 | ||||||||
Valuation allowance for impairment of MSRs: | ||||||||||||||||
Balance at beginning of year | $ | - | $ | - | $ | - | $ | - | ||||||||
Additions | - | - | - | - | ||||||||||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | - | - | ||||||||||||
Balance at end of period | $ | - | $ | - | $ | - | $ | - | ||||||||
Mortgage servicing rights, net | $ | 21,117,937 | $ | 21,376,937 | $ | 20,875,905 | $ | 21,376,937 | ||||||||
Estimated fair value of MSRs at end of period | $ | 31,037,960 | $ | 27,427,174 | $ | 32,327,266 | $ | 27,427,174 | ||||||||
(1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings | (1) Included in other expenses on the condensed consolidated statements of earnings |
Estimated MSR Amortization | ||||
2018 | 4,008,666 | |||
2019 | 4,008,666 | |||
2020 | 4,008,666 | |||
2021 | 4,008,522 | |||
2022 | 3,202,881 | |||
Thereafter | 1,880,536 | |||
Total | $ | 21,117,937 |
Estimated MSR Amortization | ||||
2018 | 1,634,568 | |||
2019 | 4,469,364 | |||
2020 | 4,469,364 | |||
2021 | 4,469,203 | |||
2022 | 3,570,974 | |||
Thereafter | 2,262,432 | |||
Total | $ | 20,875,905 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Contractual servicing fees | $ | 1,887,576 | $ | 1,674,721 | $ | 3,764,459 | $ | 3,510,594 | $ | 1,905,887 | $ | 1,848,831 | $ | 5,670,346 | $ | 5,359,425 | ||||||||||||||||
Late fees | 116,350 | 80,599 | 228,098 | 166,937 | 106,354 | 99,281 | 334,452 | 266,218 | ||||||||||||||||||||||||
Total | $ | 2,003,926 | $ | 1,755,320 | $ | 3,992,557 | $ | 3,677,531 | $ | 2,012,241 | $ | 1,948,112 | $ | 6,004,798 | $ | 5,625,643 |
As of June 30 2018 | As of December 31 2017 | |||||||
Servicing UPB | $ | 2,974,279,299 | $ | 2,924,868,843 |
As of September 30 2018 | As of December 31 2017 | |||||||
Servicing UPB | $ | 2,990,572,817 | $ | 2,924,868,843 |
Prepayment Speeds | Average Life (Years) | Discount Rate | Prepayment Speeds | Average Life (Years) | Discount Rate | |||||||||||||||||||
June 30, 2018 | 4.09 | % | 6.8 | 9.51 | ||||||||||||||||||||
September 30, 2018 | 4.24 | % | 7.02 | 9.51 | ||||||||||||||||||||
December 31, 2017 | 3.67 | % | 6.34 | 10.01 | 3.67 | % | 6.34 | 10.01 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||
2018 | 2018 | |||||||
Major goods/service lines | ||||||||
At-need | $ | 2,463,070 | $ | 5,200,695 | ||||
Pre-need | 1,088,039 | 1,583,143 | ||||||
$ | 3,551,109 | $ | 6,783,838 | |||||
Timing of Revenue Recognition | ||||||||
Goods transferred at a point in time | $ | 2,413,657 | $ | 4,486,138 | ||||
Services transferred at a point in time | 1,137,452 | 2,297,700 | ||||||
$ | 3,551,109 | $ | 6,783,838 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
2018 | 2018 | |||||||
Major goods/service lines | ||||||||
At-need | $ | 2,772,859 | $ | 7,973,554 | ||||
Pre-need | 873,431 | 2,456,574 | ||||||
$ | 3,646,290 | $ | 10,430,128 | |||||
Timing of Revenue Recognition | ||||||||
Goods transferred at a point in time | $ | 2,448,836 | $ | 6,934,973 | ||||
Services transferred at a point in time | 1,197,454 | 3,495,155 | ||||||
$ | 3,646,290 | $ | 10,430,128 |
Three Months Ended June 30 | Six Months Ended June 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||
2018 | 2018 | 2018 | 2018 | |||||||||||||
Net mortuary and cemetery sales | $ | 3,551,109 | $ | 6,783,838 | $ | 3,646,290 | $ | 10,430,128 | ||||||||
Gains on investments and other assets | 1,676,165 | 2,085,253 | 245,448 | 2,330,701 | ||||||||||||
Net investment income | 36,129 | 99,601 | 56,284 | 194,425 | ||||||||||||
Other revenues | 17,602 | 82,722 | 60,921 | 105,103 | ||||||||||||
Revenues from external customers | 5,281,005 | 9,051,414 | 4,008,943 | 13,060,357 |
Contract Balances | ||||||||||||
Receivables (1) | Contract Asset (2) | Contract Liability (2) | ||||||||||
Opening (1/1/2018) | $ | 2,742,765 | $ | 856,479 | $ | 13,729,547 | ||||||
Closing (6/30/2018) | 2,909,679 | 678,148 | 13,015,719 | |||||||||
Increase/(decrease) | 166,914 | (178,331 | ) | (713,828 | ) | |||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets | ||||||||||||
(2) The contract asset and liability are netted together in Deferred pre-need cemetery and mortuary contract revenues on the condensed consolidated balance sheets. |
Contract Balances | ||||||||||||
Receivables (1) | Contract Asset (2) | Contract Liability (2) | ||||||||||
Opening (1/1/2018) | $ | 2,742,765 | $ | 856,479 | $ | 13,729,547 | ||||||
Closing (9/30/2018) | 3,010,663 | 697,832 | 13,140,329 | |||||||||
Increase/(decrease) | 267,898 | (158,647 | ) | (589,218 | ) | |||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets | ||||||||||||
(2) The contract asset and liability are netted together in Deferred pre-need cemetery and mortuary contract revenues on the condensed consolidated balance sheets. |
Other investments - insurance assignments | $ | 2,515,783 | ||
Other - intangible asset | 890,000 | |||
Total assets acquired | 3,405,783 | |||
Fair value of net assets acquired/consideration paid | $ | 3,405,783 |
Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Insurance premiums | $ | 19,192 | $ | 17,498 | 10 | % | $ | 38,002 | $ | 34,855 | 9 | % | $ | 18,639 | $ | 17,490 | 7 | % | $ | 56,641 | $ | 52,345 | 8 | % | ||||||||||||||||||||||||
Net investment income | 9,416 | 7,812 | 21 | % | 19,199 | 15,403 | 25 | % | 9,376 | 7,974 | 18 | % | 28,574 | 24,847 | 15 | % | ||||||||||||||||||||||||||||||||
Gains on investments and other assets | 460 | 282 | 63 | % | 22,320 | 1,470 | 1418 | % | 466 | (645 | ) | 172 | % | 22,786 | (623 | ) | 3757 | % | ||||||||||||||||||||||||||||||
Other | 304 | 278 | 9 | % | 716 | 306 | 134 | % | 482 | 259 | 86 | % | 1,198 | 543 | 121 | % | ||||||||||||||||||||||||||||||||
Total | $ | 29,372 | $ | 25,870 | 14 | % | $ | 80,237 | $ | 52,034 | 54 | % | $ | 28,963 | $ | 25,078 | 15 | % | $ | 109,199 | $ | 77,112 | 42 | % | ||||||||||||||||||||||||
Intersegment revenue | $ | 988 | $ | 1,589 | (38 | %) | $ | 1,807 | $ | 3,050 | (41 | %) | $ | 1,108 | $ | 1,880 | (41 | %) | $ | 2,915 | $ | 4,930 | (41 | %) | ||||||||||||||||||||||||
Earnings before income taxes | $ | 2,937 | $ | 2,799 | 5 | % | $ | 26,649 | $ | 4,283 | 522 | % | $ | 2,192 | $ | 497 | 341 | % | $ | 28,841 | $ | 4,780 | 503 | % |
Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortuary revenues | $ | 1,274 | $ | 1,182 | 8 | % | $ | 2,665 | $ | 2,588 | 3 | % | $ | 1,422 | $ | 1,168 | 22 | % | $ | 4,071 | $ | 3,735 | 9 | % | ||||||||||||||||||||||||
Cemetery revenues | 2,860 | 2,213 | 29 | % | 4,811 | 4,344 | 11 | % | 2,225 | 1,551 | 43 | % | 6,359 | 5,622 | 13 | % | ||||||||||||||||||||||||||||||||
Net investment income | 56 | 107 | (48 | %) | 194 | 310 | (37 | %) | ||||||||||||||||||||||||||||||||||||||||
Gains on investments and other assets | 1,236 | (88 | ) | (1505 | %) | 1,645 | 16 | 10181 | % | 245 | 151 | 62 | % | 2,331 | 166 | 1304 | % | |||||||||||||||||||||||||||||||
Other | (89 | ) | 1 | (9000 | %) | (70 | ) | (40 | ) | 75 | % | 61 | 23 | 165 | % | 105 | 74 | 42 | % | |||||||||||||||||||||||||||||
Total | $ | 5,281 | $ | 3,308 | 60 | % | $ | 9,051 | $ | 6,908 | 31 | % | $ | 4,009 | $ | 3,000 | 34 | % | $ | 13,060 | $ | 9,907 | 32 | % | ||||||||||||||||||||||||
Earnings before income taxes | $ | 2,071 | $ | 325 | 537 | % | $ | 2,932 | $ | 1,084 | 170 | % | $ | 782 | $ | 248 | 215 | % | $ | 3,714 | $ | 1,332 | 179 | % |
Three months ended June 30 (in thousands of dollars) | Six months ended June 30 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | 2018 | 2017 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||||||||||||||
Income from loan originations | $ | 13,473 | $ | 11,688 | 15 | % | $ | 25,335 | $ | 26,559 | (5 | %) | $ | 9,350 | $ | 12,931 | (28 | %) | $ | 30,201 | $ | 34,778 | (13 | %) | ||||||||||||||||||||||||
Secondary gains from investors | 20,740 | 32,446 | (36 | %) | 36,318 | 58,641 | (38 | %) | 22,315 | 28,667 | (22 | %) | 58,633 | 87,308 | (33 | %) | ||||||||||||||||||||||||||||||||
Other | 2,587 | 2,156 | 20 | % | 7,071 | 6,867 | 3 | % | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 34,213 | $ | 44,134 | (22 | %) | $ | 61,653 | $ | 85,200 | (28 | %) | $ | 34,252 | $ | 43,754 | (22 | %) | $ | 95,905 | $ | 128,953 | (26 | %) | ||||||||||||||||||||||||
Earnings before income taxes | $ | (847 | ) | $ | 870 | (197 | %) | $ | (4,232 | ) | $ | 1,525 | (378 | %) | $ | (762 | ) | $ | 393 | (294 | %) | $ | (4,994 | ) | $ | 1,919 | (360 | %) |
Period | (a) Total Number of Class A Shares Purchased | (b) Average Price Paid per Class A Share | (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program | (d) Maximum Number (or Approximate Dollar Value) of Class A Shares that May Yet Be Purchased Under the Plan or Program | ||||||||||||
7/1/2018-7/31/2018 | - | - | - | - | ||||||||||||
8/1/2018-8/31/2018 | - | - | - | - | ||||||||||||
9/1/2018-9/30/2018 | 10,000 | $ | 5.45 | - | 290,000 | |||||||||||
Total | 10,000 | $ | 5.45 | - | 290,000 |
3.1 | ||
3.2 | ||
4.1 | Specimen Class A Stock Certificate (1) | |
4.2 | Specimen Class C Stock Certificate (1) | |
4.3 | Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1) | |
7.1 | ||
10.1 | Amended and Restated Employee Stock Ownership Plan (ESOP) and Trust Agreement (1) | |
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
10.8 | ||
10.9 | Stock Repurchase Plan | |
21 | Subsidiaries of the Registrant | |
23.1 | ||
23.2 | ||
31.1 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.xml | Instance Document | |
101.xsd | Taxonomy Extension Schema Document | |
101.cal | Taxonomy Extension Calculation Linkbase Document | |
101.def | Taxonomy Extension Definition Linkbase Document | |
101.lab | Taxonomy Extension Label Linkbase Document | |
101.pre | Taxonomy Extension Presentation Linkbase Document | |
(1) | Incorporated by reference from Registration Statement on Form S‑1, as filed on September 29, 1987 | |
(2) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on | |
(3) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on | |
(4) | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on | |
(5) | Incorporated by reference from Report on Form 10-Q, as filed on | |
(6) | Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015 | |
(7) | Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016 | |
Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017 | ||
(9) | Incorporated by reference from Report on Form 8-K, as filed on August 4, 2017 | |
(10) | Incorporated by reference from Report on Form 10-Q, as filed on August 25, 2017 | |
(11) | Incorporated by reference from Form 8-K, as filed on |
Dated: | /s/ Scott M. Quist | |
Scott M. Quist | ||
Chairman, President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Dated: | /s/ Garrett S. Sill | |
Garrett S. Sill | ||
Chief Financial Officer and Treasurer | ||
(Principal Financial Officer and Principal Accounting Officer) |