UTAH
|
87-0345941
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
5300 South 360 West, Suite 250, Salt Lake City, Utah
|
84123
|
(Address of principal executive offices)
|
(Zip Code)
|
(801) 264-1060
(Registrant’s telephone number, including area code)
|
Large accelerated filer [ ]
|
Accelerated filer [ ]
|
|
Non-accelerated filer [ ] (Do
not check if a smaller reporting company)
|
Smaller reporting company [X]
|
|
Emerging growth company [ ]
|
Page No.
|
||
Part I - Financial Information
|
||
Item 1.
|
Financial Statements
|
|
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 (unaudited)
|
3-4
|
|
Condensed Consolidated Statements of Earnings for the three months Ended March 31, 2019 and 2018 (unaudited)
|
5
|
|
Condensed Consolidated Statements of Comprehensive Income for the three months Ended March 31, 2019 and 2018
(unaudited)
|
6
|
|
Condensed Consolidated Statements of Stockholders' Equity as of March 31, 2019 and March 31, 2018 (unaudited)
|
7
|
|
Condensed Consolidated Statements of Cash Flows for the three months Ended March 31, 2019 and 2018 (unaudited)
|
8-9
|
|
Notes to Condensed Consolidated Financial Statements (unaudited)
|
10
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
50
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
54
|
Item 4.
|
Controls and Procedures
|
55
|
Part II - Other Information
|
||
Item 1.
|
Legal Proceedings
|
55
|
Item 1A.
|
Risk Factors
|
55
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
55
|
Item 3.
|
Defaults Upon Senior Securities
|
56
|
Item 4.
|
Mine Safety Disclosures
|
56
|
Item 5.
|
Other Information
|
56
|
Item 6.
|
Exhibits
|
57
|
Signature Page
|
60
|
Assets
|
March 31
2019 (Unaudited) |
December 31
2018 |
||||||
Investments:
|
||||||||
Fixed maturity securities, held to maturity, at amortized cost
|
$
|
231,378,413
|
$
|
232,078,723
|
||||
Equity securities at estimated fair value
|
6,927,352
|
5,558,611
|
||||||
Mortgage loans held for investment (net of allowances for loan losses of
$1,378,215 and $1,347,972 for 2019 and 2018)
|
196,344,356
|
186,465,069
|
||||||
Real estate held for investment (net of accumulated depreciation of $17,213,134
and $16,739,578 for 2019 and 2018)
|
121,282,747
|
121,558,222
|
||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,263,475 and
$1,092,528 for 2019 and 2018)
|
50,649,956
|
46,617,655
|
||||||
Accrued investment income
|
3,712,606
|
3,566,146
|
||||||
Total investments
|
610,295,430
|
595,844,426
|
||||||
Cash and cash equivalents
|
130,133,196
|
142,199,942
|
||||||
Loans held for sale at estimated fair value
|
123,374,303
|
136,210,853
|
||||||
Receivables (net of allowances for doubtful accounts of $1,538,608 and $1,519,842 for 2019 and 2018)
|
8,990,449
|
8,935,343
|
||||||
Restricted assets (including $799,835 and $744,673 for 2019 and 2018 at estimated fair value)
|
12,087,375
|
10,981,562
|
||||||
Cemetery perpetual care trust investments (including $543,284 and $483,353 for 2019 and 2018 at estimated fair value)
|
4,080,363
|
4,335,869
|
||||||
Receivable from reinsurers
|
10,852,082
|
10,820,102
|
||||||
Cemetery land and improvements
|
9,873,851
|
9,878,427
|
||||||
Deferred policy and pre-need contract acquisition costs
|
90,734,682
|
89,362,096
|
||||||
Mortgage servicing rights, net
|
19,049,013
|
20,016,822
|
||||||
Property and equipment, net
|
9,347,138
|
7,010,778
|
||||||
Value of business acquired
|
5,626,782
|
5,765,190
|
||||||
Goodwill
|
3,516,315
|
2,765,570
|
||||||
Other
|
17,810,980
|
6,684,143
|
||||||
Total Assets
|
$
|
1,055,771,959
|
$
|
1,050,811,123
|
March 31
2019 (Unaudited) |
December 31
2018 |
|||||||
Liabilities and Stockholders' Equity
|
||||||||
Liabilities
|
||||||||
Future policy benefits and unpaid claims
|
$
|
623,507,974
|
$
|
620,399,714
|
||||
Unearned premium reserve
|
3,859,495
|
3,920,473
|
||||||
Bank and other loans payable
|
175,090,614
|
187,521,188
|
||||||
Deferred pre-need cemetery and mortuary contract revenues
|
12,650,552
|
12,508,625
|
||||||
Cemetery perpetual care obligation
|
3,851,164
|
3,821,979
|
||||||
Accounts payable
|
3,407,759
|
2,883,349
|
||||||
Other liabilities and accrued expenses
|
42,713,828
|
31,821,624
|
||||||
Income taxes
|
16,641,088
|
16,122,998
|
||||||
Total liabilities
|
881,722,474
|
878,999,950
|
||||||
Stockholders' Equity
|
||||||||
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 15,312,687 shares in 2019 and
15,304,798 shares in 2018
|
30,625,374
|
30,609,596
|
||||||
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,190,361 shares in 2019 and
2,193,643 shares in 2018
|
4,380,722
|
4,387,286
|
||||||
Additional paid-in capital
|
42,190,568
|
41,821,778
|
||||||
Accumulated other comprehensive income, net of taxes
|
(2,003
|
)
|
(2,823
|
)
|
||||
Retained earnings
|
97,131,281
|
95,201,732
|
||||||
Treasury stock at cost - 261,384 Class A shares in 2019 and 302,541 Class A shares in 2018
|
(276,457
|
)
|
(206,396
|
)
|
||||
Total stockholders' equity
|
174,049,485
|
171,811,173
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
1,055,771,959
|
$
|
1,050,811,123
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Revenues:
|
||||||||
Insurance premiums and other considerations
|
$
|
19,027,002
|
$
|
18,810,358
|
||||
Net investment income
|
10,041,668
|
10,074,431
|
||||||
Net mortuary and cemetery sales
|
3,678,628
|
3,232,729
|
||||||
Gains on investments and other assets
|
1,806,661
|
22,020,939
|
||||||
Mortgage fee income
|
24,478,871
|
25,460,160
|
||||||
Other
|
2,461,005
|
2,477,492
|
||||||
Total revenues
|
61,493,835
|
82,076,109
|
||||||
Benefits and expenses:
|
||||||||
Death benefits
|
10,077,903
|
9,608,098
|
||||||
Surrenders and other policy benefits
|
865,931
|
810,128
|
||||||
Increase in future policy benefits
|
5,751,130
|
5,584,936
|
||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
|
3,128,274
|
3,109,933
|
||||||
Selling, general and administrative expenses:
|
||||||||
Commissions
|
9,675,092
|
11,282,401
|
||||||
Personnel
|
15,031,336
|
16,566,688
|
||||||
Advertising
|
1,033,175
|
1,029,591
|
||||||
Rent and rent related
|
1,904,288
|
1,963,350
|
||||||
Depreciation on property and equipment
|
449,680
|
477,031
|
||||||
Costs related to funding mortgage loans
|
1,354,925
|
1,369,281
|
||||||
Other
|
7,645,127
|
6,810,324
|
||||||
Interest expense
|
1,491,887
|
1,761,677
|
||||||
Cost of goods and services sold-mortuaries and cemeteries
|
652,928
|
515,490
|
||||||
Total benefits and expenses
|
59,061,676
|
60,888,928
|
||||||
Earnings before income taxes
|
2,432,159
|
21,187,181
|
||||||
Income tax expense
|
(501,841
|
)
|
(4,261,258
|
)
|
||||
Net earnings
|
$
|
1,930,318
|
$
|
16,925,923
|
||||
Net earnings per Class A Equivalent common share (1)
|
$
|
0.11
|
$
|
1.00
|
||||
Net earnings per Class A Equivalent common share-assuming dilution (1)
|
$
|
0.11
|
$
|
0.99
|
||||
Weighted-average Class A equivalent common share outstanding (1)
|
17,239,564
|
16,993,229
|
||||||
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1)
|
17,450,120
|
17,178,412
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Net earnings
|
$
|
1,930,318
|
$
|
16,925,923
|
||||
Other comprehensive income:
|
||||||||
Foreign currency translation adjustments
|
1,092
|
-
|
||||||
Other comprehensive income, before income tax
|
1,092
|
-
|
||||||
Income tax expense
|
(272
|
)
|
-
|
|||||
Other comprehensive income, net of income tax
|
820
|
-
|
||||||
Comprehensive income
|
$
|
1,931,138
|
$
|
16,925,923
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||
Class A
Common Stock
|
Class C
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Income
|
Retained
Earnings
|
Treasury
Stock
|
Total
|
||||||||||||||||||||||
January 1, 2019
|
$
|
30,609,596
|
$
|
4,387,286
|
$
|
41,821,778
|
$
|
(2,823
|
)
|
$
|
95,201,732
|
$
|
(206,396
|
)
|
$
|
171,811,173
|
||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
1,930,318
|
-
|
1,930,318
|
|||||||||||||||||||||
Other comprehensive gain
|
-
|
-
|
-
|
820
|
-
|
-
|
820
|
|||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
64,704
|
-
|
-
|
-
|
64,704
|
|||||||||||||||||||||
Exercise of stock options
|
8,936
|
-
|
8,444
|
-
|
-
|
-
|
17,380
|
|||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
295,153
|
-
|
-
|
42,343
|
337,496
|
|||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(112,404
|
)
|
(112,404
|
)
|
|||||||||||||||||||
Stock dividends
|
282
|
(4
|
)
|
489
|
-
|
(769
|
)
|
-
|
(2
|
)
|
||||||||||||||||||
Conversion Class C to Class A
|
6,560
|
(6,560
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
March 31, 2019
|
$
|
30,625,374
|
$
|
4,380,722
|
$
|
42,190,568
|
$
|
(2,003
|
)
|
$
|
97,131,281
|
$
|
(276,457
|
)
|
$
|
174,049,485
|
||||||||||||
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||
Class A
Common Stock
|
Class C
Common Stock
|
Additional
Paid-in
Capital |
Accumulated
Other Comprehensive Income |
Retained
Earnings
|
Treasury
Stock
|
Total
|
||||||||||||||||||||||
January 1, 2018
|
$
|
29,071,154
|
$
|
4,178,748
|
$
|
38,125,042
|
$
|
603,170
|
$
|
77,520,951
|
$
|
(931,075
|
)
|
$
|
148,567,990
|
|||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
16,925,923
|
-
|
16,925,923
|
|||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)
|
-
|
-
|
-
|
(603,170
|
)
|
603,170
|
-
|
-
|
||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
58,087
|
-
|
-
|
-
|
58,087
|
|||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
88,964
|
-
|
-
|
222,410
|
311,374
|
|||||||||||||||||||||
Exercise of stock options
|
63,968
|
-
|
(22,115
|
)
|
-
|
-
|
-
|
41,853
|
||||||||||||||||||||
Stock dividends
|
3,520
|
(4
|
)
|
5,362
|
-
|
(8,878
|
)
|
-
|
-
|
|||||||||||||||||||
March 31, 2018
|
29,138,642
|
4,178,744
|
38,255,340
|
-
|
95,041,166
|
(708,665
|
)
|
165,905,227
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net cash provided by operating activities
|
$
|
19,519,486
|
$
|
8,712,560
|
||||
Cash flows from investing activities:
|
||||||||
Purchases of fixed maturity securities
|
(928,996
|
)
|
(7,155,114
|
)
|
||||
Calls and maturities of fixed maturity securities
|
1,541,770
|
3,604,516
|
||||||
Purchases of equity securities
|
(1,061,710
|
)
|
(1,084,398
|
)
|
||||
Sales of equity securities
|
355,562
|
922,402
|
||||||
Net changes in restricted assets
|
(482,975
|
)
|
(48,832
|
)
|
||||
Net changes in perpetual care trusts
|
484,581
|
2,376,461
|
||||||
Mortgage loans, other investments and policy loans made
|
(137,912,509
|
)
|
(132,321,562
|
)
|
||||
Payments received for mortgage loans, other investments and policy loans
|
123,293,624
|
131,816,474
|
||||||
Purchase of property and equipment
|
(76,403
|
)
|
(169,564
|
)
|
||||
Sale of property and equipment
|
799
|
48,314
|
||||||
Purchase of real estate
|
(1,309,373
|
)
|
(768,942
|
)
|
||||
Sale of real estate
|
2,349,864
|
58,476,379
|
||||||
Cash paid for purchase of subsidiaries, net of cash acquired
|
(3,261,788
|
)
|
-
|
|||||
Net cash provided by (used in) investing activities
|
(17,007,554
|
)
|
55,696,134
|
|||||
Cash flows from financing activities:
|
||||||||
Investment contract receipts
|
2,760,871
|
2,867,412
|
||||||
Investment contract withdrawals
|
(3,959,861
|
)
|
(4,410,074
|
)
|
||||
Proceeds from stock options exercised
|
17,380
|
41,853
|
||||||
Purchase of treasury stock
|
(112,404
|
)
|
-
|
|||||
Repayment of bank and other loans
|
(46,299,191
|
)
|
(27,369,431
|
)
|
||||
Proceeds from borrowing on bank loans
|
47,273,807
|
20,421,042
|
||||||
Net change in warehouse line borrowings
|
(13,643,525
|
)
|
(309,286
|
)
|
||||
Net change in line of credit borrowings
|
-
|
1,250,000
|
||||||
Net cash used in financing activities
|
(13,962,923
|
)
|
(7,508,484
|
)
|
||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
|
(11,450,991
|
)
|
56,900,210
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
|
150,936,673
|
54,501,923
|
||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
|
$
|
139,485,682
|
$
|
111,402,133
|
||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
1,508,895
|
$
|
1,674,074
|
||||
Income taxes (net of refunds)
|
(15,975
|
)
|
164
|
|||||
Non Cash Operating, Investing and Financing Activities:
|
||||||||
Right-of-use assets obtained in exchange for operating lease liabilities
|
$
|
11,931,889
|
$
|
-
|
||||
Right-of-use assets obtained in exchange for finance lease liabilities
|
238,335
|
-
|
||||||
Accrued real estate construction costs and retainage
|
786,859
|
26,769
|
||||||
Mortgage loans held for investment foreclosed into real estate held for investment
|
550,000
|
225,166
|
||||||
Benefit plans funded with treasury stock
|
337,496
|
311,374
|
||||||
Mortgage loans held for investment foreclosed into receivables
|
155,347
|
-
|
||||||
Transfer of loans held for sale to mortgage loans held for investment
|
-
|
139,464
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Cash and cash equivalents
|
$
|
130,133,196
|
$
|
101,728,202
|
||||
Restricted assets
|
7,751,804
|
7,468,609
|
||||||
Cemetery perpetual care trust investments
|
1,600,682
|
2,205,322
|
||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
139,485,682
|
$
|
111,402,133
|
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Estimated
Fair Value |
|||||||||||||
March 31, 2019
|
||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
52,162,274
|
$
|
376,785
|
$
|
(456,728
|
)
|
$
|
52,082,331
|
|||||||
Obligations of states and political subdivisions
|
6,131,310
|
42,653
|
(55,394
|
)
|
6,118,569
|
|||||||||||
Corporate securities including public utilities
|
157,343,929
|
9,982,667
|
(1,445,027
|
)
|
165,881,569
|
|||||||||||
Mortgage-backed securities
|
15,637,703
|
358,905
|
(127,773
|
)
|
15,868,835
|
|||||||||||
Redeemable preferred stock
|
103,197
|
3,872
|
107,069
|
|||||||||||||
Total fixed maturity securities held to maturity
|
$
|
231,378,413
|
$
|
10,764,882
|
$
|
(2,084,922
|
)
|
$
|
240,058,373
|
|||||||
Equity securities at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
6,974,259
|
$
|
739,022
|
$
|
(785,929
|
)
|
$
|
6,927,352
|
|||||||
Total equity securities at estimated fair value
|
$
|
6,974,259
|
$
|
739,022
|
$
|
(785,929
|
)
|
$
|
6,927,352
|
|||||||
Mortgage loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
89,241,344
|
||||||||||||||
Residential construction
|
75,484,460
|
|||||||||||||||
Commercial
|
34,258,354
|
|||||||||||||||
Less: Unamortized deferred loan fees, net
|
(1,261,587
|
)
|
||||||||||||||
Less: Allowance for loan losses
|
(1,378,215
|
)
|
||||||||||||||
Total mortgage loans held for investment
|
$
|
196,344,356
|
||||||||||||||
Real estate held for investment net of accumulated depreciation:
|
||||||||||||||||
Residential
|
$
|
27,856,849
|
||||||||||||||
Commercial
|
93,425,898
|
|||||||||||||||
Total real estate held for investment
|
$
|
121,282,747
|
||||||||||||||
Other investments and policy loans at amortized cost:
|
||||||||||||||||
Policy loans
|
$
|
6,354,430
|
||||||||||||||
Insurance assignments
|
38,823,751
|
|||||||||||||||
Federal Home Loan Bank stock (1)
|
2,686,500
|
|||||||||||||||
Other investments
|
4,048,750
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(1,263,475
|
)
|
||||||||||||||
Total other investments and policy loans
|
$
|
50,649,956
|
||||||||||||||
Accrued investment income
|
$
|
3,712,606
|
||||||||||||||
Total investments
|
$
|
610,295,430
|
||||||||||||||
(1) Includes $806,500 of Membership stock and $1,880,000 of Activity stock due to short-term borrowings.
|
Cost
|
Gross
Unrealized
Gains |
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||||||
December 31, 2018:
|
||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
52,017,683
|
$
|
264,891
|
$
|
(727,798
|
)
|
$
|
51,554,776
|
|||||||
Obligations of states and political subdivisions
|
6,959,237
|
32,274
|
(111,271
|
)
|
6,880,240
|
|||||||||||
Corporate securities including public utilities
|
157,639,860
|
7,002,864
|
(3,704,137
|
)
|
160,938,587
|
|||||||||||
Mortgage-backed securities
|
15,358,746
|
227,398
|
(308,864
|
)
|
15,277,280
|
|||||||||||
Redeemable preferred stock
|
103,197
|
1,903
|
(5,125
|
)
|
99,975
|
|||||||||||
Total fixed maturity securities held to maturity
|
$
|
232,078,723
|
$
|
7,529,330
|
$
|
(4,857,195
|
)
|
$
|
234,750,858
|
|||||||
Equity securities at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
6,312,158
|
$
|
422,528
|
$
|
(1,176,075
|
)
|
$
|
5,558,611
|
|||||||
Total equity securities at estimated fair value
|
$
|
6,312,158
|
$
|
422,528
|
$
|
(1,176,075
|
)
|
$
|
5,558,611
|
|||||||
Mortgage loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
89,935,600
|
||||||||||||||
Residential construction
|
71,366,544
|
|||||||||||||||
Commercial
|
27,785,927
|
|||||||||||||||
Less: Unamortized deferred loan fees, net
|
(1,275,030
|
)
|
||||||||||||||
Less: Allowance for loan losses
|
(1,347,972
|
)
|
||||||||||||||
Total mortgage loans held for investment
|
$
|
186,465,069
|
||||||||||||||
Real estate held for investment net of accumulated depreciation:
|
||||||||||||||||
Residential
|
$
|
29,507,431
|
||||||||||||||
Commercial
|
92,050,791
|
|||||||||||||||
Total real estate held for investment
|
$
|
121,558,222
|
||||||||||||||
Other investments and policy loans at amortized cost:
|
||||||||||||||||
Policy loans
|
$
|
6,424,325
|
||||||||||||||
Insurance assignments
|
35,239,396
|
|||||||||||||||
Federal Home Loan Bank stock (1)
|
2,548,700
|
|||||||||||||||
Other investments
|
3,497,762
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(1,092,528
|
)
|
||||||||||||||
Total other investments and policy loans
|
$
|
46,617,655
|
||||||||||||||
Accrued investment income
|
$
|
3,566,146
|
||||||||||||||
Total investments
|
$
|
595,844,426
|
||||||||||||||
(1) Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings.
|
Unrealized
Losses for
Less than
Twelve
Months
|
Fair Value
|
Unrealized
Losses for
More than
Twelve
Months
|
Fair Value
|
Total
Unrealized
Loss
|
Fair Value
|
|||||||||||||||||||
At March 31, 2019
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies
|
$
|
767
|
$
|
495,115
|
$
|
455,961
|
$
|
40,408,121
|
$
|
456,728
|
$
|
40,903,236
|
||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
55,394
|
3,032,383
|
55,394
|
3,032,383
|
||||||||||||||||||
Corporate securities
|
392,239
|
11,641,590
|
1,052,788
|
23,415,999
|
1,445,027
|
35,057,589
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
24,997
|
389,730
|
102,776
|
1,804,667
|
127,773
|
2,194,397
|
||||||||||||||||||
Total unrealized losses
|
$
|
418,003
|
$
|
12,526,435
|
$
|
1,666,919
|
$
|
68,661,170
|
$
|
2,084,922
|
$
|
81,187,605
|
||||||||||||
At December 31, 2018
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government Agencies
|
$
|
10,519
|
$
|
695,863
|
$
|
717,279
|
$
|
39,930,052
|
$
|
727,798
|
$
|
40,625,915
|
||||||||||||
Obligations of states and political subdivisions
|
6,643
|
1,791,257
|
104,628
|
2,889,517
|
111,271
|
4,680,774
|
||||||||||||||||||
Corporate securities
|
2,514,549
|
61,090,431
|
1,189,588
|
11,767,349
|
3,704,137
|
72,857,780
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
79,896
|
1,705,296
|
228,968
|
2,690,065
|
308,864
|
4,395,361
|
||||||||||||||||||
Redeemable preferred stock
|
5,125
|
90,000
|
-
|
-
|
5,125
|
90,000
|
||||||||||||||||||
Total unrealized losses
|
$
|
2,616,732
|
$
|
65,372,847
|
$
|
2,240,463
|
$
|
57,276,983
|
$
|
4,857,195
|
$
|
122,649,830
|
Amortized
Cost |
Estimated Fair
Value |
|||||||
Held to Maturity:
|
||||||||
Due in 1 year
|
$
|
16,752,164
|
$
|
16,817,929
|
||||
Due in 2-5 years
|
66,507,390
|
67,272,309
|
||||||
Due in 5-10 years
|
66,149,179
|
67,744,587
|
||||||
Due in more than 10 years
|
66,228,780
|
72,247,644
|
||||||
Mortgage-backed securities
|
15,637,703
|
15,868,835
|
||||||
Redeemable preferred stock
|
103,197
|
107,069
|
||||||
Total held to maturity
|
$
|
231,378,413
|
$
|
240,058,373
|
Three Months Ended
March 31
|
||||||||||
2019
|
2018
|
|||||||||
Fixed maturity securities held to maturity:
|
||||||||||
Gross realized gains
|
$
|
85,587
|
$
|
28,133
|
||||||
Gross realized losses
|
(35,393
|
)
|
(308,931
|
)
|
||||||
Equity securities:
|
||||||||||
Gains on securities sold
|
11,576
|
14,650
|
||||||||
Unrealized gains and (losses) on securities held at the end of the period
|
761,208
|
(372,042
|
)
|
|||||||
Other assets:
|
||||||||||
Gross realized gains
|
1,104,935
|
22,951,723
|
(1
|
)
|
||||||
Gross realized losses
|
(121,252
|
)
|
(292,594
|
)
|
||||||
Total
|
$
|
1,806,661
|
$
|
22,020,939
|
||||||
(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments.
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Fixed maturity securities held to maturity
|
$
|
2,503,865
|
$
|
2,529,841
|
||||
Equity securities
|
77,921
|
58,292
|
||||||
Mortgage loans held for investment
|
4,103,367
|
4,531,927
|
||||||
Real estate held for investment
|
1,910,294
|
2,670,440
|
||||||
Policy loans
|
88,137
|
102,866
|
||||||
Insurance assignments
|
4,212,120
|
3,860,937
|
||||||
Other investments
|
54,548
|
53,673
|
||||||
Cash and cash equivalents
|
498,918
|
137,368
|
||||||
Gross investment income
|
13,449,170
|
13,945,344
|
||||||
Investment expenses
|
(3,407,502
|
)
|
(3,870,913
|
)
|
||||
Net investment income
|
$
|
10,041,668
|
$
|
10,074,431
|
Net Ending Balance
|
Total Square Footage
|
|||||||||||||||||||
March 31
|
December 31
|
March 31
|
December 31
|
|||||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||
Arizona
|
$
|
4,000
|
(1
|
)
|
$
|
4,000
|
(1
|
)
|
-
|
-
|
||||||||||
Kansas
|
7,210,017
|
6,861,898
|
222,679
|
222,679
|
||||||||||||||||
Louisiana
|
461,319
|
467,694
|
7,063
|
7,063
|
||||||||||||||||
Mississippi
|
3,309,692
|
3,329,948
|
33,821
|
33,821
|
||||||||||||||||
New Mexico
|
7,000
|
(1
|
)
|
7,000
|
(1
|
)
|
-
|
-
|
||||||||||||
Texas
|
300,000
|
(2
|
)
|
300,000
|
(2
|
)
|
-
|
-
|
||||||||||||
Utah
|
82,133,870
|
81,080,251
|
502,129
|
502,129
|
||||||||||||||||
$
|
93,425,898
|
$
|
92,050,791
|
765,692
|
765,692
|
|||||||||||||||
___________________________ |
||||||||||||||||||||
(1) Undeveloped land
|
||||||||||||||||||||
(2) Improved commercial pad
|
Net Ending Balance
|
||||||||
March 31
|
December 31
|
|||||||
2019
|
2018
|
|||||||
California
|
$
|
2,256,741
|
$
|
2,644,321
|
||||
Florida
|
6,093,133
|
6,534,277
|
||||||
Ohio
|
10,000
|
10,000
|
||||||
Tennessee
|
105,260
|
105,260
|
||||||
Texas
|
-
|
139,174
|
||||||
Utah
|
18,915,534
|
19,598,218
|
||||||
Washington
|
476,181
|
476,181
|
||||||
$
|
27,856,849
|
$
|
29,507,431
|
Business Segment
|
Approximate
Square
Footage
|
Square Footage Occupied
by the
Company
|
|||||||
5300 South 360 West, Salt Lake City, UT (1)
|
Corporate Offices, Life Insurance and Cemetery/Mortuary Operations
|
36,000
|
100
|
%
|
|||||
5201 Green Street, Salt Lake City, UT
|
Mortgage Operations
|
36,899
|
34
|
%
|
|||||
1044 River Oaks Dr., Flowood, MS
|
Life Insurance Operations
|
21,521
|
27
|
%
|
|||||
121 West Election Road, Draper, UT
|
Mortgage Sales
|
78,978
|
19
|
%
|
|||||
(1) This asset is included in property and equipment on the condensed consolidated balance sheets
|
Allowance for Credit Losses and Recorded Investment in Mortgage Loans
|
||||||||||||||||
Commercial
|
Residential
|
Residential Construction
|
Total
|
|||||||||||||
March 31, 2019
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance - January 1, 2019
|
$
|
187,129
|
$
|
1,125,623
|
$
|
35,220
|
$
|
1,347,972
|
||||||||
Charge-offs
|
-
|
(24,141
|
)
|
-
|
(24,141
|
)
|
||||||||||
Provision
|
-
|
46,402
|
7,982
|
54,384
|
||||||||||||
Ending balance - March 31, 2019
|
$
|
187,129
|
$
|
1,147,884
|
$
|
43,202
|
$
|
1,378,215
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
39,884
|
$
|
-
|
$
|
39,884
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,108,000
|
$
|
43,202
|
$
|
1,338,331
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
34,258,354
|
$
|
89,241,344
|
$
|
75,484,460
|
$
|
198,984,158
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
851,953
|
$
|
3,317,070
|
$
|
502,991
|
$
|
4,672,014
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
33,406,401
|
$
|
85,924,274
|
$
|
74,981,469
|
$
|
194,312,144
|
||||||||
December 31, 2018
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance - January 1, 2018
|
$
|
187,129
|
$
|
1,546,447
|
$
|
35,220
|
$
|
1,768,796
|
||||||||
Charge-offs
|
-
|
(5,725
|
)
|
-
|
(5,725
|
)
|
||||||||||
Provision
|
-
|
(415,099
|
)
|
-
|
(415,099
|
)
|
||||||||||
Ending balance - December 31, 2018
|
$
|
187,129
|
$
|
1,125,623
|
$
|
35,220
|
$
|
1,347,972
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
74,185
|
$
|
-
|
$
|
74,185
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,051,438
|
$
|
35,220
|
$
|
1,273,787
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
27,785,927
|
$
|
89,935,600
|
$
|
71,366,544
|
$
|
189,088,071
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
196,182
|
$
|
2,939,651
|
$
|
502,991
|
$
|
3,638,824
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
27,589,745
|
$
|
86,995,949
|
$
|
70,863,553
|
$
|
185,449,247
|
Age Analysis of Mortgage Loans Held for Investment
|
||||||||||||||||||||||||||||||||||||||||
30-59 Days
Past Due |
60-89 Days
Past Due |
Greater
Than 90 Days
(1)
|
In Process
of
Foreclosure
(1)
|
Total
Past Due |
Current
|
Total
Mortgage Loans |
Allowance
for
Loan
Losses
|
Unamortized deferred
loan fees,
net |
Net
Mortgage Loans |
|||||||||||||||||||||||||||||||
March 31, 2019
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
3,626,950
|
$
|
-
|
$
|
-
|
$
|
851,953
|
$
|
4,478,903
|
$
|
29,779,451
|
$
|
34,258,354
|
$
|
(187,129
|
)
|
$
|
25,582
|
$
|
34,096,807
|
|||||||||||||||||||
Residential
|
9,148,810
|
2,888,568
|
2,306,154
|
1,010,916
|
15,354,448
|
73,886,896
|
89,241,344
|
(1,147,884
|
)
|
(833,055
|
)
|
87,260,405
|
||||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
-
|
502,991
|
502,991
|
74,981,469
|
75,484,460
|
(43,202
|
)
|
(454,114
|
)
|
74,987,144
|
||||||||||||||||||||||||||||
Total
|
$
|
12,775,760
|
$
|
2,888,568
|
$
|
2,306,154
|
$
|
2,365,860
|
$
|
20,336,342
|
$
|
178,647,816
|
$
|
198,984,158
|
$
|
(1,378,215
|
)
|
$
|
(1,261,587
|
)
|
$
|
196,344,356
|
||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
4,588,424
|
$
|
-
|
$
|
196,182
|
$
|
-
|
$
|
4,784,606
|
$
|
23,001,321
|
$
|
27,785,927
|
$
|
(187,129
|
)
|
$
|
32,003
|
$
|
27,630,801
|
|||||||||||||||||||
Residential
|
9,899,380
|
2,312,252
|
1,715,362
|
1,224,289
|
15,151,283
|
74,784,317
|
89,935,600
|
(1,125,623
|
)
|
(862,411
|
)
|
87,947,566
|
||||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
-
|
502,991
|
502,991
|
70,863,553
|
71,366,544
|
(35,220
|
)
|
(444,622
|
)
|
70,886,702
|
||||||||||||||||||||||||||||
Total
|
$
|
14,487,804
|
$
|
2,312,252
|
$
|
1,911,544
|
$
|
1,727,280
|
$
|
20,438,880
|
$
|
168,649,191
|
$
|
189,088,071
|
$
|
(1,347,972
|
)
|
$
|
(1,275,030
|
)
|
$
|
186,465,069
|
||||||||||||||||||
(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure.
|
Impaired Loans
|
||||||||||||||||||||
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
March 31, 2019
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
851,953
|
$
|
851,953
|
$
|
-
|
$
|
851,953
|
$
|
-
|
||||||||||
Residential
|
2,565,738
|
2,565,738
|
-
|
2,565,738
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
502,991
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
751,332
|
751,332
|
39,884
|
751,332
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
851,953
|
$
|
851,953
|
$
|
-
|
$
|
851,953
|
$
|
-
|
||||||||||
Residential
|
3,317,070
|
3,317,070
|
39,884
|
3,317,070
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
502,991
|
-
|
|||||||||||||||
December 31, 2018
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
196,182
|
$
|
196,182
|
$
|
-
|
$
|
98,023
|
$
|
-
|
||||||||||
Residential
|
1,612,164
|
1,612,164
|
-
|
2,423,135
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
675,950
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
1,327,487
|
1,327,487
|
74,185
|
1,543,416
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
196,182
|
$
|
196,182
|
$
|
-
|
$
|
98,023
|
$
|
-
|
||||||||||
Residential
|
2,939,651
|
2,939,651
|
74,185
|
3,966,551
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
675,950
|
-
|
Credit Risk Profile Based on Payment Activity
|
||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Residential Construction
|
Total
|
|||||||||||||||||||||||||||||
March 31,
2019
|
December 31,
2018
|
March 31,
2019
|
December 31,
2018
|
March 31,
2019
|
December 31,
2018
|
March 31,
2019
|
December 31,
2018
|
|||||||||||||||||||||||||
Performing
|
$
|
33,406,401
|
$
|
27,589,745
|
$
|
85,924,274
|
$
|
86,995,949
|
$
|
74,981,469
|
$
|
70,863,553
|
$
|
194,312,144
|
$
|
185,449,247
|
||||||||||||||||
Non-performing
|
851,953
|
196,182
|
3,317,070
|
2,939,651
|
502,991
|
502,991
|
4,672,014
|
3,638,824
|
||||||||||||||||||||||||
Total
|
$
|
34,258,354
|
$
|
27,785,927
|
$
|
89,241,344
|
$
|
89,935,600
|
$
|
75,484,460
|
$
|
71,366,544
|
$
|
198,984,158
|
$
|
189,088,071
|
Mortgage Loans on Non-Accrual Status
|
||||||||
As of
March 31
2019 |
As of
December 31
2018 |
|||||||
Commercial
|
$
|
851,953
|
$
|
196,182
|
||||
Residential
|
3,317,070
|
2,939,651
|
||||||
Residential construction
|
502,991
|
502,991
|
||||||
Total
|
$
|
3,820,061
|
$
|
3,442,642
|
As of
March 31
2019
|
As of
December 31
2018
|
|||||||
Aggregate fair value
|
$
|
123,374,303
|
$
|
136,210,853
|
||||
Unpaid principal balance
|
119,925,635
|
131,663,946
|
||||||
Unrealized gain
|
3,448,668
|
4,546,907
|
Three Months Ended
March 31
|
||||||||
2019
|
2018
|
|||||||
Loan fees
|
$
|
5,741,262
|
$
|
5,745,308
|
||||
Interest income
|
1,214,632
|
1,116,454
|
||||||
Secondary gains
|
16,364,771
|
15,578,495
|
||||||
Change in fair value of loan commitments
|
932,527
|
440,958
|
||||||
Change in fair value of loans held for sale
|
328,058
|
2,929,996
|
||||||
Provision for loan loss reserve
|
(102,379
|
)
|
(351,051
|
)
|
||||
Mortgage fee income
|
$
|
24,478,871
|
$
|
25,460,160
|
As of
March 31
2019 |
As of
December 31
2018 |
|||||||
Balance, beginning of period
|
$
|
3,604,869
|
$
|
2,571,524
|
||||
Provision on current loan originations (1)
|
102,379
|
1,148,334
|
||||||
Charge-offs, net of recaptured amounts
|
(3,233
|
)
|
(114,989
|
)
|
||||
Balance, end of period
|
$
|
3,704,015
|
$
|
3,604,869
|
||||
_______________________________ |
||||||||
(1) Included in Mortgage fee income
|
Number of
Class A Shares |
Weighted Average Exercise Price
|
Number of
Class C Shares |
Weighted Average Exercise Price
|
|||||||||||||
Outstanding at December 31, 2018
|
1,011,274
|
$
|
4.49
|
577,280
|
$
|
5.15
|
||||||||||
Granted
|
2,000
|
-
|
||||||||||||||
Exercised
|
(968
|
)
|
-
|
|||||||||||||
Cancelled
|
-
|
-
|
||||||||||||||
Outstanding at March 31, 2019
|
1,012,306
|
$
|
4.49
|
577,280
|
$
|
5.15
|
||||||||||
As of March 31, 2019:
|
||||||||||||||||
Options exercisable
|
898,472
|
$
|
4.36
|
506,404
|
$
|
5.13
|
||||||||||
As of March 31, 2019:
|
||||||||||||||||
Available options for future grant
|
295,128
|
146,425
|
||||||||||||||
|
||||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2019
|
5.89 years
|
3.71 years
|
||||||||||||||
|
||||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2019
|
5.71 years
|
2.87 years
|
||||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2019 (1)
|
$
|
704,498
|
$
|
137,424
|
||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2019 (1)
|
$
|
704,498
|
$
|
137,424
|
||||||||||||
__________________________________ |
||||||||||||||||
(1) The Company used a stock price of $4.72 as of March 31, 2019 to derive intrinsic value.
|
Number of
Class A Shares |
Weighted Average Exercise Price
|
Number of
Class C Shares |
Weighted Average Exercise Price
|
|||||||||||||
Outstanding at December 31, 2017
|
880,426
|
$
|
4.35
|
523,603
|
$
|
5.24
|
||||||||||
Granted
|
-
|
-
|
||||||||||||||
Exercised
|
(31,984
|
)
|
-
|
|||||||||||||
Cancelled
|
(5,704
|
)
|
-
|
|||||||||||||
Outstanding at March 31, 2018
|
842,738
|
$
|
4.48
|
523,603
|
$
|
5.24
|
||||||||||
As of March 31, 2018:
|
||||||||||||||||
Options exercisable
|
744,686
|
$
|
4.40
|
468,477
|
$
|
5.29
|
||||||||||
As of March 31, 2018:
|
||||||||||||||||
Available options for future grant
|
421,241
|
165,638
|
||||||||||||||
Weighted average contractual term of options outstanding at March 31, 2018
|
6.55 years
|
3.19 years
|
||||||||||||||
|
||||||||||||||||
Weighted average contractual term of options exercisable at March 31, 2018
|
6.53 years
|
2.43 years
|
||||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options outstanding at March 31, 2018 (1)
|
$
|
850,528
|
$
|
251,961
|
||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options exercisable at March 31, 2018 (1)
|
$
|
836,882
|
$
|
232,667
|
||||||||||||
_________________________________________ |
||||||||||||||||
(1) The Company used a stock price of $5.15 as of March 31, 2018 to derive intrinsic value.
|
Three Months Ended
March 31 |
||||||||
2019
|
2018
|
|||||||
Numerator:
|
||||||||
Net earnings
|
$
|
1,930,318
|
$
|
16,925,923
|
||||
Denominator:
|
||||||||
Basic weighted-average shares outstanding
|
17,239,564
|
16,993,229
|
||||||
Effect of dilutive securities:
|
||||||||
Employee stock options
|
210,556
|
185,183
|
||||||
Diluted weighted-average shares outstanding
|
17,450,120
|
17,178,412
|
||||||
Basic net earnings per share
|
$
|
0.11
|
$
|
1.00
|
||||
Diluted net earnings per share
|
$
|
0.11
|
$
|
0.99
|
Life Insurance
|
Cemetery/
Mortuary |
Mortgage
|
Intercompany Eliminations
|
Consolidated
|
||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||
March 31, 2019
|
||||||||||||||||||||
Revenues from external customers
|
$
|
30,505,368
|
$
|
4,359,285
|
$
|
26,629,182
|
$
|
-
|
$
|
61,493,835
|
||||||||||
Intersegment revenues
|
895,372
|
116,651
|
126,358
|
(1,138,381
|
)
|
-
|
||||||||||||||
Segment profit before income taxes
|
2,085,341
|
1,184,865
|
(838,047
|
)
|
-
|
2,432,159
|
||||||||||||||
-
|
||||||||||||||||||||
Identifiable Assets
|
935,021,695
|
87,087,362
|
155,695,585
|
(125,548,998
|
)
|
1,052,255,644
|
||||||||||||||
Goodwill
|
2,765,570
|
750,745
|
-
|
-
|
3,516,315
|
|||||||||||||||
Total Assets
|
937,787,265
|
87,838,107
|
155,695,585
|
(125,548,998
|
)
|
1,055,771,959
|
||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||
March 31, 2018
|
||||||||||||||||||||
Revenues from external customers
|
$
|
50,860,529
|
$
|
3,775,745
|
$
|
27,439,835
|
$
|
-
|
$
|
82,076,109
|
||||||||||
Intersegment revenues
|
819,292
|
109,017
|
133,370
|
(1,061,679
|
)
|
-
|
||||||||||||||
Segment profit before income taxes
|
23,711,809
|
860,763
|
(3,385,391
|
)
|
-
|
21,187,181
|
||||||||||||||
Identifiable Assets
|
873,263,596
|
92,747,811
|
163,896,491
|
(134,701,132
|
)
|
995,206,766
|
||||||||||||||
Goodwill
|
2,765,570
|
-
|
-
|
2,765,570
|
||||||||||||||||
Total Assets
|
876,029,166
|
92,747,811
|
163,896,491
|
(134,701,132
|
)
|
997,972,336
|
a)
|
Quoted prices for similar assets or liabilities in active markets;
|
b)
|
Quoted prices for identical or similar assets or liabilities in non-active markets; or
|
c)
|
Valuation models whose inputs are observable, directly or indirectly, for substantially the full
term of the asset or liability.
|
Total
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
Assets accounted for at fair value on a recurring basis
|
||||||||||||||||
Common stock
|
$
|
6,927,352
|
$
|
6,927,352
|
$
|
-
|
$
|
-
|
||||||||
Total equity securities
|
$
|
6,927,352
|
$
|
6,927,352
|
$
|
-
|
$
|
-
|
||||||||
Loans held for sale
|
$
|
123,374,303
|
$
|
-
|
$
|
-
|
$
|
123,374,303
|
||||||||
Restricted assets (1)
|
799,835
|
799,835
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments (1)
|
543,284
|
543,284
|
-
|
-
|
||||||||||||
Derivatives - loan commitments (2)
|
2,849,706
|
-
|
-
|
2,849,706
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
134,494,480
|
$
|
8,270,471
|
$
|
-
|
$
|
126,224,009
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Derivatives - call options (3)
|
$
|
(50,305
|
)
|
$
|
(50,305
|
)
|
$
|
-
|
$
|
-
|
||||||
Derivatives - put options (3)
|
(89,733
|
)
|
(89,733
|
)
|
-
|
-
|
||||||||||
Derivatives - loan commitments (3)
|
(325,363
|
)
|
-
|
-
|
(325,363
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(465,401
|
)
|
$
|
(140,038
|
)
|
$
|
-
|
$
|
(325,363
|
)
|
|||||
_______________________________________________ |
||||||||||||||||
(1) Mutual funds and equity securities
|
||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets
|
||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets
|
Net Loan Commitments
|
Loans Held for Sale
|
|||||||
Balance - December 31, 2018
|
$
|
1,591,816
|
$
|
136,210,853
|
||||
Originations
|
428,500,921
|
|||||||
Sales
|
(456,552,964
|
)
|
||||||
Total gains (losses):
|
||||||||
Included in earnings (1)
|
932,527
|
15,215,493
|
||||||
Balance - March 31, 2019
|
$
|
2,524,343
|
$
|
123,374,303
|
||||
________________________________________ |
||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings
|
Quoted Prices
in Active
Markets for
Identical
Assets
|
Significant
Observable |
Significant
Unobservable |
||||||||||||||
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets accounted for at fair value on a nonrecurring basis
|
||||||||||||||||
Impaired mortgage loans held for investment
|
$
|
711,448
|
$
|
-
|
$
|
-
|
$
|
711,448
|
||||||||
Total assets accounted for at fair value on a nonrecurring basis
|
$
|
711,448
|
$
|
-
|
$
|
-
|
$
|
711,448
|
Total
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
Assets accounted for at fair value on a recurring basis
|
||||||||||||||||
Common stock
|
$
|
5,558,611
|
$
|
5,558,611
|
$
|
-
|
$
|
-
|
||||||||
Total equity securities
|
$
|
5,558,611
|
$
|
5,558,611
|
$
|
-
|
$
|
-
|
||||||||
Loans held for sale
|
$
|
136,210,853
|
$
|
-
|
$
|
-
|
$
|
136,210,853
|
||||||||
Restricted assets (1)
|
744,673
|
744,673
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments (1)
|
483,353
|
483,353
|
-
|
-
|
||||||||||||
Derivatives - loan commitments (2)
|
1,969,967
|
-
|
-
|
1,969,967
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
8,756,604
|
$
|
6,786,637
|
$
|
-
|
$
|
1,969,967
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Derivatives - call options (3)
|
(4,629
|
)
|
(4,629
|
)
|
-
|
-
|
||||||||||
Derivatives - put options (3)
|
(296,053
|
)
|
(296,053
|
)
|
-
|
-
|
||||||||||
Derivatives - loan commitments (3)
|
(378,151
|
)
|
-
|
-
|
(378,151
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(678,833
|
)
|
$
|
(300,682
|
)
|
$
|
-
|
$
|
(378,151
|
)
|
|||||
_________________________________ |
||||||||||||||||
(1) Mutual funds and equity securities
|
||||||||||||||||
(2) Included in other assets on the condensed consolidated balance sheets
|
||||||||||||||||
(3) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets
|
Net Loan Commitments
|
Loans Held
for Sale
|
|||||||
Balance - December 31, 2017
|
$
|
1,996,589
|
$
|
133,414,188
|
||||
Originations
|
2,194,607,543
|
|||||||
Sales
|
(2,259,145,473
|
)
|
||||||
Transfer to mortgage loans held for investment
|
(10,827,797
|
)
|
||||||
Total gains (losses):
|
||||||||
Included in earnings (1)
|
(404,773
|
)
|
78,162,392
|
|||||
Balance - December 31, 2018
|
$
|
1,591,816
|
$
|
136,210,853
|
||||
__________________________________ |
||||||||
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings
|
Quoted Prices
in Active
Markets for Identical Assets
|
Significant
Observable |
Significant
Unobservable
Inputs |
||||||||||||||
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets accounted for at fair value on a
|
||||||||||||||||
nonrecurring basis
|
||||||||||||||||
Impaired mortgage loans held for investment
|
$
|
1,253,302
|
$
|
-
|
$
|
-
|
$
|
1,253,302
|
||||||||
Impaired real estate held for investment
|
1,611,384
|
-
|
-
|
1,611,384
|
||||||||||||
|
||||||||||||||||
Total assets accounted for at fair value on a nonrecurring basis
|
$
|
2,864,686
|
$
|
-
|
$
|
-
|
$
|
2,864,686
|
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total Estimated Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Fixed maturity securities held to maturity
|
$
|
231,378,413
|
$
|
-
|
$
|
235,280,653
|
$
|
4,777,720
|
$
|
240,058,373
|
||||||||||
Mortgage loans held for investment:
|
||||||||||||||||||||
Residential
|
87,260,405
|
-
|
-
|
91,648,513
|
91,648,513
|
|||||||||||||||
Residential construction
|
74,987,143
|
-
|
-
|
74,987,143
|
74,987,143
|
|||||||||||||||
Commercial
|
34,096,808
|
-
|
-
|
34,884,705
|
34,884,705
|
|||||||||||||||
Mortgage loans held for investment, net
|
$
|
196,344,356
|
$
|
-
|
$
|
-
|
$
|
201,520,361
|
$
|
201,520,361
|
||||||||||
Policy loans
|
6,354,430
|
-
|
-
|
6,354,430
|
6,354,430
|
|||||||||||||||
Insurance assignments, net (1)
|
37,560,276
|
-
|
-
|
37,560,276
|
37,560,276
|
|||||||||||||||
Restricted assets (2)
|
1,262,819
|
-
|
1,279,342
|
-
|
1,279,342
|
|||||||||||||||
Restricted assets (3)
|
1,964,168
|
-
|
-
|
1,969,979
|
1,969,979
|
|||||||||||||||
Cemetery perpetual care trust investments (2)
|
999,907
|
-
|
1,010,578
|
-
|
1,010,578
|
|||||||||||||||
Mortgage servicing rights, net
|
19,049,013
|
-
|
-
|
26,133,155
|
26,133,155
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(175,090,614
|
)
|
$
|
-
|
$
|
-
|
$
|
(175,090,614
|
)
|
$
|
(175,090,614
|
)
|
|||||||
Policyholder account balances (4)
|
(46,019,974
|
)
|
-
|
-
|
(36,999,896
|
)
|
(36,999,896
|
)
|
||||||||||||
Future policy benefits - annuities (4)
|
(97,583,996
|
)
|
-
|
-
|
(97,207,710
|
)
|
(97,207,710
|
)
|
||||||||||||
______________________________ |
||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet.
|
||||||||||||||||||||
(2) Fixed maturity securities held to maturity
|
||||||||||||||||||||
(3) Mortgage loans held for investment
|
||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet.
|
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total Estimate
Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Fixed maturity securities held to maturity
|
$
|
232,078,723
|
$
|
-
|
$
|
229,668,844
|
$
|
5,082,014
|
$
|
234,750,858
|
||||||||||
Mortgage loans held for investment:
|
||||||||||||||||||||
Residential
|
87,947,566
|
-
|
-
|
92,503,553
|
92,503,553
|
|||||||||||||||
Residential construction
|
70,886,702
|
-
|
-
|
70,886,702
|
70,886,702
|
|||||||||||||||
Commercial
|
27,630,801
|
-
|
-
|
28,359,205
|
28,359,205
|
|||||||||||||||
Mortgage loans held for investment, net
|
$
|
186,465,069
|
$
|
-
|
$
|
-
|
$
|
191,749,460
|
$
|
191,749,460
|
||||||||||
Policy loans
|
6,424,325
|
-
|
-
|
6,424,325
|
6,424,325
|
|||||||||||||||
Insurance assignments, net (1)
|
34,146,868
|
-
|
-
|
34,146,868
|
34,146,868
|
|||||||||||||||
Restricted assets (2)
|
1,258,397
|
-
|
1,271,687
|
-
|
1,271,687
|
|||||||||||||||
Restricted assets (3)
|
1,799,268
|
-
|
-
|
1,810,185
|
1,810,185
|
|||||||||||||||
Cemetery perpetual care trust investments (2)
|
990,390
|
-
|
983,410
|
-
|
983,410
|
|||||||||||||||
Mortgage servicing rights, net
|
20,016,822
|
-
|
-
|
28,885,316
|
28,885,316
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(187,521,188
|
)
|
$
|
-
|
$
|
-
|
$
|
(187,521,188
|
)
|
$
|
(187,521,188
|
)
|
|||||||
Policyholder account balances (4)
|
(46,479,853
|
)
|
-
|
-
|
(37,348,289
|
)
|
(37,348,289
|
)
|
||||||||||||
Future policy benefits - annuities (4)
|
(98,137,615
|
)
|
-
|
-
|
(97,641,146
|
)
|
(97,641,146
|
)
|
||||||||||||
______________________________ | ||||||||||||||||||||
(1) Included in other investments and policy loans on the condensed consolidated balance sheet.
|
||||||||||||||||||||
(2) Fixed maturity securities held to maturity
|
||||||||||||||||||||
(3) Participation in mortgage loans held for investment (commercial)
|
||||||||||||||||||||
(4) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheet.
|
Fair Values and Notional Values of Derivative Instruments | |||||||||||||||||||||||||
March 31, 2019
|
December 31, 2018
|
||||||||||||||||||||||||
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
|
$
|
179,148,085
|
$
|
2,849,706
|
$
|
325,363
|
$
|
93,758,218
|
$
|
1,969,967
|
$
|
378,151
|
||||||||||||
Call options
|
Other liabilities
|
1,881,800
|
--
|
50,305
|
805,500
|
--
|
4,629
|
||||||||||||||||||
Put options
|
Other liabilities
|
3,218,200
|
--
|
89,733
|
4,861,700
|
--
|
296,053
|
||||||||||||||||||
Total
|
$
|
184,248,085
|
$
|
2,849,706
|
$
|
465,401
|
$
|
99,425,418
|
$
|
1,969,967
|
$
|
678,833
|
Net Amount Gain (Loss)
|
|||||||||
Three Months Ended
March 31
|
|||||||||
Derivative
|
Classification
|
2019
|
2018
|
||||||
Loan commitments
|
Mortgage fee income
|
$
|
932,527
|
$
|
440,958
|
||||
Call and put options
|
Gains on investments and other assets
|
$
|
290,028
|
$
|
79,171
|
As of
March 31
2019 |
As of
December 31
2018 |
|||||||
Amortized cost:
|
||||||||
Balance before valuation allowance at beginning of year
|
$
|
20,016,822
|
$
|
21,376,937
|
||||
MSR additions resulting from loan sales
|
275,533
|
3,922,816
|
||||||
Amortization (1)
|
(1,243,342
|
)
|
(5,282,931
|
)
|
||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance before valuation allowance at end of period
|
$
|
19,049,013
|
$
|
20,016,822
|
||||
Valuation allowance for impairment of MSRs:
|
||||||||
Balance at beginning of year
|
$
|
-
|
$
|
-
|
||||
Additions
|
-
|
-
|
||||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance at end of period
|
$
|
-
|
$
|
-
|
||||
Mortgage servicing rights, net
|
$
|
19,049,013
|
$
|
20,016,822
|
||||
Estimated fair value of MSRs at end of period
|
$
|
26,133,155
|
$
|
28,885,316
|
||||
_________________________ |
||||||||
(1) Included in other expenses on the condensed consolidated statements of earnings
|
Estimated MSR Amortization
|
||||
2019
|
2,117,384
|
|||
2020
|
2,437,671
|
|||
2021
|
2,103,851
|
|||
2022
|
1,802,199
|
|||
2023
|
1,551,340
|
|||
Thereafter
|
9,036,568
|
|||
Total
|
$
|
19,049,013
|
Three Months Ended
March 31 |
||||||||
2019
|
2018
|
|||||||
Contractual servicing fees
|
$
|
1,858,599
|
$
|
1,876,883
|
||||
Late fees
|
87,291
|
111,748
|
||||||
Total
|
$
|
1,945,890
|
$
|
1,988,631
|
As of
March 31
2019
|
As of
December 31
2018
|
|||||||
Servicing UPB
|
$
|
2,902,805,249
|
$
|
2,941,231,563
|
Prepayment
Speeds |
Average
Life (Years) |
Discount
Rate |
||||||||||
March 31, 2019
|
3.54
|
%
|
5.8
|
9.51
|
||||||||
December 31, 2018
|
3.86
|
%
|
6.33
|
9.51
|
Contract Balances
|
||||||||||||
Receivables (1)
|
Contract Asset
|
Contract Liability
|
||||||||||
Opening (1/1/2019)
|
$
|
2,816,225
|
$
|
-
|
$
|
12,508,625
|
||||||
Closing (3/31/2019)
|
2,913,958
|
-
|
12,650,552
|
|||||||||
Increase/(decrease)
|
97,733
|
-
|
141,927
|
|||||||||
_______________________ |
||||||||||||
(1) Included in Receivables, net on the condensed consolidated balance sheets
|
Three Months Ended
March 31 |
||||||||
2019
|
2018
|
|||||||
Major
goods/service lines
|
||||||||
At-need
|
$
|
2,969,067
|
$
|
2,737,625
|
||||
Pre-need
|
709,561
|
495,104
|
||||||
$
|
3,678,628
|
$
|
3,232,729
|
|||||
Timing of Revenue
Recognition
|
||||||||
Goods transferred at a point in time
|
$
|
2,390,609
|
$
|
2,072,481
|
||||
Services transferred at a point in time
|
1,288,019
|
1,160,248
|
||||||
$
|
3,678,628
|
$
|
3,232,729
|
Three Months Ended
March 31 |
||||||||
2019
|
2018
|
|||||||
Net mortuary and cemetery sales
|
$
|
3,678,628
|
$
|
3,232,729
|
||||
Gains on investments and other assets
|
498,597
|
409,088
|
||||||
Net investment income
|
112,809
|
88,078
|
||||||
Other revenues
|
69,251
|
45,850
|
||||||
Revenues from external customers
|
4,359,285
|
3,775,745
|
Cash
|
$
|
53,859
|
||
Property and equipment
|
2,475,526
|
|||
Receivables
|
13,620
|
|||
Goodwill
|
750,745
|
|||
Other
|
25,073
|
|||
Total assets acquired
|
3,318,823
|
|||
Bank and other loans payable
|
(3,176
|
)
|
||
Total liabilities assumed
|
(3,176
|
)
|
||
Fair value of net assets acquired/consideration paid
|
$
|
3,315,647
|
Other investments - insurance assignments
|
$
|
2,515,783
|
||
Other - customer list intangible asset
|
890,000
|
|||
Total assets acquired
|
3,405,783
|
|||
Fair value of net assets acquired/consideration paid
|
$
|
3,405,783
|
Three Months Ended
March 31 |
||||
2019
|
||||
Lease Cost
|
||||
Finance lease cost:
|
||||
Amortization of right-of-use assets (1)
|
$
|
32,835
|
||
Interest on lease liabilities (2)
|
1,873
|
|||
Operating lease cost (3)
|
1,532,256
|
|||
Short-term lease cost (3)(4)
|
40,676
|
|||
Variable lease cost
|
-
|
|||
Sublease income (3)
|
(167,071
|
)
|
||
Total lease cost
|
$
|
1,440,569
|
||
Other Information
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||
Operating cash flows from operating leases
|
$
|
1,472,852
|
||
Operating cash flows from finance leases
|
1,873
|
|||
Financing cash flows from finance leases
|
32,290
|
|||
Right-of-use assets obtained in exchange for lease liabilities:
|
||||
Operating leases
|
$
|
11,931,889
|
||
Finance leases
|
238,336
|
|||
Weighted-average remaining lease term (in years)
|
||||
Finance leases
|
3.30
|
|||
Operating leases
|
4.53
|
|||
Weighted-average discount rate
|
||||
Finance leases
|
5.14
|
%
|
||
Operating leases
|
4.88
|
%
|
||
________________________________ |
||||
(1) Included in Depreciation on property and equipment on the condensed consolidated statements of earnings
|
||||
(2) Included in Interest expense on the condensed consolidated statements of earnings
|
||||
(3) Included in Rent and rent related expenses on the condensed consolidated statements of earnings
|
||||
(4) Includes leases with a term of 12 months or less
|
Maturity Analysis of Lease Liabilities
|
||||||||
Finance
Leases
|
Operating
Leases |
|||||||
Lease payments due in:
|
||||||||
Remainder of 2019
|
$
|
71,007
|
$
|
3,978,317
|
||||
2020
|
62,357
|
3,401,717
|
||||||
2021
|
41,235
|
1,841,369
|
||||||
2022
|
27,474
|
806,858
|
||||||
2023
|
22,566
|
686,698
|
||||||
Thereafter
|
1,156
|
2,339,369
|
||||||
Total undiscounted lease payments
|
225,795
|
13,054,328
|
||||||
Less: Discount on cash flows
|
(19,749
|
)
|
(2,504,322
|
)
|
||||
Present value of lease liabilities
|
206,046
|
10,550,006
|
Balance Sheet Location |
As of
March 31
2019
|
||||
Operating Leases
|
|||||
Right-of-use assets
|
Other assets
|
$
|
10,494,641
|
||
Lease liabilities
|
Other liabilities and accrued expenses
|
$
|
10,550,006
|
||
Finance Leases
|
|||||
Right-of-use assets
|
$
|
238,336
|
|||
Accumulated amortization
|
(32,835
|
)
|
|||
Right-of-use assets, net
|
Property and equipment, net
|
$
|
205,501
|
||
Lease liabilities
|
Bank and other loans payable
|
$
|
206,046
|
Three months ended March 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
% Increase
(Decrease)
|
||||||||||
Revenues from external customers
|
||||||||||||
Insurance premiums
|
$
|
19,027
|
$
|
18,810
|
1
|
%
|
||||||
Net investment income
|
9,753
|
9,778
|
0
|
%
|
||||||||
Gains on investments and other assets
|
1,343
|
21,860
|
(94
|
%)
|
||||||||
Other
|
382
|
412
|
(7
|
%)
|
||||||||
Total
|
$
|
30,505
|
$
|
50,860
|
(40
|
%)
|
||||||
Intersegment revenue
|
$
|
895
|
$
|
819
|
9
|
%
|
||||||
Earnings before income taxes
|
$
|
2,085
|
$
|
23,712
|
(91
|
%)
|
Three months ended March 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
% Increase
(Decrease)
|
||||||||||
Revenues from external customers
|
||||||||||||
Mortuary revenues
|
$
|
1,633
|
$
|
1,391
|
17
|
%
|
||||||
Cemetery revenues
|
2,046
|
1,842
|
11
|
%
|
||||||||
Net investment income
|
113
|
88
|
28
|
%
|
||||||||
Gains on investments and other assets
|
498
|
409
|
22
|
%
|
||||||||
Other
|
69
|
46
|
50
|
%
|
||||||||
Total
|
$
|
4,359
|
$
|
3,776
|
15
|
%
|
||||||
Earnings before income taxes
|
$
|
1,185
|
$
|
861
|
38
|
%
|
Three months ended March 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
% Increase
(Decrease)
|
||||||||||
Revenues from external customers
|
||||||||||||
Income from loan originations
|
$
|
8,114
|
$
|
9,882
|
(18
|
%)
|
||||||
Secondary gains from investors
|
16,365
|
15,578
|
5
|
%
|
||||||||
Net investment income
|
176
|
208
|
(15
|
%)
|
||||||||
Gains on investments and other assets
|
(35
|
)
|
(248
|
)
|
86
|
%
|
||||||
Other
|
2,009
|
2,019
|
0
|
%
|
||||||||
Total
|
$
|
26,629
|
$
|
27,439
|
(3
|
%)
|
||||||
Earnings before income taxes
|
$
|
(838
|
)
|
$
|
(3,385
|
)
|
75
|
%
|
Period
|
(a) Total
Number of
Class A Shares Purchased
|
(b) Average
Price Paid
per Class A
Share
|
(c) Total
Number of
Class A
Shares
Purchased
as Part of
Publicly
Announced
Plan or
Program
|
(d) Maximum
Number (or Approximate
Dollar Value)
of Class A Shares that
May Yet Be
Purchased
Under the
Plan or
Program
|
||||||||||||
1/1/2019-1/31/2019
|
10,080
|
$
|
5.40
|
-
|
251,220
|
|||||||||||
2/1/2019-2/28/2019
|
10,000
|
5.44
|
-
|
241,220
|
||||||||||||
3/1/2019-3/31/2019
|
600
|
5.11
|
-
|
240,620
|
||||||||||||
Total
|
20,680
|
$
|
5.40
|
-
|
240,620
|
(a)(1)
|
Financial Statements
|
See “Table of Contents – Part I – Financial Information” under page 2 above
|
|
(a)(2)
|
Financial Statement Schedules
|
None
|
|
|
All other schedules to the consolidated financial statements required by Article 7 of Regulation S‑X are not required under the related instructions or are inapplicable and therefore have been omitted. |
(a)(3)
|
Exhibits
|
The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S‑K or are incorporated by reference
to previous filings.
|
3.1
|
|
3.2
|
|
4.1
|
Specimen Class A Stock Certificate (1)
|
4.2
|
Specimen Class C Stock Certificate (1)
|
4.3
|
Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1)
|
10.1
|
Amended and Restated Employee Stock Ownership Plan (ESOP) and Trust Agreement (1)
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
14
|
|
21
|
|
23.1
|
|
23.2
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.xml
|
Instance Document
|
101.xsd
|
Taxonomy Extension Schema Document
|
101.cal
|
Taxonomy Extension Calculation Linkbase Document
|
101.def
|
Taxonomy Extension Definition Linkbase Document
|
101.lab
|
Taxonomy Extension Label Linkbase Document
|
101.pre
|
Taxonomy Extension Presentation Linkbase Document
|
(1)
|
Incorporated by reference from Registration Statement on Form S‑1, as filed on September 29, 1987
|
(2)
|
Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016
|
(3)
|
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September 2, 2014, related to
Company’s Annual Meeting of Stockholders
|
(4)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 15, 2015
|
(5)
|
Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015
|
Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017
|
|
(7)
|
Incorporated by reference from Report on Form 8-K, as filed on June 6, 2018
|
(8)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2018
|
(9)
|
Incorporated by reference from Report on Form 8-K, as filed on February 28, 2019
|
Dated: May 15, 2019
|
/s/ Scott M. Quist
|
|
Scott M. Quist
|
||
Chairman, President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
Dated: May 15, 2019
|
/s/ Garrett S. Sill
|
|
Garrett S. Sill
|
||
Chief Financial Officer and Treasurer
|
||
(Principal Financial Officer and Principal Accounting Officer)
|
1.
|
Scope of Code
|
·
|
Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships;
|
·
|
Full, accurate, timely, and understandable disclosure in reports and documents the Company prepares and in other
communications made by the Company;
|
·
|
Compliance with applicable governmental laws, rules, and regulations;
|
·
|
The prompt internal reporting of violations of this Code to the appropriate person or persons identified in this Code;
|
·
|
Accountability for adherence to this Code; and
|
·
|
Adherence to a high standard of business ethics.
|
·
|
Any significant ownership interest in any supplier or customer;
|
·
|
Any consulting or employment relationship with any customer, supplier, or competitor;
|
·
|
Any outside business activity that detracts from an individual’s ability to devote appropriate time or attention
to such individual’s responsibilities to the Company;
|
·
|
The receipt of non-minimal gifts or excessive entertainment from any organization with which the Company has
current or prospective business dealings; and
|
·
|
Selling anything to the Company or buying anything from the Company, except on the same terms and conditions as
comparable directors, officers, or employees are permitted to so purchase or sell.
|
·
|
Never offer or accept a bribe; that is, anything designed to influence a person’s judgment:
|
·
|
Never offer or accept cash or cash equivalents;
|
·
|
Never participate in any business entertainment activity that would violate the law or embarrass the Company by
its public disclosure;
|
·
|
Please consult with the Company’s Senior General Counsel before offering anything of value to government or
political party officials, as such gifts and entertainment are strictly regulated and often forbidden entirely;
|
·
|
Do not seek or accept, directly or indirectly, any favors, such as gifts of more than nominal value,
entertainment, sponsorships, or contributions, from organizations doing business or seeking to do business with the Company.
|
·
|
Meets the requirements of this Code of Business Conduct and Ethics;
|
·
|
Does not exceed generally accepted local business practices;
|
·
|
Is of nominal value;
|
·
|
Cannot be viewed as a bribe, payoff or kickback;
|
·
|
Does not violate applicable law, the Company’s policies or guidelines; and
|
·
|
Is not solicited.
|
(a)
|
The CEO, CFO and all senior financial officers are responsible for full, fair, accurate, timely and
understandable disclosure in the periodic reports required to be filed by the Company with the U.S. Securities and Exchange Commission and in other public communications.
|
(b)
|
The CEO, CFO and each senior financial officer shall promptly bring to the attention of the Audit Committee any
information he or she may have concerning (i) significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarize, and report financial data or (ii) any
fraud, whether or not material, that involves management or other employees who have a significant role in the Company's financial reporting, disclosures, or internal controls.
|
(c)
|
The CEO, CFO and each senior financial officer shall promptly bring to the attention of the Audit Committee any
information he or she may have concerning any violation of the Company's Code of Business Conduct and Ethics, including any actual or apparent conflicts of interest between personal and professional relationships, involving any management
or other employees who have a significant role in the Company's financial reporting, disclosures or internal controls.
|
(d)
|
The CEO, CFO and each senior financial officer shall promptly bring to the attention of the Audit Committee any
information he or she may have concerning evidence of a material violation of the securities or other laws, rules or regulations applicable to the Company and the operation of its business by the Company or any agent thereof.
|
5300 Development LLC
|
Affordable Funerals and Cremations of America, Inc.
|
American Funeral Financial, LLC
|
Beta Capital Corp.
|
C & J Financial, LLC
|
California Memorial Estates, Inc.
|
Canadian Funeral Financial, LLC
|
Cottonwood Mortuary, Inc.
|
Deseret Memorial, Inc.
|
Dry Creek Property Development, Inc.
|
EverLEND Mortgage Company
|
FFC Acquisition Co., LLC dba Funeral Funding Center
|
First Guaranty Insurance Company
|
Greer-Wilson Funeral Home, Inc.
|
Holladay Cottonwood Memorial Foundation
|
Holladay Memorial Park, Inc.
|
Insuradyne Corporation
|
Marketing Source Center, Inc. dba Security National Travel Services
|
Memorial Estates, Inc.
|
Memorial Insurance Company of America
|
Memorial Mortuary, Inc.
|
Mortician's Choice, LLC
|
New York Land Holdings, Inc.
|
Paradise Chapel Funeral Home
|
Reppond Holding Company
|
Security National Funding Company
|
Security National Life Insurance Company
|
Security National Real Estate Services, Inc. also dba Security National Commercial Capital
|
SecurityNational Mortgage Company
|
Select Appraisal Management, Inc.
|
SN Diamond LLC
|
SN Farmington LLC
|
SN Mapleton, LLC
|
SN Midway, LLC
|
SN Nevada LLC
|
SN Probst LLC
|
SN Shadow Cliffs, LLC
|
SNFC Subsidiary, LLC
|
Southern Security Life Insurance Company, Inc.
|
Trans-Western Life Insurance Company
|
Dated: May 15, 2019
|
/s/ Scott M. Quist
|
Scott M. Quist
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
Dated: May 15, 2019
|
/s/ Garrett S. Sill
|
Garrett S. Sill
|
|
Chief Financial Officer and
Treasurer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
(1) |
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: May 15, 2019
|
/s/ Scott M. Quist
|
Scott M. Quist
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
(1) |
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: May 15, 2019
|
/s/ Garrett S. Sill
|
Garrett S. Sill
|
|
Chief Financial Officer and
Treasurer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|