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] |
Class A Common Stock, $2.00 par value | 13,820,079 | |
Title of Class | Number of Shares Outstanding as of November 14, 2017 | |
Class C Common Stock, $2.00 par value | 2,005,026 | |
Title of Class | Number of Shares Outstanding as of | |
Page No. | ||
Part I - Financial Information | ||
Item 1. | Financial Statements | |
Condensed Consolidated Balance Sheets as of | ||
Condensed Consolidated Statements of Earnings for the Three and Nine Months Ended | ||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended | ||
Condensed Consolidated Statements of Stockholders' Equity as of | ||
Condensed Consolidated Statements of Cash Flows for the | ||
Notes to Condensed Consolidated Financial Statements | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. | Controls and Procedures | |
Part II - Other Information | ||
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | 52 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
Signature Page |
Assets | March 31 2017 (As Restated) (Unaudited) | December 31 2016 (As Restated) | September 30 2017 (Unaudited) | December 31 2016 (As Restated) | ||||||||||||
Investments: | ||||||||||||||||
Fixed maturity securities, held to maturity, at amortized cost | $ | 186,445,498 | $ | 184,979,644 | $ | 230,811,272 | $ | 184,979,644 | ||||||||
Equity securities, available for sale, at estimated fair value | 10,735,239 | 10,573,356 | 5,957,488 | 9,911,256 | ||||||||||||
Mortgage loans on real estate and construction loans, held for investment net of allowances for loan losses of $1,955,443 and $1,748,783 for 2017 and 2016 | 134,123,773 | 149,181,578 | ||||||||||||||
Real estate held for investment, net of accumulated depreciation of $16,732,122 and $16,138,439 for 2017 and 2016 | 151,417,470 | 145,165,921 | ||||||||||||||
Policy loans and other investments, net of allowances for doubtful accounts of $1,050,111 and $1,119,630 for 2017 and 2016 | 41,773,152 | 40,937,146 | ||||||||||||||
Mortgage loans held for investment (net of allowances for loan losses of $2,051,818 and $1,748,783 for 2017 and 2016) | 147,300,691 | 148,990,732 | ||||||||||||||
Real estate held for investment (net of accumulated depreciation of $17,919,427 and $16,138,439 for 2017 and 2016) | 150,568,998 | 145,165,921 | ||||||||||||||
Policy loans and other investments (net of allowances for doubtful accounts of $1,142,257 and $1,119,630 for 2017 and 2016) | 42,489,149 | 41,599,246 | ||||||||||||||
Short-term investments | 28,346,922 | 27,560,040 | 17,830,990 | 27,560,040 | ||||||||||||
Accrued investment income | 3,008,839 | 2,972,596 | 3,391,688 | 2,972,596 | ||||||||||||
Total investments | 555,850,893 | 561,370,281 | 598,350,276 | 561,179,435 | ||||||||||||
Cash and cash equivalents | 85,069,717 | 38,987,430 | 38,593,462 | 38,987,430 | ||||||||||||
Mortgage loans sold to investors | 151,891,428 | 189,139,832 | ||||||||||||||
Receivables, net | 6,302,801 | 6,373,364 | ||||||||||||||
Loans held for sale (including $166,990,187 for 2017 and $-0- for 2016 at estimated fair value) | 201,895,906 | 189,139,832 | ||||||||||||||
Receivables (net of allowances for doubtful accounts of $2,758,394 and $2,355,482 for 2017 and 2016) | 8,613,364 | 8,410,546 | ||||||||||||||
Restricted assets | 10,230,360 | 10,391,394 | 10,815,726 | 10,391,394 | ||||||||||||
Cemetery perpetual care trust investments | 4,211,337 | 4,131,885 | 4,438,788 | 4,131,885 | ||||||||||||
Receivable from reinsurers | 13,227,385 | 13,079,668 | 13,394,586 | 13,079,668 | ||||||||||||
Cemetery land and improvements | 10,641,141 | 10,672,836 | 10,581,368 | 10,672,836 | ||||||||||||
Deferred policy and pre-need contract acquisition costs | 71,643,040 | 69,118,745 | 78,049,594 | 69,118,745 | ||||||||||||
Mortgage servicing rights, net | 19,432,993 | 18,872,362 | 20,396,568 | 18,872,362 | ||||||||||||
Property and equipment, net | 8,478,347 | 8,791,522 | 7,560,662 | 8,791,522 | ||||||||||||
Value of business acquired | 7,375,084 | 7,570,300 | 6,831,777 | 7,570,300 | ||||||||||||
Goodwill | 2,765,570 | 2,765,570 | 2,765,570 | 2,765,570 | ||||||||||||
Other | 12,397,267 | 10,413,394 | 5,616,664 | 9,310,040 | ||||||||||||
Total Assets | $ | 959,517,363 | $ | 951,678,583 | $ | 1,007,904,311 | $ | 952,421,565 |
March 31 2017 (As Restated) (Unaudited) | December 31 2016 (As Restated) | September 30 2017 (Unaudited) | December 31 2016 (As Restated) | |||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Future life, annuity, and other benefits | $ | 588,248,948 | $ | 584,067,692 | ||||||||||||
Future policy benefits and unpaid claims | $ | 600,643,308 | $ | 584,067,692 | ||||||||||||
Unearned premium reserve | 4,405,472 | 4,469,771 | 4,290,164 | 4,469,771 | ||||||||||||
Bank and other loans payable | 153,594,078 | 152,140,679 | 182,769,669 | 152,140,679 | ||||||||||||
Deferred pre-need cemetery and mortuary contract revenues | 12,350,470 | 12,360,249 | 12,716,761 | 12,360,249 | ||||||||||||
Cemetery perpetual care obligation | 3,624,895 | 3,598,580 | 3,679,925 | 3,598,580 | ||||||||||||
Accounts payable | 3,113,519 | 4,213,109 | 3,279,790 | 4,213,109 | ||||||||||||
Other liabilities and accrued expenses | 34,128,938 | 33,950,503 | 33,448,055 | 34,693,485 | ||||||||||||
Income taxes | 25,370,027 | 24,318,869 | 27,732,758 | 24,318,869 | ||||||||||||
Total liabilities | 824,836,347 | 819,119,452 | 868,560,430 | 819,862,434 | ||||||||||||
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 13,820,078 shares in 2017 and 13,819,006 shares in 2016 | 27,640,156 | 27,638,012 | ||||||||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 13,820,079 shares in 2017 and 13,819,006 shares in 2016 | 27,640,158 | 27,638,012 | ||||||||||||||
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 1,901,624 shares in 2017 and 1,902,229 shares in 2016 | 3,803,248 | 3,804,458 | ||||||||||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,005,026 shares in 2017 and 1,902,229 shares in 2016 | 4,010,052 | 3,804,458 | ||||||||||||||
Additional paid-in capital | 35,095,594 | 34,813,246 | 35,490,027 | 34,813,246 | ||||||||||||
Accumulated other comprehensive income, net of taxes | 286,114 | 264,822 | 336,631 | 264,822 | ||||||||||||
Retained earnings | 69,265,920 | 67,409,204 | 72,848,622 | 67,409,204 | ||||||||||||
Treasury stock at cost - 686,549 Class A shares in 2017 and 704,122 Class A shares in 2016 | (1,410,016 | ) | (1,370,611 | ) | ||||||||||||
Treasury stock at cost - 559,605 Class A shares in 2017 and 704,122 Class A shares in 2016 | (981,609 | ) | (1,370,611 | ) | ||||||||||||
Total stockholders' equity | 134,681,016 | 132,559,131 | 139,343,881 | 132,559,131 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 959,517,363 | $ | 951,678,583 | $ | 1,007,904,311 | $ | 952,421,565 |
Three Months Ended March 31 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Insurance premiums and other considerations | $ | 17,357,124 | $ | 14,451,575 | $ | 17,489,560 | $ | 17,157,319 | $ | 52,345,184 | $ | 47,508,420 | ||||||||||||
Net investment income | 9,563,282 | 8,992,191 | 8,361,466 | 8,089,857 | 25,559,113 | 23,484,280 | ||||||||||||||||||
Net mortuary and cemetery sales | 3,358,973 | 3,245,856 | 2,717,311 | 2,776,023 | 9,356,659 | 9,541,950 | ||||||||||||||||||
Realized gains on investments and other assets | 145,330 | 97,922 | ||||||||||||||||||||||
Realized gains (losses) on investments and other assets | (319,666 | ) | (39,169 | ) | 713,066 | 179,296 | ||||||||||||||||||
Other than temporary impairments on investments | (52,139 | ) | (73,630 | ) | (163,375 | ) | (30,000 | ) | (481,741 | ) | (133,630 | ) | ||||||||||||
Mortgage fee income | 38,427,854 | 41,212,008 | 41,597,573 | 53,195,763 | 122,086,734 | 146,967,246 | ||||||||||||||||||
Other | 2,028,873 | 1,530,426 | 2,288,982 | 1,798,864 | 6,393,691 | 4,944,670 | ||||||||||||||||||
Total revenues | 70,829,297 | 69,456,348 | 71,971,851 | 82,948,657 | 215,972,706 | 232,492,232 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||
Death benefits | 8,794,598 | 7,824,001 | 8,772,153 | 7,250,100 | 26,113,770 | 22,410,230 | ||||||||||||||||||
Surrenders and other policy benefits | 857,531 | 518,321 | 547,648 | 630,735 | 2,085,296 | 1,709,915 | ||||||||||||||||||
Increase in future policy benefits | 5,568,042 | 4,121,701 | 6,735,141 | 6,382,949 | 17,669,279 | 15,777,008 | ||||||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 2,264,039 | 2,212,836 | 2,238,955 | 2,301,107 | 6,271,763 | 6,221,495 | ||||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||||||
Commissions | 16,355,048 | 19,210,968 | 18,999,583 | 24,395,173 | 53,877,389 | 68,214,894 | ||||||||||||||||||
Personnel | 18,589,687 | 17,197,372 | 17,200,315 | 17,755,070 | 53,754,920 | 52,535,277 | ||||||||||||||||||
Advertising | 1,310,674 | 1,078,010 | 1,611,599 | 2,006,013 | 4,407,877 | 5,053,968 | ||||||||||||||||||
Rent and rent related | 2,139,538 | 2,064,325 | 2,257,259 | 2,122,708 | 6,693,292 | 6,235,430 | ||||||||||||||||||
Depreciation on property and equipment | 625,812 | 521,455 | 517,041 | 528,051 | 1,723,879 | 1,585,995 | ||||||||||||||||||
Provision for loan loss reserve | - | - | - | 600,000 | - | 600,000 | ||||||||||||||||||
Costs related to funding mortgage loans | 2,219,649 | 2,632,754 | 2,809,471 | 2,365,395 | 7,315,227 | 6,956,774 | ||||||||||||||||||
Other | 7,430,951 | 6,480,711 | 7,035,570 | 8,075,906 | 22,227,370 | 21,388,693 | ||||||||||||||||||
Interest expense | 1,254,039 | 1,064,195 | 1,655,870 | 1,476,137 | 4,295,263 | 3,775,483 | ||||||||||||||||||
Cost of goods and services sold-mortuaries and cemeteries | 521,919 | 458,619 | 453,229 | 485,783 | 1,507,295 | 1,396,574 | ||||||||||||||||||
Total benefits and expenses | 67,931,527 | 65,385,268 | 70,833,834 | 76,375,127 | 207,942,620 | 213,861,736 | ||||||||||||||||||
Earnings before income taxes | 2,897,770 | 4,071,080 | 1,138,017 | 6,573,530 | 8,030,086 | 18,630,496 | ||||||||||||||||||
Income tax expense | (1,037,770 | ) | (1,533,139 | ) | (41,179 | ) | (2,390,525 | ) | (2,587,384 | ) | (6,892,544 | ) | ||||||||||||
Net earnings | $ | 1,860,000 | $ | 2,537,941 | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | ||||||||||||
Net earnings per Class A Equivalent common share (1) | $ | 0.12 | $ | 0.17 | $ | 0.07 | $ | 0.28 | $ | 0.36 | $ | 0.80 | ||||||||||||
Net earnings per Class A Equivalent common share-assuming dilution (1) | $ | 0.12 | $ | 0.17 | $ | 0.07 | $ | 0.27 | $ | 0.35 | $ | 0.77 | ||||||||||||
Weighted-average Class A equivalent common share outstanding (1) | 15,058,153 | 14,656,450 | 15,256,857 | 14,830,078 | 15,159,569 | 14,744,779 | ||||||||||||||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 15,527,996 | 15,112,278 | 15,542,660 | 15,269,613 | 15,474,826 | 15,166,045 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net earnings | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | ||||||||
Other comprehensive income: | ||||||||||||||||
Unrealized gains on available for sale securities | 144,381 | 212,413 | 106,543 | 684,002 | ||||||||||||
Unrealized gains on derivative instruments | 554 | - | 3,170 | 5,541 | ||||||||||||
Other comprehensive income, before income tax | 144,935 | 212,413 | 109,713 | 689,543 | ||||||||||||
Income tax expense | (50,517 | ) | (74,383 | ) | (37,904 | ) | (239,339 | ) | ||||||||
Other comprehensive income, net of income tax | 94,418 | 138,030 | 71,809 | 450,204 | ||||||||||||
Comprehensive income | $ | 1,191,256 | $ | 4,321,035 | $ | 5,514,511 | $ | 12,188,156 |
Three Months Ended March 31 | ||||||||
2017 | 2016 | |||||||
Net earnings | $ | 1,860,000 | $ | 2,537,941 | ||||
Other comprehensive income: | ||||||||
Net unrealized gains on derivative instruments | 973 | 1,669 | ||||||
Net unrealized gains on available for sale securities | 20,319 | 297,897 | ||||||
Other comprehensive income | 21,292 | 299,566 | ||||||
Comprehensive income | $ | 1,881,292 | $ | 2,837,507 |
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, 2015 | $ | 26,218,200 | $ | 3,419,280 | $ | 30,232,582 | $ | (499,358 | ) | $ | 60,525,404 | $ | (2,179,429 | ) | $ | 117,716,679 | ||||||||||||
Net earnings | - | - | - | - | 11,737,952 | - | 11,737,952 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 450,204 | - | - | 450,204 | |||||||||||||||||||||
Grant of stock options | - | - | 253,427 | - | - | - | 253,427 | |||||||||||||||||||||
Exercise of stock options | 64,834 | - | 12,374 | - | - | - | 77,208 | |||||||||||||||||||||
Sale of treasury stock | - | - | 440,420 | - | - | 634,268 | 1,074,688 | |||||||||||||||||||||
Stock dividends | 274 | 12,768 | 30,779 | - | (43,821 | ) | - | - | ||||||||||||||||||||
Conversion Class C to Class A | 17,016 | (17,016 | ) | |||||||||||||||||||||||||
Balance at September 30, 2016 | $ | 26,300,324 | $ | 3,415,032 | $ | 30,969,582 | $ | (49,154 | ) | $ | 72,219,535 | $ | (1,545,161 | ) | $ | 131,310,158 | ||||||||||||
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 | |||||||||||||
Net earnings | - | - | - | - | 5,442,702 | - | 5,442,702 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 71,809 | - | - | 71,809 | |||||||||||||||||||||
Grant of stock options | - | - | 305,741 | - | - | - | 305,741 | |||||||||||||||||||||
Exercise of stock options | 2 | 206,804 | (206,806 | ) | - | - | - | - | ||||||||||||||||||||
Sale of treasury stock | - | - | 575,496 | - | - | 574,472 | 1,149,968 | |||||||||||||||||||||
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 | ) | - | - | - | - | - | ||||||||||||||||||||
Balance at September 30, 2017 | $ | 27,640,158 | $ | 4,010,052 | $ | 35,490,027 | $ | 336,631 | $ | 72,848,622 | $ | (981,609 | ) | $ | 139,343,881 |
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, 2015 | $ | 26,218,200 | $ | 3,419,280 | $ | 30,232,582 | $ | (499,358 | ) | $ | 60,525,404 | $ | (2,179,429 | ) | $ | 117,716,679 | ||||||||||||
Net earnings | - | - | - | - | 2,537,941 | - | 2,537,941 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 299,566 | - | - | 299,566 | |||||||||||||||||||||
Grant of stock options | - | - | 84,452 | - | - | - | 84,452 | |||||||||||||||||||||
Exercise of stock options | 56,920 | - | 4,367 | - | - | - | 61,287 | |||||||||||||||||||||
Sale of treasury stock | - | - | 136,826 | - | - | 149,639 | 286,465 | |||||||||||||||||||||
Stock Dividends | 274 | 12,768 | 30,779 | - | (43,821 | ) | - | - | ||||||||||||||||||||
Balance at March 31, 2016 | $ | 26,275,394 | $ | 3,432,048 | $ | 30,489,006 | $ | (199,792 | ) | $ | 63,019,524 | $ | (2,029,790 | ) | $ | 120,986,390 | ||||||||||||
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 | |||||||||||||
Net earnings | - | - | - | - | 1,860,000 | - | 1,860,000 | |||||||||||||||||||||
Other comprehensive income | - | - | - | 21,292 | - | - | 21,292 | |||||||||||||||||||||
Grant of stock options | - | - | 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 | ) | - | - | - | - | - | ||||||||||||||||||||
Balance at March 31, 2017 | $ | 27,640,156 | $ | 3,803,248 | $ | 35,095,594 | $ | 286,114 | $ | 69,265,920 | $ | (1,410,016 | ) | $ | 134,681,016 |
Nine Months Ended September 30 | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net cash provided by operating activities | $ | 6,030,453 | $ | 17,639,672 | ||||
Cash flows from investing activities: | ||||||||
Securities held to maturity: | ||||||||
Purchase-fixed maturity securities | (59,325,291 | ) | (6,519,416 | ) | ||||
Calls and maturities - fixed maturity securities | 11,933,573 | 10,032,336 | ||||||
Securities available for sale: | ||||||||
Purchase - equity securities | (5,126,062 | ) | (3,726,194 | ) | ||||
Sales - equity securities | 9,153,786 | 3,349,728 | ||||||
Purchases of short-term investments | (27,483,124 | ) | (13,379,112 | ) | ||||
Sales of short-term investments | 37,212,174 | 7,185,582 | ||||||
Net changes in restricted assets | (409,625 | ) | (438,204 | ) | ||||
Net changes in perpetual care trusts | (231,415 | ) | (966,367 | ) | ||||
Mortgage loans, policy loans, and other investments made | (340,424,956 | ) | (338,457,602 | ) | ||||
Payments received for mortgage loans, policy loans and other investments | 344,278,996 | 330,303,396 | ||||||
Purchase of property and equipment | (508,846 | ) | (1,303,979 | ) | ||||
Sale of property and equipment | 9,977 | 34,000 | ||||||
Purchase of real estate | (12,474,490 | ) | (19,448,152 | ) | ||||
Sale of real estate | 8,612,307 | 5,672,484 | ||||||
Cash paid for purchase of subsidiaries, net of cash acquired | - | (4,328,520 | ) | |||||
Net cash used in investing activities | (34,782,996 | ) | (31,990,020 | ) | ||||
Cash flows from financing activities: | ||||||||
Investment contract receipts | 9,457,285 | 8,401,542 | ||||||
Investment contract withdrawals | (11,522,652 | ) | (9,957,964 | ) | ||||
Proceeds from stock options exercised | - | 77,208 | ||||||
Purchase of treasury stock | (185,470 | ) | - | |||||
Repayment of bank loans | (2,142,382 | ) | (1,169,233 | ) | ||||
Proceeds from borrowing on bank loans | 16,729,056 | 2,523,670 | ||||||
Net change in warehouse line borrowings | 16,022,738 | 23,893,122 | ||||||
Net change in line of credit borrowings | - | 1,439,650 | ||||||
Net cash provided by financing activities | 28,358,575 | 25,207,995 | ||||||
Net change in cash and cash equivalents | (393,968 | ) | 10,857,647 | |||||
Cash and cash equivalents at beginning of period | 38,987,430 | 40,053,242 | ||||||
Cash and cash equivalents at end of period | $ | 38,593,462 | $ | 50,910,889 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid (received) during the year for: | ||||||||
Interest (net of amount capitalized) | $ | 4,188,579 | $ | 3,781,423 | ||||
Income taxes (net of refunds) | (788,601 | ) | 2,538,097 | |||||
Non Cash Operating, Investing and Financing Activities: | ||||||||
Transfer of loans held for sale to mortgage loans held for investment | $ | 5,032,147 | $ | 7,386,432 | ||||
Accrued real estate construction costs and retainage | 1,932,790 | - | ||||||
Mortgage loans foreclosed into real estate | 1,576,196 | 1,703,476 | ||||||
Benefit plans funded with treasury stock | 1,149,968 | 1,074,688 |
Three Months Ended March 31 | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net cash provided by operating activities | $ | 30,431,376 | $ | 27,275,404 | ||||
Cash flows from investing activities: | ||||||||
Securities held to maturity: | ||||||||
Purchase-fixed maturity securities | (2,575,997 | ) | (4,481,397 | ) | ||||
Calls and maturities - fixed maturity securities | 830,595 | 2,470,005 | ||||||
Securities available for sale: | ||||||||
Purchase - equity securities | (4,190,458 | ) | (1,651,302 | ) | ||||
Sales - equity securities | 4,092,734 | 1,487,110 | ||||||
Purchase of short-term investments | (3,053,797 | ) | (3,258,070 | ) | ||||
Sales of short-term investments | 2,266,915 | 2,364,571 | ||||||
Purchase of restricted assets | 174,197 | 1,242,342 | ||||||
Changes in assets for perpetual care trusts | (104,731 | ) | (51,461 | ) | ||||
Amount received for perpetual care trusts | 26,315 | 11,735 | ||||||
Mortgage loans, policy loans, and other investments made | (108,649,435 | ) | (112,920,364 | ) | ||||
Payments received for mortgage loans, policy loans and other investments | 127,506,014 | 99,348,725 | ||||||
Purchase of property and equipment | (312,640 | ) | (1,084,975 | ) | ||||
Purchase of real estate | (3,103,471 | ) | (3,432,051 | ) | ||||
Sale of real estate | 2,891,887 | 843,701 | ||||||
Net cash provided by (used in) investing activities | 15,798,128 | (19,111,431 | ) | |||||
Cash flows from financing activities: | ||||||||
Annuity contract receipts | 3,051,883 | 2,516,596 | ||||||
Annuity contract withdrawals | (4,468,624 | ) | (3,025,833 | ) | ||||
Proceeds from stock options exercised | - | 61,287 | ||||||
Purchase of treasury stock | (185,470 | ) | - | |||||
Repayment of bank loans on notes and contracts | (673,454 | ) | (390,168 | ) | ||||
Proceeds from borrowing on bank loans | 7,255,187 | 737,232 | ||||||
Net change in warehouse line borrowings | (6,376,739 | ) | (1,412,370 | ) | ||||
Change in line of credit borrowings | 1,250,000 | - | ||||||
Net cash used in financing activities | (147,217 | ) | (1,513,256 | ) | ||||
Net change in cash and cash equivalents | 46,082,287 | 6,650,717 | ||||||
Cash and cash equivalents at beginning of period | 38,987,430 | 40,053,242 | ||||||
Cash and cash equivalents at end of period | $ | 85,069,717 | $ | 46,703,959 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid during the year for: | ||||||||
Interest (net of amount capitalized) | $ | 1,234,420 | $ | 1,079,891 | ||||
Income taxes (net of refunds) | (3,215 | ) | 12,321 | |||||
Non Cash Investing and Financing Activities: | ||||||||
Accrued real estate construction costs and retainage | $ | 6,794,065 | $ | - | ||||
Transfer of loans held for sale to mortgage loans held for investment | 5,032,147 | 7,386,432 | ||||||
Mortgage loans foreclosed into real estate | 204,839 | 87,000 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
September 30, 2017 | ||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||
Bonds: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 54,279,156 | $ | 237,071 | $ | (226,543 | ) | $ | 54,289,684 | |||||||
Obligations of states and political subdivisions | 5,865,790 | 124,685 | (77,272 | ) | 5,913,203 | |||||||||||
Corporate securities including public utilities | 160,278,125 | 14,088,157 | (1,285,361 | ) | 173,080,921 | |||||||||||
Mortgage-backed securities | 9,764,566 | 253,573 | (171,423 | ) | 9,846,716 | |||||||||||
Redeemable preferred stock | 623,635 | 53,403 | - | 677,038 | ||||||||||||
Total fixed maturity securities held to maturity | $ | 230,811,272 | $ | 14,756,889 | $ | (1,760,599 | ) | $ | 243,807,562 | |||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ | 6,310,307 | $ | 467,132 | $ | (819,951 | ) | $ | 5,957,488 | |||||||
Total equity securities available for sale at estimated fair value | $ | 6,310,307 | $ | 467,132 | $ | (819,951 | ) | $ | 5,957,488 | |||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||
Residential | $ | 65,759,761 | ||||||||||||||
Residential construction | 41,306,722 | |||||||||||||||
Commercial | 42,923,761 | |||||||||||||||
Less: Unamortized deferred loan fees, net | (637,735 | ) | ||||||||||||||
Less: Allowance for loan losses | (2,051,818 | ) | ||||||||||||||
Total mortgage loans held for investment | $ | 147,300,691 | ||||||||||||||
Real estate held for investment net of accumulated depreciation: | ||||||||||||||||
Residential | $ | 69,469,220 | ||||||||||||||
Commercial | 81,099,778 | |||||||||||||||
Total real estate held for investment | $ | 150,568,998 | ||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||
Policy loans | $ | 6,677,924 | ||||||||||||||
Insurance assignments | 33,340,431 | |||||||||||||||
Federal Home Loan Bank stock | 689,400 | |||||||||||||||
Other investments | 2,923,681 | |||||||||||||||
Less: Allowance for doubtful accounts | (1,142,287 | ) | ||||||||||||||
Total policy loans and other investments | $ | 42,489,149 | ||||||||||||||
Short-term investments at amortized cost | $ | 17,830,990 | ||||||||||||||
Accrued investment income | $ | 3,391,688 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
March 31, 2017 | ||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||
Bonds: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 4,357,040 | $ | 244,853 | $ | (57,240 | ) | $ | 4,544,653 | |||||||
Obligations of states and political subdivisions | 5,995,384 | 146,273 | (132,140 | ) | 6,009,517 | |||||||||||
Corporate securities including public utilities | 165,716,233 | 11,763,828 | (2,443,238 | ) | 175,036,823 | |||||||||||
Mortgage-backed securities | 9,753,206 | 246,004 | (233,586 | ) | 9,765,624 | |||||||||||
Redeemable preferred stock | 623,635 | 14,954 | (8,627 | ) | 629,962 | |||||||||||
Total fixed maturity securities held to maturity | $ | 186,445,498 | $ | 12,415,912 | $ | (2,874,831 | ) | $ | 195,986,579 | |||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ | 11,139,482 | $ | 412,535 | $ | (816,778 | ) | $ | 10,735,239 | |||||||
Total equity securities available for sale at estimated fair value | $ | 11,139,482 | $ | 412,535 | $ | (816,778 | ) | $ | 10,735,239 | |||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | ||||||||||||||||
Residential | $ | 64,629,906 | ||||||||||||||
Residential construction | 33,917,309 | |||||||||||||||
Commercial | 37,532,001 | |||||||||||||||
Less: Allowance for loan losses | (1,955,443 | ) | ||||||||||||||
Total mortgage loans on real estate and construction loans held for investment | $ | 134,123,773 | ||||||||||||||
Real estate held for investment - net of depreciation | $ | 151,417,470 | ||||||||||||||
Policy loans and other investments are shown at amortized cost: | ||||||||||||||||
Policy loans | $ | 6,666,500 | ||||||||||||||
Insurance assignments | 33,857,966 | |||||||||||||||
Promissory notes | 48,797 | |||||||||||||||
Other investments | 2,250,000 | |||||||||||||||
Less: Allowance for doubtful accounts | (1,050,111 | ) | ||||||||||||||
Total policy loans and other investments | $ | 41,773,152 | ||||||||||||||
Short-term investments at amortized cost | $ | 28,346,922 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
December 31, 2016: | ||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ | 4,475,065 | $ | 249,028 | $ | (66,111 | ) | $ | 4,657,982 | $ | 4,475,065 | $ | 249,028 | $ | (66,111 | ) | $ | 4,657,982 | ||||||||||||||
Obligations of states and political subdivisions | 6,017,225 | 153,514 | (133,249 | ) | 6,037,490 | 6,017,225 | 153,514 | (133,249 | ) | 6,037,490 | ||||||||||||||||||||||
Corporate securities including public utilities | 164,375,636 | 10,440,989 | (3,727,013 | ) | 171,089,612 | 164,375,636 | 10,440,989 | (3,727,013 | ) | 171,089,612 | ||||||||||||||||||||||
Mortgage-backed securities | 9,488,083 | 221,400 | (280,871 | ) | 9,428,612 | 9,488,083 | 221,400 | (280,871 | ) | 9,428,612 | ||||||||||||||||||||||
Redeemable preferred stock | 623,635 | 13,418 | - | 637,053 | 623,635 | 13,418 | - | 637,053 | ||||||||||||||||||||||||
Total fixed maturity securities held to maturity | $ | 184,979,644 | $ | 11,078,349 | $ | (4,207,244 | ) | $ | 191,850,749 | $ | 184,979,644 | $ | 11,078,349 | $ | (4,207,244 | ) | $ | 191,850,749 | ||||||||||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||||||||||||||||||
Common stock: | ||||||||||||||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 10,985,338 | $ | 447,110 | $ | (859,092 | ) | $ | 10,573,356 | $ | 10,323,238 | $ | 447,110 | $ | (859,092 | ) | $ | 9,911,256 | ||||||||||||||
Total securities available for sale carried at estimated fair value | $ | 10,985,338 | $ | 447,110 | $ | (859,092 | ) | $ | 10,573,356 | $ | 10,323,238 | $ | 447,110 | $ | (859,092 | ) | $ | 9,911,256 | ||||||||||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Mortgage loans held for investment at amortized cost: | ||||||||||||||||||||||||||||||||
Residential | $ | 58,593,622 | $ | 58,593,622 | ||||||||||||||||||||||||||||
Residential construction | 40,800,117 | 40,800,117 | ||||||||||||||||||||||||||||||
Commercial | 51,536,622 | 51,536,622 | ||||||||||||||||||||||||||||||
Less: Unamortized deferred loan fees, net | (190,846 | ) | ||||||||||||||||||||||||||||||
Less: Allowance for loan losses | (1,748,783 | ) | (1,748,783 | ) | ||||||||||||||||||||||||||||
Total mortgage loans on real estate and construction loans held for investment | $ | 149,181,578 | ||||||||||||||||||||||||||||||
Total mortgage loans held for investment | $ | 148,990,732 | ||||||||||||||||||||||||||||||
Real estate held for investment - net of depreciation | $ | 145,165,921 | ||||||||||||||||||||||||||||||
Real estate held for investment net of accumlated depreciation: | ||||||||||||||||||||||||||||||||
Residential | $ | 76,191,985 | ||||||||||||||||||||||||||||||
Commercial | 68,973,936 | |||||||||||||||||||||||||||||||
Total real estate held for investment | $ | 145,165,921 | ||||||||||||||||||||||||||||||
Policy loans and other investments are shown at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans and other investments at amortized cost: | ||||||||||||||||||||||||||||||||
Policy loans | $ | 6,694,148 | $ | 6,694,148 | ||||||||||||||||||||||||||||
Insurance assignments | 33,548,079 | 33,548,079 | ||||||||||||||||||||||||||||||
Promissory notes | 48,797 | 48,797 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 662,100 | |||||||||||||||||||||||||||||||
Other investments | 1,765,752 | 1,765,752 | ||||||||||||||||||||||||||||||
Less: Allowance for doubtful accounts | (1,119,630 | ) | (1,119,630 | ) | ||||||||||||||||||||||||||||
Total policy loans and other investments | $ | 40,937,146 | $ | 41,599,246 | ||||||||||||||||||||||||||||
Short-term investments at amortized cost | $ | 27,560,040 | $ | 27,560,040 | ||||||||||||||||||||||||||||
Accrued investment income | $ | 2,972,596 |
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 March 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
At September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies | $ | 57,240 | $ | 1,345,231 | $ | - | $ | - | $ | 57,240 | $ | 1,345,231 | $ | 182,493 | $ | 51,456,444 | $ | 44,050 | $ | 851,779 | $ | 226,543 | $ | 52,308,223 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 132,140 | 3,270,595 | - | - | 132,140 | 3,270,595 | 18,357 | 2,486,400 | 58,915 | 1,651,253 | 77,272 | 4,137,653 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,094,907 | 29,075,748 | 1,348,331 | 12,362,900 | 2,443,238 | 41,438,648 | 286,166 | 16,526,010 | 999,195 | 10,820,005 | 1,285,361 | 27,346,015 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 126,828 | 1,745,284 | 106,758 | 1,470,559 | 233,586 | 3,215,843 | 68,972 | 2,026,033 | 102,451 | 1,156,803 | 171,423 | 3,182,836 | ||||||||||||||||||||||||||||||||||||
Redeemable preferred stock | 8,627 | 98,110 | - | - | 8,627 | 98,110 | ||||||||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 1,419,742 | $ | 35,534,968 | $ | 1,455,089 | $ | 13,833,459 | $ | 2,874,831 | $ | 49,368,427 | $ | 555,988 | $ | 72,494,887 | $ | 1,204,611 | $ | 14,479,840 | $ | 1,760,599 | $ | 86,974,727 | ||||||||||||||||||||||||
At December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies | $ | 66,111 | $ | 1,342,088 | $ | - | $ | - | $ | 66,111 | $ | 1,342,088 | $ | 66,111 | $ | 1,342,088 | $ | - | $ | - | $ | 66,111 | $ | 1,342,088 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 133,249 | 3,686,856 | - | - | 133,249 | 3,686,856 | 133,249 | 3,686,856 | - | - | 133,249 | 3,686,856 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 1,728,312 | 41,796,016 | 1,998,701 | 12,969,135 | 3,727,013 | 54,765,151 | 1,728,312 | 41,796,016 | 1,998,701 | 12,969,135 | 3,727,013 | 54,765,151 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 176,715 | 4,176,089 | 104,156 | 940,278 | 280,871 | 5,116,367 | 176,715 | 4,176,089 | 104,156 | 940,278 | 280,871 | 5,116,367 | ||||||||||||||||||||||||||||||||||||
Total unrealized losses | $ | 2,104,387 | $ | 51,001,049 | $ | 2,102,857 | $ | 13,909,413 | $ | 4,207,244 | $ | 64,910,462 | $ | 2,104,387 | $ | 51,001,049 | $ | 2,102,857 | $ | 13,909,413 | $ | 4,207,244 | $ | 64,910,462 |
Amortized Cost | Estimated Fair Value | |||||||
Held to Maturity: | ||||||||
Due in 2017 | $ | 1,205,533 | $ | 1,208,929 | ||||
Due in 2018 through 2021 | 77,063,707 | 78,846,158 | ||||||
Due in 2022 through 2026 | 54,265,268 | 56,731,089 | ||||||
Due after 2026 | 87,888,563 | 96,497,632 | ||||||
Mortgage-backed securities | 9,764,566 | 9,846,716 | ||||||
Redeemable preferred stock | 623,635 | 677,038 | ||||||
Total held to maturity | $ | 230,811,272 | $ | 243,807,562 |
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 September 30, 2017 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 150,581 | 108 | $ | 669,370 | 92 | $ | 819,951 | ||||||||||||
Total unrealized losses | $ | 150,581 | 108 | $ | 669,370 | 92 | $ | 819,951 | ||||||||||||
Fair Value | $ | 988,159 | $ | 1,444,994 | $ | 2,433,153 | ||||||||||||||
At December 31, 2016 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||
Total unrealized losses | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||
Fair Value | $ | 2,063,144 | $ | 1,685,874 | $ | 3,749,018 |
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 March 31, 2017 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 178,006 | 149 | $ | 638,772 | 105 | $ | 816,778 | ||||||||||||
Total unrealized losses | $ | 178,006 | 149 | $ | 638,772 | 105 | $ | 816,778 | ||||||||||||
Fair Value | $ | 3,955,133 | $ | 1,154,812 | $ | 5,109,945 | ||||||||||||||
At December 31, 2016 | ||||||||||||||||||||
Industrial, miscellaneous and all other | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||
Total unrealized losses | $ | 215,563 | 124 | $ | 643,529 | 104 | $ | 859,092 | ||||||||||||
Fair Value | $ | 2,063,144 | $ | 1,685,874 | $ | 3,749,018 |
Amortized Cost | Estimated Fair Value | |||||||
Held to Maturity: | ||||||||
Due in 2017 | $ | 5,625,049 | $ | 5,677,028 | ||||
Due in 2018 through 2021 | 42,733,718 | 44,794,103 | ||||||
Due in 2022 through 2026 | 43,263,792 | 45,020,917 | ||||||
Due after 2026 | 84,446,098 | 90,098,945 | ||||||
Mortgage-backed securities | 9,753,206 | 9,765,624 | ||||||
Redeemable preferred stock | 623,635 | 629,962 | ||||||
Total held to maturity | $ | 186,445,498 | $ | 195,986,579 |
Cost | Estimated Fair Value | |||||||
Available for Sale: | ||||||||
Common stock | $ | 11,139,482 | $ | 10,735,239 | ||||
Total available for sale | $ | 11,139,482 | $ | 10,735,239 |
Three Months Ended Mar 31 | ||||||||
2017 | 2016 | |||||||
Fixed maturity securities held to maturity: | ||||||||
Gross realized gains | $ | 2,434 | $ | - | ||||
Gross realized losses | - | (24,795 | ) | |||||
Other than temporary impairments | (52,139 | ) | (30,000 | ) | ||||
Securities available for sale: | ||||||||
Gross realized gains | 60,978 | 63,495 | ||||||
Gross realized losses | (4,556 | ) | (23,878 | ) | ||||
Other than temporary impairments | - | (43,630 | ) | |||||
Other assets: | ||||||||
Gross realized gains | 456,275 | 84,768 | ||||||
Gross realized losses | (369,801 | ) | (1,668 | ) | ||||
Total | $ | 93,191 | $ | 24,292 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||
Gross realized gains | $ | 110,529 | $ | 65,179 | $ | 163,950 | $ | 259,635 | ||||||||
Gross realized losses | (651,754 | ) | (4,527 | ) | (686,819 | ) | (7,405 | ) | ||||||||
Other than temporary impairments | (100,000 | ) | (30,000 | ) | (418,366 | ) | (90,000 | ) | ||||||||
Equity securities available for sale: | ||||||||||||||||
Gross realized gains | 25,898 | 36,751 | 132,350 | 176,331 | ||||||||||||
Gross realized losses | (26 | ) | (4,544 | ) | (58,464 | ) | (37,146 | ) | ||||||||
Other than temporary impairments | (63,375 | ) | - | (63,375 | ) | (43,630 | ) | |||||||||
Other assets: | ||||||||||||||||
Gross realized gains | 225,022 | 191,992 | 2,006,721 | 468,675 | ||||||||||||
Gross realized losses | (29,335 | ) | (324,020 | ) | (844,672 | ) | (680,794 | ) | ||||||||
Total | $ | (483,041 | ) | $ | (69,169 | ) | $ | 231,325 | $ | 45,666 |
Three Months Ended Mar 31 | ||||||||
2017 | 2016 | |||||||
Fixed maturity securities | $ | 2,368,710 | $ | 2,050,569 | ||||
Equity securities | 54,786 | 71,041 | ||||||
Mortgage loans on real estate | 2,223,139 | 2,026,515 | ||||||
Real estate | 2,894,331 | 2,838,484 | ||||||
Policy loans | 193,734 | 182,206 | ||||||
Insurance assignments | 3,364,642 | 3,104,788 | ||||||
Other investments | 7,543 | - | ||||||
Short-term investments, principally interest on sale of mortgage loans and other | 1,804,746 | 1,863,144 | ||||||
Gross investment income | 12,911,631 | 12,136,747 | ||||||
Investment expenses | (3,348,349 | ) | (3,144,556 | ) | ||||
Net investment income | $ | 9,563,282 | $ | 8,992,191 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Fixed maturity securities | $ | 2,692,586 | $ | 2,410,641 | $ | 7,475,156 | $ | 6,472,847 | ||||||||
Equity securities | 66,320 | 78,402 | 209,517 | 208,696 | ||||||||||||
Mortgage loans held for investment | 2,973,349 | 2,830,853 | 8,803,257 | 8,238,249 | ||||||||||||
Real estate held for investment | 2,818,672 | 2,736,301 | 8,540,756 | 8,162,574 | ||||||||||||
Policy loans | 195,098 | 205,537 | 621,854 | 558,778 | ||||||||||||
Insurance assignments | 3,234,520 | 2,952,170 | 9,943,561 | 8,915,654 | ||||||||||||
Other investments | 16,051 | - | 36,041 | 13,962 | ||||||||||||
Short-term investments | 109,939 | 20,978 | 311,989 | 66,480 | ||||||||||||
Gross investment income | 12,106,535 | 11,234,882 | 35,942,131 | 32,637,240 | ||||||||||||
Investment expenses | (3,745,069 | ) | (3,145,025 | ) | (10,383,018 | ) | (9,152,960 | ) | ||||||||
Net investment income | $ | 8,361,466 | $ | 8,089,857 | $ | 25,559,113 | $ | 23,484,280 |
Net Ending Balance | Total Square Footage | |||||||||||||||||||
March 31 | December 31 | March 31 | December 31 | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Arizona | $ | 447,229 | (1 | ) | $ | 450,538 | (1 | ) | 16,270 | 16,270 | ||||||||||
Arkansas | 99,319 | 100,369 | 3,200 | 3,200 | ||||||||||||||||
Kansas | 12,512,451 | 12,450,297 | 222,679 | 222,679 | ||||||||||||||||
Louisiana | 512,324 | 518,700 | 7,063 | 7,063 | ||||||||||||||||
Mississippi | 3,795,355 | 3,818,985 | 33,821 | 33,821 | ||||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||||
Texas | 3,760,499 | 3,734,974 | 23,470 | 23,470 | ||||||||||||||||
Utah | 57,104,854 | (2 | ) | 47,893,073 | (2 | ) | 433,244 | 433,244 | ||||||||||||
$ | 78,239,031 | $ | 68,973,936 | 739,747 | 739,747 |
Net Ending Balance | Total Square Footage | |||||||||||||||||
September 30 | December 31 | September 30 | December 31 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Arizona | $ | 4,000 | (1 | ) | $ | 450,538 | (1 | ) | - | 16,270 | ||||||||
Arkansas | 97,219 | 100,369 | 3,200 | 3,200 | ||||||||||||||
Kansas | 11,993,029 | 12,450,297 | 222,679 | 222,679 | ||||||||||||||
Louisiana | 499,573 | 518,700 | 7,063 | 7,063 | ||||||||||||||
Mississippi | 3,748,324 | 3,818,985 | 33,821 | 33,821 | ||||||||||||||
New Mexico | 7,000 | (1 | ) | 7,000 | (1 | ) | - | - | ||||||||||
Texas | 3,728,960 | 3,734,974 | 23,470 | 23,470 | ||||||||||||||
Utah | 61,021,673 | (2 | ) | 47,893,073 | (2 | ) | 433,244 | 433,244 | ||||||||||
$ | 81,099,778 | $ | 68,973,936 | 723,477 | 739,747 | |||||||||||||
(1) Includes undeveloped land | ||||||||||||||||||
(2) Includes 53rd Center completed in July 2017 |
Net Ending Balance | ||||||||
March 31 | December 31 | |||||||
2017 | 2016 | |||||||
Arizona | $ | 739,333 | $ | 742,259 | ||||
California | 5,404,417 | 5,848,389 | ||||||
Colorado | 204,538 | 364,489 | ||||||
Florida | 8,273,416 | 8,327,355 | ||||||
Ohio | 46,658 | 46,658 | ||||||
Oklahoma | 17,500 | - | ||||||
Texas | 777,843 | 1,091,188 | ||||||
Utah | 57,428,553 | 59,485,466 | ||||||
Washington | 286,181 | 286,181 | ||||||
$ | 73,178,439 | $ | 76,191,985 |
Net Ending Balance | ||||||||
September 30 | December 31 | |||||||
2017 | 2016 | |||||||
Arizona | $ | 217,516 | $ | 742,259 | ||||
California | 5,663,871 | 5,848,389 | ||||||
Colorado | - | 364,489 | ||||||
Florida | 7,311,913 | 8,327,355 | ||||||
Hawaii | 712,286 | - | ||||||
Ohio | 46,658 | 46,658 | ||||||
Oklahoma | 17,500 | - | ||||||
Texas | 511,486 | 1,091,188 | ||||||
Utah | 54,701,809 | 59,485,466 | ||||||
Washington | 286,181 | 286,181 | ||||||
$ | 69,469,220 | $ | 76,191,985 |
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 | 5,522 | 27 | % | Life Insurance Operations | 5,522 | 27 | % | ||||||||||
(1) This asset is included in property and equipment on the Condensed Consolidated Balance Sheet | ||||||||||||||||||
(1) This asset is included in property and equipment on the condensed consolidated balance sheet | (1) This asset is included in property and equipment on the condensed consolidated balance sheet |
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | Allowance for Credit Losses and Recorded Investment in Mortgage Loans | Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||||||||||||||||
Commercial | Residential | Residential Construction | Total | Commercial | Residential | Residential Construction | Total | |||||||||||||||||||||||||
March 31, 2017 | ||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance - January 1, 2017 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||||||||||
Charge-offs | - | (16,226 | ) | - | (16,226 | ) | - | (49,775 | ) | (64,894 | ) | (114,669 | ) | |||||||||||||||||||
Provision | - | 222,886 | - | 222,886 | - | 417,704 | - | 417,704 | ||||||||||||||||||||||||
Ending balance -March 31, 2017 | $ | 187,129 | $ | 1,668,200 | $ | 100,114 | $ | 1,955,443 | ||||||||||||||||||||||||
Ending balance - September 30, 2017 | $ | 187,129 | $ | 1,829,469 | $ | 35,220 | $ | 2,051,818 | ||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 423,487 | $ | - | $ | 423,487 | $ | - | $ | 411,172 | $ | - | $ | 411,172 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,244,713 | $ | 100,114 | $ | 1,531,956 | $ | 187,129 | $ | 1,418,297 | $ | 35,220 | $ | 1,640,646 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 37,532,001 | $ | 64,629,906 | $ | 33,917,309 | $ | 136,079,216 | $ | 42,923,761 | $ | 65,759,761 | $ | 41,306,722 | $ | 149,990,244 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 203,264 | $ | 4,842,306 | $ | 484,196 | $ | 5,529,766 | $ | 203,806 | $ | 5,425,757 | $ | - | $ | 5,629,563 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 37,328,737 | $ | 59,787,600 | $ | 33,433,113 | $ | 130,549,450 | $ | 42,719,955 | $ | 60,334,004 | $ | 41,306,722 | $ | 144,360,681 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance - January 1, 2016 | $ | 187,129 | $ | 1,560,877 | $ | 100,114 | $ | 1,848,120 | $ | 187,129 | $ | 1,560,877 | $ | 100,114 | $ | 1,848,120 | ||||||||||||||||
Charge-offs | - | (420,135 | ) | - | (420,135 | ) | - | (420,135 | ) | - | (420,135 | ) | ||||||||||||||||||||
Provision | - | 320,798 | - | 320,798 | - | 320,798 | - | 320,798 | ||||||||||||||||||||||||
Ending balance - December 31, 2016 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | $ | 187,129 | $ | 1,461,540 | $ | 100,114 | $ | 1,748,783 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 374,501 | $ | - | $ | 374,501 | $ | - | $ | 374,501 | $ | - | $ | 374,501 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,129 | $ | 1,087,039 | $ | 100,114 | $ | 1,374,282 | $ | 187,129 | $ | 1,087,039 | $ | 100,114 | $ | 1,374,282 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 51,536,622 | $ | 58,593,622 | $ | 40,800,117 | $ | 150,930,361 | $ | 51,536,622 | $ | 58,593,622 | $ | 40,800,117 | $ | 150,930,361 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 202,992 | $ | 2,916,538 | $ | 64,895 | $ | 3,184,425 | $ | 202,992 | $ | 2,916,538 | $ | 64,895 | $ | 3,184,425 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 51,333,630 | $ | 55,677,084 | $ | 40,735,222 | $ | 147,745,936 | $ | 51,333,630 | $ | 55,677,084 | $ | 40,735,222 | $ | 147,745,936 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - |
Age Analysis of Past Due Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,547,419 | $ | - | $ | - | $ | 203,264 | $ | 1,750,683 | $ | 35,781,318 | $ | 37,532,001 | $ | (187,129 | ) | $ | 37,344,872 | $ | 513,218 | $ | - | $ | - | $ | 203,806 | $ | 717,024 | $ | 42,206,737 | $ | 42,923,761 | $ | (187,129 | ) | $ | (229,603 | ) | $ | 42,507,029 | |||||||||||||||||||||||||||||||||||
Residential | 733,374 | 91,433 | 1,451,582 | 3,390,724 | 5,667,113 | 58,962,793 | 64,629,906 | (1,668,200 | ) | 62,961,706 | 22,277 | 1,236,721 | 2,200,206 | 3,225,551 | 6,684,755 | 59,075,006 | 65,759,761 | (1,829,469 | ) | (21,578 | ) | 63,908,714 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 64,895 | 419,301 | 484,196 | 33,433,113 | 33,917,309 | (100,114 | ) | 33,817,195 | - | - | - | - | - | 41,306,722 | 41,306,722 | (35,220 | ) | (386,554 | ) | 40,884,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,280,793 | $ | 91,433 | $ | 1,516,477 | $ | 4,013,289 | $ | 7,901,992 | $ | 128,177,224 | $ | 136,079,216 | $ | (1,955,443 | ) | $ | 134,123,773 | $ | 535,495 | $ | 1,236,721 | $ | 2,200,206 | $ | 3,429,357 | $ | 7,401,779 | $ | 142,588,465 | $ | 149,990,244 | $ | (2,051,818 | ) | $ | (637,735 | ) | $ | 147,300,691 | |||||||||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2016 | December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | 202,992 | $ | 202,992 | $ | 51,333,630 | $ | 51,536,622 | $ | (187,129 | ) | $ | 51,349,493 | $ | - | $ | - | $ | - | $ | 202,992 | $ | 202,992 | $ | 51,333,630 | $ | 51,536,622 | $ | (187,129 | ) | $ | (155,725 | ) | $ | 51,193,768 | |||||||||||||||||||||||||||||||||||
Residential | 964,960 | 996,779 | 1,290,355 | 1,626,183 | 4,878,277 | 53,715,345 | 58,593,622 | (1,461,540 | ) | 57,132,082 | 964,960 | 996,779 | 1,290,355 | 1,626,183 | 4,878,277 | 53,715,345 | 58,593,622 | (1,461,540 | ) | (35,121 | ) | 57,096,961 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Construction | - | - | 64,895 | - | 64,895 | 40,735,222 | 40,800,117 | (100,114 | ) | 40,700,003 | - | - | 64,895 | - | 64,895 | 40,735,222 | 40,800,117 | (100,114 | ) | - | 40,700,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 964,960 | $ | 996,779 | $ | 1,355,250 | $ | 1,829,175 | $ | 5,146,164 | $ | 145,784,197 | $ | 150,930,361 | $ | (1,748,783 | ) | $ | 149,181,578 | $ | 964,960 | $ | 996,779 | $ | 1,355,250 | $ | 1,829,175 | $ | 5,146,164 | $ | 145,784,197 | $ | 150,930,361 | $ | (1,748,783 | ) | $ | (190,846 | ) | $ | 148,990,732 | |||||||||||||||||||||||||||||||||||
(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 | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||
March 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 203,264 | $ | 203,264 | $ | - | $ | 203,264 | $ | - | $ | 203,806 | $ | 203,806 | $ | - | $ | 456,524 | $ | - | ||||||||||||||||||||
Residential | - | - | - | - | - | 3,872,587 | 3,872,587 | - | 3,281,980 | - | ||||||||||||||||||||||||||||||
Residential construction | 484,196 | 484,196 | - | 484,196 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Residential | 4,842,306 | 4,842,306 | 423,487 | 4,842,306 | - | 1,553,170 | 1,553,170 | 411,172 | 1,287,394 | - | ||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 203,264 | $ | 203,264 | $ | - | $ | 203,264 | $ | - | $ | 203,806 | $ | 203,806 | $ | - | $ | 456,524 | $ | - | ||||||||||||||||||||
Residential | 4,842,306 | 4,842,306 | 423,487 | 4,842,306 | - | 5,425,757 | 5,425,757 | 411,172 | 4,569,374 | - | ||||||||||||||||||||||||||||||
Residential construction | 484,196 | 484,196 | - | 484,196 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | ||||||||||||||||||||
Residential | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Residential construction | 64,895 | 64,895 | - | 64,895 | - | 64,895 | 64,895 | - | 79,082 | - | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Residential | 2,916,538 | 2,916,538 | 374,501 | 2,916,538 | - | 2,916,538 | 2,916,538 | 374,501 | 3,001,850 | - | ||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | $ | 202,992 | $ | 202,992 | $ | - | $ | 202,992 | $ | - | ||||||||||||||||||||
Residential | 2,916,538 | 2,916,538 | 374,501 | 2,916,538 | - | 2,916,538 | 2,916,538 | 374,501 | 3,001,850 | - | ||||||||||||||||||||||||||||||
Residential construction | 64,895 | 64,895 | - | 64,895 | - | 64,895 | 64,895 | - | 79,082 | - |
Mortgage Loan 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 37,328,737 | $ | 51,333,630 | $ | 59,787,600 | $ | 55,677,084 | $ | 33,433,113 | $ | 40,735,222 | $ | 130,549,450 | $ | 147,745,936 | $ | 42,719,955 | $ | 51,333,630 | $ | 60,334,004 | $ | 55,677,084 | $ | 41,306,722 | $ | 40,735,222 | $ | 144,360,681 | $ | 147,745,936 | ||||||||||||||||||||||||||||||||
Nonperforming | 203,264 | 202,992 | 4,842,306 | 2,916,538 | 484,196 | 64,895 | 5,529,766 | 3,184,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | 203,806 | 202,992 | 5,425,757 | 2,916,538 | - | 64,895 | 5,629,563 | 3,184,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 37,532,001 | $ | 51,536,622 | $ | 64,629,906 | $ | 58,593,622 | $ | 33,917,309 | $ | 40,800,117 | $ | 136,079,216 | $ | 150,930,361 | $ | 42,923,761 | $ | 51,536,622 | $ | 65,759,761 | $ | 58,593,622 | $ | 41,306,722 | $ | 40,800,117 | $ | 149,990,244 | $ | 150,930,361 |
Mortgage Loans on Nonaccrual Status | Mortgage Loans on Non-Accrual Status | |||||||||||||||
As of March 31 2017 | As of December 31 2016 | As of September 30 2017 | As of December 31 2016 | |||||||||||||
Commercial | $ | 203,264 | $ | 202,992 | $ | 203,806 | $ | 202,992 | ||||||||
Residential | 4,842,306 | 2,916,538 | 5,425,757 | 2,916,538 | ||||||||||||
Residential construction | 484,196 | 64,895 | - | 64,895 | ||||||||||||
Total | $ | 5,529,766 | $ | 3,184,425 | $ | 5,629,563 | $ | 3,184,425 |
As of September 30 2017 | ||||
Aggregate fair value | $ | 166,990,187 | ||
UPB | 161,165,793 | |||
Unrealized gain | 5,824,394 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Loan fees | $ | 15,203,107 | $ | 11,988,959 | $ | 33,291,947 | $ | 33,071,486 | ||||||||
Interest income | 2,097,249 | 2,204,286 | 5,679,868 | 6,022,796 | ||||||||||||
Secondary gains | 28,550,295 | 41,346,576 | 87,165,736 | 108,667,085 | ||||||||||||
Change in fair value of loan commitments | (4,833,268 | ) | (1,505,820 | ) | (3,677,554 | ) | 1,459,568 | |||||||||
Change in fair value of loans held for sale | 1,061,917 | - | 1,061,917 | - | ||||||||||||
Provision for loan loss reserve | (481,727 | ) | (838,238 | ) | (1,435,180 | ) | (2,253,689 | ) | ||||||||
Mortgage fee income | $ | 41,597,573 | $ | 53,195,763 | $ | 122,086,734 | $ | 146,967,246 |
As of March 31 2017 (As Restated) (Unaudited) | As of December 31 2016 (As Restated) | As of September 30 2017 | As of December 31 2016 | |||||||||||||
Balance, beginning of period | $ | 627,733 | $ | 2,805,900 | $ | 627,733 | $ | 2,805,900 | ||||||||
Provision for current loan originations (1) | 426,634 | 2,988,754 | ||||||||||||||
Provision on current loan originations (1) | 1,435,180 | 2,988,754 | ||||||||||||||
Additional provision for loan loss reserve | - | 1,700,000 | - | 1,700,000 | ||||||||||||
Charge-offs, net of recaptured amounts | 10,708 | (6,866,921 | ) | 108,175 | (6,866,921 | ) | ||||||||||
Balance, end of period | $ | 1,065,075 | $ | 627,733 | $ | 2,171,088 | $ | 627,733 | ||||||||
(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, 2016 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | - | ||||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at March 31, 2017 | 741,973 | $ | 4.33 | 556,298 | $ | 4.61 | ||||||||||
As of March 31, 2017: | ||||||||||||||||
Options exercisable | 636,764 | $ | 3.94 | 493,298 | $ | 4.26 | ||||||||||
As of March 31, 2017: | ||||||||||||||||
Available options for future grant | 253,432 | - | ||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2017 | 7.12 years | 2.42 years | ||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2017 | 6.70 years | 2.13 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2017 (1) | $ | 1,837,828 | $ | 1,264,540 | ||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2017 (1) | $ | 1,824,086 | $ | 1,264,540 | ||||||||||||
(1) The Company used a stock price of $6.80 as of March 31, 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 | ) | 1.31 | ||||||||||||
Cancelled | - | (24,227 | ) | 1.31 | ||||||||||||
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. |
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at December 31, 2015 | 618,261 | $ | 3.89 | 577,436 | $ | 3.54 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (28,460 | ) | 2.15 | - | ||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at March 31, 2016 | 589,801 | $ | 3.97 | 577,436 | $ | 3.54 | ||||||||||
As of March 31, 2016: | ||||||||||||||||
Options exercisable | 484,659 | $ | 3.45 | 498,686 | $ | 2.99 | ||||||||||
As of March 31, 2016: | ||||||||||||||||
Available options for future grant | 454,842 | 57,750 | ||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2016 | 7.50 years | 2.50 years | ||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2016 | 7.03 years | 2.16 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2016 (1) | $ | 844,342 | $ | 1,096,391 | ||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2016 (1) | $ | 844,342 | $ | 1,096,391 | ||||||||||||
(1) The Company used a stock price of $5.09 as of March 31, 2016 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, 2015 | 618,261 | $ | 3.89 | 577,436 | $ | 3.54 | ||||||||||
Granted | - | - | ||||||||||||||
Exercised | (32,417 | ) | 2.38 | - | ||||||||||||
Cancelled | - | - | ||||||||||||||
Outstanding at September 30, 2016 | 585,844 | $ | 3.97 | 577,436 | $ | 3.54 | ||||||||||
As of September 30, 2016: | ||||||||||||||||
Options exercisable | 550,792 | $ | 3.82 | 551,186 | $ | 3.38 | ||||||||||
As of September 30, 2016: | ||||||||||||||||
Available options for future grant | 397,342 | 57,750 | ||||||||||||||
Weighted average contractual term of options outstanding at September 30, 2016 | 6.99 years | 2.00 years | ||||||||||||||
Weighted average contractual term of options exercisable at September 30, 2016 | 6.86 years | 1.90 years | ||||||||||||||
Aggregated intrinsic value of options outstanding at September 30, 2016 (1) | $ | 1,179,541 | $ | 1,460,167 | ||||||||||||
Aggregated intrinsic value of options exercisable at September 30, 2016 (1) | $ | 1,179,541 | $ | 1,460,167 | ||||||||||||
(1) The Company used a stock price of $5.86 as of September 30, 2016 to derive intrinsic value. |
Three Months Ended March 31 (As Restated) (Unaudited) | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net earnings | $ | 1,860,000 | $ | 2,537,941 | $ | 1,096,838 | $ | 4,183,005 | $ | 5,442,702 | $ | 11,737,952 | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Basic weighted-average shares outstanding | 15,058,153 | 14,656,450 | 15,256,857 | 14,830,078 | 15,159,569 | 14,744,779 | ||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||
Employee stock options | 469,843 | 455,828 | 285,803 | 439,535 | 315,257 | 421,266 | ||||||||||||||||||
Diluted weighted-average shares outstanding | 15,527,996 | 15,112,278 | 15,542,660 | 15,269,613 | 15,474,826 | 15,166,045 | ||||||||||||||||||
Basic net earnings per share | $ | 0.12 | $ | 0.17 | $ | 0.07 | $ | 0.28 | $ | 0.36 | $ | 0.80 | ||||||||||||
Diluted net earnings per share | $ | 0.12 | $ | 0.17 | $ | 0.07 | $ | 0.27 | $ | 0.35 | $ | 0.77 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 26,158,701 | $ | 3,604,897 | $ | 41,065,699 | $ | - | $ | 70,829,297 | ||||||||||
Intersegment revenues | 2,988,651 | 109,351 | 95,770 | (3,193,772 | ) | �� | - | |||||||||||||
Segment profit before income taxes | 1,483,480 | 758,911 | 655,379 | - | 2,897,770 | |||||||||||||||
Identifiable Assets | 833,999,127 | 99,554,821 | 164,990,647 | (139,027,232 | ) | 959,517,363 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2016 | ||||||||||||||||||||
Revenues from external customers | $ | 22,075,134 | $ | 3,330,766 | $ | 44,050,448 | $ | - | $ | 69,456,348 | ||||||||||
Intersegment revenues | 3,103,446 | 286,925 | 79,479 | (3,469,850 | ) | - | ||||||||||||||
Segment profit before income taxes | 1,103,727 | 469,055 | 2,498,298 | - | 4,071,080 | |||||||||||||||
Identifiable Assets | 724,858,698 | 96,827,903 | 157,602,831 | (133,414,858 | ) | 845,874,574 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 |
Life Insurance | Cemetery/ Mortuary | Mortgage | Intercompany Eliminations | Consolidated | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 25,229,759 | $ | 2,988,137 | $ | 43,753,955 | $ | - | $ | 71,971,851 | ||||||||||
Intersegment revenues | 3,333,593 | 116,290 | 86,580 | (3,536,463 | ) | - | ||||||||||||||
Segment profit before income taxes | 522,574 | 237,108 | 378,335 | - | 1,138,017 | |||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||
Revenues from external customers | $ | 24,972,397 | $ | 2,900,917 | $ | 55,075,343 | $ | - | $ | 82,948,657 | ||||||||||
Intersegment revenues | 3,318,369 | 107,745 | 79,164 | (3,505,278 | ) | - | ||||||||||||||
Segment profit before income taxes | 2,139,702 | 54,891 | 4,378,937 | - | 6,573,530 | |||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||
Revenues from external customers | $ | 77,112,117 | $ | 9,907,037 | $ | 128,953,552 | $ | - | $ | 215,972,706 | ||||||||||
Intersegment revenues | 9,299,671 | 338,745 | 268,764 | (9,907,180 | ) | - | ||||||||||||||
Segment profit before income taxes | 4,824,654 | 1,331,896 | 1,873,536 | - | 8,030,086 | |||||||||||||||
Identifiable Assets | 853,298,860 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,005,138,741 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||
Total Assets | 856,064,430 | 94,716,098 | 190,202,990 | (133,079,207 | ) | 1,007,904,311 | ||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||
Revenues from external customers | $ | 70,616,968 | $ | 10,045,384 | $ | 151,829,880 | $ | - | $ | 232,492,232 | ||||||||||
Intersegment revenues | 9,780,803 | 616,532 | 239,503 | (10,636,838 | ) | - | ||||||||||||||
Segment profit before income taxes | 5,785,464 | 1,283,553 | 11,561,479 | - | 18,630,496 | |||||||||||||||
Identifiable Assets | 797,486,493 | 95,414,964 | 194,469,525 | (138,809,339 | ) | 948,561,643 | ||||||||||||||
Goodwill | 2,765,570 | - | - | - | 2,765,570 | |||||||||||||||
Total Assets | 800,252,063 | 95,414,964 | 194,469,525 | (138,809,339 | ) | 951,327,213 |
a) | Quoted prices for similar assets or liabilities in active markets; |
b) | Quoted prices for identical or similar assets or liabilities in non-active markets; or |
c) | Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. |
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 | $ | 5,957,488 | $ | 5,957,488 | $ | - | $ | - | ||||||||
Total equity securities available for sale | $ | 5,957,488 | $ | 5,957,488 | $ | - | $ | - | ||||||||
Loans held for sale | $ | 166,990,187 | $ | - | $ | - | $ | 166,990,187 | ||||||||
Restricted assets (1) | 78,421 | 78,421 | - | - | ||||||||||||
Cemetery perpetual care trust investments (1) | 676,881 | 676,881 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 3,140,704 | - | - | 3,140,704 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 176,843,681 | $ | 6,712,790 | $ | - | $ | 170,130,891 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - bank loan interest rate swaps (3) | $ | (138 | ) | $ | - | $ | - | $ | (138 | ) | ||||||
- call options (4) | (50,452 | ) | (50,452 | ) | - | - | ||||||||||
- put options (4) | (63,637 | ) | (63,637 | ) | - | - | ||||||||||
- loan commitments (4) | (8,926 | ) | - | - | (8,926 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (123,153 | ) | $ | (114,089 | ) | $ | - | $ | (9,064 | ) | |||||
(1) Excluding cash | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheet | ||||||||||||||||
(3) Included in bank and other loans payable on the condensed consolidated balance sheet | ||||||||||||||||
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheet |
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 | $ | 10,735,239 | $ | 10,735,239 | $ | - | $ | - | ||||||||
Total securities available for sale | $ | 10,735,239 | $ | 10,735,239 | $ | - | $ | - | ||||||||
Restricted assets of cemeteries and mortuaries | $ | 752,814 | $ | 752,814 | $ | - | $ | - | ||||||||
Cemetery perpetual care trust investments | 672,922 | 672,922 | - | - | ||||||||||||
Derivatives - loan commitments | 9,540,950 | - | - | 9,540,950 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 21,701,925 | $ | 12,160,975 | $ | - | $ | 9,540,950 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Policyholder account balances | $ | (49,155,440 | ) | $ | - | $ | - | $ | (49,155,440 | ) | ||||||
Future policy benefits - annuities | (98,714,812 | ) | - | - | (98,714,812 | ) | ||||||||||
Derivatives - bank loan interest rate swaps | (1,713 | ) | - | - | (1,713 | ) | ||||||||||
- call options | (38,628 | ) | (38,628 | ) | - | - | ||||||||||
- put options | (13,700 | ) | (13,700 | ) | - | - | ||||||||||
- loan commitments | (564,025 | ) | - | - | (564,025 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (148,488,318 | ) | $ | (52,328 | ) | $ | - | $ | (148,435,990 | ) |
Policyholder Account Balances | Future Policy Benefits - Annuities | Loan Commitments | Bank Loan Interest Rate Swaps | |||||||||||||
Balance - December 31, 2016, as restated | $ | (49,421,125 | ) | $ | (99,388,662 | ) | $ | 6,809,332 | $ | (3,308 | ) | |||||
Total gains (losses): | ||||||||||||||||
Included in earnings | 265,685 | 673,850 | 2,167,593 | - | ||||||||||||
Included in other comprehensive income | - | - | - | 1,595 | ||||||||||||
Balance - March 31, 2017, as restated | $ | (49,155,440 | ) | $ | (98,714,812 | ) | $ | 8,976,925 | $ | (1,713 | ) |
Net Loan Commitments | Bank Loan Interest Rate Swaps | Loans Held for Sale | ||||||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | $ | - | |||||
Purchases | 636,022,818 | |||||||||||
Sales | (473,930,540 | ) | ||||||||||
Total gains (losses): | ||||||||||||
Included in earnings (1) | (3,677,554 | ) | - | 4,897,909 | ||||||||
Included in other comprehensive income (2) | - | 3,170 | - | |||||||||
Balance - September 30, 2017 | $ | 3,131,778 | $ | (138 | ) | $ | 166,990,187 | |||||
(1) As a component of Mortgage fee income on the condensed consolidated statement of earnings | ||||||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statement of comprehensive income |
Quoted Prices | Quoted Prices | |||||||||||||||||||||||||||||||
in Active | Significant | Significant | in Active | Significant | Significant | |||||||||||||||||||||||||||
Markets for | Observable | Unobservable | Markets for | Observable | Unobservable | |||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | Identical Assets | Inputs | Inputs | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 5,106,278 | $ | - | $ | - | $ | 5,106,278 | ||||||||||||||||||||||||
Mortgage servicing rights | 1,357,867 | - | - | 1,357,867 | ||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 5,218,392 | $ | - | $ | - | $ | 5,218,392 | ||||||||||||||||||||||||
Mortgage servicing rights additions | 4,057,974 | - | - | 4,057,974 | ||||||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 6,464,145 | $ | - | $ | - | $ | 6,464,145 | $ | 9,276,366 | $ | - | $ | - | $ | 9,276,366 |
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 | $ | 10,573,356 | $ | 10,573,356 | $ | - | $ | - | ||||||||
Total securities available for sale | $ | 10,573,356 | $ | 10,573,356 | $ | - | $ | - | ||||||||
Restricted assets of cemeteries and mortuaries | $ | 736,603 | $ | 736,603 | $ | - | $ | - | ||||||||
Cemetery perpetual care trust investments | 698,202 | 698,202 | - | - | ||||||||||||
Derivatives - loan commitments | 6,911,544 | - | - | 6,911,544 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 18,919,705 | $ | 12,008,161 | $ | - | $ | 6,911,544 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Policyholder account balances | $ | (49,421,125 | ) | $ | - | $ | - | $ | (49,421,125 | ) | ||||||
Future policy benefits - annuities | (99,388,662 | ) | - | - | (99,388,662 | ) | ||||||||||
Derivatives - bank loan interest rate swaps | (3,308 | ) | - | - | (3,308 | ) | ||||||||||
- call options | (109,474 | ) | (109,474 | ) | - | - | ||||||||||
- put options | (26,494 | ) | (26,494 | ) | - | - | ||||||||||
- loan commitments | (102,212 | ) | - | - | (102,212 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (149,051,275 | ) | $ | (135,968 | ) | $ | - | $ | (148,915,307 | ) |
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 | $ | 9,911,256 | $ | 9,911,256 | $ | - | $ | - | ||||||||
Total equity securities available for sale | $ | 9,911,256 | $ | 9,911,256 | $ | - | $ | - | ||||||||
Restricted assets (1) | $ | 736,603 | $ | 736,603 | $ | - | $ | - | ||||||||
Cemetery perpetual care trust investments (1) | 698,202 | 698,202 | - | - | ||||||||||||
Derivatives - loan commitments (2) | 6,911,544 | - | - | 6,911,544 | ||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 18,257,605 | $ | 11,346,061 | $ | - | $ | 6,911,544 | ||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||
Derivatives - bank loan interest rate swaps (3) | $ | (3,308 | ) | - | - | $ | (3,308 | ) | ||||||||
- call options (4) | (109,474 | ) | (109,474 | ) | - | - | ||||||||||
- put options (4) | (26,494 | ) | (26,494 | ) | - | - | ||||||||||
- loan commitments (4) | (102,212 | ) | - | - | (102,212 | ) | ||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (241,488 | ) | $ | (135,968 | ) | $ | - | $ | (105,520 | ) | |||||
(1) Excluding cash | ||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheet | ||||||||||||||||
(3) Included in bank and other loans payable on the condensed consolidated balance sheet | ||||||||||||||||
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheet |
Policyholder Account Balances | Future Policy Benefits - Annuities | Loan Commitments | Bank Loan Interest Rate Swaps | |||||||||||||
Balance - December 31, 2015, as restated | $ | (50,694,953 | ) | $ | (69,398,617 | ) | $ | 7,671,495 | $ | (13,947 | ) | |||||
Purchases | - | (30,294,480 | ) | - | - | |||||||||||
Total gains (losses): | ||||||||||||||||
Included in earnings | 1,273,828 | 304,435 | (862,163 | ) | - | |||||||||||
Included in other comprehensive income | - | - | - | 10,639 | ||||||||||||
Balance - December 31, 2016, as restated | $ | (49,421,125 | ) | $ | (99,388,662 | ) | $ | 6,809,332 | $ | (3,308 | ) |
Net Loan Commitments | Bank Loan Interest Rate Swaps | |||||||
Balance - December 31, 2015 | $ | 7,671,495 | $ | (13,947 | ) | |||
Total gains (losses): | ||||||||
Included in earnings (1) | (862,163 | ) | - | |||||
Included in other comprehensive income (2) | - | 10,639 | ||||||
Balance - December 31, 2016 | $ | 6,809,332 | $ | (3,308 | ) | |||
(1) As a component of Mortgage fee income on the condensed consolidated statement of earnings | ||||||||
(2) As a component of Unrealized gains on derivative instruments on the condensed consolidated statement of comprehensive income |
Quoted Prices | Quoted Prices in Active | |||||||||||||||||||||||||||||||
in Active | Significant | Significant | Markets for | Significant | Significant | |||||||||||||||||||||||||||
Markets for | Observable | Unobservable | Identical | Observable | Unobservable | |||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | Assets | Inputs | Inputs | |||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 2,809,925 | $ | - | $ | - | $ | 2,809,925 | ||||||||||||||||||||||||
Mortgage servicing rights | 8,603,154 | - | - | 8,603,154 | ||||||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 2,809,925 | $ | - | $ | - | $ | 2,809,925 | ||||||||||||||||||||||||
Mortgage servicing rights additions | 8,603,154 | - | - | 8,603,154 | ||||||||||||||||||||||||||||
Real estate held for investment | 2,347,820 | - | - | 2,347,820 | 2,347,820 | - | - | 2,347,820 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis | $ | 13,760,899 | $ | - | $ | - | $ | 13,760,899 | $ | 13,760,899 | $ | - | $ | - | $ | 13,760,899 |
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | ||||||||||||||||
Assets | ||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 230,811,272 | $ | - | $ | 243,807,562 | $ | - | $ | 243,807,562 | ||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||
Residential | 63,908,714 | - | - | 68,139,551 | 68,139,551 | |||||||||||||||
Residential construction | 40,884,948 | - | - | 40,884,948 | 40,884,948 | |||||||||||||||
Commercial | 42,507,029 | - | - | 44,223,823 | 44,223,823 | |||||||||||||||
Mortgage loans held for investment, net | $ | 147,300,691 | $ | - | $ | - | $ | 153,248,322 | $ | 153,248,322 | ||||||||||
Loans held for sale (at amortized costs) | 34,905,719 | - | - | 35,131,853 | 35,131,853 | |||||||||||||||
Policy loans | 6,677,924 | - | - | 6,677,924 | 6,677,924 | |||||||||||||||
Insurance assignments, net (1) | 32,198,144 | - | - | 32,198,144 | 32,198,144 | |||||||||||||||
Short-term investments | 17,830,990 | - | 17,830,990 | - | 17,830,990 | |||||||||||||||
Mortgage servicing rights, net | 20,396,568 | - | - | 26,785,380 | 26,785,380 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Bank and other loans payable | $ | (182,769,531 | ) | $ | - | $ | - | $ | (182,769,531 | ) | $ | (182,769,531 | ) | |||||||
Policyholder account balances (2) | (48,200,442 | ) | - | - | (37,564,692 | ) | (37,564,692 | ) | ||||||||||||
Future policy benefits - annuities (2) | (99,519,758 | ) | - | - | (100,851,101 | ) | (100,851,101 | ) | ||||||||||||
(1) Included in policy loans and other investments on the condensed consolidated balance sheet. | ||||||||||||||||||||
(2) 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 | ||||||||||||||||
Assets | ||||||||||||||||||||
Fixed maturity securities, held to maturity | $ | 186,445,498 | $ | - | $ | 195,986,579 | $ | - | $ | 195,986,579 | ||||||||||
Mortgage loans: | ||||||||||||||||||||
Residential | 62,961,706 | - | - | 67,122,262 | 67,122,262 | |||||||||||||||
Residential construction | 33,817,195 | - | - | 33,817,195 | 33,817,195 | |||||||||||||||
Commercial | 37,344,872 | - | - | 38,610,972 | 38,610,972 | |||||||||||||||
Mortgage loans, net | $ | 134,123,773 | $ | - | $ | - | $ | 139,550,429 | $ | 139,550,429 | ||||||||||
Loans held for sale | 151,891,428 | - | - | 156,891,384 | 156,891,384 | |||||||||||||||
Policy loans | 6,666,500 | - | - | 6,666,500 | 6,666,500 | |||||||||||||||
Insurance assignments, net | 32,856,652 | - | - | 32,856,652 | 32,856,652 | |||||||||||||||
Short-term investments | 28,346,922 | - | - | 28,346,922 | 28,346,922 | |||||||||||||||
Mortgage servicing rights | 19,432,993 | - | - | 26,632,996 | 26,632,996 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Bank and other loans payable | $ | (153,592,365 | ) | $ | - | $ | - | $ | (153,592,365 | ) | $ | (153,592,365 | ) |
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 | $ | 184,979,644 | $ | - | $ | 191,850,749 | $ | - | $ | 191,850,749 | ||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities held to maturity | $ | 184,979,644 | $ | - | $ | 191,850,749 | $ | - | $ | 191,850,749 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||||||||||
Residential | 57,132,082 | - | - | 61,357,393 | 61,357,393 | 57,096,961 | - | - | 61,357,393 | 61,357,393 | ||||||||||||||||||||||||||||||
Residential construction | 40,700,003 | - | - | 40,700,003 | 40,700,003 | 40,700,003 | - | - | 40,700,003 | 40,700,003 | ||||||||||||||||||||||||||||||
Commercial | 51,349,493 | - | - | 53,299,800 | 53,299,800 | 51,193,768 | - | - | 53,299,800 | 53,299,800 | ||||||||||||||||||||||||||||||
Mortgage loans, net | $ | 149,181,578 | $ | - | $ | - | $ | 155,357,196 | $ | 155,357,196 | ||||||||||||||||||||||||||||||
Mortgage loans held for investment, net | $ | 148,990,732 | $ | - | $ | - | $ | 155,357,196 | $ | 155,357,196 | ||||||||||||||||||||||||||||||
Loans held for sale | 189,139,832 | - | - | 192,289,854 | 192,289,854 | 189,578,243 | - | - | 192,289,854 | 192,289,854 | ||||||||||||||||||||||||||||||
Policy loans | 6,694,148 | - | - | 6,694,148 | 6,694,148 | 6,694,148 | - | - | 6,694,148 | 6,694,148 | ||||||||||||||||||||||||||||||
Insurance assignments, net | 32,477,246 | - | - | 32,477,246 | 32,477,246 | 32,477,246 | - | - | 32,477,246 | 32,477,246 | ||||||||||||||||||||||||||||||
Short-term investments | 27,560,040 | - | - | 27,560,040 | 27,560,040 | 27,560,040 | - | 27,560,040 | - | 27,560,040 | ||||||||||||||||||||||||||||||
Mortgage servicing rights | 18,872,362 | - | - | 25,496,832 | 25,496,832 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights, net | 18,872,362 | - | - | 25,496,832 | 25,496,832 | |||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Bank and other loans payable | $ | (152,137,371 | ) | $ | - | $ | - | $ | (152,137,371 | ) | $ | (152,137,371 | ) | $ | (152,137,371 | ) | $ | - | $ | - | $ | (152,137,371 | ) | $ | (152,137,371 | ) | ||||||||||||||
Policyholder account balances (2) | (49,421,125 | ) | - | - | (38,530,031 | ) | (38,530,031 | ) | ||||||||||||||||||||||||||||||||
Future policy benefits - annuities (2) | (99,388,662 | ) | - | - | (100,253,261 | ) | (100,253,261 | ) | ||||||||||||||||||||||||||||||||
(1) Included in policy loans and other investments on the condensed consolidated balance sheet. | (1) Included in policy loans and other investments on the condensed consolidated balance sheet. | |||||||||||||||||||||||||||||||||||||||
(2) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. | (2) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet. |
Fair Value of Derivative Instruments | Fair Values and Notional Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2017 (As Restated) | December 31, 2016 (As Restated) | March 31, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | 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 | $ | 9,540,950 | other assets | $ | 6,911,544 | Other liabilities | $ | 564,025 | Other liabilities | $ | 102,212 | Other assets and Other liabilities | $ | 147,086,043 | $ | 3,140,704 | $ | 8,926 | $ | 191,757,193 | $ | 6,911,544 | $ | 102,212 | |||||||||||||||||||||||||||
Call options | -- | -- | -- | -- | Other liabilities | 38,628 | Other liabilities | 109,474 | Other liabilities | 1,473,050 | -- | 50,452 | 2,169,850 | -- | 109,474 | |||||||||||||||||||||||||||||||||||||
Put options | -- | -- | -- | -- | Other liabilities | 13,700 | Other liabilities | 26,494 | Other liabilities | 2,593,300 | -- | 63,637 | 1,336,750 | -- | 26,494 | |||||||||||||||||||||||||||||||||||||
Derivatives designated as fair value hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | -- | -- | -- | -- | Bank loans payable | 1,713 | Bank loans payable | 3,308 | Bank and other loans payable | 43,940 | -- | 138 | 175,762 | -- | 3,308 | |||||||||||||||||||||||||||||||||||||
Total | $ | 9,540,950 | $ | 6,911,544 | $ | 618,066 | $ | 241,488 | $ | 151,196,333 | $ | 3,140,704 | $ | 123,153 | $ | 195,439,555 | $ | 6,911,544 | $ | 241,488 |
Net Amount Gain (Loss) Recognized in OCI | ||||||||
Three Months Ended Mar 31 | ||||||||
Derivative - Cash Flow Hedging Relationships: | 2017 | 2016 | ||||||
Interest Rate Swaps | $ | 1,595 | $ | 2,737 | ||||
Sub Total | 1,595 | 2,737 | ||||||
Tax Effect | 622 | 1,068 | ||||||
Total | $ | 973 | $ | 1,669 |
Net Amount Gain (Loss) | Net Amount Gain (Loss) | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||
Derivative | Classification | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest Rate Swaps | Other comprehensive income | $ | 554 | $ | - | $ | 3,170 | $ | 5,541 | |||||||||
Loan commitments | Mortgage fee income | $ | (4,833,268 | ) | $ | (1,505,820 | ) | $ | (3,677,554 | ) | $ | 1,459,568 | ||||||
Call and put options | Realized gains on investments and other assets | $ | 27,734 | $ | 73,250 | $ | 216,561 | $ | 210,522 |
As of March 31 2017 | As of December 31 2016 | As of September 30 2017 | As of December 31 2016 | |||||||||||||
Amortized cost: | ||||||||||||||||
Balance before valuation allowance at beginning of year | $ | 18,872,362 | $ | 12,679,755 | $ | 18,872,362 | $ | 12,679,755 | ||||||||
MSRs proceeds from loan sales | 1,357,867 | 8,603,154 | ||||||||||||||
MSR additions resulting from loan sales | 4,057,974 | 8,603,154 | ||||||||||||||
Amortization | (797,236 | ) | (2,410,547 | ) | (2,533,768 | ) | (2,410,547 | ) | ||||||||
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | - | - | ||||||||||||
Balance before valuation allowance at end of period | $ | 19,432,993 | $ | 18,872,362 | $ | 20,396,568 | $ | 18,872,362 | ||||||||
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 | $ | 19,432,993 | $ | 18,872,362 | $ | 20,396,568 | $ | 18,872,362 | ||||||||
Estimated fair value of MSRs at end of period | $ | 26,632,996 | $ | 25,496,832 | $ | 26,785,380 | $ | 25,496,832 | ||||||||
(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 | ||||
2017 | $ | 162,284 | ||
2018 | 3,372,381 | |||
2019 | 3,372,381 | |||
2020 | 3,372,381 | |||
2021 | 3,372,381 | |||
Thereafter | 6,744,760 | |||
Total | $ | 20,396,568 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Contractual servicing fees | $ | 1,848,831 | $ | 1,496,365 | $ | 5,359,425 | $ | 4,024,720 | ||||||||
Late fees | 99,077 | 67,032 | 266,218 | 189,237 | ||||||||||||
Total | $ | 1,947,908 | $ | 1,563,397 | $ | 5,625,643 | $ | 4,213,957 |
Three Months Ended Mar 31 | ||||||||
2017 | 2016 | |||||||
Contractual servicing fees | $ | 1,835,873 | $ | 1,314,285 | ||||
Late fees | 86,338 | 63,055 | ||||||
Total | $ | 1,922,211 | $ | 1,377,340 |
As of March 31 2017 | As of December 31 2016 | |||||||
Servicing UPB | $ | 2,744,354,316 | $ | 2,720,441,340 |
As of September 30 2017 | As of December 31 2016 | |||||||
Servicing UPB | $ | 3,003,608,494 | $ | 2,720,441,340 |
Prepayment Speeds | Average Life(Years) | Discount Rate | Prepayment Speeds | Average Life (Years) | Discount Rate | |||||||||||||||||||
March 31, 2017 | 3.79 | % | 6.55 | 10.01 | ||||||||||||||||||||
September 30, 2017 | 3.59 | 6.2 | 10.01 | |||||||||||||||||||||
December 31, 2016 | 3.77 | % | 6.52 | 10.01 | 3.77 | 6.52 | 10.01 |
Fixed maturity securities, held to maturity | $ | 43,878,084 | $ | 43,878,084 | ||||
Equity securities, available for sale | 646,335 | 646,335 | ||||||
Mortgage loans on real estate | 4,528,582 | |||||||
Mortgage loans held for investment | 4,528,582 | |||||||
Real estate held for investment | 528,947 | 528,947 | ||||||
Policy loans | 145,953 | 145,953 | ||||||
Short-term investments | 5,358,403 | 5,358,403 | ||||||
Accrued investment income | 585,985 | 585,985 | ||||||
Cash and cash equivalents | 2,424,480 | 2,424,480 | ||||||
Receivables | 73,347 | 73,347 | ||||||
Property and equipment | 21,083 | 21,083 | ||||||
Deferred tax asset | 1,190,862 | 1,190,862 | ||||||
Receivable from reinsurers | 34,948 | 34,948 | ||||||
Other | 57,768 | 57,768 | ||||||
Total assets acquired | 59,474,777 | 59,474,777 | ||||||
Future life, annuity, and other benefits | (52,648,838 | ) | ||||||
Future policy benefits and unpaid claims | (52,648,838 | ) | ||||||
Accounts payable | (6,953 | ) | (6,953 | ) | ||||
Other liabilities and accrued expenses | (65,986 | ) | (65,986 | ) | ||||
Total liabilities assumed | (52,721,777 | ) | (52,721,777 | ) | ||||
Fair value of net assets acquired/consideration paid | $ | 6,753,000 | $ | 6,753,000 |
For the Three Months Ended March 31 (As Restated) (Unaudited) | For the Nine Months Ended September 30 (unaudited) | |||||||||||
2017 | 2016 | 2016 | ||||||||||
Total revenues | $ | 70,829,297 | $ | 70,614,654 | $ | 234,629,101 | ||||||
Net earnings | $ | 1,860,000 | $ | 2,302,158 | $ | 11,472,978 | ||||||
Net earnings per Class A equivalent common share | $ | 0.12 | $ | 0.16 | $ | 0.78 | ||||||
Net earnings per Class A equivalent common share assuming dilution | $ | 0.12 | $ | 0.15 | ||||||||
Net earnings per Class A equivalent common share | ||||||||||||
assuming dilution | $ | 0.76 |
As of March 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Loans held for sale (formerly called Mortgage loans sold to investors) | $ | 54,401,522 | $ | 97,489,906 | $ | 151,891,428 | ||||||
Receivables, net | 15,736,045 | (9,433,244 | ) | 6,302,801 | ||||||||
Other assets | 8,141,683 | 4,255,584 | 12,397,267 | |||||||||
Total Assets | 867,205,117 | 92,312,246 | 959,517,363 | |||||||||
Future life, annuity, and other benefits | 589,405,726 | (1,156,778 | ) | 588,248,948 | ||||||||
Bank and other loans payable | 61,548,686 | 92,045,392 | 153,594,078 | |||||||||
Income taxes | 28,717,508 | (3,347,481 | ) | 25,370,027 | ||||||||
Total liabilities | 737,292,214 | 87,544,133 | 824,836,347 | |||||||||
Retained earnings | 64,494,807 | 4,771,113 | 69,265,920 | |||||||||
Total stockholders' equity | 129,909,903 | 4,771,113 | 134,681,016 | |||||||||
Total Liabilities and Stockholders' Equity | 867,205,117 | 92,312,246 | 959,517,363 | |||||||||
As of December 31, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Loans held for sale (formerly called Mortgage loans sold to investors) | $ | 82,491,091 | $ | 106,648,741 | $ | 189,139,832 | ||||||
Receivables, net | 18,870,119 | $ | (12,496,755 | ) | 6,373,364 | |||||||
Other assets | 6,891,468 | 3,521,926 | 10,413,394 | |||||||||
Total Assets | 854,004,671 | 97,673,912 | 951,678,583 | |||||||||
Future life, annuity, and other benefits | 585,610,063 | (1,542,371 | ) | 584,067,692 | ||||||||
Bank and other loans payable | 53,718,548 | 98,422,131 | 152,140,679 | |||||||||
Income taxes | 27,904,294 | (3,585,425 | ) | 24,318,869 | ||||||||
Total liabilities | 725,825,117 | 93,294,335 | 819,119,452 | |||||||||
Retained earnings | 63,029,627 | 4,379,577 | 67,409,204 | |||||||||
Total stockholders' equity | 128,179,554 | 4,379,577 | 132,559,131 | |||||||||
Total Liabilities and Stockholders' Equity | 854,004,671 | 97,673,912 | 951,678,583 | |||||||||
As of January 1, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Retained earnings | 54,054,950 | 6,470,454 | 60,525,404 |
Three Months Ended March 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Mortgage fee income | $ | 37,050,926 | $ | 1,376,928 | $ | 38,427,854 | ||||||
Total revenues | 69,452,369 | 1,376,928 | 70,829,297 | |||||||||
Increase in future policy benefits | 5,182,449 | 385,593 | 5,568,042 | |||||||||
Commissions | 15,721,074 | 633,974 | 16,355,048 | |||||||||
Provision for loan loss reserve | 426,634 | (426,634 | ) | - | ||||||||
Cost related to funding mortgage loans | 2,065,134 | 154,515 | 2,219,649 | |||||||||
Total benefits and expenses | 67,184,079 | 747,448 | 67,931,527 | |||||||||
Earnings before income taxes | 2,268,290 | 629,480 | 2,897,770 | |||||||||
Income tax expense | (799,826 | ) | (237,944 | ) | (1,037,770 | ) | ||||||
Net earnings | 1,468,464 | 391,536 | 1,860,000 | |||||||||
Net earnings per common share (1) | $ | 0.10 | $ | 0.03 | $ | 0.12 | ||||||
Net earnings per common share assuming dilution (1) | $ | 0.09 | $ | 0.03 | $ | 0.12 | ||||||
Three Months Ended March 31, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Mortgage fee income | $ | 39,110,967 | $ | 2,101,041 | $ | 41,212,008 | ||||||
Total revenues | 67,355,307 | 2,101,041 | 69,456,348 | |||||||||
Increase in future policy benefits | 4,160,260 | (38,559 | ) | 4,121,701 | ||||||||
Commissions | 16,842,270 | 2,368,698 | 19,210,968 | |||||||||
Provision for loan loss reserve | 586,778 | (586,778 | ) | - | ||||||||
Cost related to funding mortgage loans | 2,154,397 | 478,357 | 2,632,754 | |||||||||
Total benefits and expenses | 63,163,550 | 2,221,718 | 65,385,268 | |||||||||
Earnings before income taxes | 4,191,757 | (120,677 | ) | 4,071,080 | ||||||||
Income tax expense | (1,580,220 | ) | 47,081 | (1,533,139 | ) | |||||||
Net earnings | 2,611,537 | (73,596 | ) | 2,537,941 | ||||||||
Net earnings per common share (1) | $ | 0.18 | $ | (0.01 | ) | $ | 0.17 | |||||
Net earnings per common share assuming dilution (1) | $ | 0.17 | $ | (0.00 | ) | $ | 0.17 |
Three Months Ended March 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Net earnings | $ | 1,468,464 | $ | 391,536 | $ | 1,860,000 | ||||||
Three Months Ended March 31, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Net earnings | $ | 2,611,537 | $ | (73,596 | ) | $ | 2,537,941 |
Three Months Ended March 31, 2017 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Net cash provided by operating activities | $ | 24,054,637 | $ | 6,376,739 | $ | 30,431,376 | ||||||
Net change in warehouse line borrowings | - | (6,376,739 | ) | (6,376,739 | ) | |||||||
Net cash provided by (used in) financing activities | 6,229,522 | (6,376,739 | ) | (147,217 | ) | |||||||
Three Months Ended March 31, 2016 | ||||||||||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Net cash provided by operating activities | $ | 25,863,034 | $ | 1,412,370 | $ | 27,275,404 | ||||||
Net change in warehouse line borrowings | - | (1,412,370 | ) | (1,412,370 | ) | |||||||
Net cash provided by (used in) financing activities | (100,886 | ) | (1,412,370 | ) | (1,513,256 | ) |
Three months ended March 31 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Insurance premiums | $ | 17,357 | $ | 14,452 | 20 | % | $ | 17,490 | $ | 17,157 | 2 | % | $ | 52,345 | $ | 47,508 | 10 | % | ||||||||||||||||||
Net investment income | 7,586 | 6,963 | 9 | % | 8,110 | 7,828 | 4 | % | 24,831 | 22,768 | 9 | % | ||||||||||||||||||||||||
Income from loan originations | 1,188 | 472 | 152 | % | ||||||||||||||||||||||||||||||||
Other | 28 | 188 | (85 | %) | (370 | ) | (13 | ) | 2746 | % | (64 | ) | 341 | (119 | %) | |||||||||||||||||||||
Total | $ | 26,159 | $ | 22,075 | 19 | % | $ | 25,230 | $ | 24,972 | 1 | % | $ | 77,112 | $ | 70,617 | 9 | % | ||||||||||||||||||
Intersegment revenue | $ | 2,989 | $ | 3,103 | (4 | %) | $ | 3,334 | $ | 3,319 | 0 | % | $ | 9,300 | $ | 9,781 | (5 | %) | ||||||||||||||||||
Earnings before income taxes | $ | 1,483 | $ | 1,104 | 34 | % | $ | 523 | $ | 2,139 | (76 | %) | $ | 4,825 | $ | 5,785 | (17 | %) |
Three months ended March 31 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Mortuary revenues | $ | 1,406 | $ | 1,366 | 3 | % | $ | 1,161 | $ | 1,059 | 10 | % | $ | 3,749 | $ | 3,711 | 1 | % | ||||||||||||||||||
Cemetery revenues | 2,131 | 2,019 | 6 | % | 1,697 | 1,818 | (7 | %) | 6,041 | 6,186 | (2 | %) | ||||||||||||||||||||||||
Other | 68 | (54 | ) | 226 | % | 130 | 24 | 442 | % | 117 | 148 | (21 | %) | |||||||||||||||||||||||
Total | $ | 3,605 | $ | 3,331 | 8 | % | $ | 2,988 | $ | 2,901 | 3 | % | $ | 9,907 | $ | 10,045 | (1 | %) | ||||||||||||||||||
Earnings before income taxes | $ | 759 | $ | 469 | 62 | % | $ | 237 | $ | 55 | 331 | % | $ | 1,332 | $ | 1,284 | 4 | % |
Three months ended March 31 (in thousands of dollars) | Three months ended September 30 (in thousands of dollars) | Nine months ended September 30 (in thousands of dollars) | ||||||||||||||||||||||||||||||||||
2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | 2017 | 2016 | % Increase (Decrease) | ||||||||||||||||||||||||||||
Revenues from external customers | ||||||||||||||||||||||||||||||||||||
Income from loan originations | $ | 35,822 | $ | 36,784 | (3 | %) | $ | 15,204 | $ | 13,728 | 11 | % | $ | 41,788 | $ | 43,163 | (3 | %) | ||||||||||||||||||
Secondary gains from investors | 5,244 | 7,266 | (28 | %) | 28,550 | 41,347 | (31 | %) | 87,166 | 108,667 | (20 | %) | ||||||||||||||||||||||||
Total | $ | 41,066 | $ | 44,050 | (7 | %) | $ | 43,754 | $ | 55,075 | (21 | %) | $ | 128,954 | $ | 151,830 | (15 | %) | ||||||||||||||||||
Earnings before income taxes | $ | 655 | $ | 2,498 | (74 | %) | $ | 379 | $ | 4,379 | (91 | %) | $ | 1,874 | $ | 11,561 | (84 | %) |
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 | |||||||||||||
1/1/2017-1/31/2017 | - | - | |||||||||||||||
2/1/2017-2/28/2017 | - | - | |||||||||||||||
3/1/2017-3/31/2017 | 29,393 | (1 | ) | $ | 6.31 | ||||||||||||
4/1/2017-4/30/2017 | - | - | |||||||||||||||
5/1/2017-5/31/2017 | - | - | |||||||||||||||
6/1/2017-6/30/2017 | - | - | |||||||||||||||
7/1/2017-7/31/2017 | - | - | |||||||||||||||
8/1/2017-8/31/2017 | - | - | |||||||||||||||
9/1/2017-9/30/2017 | - | - | |||||||||||||||
Total | 29,393 | $ | 6.31 | - | - | ||||||||||||
(1) On March 29, 2017, the Company purchased 29,393 shares of its Class A common stock from Scott M. Quist, Chairman, President and Chief Executive Officer of the Company, pursuant to the Company's Stock Purchase Plan. |
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 Employee Stock Ownership Plan (ESOP) and Trust Agreement (1) |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.6 | |
10.7 | |
10.8 |
21 | |
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 June 5, 2003, relating to the Company's Annual Meeting of Stockholders |
(3) | Incorporated by reference from |
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on June 2, 2014, related to Company's Annual Meeting of Stockholders | |
Incorporated by reference from Report on Form 8-K, as filed on June 13, 2014 | |
Incorporated by reference from Report on Form 10-Q, as filed on August 14, 2015 | |
Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015 | |
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 | |
(10) | Incorporated by reference from Report on Form 8-K, as filed on August 4, 2017 |
(11) | Incorporated by reference from Report on Form 10-Q, as filed on August 25, 2017 |
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) |