Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 14, 2014 | Aug. 14, 2014 | |
Class A Common Stock | Class C Common Stock | ||
Entity Registrant Name | 'SECURITY NATIONAL FINANCIAL CORP | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000318673 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 11,844,855 | 1,329,317 |
Balance_Sheet
Balance Sheet (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Fixed maturity securities, held to maturity, at amortized cost | $138,917,469 | $143,466,494 |
Equity securities, available for sale, at estimated fair value | 7,442,760 | 4,498,756 |
Mortgage loans on real estate and construction loans, held for investment net of allowances for losses of $1,694,932 and $1,652,090 for 2014 and 2013 | 127,408,303 | 102,781,878 |
Real estate held for investment, net of accumulated depreciation of $10,419,634 and $9,658,599 for 2014 and 2013 | 101,388,355 | 99,760,475 |
Policy and other loans, net of allowances for doubtful accounts of $532,433 and $269,175 for 2014 and 2013 | 33,196,385 | 19,724,006 |
Short-term investments | 20,268,060 | 12,135,719 |
Accrued investment income | 2,582,515 | 2,485,054 |
Total investments | 431,203,847 | 384,852,382 |
Cash and cash equivalents | 31,206,588 | 38,203,164 |
Mortgage loans sold to investors | 52,550,989 | 77,179,652 |
Receivables, net | 15,309,079 | 11,652,572 |
Restricted assets | 6,910,684 | 6,670,980 |
Cemetery perpetual care trust investments | 2,549,971 | 2,414,883 |
Receivable from reinsurers | 7,547,822 | 12,033,877 |
Cemetery land and improvements | 10,844,293 | 10,631,573 |
Deferred policy and pre-need contract acquisition costs | 48,792,625 | 45,737,940 |
Mortgage servicing rights, net | 6,131,608 | 4,844,101 |
Property and equipment, net | 11,985,321 | 11,523,160 |
Value of business acquired | 8,602,241 | 8,680,845 |
Goodwill | 3,088,182 | 677,039 |
Other assets | 6,234,234 | 3,655,286 |
Total Assets | 642,957,484 | 618,757,454 |
Liabilities | ' | ' |
Future life, annuity, and other benefits | 463,833,611 | 452,130,649 |
Unearned premium reserve | 5,080,503 | 5,173,785 |
Bank and other loans payable | 17,133,282 | 18,289,438 |
Deferred pre-need cemetery and mortuary contract revenues | 13,050,402 | 13,176,476 |
Cemetery perpetual care obligation | 3,332,208 | 3,266,131 |
Accounts payable | 3,151,823 | 2,850,575 |
Other liabilities and accrued expenses | 26,059,161 | 20,167,363 |
Income taxes | 19,309,437 | 15,951,848 |
Total liabilities | 550,950,427 | 531,006,265 |
Stockholders' Equity | ' | ' |
Additional paid-in capital | 23,477,240 | 23,215,875 |
Accumulated other comprehensive income, net of taxes | 2,141,396 | 1,218,396 |
Retained earnings | 42,421,143 | 39,666,587 |
Treasury stock at cost - 1,051,515 Class A shares in 2014 and 1,141,021 Class A shares in 2013 | -2,381,035 | -2,624,625 |
Total stockholders' equity | 92,007,057 | 87,751,189 |
Total Liabilities and Stockholders' Equity | 642,957,484 | 618,757,454 |
Class A Common Stock | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | 23,689,708 | 23,614,574 |
Class B Common Stock | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | ' | ' |
Class C Common Stock | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | $2,658,605 | $2,660,382 |
Balance_Sheet_Parenthetical
Balance Sheet Parenthetical (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Allowance for losses on mortgage loans on real estate and construction loans, held for investment | $1,694,932 | $1,652,090 |
Accumulated depreciation on real estate held for investment | 10,419,634 | 9,658,599 |
Allowance for doubtful accounts on policy and other loans | $532,433 | $269,175 |
Class A Common Stock | ' | ' |
Common Stock Par Value | $2 | $2 |
Common Stock Authorized | 20,000,000 | 20,000,000 |
Common Stock Issued | 11,844,854 | 11,807,287 |
Treasury Stock | 1,051,515 | 1,141,021 |
Class B Common Stock | ' | ' |
Common Stock Par Value | $1 | $1 |
Common Stock Authorized | 5,000,000 | 5,000,000 |
Common Stock Issued | ' | ' |
Common Stock Outstanding | ' | ' |
Class C Common Stock | ' | ' |
Common Stock Par Value | $2 | $2 |
Common Stock Authorized | 2,000,000 | 2,000,000 |
Common Stock Issued | 1,329,302 | 1,330,191 |
Income_Statement
Income Statement (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Insurance premiums and other considerations | $13,334,986 | $12,904,843 | $26,464,433 | $25,326,386 |
Net investment income | 6,707,287 | 5,026,044 | 12,349,787 | 10,027,061 |
Net mortuary and cemetery sales | 3,446,882 | 3,259,293 | 6,277,944 | 6,136,816 |
Realized gains on investments and other assets | 339,852 | 140,182 | 538,845 | 982,760 |
Other than temporary impairments on investments | -30,000 | -145,922 | -60,000 | -175,922 |
Mortgage fee income | 34,773,299 | 39,500,034 | 57,310,837 | 72,762,915 |
Other income | 839,424 | 647,815 | 1,583,160 | 1,124,507 |
Total revenues | 59,411,730 | 61,332,289 | 104,465,006 | 116,184,523 |
Benefits and expenses: | ' | ' | ' | ' |
Death benefits | 7,082,626 | 6,564,246 | 13,758,119 | 13,320,665 |
Surrenders and other policy benefits | 627,151 | 678,579 | 1,142,763 | 1,428,828 |
Increase in future policy benefits | 4,847,082 | 4,862,670 | 9,214,525 | 9,414,411 |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 1,493,293 | 1,091,619 | 2,896,935 | 2,585,524 |
Commissions | 16,185,164 | 20,877,410 | 26,746,045 | 38,447,995 |
Salaries | 9,199,573 | 8,734,195 | 18,116,037 | 16,912,893 |
Provision for loan losses and loss reserve | 571,332 | 716,001 | 943,425 | 1,268,290 |
Costs related to funding mortgage loans | 1,911,634 | 2,039,365 | 3,209,319 | 3,646,600 |
Other expenses | 12,009,485 | 9,918,320 | 21,799,298 | 18,774,920 |
Interest expense | 786,248 | 877,806 | 1,284,112 | 1,685,082 |
Cost of goods and services sold-mortuaries and cemeteries | 511,045 | 502,558 | 1,001,344 | 1,002,172 |
Total benefits and expenses | 55,224,633 | 56,862,769 | 100,111,922 | 108,487,380 |
Earnings before income taxes | 4,187,097 | 4,469,520 | 4,353,084 | 7,697,143 |
Income tax expense | -1,563,034 | -1,670,275 | -1,590,173 | -2,864,632 |
Net earnings | $2,624,063 | $2,799,245 | $2,762,911 | $4,832,511 |
Net earnings per Class A Equivalent common share (1) | $0.22 | $0.24 | $0.23 | $0.41 |
Net earnings per Class A Equivalent common share-assuming dilution (1) | $0.21 | $0.22 | $0.23 | $0.38 |
Weighted-average Class A equivalent common share outstanding (1) | 11,835,185 | 11,724,522 | 11,844,936 | 11,669,542 |
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 12,261,297 | 12,571,512 | 12,278,502 | 12,557,637 |
Comprehensive_Income_Statement
Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Comprehensive Income Statement | ' | ' | ' | ' |
Net earnings | $2,624,063 | $2,799,245 | $2,762,911 | $4,832,511 |
Net unrealized gains (losses) on derivative instruments | 484,704 | 761,683 | 762,934 | 183,036 |
Net unrealized gains (losses) on available for sale securities | 122,161 | -70,279 | 160,066 | 132,942 |
Other comprehensive income | 606,865 | 691,404 | 923,000 | 315,978 |
Comprehensive income | $3,230,928 | $3,490,649 | $3,685,911 | $5,148,489 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Class A Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total |
Balance at Dec. 31, 2012 | $21,687,152 | $2,194,820 | $21,262,140 | $1,934,359 | $35,114,072 | ($2,380,434) | $79,812,109 |
Net earnings | ' | ' | ' | ' | 4,832,511 | ' | 4,832,511 |
Other comprehensive loss | ' | ' | ' | 315,978 | ' | ' | 315,978 |
Grant of stock options | ' | ' | 62,589 | ' | ' | ' | 62,589 |
Exercise of stock options | 265,842 | 422,422 | 104,185 | ' | ' | -543,334 | 249,115 |
Sale of treasury stock | ' | ' | 175,956 | ' | ' | 68,314 | 244,270 |
Conversion Class C to Class A | 83,246 | -83,245 | -1 | ' | ' | ' | ' |
Balance at Jun. 30, 2013 | 22,036,040 | 2,533,997 | 21,604,343 | 2,250,337 | 39,947,309 | -2,855,454 | 85,516,572 |
Balance at Dec. 31, 2013 | 23,614,574 | 2,660,382 | 23,215,875 | 1,218,396 | 39,666,587 | -2,624,625 | 87,751,189 |
Net earnings | ' | ' | ' | ' | 2,762,911 | ' | 2,762,911 |
Other comprehensive loss | ' | ' | ' | 923,000 | ' | ' | 923,000 |
Grant of stock options | ' | ' | 128,526 | ' | ' | ' | 128,526 |
Exercise of stock options | 69,910 | ' | -19,611 | ' | ' | ' | 50,299 |
Sale of treasury stock | ' | ' | 147,542 | ' | ' | 243,590 | 391,132 |
Stock Dividends | 3,446 | -1 | 4,910 | ' | -8,355 | ' | ' |
Conversion Class C to Class A | 1,778 | -1,776 | -2 | ' | ' | ' | ' |
Balance at Jun. 30, 2014 | $23,689,708 | $2,658,605 | $23,477,240 | $2,141,396 | $42,421,143 | ($2,381,035) | $92,007,057 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net cash provided by operating activities | $40,505,997 | $38,831,002 |
Cash flows from investing activities: | ' | ' |
Purchase-fixed maturity securities | -362,817 | -16,912,365 |
Calls and maturities - fixed maturity securities | 4,769,126 | 3,280,582 |
Purchase - equity securities | -4,339,038 | -1,675,032 |
Sales - equity securities | 1,714,695 | 2,364,674 |
Purchase of short-term investments | -10,206,586 | -12,231,659 |
Sales of short-term investments | 2,074,245 | 35,530,778 |
Purchases of restricted assets | -200,415 | -7,394,335 |
Changes in assets for perpetual care trusts | -120,398 | -127,947 |
Amount received for perpetual care trusts | 66,077 | 53,175 |
Mortgage, policy, and other loans made | -130,692,081 | -64,547,421 |
Payments received for mortgage, policy and other loans | 91,321,359 | 59,009,716 |
Purchase of property and equipment | -733,243 | -1,570,456 |
Purchase of real estate | -3,871,169 | -15,590,263 |
Sale of real estate | 2,332,579 | 1,119,467 |
Cash received from reinsurance | 7,304,993 | ' |
Cash paid for purchase of subsidiaries, net of cash acquired | -3,000,000 | ' |
Net cash used in investing activities | -43,942,673 | -18,691,086 |
Cash flows from financing activities: | ' | ' |
Annuity contract receipts | 5,037,585 | 4,686,903 |
Annuity contract withdrawals | -7,503,928 | -7,837,924 |
Proceeds from stock options exercised | 50,299 | 249,115 |
Repayment of bank loans on notes and contracts | -1,174,015 | -1,128,159 |
Proceeds from borrowing on bank loans | 30,159 | 4,733,975 |
Change in line of credit borrowings | ' | -4,608,204 |
Net cash used in financing activities | -3,559,900 | -3,904,294 |
Net change in cash and cash equivalents | -6,996,576 | 16,235,622 |
Cash and cash equivalents at beginning of period | 38,203,164 | 33,494,284 |
Cash and cash equivalents at end of period | 31,206,588 | 49,729,906 |
Non Cash Investing and Financing Activities | ' | ' |
Mortgage loans foreclosed into real estate | $886,576 | $1,939,002 |
1_Basis_of_Presentation
1) Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
1) Basis of Presentation | ' |
1) Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 Q and Articles 8 and 10 of Regulation S X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K (file number 000-09341). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
The estimates susceptible to significant change are those used in determining the liability for future policy benefits and claims, those used in determining valuation allowances for mortgage loans on real estate and construction loans held for investment, those used in determining loan loss reserve, and those used in determining the estimated future costs for pre-need sales. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. | |
Certain 2013 amounts have been reclassified to bring them into conformity with the 2014 presentation. The Stockholder’s Equity section of the balance sheet has been updated to account for the 1-for-10 reverse stock split of the Class C common stock that was approved by the shareholders on July 2, 2014. The effective date of the reverse stock split was August 1, 2014. |
2_Recent_Accounting_Pronouncem
2) Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
2) Recent Accounting Pronouncements | ' |
2) Recent Accounting Pronouncements | |
ASU No. 2014-09: “Revenue from Contracts with Customers” – Issued in May 2014, ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”, and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Insurance contracts are excluded from the scope of this new guidance. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2016 and is not expected to have a significant impact on the Company’s results of operations or financial position. | |
ASU No. 2014-04: “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)” - In January 2014, ASU No. 2014-04 amended ASC Topic 310, "Receivables" to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s results of operations or financial position. |
3_Investments
3) Investments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Notes | ' | |||||||||||||||
3) Investments | ' | |||||||||||||||
3) Investments | ||||||||||||||||
The Company’s investments in fixed maturity securities held to maturity and equity securities available for sale as of June 30, 2014 are summarized as follows: | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
June 30, 2014: | ||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||
Bonds: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ 1,877,830 | $ 335,092 | $ - | $ 2,212,922 | ||||||||||||
Obligations of states and political subdivisions | 1,734,871 | 249,165 | (5,504) | 1,978,532 | ||||||||||||
Corporate securities including public utilities | 130,790,757 | 16,222,135 | (259,907) | 146,752,985 | ||||||||||||
Mortgage-backed securities | 3,901,988 | 314,204 | (10,806) | 4,205,386 | ||||||||||||
Redeemable preferred stock | 612,023 | 16,432 | - | 628,455 | ||||||||||||
Total fixed maturity securities held to maturity | $ 138,917,469 | $ 17,137,028 | $ (276,217) | $ 155,778,280 | ||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
June 30, 2014: | ||||||||||||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ 7,533,929 | $ 429,683 | $ (520,852) | $ 7,442,760 | ||||||||||||
Total equity securities available for sale at estimated fair value | $ 7,533,929 | $ 429,683 | $ (520,852) | $ 7,442,760 | ||||||||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | ||||||||||||||||
Residential | $ 61,422,422 | |||||||||||||||
Residential construction | 20,414,105 | |||||||||||||||
Commercial | 47,266,708 | |||||||||||||||
Less: Allowance for loan losses | (1,694,932) | |||||||||||||||
Total mortgage loans on real estate and construction loans held for investment | $ 127,408,303 | |||||||||||||||
Real estate held for investment - net of depreciation | $ 101,388,355 | |||||||||||||||
Policy and other loans at amortized cost: | ||||||||||||||||
Policy loans | $ 7,281,130 | |||||||||||||||
Other loans | 26,447,688 | |||||||||||||||
Less: Allowance for doubtful accounts | (532,433) | |||||||||||||||
Total policy and other loans at amortized cost | $ 33,196,385 | |||||||||||||||
Short-term investments at amortized cost | $ 20,268,060 | |||||||||||||||
The Company’s investments in fixed maturity securities held to maturity and equity securities available for sale as of December 31, 2013 are summarized as follows: | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
December 31, 2013: | ||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost: | ||||||||||||||||
Bonds: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ 2,284,261 | $ 298,901 | $ - | $ 2,583,162 | ||||||||||||
Obligations of states and political subdivisions | 1,790,661 | 197,340 | (9,404) | 1,978,597 | ||||||||||||
Corporate securities including public utilities | 134,257,468 | 10,513,448 | (1,394,919) | 143,375,997 | ||||||||||||
Mortgage-backed securities | 4,522,081 | 206,617 | (11,351) | 4,717,347 | ||||||||||||
Redeemable preferred stock | 612,023 | 12,994 | (5,900) | 619,117 | ||||||||||||
Total fixed maturity securities held to maturity | $ 143,466,494 | $ 11,229,300 | $ (1,421,574) | $ 153,274,220 | ||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
December 31, 2013: | ||||||||||||||||
Equity securities available for sale at estimated fair value: | ||||||||||||||||
Common stock: | ||||||||||||||||
Industrial, miscellaneous and all other | $ 4,783,936 | $ 240,206 | $ (525,386) | $ 4,498,756 | ||||||||||||
Total securities available for sale carried at estimated fair value | $ 4,783,936 | $ 240,206 | $ (525,386) | $ 4,498,756 | ||||||||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | ||||||||||||||||
Residential | $ 49,868,486 | |||||||||||||||
Residential construction | 12,912,473 | |||||||||||||||
Commercial | 41,653,009 | |||||||||||||||
Less: Allowance for loan losses | (1,652,090) | |||||||||||||||
Total mortgage loans on real estate and construction loans held for investment | $ 102,781,878 | |||||||||||||||
Real estate held for investment - net of depreciation | $ 99,760,475 | |||||||||||||||
Policy and other loans at amortized cost: | ||||||||||||||||
Policy loans | $ 7,520,376 | |||||||||||||||
Other loans | 12,472,805 | |||||||||||||||
Less: Allowance for doubtful accounts | (269,175) | |||||||||||||||
Total policy and other loans at amortized cost | $ 19,724,006 | |||||||||||||||
Short-term investments at amortized cost | $ 12,135,719 | |||||||||||||||
Fixed Maturity Securities | ||||||||||||||||
The following tables summarize unrealized losses on fixed maturity securities, which are carried at amortized cost, at June 30, 2014 and December 31, 2013. The unrealized losses were primarily related to interest rate fluctuations. The tables set forth unrealized losses by duration and number of investment positions, together with the fair value of the related fixed maturity securities: | ||||||||||||||||
Unrealized Losses for Less than Twelve Months | No. of Investment Positions | Unrealized Losses for More than Twelve Months | No. of Investment Positions | Total Unrealized Loss | ||||||||||||
At June 30, 2014 | ||||||||||||||||
Obligations of states and political subdivisions | $ - | 0 | $ 5,504 | 1 | $ 5,504 | |||||||||||
Corporate securities including public utilities | 28,127 | 3 | 231,780 | 22 | 259,907 | |||||||||||
Mortgage-backed securities | 2,674 | 1 | 8,132 | 1 | 10,806 | |||||||||||
Redeemable preferred stock | - | 0 | - | 0 | - | |||||||||||
Total unrealized losses | $ 30,801 | 4 | $ 245,416 | 24 | $ 276,217 | |||||||||||
Fair Value | $ 757,752 | $ 5,110,986 | $ 5,868,738 | |||||||||||||
At December 31, 2013 | ||||||||||||||||
Obligations of states and political subdivisions | $ 7,131 | 1 | $ 2,273 | 1 | $ 9,404 | |||||||||||
Corporate securities including public utilities | 1,134,414 | 72 | 260,504 | 10 | 1,394,919 | |||||||||||
Mortgage-backed securities | 3,109 | 1 | 8,242 | 1 | 11,351 | |||||||||||
Redeemable preferred stock | 5,900 | 1 | - | 0 | 5,900 | |||||||||||
Total unrealized losses | $ 1,150,554 | 75 | $ 271,019 | 12 | $ 1,421,574 | |||||||||||
Fair Value | $ 22,002,277 | $ 2,308,464 | $ 24,310,741 | |||||||||||||
As of June 30, 2014, the average market value of the related fixed maturities was 95.5% of amortized cost and the average market value was 94.5% of amortized cost as of December 31, 2013. During the three months ended June 30, 2014 and 2013 an other than temporary decline in fair value resulted in the recognition of credit losses on fixed maturity securities of $30,000 and $30,000, respectively, and for the six months ended June 30, 2014 and 2013 an other than temporary decline in fair value resulted in the recognition of credit losses on fixed maturity securities of $60,000 and $60,000, respectively. | ||||||||||||||||
On a quarterly basis, the Company reviews its fixed maturity investment securities related to corporate securities and other public utilities, consisting of bonds and preferred stocks that are in a loss position. The review involves an analysis of the securities in relation to historical values, and projected earnings and revenue growth rates. Based on the analysis, a determination is made whether a security will likely recover from the loss position within a reasonable period of time. If it is unlikely that the investment will recover from the loss position, the loss is considered to be other than temporary, the security is written down to the impaired value and an impairment loss is recognized. | ||||||||||||||||
Equity Securities | ||||||||||||||||
The following tables summarize unrealized losses on equity securities that were carried at estimated fair value based on quoted trading prices at June 30, 2014 and December 31, 2013. The unrealized losses were primarily the result of decreases in fair value due to overall equity market declines. The tables set forth unrealized losses by duration and number of investment positions, together with the fair value of the related equity securities available-for-sale in a loss position: | ||||||||||||||||
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 June 30, 2014 | ||||||||||||||||
Industrial, miscellaneous and all other | $ 85,985 | 97 | $ 434,867 | 29 | $ 520,852 | |||||||||||
Total unrealized losses | $ 85,985 | 97 | $ 434,867 | 29 | $ 520,852 | |||||||||||
Fair Value | $ 1,418,657 | $ 822,995 | $ 2,241,652 | |||||||||||||
At December 31, 2013 | ||||||||||||||||
Industrial, miscellaneous and all other | $ 119,450 | 28 | $ 405,936 | 28 | $ 525,386 | |||||||||||
Total unrealized losses | $ 119,450 | 28 | $ 405,936 | 28 | $ 525,386 | |||||||||||
Fair Value | $ 993,612 | $ 772,345 | $ 1,765,957 | |||||||||||||
As of June 30, 2014, the average market value of the equity securities available for sale was 81.1% of the original investment and the average market value was 77.1% of the original investment as of December 31, 2013. The intent of the Company is to retain equity securities for a period of time sufficient to allow for the recovery in fair value. However, the Company may sell equity securities during a period in which the fair value has declined below the amount of the original investment. In certain situations new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. During the three and six months ended June 30, 2014 and 2013, there was no other than temporary decline in fair value. | ||||||||||||||||
On a quarterly basis, the Company reviews its investment in industrial, miscellaneous and all other equity securities that are in a loss position. The review involves an analysis of the securities in relation to historical values, price earnings ratios, projected earnings and revenue growth rates. Based on the analysis a determination is made whether a security will likely recover from the loss position within a reasonable period of time. If it is unlikely that the investment will recover from the loss position, the loss is considered to be other than temporary, the security is written down to the impaired value and an impairment loss is recognized. | ||||||||||||||||
The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments. The fair values for equity securities are based on quoted market prices. | ||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities at June 30, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||
Held to Maturity: | ||||||||||||||||
Due in 2014 | $ 1,998,597 | $ 2,014,415 | ||||||||||||||
Due in 2015 through 2018 | 28,025,560 | 31,140,613 | ||||||||||||||
Due in 2019 through 2023 | 37,841,385 | 42,592,185 | ||||||||||||||
Due after 2023 | 66,537,916 | 75,197,226 | ||||||||||||||
Mortgage-backed securities | 3,901,988 | 4,205,386 | ||||||||||||||
Redeemable preferred stock | 612,023 | 628,455 | ||||||||||||||
Total held to maturity | $ 138,917,469 | $ 155,778,280 | ||||||||||||||
The amortized cost and estimated fair value of available for sale securities at June 30, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Equities are valued using the specific identification method. | ||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||
Available for Sale: | ||||||||||||||||
Due in 2014 | $ - | $ - | ||||||||||||||
Due in 2015 through 2018 | - | - | ||||||||||||||
Due in 2019 through 2023 | - | - | ||||||||||||||
Due after 2023 | - | - | ||||||||||||||
Non-redeemable preferred stock | - | - | ||||||||||||||
Common stock | 7,533,929 | 7,442,760 | ||||||||||||||
Total available for sale | $ 7,533,929 | $ 7,442,760 | ||||||||||||||
The Company’s realized gains and losses, other than temporary impairments from investments and other assets, are summarized as follows: | ||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Fixed maturity securities held to maturity: | ||||||||||||||||
Gross realized gains | $ 47,548 | $ 2,512 | $ 47,548 | $ 15,404 | ||||||||||||
Gross realized losses | (2,284) | (9,693) | (2,284) | (15,168) | ||||||||||||
Other than temporary impairments | (30,000) | (30,000) | (60,000) | (60,000) | ||||||||||||
Securities available for sale: | ||||||||||||||||
Gross realized gains | 72,397 | 105,426 | 125,650 | 239,382 | ||||||||||||
Gross realized losses | - | (1,942) | - | (2,678) | ||||||||||||
Other than temporary impairments | - | - | - | - | ||||||||||||
Other assets: | ||||||||||||||||
Gross realized gains | 222,191 | 43,879 | 367,931 | 745,820 | ||||||||||||
Gross realized losses | - | - | - | - | ||||||||||||
Other than temporary impairments | - | (115,922) | - | (115,922) | ||||||||||||
Total | $ 309,852 | $ (5,740) | $ 478,845 | $ 806,838 | ||||||||||||
The net carrying amount of held to maturity securities sold was $872,882 and $1,455,835 for the six months ended June 30, 2014 and the year ended December 31, 2013, respectively. The net realized gain related to these sales was $40,594 and $-0- for the three months ended June 30, 2014 and 2013, respectively, and was $42,118 and $12,533 for the six months ended June 30, 2014 and 2013, respectively. Certain circumstances lead to these decisions to sell. | ||||||||||||||||
There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses on available for sale securities) at June 30, 2014, other than investments issued or guaranteed by the United States Government. | ||||||||||||||||
Major categories of net investment income are as follows: | ||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Fixed maturity securities | $ 2,067,324 | $ 2,056,804 | $ 4,176,445 | $ 4,009,843 | ||||||||||||
Equity securities | 50,752 | 38,729 | 89,999 | 104,489 | ||||||||||||
Mortgage loans on real estate | 1,837,060 | 1,011,446 | 3,389,171 | 2,051,221 | ||||||||||||
Real estate | 2,126,566 | 1,363,662 | 4,291,565 | 2,441,324 | ||||||||||||
Policy and other loans | 181,687 | 196,096 | 379,255 | 399,231 | ||||||||||||
Short-term investments, principally gains on sale of mortgage loans and other | 2,781,988 | 2,371,299 | 4,681,101 | 4,578,893 | ||||||||||||
Gross investment income | 9,045,377 | 7,038,036 | 17,007,536 | 13,585,001 | ||||||||||||
Investment expenses | (2,338,090) | (2,011,992) | (4,657,749) | (3,557,940) | ||||||||||||
Net investment income | $ 6,707,287 | $ 5,026,044 | $ 12,349,787 | $ 10,027,061 | ||||||||||||
Net investment income includes income earned by the restricted assets of the cemeteries and mortuaries of $77,254 and $74,539 for the three months ended June 30, 2014 and 2013, respectively, and $171,999 and $166,009 for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||
Net investment income on real estate consists primarily of rental revenue received under short-term leases. | ||||||||||||||||
Investment expenses consist primarily of depreciation, property taxes, operating expenses of real estate and an estimated portion of administrative expenses relating to investment activities. | ||||||||||||||||
Securities on deposit for regulatory authorities as required by law amounted to $9,208,890 at June 30, 2014 and $9,215,222 at December 31, 2013. The restricted securities are included in various assets under investments on the accompanying condensed consolidated balance sheets. | ||||||||||||||||
Mortgage Loans | ||||||||||||||||
Mortgage loans consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0% to 10.5%, maturity dates range from six months to 30 years and are secured by real estate. Concentrations of credit risk arise when a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of its debtors’ ability to honor obligations is reliant on the economic stability of the geographic region in which the debtors do business. At June 30, 2014, the Company had 35%, 19%, 11%, 13%, and 5% of its mortgage loans from borrowers located in the states of Utah, California, Florida, Texas, and Nevada, respectively. The mortgage loans on real estate balances on the consolidated balance sheet are reflected net of an allowance for loan losses of $1,694,932 and $1,652,090 at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
The Company establishes a valuation allowance for credit losses in its portfolio. | ||||||||||||||||
The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented: | ||||||||||||||||
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
30-Jun-14 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2014 | $ 187,129 | $ 1,364,847 | $ 100,114 | $ 1,652,090 | ||||||||||||
Charge-offs | - | (38,444) | - | (38,444) | ||||||||||||
Provision | - | 81,286 | - | 81,286 | ||||||||||||
Ending balance -June 30, 2014 | $ 187,129 | $ 1,407,689 | $ 100,114 | $ 1,694,932 | ||||||||||||
Ending balance: individually evaluated for impairment | $ - | $ 119,897 | $ - | $ 119,897 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ 187,129 | $ 1,287,792 | $ 100,114 | $ 1,575,035 | ||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ 47,266,708 | $ 61,422,422 | $ 20,414,105 | $ 129,103,235 | ||||||||||||
Ending balance: individually evaluated for impairment | $ - | $ 960,360 | $ - | $ 960,360 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ 47,266,708 | $ 60,462,062 | $ 20,414,105 | $ 128,142,875 | ||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||||||||||
31-Dec-13 | ||||||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance - January 1, 2013 | $ - | $ 4,193,674 | $ 46,187 | $ 4,239,861 | ||||||||||||
Charge-offs | - | (2,670,794) | (137,629) | (2,808,423) | ||||||||||||
Provision | 187,129 | (158,033) | 191,556 | 220,652 | ||||||||||||
Ending balance - December 31, 2013 | $ 187,129 | $ 1,364,847 | $ 100,114 | $ 1,652,090 | ||||||||||||
Ending balance: individually evaluated for impairment | $ - | $ 152,745 | $ - | $ 152,745 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ 187,129 | $ 1,212,102 | $ 100,114 | $ 1,499,345 | ||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||||||||||
Mortgage loans: | ||||||||||||||||
Ending balance | $ 41,653,009 | $ 49,868,486 | $ 12,912,473 | $ 104,433,968 | ||||||||||||
Ending balance: individually evaluated for impairment | $ - | $ 1,518,327 | $ - | $ 1,518,327 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ 41,653,009 | $ 48,350,159 | $ 12,912,473 | $ 102,915,641 | ||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||||||||||
The following is a summary of the aging of mortgage loans for the periods presented: | ||||||||||||||||
Age Analysis of Past Due Mortgage Loans | ||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Net Mortgage Loans | ||||||||
30-Jun-14 | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | $ 47,266,708 | $ 47,266,708 | $ (187,129) | $ 47,079,579 | |||||||
Residential | 1,052,534 | 1,989,725 | 5,171,118 | 960,360 | 9,173,737 | 52,248,685 | 61,422,422 | (1,407,689) | 60,014,733 | |||||||
Residential Construction | - | - | 64,895 | - | 64,895 | 20,349,210 | 20,414,105 | (100,114) | 20,313,991 | |||||||
Total | $ 1,052,534 | $ 1,989,725 | $ 5,236,013 | $ 960,360 | $ 9,238,632 | $ 119,864,603 | $ 129,103,235 | $ (1,694,932) | $ 127,408,303 | |||||||
31-Dec-13 | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ 4,973,745 | $ 4,973,745 | $ 36,679,264 | $ 41,653,009 | $ (187,129) | $ 41,465,880 | |||||||
Residential | 1,646,953 | 1,604,847 | 5,867,501 | 1,518,327 | 10,637,628 | 39,230,858 | 49,868,486 | (1,364,847) | 48,503,639 | |||||||
Residential Construction | - | - | 64,895 | - | 64,895 | 12,847,578 | 12,912,473 | (100,114) | 12,812,359 | |||||||
Total | $ 1,646,953 | $ 1,604,847 | $ 5,932,396 | $ 6,492,072 | $ 15,676,268 | $ 88,757,700 | $ 104,433,968 | $ (1,652,090) | $ 102,781,878 | |||||||
(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. | ||||||||||||||||
Impaired Mortgage Loans | ||||||||||||||||
Impaired mortgage loans include loans with a related specific valuation allowance or loans whose carrying amount has been reduced to the expected collectible amount because the impairment has been considered other than temporary. The recorded investment in and unpaid principal balance of impaired loans along with the related loan specific allowance for losses, if any, for each reporting period and the average recorded investment and interest income recognized during the time the loans were impaired were as follows: | ||||||||||||||||
Impaired Loans | ||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||
30-Jun-14 | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | - | - | - | - | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
With an allowance recorded: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | 960,360 | 960,360 | 119,897 | 960,360 | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
Total: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | 960,360 | 960,360 | 119,897 | 960,360 | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
31-Dec-13 | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | - | - | - | - | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
With an allowance recorded: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | 1,518,327 | 1,518,327 | 152,745 | 1,518,327 | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
Total: | ||||||||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||||||||
Residential | 1,518,327 | 1,518,327 | 152,745 | 1,518,327 | - | |||||||||||
Residential construction | - | - | - | - | - | |||||||||||
Credit Risk Profile Based on Performance Status | ||||||||||||||||
The Company’s mortgage loan portfolio is monitored based on performance of the loans. Monitoring a mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The Company defines non-performing mortgage loans as loans 90 days past due or on non-accrual status. | ||||||||||||||||
The Company’s performing and non-performing mortgage loans were as follows: | ||||||||||||||||
Mortgage Loan Credit Exposure | ||||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||
Performing | $ 47,266,708 | $36,679,264 | $55,290,944 | $42,482,658 | $20,349,210 | $12,847,578 | $122,906,862 | $92,009,500 | ||||||||
Nonperforming | - | 4,973,745 | 6,131,478 | 7,385,828 | 64,895 | 64,895 | 6,196,373 | 12,424,468 | ||||||||
Total | $ 47,266,708 | $41,653,009 | $61,422,422 | $49,868,486 | $20,414,105 | $12,912,473 | $129,103,235 | $104,433,968 | ||||||||
Non-Accrual Mortgage Loans | ||||||||||||||||
Once a loan is past due 90 days, it is the Company’s policy to end the accrual of interest income on the loan and write off any income that had been accrued. Interest not accrued on these loans totals $468,000 and $678,000 as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
The following is a summary of mortgage loans on a nonaccrual status for the periods presented. | ||||||||||||||||
Mortgage Loans on Nonaccrual Status | ||||||||||||||||
As of June 30 2014 | As of December 31 2013 | |||||||||||||||
Commercial | $ - | $ 4,973,745 | ||||||||||||||
Residential | 6,131,478 | 7,385,828 | ||||||||||||||
Residential construction | 64,895 | 64,895 | ||||||||||||||
Total | $ 6,196,373 | $ 12,424,468 | ||||||||||||||
Loan Loss Reserve | ||||||||||||||||
The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on mortgage loans sold to third party investors. | ||||||||||||||||
The loan loss reserve analysis involves mortgage loans that have been sold to third party investors where the Company has received a demand from the investor. There are generally three types of demands: make whole, repurchase, or indemnification. These types of demands are more particularly described as follows: | ||||||||||||||||
Make whole demand – A make whole demand occurs when an investor forecloses on a property and then sells the property. The make whole amount is calculated as the difference between the original unpaid principal balance, accrued interest and fees, less the sale proceeds. | ||||||||||||||||
Repurchase demand – A repurchase demand usually occurs when there is a significant payment default, error in underwriting or detected loan fraud. | ||||||||||||||||
Indemnification demand – On certain loans the Company has negotiated a set fee that is to be paid in lieu of repurchase. The fee varies by investor and by loan product type. | ||||||||||||||||
When a repurchase demand is received from a third party investor, the relevant data is reviewed and captured so that an estimated future loss can be calculated. The key factors that are used in the estimated loss calculation are as follows: (i) lien position, (ii) payment status, (iii) claim type, (iv) unpaid principal balance, (v) interest rate, and (vi) validity of the demand. Other data is captured and is useful for management purposes; the actual estimated loss is generally based on these key factors. The Company conducts its own review upon the receipt of a repurchase demand. In many instances, the Company is able to resolve the issues relating to the repurchase demand by the third party investor without having to make any payments to the investor. | ||||||||||||||||
The following is a summary of the loan loss reserve that is included in other liabilities and accrued expenses: | ||||||||||||||||
As of June 30 2014 | As of December 31 2013 | |||||||||||||||
Balance, beginning of period | $ 5,506,532 | $ 6,035,295 | ||||||||||||||
Provisions for losses | 943,425 | 1,846,285 | ||||||||||||||
Charge-offs | (240,997) | (2,375,048) | ||||||||||||||
Balance, end of period | $ 6,208,960 | $ 5,506,532 | ||||||||||||||
The Company believes the loan loss reserve represents probable loan losses incurred as of the balance sheet date. The loan loss reserve may not be adequate, however, for claims asserted by third party investors. Actual loan loss experience could change, in the near-term, from the established reserve based upon claims asserted by third party investors. If SecurityNational Mortgage is unable to negotiate acceptable terms with the third party investors, legal action may ensue in an effort to obtain amounts that the third party investors claim are allegedly due. In the event of legal action, if SecurityNational Mortgage is not successful in its defenses against claims asserted by these third party investors to the extent that a substantial judgment is entered against SecurityNational Mortgage which is beyond its capacity to pay, SecurityNational Mortgage may be required to curtail or cease operations. |
4_Stockbased_Compensation
4) Stock-based Compensation | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes | ' | ||||||||
4) Stock-based Compensation | ' | ||||||||
4) Stock-Based Compensation | |||||||||
The Company has three fixed option plans (the “2003 Plan”, the “2006 Plan” and the “2013 Plan”). Compensation expense for options issued of $64,201 and $9,620 has been recognized for these plans for the three months ended June 30, 2014 and 2013, respectively, and $128,526 and $62,589 for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, the total unrecognized compensation expense related to the options issued in December 2013 was $111,496, which is expected to be recognized over the vesting period of one year. | |||||||||
The Company generally estimates the expected life of the options based upon the contractual term of the options adjusted for actual experience. Future volatility is estimated based upon the a weighted historical volatility of the Company’s Class A common stock and three peer company stocks over a period equal to the estimated life of the options. Common stock issued upon exercise of stock options are generally new share issuances rather than from treasury shares. | |||||||||
A summary of the status of the Company’s stock incentive plans as of June 30, 2014, and the changes during the six months ended June 30, 2014, is presented below: | |||||||||
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | ||||||
Outstanding at December 31, 2013 | 405,133 | $ 2.41 | 508,656 | $ 2.00 | |||||
Granted | - | - | |||||||
Exercised | (34,955) | 1.44 | - | ||||||
Cancelled | (1,838) | 2.92 | - | ||||||
Outstanding at June 30, 2014 | 368,340 | $ 2.50 | 508,656 | $ 2.00 | |||||
As of June 30, 2014: | |||||||||
Options exercisable | 325,243 | $ 2.23 | 482,406 | $ 1.84 | |||||
As of June 30, 2014: | |||||||||
Available options for future grant | 314,480 | 105,000 | |||||||
Weighted average contractual term of options | |||||||||
outstanding at June 30, 2014 | 6.77 years | 2.11 years | |||||||
Weighted average contractual term of options | |||||||||
exercisable at June 30, 2014 | 6.42 years | 1.99 years | |||||||
Aggregated intrinsic value of options | |||||||||
outstanding at June 30, 2014 | $690,130 | $1,194,177 | |||||||
Aggregated intrinsic value of options | |||||||||
exercisable at June 30, 2014 | $689,924 | $1,194,177 | |||||||
The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the six months ended June 30, 2014 and 2013 was $115,977 and $1,241,181, respectively. The Company used a stock price of $4.27 as of June 30, 2014 to derive intrinsic value. |
5_Capital_Stock
5) Capital Stock | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
5) Capital Stock | ' |
5) Capital Stock | |
The Company has two classes of common stock with shares outstanding: Class A and Class C. |
6_Earnings_Per_Share
6) Earnings Per Share | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Notes | ' | |||||||||
6) Earnings Per Share | ' | |||||||||
6) Earnings Per Share | ||||||||||
The basic and diluted earnings per share amounts were calculated as follows: | ||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Numerator: | ||||||||||
Net earnings | $ 2,624,063 | $ 2,799,245 | $ 2,762,911 | $ 4,832,511 | ||||||
Denominator: | ||||||||||
Basic weighted-average shares outstanding | 11,835,185 | 11,724,522 | 11,844,936 | 11,669,542 | ||||||
Effect of dilutive securities: | ||||||||||
Employee stock options | 426,112 | 846,990 | 433,566 | 888,095 | ||||||
Diluted weighted-average shares outstanding | 12,261,297 | 12,571,512 | 12,278,502 | 12,557,637 | ||||||
Basic net earnings per share | $0.22 | $0.24 | $0.23 | $0.41 | ||||||
Diluted net earnings per share | $0.21 | $0.22 | $0.23 | $0.38 | ||||||
Net earnings per share amounts have been adjusted for the effect of annual stock dividends. For the six months ended June 30, 2014 and 2013, there were 142,972 and 5,250 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net loss per common share as their effect would be anti-dilutive. |
7_Business_Segments
7) Business Segments | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Notes | ' | ||||||||||
7) Business Segments | ' | ||||||||||
7) Business Segments | |||||||||||
Description of Products and Services by Segment | |||||||||||
The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage segment consists of loan fee income and expenses from the originations of residential and commercial mortgage loans and interest earned and interest expenses from warehousing pre-sold loans before the funds are received from financial institutional investors. | |||||||||||
Measurement of Segment Profit or Loss and Segment Assets | |||||||||||
The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the form 10K for the year ended December 31, 2013. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation. | |||||||||||
Factors Management Used to Identify the Enterprise’s Reportable Segments | |||||||||||
The Company’s reportable segments are business units that offer different products and are managed separately due to the different products and the need to report to the various regulatory jurisdictions. | |||||||||||
Life Insurance | Cemetery/ Mortuary | Mortgage | Eliminations | Consolidated | |||||||
For the Three Months Ended | |||||||||||
30-Jun-14 | |||||||||||
Revenues from external customers | $ 19,810,498 | $ 3,534,881 | $ 36,066,351 | $ - | $ 59,411,730 | ||||||
Intersegment revenues | 2,356,195 | 334,314 | 231,249 | (2,921,758) | - | ||||||
Segment profit before income taxes | 1,515,426 | 168,911 | 2,502,760 | - | 4,187,097 | ||||||
For the Three Months Ended | |||||||||||
30-Jun-13 | |||||||||||
Revenues from external customers | $ 16,797,489 | $ 3,380,560 | $ 41,154,240 | $ - | $ 61,332,289 | ||||||
Intersegment revenues | 2,504,960 | 357,016 | 67,603 | (2,929,579) | - | ||||||
Segment profit before income taxes | 440,822 | 107,601 | 3,921,097 | - | 4,469,520 | ||||||
For the Six Months Ended | |||||||||||
30-Jun-14 | |||||||||||
Revenues from external customers | $ 38,283,314 | $ 6,575,449 | $ 59,606,243 | $ - | $ 104,465,006 | ||||||
Intersegment revenues | 4,417,915 | 670,612 | 395,395 | (5,483,922) | - | ||||||
Segment profit before income taxes | 2,846,895 | 351,689 | 1,154,500 | - | 4,353,084 | ||||||
Identifiable Assets | 626,378,955 | 108,686,715 | 56,057,674 | (148,165,860) | 642,957,484 | ||||||
Goodwill | 2,802,991 | 285,191 | - | - | 3,088,182 | ||||||
For the Six Months Ended | |||||||||||
30-Jun-13 | |||||||||||
Revenues from external customers | $ 34,041,381 | $ 6,360,591 | $ 75,782,551 | $ - | $ 116,184,523 | ||||||
Intersegment revenues | 5,092,793 | 715,506 | 124,765 | (5,933,064) | - | ||||||
Segment profit before income taxes | 1,255,153 | 184,366 | 6,257,624 | - | 7,697,143 | ||||||
Identifiable Assets | 571,473,136 | 112,584,116 | 66,990,347 | (134,012,151) | 617,035,448 | ||||||
Goodwill | 391,848 | 285,191 | - | - | 677,039 | ||||||
8_Fair_Value_of_Financial_Inst
8): Fair Value of Financial Instruments | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Notes | ' | |||||||||
8): Fair Value of Financial Instruments | ' | |||||||||
8) Fair Value of Financial Instruments | ||||||||||
Generally accepted accounting principles (GAAP) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy: | ||||||||||
Level 1: Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access. | ||||||||||
Level 2: Financial assets and financial liabilities whose values are based on the following: | ||||||||||
a) Quoted prices for similar assets or liabilities in active markets; | ||||||||||
b) Quoted prices for identical or similar assets or liabilities in non-active markets; or | ||||||||||
c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||
Level 3: Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect our estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities. | ||||||||||
The Company utilizes a combination of third party valuation service providers, brokers, and internal valuation models to determine fair value. | ||||||||||
The following methods and assumptions were used by the Company in estimating the fair value disclosures related to other significant financial instruments: | ||||||||||
The items shown under Level 1 and Level 2 are valued as follows: | ||||||||||
Securities Available-for-sale and Held-to-Maturity: The fair values of investments in fixed maturity and equity securities along with methods used to estimate such values are disclosed in Note 3. | ||||||||||
Restricted Assets: A portion of these assets include mutual funds and equity securities that have quoted market prices. Also included are cash and cash equivalents and participations in mortgage loans. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
Cemetery Perpetual Care Trust Investments: A portion of these assets include equity securities that have quoted market prices. Also included are cash and cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
Call Options: The Company uses quoted market prices to value its call options. | ||||||||||
The items shown under Level 3 are valued as follows: | ||||||||||
Policyholder Account Balances and Future Policy Benefits-Annuities: Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 4% to 6.5%. The fair values for the Company’s liabilities under investment-type insurance contracts (disclosed as policyholder account balances and future policy benefits – annuities) are estimated based on the contracts’ cash surrender values. | ||||||||||
The fair values for the Company’s insurance contracts other than investment-type contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts. | ||||||||||
Interest Rate Lock Commitments: The Company’s mortgage banking activities enters into interest rate lock commitments with potential borrowers and forward commitments to sell loans to third-party investors. The Company also implements a hedging strategy for these transactions. A mortgage loan commitment binds the Company to lend funds to a qualified borrower at a specified interest rate and within a specified period of time, generally up to 30 days after inception of the mortgage loan commitment. Mortgage loan commitments are defined to be derivatives under generally accepted accounting principles and are recognized at fair value on the consolidated balance sheet with changes in their fair values recorded as part of other comprehensive income from mortgage banking operations. | ||||||||||
The Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage loan and the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the mortgage loan commitment is issued. Therefore, at the time of issuance, the estimated fair value is zero. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates derived from the Company’s recent historical empirical data are used to estimate the quantity of mortgage loans that will fund within the terms of the commitments. | ||||||||||
Bank Loan Interest Rate Swaps: Management considers the interest rate swap instruments to be an effective cash flow hedge against the variable interest rate on bank borrowings since the interest rate swap mirrors the term of the note payable and expires on the maturity date of the bank loan it hedges. The interest rate swaps are a derivative financial instruments carried at its fair value. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable. | ||||||||||
Mortgage Loans on Real Estate: The fair values are estimated using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
Real Estate Held for Investment: The Company believes that in an orderly market fair value will approximate the replacement cost of a home and the rental income provides a cash flow stream for investment analysis. The Company believes the highest and best use of the properties are as income producing assets since it is the Company’s intent to hold the properties as rental properties, matching the income from the investment in rental properties with the funds required for future estimated policy claims. Accordingly, the fair value determination will be weighted more heavily toward the rental analysis. | ||||||||||
It should be noted that for replacement cost, when determining the fair value of mortgage properties, the Company uses Marshall and Swift, a provider of building cost information to the real estate construction industry. For the investment analysis, the Company uses market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company uses 60% of the projected cash flow analysis and 40% of the replacement cost to approximate fair value of the collateral. | ||||||||||
In addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment. This depreciation reduces the book value of these properties and lessens the exposure to the Company from further deterioration in real estate values. | ||||||||||
Mortgage Servicing Rights: The Company initially recognizes MSRs at their estimated fair values derived from the net cash flows associated with the servicing contracts, where the Company assumes the obligation to service the loan in the sale transaction. The precise fair value of MSRs cannot be readily determined because MSRs are not actively traded in stand-alone markets. Considerable judgment is required to estimate the fair values of these assets and the exercise of such judgment can significantly affect the Company’s earnings. | ||||||||||
The Company’s subsequent accounting for MSRs is based on the class of MSRs. The Company has identified two classes of MSRs: MSRs backed by mortgage loans with initial term of 30 years and MSRs backed by mortgage loans with initial term of 15 years. The Company distinguishes between these classes of MSRs due to their differing sensitivities to change in value as the result of changes in market. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. MSR amortization is determined by amortizing the balance straight-line over an estimated nine year life. | ||||||||||
The Company periodically assesses MSRs for impairment. Impairment occurs when the current fair value of the MSR falls below the asset’s carrying value (carrying value is the amortized cost reduced by any related valuation allowance). If MSRs are impaired, the impairment is recognized in current-period earnings and the carrying value of the MSRs is adjusted through a valuation allowance. | ||||||||||
Management periodically reviews the various loan strata to determine whether the value of the MSRs in a given stratum is impaired and likely to recover. When management deems recovery of the value to be unlikely in the foreseeable future, a write-down of the cost of the MSRs for that stratum to its estimated recoverable value is charged to the valuation allowance. | ||||||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at June 30, 2014. | ||||||||||
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 | $ 7,442,760 | $ 7,442,760 | $ - | $ - | ||||||
Total securities available for sale | $ 7,442,760 | $ 7,442,760 | $ - | $ - | ||||||
Restricted assets of cemeteries and mortuaries | $ 706,438 | $ 706,438 | - | - | ||||||
Cemetery perpetual care trust investments | 710,306 | 710,306 | - | - | ||||||
Derivatives - interest rate lock commitments | 3,112,327 | - | - | 3,112,327 | ||||||
Total assets accounted for at fair value on a recurring basis | $ 11,971,831 | $ 8,859,504 | $ - | $ 3,112,327 | ||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||
Policyholder account balances | $ (47,310,100) | $ - | $ - | $ (47,310,100) | ||||||
Future policy benefits - annuities | (65,006,572) | - | - | (65,006,572) | ||||||
Derivatives - bank loan interest rate swaps | (46,010) | - | - | (46,010) | ||||||
- call options | (126,814) | (126,814) | - | - | ||||||
- interest rate lock commitments | (386,007) | - | - | (386,007) | ||||||
Total liabilities accounted for at fair value on a recurring basis | $ (112,875,503) | $ (126,814) | $ - | $ (112,748,689) | ||||||
Following is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: | ||||||||||
Policyholder Account Balances | Future Policy Benefits - Annuities | Interest Rate Lock Commitments | Bank Loan Interest Rate Swaps | |||||||
Balance - December 31, 2013 | $ (48,000,668) | $ (65,052,928) | $ 1,487,908 | $ (58,310) | ||||||
Total gains (losses): | ||||||||||
Included in earnings | 690,568 | 46,356 | - | - | ||||||
Included in other comprehensive income (loss) | - | - | 1,238,412 | 12,300 | ||||||
Balance – June 30, 2014 | $ (47,310,100) | $ (65,006,572) | $ 2,726,320 | $ (46,010) | ||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at June 30, 2014. | ||||||||||
Quoted Prices | ||||||||||
in Active | Significant | Significant | ||||||||
Markets for | Observable | Unobservable | ||||||||
Identical Assets | Inputs | Inputs | ||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||||
Mortgage servicing rights | $ 1,608,696 | - | - | $ 1,608,696 | ||||||
Real estate held for investment | 53,500 | - | - | 53,500 | ||||||
Total assets accounted for at fair value on a nonrecurring basis | $ 1,662,196 | $ - | $ - | $ 1,662,196 | ||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at December 31, 2013. | ||||||||||
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 | $ 4,498,756 | $ 4,498,756 | $ - | $ - | ||||||
Total securities available for sale | $ 4,498,756 | $ 4,498,756 | $ - | $ - | ||||||
Restricted assets of cemeteries and mortuaries | 667,149 | 667,149 | - | - | ||||||
Cemetery perpetual care trust investments | 695,616 | 695,616 | - | - | ||||||
Derivatives - interest rate lock commitments | 1,511,111 | - | - | 1,511,111 | ||||||
Total assets accounted for at fair value on a recurring basis | $ 7,372,632 | $ 5,861,521 | $ - | $ 1,511,111 | ||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||
Policyholder account balances | $ (48,000,668) | $ - | $ - | $ (48,000,668) | ||||||
Future policy benefits - annuities | (65,052,928) | - | - | (65,052,928) | ||||||
Derivatives - bank loan interest rate swaps | (58,310) | - | - | (58,310) | ||||||
- call options | (124,174) | (124,174) | - | - | ||||||
- interest rate lock commitment | (23,203) | - | - | (23,203) | ||||||
Total liabilities accounted for at fair value on a recurring basis | $ (113,259,283) | $ (124,174) | $ - | $ (113,135,109) | ||||||
Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: | ||||||||||
Policyholder Account Balances | Future Policy Benefits - Annuities | Interest Rate Lock Commitments | Bank Loan Interest Rate Swaps | |||||||
Balance - December 31, 2012 | $ (49,746,337) | $ (65,171,687) | $ 2,961,465 | $ (93,572) | ||||||
Total gains (losses): | ||||||||||
Included in earnings | 1,745,669 | 118,759 | - | - | ||||||
Included in other | ||||||||||
comprehensive income | - | - | (1,473,557) | 35,262 | ||||||
Balance - December 31, 2013 | $ (48,000,668) | $ (65,052,928) | $ 1,487,908 | $ (58,310) | ||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at December 31, 2013. | ||||||||||
Quoted Prices | ||||||||||
in Active | Significant | Significant | ||||||||
Markets for | Observable | Unobservable | ||||||||
Identical Assets | Inputs | Inputs | ||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||
Assets accounted for at fair value on a | ||||||||||
nonrecurring basis | ||||||||||
Mortgage servicing rights | $ 5,291,724 | - | - | $ 5,291,724 | ||||||
Mortgage loans on real estate | 89,000 | - | - | 89,000 | ||||||
Real estate held for investment | 660,784 | - | - | 660,784 | ||||||
Total assets accounted for at fair value on a | ||||||||||
nonrecurring basis | $ 6,041,508 | $ - | $ - | $ 6,041,508 | ||||||
Fair Value of Financial Instruments Carried at Other Than Fair Value | ||||||||||
ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. | ||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at June 30, 2014 and December 31, 2013. The estimated fair value amounts for June 30, 2014 and December 31, 2013 have been measured as of period-end, and have not been reevaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end. | ||||||||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of June 30, 2014: | ||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | ||||||
Assets | ||||||||||
Mortgage loans: | ||||||||||
Residential | $ 60,014,733 | $ - | $ - | $ 63,575,379 | $ 63,575,379 | |||||
Residential construction | 20,313,991 | - | - | 20,313,991 | 20,313,991 | |||||
Commercial | 47,079,579 | - | - | 49,374,754 | 49,374,754 | |||||
Mortgage loans, net | $ 127,408,303 | $ - | $ - | $ 133,264,124 | $ 133,264,124 | |||||
Policy loans | 7,281,130 | - | - | 7,281,130 | 7,281,130 | |||||
Other loans | 25,915,255 | - | - | 25,915,255 | 25,915,255 | |||||
Short-term investments | 20,268,060 | - | - | 20,268,060 | 20,268,060 | |||||
Liabilities | ||||||||||
Bank and other loans payable | $ 17,087,272 | $ - | $ - | $ 17,087,272 | $ 17,087,272 | |||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2013: | ||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | ||||||
Assets | ||||||||||
Mortgage loans: | ||||||||||
Residential | $ 48,503,639 | $ - | $ - | $ 51,537,154 | $ 51,537,154 | |||||
Residential construction | 12,812,359 | - | - | 12,812,359 | 12,812,359 | |||||
Commercial | 41,465,880 | - | - | 42,441,268 | 42,441,268 | |||||
Mortgage loans, net | $ 102,781,878 | $ - | $ - | $ 106,790,781 | $ 106,790,781 | |||||
Policy loans | 7,520,376 | - | - | 7,520,376 | 7,520,376 | |||||
Other loans | 12,203,630 | - | - | 12,203,630 | 12,203,630 | |||||
Short-term investments | 12,135,719 | - | - | 12,135,719 | 12,135,719 | |||||
Liabilities | ||||||||||
Bank and other loans payable | $ 18,231,128 | $ - | $ - | $ 18,231,128 | $ 18,231,128 | |||||
The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: | ||||||||||
Mortgage Loans on Real Estate: The estimated fair value of the Company’s mortgage loans is determined using various methods. The Company’s mortgage loans are grouped into three categories: Residential, Residential Construction and Commercial. When estimating the expected future cash flows, it is assumed that all loans will be held to maturity, and any loans that are non-performing are evaluated individually for impairment. | ||||||||||
Residential – The estimated fair value of mortgage loans originated prior to 2013 is determined by estimating expected future cash flows of interest payments and discounting them using current interest rates from single family mortgages. The estimated fair value of mortgage loans originated in 2013 and 2014 is determined from pricing of similar loans that were sold in December 2013. | ||||||||||
Residential Construction – These loans are primarily short in maturity (4-6 months) accordingly, the estimated fair value is determined to be the net book value. | ||||||||||
Commercial – The estimated fair value is determined by estimating expected future cash flows of interest payments and discounting them using current interest rates for commercial mortgages. | ||||||||||
Policy and Other Loans: The carrying amounts reported in the accompanying condensed consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
Short-Term Investments: The carrying amounts reported in the accompanying condensed consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
Bank and Other Loans Payable: The carrying amounts reported in the accompanying condensed consolidated balance sheet for these financial instruments approximate their fair values. | ||||||||||
9_Allowance_For_Doubtful_Accou
9) Allowance For Doubtful Accounts and Loan Losses and Impaired Loans | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
9) Allowance For Doubtful Accounts and Loan Losses and Impaired Loans | ' |
9) Allowance for Doubtful Accounts, Allowance for Loan Losses and Impaired Loans | |
The Company records an allowance and recognizes an expense for potential losses from mortgage loans, other loans and receivables in accordance with generally accepted accounting principles. | |
The allowance for doubtful accounts is based upon the Company’s historical experience for collectively evaluated impairment. Other allowances are based upon receivables individually evaluated for impairment. Collectability of the cemetery and mortuary receivables is significantly influenced by current economic conditions. The critical issues that impact recovery of mortgage loan operations are interest rate risk, loan underwriting, new regulations and the overall economy. | |
The Company also provides an allowance for losses on its mortgage loans held for investment. The allowance is comprised of two components. The first component is an allowance for collectively evaluated impairment that is based upon the Company’s historical experience in collecting its unpaid principal balances. The second component is based upon individual evaluation of loans that are determined to be impaired. Upon determining impairment the Company establishes an individual impairment allowance based upon an assessment of the fair value of the underlying collateral. See the schedules in Note 3 for additional information. All expenses for foreclosure are expensed as incurred. Once foreclosed, an adjustment for the lower of cost or fair value is made, if necessary, and the amount is classified as other real estate owned held for investment or sale. The Company rents these properties until it is deemed desirable to sell them. | |
The allowance for loan losses could change based on changes in the value of the underlying collateral, the performance status of the loans, or the Company’s actual collection experience. The actual losses could change, in the near term, from the established allowance, based upon the occurrence or non-occurrence of these events. |
10_Derivative_Investments
10) Derivative Investments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Notes | ' | |||||||||||||||
10) Derivative Investments | ' | |||||||||||||||
10) Derivative Commitments | ||||||||||||||||
The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of mortgage loan commitments from the time a derivative loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of derivative loan commitments that will be exercised (i.e., the number of loan commitments that will be funded) fluctuates. The probability that a loan will not be funded within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the inception of the interest rate lock. However, many borrowers continue to exercise derivative loan commitments even when interest rates have fallen. | ||||||||||||||||
In general, the probability of funding increases if mortgage rates rise and decreases if mortgage rates fall. This is due primarily to the relative attractiveness of current mortgage rates compared to the applicant’s committed rate. The probability that a loan will not be funded within the terms of the mortgage loan commitment also is influenced by the source of the applications (retail, broker or correspondent channels), proximity to rate lock expiration, purpose for the loan (purchase or refinance) product type and the application approval status. The Company has developed fallout estimates using historical data that take into account all of the variables, as well as renegotiations of rate and point commitments that tend to occur when mortgage rates fall. These fallout estimates are used to estimate the number of loans that the Company expects to be funded within the terms of the mortgage loan commitments and are updated periodically to reflect the most current data. | ||||||||||||||||
The Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage loan and the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the mortgage loan commitment is issued. Following issuance, the value of a mortgage loan commitment can be either an asset or liability depending upon the change in value of the underlying mortgage loans. Fallout rates derived from the Company’s recent historical empirical data are used to estimate the quantity of mortgage loans that will fund within the terms of the commitments. | ||||||||||||||||
The Company utilizes forward loan sales commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward loan sales commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments by securing the ultimate sales price and delivery date of the loans. Management expects these derivatives will experience changes in fair value opposite to changes in fair value of the derivative loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments. | ||||||||||||||||
The Company has adopted a strategy of selling “out of the money” call options on its available for sale equity securities as a source of revenue. The options give the purchaser the right to buy from the Company specified equity securities at a set price up to a pre-determined date in the future. The Company receives an immediate payment of cash for the value of the option and establishes a liability for the fair value of the option. The liability for call options is adjusted to fair value at each reporting date. The fair value of outstanding call options as of June 30, 2014 and December 31, 2013 was $126,814 and $124,174, respectively. In the event an option is exercised, the Company recognizes a gain on the sale of the equity security and a gain from the sale of the option. If the option expires unexercised, the Company recognizes a gain from the sale of the option and retains the underlying equity security. | ||||||||||||||||
The following table shows the fair value of derivatives as of June 30, 2014 and December 31, 2013. . | ||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||||||
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: | ||||||||||||||||
Interest rate lock and forward sales commitments | other assets | $3,112,327 | other assets | $1,511,111 | Other liabilities | $ 386,007 | Other liabilities | $ 23,203 | ||||||||
Call Options | -- | -- | -- | -- | Other liabilities | 126,814 | Other liabilities | 124,174 | ||||||||
Interest rate swaps | -- | -- | -- | -- | Bank loans payable | 46,010 | Bank loans payable | 58,310 | ||||||||
Total | $3,112,327 | $1,511,111 | $ 558,831 | $ 205,687 | ||||||||||||
The following table shows the gain (loss) on derivatives for the periods presented. There were no gains or losses reclassified from accumulated other comprehensive income (OCI) into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing. | ||||||||||||||||
Net Amount Gain (Loss) Recognized in OCI | Net Amount Gain (Loss) Recognized in OCI | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
Derivative - Cash Flow Hedging Relationships: | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest Rate Lock Commitments | $ 789,149 | $ 1,234,935 | $ 1,238,412 | $ 519,211 | ||||||||||||
Interest Rate Swaps | 5,449 | 12,685 | 12,300 | 21,801 | ||||||||||||
Sub Total | 794,598 | 1,247,620 | 1,250,712 | 541,012 | ||||||||||||
Tax Effect | 309,894 | 485,937 | 487,778 | 357,976 | ||||||||||||
Total | $ 484,704 | $ 761,683 | $ 762,934 | $ 183,036 | ||||||||||||
11_Reinsurance_Commitments_and
11) Reinsurance, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Notes | ' |
11) Reinsurance, Commitments and Contingencies | ' |
11) Reinsurance, Commitments and Contingencies | |
Reinsurance Terminated with North America Life Insurance Company | |
On December 1, 2013, in accordance with the terms of the Coinsurance Agreement, Security National Life, through TransWestern Life Insurance Company (“Trans-Western Life”), recaptured additional policies of Trans-Western Life from North America Life Insurance Company (“North America Life”). On December 10, 2013, pursuant to the Coinsurance Agreement, North America Life paid $2,500,000, less a ceding commission of $34,000 to Security National Life. On February 13, 2014, in accordance with the terms of the Coinsurance Agreement, Security National Life, through Trans Western Life, recaptured the remaining policies of Trans-Western Life from North America Life. Pursuant to the Coinsurance Agreement, North America Life paid $4,684,000 less a ceding commission of $57,000 to Security National Life, and the Reinsurance Agreement between Trans Western Life and North America Life was terminated. | |
Mortgage Loan Loss Settlements | |
Future loan losses are extremely difficult to estimate, especially in the current market. However, management believes that the Company’s reserve methodology allow it to estimate its losses on loans sold. The amounts accrued for loan losses for the three months ended June 30, 2014 and 2013 were $571,000 and $644,000, respectively, and for the six months ended June 30, 2014 and 2013, were $943,000 and $1,181,000 respectively. | |
The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of June 30, 2014 and December 31, 2013, the balances were $6,209,000 and $5,507,000, respectively. | |
Settlement with Wells Fargo | |
On April 7, 2011, SecurityNational Mortgage entered into a settlement agreement with Wells Fargo Funding, Inc. (“Wells Fargo Funding”). The settlement agreement provides that it is intended to be a pragmatic commercial accommodation between SecurityNational Mortgage and Wells Fargo Funding and is not to be construed as an admission of responsibility, liability or fault for either party’s claims. Under the terms of the settlement agreement, SecurityNational Mortgage paid an initial settlement amount to Wells Fargo Funding in the amount of $4,300,000. | |
SecurityNational Mortgage is also required under the settlement agreement to set aside 10 basis points (.0010) during the period from April 8, 2011 to March 31, 2017 from the purchase proceeds of any loans that it sells to any mortgage loan purchaser, including Wells Fargo Funding, and pay such amounts to Wells Fargo Funding. SecurityNational Mortgage is additionally required under the settlement agreement to set aside 50% from the net proceeds that it receives from any sale, liquidation or other transfer of certain real estate properties that it owns, after subtracting taxes, commissions, recording fees and other transaction costs. These real estate properties consist of 26 real estate properties with a total book value as of June 30, 2014 of $4,232,000. | |
In consideration for SecurityNational Mortgage making the initial settlement payment to Wells Fargo Funding, Wells Fargo Funding and related parties, including Wells Fargo Bank, released SecurityNational Mortgage and related parties, including the Company and Security National Life, from any claims, demands, damages, obligations, liabilities, or causes of action relating to residential mortgage loans that Wells Fargo Funding purchased from SecurityNational Mortgage prior to December 31, 2009. Similarly, SecurityNational Mortgage released Wells Fargo Funding and its related parties from any claims, demands, damages, obligations, liabilities, or causes of actions relating to residential mortgage loans that Wells Fargo Funding purchased from SecurityNational Mortgage prior to December 31, 2009. | |
Mortgage Loan Loss Demands | |
Third Party Investors | |
There have been assertions in third party investor correspondence that SecurityNational Mortgage sold mortgage loans that allegedly contained borrower misrepresentations or experienced early payment defaults, or that were otherwise allegedly defective or not in compliance with agreements between SecurityNational Mortgage and the third party investors consisting principally of financial institutions. As a result of these claims, third party investors have made demands that SecurityNational Mortgage repurchase certain alleged defective mortgage loans that were sold to such investors or indemnify them against any losses related to such loans. | |
The total amount of potential claims by third party investors is difficult to determine. The Company has reserved and accrued $6,201,000 as of June 30, 2014 to settle all such investor related claims. The Company believes that the reserve for mortgage loan loss, which includes provisions for probable losses and indemnification on mortgage loans sold to investors, is reasonable based on available information. Moreover, the Company has successfully negotiated acceptable settlement terms with other third party investors that asserted claims for mortgage loan losses against SecurityNational Mortgage. | |
SecurityNational Mortgage disagrees with the repurchase demands and notices of potential claims from third party investors and believes it has significant defenses to these demands. If SecurityNational Mortgage is unable to resolve the alleged claims by the third party investors on acceptable terms, legal action may ensue. In the event of legal action, if SecurityNational Mortgage is not successful in its defenses against claims asserted by these third party investors to the extent that a substantial judgment is entered against SecurityNational Mortgage which is beyond its capacity to pay, SecurityNational Mortgage may be required to curtail or cease operations. | |
JP Morgan Chase Indemnification Demand | |
The Company and its wholly owned subsidiary, SecurityNational Mortgage, received a notice of claim for indemnification dated December 21, 2011, from JP Morgan Chase & Co. (“JP Morgan Chase”) on behalf of EMC Mortgage, LLC (“EMC Mortgage”), relating to 21 mortgage loans that EMC Mortgage allegedly purchased as a third party investor from SecurityNational Mortgage. The notice also referenced a guaranty agreement, dated February 23, 2006, by the Company for the benefit of EMC Mortgage. The indemnification notice additionally stated that EMC Mortgage had been named in a lawsuit by the Bear Stearns Mortgage Funding Trust 2007-AR2 (the “Trust”), which was filed on September 13, 2011 in the Delaware Court of Chancery. | |
The lawsuit the Trust brought against EMC Mortgage contends that more than 800 residential mortgage loans that EMC Mortgage sold to the Trust (including the 21 loans allegedly originated by SecurityNational Mortgage) contained breaches of representations and warranties with respect to the mortgage loans, as well as defaults and foreclosures in many of such loans. As a result of the alleged breaches of representations and warranties by EMC Mortgage, the complaint requests that EMC Mortgage be ordered to repurchase from the Trust any loans for which it breached its representations and warranties, in the amount of the mortgage loans’ outstanding principal balance and all accrued but unpaid interest. | |
The indemnification notice from JP Morgan Chase further alleged that the Company and SecurityNational Mortgage are required to indemnify EMC Mortgage for any of its losses arising from the lawsuit that the Trust brought against EMC based upon allegedly untrue statements of material fact related to information that was provided by SecurityNational Mortgage. To the extent the claims in the complaint relate to the 21 mortgage loans that SecurityNational Mortgage allegedly sold to EMC Mortgage, the Company believes it has significant defenses to such claims. The Company intends to vigorously defend itself and SecurityNational Mortgage in the event that JP Morgan Chase were to bring any legal action to require the Company or SecurityNational Mortgage to indemnify it for any loss, liability or expense in connection with the lawsuit that the Trust has brought against EMC Mortgage. | |
Mortgage Loan Loss Litigation | |
Lehman Brothers - Aurora Loan Services Litigation | |
On April 15, 2005, SecurityNational Mortgage entered into a loan purchase agreement with Lehman Brothers Bank, FSB (“Lehman Bank”). Under the terms of the loan purchase agreement, Lehman Bank agreed to purchase mortgage loans from time to time from SecurityNational Mortgage. During 2007, Lehman Bank and its wholly owned subsidiary, Aurora Loan Services LLC (“Aurora Loan Services”), purchased a total of 1,490 mortgage loans in the aggregate amount of $352,774,000 from SecurityNational Mortgage. Lehman Bank asserted that certain of the mortgage loans that it purchased from SecurityNational Mortgage during 2007 contained alleged misrepresentations and early payment defaults. As a result of these alleged issues with the mortgage loans, Lehman Bank contended it had the right to require SecurityNational Mortgage to repurchase certain loans or be liable for losses related to such loans under the loan purchase agreement. SecurityNational Mortgage disagrees with these claims. | |
On December 17, 2007, SecurityNational Mortgage entered into an Indemnification Agreement with Lehman Bank and Aurora Loan Services. Under the terms of the Indemnification Agreement, SecurityNational Mortgage agreed to indemnify Lehman Bank and Aurora Loan Services for 75% of all losses that Lehman Bank and Aurora Loan Services may incur relative to breaches by mortgagors pertaining to 55 mortgage loans that were purchased from SecurityNational Mortgage. SecurityNational Mortgage was released from any obligation to pay the remaining 25% of such losses. The Indemnification Agreement also required SecurityNational Mortgage to indemnify Lehman Bank and Aurora Loan Services for 100% of any future losses incurred on mortgage loans with breaches that were not among the 55 mortgage loans. | |
Pursuant to the Indemnification Agreement, SecurityNational Mortgage paid $395,000 to Aurora Loan Services as a deposit into a reserve account, to secure any obligations of SecurityNational Mortgage under the Indemnification Agreement. This deposit was in addition to a $250,000 deposit that SecurityNational Mortgage previously made into the reserve account for a total of $645,000. Losses from mortgage loans with alleged breaches were payable from the reserve account. Lehman Bank and Aurora Loan Services were not to apply any funds from the reserve account to a particular mortgage loan, however, until an actual loss had occurred. Under the Indemnification Agreement SecurityNational Mortgage was to pay to Aurora Loan Services each calendar month the difference between the reserve account balance and $645,000, but in no event would SecurityNational Mortgage be required to make payments into the reserve account in excess of $125,000 for any calendar month. | |
Since the time the reserve account was established, SecurityNational Mortgage paid a total of $4,281,000 from the reserve account to indemnify Lehman Brothers Bank and Aurora Loan Services for alleged losses from 31 mortgage loans that were among 55 mortgage loans with alleged breaches that were covered by the Indemnification Agreement and ten other mortgage loans with alleged breaches. In the last monthly billing statement dated April 24, 2011 to SecurityNational Mortgage, Lehman Brothers Holdings Inc. (“Lehman Holdings”) claimed that SecurityNational Mortgage owed approximately $3,745,000 for mortgage loan losses under the Indemnification Agreement. | |
During 2010 and 2011, the Company recognized alleged losses of $1,289,000 and $-0-, respectively. Management cannot fully determine the total losses, however, because there could be potential claims for losses that have not yet been determined. As of June 30, 2014, the Company had not accrued for any losses under the Indemnification Agreement. SecurityNational Mortgage was involved in discussions with Lehman Bank and Lehman Holdings concerning issues under the Indemnification Agreement. During the discussion period, monthly payments for December 2010 and January, February, March and April of 2011 totaling $625,000 were abated or deferred. | |
On May 11, 2011, SecurityNational Mortgage filed a complaint against Aurora Bank FSB, formerly known as Lehman Bank, and hereinafter referred to as Lehman Bank, and Aurora Loan Services in the United States District Court for the District of Utah because it had been unable to resolve certain issues under the Indemnification Agreement. The complaint alleges, among other claims, material breach of the Indemnification Agreement, including a claim that neither Lehman Bank nor Aurora Loan Services owned mortgage loans sold by SecurityNational to justify the amount of payments demanded from, and made by SecurityNational Mortgage. As a result, SecurityNational Mortgage claims it is entitled to judgment of approximately $4,000,000 against Lehman Bank, as well as Aurora Loan Services to the extent of its involvement and complicity with Lehman Bank. The complaint also alleges a second claim for material breach of a section of the Indemnification Agreement that contains an alleged “sunset” provision and that the amount of the requested payments made was not justified under the “sunset” provision. | |
On June 8, 2011, Lehman Holdings, which had filed for bankruptcy in September 2008, filed a complaint against SecurityNational Mortgage in the United States District Court for the District of Utah. A subsidiary of Lehman Holdings owns Lehman Bank. The complaint alleges that SecurityNational Mortgage sold loans to Lehman Bank, which were then sold to Lehman Holdings. The complaint additionally alleges that Lehman Bank and Aurora Loan Services assigned their rights and remedies under the loan purchase agreement, as well as the Indemnification Agreement to Lehman Holdings, which latter assignment purportedly took place on March 28, 2011. Lehman Holdings declared in a letter dated June 2, 2011 that the Indemnification Agreement was null and void except for losses previously released and discharged, which is disputed by SecurityNational Mortgage. | |
Lehman Holdings’ alleged claims are for damages for breach of contract and breach of warranty pursuant to a loan purchase agreement and Seller’s Guide. Based on claiming that the Indemnification Agreement is null and void pursuant to its lawsuit, Lehman Holdings has initially claimed damages in excess of $5,000,000. Prior to declaring the Indemnification Agreement null and void, Lehman Holdings claimed in a then recent billing statement under the terms of the Indemnification Agreement, that SecurityNational Mortgage owed approximately $3,745,000 for mortgage loan losses under the Indemnification Agreement. SecurityNational Mortgage strongly disagrees with the position of Lehman Holdings and, as set forth in its May 11, 2011 complaint, seeks affirmative relief of approximately $4,000,000 from Lehman Bank and Aurora Loan Services, which are related to Lehman Holdings. | |
On September 4, 2012, SecurityNational Mortgage filed a motion for summary judgment in its action against Lehman Bank and Aurora Loan Services on certain material issues, as well as against Lehman Holdings regarding its claims against SecurityNational Mortgage. Lehman Bank and Aurora Loan Services filed a cross motion for summary judgment as to the issues in SecurityNational Mortgage’s motion and, in the Lehman Holdings case, Lehman Holdings has requested that the Court allow a cross motion on the issues which are the subject of SecurityNational Mortgage’s September 4, 2012 motion. The cases are before two different federal judges. | |
On February 27, 2013, SecurityNational Mortgage’s motion for summary judgment against Lehman Bank and Aurora Loan Services and the related cross motion were heard by Judge David Nuffer of the United States District Court for the District of Utah. After an extensive hearing, Judge Nuffer requested that the parties prepare findings of fact in accordance with the Court’s earlier promulgated findings as modified at the hearing, and that each party submit proposed conclusions of law related to the motions. The motion and cross motion were taken under advisement. SecurityNational Mortgage’s motion in the Lehman Holdings case was heard on April 22, 2014 before Judge Ted Stewart of the United States District Court for the District of Utah, and is under advisement. | |
On May 6, 2014, Judge Nuffer issued his summary of facts, conclusions of law and order granting SecurityNational Mortgage’s motion for summary judgment and denying the cross motion of Lehman Bank and Aurora Loan Services. On May 27, 2014, Lehman Bank and Aurora Loan Services filed a motion to reconsider Judge Nuffer’s summary judgment ruling. On June 2, 2014, a hearing was held before Judge Nuffer to determine the amount owing to SecurityNational Mortgage pursuant to the summary judgment ruling. The motion to reconsider the summary judgment ruling and the issue of what is owing to SecurityNaitonal Mortgage pursuant to the summary judgment ruling are both under advisement by the Court, the Court having indicated that it will issue a ruling on both matters at the same time. | |
On May 7, 2014, Judge Stewart issued an order for the parties to submit supplemental briefs as to the effect of Judge Nuffer’s summary judgment order on SecurityNational Mortgage’s motion for summary judgment in the Lehman Holdings case. The supplemental briefing is due within ten days after Judge Nuffer issues his ruling on the motion to reconsider the summary judgment ruling. Judge Stewart also granted leave for SecurityNational Mortgage to file an additional motion for summary judgment in the Lehman Holdings case on the basis that the claims of Lehman Holdings are barred by the statute of limitations. This motion is also to be filed within ten days after Judge Nuffer rules on the motion to reconsider the summary judgment ruling. The August 11, 2014 trial setting in the Lehman Holdings case was stricken without providing a new trial date. | |
The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which if adversely determined, would have a material adverse effect on its financial condition or results of operation. | |
Other Contingencies and Commitments | |
The Company has entered into commitments to fund new residential construction loans. As of June 30, 2014, the Company’s commitments were $36,092,000 for these loans of which $20,414,000 had been funded. The Company will advance funds once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees from the borrowers and the interest rate is generally 2% to 6.75% over the bank prime rate (3.25% as of June 30, 2014). Maturities range between six and twelve months. | |
The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which, if adversely determined, would have a material adverse effect on its financial condition or results of operations. | |
12_Mortgage_Servicing_Rights
12) Mortgage Servicing Rights | 6 Months Ended | ||
Jun. 30, 2014 | |||
Notes | ' | ||
12) Mortgage Servicing Rights | ' | ||
12) Mortgage Servicing Rights | |||
The following is a summary of the MSR activity for the periods presented. | |||
As of June 30 2014 | As of December 31 2013 | ||
Amortized cost: | |||
Balance before valuation allowance at beginning of year | $ 4,844,101 | $ 2,797,470 | |
MSRs proceeds from loan sales | 1,608,696 | 2,494,254 | |
Amortization | (321,189) | (447,623) | |
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | |
Balance before valuation allowance at year end | $ 6,131,608 | $ 4,844,101 | |
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 | $ 6,131,608 | $ 4,844,101 | |
Estimated fair value of MSRs at end of period | $ 6,860,160 | $ 5,491,270 | |
The Company reports these MSRs pursuant to the accounting policy discussed in Note 8 and Note 9. |
13_Mergers_Acquisitions_and_Di
13) Mergers, Acquisitions and Dispositions Disclosures | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes | ' | ||||||||
13) Mergers, Acquisitions and Dispositions Disclosures | ' | ||||||||
13) Acquisitions | |||||||||
Acquisition of American Funeral Financial | |||||||||
On June 4, 2014, the Company, through its wholly owned subsidiary, SNFC Subsidiary, LLC (“SNFC Subsidiary”), completed a purchase transaction with American Funeral Financial, LLC, a South Carolina limited liability company (“American Funeral Financial”) and Hypershop, LLC, a North Carolina limited liability company (“Hypershop”), the sole owner of all the limited liability company interests of American Funeral Financial, to purchase all of the outstanding limited liability company interests, or membership units, of American Funeral Financial. American Funeral Financial is engaged in the operation of a factoring business with the principal purpose of providing funding for funeral homes and mortuaries. | |||||||||
Under the terms of the transaction, as set forth in the Unit Purchase Agreement dated June 4, 2014 (the “Purchase Agreement”), among the Company, SNFC Subsidiary, American Funeral Financial and Hypershop, the Company paid Hypershop purchase consideration equal to (i) $3,000,000 in cash, of which $175,000 was deposited into an | |||||||||
interest bearing escrow account to be held for a period of twelve months from the closing date to pay off the indebtedness and other liabilities of American Funeral Financial, plus (ii) $12,011,183, representing the amount of the good standing receivables of American Funeral Financial, plus (iii) earn-out payments equal to .0042 of the aggregate amount of life insurance assignments funded by American Funeral Financial during the three year period following the closing date of the transaction. The purchase consideration was to be used to pay off the indebtedness that American Funeral Financial owed to Security Finance Corporation of Spartanburg, as well as to pay off all other indebtedness and liabilities of American Funeral Financial. | |||||||||
The good standing receivables of American Funeral Financial are defined as its assignment receivables outstanding for less than 120 days from the closing date. Within 15 business days after the expiration of the 120-day period following the closing date, Security National agrees to provide Hypershop with reasonable supporting detail of the amount of any assignment receivables included in the good standing receivables that were not collected in full by Security National during such 120-day period, and which of the uncollected good standing receivables that Security National elects to receive payment from Hypershop. Thus, under the Purchase Agreement, Security National is entitled to payment from Hypershop for any uncollected good standing receivables in which Security National elects to receive payment. | |||||||||
The uncollected good standing receivables payment is to be paid to Security National within 15 days from Hypershop’s receipt of the uncollected receivable notice from Security National through reduction of funds in the escrow account until the escrow amount has been reduced to zero or fully disbursed, and if the escrow amount is insufficient, then payment is to be made by offsetting or crediting the amounts owed to Security National from the earn-out payments owed to Hypershop until Security National has received full payment of the amount equal to the uncollected receivables payment. Security National, SNFC Subsidiary, Hyershop and American Funeral agree that if the escrow amount and the offsets against earn-out payments are insufficient to pay the amount of the uncollected good standing receivables and the outstanding indebtedness and other liabilities of American Funeral Financial as of the closing date, then Security National has no further recourse against Hypershop, and Hypershop has no further obligation or liability to Security National. | |||||||||
During the period between the closing date and 270 days after the closing date, Security National is required to use commercially reasonable efforts to collect all outstanding receivables, including assignment receivables outstanding for over 120 days from the closing date. In the event that Security National collects any assignment receivables that are outstanding for more than 120 days, Security National agrees to pay Hypershop the amount of such receivables within 15 business days after the receipt of such receivables. If Security National is unable to collect all the outstanding receivables that are more than 120 days from the closing date, Security National agrees to transfer to Hypershop all right, title and interest to such receivables. | |||||||||
With regard to earn-out payments, Security National agrees to provide earn-out payments to Hypershop on a monthly basis over a three year period in the amount equal to the life insurance assignments that American Funeral Financial has funded during the applicable monthly calculation period multiplied by the earn-out multiple of .0042. In the event any customer of American Funeral Financial has also been a customer of C & J Financial, LLC (“C & J Financial”), a wholly owned subsidiary of Security National, during the twelve month period prior to the closing date, the earn-out multiple would be proportionately reduced by the funding amount provided by American Funeral Financial for such customer during the twelve month period prior to the closing date as compared to the funding amount provided by C & J Financial for such customer during the same twelve month period. | |||||||||
Finally, at closing, Security National, SNFC Subidiary and American Funeral Financial entered into a non-competition and confidentiality agreement with Scott Coffman, President of Hypershop. Additionally, American Funeral Financial entered into an employment agreement with Charles B. Gallagher, Jr., who had been serving as Executive Vice President and Chief Operating Officer of American Funeral Financial, and a consulting agreement with A. Todd Justice, who had been serving as President of American Funeral Financial. | |||||||||
The estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition were as follows: | |||||||||
Other loans, net | $ 11,866,193 | ||||||||
Property and equipment | 760,120 | ||||||||
Goodwill | 2,373,722 | ||||||||
Other | 1,379,158 | ||||||||
Total assets acquired | 16,379,193 | ||||||||
Other liabilities and accrued expenses | (1,368,000) | ||||||||
Total liabilities assumed | (1,368,000) | ||||||||
Fair value of net assets acquired | $ 15,011,193 | ||||||||
The following unaudited pro forma information has been prepared to present the results of operations of the Company assuming the acquisition of American Funeral Financial had occurred at the beginning of the three and six months periods ended June 30, 2014 and 2013. This pro forma information is supplemental and does not necessarily present the operations of the Company that would have occurred had the acquisition occurred on those dates and may not reflect the operations that will occur in the future: | |||||||||
For the Three Months Ended June 30 (unaudited) | For the Six Months Ended June 30 (unaudited) | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Total revenues | $ 60,275,049 | $ 62,538,480 | $ 106,796,985 | $ 118,182,856 | |||||
Net earnings | $ 2,661,985 | $ 2,925,290 | $ 3,004,668 | $ 5,004,912 | |||||
Net earnings per Class A equivalent common share | $ 0.22 | $ 0.25 | $ 0.25 | $ 0.43 | |||||
Net earnings per Class A equivalent common share | |||||||||
assuming dilution | $ 0.22 | $ 0.23 | $ 0.24 | $ 0.40 | |||||
1_Basis_of_Presentation_Accoun
1) Basis of Presentation: Accounting Policy (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Accounting Policy | ' |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 Q and Articles 8 and 10 of Regulation S X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K (file number 000-09341). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. |
1_Basis_of_Presentation_Use_of
1) Basis of Presentation: Use of Estimates Policy (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Policies | ' |
Use of Estimates Policy | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
The estimates susceptible to significant change are those used in determining the liability for future policy benefits and claims, those used in determining valuation allowances for mortgage loans on real estate and construction loans held for investment, those used in determining loan loss reserve, and those used in determining the estimated future costs for pre-need sales. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. |
3_Investments_Heldtomaturity_S
3) Investments: Held-to-maturity Securities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Held-to-maturity Securities | ' | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||
June 30, 2014: | |||||||||
Fixed maturity securities held to maturity carried at amortized cost: | |||||||||
Bonds: | |||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ 1,877,830 | $ 335,092 | $ - | $ 2,212,922 | |||||
Obligations of states and political subdivisions | 1,734,871 | 249,165 | (5,504) | 1,978,532 | |||||
Corporate securities including public utilities | 130,790,757 | 16,222,135 | (259,907) | 146,752,985 | |||||
Mortgage-backed securities | 3,901,988 | 314,204 | (10,806) | 4,205,386 | |||||
Redeemable preferred stock | 612,023 | 16,432 | - | 628,455 | |||||
Total fixed maturity securities held to maturity | $ 138,917,469 | $ 17,137,028 | $ (276,217) | $ 155,778,280 | |||||
AsOfDecember312012Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Held-to-maturity Securities | ' | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||
December 31, 2013: | |||||||||
Fixed maturity securities held to maturity carried at amortized cost: | |||||||||
Bonds: | |||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | $ 2,284,261 | $ 298,901 | $ - | $ 2,583,162 | |||||
Obligations of states and political subdivisions | 1,790,661 | 197,340 | (9,404) | 1,978,597 | |||||
Corporate securities including public utilities | 134,257,468 | 10,513,448 | (1,394,919) | 143,375,997 | |||||
Mortgage-backed securities | 4,522,081 | 206,617 | (11,351) | 4,717,347 | |||||
Redeemable preferred stock | 612,023 | 12,994 | (5,900) | 619,117 | |||||
Total fixed maturity securities held to maturity | $ 143,466,494 | $ 11,229,300 | $ (1,421,574) | $ 153,274,220 | |||||
3_Investments_Availableforsale
3) Investments: Available-for-sale Securities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Available-for-sale Securities | ' | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||
June 30, 2014: | |||||||||
Equity securities available for sale at estimated fair value: | |||||||||
Common stock: | |||||||||
Industrial, miscellaneous and all other | $ 7,533,929 | $ 429,683 | $ (520,852) | $ 7,442,760 | |||||
Total equity securities available for sale at estimated fair value | $ 7,533,929 | $ 429,683 | $ (520,852) | $ 7,442,760 | |||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | |||||||||
Residential | $ 61,422,422 | ||||||||
Residential construction | 20,414,105 | ||||||||
Commercial | 47,266,708 | ||||||||
Less: Allowance for loan losses | (1,694,932) | ||||||||
Total mortgage loans on real estate and construction loans held for investment | $ 127,408,303 | ||||||||
Real estate held for investment - net of depreciation | $ 101,388,355 | ||||||||
Policy and other loans at amortized cost: | |||||||||
Policy loans | $ 7,281,130 | ||||||||
Other loans | 26,447,688 | ||||||||
Less: Allowance for doubtful accounts | (532,433) | ||||||||
Total policy and other loans at amortized cost | $ 33,196,385 | ||||||||
Short-term investments at amortized cost | $ 20,268,060 | ||||||||
AsOfDecember312012Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Available-for-sale Securities | ' | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||
December 31, 2013: | |||||||||
Equity securities available for sale at estimated fair value: | |||||||||
Common stock: | |||||||||
Industrial, miscellaneous and all other | $ 4,783,936 | $ 240,206 | $ (525,386) | $ 4,498,756 | |||||
Total securities available for sale carried at estimated fair value | $ 4,783,936 | $ 240,206 | $ (525,386) | $ 4,498,756 | |||||
Mortgage loans on real estate and construction loans held for investment at amortized cost: | |||||||||
Residential | $ 49,868,486 | ||||||||
Residential construction | 12,912,473 | ||||||||
Commercial | 41,653,009 | ||||||||
Less: Allowance for loan losses | (1,652,090) | ||||||||
Total mortgage loans on real estate and construction loans held for investment | $ 102,781,878 | ||||||||
Real estate held for investment - net of depreciation | $ 99,760,475 | ||||||||
Policy and other loans at amortized cost: | |||||||||
Policy loans | $ 7,520,376 | ||||||||
Other loans | 12,472,805 | ||||||||
Less: Allowance for doubtful accounts | (269,175) | ||||||||
Total policy and other loans at amortized cost | $ 19,724,006 | ||||||||
Short-term investments at amortized cost | $ 12,135,719 |
3_Investments_Schedule_of_Unre
3) Investments: Schedule of Unrealized Loss on Investments (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Fixed Maturities | ' | ||||||||||
Tables/Schedules | ' | ||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||
Unrealized Losses for Less than Twelve Months | No. of Investment Positions | Unrealized Losses for More than Twelve Months | No. of Investment Positions | Total Unrealized Loss | |||||||
At June 30, 2014 | |||||||||||
Obligations of states and political subdivisions | $ - | 0 | $ 5,504 | 1 | $ 5,504 | ||||||
Corporate securities including public utilities | 28,127 | 3 | 231,780 | 22 | 259,907 | ||||||
Mortgage-backed securities | 2,674 | 1 | 8,132 | 1 | 10,806 | ||||||
Redeemable preferred stock | - | 0 | - | 0 | - | ||||||
Total unrealized losses | $ 30,801 | 4 | $ 245,416 | 24 | $ 276,217 | ||||||
Fair Value | $ 757,752 | $ 5,110,986 | $ 5,868,738 | ||||||||
At December 31, 2013 | |||||||||||
Obligations of states and political subdivisions | $ 7,131 | 1 | $ 2,273 | 1 | $ 9,404 | ||||||
Corporate securities including public utilities | 1,134,414 | 72 | 260,504 | 10 | 1,394,919 | ||||||
Mortgage-backed securities | 3,109 | 1 | 8,242 | 1 | 11,351 | ||||||
Redeemable preferred stock | 5,900 | 1 | - | 0 | 5,900 | ||||||
Total unrealized losses | $ 1,150,554 | 75 | $ 271,019 | 12 | $ 1,421,574 | ||||||
Fair Value | $ 22,002,277 | $ 2,308,464 | $ 24,310,741 | ||||||||
Equity Securities | ' | ||||||||||
Tables/Schedules | ' | ||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||
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 June 30, 2014 | |||||||||||
Industrial, miscellaneous and all other | $ 85,985 | 97 | $ 434,867 | 29 | $ 520,852 | ||||||
Total unrealized losses | $ 85,985 | 97 | $ 434,867 | 29 | $ 520,852 | ||||||
Fair Value | $ 1,418,657 | $ 822,995 | $ 2,241,652 | ||||||||
At December 31, 2013 | |||||||||||
Industrial, miscellaneous and all other | $ 119,450 | 28 | $ 405,936 | 28 | $ 525,386 | ||||||
Total unrealized losses | $ 119,450 | 28 | $ 405,936 | 28 | $ 525,386 | ||||||
Fair Value | $ 993,612 | $ 772,345 | $ 1,765,957 | ||||||||
3_Investments_Investments_Clas
3) Investments: Investments Classified by Contractual Maturity Date (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Held-to-maturity Securities | ' | ||||
Tables/Schedules | ' | ||||
Investments Classified by Contractual Maturity Date | ' | ||||
Amortized Cost | Estimated Fair Value | ||||
Held to Maturity: | |||||
Due in 2014 | $ 1,998,597 | $ 2,014,415 | |||
Due in 2015 through 2018 | 28,025,560 | 31,140,613 | |||
Due in 2019 through 2023 | 37,841,385 | 42,592,185 | |||
Due after 2023 | 66,537,916 | 75,197,226 | |||
Mortgage-backed securities | 3,901,988 | 4,205,386 | |||
Redeemable preferred stock | 612,023 | 628,455 | |||
Total held to maturity | $ 138,917,469 | $ 155,778,280 | |||
Available-for-sale Securities | ' | ||||
Tables/Schedules | ' | ||||
Investments Classified by Contractual Maturity Date | ' | ||||
Amortized Cost | Estimated Fair Value | ||||
Available for Sale: | |||||
Due in 2014 | $ - | $ - | |||
Due in 2015 through 2018 | - | - | |||
Due in 2019 through 2023 | - | - | |||
Due after 2023 | - | - | |||
Non-redeemable preferred stock | - | - | |||
Common stock | 7,533,929 | 7,442,760 | |||
Total available for sale | $ 7,533,929 | $ 7,442,760 | |||
3_Investments_Gain_Loss_on_Inv
3) Investments: Gain (Loss) on Investments (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Gain (Loss) on Investments | ' | ||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Fixed maturity securities held to maturity: | |||||||||
Gross realized gains | $ 47,548 | $ 2,512 | $ 47,548 | $ 15,404 | |||||
Gross realized losses | (2,284) | (9,693) | (2,284) | (15,168) | |||||
Other than temporary impairments | (30,000) | (30,000) | (60,000) | (60,000) | |||||
Securities available for sale: | |||||||||
Gross realized gains | 72,397 | 105,426 | 125,650 | 239,382 | |||||
Gross realized losses | - | (1,942) | - | (2,678) | |||||
Other than temporary impairments | - | - | - | - | |||||
Other assets: | |||||||||
Gross realized gains | 222,191 | 43,879 | 367,931 | 745,820 | |||||
Gross realized losses | - | - | - | - | |||||
Other than temporary impairments | - | (115,922) | - | (115,922) | |||||
Total | $ 309,852 | $ (5,740) | $ 478,845 | $ 806,838 | |||||
3_Investments_Schedule_of_Majo
3) Investments: Schedule of Major categories of net investment income (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Major categories of net investment income | ' | |||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||
2014 | 2013 | 2014 | 2013 | |||||
Fixed maturity securities | $ 2,067,324 | $ 2,056,804 | $ 4,176,445 | $ 4,009,843 | ||||
Equity securities | 50,752 | 38,729 | 89,999 | 104,489 | ||||
Mortgage loans on real estate | 1,837,060 | 1,011,446 | 3,389,171 | 2,051,221 | ||||
Real estate | 2,126,566 | 1,363,662 | 4,291,565 | 2,441,324 | ||||
Policy and other loans | 181,687 | 196,096 | 379,255 | 399,231 | ||||
Short-term investments, principally gains on sale of mortgage loans and other | 2,781,988 | 2,371,299 | 4,681,101 | 4,578,893 | ||||
Gross investment income | 9,045,377 | 7,038,036 | 17,007,536 | 13,585,001 | ||||
Investment expenses | (2,338,090) | (2,011,992) | (4,657,749) | (3,557,940) | ||||
Net investment income | $ 6,707,287 | $ 5,026,044 | $ 12,349,787 | $ 10,027,061 | ||||
3_Investments_Schedule_of_Allo
3) Investments: Schedule of Allowance for loan losses as a contra-asset account (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Allowance for loan losses as a contra-asset account | ' | |||||||
Allowance for Credit Losses and Recorded Investment in Mortgage Loans | ||||||||
Commercial | Residential | Residential Construction | Total | |||||
30-Jun-14 | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance - January 1, 2014 | $ 187,129 | $ 1,364,847 | $ 100,114 | $ 1,652,090 | ||||
Charge-offs | - | (38,444) | - | (38,444) | ||||
Provision | - | 81,286 | - | 81,286 | ||||
Ending balance -June 30, 2014 | $ 187,129 | $ 1,407,689 | $ 100,114 | $ 1,694,932 | ||||
Ending balance: individually evaluated for impairment | $ - | $ 119,897 | $ - | $ 119,897 | ||||
Ending balance: collectively evaluated for impairment | $ 187,129 | $ 1,287,792 | $ 100,114 | $ 1,575,035 | ||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||
Mortgage loans: | ||||||||
Ending balance | $ 47,266,708 | $ 61,422,422 | $ 20,414,105 | $ 129,103,235 | ||||
Ending balance: individually evaluated for impairment | $ - | $ 960,360 | $ - | $ 960,360 | ||||
Ending balance: collectively evaluated for impairment | $ 47,266,708 | $ 60,462,062 | $ 20,414,105 | $ 128,142,875 | ||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||
31-Dec-13 | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance - January 1, 2013 | $ - | $ 4,193,674 | $ 46,187 | $ 4,239,861 | ||||
Charge-offs | - | (2,670,794) | (137,629) | (2,808,423) | ||||
Provision | 187,129 | (158,033) | 191,556 | 220,652 | ||||
Ending balance - December 31, 2013 | $ 187,129 | $ 1,364,847 | $ 100,114 | $ 1,652,090 | ||||
Ending balance: individually evaluated for impairment | $ - | $ 152,745 | $ - | $ 152,745 | ||||
Ending balance: collectively evaluated for impairment | $ 187,129 | $ 1,212,102 | $ 100,114 | $ 1,499,345 | ||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||
Mortgage loans: | ||||||||
Ending balance | $ 41,653,009 | $ 49,868,486 | $ 12,912,473 | $ 104,433,968 | ||||
Ending balance: individually evaluated for impairment | $ - | $ 1,518,327 | $ - | $ 1,518,327 | ||||
Ending balance: collectively evaluated for impairment | $ 41,653,009 | $ 48,350,159 | $ 12,912,473 | $ 102,915,641 | ||||
Ending balance: loans acquired with deteriorated credit quality | $ - | $ - | $ - | $ - | ||||
3_Investments_Schedule_of_agin
3) Investments: Schedule of aging of mortgage loans (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Tables/Schedules | ' | |||||||||
Schedule of aging of mortgage loans | ' | |||||||||
Age Analysis of Past Due Mortgage Loans | ||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days (1) | In Foreclosure (1) | Total Past Due | Current | Total Mortgage Loans | Allowance for Loan Losses | Net Mortgage Loans | ||
30-Jun-14 | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | $ 47,266,708 | $ 47,266,708 | $ (187,129) | $ 47,079,579 | |
Residential | 1,052,534 | 1,989,725 | 5,171,118 | 960,360 | 9,173,737 | 52,248,685 | 61,422,422 | (1,407,689) | 60,014,733 | |
Residential Construction | - | - | 64,895 | - | 64,895 | 20,349,210 | 20,414,105 | (100,114) | 20,313,991 | |
Total | $ 1,052,534 | $ 1,989,725 | $ 5,236,013 | $ 960,360 | $ 9,238,632 | $ 119,864,603 | $ 129,103,235 | $ (1,694,932) | $ 127,408,303 | |
31-Dec-13 | ||||||||||
Commercial | $ - | $ - | $ - | $ 4,973,745 | $ 4,973,745 | $ 36,679,264 | $ 41,653,009 | $ (187,129) | $ 41,465,880 | |
Residential | 1,646,953 | 1,604,847 | 5,867,501 | 1,518,327 | 10,637,628 | 39,230,858 | 49,868,486 | (1,364,847) | 48,503,639 | |
Residential Construction | - | - | 64,895 | - | 64,895 | 12,847,578 | 12,912,473 | (100,114) | 12,812,359 | |
Total | $ 1,646,953 | $ 1,604,847 | $ 5,932,396 | $ 6,492,072 | $ 15,676,268 | $ 88,757,700 | $ 104,433,968 | $ (1,652,090) | $ 102,781,878 | |
(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
3_Investments_Schedule_of_Impa
3) Investments: Schedule of Impaired Mortgage Loans (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Tables/Schedules | ' | |||||||||
Schedule of Impaired Mortgage Loans | ' | |||||||||
Impaired Loans | ||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||
30-Jun-14 | ||||||||||
With no related allowance recorded: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | - | - | - | - | - | |||||
Residential construction | - | - | - | - | - | |||||
With an allowance recorded: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | 960,360 | 960,360 | 119,897 | 960,360 | - | |||||
Residential construction | - | - | - | - | - | |||||
Total: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | 960,360 | 960,360 | 119,897 | 960,360 | - | |||||
Residential construction | - | - | - | - | - | |||||
31-Dec-13 | ||||||||||
With no related allowance recorded: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | - | - | - | - | - | |||||
Residential construction | - | - | - | - | - | |||||
With an allowance recorded: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | 1,518,327 | 1,518,327 | 152,745 | 1,518,327 | - | |||||
Residential construction | - | - | - | - | - | |||||
Total: | ||||||||||
Commercial | $ - | $ - | $ - | $ - | $ - | |||||
Residential | 1,518,327 | 1,518,327 | 152,745 | 1,518,327 | - | |||||
Residential construction | - | - | - | - | - | |||||
3_Investments_ScheduleOfCredit
3) Investments: ScheduleOfCreditRiskOfMortgageLoansBasedOnPerformanceStatus (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Tables/Schedules | ' | |||||||||||||||
ScheduleOfCreditRiskOfMortgageLoansBasedOnPerformanceStatus: | ' | |||||||||||||||
The Company’s performing and non-performing mortgage loans were as follows: | ||||||||||||||||
Mortgage Loan Credit Exposure | ||||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||
Commercial | Residential | Residential Construction | Total | |||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||
Performing | $ 47,266,708 | $36,679,264 | $55,290,944 | $42,482,658 | $20,349,210 | $12,847,578 | $122,906,862 | $92,009,500 | ||||||||
Nonperforming | - | 4,973,745 | 6,131,478 | 7,385,828 | 64,895 | 64,895 | 6,196,373 | 12,424,468 | ||||||||
Total | $ 47,266,708 | $41,653,009 | $61,422,422 | $49,868,486 | $20,414,105 | $12,912,473 | $129,103,235 | $104,433,968 |
3_Investments_Schedule_of_Mort
3) Investments: Schedule of Mortgate loans on a nonaccrual status (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Tables/Schedules | ' | |||
Schedule of Mortgate loans on a nonaccrual status | ' | |||
Mortgage Loans on Nonaccrual Status | ||||
As of June 30 2014 | As of December 31 2013 | |||
Commercial | $ - | $ 4,973,745 | ||
Residential | 6,131,478 | 7,385,828 | ||
Residential construction | 64,895 | 64,895 | ||
Total | $ 6,196,373 | $ 12,424,468 | ||
3_Investments_Schedule_of_loan
3) Investments: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Tables/Schedules | ' | |||
Schedule of loan loss reserve which is included in other liabilities and accrued expenses | ' | |||
As of June 30 2014 | As of December 31 2013 | |||
Balance, beginning of period | $ 5,506,532 | $ 6,035,295 | ||
Provisions for losses | 943,425 | 1,846,285 | ||
Charge-offs | (240,997) | (2,375,048) | ||
Balance, end of period | $ 6,208,960 | $ 5,506,532 | ||
4_Stockbased_Compensation_Sche
4) Stock-based Compensation: Schedule of stock inventive plan changes (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of stock inventive plan changes | ' | ||||||||
A summary of the status of the Company’s stock incentive plans as of June 30, 2014, and the changes during the six months ended June 30, 2014, is presented below: | |||||||||
Number of Class A Shares | Weighted Average Exercise Price | Number of Class C Shares | Weighted Average Exercise Price | ||||||
Outstanding at December 31, 2013 | 405,133 | $ 2.41 | 508,656 | $ 2.00 | |||||
Granted | - | - | |||||||
Exercised | (34,955) | 1.44 | - | ||||||
Cancelled | (1,838) | 2.92 | - | ||||||
Outstanding at June 30, 2014 | 368,340 | $ 2.50 | 508,656 | $ 2.00 | |||||
As of June 30, 2014: | |||||||||
Options exercisable | 325,243 | $ 2.23 | 482,406 | $ 1.84 | |||||
As of June 30, 2014: | |||||||||
Available options for future grant | 314,480 | 105,000 | |||||||
Weighted average contractual term of options | |||||||||
outstanding at June 30, 2014 | 6.77 years | 2.11 years | |||||||
Weighted average contractual term of options | |||||||||
exercisable at June 30, 2014 | 6.42 years | 1.99 years | |||||||
Aggregated intrinsic value of options | |||||||||
outstanding at June 30, 2014 | $690,130 | $1,194,177 | |||||||
Aggregated intrinsic value of options | |||||||||
exercisable at June 30, 2014 | $689,924 | $1,194,177 | |||||||
6_Earnings_Per_Share_Schedule_
6) Earnings Per Share: Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Tables/Schedules | ' | |||||||||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share | ' | |||||||||
The basic and diluted earnings per share amounts were calculated as follows: | ||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Numerator: | ||||||||||
Net earnings | $ 2,624,063 | $ 2,799,245 | $ 2,762,911 | $ 4,832,511 | ||||||
Denominator: | ||||||||||
Basic weighted-average shares outstanding | 11,835,185 | 11,724,522 | 11,844,936 | 11,669,542 | ||||||
Effect of dilutive securities: | ||||||||||
Employee stock options | 426,112 | 846,990 | 433,566 | 888,095 | ||||||
Diluted weighted-average shares outstanding | 12,261,297 | 12,571,512 | 12,278,502 | 12,557,637 | ||||||
Basic net earnings per share | $0.22 | $0.24 | $0.23 | $0.41 | ||||||
Diluted net earnings per share | $0.21 | $0.22 | $0.23 | $0.38 |
7_Business_Segments_Schedule_o
7) Business Segments: Schedule of Revenues and Expenses by Reportable Segment (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Tables/Schedules | ' | ||||||||||
Schedule of Revenues and Expenses by Reportable Segment | ' | ||||||||||
Life Insurance | Cemetery/ Mortuary | Mortgage | Eliminations | Consolidated | |||||||
For the Three Months Ended | |||||||||||
30-Jun-14 | |||||||||||
Revenues from external customers | $ 19,810,498 | $ 3,534,881 | $ 36,066,351 | $ - | $ 59,411,730 | ||||||
Intersegment revenues | 2,356,195 | 334,314 | 231,249 | (2,921,758) | - | ||||||
Segment profit before income taxes | 1,515,426 | 168,911 | 2,502,760 | - | 4,187,097 | ||||||
For the Three Months Ended | |||||||||||
30-Jun-13 | |||||||||||
Revenues from external customers | $ 16,797,489 | $ 3,380,560 | $ 41,154,240 | $ - | $ 61,332,289 | ||||||
Intersegment revenues | 2,504,960 | 357,016 | 67,603 | (2,929,579) | - | ||||||
Segment profit before income taxes | 440,822 | 107,601 | 3,921,097 | - | 4,469,520 | ||||||
For the Six Months Ended | |||||||||||
30-Jun-14 | |||||||||||
Revenues from external customers | $ 38,283,314 | $ 6,575,449 | $ 59,606,243 | $ - | $ 104,465,006 | ||||||
Intersegment revenues | 4,417,915 | 670,612 | 395,395 | (5,483,922) | - | ||||||
Segment profit before income taxes | 2,846,895 | 351,689 | 1,154,500 | - | 4,353,084 | ||||||
Identifiable Assets | 626,378,955 | 108,686,715 | 56,057,674 | (148,165,860) | 642,957,484 | ||||||
Goodwill | 2,802,991 | 285,191 | - | - | 3,088,182 | ||||||
For the Six Months Ended | |||||||||||
30-Jun-13 | |||||||||||
Revenues from external customers | $ 34,041,381 | $ 6,360,591 | $ 75,782,551 | $ - | $ 116,184,523 | ||||||
Intersegment revenues | 5,092,793 | 715,506 | 124,765 | (5,933,064) | - | ||||||
Segment profit before income taxes | 1,255,153 | 184,366 | 6,257,624 | - | 7,697,143 | ||||||
Identifiable Assets | 571,473,136 | 112,584,116 | 66,990,347 | (134,012,151) | 617,035,448 | ||||||
Goodwill | 391,848 | 285,191 | - | - | 677,039 | ||||||
8_Fair_Value_of_Financial_Inst1
8): Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
AsOfJune302014Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||
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 | $ 7,442,760 | $ 7,442,760 | $ - | $ - | |||||
Total securities available for sale | $ 7,442,760 | $ 7,442,760 | $ - | $ - | |||||
Restricted assets of cemeteries and mortuaries | $ 706,438 | $ 706,438 | - | - | |||||
Cemetery perpetual care trust investments | 710,306 | 710,306 | - | - | |||||
Derivatives - interest rate lock commitments | 3,112,327 | - | - | 3,112,327 | |||||
Total assets accounted for at fair value on a recurring basis | $ 11,971,831 | $ 8,859,504 | $ - | $ 3,112,327 | |||||
Liabilities accounted for at fair value on a recurring basis | |||||||||
Policyholder account balances | $ (47,310,100) | $ - | $ - | $ (47,310,100) | |||||
Future policy benefits - annuities | (65,006,572) | - | - | (65,006,572) | |||||
Derivatives - bank loan interest rate swaps | (46,010) | - | - | (46,010) | |||||
- call options | (126,814) | (126,814) | - | - | |||||
- interest rate lock commitments | (386,007) | - | - | (386,007) | |||||
Total liabilities accounted for at fair value on a recurring basis | $ (112,875,503) | $ (126,814) | $ - | $ (112,748,689) | |||||
AsOfDecember312013Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||
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 | $ 4,498,756 | $ 4,498,756 | $ - | $ - | |||||
Total securities available for sale | $ 4,498,756 | $ 4,498,756 | $ - | $ - | |||||
Restricted assets of cemeteries and mortuaries | 667,149 | 667,149 | - | - | |||||
Cemetery perpetual care trust investments | 695,616 | 695,616 | - | - | |||||
Derivatives - interest rate lock commitments | 1,511,111 | - | - | 1,511,111 | |||||
Total assets accounted for at fair value on a recurring basis | $ 7,372,632 | $ 5,861,521 | $ - | $ 1,511,111 | |||||
Liabilities accounted for at fair value on a recurring basis | |||||||||
Policyholder account balances | $ (48,000,668) | $ - | $ - | $ (48,000,668) | |||||
Future policy benefits - annuities | (65,052,928) | - | - | (65,052,928) | |||||
Derivatives - bank loan interest rate swaps | (58,310) | - | - | (58,310) | |||||
- call options | (124,174) | (124,174) | - | - | |||||
- interest rate lock commitment | (23,203) | - | - | (23,203) | |||||
Total liabilities accounted for at fair value on a recurring basis | $ (113,259,283) | $ (124,174) | $ - | $ (113,135,109) | |||||
8_Fair_Value_of_Financial_Inst2
8): Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
AsOfJune302014Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs | ' | ||||||||
Following is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: | |||||||||
Policyholder Account Balances | Future Policy Benefits - Annuities | Interest Rate Lock Commitments | Bank Loan Interest Rate Swaps | ||||||
Balance - December 31, 2013 | $ (48,000,668) | $ (65,052,928) | $ 1,487,908 | $ (58,310) | |||||
Total gains (losses): | |||||||||
Included in earnings | 690,568 | 46,356 | - | - | |||||
Included in other comprehensive income (loss) | - | - | 1,238,412 | 12,300 | |||||
Balance – June 30, 2014 | $ (47,310,100) | $ (65,006,572) | $ 2,726,320 | $ (46,010) | |||||
AsOfDecember312012Member | ' | ||||||||
Tables/Schedules | ' | ||||||||
Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs | ' | ||||||||
Policyholder Account Balances | Future Policy Benefits - Annuities | Interest Rate Lock Commitments | Bank Loan Interest Rate Swaps | ||||||
Balance - December 31, 2012 | $ (49,746,337) | $ (65,171,687) | $ 2,961,465 | $ (93,572) | |||||
Total gains (losses): | |||||||||
Included in earnings | 1,745,669 | 118,759 | - | - | |||||
Included in other | |||||||||
comprehensive income | - | - | (1,473,557) | 35,262 | |||||
Balance - December 31, 2013 | $ (48,000,668) | $ (65,052,928) | $ 1,487,908 | $ (58,310) | |||||
8_Fair_Value_of_Financial_Inst3
8): Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a nonrecurring basis (Tables) (Asofjune302014Member) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Asofjune302014Member | ' | |||||||
Tables/Schedules | ' | |||||||
Schedule of fair value assets and liabilities measured on a nonrecurring basis | ' | |||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at June 30, 2014. | ||||||||
Quoted Prices | ||||||||
in Active | Significant | Significant | ||||||
Markets for | Observable | Unobservable | ||||||
Identical Assets | Inputs | Inputs | ||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||
Assets accounted for at fair value on a nonrecurring basis | ||||||||
Mortgage servicing rights | $ 1,608,696 | - | - | $ 1,608,696 | ||||
Real estate held for investment | 53,500 | - | - | 53,500 | ||||
Total assets accounted for at fair value on a nonrecurring basis | $ 1,662,196 | $ - | $ - | $ 1,662,196 | ||||
8_Fair_Value_of_Financial_Inst4
8): Fair Value of Financial Instruments: Schedule of Fair Value Measurements, Nonrecurring (Tables) (AsOfDecember312012Member) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
AsOfDecember312012Member | ' | |||||||
Tables/Schedules | ' | |||||||
Schedule of Fair Value Measurements, Nonrecurring | ' | |||||||
Quoted Prices | ||||||||
in Active | Significant | Significant | ||||||
Markets for | Observable | Unobservable | ||||||
Identical Assets | Inputs | Inputs | ||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||
Assets accounted for at fair value on a | ||||||||
nonrecurring basis | ||||||||
Mortgage servicing rights | $ 5,291,724 | - | - | $ 5,291,724 | ||||
Mortgage loans on real estate | 89,000 | - | - | 89,000 | ||||
Real estate held for investment | 660,784 | - | - | 660,784 | ||||
Total assets accounted for at fair value on a | ||||||||
nonrecurring basis | $ 6,041,508 | $ - | $ - | $ 6,041,508 |
8_Fair_Value_of_Financial_Inst5
8): Fair Value of Financial Instruments: Schedule of Financial Instruments Carried at Other Than Fair Value (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Tables/Schedules | ' | |||||||||
Schedule of Financial Instruments Carried at Other Than Fair Value | ' | |||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | ||||||
Assets | ||||||||||
Mortgage loans: | ||||||||||
Residential | $ 60,014,733 | $ - | $ - | $ 63,575,379 | $ 63,575,379 | |||||
Residential construction | 20,313,991 | - | - | 20,313,991 | 20,313,991 | |||||
Commercial | 47,079,579 | - | - | 49,374,754 | 49,374,754 | |||||
Mortgage loans, net | $ 127,408,303 | $ - | $ - | $ 133,264,124 | $ 133,264,124 | |||||
Policy loans | 7,281,130 | - | - | 7,281,130 | 7,281,130 | |||||
Other loans | 25,915,255 | - | - | 25,915,255 | 25,915,255 | |||||
Short-term investments | 20,268,060 | - | - | 20,268,060 | 20,268,060 | |||||
Liabilities | ||||||||||
Bank and other loans payable | $ 17,087,272 | $ - | $ - | $ 17,087,272 | $ 17,087,272 | |||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2013: | ||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Estimated Fair Value | ||||||
Assets | ||||||||||
Mortgage loans: | ||||||||||
Residential | $ 48,503,639 | $ - | $ - | $ 51,537,154 | $ 51,537,154 | |||||
Residential construction | 12,812,359 | - | - | 12,812,359 | 12,812,359 | |||||
Commercial | 41,465,880 | - | - | 42,441,268 | 42,441,268 | |||||
Mortgage loans, net | $ 102,781,878 | $ - | $ - | $ 106,790,781 | $ 106,790,781 | |||||
Policy loans | 7,520,376 | - | - | 7,520,376 | 7,520,376 | |||||
Other loans | 12,203,630 | - | - | 12,203,630 | 12,203,630 | |||||
Short-term investments | 12,135,719 | - | - | 12,135,719 | 12,135,719 | |||||
Liabilities | ||||||||||
Bank and other loans payable | $ 18,231,128 | $ - | $ - | $ 18,231,128 | $ 18,231,128 | |||||
10_Derivative_Investments_Sche
10) Derivative Investments: Schedule of Derivative Assets at Fair Value (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Tables/Schedules | ' | |||||||||||||||
Schedule of Derivative Assets at Fair Value | ' | |||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||||||
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: | ||||||||||||||||
Interest rate lock and forward sales commitments | other assets | $3,112,327 | other assets | $1,511,111 | Other liabilities | $ 386,007 | Other liabilities | $ 23,203 | ||||||||
Call Options | -- | -- | -- | -- | Other liabilities | 126,814 | Other liabilities | 124,174 | ||||||||
Interest rate swaps | -- | -- | -- | -- | Bank loans payable | 46,010 | Bank loans payable | 58,310 | ||||||||
Total | $3,112,327 | $1,511,111 | $ 558,831 | $ 205,687 |
10_Derivative_Investments_Sche1
10) Derivative Investments: Schedule of Gains and Losses on Derivatives (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of Gains and Losses on Derivatives | ' | ||||||||
Net Amount Gain (Loss) Recognized in OCI | Net Amount Gain (Loss) Recognized in OCI | ||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||
Derivative - Cash Flow Hedging Relationships: | 2014 | 2013 | 2014 | 2013 | |||||
Interest Rate Lock Commitments | $ 789,149 | $ 1,234,935 | $ 1,238,412 | $ 519,211 | |||||
Interest Rate Swaps | 5,449 | 12,685 | 12,300 | 21,801 | |||||
Sub Total | 794,598 | 1,247,620 | 1,250,712 | 541,012 | |||||
Tax Effect | 309,894 | 485,937 | 487,778 | 357,976 | |||||
Total | $ 484,704 | $ 761,683 | $ 762,934 | $ 183,036 |
12_Mortgage_Servicing_Rights_S
12) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights (Tables) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Mortgage Servicing Rights | ' | ||
The following is a summary of the MSR activity for the periods presented. | |||
As of June 30 2014 | As of December 31 2013 | ||
Amortized cost: | |||
Balance before valuation allowance at beginning of year | $ 4,844,101 | $ 2,797,470 | |
MSRs proceeds from loan sales | 1,608,696 | 2,494,254 | |
Amortization | (321,189) | (447,623) | |
Application of valuation allowance to write down MSRs with other than temporary impairment | - | - | |
Balance before valuation allowance at year end | $ 6,131,608 | $ 4,844,101 | |
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 | $ 6,131,608 | $ 4,844,101 | |
Estimated fair value of MSRs at end of period | $ 6,860,160 | $ 5,491,270 | |
13_Mergers_Acquisitions_and_Di1
13) Mergers, Acquisitions and Dispositions Disclosures: Schedule of assets acquired and liabilities assumed (Tables) | 6 Months Ended | |
Jun. 30, 2014 | ||
Tables/Schedules | ' | |
Schedule of assets acquired and liabilities assumed | ' | |
The estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition were as follows: | ||
Other loans, net | $ 11,866,193 | |
Property and equipment | 760,120 | |
Goodwill | 2,373,722 | |
Other | 1,379,158 | |
Total assets acquired | 16,379,193 | |
Other liabilities and accrued expenses | (1,368,000) | |
Total liabilities assumed | (1,368,000) | |
Fair value of net assets acquired | $ 15,011,193 |
13_Mergers_Acquisitions_and_Di2
13) Mergers, Acquisitions and Dispositions Disclosures: Schedule of pro forma financial information (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Tables/Schedules | ' | ||||||||
Schedule of pro forma financial information | ' | ||||||||
For the Three Months Ended June 30 (unaudited) | For the Six Months Ended June 30 (unaudited) | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Total revenues | $ 60,275,049 | $ 62,538,480 | $ 106,796,985 | $ 118,182,856 | |||||
Net earnings | $ 2,661,985 | $ 2,925,290 | $ 3,004,668 | $ 5,004,912 | |||||
Net earnings per Class A equivalent common share | $ 0.22 | $ 0.25 | $ 0.25 | $ 0.43 | |||||
Net earnings per Class A equivalent common share | |||||||||
assuming dilution | $ 0.22 | $ 0.23 | $ 0.24 | $ 0.40 |
3_Investments_Heldtomaturity_S1
3) Investments: Held-to-maturity Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Amortized Cost | $138,917,469 | $143,466,494 |
Gross Unrealized Gains | 17,137,028 | 11,229,300 |
Gross Unrealized Losses | -276,217 | -1,421,574 |
Estimated Fair Value | 155,778,280 | 153,274,220 |
US Treasury and Government | ' | ' |
Amortized Cost | 1,877,830 | 2,284,261 |
Gross Unrealized Gains | 335,092 | 298,901 |
Estimated Fair Value | 2,212,922 | 2,583,162 |
US States and Political Subdivisions Debt Securities | ' | ' |
Amortized Cost | 1,734,871 | 1,790,661 |
Gross Unrealized Gains | 249,165 | 197,340 |
Gross Unrealized Losses | -5,504 | -9,404 |
Estimated Fair Value | 1,978,532 | 1,978,597 |
Corporate Debt Securities | ' | ' |
Amortized Cost | 130,790,757 | 134,257,468 |
Gross Unrealized Gains | 16,222,135 | 10,513,448 |
Gross Unrealized Losses | -259,907 | -1,394,919 |
Estimated Fair Value | 146,752,985 | 143,375,997 |
Collateralized Mortgage Backed Securities | ' | ' |
Amortized Cost | 3,901,988 | 4,522,081 |
Gross Unrealized Gains | 314,204 | 206,617 |
Gross Unrealized Losses | -10,806 | -11,351 |
Estimated Fair Value | 4,205,386 | 4,717,347 |
Redeemable Preferred Stock | ' | ' |
Amortized Cost | 612,023 | 612,023 |
Gross Unrealized Gains | 16,432 | 12,994 |
Gross Unrealized Losses | ' | -5,900 |
Estimated Fair Value | $628,455 | $619,117 |
3_Investments_Availableforsale1
3) Investments: Available-for-sale Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Available-for-sale Securities, Amortized Cost Basis | $7,533,929 | ' |
AvailableForSaleSecuritiesEstimatedFairValue | 7,442,760 | ' |
Mortgage loans on real estate and construction | 127,408,303 | 102,781,878 |
Mortgage loans on real estate and construction, allowance for losses | -1,694,932 | -1,652,090 |
Real estate held for investment, net of depreciation | 101,388,355 | 99,760,475 |
Loans held for sale policy loans | 7,281,130 | 7,520,376 |
Loans Held-for-sale, Other | 26,447,688 | 12,472,805 |
Loans held for sale allowance for doubtful accounts | -532,433 | -269,175 |
Loans Receivable Held-for-sale, Net | 33,196,385 | 19,724,006 |
Short-term investments at amortized cost | 20,268,060 | 12,135,719 |
Residential Mortgage | ' | ' |
Mortgage loans on real estate and construction | 61,422,422 | 49,868,486 |
Residential Construction | ' | ' |
Mortgage loans on real estate and construction | 20,414,105 | 12,912,473 |
Commercial Loan | ' | ' |
Mortgage loans on real estate and construction | 47,266,708 | 41,653,009 |
Industrial, miscellaneous and all other equity securities | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 7,533,929 | 4,783,936 |
Available-for-sale Securities, Gross Unrealized Gains | 429,683 | 240,206 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | -520,852 | -525,386 |
AvailableForSaleSecuritiesEstimatedFairValue | 7,442,760 | 4,498,756 |
Equity Securities | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 7,533,929 | 4,783,936 |
Available-for-sale Securities, Gross Unrealized Gains | 429,683 | 240,206 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | -520,852 | -525,386 |
AvailableForSaleSecuritiesEstimatedFairValue | 7,442,760 | 4,498,756 |
Common Stock | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 7,533,929 | ' |
AvailableForSaleSecuritiesEstimatedFairValue | $7,442,760 | ' |
3_Investments_Schedule_of_Unre1
3) Investments: Schedule of Unrealized Loss on Investments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Held-to-maturity Securities, Unrecognized Holding Loss | $276,217 | $1,421,574 |
Held-to-maturity Securities, Fair Value | 5,868,738 | 24,310,741 |
Available-for-sale Securities, Fair Value Disclosure | 2,241,652 | 1,765,957 |
US States and Political Subdivisions Debt Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 5,504 | 9,404 |
Corporate Debt Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 259,907 | 1,394,919 |
Collateralized Mortgage Backed Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 10,806 | 11,351 |
Redeemable Preferred Stock | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | ' | 5,900 |
U.S. Treasury Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | ' | 9,404 |
Industrial, miscellaneous and all other equity securities | ' | ' |
AvailableForSaleSecuritiesGrossUnrealizedLosses | 520,852 | 525,386 |
Equity Securities | ' | ' |
AvailableForSaleSecuritiesGrossUnrealizedLosses | 520,852 | 525,386 |
Less than 12 months | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 30,801 | 1,150,554 |
No. of Investment Positions | 4 | 75 |
Held-to-maturity Securities, Fair Value | 757,752 | 22,002,277 |
Available-for-sale Securities, Fair Value Disclosure | 1,418,657 | 993,612 |
Less than 12 months | US States and Political Subdivisions Debt Securities | ' | ' |
No. of Investment Positions | 0 | ' |
Less than 12 months | Corporate Debt Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 28,127 | 1,134,414 |
No. of Investment Positions | 3 | 72 |
Less than 12 months | Collateralized Mortgage Backed Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 2,674 | 3,109 |
No. of Investment Positions | 1 | 1 |
Less than 12 months | Redeemable Preferred Stock | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | ' | 5,900 |
No. of Investment Positions | 0 | 1 |
Less than 12 months | U.S. Treasury Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | ' | 7,131 |
No. of Investment Positions | ' | 1 |
Less than 12 months | Industrial, miscellaneous and all other equity securities | ' | ' |
No. of Investment Positions | 97 | 28 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | 85,985 | 119,450 |
Less than 12 months | Equity Securities | ' | ' |
No. of Investment Positions | 97 | 28 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | 85,985 | 119,450 |
More than 12 months | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 245,416 | 271,019 |
No. of Investment Positions | 24 | 12 |
Held-to-maturity Securities, Fair Value | 5,110,986 | 2,308,464 |
Available-for-sale Securities, Fair Value Disclosure | 822,995 | 772,345 |
More than 12 months | US States and Political Subdivisions Debt Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 5,504 | ' |
No. of Investment Positions | 1 | ' |
More than 12 months | Corporate Debt Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 231,780 | 260,504 |
No. of Investment Positions | 22 | 10 |
More than 12 months | Collateralized Mortgage Backed Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | 8,132 | 8,242 |
No. of Investment Positions | 1 | 1 |
More than 12 months | Redeemable Preferred Stock | ' | ' |
No. of Investment Positions | 0 | 0 |
More than 12 months | U.S. Treasury Securities | ' | ' |
Held-to-maturity Securities, Unrecognized Holding Loss | ' | 2,273 |
No. of Investment Positions | ' | 1 |
More than 12 months | Industrial, miscellaneous and all other equity securities | ' | ' |
No. of Investment Positions | 29 | 28 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | 434,867 | 405,936 |
More than 12 months | Equity Securities | ' | ' |
No. of Investment Positions | 29 | 28 |
AvailableForSaleSecuritiesGrossUnrealizedLosses | $434,867 | $405,936 |
3_Investments_Details
3) Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Details | ' | ' | ' | ' | ' |
Average market value over amortized cost | 95.50% | ' | 95.50% | ' | 94.50% |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease) | $30,000 | $30,000 | $60,000 | $60,000 | ' |
3_Investments_Equity_Securitie
3) Investments: Equity Securities - Additional (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Average Market Value of Security over initial investment | 81.10% | 77.10% |
3_Investments_Investments_Clas1
3) Investments: Investments Classified by Contractual Maturity Date (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Amortized Cost | $138,917,469 | $143,466,494 |
Estimated Fair Value | 155,778,280 | 153,274,220 |
Available-for-sale Securities, Amortized Cost Basis | 7,533,929 | ' |
AvailableForSaleSecuritiesEstimatedFairValue | 7,442,760 | ' |
Collateralized Mortgage Backed Securities | ' | ' |
Amortized Cost | 3,901,988 | 4,522,081 |
Estimated Fair Value | 4,205,386 | 4,717,347 |
Redeemable Preferred Stock | ' | ' |
Amortized Cost | 612,023 | 612,023 |
Estimated Fair Value | 628,455 | 619,117 |
Common Stock | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 7,533,929 | ' |
AvailableForSaleSecuritiesEstimatedFairValue | 7,442,760 | ' |
DueIn2014Member | ' | ' |
Amortized Cost | 1,998,597 | ' |
Estimated Fair Value | 2,014,415 | ' |
DueIn2015Through2018Member | ' | ' |
Amortized Cost | 28,025,560 | ' |
Estimated Fair Value | 31,140,613 | ' |
DueIn2019Through2023Member | ' | ' |
Amortized Cost | 37,841,385 | ' |
Estimated Fair Value | 42,592,185 | ' |
DueAfter2023Member | ' | ' |
Amortized Cost | 66,537,916 | ' |
Estimated Fair Value | $75,197,226 | ' |
3_Investments_Gain_Loss_on_Inv1
3) Investments: Gain (Loss) on Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fixed maturity securities held to maturity: | $309,852 | ($5,740) | $478,845 | $806,838 |
Categories of Investments, Marketable Securities, Held-to-maturity Securities | ' | ' | ' | ' |
Gross Realized Gains | 47,548 | 2,512 | 47,548 | 15,404 |
Gross Realized Losses | -2,284 | -9,693 | -2,284 | -15,168 |
Other than Temporary Impairments | -30,000 | -30,000 | -60,000 | -60,000 |
Categories of Investments, Marketable Securities, Available-for-sale Securities | ' | ' | ' | ' |
Gross Realized Gains | 72,397 | 105,426 | 125,650 | 239,382 |
Gross Realized Losses | ' | -1,942 | ' | -2,678 |
Other Assets | ' | ' | ' | ' |
Gross Realized Gains | 222,191 | 43,879 | 367,931 | 745,820 |
Other than Temporary Impairments | ' | ($115,922) | ' | ($115,922) |
3_Investments_Net_carrying_amo
3) Investments: Net carrying amount of held to maturity securities (Details) (Categories of Investments, Marketable Securities, Held-to-maturity Securities, USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Categories of Investments, Marketable Securities, Held-to-maturity Securities | ' | ' | ' | ' |
Net carrying amount for sales of securities | ' | $872,882 | ' | $1,455,835 |
Net realized gain related to sales of securities | $40,594 | $42,118 | $12,533 | ' |
3_Investments_Schedule_of_Majo1
3) Investments: Schedule of Major categories of net investment income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Gross investment income | $9,045,377 | $7,038,036 | $17,007,536 | $13,585,001 |
Investment Income, Investment Expense | -2,338,090 | -2,011,992 | -4,657,749 | -3,557,940 |
Net Investment Income | 6,707,287 | 5,026,044 | 12,349,787 | 10,027,061 |
Fixed Maturities | ' | ' | ' | ' |
Gross investment income | 2,067,324 | 2,056,804 | 4,176,445 | 4,009,843 |
Equity Securities | ' | ' | ' | ' |
Gross investment income | 50,752 | 38,729 | 89,999 | 104,489 |
Mortgage loans on real estate | ' | ' | ' | ' |
Gross investment income | 1,837,060 | 1,011,446 | 3,389,171 | 2,051,221 |
Real Estate | ' | ' | ' | ' |
Gross investment income | 2,126,566 | 1,363,662 | 4,291,565 | 2,441,324 |
Policy, Student and other loans | ' | ' | ' | ' |
Gross investment income | 181,687 | 196,096 | 379,255 | 399,231 |
Short-term investments, principally gains on sale of mortgage loans | ' | ' | ' | ' |
Gross investment income | $2,781,988 | $2,371,299 | $4,681,101 | $4,578,893 |
3_Investments_Net_Investment_I
3) Investments: Net Investment Income - Additional (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Net Investment Income | $6,707,287 | $5,026,044 | $12,349,787 | $10,027,061 | ' |
Securities on deposit for regulatory authorities | 9,208,890 | ' | 9,208,890 | ' | 9,215,222 |
Cemeteries and mortuaries | ' | ' | ' | ' | ' |
Net Investment Income | $77,254 | $74,539 | $171,999 | $166,009 | ' |
3_Investments_Mortgage_Loans_A
3) Investments: Mortgage Loans - Additional (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Mortgage loans on real estate balances, net of allowance for losses | $1,694,932 | $1,652,090 |
3_Investments_Schedule_of_Allo1
3) Investments: Schedule of Allowance for loan losses as a contra-asset account (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses, Beginning Balance | $1,652,090 | $4,239,861 |
Allowance for credit losses, Charge-offs | -38,444 | -2,808,423 |
Allowance for credit losses, Provision | 81,286 | 220,652 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 1,694,932 | 1,652,090 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 119,897 | 152,745 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,575,035 | 1,499,345 |
Mortgage loans | 129,103,235 | 104,433,968 |
Financing Receivable, Individually Evaluated for Impairment | 960,360 | 1,518,327 |
Financing Receivable, Collectively Evaluated for Impairment | 128,142,875 | 102,915,641 |
Commercial Loan | ' | ' |
Allowance for credit losses, Provision | ' | 187,129 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 187,129 | 187,129 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 187,129 | 187,129 |
Mortgage loans | 47,266,708 | 41,653,009 |
Financing Receivable, Collectively Evaluated for Impairment | 47,266,708 | 41,653,009 |
Residential Mortgage | ' | ' |
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 1,364,847 | 4,193,674 |
Allowance for credit losses, Charge-offs | -38,444 | -2,670,794 |
Allowance for credit losses, Provision | 81,286 | -158,033 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 1,407,689 | 1,364,847 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 119,897 | 152,745 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,287,792 | 1,212,102 |
Mortgage loans | 61,422,422 | 49,868,486 |
Financing Receivable, Individually Evaluated for Impairment | 960,360 | 1,518,327 |
Financing Receivable, Collectively Evaluated for Impairment | 60,462,062 | 48,350,159 |
Residential Construction | ' | ' |
Financing Receivable, Allowance for Credit Losses, Beginning Balance | ' | 46,187 |
Allowance for credit losses, Charge-offs | ' | -137,629 |
Allowance for credit losses, Provision | ' | 191,556 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 100,114 | 100,114 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 100,114 | 100,114 |
Mortgage loans | 20,414,105 | 12,912,473 |
Financing Receivable, Collectively Evaluated for Impairment | $20,414,105 | $12,912,473 |
3_Investments_Schedule_of_agin1
3) Investments: Schedule of aging of mortgage loans (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | |||
Mortgage Loans during period | ($1,694,932) | ($1,652,090) | ||
Mortgage Loans, Allowance for Loan Losses | 127,408,303 | 102,781,878 | ||
Commercial Loan | ' | ' | ||
Mortgage Loans during period | -187,129 | -187,129 | ||
Mortgage Loans, Allowance for Loan Losses | 47,079,579 | 41,465,880 | ||
Residential Mortgage | ' | ' | ||
Mortgage Loans during period | -1,407,689 | -1,364,847 | ||
Mortgage Loans, Allowance for Loan Losses | 60,014,733 | 48,503,639 | ||
Residential Construction | ' | ' | ||
Mortgage Loans during period | -100,114 | -100,114 | ||
Mortgage Loans, Allowance for Loan Losses | 20,313,991 | 12,812,359 | ||
Past due 30 to 59 days | ' | ' | ||
Mortgage Loans during period | 1,989,725 | 1,604,847 | ||
Past due 30 to 59 days | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 1,989,725 | 1,604,847 | ||
Past due 60 to 89 days | ' | ' | ||
Mortgage Loans during period | 5,236,013 | 5,932,396 | ||
Past due 60 to 89 days | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 5,171,118 | 5,867,501 | ||
Past due 60 to 89 days | Residential Construction | ' | ' | ||
Mortgage Loans during period | 64,895 | 64,895 | ||
Past due 90 or more days | ' | ' | ||
Mortgage Loans during period | 960,360 | [1] | 6,492,072 | [1] |
Past due 90 or more days | Commercial Loan | ' | ' | ||
Mortgage Loans during period | ' | 4,973,745 | [1] | |
Past due 90 or more days | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 960,360 | [1] | 1,518,327 | [1] |
In Foreclosure | ' | ' | ||
Mortgage Loans during period | 9,238,632 | [1] | 15,676,268 | [1] |
In Foreclosure | Commercial Loan | ' | ' | ||
Mortgage Loans during period | ' | 4,973,745 | [1] | |
In Foreclosure | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 9,173,737 | [1] | 10,637,628 | [1] |
In Foreclosure | Residential Construction | ' | ' | ||
Mortgage Loans during period | 64,895 | [1] | 64,895 | [1] |
Total Past Due | ' | ' | ||
Mortgage Loans during period | 119,864,603 | 88,757,700 | ||
Total Past Due | Commercial Loan | ' | ' | ||
Mortgage Loans during period | 47,266,708 | 36,679,264 | ||
Total Past Due | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 52,248,685 | 39,230,858 | ||
Total Past Due | Residential Construction | ' | ' | ||
Mortgage Loans during period | 20,349,210 | 12,847,578 | ||
Current | ' | ' | ||
Mortgage Loans during period | 129,103,235 | 104,433,968 | ||
Current | Commercial Loan | ' | ' | ||
Mortgage Loans during period | 47,266,708 | 41,653,009 | ||
Current | Residential Mortgage | ' | ' | ||
Mortgage Loans during period | 61,422,422 | 49,868,486 | ||
Current | Residential Construction | ' | ' | ||
Mortgage Loans during period | $20,414,105 | $12,912,473 | ||
[1] | There was not any interest income recognized on loans past due greater than 90 days or in foreclosure. |
3_Investments_Schedule_of_Impa1
3) Investments: Schedule of Impaired Mortgage Loans (Details) (Residential Mortgage, USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Residential Mortgage | ' | ' |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $960,360 | $1,518,327 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 960,360 | 1,518,327 |
Impaired Financing Receivable, Related Allowance | 119,897 | 152,745 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 960,360 | 1,518,327 |
Impaired Financing Receivable, Average Recorded Investment | 960,360 | 1,518,327 |
Impaired Financing Receivable, Unpaid Principal Balance | $960,360 | $1,518,327 |
3_Investments_ScheduleOfCredit1
3) Investments: ScheduleOfCreditRiskOfMortgageLoansBasedOnPerformanceStatus (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Mortgage loans | $129,103,235 | $104,433,968 |
Performing Financing Receivable | ' | ' |
Mortgage loans | 122,906,862 | 92,009,500 |
Nonperforming Financing Receivable | ' | ' |
Mortgage loans | 6,196,373 | 12,424,468 |
Commercial Loan | ' | ' |
Mortgage loans | 47,266,708 | 41,653,009 |
Commercial Loan | Performing Financing Receivable | ' | ' |
Mortgage loans | 47,266,708 | 36,679,264 |
Commercial Loan | Nonperforming Financing Receivable | ' | ' |
Mortgage loans | ' | 4,973,745 |
Residential Mortgage | ' | ' |
Mortgage loans | 61,422,422 | 49,868,486 |
Residential Mortgage | Performing Financing Receivable | ' | ' |
Mortgage loans | 55,290,944 | 42,482,658 |
Residential Mortgage | Nonperforming Financing Receivable | ' | ' |
Mortgage loans | 6,131,478 | 7,385,828 |
Residential Construction | ' | ' |
Mortgage loans | 20,414,105 | 12,912,473 |
Residential Construction | Performing Financing Receivable | ' | ' |
Mortgage loans | 20,349,210 | 12,847,578 |
Residential Construction | Nonperforming Financing Receivable | ' | ' |
Mortgage loans | $64,895 | $64,895 |
3_Investments_Summary_of_Inter
3) Investments: Summary of Interest not accrued on non-performing mortgage loans (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Interest not acrued on non-performing loans | $468,000 | $678,000 |
3_Investments_Schedule_of_Mort1
3) Investments: Schedule of Mortgate loans on a nonaccrual status (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $6,196,373 | $12,424,468 |
Commercial Loan | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | ' | 4,973,745 |
Residential Mortgage | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 6,131,478 | 7,385,828 |
Residential Construction | ' | ' |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $64,895 | $64,895 |
3_Investments_Schedule_of_loan1
3) Investments: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' | ' |
Loan loss reserve, balance at start of period | $6,208,960 | $5,506,532 | $6,035,295 |
Loan loss reserve, Provisions for losses | 943,425 | 1,846,285 | ' |
Loan loss reserve, Charge-offs | -240,997 | -2,375,048 | ' |
Loan loss reserve, balance at end of period | $6,208,960 | $5,506,532 | $6,035,295 |
4_Stockbased_Compensation_Deta
4) Stock-based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $64,201 | $9,620 | $128,526 | $62,589 |
Unrecognized compensation expense related to the options issued | 111,496 | ' | 111,496 | ' |
Total intrinsic value | ' | ' | $115,977 | $1,241,181 |
4_Stockbased_Compensation_Sche1
4) Stock-based Compensation: Schedule of stock inventive plan changes (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Class A Common Stock | ' | ' |
Shares, Outstanding | 368,340 | 405,133 |
Shares outstanding | $2.50 | $2.41 |
Shares Exercised | -34,955 | ' |
Per Share Shares exercised | $1.44 | ' |
Shares Cancelled | -1,838 | ' |
Per Share Shares cancelled | $2.92 | ' |
Options Exercisable | 325,243 | ' |
Options exercisable | $2.23 | ' |
Available options for future grant | $314,480 | ' |
Weighted average contractual term of options outstanding | '6.77 years | ' |
Weighted average contractual term of options exercisable | '6.42 years | ' |
Aggregated intrinsic value of options outstanding | 690,130 | ' |
Aggregated intrinsic value of options exercisable | 689,924 | ' |
Class C Common Stock | ' | ' |
Shares, Outstanding | 508,656 | 508,656 |
Shares outstanding | $2 | $2 |
Options Exercisable | 482,406 | ' |
Options exercisable | $1.84 | ' |
Available options for future grant | 105,000 | ' |
Weighted average contractual term of options outstanding | '2.11 years | ' |
Weighted average contractual term of options exercisable | '1.99 years | ' |
Aggregated intrinsic value of options outstanding | 1,194,177 | ' |
Aggregated intrinsic value of options exercisable | $1,194,177 | ' |
6_Earnings_Per_Share_Schedule_1
6) Earnings Per Share: Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' | ' | ' |
Net earnings | $2,624,063 | $2,799,245 | $2,762,911 | $4,832,511 |
Weighted-average Class A equivalent common share outstanding (1) | 11,835,185 | 11,724,522 | 11,844,936 | 11,669,542 |
GrantOfEmployeeStockOptions | $426,112 | $846,990 | $433,566 | $888,095 |
Diluted weighted-average shares outstanding | 12,261,297 | 12,571,512 | 12,278,502 | 12,557,637 |
Net earnings per Class A Equivalent common share (1) | $0.22 | $0.24 | $0.23 | $0.41 |
Net earnings per Class A Equivalent common share-assuming dilution (1) | $0.21 | $0.22 | $0.23 | $0.38 |
6_Earnings_Per_Share_Details
6) Earnings Per Share (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $142,972 | $5,250 |
7_Business_Segments_Schedule_o1
7) Business Segments: Schedule of Revenues and Expenses by Reportable Segment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Revenue from customers | $59,411,730 | $61,332,289 | $104,465,006 | $116,184,523 | ' |
SegmentReportingInformationIncomeLossBeforeIncomeTaxes | 4,187,097 | 4,469,520 | 4,353,084 | 7,697,143 | ' |
Identifiable Assets | 642,957,484 | 617,035,448 | 642,957,484 | 617,035,448 | ' |
Goodwill | 3,088,182 | 677,039 | 3,088,182 | 677,039 | 677,039 |
Life Insurance Segment | ' | ' | ' | ' | ' |
Revenue from customers | 19,810,498 | 16,797,489 | 38,283,314 | 34,041,381 | ' |
SegmentReportingInformationIntersegmentRevenue | 2,356,195 | 2,504,960 | 4,417,915 | 5,092,793 | ' |
SegmentReportingInformationIncomeLossBeforeIncomeTaxes | 1,515,426 | 440,822 | 2,846,895 | 1,255,153 | ' |
Identifiable Assets | 626,378,955 | 571,473,136 | 626,378,955 | 571,473,136 | ' |
Goodwill | 2,802,991 | 391,848 | 2,802,991 | 391,848 | ' |
Cemetery and Mortuary | ' | ' | ' | ' | ' |
Revenue from customers | 3,534,881 | 3,380,560 | 6,575,449 | 6,360,591 | ' |
SegmentReportingInformationIntersegmentRevenue | 334,314 | 357,016 | 670,612 | 715,506 | ' |
SegmentReportingInformationIncomeLossBeforeIncomeTaxes | 168,911 | 107,601 | 351,689 | 184,366 | ' |
Identifiable Assets | 108,686,715 | 112,584,116 | 108,686,715 | 112,584,116 | ' |
Goodwill | 285,191 | 285,191 | 285,191 | 285,191 | ' |
Mortgage | ' | ' | ' | ' | ' |
Revenue from customers | 36,066,351 | 41,154,240 | 59,606,243 | 75,782,551 | ' |
SegmentReportingInformationIntersegmentRevenue | 231,249 | 67,603 | 395,395 | 124,765 | ' |
SegmentReportingInformationIncomeLossBeforeIncomeTaxes | 2,502,760 | 3,921,097 | 1,154,500 | 6,257,624 | ' |
Identifiable Assets | 56,057,674 | 66,990,347 | 56,057,674 | 66,990,347 | ' |
Significant Reconciling Items | ' | ' | ' | ' | ' |
SegmentReportingInformationIntersegmentRevenue | -2,921,758 | -2,929,579 | -5,483,922 | -5,933,064 | ' |
Identifiable Assets | ($148,165,860) | ($134,012,151) | ($148,165,860) | ($134,012,151) | ' |
8_Fair_Value_of_Financial_Inst6
8): Fair Value of Financial Instruments: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Available-for-sale Securities | $7,442,760 | ' |
Restricted assets of cemeteries and mortuaries | 706,438 | 667,149 |
Cemetery perpetual care trust investments | 710,306 | 695,616 |
Derivatives - interest rate lock commitments | 3,112,327 | 1,511,111 |
Assets, Fair Value Disclosure | 11,971,831 | 7,372,632 |
Policyholder account balances | -47,310,100 | -48,000,668 |
Future policy benefits - annuities | -65,006,572 | -65,052,928 |
Derivatives - bank loan interest rate swaps | -46,010 | -58,310 |
Derivatives - bank loan interest rate swaps, Call Options | -126,814 | -124,174 |
Derivatives - bank loan interest rate swaps, Interest rate lock commitments | -386,007 | -23,203 |
Liabilities accounted for at fair value | -112,875,503 | -113,259,283 |
Non-redeemable preferred stock | ' | 4,498,756 |
Trading Securities, Equity | ' | 4,498,756 |
Fair Value, Inputs, Level 1 | ' | ' |
Available-for-sale Securities | 7,442,760 | ' |
Restricted assets of cemeteries and mortuaries | 706,438 | 667,149 |
Cemetery perpetual care trust investments | 710,306 | 695,616 |
Assets, Fair Value Disclosure | 8,859,504 | 5,861,521 |
Derivatives - bank loan interest rate swaps, Call Options | -126,814 | -124,174 |
Liabilities accounted for at fair value | -126,814 | -124,174 |
Non-redeemable preferred stock | ' | 4,498,756 |
Trading Securities, Equity | ' | 4,498,756 |
Fair Value, Inputs, Level 3 | ' | ' |
Derivatives - interest rate lock commitments | 3,112,327 | 1,511,111 |
Assets, Fair Value Disclosure | 3,112,327 | 1,511,111 |
Policyholder account balances | -47,310,100 | -48,000,668 |
Future policy benefits - annuities | -65,006,572 | -65,052,928 |
Derivatives - bank loan interest rate swaps | -46,010 | -58,310 |
Derivatives - bank loan interest rate swaps, Interest rate lock commitments | -386,007 | -23,203 |
Liabilities accounted for at fair value | ($112,748,689) | ($113,135,109) |
8_Fair_Value_of_Financial_Inst7
8): Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Policyholder Account Balances | ' | ' |
Fair Value Balance | ($48,000,668) | ($49,746,337) |
Fair Value, Losses (Gains) included in earnings | 690,568 | 1,745,669 |
Fair Value Balance | -47,310,100 | -48,000,668 |
Future Policy Benefits - Annuities | ' | ' |
Fair Value Balance | -65,052,928 | -65,171,687 |
Fair Value, Losses (Gains) included in earnings | 46,356 | 118,759 |
Fair Value Balance | -65,006,572 | -65,052,928 |
Interest Rate Lock Commitments | ' | ' |
Fair Value Balance | 1,487,908 | 2,961,465 |
Fair Value, Losses (Gains) included in other comprehensive income | 1,238,412 | -1,473,557 |
Fair Value Balance | 2,726,320 | 1,487,908 |
Bank Loan Interest Rate Swaps | ' | ' |
Fair Value Balance | -58,310 | -93,572 |
Fair Value, Losses (Gains) included in other comprehensive income | 12,300 | 35,262 |
Fair Value Balance | ($46,010) | ($58,310) |
8_Fair_Value_of_Financial_Inst8
8): Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a nonrecurring basis (Details) (USD $) | Jun. 30, 2014 |
Assets accounted for at fair value on a nonrecurring basis - Mortgage servicing rights | $1,608,696 |
Assets accounted for at fair value on a nonrecurring basis - Real estate held for investment | 53,500 |
Assets accounted for at fair value on a nonrecurring basis | 1,662,196 |
Fair Value, Inputs, Level 3 | ' |
Assets accounted for at fair value on a nonrecurring basis - Mortgage servicing rights | 1,608,696 |
Assets accounted for at fair value on a nonrecurring basis - Real estate held for investment | 53,500 |
Assets accounted for at fair value on a nonrecurring basis | $1,662,196 |
8_Fair_Value_of_Financial_Inst9
8): Fair Value of Financial Instruments: Schedule of Fair Value Measurements, Nonrecurring (Details) (USD $) | Dec. 31, 2013 |
Mortgage servicing rights | $5,291,724 |
Mortgage loans on real estate | 89,000 |
Real estate held for investment | 660,784 |
Assets, Fair Value Disclosure, Nonrecurring | 6,041,508 |
Fair Value, Inputs, Level 3 | ' |
Mortgage servicing rights | 5,291,724 |
Mortgage loans on real estate | 89,000 |
Real estate held for investment | 660,784 |
Assets, Fair Value Disclosure, Nonrecurring | $6,041,508 |
Recovered_Sheet1
8): Fair Value of Financial Instruments: Schedule of Financial Instruments Carried at Other Than Fair Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Carrying Value | $17,087,272 | $18,231,128 |
Estimated Fair Value | 17,087,272 | 18,231,128 |
Residential Mortgage | ' | ' |
Carrying Value | 60,014,733 | 48,503,639 |
Estimated Fair Value | 63,575,379 | 51,537,154 |
Residential Construction | ' | ' |
Carrying Value | 20,313,991 | 12,812,359 |
Estimated Fair Value | 20,313,991 | 12,812,359 |
Commercial Loan | ' | ' |
Carrying Value | 47,079,579 | 41,465,880 |
Estimated Fair Value | 49,374,754 | 42,441,268 |
MortgageLoansNet1Member | ' | ' |
Carrying Value | 127,408,303 | 102,781,878 |
Estimated Fair Value | 133,264,124 | 106,790,781 |
PolicyLoanMember | ' | ' |
Carrying Value | 7,281,130 | 7,520,376 |
Estimated Fair Value | 7,281,130 | 7,520,376 |
OtherLoansMember | ' | ' |
Carrying Value | 25,915,255 | 12,203,630 |
Estimated Fair Value | 25,915,255 | 12,203,630 |
ShortTermInvestments1Member | ' | ' |
Carrying Value | 20,268,060 | 12,135,719 |
Estimated Fair Value | 20,268,060 | 12,135,719 |
Fair Value, Inputs, Level 3 | ' | ' |
Estimated Fair Value | 17,087,272 | 18,231,128 |
Fair Value, Inputs, Level 3 | Residential Mortgage | ' | ' |
Estimated Fair Value | 63,575,379 | 51,537,154 |
Fair Value, Inputs, Level 3 | Residential Construction | ' | ' |
Estimated Fair Value | 20,313,991 | 12,812,359 |
Fair Value, Inputs, Level 3 | Commercial Loan | ' | ' |
Estimated Fair Value | 49,374,754 | 42,441,268 |
Fair Value, Inputs, Level 3 | MortgageLoansNet1Member | ' | ' |
Estimated Fair Value | 133,264,124 | 106,790,781 |
Fair Value, Inputs, Level 3 | PolicyLoanMember | ' | ' |
Estimated Fair Value | 7,281,130 | 7,520,376 |
Fair Value, Inputs, Level 3 | OtherLoansMember | ' | ' |
Estimated Fair Value | 25,915,255 | 12,203,630 |
Fair Value, Inputs, Level 3 | ShortTermInvestments1Member | ' | ' |
Estimated Fair Value | $20,268,060 | $12,135,719 |
10_Derivative_Investments_Deta
10) Derivative Investments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Fair value of outstanding call options | $126,814 | $124,174 |
10_Derivative_Investments_Sche2
10) Derivative Investments: Schedule of Derivative Assets at Fair Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Fair Value of Asset Derivatives, Interest rate lock and forward sales commitments | $3,112,327 | $1,511,111 |
Fair Value of Liability Derivatives, Interest rate lock and forward sales commitments | 386,007 | 23,203 |
Fair Value of Liability Derivatives, Call Options | 126,814 | 124,174 |
Fair Value of Liability Derivatives, Interest Rate Swaps | 46,010 | 58,310 |
Fair Value of Asset Derivatives, Total | 3,112,327 | 1,511,111 |
Fair Value of Liability Derivatives, Total | $558,831 | $205,687 |
10_Derivative_Investments_Sche3
10) Derivative Investments: Schedule of Gains and Losses on Derivatives (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' | ' | ' |
Gain (Loss) on Derivatives, Interest Rate Lock Commitments | $789,149 | $1,234,935 | $1,238,412 | $519,211 |
Gain (Loss) on Derivatives, Interest Rate Swaps | 5,449 | 12,685 | 12,300 | 21,801 |
GainLossOnDerivativesSubTotal | 794,598 | 1,247,620 | 1,250,712 | 541,012 |
TaxEffect-GainLossOnDerivatives | 309,894 | 485,937 | 487,778 | 357,976 |
Gain (Loss) on Derivatives, Total | $484,704 | $761,683 | $762,934 | $183,036 |
11_Reinsurance_Commitments_and1
11) Reinsurance, Commitments and Contingencies: Mortgage Loan Loss Settlements (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' | ' | ' |
Amounts accrued for loan losses | $571,000 | $644,000 | $943,000 | $1,181,000 |
11_Reinsurance_Commitments_and2
11) Reinsurance, Commitments and Contingencies (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Wells Fargo | |||
Funds reserved and accrued to settle investor related claims | $6,209,000 | $5,507,000 | ' |
Initial Settlement Amount Paid | ' | ' | $4,300,000 |
11_Reinsurance_Commitments_and3
11) Reinsurance, Commitments and Contingencies: Other Contingencies and Commitments (Details) (USD $) | Jun. 30, 2014 |
Details | ' |
Commitments to fund new residential construction loans | $36,092,000 |
Commitments to fund new residential construction loans funded | $20,414,000 |
12_Mortgage_Servicing_Rights_S1
12) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Balance before valuation allowance at beginning of year | $4,844,101 | $2,797,470 |
MSRs proceeds from loan sales | 1,608,696 | 2,494,254 |
Amortization | -321,189 | -447,623 |
Balance before valuation allowance at year end | 6,131,608 | 4,844,101 |
Mortgage servicing rights, net | 6,131,608 | 4,844,101 |
Estimated fair value of MSRs at end of period | $6,860,160 | $5,491,270 |
13_Mergers_Acquisitions_and_Di3
13) Mergers, Acquisitions and Dispositions Disclosures: Schedule of assets acquired and liabilities assumed (Details) (USD $) | Jun. 04, 2014 |
Details | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | $11,866,193 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 760,120 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,373,722 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed - Other Assets | 1,379,158 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed - Total Assets | 16,379,193 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | -1,368,000 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed - Total Liabilities | -1,368,000 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $15,011,193 |
13_Mergers_Acquisitions_and_Di4
13) Mergers, Acquisitions and Dispositions Disclosures: Schedule of pro forma financial information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | ' | ' | ' | ' |
Business Acquisition, Pro Forma Revenue | $60,275,049 | $62,538,480 | $106,796,985 | $118,182,856 |
Business Acquisition, Pro Forma Net Income (Loss) | $2,661,985 | $2,925,290 | $3,004,668 | $5,004,912 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $0.22 | $0.25 | $0.25 | $0.43 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $0.22 | $0.23 | $0.24 | $0.40 |