Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-09341 | ||
Entity Registrant Name | SECURITY NATIONAL FINANCIAL CORPORATION | ||
Entity Central Index Key | 0000318673 | ||
Entity Tax Identification Number | 87-0345941 | ||
Entity Incorporation, State or Country Code | UT | ||
Entity Address, Address Line One | 433 West Ascension Way | ||
Entity Address, City or Town | Salt Lake City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84123 | ||
City Area Code | (801) | ||
Local Phone Number | 264-1060 | ||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | SNFCA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 42,000,000 | ||
Documents Incorporated by Reference | None. | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Salt Lake City, UT | ||
Common Class A [Member] | |||
Entity Common Stock, Shares Outstanding | 18,807,013 | ||
Common Class C [Member] | |||
Entity Common Stock, Shares Outstanding | 2,888,923 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | $ 345,858,492 | $ 259,287,603 |
Equity securities at estimated fair value (cost of $9,942,265 and $8,275,772 for 2022 and 2021) | 11,682,526 | 11,596,414 |
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 308,123,927 | 277,306,046 |
Real estate held for investment (net of accumulated depreciation of $23,793,204 and $17,692,038 for 2022 and 2021) | 191,328,616 | 197,365,797 |
Real estate held for sale | 11,161,582 | 3,731,300 |
Other investments and policy loans (net of allowances for doubtful accounts of $1,609,951 and $1,686,218 for 2022 and 2021) | 70,508,156 | 67,955,155 |
Accrued investment income | 10,299,826 | 6,313,012 |
Total investments | 948,963,125 | 823,555,327 |
Cash and cash equivalents | 120,919,805 | 131,354,470 |
Loans held for sale at estimated fair value | 141,179,620 | 302,776,827 |
Receivables (net of allowances for doubtful accounts of $2,229,791 and $1,800,725 for 2022 and 2021) | 28,573,092 | 18,316,116 |
Restricted assets (including $6,565,552 and $5,205,510 for 2022 and 2021 at estimated fair value) | 18,935,055 | 16,938,122 |
Cemetery perpetual care trust investments (including $3,859,893 and $4,087,245 for 2022 and 2021 at estimated fair value) | 7,276,210 | 7,835,721 |
Receivable from reinsurers | 15,033,938 | 14,850,608 |
Cemetery land and improvements | 9,101,474 | 8,977,877 |
Deferred policy and pre-need contract acquisition costs | 108,655,128 | 105,049,983 |
Mortgage servicing rights, net | 3,039,765 | 53,060,455 |
Property and equipment, net | 20,579,649 | 21,517,598 |
Value of business acquired | 9,803,736 | 8,421,432 |
Goodwill | 5,253,783 | 5,253,783 |
Other | 23,798,512 | 29,684,987 |
Total Assets | 1,461,112,892 | 1,547,593,306 |
Liabilities | ||
Future policy benefits and unpaid claims | 889,327,303 | 863,274,693 |
Unearned premium reserve | 2,773,616 | 3,060,738 |
Bank and other loans payable | 161,712,804 | 251,286,927 |
Deferred pre-need cemetery and mortuary contract revenues | 16,226,836 | 14,508,022 |
Cemetery perpetual care obligation | 5,099,542 | 4,915,285 |
Accounts payable | 5,361,449 | 10,166,573 |
Other liabilities and accrued expenses | 57,113,888 | 69,578,138 |
Income taxes | 30,710,527 | 31,036,096 |
Total liabilities | 1,168,325,965 | 1,247,826,472 |
Stockholders’ Equity | ||
Preferred stock - non-voting-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding | ||
Additional paid-in capital | 64,767,769 | 57,985,947 |
Accumulated other comprehensive income (loss), net of taxes | (13,070,277) | 18,070,448 |
Retained earnings | 202,160,306 | 184,537,489 |
Treasury stock, at cost - 525,870 Class A shares and 109,193 Class C shares in 2022; 34,016 Class A shares and 109,193 Class C shares in 2021 | (4,366,651) | (1,845,624) |
Total stockholders’ equity | 292,786,927 | 299,766,834 |
Total Liabilities and Stockholders’ Equity | 1,461,112,892 | 1,547,593,306 |
Common Class A [Member] | ||
Stockholders’ Equity | ||
Common stock, value | 37,516,062 | 35,285,444 |
Common Class B [Member] | ||
Stockholders’ Equity | ||
Common stock, value | ||
Common Class C [Member] | ||
Stockholders’ Equity | ||
Common stock, value | $ 5,779,718 | $ 5,733,130 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized cost | $ 362,750,511 | $ 236,303,310 |
Equity securities cost | 9,942,265 | 8,275,772 |
Allowance for loan and lease losses, real estate | 1,970,311 | 1,699,902 |
Real estate investment property, accumulated depreciation | 23,793,204 | 17,692,038 |
Allowance for doubtful accounts, premiums and other receivables | 1,609,951 | 1,686,218 |
Accounts receivable, allowance for credit loss | 2,229,791 | 1,800,725 |
Aggregate fair value, restricted assets | 6,565,552 | 5,205,510 |
Aggregate fair value, cemetery perpetual care trust investments | $ 3,859,893 | $ 4,087,245 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 18,758,031 | 17,642,722 |
Common stock, shares outstanding | 18,758,031 | 17,642,722 |
Treasury stock, shares | 525,870 | 34,016 |
Common Class B [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Common Class C [Member] | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, shares issued | 2,889,859 | 2,866,565 |
Treasury stock, shares | 109,193 | 109,193 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues: | |||
Mortgage fee income | $ 173,499,681 | $ 263,418,230 | |
Insurance premiums and other considerations | 105,001,640 | 100,254,573 | |
Net investment income | 66,197,592 | 58,264,683 | |
Net mortuary and cemetery sales | 26,993,855 | 23,997,313 | |
Gains (losses) on investments and other assets | (857,460) | 6,265,134 | |
Other than temporary impairments on investments | (39,502) | ||
Other | 18,817,020 | 18,535,111 | |
Total revenues | 389,652,328 | 470,695,542 | |
Benefits and expenses: | |||
Death benefits | 59,377,962 | 63,247,616 | |
Surrenders and other policy benefits | 4,688,470 | 3,970,839 | |
Increase in future policy benefits | 28,858,969 | 26,263,312 | |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 17,950,202 | 16,142,970 | |
Selling, general and administrative expenses: | |||
Commissions | 63,321,092 | 118,286,469 | |
Personnel | 100,111,523 | 100,740,161 | |
Advertising | 5,697,998 | 6,626,418 | |
Rent and rent related | 6,883,013 | 7,242,287 | |
Depreciation on property and equipment | 2,496,906 | 1,935,613 | |
Costs related to funding mortgage loans | 7,540,041 | 10,541,570 | |
Other | 45,797,753 | 53,065,982 | |
Interest expense | 7,830,443 | 7,127,516 | |
Cost of goods and services sold – cemeteries and mortuaries | 4,721,094 | 3,704,014 | |
Total benefits and expenses | 355,275,466 | 418,894,767 | |
Earnings before income taxes | 34,376,862 | 51,800,775 | |
Income tax expense | (8,686,560) | (12,281,785) | |
Net earnings | $ 25,690,302 | $ 39,518,990 | |
Net earnings per Class A equivalent common share | [1] | $ 1.22 | $ 1.87 |
Net earnings per Class A equivalent common share - assuming dilution | [1] | $ 1.17 | $ 1.80 |
Weighted average Class A equivalent common shares outstanding | [1] | 21,137,941 | 21,146,713 |
Weighted average Class A equivalent common shares outstanding-assuming dilution | [1] | 21,946,244 | 21,959,629 |
[1]Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net earnings | $ 25,690,302 | $ 39,518,990 |
Other comprehensive income: | ||
Unrealized losses on fixed maturity securities available for sale | (39,331,688) | (6,517,731) |
Unrealized losses on restricted assets | (71,035) | (23,250) |
Unrealized losses on cemetery perpetual care trust investments | (20,446) | (11,114) |
Foreign currency translation adjustments | 2,835 | |
Other comprehensive loss, before income tax | (39,423,169) | (6,549,260) |
Income tax benefit | 8,282,444 | 1,376,575 |
Other comprehensive loss, net of income tax | (31,140,725) | (5,172,685) |
Comprehensive income (loss) | $ (5,450,423) | $ 34,346,305 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] Common Class A [Member] | Common Stock [Member] Common Class C [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 33,191,566 | $ 5,359,206 | $ 50,287,253 | $ 23,243,133 | $ 153,739,167 | $ (1,833,272) | $ 263,987,053 |
Net earnings | 39,518,990 | 39,518,990 | |||||
Other comprehensive loss | (5,172,685) | (5,172,685) | |||||
Stock based compensation expense | 118,384 | 118,384 | |||||
Exercise of stock options | 320,564 | 209,312 | 547,549 | 1,077,425 | |||
Sale of treasury stock | 250,019 | 5,757,383 | 6,007,402 | ||||
Purchase of treasury stock | (5,769,735) | (5,769,735) | |||||
Stock dividends | 1,674,820 | 263,106 | 6,782,742 | (8,720,668) | |||
Conversion Class C to Class A | 98,494 | (98,494) | |||||
Ending balance, value at Dec. 31, 2021 | 35,285,444 | 5,733,130 | 57,985,947 | 18,070,448 | 184,537,489 | (1,845,624) | 299,766,834 |
Net earnings | 25,690,302 | 25,690,302 | |||||
Other comprehensive loss | (31,140,725) | (31,140,725) | |||||
Stock based compensation expense | 929,692 | 929,692 | |||||
Exercise of stock options | 219,174 | (75,742) | 143,432 | ||||
Sale of treasury stock | (187,757) | 5,249,054 | 5,061,297 | ||||
Purchase of treasury stock | 106,176 | (7,770,081) | (7,663,905) | ||||
Stock dividends | 1,779,108 | 278,924 | 6,009,453 | (8,067,485) | |||
Conversion Class C to Class A | 232,336 | (232,336) | |||||
Ending balance, value at Dec. 31, 2022 | $ 37,516,062 | $ 5,779,718 | $ 64,767,769 | $ (13,070,277) | $ 202,160,306 | $ (4,366,651) | $ 292,786,927 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flows from operating activities: | |||
Net earnings | $ 25,690,302 | $ 39,518,990 | |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Losses (gains) on investments and other assets | 857,460 | (6,265,134) | |
Other than temporary impairments on investments | 39,502 | ||
Depreciation | 8,598,072 | 5,540,672 | |
Provision for loan losses and doubtful accounts | 1,331,887 | 965,736 | |
Net amortization of deferred fees and costs, premiums and discounts | (1,018,200) | (1,154,604) | |
Provision for deferred income taxes | (9,954,005) | 11,308,436 | |
Policy and pre-need acquisition costs deferred | (20,233,669) | (19,985,257) | |
Policy and pre-need acquisition costs amortized | 16,685,871 | 15,027,841 | |
Value of business acquired amortized | 1,264,331 | 1,115,129 | |
Mortgage servicing rights, additions | (10,243,922) | (32,701,819) | |
Amortization of mortgage servicing rights | [1] | 9,078,706 | 14,851,880 |
Net gains on the sale of mortgage servicing rights | (34,051,938) | ||
Stock based compensation expense | 929,692 | 118,384 | |
Benefit plans funded with treasury stock | 5,061,297 | 6,007,402 | |
Net change in fair value of loans held for sale | 8,834,797 | 8,783,376 | |
Originations of loans held for sale | (3,373,554,484) | (5,611,189,587) | |
Proceeds from sales of loans held for sale | 3,549,405,402 | 5,900,076,766 | |
Net gains on sales of loans held for sale | (74,779,721) | (177,876,915) | |
Change in assets and liabilities: | |||
Land and improvements held for sale | (123,597) | 441,839 | |
Future policy benefits and unpaid claims | 27,487,657 | 22,104,116 | |
Other operating assets and liabilities | (815,484) | (32,088,511) | |
Net cash provided by operating activities | 130,450,454 | 144,638,242 | |
Cash flows from investing activities: | |||
Purchases of fixed maturity securities | (151,581,252) | (18,857,131) | |
Sales, calls and maturities of fixed maturity securities | 25,163,141 | 48,015,753 | |
Purchase of equity securities | (4,193,460) | (1,950,554) | |
Sales of equity securities | 2,804,274 | 3,868,061 | |
Net changes in restricted assets | (862,654) | 473,156 | |
Net changes in cemetery perpetual care trust investments | 1,205,208 | (143,379) | |
Mortgage loans held for investment, other investments and policy loans made | (752,301,471) | (838,524,150) | |
Payments received for mortgage loans held for investment, other investments and policy loans | 759,243,828 | 818,108,666 | |
Proceeds from the sale of mortage servicing rights | 79,981,150 | ||
Purchases of property and equipment | (1,600,195) | (5,219,928) | |
Sales of property and equipment | 69,248 | ||
Purchases of real estate | (20,458,983) | (92,403,534) | |
Sales of real estate | 25,369,430 | 35,644,576 | |
Cash paid for purchase of subsidiaries, net of cash acquired | (12,625,142) | ||
Net cash used in investing activities | (37,161,736) | (63,613,606) | |
Cash flows from financing activities: | |||
Investment contract receipts | 11,730,820 | 11,481,349 | |
Investment contract withdrawals | (15,795,677) | (15,244,629) | |
Proceeds from stock options exercised | 143,432 | 1,077,425 | |
Purchase of treasury stock | (7,663,905) | (5,769,735) | |
Repayment of bank loans | (50,308,296) | (69,039,725) | |
Proceeds from bank loans | 59,618,050 | 106,995,930 | |
Net change in warehouse line borrowings for loans held for sale | (98,943,607) | (84,576,055) | |
Net cash used in financing activities | (101,219,183) | (55,075,440) | |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | (7,930,465) | 25,949,196 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 141,414,282 | 115,465,086 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 133,483,817 | 141,414,282 | |
Cash paid during the year for: | |||
Interest | 7,697,921 | 7,290,867 | |
Income taxes | 729,687 | 5,127,913 | |
Non Cash Investing and Financing Activities: | |||
Transfer of loans held for sale to mortgage loans held for investment | 51,691,213 | 201,951 | |
Mortgage loans held for investment foreclosed into real estate held for investment | 10,998,485 | 931,079 | |
Right-of-use assets obtained in exchange for operating lease liabilities | 2,054,534 | 5,216,048 | |
Accrued real estate construction costs and retainage | 1,025,397 | 4,400,320 | |
Transfer of property and equipment to real estate held for investment | 3,108,681 | ||
Cash and cash equivalents | 120,919,805 | 131,354,470 | |
Restricted assets | 10,638,034 | 9,000,293 | |
Cemetery perpetual care trust investments | $ 1,925,978 | $ 1,059,519 | |
[1]Included in other expenses on the consolidated statements of earnings |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1) Significant Accounting Policies General Overview of Business Security National Financial Corporation and its wholly owned subsidiaries (the “Company”) operate in three reportable business segments: life insurance, cemetery and mortuary, and mortgages. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products and accident and health insurance marketed primarily in the states located in western, mid-western and southern regions of the United States. The cemetery and mortuary segment of the Company consists of eight mortuaries and five cemeteries in Utah, one cemetery in California, and four mortuaries and one cemetery in New Mexico. The mortgage segment is an approved government and conventional lender that originates and underwrites residential and commercial loans for new construction, existing homes and real estate projects primarily in Florida, Nevada, Texas, and Utah. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Principles of Consolidation These consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates Management of the Company has made a number of estimates and assumptions related to the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with GAAP. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the value of mortgage loans foreclosed to real estate held for investment; those used in determining the liability for future policy benefits and unearned revenue; those used in determining the estimated future costs for pre-need sales; those used in determining the value of mortgage servicing rights; those used in determining allowances for loan losses for mortgage loans held for investment; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. Investments The Company’s management determines the appropriate classifications of investments in fixed maturity securities and equity securities at the acquisition date and re-evaluates the classifications at each balance sheet date. Fixed maturity securities available for sale Equity securities SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Mortgage loans held for investment Real estate held for investment Real estate held for sale Other investments and policy loans Accrued investment income Gains and losses on investments (except for equity securities carried at fair value through net earnings) Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Loans Held for Sale Accounting Standards Codification (“ASC”) No. 825, “Financial Instruments”, allows for the option to report certain financial assets and liabilities at fair value initially and at subsequent measurement dates with changes in fair value included in earnings. The option may be applied instrument by instrument, but it is irrevocable. The Company elected the fair value option for loans held for sale. The Company believes the fair value option most closely aligns the timing of the recognition of gains and costs. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Electing fair value also reduces certain timing differences and better matches changes in the fair value of these assets with changes in the fair value of the related derivatives used for these assets. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Mortgage Fee Income Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination of mortgage loans held for sale. All revenues and costs are recognized when the mortgage loan is funded and any changes in fair value are shown as a component of mortgage fee income. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale. The Company, through its mortgage subsidiaries, sells mortgage loans to third-party investors without recourse unless defects are identified in the representations and warranties made at loan sale. It may be required, however, to repurchase a loan or pay a fee instead of repurchase under certain events, which include the following: ● Failure to deliver original documents specified by the investor, ● The existence of misrepresentation or fraud in the origination of the loan, ● The loan becomes delinquent due to nonpayment during the first several months after it is sold, ● Early pay-off of a loan, as defined by the agreements, ● Excessive time to settle a loan, ● Investor declines purchase, and ● Discontinued product and expired commitment. Loan purchase commitments generally specify a date 30 to 45 days after delivery upon which the underlying loans should be settled. Depending on market conditions, these commitment settlement dates can be extended at a cost to the Company. It is the Company’s policy to cure any documentation problems regarding such loans at a minimal cost for up to a six-month time period and to pursue efforts to enforce loan purchase commitments from third-party investors concerning the loans. The Company believes that six months allows adequate time to remedy any documentation issues, to enforce purchase commitments, and to exhaust other alternatives. Remedial methods include the following: ● Research reasons for rejection, ● Provide additional documents, ● Request investor exceptions, ● Appeal rejection decision to purchase committee, and ● Commit to secondary investors. Once purchase commitments have expired and other alternatives to remedy are exhausted, which could be earlier than the six-month time period, the loans are repurchased and transferred to the long-term investment portfolio at the lower of cost or fair value and previously recorded mortgage fee income that was to be received from a third-party investor is written off against the loan loss reserve. Determining Fair Value Cost for loans held for sale is equal to the amount paid to the warehouse bank and the amount originally funded by the Company. Fair value is often difficult to determine and may contain significant unobservable inputs, but is based on the following: ● For loans that are committed, the Company uses the commitment price. ● For loans that are non-committed that have an active market, the Company uses the market price. ● For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product. ● For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying real estate collateral, estimated future cash flows, and the loan interest rate. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The appraised value of the real estate underlying the original mortgage loan adds support to the Company’s determination of fair value because if the loan becomes delinquent, the Company has sufficient value to collect the unpaid principal balance or the carrying value of the loan, thus minimizing credit losses. The majority of loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale. Loan Loss Reserve The loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on loans sold. The Company may be required to reimburse third-party investors for costs associated with early payoff of loans within six months of origination of such loans and to repurchase loans where there is a default in any of the first four monthly payments to the investors or, in lieu of repurchase, to pay a negotiated fee to the investors. The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities. Upon completion of a transfer that satisfies the conditions to be accounted for as a sale, the Company initially measures at fair value liabilities incurred in a sale relating to any guarantee or recourse provisions. The Company accrues a monthly allowance for indemnification losses to investors based on total production. This estimate is based on the Company’s historical experience and is included as a component of mortgage fee income. Subsequent updates to the recorded liability from changes in assumptions are recorded in selling, general and administrative expenses as a component of provision for loan loss reserve. The estimated liability for indemnification losses is included in other liabilities and accrued expenses. The loan loss reserve analysis involves mortgage loans that have been sold to third-party investors, which were believed to have met investor underwriting guidelines at the time of sale, 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 further described as follows: Make whole demand Repurchase demand Indemnification demand The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date. Additional information related to the Loan Loss Reserve is included in Note 3. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Restricted Assets Restricted assets are assets held in a trust account for future mortuary services and merchandise and consist of cash and cash equivalents; participations in mortgage loans held for investment with Security National Life Insurance Company (“Security National Life”); mutual funds carried at estimated fair value; equity securities carried at estimated fair value; and a surplus note with Security National Life (which is eliminated in consolidation). Restricted assets also include escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company funded its medical benefit safe-harbor limit based on the qualified direct costs, and has included this amount as a component of restricted cash. Cemetery Perpetual Care Trust Investments Cemetery endowment care trusts have been set up for five of the seven cemeteries owned by the Company. Under endowment care arrangements a portion of the price for each lot sold is withheld and invested in a portfolio of investments similar to those described in the prior paragraph. The earnings stream from the investments is designed to fund future maintenance and upkeep of the cemetery. Cemetery Land and Improvements The development of a cemetery involves not only the initial acquisition of raw land but also the installation of roads, water lines, landscaping and other costs to establish a marketable cemetery lot. The costs of developing the cemetery are shown as an asset on the balance sheet. The amount on the balance sheet is reduced by the total cost assigned to the development of a particular lot when the criterion for recognizing a sale of that lot is met. Deferred Policy Acquisition Costs and Value of Business Acquired Commissions and other costs, net of commission and expense allowances for reinsurance ceded, that vary with and are primarily related to the production of new insurance business have been deferred. Deferred policy acquisition costs (“DAC”) for traditional life insurance are amortized over the premium paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For interest-sensitive insurance products, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges, investment, mortality and expense margins. This amortization is adjusted when estimates of current or future gross profits to be realized from a group of products are reevaluated. Deferred acquisition costs are written off when policies lapse or are surrendered. When accounting for DAC, the Company considers internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract are accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract are written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract are accounted for as a continuation of the replaced contract. Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized similar to deferred policy acquisition costs. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Premium Deficiency and Loss Recognition Testing At least annually, the Company tests the adequacy of the net benefit reserves (liability for future policy benefits, net of DAC and VOBA) recorded for life insurance and annuity products. The Company tests for recoverability by using the Company’s current best-estimate assumptions as to policyholder mortality, persistency, maintenance expenses and invested asset returns. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized DAC and VOBA assets. These cash flows consist primarily of premium income, less benefits and expenses. If the current contract liabilities plus the present value of future premiums is greater than the sum of the present values of future policy benefits, commissions, and expenses plus the current DAC and VOBA less unearned premium reserve balances, then the capitalized assets are deemed recoverable. The present values are calculated using the best estimate of the after tax net investment earned rate. Mortgage Servicing Rights Mortgage Servicing Rights (“MSR”) arise from contractual agreements between the Company and third-party investors (or their agents) when mortgage loans are sold. Under these contracts, the Company is obligated to retain and provide loan servicing functions on loans sold, in exchange for fees and other remuneration. The servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate owned and property dispositions. The total residential mortgage loans serviced for others consist primarily of agency conforming fixed-rate mortgage loans. The value of MSRs is derived from the net cash flows associated with the servicing contracts. The Company receives a servicing fee of generally about 0.25 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 15 Interest rate risk, prepayment risk, and default risk are inherent risks in MSR valuation. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as rates decline. A significant decrease in rates beyond expectation could cause a decline in the value of the MSR. On the contrary, if rates increase borrowers are less likely to refinance or prepay their mortgage, which extends the duration of the loan and MSR values are likely to rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value. 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. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies 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. Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets which range from three forty years Long-lived Assets Long-lived assets to be held and used, including property and equipment and real estate held for investment, are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset, and long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of long-lived assets has been recognized in the accompanying financial statements except for certain impairments of real estate held for sale as disclosed in Note 2. Derivative Instruments Mortgage Banking Derivatives Loan Commitments The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a 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 loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded or the loan application is denied or withdrawn within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment. 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 loan commitments and are updated periodically to reflect the most current data. The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of 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 loan commitment is issued and is shown net of expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Forward Sale Commitments The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments. The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the consolidated balance sheets. Call and Put Option Derivatives The Company uses a strategy of selling “out of the money” call options on its 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 uses the strategy of selling put options as a means of generating cash or purchasing equity securities at lower than current market prices. 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 options is adjusted to fair value at each reporting date. In the event a call option is exercised, the Company sells the equity security at a favorable price enhanced by the value of the option that was sold. If the option expires unexercised, the Company recognizes a gain from the expired option. In the event a put option is exercised, the Company acquires an equity security at the strike price of the option reduced by the value received from the sale of the put option. The equity security is then treated as a normal equity security in the Company’s portfolio. The net changes in the fair value of call and put options are shown in current earnings as a component of gains (losses) on investments and other assets. Call and put options are shown in other liabilities and accrued expenses on the consolidated balance sheets. Allowance for Doubtful Accounts and Loan Losses and Impaired Loans The Company records an allowance and recognizes an expense for potential losses from mortgage loans held for investment, other investments and receivables in accordance with GAAP. Receivables are the result of cemetery and mortuary operations, mortgage loan operations and life insurance operations. The allowance 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 provides for losses on its mortgage loans held for investment through an allowance for loan losses (a contra-asset account). 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 similar receivables. The second component is based upon individual evaluation of loans that are determined to be impaired. As a practical expedient, 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 2 for additional information. In addition, when a mortgage loan is past due more than 90 days, the Company does not accrue any interest income. When a loan becomes delinquent, the Company proceeds to foreclose on the real estate and 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 real estate held for investment or held for sale. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The allowance for losses on mortgage loans held for investment 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. For purposes of determining the allowance for losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows: Commercial Residential Residential construction (including land acquisition and development) Future Policy Benefits and Unpaid Claims Future policy benefit reserves for traditional life insurance are computed using a net level method, including assumptions as to investment yields, mortality, morbidity, withdrawals, and other assumptions based on the life insurance subsidiaries’ experience, modified as necessary to give effect to anticipated trends and to include provisions for possible unfavorable deviations. Such liabilities are, for some plans, graded to equal statutory values or cash values at or prior to maturity, which are deemed a reasonable equivalent for GAAP. The range of assumed interest rates for all traditional life insurance policy reserves was 4 10 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 3 6.5 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The Company records an unpaid claims liability for claims in the course of settlement equal to the death benefit amount less any reinsurance recoverable amount for claims reported. There is also an unpaid claims liability for claims incurred but not reported. This liability is based on the historical experience of the net amount of claims that were reported in reporting periods subsequent to the reporting period when claims were incurred. Participating Insurance Participating business constituted 2 Recognition of Insurance Premiums and Other Considerations Premiums and other consideration for traditional life insurance products (which include those products with fixed and guaranteed premiums and benefits and consist principally of whole life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies) are recognized as revenues when due from policyholders. Premiums and other consideration for interest-sensitive insurance policies (which include universal life policies, interest-sensitive life policies, deferred annuities, and annuities without life contingencies) are recognized when earned and consist of amounts assessed against policyholder account balances during the period for policy administration charges and surrender charges. Reinsurance The Company follows the procedure of reinsuring risks in excess of $ 100,000 The Company entered into coinsurance agreements with unaffiliated insurance companies under which the Company assumed 100 Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Expense allowances received in connection with reinsurance ceded are accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Pre-need Sales and Costs Pre-need contract sales of funeral services and caskets Sales of cemetery interment rights (cemetery burial property) Pre-need contract sales of cemetery merchandise (primarily markers and vaults) SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Pre-need contract sales of cemetery services (primarily merchandise delivery, installation fees and burial opening and closing fees) Prearranged funeral and pre-need cemetery customer acquisition costs Revenues and costs for at-need sales are recorded when a valid contract exists, the services are performed, collection is reasonably assured and there are no significant performance obligations remaining. The Company, through its cemetery and mortuary operations, provides guaranteed funeral arrangements wherein a prospective customer can receive future goods and services at guaranteed prices. To accomplish this, the Company, through its life insurance operations, sells to the customer an increasing benefit life insurance policy that is assigned to the mortuaries. If, at the time of need, the policyholder/potential mortuary customer utilizes one of the Company’s facilities, the guaranteed funeral arrangement contract that has been assigned will provide the funeral goods and services at the contracted price. The increasing life insurance policy will cover the difference between the original contract prices and current prices. Risks may arise if the difference cannot be fully met by the life insurance policy. However, management believes that given current inflation rates and related price increases of goods and services |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2) Investments The Company’s investments as of December 31, 2022 are summarized as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 93,182,210 $ 180,643 $ (2,685,277 ) $ 90,677,576 Obligations of states and political subdivisions 6,675,071 13,869 (458,137 ) 6,230,803 Corporate securities including public utilities 229,141,544 1,909,630 (11,930,773 ) 219,120,401 Mortgage-backed securities 33,501,686 168,700 (4,100,674 ) 29,569,712 Redeemable preferred stock 250,000 10,000 - 260,000 Total fixed maturity securities available for sale $ 362,750,511 $ 2,282,842 $ (19,174,861 ) $ 345,858,492 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Total equity securities at estimated fair value $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Mortgage loans held for investment at amortized cost: Residential $ 93,355,623 Residential construction 172,516,125 Commercial 46,311,955 Less: Unamortized deferred loan fees, net (1,746,605 ) Less: Allowance for loan losses (1,970,311 ) Less: Net discounts (342,860 ) Total mortgage loans held for investment $ 308,123,927 Real estate held for investment - net of accumulated depreciation: Residential $ 38,437,960 Commercial 152,890,656 Total real estate held for investment $ 191,328,616 Real estate held for sale: Residential $ 11,010,029 Commercial 151,553 Total real estate held for sale $ 11,161,582 Other investments and policy loans at amortized cost: Policy loans $ 13,095,473 Insurance assignments 46,942,536 Federal Home Loan Bank stock (1) 2,600,300 Other investments 9,479,798 Less: Allowance for doubtful accounts (1,609,951 ) Total policy loans and other investments $ 70,508,156 Accrued investment income $ 10,299,826 Total investments $ 948,963,125 (1) Includes $ 938,500 1,661,800 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company’s investments as of December 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 22,307,736 $ 578,567 $ - $ 22,886,303 Obligations of states and political subdivisions 4,649,917 212,803 (1,989 ) 4,860,731 Corporate securities including public utilities 174,711,061 21,791,370 (353,668 ) 196,148,763 Mortgage-backed securities 34,365,382 905,159 (161,332 ) 35,109,209 Redeemable preferred stock 269,214 13,383 - 282,597 Total fixed maturity securities available for sale $ 236,303,310 $ 23,501,282 $ (516,989 ) $ 259,287,603 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Total equity securities at estimated fair value $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Mortgage loans held for investment at amortized cost: Residential $ 53,533,712 Residential construction 175,117,783 Commercial 51,683,022 Less: Unamortized deferred loan fees, net (918,586 ) Less: Allowance for loan losses (1,699,902 ) Less: Net discounts (409,983 ) Total mortgage loans held for investment $ 277,306,046 Real estate held for investment - net of accumulated depreciation: Residential $ 41,972,462 Commercial 155,393,335 Total real estate held for investment $ 197,365,797 Real estate held for sale: Residential $ 1,190,602 Commercial 2,540,698 Total real estate held for sale $ 3,731,300 Other investments and policy loans at amortized cost: Policy loans $ 13,478,214 Insurance assignments 48,632,808 Federal Home Loan Bank stock (1) 2,547,100 Other investments 4,983,251 Less: Allowance for doubtful accounts (1,686,218 ) Total policy loans and other investments $ 67,955,155 Accrued investment income $ 6,313,012 Total investments $ 823,555,327 (1) Includes $ 905,700 1,641,400 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Fixed Maturity Securities The following table summarizes unrealized losses on fixed maturities securities available for sale that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 U.S. Treasury securities and obligations of U.S. Government agencies $ 2,685,277 $ 79,400,753 $ - $ - $ 2,685,277 $ 79,400,753 Obligations of States and Political Subdivisions 378,067 5,467,910 80,070 429,020 458,137 5,896,930 Corporate Securities 10,935,114 162,995,969 995,659 5,781,822 11,930,773 168,777,791 Mortgage and other asset-backed securities 2,884,731 19,909,907 1,215,943 6,978,745 4,100,674 26,888,652 Total unrealized losses $ 16,883,189 $ 267,774,539 $ 2,291,672 $ 13,189,587 $ 19,174,861 $ 280,964,126 At December 31, 2021 Obligations of States and Political Subdivisions $ 1,989 $ 548,715 $ - $ - $ 1,989 $ 548,715 Corporate Securities 73,507 4,638,750 280,161 3,771,813 353,668 8,410,563 Mortgage and other asset-backed securities 72,952 7,934,760 88,380 1,582,804 161,332 9,517,564 Total unrealized losses $ 148,448 $ 13,122,225 $ 368,541 $ 5,354,617 $ 516,989 $ 18,476,842 There were 713 securities with fair value of 93.6 97.3 nil 39,502 On a quarterly basis, the Company evaluates its fixed maturity securities classified as available for sale. This evaluation includes a review of current ratings by the National Association of Insurance Commissions (“NAIC”). Securities with a rating of 1 or 2 are considered investment grade and are not reviewed for impairment, unless current market or recent company news could lead to a credit downgrade. Securities with ratings of 3 to 5 are evaluated for impairment. Securities with a rating of 6 are automatically determined to be impaired and are written down. The evaluation involves an analysis of the securities in relation to historical values, interest payment history, projected earnings and revenue growth rates as well as a review of the reason for a downgrade in the NAIC rating. Based on the analysis of a security that is rated 3 to 5, a determination is made whether the security will likely make interest and principal payments in accordance with the terms of the financial instrument. If it is unlikely that the security will meet contractual obligations, the loss is considered to be other than temporary, the security is written down to the new anticipated market 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. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The following table presents a rollforward of the Company’s cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale. Schedule of Earnings on Fixed Maturity Securities 2022 2021 Balance of credit-related OTTI at January 1 $ 264,977 $ 370,975 Additions for credit impairments recognized on: Securities not previously impaired - 39,502 Securities previously impaired - - Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (realized) (39,502 ) (145,500 ) Securities due to an increase in expected cash flows - - Balance of credit-related OTTI at December 31 $ 225,475 $ 264,977 The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Due in 1 year $ - $ - Due in 2-5 years 139,431,212 135,093,083 Due in 5-10 years 87,552,213 84,011,366 Due in more than 10 years 102,015,400 96,924,331 Mortgage-backed securities 33,501,686 29,569,712 Redeemable preferred stock 250,000 260,000 Total $ 362,750,511 $ 345,858,492 The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). The Company pledged a total of $ 93,034,880 nil 86,032,116 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Investment Related Earnings The following table presents the net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments from investments and other assets. Schedule of Gain (Loss) on Investments 2022 2021 Years Ended December 31 2022 2021 Fixed maturity securities available for sale: Gross realized gains $ 205,949 $ 984,740 Gross realized losses (43,776 ) (139,728 ) Other than temporary impairments - (39,502 ) Equity securities: Gains (losses) on securities sold (10,519 ) 390,597 Unrealized gains (losses) on securities held at the (2,109,556 ) 2,732,130 Mortgage loans held for investment: Gross realized gains - 1,890,826 Gross realized losses - (4,190 ) Real estate held for investment and sale: Gross realized gains 1,239,332 2,347,924 Gross realized losses (825,593 ) (2,426,428 ) Other assets, including call and put option derivatives: Gross realized gains 686,703 547,785 Gross realized losses - (58,522 ) Total $ (857,460 ) $ 6,225,632 The net realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined using the specific identification method. Net realized gains and losses includes gains and losses by the restricted assets and cemetery perpetual care trust investments of the cemeteries and mortuaries of $ 817,000 933,045 Information regarding sales of fixed maturity securities available for sale is presented as follows. Schedule of Major Categories of Net Investment Income 2022 2021 Years Ended December 31 2022 2021 Proceeds from sales $ 3,091,105 $ 2,896,351 Gross realized gains 24,281 208,698 Gross realized losses (32,976 ) (4,046 ) SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Major categories of net investment income were as follows: 2022 2021 Years Ended December 31 2022 2021 Fixed maturity securities available for sale $ 12,395,764 $ 10,769,979 Equity securities 511,118 446,337 Mortgage loans held for investment 34,949,763 28,758,614 Real estate held for investment and sale 14,563,269 12,334,989 Policy loans 932,362 940,890 Insurance assignments 18,112,840 19,062,052 Other investments 518,865 131,145 Cash and cash equivalents 1,666,945 235,470 Gross investment income 83,650,926 72,679,476 Investment expenses (17,453,334 ) (14,414,793 ) Net investment income $ 66,197,592 $ 58,264,683 Net investment income includes income earned by the restricted assets and cemetery perpetual care trust investments of the cemeteries and mortuaries of $ 2,404,277 1,472,295 Net investment income on real estate consists primarily of rental revenue. 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 $ 11,032,165 10,168,853 There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses) at December 31, 2022, other than investments issued or guaranteed by the United States Government. Real Estate Held for Investment and Held for Sale The Company strategically deploys resources into real estate to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business segments in the form of acquisition, development and mortgage foreclosures. The Company reports real estate held for investment and held for sale pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. Commercial Real Estate Held for Investment and Held for Sale The Company owns and manages commercial real estate assets as a means of generating investment income. These assets are acquired in accordance with the Company’s goals and objectives for risk-adjusted returns. Due diligence is conducted on each asset using internal and third-party reports. Geographic locations and asset classes of the investment activity is determined by senior management under the direction of the Board of Directors. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company employs full-time employees to attend to the day-to-day operations of those assets within the greater Salt Lake area and close surrounding markets. The Company utilizes third-party property managers when the geographic boundary does not warrant full-time staff or through strategic lease-up periods. The Company generally looks to acquire assets in regions that are high growth regions for employment and population and assets that provide operational efficiencies. The Company currently owns and operates nine commercial properties in three states. These properties include office buildings, flex office space, and includes the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company does use debt in strategic cases to leverage established yields or to acquire a higher quality or different class of asset. The aggregated net ending balance of commercial real estate that serves as collateral for bank loans was $ 129,330,119 134,251,205 97,112,131 85,663,148 During the years ended December 31, 2022 and 2021, the Company recorded impairment losses on commercial real estate held for sale of nil 2,028,378 During the years ended December 31, 2022 and 2021, the Company recorded depreciation expense on commercial real estate held for investment of $ 6,090,575 3,592,207 Operating leases arise from the leasing of the Company’s commercial real estate held for investment. Initial lease terms generally range from three ten years The Company’s commercial real estate held for investment is summarized as follows: Schedule of Commercial Real Estate Investment Net Ending Balance Total Square Footage December 31 December 31 2022 2021 2022 2021 Utah (1) $ 147,627,946 $ 150,105,948 625,920 625,920 Louisiana 2,380,847 2,426,612 31,778 31,778 Mississippi 2,881,863 2,860,775 19,694 19,694 $ 152,890,656 $ 155,393,335 677,392 677,392 (1) Includes Center53 phase 1 and phase 2 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The following is a maturity analysis of the annual undiscounted cash flows of the operating lease payments to be received. Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments 2023 $ 11,650,181 2024 10,310,144 2025 9,933,831 2026 8,282,769 2027 6,720,796 Thereafter 50,530,849 Total $ 97,428,570 The Company’s commercial real estate held for sale is summarized as follows: Net Ending Balance Total Square Footage December 31 December 31 2022 2021 2022 2021 Kansas $ - $ 2,000,000 - 222,679 Louisiana - 389,145 - 2,872 Mississippi (1) 151,553 151,553 - - $ 151,553 $ 2,540,698 - 225,551 (1) Approximately 93 acres of undeveloped land This property is being marketed with the assistance of commercial real estate brokers in the markets where the property is located. Residential Real Estate Held for Investment and Held for Sale The Company occasionally owns a small portfolio of residential homes primarily as a result of loan foreclosures. The Company has the option to sell them or to continue to hold them for cash flow and acceptable returns. The Company also invests in residential subdivision land developments. The Company established Security National Real Estate Services (“SNRE”) to manage the residential portfolio. SNRE cultivates and maintains the preferred vendor relationships necessary to manage costs and quality of work performed on the residential portfolio across the country. During the years ended December 31, 2022 and 2021, the Company recorded impairment losses on residential real estate held for sale of $ 94,400 nil During the years ended December 31, 2022 and 2021, the Company recorded depreciation expense on residential real estate held for investment of $ 10,592 12,850 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The net ending balance of foreclosed residential real estate included in residential real estate held for investment or sale was $ 11,010,029 1,190,602 The Company’s residential real estate held for investment is summarized as follows: Schedule of Residential Real Estate Investment Net Ending Balance December 31 2022 2021 Utah (1) $ 38,437,960 $ 41,686,281 Washington (2) - 286,181 $ 38,437,960 $ 41,972,462 (1) Including subdivision land developments (2) Improved residential lots The following table presents additional information regarding the Company’s subdivision land developments in Utah. December 31 2022 2021 Lots available for sale 80 67 Lots to be developed 1,131 548 Ending Balance $ 38,241,705 $ 41,479,434 The Company’s residential real estate held for sale is summarized as follows: 2022 2021 Net Ending Balance December 31 2022 2021 Utah $ 11,010,029 $ - Nevada - 979,640 Texas - 200,962 Ohio - 10,000 Real estate held for sale $ 11,010,029 $ 1,190,602 These properties are all actively being marketed with the assistance of residential real estate brokers. The Company expects these properties to sell within the coming 12 months. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Real Estate Owned and Occupied by the Company The primary business units of the Company occupy a portion of the commercial real estate owned by the Company. As of December 31, 2022, real estate owned and occupied by the Company is summarized as follows: Schedule of Real Estate Owned and Occupied by the Company Location Business Segment Approximate Square Footage Square Footage Occupied by the Company 433 Ascension Way, Floors 4, 5 and 6, Salt Lake City, UT - Center53 Building 2 Corporate Offices, Life Insurance, Cemetery/Mortuary Operations, and Mortgage Operations and Sales 221,000 50 % 1044 River Oaks Dr., Flowood, MS Life Insurance Operations 19,694 28 % 1818 Marshall Street, Shreveport, LA (1) Life Insurance Operations 12,274 100 % 909 Foisy Street, Alexandria, LA (1) Life Insurance Sales 8,059 100 % 812 Sheppard Street, Minden, LA (1) Life Insurance Sales 1,560 100 % 1550 N 3rd Street, Jena, LA (1) Life Insurance Sales 1,737 100 % (1) Included in property and equipment on the consolidated balance sheets Mortgage Loans Held for Investment The Company reports mortgage loans held for investment pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. Mortgage loans consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0 10.5 nine months 30 64 10 5 5 3 3 70 7 5 4 4 2 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company establishes a valuation allowance for credit losses in its mortgage loans held for investment portfolio. The following table presents the valuation allowance for loan losses as a contra-asset account. Schedule of Allowance for Loan Losses as Contra Asset Account Commercial Residential Residential Construction Total December 31, 2022 Allowance for credit losses: Beginning balance $ 187,129 $ 1,469,571 $ 43,202 $ 1,699,902 Charge-offs - - - - Provision - 270,409 - 270,409 Ending balance $ 187,129 $ 1,739,980 $ 43,202 $ 1,970,311 Ending balance: individually evaluated for impairment $ - $ 225,667 $ - $ 225,667 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,514,313 $ 43,202 $ 1,744,644 Mortgage loans: Ending balance $ 46,311,955 $ 93,355,623 $ 172,516,125 $ 312,183,703 Ending balance: individually evaluated for impairment $ 405,000 $ 2,162,385 $ - $ 2,567,385 Ending balance: collectively evaluated for impairment $ 45,906,955 $ 91,193,238 $ 172,516,125 $ 309,616,318 December 31, 2021 Allowance for credit losses: Beginning balance $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Charge-offs - - - - Provision - (305,225 ) - (305,225 ) Ending balance $ 187,129 $ 1,469,571 $ 43,202 $ 1,699,902 Ending balance: individually evaluated for impairment $ - $ 105,384 $ - $ 105,384 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,364,187 $ 43,202 $ 1,594,518 Mortgage loans: Ending balance $ 51,683,022 $ 53,533,712 $ 175,117,783 $ 280,334,517 Ending balance: individually evaluated for impairment $ 1,723,372 $ 2,548,656 $ - $ 4,272,028 Ending balance: collectively evaluated for impairment $ 49,959,650 $ 50,985,056 $ 175,117,783 $ 276,062,489 (1) (1) Amount corrected from that previously reported due to a typographical error. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The following table presents the aging of mortgage loans held for investment. Schedule of Aging of Mortgage Loans Commercial Residential Residential Total December 31, 2022 30-59 Days Past Due $ 1,000,000 $ 3,553,390 $ - $ 4,553,390 60-89 Days Past Due - 814,184 - 814,184 Greater Than 90 Days (1) - 1,286,211 - 1,286,211 In Process of Foreclosure (1) 405,000 876,174 - 1,281,174 Total Past Due 1,405,000 6,529,959 - 7,934,959 Current 44,906,955 86,825,664 172,516,125 304,248,744 Total Mortgage Loans 46,311,955 93,355,623 172,516,125 312,183,703 Allowance for Loan Losses (187,129 ) (1,739,980 ) (43,202 ) (1,970,311 ) Unamortized deferred loan fees, net (199,765 ) (1,212,994 ) (333,846 ) (1,746,605 ) Unamortized discounts, net (230,987 ) (111,873 ) - (342,860 ) Net Mortgage Loans $ 45,694,074 $ 90,290,776 $ 172,139,077 $ 308,123,927 December 31, 2021 30-59 Days Past Due $ - $ 3,117,826 $ 1,363,127 $ 4,480,953 60-89 Days Past Due 100,204 580,815 - 681,019 Greater Than 90 Days (1) 1,723,372 2,052,062 - 3,775,434 In Process of Foreclosure (1) - 496,594 - 496,594 Total Past Due 1,823,576 6,247,297 1,363,127 9,434,000 Current 49,859,446 47,286,415 173,754,656 270,900,517 Total Mortgage Loans 51,683,022 53,533,712 175,117,783 280,334,517 Allowance for Loan Losses (187,129 ) (1,469,571 ) (43,202 ) (1,699,902 ) Unamortized deferred loan fees, net (36,813 ) (498,600 ) (383,173 ) (918,586 ) Unamortized discounts, net (240,614 ) (169,369 ) - (409,983 ) Net Mortgage Loans $ 51,218,466 $ 51,396,172 $ 174,691,408 $ 277,306,046 (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Impaired Mortgage Loans Held for Investment Impaired mortgage loans held for investment 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 are summarized as follows: Schedule of Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2022 With no related allowance recorded: Commercial $ 405,000 $ 405,000 $ - $ 762,175 $ - Residential 1,142,494 1,142,494 - 998,798 - Residential construction - - - 103,976 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,019,891 1,019,891 225,667 683,922 - Residential construction - - - - - Total: Commercial $ 405,000 $ 405,000 $ - $ 762,175 $ - Residential 2,162,385 2,162,385 225,667 1,682,720 - Residential construction - - - 103,976 - December 31, 2021 With no related allowance recorded: Commercial $ 1,723,372 $ 1,723,372 $ - $ 1,053,865 $ - Residential 1,591,368 1,591,368 - 2,731,421 - Residential construction - - - 100,481 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 957,288 957,288 105,384 726,449 - Residential construction - - - - - Total: Commercial $ 1,723,372 $ 1,723,372 $ - $ 1,053,865 $ - Residential 2,548,656 2,548,656 105,384 3,457,870 - Residential construction - - - 100,481 - Credit Risk Profile Based on Performance Status The Company’s mortgage loans held for investment 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 or greater delinquent or on non-accrual status. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company’s performing and non-performing mortgage loans held for investment are summarized as follows: Schedule of Credit Risk of Mortgage Loans Based on Performance Status Commercial Residential Residential Construction Total December 31 December 31 December 31 December 31 2022 2021 2022 2021 2022 2021 2022 2021 Performing $ 45,906,955 $ 49,959,650 $ 91,193,238 $ 50,985,056 $ 172,516,125 $ 175,117,783 $ 309,616,318 $ 276,062,489 Non-performing 405,000 1,723,372 2,162,385 2,548,656 - - 2,567,385 4,272,028 Total $ 46,311,955 $ 51,683,022 $ 93,355,623 $ 53,533,712 $ 172,516,125 $ 175,117,783 $ 312,183,703 $ 280,334,517 Non-Accrual Mortgage Loans Held for Investment Once a loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and write off any income that had been accrued. Payments received for loans on a non-accrual status are recognized on a cash basis. Interest income recognized from any payments received for loans on a non-accrual status was immaterial. Accrual of interest resumes if a loan is brought current. Interest not accrued on these loans totals approximately $ 226,000 236,000 Principal Amounts Due The following table presents the amortized cost and contractual payments on mortgage loans held for investment by category as of December 31, 2022. Expected principal payments may differ from contractual obligations because certain borrowers may elect to pay off mortgage obligations with or without early payment penalties. Schedule of Mortgage loans Held for Investment Principal Principal Principal Amounts Amounts Amounts Due in Due in Due Total 1 Year 2-5 Years Thereafter Residential $ 93,355,623 $ 1,332,862 $ 10,000,042 $ 82,022,719 Residential Construction 172,516,125 167,805,559 4,710,566 - Commercial 46,311,955 9,405,903 28,597,132 8,308,920 Total $ 312,183,703 $ 178,544,324 $ 43,307,740 $ 90,331,639 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Loans Held For Sale | |
Loans Held for Sale | 3) Loans Held for Sale The Company elected the fair value option for loans held for sale. Changes in the fair value of the loans are included in mortgage fee income. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on mortgage loans held for investment and is included in mortgage fee income on the consolidated statement of earnings. There aren’t any loans that are 90 or more days past due and on a nonaccrual status as of December 31, 2022. See Note 17 of the Notes to Consolidated Financial Statements for additional disclosures regarding loans held for sale. The following table presents the aggregate fair value and the aggregate unpaid principal balance of loans held for sale. Schedule of Aggregate Fair Value Loans Held for Sale 2022 2021 December 31 2022 2021 Aggregate fair value $ 141,179,620 $ 302,776,827 Unpaid principal balance 141,337,811 294,481,503 Unrealized (loss) gain (158,191 ) 8,295,324 Mortgage Fee Income Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination and sale of mortgage loans held for sale. Major categories of mortgage fee income for loans held for sale are summarized as follows: Schedule of Mortgage Fee Income for Loans Held for Sale 2022 2021 Years Ended December 31 2022 2021 Loan fees $ 24,184,972 $ 37,723,433 Interest income 9,666,149 9,385,469 Secondary gains 153,870,807 (1) 230,417,029 Change in fair value of loan commitments (4,308,638 ) (3,113,095 ) Change in fair value of loans held for sale (8,834,797 ) (8,783,376 ) Provision for loan loss reserve (1,078,812 ) (2,211,230 ) Mortgage fee income $ 173,499,681 $ 263,418,230 (1) Includes a net gain of $ 34,051,938 Loan Loss Reserve When a repurchase demand corresponding to a mortgage loan previously held for sale and sold to a third-party investor 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. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 3) Loans Held for Sale The loan loss reserve, which is included in other liabilities and accrued expenses, is summarized as follows: Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses December 31 2022 2021 Balance, beginning of period $ 2,447,139 $ 20,583,618 Provision for current loan originations (1) 1,078,812 2,211,230 Charge-offs, net of recaptured amounts (1,800,284 ) (20,347,709 ) Balance, at December 31 $ 1,725,667 $ 2,447,139 (1) Included in Mortgage fee income The Company maintains reserves for estimated losses on current production volumes. For the year ended December 31, 2022, $ 1,078,812 319 1,000,000 2,211,230 390 1,000,000 In February 2021, SecurityNational Mortgage executed a settlement agreement with Lehman Holdings in relation to two adversary proceedings wherein all mortgage loan related claims were resolved, thereby ending all liabilities asserted by Lehman Holdings and conclusively ending all proceedings between SecurityNational Mortgage and Lehman Holdings. The full amount of SecurityNational Mortgage’s settlement payment was accounted for in the Company’s loan loss reserve as of December 31, 2020 and was paid during the first quarter 2021. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables | 4) Receivables Receivables consist of the following: Schedule of Receivables 2022 2021 December 31 2022 2021 Trade contracts $ 5,392,779 $ 5,298,636 Receivables from sales agents 2,209,185 2,360,807 Other 23,200,919 12,457,398 Total receivables 30,802,883 20,116,841 Allowance for doubtful accounts (2,229,791 ) (1,800,725 ) Net receivables $ 28,573,092 $ 18,316,116 |
Value of Business Acquired, Goo
Value of Business Acquired, Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Value of Business Acquired, Goodwill and Other Intangible Assets | 5) Value of Business Acquired, Goodwill and Other Intangible Assets Information with regard to value of business acquired was as follows: Schedule of Value of Business Acquired 2022 2021 December 31 2022 2021 Balance at beginning of year $ 8,421,432 $ 8,955,249 Value of business acquired 2,136,085 586,840 Imputed interest at 7 642,919 (1) 613,028 (1) Amortization included in earnings (1,907,250 )(1) (1,728,157 )(1) Shadow amortization included in other comprehensive income 510,550 (5,528 ) Net amortization (753,781 ) (1,120,657 ) Balance at end of year $ 9,803,736 $ 8,421,432 (1) Included in Amortization of deferred policy and pre-need acquistion costs and value of business acquired on the consolidated statements of earnings Presuming no additional acquisitions, net amortization charged to income is expected to approximate the following: Schedule of Acquisitions Net Amortization Charged to Income 2023 $ 1,181,000 2024 1,098,000 2025 995,000 2026 924,000 2027 841,000 Thereafter 4,764,736 Total $ 9,803,736 Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2022, value of business acquired is being amortized over a weighted average life of 5.7 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 5) Value of Business Acquired, Goodwill and Other Intangible Assets Information regarding goodwill by segment was as follows: Schedule of Goodwill by Segment Life Insurance Cemetery/ Total Balance at January 1, 2021: Goodwill $ 2,765,570 $ 754,018 $ 3,519,588 Accumulated impairment - - - Total goodwill, net 2,765,570 754,018 3,519,588 Acquisition - 1,734,195 (1) 1,734,195 Balance at December 31, 2021: Goodwill 2,765,570 2,488,213 5,253,783 Accumulated impairment - - - Total goodwill, net 2,765,570 2,488,213 5,253,783 Acquisition - - - Balance at December 31, 2022: Goodwill 2,765,570 2,488,213 5,253,783 Accumulated impairment - - - Total goodwill, net $ 2,765,570 $ 2,488,213 $ 5,253,783 (1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens and Holbrook Mortuary Goodwill is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for the years ended December 31, 2022 and 2021. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 5) Value of Business Acquired, Goodwill and Other Intangible Assets The carrying value of the Company’s other intangible assets were as follows which is included in other assets: Schedule of Carrying Value of Intangible Asset December 31 Useful Life 2022 2021 Intangible asset - trade name (1) 15 years $ 2,100,000 $ 2,100,000 Intangible asset - customer lists 15 years 890,000 890,000 Intangible asset - trade name (2) 15 years 610,000 610,000 Intangible assets - other (1) 15 years 210,000 210,000 Less accumulated amortization (553,333 ) (297,333 ) Balance at end of year $ 3,256,667 $ 3,512,667 (1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens (2) Kilpatrick Life Amortization expense for the years ended December 31, 2022 and 2021 was $ 256,000 99,999 The following table summarizes the Company’s estimate of future amortization for the other intangible assets: Schedule of Estimate of Future Amortization for Other Intangible Assets 2023 $ 254,000 2024 254,000 2025 254,000 2026 254,000 2027 254,000 Thereafter 1,986,667 Total $ 3,256,667 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6) Property and Equipment Property and equipment is summarized below: Schedule of Property, Plant and Equipment 2022 2021 December 31 2022 2021 Land and buildings $ 16,545,799 $ 16,532,593 Furniture and equipment 17,567,906 24,799,115 Property, plant and equipment, gross 34,113,705 41,331,708 Less accumulated depreciation (13,534,056 ) (19,814,110 ) Total $ 20,579,649 $ 21,517,598 Depreciation expense for the years ended December 31, 2022 and 2021 was $ 2,496,906 1,935,613 3,640,755 532,074 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Bank and Other Loans Payable
Bank and Other Loans Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Bank and Other Loans Payable | 7) Bank and Other Loans Payable Bank and other loans payable are summarized as follows: Summary of Bank Loans Payable December 31 2022 2021 $ 1,690,892 $ 2,481,878 Prime rate note payable in monthly installments of $ 75,108 $ 1,690,892 $ 2,481,878 4.329 9,775 3,023,000 - 1,825,608 4.00 1 3 65,422,000 - 34,547,181 3.85 243,781 65,422,000 48,613,833 - 3.30 179,562 46,960,000 39,298,298 40,090,359 4.7865 16,948,000 9,200,000 9,200,000 1 month SOFR rate plus 2.1 100,000,000 17,978,527 66,305,025 1 month SOFR rate plus 2 100,000,000 29,768,762 50,555,909 1 month SOFR rate plus 2.5 75,000,000 15,131,410 43,196,986 1 month SOFR rate plus 2.1 50,000,000 - 1,764,386 Other short-term borrowings (1) - 1,250,000 Finance lease liabilities 31,082 62,767 Other loans payable - 6,828 Total bank and other loans 161,712,804 251,286,927 Less current installments 65,560,608 164,747,672 Bank and other loans, excluding current installments $ 96,152,196 $ 86,539,255 (1) Revolving Line of Credit SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 7) Bank and Other Loans Payable Sources of Liquidity Federal Home Loan Bank Membership The Federal Home Loan Banks (“the FHLBs”) are a group of cooperatives that lending institutions use to finance housing and economic development in local communities. The Company is a member of the FHLB based in Des Moines, Iowa and based in Dallas, Texas. As a member of the FHLB, the Company is required to maintain a minimum investment in capital stock of the FHLB and may pledge collateral to the bank for advances of funds to be used in its operations. Federal Home Loan Bank of Des Moines At December 31, 2022, the amount available for borrowings from the FHLB of Des Moines was approximately $ 80,312,445 19,259,722 86,338,880 20,244,900 no 856,800 826,800 968,903 443,758 525,145 Federal Home Loan Bank of Dallas At December 31, 2022, the amount available for borrowings from the FHLB of Dallas was approximately $ 5,719,671 7,794,625 6,696,100 8,774,352 no 1,743,500 1,720,300 Revolving Lines of Credit The Company has a $ 2,000,000 1.25 3 December 31, 2023 622,293 no The Company also has a $ 2,500,000 2.35 December 31, 2023 no SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 7) Bank and Other Loans Payable Debt Covenants for Mortgage Warehouse Lines of Credit The Company, through its subsidiary SecurityNational Mortgage, has a $ 100,000,000 The agreement charges interest at the 1-Month SOFR rate plus 2.1% and matures on June 2, 2023 1.00 The Company, through its subsidiary SecurityNational Mortgage, has a line of credit with Texas Capital Bank N.A. This agreement with the bank allows SecurityNational Mortgage to borrow up to $ 100,000,000 The agreement charges interest at the 1-Month SOFR rate plus 2% November 9, 2023 1.00 The Company through its subsidiary SecurityNational Mortgage, has a line of credit with Comerica Bank. This agreement with the bank allows SecurityNational Mortgage to borrow up to $ 75,000,000 The agreement charges interest at the 1-Month SOFR rate plus 2.50% May 26, 2023 1.00 The Company through its subsidiary SecurityNational Mortgage, has a line of credit with U.S Bank. This agreement with the bank allows SecurityNational Mortgage to borrow up to $ 50,000,000 The agreement charges interest at 2.10% plus the greater of (i) 0% June 2, 2023 1.00 The agreements for warehouse lines include cross default provisions in that a covenant violation under one agreement constitutes a covenant violation under the other agreement. As of December 31, 2022, the Company was in compliance with all debt covenants. The following tabulation shows the combined maturities of bank and other loans payable: Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable 2023 $ 65,560,608 2024 2,785,674 2025 1,981,991 2026 1,883,515 2027 1,997,551 Thereafter 87,503,465 Total $ 161,712,804 Interest expense in 2022 and 2021 was $ 7,830,443 7,127,516 7,697,921 7,290,867 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Cemetery Perpetual Care Trust I
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets | 12 Months Ended |
Dec. 31, 2022 | |
Cemetery Perpetual Care Trust Investments And Obligation And Restricted Assets | |
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets | 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets Cemetery Perpetual Care Trust Investments and Obligation State law requires the Company to pay into endowment care trusts a portion of the proceeds from the sale of certain cemetery property interment rights for cemeteries that have established an endowment care trust. These endowment care trusts are defined as variable interest entities pursuant to GAAP. Also, management has determined that the Company is the primary beneficiary of these trusts, as it absorbs both a majority of the losses and returns associated with the trusts. The Company has consolidated cemetery endowment care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets . The components of the cemetery perpetual care investments and obligation as of December 31, 2022 are as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 89,004 $ 42 $ (38 ) $ 89,008 Obligations of states and political subdivisions 174,201 - (8,478 ) 165,723 Total fixed maturity securities available for sale $ 263,205 $ 42 $ (8,516 ) $ 254,731 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 3,195,942 $ 584,383 $ (175,163 ) $ 3,605,162 Total equity securities at estimated fair value $ 3,195,942 $ 584,383 $ (175,163 ) $ 3,605,162 Mortgage loans held for investment at amortized cost: Residential construction $ 1,506,517 Real estate held for investment: Residential $ (16,178 ) Cash and cash equivalents $ 1,925,978 Total cemetery perpetual care trust investments $ 7,276,210 Cemetery perpetual care obligation $ (5,099,542 ) Trust investments in excess of trust obligations $ 2,176,668 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets The components of the cemetery perpetual care investments and obligation as of December 31, 2021 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 280,023 $ 4,872 $ (928 ) $ 283,967 Corporate securities including public utilities 492,770 8,028 - 500,798 Total fixed maturity securities available for sale $ 772,793 $ 12,900 $ (928 ) $ 784,765 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 2,597,745 $ 737,696 $ (32,961 ) $ 3,302,480 Total equity securities at estimated fair value $ 2,597,745 $ 737,696 $ (32,961 ) $ 3,302,480 Mortgage loans held for investment at amortized cost: $ 1,823,533 Real estate held for investment: Residential $ 865,424 Cash and cash equivalents $ 1,059,519 Total cemetery perpetual care trust investments $ 7,835,721 Cemetery perpetual care obligation $ (4,915,285 ) Trust investments in excess of trust obligations $ 2,920,436 Fixed Maturity Securities The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 U.S. Treasury securities and obligations of U.S. Government agencies $ 38 $ 59,392 $ - $ - $ 38 $ 59,392 Obligations of states and political subdivisions 1,845 94,612 6,633 71,112 8,478 165,724 Total unrealized losses $ 1,883 $ 154,004 $ 6,633 $ 71,112 $ 8,516 $ 225,116 At December 31, 2021 Obligations of states and political subdivisions $ 928 $ 105,060 $ - $ - $ 928 $ 105,060 Total unrealized losses $ 928 $ 105,060 $ - $ - $ 928 $ 105,060 There were 5 securities with fair value of 96.4 99.1 No SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ 89,004 $ 89,008 Due in 2-5 years 77,745 71,112 Due in 5-10 years 41,621 40,816 Due in more than 10 years 54,835 53,795 Total $ 263,205 $ 254,731 Restricted Assets The Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection with its pre-need sales for its cemetery and mortuary segment. Restricted cash also represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to maintain its medical benefit fund without change from the prior year and has included this amount as a component of restricted cash. These restricted cash items are for the Company’s life insurance and mortgage segments. Restricted assets as of December 31, 2022 are summarized as follows: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 1,033,047 $ 866 $ (15,360 ) $ 1,018,553 Corporate securities including public utilities 201,771 - (3,016 ) 198,755 Total fixed maturity securities available for sale $ 1,234,818 $ 866 $ (18,376 ) $ 1,217,308 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 4,955,360 $ 703,049 $ (310,165 ) $ 5,348,244 Total equity securities at estimated fair value $ 4,955,360 $ 703,049 $ (310,165 ) $ 5,348,244 Mortgage loans held for investment at amortized cost: $ 1,731,469 Cash and cash equivalents (1) $ 10,638,034 Total restricted assets $ 18,935,055 (1) Including cash and cash equivalents of $ 8,527,620 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets Restricted assets as of December 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 1,058,449 $ 42,456 $ (309 ) $ 1,100,596 Corporate securities including public utilities 489,714 13,139 (1,761 ) 501,092 Total fixed maturity securities available for sale $ 1,548,163 $ 55,595 $ (2,070 ) $ 1,601,688 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 2,781,041 $ 852,443 $ (29,662 ) $ 3,603,822 Total equity securities at estimated fair value $ 2,781,041 $ 852,443 $ (29,662 ) $ 3,603,822 Mortgage loans held for investment at amortized cost: Residential construction $ 2,732,319 Cash and cash equivalents (1) $ 9,000,293 Total restricted assets $ 16,938,122 (1) Including cash and cash equivalents of $ 7,869,295 A surplus note receivable in the amount of $ 4,000,000 Fixed Maturity Securities The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 Obligations of states and political subdivisions $ 11,891 $ 760,255 $ 3,469 $ 58,072 $ 15,360 $ 818,327 Corporate securities including public utilities 3,016 198,755 - - 3,016 198,755 Total unrealized losses $ 14,907 $ 959,010 $ 3,469 $ 58,072 $ 18,376 $ 1,017,082 At December 31, 2021 Obligations of states and political subdivisions $ 309 $ 114,208 $ - $ - $ 309 $ 114,208 Corporate securities including public utilities 1,761 232,239 - - 1,761 232,239 Total unrealized losses $ 2,070 $ 346,447 $ - $ - $ 2,070 $ 346,447 There were 17 securities with fair value of 98.2 99.4 No SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ - $ - Due in 2-5 years 320,972 312,708 Due in 5-10 years 153,284 152,191 Due in more than 10 years 760,562 752,409 Total $ 1,234,818 $ 1,217,308 See Notes 1, 2 and 17 for additional information regarding restricted assets and cemetery perpetual care trust investments. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9) Income Taxes The Company’s income tax liability is summarized as follows: Summary of Income Tax Liability 2022 2021 December 31 2022 2021 Current $ 16,352,190 $ (1,558,687 ) Deferred 14,358,337 32,594,783 Total $ 30,710,527 $ 31,036,096 Significant components of the Company’s deferred tax (assets) and liabilities are approximately as follows: Schedule of Deferred Tax Assets and Liabilities 2022 2021 December 31 2022 2021 Assets Future policy benefits $ (13,974,221 ) $ (13,015,255 ) Loan loss reserve (448,673 ) (636,256 ) Unearned premium (582,459 ) (642,755 ) Net operating loss (237,855 ) (898,029 ) Deferred compensation (2,166,593 ) (2,750,406 ) Deposit obligations (631,232 ) (635,878 ) Tax on unrealized appreciation (2,590,726 ) - Other (601,335 ) (1,712,895 ) Less: Valuation allowance 1,506,144 882,535 Total deferred tax assets (19,726,950 ) (19,408,939 ) Liabilities Deferred policy acquisition costs 17,511,778 17,166,200 Basis difference in property, equipment and real estate 11,959,391 9,247,242 Value of business acquired 2,058,785 1,768,501 Deferred gains 1,490,946 15,598,360 Trusts 1,064,387 1,064,387 Tax on unrealized appreciation - 7,159,032 Total deferred tax liabilities 34,085,287 52,003,722 Net deferred tax liability $ 14,358,337 $ 32,594,783 The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 9) Income Taxes The Company’s income tax expense is summarized as follows: Schedule of Components of Income Tax Expense (Benefit) 2022 2021 December 31 2022 2021 Current Federal $ 15,346,331 $ 629,921 State 3,294,234 343,428 Total Current Income Tax Expense (Benefit) 18,640,565 973,349 Deferred Federal (7,400,620 ) 9,832,556 State (2,553,385 ) 1,475,880 Total Deferred Income Tax Expense (Benefit) (9,954,005 ) 11,308,436 Total $ 8,686,560 $ 12,281,785 The reconciliation of income tax expense at the U.S. federal statutory rates is as follows: Schedule of Effective Income Tax Rate Reconciliation 2022 2021 December 31 2022 2021 Computed expense at statutory rate $ 7,219,141 $ 10,878,163 State tax expense, net of federal tax benefit 585,269 1,437,255 Change in valuation allowance 623,609 (79,385 ) Other, net 258,541 45,752 Income tax expense $ 8,686,560 $ 12,281,785 The Company’s overall effective tax rate for the years ended December 31, 2022 and 2021 was 25.3 23.7 21 At December 31, 2022, the Company had no significant unrecognized tax benefits. As of December 31, 2022, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2019 through 2022 are subject to examination by taxing authorities. Net Operating Losses and Tax Credit Carryforwards: Summary of Operating Loss Carryforwards Year of Expiration 2023 $ - 2024 - 2025 - 2026 - 2027 - Thereafter up through 2037 1,070,413 Indefinite carryforwards - $ 1,070,413 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Reinsurance, Commitments and Co
Reinsurance, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reinsurance, Commitments and Contingencies | 10) Reinsurance, Commitments and Contingencies Reinsurance The Company follows the procedure of reinsuring risks in excess of a specified limit, which ranged from $ 25,000 100,000 93.7 93.6 11.3 11.9 Mortgage Loan Loss Settlements Future loan losses can be extremely difficult to estimate. However, the Company believes that its reserve methodology and its current practice of property preservation allow it to estimate potential losses on loans sold. The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2022 and 2021, the balances were $ 1,725,667 2,447,139 Non-Cancelable Leases The Company leases office space and equipment under various non-cancelable agreements. See Note 24 regarding leases. Other Contingencies and Commitments The Company has entered into commitments to fund construction and land development loans and has also provided financing for land acquisition and development. As of December 31, 2022, the Company’s commitments were approximately $ 231,250,000 175,754,000 50 80 5.25 8.50 The Company belongs to a captive insurance group for certain casualty insurance, worker compensation and liability programs. Insurance reserves are maintained relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the insurance liabilities and related reserves, the captive insurance management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required. The estimation process contains uncertainty since captive insurance management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. The Company is a defendant in various other legal actions arising from the normal conduct of business. Management believes that none of the actions will have a material effect on the Company’s financial position or results of operations. Based on management’s assessment and legal counsel’s representations concerning the likelihood of unfavorable outcomes, no amounts have been accrued for the above claims in the consolidated financial statements. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 10) Reinsurance, Commitments and Contingencies 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. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 11) Retirement Plans The Company and its subsidiaries had a noncontributory Employee Stock Ownership Plan (“ESOP”) for all eligible employees. On November 25, 2019, the Company distributed a notice of intent to terminate the ESOP Plan to all current plan participants. The Company also filed Form 5310 application for determination for terminating plan, with the IRS on December 6, 2019. As of the 4 th The Company has three 401(k) savings plans covering all eligible employees which includes employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plans allow participants to make pretax contributions up to a maximum of $ 20,500 19,500 The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation. 2,573,956 2,820,315 In 2001, the Company’s Board of Directors adopted a Non-Qualified Deferred Compensation Plan, and this plan was amended in 2005. Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan. The Company may contribute into the plan at the discretion of the Company’s Board of Directors. The Company did not make any contributions for 2022 and 2021. Effective December 2, 2022, the Board members approved a motion to extend the Chief Executive Officer’s employment agreement, dated December 4, 2012, for an additional two-year term ending December 2024. In the event of disability, the Chief Executive Officer’s salary would be continued for up to five years at 75% of its current level of compensation. In the event of a sale or merger of the Company and the Chief Executive Officer is not retained in his current position, the Company would be obligated to continue paying the Chief Executive Officer’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that the Chief Executive Officer is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current level of compensation. nil 900,000 7,556,363 7,556,363 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 11) Retirement Plans The Company, through its wholly owned subsidiary, SecurityNational Mortgage, also has an employment agreement with its former Vice President of Mortgage Operations and President of SecurityNational Mortgage, who retired from the Company on December 31, 2015. Under the terms of the employment agreement, this individual is entitled to receive retirement benefits from the Company for a period of ten years in an amount equal to 50% of his rate of compensation at the time of his retirement 267,685 133,843 133,843 401,529 535,370 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | 12) Capital Stock The Company has one class of preferred stock of $ 1.00 5,000,000 none The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the years 2021 and 2022, as authorized by the Company’s Board of Directors. The Company has Class B common stock of $ 1.00 5,000,000 none The following table summarizes the activity in shares of capital stock. Summary of Activities in Shares of Capital Stock Class A Class C Outstanding shares at December 31, 2020 16,595,783 2,679,603 Exercise of stock options 160,282 104,656 Stock dividends 837,410 131,553 Conversion of Class C to Class A 49,247 (49,247 ) Outstanding shares at December 31, 2021 17,642,722 2,866,565 Exercise of stock options 109,587 - Stock dividends 889,554 139,462 Conversion of Class C to Class A 116,168 (116,168 ) Outstanding shares at December 31, 2022 18,758,031 2,889,859 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 12) Capital Stock Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows: Schedule of Earnings Per Share, Basic and Diluted 2022 2021 Years Ended December 31 2022 2021 Numerator: Net earnings $ 25,690,302 $ 39,518,990 Denominator: Denominator for basic earnings per share-weighted-average shares 21,137,941 21,146,713 Effect of dilutive securities Employee stock options 807,927 812,916 Unvested restricted stock units 374 - Dilutive potential common shares 808,301 812,916 Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions 21,946,242 21,959,629 Basic earnings per share $ 1.22 $ 1.87 Diluted earnings per share $ 1.17 $ 1.80 For the years ended December 31, 2022 and 2021, there were 339,150 50,000 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | 13) Stock Compensation Plans The Company has three stock compensation plans (the “2013 Plan”, the “2014 Director Plan” and the “2022 Equity Incentive Plan”). Stock Options Stock based compensation expense for stock options issued of $ 929,321 118,384 506,701 The fair value of each stock option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant. The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted. Schedule of Assumptions Used Assumptions Grant Date Plan Weighted-Average Fair Value of Each Option Expected Dividend Yield (1) Underlying stock FMV Weighted-Average Volatility Weighted-Average Risk-Free Interest Rate Weighted-Average Expected Life (years) December 2, 2022 All Plans $ 1.48 5 % $ 6.48 37.03 % 3.69 % 4.88 December 3, 2021 All Plans $ 2.99 5 % $ 8.62 36.50 % 1.15 % 5.31 (1) Stock dividend SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 13) Stock Compensation Plans Activity of the stock option plans is summarized as follows: Schedule of Activity of Stock Option Plans Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2021 1,072,863 $ 4.12 662,666 $ 4.50 Adjustment for the effect of stock dividends 47,594 33,136 Granted 89,500 230,000 Exercised (183,935 ) (104,656 ) Cancelled (1,671 ) - Outstanding at December 31, 2021 1,024,351 $ 4.38 821,146 $ 5.26 Adjustment for the effect of stock dividends 47,780 41,057 Granted 82,500 295,000 Exercised (176,435 ) - Cancelled (1,591 ) - Outstanding at December 31, 2022 976,605 $ 4.78 1,157,203 $ 5.59 Exercisable at end of year 897,105 $ 4.63 862,203 $ 5.26 Available options for future grant 132,313 795,000 Weighted average contractual term of options outstanding at December 31, 2022 4.72 6.90 Weighted average contractual term of options exercisable at December 31, 2022 4.26 6.24 Aggregated intrinsic value of options outstanding at December 31, 2022 (1) $ 2,460,755 $ 1,979,588 Aggregated intrinsic value of options exercisable at December 31, 2022 (1) $ 2,397,275 $ 1,758,488 (1) The Company used a stock price of $ 7.30 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 years ended December 31, 2022 and 2021 was $ 619,064 1,153,417 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 13) Stock Compensation Plans Restricted Stock Units (“RSUs”) Stock based compensation expense for RSUs issued of $ 371 nil 742 6.48 Activity of the RSUs is summarized as follows: Schedule of Activity Restricted Stock Units Number of Weighted Average Grant Date Fair Value Non-vested at December 31, 2021 - $ - Granted 1,620 6.48 Vested - Non-vested at December 31, 2022 1,620 $ 6.48 Available RSUs for future grant 18,380 Aggregated intrinsic value of RSUs outstanding at December 31, 2022 (1) $ 1,328 (1) The Company used a stock price of $ 7.30 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Statutory Financial Information
Statutory Financial Information and Dividend Limitations | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Financial Information and Dividend Limitations | 14) Statutory Financial Information and Dividend Limitations The Company’s insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The states in which the Company’s life insurance subsidiaries are domiciled require the preparation of statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis. Statutory net income and capital and surplus of the Company’s insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows: Schedule of Statutory Accounting Practices Statutory Net Income Statutory Capital and Surplus Years Ended December 31 December 31 2022 2021 2022 2021 Amounts by insurance subsidiary: Security National Life Insurance Company $ 9,126,955 $ 5,552,116 $ 66,753,938 $ 57,424,808 Kilpatrick Life Insurance Company 2,373,682 1,312,718 17,300,717 15,566,231 First Guaranty Insurance Company 1,007,026 624,550 8,107,405 7,734,357 Memorial Insurance Company of America - 37 - - Southern Security Life Insurance Company, Inc. (2,691 ) 275 1,579,971 1,578,225 Trans-Western Life Insurance Company 4,008 (2,089 ) 512,555 508,547 Total $ 12,508,980 $ 7,487,607 $ 94,254,586 $ 82,812,168 The Utah, Louisiana, Mississippi and Texas Insurance Departments impose minimum risk-based capital (“RBC”) requirements that were developed by the NAIC on insurance enterprises. The formulas for determining the RBC specify various factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio (the Ratio) of the enterprise’s regulatory total adjusted capital, as defined by the NAIC, to its authorized control level, as defined by the NAIC. Enterprises below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The life insurance subsidiaries each have a ratio that is greater than the first level of regulatory action as of December 31, 2022. The Company does not have any guarantees to maintain the capital and surplus of any affiliates except for the Company’s agreement to provide additional capital to Security National Life Insurance Company in the event risk-based capital drops below 350% of the authorized control level. Generally, the net assets of the life insurance subsidiaries available for transfer to the Company are limited to the amounts of the life insurance subsidiaries net assets, as determined in accordance with statutory accounting practices, that exceed minimum statutory capital requirements. Additional requirements must be met depending on the state, and payments of such amounts as dividends are subject to approval by regulatory authorities. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 14) Statutory Financial Information and Dividend Limitations Under the Utah Insurance Code, Security National Life Insurance Company is permitted to pay stockholder dividends, or otherwise make distributions, to the Company subject to certain limitations. Security National Life Insurance Company must ensure that its surplus held for policyholders is reasonable in relation to its outstanding liabilities and adequate to its financial needs after payment of any such dividend or distribution. Furthermore, where any dividend or distribution, together with all other dividends and distributions made within the preceding 12 months, exceeds the lesser of (i) 10% of its surplus held for policyholders as of the next preceding December 31; or (ii) its net gain from operations, not including realized capital gains, for the 12-month period ending the next preceding December 31, such dividend or distribution constitutes “extraordinary” under Utah law and Security National Life Insurance Company would be required to file notice of its intention to declare such a dividend or make such a distribution with the Utah Commissioner and the Utah Commissioner must either approve the distribution or dividend or not disapprove the dividend or distribution within 30 days’ of the notice filing. Based on Security National Life Insurance Company’s surplus held for policyholders and net gain from operations as of December 31, 2022, the maximum aggregate amount of dividends and distributions that it could pay or make in 2023 and which would not constitute an “extraordinary” dividend or distribution under Utah law, and would therefore not require notice and approval or lack of disproval from the Utah Commissioner, would be approximately $ 6,420,000 Under the Louisiana Insurance Code, First Guaranty Insurance Company and Kilpatrick Life Insurance Company are permitted to pay stockholder dividends, or otherwise make distributions, to the Company subject to certain limitations. First Guaranty Insurance Company and Kilpatrick Life Insurance Company must ensure that its surplus held for policyholders is reasonable in relation to its outstanding liabilities and adequate to its financial needs after payment of any such dividend or distribution. Furthermore, where any dividend or distribution, together with all other dividends and distributions made within the preceding 12 months, exceeds the lesser of (i) 10% of its surplus held for policyholders as of the next preceding December 31; or (ii) its net gain from operations, not including realized capital gains, for the 12-month period ending the next preceding December 31, such dividend or distribution constitutes “extraordinary” under Louisiana law and First Guaranty Insurance Company and Kilpatrick Life Insurance Company would be required to file notice of its intention to declare such a dividend or make such a distribution with the Louisiana Commissioner and the Louisiana Commissioner must either approve the distribution or dividend or not disapprove the dividend or distribution within 30 days’ of the notice filing. Based on First Guaranty Insurance Company’s and Kilpatrick Life Insurance Company’s surplus held for policyholders and net gain from operations as of December 31, 2022, the maximum aggregate amount of dividends and distributions that it could pay or make in 2023 and which would not constitute an “extraordinary” dividend or distribution under Louisiana law, and would therefore not require notice and approval or lack of disproval from the Louisiana Commissioner, would be approximately $ 710,000 1,650,000 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | 15) Business Segment Information 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 fee income and expenses from the originations of residential 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. 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 are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 15) Business Segment Information Schedule of Revenues and Expenses by Reportable Segment Insurance Mortuary Mortgage Eliminations Consolidated Year Ended December 31, 2022 Life Cemetery/ Intercompany Insurance Mortuary Mortgage Eliminations Consolidated Revenues: From external sources: Revenue from customers $ 105,144,646 $ 26,993,855 $ 173,356,675 - $ 305,495,176 Net investment income 62,565,021 2,444,599 1,187,972 - 66,197,592 Gains (losses) on investments and other assets (459,462 ) (796,096 ) 398,098 - (857,460 ) Other than temporary impairments - - - - - Other revenues 1,932,402 305,073 16,579,545 - 18,817,020 Intersegment revenues: Net investment income 6,601,132 451,139 356,574 (7,408,845 ) - Total revenues 175,783,739 29,398,570 191,878,864 (7,408,845 ) 389,652,328 Expenses: Death, surrenders and other policy benefits 64,066,432 - - - 64,066,432 Increase in future policy benefits 28,858,969 - - - 28,858,969 Amortization of deferred policy and pre-need acquisition costs and value of business acquired 17,352,803 597,399 - - 17,950,202 Selling, general and administrative expenses: Commissions 4,097,680 1,372,200 57,851,212 - 63,321,092 Personnel 26,285,207 9,305,429 64,520,887 - 100,111,523 Advertising 1,649,273 628,114 3,420,611 - 5,697,998 Rent and rent related 384,908 163,182 6,334,923 - 6,883,013 Depreciation on property and equipment 1,036,521 759,415 700,970 - 2,496,906 Provision for loan loss reserve - - - - - Cost related to funding mortgage loans - - 7,540,041 - 7,540,041 Intersegment 232,915 160,690 1,795,507 (2,189,112 ) - Other 13,190,827 5,321,730 27,285,196 - 45,797,753 Interest expense: Intersegment 462,753 274,911 4,482,069 (5,219,733 ) - Other 3,969,905 710 3,859,828 - 7,830,443 Costs of goods and services sold-mortuaries and cemeteries - 4,721,094 - - 4,721,094 Total benefits and expenses 161,588,193 23,304,874 177,791,244 (7,408,845 ) 355,275,466 Earnings before income taxes $ 14,195,546 $ 6,093,696 $ 14,087,620 $ - $ 34,376,862 Income tax expense (4,034,979 ) (1,523,954 ) (3,127,627 ) - (8,686,560 ) Net earnings $ 10,160,567 $ 4,569,742 $ 10,959,993 $ - $ 25,690,302 Identifiable assets $ 1,246,840,586 $ 82,320,929 $ 219,872,163 $ (93,174,569 ) $ 1,455,859,109 Goodwill $ 2,765,570 $ 2,488,213 $ - $ - $ 5,253,783 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 15) Business Segment Information Insurance Mortuary Mortgage Eliminations Consolidated Year Ended December 31, 2021 Life Cemetery/ Intercompany Insurance Mortuary Mortgage Eliminations Consolidated Revenues: From external sources: Revenue from customers $ 100,254,573 $ 23,997,313 $ 263,418,230 - $ 387,670,116 Net investment income 56,091,725 1,653,940 519,018 - 58,264,683 Gains on investments and other assets 4,554,528 1,511,965 198,641 - 6,265,134 Other than temporary impairments (39,502 ) - - - (39,502 ) Other revenues 2,152,531 100,255 16,282,325 - 18,535,111 Intersegment revenues: Net investment income 7,569,875 314,001 599,115 (8,482,991 ) - Total revenues 170,583,730 27,577,474 281,017,329 (8,482,991 ) 470,695,542 Expenses: Death, surrenders and other policy benefits 67,218,455 - - - 67,218,455 Increase in future policy benefits 26,263,312 - - - 26,263,312 Amortization of deferred policy and pre-need acquisition costs and value of business acquired 15,611,374 531,596 - - 16,142,970 Selling, general and administrative expenses: Commissions 3,514,498 1,917,899 112,854,072 - 118,286,469 Personnel 25,009,096 6,850,617 68,880,448 - 100,740,161 Advertising 1,160,640 570,924 4,894,854 - 6,626,418 Rent and rent related 733,726 109,318 6,399,243 - 7,242,287 Depreciation on property and equipment 806,543 479,005 650,065 - 1,935,613 Provision for loan loss reserve - - - - - Cost related to funding mortgage loans - - 10,541,570 - 10,541,570 Intersegment 497,113 113,062 671,107 (1,281,282 ) - Other 12,075,374 5,224,178 35,766,430 - 53,065,982 Interest expense: Intersegment 392,003 97,195 6,712,511 (7,201,709 ) - Other 2,328,868 54,620 4,744,028 - 7,127,516 Costs of goods and services sold-mortuaries and cemeteries - 3,704,014 - - 3,704,014 Total benefits and expenses 155,611,002 19,652,428 252,114,328 (8,482,991 ) 418,894,767 Earnings before income taxes $ 14,972,728 $ 7,925,046 $ 28,903,001 $ - $ 51,800,775 Income tax expense (2,943,715 ) (1,975,787 ) (7,362,283 ) - (12,281,785 ) Net earnings $ 12,029,013 $ 5,949,259 $ 21,540,718 $ - $ 39,518,990 Identifiable assets $ 1,236,406,558 $ 73,432,116 $ 328,600,841 $ (96,099,992 ) $ 1,542,339,523 Goodwill $ 2,765,570 $ 2,488,213 $ - $ - $ 5,253,783 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16) Related Party Transactions The Company’s Board of Directors has a written procedure, which requires disclosure to the Board of any material interest or any affiliation on the part of any of its officers, directors or employees that is in conflict or may be in conflict with the interests of the Company. The Company and its Board of Directors is unaware of any related party transactions that require disclosure as of December 31, 2022. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 17) Fair Value of Financial Instruments 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: Level 2: 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: 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 significant financial instruments: The items shown under Level 1 and Level 2 are valued as follows: Fixed Maturity Securities Available for Sale Equity Securities SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments Restricted Assets Cemetery Perpetual Care Trust Investments Call and Put Options Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. The items shown under Level 3 are valued as follows: Loans Held for Sale Loan Commitments and Forward Sale Commitments The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted MBS prices, estimates of the fair value of mortgage servicing rights, and an estimate of 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 loan commitment is issued. 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 and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments. Impaired Mortgage Loans Held for Investment Impaired Real Estate Held for Investment SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments It should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider of building cost information to the real estate construction industry. For the investment analysis, the Company used market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company also considers area comparable properties and property condition when determining fair value. 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 following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2022. Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 345,858,492 $ - $ 344,422,973 $ 1,435,519 Equity securities 11,682,526 11,682,526 - - Loans held for sale 141,179,620 - - 141,179,620 Restricted assets (1) 1,217,308 - 1,217,308 - Restricted assets (2) 5,348,244 5,348,244 - - Cemetery perpetual care trust investments (1) 254,731 - 254,731 - Cemetery perpetual care trust investments (2) 3,605,162 3,605,162 - - Derivatives - loan commitments (3) 4,089,856 - - 4,089,856 Total assets accounted for at fair value on a recurring basis $ 513,235,939 $ 20,635,932 $ 345,895,012 $ 146,704,995 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (29,715 ) $ (29,715 ) $ - $ - Derivatives - put options (4) (13,888 ) (13,888 ) - - Derivatives - loan commitments (4) (1,382,979 ) - - (1,382,979 ) Total liabilities accounted for at fair value on a recurring basis $ (1,426,582 ) $ (43,603 ) $ - $ (1,382,979 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 259,287,603 $ - $ 257,264,255 $ 2,023,348 Equity securities 11,596,414 11,596,414 - - Loans held for sale 302,776,827 - - 302,776,827 Restricted assets (1) 1,601,688 - 1,601,688 - Restricted assets (2) 3,603,822 3,603,822 - - Cemetery perpetual care trust investments (1) 784,765 - 784,765 - Cemetery perpetual care trust investments (2) 3,302,480 3,302,480 - - Derivatives - loan commitments (3) 8,563,410 - - 8,563,410 Total assets accounted for at fair value on a recurring basis $ 591,517,009 $ 18,502,716 $ 259,650,708 $ 313,363,585 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (50,936 ) $ (50,936 ) $ - $ - Derivatives - put options (4) (4,493 ) (4,493 ) - - Derivatives - loan commitments (4) (1,547,895 ) - - (1,547,895 ) Total liabilities accounted for at fair value on a recurring basis $ (1,603,324 ) $ (55,429 ) $ - $ (1,547,895 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Assets and Liabilities Measured at Fair Value on A Recurring Basis Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2022 Technique Input(s) Value Value Average Loans held for sale $ 141,179,620 Market approach Investor contract pricing as a percentage of unpaid principal balance 69.9 % 106.1 % 99.8 % Derivatives - loan commitments (net) 2,706,877 Market approach Pull-through rate 65.0 % 95.0 % 82.2 % Initial-Value N/A N/A N/A Servicing 0 bps 153 bps 73 bps Fixed maturity securities available for sale 1,435,519 Broker quotes Pricing quotes $ 100.00 $ 111.11 $ 104.97 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2021 Technique Input(s) Value Value Average Loans held for sale $ 302,776,827 Market approach Investor contract pricing as a percentage of unpaid principal balance 95.0 % 109.0 % 103.0 % Derivatives - loan commitments (net) 7,015,515 Market approach Pull-through rate 66.0 % 95.0 % 81.0 % Initial-Value N/A N/A N/A Servicing 0 bps 148 bps 61 bps Fixed maturity securities available for sale 2,023,348 Broker quotes Pricing quotes $ 96.87 $ 111.11 $ 106.73 The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs Net Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2021 $ 7,015,515 $ 302,776,827 $ 2,023,348 Originations/purchases - 3,373,554,484 - Sales, maturities and paydowns - (3,549,405,402 ) (528,980 ) Transfer to mortgage loans held for investment - (51,691,213 ) - Total gains (losses): Included in earnings (4,308,638 )(1) 65,944,924 (1) 1,957 (2) Included in other comprehensive income - - (60,806 ) Balance - December 31, 2022 $ 2,706,877 $ 141,179,620 $ 1,435,519 (1) As a component of mortgage fee income on the consolidated statements of earnings (2) As a component of net investment income on the consolidated statements of earnings The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: Net Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2020 $ 10,128,610 $ 422,772,418 $ 2,201,175 Originations/purchases - 5,611,189,587 - Sales, maturities and paydowns - (5,900,076,766 ) (45,700 ) Transfer to mortgage loans held for investment - (201,951 ) - Total gains (losses): Included in earnings (3,113,095 )(1) 169,093,539 (1) 3,674 (2) Included in other comprehensive income - - (135,801 ) Balance - December 31, 2021 $ 7,015,515 $ 302,776,827 $ 2,023,348 (1) As a component of mortgage fee income on the consolidated statements of earnings (2) As a component of net investment income on the consolidated statements of earnings SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments The following table 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, 2022. Schedule of Fair Value Assets Measured on a Nonrecurring Basis Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 794,224 $ - $ - $ 794,224 Total assets accounted for at fair value on $ 794,224 $ - $ - $ 794,224 The following table 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, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 851,903 $ - $ - $ 851,903 Impaired real estate held for sale 2,000,000 - - 2,000,000 Total assets accounted for at fair value on $ 2,851,903 $ - $ - $ 2,851,903 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments 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 December 31, 2022 and 2021. 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, 2022: 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 held for investment Residential $ 90,290,776 $ - $ - $ 88,575,293 $ 88,575,293 Residential construction 172,139,077 - - 172,139,077 172,139,077 Commercial 45,694,074 - - 44,079,537 44,079,537 Mortgage loans held for investment, net $ 308,123,927 $ - $ - $ 304,793,907 $ 304,793,907 Policy loans 13,095,473 - - 13,095,473 13,095,473 Insurance assignments, net (1) 45,332,585 - - 45,332,585 45,332,585 Restricted assets (2) 1,731,469 - - 1,731,469 1,731,469 Cemetery perpetual care trust investments (2) 1,506,517 - - 1,506,517 1,506,517 Mortgage servicing rights, net 3,039,765 - - 3,927,877 3,927,877 Liabilities Bank and other loans payable $ (161,712,804 ) $ - $ - $ (161,712,804 ) $ (161,712,804 ) Policyholder account balances (3) (41,146,171 ) - - (42,181,089 ) (42,181,089 ) Future policy benefits - annuities (3) (106,637,094 ) - - (126,078,031 ) (126,078,031 ) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments 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, 2021: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 51,396,172 $ - $ - $ 55,159,167 $ 55,159,167 Residential construction 174,691,408 - - 174,691,408 174,691,408 Commercial 51,218,466 - - 51,008,709 51,008,709 Mortgage loans held for investment, net $ 277,306,046 $ - $ - $ 280,859,284 $ 280,859,284 Policy loans 13,478,214 - - 13,478,214 13,478,214 Insurance assignments, net (1) 46,946,590 - - 46,946,590 46,946,590 Restricted assets (2) 2,732,320 - - 2,732,320 2,732,320 Cemetery perpetual care trust investments (2) 1,823,533 - - 1,823,533 1,823,533 Mortgage servicing rights, net 53,060,455 - - 68,811,809 68,811,809 Liabilities Bank and other loans payable $ (251,286,927 ) $ - $ - $ (251,286,927 ) $ (251,286,927 ) Policyholder account balances (3) (42,939,055 ) - - (35,855,934 ) (35,855,934 ) Future policy benefits - annuities (3) (107,992,830 ) - - (116,215,717 ) (116,215,717 ) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: Mortgage Loans Held for Investment Residential — The estimated fair value of mortgage loans is determined through a combination of discounted cash flows (estimating expected future cash flows of payments and discounting them using current interest rates from single family mortgages) and considering pricing of similar loans that were sold recently. Residential Construction — These loans are primarily short in maturity. Accordingly, the estimated fair value is determined to be the carrying value. Commercial — The estimated fair value is determined by estimating expected future cash flows of payments and discounting them using current interest rates for commercial mortgages. Policy Loans Insurance Assignments, Net SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments Bank and Other Loans Payable Policyholder Account Balances and Future Policy Benefits-Annuities |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 18) Accumulated Other Comprehensive Income The following summarizes the changes in accumulated other comprehensive income: Schedule of Changes in Accumulated Other Comprehensive Income 2022 2021 December 31 2022 2021 Unrealized gains on fixed maturity securities available for sale $ (39,493,861 ) $ (7,323,241 ) Amounts reclassified into net earnings 162,173 805,510 Net unrealized gains before taxes (39,331,688 ) (6,517,731 ) Tax expense 8,259,656 1,368,721 Net (31,072,032 ) (5,149,010 ) Unrealized gains on restricted assets (1) (71,035 ) (23,250 ) Tax expense 17,695 5,792 Net (53,340 ) (17,458 ) Unrealized gains on cemetery perpetual care trust investments (1) (20,446 ) (11,114 ) Unrealized gains before taxes (20,446 ) (11,114 ) Tax expense 5,093 2,769 Net (15,353 ) (8,345 ) Unrealized gains for foreign currency translations adjustments - 2,835 Tax expense - (707 ) Net - 2,128 Other comprehensive income changes $ (31,140,725 ) $ (5,172,685 ) (1) Fixed maturity securities available for sale SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 The following is the accumulated balances of other comprehensive income as of December 31, 2022: Schedule of Accumulated Balances of Other Comprehensive Income Beginning Balance December 31, 2021 Change for the period Ending Balance December 31, Unrealized gains (losses) on fixed maturity securities $ 18,021,265 $ (31,072,032 ) $ (13,050,767 ) Unrealized gains (losses) on restricted assets (1) 40,192 (53,340 ) (13,148 ) Unrealized gains (losses) on cemetery perpetual 8,991 (15,353 ) (6,362 ) Other comprehensive income $ 18,070,448 $ (31,140,725 ) $ (13,070,277 ) (1) Fixed maturity securities available for sale The following is the accumulated balances of other comprehensive income as of December 31, 2021: Beginning Balance December 31, 2020 Change for the period Ending Balance December 31, 2021 Unrealized gains (losses) on fixed maturity securities $ 23,170,275 $ (5,149,010 ) $ 18,021,265 Unrealized gains (losses) on restricted assets (1) 57,650 (17,458 ) 40,192 Unrealized gains (losses) on cemetery perpetual 17,336 (8,345 ) 8,991 Foreign currency translation adjustments (2,128 ) 2,128 - Other comprehensive income $ 23,243,133 $ (5,172,685 ) $ 18,070,448 (1) Fixed maturity securities available for sale SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 19) Derivative Instruments The following table shows the fair value and notional amounts of derivative instruments. Schedule of Derivative Assets at Fair Value December 31, 2022 December 31, 2021 Balance Sheet Location Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives not designated as hedging instruments: Loan commitments Other assets and Other liabilities $ 453,371,808 $ 4,089,856 $ 1,382,979 $ 862,568,967 $ 8,563,410 $ 1,547,895 Call options Other liabilities 868,600 — 29,715 982,500 — 50,936 Put options Other liabilities 654,500 — 13,888 362,900 — 4,493 Total $ 454,894,908 $ 4,089,856 $ 1,426,582 $ 863,914,367 $ 8,563,410 $ 1,603,324 The following table presents the gains (losses) on derivatives. There were no gains or losses reclassified from accumulated other comprehensive income into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing. Schedule of Gains and Losses on Derivatives Years ended December 31 Derivative Classification 2022 2021 Loan commitments Mortgage fee income $ (4,308,638 ) $ (3,113,095 ) Call and put options Gains on investments and other assets $ 202,886 $ 160,410 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 20) Acquisitions Rivera Funerals, Cremations and Memorial Gardens On December 21, 2021, the Company, through its wholly-owned subsidiary, Memorial Estates Inc., completed a business combination transaction with Rivera Funerals, Cremations and Memorial Gardens. The mortuaries and cemetery are located in New Mexico. Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated December 21, 2021, Memorial Estates Inc. paid a net purchase price of $ 10,693,395 1,120,000 70,000 1,050,000 105,000 The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed Restricted assets (1) $ 618,006 Property and equipment (2) 6,255,836 Cemetery land and improvements 658,280 Goodwill 1,338,763 Other (3) 2,440,516 Total assets acquired 11,311,401 Cemetery perpetual care obligation (618,006 ) Other liabilities - holdback (1,120,000 ) Total liabilities assumed (1,738,006 ) Fair value of net assets acquired/consideration paid $ 9,573,395 (1) Includes $ 39,000 579,006 (2) At estimated fair value which is a Level 3 asset in the fair value hierarchy (3) Including $ 2,310,000 Rivera Funerals, Cremations and Memorial Gardens revenues and net earnings since the date of acquisition for the year ended December 31, 2021 were $ 137,386 14,892 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 20) Acquisitions Holbrook Mortuary On December 28, 2021, the Company, through its wholly-owned subsidiary, Memorial Mortuary Inc., completed a business combination transaction with Holbrook Mortuary located in Salt Lake City, Utah. Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated December 28, 2021, Memorial Mortuary Inc. paid a net purchase price of $ 3,051,747 The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Estimated Fair Values of Assets Acquired and Liabilities Assumed Property and equipment (1) $ 2,641,210 Goodwill 395,432 Other 15,105 Total assets acquired 3,051,747 Fair value of net assets acquired/consideration paid $ 3,051,747 (1) At estimated fair value which is a Level 3 asset in the fair value hierarchy Holbrook Mortuary’s revenues and net loss since the date of acquisition for the year ended December 31, 2021 were nil (98,531) SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Mortgage Servicing Rights | 21) Mortgage Servicing Rights The Company reports MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. The following table presents the MSR activity. Schedule of Mortgage Servicing Rights 2022 2021 December 31 2022 2021 Amortized cost: Balance before valuation allowance at beginning of year $ 53,060,455 $ 35,210,516 MSR additions resulting from loan sales 10,243,922 32,701,819 Amortization (1) (9,078,706 ) (14,851,880 ) Sale of MSRs (51,185,906 ) - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance before valuation allowance at year end $ 3,039,765 $ 53,060,455 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 year end $ - $ - Mortgage servicing rights, net $ 3,039,765 $ 53,060,455 Estimated fair value of MSRs at year end $ 3,927,877 $ 68,811,809 (1) Included in other expenses on the consolidated statements of earnings The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2022 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management. Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights Estimated MSR Amortization 2023 $ 316,449 2024 286,934 2025 260,259 2026 234,139 2027 211,523 Thereafter 1,730,461 Total $ 3,039,765 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 21) Mortgage Servicing Rights The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings. Schedule of Other Revenues 2022 2021 Years Ended December 31 2022 2021 Contractual servicing fees $ 15,792,105 $ 15,471,307 Late fees 398,754 321,337 Total $ 16,190,859 $ 15,792,644 The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio. Summary of Unpaid Principal Balances of the Servicing Portfolio December 31 2022 2021 Servicing UPB $ 360,023,384 $ 7,060,536,350 The following key assumptions were used in determining MSR value. Schedule of Assumptions Used in Determining MSR Value Prepayment Average Discount December 31, 2022 8.12 8.49 11.95 December 31, 2021 11.60 6.64 9.50 On October 31, 2022, the Company sold certain of its MSRs. The MSRs related to mortgage loans previously originated by the Company in aggregate unpaid principal amount of approximately $ 7.02 51,185,906 34,051,938 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Future Policy Benefits and Unpa
Future Policy Benefits and Unpaid Claims | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Future Policy Benefits and Unpaid Claims | 22) Future Policy Benefits and Unpaid Claims The Company reports future policy benefits and unpaid claims pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. The following table provides information regarding future policy benefits and unpaid claims and the related receivable from reinsurers. Schedule of Liability for Future Policy Benefits, by Product Segment December 31 2022 2021 Life $ 726,462,594 $ 698,366,477 Annuities 106,637,094 107,992,830 Policyholder account balances 41,146,171 42,939,055 Accident and health 603,526 629,302 Other policyholder funds 4,279,218 4,352,217 Reported but unpaid claims 5,651,030 4,887,934 Incurred but not reported claims 4,547,670 4,106,878 Gross future policy benefits and unpaid claims $ 889,327,303 $ 863,274,693 Receivable from reinsurers Life 10,600,613 10,482,428 Annuities 4,225,873 4,082,877 Accident and health 79,467 88,474 Reported but unpaid claims 110,985 177,829 Incurred but not reported claims 17,000 19,000 Total receivable from reinsurers 15,033,938 14,850,608 Net future policy benefits and unpaid claims $ 874,293,365 $ 848,424,085 Net unpaid claims $ 10,070,715 $ 8,797,983 The following table provides a rollforward of the Company’s liability for reported but unpaid claims and incurred but not reported claims, net of the related receivable from reinsurers. Summary of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims Life Annuities Accident and Health Total Balance at 12/31/2020 $ 10,286,319 $ 1,111,441 $ 17,000 $ 11,414,760 Incurred 63,247,616 (1) 14,036,473 (2) 230,395 (3) 77,514,484 Settled (65,518,834 ) (14,469,536 ) (142,891 ) (80,131,261 ) Balance at 12/31/2021 8,015,101 678,378 104,504 8,797,983 Incurred 59,377,962 (1) 13,987,576 (2) 40,744 (3) 73,406,282 Settled (57,988,800 ) (14,016,502 ) (128,248 ) (72,133,550 ) Balance at 12/31/2022 $ 9,404,263 $ 649,452 $ 17,000 $ 10,070,715 (1) See death benefits on the consolidated statements of earnings (2) Included in increase in future benefits on the consolidated statements of earnings (3) Included in surrender and other policy benefits on the consolidated statements of earnings SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | 23) Revenues from Contracts with Customers The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers. Contracts with Customers Information about Performance Obligations and Contract Balances The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The total contract liability for future obligations is included in deferred pre-need cemetery and mortuary contract revenues on the consolidated balance sheets and, as of December 31, 2022 and 2021, the balances were $ 16,226,836 14,508,022 The Company’s three types of future obligations are as follows: Pre-need Merchandise and Service Revenue 15,289,901 13,722,348 At-need Specialty Merchandise Revenue 936,935 785,674 Deferred Pre-need Land Revenue 10 nil nil Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. A transfer of goods and services does not fulfill an obligation and revenue remains deferred. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2022) $ 5,298,636 $ - $ 14,508,022 Closing (12/31/2022) 5,392,779 - 16,226,836 Increase/(decrease) 94,143 - 1,718,814 Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2021) $ 4,119,988 $ - $ 13,080,179 Closing (12/31/2021) 5,298,636 - 14,508,022 Increase/(decrease) 1,178,648 - 1,427,843 (1) Included in Receivables, net on the consolidated balance sheets The following table disaggregates the opening and closing balances of the Company’s contract balances. Schedule of Opening and Closing Balances of the Assets and Liabilities Contract Balances Contract Asset Contract Liability Pre-need merchandise and services $ - $ 13,722,348 At-need specialty merchandise - 785,674 Pre-need land sales - - Opening (1/1/2022) $ - $ 14,508,022 Pre-need merchandise and services $ - $ 15,289,901 At-need specialty merchandise - 936,935 Pre-need land sales - - Closing (12/31/2022) $ - $ 16,226,836 Contract Balances Contract Asset Contract Liability Pre-need merchandise and services $ - $ 12,545,753 At-need specialty merchandise - 534,426 Pre-need land sales - - Opening (1/1/2021) $ - $ 13,080,179 Pre-need merchandise and services $ - $ 13,722,348 At-need specialty merchandise - 785,674 Pre-need land sales - - Closing (12/31/2021) $ - $ 14,508,022 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers The amount of revenue recognized for the years ended December 31, 2022 and 2021 that was included in the opening contract liability balance was $ 4,588,290 4,528,646 The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Disaggregation of Revenue The following table disaggregates revenue for the Company’s cemetery and mortuary contracts. Schedule of Revenues of the Cemetery and Mortuary Contracts 2022 2021 Years Ended December 31 2022 2021 Major goods/service lines At-need $ 21,283,237 $ 16,220,541 Pre-need 5,710,618 7,776,772 Net mortuary and cemetery sales $ 26,993,855 $ 23,997,313 Timing of Revenue Recognition Goods transferred at a point in time $ 16,412,963 $ 16,793,439 Services transferred at a point in time 10,580,892 7,203,874 Net mortuary and cemetery sales $ 26,993,855 $ 23,997,313 Significant Judgments and Estimates The Company’s cemetery and mortuary segment recognizes revenue on future performance obligations when goods are delivered and when services are performed and is not determined by the terms or payments of the contract as long as any good or service is paid in full prior to delivery. Prices are determined based on the market at the time a contract is created. Goods or services are not partially completed. There are no significant judgements, estimations or allocation methods when revenue should be recognized. Practical Expedients The Company has not elected to use any of the practical expedients under ASC 606. Contract Costs The Company’s cemetery and mortuary segment defers certain costs associated with obtaining a contract on future obligations. Pre-need Merchandise and Service Revenue At-need Specialty Merchandise Revenue SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers Deferred Pre-need Land Revenue The following table disaggregates contract costs that are included in deferred policy and pre-need contract acquisition costs on the consolidated balances sheets. Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information 2022 2021 Years Ended December 31 2022 2021 Pre-need merchandise and services $ 3,780,173 $ 3,688,579 At-need specialty merchandise 35,371 29,688 Pre-need land sales - - Deferred policy and pre-need contract acquisition costs $ 3,815,544 $ 3,718,267 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 24) Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines if a contract is a lease at the inception of the contract. At the commencement date of a lease, the Company measures the lease liability at the present value of the lease payments over the lease term, discounted using the discount rate for the lease. The Company uses the rate implicit in the lease, if available, otherwise the Company uses its incremental borrowing rate. Also, at the commencement date of a lease, the Company measures the cost of the related right-of-use asset which consists of the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct costs incurred by the Company. Information about the Nature of Leases and Subleases The Company leases office space and equipment from third-parties under various non-cancelable agreements. The Company has operating leases for office space for its segments in areas where it conducts business. The Company subleases some of this office space. The Company also has finance leases for certain equipment, such as copy machines and postage machines. The Company does not have any lease agreements with variable lease payments. The Company has not included any options to extend or terminate leases in the recognition of the right-of-use assets or lease liabilities because of the uncertainty that they will be exercised. No residual value guarantees have been provided to the Company. The Company does not have any restrictions or covenants imposed by leases. Leases that have not Commenced The Company does not have any leases that have not commenced that create significant rights or obligations for the Company. Related Party Lease Transactions The Company does not have any related party lease transactions that require disclosure as of December 31, 2022. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 24) Leases Short-term Leases The Company made an accounting policy election not to apply the recognition requirements of ASC 842 to short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying assets that the lessee is reasonably certain to exercise. Significant Judgments and Assumptions The Company does not use any significant judgments or assumptions regarding the determination of whether a contract contains a lease; the allocation of the consideration in a contract between lease and nonlease components; or the determination of the discount rates for the leases. The following table presents the Company’s total lease cost recognized in earnings, amounts capitalized as right-of-use assets and cash flows from lease transactions. Schedule of Lease Cost Recognized in Earnings 2022 2021 Years Ended December 31 2022 2021 Lease Cost Finance lease cost: Amortization of right-of-use assets (1) $ 30,163 $ 41,925 Interest on lease liabilities (2) 2,773 4,713 Operating lease cost (3) 4,498,894 4,896,315 Short-term lease cost (3)(4) 1,135,003 167,551 Sublease income (3) (209,455 ) (275,038 ) Total lease cost $ 5,457,378 $ 4,835,466 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,250,630 $ 4,697,819 Operating cash flows from finance leases 2,773 4,713 Financing cash flows from finance leases 31,685 42,184 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 2,054,534 $ 5,216,048 Finance leases - - Weighted-average remaining lease term (in years) Finance leases 1.25 2.07 Operating leases 3.46 6.04 Weighted-average discount rate Finance leases 5.78 % 5.74 % Operating leases 4.50 % 4.14 % (1) Included in Depreciation on property and equipment on the consolidated statements of earnings (2) Included in Interest expense on the consolidated statements of earnings (3) Included in Rent and rent related expenses on the consolidated statements of earnings (4) Includes leases with a term of 12 months or less SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 24) Leases The following table presents the maturity analysis of the Company’s lease liabilities. Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases Finance Leases Operating Leases Lease payments due in: 2023 $ 27,220 $ 3,929,227 2024 4,354 3,328,744 2025 692 2,166,880 2026 - 1,454,848 2027 - 340,112 Thereafter - 324,548 Total undiscounted lease payments 32,266 11,544,359 Less: Discount on cash flows (1,184 ) (947,888 ) Present value of lease liabilities $ 31,082 $ 10,596,471 The following table presents the Company’s right-of-use assets and lease liabilities. Schedule of Right-of-Use Assets and Lease Liabilities Year Ended December 31 Balance Sheet Location 2022 2021 Operating Leases Right-of-use assets Other assets $ 9,987,699 $ 12,483,638 Right-of-use assets Other assets $ 9,987,699 $ 12,483,638 Lease liabilities Other liabilities and accrued expenses $ 10,596,471 $ 12,939,691 Lease liabilities Other liabilities and accrued expenses $ 10,596,471 $ 12,939,691 Finance Leases Right-of-use assets $ 228,221 $ 235,867 Accumulated amortization (200,178 ) (177,660 ) Right-of-use assets, net Property and equipment, net $ 28,043 $ 58,207 Right-of-use assets, net Property and equipment, net $ 28,043 $ 58,207 Lease liabilities Bank and other loans payable $ 31,082 $ 62,767 Lease liabilities Bank and other loans payable $ 31,082 $ 62,767 The Company is also a lessor and has operating lease agreements with various tenants that lease its commercial and residential properties. See Note 2 for information about the Company’s real estate held for investment. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
General Overview of Business | General Overview of Business Security National Financial Corporation and its wholly owned subsidiaries (the “Company”) operate in three reportable business segments: life insurance, cemetery and mortuary, and mortgages. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products and accident and health insurance marketed primarily in the states located in western, mid-western and southern regions of the United States. The cemetery and mortuary segment of the Company consists of eight mortuaries and five cemeteries in Utah, one cemetery in California, and four mortuaries and one cemetery in New Mexico. The mortgage segment is an approved government and conventional lender that originates and underwrites residential and commercial loans for new construction, existing homes and real estate projects primarily in Florida, Nevada, Texas, and Utah. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates Management of the Company has made a number of estimates and assumptions related to the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with GAAP. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the value of mortgage loans foreclosed to real estate held for investment; those used in determining the liability for future policy benefits and unearned revenue; those used in determining the estimated future costs for pre-need sales; those used in determining the value of mortgage servicing rights; those used in determining allowances for loan losses for mortgage loans held for investment; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. |
Investments | Investments The Company’s management determines the appropriate classifications of investments in fixed maturity securities and equity securities at the acquisition date and re-evaluates the classifications at each balance sheet date. Fixed maturity securities available for sale Equity securities SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Mortgage loans held for investment Real estate held for investment Real estate held for sale Other investments and policy loans Accrued investment income Gains and losses on investments (except for equity securities carried at fair value through net earnings) |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Loans Held for Sale | Loans Held for Sale Accounting Standards Codification (“ASC”) No. 825, “Financial Instruments”, allows for the option to report certain financial assets and liabilities at fair value initially and at subsequent measurement dates with changes in fair value included in earnings. The option may be applied instrument by instrument, but it is irrevocable. The Company elected the fair value option for loans held for sale. The Company believes the fair value option most closely aligns the timing of the recognition of gains and costs. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Electing fair value also reduces certain timing differences and better matches changes in the fair value of these assets with changes in the fair value of the related derivatives used for these assets. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale. |
Mortgage Fee Income | Mortgage Fee Income Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination of mortgage loans held for sale. All revenues and costs are recognized when the mortgage loan is funded and any changes in fair value are shown as a component of mortgage fee income. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale. The Company, through its mortgage subsidiaries, sells mortgage loans to third-party investors without recourse unless defects are identified in the representations and warranties made at loan sale. It may be required, however, to repurchase a loan or pay a fee instead of repurchase under certain events, which include the following: ● Failure to deliver original documents specified by the investor, ● The existence of misrepresentation or fraud in the origination of the loan, ● The loan becomes delinquent due to nonpayment during the first several months after it is sold, ● Early pay-off of a loan, as defined by the agreements, ● Excessive time to settle a loan, ● Investor declines purchase, and ● Discontinued product and expired commitment. Loan purchase commitments generally specify a date 30 to 45 days after delivery upon which the underlying loans should be settled. Depending on market conditions, these commitment settlement dates can be extended at a cost to the Company. It is the Company’s policy to cure any documentation problems regarding such loans at a minimal cost for up to a six-month time period and to pursue efforts to enforce loan purchase commitments from third-party investors concerning the loans. The Company believes that six months allows adequate time to remedy any documentation issues, to enforce purchase commitments, and to exhaust other alternatives. Remedial methods include the following: ● Research reasons for rejection, ● Provide additional documents, ● Request investor exceptions, ● Appeal rejection decision to purchase committee, and ● Commit to secondary investors. Once purchase commitments have expired and other alternatives to remedy are exhausted, which could be earlier than the six-month time period, the loans are repurchased and transferred to the long-term investment portfolio at the lower of cost or fair value and previously recorded mortgage fee income that was to be received from a third-party investor is written off against the loan loss reserve. |
Determining Fair Value | Determining Fair Value Cost for loans held for sale is equal to the amount paid to the warehouse bank and the amount originally funded by the Company. Fair value is often difficult to determine and may contain significant unobservable inputs, but is based on the following: ● For loans that are committed, the Company uses the commitment price. ● For loans that are non-committed that have an active market, the Company uses the market price. ● For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product. ● For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying real estate collateral, estimated future cash flows, and the loan interest rate. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The appraised value of the real estate underlying the original mortgage loan adds support to the Company’s determination of fair value because if the loan becomes delinquent, the Company has sufficient value to collect the unpaid principal balance or the carrying value of the loan, thus minimizing credit losses. The majority of loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale. |
Loan Loss Reserve | Loan Loss Reserve The loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on loans sold. The Company may be required to reimburse third-party investors for costs associated with early payoff of loans within six months of origination of such loans and to repurchase loans where there is a default in any of the first four monthly payments to the investors or, in lieu of repurchase, to pay a negotiated fee to the investors. The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities. Upon completion of a transfer that satisfies the conditions to be accounted for as a sale, the Company initially measures at fair value liabilities incurred in a sale relating to any guarantee or recourse provisions. The Company accrues a monthly allowance for indemnification losses to investors based on total production. This estimate is based on the Company’s historical experience and is included as a component of mortgage fee income. Subsequent updates to the recorded liability from changes in assumptions are recorded in selling, general and administrative expenses as a component of provision for loan loss reserve. The estimated liability for indemnification losses is included in other liabilities and accrued expenses. The loan loss reserve analysis involves mortgage loans that have been sold to third-party investors, which were believed to have met investor underwriting guidelines at the time of sale, 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 further described as follows: Make whole demand Repurchase demand Indemnification demand The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date. Additional information related to the Loan Loss Reserve is included in Note 3. |
Restricted Assets | Restricted Assets Restricted assets are assets held in a trust account for future mortuary services and merchandise and consist of cash and cash equivalents; participations in mortgage loans held for investment with Security National Life Insurance Company (“Security National Life”); mutual funds carried at estimated fair value; equity securities carried at estimated fair value; and a surplus note with Security National Life (which is eliminated in consolidation). Restricted assets also include escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company funded its medical benefit safe-harbor limit based on the qualified direct costs, and has included this amount as a component of restricted cash. |
Cemetery Perpetual Care Trust Investments | Cemetery Perpetual Care Trust Investments Cemetery endowment care trusts have been set up for five of the seven cemeteries owned by the Company. Under endowment care arrangements a portion of the price for each lot sold is withheld and invested in a portfolio of investments similar to those described in the prior paragraph. The earnings stream from the investments is designed to fund future maintenance and upkeep of the cemetery. |
Cemetery Land and Improvements | Cemetery Land and Improvements The development of a cemetery involves not only the initial acquisition of raw land but also the installation of roads, water lines, landscaping and other costs to establish a marketable cemetery lot. The costs of developing the cemetery are shown as an asset on the balance sheet. The amount on the balance sheet is reduced by the total cost assigned to the development of a particular lot when the criterion for recognizing a sale of that lot is met. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired Commissions and other costs, net of commission and expense allowances for reinsurance ceded, that vary with and are primarily related to the production of new insurance business have been deferred. Deferred policy acquisition costs (“DAC”) for traditional life insurance are amortized over the premium paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For interest-sensitive insurance products, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges, investment, mortality and expense margins. This amortization is adjusted when estimates of current or future gross profits to be realized from a group of products are reevaluated. Deferred acquisition costs are written off when policies lapse or are surrendered. When accounting for DAC, the Company considers internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract are accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract are written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract are accounted for as a continuation of the replaced contract. Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized similar to deferred policy acquisition costs. |
Premium Deficiency and Loss Recognition Testing | Premium Deficiency and Loss Recognition Testing At least annually, the Company tests the adequacy of the net benefit reserves (liability for future policy benefits, net of DAC and VOBA) recorded for life insurance and annuity products. The Company tests for recoverability by using the Company’s current best-estimate assumptions as to policyholder mortality, persistency, maintenance expenses and invested asset returns. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized DAC and VOBA assets. These cash flows consist primarily of premium income, less benefits and expenses. If the current contract liabilities plus the present value of future premiums is greater than the sum of the present values of future policy benefits, commissions, and expenses plus the current DAC and VOBA less unearned premium reserve balances, then the capitalized assets are deemed recoverable. The present values are calculated using the best estimate of the after tax net investment earned rate. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage Servicing Rights (“MSR”) arise from contractual agreements between the Company and third-party investors (or their agents) when mortgage loans are sold. Under these contracts, the Company is obligated to retain and provide loan servicing functions on loans sold, in exchange for fees and other remuneration. The servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate owned and property dispositions. The total residential mortgage loans serviced for others consist primarily of agency conforming fixed-rate mortgage loans. The value of MSRs is derived from the net cash flows associated with the servicing contracts. The Company receives a servicing fee of generally about 0.25 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 15 Interest rate risk, prepayment risk, and default risk are inherent risks in MSR valuation. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as rates decline. A significant decrease in rates beyond expectation could cause a decline in the value of the MSR. On the contrary, if rates increase borrowers are less likely to refinance or prepay their mortgage, which extends the duration of the loan and MSR values are likely to rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value. 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. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies 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. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets which range from three forty years |
Long-lived Assets | Long-lived Assets Long-lived assets to be held and used, including property and equipment and real estate held for investment, are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset, and long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of long-lived assets has been recognized in the accompanying financial statements except for certain impairments of real estate held for sale as disclosed in Note 2. |
Derivative Instruments | Derivative Instruments Mortgage Banking Derivatives Loan Commitments The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a 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 loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded or the loan application is denied or withdrawn within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment. 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 loan commitments and are updated periodically to reflect the most current data. The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of 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 loan commitment is issued and is shown net of expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Forward Sale Commitments The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments. The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the consolidated balance sheets. Call and Put Option Derivatives The Company uses a strategy of selling “out of the money” call options on its 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 uses the strategy of selling put options as a means of generating cash or purchasing equity securities at lower than current market prices. 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 options is adjusted to fair value at each reporting date. In the event a call option is exercised, the Company sells the equity security at a favorable price enhanced by the value of the option that was sold. If the option expires unexercised, the Company recognizes a gain from the expired option. In the event a put option is exercised, the Company acquires an equity security at the strike price of the option reduced by the value received from the sale of the put option. The equity security is then treated as a normal equity security in the Company’s portfolio. The net changes in the fair value of call and put options are shown in current earnings as a component of gains (losses) on investments and other assets. Call and put options are shown in other liabilities and accrued expenses on the consolidated balance sheets. |
Allowance for Doubtful Accounts and Loan Losses and Impaired Loans | Allowance for Doubtful Accounts and Loan Losses and Impaired Loans The Company records an allowance and recognizes an expense for potential losses from mortgage loans held for investment, other investments and receivables in accordance with GAAP. Receivables are the result of cemetery and mortuary operations, mortgage loan operations and life insurance operations. The allowance 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 provides for losses on its mortgage loans held for investment through an allowance for loan losses (a contra-asset account). 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 similar receivables. The second component is based upon individual evaluation of loans that are determined to be impaired. As a practical expedient, 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 2 for additional information. In addition, when a mortgage loan is past due more than 90 days, the Company does not accrue any interest income. When a loan becomes delinquent, the Company proceeds to foreclose on the real estate and 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 real estate held for investment or held for sale. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The allowance for losses on mortgage loans held for investment 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. For purposes of determining the allowance for losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows: Commercial Residential Residential construction (including land acquisition and development) |
Future Policy Benefits and Unpaid Claims | Future Policy Benefits and Unpaid Claims Future policy benefit reserves for traditional life insurance are computed using a net level method, including assumptions as to investment yields, mortality, morbidity, withdrawals, and other assumptions based on the life insurance subsidiaries’ experience, modified as necessary to give effect to anticipated trends and to include provisions for possible unfavorable deviations. Such liabilities are, for some plans, graded to equal statutory values or cash values at or prior to maturity, which are deemed a reasonable equivalent for GAAP. The range of assumed interest rates for all traditional life insurance policy reserves was 4 10 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 3 6.5 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies The Company records an unpaid claims liability for claims in the course of settlement equal to the death benefit amount less any reinsurance recoverable amount for claims reported. There is also an unpaid claims liability for claims incurred but not reported. This liability is based on the historical experience of the net amount of claims that were reported in reporting periods subsequent to the reporting period when claims were incurred. |
Participating Insurance | Participating Insurance Participating business constituted 2 |
Recognition of Insurance Premiums and Other Considerations | Recognition of Insurance Premiums and Other Considerations Premiums and other consideration for traditional life insurance products (which include those products with fixed and guaranteed premiums and benefits and consist principally of whole life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies) are recognized as revenues when due from policyholders. Premiums and other consideration for interest-sensitive insurance policies (which include universal life policies, interest-sensitive life policies, deferred annuities, and annuities without life contingencies) are recognized when earned and consist of amounts assessed against policyholder account balances during the period for policy administration charges and surrender charges. |
Reinsurance | Reinsurance The Company follows the procedure of reinsuring risks in excess of $ 100,000 The Company entered into coinsurance agreements with unaffiliated insurance companies under which the Company assumed 100 Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Expense allowances received in connection with reinsurance ceded are accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. |
Pre-need Sales and Costs | Pre-need Sales and Costs Pre-need contract sales of funeral services and caskets Sales of cemetery interment rights (cemetery burial property) Pre-need contract sales of cemetery merchandise (primarily markers and vaults) SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 1) Significant Accounting Policies Pre-need contract sales of cemetery services (primarily merchandise delivery, installation fees and burial opening and closing fees) Prearranged funeral and pre-need cemetery customer acquisition costs Revenues and costs for at-need sales are recorded when a valid contract exists, the services are performed, collection is reasonably assured and there are no significant performance obligations remaining. The Company, through its cemetery and mortuary operations, provides guaranteed funeral arrangements wherein a prospective customer can receive future goods and services at guaranteed prices. To accomplish this, the Company, through its life insurance operations, sells to the customer an increasing benefit life insurance policy that is assigned to the mortuaries. If, at the time of need, the policyholder/potential mortuary customer utilizes one of the Company’s facilities, the guaranteed funeral arrangement contract that has been assigned will provide the funeral goods and services at the contracted price. The increasing life insurance policy will cover the difference between the original contract prices and current prices. Risks may arise if the difference cannot be fully met by the life insurance policy. However, management believes that given current inflation rates and related price increases of goods and services, the risk of exposure is minimal. |
Goodwill | Goodwill Previous acquisitions have been accounted for as purchases under which assets acquired and liabilities assumed were recorded at their fair values with the excess purchase price recognized as goodwill. The Company evaluates annually or when changes in circumstances warrant the recoverability of goodwill and if there is a decrease in value, the related impairment is recognized as a charge against income. No impairment of goodwill has been recognized in the accompanying financial statements. |
Other Intangibles | Other Intangibles Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. The Company engages a third-party valuation firm to analyze the value of the intangible assets that result from significant acquisitions. The value of the intangible assets that result from these acquisitions are included in Other Assets and are determined using the income approach, relying on a relief from the royalty method. |
Income Taxes | Income Taxes Income taxes include taxes currently payable plus deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the temporary differences in the financial reporting basis and tax basis of assets and liabilities and operating loss carry-forwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax penalties are included as a component of income tax expense. |
Earnings Per Common Share | Earnings Per Common Share The Company computes earnings per share which requires presentation of basic and diluted earnings per share. Basic earnings per equivalent Class A common share are computed by dividing net earnings by the weighted-average number of Class A common shares outstanding during each year presented, after the effect of the assumed conversion of Class C common stock to Class A common stock. Diluted earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding during the year used to compute basic earnings per share plus dilutive potential incremental shares by application of the treasury stock method. Basic and diluted earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. |
Stock Based Compensation | Stock Based Compensation The cost of employee services received in exchange for an award of equity instruments is recognized in the financial statements and is measured based on the fair value on the grant date of the award. The fair value of stock options is calculated using the Black Scholes Option Pricing Model. Stock option compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award and is included in personnel expenses on the consolidated statements of earnings. |
Concentration of Credit Risk | Concentration of Credit Risk For a description of the concentration risk regarding available for sale debt securities, mortgage loans held for investment and real estate held for investment, refer to Note 2, and for receivables from reinsurers, refer to Note 10 of the Notes to Consolidated Financial Statements. |
Advertising | Advertising The Company expenses advertising costs as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2023 ASU No. 2016-13: “Financial Instruments – Credit Losses (Topic 326)” 671,505 Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU Amount Mortgage loans held for investment: Residential $ (192,607 ) Residential construction 301,830 Commercial 555,806 Total 665,029 Restriced assets - mortgage loans held for investment: Residential construction 3,463 Cemetery perpetual care trust investments - mortgage loans held for investment: Residential construction 3,013 Grand Total 671,505 Accounting Standards Issued But Not Yet Adopted ASU No. 2018-12: “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU | Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU Amount Mortgage loans held for investment: Residential $ (192,607 ) Residential construction 301,830 Commercial 555,806 Total 665,029 Restriced assets - mortgage loans held for investment: Residential construction 3,463 Cemetery perpetual care trust investments - mortgage loans held for investment: Residential construction 3,013 Grand Total 671,505 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | The Company’s investments as of December 31, 2022 are summarized as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 93,182,210 $ 180,643 $ (2,685,277 ) $ 90,677,576 Obligations of states and political subdivisions 6,675,071 13,869 (458,137 ) 6,230,803 Corporate securities including public utilities 229,141,544 1,909,630 (11,930,773 ) 219,120,401 Mortgage-backed securities 33,501,686 168,700 (4,100,674 ) 29,569,712 Redeemable preferred stock 250,000 10,000 - 260,000 Total fixed maturity securities available for sale $ 362,750,511 $ 2,282,842 $ (19,174,861 ) $ 345,858,492 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Total equity securities at estimated fair value $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Mortgage loans held for investment at amortized cost: Residential $ 93,355,623 Residential construction 172,516,125 Commercial 46,311,955 Less: Unamortized deferred loan fees, net (1,746,605 ) Less: Allowance for loan losses (1,970,311 ) Less: Net discounts (342,860 ) Total mortgage loans held for investment $ 308,123,927 Real estate held for investment - net of accumulated depreciation: Residential $ 38,437,960 Commercial 152,890,656 Total real estate held for investment $ 191,328,616 Real estate held for sale: Residential $ 11,010,029 Commercial 151,553 Total real estate held for sale $ 11,161,582 Other investments and policy loans at amortized cost: Policy loans $ 13,095,473 Insurance assignments 46,942,536 Federal Home Loan Bank stock (1) 2,600,300 Other investments 9,479,798 Less: Allowance for doubtful accounts (1,609,951 ) Total policy loans and other investments $ 70,508,156 Accrued investment income $ 10,299,826 Total investments $ 948,963,125 (1) Includes $ 938,500 1,661,800 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company’s investments as of December 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 22,307,736 $ 578,567 $ - $ 22,886,303 Obligations of states and political subdivisions 4,649,917 212,803 (1,989 ) 4,860,731 Corporate securities including public utilities 174,711,061 21,791,370 (353,668 ) 196,148,763 Mortgage-backed securities 34,365,382 905,159 (161,332 ) 35,109,209 Redeemable preferred stock 269,214 13,383 - 282,597 Total fixed maturity securities available for sale $ 236,303,310 $ 23,501,282 $ (516,989 ) $ 259,287,603 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Total equity securities at estimated fair value $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Mortgage loans held for investment at amortized cost: Residential $ 53,533,712 Residential construction 175,117,783 Commercial 51,683,022 Less: Unamortized deferred loan fees, net (918,586 ) Less: Allowance for loan losses (1,699,902 ) Less: Net discounts (409,983 ) Total mortgage loans held for investment $ 277,306,046 Real estate held for investment - net of accumulated depreciation: Residential $ 41,972,462 Commercial 155,393,335 Total real estate held for investment $ 197,365,797 Real estate held for sale: Residential $ 1,190,602 Commercial 2,540,698 Total real estate held for sale $ 3,731,300 Other investments and policy loans at amortized cost: Policy loans $ 13,478,214 Insurance assignments 48,632,808 Federal Home Loan Bank stock (1) 2,547,100 Other investments 4,983,251 Less: Allowance for doubtful accounts (1,686,218 ) Total policy loans and other investments $ 67,955,155 Accrued investment income $ 6,313,012 Total investments $ 823,555,327 (1) Includes $ 905,700 1,641,400 |
Schedule of Fair Value of Fixed Maturity Securities | The following table summarizes unrealized losses on fixed maturities securities available for sale that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 U.S. Treasury securities and obligations of U.S. Government agencies $ 2,685,277 $ 79,400,753 $ - $ - $ 2,685,277 $ 79,400,753 Obligations of States and Political Subdivisions 378,067 5,467,910 80,070 429,020 458,137 5,896,930 Corporate Securities 10,935,114 162,995,969 995,659 5,781,822 11,930,773 168,777,791 Mortgage and other asset-backed securities 2,884,731 19,909,907 1,215,943 6,978,745 4,100,674 26,888,652 Total unrealized losses $ 16,883,189 $ 267,774,539 $ 2,291,672 $ 13,189,587 $ 19,174,861 $ 280,964,126 At December 31, 2021 Obligations of States and Political Subdivisions $ 1,989 $ 548,715 $ - $ - $ 1,989 $ 548,715 Corporate Securities 73,507 4,638,750 280,161 3,771,813 353,668 8,410,563 Mortgage and other asset-backed securities 72,952 7,934,760 88,380 1,582,804 161,332 9,517,564 Total unrealized losses $ 148,448 $ 13,122,225 $ 368,541 $ 5,354,617 $ 516,989 $ 18,476,842 |
Schedule of Earnings on Fixed Maturity Securities | The following table presents a rollforward of the Company’s cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale. Schedule of Earnings on Fixed Maturity Securities 2022 2021 Balance of credit-related OTTI at January 1 $ 264,977 $ 370,975 Additions for credit impairments recognized on: Securities not previously impaired - 39,502 Securities previously impaired - - Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (realized) (39,502 ) (145,500 ) Securities due to an increase in expected cash flows - - Balance of credit-related OTTI at December 31 $ 225,475 $ 264,977 |
Schedule of Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Due in 1 year $ - $ - Due in 2-5 years 139,431,212 135,093,083 Due in 5-10 years 87,552,213 84,011,366 Due in more than 10 years 102,015,400 96,924,331 Mortgage-backed securities 33,501,686 29,569,712 Redeemable preferred stock 250,000 260,000 Total $ 362,750,511 $ 345,858,492 |
Schedule of Gain (Loss) on Investments | The following table presents the net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments from investments and other assets. Schedule of Gain (Loss) on Investments 2022 2021 Years Ended December 31 2022 2021 Fixed maturity securities available for sale: Gross realized gains $ 205,949 $ 984,740 Gross realized losses (43,776 ) (139,728 ) Other than temporary impairments - (39,502 ) Equity securities: Gains (losses) on securities sold (10,519 ) 390,597 Unrealized gains (losses) on securities held at the (2,109,556 ) 2,732,130 Mortgage loans held for investment: Gross realized gains - 1,890,826 Gross realized losses - (4,190 ) Real estate held for investment and sale: Gross realized gains 1,239,332 2,347,924 Gross realized losses (825,593 ) (2,426,428 ) Other assets, including call and put option derivatives: Gross realized gains 686,703 547,785 Gross realized losses - (58,522 ) Total $ (857,460 ) $ 6,225,632 |
Schedule of Major Categories of Net Investment Income | Information regarding sales of fixed maturity securities available for sale is presented as follows. Schedule of Major Categories of Net Investment Income 2022 2021 Years Ended December 31 2022 2021 Proceeds from sales $ 3,091,105 $ 2,896,351 Gross realized gains 24,281 208,698 Gross realized losses (32,976 ) (4,046 ) SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments Major categories of net investment income were as follows: 2022 2021 Years Ended December 31 2022 2021 Fixed maturity securities available for sale $ 12,395,764 $ 10,769,979 Equity securities 511,118 446,337 Mortgage loans held for investment 34,949,763 28,758,614 Real estate held for investment and sale 14,563,269 12,334,989 Policy loans 932,362 940,890 Insurance assignments 18,112,840 19,062,052 Other investments 518,865 131,145 Cash and cash equivalents 1,666,945 235,470 Gross investment income 83,650,926 72,679,476 Investment expenses (17,453,334 ) (14,414,793 ) Net investment income $ 66,197,592 $ 58,264,683 |
Schedule of Commercial Real Estate Investment | The Company’s commercial real estate held for investment is summarized as follows: Schedule of Commercial Real Estate Investment Net Ending Balance Total Square Footage December 31 December 31 2022 2021 2022 2021 Utah (1) $ 147,627,946 $ 150,105,948 625,920 625,920 Louisiana 2,380,847 2,426,612 31,778 31,778 Mississippi 2,881,863 2,860,775 19,694 19,694 $ 152,890,656 $ 155,393,335 677,392 677,392 (1) Includes Center53 phase 1 and phase 2 The Company’s commercial real estate held for sale is summarized as follows: Net Ending Balance Total Square Footage December 31 December 31 2022 2021 2022 2021 Kansas $ - $ 2,000,000 - 222,679 Louisiana - 389,145 - 2,872 Mississippi (1) 151,553 151,553 - - $ 151,553 $ 2,540,698 - 225,551 (1) Approximately 93 acres of undeveloped land |
Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments | The following is a maturity analysis of the annual undiscounted cash flows of the operating lease payments to be received. Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments 2023 $ 11,650,181 2024 10,310,144 2025 9,933,831 2026 8,282,769 2027 6,720,796 Thereafter 50,530,849 Total $ 97,428,570 |
Schedule of Residential Real Estate Investment | The Company’s residential real estate held for investment is summarized as follows: Schedule of Residential Real Estate Investment Net Ending Balance December 31 2022 2021 Utah (1) $ 38,437,960 $ 41,686,281 Washington (2) - 286,181 $ 38,437,960 $ 41,972,462 (1) Including subdivision land developments (2) Improved residential lots The following table presents additional information regarding the Company’s subdivision land developments in Utah. December 31 2022 2021 Lots available for sale 80 67 Lots to be developed 1,131 548 Ending Balance $ 38,241,705 $ 41,479,434 The Company’s residential real estate held for sale is summarized as follows: 2022 2021 Net Ending Balance December 31 2022 2021 Utah $ 11,010,029 $ - Nevada - 979,640 Texas - 200,962 Ohio - 10,000 Real estate held for sale $ 11,010,029 $ 1,190,602 |
Schedule of Real Estate Owned and Occupied by the Company | The primary business units of the Company occupy a portion of the commercial real estate owned by the Company. As of December 31, 2022, real estate owned and occupied by the Company is summarized as follows: Schedule of Real Estate Owned and Occupied by the Company Location Business Segment Approximate Square Footage Square Footage Occupied by the Company 433 Ascension Way, Floors 4, 5 and 6, Salt Lake City, UT - Center53 Building 2 Corporate Offices, Life Insurance, Cemetery/Mortuary Operations, and Mortgage Operations and Sales 221,000 50 % 1044 River Oaks Dr., Flowood, MS Life Insurance Operations 19,694 28 % 1818 Marshall Street, Shreveport, LA (1) Life Insurance Operations 12,274 100 % 909 Foisy Street, Alexandria, LA (1) Life Insurance Sales 8,059 100 % 812 Sheppard Street, Minden, LA (1) Life Insurance Sales 1,560 100 % 1550 N 3rd Street, Jena, LA (1) Life Insurance Sales 1,737 100 % (1) Included in property and equipment on the consolidated balance sheets |
Schedule of Allowance for Loan Losses as Contra Asset Account | The Company establishes a valuation allowance for credit losses in its mortgage loans held for investment portfolio. The following table presents the valuation allowance for loan losses as a contra-asset account. Schedule of Allowance for Loan Losses as Contra Asset Account Commercial Residential Residential Construction Total December 31, 2022 Allowance for credit losses: Beginning balance $ 187,129 $ 1,469,571 $ 43,202 $ 1,699,902 Charge-offs - - - - Provision - 270,409 - 270,409 Ending balance $ 187,129 $ 1,739,980 $ 43,202 $ 1,970,311 Ending balance: individually evaluated for impairment $ - $ 225,667 $ - $ 225,667 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,514,313 $ 43,202 $ 1,744,644 Mortgage loans: Ending balance $ 46,311,955 $ 93,355,623 $ 172,516,125 $ 312,183,703 Ending balance: individually evaluated for impairment $ 405,000 $ 2,162,385 $ - $ 2,567,385 Ending balance: collectively evaluated for impairment $ 45,906,955 $ 91,193,238 $ 172,516,125 $ 309,616,318 December 31, 2021 Allowance for credit losses: Beginning balance $ 187,129 $ 1,774,796 $ 43,202 $ 2,005,127 Charge-offs - - - - Provision - (305,225 ) - (305,225 ) Ending balance $ 187,129 $ 1,469,571 $ 43,202 $ 1,699,902 Ending balance: individually evaluated for impairment $ - $ 105,384 $ - $ 105,384 Ending balance: collectively evaluated for impairment $ 187,129 $ 1,364,187 $ 43,202 $ 1,594,518 Mortgage loans: Ending balance $ 51,683,022 $ 53,533,712 $ 175,117,783 $ 280,334,517 Ending balance: individually evaluated for impairment $ 1,723,372 $ 2,548,656 $ - $ 4,272,028 Ending balance: collectively evaluated for impairment $ 49,959,650 $ 50,985,056 $ 175,117,783 $ 276,062,489 (1) (1) Amount corrected from that previously reported due to a typographical error. |
Schedule of Aging of Mortgage Loans | The following table presents the aging of mortgage loans held for investment. Schedule of Aging of Mortgage Loans Commercial Residential Residential Total December 31, 2022 30-59 Days Past Due $ 1,000,000 $ 3,553,390 $ - $ 4,553,390 60-89 Days Past Due - 814,184 - 814,184 Greater Than 90 Days (1) - 1,286,211 - 1,286,211 In Process of Foreclosure (1) 405,000 876,174 - 1,281,174 Total Past Due 1,405,000 6,529,959 - 7,934,959 Current 44,906,955 86,825,664 172,516,125 304,248,744 Total Mortgage Loans 46,311,955 93,355,623 172,516,125 312,183,703 Allowance for Loan Losses (187,129 ) (1,739,980 ) (43,202 ) (1,970,311 ) Unamortized deferred loan fees, net (199,765 ) (1,212,994 ) (333,846 ) (1,746,605 ) Unamortized discounts, net (230,987 ) (111,873 ) - (342,860 ) Net Mortgage Loans $ 45,694,074 $ 90,290,776 $ 172,139,077 $ 308,123,927 December 31, 2021 30-59 Days Past Due $ - $ 3,117,826 $ 1,363,127 $ 4,480,953 60-89 Days Past Due 100,204 580,815 - 681,019 Greater Than 90 Days (1) 1,723,372 2,052,062 - 3,775,434 In Process of Foreclosure (1) - 496,594 - 496,594 Total Past Due 1,823,576 6,247,297 1,363,127 9,434,000 Current 49,859,446 47,286,415 173,754,656 270,900,517 Total Mortgage Loans 51,683,022 53,533,712 175,117,783 280,334,517 Allowance for Loan Losses (187,129 ) (1,469,571 ) (43,202 ) (1,699,902 ) Unamortized deferred loan fees, net (36,813 ) (498,600 ) (383,173 ) (918,586 ) Unamortized discounts, net (240,614 ) (169,369 ) - (409,983 ) Net Mortgage Loans $ 51,218,466 $ 51,396,172 $ 174,691,408 $ 277,306,046 (1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
Schedule of Impaired Mortgage Loans | Schedule of Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2022 With no related allowance recorded: Commercial $ 405,000 $ 405,000 $ - $ 762,175 $ - Residential 1,142,494 1,142,494 - 998,798 - Residential construction - - - 103,976 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 1,019,891 1,019,891 225,667 683,922 - Residential construction - - - - - Total: Commercial $ 405,000 $ 405,000 $ - $ 762,175 $ - Residential 2,162,385 2,162,385 225,667 1,682,720 - Residential construction - - - 103,976 - December 31, 2021 With no related allowance recorded: Commercial $ 1,723,372 $ 1,723,372 $ - $ 1,053,865 $ - Residential 1,591,368 1,591,368 - 2,731,421 - Residential construction - - - 100,481 - With an allowance recorded: Commercial $ - $ - $ - $ - $ - Residential 957,288 957,288 105,384 726,449 - Residential construction - - - - - Total: Commercial $ 1,723,372 $ 1,723,372 $ - $ 1,053,865 $ - Residential 2,548,656 2,548,656 105,384 3,457,870 - Residential construction - - - 100,481 - |
Schedule of Credit Risk of Mortgage Loans Based on Performance Status | The Company’s performing and non-performing mortgage loans held for investment are summarized as follows: Schedule of Credit Risk of Mortgage Loans Based on Performance Status Commercial Residential Residential Construction Total December 31 December 31 December 31 December 31 2022 2021 2022 2021 2022 2021 2022 2021 Performing $ 45,906,955 $ 49,959,650 $ 91,193,238 $ 50,985,056 $ 172,516,125 $ 175,117,783 $ 309,616,318 $ 276,062,489 Non-performing 405,000 1,723,372 2,162,385 2,548,656 - - 2,567,385 4,272,028 Total $ 46,311,955 $ 51,683,022 $ 93,355,623 $ 53,533,712 $ 172,516,125 $ 175,117,783 $ 312,183,703 $ 280,334,517 |
Schedule of Mortgage loans Held for Investment | Schedule of Mortgage loans Held for Investment Principal Principal Principal Amounts Amounts Amounts Due in Due in Due Total 1 Year 2-5 Years Thereafter Residential $ 93,355,623 $ 1,332,862 $ 10,000,042 $ 82,022,719 Residential Construction 172,516,125 167,805,559 4,710,566 - Commercial 46,311,955 9,405,903 28,597,132 8,308,920 Total $ 312,183,703 $ 178,544,324 $ 43,307,740 $ 90,331,639 |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans Held For Sale | |
Schedule of Aggregate Fair Value Loans Held for Sale | The following table presents the aggregate fair value and the aggregate unpaid principal balance of loans held for sale. Schedule of Aggregate Fair Value Loans Held for Sale 2022 2021 December 31 2022 2021 Aggregate fair value $ 141,179,620 $ 302,776,827 Unpaid principal balance 141,337,811 294,481,503 Unrealized (loss) gain (158,191 ) 8,295,324 |
Schedule of Mortgage Fee Income for Loans Held for Sale | Major categories of mortgage fee income for loans held for sale are summarized as follows: Schedule of Mortgage Fee Income for Loans Held for Sale 2022 2021 Years Ended December 31 2022 2021 Loan fees $ 24,184,972 $ 37,723,433 Interest income 9,666,149 9,385,469 Secondary gains 153,870,807 (1) 230,417,029 Change in fair value of loan commitments (4,308,638 ) (3,113,095 ) Change in fair value of loans held for sale (8,834,797 ) (8,783,376 ) Provision for loan loss reserve (1,078,812 ) (2,211,230 ) Mortgage fee income $ 173,499,681 $ 263,418,230 (1) Includes a net gain of $ 34,051,938 |
Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses | The loan loss reserve, which is included in other liabilities and accrued expenses, is summarized as follows: Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses December 31 2022 2021 Balance, beginning of period $ 2,447,139 $ 20,583,618 Provision for current loan originations (1) 1,078,812 2,211,230 Charge-offs, net of recaptured amounts (1,800,284 ) (20,347,709 ) Balance, at December 31 $ 1,725,667 $ 2,447,139 (1) Included in Mortgage fee income |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consist of the following: Schedule of Receivables 2022 2021 December 31 2022 2021 Trade contracts $ 5,392,779 $ 5,298,636 Receivables from sales agents 2,209,185 2,360,807 Other 23,200,919 12,457,398 Total receivables 30,802,883 20,116,841 Allowance for doubtful accounts (2,229,791 ) (1,800,725 ) Net receivables $ 28,573,092 $ 18,316,116 |
Value of Business Acquired, G_2
Value of Business Acquired, Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Value of Business Acquired | Information with regard to value of business acquired was as follows: Schedule of Value of Business Acquired 2022 2021 December 31 2022 2021 Balance at beginning of year $ 8,421,432 $ 8,955,249 Value of business acquired 2,136,085 586,840 Imputed interest at 7 642,919 (1) 613,028 (1) Amortization included in earnings (1,907,250 )(1) (1,728,157 )(1) Shadow amortization included in other comprehensive income 510,550 (5,528 ) Net amortization (753,781 ) (1,120,657 ) Balance at end of year $ 9,803,736 $ 8,421,432 (1) Included in Amortization of deferred policy and pre-need acquistion costs and value of business acquired on the consolidated statements of earnings |
Schedule of Acquisitions Net Amortization Charged to Income | Presuming no additional acquisitions, net amortization charged to income is expected to approximate the following: Schedule of Acquisitions Net Amortization Charged to Income 2023 $ 1,181,000 2024 1,098,000 2025 995,000 2026 924,000 2027 841,000 Thereafter 4,764,736 Total $ 9,803,736 |
Schedule of Goodwill by Segment | Information regarding goodwill by segment was as follows: Schedule of Goodwill by Segment Life Insurance Cemetery/ Total Balance at January 1, 2021: Goodwill $ 2,765,570 $ 754,018 $ 3,519,588 Accumulated impairment - - - Total goodwill, net 2,765,570 754,018 3,519,588 Acquisition - 1,734,195 (1) 1,734,195 Balance at December 31, 2021: Goodwill 2,765,570 2,488,213 5,253,783 Accumulated impairment - - - Total goodwill, net 2,765,570 2,488,213 5,253,783 Acquisition - - - Balance at December 31, 2022: Goodwill 2,765,570 2,488,213 5,253,783 Accumulated impairment - - - Total goodwill, net $ 2,765,570 $ 2,488,213 $ 5,253,783 (1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens and Holbrook Mortuary |
Schedule of Carrying Value of Intangible Asset | The carrying value of the Company’s other intangible assets were as follows which is included in other assets: Schedule of Carrying Value of Intangible Asset December 31 Useful Life 2022 2021 Intangible asset - trade name (1) 15 years $ 2,100,000 $ 2,100,000 Intangible asset - customer lists 15 years 890,000 890,000 Intangible asset - trade name (2) 15 years 610,000 610,000 Intangible assets - other (1) 15 years 210,000 210,000 Less accumulated amortization (553,333 ) (297,333 ) Balance at end of year $ 3,256,667 $ 3,512,667 (1) See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens (2) Kilpatrick Life |
Schedule of Estimate of Future Amortization for Other Intangible Assets | The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2022 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management. Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights Estimated MSR Amortization 2023 $ 316,449 2024 286,934 2025 260,259 2026 234,139 2027 211,523 Thereafter 1,730,461 Total $ 3,039,765 |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Estimate of Future Amortization for Other Intangible Assets | The following table summarizes the Company’s estimate of future amortization for the other intangible assets: Schedule of Estimate of Future Amortization for Other Intangible Assets 2023 $ 254,000 2024 254,000 2025 254,000 2026 254,000 2027 254,000 Thereafter 1,986,667 Total $ 3,256,667 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment is summarized below: Schedule of Property, Plant and Equipment 2022 2021 December 31 2022 2021 Land and buildings $ 16,545,799 $ 16,532,593 Furniture and equipment 17,567,906 24,799,115 Property, plant and equipment, gross 34,113,705 41,331,708 Less accumulated depreciation (13,534,056 ) (19,814,110 ) Total $ 20,579,649 $ 21,517,598 |
Bank and Other Loans Payable (T
Bank and Other Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Bank Loans Payable | Bank and other loans payable are summarized as follows: Summary of Bank Loans Payable December 31 2022 2021 $ 1,690,892 $ 2,481,878 Prime rate note payable in monthly installments of $ 75,108 $ 1,690,892 $ 2,481,878 4.329 9,775 3,023,000 - 1,825,608 4.00 1 3 65,422,000 - 34,547,181 3.85 243,781 65,422,000 48,613,833 - 3.30 179,562 46,960,000 39,298,298 40,090,359 4.7865 16,948,000 9,200,000 9,200,000 1 month SOFR rate plus 2.1 100,000,000 17,978,527 66,305,025 1 month SOFR rate plus 2 100,000,000 29,768,762 50,555,909 1 month SOFR rate plus 2.5 75,000,000 15,131,410 43,196,986 1 month SOFR rate plus 2.1 50,000,000 - 1,764,386 Other short-term borrowings (1) - 1,250,000 Finance lease liabilities 31,082 62,767 Other loans payable - 6,828 Total bank and other loans 161,712,804 251,286,927 Less current installments 65,560,608 164,747,672 Bank and other loans, excluding current installments $ 96,152,196 $ 86,539,255 (1) Revolving Line of Credit |
Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable | The following tabulation shows the combined maturities of bank and other loans payable: Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable 2023 $ 65,560,608 2024 2,785,674 2025 1,981,991 2026 1,883,515 2027 1,997,551 Thereafter 87,503,465 Total $ 161,712,804 |
Cemetery Perpetual Care Trust_2
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Investments | The Company’s investments as of December 31, 2022 are summarized as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 93,182,210 $ 180,643 $ (2,685,277 ) $ 90,677,576 Obligations of states and political subdivisions 6,675,071 13,869 (458,137 ) 6,230,803 Corporate securities including public utilities 229,141,544 1,909,630 (11,930,773 ) 219,120,401 Mortgage-backed securities 33,501,686 168,700 (4,100,674 ) 29,569,712 Redeemable preferred stock 250,000 10,000 - 260,000 Total fixed maturity securities available for sale $ 362,750,511 $ 2,282,842 $ (19,174,861 ) $ 345,858,492 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Total equity securities at estimated fair value $ 9,942,265 $ 2,688,375 $ (948,114 ) $ 11,682,526 Mortgage loans held for investment at amortized cost: Residential $ 93,355,623 Residential construction 172,516,125 Commercial 46,311,955 Less: Unamortized deferred loan fees, net (1,746,605 ) Less: Allowance for loan losses (1,970,311 ) Less: Net discounts (342,860 ) Total mortgage loans held for investment $ 308,123,927 Real estate held for investment - net of accumulated depreciation: Residential $ 38,437,960 Commercial 152,890,656 Total real estate held for investment $ 191,328,616 Real estate held for sale: Residential $ 11,010,029 Commercial 151,553 Total real estate held for sale $ 11,161,582 Other investments and policy loans at amortized cost: Policy loans $ 13,095,473 Insurance assignments 46,942,536 Federal Home Loan Bank stock (1) 2,600,300 Other investments 9,479,798 Less: Allowance for doubtful accounts (1,609,951 ) Total policy loans and other investments $ 70,508,156 Accrued investment income $ 10,299,826 Total investments $ 948,963,125 (1) Includes $ 938,500 1,661,800 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 2) Investments The Company’s investments as of December 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 22,307,736 $ 578,567 $ - $ 22,886,303 Obligations of states and political subdivisions 4,649,917 212,803 (1,989 ) 4,860,731 Corporate securities including public utilities 174,711,061 21,791,370 (353,668 ) 196,148,763 Mortgage-backed securities 34,365,382 905,159 (161,332 ) 35,109,209 Redeemable preferred stock 269,214 13,383 - 282,597 Total fixed maturity securities available for sale $ 236,303,310 $ 23,501,282 $ (516,989 ) $ 259,287,603 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Total equity securities at estimated fair value $ 8,275,772 $ 3,626,444 $ (305,802 ) $ 11,596,414 Mortgage loans held for investment at amortized cost: Residential $ 53,533,712 Residential construction 175,117,783 Commercial 51,683,022 Less: Unamortized deferred loan fees, net (918,586 ) Less: Allowance for loan losses (1,699,902 ) Less: Net discounts (409,983 ) Total mortgage loans held for investment $ 277,306,046 Real estate held for investment - net of accumulated depreciation: Residential $ 41,972,462 Commercial 155,393,335 Total real estate held for investment $ 197,365,797 Real estate held for sale: Residential $ 1,190,602 Commercial 2,540,698 Total real estate held for sale $ 3,731,300 Other investments and policy loans at amortized cost: Policy loans $ 13,478,214 Insurance assignments 48,632,808 Federal Home Loan Bank stock (1) 2,547,100 Other investments 4,983,251 Less: Allowance for doubtful accounts (1,686,218 ) Total policy loans and other investments $ 67,955,155 Accrued investment income $ 6,313,012 Total investments $ 823,555,327 (1) Includes $ 905,700 1,641,400 |
Schedule of Fair Value of Fixed Maturity Securities | The following table summarizes unrealized losses on fixed maturities securities available for sale that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 U.S. Treasury securities and obligations of U.S. Government agencies $ 2,685,277 $ 79,400,753 $ - $ - $ 2,685,277 $ 79,400,753 Obligations of States and Political Subdivisions 378,067 5,467,910 80,070 429,020 458,137 5,896,930 Corporate Securities 10,935,114 162,995,969 995,659 5,781,822 11,930,773 168,777,791 Mortgage and other asset-backed securities 2,884,731 19,909,907 1,215,943 6,978,745 4,100,674 26,888,652 Total unrealized losses $ 16,883,189 $ 267,774,539 $ 2,291,672 $ 13,189,587 $ 19,174,861 $ 280,964,126 At December 31, 2021 Obligations of States and Political Subdivisions $ 1,989 $ 548,715 $ - $ - $ 1,989 $ 548,715 Corporate Securities 73,507 4,638,750 280,161 3,771,813 353,668 8,410,563 Mortgage and other asset-backed securities 72,952 7,934,760 88,380 1,582,804 161,332 9,517,564 Total unrealized losses $ 148,448 $ 13,122,225 $ 368,541 $ 5,354,617 $ 516,989 $ 18,476,842 |
Schedule of Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Due in 1 year $ - $ - Due in 2-5 years 139,431,212 135,093,083 Due in 5-10 years 87,552,213 84,011,366 Due in more than 10 years 102,015,400 96,924,331 Mortgage-backed securities 33,501,686 29,569,712 Redeemable preferred stock 250,000 260,000 Total $ 362,750,511 $ 345,858,492 |
Restricted Assets [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Fair Value of Fixed Maturity Securities | The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 Obligations of states and political subdivisions $ 11,891 $ 760,255 $ 3,469 $ 58,072 $ 15,360 $ 818,327 Corporate securities including public utilities 3,016 198,755 - - 3,016 198,755 Total unrealized losses $ 14,907 $ 959,010 $ 3,469 $ 58,072 $ 18,376 $ 1,017,082 At December 31, 2021 Obligations of states and political subdivisions $ 309 $ 114,208 $ - $ - $ 309 $ 114,208 Corporate securities including public utilities 1,761 232,239 - - 1,761 232,239 Total unrealized losses $ 2,070 $ 346,447 $ - $ - $ 2,070 $ 346,447 |
Schedule of Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ - $ - Due in 2-5 years 320,972 312,708 Due in 5-10 years 153,284 152,191 Due in more than 10 years 760,562 752,409 Total $ 1,234,818 $ 1,217,308 |
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds | Restricted assets as of December 31, 2022 are summarized as follows: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 1,033,047 $ 866 $ (15,360 ) $ 1,018,553 Corporate securities including public utilities 201,771 - (3,016 ) 198,755 Total fixed maturity securities available for sale $ 1,234,818 $ 866 $ (18,376 ) $ 1,217,308 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 4,955,360 $ 703,049 $ (310,165 ) $ 5,348,244 Total equity securities at estimated fair value $ 4,955,360 $ 703,049 $ (310,165 ) $ 5,348,244 Mortgage loans held for investment at amortized cost: $ 1,731,469 Cash and cash equivalents (1) $ 10,638,034 Total restricted assets $ 18,935,055 (1) Including cash and cash equivalents of $ 8,527,620 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets Restricted assets as of December 31, 2021 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 1,058,449 $ 42,456 $ (309 ) $ 1,100,596 Corporate securities including public utilities 489,714 13,139 (1,761 ) 501,092 Total fixed maturity securities available for sale $ 1,548,163 $ 55,595 $ (2,070 ) $ 1,601,688 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 2,781,041 $ 852,443 $ (29,662 ) $ 3,603,822 Total equity securities at estimated fair value $ 2,781,041 $ 852,443 $ (29,662 ) $ 3,603,822 Mortgage loans held for investment at amortized cost: Residential construction $ 2,732,319 Cash and cash equivalents (1) $ 9,000,293 Total restricted assets $ 16,938,122 (1) Including cash and cash equivalents of $ 7,869,295 |
Cemetery Perpectual Care Oblication [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Schedule of Investments | The components of the cemetery perpetual care investments and obligation as of December 31, 2022 are as follows: Schedule of Investments Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2022: Fixed maturity securities, available for sale, at estimated fair value: U.S. Treasury securities and obligations of U.S. Government agencies $ 89,004 $ 42 $ (38 ) $ 89,008 Obligations of states and political subdivisions 174,201 - (8,478 ) 165,723 Total fixed maturity securities available for sale $ 263,205 $ 42 $ (8,516 ) $ 254,731 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 3,195,942 $ 584,383 $ (175,163 ) $ 3,605,162 Total equity securities at estimated fair value $ 3,195,942 $ 584,383 $ (175,163 ) $ 3,605,162 Mortgage loans held for investment at amortized cost: Residential construction $ 1,506,517 Real estate held for investment: Residential $ (16,178 ) Cash and cash equivalents $ 1,925,978 Total cemetery perpetual care trust investments $ 7,276,210 Cemetery perpetual care obligation $ (5,099,542 ) Trust investments in excess of trust obligations $ 2,176,668 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets The components of the cemetery perpetual care investments and obligation as of December 31, 2021 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2021: Fixed maturity securities, available for sale, at estimated fair value: Obligations of states and political subdivisions $ 280,023 $ 4,872 $ (928 ) $ 283,967 Corporate securities including public utilities 492,770 8,028 - 500,798 Total fixed maturity securities available for sale $ 772,793 $ 12,900 $ (928 ) $ 784,765 Equity securities at estimated fair value: Common stock: Industrial, miscellaneous and all other $ 2,597,745 $ 737,696 $ (32,961 ) $ 3,302,480 Total equity securities at estimated fair value $ 2,597,745 $ 737,696 $ (32,961 ) $ 3,302,480 Mortgage loans held for investment at amortized cost: $ 1,823,533 Real estate held for investment: Residential $ 865,424 Cash and cash equivalents $ 1,059,519 Total cemetery perpetual care trust investments $ 7,835,721 Cemetery perpetual care obligation $ (4,915,285 ) Trust investments in excess of trust obligations $ 2,920,436 |
Schedule of Fair Value of Fixed Maturity Securities | The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2022 and at December 31, 2021. The unrealized losses were primarily related to interest rate fluctuations and inflation. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities: Schedule of Fair Value of Fixed Maturity Securities Unrealized Losses for Less than Twelve Months Fair Value Unrealized Losses for More than Twelve Months Fair Value Total Unrealized Loss Fair Value At December 31, 2022 U.S. Treasury securities and obligations of U.S. Government agencies $ 38 $ 59,392 $ - $ - $ 38 $ 59,392 Obligations of states and political subdivisions 1,845 94,612 6,633 71,112 8,478 165,724 Total unrealized losses $ 1,883 $ 154,004 $ 6,633 $ 71,112 $ 8,516 $ 225,116 At December 31, 2021 Obligations of states and political subdivisions $ 928 $ 105,060 $ - $ - $ 928 $ 105,060 Total unrealized losses $ 928 $ 105,060 $ - $ - $ 928 $ 105,060 |
Schedule of Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and estimated fair value of fixed maturity securities available for sale at December 31, 2022, by contractual maturity. 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. Schedule of Investments Classified by Contractual Maturity Date Amortized Estimated Fair Cost Value Due in 1 year $ 89,004 $ 89,008 Due in 2-5 years 77,745 71,112 Due in 5-10 years 41,621 40,816 Due in more than 10 years 54,835 53,795 Total $ 263,205 $ 254,731 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Liability | The Company’s income tax liability is summarized as follows: Summary of Income Tax Liability 2022 2021 December 31 2022 2021 Current $ 16,352,190 $ (1,558,687 ) Deferred 14,358,337 32,594,783 Total $ 30,710,527 $ 31,036,096 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax (assets) and liabilities are approximately as follows: Schedule of Deferred Tax Assets and Liabilities 2022 2021 December 31 2022 2021 Assets Future policy benefits $ (13,974,221 ) $ (13,015,255 ) Loan loss reserve (448,673 ) (636,256 ) Unearned premium (582,459 ) (642,755 ) Net operating loss (237,855 ) (898,029 ) Deferred compensation (2,166,593 ) (2,750,406 ) Deposit obligations (631,232 ) (635,878 ) Tax on unrealized appreciation (2,590,726 ) - Other (601,335 ) (1,712,895 ) Less: Valuation allowance 1,506,144 882,535 Total deferred tax assets (19,726,950 ) (19,408,939 ) Liabilities Deferred policy acquisition costs 17,511,778 17,166,200 Basis difference in property, equipment and real estate 11,959,391 9,247,242 Value of business acquired 2,058,785 1,768,501 Deferred gains 1,490,946 15,598,360 Trusts 1,064,387 1,064,387 Tax on unrealized appreciation - 7,159,032 Total deferred tax liabilities 34,085,287 52,003,722 Net deferred tax liability $ 14,358,337 $ 32,594,783 |
Schedule of Components of Income Tax Expense (Benefit) | The Company’s income tax expense is summarized as follows: Schedule of Components of Income Tax Expense (Benefit) 2022 2021 December 31 2022 2021 Current Federal $ 15,346,331 $ 629,921 State 3,294,234 343,428 Total Current Income Tax Expense (Benefit) 18,640,565 973,349 Deferred Federal (7,400,620 ) 9,832,556 State (2,553,385 ) 1,475,880 Total Deferred Income Tax Expense (Benefit) (9,954,005 ) 11,308,436 Total $ 8,686,560 $ 12,281,785 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax expense at the U.S. federal statutory rates is as follows: Schedule of Effective Income Tax Rate Reconciliation 2022 2021 December 31 2022 2021 Computed expense at statutory rate $ 7,219,141 $ 10,878,163 State tax expense, net of federal tax benefit 585,269 1,437,255 Change in valuation allowance 623,609 (79,385 ) Other, net 258,541 45,752 Income tax expense $ 8,686,560 $ 12,281,785 |
Summary of Operating Loss Carryforwards | Net Operating Losses and Tax Credit Carryforwards: Summary of Operating Loss Carryforwards Year of Expiration 2023 $ - 2024 - 2025 - 2026 - 2027 - Thereafter up through 2037 1,070,413 Indefinite carryforwards - $ 1,070,413 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Activities in Shares of Capital Stock | The following table summarizes the activity in shares of capital stock. Summary of Activities in Shares of Capital Stock Class A Class C Outstanding shares at December 31, 2020 16,595,783 2,679,603 Exercise of stock options 160,282 104,656 Stock dividends 837,410 131,553 Conversion of Class C to Class A 49,247 (49,247 ) Outstanding shares at December 31, 2021 17,642,722 2,866,565 Exercise of stock options 109,587 - Stock dividends 889,554 139,462 Conversion of Class C to Class A 116,168 (116,168 ) Outstanding shares at December 31, 2022 18,758,031 2,889,859 |
Schedule of Earnings Per Share, Basic and Diluted | Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows: Schedule of Earnings Per Share, Basic and Diluted 2022 2021 Years Ended December 31 2022 2021 Numerator: Net earnings $ 25,690,302 $ 39,518,990 Denominator: Denominator for basic earnings per share-weighted-average shares 21,137,941 21,146,713 Effect of dilutive securities Employee stock options 807,927 812,916 Unvested restricted stock units 374 - Dilutive potential common shares 808,301 812,916 Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions 21,946,242 21,959,629 Basic earnings per share $ 1.22 $ 1.87 Diluted earnings per share $ 1.17 $ 1.80 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used | The following table summarizes the assumptions used in estimating the fair value of each stock option granted along with the weighted-average fair value of the stock options granted. Schedule of Assumptions Used Assumptions Grant Date Plan Weighted-Average Fair Value of Each Option Expected Dividend Yield (1) Underlying stock FMV Weighted-Average Volatility Weighted-Average Risk-Free Interest Rate Weighted-Average Expected Life (years) December 2, 2022 All Plans $ 1.48 5 % $ 6.48 37.03 % 3.69 % 4.88 December 3, 2021 All Plans $ 2.99 5 % $ 8.62 36.50 % 1.15 % 5.31 (1) Stock dividend |
Schedule of Activity of Stock Option Plans | Activity of the stock option plans is summarized as follows: Schedule of Activity of Stock Option Plans Number of Weighted Average Exercise Price Number of Weighted Average Exercise Price Outstanding at January 1, 2021 1,072,863 $ 4.12 662,666 $ 4.50 Adjustment for the effect of stock dividends 47,594 33,136 Granted 89,500 230,000 Exercised (183,935 ) (104,656 ) Cancelled (1,671 ) - Outstanding at December 31, 2021 1,024,351 $ 4.38 821,146 $ 5.26 Adjustment for the effect of stock dividends 47,780 41,057 Granted 82,500 295,000 Exercised (176,435 ) - Cancelled (1,591 ) - Outstanding at December 31, 2022 976,605 $ 4.78 1,157,203 $ 5.59 Exercisable at end of year 897,105 $ 4.63 862,203 $ 5.26 Available options for future grant 132,313 795,000 Weighted average contractual term of options outstanding at December 31, 2022 4.72 6.90 Weighted average contractual term of options exercisable at December 31, 2022 4.26 6.24 Aggregated intrinsic value of options outstanding at December 31, 2022 (1) $ 2,460,755 $ 1,979,588 Aggregated intrinsic value of options exercisable at December 31, 2022 (1) $ 2,397,275 $ 1,758,488 (1) The Company used a stock price of $ 7.30 |
Schedule of Activity Restricted Stock Units | Activity of the RSUs is summarized as follows: Schedule of Activity Restricted Stock Units Number of Weighted Average Grant Date Fair Value Non-vested at December 31, 2021 - $ - Granted 1,620 6.48 Vested - Non-vested at December 31, 2022 1,620 $ 6.48 Available RSUs for future grant 18,380 Aggregated intrinsic value of RSUs outstanding at December 31, 2022 (1) $ 1,328 (1) The Company used a stock price of $ 7.30 |
Statutory Financial Informati_2
Statutory Financial Information and Dividend Limitations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Statutory Accounting Practices | Statutory net income and capital and surplus of the Company’s insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows: Schedule of Statutory Accounting Practices Statutory Net Income Statutory Capital and Surplus Years Ended December 31 December 31 2022 2021 2022 2021 Amounts by insurance subsidiary: Security National Life Insurance Company $ 9,126,955 $ 5,552,116 $ 66,753,938 $ 57,424,808 Kilpatrick Life Insurance Company 2,373,682 1,312,718 17,300,717 15,566,231 First Guaranty Insurance Company 1,007,026 624,550 8,107,405 7,734,357 Memorial Insurance Company of America - 37 - - Southern Security Life Insurance Company, Inc. (2,691 ) 275 1,579,971 1,578,225 Trans-Western Life Insurance Company 4,008 (2,089 ) 512,555 508,547 Total $ 12,508,980 $ 7,487,607 $ 94,254,586 $ 82,812,168 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Expenses by Reportable Segment | Schedule of Revenues and Expenses by Reportable Segment Insurance Mortuary Mortgage Eliminations Consolidated Year Ended December 31, 2022 Life Cemetery/ Intercompany Insurance Mortuary Mortgage Eliminations Consolidated Revenues: From external sources: Revenue from customers $ 105,144,646 $ 26,993,855 $ 173,356,675 - $ 305,495,176 Net investment income 62,565,021 2,444,599 1,187,972 - 66,197,592 Gains (losses) on investments and other assets (459,462 ) (796,096 ) 398,098 - (857,460 ) Other than temporary impairments - - - - - Other revenues 1,932,402 305,073 16,579,545 - 18,817,020 Intersegment revenues: Net investment income 6,601,132 451,139 356,574 (7,408,845 ) - Total revenues 175,783,739 29,398,570 191,878,864 (7,408,845 ) 389,652,328 Expenses: Death, surrenders and other policy benefits 64,066,432 - - - 64,066,432 Increase in future policy benefits 28,858,969 - - - 28,858,969 Amortization of deferred policy and pre-need acquisition costs and value of business acquired 17,352,803 597,399 - - 17,950,202 Selling, general and administrative expenses: Commissions 4,097,680 1,372,200 57,851,212 - 63,321,092 Personnel 26,285,207 9,305,429 64,520,887 - 100,111,523 Advertising 1,649,273 628,114 3,420,611 - 5,697,998 Rent and rent related 384,908 163,182 6,334,923 - 6,883,013 Depreciation on property and equipment 1,036,521 759,415 700,970 - 2,496,906 Provision for loan loss reserve - - - - - Cost related to funding mortgage loans - - 7,540,041 - 7,540,041 Intersegment 232,915 160,690 1,795,507 (2,189,112 ) - Other 13,190,827 5,321,730 27,285,196 - 45,797,753 Interest expense: Intersegment 462,753 274,911 4,482,069 (5,219,733 ) - Other 3,969,905 710 3,859,828 - 7,830,443 Costs of goods and services sold-mortuaries and cemeteries - 4,721,094 - - 4,721,094 Total benefits and expenses 161,588,193 23,304,874 177,791,244 (7,408,845 ) 355,275,466 Earnings before income taxes $ 14,195,546 $ 6,093,696 $ 14,087,620 $ - $ 34,376,862 Income tax expense (4,034,979 ) (1,523,954 ) (3,127,627 ) - (8,686,560 ) Net earnings $ 10,160,567 $ 4,569,742 $ 10,959,993 $ - $ 25,690,302 Identifiable assets $ 1,246,840,586 $ 82,320,929 $ 219,872,163 $ (93,174,569 ) $ 1,455,859,109 Goodwill $ 2,765,570 $ 2,488,213 $ - $ - $ 5,253,783 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 15) Business Segment Information Insurance Mortuary Mortgage Eliminations Consolidated Year Ended December 31, 2021 Life Cemetery/ Intercompany Insurance Mortuary Mortgage Eliminations Consolidated Revenues: From external sources: Revenue from customers $ 100,254,573 $ 23,997,313 $ 263,418,230 - $ 387,670,116 Net investment income 56,091,725 1,653,940 519,018 - 58,264,683 Gains on investments and other assets 4,554,528 1,511,965 198,641 - 6,265,134 Other than temporary impairments (39,502 ) - - - (39,502 ) Other revenues 2,152,531 100,255 16,282,325 - 18,535,111 Intersegment revenues: Net investment income 7,569,875 314,001 599,115 (8,482,991 ) - Total revenues 170,583,730 27,577,474 281,017,329 (8,482,991 ) 470,695,542 Expenses: Death, surrenders and other policy benefits 67,218,455 - - - 67,218,455 Increase in future policy benefits 26,263,312 - - - 26,263,312 Amortization of deferred policy and pre-need acquisition costs and value of business acquired 15,611,374 531,596 - - 16,142,970 Selling, general and administrative expenses: Commissions 3,514,498 1,917,899 112,854,072 - 118,286,469 Personnel 25,009,096 6,850,617 68,880,448 - 100,740,161 Advertising 1,160,640 570,924 4,894,854 - 6,626,418 Rent and rent related 733,726 109,318 6,399,243 - 7,242,287 Depreciation on property and equipment 806,543 479,005 650,065 - 1,935,613 Provision for loan loss reserve - - - - - Cost related to funding mortgage loans - - 10,541,570 - 10,541,570 Intersegment 497,113 113,062 671,107 (1,281,282 ) - Other 12,075,374 5,224,178 35,766,430 - 53,065,982 Interest expense: Intersegment 392,003 97,195 6,712,511 (7,201,709 ) - Other 2,328,868 54,620 4,744,028 - 7,127,516 Costs of goods and services sold-mortuaries and cemeteries - 3,704,014 - - 3,704,014 Total benefits and expenses 155,611,002 19,652,428 252,114,328 (8,482,991 ) 418,894,767 Earnings before income taxes $ 14,972,728 $ 7,925,046 $ 28,903,001 $ - $ 51,800,775 Income tax expense (2,943,715 ) (1,975,787 ) (7,362,283 ) - (12,281,785 ) Net earnings $ 12,029,013 $ 5,949,259 $ 21,540,718 $ - $ 39,518,990 Identifiable assets $ 1,236,406,558 $ 73,432,116 $ 328,600,841 $ (96,099,992 ) $ 1,542,339,523 Goodwill $ 2,765,570 $ 2,488,213 $ - $ - $ 5,253,783 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis | The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2022. Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a recurring basis Fixed maturity securities available for sale $ 345,858,492 $ - $ 344,422,973 $ 1,435,519 Equity securities 11,682,526 11,682,526 - - Loans held for sale 141,179,620 - - 141,179,620 Restricted assets (1) 1,217,308 - 1,217,308 - Restricted assets (2) 5,348,244 5,348,244 - - Cemetery perpetual care trust investments (1) 254,731 - 254,731 - Cemetery perpetual care trust investments (2) 3,605,162 3,605,162 - - Derivatives - loan commitments (3) 4,089,856 - - 4,089,856 Total assets accounted for at fair value on a recurring basis $ 513,235,939 $ 20,635,932 $ 345,895,012 $ 146,704,995 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (29,715 ) $ (29,715 ) $ - $ - Derivatives - put options (4) (13,888 ) (13,888 ) - - Derivatives - loan commitments (4) (1,382,979 ) - - (1,382,979 ) Total liabilities accounted for at fair value on a recurring basis $ (1,426,582 ) $ (43,603 ) $ - $ (1,382,979 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Fixed maturity securities available for sale $ 259,287,603 $ - $ 257,264,255 $ 2,023,348 Equity securities 11,596,414 11,596,414 - - Loans held for sale 302,776,827 - - 302,776,827 Restricted assets (1) 1,601,688 - 1,601,688 - Restricted assets (2) 3,603,822 3,603,822 - - Cemetery perpetual care trust investments (1) 784,765 - 784,765 - Cemetery perpetual care trust investments (2) 3,302,480 3,302,480 - - Derivatives - loan commitments (3) 8,563,410 - - 8,563,410 Total assets accounted for at fair value on a recurring basis $ 591,517,009 $ 18,502,716 $ 259,650,708 $ 313,363,585 Liabilities accounted for at fair value on a recurring basis Derivatives - call options (4) $ (50,936 ) $ (50,936 ) $ - $ - Derivatives - put options (4) (4,493 ) (4,493 ) - - Derivatives - loan commitments (4) (1,547,895 ) - - (1,547,895 ) Total liabilities accounted for at fair value on a recurring basis $ (1,603,324 ) $ (55,429 ) $ - $ (1,547,895 ) (1) Fixed maturity securities available for sale (2) Equity securities (3) Included in other assets on the consolidated balance sheets (4) Included in other liabilities and accrued expenses on the consolidated balance sheets |
Assets and Liabilities Measured at Fair Value on A Recurring Basis | For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Assets and Liabilities Measured at Fair Value on A Recurring Basis Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2022 Technique Input(s) Value Value Average Loans held for sale $ 141,179,620 Market approach Investor contract pricing as a percentage of unpaid principal balance 69.9 % 106.1 % 99.8 % Derivatives - loan commitments (net) 2,706,877 Market approach Pull-through rate 65.0 % 95.0 % 82.2 % Initial-Value N/A N/A N/A Servicing 0 bps 153 bps 73 bps Fixed maturity securities available for sale 1,435,519 Broker quotes Pricing quotes $ 100.00 $ 111.11 $ 104.97 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Significant Range of Inputs Fair Value at Valuation Unobservable Minimum Maximum Weighted 12/31/2021 Technique Input(s) Value Value Average Loans held for sale $ 302,776,827 Market approach Investor contract pricing as a percentage of unpaid principal balance 95.0 % 109.0 % 103.0 % Derivatives - loan commitments (net) 7,015,515 Market approach Pull-through rate 66.0 % 95.0 % 81.0 % Initial-Value N/A N/A N/A Servicing 0 bps 148 bps 61 bps Fixed maturity securities available for sale 2,023,348 Broker quotes Pricing quotes $ 96.87 $ 111.11 $ 106.73 |
Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs | The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs Net Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2021 $ 7,015,515 $ 302,776,827 $ 2,023,348 Originations/purchases - 3,373,554,484 - Sales, maturities and paydowns - (3,549,405,402 ) (528,980 ) Transfer to mortgage loans held for investment - (51,691,213 ) - Total gains (losses): Included in earnings (4,308,638 )(1) 65,944,924 (1) 1,957 (2) Included in other comprehensive income - - (60,806 ) Balance - December 31, 2022 $ 2,706,877 $ 141,179,620 $ 1,435,519 (1) As a component of mortgage fee income on the consolidated statements of earnings (2) As a component of net investment income on the consolidated statements of earnings The following table is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs: Net Derivatives Loan Commitments Loans Held for Sale Fixed Maturity Securities Available for Sale Balance - December 31, 2020 $ 10,128,610 $ 422,772,418 $ 2,201,175 Originations/purchases - 5,611,189,587 - Sales, maturities and paydowns - (5,900,076,766 ) (45,700 ) Transfer to mortgage loans held for investment - (201,951 ) - Total gains (losses): Included in earnings (3,113,095 )(1) 169,093,539 (1) 3,674 (2) Included in other comprehensive income - - (135,801 ) Balance - December 31, 2021 $ 7,015,515 $ 302,776,827 $ 2,023,348 (1) As a component of mortgage fee income on the consolidated statements of earnings (2) As a component of net investment income on the consolidated statements of earnings |
Schedule of Fair Value Assets Measured on a Nonrecurring Basis | The following table 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, 2022. Schedule of Fair Value Assets Measured on a Nonrecurring Basis Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 794,224 $ - $ - $ 794,224 Total assets accounted for at fair value on $ 794,224 $ - $ - $ 794,224 The following table 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, 2021. Total Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Assets accounted for at fair value on a Impaired mortgage loans held for investment $ 851,903 $ - $ - $ 851,903 Impaired real estate held for sale 2,000,000 - - 2,000,000 Total assets accounted for at fair value on $ 2,851,903 $ - $ - $ 2,851,903 |
Schedule of Financial Instruments Carried at Other Than Fair Value | 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, 2022: 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 held for investment Residential $ 90,290,776 $ - $ - $ 88,575,293 $ 88,575,293 Residential construction 172,139,077 - - 172,139,077 172,139,077 Commercial 45,694,074 - - 44,079,537 44,079,537 Mortgage loans held for investment, net $ 308,123,927 $ - $ - $ 304,793,907 $ 304,793,907 Policy loans 13,095,473 - - 13,095,473 13,095,473 Insurance assignments, net (1) 45,332,585 - - 45,332,585 45,332,585 Restricted assets (2) 1,731,469 - - 1,731,469 1,731,469 Cemetery perpetual care trust investments (2) 1,506,517 - - 1,506,517 1,506,517 Mortgage servicing rights, net 3,039,765 - - 3,927,877 3,927,877 Liabilities Bank and other loans payable $ (161,712,804 ) $ - $ - $ (161,712,804 ) $ (161,712,804 ) Policyholder account balances (3) (41,146,171 ) - - (42,181,089 ) (42,181,089 ) Future policy benefits - annuities (3) (106,637,094 ) - - (126,078,031 ) (126,078,031 ) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 17) Fair Value of Financial Instruments 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, 2021: Carrying Value Level 1 Level 2 Level 3 Total Estimated Fair Value Assets Mortgage loans held for investment Residential $ 51,396,172 $ - $ - $ 55,159,167 $ 55,159,167 Residential construction 174,691,408 - - 174,691,408 174,691,408 Commercial 51,218,466 - - 51,008,709 51,008,709 Mortgage loans held for investment, net $ 277,306,046 $ - $ - $ 280,859,284 $ 280,859,284 Policy loans 13,478,214 - - 13,478,214 13,478,214 Insurance assignments, net (1) 46,946,590 - - 46,946,590 46,946,590 Restricted assets (2) 2,732,320 - - 2,732,320 2,732,320 Cemetery perpetual care trust investments (2) 1,823,533 - - 1,823,533 1,823,533 Mortgage servicing rights, net 53,060,455 - - 68,811,809 68,811,809 Liabilities Bank and other loans payable $ (251,286,927 ) $ - $ - $ (251,286,927 ) $ (251,286,927 ) Policyholder account balances (3) (42,939,055 ) - - (35,855,934 ) (35,855,934 ) Future policy benefits - annuities (3) (107,992,830 ) - - (116,215,717 ) (116,215,717 ) (1) Included in other investments and policy loans on the consolidated balance sheets (2) Mortgage loans held for investment (3) Included in future policy benefits and unpaid claims on the consolidated balance sheets |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income | The following summarizes the changes in accumulated other comprehensive income: Schedule of Changes in Accumulated Other Comprehensive Income 2022 2021 December 31 2022 2021 Unrealized gains on fixed maturity securities available for sale $ (39,493,861 ) $ (7,323,241 ) Amounts reclassified into net earnings 162,173 805,510 Net unrealized gains before taxes (39,331,688 ) (6,517,731 ) Tax expense 8,259,656 1,368,721 Net (31,072,032 ) (5,149,010 ) Unrealized gains on restricted assets (1) (71,035 ) (23,250 ) Tax expense 17,695 5,792 Net (53,340 ) (17,458 ) Unrealized gains on cemetery perpetual care trust investments (1) (20,446 ) (11,114 ) Unrealized gains before taxes (20,446 ) (11,114 ) Tax expense 5,093 2,769 Net (15,353 ) (8,345 ) Unrealized gains for foreign currency translations adjustments - 2,835 Tax expense - (707 ) Net - 2,128 Other comprehensive income changes $ (31,140,725 ) $ (5,172,685 ) (1) Fixed maturity securities available for sale |
Schedule of Accumulated Balances of Other Comprehensive Income | The following is the accumulated balances of other comprehensive income as of December 31, 2022: Schedule of Accumulated Balances of Other Comprehensive Income Beginning Balance December 31, 2021 Change for the period Ending Balance December 31, Unrealized gains (losses) on fixed maturity securities $ 18,021,265 $ (31,072,032 ) $ (13,050,767 ) Unrealized gains (losses) on restricted assets (1) 40,192 (53,340 ) (13,148 ) Unrealized gains (losses) on cemetery perpetual 8,991 (15,353 ) (6,362 ) Other comprehensive income $ 18,070,448 $ (31,140,725 ) $ (13,070,277 ) (1) Fixed maturity securities available for sale The following is the accumulated balances of other comprehensive income as of December 31, 2021: Beginning Balance December 31, 2020 Change for the period Ending Balance December 31, 2021 Unrealized gains (losses) on fixed maturity securities $ 23,170,275 $ (5,149,010 ) $ 18,021,265 Unrealized gains (losses) on restricted assets (1) 57,650 (17,458 ) 40,192 Unrealized gains (losses) on cemetery perpetual 17,336 (8,345 ) 8,991 Foreign currency translation adjustments (2,128 ) 2,128 - Other comprehensive income $ 23,243,133 $ (5,172,685 ) $ 18,070,448 (1) Fixed maturity securities available for sale |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table shows the fair value and notional amounts of derivative instruments. Schedule of Derivative Assets at Fair Value December 31, 2022 December 31, 2021 Balance Sheet Location Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives not designated as hedging instruments: Loan commitments Other assets and Other liabilities $ 453,371,808 $ 4,089,856 $ 1,382,979 $ 862,568,967 $ 8,563,410 $ 1,547,895 Call options Other liabilities 868,600 — 29,715 982,500 — 50,936 Put options Other liabilities 654,500 — 13,888 362,900 — 4,493 Total $ 454,894,908 $ 4,089,856 $ 1,426,582 $ 863,914,367 $ 8,563,410 $ 1,603,324 |
Schedule of Gains and Losses on Derivatives | The following table presents the gains (losses) on derivatives. There were no gains or losses reclassified from accumulated other comprehensive income into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing. Schedule of Gains and Losses on Derivatives Years ended December 31 Derivative Classification 2022 2021 Loan commitments Mortgage fee income $ (4,308,638 ) $ (3,113,095 ) Call and put options Gains on investments and other assets $ 202,886 $ 160,410 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Rivera Funerals Cremations and Memorial Gardens [Member] | |
Business Acquisition [Line Items] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed Restricted assets (1) $ 618,006 Property and equipment (2) 6,255,836 Cemetery land and improvements 658,280 Goodwill 1,338,763 Other (3) 2,440,516 Total assets acquired 11,311,401 Cemetery perpetual care obligation (618,006 ) Other liabilities - holdback (1,120,000 ) Total liabilities assumed (1,738,006 ) Fair value of net assets acquired/consideration paid $ 9,573,395 (1) Includes $ 39,000 579,006 (2) At estimated fair value which is a Level 3 asset in the fair value hierarchy (3) Including $ 2,310,000 |
Holbrook Mortuary [Member] | |
Business Acquisition [Line Items] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows: Estimated Fair Values of Assets Acquired and Liabilities Assumed Property and equipment (1) $ 2,641,210 Goodwill 395,432 Other 15,105 Total assets acquired 3,051,747 Fair value of net assets acquired/consideration paid $ 3,051,747 (1) At estimated fair value which is a Level 3 asset in the fair value hierarchy |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Mortgage Servicing Rights | The following table presents the MSR activity. Schedule of Mortgage Servicing Rights 2022 2021 December 31 2022 2021 Amortized cost: Balance before valuation allowance at beginning of year $ 53,060,455 $ 35,210,516 MSR additions resulting from loan sales 10,243,922 32,701,819 Amortization (1) (9,078,706 ) (14,851,880 ) Sale of MSRs (51,185,906 ) - Application of valuation allowance to write down MSRs with other than temporary impairment - - Balance before valuation allowance at year end $ 3,039,765 $ 53,060,455 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 year end $ - $ - Mortgage servicing rights, net $ 3,039,765 $ 53,060,455 Estimated fair value of MSRs at year end $ 3,927,877 $ 68,811,809 (1) Included in other expenses on the consolidated statements of earnings |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights | The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2022 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management. Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights Estimated MSR Amortization 2023 $ 316,449 2024 286,934 2025 260,259 2026 234,139 2027 211,523 Thereafter 1,730,461 Total $ 3,039,765 |
Schedule of Other Revenues | The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings. Schedule of Other Revenues 2022 2021 Years Ended December 31 2022 2021 Contractual servicing fees $ 15,792,105 $ 15,471,307 Late fees 398,754 321,337 Total $ 16,190,859 $ 15,792,644 |
Summary of Unpaid Principal Balances of the Servicing Portfolio | The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio. Summary of Unpaid Principal Balances of the Servicing Portfolio December 31 2022 2021 Servicing UPB $ 360,023,384 $ 7,060,536,350 |
Schedule of Assumptions Used in Determining MSR Value | The following key assumptions were used in determining MSR value. Schedule of Assumptions Used in Determining MSR Value Prepayment Average Discount December 31, 2022 8.12 8.49 11.95 December 31, 2021 11.60 6.64 9.50 |
Future Policy Benefits and Un_2
Future Policy Benefits and Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment | The following table provides information regarding future policy benefits and unpaid claims and the related receivable from reinsurers. Schedule of Liability for Future Policy Benefits, by Product Segment December 31 2022 2021 Life $ 726,462,594 $ 698,366,477 Annuities 106,637,094 107,992,830 Policyholder account balances 41,146,171 42,939,055 Accident and health 603,526 629,302 Other policyholder funds 4,279,218 4,352,217 Reported but unpaid claims 5,651,030 4,887,934 Incurred but not reported claims 4,547,670 4,106,878 Gross future policy benefits and unpaid claims $ 889,327,303 $ 863,274,693 Receivable from reinsurers Life 10,600,613 10,482,428 Annuities 4,225,873 4,082,877 Accident and health 79,467 88,474 Reported but unpaid claims 110,985 177,829 Incurred but not reported claims 17,000 19,000 Total receivable from reinsurers 15,033,938 14,850,608 Net future policy benefits and unpaid claims $ 874,293,365 $ 848,424,085 Net unpaid claims $ 10,070,715 $ 8,797,983 |
Summary of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims | The following table provides a rollforward of the Company’s liability for reported but unpaid claims and incurred but not reported claims, net of the related receivable from reinsurers. Summary of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims Life Annuities Accident and Health Total Balance at 12/31/2020 $ 10,286,319 $ 1,111,441 $ 17,000 $ 11,414,760 Incurred 63,247,616 (1) 14,036,473 (2) 230,395 (3) 77,514,484 Settled (65,518,834 ) (14,469,536 ) (142,891 ) (80,131,261 ) Balance at 12/31/2021 8,015,101 678,378 104,504 8,797,983 Incurred 59,377,962 (1) 13,987,576 (2) 40,744 (3) 73,406,282 Settled (57,988,800 ) (14,016,502 ) (128,248 ) (72,133,550 ) Balance at 12/31/2022 $ 9,404,263 $ 649,452 $ 17,000 $ 10,070,715 (1) See death benefits on the consolidated statements of earnings (2) Included in increase in future benefits on the consolidated statements of earnings (3) Included in surrender and other policy benefits on the consolidated statements of earnings |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities | The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2022) $ 5,298,636 $ - $ 14,508,022 Closing (12/31/2022) 5,392,779 - 16,226,836 Increase/(decrease) 94,143 - 1,718,814 Contract Balances Receivables (1) Contract Asset Contract Liability Opening (1/1/2021) $ 4,119,988 $ - $ 13,080,179 Closing (12/31/2021) 5,298,636 - 14,508,022 Increase/(decrease) 1,178,648 - 1,427,843 (1) Included in Receivables, net on the consolidated balance sheets |
Schedule of Opening and Closing Balances of the Assets and Liabilities | The following table disaggregates the opening and closing balances of the Company’s contract balances. Schedule of Opening and Closing Balances of the Assets and Liabilities Contract Balances Contract Asset Contract Liability Pre-need merchandise and services $ - $ 13,722,348 At-need specialty merchandise - 785,674 Pre-need land sales - - Opening (1/1/2022) $ - $ 14,508,022 Pre-need merchandise and services $ - $ 15,289,901 At-need specialty merchandise - 936,935 Pre-need land sales - - Closing (12/31/2022) $ - $ 16,226,836 Contract Balances Contract Asset Contract Liability Pre-need merchandise and services $ - $ 12,545,753 At-need specialty merchandise - 534,426 Pre-need land sales - - Opening (1/1/2021) $ - $ 13,080,179 Pre-need merchandise and services $ - $ 13,722,348 At-need specialty merchandise - 785,674 Pre-need land sales - - Closing (12/31/2021) $ - $ 14,508,022 |
Schedule of Revenues of the Cemetery and Mortuary Contracts | The following table disaggregates revenue for the Company’s cemetery and mortuary contracts. Schedule of Revenues of the Cemetery and Mortuary Contracts 2022 2021 Years Ended December 31 2022 2021 Major goods/service lines At-need $ 21,283,237 $ 16,220,541 Pre-need 5,710,618 7,776,772 Net mortuary and cemetery sales $ 26,993,855 $ 23,997,313 Timing of Revenue Recognition Goods transferred at a point in time $ 16,412,963 $ 16,793,439 Services transferred at a point in time 10,580,892 7,203,874 Net mortuary and cemetery sales $ 26,993,855 $ 23,997,313 |
Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information | The following table disaggregates contract costs that are included in deferred policy and pre-need contract acquisition costs on the consolidated balances sheets. Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information 2022 2021 Years Ended December 31 2022 2021 Pre-need merchandise and services $ 3,780,173 $ 3,688,579 At-need specialty merchandise 35,371 29,688 Pre-need land sales - - Deferred policy and pre-need contract acquisition costs $ 3,815,544 $ 3,718,267 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of Lease Cost Recognized in Earnings | Schedule of Lease Cost Recognized in Earnings 2022 2021 Years Ended December 31 2022 2021 Lease Cost Finance lease cost: Amortization of right-of-use assets (1) $ 30,163 $ 41,925 Interest on lease liabilities (2) 2,773 4,713 Operating lease cost (3) 4,498,894 4,896,315 Short-term lease cost (3)(4) 1,135,003 167,551 Sublease income (3) (209,455 ) (275,038 ) Total lease cost $ 5,457,378 $ 4,835,466 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,250,630 $ 4,697,819 Operating cash flows from finance leases 2,773 4,713 Financing cash flows from finance leases 31,685 42,184 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 2,054,534 $ 5,216,048 Finance leases - - Weighted-average remaining lease term (in years) Finance leases 1.25 2.07 Operating leases 3.46 6.04 Weighted-average discount rate Finance leases 5.78 % 5.74 % Operating leases 4.50 % 4.14 % (1) Included in Depreciation on property and equipment on the consolidated statements of earnings (2) Included in Interest expense on the consolidated statements of earnings (3) Included in Rent and rent related expenses on the consolidated statements of earnings (4) Includes leases with a term of 12 months or less |
Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases | The following table presents the maturity analysis of the Company’s lease liabilities. Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases Finance Leases Operating Leases Lease payments due in: 2023 $ 27,220 $ 3,929,227 2024 4,354 3,328,744 2025 692 2,166,880 2026 - 1,454,848 2027 - 340,112 Thereafter - 324,548 Total undiscounted lease payments 32,266 11,544,359 Less: Discount on cash flows (1,184 ) (947,888 ) Present value of lease liabilities $ 31,082 $ 10,596,471 |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table presents the Company’s right-of-use assets and lease liabilities. Schedule of Right-of-Use Assets and Lease Liabilities Year Ended December 31 Balance Sheet Location 2022 2021 Operating Leases Right-of-use assets Other assets $ 9,987,699 $ 12,483,638 Right-of-use assets Other assets $ 9,987,699 $ 12,483,638 Lease liabilities Other liabilities and accrued expenses $ 10,596,471 $ 12,939,691 Lease liabilities Other liabilities and accrued expenses $ 10,596,471 $ 12,939,691 Finance Leases Right-of-use assets $ 228,221 $ 235,867 Accumulated amortization (200,178 ) (177,660 ) Right-of-use assets, net Property and equipment, net $ 28,043 $ 58,207 Right-of-use assets, net Property and equipment, net $ 28,043 $ 58,207 Lease liabilities Bank and other loans payable $ 31,082 $ 62,767 Lease liabilities Bank and other loans payable $ 31,082 $ 62,767 |
Schedule of Increased (Decrease
Schedule of Increased (Decrease) in Allowances for Credit Losses Upon ASU (Details) - Subsequent Event [Member] - Accounting Standards Update 2016-13 [Member] | Jan. 01, 2023 USD ($) |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | $ 671,505 |
Mortgage Loans Held for Investment [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | 665,029 |
Mortgage Loans Held for Investment [Member] | Residential Mortgage [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | (192,607) |
Mortgage Loans Held for Investment [Member] | Residential Construction [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | 301,830 |
Mortgage Loans Held for Investment [Member] | Commercial [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | 555,806 |
Restricted Assets Mortgage Loans Held Fo rInvestment [Member] | Residential Construction [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | 3,463 |
Cemetery Perpetual Care Trus tInvestments Mortgage Loans Held For Investment [Member] | Residential Construction [Member] | |
Subsequent Event [Line Items] | |
Allowances for credit losses increase (decrease) | $ 3,013 |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Remaining outstanding principal balance percentage | 0.25% | ||
Participating business | 2% | 2% | |
Diversification of business | $ 100,000 | ||
Concentration risk percentage1 | 100% | ||
Subsequent Event [Member] | Accounting Standards Update 2016-13 [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Decrease in retained earnings | $ 671,505 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt instrument term | 9 months | ||
Estimated useful lives | 3 years | ||
Debt instrument interest rate effective percentage | 4% | ||
Participating policy percentage of premium income | 3% | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt instrument term | 30 years | ||
Estimated useful lives | 40 years | ||
Debt instrument interest rate effective percentage | 10% | ||
Participating policy percentage of premium income | 6.50% | ||
MSRs Class One [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt instrument term | 30 years | ||
MSRs Class Two [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Debt instrument term | 15 years |
Schedule of Investments (Detail
Schedule of Investments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | $ 362,750,511 | $ 236,303,310 | |||
Available for sale securities, unrecognized holding gain | 2,282,842 | 23,501,282 | |||
Available for sale securities, unrecognized holding loss | (19,174,861) | (516,989) | |||
Available for sale securities, estimated fair value | 345,858,492 | 259,287,603 | |||
Available-for-sale securities, amortized cost basis | 9,942,265 | 8,275,772 | |||
Available-for-sale securities, gross unrealized gain | 11,682,526 | 11,596,414 | |||
Mortgage loans on real estate and construction | 312,183,703 | 280,334,517 | |||
Mortgage loans on real estate and construction, unamortized deferred loan fees, net | (1,746,605) | (918,586) | |||
Mortgage loans on real estate and construction, allowance for losses | (1,970,311) | (1,699,902) | $ (2,005,127) | ||
Mortgage loans on real estate and construction, discount | (342,860) | (409,983) | |||
Mortgage loans on real estate and construction | 308,123,927 | 277,306,046 | |||
Real estate held for investment: Residential | 191,328,616 | 197,365,797 | |||
Real estate held for sale | 11,161,582 | 3,731,300 | |||
Policy loans | 13,095,473 | 13,478,214 | |||
Insurance assignments | 46,942,536 | 48,632,808 | |||
Federal home loan bank stock | 2,600,300 | [1] | 2,547,100 | [2] | |
Other investments | 9,479,798 | 4,983,251 | |||
Allowance for doubtful accounts | (1,609,951) | (1,686,218) | |||
Total policy loans and other investments | 70,508,156 | 67,955,155 | |||
Accrued investment income | 10,299,826 | 6,313,012 | |||
Total investments | 948,963,125 | 823,555,327 | |||
Real estate held for investment: Residential | (191,328,616) | (197,365,797) | |||
Cash and cash equivalents | 133,483,817 | 141,414,282 | 115,465,086 | ||
Total cemetery perpetual care trust investments | 7,276,210 | 7,835,721 | |||
Cemetery perpetual care obligation | (5,099,542) | (4,915,285) | |||
US Treasury Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 93,182,210 | 22,307,736 | |||
Available for sale securities, unrecognized holding gain | 180,643 | 578,567 | |||
Available for sale securities, unrecognized holding loss | (2,685,277) | ||||
Available for sale securities, estimated fair value | 90,677,576 | 22,886,303 | |||
US States and Political Subdivisions Debt Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 6,675,071 | 4,649,917 | |||
Available for sale securities, unrecognized holding gain | 13,869 | 212,803 | |||
Available for sale securities, unrecognized holding loss | (458,137) | (1,989) | |||
Available for sale securities, estimated fair value | 6,230,803 | 4,860,731 | |||
Corporate Debt Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 229,141,544 | 174,711,061 | |||
Available for sale securities, unrecognized holding gain | 1,909,630 | 21,791,370 | |||
Available for sale securities, unrecognized holding loss | (11,930,773) | (353,668) | |||
Available for sale securities, estimated fair value | 219,120,401 | 196,148,763 | |||
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 33,501,686 | 34,365,382 | |||
Available for sale securities, unrecognized holding gain | 168,700 | 905,159 | |||
Available for sale securities, unrecognized holding loss | (4,100,674) | (161,332) | |||
Available for sale securities, estimated fair value | 29,569,712 | 35,109,209 | |||
Redeemable Preferred Stock [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 250,000 | 269,214 | |||
Available for sale securities, unrecognized holding gain | 10,000 | 13,383 | |||
Available for sale securities, unrecognized holding loss | |||||
Available for sale securities, estimated fair value | 260,000 | 282,597 | |||
Industrial Miscellaneous And All Other [Member] | |||||
Marketable Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 9,942,265 | 8,275,772 | |||
Available for sale securities, unrecognized holding gain | 2,688,375 | 3,626,444 | |||
Available for sale securities, unrecognized holding loss | (948,114) | (305,802) | |||
Available-for-sale securities, gross unrealized gain | 11,682,526 | 11,596,414 | |||
Equity Securities One [Member] | |||||
Marketable Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 9,942,265 | 8,275,772 | |||
Available for sale securities, unrecognized holding gain | 2,688,375 | 3,626,444 | |||
Available for sale securities, unrecognized holding loss | (948,114) | (305,802) | |||
Available-for-sale securities, gross unrealized gain | 11,682,526 | 11,596,414 | |||
Residential Mortgage [Member] | |||||
Marketable Securities [Line Items] | |||||
Mortgage loans on real estate and construction | 93,355,623 | 53,533,712 | |||
Mortgage loans on real estate and construction, unamortized deferred loan fees, net | (1,212,994) | (498,600) | |||
Mortgage loans on real estate and construction, allowance for losses | (1,739,980) | (1,469,571) | (1,774,796) | ||
Mortgage loans on real estate and construction, discount | (111,873) | (169,369) | |||
Mortgage loans on real estate and construction | 90,290,776 | 51,396,172 | |||
Real estate held for investment: Residential | 38,437,960 | 41,972,462 | |||
Real estate held for sale | 11,010,029 | 1,190,602 | |||
Real estate held for investment: Residential | (38,437,960) | (41,972,462) | |||
Residential Construction [Member] | |||||
Marketable Securities [Line Items] | |||||
Mortgage loans on real estate and construction | 172,516,125 | 175,117,783 | |||
Mortgage loans on real estate and construction, unamortized deferred loan fees, net | (333,846) | (383,173) | |||
Mortgage loans on real estate and construction, allowance for losses | (43,202) | (43,202) | $ (43,202) | ||
Mortgage loans on real estate and construction, discount | |||||
Mortgage loans on real estate and construction | 172,139,077 | 174,691,408 | |||
Commercial [Member] | |||||
Marketable Securities [Line Items] | |||||
Mortgage loans on real estate and construction | 46,311,955 | 51,683,022 | |||
Real estate held for investment: Residential | 152,890,656 | 155,393,335 | |||
Real estate held for sale | 151,553 | 2,540,698 | |||
Real estate held for investment: Residential | (152,890,656) | (155,393,335) | |||
Cemetery Perpectual Care Oblication [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 263,205 | 772,793 | |||
Available for sale securities, unrecognized holding gain | 42 | 12,900 | |||
Available for sale securities, unrecognized holding loss | (8,516) | (928) | |||
Available for sale securities, estimated fair value | 254,731 | 784,765 | |||
Cash and cash equivalents | 1,925,978 | 1,059,519 | |||
Total cemetery perpetual care trust investments | 7,276,210 | 7,835,721 | |||
Cemetery perpetual care obligation | (5,099,542) | (4,915,285) | |||
Trust investments in excess of trust obligations | 2,176,668 | 2,920,436 | |||
Cemetery Perpectual Care Oblication [Member] | US Treasury Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 89,004 | ||||
Available for sale securities, unrecognized holding gain | 42 | ||||
Available for sale securities, unrecognized holding loss | (38) | ||||
Available for sale securities, estimated fair value | 89,008 | ||||
Cemetery Perpectual Care Oblication [Member] | US States and Political Subdivisions Debt Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 174,201 | 280,023 | |||
Available for sale securities, unrecognized holding gain | 4,872 | ||||
Available for sale securities, unrecognized holding loss | (8,478) | (928) | |||
Available for sale securities, estimated fair value | 165,723 | 283,967 | |||
Cemetery Perpectual Care Oblication [Member] | Industrial Miscellaneous And All Other [Member] | |||||
Marketable Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 3,195,942 | 2,597,745 | |||
Available for sale securities, unrecognized holding gain | 584,383 | 737,696 | |||
Available for sale securities, unrecognized holding loss | (175,163) | (32,961) | |||
Available-for-sale securities, gross unrealized gain | 3,605,162 | 3,302,480 | |||
Cemetery Perpectual Care Oblication [Member] | Equity Securities One [Member] | |||||
Marketable Securities [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 3,195,942 | 2,597,745 | |||
Available for sale securities, unrecognized holding gain | 584,383 | 737,696 | |||
Available for sale securities, unrecognized holding loss | (175,163) | (32,961) | |||
Available-for-sale securities, gross unrealized gain | 3,605,162 | 3,302,480 | |||
Cemetery Perpectual Care Oblication [Member] | Residential Construction [Member] | |||||
Marketable Securities [Line Items] | |||||
Mortgage loans on real estate and construction | 1,506,517 | 1,823,533 | |||
Cemetery Perpectual Care Oblication [Member] | Residential Mortgage [Member] | |||||
Marketable Securities [Line Items] | |||||
Real estate held for investment: Residential | 16,178 | 865,424 | |||
Real estate held for investment: Residential | $ (16,178) | (865,424) | |||
Cemetery Perpectual Care Oblication [Member] | Corporate Debt Securities [Member] | |||||
Marketable Securities [Line Items] | |||||
Available for sale securities, amortized cost | 492,770 | ||||
Available for sale securities, unrecognized holding gain | 8,028 | ||||
Available for sale securities, unrecognized holding loss | |||||
Available for sale securities, estimated fair value | $ 500,798 | ||||
[1]Includes $ 938,500 1,661,800 905,700 1,641,400 |
Schedule of Fair Value of Fixed
Schedule of Fair Value of Fixed Maturity Securities (Details) (Parenthethical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | ||
Short term investment | $ 2,600,300 | [1] | $ 2,547,100 | [2] |
Membership [Member] | ||||
Short term investment | 938,500 | 905,700 | ||
Activity Stock Due [Member] | ||||
Short term investment | $ 1,661,800 | $ 1,641,400 | ||
[1]Includes $ 938,500 1,661,800 905,700 1,641,400 |
Schedule of Fair Value of Fix_2
Schedule of Fair Value of Fixed Maturity Securities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | $ 16,883,189 | $ 148,448 |
Available for sale securities, fair value | 267,774,539 | 13,122,225 |
Available for sale securities, unrecognized holding loss | 2,291,672 | 368,541 |
Available for sale securities, fair value | 13,189,587 | 5,354,617 |
Available for sale securities, unrecognized holding loss | 19,174,861 | 516,989 |
Available for sale securities, fair value | 280,964,126 | 18,476,842 |
Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 14,907 | 2,070 |
Available for sale securities, fair value | 959,010 | 346,447 |
Available for sale securities, unrecognized holding loss | 3,469 | |
Available for sale securities, fair value | 58,072 | |
Available for sale securities, unrecognized holding loss | 18,376 | 2,070 |
Available for sale securities, fair value | 1,017,082 | 346,447 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 2,685,277 | |
Available for sale securities, fair value | 79,400,753 | |
Available for sale securities, unrecognized holding loss | ||
Available for sale securities, fair value | ||
Available for sale securities, unrecognized holding loss | 2,685,277 | |
Available for sale securities, fair value | 79,400,753 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 378,067 | 1,989 |
Available for sale securities, fair value | 5,467,910 | 548,715 |
Available for sale securities, unrecognized holding loss | 80,070 | |
Available for sale securities, fair value | 429,020 | |
Available for sale securities, unrecognized holding loss | 458,137 | 1,989 |
Available for sale securities, fair value | 5,896,930 | 548,715 |
US States and Political Subdivisions Debt Securities [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 11,891 | 309 |
Available for sale securities, fair value | 760,255 | 114,208 |
Available for sale securities, unrecognized holding loss | 3,469 | |
Available for sale securities, fair value | 58,072 | |
Available for sale securities, unrecognized holding loss | 15,360 | 309 |
Available for sale securities, fair value | 818,327 | 114,208 |
Corporate Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 10,935,114 | 73,507 |
Available for sale securities, fair value | 162,995,969 | 4,638,750 |
Available for sale securities, unrecognized holding loss | 995,659 | 280,161 |
Available for sale securities, fair value | 5,781,822 | 3,771,813 |
Available for sale securities, unrecognized holding loss | 11,930,773 | 353,668 |
Available for sale securities, fair value | 168,777,791 | 8,410,563 |
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 2,884,731 | 72,952 |
Available for sale securities, fair value | 19,909,907 | 7,934,760 |
Available for sale securities, unrecognized holding loss | 1,215,943 | 88,380 |
Available for sale securities, fair value | 6,978,745 | 1,582,804 |
Available for sale securities, unrecognized holding loss | 4,100,674 | 161,332 |
Available for sale securities, fair value | 26,888,652 | 9,517,564 |
Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 1,883 | 928 |
Available for sale securities, fair value | 154,004 | 105,060 |
Available for sale securities, unrecognized holding loss | 6,633 | |
Available for sale securities, fair value | 71,112 | |
Available for sale securities, unrecognized holding loss | 8,516 | 928 |
Available for sale securities, fair value | 225,116 | 105,060 |
Cemetery Perpectual Care Oblication [Member] | US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 38 | |
Available for sale securities, fair value | 59,392 | |
Available for sale securities, unrecognized holding loss | ||
Available for sale securities, fair value | ||
Available for sale securities, unrecognized holding loss | 38 | |
Available for sale securities, fair value | 59,392 | |
Cemetery Perpectual Care Oblication [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 1,845 | 928 |
Available for sale securities, fair value | 94,612 | 105,060 |
Available for sale securities, unrecognized holding loss | 6,633 | |
Available for sale securities, fair value | 71,112 | |
Available for sale securities, unrecognized holding loss | 8,478 | 928 |
Available for sale securities, fair value | 165,724 | 105,060 |
Corporate Debt Securities [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, unrecognized holding loss | 3,016 | 1,761 |
Available for sale securities, fair value | 198,755 | 232,239 |
Available for sale securities, unrecognized holding loss | ||
Available for sale securities, fair value | ||
Available for sale securities, unrecognized holding loss | 3,016 | 1,761 |
Available for sale securities, fair value | $ 198,755 | $ 232,239 |
Schedule of Earnings on Fixed M
Schedule of Earnings on Fixed Maturity Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Balance of credit-related OTTI at January 1 | $ 264,977 | $ 370,975 |
Securities not previously impaired | 39,502 | |
Securities previously impaired | ||
Securities that matured or were sold during the period (realized) | (39,502) | (145,500) |
Securities due to an increase in expected cash flows | ||
Balance of credit-related OTTI at December 31 | $ 225,475 | $ 264,977 |
Schedule of Investments Classif
Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized cost | $ 362,750,511 | $ 236,303,310 |
Estimated fair value | 345,858,492 | 259,287,603 |
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 33,501,686 | 34,365,382 |
Estimated fair value | 29,569,712 | 35,109,209 |
Redeemable Preferred Stock [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 250,000 | 269,214 |
Estimated fair value | 260,000 | 282,597 |
Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 263,205 | 772,793 |
Estimated fair value | 254,731 | 784,765 |
Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 1,234,818 | 1,548,163 |
Estimated fair value | 1,217,308 | $ 1,601,688 |
Due in 1 year [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | ||
Estimated fair value | ||
Due in 1 year [Member] | Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 89,004 | |
Estimated fair value | 89,008 | |
Due in 1 year [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | ||
Estimated fair value | ||
Due in 2-5 years [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 139,431,212 | |
Estimated fair value | 135,093,083 | |
Due in 2-5 years [Member] | Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 77,745 | |
Estimated fair value | 71,112 | |
Due in 2-5 years [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 320,972 | |
Estimated fair value | 312,708 | |
Due in 5-10 years [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 87,552,213 | |
Estimated fair value | 84,011,366 | |
Due in 5-10 years [Member] | Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 41,621 | |
Estimated fair value | 40,816 | |
Due in 5-10 years [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 153,284 | |
Estimated fair value | 152,191 | |
Due in more than 10 years [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 102,015,400 | |
Estimated fair value | 96,924,331 | |
Due in more than 10 years [Member] | Cemetery Perpectual Care Oblication [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 54,835 | |
Estimated fair value | 53,795 | |
Due in more than 10 years [Member] | Restricted Assets [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost | 760,562 | |
Estimated fair value | $ 752,409 |
Schedule of Gain (Loss) on Inve
Schedule of Gain (Loss) on Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | ||
Gross realized gains | $ 24,281 | $ 208,698 |
Gross realized losses | (32,976) | (4,046) |
Other than temporary impairments | (39,502) | |
Total | (857,460) | 6,225,632 |
Fixed Maturity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Gross realized gains | 205,949 | 984,740 |
Gross realized losses | (43,776) | (139,728) |
Equity Securities One [Member] | ||
Net Investment Income [Line Items] | ||
Gains (losses) on securities sold | (10,519) | 390,597 |
Unrealized gains (losses) on securities held at the end of the period | (2,109,556) | 2,732,130 |
Mortgage Loans Held for Investment [Member] | ||
Net Investment Income [Line Items] | ||
Gross realized gains | 1,890,826 | |
Gross realized losses | (4,190) | |
Real Estate Held for Investment and Sale [Member] | ||
Net Investment Income [Line Items] | ||
Gross realized gains | 1,239,332 | 2,347,924 |
Gross realized losses | (825,593) | (2,426,428) |
Other Assets Including Call and Put Option Derivatives [Member] | ||
Net Investment Income [Line Items] | ||
Gross realized gains | 686,703 | 547,785 |
Gross realized losses | $ (58,522) |
Schedule of Major Categories of
Schedule of Major Categories of Net Investment Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | ||
Proceeds from sales | $ 3,091,105 | $ 2,896,351 |
Gross realized gains | 24,281 | 208,698 |
Gross realized losses | (32,976) | (4,046) |
Gross investment income | 83,650,926 | 72,679,476 |
Investment expenses | (17,453,334) | (14,414,793) |
Net investment income | 66,197,592 | 58,264,683 |
Fixed Maturity Securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 12,395,764 | 10,769,979 |
Equity Securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 511,118 | 446,337 |
Mortgage Loans Real Estate [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 34,949,763 | 28,758,614 |
Real Estate [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 14,563,269 | 12,334,989 |
Policy Student and Other Loans [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 932,362 | 940,890 |
Insurance Assignments [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 18,112,840 | 19,062,052 |
Other Investments [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | 518,865 | 131,145 |
Cash and Cash Equivalents [Member] | ||
Marketable Securities [Line Items] | ||
Gross investment income | $ 1,666,945 | $ 235,470 |
Schedule of Commercial Real Est
Schedule of Commercial Real Estate Investment (Details) | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² | |
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | $ 191,328,616 | $ 197,365,797 | |
Commercial Real Estate 1 [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | $ 152,890,656 | $ 155,393,335 | |
Total square footage | ft² | 677,392 | 677,392 | |
UTAH | Commercial Real Estate 1 [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | [1] | $ 147,627,946 | $ 150,105,948 |
Total square footage | ft² | [1] | 625,920 | 625,920 |
LOUISIANA | Commercial Real Estate 1 [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | $ 2,380,847 | $ 2,426,612 | |
Total square footage | ft² | 31,778 | 31,778 | |
MISSISSIPPI | Commercial Real Estate 1 [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | $ 2,881,863 | $ 2,860,775 | |
Total square footage | ft² | 19,694 | 19,694 | |
[1]Includes Center53 phase 1 and phase 2 |
Schedule of Annual Undiscounted
Schedule of Annual Undiscounted Cash Flows of Operating Lease Payments (Details) - Commercial Real Estate 1 [Member] | Dec. 31, 2022 USD ($) |
Net Investment Income [Line Items] | |
2023 | $ 11,650,181 |
2024 | 10,310,144 |
2025 | 9,933,831 |
2026 | 8,282,769 |
2027 | 6,720,796 |
Thereafter | 50,530,849 |
Total | $ 97,428,570 |
Schedule of Residential Real Es
Schedule of Residential Real Estate Investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | $ 191,328,616 | $ 197,365,797 | |
Real estate held for sale | 11,161,582 | 3,731,300 | |
Residential Real Estate [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | 38,437,960 | 41,972,462 | |
Residential Real Estate One [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | 11,010,029 | 1,190,602 | |
UTAH | Land Developments [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | 38,241,705 | 41,479,434 | |
Lots developed | 80 | 67 | |
Lots to be developed | 1,131 | 548 | |
UTAH | Residential Real Estate [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | [1] | 38,437,960 | 41,686,281 |
UTAH | Residential Real Estate One [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | 11,010,029 | ||
WASHINGTON | Residential Real Estate [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for investment (net of accumulated depreciation) | [2] | 286,181 | |
NEVADA | Residential Real Estate One [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | 979,640 | ||
TEXAS | Residential Real Estate One [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | 200,962 | ||
OHIO | Residential Real Estate One [Member] | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | $ 10,000 | ||
[1]Including subdivision land developments[2]Improved residential lots |
Schedule of Real Estate Owned a
Schedule of Real Estate Owned and Occupied by the Company (Details) | Dec. 31, 2022 ft² | |
Mortgage Operations [Member] | ||
Approximate square footage | 221,000 | |
Square footage occupied by the company | 50% | |
Life Insurance Operations [Member] | ||
Approximate square footage | 19,694 | |
Square footage occupied by the company | 28% | |
Life Insurance Operations 1 [Member] | ||
Approximate square footage | 12,274 | [1] |
Square footage occupied by the company | 100% | [1] |
Life Insurance Sales [Member] | ||
Approximate square footage | 8,059 | [1] |
Square footage occupied by the company | 100% | [1] |
Life Insurance Sales 1 [Member] | ||
Approximate square footage | 1,560 | [1] |
Square footage occupied by the company | 100% | [1] |
Life Insurance Sales 2 [Member] | ||
Approximate square footage | 1,737 | [1] |
Square footage occupied by the company | 100% | [1] |
[1]Included in property and equipment on the consolidated balance sheets |
Schedule of Allowance for Loan
Schedule of Allowance for Loan Losses as Contra Asset Account (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Marketable Securities [Line Items] | |||
Financing receivable, allowance for credit loss, beginning | $ 1,699,902 | $ 2,005,127 | |
Allowance for credit losses, charge-offs | |||
Allowance for credit losses, provision | 270,409 | (305,225) | |
Financing receivable, allowance for credit loss, ending balance | 1,970,311 | 1,699,902 | |
Financing receivable, allowance for credit losses, individually evaluated for impairment | 225,667 | 105,384 | |
Financing receivable, allowance for credit losses, collectively evaluated for impairment | 1,744,644 | 1,594,518 | |
Mortgage loans | 312,183,703 | 280,334,517 | |
Financing receivable, individually evaluated for impairment | 2,567,385 | 4,272,028 | |
Financing receivable, collectively evaluated for impairment | 309,616,318 | 276,062,489 | [1] |
Commercial Loan [Member] | |||
Marketable Securities [Line Items] | |||
Financing receivable, allowance for credit loss, beginning | 187,129 | 187,129 | |
Allowance for credit losses, charge-offs | |||
Allowance for credit losses, provision | |||
Financing receivable, allowance for credit loss, ending balance | 187,129 | 187,129 | |
Financing receivable, allowance for credit losses, individually evaluated for impairment | |||
Financing receivable, allowance for credit losses, collectively evaluated for impairment | 187,129 | 187,129 | |
Mortgage loans | 46,311,955 | 51,683,022 | |
Financing receivable, individually evaluated for impairment | 405,000 | 1,723,372 | |
Financing receivable, collectively evaluated for impairment | 45,906,955 | 49,959,650 | [1] |
Residential Mortgage [Member] | |||
Marketable Securities [Line Items] | |||
Financing receivable, allowance for credit loss, beginning | 1,469,571 | 1,774,796 | |
Allowance for credit losses, charge-offs | |||
Allowance for credit losses, provision | 270,409 | (305,225) | |
Financing receivable, allowance for credit loss, ending balance | 1,739,980 | 1,469,571 | |
Financing receivable, allowance for credit losses, individually evaluated for impairment | 225,667 | 105,384 | |
Financing receivable, allowance for credit losses, collectively evaluated for impairment | 1,514,313 | 1,364,187 | |
Mortgage loans | 93,355,623 | 53,533,712 | |
Financing receivable, individually evaluated for impairment | 2,162,385 | 2,548,656 | |
Financing receivable, collectively evaluated for impairment | 91,193,238 | 50,985,056 | [1] |
Residential Construction [Member] | |||
Marketable Securities [Line Items] | |||
Financing receivable, allowance for credit loss, beginning | 43,202 | 43,202 | |
Allowance for credit losses, charge-offs | |||
Allowance for credit losses, provision | |||
Financing receivable, allowance for credit loss, ending balance | 43,202 | 43,202 | |
Financing receivable, allowance for credit losses, individually evaluated for impairment | |||
Financing receivable, allowance for credit losses, collectively evaluated for impairment | 43,202 | 43,202 | |
Mortgage loans | 172,516,125 | 175,117,783 | |
Financing receivable, individually evaluated for impairment | |||
Financing receivable, collectively evaluated for impairment | $ 172,516,125 | $ 175,117,783 | [1] |
[1]Amount corrected from that previously reported due to a typographical error. |
Schedule of Aging of Mortgage L
Schedule of Aging of Mortgage Loans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | $ 312,183,703 | $ 280,334,517 | ||
Mortgage loans, allowance for loan losses | (1,970,311) | (1,699,902) | $ (2,005,127) | |
Mortgage loans, unamortized deferred loan fees, net | (1,746,605) | (918,586) | ||
Mortgage loans, unamortized discounts, net | (342,860) | (409,983) | ||
Past Due 30 to 59 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 4,553,390 | 4,480,953 | ||
Past Due 60 to 89 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 814,184 | 681,019 | ||
Past Due 90 or More Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 1,286,211 | 3,775,434 | |
In Foreclosure [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 1,281,174 | 496,594 | |
Total Past Due [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 7,934,959 | 9,434,000 | ||
Current [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 304,248,744 | 270,900,517 | ||
Net Mortgage Loans [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 308,123,927 | 277,306,046 | ||
Commercial Loan [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 46,311,955 | 51,683,022 | ||
Mortgage loans, allowance for loan losses | (187,129) | (187,129) | (187,129) | |
Mortgage loans, unamortized deferred loan fees, net | (199,765) | (36,813) | ||
Mortgage loans, unamortized discounts, net | (230,987) | (240,614) | ||
Commercial Loan [Member] | Past Due 30 to 59 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 1,000,000 | |||
Commercial Loan [Member] | Past Due 60 to 89 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 100,204 | |||
Commercial Loan [Member] | Past Due 90 or More Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 1,723,372 | ||
Commercial Loan [Member] | In Foreclosure [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 405,000 | ||
Commercial Loan [Member] | Total Past Due [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 1,405,000 | 1,823,576 | ||
Commercial Loan [Member] | Current [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 44,906,955 | 49,859,446 | ||
Commercial Loan [Member] | Net Mortgage Loans [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 45,694,074 | 51,218,466 | ||
Residential Mortgage [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 93,355,623 | 53,533,712 | ||
Mortgage loans, allowance for loan losses | (1,739,980) | (1,469,571) | (1,774,796) | |
Mortgage loans, unamortized deferred loan fees, net | (1,212,994) | (498,600) | ||
Mortgage loans, unamortized discounts, net | (111,873) | (169,369) | ||
Residential Mortgage [Member] | Past Due 30 to 59 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 3,553,390 | 3,117,826 | ||
Residential Mortgage [Member] | Past Due 60 to 89 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 814,184 | 580,815 | ||
Residential Mortgage [Member] | Past Due 90 or More Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 1,286,211 | 2,052,062 | |
Residential Mortgage [Member] | In Foreclosure [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | 876,174 | 496,594 | |
Residential Mortgage [Member] | Total Past Due [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 6,529,959 | 6,247,297 | ||
Residential Mortgage [Member] | Current [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 86,825,664 | 47,286,415 | ||
Residential Mortgage [Member] | Net Mortgage Loans [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 90,290,776 | 51,396,172 | ||
Residential Construction [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 172,516,125 | 175,117,783 | ||
Mortgage loans, allowance for loan losses | (43,202) | (43,202) | $ (43,202) | |
Mortgage loans, unamortized deferred loan fees, net | (333,846) | (383,173) | ||
Mortgage loans, unamortized discounts, net | ||||
Residential Construction [Member] | Past Due 30 to 59 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 1,363,127 | |||
Residential Construction [Member] | Past Due 60 to 89 Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | ||||
Residential Construction [Member] | Past Due 90 or More Days [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | |||
Residential Construction [Member] | In Foreclosure [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | [1] | |||
Residential Construction [Member] | Total Past Due [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 1,363,127 | |||
Residential Construction [Member] | Current [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | 172,516,125 | 173,754,656 | ||
Residential Construction [Member] | Net Mortgage Loans [Member] | ||||
Marketable Securities [Line Items] | ||||
Mortgage loans during period | $ 172,139,077 | $ 174,691,408 | ||
[1]Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |
Schedule of Impaired Mortgage L
Schedule of Impaired Mortgage Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commercial Loan [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 405,000 | $ 1,723,372 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 405,000 | 1,723,372 |
Impaired Financing Receivable, with No Related Allowance | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 762,175 | 1,053,865 |
Impaired Financing Receivable, with No Interest Income Recognized | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | ||
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | ||
Impaired Financing Receivable, with Interest Income Recognized | ||
Commercial Loan [Member] | Total [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 405,000 | 1,723,372 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 405,000 | 1,723,372 |
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 762,175 | 1,053,865 |
Impaired Financing Receivable, with Interest Income Recognized | ||
Residential Mortgage [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,142,494 | 1,591,368 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,142,494 | 1,591,368 |
Impaired Financing Receivable, with No Related Allowance | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 998,798 | 2,731,421 |
Impaired Financing Receivable, with No Interest Income Recognized | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,019,891 | 957,288 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,019,891 | 957,288 |
Impaired Financing Receivable, Related Allowance | 225,667 | 105,384 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 683,922 | 726,449 |
Impaired Financing Receivable, with Interest Income Recognized | ||
Residential Mortgage [Member] | Total [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,162,385 | 2,548,656 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,162,385 | 2,548,656 |
Impaired Financing Receivable, Related Allowance | 225,667 | 105,384 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,682,720 | 3,457,870 |
Impaired Financing Receivable, with Interest Income Recognized | ||
Residential Construction [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | ||
Impaired Financing Receivable, with No Related Allowance | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 103,976 | 100,481 |
Impaired Financing Receivable, with No Interest Income Recognized | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | ||
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | ||
Impaired Financing Receivable, with Interest Income Recognized | ||
Residential Construction [Member] | Total [Member] | ||
Marketable Securities [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | ||
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 103,976 | 100,481 |
Impaired Financing Receivable, with Interest Income Recognized |
Schedule of Credit Risk of Mort
Schedule of Credit Risk of Mortgage Loans Based on Performance Status (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Mortgage loans | $ 312,183,703 | $ 280,334,517 |
Commercial Loan [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 46,311,955 | 51,683,022 |
Residential Mortgage [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 93,355,623 | 53,533,712 |
Residential Construction [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 172,516,125 | 175,117,783 |
Performing Financing Receivable [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 309,616,318 | 276,062,489 |
Performing Financing Receivable [Member] | Commercial Loan [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 45,906,955 | 49,959,650 |
Performing Financing Receivable [Member] | Residential Mortgage [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 91,193,238 | 50,985,056 |
Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 172,516,125 | 175,117,783 |
Nonperforming Financing Receivable [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 2,567,385 | 4,272,028 |
Nonperforming Financing Receivable [Member] | Commercial Loan [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 405,000 | 1,723,372 |
Nonperforming Financing Receivable [Member] | Residential Mortgage [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 2,162,385 | 2,548,656 |
Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | ||
Performing and Non-Performing [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 312,183,703 | 280,334,517 |
Performing and Non-Performing [Member] | Commercial Loan [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 46,311,955 | 51,683,022 |
Performing and Non-Performing [Member] | Residential Mortgage [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | 93,355,623 | 53,533,712 |
Performing and Non-Performing [Member] | Residential Construction [Member] | ||
Marketable Securities [Line Items] | ||
Mortgage loans | $ 172,516,125 | $ 175,117,783 |
Schedule of Mortgage loans Held
Schedule of Mortgage loans Held for Investment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Net Investment Income [Line Items] | ||
Total | $ 312,183,703 | $ 280,334,517 |
Principal Amounts Due in 1 Year | 178,544,324 | |
Principal Amounts Due in 2-5 Year | 43,307,740 | |
Principal Amounts Due Thereafter | 90,331,639 | |
Residential Mortgage [Member] | ||
Net Investment Income [Line Items] | ||
Total | 93,355,623 | |
Principal Amounts Due in 1 Year | 1,332,862 | |
Principal Amounts Due in 2-5 Year | 10,000,042 | |
Principal Amounts Due Thereafter | 82,022,719 | |
Residential Construction [Member] | ||
Net Investment Income [Line Items] | ||
Total | 172,516,125 | |
Principal Amounts Due in 1 Year | 167,805,559 | |
Principal Amounts Due in 2-5 Year | 4,710,566 | |
Principal Amounts Due Thereafter | ||
Commercial [Member] | ||
Net Investment Income [Line Items] | ||
Total | 46,311,955 | |
Principal Amounts Due in 1 Year | 9,405,903 | |
Principal Amounts Due in 2-5 Year | 28,597,132 | |
Principal Amounts Due Thereafter | $ 8,308,920 |
Investments (Details Narrative)
Investments (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) ft² | ||
Net Investment Income [Line Items] | |||
Credit loss recognized | $ 39,502 | ||
Maximum borrowing capacity | 93,034,880 | ||
Other borrowings | 0 | ||
Remaining borrowing capacity | 86,032,116 | ||
Realized investment loss | 817,000 | ||
Realized investment gains | 933,045 | ||
Net Investment Income | 66,197,592 | 58,264,683 | |
Loans payable to Bank | 161,712,804 | 251,286,927 | |
Depreciation expense | 2,496,906 | 1,935,613 | |
Real estate held for sale | 11,161,582 | 3,731,300 | |
Foreclosed residential real estate included in residential real estate held for investment | $ 11,010,029 | $ 1,190,602 | |
Loan interest rate | 7% | 7% | |
Interest not accrued on non-performing loans | $ 226,000 | $ 236,000 | |
UTAH | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 64% | 70% | |
FLORIDA | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 10% | 7% | |
CALIFORNIA | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 5% | 5% | |
TEXAS | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 5% | 4% | |
NEVADA | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 3% | 4% | |
ARIZONA | |||
Net Investment Income [Line Items] | |||
Loan interest rate | 3% | 2% | |
Minimum [Member] | |||
Net Investment Income [Line Items] | |||
Lease term | 3 years | ||
Loan interest rate | 2% | ||
Loan term | 9 months | ||
Maximum [Member] | |||
Net Investment Income [Line Items] | |||
Lease term | 10 years | ||
Loan interest rate | 10.50% | ||
Loan term | 30 years | ||
Restricted Investments [Member] | |||
Net Investment Income [Line Items] | |||
Securities deposit | $ 11,032,165 | $ 10,168,853 | |
Cemeteries and Mortuaries [Member] | |||
Net Investment Income [Line Items] | |||
Net Investment Income | $ 2,404,277 | $ 1,472,295 | |
713 Securities [Member] | |||
Net Investment Income [Line Items] | |||
Average market value over amortized cost | 93.60% | ||
55 Securities [Member] | |||
Net Investment Income [Line Items] | |||
Average market value over amortized cost | 97.30% | ||
Commercial Real Estate 1 [Member] | |||
Net Investment Income [Line Items] | |||
Collateral for bank loans | $ 129,330,119 | $ 134,251,205 | |
Loans payable to Bank | 97,112,131 | 85,663,148 | |
Impairment of real estate | 2,028,378 | ||
Depreciation expense | 6,090,575 | 3,592,207 | |
Real estate held for sale | $ 151,553 | $ 2,540,698 | |
Total square footage | ft² | 225,551 | ||
Commercial Real Estate 1 [Member] | KANSAS | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | $ 2,000,000 | ||
Total square footage | ft² | 222,679 | ||
Commercial Real Estate 1 [Member] | LAOS | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | $ 389,145 | ||
Total square footage | ft² | 2,872 | ||
Commercial Real Estate 1 [Member] | MISSISSIPPI | |||
Net Investment Income [Line Items] | |||
Real estate held for sale | [1] | $ 151,553 | $ 151,553 |
Total square footage | ft² | [1] | ||
Residential Real Estate [Member] | |||
Net Investment Income [Line Items] | |||
Impairment of real estate | $ 94,400 | ||
Depreciation expense | $ 10,592 | $ 12,850 | |
[1]Approximately 93 acres of undeveloped land |
Schedule of Aggregate Fair Valu
Schedule of Aggregate Fair Value Loans Held for Sale (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Held For Sale | ||
Aggregate fair value | $ 141,179,620 | $ 302,776,827 |
Unpaid principal balance | 141,337,811 | 294,481,503 |
Unrealized (loss) gain | $ (158,191) | $ 8,295,324 |
Schedule of Mortgage Fee Income
Schedule of Mortgage Fee Income for Loans Held for Sale (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Loans Held For Sale | ||||
Loan fees | $ 24,184,972 | $ 37,723,433 | ||
Interest income | 9,666,149 | 9,385,469 | ||
Secondary gains | 153,870,807 | [1] | 230,417,029 | |
Change in fair value of loan commitments | (4,308,638) | (3,113,095) | ||
Change in fair value of loans held for sale | (8,834,797) | (8,783,376) | ||
Provision for loan loss reserve | [2] | (1,078,812) | (2,211,230) | |
Mortgage fee income | $ 173,499,681 | $ 263,418,230 | ||
[1]Includes a net gain of $ 34,051,938 |
Schedule of Mortgage Fee Inco_2
Schedule of Mortgage Fee Income for Loans Held for Sale (Details) (Parenthethical) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Held For Sale | |||
Mortgage servicing rights | $ 34,051,938 | $ 34,051,938 |
Summary of Loan Loss Reserve In
Summary of Loan Loss Reserve Included in Other Liabilities and Accrued Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Loans Held For Sale | |||
Balance, beginning of period | $ 2,447,139 | $ 20,583,618 | |
Provision on current loan originations (1) | [1] | 1,078,812 | 2,211,230 |
Charge-offs, net of recaptured amounts | (1,800,284) | (20,347,709) | |
Balance, end of period | $ 1,725,667 | $ 2,447,139 | |
[1]Included in Mortgage fee income |
Loans Held for Sale (Details Na
Loans Held for Sale (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Loans Held For Sale | |||
Provision on current loan originations | [1] | $ 1,078,812 | $ 2,211,230 |
Loan increase per point | $ 319 | $ 390 | |
Amount of loan increased, per point | $ 1,000,000 | $ 1,000,000 | |
[1]Included in Mortgage fee income |
Schedule of Receivables (Detail
Schedule of Receivables (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||||
Trade contracts | [1] | $ 5,392,779 | $ 5,298,636 | $ 4,119,988 |
Receivables from sales agents | 2,209,185 | 2,360,807 | ||
Other | 23,200,919 | 12,457,398 | ||
Total receivables | 30,802,883 | 20,116,841 | ||
Allowance for doubtful accounts | (2,229,791) | (1,800,725) | ||
Net receivables | $ 28,573,092 | $ 18,316,116 | ||
[1]Included in Receivables, net on the consolidated balance sheets |
Schedule of Value of Business A
Schedule of Value of Business Acquired (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance at beginning of year | $ 8,421,432 | $ 8,955,249 | |
Value of business acquired | 2,136,085 | 586,840 | |
Imputed interest at 7% included in earnings | [1] | 642,919 | 613,028 |
Amortization included in earnings | [1] | (1,907,250) | (1,728,157) |
Shadow amortization included in other comprehensive income | 510,550 | (5,528) | |
Net amortization | (753,781) | (1,120,657) | |
Balance at end of year | $ 9,803,736 | $ 8,421,432 | |
[1]Included in Amortization of deferred policy and pre-need acquistion costs and value of business acquired on the consolidated statements of earnings |
Schedule of Value of Business_2
Schedule of Value of Business Acquired (Details) (Parenthethical) | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Debt instrument, interest rate, stated percentage | 7% | 7% |
Schedule of Acquisitions Net Am
Schedule of Acquisitions Net Amortization Charged to Income (Details) | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 1,181,000 |
2024 | 1,098,000 |
2025 | 995,000 |
2026 | 924,000 |
2027 | 841,000 |
Thereafter | 4,764,736 |
Total | $ 9,803,736 |
Schedule of Goodwill by Segment
Schedule of Goodwill by Segment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-Lived Intangible Assets [Line Items] | ||||
Goodwill, gross | $ 5,253,783 | $ 5,253,783 | $ 3,519,588 | |
Accumulated impairment | ||||
Total goodwill, net | 5,253,783 | 5,253,783 | 3,519,588 | |
Acquisition | 1,734,195 | |||
Life Insurance [Member] | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Goodwill, gross | 2,765,570 | 2,765,570 | 2,765,570 | |
Accumulated impairment | ||||
Total goodwill, net | 2,765,570 | 2,765,570 | 2,765,570 | |
Acquisition | ||||
Cemetery/Mortuary [Member] | ||||
Indefinite-Lived Intangible Assets [Line Items] | ||||
Goodwill, gross | 2,488,213 | 2,488,213 | 754,018 | |
Accumulated impairment | ||||
Total goodwill, net | 2,488,213 | 2,488,213 | $ 754,018 | |
Acquisition | $ 1,734,195 | [1] | ||
[1]See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens and Holbrook Mortuary |
Schedule of Carrying Value of I
Schedule of Carrying Value of Intangible Asset (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ (553,333) | $ (297,333) | |
Finite-lived intangible assets, net | $ 3,256,667 | 3,512,667 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | [1] | 15 years | |
Finite-lived intangible assets, gross | [1] | $ 2,100,000 | 2,100,000 |
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Finite-lived intangible assets, gross | $ 890,000 | 890,000 | |
Trade Names Two [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | [2] | 15 years | |
Finite-lived intangible assets, gross | [2] | $ 610,000 | 610,000 |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | [1] | 15 years | |
Finite-lived intangible assets, gross | [1] | $ 210,000 | $ 210,000 |
[1]See Note 20 regarding the acquisition of Rivera Funerals, Cremations and Memorial Gardens[2]Kilpatrick Life |
Schedule of Estimate of Future
Schedule of Estimate of Future Amortization for Other Intangible Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 3,256,667 | $ 3,512,667 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 254,000 | |
2024 | 254,000 | |
2025 | 254,000 | |
2026 | 254,000 | |
2027 | 254,000 | |
Thereafter | 1,986,667 | |
Total | $ 3,256,667 |
Value of Business Acquired, G_3
Value of Business Acquired, Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Weighted average amortization period | 5 years 8 months 12 days | |
Amortization expense | $ 256,000 | $ 99,999 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 34,113,705 | $ 41,331,708 |
Less accumulated depreciation | (13,534,056) | (19,814,110) |
Total | 20,579,649 | 21,517,598 |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,545,799 | 16,532,593 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17,567,906 | $ 24,799,115 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 2,496,906 | $ 1,935,613 |
Property, plant and equipment, gross | $ 34,113,705 | 41,331,708 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,640,755 | |
Accumulated depreciation | $ 532,074 |
Summary of Bank Loans Payable (
Summary of Bank Loans Payable (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total bank and other loans | $ 161,712,804 | $ 251,286,927 | |
Finance lease liabilities | 31,082 | 62,767 | |
Current Installment | 65,560,608 | 164,747,672 | |
Bank and other loans, excluding current installments | 96,152,196 | 86,539,255 | |
Note Payable 1 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 1,690,892 | 2,481,878 | |
Note Payable 2 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 1,825,608 | ||
Note Payable 3 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 34,547,181 | ||
Note Payable 4 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 48,613,833 | ||
Note Payable 5 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 39,298,298 | 40,090,359 | |
Note Payable 6 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 9,200,000 | 9,200,000 | |
Note Payable 7 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 17,978,527 | 66,305,025 | |
Note Payable 8 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 29,768,762 | 50,555,909 | |
Note Payable 9 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 15,131,410 | 43,196,986 | |
Note Payable 10 [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | 1,764,386 | ||
Other Short-term Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | [1] | 1,250,000 | |
Other Loans Payable [Member] | |||
Debt Instrument [Line Items] | |||
Total bank and other loans | $ 6,828 | ||
[1]Revolving Line of Credit |
Summary of Bank Loans Payable_2
Summary of Bank Loans Payable (Details) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 7,020,000,000 | ||
Debt instrument interest rate | 7% | 7% | |
Note Payable 1 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 75,108 | $ 75,108 | |
Note Payable 2 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 9,775 | $ 9,775 | |
Debt instrument interest rate | 4.329% | 4.329% | |
Debt instrument, book value | $ 3,023,000 | $ 3,023,000 | |
Note Payable 3 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4% | 4% | |
Debt instrument, book value | $ 65,422,000 | $ 65,422,000 | |
Debt instrument interest rate effective percentage | 1% | 1% | |
Debt instrument basis spread variable rate | 3% | 3% | |
Note Payable 4 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 243,781 | $ 243,781 | |
Debt instrument interest rate | 3.85% | 3.85% | |
Debt instrument, book value | $ 65,422,000 | $ 65,422,000 | |
Note Payable 5 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 179,562 | $ 179,562 | |
Debt instrument interest rate | 3.30% | 3.30% | |
Debt instrument, book value | $ 46,960,000 | $ 46,960,000 | |
Note Payable 6 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.7865% | 4.7865% | |
Debt instrument, book value | $ 16,948,000 | $ 16,948,000 | |
Note Payable 7 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 100,000,000 | $ 100,000,000 | |
Debt instrument basis spread variable rate | 2.10% | 2.10% | |
Note Payable 8 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 100,000,000 | $ 100,000,000 | |
Debt instrument basis spread variable rate | 2% | 2% | |
Note Payable 9 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 75,000,000 | $ 75,000,000 | |
Debt instrument basis spread variable rate | 2.50% | 2.50% | |
Note Payable 10 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 50,000,000 | $ 50,000,000 | |
Debt instrument basis spread variable rate | 2.10% | 2.10% |
Schedule of Combined Maturities
Schedule of Combined Maturities of Bank Loans Payable Lines of Credit and Notes and Contracts Payable (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Bank and other loans payable | $ 161,712,804 | $ 251,286,927 |
Due in year 1 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | 65,560,608 | |
Due in Year 2 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | 2,785,674 | |
Due in Year 3 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | 1,981,991 | |
Due in Year 4 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | 1,883,515 | |
Due in Year 5 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | 1,997,551 | |
DueThereafter [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Bank loans payable, lines of credit and notes and contracts payable | $ 87,503,465 |
Bank and Other Loans Payable (D
Bank and Other Loans Payable (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 93,034,880 | |||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 345,858,492 | $ 259,287,603 | ||
Federal home loan bank stock | 2,600,300 | [1] | 2,547,100 | [2] |
Interest expense | 7,830,443 | 7,127,516 | ||
Interest paid | 7,697,921 | 7,290,867 | ||
Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | 2,000,000 | |||
Line of credit | $ 0 | |||
Line of credit, maturity date | Dec. 31, 2023 | |||
Bank [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.25% | |||
Debt instrument basis spread variable rate | 3% | |||
Bank 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 2,500,000 | |||
Line of credit | $ 0 | |||
Debt instrument basis spread variable rate | 2.35% | |||
Line of credit, maturity date | Dec. 31, 2023 | |||
Wells Fargo Bank N.A. [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||
Line of credit, maturity date | Jun. 02, 2023 | |||
Line of credit, interest rate, description | The agreement charges interest at the 1-Month SOFR rate plus 2.1% and matures on June 2, 2023 | |||
Adjustment of debt | $ 1 | |||
Texas Capital Bank N.A. [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||
Line of credit, maturity date | Nov. 09, 2023 | |||
Line of credit, interest rate, description | The agreement charges interest at the 1-Month SOFR rate plus 2% | |||
Adjustment of debt | $ 1 | |||
Comerica Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 75,000,000 | |||
Line of credit, maturity date | May 26, 2023 | |||
Line of credit, interest rate, description | The agreement charges interest at the 1-Month SOFR rate plus 2.50% | |||
Adjustment of debt | $ 1 | |||
U.S. Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | |||
Line of credit, maturity date | Jun. 02, 2023 | |||
Line of credit, interest rate, description | The agreement charges interest at 2.10% plus the greater of (i) 0% | |||
Adjustment of debt | $ 1 | |||
Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit | $ 622,293 | |||
Land development | 525,145 | |||
Maximum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit | 968,903 | |||
Minimum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of credit | 443,758 | |||
Federal Home Loan Bank of Des Moines [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | 80,312,445 | 19,259,722 | ||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 86,338,880 | 20,244,900 | ||
Line of credit | 0 | 0 | ||
Federal home loan bank stock | 856,800 | 826,800 | ||
Federal Home Loan Bank of Dallas [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | 5,719,671 | 7,794,625 | ||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 6,696,100 | 8,774,352 | ||
Line of credit | 0 | 0 | ||
Federal home loan bank stock | $ 1,743,500 | $ 1,720,300 | ||
[1]Includes $ 938,500 1,661,800 905,700 1,641,400 |
Schedule of Restricted Assets i
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available for sale securities, amortized cost | $ 362,750,511 | $ 236,303,310 | |||
Available for sale securities, unrecognized holding gain | 2,282,842 | 23,501,282 | |||
Available for sale securities, unrecognized holding loss | (19,174,861) | (516,989) | |||
Available for sale securities, estimated fair value | 345,858,492 | 259,287,603 | |||
Available-for-sale securities, amortized cost basis | 9,942,265 | 8,275,772 | |||
Available-for-sale securities, gross unrealized gain | 11,682,526 | 11,596,414 | |||
Mortgage loans on real estate and construction | 312,183,703 | 280,334,517 | |||
Cash and cash equivalents | 133,483,817 | 141,414,282 | $ 115,465,086 | ||
Total restricted assets | 18,935,055 | 16,938,122 | |||
Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available for sale securities, amortized cost | 1,234,818 | 1,548,163 | |||
Available for sale securities, unrecognized holding gain | 866 | 55,595 | |||
Available for sale securities, unrecognized holding loss | (18,376) | (2,070) | |||
Available for sale securities, estimated fair value | 1,217,308 | 1,601,688 | |||
Cash and cash equivalents | 10,638,034 | [1] | 9,000,293 | [2] | |
Total restricted assets | 18,935,055 | 16,938,122 | |||
US States and Political Subdivisions Debt Securities [Member] | Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available for sale securities, amortized cost | 1,033,047 | 1,058,449 | |||
Available for sale securities, unrecognized holding gain | 866 | 42,456 | |||
Available for sale securities, unrecognized holding loss | (15,360) | (309) | |||
Available for sale securities, estimated fair value | 1,018,553 | 1,100,596 | |||
Corporate Debt Securities [Member] | Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available for sale securities, amortized cost | 201,771 | 489,714 | |||
Available for sale securities, unrecognized holding gain | 13,139 | ||||
Available for sale securities, unrecognized holding loss | (3,016) | (1,761) | |||
Available for sale securities, estimated fair value | 198,755 | 501,092 | |||
Industrial Miscellaneous And All Other [Member] | Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 4,955,360 | 2,781,041 | |||
Available for sale securities, unrecognized holding gain | 703,049 | 852,443 | |||
Available for sale securities, unrecognized holding loss | (310,165) | (29,662) | |||
Available-for-sale securities, gross unrealized gain | 5,348,244 | 3,603,822 | |||
Equity Securities One [Member] | Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Available-for-sale securities, amortized cost basis | 4,955,360 | 2,781,041 | |||
Available for sale securities, unrecognized holding gain | 703,049 | 852,443 | |||
Available for sale securities, unrecognized holding loss | (310,165) | (29,662) | |||
Available-for-sale securities, gross unrealized gain | 5,348,244 | 3,603,822 | |||
Residential Construction [Member] | Restricted Assets [Member] | |||||
Impairment Effects on Earnings Per Share [Line Items] | |||||
Mortgage loans on real estate and construction | $ 1,731,469 | $ 2,732,319 | |||
[1]Including cash and cash equivalents of $ 8,527,620 7,869,295 |
Schedule of Restricted Assets_2
Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | $ 133,483,817 | $ 141,414,282 | $ 115,465,086 | ||
Restricted Assets [Member] | |||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | 10,638,034 | [1] | 9,000,293 | [2] | |
Restricted Assets [Member] | Security National Life Insurance [Member] | |||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | $ 8,527,620 | $ 7,869,295 | |||
[1]Including cash and cash equivalents of $ 8,527,620 7,869,295 |
Cemetery Perpetual Care Trust_3
Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | ||
Credit loss recognized | $ 39,502 | |
Cemetery Perpectual Care Oblication [Member] | ||
Net Investment Income [Line Items] | ||
Credit loss recognized | ||
Security National Life Insurance [Member] | ||
Net Investment Income [Line Items] | ||
Surplus notes receivable | $ 4,000,000 | $ 4,000,000 |
5 Securities [Member] | ||
Net Investment Income [Line Items] | ||
Average market value over amortized cost | 96.40% | |
2 Securities [Member] | ||
Net Investment Income [Line Items] | ||
Average market value over amortized cost | 99.10% | |
17 Securities [Member] | ||
Net Investment Income [Line Items] | ||
Average market value over amortized cost | 98.20% | |
4 Securities [Member] | ||
Net Investment Income [Line Items] | ||
Average market value over amortized cost | 99.40% | |
Restricted Assets [Member] | ||
Net Investment Income [Line Items] | ||
Credit loss recognized | $ 0 | $ 0 |
Summary of Income Tax Liability
Summary of Income Tax Liability (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Current | $ 16,352,190 | $ (1,558,687) |
Deferred | 14,358,337 | 32,594,783 |
Total | $ 30,710,527 | $ 31,036,096 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Future policy benefits | $ (13,974,221) | $ (13,015,255) |
Loan loss reserve | (448,673) | (636,256) |
Unearned premium | (582,459) | (642,755) |
Net operating loss | (237,855) | (898,029) |
Deferred compensation | (2,166,593) | (2,750,406) |
Deposit obligations | (631,232) | (635,878) |
Tax on unrealized appreciation | (2,590,726) | |
Other | (601,335) | (1,712,895) |
Less: Valuation allowance | 1,506,144 | 882,535 |
Total deferred tax assets | (19,726,950) | (19,408,939) |
Liabilities | ||
Deferred policy acquisition costs | 17,511,778 | 17,166,200 |
Basis difference in property, equipment and real estate | 11,959,391 | 9,247,242 |
Value of business acquired | 2,058,785 | 1,768,501 |
Deferred gains | 1,490,946 | 15,598,360 |
Trusts | 1,064,387 | 1,064,387 |
Tax on unrealized appreciation | 7,159,032 | |
Total deferred tax liabilities | 34,085,287 | 52,003,722 |
Net deferred tax liability | $ 14,358,337 | $ 32,594,783 |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||
Federal | $ 15,346,331 | $ 629,921 |
State | 3,294,234 | 343,428 |
Total Current Income Tax Expense (Benefit) | 18,640,565 | 973,349 |
Deferred | ||
Federal | (7,400,620) | 9,832,556 |
State | (2,553,385) | 1,475,880 |
Total Deferred Income Tax Expense (Benefit) | (9,954,005) | 11,308,436 |
Total | $ 8,686,560 | $ 12,281,785 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Computed expense at statutory rate | $ 7,219,141 | $ 10,878,163 |
State tax expense, net of federal tax benefit | 585,269 | 1,437,255 |
Change in valuation allowance | 623,609 | (79,385) |
Other, net | 258,541 | 45,752 |
Total | $ 8,686,560 | $ 12,281,785 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Details) | Dec. 31, 2022 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,070,413 |
Year of Expiration 2023 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | |
Year of Expiration 2024 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | |
Year of Expiration 2025 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | |
Year of Expiration 2026 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | |
Year Of Expiration 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | |
Year of Expiration Thereafter up through 2037 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards | 1,070,413 |
Indefinite Carryforwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 25.30% | 23.70% |
Federal statutory income tax rate, percent | 21% |
Reinsurance, Commitments and _2
Reinsurance, Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Percentage of concentration credit risk | 100% | |
Balance, loan loss reserve | $ 1,725,667 | $ 2,447,139 |
Other commitments | 231,250,000 | |
Payment for other liabilities | $ 175,754,000 | |
Loan interest rate | 7% | 7% |
Insurance Receivable [Member] | Credit Concentration Risk [Member] | Single Reinsurer [Member] | ||
Loss Contingencies [Line Items] | ||
Percentage of concentration credit risk | 93.70% | 93.60% |
Insurance Receivable [Member] | Credit Concentration Risk [Member] | Single Reinsurer [Member] | Whole Life Insurance [Member] | ||
Loss Contingencies [Line Items] | ||
Percentage of concentration credit risk | 11.30% | 11.90% |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Reinsurance payable | $ 25,000 | |
Loan interest rate | 2% | |
Minimum [Member] | Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Loan commitment ranges | 50% | |
Loan interest rate | 5.25% | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Reinsurance payable | $ 100,000 | |
Loan interest rate | 10.50% | |
Maximum [Member] | Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Loan commitment ranges | 80% | |
Loan interest rate | 8.50% |
Retirement Plans (Details Narra
Retirement Plans (Details Narrative) - Employee Stock Ownership Plan [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Pretax contributions | $ 20,500 | $ 19,500 |
Employees stock ownership plan description | The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation. | |
Contribution to plan | $ 2,573,956 | 2,820,315 |
Compensation expenses | 900,000 | |
Accrued liability of retirement plan | $ 401,529 | 535,370 |
Retirement description | Under the terms of the employment agreement, this individual is entitled to receive retirement benefits from the Company for a period of ten years in an amount equal to 50% of his rate of compensation at the time of his retirement | |
Retirement compensation | $ 267,685 | |
Payment to retirement compensation | $ 133,843 | 133,843 |
Executive Officer [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Employees stock ownership plan description | Effective December 2, 2022, the Board members approved a motion to extend the Chief Executive Officer’s employment agreement, dated December 4, 2012, for an additional two-year term ending December 2024. In the event of disability, the Chief Executive Officer’s salary would be continued for up to five years at 75% of its current level of compensation. In the event of a sale or merger of the Company and the Chief Executive Officer is not retained in his current position, the Company would be obligated to continue paying the Chief Executive Officer’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that the Chief Executive Officer is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current level of compensation. | |
Accrued liability of retirement plan | $ 7,556,363 | $ 7,556,363 |
Summary of Activities in Shares
Summary of Activities in Shares of Capital Stock (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares, Outstanding | 17,642,722 | 16,595,783 |
Exercise of stock options | 109,587 | 160,282 |
Stock dividends | 889,554 | 837,410 |
Conversion of Class C to Class A | 116,168 | 49,247 |
Common Stock, Shares, Outstanding | 18,758,031 | 17,642,722 |
Common Class C [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares, Outstanding | 2,866,565 | 2,679,603 |
Exercise of stock options | 104,656 | |
Stock dividends | 139,462 | 131,553 |
Conversion of Class C to Class A | (116,168) | (49,247) |
Common Stock, Shares, Outstanding | 2,889,859 | 2,866,565 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Numerator: | |||
Net earnings | $ 25,690,302 | $ 39,518,990 | |
Denominator: | |||
Denominator for basic earnings per share-weighted-average shares | [1] | 21,137,941 | 21,146,713 |
Employee stock options | 807,927 | 812,916 | |
Unvested restricted stock units | 374 | ||
Dilutive potential common shares | 808,301 | 812,916 | |
shares and assumed conversions | 21,946,242 | 21,959,629 | |
Basic earnings per share | [1] | $ 1.22 | $ 1.87 |
Diluted earnings per share | [1] | $ 1.17 | $ 1.80 |
[1]Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock voting rights | Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. | |
Stockholders dividends descriptions | Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, a 7.5% stock dividend in the year 2020, and a 5% stock dividend in the years 2021 and 2022, as authorized by the Company’s Board of Directors. | |
Share-Based Payment Arrangement, Option [Member] | ||
Class of Stock [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 339,150 | 50,000 |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares, issued | 0 | 0 |
Schedule of Assumptions Used (D
Schedule of Assumptions Used (Details) | 12 Months Ended | |
Dec. 31, 2022 $ / shares | ||
All Plans December 2, 2022 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted Average Fair Value of Each Option | $ 1.48 | |
Expected Dividend Yield | 5% | [1] |
Underlying stock FMV | $ 6.48 | |
Weighted Average Volatility | 37.03% | |
Weighted Average Risk Free Interest Rate | 3.69% | |
Weighted Average Expected Life (Term) | 4 years 10 months 17 days | |
All Plans December 3, 2021 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted Average Fair Value of Each Option | $ 2.99 | |
Expected Dividend Yield | 5% | [1] |
Underlying stock FMV | $ 8.62 | |
Weighted Average Volatility | 36.50% | |
Weighted Average Risk Free Interest Rate | 1.15% | |
Weighted Average Expected Life (Term) | 5 years 3 months 21 days | |
[1]Stock dividend |
Schedule of Activity of Stock O
Schedule of Activity of Stock Option Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Common Class A [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares, outstanding, beginning | 1,024,351 | 1,072,863 | |
Weighted average exercise price, outstanding, Ending | $ 4.38 | $ 4.12 | |
Number of Shares, adjustment for effect of stock dividends | 47,780 | 47,594 | |
Number of shares, granted | 82,500 | 89,500 | |
Number of shares, exercised | (176,435) | (183,935) | |
Number of shares, cancelled | (1,591) | (1,671) | |
Number of shares, outstanding, ending | 976,605 | 1,024,351 | |
Weighted average exercise price, outstanding, ending | $ 4.78 | $ 4.38 | |
Number of shares, options exercisable | 897,105 | ||
Weighted average exercise price, options exercisable | $ 4.63 | ||
Number of shares, available options for future grant | 132,313 | ||
Weighted average contractual term of options outstanding | 4 years 8 months 19 days | ||
Weighted average contractual term of options exercisable | 4 years 3 months 3 days | ||
Aggregated intrinsic value of options outstanding | [1] | $ 2,460,755 | |
Aggregated intrinsic value of options exercisable | [1] | $ 2,397,275 | |
Common Class C [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares, outstanding, beginning | 821,146 | 662,666 | |
Weighted average exercise price, outstanding, Ending | $ 5.26 | $ 4.50 | |
Number of Shares, adjustment for effect of stock dividends | 41,057 | 33,136 | |
Number of shares, granted | 295,000 | 230,000 | |
Number of shares, exercised | (104,656) | ||
Number of shares, cancelled | |||
Number of shares, outstanding, ending | 1,157,203 | 821,146 | |
Weighted average exercise price, outstanding, ending | $ 5.59 | $ 5.26 | |
Number of shares, options exercisable | 862,203 | ||
Weighted average exercise price, options exercisable | $ 5.26 | ||
Number of shares, available options for future grant | 795,000 | ||
Weighted average contractual term of options outstanding | 6 years 10 months 24 days | ||
Weighted average contractual term of options exercisable | 6 years 2 months 26 days | ||
Aggregated intrinsic value of options outstanding | [1] | $ 1,979,588 | |
Aggregated intrinsic value of options exercisable | [1] | $ 1,758,488 | |
[1]The Company used a stock price of $ 7.30 |
Schedule of Activity of Stock_2
Schedule of Activity of Stock Option Plans (Details) (Parenthetical) | Dec. 31, 2022 $ / shares |
Share-Based Payment Arrangement [Abstract] | |
Stock price | $ 7.30 |
Schedule of Activity Restricted
Schedule of Activity Restricted Stock Units (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / shares shares | ||
Common Class A [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares, available RSUs for future grant | 132,313 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted average grant date fair value, beginning | $ / shares | ||
Weighted average grant date fair value, Granted | $ / shares | 6.48 | |
Weighted average grant date fair value, ending | $ / shares | $ 6.48 | |
Restricted Stock Units (RSUs) [Member] | Common Class A [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Non-vested Number of shares, beginning | ||
Non-vested Number of shares, Granted | 1,620 | |
Non-vested Number of shares, Vested | ||
Non-vested Number of shares, ending | 1,620 | |
Number of shares, available RSUs for future grant | 18,380 | |
Aggregated intrinsic value of RSUs outstanding | $ | $ 1,328 | [1] |
[1]The Company used a stock price of $ 7.30 |
Schedule of Activity Restrict_2
Schedule of Activity Restricted Stock Units (Details) (Parenthetical) | Dec. 31, 2022 $ / shares |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock price | $ 7.30 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock price | $ 7.30 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation expense | $ 929,692 | $ 118,384 |
Unrecognized compensation expense | 506,701 | |
Intrinsic value stock options exercised | 619,064 | 1,153,417 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation expense | 371 | |
Unrecognized compensation expense | $ 742 | |
Weighted average grant date fair value | $ 6.48 | |
Option Plans [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation expense | $ 929,321 | $ 118,384 |
Schedule of Statutory Accountin
Schedule of Statutory Accounting Practices (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | $ 12,508,980 | $ 7,487,607 |
Statutory capital and surplus, balance | 94,254,586 | 82,812,168 |
Security National Life Insurance [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | 9,126,955 | 5,552,116 |
Statutory capital and surplus, balance | 66,753,938 | 57,424,808 |
Kilpatrick Life Insurance Company [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | 2,373,682 | 1,312,718 |
Statutory capital and surplus, balance | 17,300,717 | 15,566,231 |
First Guaranty Insurance Company [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | 1,007,026 | 624,550 |
Statutory capital and surplus, balance | 8,107,405 | 7,734,357 |
Memorial Insurance Company of America [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | 37 | |
Statutory capital and surplus, balance | ||
Southern Security Life Insurance Company Inc [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | (2,691) | 275 |
Statutory capital and surplus, balance | 1,579,971 | 1,578,225 |
Trans-Western Life Insurance Company [Member] | ||
Liability for Catastrophe Claims [Line Items] | ||
Statutory net income amount | 4,008 | (2,089) |
Statutory capital and surplus, balance | $ 512,555 | $ 508,547 |
Statutory Financial Informati_3
Statutory Financial Information and Dividend Limitations (Details Narrative) | Dec. 31, 2022 USD ($) |
Liability for Catastrophe Claims [Line Items] | |
Cash dividend paid | $ 6,420,000 |
First Guaranty Insurance Company [Member] | |
Liability for Catastrophe Claims [Line Items] | |
Cash dividend paid | 710,000 |
Kilpatrick Life Insurance Company [Member] | |
Liability for Catastrophe Claims [Line Items] | |
Cash dividend paid | $ 1,650,000 |
Schedule of Revenues and Expens
Schedule of Revenues and Expenses by Reportable Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue from customers | $ 305,495,176 | $ 387,670,116 | |
Net investment income | 66,197,592 | 58,264,683 | |
Gains on investments and other assets | (857,460) | 6,265,134 | |
Other than temporary impairments | (39,502) | ||
Other revenues | 18,817,020 | 18,535,111 | |
Net investment income | |||
Total revenues | 389,652,328 | 470,695,542 | |
Death, surrenders and other policy benefits | 64,066,432 | 67,218,455 | |
Increase in future policy benefits | 28,858,969 | 26,263,312 | |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 17,950,202 | 16,142,970 | |
Commissions | 63,321,092 | 118,286,469 | |
Personnel | 100,111,523 | 100,740,161 | |
Advertising | 5,697,998 | 6,626,418 | |
Rent and rent related | 6,883,013 | 7,242,287 | |
Depreciation on property and equipment | 2,496,906 | 1,935,613 | |
Provision for loan loss reserve | |||
Cost related to funding mortgage loans | 7,540,041 | 10,541,570 | |
Intersegment | |||
Other | 45,797,753 | 53,065,982 | |
Intersegment | |||
Other | 7,830,443 | 7,127,516 | |
Costs of goods and services sold-mortuaries and cemeteries | 4,721,094 | 3,704,014 | |
Total benefits and expenses | 355,275,466 | 418,894,767 | |
Earnings before income taxes | 34,376,862 | 51,800,775 | |
Income tax expense | (8,686,560) | (12,281,785) | |
Net earnings | 25,690,302 | 39,518,990 | |
Identifiable assets | 1,455,859,109 | 1,542,339,523 | |
Goodwill | 5,253,783 | 5,253,783 | $ 3,519,588 |
Life Insurance [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from customers | 105,144,646 | 100,254,573 | |
Net investment income | 62,565,021 | 56,091,725 | |
Gains on investments and other assets | (459,462) | 4,554,528 | |
Other than temporary impairments | (39,502) | ||
Other revenues | 1,932,402 | 2,152,531 | |
Net investment income | 6,601,132 | 7,569,875 | |
Total revenues | 175,783,739 | 170,583,730 | |
Death, surrenders and other policy benefits | 64,066,432 | 67,218,455 | |
Increase in future policy benefits | 28,858,969 | 26,263,312 | |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 17,352,803 | 15,611,374 | |
Commissions | 4,097,680 | 3,514,498 | |
Personnel | 26,285,207 | 25,009,096 | |
Advertising | 1,649,273 | 1,160,640 | |
Rent and rent related | 384,908 | 733,726 | |
Depreciation on property and equipment | 1,036,521 | 806,543 | |
Provision for loan loss reserve | |||
Cost related to funding mortgage loans | |||
Intersegment | 232,915 | 497,113 | |
Other | 13,190,827 | 12,075,374 | |
Intersegment | 462,753 | 392,003 | |
Other | 3,969,905 | 2,328,868 | |
Costs of goods and services sold-mortuaries and cemeteries | |||
Total benefits and expenses | 161,588,193 | 155,611,002 | |
Earnings before income taxes | 14,195,546 | 14,972,728 | |
Income tax expense | (4,034,979) | (2,943,715) | |
Net earnings | 10,160,567 | 12,029,013 | |
Identifiable assets | 1,246,840,586 | 1,236,406,558 | |
Goodwill | 2,765,570 | 2,765,570 | $ 2,765,570 |
Cemetery And Mortuary [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from customers | 26,993,855 | 23,997,313 | |
Net investment income | 2,444,599 | 1,653,940 | |
Gains on investments and other assets | (796,096) | 1,511,965 | |
Other than temporary impairments | |||
Other revenues | 305,073 | 100,255 | |
Net investment income | 451,139 | 314,001 | |
Total revenues | 29,398,570 | 27,577,474 | |
Death, surrenders and other policy benefits | |||
Increase in future policy benefits | |||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 597,399 | 531,596 | |
Commissions | 1,372,200 | 1,917,899 | |
Personnel | 9,305,429 | 6,850,617 | |
Advertising | 628,114 | 570,924 | |
Rent and rent related | 163,182 | 109,318 | |
Depreciation on property and equipment | 759,415 | 479,005 | |
Provision for loan loss reserve | |||
Cost related to funding mortgage loans | |||
Intersegment | 160,690 | 113,062 | |
Other | 5,321,730 | 5,224,178 | |
Intersegment | 274,911 | 97,195 | |
Other | 710 | 54,620 | |
Costs of goods and services sold-mortuaries and cemeteries | 4,721,094 | 3,704,014 | |
Total benefits and expenses | 23,304,874 | 19,652,428 | |
Earnings before income taxes | 6,093,696 | 7,925,046 | |
Income tax expense | (1,523,954) | (1,975,787) | |
Net earnings | 4,569,742 | 5,949,259 | |
Identifiable assets | 82,320,929 | 73,432,116 | |
Goodwill | 2,488,213 | 2,488,213 | |
Mortgage [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from customers | 173,356,675 | 263,418,230 | |
Net investment income | 1,187,972 | 519,018 | |
Gains on investments and other assets | 398,098 | 198,641 | |
Other than temporary impairments | |||
Other revenues | 16,579,545 | 16,282,325 | |
Net investment income | 356,574 | 599,115 | |
Total revenues | 191,878,864 | 281,017,329 | |
Death, surrenders and other policy benefits | |||
Increase in future policy benefits | |||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | |||
Commissions | 57,851,212 | 112,854,072 | |
Personnel | 64,520,887 | 68,880,448 | |
Advertising | 3,420,611 | 4,894,854 | |
Rent and rent related | 6,334,923 | 6,399,243 | |
Depreciation on property and equipment | 700,970 | 650,065 | |
Provision for loan loss reserve | |||
Cost related to funding mortgage loans | 7,540,041 | 10,541,570 | |
Intersegment | 1,795,507 | 671,107 | |
Other | 27,285,196 | 35,766,430 | |
Intersegment | 4,482,069 | 6,712,511 | |
Other | 3,859,828 | 4,744,028 | |
Costs of goods and services sold-mortuaries and cemeteries | |||
Total benefits and expenses | 177,791,244 | 252,114,328 | |
Earnings before income taxes | 14,087,620 | 28,903,001 | |
Income tax expense | (3,127,627) | (7,362,283) | |
Net earnings | 10,959,993 | 21,540,718 | |
Identifiable assets | 219,872,163 | 328,600,841 | |
Goodwill | |||
Intercompany Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from customers | |||
Net investment income | |||
Gains on investments and other assets | |||
Other than temporary impairments | |||
Other revenues | |||
Net investment income | (7,408,845) | (8,482,991) | |
Total revenues | (7,408,845) | (8,482,991) | |
Death, surrenders and other policy benefits | |||
Increase in future policy benefits | |||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired | |||
Commissions | |||
Personnel | |||
Advertising | |||
Rent and rent related | |||
Depreciation on property and equipment | |||
Provision for loan loss reserve | |||
Cost related to funding mortgage loans | |||
Intersegment | (2,189,112) | (1,281,282) | |
Other | |||
Intersegment | (5,219,733) | (7,201,709) | |
Other | |||
Costs of goods and services sold-mortuaries and cemeteries | |||
Total benefits and expenses | (7,408,845) | (8,482,991) | |
Earnings before income taxes | |||
Income tax expense | |||
Net earnings | |||
Identifiable assets | (93,174,569) | (96,099,992) | |
Goodwill |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | $ 345,858,492 | $ 259,287,603 | ||
Equity securities | 11,682,526 | 11,596,414 | ||
Loans held for sale | 141,179,620 | 302,776,827 | ||
Restricted assets (1) | 1,217,308 | [1] | 1,601,688 | [2] |
Restricted assets (2) | 5,348,244 | [3] | 3,603,822 | [4] |
Cemetery perpetual care trust investments | 254,731 | [1] | 784,765 | [2] |
Cemetery perpetual care trust investments | 3,605,162 | [3] | 3,302,480 | [4] |
Derivatives - loan commitments (3) | 4,089,856 | [5] | 8,563,410 | [6] |
Total assets accounted for at fair value on a recurring basis | 513,235,939 | 591,517,009 | ||
Derivatives - call options (4) | (29,715) | [7] | (50,936) | [8] |
Derivatives - put options (4) | (13,888) | [7] | (4,493) | [8] |
Derivatives - loan commitments (4) | (1,382,979) | [7] | (1,547,895) | [8] |
Total liabilities accounted for at fair value on a recurring basis | (1,426,582) | (1,603,324) | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | ||||
Equity securities | 11,682,526 | 11,596,414 | ||
Loans held for sale | ||||
Restricted assets (1) | [1] | [2] | ||
Restricted assets (2) | 5,348,244 | [3] | 3,603,822 | [4] |
Cemetery perpetual care trust investments | [1] | [2] | ||
Cemetery perpetual care trust investments | 3,605,162 | [3] | 3,302,480 | [4] |
Derivatives - loan commitments (3) | [5] | [6] | ||
Total assets accounted for at fair value on a recurring basis | 20,635,932 | 18,502,716 | ||
Derivatives - call options (4) | (29,715) | [7] | (50,936) | [8] |
Derivatives - put options (4) | (13,888) | [7] | (4,493) | [8] |
Derivatives - loan commitments (4) | [7] | [8] | ||
Total liabilities accounted for at fair value on a recurring basis | (43,603) | (55,429) | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 344,422,973 | 257,264,255 | ||
Equity securities | ||||
Loans held for sale | ||||
Restricted assets (1) | 1,217,308 | [1] | 1,601,688 | [2] |
Restricted assets (2) | [3] | [4] | ||
Cemetery perpetual care trust investments | 254,731 | [1] | 784,765 | [2] |
Cemetery perpetual care trust investments | [3] | [4] | ||
Derivatives - loan commitments (3) | [5] | [6] | ||
Total assets accounted for at fair value on a recurring basis | 345,895,012 | 259,650,708 | ||
Derivatives - call options (4) | [7] | [8] | ||
Derivatives - put options (4) | [7] | [8] | ||
Derivatives - loan commitments (4) | [7] | [8] | ||
Total liabilities accounted for at fair value on a recurring basis | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 1,435,519 | 2,023,348 | ||
Equity securities | ||||
Loans held for sale | 141,179,620 | 302,776,827 | ||
Restricted assets (1) | [1] | [2] | ||
Restricted assets (2) | [3] | [4] | ||
Cemetery perpetual care trust investments | [1] | [2] | ||
Cemetery perpetual care trust investments | [3] | [4] | ||
Derivatives - loan commitments (3) | 4,089,856 | [5] | 8,563,410 | [6] |
Total assets accounted for at fair value on a recurring basis | 146,704,995 | 313,363,585 | ||
Derivatives - call options (4) | [7] | [8] | ||
Derivatives - put options (4) | [7] | [8] | ||
Derivatives - loan commitments (4) | (1,382,979) | [7] | (1,547,895) | [8] |
Total liabilities accounted for at fair value on a recurring basis | $ (1,382,979) | $ (1,547,895) | ||
[1]Fixed maturity securities available for sale[2]Fixed maturity securities available for sale[3]Equity securities[4]Equity securities[5]Included in other assets on the consolidated balance sheets[6]Included in other assets on the consolidated balance sheets[7]Included in other liabilities and accrued expenses on the consolidated balance sheets[8]Included in other liabilities and accrued expenses on the consolidated balance sheets |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on A Recurring Basis (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Subsidiary, Sale of Stock [Line Items] | |||||
Fair Value Balance | $ 141,179,620 | $ 302,776,827 | |||
Fair Value Balance | 4,089,856 | [1] | 8,563,410 | [2] | |
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | 345,858,492 | 259,287,603 | |||
Loans Held For Sale [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fair Value Balance | $ 141,179,620 | $ 302,776,827 | $ 422,772,418 | ||
Fair value measurement, range of inputs, minimum value | 69.90% | 95% | |||
Fair value measurement, range of inputs, maximum value | 106.10% | 109% | |||
Fair value measurement with unobservable inputs reconciliation, recurring basis, asset and liability, weighted average | 99.80% | 103% | |||
Net Derivatives Loan Commitments [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fair value measurement, range of inputs, minimum value | 65% | 66% | |||
Fair value measurement, range of inputs, maximum value | 95% | 95% | |||
Fair value measurement with unobservable inputs reconciliation, recurring basis, asset and liability, weighted average | 82.20% | 81% | |||
Fair Value Balance | $ 2,706,877 | $ 7,015,515 | 10,128,610 | ||
Fixed Maturity Securities Available For Sale 1 [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $362,750,511 and $236,303,310 for 2022 and 2021) | $ 1,435,519 | $ 2,023,348 | $ 2,201,175 | ||
Fair Value Measurement, Range of Inputs, Minimum Value, price per share | $ 100 | $ 96.87 | |||
Fair Value Measurement, Range of Inputs, Maximum Value, price per share | 111.11 | 111.11 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average, price per share | $ 104.97 | $ 106.73 | |||
[1]Included in other assets on the consolidated balance sheets[2]Included in other assets on the consolidated balance sheets |
Schedule of Changes in the Cons
Schedule of Changes in the Consolidated Balance Sheet Line Items Measured Using Level 3 Inputs (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Subsidiary, Sale of Stock [Line Items] | |||||
Net loan commitments, beginning | [1] | $ 8,563,410 | |||
Loans Held for Sale, Beginning | 302,776,827 | ||||
Fixed Maturity Securities Available for Sale, Beginning | 259,287,603 | ||||
Originations and purchases | 3,373,554,484 | $ 5,611,189,587 | |||
Originations and purchases | 151,581,252 | 18,857,131 | |||
Sales, maturities and paydowns | (3,549,405,402) | (5,900,076,766) | |||
Sales, maturities and paydowns | (25,163,141) | (48,015,753) | |||
Transfer to mortgage loans held for investment | (51,691,213) | (201,951) | |||
Total gains (losses) included in other comprehensive income | (39,493,861) | (7,323,241) | |||
Net loan commitments, ending | 4,089,856 | [2] | 8,563,410 | [1] | |
Loans Held for Sale, Ending | 141,179,620 | 302,776,827 | |||
Fixed Maturity Securities Available for Sale, Ending | 345,858,492 | 259,287,603 | |||
Net Derivatives Loan Commitments [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Net loan commitments, beginning | 7,015,515 | 10,128,610 | |||
Originations and purchases | |||||
Sales, maturities and paydowns | |||||
Transfer to mortgage loans held for investment | |||||
Total gains (losses) included in earnings | (4,308,638) | [3] | (3,113,095) | [4] | |
Total gains (losses) included in other comprehensive income | |||||
Net loan commitments, ending | 2,706,877 | 7,015,515 | |||
Loans Held For Sale [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Loans Held for Sale, Beginning | 302,776,827 | 422,772,418 | |||
Originations and purchases | 3,373,554,484 | 5,611,189,587 | |||
Sales, maturities and paydowns | (3,549,405,402) | (5,900,076,766) | |||
Transfer to mortgage loans held for investment | (51,691,213) | (201,951) | |||
Total gains (losses) included in earnings | 65,944,924 | [3] | 169,093,539 | [4] | |
Total gains (losses) included in other comprehensive income | |||||
Loans Held for Sale, Ending | 141,179,620 | 302,776,827 | |||
Fixed Maturity Securities Available For Sale 1 [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fixed Maturity Securities Available for Sale, Beginning | 2,023,348 | 2,201,175 | |||
Originations and purchases | |||||
Sales, maturities and paydowns | (528,980) | (45,700) | |||
Transfer to mortgage loans held for investment | |||||
Total gains (losses) included in earnings | 1,957 | [5] | 3,674 | [6] | |
Total gains (losses) included in other comprehensive income | (60,806) | (135,801) | |||
Fixed Maturity Securities Available for Sale, Ending | $ 1,435,519 | $ 2,023,348 | |||
[1]Included in other assets on the consolidated balance sheets[2]Included in other assets on the consolidated balance sheets[3]As a component of mortgage fee income on the consolidated statements of earnings[4]As a component of mortgage fee income on the consolidated statements of earnings[5]As a component of net investment income on the consolidated statements of earnings[6]As a component of net investment income on the consolidated statements of earnings |
Schedule of Fair Value Assets M
Schedule of Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for investment | $ 308,123,927 | $ 277,306,046 |
Impaired real estate held for sale | 11,161,582 | 3,731,300 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for investment | 794,224 | 851,903 |
Assets fair value disclosure nonrecurring | 794,224 | 2,851,903 |
Impaired real estate held for sale | 2,000,000 | |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for investment | ||
Assets fair value disclosure nonrecurring | ||
Impaired real estate held for sale | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for investment | ||
Assets fair value disclosure nonrecurring | ||
Impaired real estate held for sale | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for investment | 794,224 | 851,903 |
Assets fair value disclosure nonrecurring | $ 794,224 | 2,851,903 |
Impaired real estate held for sale | $ 2,000,000 |
Schedule of Financial Instrumen
Schedule of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | $ 308,123,927 | $ 277,306,046 | |||
Other investments and policy loans | 70,508,156 | 67,955,155 | |||
Restricted assets | 18,935,055 | 16,938,122 | |||
Cemetery perpetual care trust investments | 7,276,210 | 7,835,721 | |||
Mortgage servicing rights | 3,039,765 | 53,060,455 | $ 35,210,516 | ||
Mortgage servicing rights, estimated fair value | 3,927,877 | 68,811,809 | |||
Bank and other loans payable | (161,712,804) | (251,286,927) | |||
Future policy benefits and unpaid claims | (889,327,303) | (863,274,693) | |||
Residential Mortgage [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 90,290,776 | 51,396,172 | |||
Mortgage loans held for investment, estimated fair value | 88,575,293 | 55,159,167 | |||
Residential Mortgage [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Residential Mortgage [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Residential Mortgage [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 88,575,293 | 55,159,167 | |||
Residential Construction [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 172,139,077 | 174,691,408 | |||
Mortgage loans held for investment, estimated fair value | 172,139,077 | 174,691,408 | |||
Residential Construction [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Residential Construction [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Residential Construction [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 172,139,077 | 174,691,408 | |||
Commercial Loan [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 45,694,074 | 51,218,466 | |||
Mortgage loans held for investment, estimated fair value | 44,079,537 | 51,008,709 | |||
Commercial Loan [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Commercial Loan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Commercial Loan [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 44,079,537 | 51,008,709 | |||
Mortgage Loans Net [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 308,123,927 | 277,306,046 | |||
Mortgage loans held for investment, estimated fair value | 304,793,907 | 280,859,284 | |||
Mortgage Loans Net [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Mortgage Loans Net [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Mortgage Loans Net [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | 304,793,907 | 280,859,284 | |||
Policy Loan [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | 13,095,473 | 13,478,214 | |||
Other investments and policy loans, estimated fair value | 13,095,473 | 13,478,214 | |||
Policy Loan [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | |||||
Policy Loan [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage loans held for investment (net of allowances for loan losses of $1,970,311 and $1,699,902 for 2022 and 2021) | |||||
Policy Loan [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | 13,095,473 | 13,478,214 | |||
Insurance Assignments [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | 45,332,585 | [1] | 46,946,590 | [2] | |
Other investments and policy loans, estimated fair value | 45,332,585 | [1] | 46,946,590 | [2] | |
Insurance Assignments [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | [1] | [2] | |||
Insurance Assignments [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | [1] | [2] | |||
Insurance Assignments [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Other investments and policy loans | 45,332,585 | [1] | 46,946,590 | [2] | |
Restricted Assets [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Restricted assets | 1,731,469 | [3] | 2,732,320 | [4] | |
Restricted assets, estimated fair value | 1,731,469 | [3] | 2,732,320 | [4] | |
Restricted Assets [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Restricted assets | [3] | [4] | |||
Restricted Assets [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Restricted assets | [3] | [4] | |||
Restricted Assets [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Restricted assets | 1,731,469 | [3] | 2,732,320 | [4] | |
Cemetery Perpetual Care Trust Investments [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Cemetery perpetual care trust investments | 1,506,517 | [3] | 1,823,533 | [4] | |
Cemetery perpetual care trust investments, estimated fair value | 1,506,517 | [3] | 1,823,533 | [4] | |
Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Cemetery perpetual care trust investments | [3] | [4] | |||
Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Cemetery perpetual care trust investments | [3] | [4] | |||
Cemetery Perpetual Care Trust Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Cemetery perpetual care trust investments | 1,506,517 | [3] | 1,823,533 | [4] | |
Mortgage Servicing Rights [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage servicing rights | 3,039,765 | 53,060,455 | |||
Mortgage servicing rights, estimated fair value | 3,927,877 | 68,811,809 | |||
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage servicing rights | |||||
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage servicing rights | |||||
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Mortgage servicing rights | 3,927,877 | 68,811,809 | |||
Bank and Other Loans Payable [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Bank and other loans payable | (161,712,804) | (251,286,927) | |||
Bank and other loans payable, fair value | (161,712,804) | (251,286,927) | |||
Bank and Other Loans Payable [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Bank and other loans payable | |||||
Bank and Other Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Bank and other loans payable | |||||
Bank and Other Loans Payable [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Bank and other loans payable | (161,712,804) | (251,286,927) | |||
Policyholder Account Balances [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | (41,146,171) | [5] | (42,939,055) | [6] | |
Future policy benefits and unpaid claims, estimated fair value | (42,181,089) | [5] | (35,855,934) | [6] | |
Policyholder Account Balances [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | [5] | [6] | |||
Policyholder Account Balances [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | [5] | [6] | |||
Policyholder Account Balances [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | (42,181,089) | [5] | (35,855,934) | [6] | |
Future Policy Benefits Annuities [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | (106,637,094) | [5] | (107,992,830) | [6] | |
Future policy benefits and unpaid claims, estimated fair value | (126,078,031) | [5] | (116,215,717) | [6] | |
Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | [5] | [6] | |||
Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | [5] | [6] | |||
Future Policy Benefits Annuities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |||||
Future policy benefits and unpaid claims | $ (126,078,031) | [5] | $ (116,215,717) | [6] | |
[1]Included in other investments and policy loans on the consolidated balance sheets[2]Included in other investments and policy loans on the consolidated balance sheets[3]Mortgage loans held for investment[4]Mortgage loans held for investment[5]Included in future policy benefits and unpaid claims on the consolidated balance sheets[6]Included in future policy benefits and unpaid claims on the consolidated balance sheets |
Schedule of Changes in Accumula
Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Unrealized gains on fixed maturity securities available for sale | $ (39,493,861) | $ (7,323,241) | |
Amounts reclassified into net earnings | 162,173 | 805,510 | |
Unrealized gains before taxes | (39,331,688) | (6,517,731) | |
Tax expense | 8,259,656 | 1,368,721 | |
Net | (31,072,032) | (5,149,010) | |
Unrealized gains for foreign currency translations adjustments | 2,835 | ||
Tax expense | (707) | ||
Net | 2,128 | ||
Other comprehensive income changes | (31,140,725) | (5,172,685) | |
Restricted Assets [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Unrealized gains before taxes | [1] | (71,035) | (23,250) |
Tax expense | 17,695 | 5,792 | |
Net | (53,340) | (17,458) | |
Cemetery Perpetual Care Trust Investments [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Unrealized gains before taxes | [1] | (20,446) | (11,114) |
Tax expense | 5,093 | 2,769 | |
Net | $ (15,353) | $ (8,345) | |
[1]Fixed maturity securities available for sale |
Schedule of Accumulated Balance
Schedule of Accumulated Balances of Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Equity [Abstract] | |||||
Unrealized gains on fix maturity securities available-for-sale | $ 18,021,265 | $ 23,170,275 | |||
Increase (Decrease) in Unrealized gains on fixed maturity securities available-for-sale | (31,072,032) | (5,149,010) | |||
Unrealized gains on fix maturity securities available-for-sale | (13,050,767) | 18,021,265 | |||
Unrealized gains (losses) on restricted assets | 40,192 | [1] | 57,650 | [2] | |
Increase Dececrease in Unrealized gains (losses) on restricted assets | (53,340) | [1] | (17,458) | [2] | |
Unrealized gains (losses) on restricted assets | [1] | (13,148) | 40,192 | ||
Unrealized gains (losses) on cemetery perpetual care trust investments | 8,991 | [1] | 17,336 | [2] | |
Increase Dececrease in Unrealized gains (losses) on cemetery perpetual care trust investments | (15,353) | [1] | (8,345) | [2] | |
Unrealized gains (losses) on cemetery perpetual care trust investments | [1] | (6,362) | 8,991 | ||
Other comprehensive income (loss), Balance | 18,070,448 | 23,243,133 | |||
Increase (Decrease) in Other comprehensive income (loss), Balance | (31,140,725) | (5,172,685) | |||
Other comprehensive income (loss), Balance | (13,070,277) | 18,070,448 | |||
Foreign currency translation adjustments | (2,128) | ||||
Increase Decrease Foreign currency translation adjustments | 2,128 | ||||
Foreign currency translation adjustments | |||||
[1]Fixed maturity securities available for sale[2]Fixed maturity securities available for sale |
Schedule of Derivative Assets a
Schedule of Derivative Assets at Fair Value (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Loan Commitments [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Derivative, notional amount | $ 453,371,808 | $ 862,568,967 |
Derivative asset, interest rate lock | 4,089,856 | 8,563,410 |
Derivative liability, interest rate lock | 1,382,979 | 1,547,895 |
Call Options [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Derivative, notional amount | 868,600 | 982,500 |
Derivative asset, call options | ||
Derivative liability, call options | 29,715 | 50,936 |
Put Options [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Derivative, notional amount | 654,500 | 362,900 |
Derivative asset, put options | ||
Derivative liability, put options | 13,888 | 4,493 |
Net Derivatives Loan Commitments [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Derivative, notional amount | 454,894,908 | 863,914,367 |
Derivative asset, notional amount | 4,089,856 | 8,563,410 |
Derivative liability, notional amount | $ 1,426,582 | $ 1,603,324 |
Schedule of Gains and Losses on
Schedule of Gains and Losses on Derivatives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||
Loan commitments, Mortgage fee income | $ (4,308,638) | $ (3,113,095) |
Loan Commitments [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Loan commitments, Mortgage fee income | (4,308,638) | (3,113,095) |
Call and Put Options [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 202,886 | $ 160,410 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gains (losses) on investments and other assets | Gains (losses) on investments and other assets |
Gain (loss) on derivatives | $ 202,886 | $ 160,410 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - Rivera Funerals Cremations and Memorial Gardens [Member] | Dec. 21, 2021 USD ($) | |
Business Acquisition [Line Items] | ||
Restricted assets | $ 618,006 | [1] |
Property and equipment | 6,255,836 | [2] |
Cemetery land and improvements | 658,280 | |
Goodwill | 1,338,763 | |
Other | 2,440,516 | [3] |
Total assets acquired | 11,311,401 | |
Cemetery perpetual care obligation | (618,006) | |
Other liabilities - holdback | (1,120,000) | |
Total liabilities assumed | (1,738,006) | |
Fair value of net assets acquired/consideration paid | $ 9,573,395 | |
[1]Includes $ 39,000 579,006 2,310,000 |
Schedule of Estimated Fair Va_2
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) (Parenthetical) - Rivera Funerals Cremations and Memorial Gardens [Member] | Dec. 21, 2021 USD ($) |
Business Acquisition [Line Items] | |
Business acquisition of intangible assets | $ 2,310,000 |
Fair Value, Inputs, Level 2 [Member] | |
Business Acquisition [Line Items] | |
Business acquisition of cash | 39,000 |
Business acquisition of fixed assets | $ 579,006 |
Estimated Fair Values of Assets
Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - Holbrook Mortuary [Member] | Dec. 28, 2021 USD ($) | |
Business Acquisition [Line Items] | ||
Property and equipment | $ 2,641,210 | [1] |
Goodwill | 395,432 | |
Other | 15,105 | |
Total assets acquired | 3,051,747 | |
Fair value of net assets acquired/consideration paid | $ 3,051,747 | |
[1]At estimated fair value which is a Level 3 asset in the fair value hierarchy |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 28, 2021 | Dec. 21, 2021 |
Business Acquisition [Line Items] | ||||
Business combination, purchase price | $ 10,693,395 | |||
Rivera Funerals Cremations and Memorial Gardens [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, purchase price | 70,000 | |||
Business combination, holdback amount | 1,120,000 | |||
Payment to acquire assets | 1,050,000 | |||
Business acquisition of revenues | $ 137,386 | |||
Business acquisition of earnings or net loss | $ 14,892 | |||
Rivera Funerals Cremations and Memorial Gardens [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire assets | $ 105,000 | |||
Holbrook Mortuary [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, purchase price | $ 3,051,747 | |||
Business acquisition of revenues | ||||
Business acquisition of earnings or net loss | $ (98,531) |
Schedule of Mortgage Servicing
Schedule of Mortgage Servicing Rights (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Balance before valuation allowance at beginning of year | $ 53,060,455 | $ 35,210,516 | ||
MSR additions resulting from loan sales | 10,243,922 | 32,701,819 | ||
Amortization | [1] | (9,078,706) | (14,851,880) | |
Sale of MSRs | $ (51,185,906) | (51,185,906) | ||
Application of valuation allowance to write down MSRs with other than temporary impairment | ||||
Balance before valuation allowance at year end | 3,039,765 | 53,060,455 | ||
Balance at beginning of year | ||||
Additions | ||||
Balance at year end | ||||
Mortgage servicing rights, net | 3,039,765 | 53,060,455 | ||
Estimated fair value of MSRs at end of period | $ 3,927,877 | $ 68,811,809 | ||
[1]Included in other expenses on the consolidated statements of earnings |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total | $ 3,256,667 | $ 3,512,667 |
Mortgage Servicing Rights [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
2023 | 316,449 | |
2024 | 286,934 | |
2025 | 260,259 | |
2026 | 234,139 | |
2027 | 211,523 | |
Thereafter | 1,730,461 | |
Total | $ 3,039,765 |
Schedule of Other Revenues (Det
Schedule of Other Revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Contractual servicing fees | $ 15,792,105 | $ 15,471,307 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other revenues | Other revenues |
Late fees | $ 398,754 | $ 321,337 |
Late Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other revenues | Other revenues |
Total | $ 16,190,859 | $ 15,792,644 |
Summary of Unpaid Principal Bal
Summary of Unpaid Principal Balances of the Servicing Portfolio (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Servicing unpaid principal balance | $ 360,023,384 | $ 7,060,536,350 |
Schedule of Assumptions Used in
Schedule of Assumptions Used in Determining MSR Value (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Prepayment speed | 8.12 | 11.60 |
Average life | 8 years 5 months 26 days | 6 years 7 months 20 days |
Discount rate | 11.95 | 9.50 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details Narrative) - USD ($) | 12 Months Ended | ||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Mortgage loans unpaid principal amount | $ 7,020,000,000 | ||
Sale of mortgage servicing rights | 51,185,906 | $ 51,185,906 | |
Gain on sale of Mortgage servicing rights | $ 34,051,938 | $ 34,051,938 |
Schedule of Liability for Futur
Schedule of Liability for Future Policy Benefits, by Product Segment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | $ 889,327,303 | $ 863,274,693 | |
Total receivable from reinsurers | 15,033,938 | 14,850,608 | |
Net future policy benefits and unpaid claims | 874,293,365 | 848,424,085 | |
Net unpaid claims | 10,070,715 | 8,797,983 | $ 11,414,760 |
Life Insurance Product Line [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 726,462,594 | 698,366,477 | |
Total receivable from reinsurers | 10,600,613 | 10,482,428 | |
Net unpaid claims | 9,404,263 | 8,015,101 | 10,286,319 |
Fixed Annuity [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 106,637,094 | 107,992,830 | |
Total receivable from reinsurers | 4,225,873 | 4,082,877 | |
Net unpaid claims | 649,452 | 678,378 | 1,111,441 |
Policyholder Account Balances [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 41,146,171 | 42,939,055 | |
Accident and Health [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 603,526 | 629,302 | |
Total receivable from reinsurers | 79,467 | 88,474 | |
Net unpaid claims | 17,000 | 104,504 | $ 17,000 |
Other Policyholder Funds [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 4,279,218 | 4,352,217 | |
Reported But Unpaid Claims [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 5,651,030 | 4,887,934 | |
Total receivable from reinsurers | 110,985 | 177,829 | |
Incurred But Not Reported Claims [Member] | |||
Effects of Reinsurance [Line Items] | |||
Gross future policy benefits and unpaid claims | 4,547,670 | 4,106,878 | |
Total receivable from reinsurers | $ 17,000 | $ 19,000 |
Summary of Liability for Report
Summary of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Effects of Reinsurance [Line Items] | |||
Unpaid claims, Beginning balance | $ 8,797,983 | $ 11,414,760 | |
Unpaid claims, Incurred | 59,377,962 | 63,247,616 | |
Unpaid claims, Incurred | 28,858,969 | 26,263,312 | |
Unpaid claims, Incurred | 4,688,470 | 3,970,839 | |
Unpaid claims, Incurred | 73,406,282 | 77,514,484 | |
Unpaid claims, Settled | (72,133,550) | (80,131,261) | |
Unpaid claims, Ending balance | 10,070,715 | 8,797,983 | |
Life Insurance Product Line [Member] | |||
Effects of Reinsurance [Line Items] | |||
Unpaid claims, Beginning balance | 8,015,101 | 10,286,319 | |
Unpaid claims, Incurred | [1] | 59,377,962 | 63,247,616 |
Unpaid claims, Settled | (57,988,800) | (65,518,834) | |
Unpaid claims, Ending balance | 9,404,263 | 8,015,101 | |
Fixed Annuity [Member] | |||
Effects of Reinsurance [Line Items] | |||
Unpaid claims, Beginning balance | 678,378 | 1,111,441 | |
Unpaid claims, Incurred | [2] | 13,987,576 | 14,036,473 |
Unpaid claims, Settled | (14,016,502) | (14,469,536) | |
Unpaid claims, Ending balance | 649,452 | 678,378 | |
Accident and Health [Member] | |||
Effects of Reinsurance [Line Items] | |||
Unpaid claims, Beginning balance | 104,504 | 17,000 | |
Unpaid claims, Incurred | [3] | 40,744 | 230,395 |
Unpaid claims, Settled | (128,248) | (142,891) | |
Unpaid claims, Ending balance | $ 17,000 | $ 104,504 | |
[1]See death benefits on the consolidated statements of earnings[2]Included in increase in future benefits on the consolidated statements of earnings[3]Included in surrender and other policy benefits on the consolidated statements of earnings |
Schedule of Opening and Closing
Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue from Contract with Customer [Abstract] | |||
Receivables, beginning balance | [1] | $ 5,298,636 | $ 4,119,988 |
Contract asset, beginning balance | |||
Contract liability, beginning balance | 14,508,022 | 13,080,179 | |
Receivables, ending balance | [1] | 5,392,779 | 5,298,636 |
Contract asset, ending balance | |||
Contract liability, ending balance | 16,226,836 | 14,508,022 | |
Increase (decrease) in accounts receivable | [1] | 94,143 | 1,178,648 |
Increase (decrease) in contract asset | |||
Increase (decrease) in contract liability | $ 1,718,814 | $ 1,427,843 | |
[1]Included in Receivables, net on the consolidated balance sheets |
Schedule of Opening and Closi_2
Schedule of Opening and Closing Balances of the Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract asset, beginning balance | ||
Contract liability, beginning balance | 14,508,022 | 13,080,179 |
Contract asset, ending balance | ||
Contract liability, ending balance | 16,226,836 | 14,508,022 |
Pre-need Merchandise and Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract asset, beginning balance | ||
Contract liability, beginning balance | 13,722,348 | 12,545,753 |
Contract asset, ending balance | ||
Contract liability, ending balance | 15,289,901 | 13,722,348 |
At-need Specialty Merchandise Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract asset, beginning balance | ||
Contract liability, beginning balance | 785,674 | 534,426 |
Contract asset, ending balance | ||
Contract liability, ending balance | 936,935 | 785,674 |
Pre-need Land Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract asset, beginning balance | ||
Contract liability, beginning balance | ||
Contract asset, ending balance | ||
Contract liability, ending balance |
Schedule of Revenues of the Cem
Schedule of Revenues of the Cemetery and Mortuary Contracts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net mortuary and cemetery sales | $ 26,993,855 | $ 23,997,313 |
Major Goods or Services Lines at Need [Member] | ||
Net mortuary and cemetery sales | 21,283,237 | 16,220,541 |
Major Goods or Services Lines Pre Need [Member] | ||
Net mortuary and cemetery sales | 5,710,618 | 7,776,772 |
Timing of Revenue Recognition Goods Transferred at a Point in Time [Member] | ||
Net mortuary and cemetery sales | 16,412,963 | 16,793,439 |
Timing of Revenue Recognition Services Transferred at a Point in Time [Member] | ||
Net mortuary and cemetery sales | $ 10,580,892 | $ 7,203,874 |
Reconciliation of Revenues from
Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Pre-need merchandise and services | $ 3,780,173 | $ 3,688,579 |
At-need specialty merchandise | 35,371 | 29,688 |
Pre-need land sales | ||
Deferred policy and pre-need contract acquisition costs | $ 3,815,544 | $ 3,718,267 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 16,226,836 | $ 14,508,022 | $ 13,080,179 |
Revenue recognized included in the opening contract liability | 4,588,290 | 4,528,646 | |
Pre Need Merchandise and Service Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 15,289,901 | 13,722,348 | |
At Need Specialty Merchandise Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 936,935 | 785,674 | |
Deferred Pre-need Land Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | |||
Revenue, remaining performance obligation, percentage | 10% |
Schedule of Lease Cost Recogniz
Schedule of Lease Cost Recognized in Earnings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Leases | |||
Amortization of right-of-use assets | [1] | $ 30,163 | $ 41,925 |
Interest on lease liabilities | [2] | 2,773 | 4,713 |
Operating lease cost | [3] | 4,498,894 | 4,896,315 |
Short-term lease cost | [3],[4] | 1,135,003 | 167,551 |
Sublease income | [3] | (209,455) | (275,038) |
Total lease cost | 5,457,378 | 4,835,466 | |
Operating cash flows from operating leases | 4,250,630 | 4,697,819 | |
Operating cash flows from finance leases | 2,773 | 4,713 | |
Financing cash flows from finance leases | 31,685 | 42,184 | |
Operating leases | 2,054,534 | 5,216,048 | |
Finance leases | |||
Finance lease, Weighted-average remaining lease term (in years) | 1 year 3 months | 2 years 25 days | |
Operating lease, Weighted-average remaining lease term (in years) | 3 years 5 months 15 days | 6 years 14 days | |
Finance lease, Weighted-average discount rate | 5.78% | 5.74% | |
Operating lease, Weighted-average discount rate | 4.50% | 4.14% | |
[1]Included in Depreciation on property and equipment on the consolidated statements of earnings[2]Included in Interest expense on the consolidated statements of earnings[3]Included in Rent and rent related expenses on the consolidated statements of earnings[4]Includes leases with a term of 12 months or less |
Schedule of Future Minimum Rent
Schedule of Future Minimum Rental Payments for Finance Leases and Operating Leases (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Finance Leases 2023 | $ 27,220 | |
Operating Leases 2023 | 3,929,227 | |
Finance Leases 2024 | 4,354 | |
Operating Leases 2024 | 3,328,744 | |
Finance Leases 2025 | 692 | |
Operating Leases 2025 | 2,166,880 | |
Finance Leases 2026 | ||
Operating Leases 2026 | 1,454,848 | |
Finance Leases 2027 | ||
Operating Leases 2027 | 340,112 | |
Finance Leases Thereafter | ||
Operating Leases Thereafter | 324,548 | |
Finance Leases Total undiscounted lease payments | 32,266 | |
Operating Leases Total undiscounted lease payments | 11,544,359 | |
Finance Leases Less: Discount on cash flows | (1,184) | |
Operating Leases Less: Discount on cash flows | (947,888) | |
Finance Leases Present value of lease liabilities | 31,082 | $ 62,767 |
Operating Leases Present value of lease liabilities | $ 10,596,471 | $ 12,939,691 |
Schedule of Right-of-Use Assets
Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating Lease, Right-of-Use Asset | $ 9,987,699 | $ 12,483,638 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Operating Lease Liabilities | $ 10,596,471 | $ 12,939,691 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities and accrued expenses | Other liabilities and accrued expenses |
Finance Lease, Right-of-Use Assets | $ 228,221 | $ 235,867 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | (200,178) | (177,660) |
Finance Lease, Right-of-Use Assets, Net | $ 28,043 | $ 58,207 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Finance Lease Liabilities | $ 31,082 | $ 62,767 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Bank and other loans payable | Bank and other loans payable |