Document and Entity Information
Document and Entity Information - $ / shares | Jul. 31, 2018 | Jun. 30, 2018 |
Registrant Name | 1st Franklin Financial Corporation | |
Registrant CIK | 38,723 | |
SEC Form | 10-Q | |
Period End date | Jun. 30, 2018 | |
Fiscal Year End | --12-31 | |
Trading Symbol | ffc | |
Filer Category | Smaller Reporting Company | |
Current with reporting | Yes | |
Voluntary filer | No | |
Well-known Seasoned Issuer | No | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Voting Common Stock | ||
Number of common stock shares outstanding | 1,700 | |
Entity Listing, Par Value Per Share | $ 100 | |
Nonvoting Common Stock | ||
Number of common stock shares outstanding | 168,300 | |
Entity Listing, Par Value Per Share | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents | $ 23,879,783 | $ 30,565,836 | |
Restricted Cash | 4,389,036 | 4,677,945 | |
LOANS: | |||
Direct Cash Loans | 559,896,521 | 540,380,078 | |
Real Estate Loans | 29,104,340 | 27,117,189 | |
Sales Finance Contracts | 42,774,521 | 34,314,270 | |
Loans, Total | 631,775,382 | 601,811,537 | |
Unearned Finance Charges | 79,999,852 | 74,439,222 | |
Unearned Insurance Premiums and Commissions | 41,665,329 | 39,212,982 | |
Allowance for Loan Losses | 41,000,000 | 42,500,000 | |
Net Loans | 469,110,201 | 445,659,333 | |
INVESTMENT SECURITIES: | |||
Available for Sale, at fair value | 202,468,144 | 204,568,031 | |
Held to Maturity, at amortized cost | 1,828,839 | 5,010,190 | |
Other Investments and Securities, at Cost | 204,296,983 | 209,578,221 | |
Other Assets | 25,848,019 | 27,754,058 | |
ASSETS, Total | 727,524,022 | 718,235,393 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Senior Debt | 441,956,628 | 426,731,217 | |
Accrued Expenses and Other Liabilities | 17,692,913 | 25,920,271 | |
Subordinated Debt | 31,545,814 | 33,487,903 | |
LIABILITIES, Total | 491,195,355 | 486,139,391 | |
COMMITMENTS AND CONTINGENCIES | [1] | ||
STOCKHOLDERS' EQUITY: | |||
Preferred Stock, Value, Issued | 0 | 0 | |
Accumulated Other Comprehensive Income | (40,280) | 4,596,132 | |
Retained Earnings | 236,198,947 | 227,329,870 | |
Stockholders' Equity, Total | 236,328,667 | 232,096,002 | |
LIABILITIES AND STOCKHOLDERS' EQUITY, TOTAL | 727,524,022 | 718,235,393 | |
Voting Common Stock | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock, Value, Issued | 170,000 | 170,000 | |
Nonvoting Common Stock | |||
STOCKHOLDERS' EQUITY: | |||
Common Stock, Value, Issued | $ 0 | $ 0 | |
[1] | Note 5 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Position (Unaudited) - Parenthetical - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Preferred Stock, Shares Authorized | 6,000 | 6,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Shares, Issued | 170,000 | 170,000 |
Common Stock, Shares, Outstanding | 170,000 | 170,000 |
Voting Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Common Stock, Shares Authorized | 2,000 | 2,000 |
Common Stock, Shares, Issued | 1,700 | 1,700 |
Common Stock, Shares, Outstanding | 1,700 | 1,700 |
Nonvoting Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 198,000 | 198,000 |
Common Stock, Shares, Issued | 168,300 | 168,300 |
Common Stock, Shares, Outstanding | 168,300 | 168,300 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Details | ||||
Interest Income | $ 43,158,250 | $ 38,017,886 | $ 86,282,051 | $ 78,449,142 |
Interest Expense | 3,324,117 | 3,200,799 | 6,573,691 | 6,320,479 |
NET INTEREST INCOME | 39,834,133 | 34,817,087 | 79,708,360 | 72,128,663 |
Provision for loan losses | 6,971,067 | 6,987,117 | 15,171,675 | 16,664,852 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 32,863,066 | 27,829,970 | 64,536,685 | 55,463,811 |
NET INSURANCE INCOME | ||||
Premiums and Commissions | 10,513,457 | 10,157,923 | 21,066,067 | 21,261,251 |
Insurance Claims and Expenses | 2,700,954 | 2,409,283 | 5,281,484 | 5,131,072 |
Total Net Insurance Income | 7,812,503 | 7,748,640 | 15,784,583 | 16,130,179 |
OTHER REVENUE | 1,471,545 | 1,123,653 | 2,475,769 | 2,164,884 |
OTHER OPERATING EXPENSES: | ||||
Personnel Expense | 22,631,997 | 20,226,917 | 44,431,272 | 40,461,890 |
Occupancy Expense | 4,220,660 | 4,062,206 | 8,494,409 | 7,927,917 |
Other Expense | 7,251,345 | 7,331,184 | 17,319,597 | 15,603,849 |
Operating Expenses, Total | 34,104,002 | 31,620,307 | 70,245,278 | 63,993,656 |
INCOME BEFORE INCOME TAXES | 8,043,112 | 5,081,956 | 12,551,759 | 9,765,218 |
Provision for Income Taxes | 783,806 | 1,206,958 | 1,577,918 | 2,459,391 |
Net Income (Loss) | 7,259,306 | 3,874,998 | 10,973,841 | 7,305,827 |
RETAINED EARNINGS, Beginning of Period | 230,252,382 | 215,439,000 | 227,329,870 | 212,570,553 |
Adjustment Resulting from the Adoption Of Accounting Standard (Note 1) | 0 | 0 | (792,023) | 0 |
Distributions on Common Stock | (1,312,741) | 401,007 | (1,312,741) | (161,375) |
RETAINED EARNINGS, End of Period | $ 236,198,947 | $ 219,715,005 | $ 236,198,947 | $ 219,715,005 |
BASIC EARNINGS PER SHARE: | ||||
170,000 Shares Outstanding for All Periods (1,700 voting, 168,300 non-voting) | $ 42.70 | $ 22.79 | $ 64.55 | $ 42.98 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) - Parenthetical - shares | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, Shares, Issued | 170,000 | 170,000 |
Common Stock, Shares, Outstanding | 170,000 | 170,000 |
Voting Common Stock | ||
Common Stock, Shares, Issued | 1,700 | 1,700 |
Common Stock, Shares, Outstanding | 1,700 | 1,700 |
Nonvoting Common Stock | ||
Common Stock, Shares, Issued | 168,300 | 168,300 |
Common Stock, Shares, Outstanding | 168,300 | 168,300 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Details | |||||
Net Income (Loss) | $ 7,259,306 | $ 3,874,998 | $ 10,973,841 | $ 7,305,827 | |
Net changes related to available-for-sale Securities: | |||||
Unrealized gains (losses) during period | (271,522) | 3,879,219 | (6,630,410) | 4,826,168 | |
Income tax (provision) benefit | 68,246 | (1,298,982) | 2,167,606 | (1,619,897) | |
Net unrealized (losses) gains | (203,276) | 2,580,237 | (4,462,804) | 3,206,271 | |
Reclassification of (gains)/losses to Net Income (Loss) | [1] | 173,608 | 883 | 173,608 | 883 |
Total Other Comprehensive Income (Loss) | (376,884) | 2,579,354 | (4,636,412) | 3,205,388 | |
Total Comprehensive Income | $ 6,882,422 | $ 6,454,352 | $ 6,337,429 | $ 10,511,215 | |
[1] | Reclassified $188,304 to other operating expenses and $14,696 to provision for income taxes on the Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) during the three- and six-month periods ended June 30, 2018. Reclassified $1,338 to other operating expenses and $455 to provision for income taxes on the Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) during the three- and six-month periods ended June 30, 2017. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Parenthetical - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Details | ||||
Reclassification to Other Operating Expenses | $ 188,304 | $ 1,338 | $ 188,304 | $ 1,338 |
Reclassification to Provision for Income Taxes | $ 14,696 | $ 455 | $ 14,696 | $ 455 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ 10,973,841 | $ 7,305,827 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | ||
Provision for loan losses | 15,171,675 | 16,664,852 |
Depreciation and amortization | 2,310,174 | 2,003,684 |
Provision for deferred (prepaid) income taxes | 63,591 | (474,507) |
Earnings in equity method investment | 0 | (145,374) |
Other | (187,827) | 176,171 |
Decrease (increase) in miscellaneous other assets | 1,092,369 | (1,968,026) |
Decrease in other liablities | (6,900,669) | (878,223) |
Net Cash Provided by (Used in) Operating Activities | 22,523,154 | 22,684,404 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Loans originated or purchased | (230,159,232) | (186,259,402) |
Loan payments | 191,536,689 | 182,159,679 |
Purchases of marketable debt securities | (15,527,033) | (21,942,772) |
Redemptions of marketable debt securities | 14,143,275 | 5,385,000 |
Fixed asset additions, net | (1,462,396) | (2,611,815) |
Net Cash Provided by (Used in) Investing Activities | (41,468,697) | (23,269,310) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in senior demand notes outstanding | 2,749,561 | 2,313,387 |
Advances on credit line | 264,888 | 277,163 |
Payments on credit line | (264,888) | (277,163) |
Commercial paper issued | 28,017,701 | 25,986,079 |
Commercial paper redeemed | (15,541,851) | (14,160,040) |
Subordinated debt securities issued | 3,070,558 | 3,849,846 |
Subordinated debt securities redeemed | (5,012,647) | (4,628,923) |
Dividends / Distributions | (1,312,741) | (161,375) |
Net Cash Provided by (Used in) Financing Activities | 11,970,581 | 13,198,974 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (6,974,962) | 12,614,068 |
CASH AND CASH EQUIVALENTS, beginning | 35,243,781 | 61,112,624 |
CASH AND CASH EQUIVALENTS, ending | 28,268,819 | 73,726,692 |
Cash paid during the period for Interest | 6,639,140 | 6,318,881 |
Cash paid during the period for Taxes | $ 1,690,000 | $ 3,304,000 |
Non-cash Exchange of Investment Securities | 341,692 | - |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 1 - Basis of Presentation | Note 1 – Basis of Presentation The accompanying unaudited condensed consolidated financial statements of 1 st In the opinion of Management of the Company, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the Company's consolidated financial position as of June 30, 2018 and December 31, 2017, its consolidated results of operations and comprehensive income for the three and six-month periods ended June 30, 2018 and 2017 and its consolidated cash flows for the six months ended June 30, 2018 and 2017. While certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, the Company believes that the disclosures herein are adequate to make the information presented not misleading. The Company’s financial condition and results of operations as of and for the three- and six-month periods ended June 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period. The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amount of assets and liabilities at and as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The computation of earnings per share is self-evident from the accompanying Condensed Consolidated Statements of Income and Retained Earnings (Unaudited). The Company has no dilutive securities outstanding. Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (“ASC 606”), “Revenue from Contracts with Customers”. Under the new guidance, companies are required to recognize revenue when the seller satisfies a performance obligation, which would be when the buyer takes control of the good or service. The Company adopted this guidance using the “modified retrospective” method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The Company categorizes its primary sources of revenue into three categories: (1) interest related revenues, (2) insurance related revenue and (3) revenue from contracts with customers. · · · Other revenues, as a whole, are immaterial to total revenues. There was no change to previously reported amounts from the cumulative effect of the adoption of ASC 606. During the three months ended June 30, 2018 and 2017, the Company recognized interest related income of $43.2 million and $38.0 million, respectively, insurance related income of $10.5 million and $10.2 million, respectively, and other revenues of $1.5 million and $1.1 million, respectively. During the six months ended June 30, 2018 and 2017, the Company recognized interest related income of $86.3 million and $78.4 million, respectively, insurance related income of $21.1 million and $21.3 million, respectively, and other revenue of $2.5 million and $2.2 million, respectively. In February 2016, the FASB issued ASU 2016-02, “Leases Topic (842): Leases.” This ASU will increase the transparency of accounting for least transactions. The update requires disclosures regarding key information about leasing arrangements and requires all leases to be recognized on the balance sheet as a right-to-use asset and a corresponding lease liability. All of the Company’s leases are currently classified as operating leases, with no lease assets or lease liabilities recorded. The update is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. The FASB continues to issue clarifications, updates and implementation guidance, which we continue to monitor. The implementation of the accounting update will create lease assets and lease liabilities and have an impact on the Company’s debt covenants. The Company is working with its lenders to address any issues before implementation and continues to evaluate and quantify the potential impacts of this update on its consolidated financial statements. During the first quarter of 2018, the Company adopted ASU 2016-18, “Restricted Cash” (“ASU 2016-18”), which updated ASC Topic 230, “Statement of Cash Flows.” ASU 2016-18 required companies to include cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard resulted in a decrease in net cash used in investing activities of $.5 milion for the six months ended June 30, 2017. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. This update allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting resulting from the reduction of the federal corporate income tax rate pursuant to enactment of the Tax Cuts and Jobs Act. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted ASU 2018-02 on January 1, 2018, resulting in a $.8 million reclassification from accumulated other comprehensive income to retained earnings on the Condensed Consolidated Statement of Financial Position and the Condensed Consolidated Statement of Comprehensive (Loss) / Income. There have been no updates to other recent accounting pronouncements described in our 2017 Annual Report and no new pronouncements that Management believes would have a material impact on the Company. |
Note 2 - Allowance For Loan Los
Note 2 - Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 2 - Allowance For Loan Losses | Note 2 – Allowance for Loan Losses The allowance for loan losses is based on Management's evaluation of the inherent risks and changes in the composition of the Company's loan portfolio. Management’s approach to estimating and evaluating the allowance for loan losses is on a total portfolio level based on historical loss trends, bankruptcy trends, the level of receivables at the balance sheet date, payment patterns and economic conditions primarily including, but not limited to, unemployment levels and gasoline prices. Historical loss trends are tracked on an on-going basis. The trend analysis includes statistical analysis of the correlation between loan date and charge off date, charge off statistics by the total loan portfolio, and charge off statistics by branch, division and state. Delinquency and bankruptcy filing trends are also tracked. If trends indicate an adjustment to the allowance for loan losses is warranted, Management will make what it considers to be appropriate adjustments. The level of receivables at the balance sheet date is reviewed and adjustments to the allowance for loan losses are made if Management determines increases or decreases in the level of receivables warrants an adjustment. The Company uses monthly unemployment statistics, and various other monthly or periodic economic statistics, published by departments of the U.S. government and other economic statistics providers to determine the economic component of the allowance for loan losses. Such allowance is, in the opinion of Management, sufficiently adequate for probable losses in the current loan portfolio. As the estimates used in determining the loan loss reserve are influenced by outside factors, such as consumer payment patterns and general economic conditions, there is uncertainty inherent in these estimates. Actual results could vary based on future changes in significant assumptions. Management does not disaggregate the Company’s loan portfolio by loan class when evaluating loan performance. The total portfolio is evaluated for credit losses based on contractual delinquency and other economic conditions. The Company classifies delinquent accounts at the end of each month according to the number of installments past due at that time, based on the then-existing terms of the contract. Accounts are classified in delinquency categories based on the number of days past due. When three installments are past due, Management classifies the account as being 60-89 days past due; when four or more installments are past due, Management classifies the account as being 90 days or more past due. When a loan becomes five installments past due, it is charged off unless Management directs that it be retained as an active loan. In making this charge off evaluation, Management considers factors such as pending insurance, bankruptcy status and other indicators of collectability. In addition, no installment is counted as being past due if at least 80% of the contractual payment has been paid. In connection with any bankruptcy court-initiated repayment plan and as allowed by state regulatory authorities, the Company effectively resets the delinquency rating of each account to coincide with the court initiated repayment plan. The amount charged off is the unpaid balance less the unearned finance charges and the unearned insurance premiums, if applicable. When a loan becomes 60 days or more past due based on its original terms, it is placed in non-accrual status. At such time, the accrual of any additional finance charges is discontinued. Finance charges are then only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status. Nonaccrual loans return to accrual status when the loan becomes less than 60 days past due. There were no loans 60 days or more past due and still accruing interest at June 30, 2018 or December 31, 2016. The Company’s principal balances on non-accrual loans by loan class as of June 30, 2018 and December 31, 2017 are as follows: Loan Class June 30, 2018 December 31, 2017 Consumer Loans $ 23,457,476 $ 23,800,601 Real Estate Loans 1,140,569 1,156,255 Sales Finance Contracts 1,050,673 1,097,986 Total $ 25,648,718 $ 26,054,842 An age analysis of principal balances on past due loans, segregated by loan class, as of June 30, 2018 and December 31, 2017 follows: June 30, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Consumer Loans $ 15,018,854 $ 8,535,699 $ 16,910,561 $ 40,465,114 Real Estate Loans 890,244 255,233 1,348,125 2,493,602 Sales Finance Contracts 810,062 341,795 881,548 2,033,405 Total $ 16,719,160 $ 9,132,727 $ 19,140,234 $ 44,992,121 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Consumer Loans $ 14,483,119 $ 7,905,817 $ 17,475,439 $ 39,864,375 Real Estate Loans 676,407 321,125 1,170,572 2,168,104 Sales Finance Contracts 749,910 447,157 843,077 2,040,144 Total $ 15,909,436 $ 8,674,099 $ 19,489,088 $ 44,072,623 In addition to the delinquency rating analysis, the ratio of bankrupt accounts to the total loan portfolio is also used as a credit quality indicator. The ratio of bankrupt accounts outstanding to total principal loan balances outstanding at June 30, 2018 and December 31, 2017 was 2.30% and 2.23%, respectively. Nearly our entire loan portfolio consists of small homogeneous consumer loans (of the product types set forth in the table below). June 30, 2018 Principal Balance % Portfolio 6 Months Net Charge Offs % Net Charge Offs Consumer Loans $ 557,981,537 88.7 % $ 16,089,435 96.5 Real Estate Loans 28,525,987 4.5 9,271 .1 Sales Finance Contracts 42,500,778 6.8 572,969 3.4 Total $ 629,008,302 100.0 % $ 16,671,675 100.0 % June 30, 2017 Principal Balance % Portfolio 6 Months Net Charge Offs (Recoveries) % Net Charge Offs Consumer Loans $ 452,294,349 88.9 % $ 17,533,017 96.5 Real Estate Loans 24,856,273 4.9 12,290 .1 Sales Finance Contracts 31,528,712 6.2 619,545 3.4 Total $ 508,679,334 100.0 % $ 18,164,852 100.0 % Sales finance contracts are similar to consumer loans in nature of loan product, terms, customer base to whom these products are marketed, factors contributing to risk of loss and historical payment performance, and together with consumer loans, represented approximately 95% of principal balances outstanding in Company’s loan portfolio at both June 30, 2018 and 2017, respectively. As a result of these similarities, which have resulted in similar historical performance, consumer loans and sales finance contracts represent substantially all loan losses. Real estate loans and related losses have historically been insignificant, and, as a result, we do not stratify the loan portfolio for purposes of determining and evaluating our loan loss allowance. Due to the composition of the loan portfolio, the Company determines and monitors the allowance for loan losses on a collectively evaluated, single portfolio segment basis. Therefore, a roll forward of the allowance for loan loss activity at the portfolio segment level is the same as at the total portfolio level. We have not acquired any impaired loans with deteriorating quality during any period reported. The following table provides additional information on our allowance for loan losses based on a collective evaluation: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Allowance for Credit Losses: Beginning Balance $ 42,500,000 $ 48,500,000 $ 42,500,000 $ 48,500,000 Provision for Loan Losses 6,971,067 6,987,117 15,171,675 16,664,852 Charge-offs (12,220,420) (11,865,974) (24,369,539) (25,493,199) Recoveries 3,749,353 3,378,857 7,697,864 7,328,347 Ending Balance $ 41,000,000 $ 47,000,000 $ 41,000,000 $ 47,000,000 Ending balance; collectively evaluated for impairment $ 41,000,000 $ 47,000,000 $ 41,000,000 $ 47,000,000 Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Finance receivables: Ending balance $ 629,008,302 $ 508,679,334 $ 629,008,302 $ 508,679,334 Ending balance; collectively evaluated for impairment $ 629,008,302 $ 508,679,334 $ 629,008,302 $ 508,679,334 Troubled Debt Restructings ("TDRs") represent loans on which the original terms have been modified as a result of the following conditions: (i) the restructuring constitutes a concession and (ii) the borrower is experiencing financial difficulties. Loan modifications by the Company involve payment alterations, interest rate concessions and/ or reductions in the amount owed by the borrower. The following table presents a summary of loans that were restructured during the three months ended June 30, 2018. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 3,770 $ 9,381,669 $ 9,058,965 Real Estate Loans 13 112,589 105,807 Sales Finance Contracts 139 368,299 355,176 Total 3,922 $ 9,862,557 $ 9,519,948 The following table presents a summary of loans that were restructured during the three months ended June 30, 2017. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 3,465 $ 8,028,911 $ 7,738,871 Real Estate Loans 6 41,979 41,833 Sales Finance Contracts 102 260,108 246,752 Total 3,573 $ 8,330,998 $ 8,027,456 The following table presents a summary of loans that were restructured during the six months ended June 30, 2018. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 7,591 $ 18,263,137 $ 17,621,888 Real Estate Loans 24 212,000 204,988 Sales Finance Contracts 271 733,623 705,055 Total 7,886 $ 19,208,760 $ 18,531,931 The following table presents a summary of loans that were restructured during the six months ended June 30, 2017. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 7,376 $ 16,608,443 $ 15,936,952 Real Estate Loans 14 110,889 109,807 Sales Finance Contracts 231 595,675 572,656 Total 7,621 $ 17,315,007 $ 16,619,415 TDRs that occurred during the twelve months ended June 30, 2018 and subsequently defaulted during the three months ended June 30, 2018 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,500 $ 2,418,293 Real Estate Loans - - Sales Finance Contracts 44 98,585 Total 1,544 $ 2,516,878 TDRs that occurred during the twelve months ended June 30, 2017 and subsequently defaulted during the three months ended June 30, 2017 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,371 $ 2,054,030 Real Estate Loans - - Sales Finance Contracts 36 60,659 Total 1,407 $ 2,114,689 TDRs that occurred during the twelve months ended June 30, 2018 and subsequently defaulted during the six months ended June 30, 2018 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 2,689 $ 4,222,580 Real Estate Loans - - Sales Finance Contracts 74 158,563 Total 2,763 $ 4,381,143 TDRs that occurred during the twelve months ended June 30, 2017 and subsequently defaulted during the six months ended June 30, 2017 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 2,470 $ 3,616,911 Real Estate Loans - - Sales Finance Contracts 65 111,240 Total 2,535 $ 3,728,151 The level of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance of loan losses. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 3 - Investment Securities | Note 3 – Investment Securities Debt securities available-for-sale are carried at estimated fair value. Debt securities designated as "Held to Maturity" are carried at amortized cost based on Management's intent and ability to hold such securities to maturity. The amortized cost and estimated fair values of these debt securities were as follows: As of June 30, 2018 As of December 31, 2017 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale: Obligations of states and political subdivisions $ 197,293,008 $ 196,765,115 $ 187,508,758 $ 193,601,243 Mutual funds 5,195,958 5,308,623 10,261,379 10,508,953 Corporate securities 130,316 394,406 130,316 457,835 $ 202,619,282 $ 202,468,144 $ 197,900,453 $ 204,568,031 Held to Maturity: Obligations of states and political subdivisions $ 1,828,839 $ 1,818,426 $ 5,010,190 $ 5,015,313 Gross unrealized losses on investment securities totaled $4,154,442 and $973,000 at June 30, 2018 and December 31, 2017, respectively. The following table provides an analysis of investment securities in an unrealized loss position for which other-than-temporary impairments have not been recognized as of June 30, 2018 and December 31, 2017: Less than 12 Months 12 Months or Longer Total June 30, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 56,152,725 $ (1,545,831) $ 25,071,003 $ (2,565,358) $ 81,223,728 $ (4,111,189) Mutual Funds 1,837,940 (19,643) - - 1,837,940 (19,643) 57,990,665 (1,565,474) $ 25,071,003 (2,565,358) 83,061,668 (4,130,832) Held to Maturity: Obligations of states and political subdivisions 1,422,430 (23,610) - - 1,422,430 (23,610) Total $ 59,413,095 $ (1,589,084) $ 25,071,003 $ (2,565,358) $ 84,484,098 $ (4,154,442) Less than 12 Months 12 Months or Longer Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 3,974,826 $ (14,298) $ 26,715,587 $ (920,921) $ 30,690,413 $ (935,219) Mutual Funds 1,565,216 (16,397) - - 1,565,216 (16,397) 5,540,042 (30,695) 26,715,587 (920,921) 32,255,629 (951,616) Held to Maturity: Obligations of states and political subdivisions 1,233,730 (17,189) 250,767 (4,195) 1,484,497 (21,384) Total $ 6,773,772 $ (47,884) $ 26,966,354 $ (925,116) $ 33,740,126 $ (973,000) The previous two tables represent 102 and 43 investments held by the Company at June 30, 2018 and December 31, 2017, respectively, the majority of which are rated “A” or higher by Standard & Poor’s. The unrealized losses on the Company’s investments listed in the above table were primarily the result of interest rate and market fluctuations. Based on the credit ratings of these investments, along with the consideration of whether the Company has the intent to sell or will be more likely than not required to sell the applicable investment before recovery of amortized cost basis, the Company does not consider the impairment of any of these investments to be other-than-temporary at June 30, 2018 or December 31, 2017. The Company’s insurance subsidiaries internally designate certain investments as restricted to cover their policy reserves and loss reserves. Funds are held in separate trusts for the benefit of each insurance subsidiary at U.S. Bank National Association ("US Bank"). US Bank serves as trustee under trust agreements with the Company's property and casualty insurance company subsidiary (“Frandisco P&C”), as grantor, and American Bankers Insurance Company of Florida, as beneficiary. At June 30, 2018, these trusts held $41.6 million in available-for-sale investment securities at market value and $.9 million in held-to-maturity investment securities at amortized cost. US Bank also serves as trustee under trust agreements with the Company's life insurance company subidiary (“Frandisco Life”), as grantor, and American Bankers Life Assurance Company, as beneficiary. At June 30, 2018, these trusts held $17.7 million in available-for-sale investment securities at market value and $.4 million in held-to-maturity investment securities at amortized cost. The amounts required to be held in each trust change as required reserves change. All earnings on assets in the trusts are remitted to the Company's insurance subsidiaries. |
Note 4 - Fair Value
Note 4 - Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 4 - Fair Value | Note 4 – Fair Value Under ASC No. 820, fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs used to determine the fair value of an asset or liability, with the highest priority given to Level 1, as these are the most transparent or reliable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurements. Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following methods and assumptions are used by the Company in estimating fair values of its financial instruments: Cash and Cash Equivalents: Cash includes cash on hand and with banks. Cash equivalents are short-term highly liquid investments with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value due to the relatively short period of time between origination of the instruments and their expected realization. The estimate of the fair value of cash and cash equivalents is classified as a Level 1 financial asset. Loans: The carrying value of the Company’s direct cash loans and sales finance contracts approximates the fair value since the estimated life, assuming prepayments, is short-term in nature. The fair value of the Company’s real estate loans approximate the carrying value since the interest rate charged by the Company approximates market rate. The estimate of fair value of loans is classified as a Level 3 financial asset. Marketable Debt Securities: The Company values Level 2 securities using various observable market inputs obtained from a pricing service. The pricing service prepares evaluations of fair value for our Level 2 securities using proprietary valuation models based on techniques such as multi-dimensional relational models, and series of matrices that use observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company uses the following observable market inputs (“standard inputs”), listed in the approximate order of priority, in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. State, municipalities and political subdivisions securities are priced by our pricing service using material event notices and new issue data inputs in addition to the standard inputs. See additional information, including the table below, regarding fair value under ASC No. 820, and the fair value measurement of available-for-sale marketable debt securities. Muual Funds: The Company estimates the fair value of mutual fund and corporate investments with readily determinable fair values based on quoted prices observed in active markets; therefore, these investments are classified as Level 1. Senior Debt Securities: The carrying value of the Company’s senior debt securities approximates fair value due to the relatively short period of time between the origination of the instruments and their expected repayment. The estimate of fair value of senior debt securities is classified as a Level 2 financial liability. Subordinated Debt Securities: The carrying value of the Company’s variable rate subordinated debt securities approximates fair value due to the re-pricing frequency of the securities. The estimate of fair value of subordinated debt securities is classified as a Level 2 financial liability. The Company is responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. The Company performs due diligence to understand the inputs and how the data was calculated or derived. The Company employs a market approach in the valuation of its obligations of states, political subdivisions and municipal revenue bonds that are available-for-sale. These investments are valued on the basis of current market quotations provided by independent pricing services selected by Management based on the advice of an investment manager. To determine the value of a particular investment, these independent pricing services may use certain information with respect to market transactions in such investment or comparable investments, various relationships observed in the market between investments, quotations from dealers, and pricing metrics and calculated yield measures based on valuation methodologies commonly employed in the market for such investments. Quoted prices are subject to our internal price verification procedures. We validate prices received using a variety of methods including, but not limited, to comparison to other pricing services or corroboration of pricing by reference to independent market data such as a secondary broker. There was no change in this methodology during any period reported. Assets measured at fair value as of June 30, 2018 and December 31, 2017 were available-for-sale investment securities which are summarized below: Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Corporate securities $ 394,406 $ 394,406 $ -- $ -- Mutual funds 5,308,623 5,308,623 -- Obligations of states and political subdivisions 196,765,115 -- 196,765,115 -- Total $ 202,468,144 $ 5,703,029 $ 196,765,115 $ -- Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Corporate securities $ 457,835 $ 457,835 $ -- $ -- Mutual funds 10,508,952 10,508,952 -- -- Obligations of states and political subdivisions 193,601,244 -- 193,601,244 -- Total $ 204,568,031 $ 10,966,787 $ 193,601,244 $ -- |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 5 - Commitments and Contingencies | Note 5 – Commitments and Contingencies The Company is, and expects in the future to be, involved in various legal proceedings incidental to its business from time to time. Management makes provisions in its financial statements for legal, regulatory, and other contingencies when, in the opinion of Management, a loss is probable and reasonably estimable. At June 30, 2018, no such known proceedings or amounts, individually or in the aggregate, were expected to have a material impact on the Company or its financial condition or results of operations. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 6 - Income Taxes | Note 6 – Income Taxes Effective income tax rates were approximately 10% and 13% during the three- and six-month periods ended June 30, 2018, respectively, compared to 24% and 25% during the same periods in 2017. On December 22, 2017, the adoption of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) resulted in significant changes to the U.S. tax code, including a reduction in the maximum federal corporate income tax rate from 35% to 21%, effective January 1, 2018. The impact of the TCJA was the primary cause of the reduction in the Company’s income tax rates during the quarter just ended compared to the same period a year ago. The tax rates of the Company’s insurance subsidiaires were also below statutory rates due to investments in tax exempt bonds. The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to, and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status. |
Note 7 - Credit Agreement
Note 7 - Credit Agreement | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 7 - Credit Agreement | Note 7 – Credit Agreement Effective September 11, 2009, the Company entered into a credit facility with Wells Fargo Preferred Capital, Inc. The credit agreement provides for borrowings of up to $100.0 million or 70% of the Company's net finance receivables (as defined in the credit agreement), whichever is less and has a maturity date of September 11, 2019. Available borrowings under the credit agreement were $100.0 million at June 30, 2018 and December 31, 2017, at interest rates of 5.32% and 4.49%, respectively. The credit agreement contains covenants customary for financing transactions of this type. At June 30, 2018, the Company was in compliance with all covenants. |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 8 - Related Party Transactions | Note 8 – Related Party Transactions The Company engages from time to time in transactions with related parties. Please refer to the disclosure contained in Note 11 “Related Party Transactions” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2017 for additional information on such transactions. |
Note 9 - Segment Financial Info
Note 9 - Segment Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Notes | |
Note 9 - Segment Financial Information | Note 9 – Segment Financial Information The Company discloses segment information in accordance with FASB ASC 280. FASB ASC 280 requires companies to determine segments based on how management makes decisions about allocating resources to segments and measuring their performance. The Company maintains eight operating divisions, with one reportable business segment. At the end of 2017, the Company had seven divisions which comprised its operations: Division I through Division V, Division VII and Division VIII. Each division consisted of branch offices that were aggregated based on vice president responsibility and geographic location. Division I consisted of offices located in South Carolina. Offices in North Georgia comprised Division II and Division III consisted of offices in South Georgia. Division IV represented our Alabama offices, Divison V represented our Mississippi offices, Division VII represented our Tennessee offices and Division VIII represented our Louisiana offices. During the first quarter of 2018, the Company separated Division II and Division III, which together encompassed operations in Georgia, into three separate divsions, creating Division IX under a newly appointed vice president. The following divisional financial data has been retrospectively presented to give effect to the current structure. The change in reporting structure had no impact on previously reported consolidated results. Accounting policies of each of the divisions are the same as those for the Company as a whole. Performance is measured based on objectives set at the beginning of each year and include various factors such as division profit, growth in earning assets and delinquency and loan loss management. All division revenues result from transactions with third parties. The Company does not allocate income taxes or corporate headquarter expenses to the divisions. The following table summarizes revenues, profit and assets by each of the Company's divisions. Also in accordance therewith, a reconciliation to consolidated net income is provided. Division Division Division Division Division Division Division Division I II III IV V VII VIII IX Total (in thousands) Division Revenues: 3 Months ended 6/30/2018 $ 7,388 $ 8,023 $ 8,108 $ 8,472 $ 5,046 $ 3,695 $ 3,883 $ 7,090 $ 51,705 3 Months ended 6/30/2017 $ 5,937 $ 7,863 $ 7,880 $ 7,899 $ 4,286 $ 3,056 $ 3,246 $ 6,490 $ 46,657 6 Months ended 6/30/2018 $ 14,535 $ 16,016 $ 15,950 $ 17,060 $ 10,172 $ 7,202 $ 7,900 $ 14,405 $ 103,240 6 Months ended 6/30/2017 $ 12,291 $ 16,483 $ 16,202 $ 15,680 $ 8,933 $ 5,550 $ 6,755 $ 14,116 $ 96,010 Division Profit: 3 Months ended 6/30/2018 $ 2,509 $ 3,443 $ 3,393 $ 2,818 $ 1,512 $ 547 $ 818 $ 2,609 $ 17,649 3 Months ended 6/30/2017 $ 1,327 $ 2,901 $ 2,906 $ 2,662 $ 1,127 $ 283 $ 395 $ 1,541 $ 13,142 6 Months ended 6/30/2018 $ 4,969 $ 6,554 $ 6,792 $ 6,090 $ 3,267 $ 1,018 $ 1,784 $ 5,389 $ 35,863 6 Months ended 6/30/2017 $ 3,265 $ 6,368 $ 6,808 $ 5,371 $ 2,514 $ 486 $ 823 $ 3,870 $ 29,505 Division Assets: 6/30/2018 $ 73,527 $ 86,663 $ 81,242 $ 97,826 $ 49,674 $ 42,604 $ 38,215 $ 72,698 $ 542,449 12/31/2017 $ 66,354 $ 84,425 $ 77,886 $ 94,981 $ 49,149 $ 38,055 $ 37,053 $ 71,580 $ 519,483 3 Months Ended 6/30/2018 3 Months Ended 6/30/2017 6 Months Ended 6/30/2018 6 Months Ended 6/30/2017 (in 000’s) (in 000’s) (in 000’s) (in 000’s) Reconciliation of Profit: Profit per division $ 17,649 $ 13,142 $ 35,863 $ 29,505 Corporate earnings not allocated 3,438 2,641 6,584 5,865 Corporate expenses not allocated (13,044) (10,701) (29,895) (25,605) Income taxes not allocated (784) (1,207) (1,578) (2,459) Net Income $ 7,259 $ 3,875 $ 10,974 $ 7,306 |
Note 1 - Basis of Presentation_
Note 1 - Basis of Presentation: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Policies | |
Recent Accounting Pronouncements: | Recent Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (“ASC 606”), “Revenue from Contracts with Customers”. Under the new guidance, companies are required to recognize revenue when the seller satisfies a performance obligation, which would be when the buyer takes control of the good or service. The Company adopted this guidance using the “modified retrospective” method effective January 1, 2018; as such, the Company applied the guidance only to the most recent period presented in the financial statements. The Company categorizes its primary sources of revenue into three categories: (1) interest related revenues, (2) insurance related revenue and (3) revenue from contracts with customers. · · · Other revenues, as a whole, are immaterial to total revenues. There was no change to previously reported amounts from the cumulative effect of the adoption of ASC 606. During the three months ended June 30, 2018 and 2017, the Company recognized interest related income of $43.2 million and $38.0 million, respectively, insurance related income of $10.5 million and $10.2 million, respectively, and other revenues of $1.5 million and $1.1 million, respectively. During the six months ended June 30, 2018 and 2017, the Company recognized interest related income of $86.3 million and $78.4 million, respectively, insurance related income of $21.1 million and $21.3 million, respectively, and other revenue of $2.5 million and $2.2 million, respectively. In February 2016, the FASB issued ASU 2016-02, “Leases Topic (842): Leases.” This ASU will increase the transparency of accounting for least transactions. The update requires disclosures regarding key information about leasing arrangements and requires all leases to be recognized on the balance sheet as a right-to-use asset and a corresponding lease liability. All of the Company’s leases are currently classified as operating leases, with no lease assets or lease liabilities recorded. The update is effective for annual and interim periods beginning after December 15, 2018, and early adoption is permitted. The FASB continues to issue clarifications, updates and implementation guidance, which we continue to monitor. The implementation of the accounting update will create lease assets and lease liabilities and have an impact on the Company’s debt covenants. The Company is working with its lenders to address any issues before implementation and continues to evaluate and quantify the potential impacts of this update on its consolidated financial statements. During the first quarter of 2018, the Company adopted ASU 2016-18, “Restricted Cash” (“ASU 2016-18”), which updated ASC Topic 230, “Statement of Cash Flows.” ASU 2016-18 required companies to include cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard resulted in a decrease in net cash used in investing activities of $.5 milion for the six months ended June 30, 2017. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. This update allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting resulting from the reduction of the federal corporate income tax rate pursuant to enactment of the Tax Cuts and Jobs Act. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted ASU 2018-02 on January 1, 2018, resulting in a $.8 million reclassification from accumulated other comprehensive income to retained earnings on the Condensed Consolidated Statement of Financial Position and the Condensed Consolidated Statement of Comprehensive (Loss) / Income. There have been no updates to other recent accounting pronouncements described in our 2017 Annual Report and no new pronouncements that Management believes would have a material impact on the Company. |
Note 2 - Allowance For Loan L19
Note 2 - Allowance For Loan Losses: Loans Receivable, Nonaccrual status policy (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Policies | |
Loans Receivable, Nonaccrual status policy | When a loan becomes 60 days or more past due based on its original terms, it is placed in non-accrual status.  At such time, the accrual of any additional finance charges is discontinued.  Finance charges are then only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status.  Nonaccrual loans return to accrual status when the loan becomes less than 60 days past due. |
Note 2 - Allowance For Loan L20
Note 2 - Allowance For Loan Losses: Schedule of Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Schedule of Allowance for Loan Losses | Loan Class June 30, 2018 December 31, 2017 Consumer Loans $ 23,457,476 $ 23,800,601 Real Estate Loans 1,140,569 1,156,255 Sales Finance Contracts 1,050,673 1,097,986 Total $ 25,648,718 $ 26,054,842 |
Note 2 - Allowance For Loan L21
Note 2 - Allowance For Loan Losses: Past Due Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Past Due Financing Receivables | June 30, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Consumer Loans $ 15,018,854 $ 8,535,699 $ 16,910,561 $ 40,465,114 Real Estate Loans 890,244 255,233 1,348,125 2,493,602 Sales Finance Contracts 810,062 341,795 881,548 2,033,405 Total $ 16,719,160 $ 9,132,727 $ 19,140,234 $ 44,992,121 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Consumer Loans $ 14,483,119 $ 7,905,817 $ 17,475,439 $ 39,864,375 Real Estate Loans 676,407 321,125 1,170,572 2,168,104 Sales Finance Contracts 749,910 447,157 843,077 2,040,144 Total $ 15,909,436 $ 8,674,099 $ 19,489,088 $ 44,072,623 |
Note 2 - Allowance For Loan L22
Note 2 - Allowance For Loan Losses: Schedule of Loans and Financing Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Schedule of Loans and Financing Receivable | June 30, 2018 Principal Balance % Portfolio 6 Months Net Charge Offs % Net Charge Offs Consumer Loans $ 557,981,537 88.7 % $ 16,089,435 96.5 Real Estate Loans 28,525,987 4.5 9,271 .1 Sales Finance Contracts 42,500,778 6.8 572,969 3.4 Total $ 629,008,302 100.0 % $ 16,671,675 100.0 % June 30, 2017 Principal Balance % Portfolio 6 Months Net Charge Offs (Recoveries) % Net Charge Offs Consumer Loans $ 452,294,349 88.9 % $ 17,533,017 96.5 Real Estate Loans 24,856,273 4.9 12,290 .1 Sales Finance Contracts 31,528,712 6.2 619,545 3.4 Total $ 508,679,334 100.0 % $ 18,164,852 100.0 % |
Note 2 - Allowance For Loan L23
Note 2 - Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Allowance for Credit Losses on Financing Receivables | Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Allowance for Credit Losses: Beginning Balance $ 42,500,000 $ 48,500,000 $ 42,500,000 $ 48,500,000 Provision for Loan Losses 6,971,067 6,987,117 15,171,675 16,664,852 Charge-offs (12,220,420) (11,865,974) (24,369,539) (25,493,199) Recoveries 3,749,353 3,378,857 7,697,864 7,328,347 Ending Balance $ 41,000,000 $ 47,000,000 $ 41,000,000 $ 47,000,000 Ending balance; collectively evaluated for impairment $ 41,000,000 $ 47,000,000 $ 41,000,000 $ 47,000,000 Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Finance receivables: Ending balance $ 629,008,302 $ 508,679,334 $ 629,008,302 $ 508,679,334 Ending balance; collectively evaluated for impairment $ 629,008,302 $ 508,679,334 $ 629,008,302 $ 508,679,334 |
Note 2 - Allowance For Loan L24
Note 2 - Allowance For Loan Losses: Troubled Debt Restructurings on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Troubled Debt Restructurings on Financing Receivables | Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 3,770 $ 9,381,669 $ 9,058,965 Real Estate Loans 13 112,589 105,807 Sales Finance Contracts 139 368,299 355,176 Total 3,922 $ 9,862,557 $ 9,519,948 The following table presents a summary of loans that were restructured during the three months ended June 30, 2017. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 3,465 $ 8,028,911 $ 7,738,871 Real Estate Loans 6 41,979 41,833 Sales Finance Contracts 102 260,108 246,752 Total 3,573 $ 8,330,998 $ 8,027,456 The following table presents a summary of loans that were restructured during the six months ended June 30, 2018. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 7,591 $ 18,263,137 $ 17,621,888 Real Estate Loans 24 212,000 204,988 Sales Finance Contracts 271 733,623 705,055 Total 7,886 $ 19,208,760 $ 18,531,931 The following table presents a summary of loans that were restructured during the six months ended June 30, 2017. Number Of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Consumer Loans 7,376 $ 16,608,443 $ 15,936,952 Real Estate Loans 14 110,889 109,807 Sales Finance Contracts 231 595,675 572,656 Total 7,621 $ 17,315,007 $ 16,619,415 TDRs that occurred during the twelve months ended June 30, 2018 and subsequently defaulted during the three months ended June 30, 2018 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,500 $ 2,418,293 Real Estate Loans - - Sales Finance Contracts 44 98,585 Total 1,544 $ 2,516,878 TDRs that occurred during the twelve months ended June 30, 2017 and subsequently defaulted during the three months ended June 30, 2017 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 1,371 $ 2,054,030 Real Estate Loans - - Sales Finance Contracts 36 60,659 Total 1,407 $ 2,114,689 TDRs that occurred during the twelve months ended June 30, 2018 and subsequently defaulted during the six months ended June 30, 2018 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 2,689 $ 4,222,580 Real Estate Loans - - Sales Finance Contracts 74 158,563 Total 2,763 $ 4,381,143 TDRs that occurred during the twelve months ended June 30, 2017 and subsequently defaulted during the six months ended June 30, 2017 are listed below. Number Of Loans Pre-Modification Recorded Investment Consumer Loans 2,470 $ 3,616,911 Real Estate Loans - - Sales Finance Contracts 65 111,240 Total 2,535 $ 3,728,151 |
Note 3 - Investment Securities_
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Schedule of amortized cost and estimated fair values of debt securities | As of June 30, 2018 As of December 31, 2017 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Available-for-Sale: Obligations of states and political subdivisions $ 197,293,008 $ 196,765,115 $ 187,508,758 $ 193,601,243 Mutual funds 5,195,958 5,308,623 10,261,379 10,508,953 Corporate securities 130,316 394,406 130,316 457,835 $ 202,619,282 $ 202,468,144 $ 197,900,453 $ 204,568,031 Held to Maturity: Obligations of states and political subdivisions $ 1,828,839 $ 1,818,426 $ 5,010,190 $ 5,015,313 |
Note 3 - Investment Securitie26
Note 3 - Investment Securities: Schedule of Investment Securities Fair Value and Unrealized Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Schedule of Investment Securities Fair Value and Unrealized Losses | Less than 12 Months 12 Months or Longer Total June 30, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 56,152,725 $ (1,545,831) $ 25,071,003 $ (2,565,358) $ 81,223,728 $ (4,111,189) Mutual Funds 1,837,940 (19,643) - - 1,837,940 (19,643) 57,990,665 (1,565,474) $ 25,071,003 (2,565,358) 83,061,668 (4,130,832) Held to Maturity: Obligations of states and political subdivisions 1,422,430 (23,610) - - 1,422,430 (23,610) Total $ 59,413,095 $ (1,589,084) $ 25,071,003 $ (2,565,358) $ 84,484,098 $ (4,154,442) Less than 12 Months 12 Months or Longer Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available for Sale: Obligations of states and political subdivisions $ 3,974,826 $ (14,298) $ 26,715,587 $ (920,921) $ 30,690,413 $ (935,219) Mutual Funds 1,565,216 (16,397) - - 1,565,216 (16,397) 5,540,042 (30,695) 26,715,587 (920,921) 32,255,629 (951,616) Held to Maturity: Obligations of states and political subdivisions 1,233,730 (17,189) 250,767 (4,195) 1,484,497 (21,384) Total $ 6,773,772 $ (47,884) $ 26,966,354 $ (925,116) $ 33,740,126 $ (973,000) |
Note 4 - Fair Value_ Fair Value
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Fair Value Measurements, by Fair Value hierarchy | Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs Description 2018 (Level 1) (Level 2) (Level 3) Corporate securities $ 394,406 $ 394,406 $ -- $ -- Mutual funds 5,308,623 5,308,623 -- Obligations of states and political subdivisions 196,765,115 -- 196,765,115 -- Total $ 202,468,144 $ 5,703,029 $ 196,765,115 $ -- Fair Value Measurements at Reporting Date Using Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Corporate securities $ 457,835 $ 457,835 $ -- $ -- Mutual funds 10,508,952 10,508,952 -- -- Obligations of states and political subdivisions 193,601,244 -- 193,601,244 -- Total $ 204,568,031 $ 10,966,787 $ 193,601,244 $ -- |
Note 9 - Segment Financial In28
Note 9 - Segment Financial Information: Schedule of Segment Reporting Information, by Segment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Division Division Division Division Division Division Division Division I II III IV V VII VIII IX Total (in thousands) Division Revenues: 3 Months ended 6/30/2018 $ 7,388 $ 8,023 $ 8,108 $ 8,472 $ 5,046 $ 3,695 $ 3,883 $ 7,090 $ 51,705 3 Months ended 6/30/2017 $ 5,937 $ 7,863 $ 7,880 $ 7,899 $ 4,286 $ 3,056 $ 3,246 $ 6,490 $ 46,657 6 Months ended 6/30/2018 $ 14,535 $ 16,016 $ 15,950 $ 17,060 $ 10,172 $ 7,202 $ 7,900 $ 14,405 $ 103,240 6 Months ended 6/30/2017 $ 12,291 $ 16,483 $ 16,202 $ 15,680 $ 8,933 $ 5,550 $ 6,755 $ 14,116 $ 96,010 Division Profit: 3 Months ended 6/30/2018 $ 2,509 $ 3,443 $ 3,393 $ 2,818 $ 1,512 $ 547 $ 818 $ 2,609 $ 17,649 3 Months ended 6/30/2017 $ 1,327 $ 2,901 $ 2,906 $ 2,662 $ 1,127 $ 283 $ 395 $ 1,541 $ 13,142 6 Months ended 6/30/2018 $ 4,969 $ 6,554 $ 6,792 $ 6,090 $ 3,267 $ 1,018 $ 1,784 $ 5,389 $ 35,863 6 Months ended 6/30/2017 $ 3,265 $ 6,368 $ 6,808 $ 5,371 $ 2,514 $ 486 $ 823 $ 3,870 $ 29,505 Division Assets: 6/30/2018 $ 73,527 $ 86,663 $ 81,242 $ 97,826 $ 49,674 $ 42,604 $ 38,215 $ 72,698 $ 542,449 12/31/2017 $ 66,354 $ 84,425 $ 77,886 $ 94,981 $ 49,149 $ 38,055 $ 37,053 $ 71,580 $ 519,483 3 Months Ended 6/30/2018 3 Months Ended 6/30/2017 6 Months Ended 6/30/2018 6 Months Ended 6/30/2017 (in 000Â’s) (in 000Â’s) (in 000Â’s) (in 000Â’s) Reconciliation of Profit: Profit per division $ 17,649 $ 13,142 $ 35,863 $ 29,505 Corporate earnings not allocated 3,438 2,641 6,584 5,865 Corporate expenses not allocated (13,044) (10,701) (29,895) (25,605) Income taxes not allocated (784) (1,207) (1,578) (2,459) Net Income $ 7,259 $ 3,875 $ 10,974 $ 7,306 |
Note 2 - Allowance For Loan L29
Note 2 - Allowance For Loan Losses (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Details | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Ratio of bankrupt accounts to total principal loan balances | 2.30% | 2.23% |
Note 2 - Allowance For Loan L30
Note 2 - Allowance For Loan Losses: Schedule of Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Cosumer Loans | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 23,457,476 | $ 23,800,601 |
Real Estate Loans | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,140,569 | 1,156,255 |
Sales Finance Contracts | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,050,673 | 1,097,986 |
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 25,648,718 | $ 26,054,842 |
Note 2 - Allowance For Loan L31
Note 2 - Allowance For Loan Losses: Past Due Financing Receivables (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Cosumer Loans | ||
Financing Receivable, Recorded Investment, Past Due | $ 40,465,114 | $ 39,864,375 |
Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due | 2,493,602 | 2,168,104 |
Sales Finance Contracts | ||
Financing Receivable, Recorded Investment, Past Due | 2,033,405 | 2,040,144 |
Financing Receivable, Recorded Investment, Past Due | 44,992,121 | 44,072,623 |
Financing Receivables, 30 to 59 Days Past Due | Cosumer Loans | ||
Financing Receivable, Recorded Investment, Past Due | 15,018,854 | 14,483,119 |
Financing Receivables, 30 to 59 Days Past Due | Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due | 890,244 | 676,407 |
Financing Receivables, 30 to 59 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Recorded Investment, Past Due | 810,062 | 749,910 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | 16,719,160 | 15,909,436 |
Financing Receivables, 60 to 89 Days Past Due | Cosumer Loans | ||
Financing Receivable, Recorded Investment, Past Due | 8,535,699 | 7,905,817 |
Financing Receivables, 60 to 89 Days Past Due | Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due | 255,233 | 321,125 |
Financing Receivables, 60 to 89 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Recorded Investment, Past Due | 341,795 | 447,157 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | 9,132,727 | 8,674,099 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Cosumer Loans | ||
Financing Receivable, Recorded Investment, Past Due | 16,910,561 | 17,475,439 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due | 1,348,125 | 1,170,572 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Sales Finance Contracts | ||
Financing Receivable, Recorded Investment, Past Due | 881,548 | 843,077 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | $ 19,140,234 | $ 19,489,088 |
Note 2 - Allowance For Loan L32
Note 2 - Allowance For Loan Losses: Schedule of Loans and Financing Receivable (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Gross | $ 629,008,302 | $ 508,679,334 |
Financing Receivable, percent of portfolio | 100.00% | 100.00% |
Financing Receivable, 3-months net charge-offs | $ 16,671,675 | $ 18,164,852 |
Financing Receivable, percent net charge-offs | 100.00% | 100.00% |
Cosumer Loans | ||
Financing Receivable, Gross | $ 557,981,537 | $ 452,294,349 |
Financing Receivable, percent of portfolio | 88.70% | 88.90% |
Financing Receivable, 3-months net charge-offs | $ 16,089,435 | $ 17,533,017 |
Financing Receivable, percent net charge-offs | 96.50% | 96.50% |
Real Estate Loans | ||
Financing Receivable, Gross | $ 28,525,987 | $ 24,856,273 |
Financing Receivable, percent of portfolio | 4.50% | 4.90% |
Financing Receivable, 3-months net charge-offs | $ 9,271 | $ 12,290 |
Financing Receivable, percent net charge-offs | 0.10% | 0.10% |
Sales Finance Contracts | ||
Financing Receivable, Gross | $ 42,500,778 | $ 31,528,712 |
Financing Receivable, percent of portfolio | 6.80% | 6.20% |
Financing Receivable, 3-months net charge-offs | $ 572,969 | $ 619,545 |
Financing Receivable, percent net charge-offs | 3.40% | 3.40% |
Note 2 - Allowance For Loan L33
Note 2 - Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Details | ||||
Loans and Leases Receivable, Allowance, Beginning Balance | $ 42,500,000 | $ 48,500,000 | $ 42,500,000 | $ 48,500,000 |
Provision for Loan, Lease, and Other Losses | 6,971,067 | 6,987,117 | 15,171,675 | 16,664,852 |
Financing Receivable, Allowance for Credit Losses, Write-downs | (12,220,420) | (11,865,974) | (24,369,539) | (25,493,199) |
Financing Receivable, Allowance for Credit Losses, Recovery | 3,749,353 | 3,378,857 | 7,697,864 | 7,328,347 |
Loans and Leases Receivable, Allowance, Ending Balance | 41,000,000 | 47,000,000 | 41,000,000 | 47,000,000 |
Loans and Leases Receivable, Allowance, collectively evaluated for impairment | 41,000,000 | 47,000,000 | 41,000,000 | 47,000,000 |
Impaired Financing Receivable, Related Allowance | 629,008,302 | 508,679,334 | 629,008,302 | 508,679,334 |
Financing Receivable, Collectively Evaluated for Impairment | $ 629,008,302 | $ 508,679,334 | $ 629,008,302 | $ 508,679,334 |
Note 2 - Allowance For Loan L34
Note 2 - Allowance For Loan Losses: Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Current 12 months | ||||
Financing Receivable, Modifications, Number of Contracts | 3,922 | 3,573 | 7,886 | 7,621 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 9,862,557 | $ 8,330,998 | $ 19,208,760 | $ 17,315,007 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 9,519,948 | $ 8,027,456 | $ 18,531,931 | $ 16,619,415 |
Current 12 months | Cosumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 3,770 | 3,465 | 7,591 | 7,376 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 9,381,669 | $ 8,028,911 | $ 18,263,137 | $ 16,608,443 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 9,058,965 | $ 7,738,871 | $ 17,621,888 | $ 15,936,952 |
Current 12 months | Real Estate Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 13 | 6 | 24 | 14 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 112,589 | $ 41,979 | $ 212,000 | $ 110,889 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 105,807 | $ 41,833 | $ 204,988 | $ 109,807 |
Current 12 months | Sales Finance Contracts | ||||
Financing Receivable, Modifications, Number of Contracts | 139 | 102 | 271 | 231 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 368,299 | $ 260,108 | $ 733,623 | $ 595,675 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 355,176 | $ 246,752 | $ 705,055 | $ 572,656 |
Previous 12 months | ||||
Financing Receivable, Modifications, Number of Contracts | 1,544 | 1,407 | 2,763 | 2,535 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2,516,878 | $ 2,114,689 | $ 4,381,143 | $ 3,728,151 |
Previous 12 months | Cosumer Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 1,500 | 1,371 | 2,689 | 2,470 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2,418,293 | $ 2,054,030 | $ 4,222,580 | $ 3,616,911 |
Previous 12 months | Real Estate Loans | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Previous 12 months | Sales Finance Contracts | ||||
Financing Receivable, Modifications, Number of Contracts | 44 | 36 | 74 | 65 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 98,585 | $ 60,659 | $ 158,563 | $ 111,240 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Details | ||
Basis for Valuation, Debt Securities | Debt securities available-for-sale are carried at estimated fair value. Debt securities designated as 'Held to Maturity' are carried at amortized cost based on Management's intent and ability to hold such securities to maturity. | |
Gross unrealized losses on investment securities | $ 4,154,442 | $ 973,000 |
Note 3 - Investment Securitie36
Note 3 - Investment Securities: Schedule of amortized cost and estimated fair values of debt securities (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Mutual Funds | ||
Available-for-sale Securities, Amortized Cost Basis | $ 5,195,958 | $ 10,261,379 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 5,308,623 | 10,508,953 |
Available-for-sale Securities, Amortized Cost Basis | 202,619,282 | 197,900,453 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 202,468,144 | 204,568,031 |
Held to Maturity, at amortized cost | 1,828,839 | 5,010,190 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 197,293,008 | 187,508,758 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 196,765,115 | 193,601,243 |
Held to Maturity, at amortized cost | 1,828,839 | 5,010,190 |
Held-to-maturity Securities, Fair Value | 1,818,426 | 5,015,313 |
Corporate Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 130,316 | 130,316 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $ 394,406 | $ 457,835 |
Note 3 - Investment Securitie37
Note 3 - Investment Securities: Schedule of Investment Securities Fair Value and Unrealized Losses (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 59,413,095 | $ 6,773,772 |
Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (1,589,084) | (47,884) |
Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 25,071,003 | 26,966,354 |
Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | (2,565,358) | (925,116) |
Securities, Continuous Unrealized Loss Position, Fair Value | 84,484,098 | 33,740,126 |
Continuous Unrealized Loss Position, Aggregate Losses | (4,154,442) | (973,000) |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 56,152,725 | 3,974,826 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (1,545,831) | (14,298) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 25,071,003 | 26,715,587 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (2,565,358) | (920,921) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 81,223,728 | 30,690,413 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | (4,111,189) | (935,219) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,422,430 | 1,233,730 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (23,610) | (17,189) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 250,767 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 0 | (4,195) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 1,422,430 | 1,484,497 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ (23,610) | $ (21,384) |
Note 4 - Fair Value_ Fair Val38
Note 4 - Fair Value: Fair Value Measurements, by Fair Value hierarchy (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Corporate Debt Securities | ||
Investments, Fair Value Disclosure | $ 394,406 | $ 457,835 |
Mutual Funds | ||
Investments, Fair Value Disclosure | 5,308,623 | 10,508,952 |
US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 196,765,115 | 193,601,244 |
Investments, Fair Value Disclosure | 202,468,144 | 204,568,031 |
Fair Value, Inputs, Level 1 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 394,406 | 457,835 |
Fair Value, Inputs, Level 1 | Mutual Funds | ||
Investments, Fair Value Disclosure | 5,308,623 | 10,508,952 |
Fair Value, Inputs, Level 1 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Investments, Fair Value Disclosure | 5,703,029 | 10,966,787 |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Mutual Funds | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 196,765,115 | 193,601,244 |
Fair Value, Inputs, Level 2 | ||
Investments, Fair Value Disclosure | 196,765,115 | 193,601,244 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Mutual Funds | ||
Investments, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Note 6 - Income Taxes (Details)
Note 6 - Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Details | ||||
Effective Income Tax Rate Reconciliation, Percent | 10.00% | 24.00% | 13.00% | 25.00% |
Note 7 - Credit Agreement (Deta
Note 7 - Credit Agreement (Details) - Wells Fargo Preferred Capital, Inc. - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 |
Line of Credit Facility, Initiation Date | Sep. 11, 2009 | ||
Line of Credit Facility, Description | the Company entered into a credit facility with Wells Fargo Preferred Capital, Inc. The credit agreement provides for borrowings of up to $100.0 million or 70% of the Company's net finance receivables (as defined in the credit agreement), whichever is less | ||
Line of Credit Facility, Borrowing Capacity, Description | The credit agreement provides for borrowings of up to $100.0 million or 70% of the Company's net finance receivables (as defined in the credit agreement), whichever is less | ||
Line of Credit Facility, Commitment maturity date | Sep. 11, 2019 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 100 | $ 100 | $ 100 |
Line of Credit Facility, Interest Rate Description | 5.32% | 4.49% |
Note 9 - Segment Financial In41
Note 9 - Segment Financial Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Division I | ||||
Segment Reporting Information, Revenue for Reportable Segment | $ 7,388 | $ 5,937 | $ 14,535 | $ 12,291 |
Profit (Loss) | 2,509 | 1,327 | 4,969 | 3,265 |
Segment Reporting Information, Net Assets | 73,527 | 73,527 | ||
Segment Reporting Information, Net Assets | 66,354 | |||
Division II | ||||
Segment Reporting Information, Revenue for Reportable Segment | 8,023 | 7,863 | 16,016 | 16,483 |
Profit (Loss) | 3,443 | 2,901 | 6,554 | 6,368 |
Segment Reporting Information, Net Assets | 86,663 | 86,663 | ||
Segment Reporting Information, Net Assets | 84,425 | |||
Division III | ||||
Segment Reporting Information, Revenue for Reportable Segment | 8,108 | 7,880 | 15,950 | 16,202 |
Profit (Loss) | 3,393 | 2,906 | 6,792 | 6,808 |
Segment Reporting Information, Net Assets | 81,242 | 81,242 | ||
Segment Reporting Information, Net Assets | 77,886 | |||
Division IV | ||||
Segment Reporting Information, Revenue for Reportable Segment | 8,472 | 7,899 | 17,060 | 15,680 |
Profit (Loss) | 2,818 | 2,662 | 6,090 | 5,371 |
Segment Reporting Information, Net Assets | 97,826 | 97,826 | ||
Segment Reporting Information, Net Assets | 94,981 | |||
Division V | ||||
Segment Reporting Information, Revenue for Reportable Segment | 5,046 | 4,286 | 10,172 | 8,933 |
Profit (Loss) | 1,512 | 1,127 | 3,267 | 2,514 |
Segment Reporting Information, Net Assets | 49,674 | 49,674 | ||
Segment Reporting Information, Net Assets | 49,149 | |||
Division VII | ||||
Segment Reporting Information, Revenue for Reportable Segment | 3,695 | 3,056 | 7,202 | 5,550 |
Profit (Loss) | 547 | 283 | 1,018 | 486 |
Segment Reporting Information, Net Assets | 42,604 | 42,604 | ||
Segment Reporting Information, Net Assets | 38,055 | |||
Division VIII | ||||
Segment Reporting Information, Revenue for Reportable Segment | 3,883 | 3,246 | 7,900 | 6,755 |
Profit (Loss) | 818 | 395 | 1,784 | 823 |
Segment Reporting Information, Net Assets | 38,215 | 38,215 | ||
Segment Reporting Information, Net Assets | 37,053 | |||
Division IX | ||||
Segment Reporting Information, Revenue for Reportable Segment | 7,090 | 6,490 | 14,405 | 14,116 |
Profit (Loss) | 2,609 | 1,541 | 5,389 | 3,870 |
Segment Reporting Information, Net Assets | 72,698 | 72,698 | ||
Segment Reporting Information, Net Assets | 71,580 | |||
Segment Reporting Information, Revenue for Reportable Segment | 51,705 | 46,657 | 103,240 | 96,010 |
Profit (Loss) | 17,649 | 13,142 | 35,863 | 29,505 |
Segment Reporting Information, Net Assets | 542,449 | 542,449 | ||
Segment Reporting Information, Net Assets | 519,483 | |||
Profit per division | 17,649 | 13,142 | 35,863 | 29,505 |
Corporate earnings not allocated | 3,438 | 2,641 | 6,584 | 5,865 |
Corporate expenses not allocated | (13,044) | (10,701) | (29,895) | (25,605) |
Income Taxes not allocated | (784) | (1,207) | (1,578) | (2,459) |
Net Income | $ 7,259 | $ 3,875 | $ 10,974 | $ 7,306 |