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)
|
Registrant's telephone number, including area code:
|
(801) 264-1060
|
Title of each class
|
Name of each exchange on which registered
|
Class A common stock, $2.00 Par Value
|
NASDAQ National Market
|
Class C common stock, $2.00 Par Value
|
None
|
Large accelerated filer [ ]
|
Accelerated filer [ ]
|
Nonaccelerated filer [ ]
|
Smaller reporting company [X]
|
(Do not check if a smaller reporting company) |
Page | ||
Part I
|
||
Item 1.
|
Business
|
3
|
Item 2.
|
Properties
|
10
|
Item 3.
|
Legal Proceedings
|
13
|
Item 4.
|
Mine Safety Disclosures
|
15
|
Part II
|
||
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
15
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Item 6.
|
Selected Financial Data
|
17
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Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
18
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Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
32
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Item 8.
|
Financial Statements and Supplementary Data
|
32
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
102
|
Item 9A.
|
Controls and Procedures
|
102
|
Item 9B.
|
Other Information
|
103
|
Part III
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
104
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Item 11.
|
Executive Compensation
|
109
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Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
120 |
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
120
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Item 14.
|
Principal Accounting Fees and Services
|
121
|
Part IV
|
||
Item 15.
|
Exhibits, Financial Statement Schedules
|
121
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||||||
Life Insurance | ||||||||||||||||||||||||
Policy/Cert Count as of December 31
|
531,775
|
(2
|
)
|
509,058
|
497,933
|
498,228
|
502,978
|
(1
|
)
|
|||||||||||||||
Insurance in force as of December 31 (omitted 000)
|
$
|
1,672,081
|
(2
|
)
|
$
|
2,862,803
|
$
|
2,763,496
|
$
|
2,828,470
|
$
|
2,913,419
|
(1
|
)
|
||||||||||
Premiums Collected (omitted 000)
|
$
|
65,220
|
(2
|
)
|
$
|
55,780
|
$
|
52,418
|
$
|
50,009
|
$
|
48,168
|
(1)
|
Includes coinsurance with Mothe Life Insurance Company and DLE Life Insurance Company.
|
(2)
|
Includes the acquisition of First Guaranty Insurance Company and the termination of the reinsurance assumed for Servicemembers' Group Life Insurance ("SGLI").
|
Age Nearest
|
Non‑Medical
|
|||
Birthday
|
Limits
|
|||
0‑50
|
$
|
100,000
|
||
51‑up
|
Medical information required (APS or exam)
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||||
Annuities Policy/Cert Count as of December 31
|
21,364
|
(1
|
)
|
12,022
|
12,701
|
12,703
|
12,320
|
|||||||||||||||
Deposits Collected (omitted 000)
|
$
|
11,019
|
(1
|
)
|
$
|
8,069
|
$
|
8,010
|
$
|
7,281
|
$
|
6,777
|
(1)
|
Includes the acquisition of First Guaranty Insurance Company.
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Accident and Health Policy/Cert Count as of December 31
|
4,761
|
5,185
|
5,838
|
6,451
|
7,291
|
|||||||||||||||
Premiums Collected (omitted 000)
|
$
|
113
|
$
|
119
|
$
|
133
|
$
|
144
|
$
|
158
|
City
|
State
|
Function
|
Owned Leased
|
Approximate
Square
Footage
|
Lease
Amount |
Expiration
|
||||||||||||||
5300 S. 360 W. |
Salt Lake City
|
UT
|
Corporate Headquarters
|
Owned
|
36,000
|
N/A
|
||||||||||||||
5201 S. Green Street
|
Salt Lake City
|
UT
|
Mortgage Operations
|
Owned
|
36,899
|
N/A
|
||||||||||||||
1044 River Oaks Dr.
|
Flowood
|
MS
|
Insurance Operations
|
Owned
|
21,521
|
N/A
|
||||||||||||||
5239 Greenpine Dr.
|
Murray
|
UT
|
Funeral Service Operations
|
Owned
|
1,642
|
N/A
|
||||||||||||||
351 N. 3rd St.
|
Ashdown
|
AR
|
Insurance Operations
|
Leased
|
4,200
|
$
|
1,757
|
/
|
mo
|
7/12/2017
|
||||||||||
497-A Sutton Bridge Rd.
|
Rainbow City
|
AL
|
Fast Funding Operations
|
Leased
|
5,500
|
$
|
33,600
|
/
|
yr
|
6/30/2018
|
||||||||||
9700 Stirling Rd., Suite 110
|
Cooper City
|
FL
|
Fast Funding Operations
|
Leased
|
1,018
|
$
|
63,600
|
/
|
yr
|
month to month
|
||||||||||
3515 Pelham Rd., Suite 200
|
Greenville
|
SC
|
Fast Funding Operations
|
Leased
|
4,000
|
$
|
4,643
|
/
|
mo
|
5/31/2018
|
||||||||||
2567 Mall Rd.
|
Florence
|
AL
|
Mortgage Sales
|
Sub-Leased
|
1,600
|
$
|
750
|
/
|
mo
|
month to month
|
||||||||||
16427 North Scottsdale Road
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
3,966
|
$
|
10,246
|
/
|
mo
|
2/29/2020
|
||||||||||
17015 N. Scottsdale Rd., Suite 125
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
6,070
|
$
|
13,025
|
/
|
mo
|
3/31/2017
|
||||||||||
17015 N. Scottsdale Rd., Suite 210
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
2,906
|
$
|
6,054
|
/
|
mo
|
3/31/2017
|
||||||||||
17015 N. Scottsdale Rd., Suite 340
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
1,900
|
$
|
3,958
|
/
|
mo
|
1/31/2019
|
||||||||||
8600 East Anderson Drive, Suite 240
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
3,756
|
$
|
8,138
|
/
|
mo
|
10/31/2019
|
||||||||||
1819 S. Dobson
|
Mesa
|
AZ
|
Mortgage Sales
|
Leased
|
2,397
|
$
|
1,381
|
/
|
mo
|
4/30/2017
|
||||||||||
5701 Talavi Blvd. Suite 155
|
Glendale
|
AZ
|
Mortgage Sales
|
Leased
|
2,214
|
$
|
4,428
|
/
|
mo
|
month to month
|
||||||||||
6751 N. Sunset Blvd.
|
Glendale
|
AZ
|
Mortgage Sales
|
Leased
|
3,431
|
$
|
6,576
|
/
|
mo
|
6/30/2018
|
||||||||||
2450 S. Gilbert Rd.
|
Chandler
|
AZ
|
Mortgage Sales
|
Leased
|
6,306
|
$
|
10,247
|
/
|
mo
|
2/28/2019
|
||||||||||
3100 W. Ray Rd.
|
Chandler
|
AZ
|
Mortgage Sales
|
Leased
|
1,000
|
$
|
949
|
/
|
mo
|
month to month
|
||||||||||
3435 South Demaree
|
Visalia
|
CA
|
Mortgage Sales
|
Leased
|
1,740
|
$
|
2,175
|
/
|
mo
|
4/30/2019
|
||||||||||
2333 San Ramon Vallue Blvd.
|
San Ramon
|
CA
|
Mortgage Sales
|
Leased
|
1,563
|
$
|
3,908
|
/
|
mo
|
5/30/2019
|
||||||||||
923 East Valley Blvd.
|
San Gabriel
|
CA
|
Mortgage Sales
|
Leased
|
820
|
$
|
1,400
|
/
|
mo
|
8/31/2017
|
||||||||||
3005 Douglas Blvd., Suite 100
|
Roseville
|
CA
|
Mortgage Sales
|
Leased
|
3,722
|
$
|
7,406
|
/
|
mo
|
4/14/2018
|
||||||||||
140 Gregory Lane
|
Pleasant Hill
|
CA
|
Mortgage Sales
|
Leased
|
3,125
|
$
|
3,244
|
/
|
mo
|
1/31/2019
|
||||||||||
140 Lake Ave., Suite 305
|
Pasadena
|
CA
|
Mortgage Sales
|
Leased
|
1,105
|
$
|
3,244
|
/
|
mo
|
3/31/2017
|
||||||||||
765 The City Dr., Suite 360
|
Orange
|
CA
|
Mortgage Sales
|
Leased
|
3,886
|
$
|
8,451
|
/
|
mo
|
8/31/2017
|
||||||||||
18625 Suter Blvd., Suite 300
|
Morgan Hill
|
CA
|
Mortgage Sales
|
Leased
|
2,255
|
$
|
2,660
|
/
|
mo
|
6/30/2018
|
||||||||||
750 University Ave.
|
Los Gatos
|
CA
|
Mortgage Sales
|
Leased
|
2,137
|
$
|
9,018
|
/
|
mo
|
4/30/2018
|
||||||||||
3643 East 4th Street, Suite A
|
Long Beach
|
CA
|
Mortgage Sales
|
Leased
|
1,250
|
$
|
2,060
|
/
|
mo
|
10/31/2017
|
||||||||||
3908 Hathaway Ave.
|
Long Beach
|
CA
|
Mortgage Sales
|
Leased
|
200
|
$
|
100
|
/
|
mo
|
month to month
|
||||||||||
13191 Crossroads Parkway
|
City of Ind.
|
CA
|
Mortgage Sales
|
Leased
|
2,569
|
$
|
5,954
|
/
|
mo
|
7/31/2020
|
||||||||||
5650 El Camino Real
|
Carlsbad
|
CA
|
Mortgage Sales
|
Leased
|
1,739
|
$
|
2,956
|
/
|
mo
|
10/31/2017
|
||||||||||
7100 E. Bellview Ave., Suite 301
|
Greenwood Village
|
CO
|
Mortgage Sales
|
Leased
|
2,549
|
$
|
2,929
|
/
|
mo
|
month to month
|
||||||||||
8480 E. Orchard Rd.
|
Greenwood Village
|
CO
|
Mortgage Sales
|
Leased
|
4,631
|
$
|
9,647
|
/
|
mo
|
2/28/2018
|
||||||||||
1120 West 122nd Ave.
|
Denver
|
CO
|
Mortgage Sales
|
Leased
|
5,238
|
$
|
5,250
|
/
|
mo
|
10/31/2021
|
||||||||||
14502 N. Dale Mabry Highway
|
Tampa
|
FL
|
Mortgage Sales
|
Leased
|
250
|
$
|
550
|
/
|
mo
|
month to month
|
||||||||||
4023 Armenia Ave.
|
Tampa
|
FL
|
Mortgage Sales
|
Leased
|
1,563
|
$
|
1,865
|
/
|
mo
|
4/30/2019
|
||||||||||
35190 US Highway N.
|
Palm
|
FL
|
Mortgage Sales
|
Leased
|
1,982
|
$
|
2,945
|
/
|
mo
|
2/28/2018
|
||||||||||
17 N. Summerlin Ave.
|
Orlando
|
FL
|
Mortgage Sales
|
Leased
|
1,400
|
$
|
3,328
|
/
|
mo
|
11/30/2018
|
||||||||||
5222 Andrus Ave.
|
Orlando
|
FL
|
Mortgage Sales
|
Leased
|
1,450
|
$
|
1,716
|
/
|
mo
|
12/31/2017
|
||||||||||
7575 Dr. Phillips Blvd., Suite 270
|
Orlando
|
FL
|
Mortgage Sales
|
Leased
|
1,844
|
$
|
5,292
|
/
|
mo
|
3/31/2018
|
||||||||||
3689 Tampa Rd.
|
Oldsmar
|
FL
|
Mortgage Sales
|
Leased
|
5,620
|
$
|
6,720
|
/
|
mo
|
3/31/2018
|
||||||||||
4947 Tamiami Trail N.
|
Naples
|
FL
|
Mortgage Sales
|
Leased
|
1,168
|
$
|
1,303
|
/
|
mo
|
11/30/2018
|
||||||||||
4732 US Highway 98 North
|
Lakeland
|
FL
|
Mortgage Sales
|
Leased
|
1,250
|
$
|
1,070
|
/
|
mo
|
5/30/2017
|
||||||||||
1145 TownPark Ave., Suite 2215
|
Lake Mary
|
FL
|
Mortgage Sales
|
Leased
|
9,390
|
$
|
14,775
|
/
|
mo
|
3/1/2020
|
||||||||||
1525 International Parkway
|
Lake Mary
|
FL
|
Mortgage Sales
|
Leased
|
2,862
|
$
|
5,128
|
/
|
mo
|
10/31/2019
|
||||||||||
4575 Via Royal, Suite 100
|
Ft Myers
|
FL
|
Mortgage Sales
|
Sub-Leased
|
2,631
|
$
|
500
|
/
|
mo
|
month to month
|
||||||||||
2500 N. Military Trail
|
Boca Raton
|
FL
|
Mortgage Sales
|
Leased
|
2,453
|
$
|
4,500
|
/
|
mo
|
7/14/2017
|
||||||||||
3030 McEver Rd.
|
Gainsville
|
GA
|
Mortgage Sales
|
Leased
|
300
|
$
|
839
|
/
|
mo
|
month to month
|
||||||||||
2250 Satellite Blvd.
|
Duluth
|
GA
|
Mortgage Sales
|
Leased
|
1,380
|
$
|
1,553
|
/
|
mo
|
1/31/2017
|
||||||||||
4520 Kuhui St.
|
Kapaa
|
HI
|
Mortgage Sales
|
Leased
|
750
|
$
|
1,025
|
/
|
mo
|
month to month
|
||||||||||
12 W. Main St.
|
Rexburg
|
ID
|
Mortgage Sales
|
Leased
|
800
|
$
|
800
|
/
|
mo
|
9/30/2017
|
||||||||||
9042 W. Barnes Dr.
|
Boise
|
ID
|
Mortgage Sales
|
Leased
|
1,568
|
$
|
2,090
|
/
|
mo
|
10/31/2018
|
||||||||||
7227 West Madison St.
|
Forest Park
|
IL
|
Mortgage Sales
|
Leased
|
1,800
|
$
|
2,100
|
/
|
mo
|
6/30/2017
|
||||||||||
30700 Telegraph Rd.
|
Bingham Farms
|
MI
|
Mortgage Sales
|
Leased
|
1,099
|
$
|
1,374
|
/
|
mo
|
3/31/2019
|
||||||||||
108 Sikes Place
|
Charlotte
|
NC
|
Mortgage Sales
|
Leased
|
275
|
$
|
875
|
/
|
mo
|
2/28/2017
|
||||||||||
10765 Double R Blvd.
|
Reno
|
NV
|
Mortgage Sales
|
Leased
|
4,214
|
$
|
8,639
|
/
|
mo
|
10/31/2021
|
||||||||||
1980 Festival Plaza Dr.
|
Las Vegas
|
NV
|
Mortgage Sales
|
Leased
|
12,866
|
$
|
39,884
|
/
|
mo
|
5/31/2021
|
||||||||||
4000 S. Eastern Ave., Suite 310
|
Las Vegas
|
NV
|
Mortgage Sales
|
Leased
|
2,750
|
$
|
54,450
|
/
|
yr
|
1/31/2020
|
||||||||||
6130 Elton Ave., Suite 223
|
Las Vegas
|
NV
|
Mortgage Sales
|
Leased
|
125
|
$
|
400
|
/
|
mo
|
month to month
|
||||||||||
9330 W. Sahara Ave., Suite 270
|
Las Vegas
|
NV
|
Mortgage Sales
|
Leased
|
2,681
|
$
|
4,101
|
/
|
mo
|
8/31/2018
|
||||||||||
2370 Corporate Circle, Suite 200
|
Henderson
|
NV
|
Mortgage Sales
|
Leased
|
10,261
|
$
|
184,855
|
/
|
yr
|
4/30/2020
|
||||||||||
1160 State Route 28
|
Millford
|
OH
|
Mortgage Sales
|
Leased
|
300
|
$
|
550
|
/
|
mo
|
month to month
|
||||||||||
999 Polaris Parkway
|
Columbus
|
OH
|
Mortgage Sales
|
Leased
|
1,751
|
$
|
1,642
|
/
|
mo
|
7/31/2018
|
||||||||||
11305 Reed Hartman Highway
|
Blue Ash
|
OH
|
Mortgage Sales
|
Leased
|
711
|
$
|
918
|
/
|
mo
|
5/31/2019
|
||||||||||
2468 W. New Orleans
|
Broken Arrow
|
OK
|
Mortgage Sales
|
Leased
|
1,683
|
$
|
1,896
|
/
|
mo
|
12/31/2019
|
||||||||||
10610 SE Washington
|
Portland
|
OR
|
Mortgage Sales
|
Leased
|
506
|
$
|
1,000
|
/
|
mo
|
month to month
|
||||||||||
3311 NE MLK Jr Blvd., Suite 203
|
Portland
|
OR
|
Mortgage Sales
|
Leased
|
1,400
|
$
|
675
|
/
|
mo
|
month to month
|
||||||||||
10365 SE Sunnyside Rd.
|
Clackamus
|
OR
|
Mortgage Sales
|
Leased
|
1,288
|
$
|
2,280
|
/
|
mo
|
11/30/2019
|
||||||||||
1063 E. Montague Ave.
|
Charleston
|
SC
|
Mortgage Sales
|
Leased
|
2,334
|
$
|
3,404
|
/
|
mo
|
8/31/2020
|
||||||||||
6263 Poplar Ave.
|
Memphis
|
TN
|
Mortgage Sales
|
Leased
|
1,680
|
$
|
2,380
|
/
|
mo
|
3/31/2019
|
Street
|
City
|
State
|
Function
|
Owned Leased
|
Approximate
Square
Footage
|
Lease
Amount
|
Expiration
|
|||||||||||
108 Stekola Ln.
|
Knoxville
|
TN
|
Mortgage Sales
|
Leased
|
1,100
|
$
|
1,200
|
/
|
mo
|
7/31/2018
|
||||||||
6640 Carothers Parkway
|
Franklin
|
TN
|
Mortgage Sales
|
Leased
|
3,229
|
$
|
3,902
|
/
|
mo
|
3/31/2020
|
||||||||
303 Germantown Bend Cove
|
Cordova
|
TN
|
Mortgage Sales
|
Leased
|
1,200
|
$
|
1,500
|
/
|
mo
|
3/31/2017
|
||||||||
8505 Technology Forest Place, Suite 304
|
Woodlands
|
TX
|
Mortgage Sales
|
Leased
|
1,250
|
$
|
2,900
|
/
|
mo
|
5/31/2018
|
||||||||
602 S Main Street, Suite 300
|
Weatherford
|
TX
|
Mortgage Sales
|
Sub-Leased
|
1,000
|
$
|
1,200
|
/
|
mo
|
5/31/2017
|
||||||||
52 Sugar Creek Center Blvd., Suite 150
|
Sugarland
|
TX
|
Mortgage Sales
|
Leased
|
1,788
|
$
|
3,497
|
/
|
mo
|
3/31/2020
|
||||||||
2526 N. Loop 1604 W., Suite 210
|
San Antonio
|
TX
|
Mortgage Sales
|
Leased
|
4,959
|
$
|
10,125
|
/
|
mo
|
11/30/2019
|
||||||||
1 Chisholm Trail Rd., Suite 210
|
Round Rock
|
TX
|
Mortgage Sales
|
Leased
|
3,402
|
$
|
3,331
|
/
|
mo
|
12/31/2017
|
||||||||
3027 Marina Bay Dr.
|
League City
|
TX
|
Mortgage Sales
|
Leased
|
2,450
|
$
|
2,016
|
/
|
mo
|
3/31/2020
|
||||||||
3027 Marina Bay Dr., Suite 110
|
League City
|
TX
|
Mortgage Sales
|
Leased
|
180
|
$
|
740
|
/
|
mo
|
3/31/2020
|
||||||||
120 West Village
|
Laredo
|
TX
|
Mortgage Sales
|
Leased
|
800
|
$
|
1,136
|
/
|
mo
|
4/30/2018
|
||||||||
7913 McPherson, Suite B
|
Laredo
|
TX
|
Mortgage Sales
|
Leased
|
1,200
|
$
|
1,400
|
/
|
mo
|
month to month
|
||||||||
1202 Lakeway Dr., Suite 12
|
Lakeway
|
TX
|
Mortgage Sales
|
Leased
|
1,192
|
$
|
2,145
|
/
|
mo
|
3/31/2018
|
||||||||
24668 Kingsland Blvd.
|
Katy
|
TX
|
Mortgage Sales
|
Leased
|
150
|
$
|
400
|
/
|
mo
|
month to month
|
||||||||
2877 Commercial Center Blvd.
|
Katy
|
TX
|
Mortgage Sales
|
Leased
|
250
|
$
|
2,000
|
/
|
mo
|
month to month
|
||||||||
1848 Norwood Plaza, Suite 205
|
Hurst
|
TX
|
Mortgage Sales
|
Sub-Leased
|
455
|
$
|
361
|
/
|
mo
|
month to month
|
||||||||
16350 Park Ten Place
|
Houston
|
TX
|
Mortgage Sales
|
Leased
|
3,397
|
$
|
7,077
|
/
|
mo
|
11/30/2018
|
||||||||
17347 Village Green Dr., Suite 102A
|
Houston
|
TX
|
Mortgage Sales
|
Sub-Leased
|
3,000
|
$
|
8,970
|
/
|
mo
|
month to month
|
||||||||
30417 5th St., Suite B
|
Fulshear
|
TX
|
Mortgage Sales
|
Sub-Leased
|
1,000
|
$
|
550
|
/
|
mo
|
month to month
|
||||||||
4936 Collinwood, Suite 110
|
Fort Worth
|
TX
|
Mortgage Sales
|
Leased
|
1,900
|
$
|
34,200
|
/
|
yr
|
month to month
|
||||||||
4100 Alpha Rd.
|
Farmers Branch
|
TX
|
Mortgage Sales
|
Leased
|
2,935
|
$
|
4,035
|
/
|
mo
|
3/31/2020
|
||||||||
1626 Lee Trevino
|
El Paso
|
TX
|
Mortgage Sales
|
Leased
|
8,400
|
$
|
7,059
|
mo
|
11/30/2019
|
|||||||||
921 West New Hope Drive
|
Cedar Park
|
TX
|
Mortgage Sales
|
Subleased
|
880
|
$
|
1,000
|
/
|
mo
|
7/31/2017
|
||||||||
8700 Manchaca Rd., Suite 603
|
Austin
|
TX
|
Mortgage Sales
|
Sub-Leased
|
850
|
$
|
1,600
|
/
|
mo
|
7/31/2019
|
||||||||
9737 Great Hills Trail, Suite 150
|
Austin
|
TX
|
Mortgage Sales
|
Leased
|
11,717
|
$
|
15,378
|
/
|
mo
|
8/31/2024
|
||||||||
16801 Addison Rd.
|
Addison
|
TX
|
Mortgage Sales
|
Leased
|
4,662
|
$
|
3,011
|
/
|
mo
|
2/14/2018
|
||||||||
118 E. Vine St.
|
Tooele
|
UT
|
Mortgage Sales
|
Leased
|
1,000
|
$
|
849
|
/
|
mo
|
7/31/2017
|
||||||||
5965 So. Redwood Rd.
|
Taylorsville
|
UT
|
Mortgage Sales
|
Leased
|
2,000
|
$
|
600
|
/
|
mo
|
12/31/2017
|
||||||||
6575 S. Redwood Rd.
|
Taylorsville
|
UT
|
Mortgage Sales
|
Leased
|
3,323
|
$
|
4,638
|
/
|
mo
|
8/31/2019
|
||||||||
10437 S. 1300 W.
|
South Jordan
|
UT
|
Mortgage Sales
|
Leased
|
4,000
|
$
|
7,800
|
/
|
mo
|
9/30/2019
|
||||||||
126 West Sego Lily Dr.
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
2,794
|
$
|
5,451
|
/
|
mo
|
8/31/2017
|
||||||||
9815 S. Monroe St.
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
1,725
|
$
|
3,306
|
/
|
mo
|
9/30/2018
|
||||||||
9815 S. Monroe St., Suite 206
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
2,819
|
$
|
5,286
|
/
|
mo
|
5/31/2018
|
||||||||
9980 S. 300 W., Suite 201
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
100
|
$
|
1,819
|
/
|
mo
|
month to month
|
||||||||
1111 Brickyard Rd.
|
Salt Lake City
|
UT
|
Mortgage Sales
|
Leased
|
4,857
|
$
|
3,917
|
/
|
mo
|
1/31/2018
|
||||||||
5993 S. Redwood Rd.
|
Salt Lake City
|
UT
|
Mortgage Sales
|
Leased
|
2,880
|
$
|
2,375
|
/
|
mo
|
7/31/2021
|
||||||||
1224 S. River Rd., Suites E3 & E4
|
Saint George
|
UT
|
Mortgage Sales
|
Leased
|
1,900
|
$
|
1,814
|
/
|
mo
|
4/30/2018
|
||||||||
465 N. Main
|
Richfield
|
UT
|
Mortgage Sales
|
Leased
|
2,848
|
$
|
1,600
|
/
|
mo
|
month to month
|
||||||||
1245 Deer Valley Dr., Suite 3A
|
Park City
|
UT
|
Mortgage Sales
|
Leased
|
2,183
|
$
|
4,684
|
/
|
mo
|
12/31/2017
|
||||||||
730 South Sleepy Ridge Dr.
|
Orem
|
UT
|
Mortgage Sales
|
Leased
|
891
|
$
|
1,500
|
/
|
mo
|
10/31/2017
|
||||||||
5201 S. Green St.
|
Murray
|
UT
|
Mortgage Sales
|
Leased
|
10,990
|
$
|
13,456
|
/
|
mo
|
6/30/2017
|
||||||||
210 E. Main St.
|
Midway
|
UT
|
Mortgage Sales
|
Leased
|
1,600
|
$
|
1,850
|
/
|
mo
|
12/31/2018
|
||||||||
6965 S. Union Park,
Stes 100, 260, 300, 460, 470, & 480
|
Midvale
|
UT
|
Mortgage Sales
|
Leased
|
37,226
|
$
|
74,098
|
/
|
mo
|
2/28/2018
|
||||||||
6975 Union Park Ave., Suite 420
|
Midvale
|
UT
|
Mortgage Sales
|
Leased
|
6,672
|
$
|
12,500
|
/
|
mo
|
6/30/2019
|
||||||||
1133 North Main St.
|
Layton
|
UT
|
Mortgage Sales
|
Subleased
|
300
|
$
|
500
|
/
|
mo
|
month to month
|
||||||||
288 SR 248, Suite 2A
|
Kamas
|
UT
|
Mortgage Sales
|
Leased
|
1,480
|
$
|
2,350
|
/
|
mo
|
month to month
|
||||||||
497 S. Main
|
Ephraim
|
UT
|
Mortgage Sales
|
Leased
|
953
|
$
|
765
|
/
|
mo
|
9/30/2017
|
||||||||
15640 NE Fourth Plain Blvd., Suite 220
|
Vancouver
|
WA
|
Mortgage Sales
|
Leased
|
360
|
$
|
1,190
|
/
|
mo
|
6/30/2017
|
||||||||
535 Dock St., Suite 100
|
Tacoma
|
WA
|
Mortgage Sales
|
Leased
|
3,825
|
$
|
5,620
|
/
|
mo
|
7/31/2018
|
318 39th St. Ave. SW, Suite A
|
Puyallup
|
WA
|
Mortgage Sales
|
Leased
|
3,431
|
$
|
5,575
|
/
|
mo
|
11/30/2017
|
|||||
11232 120th Ave. NE, Suite 206
|
Kirkland
|
WA
|
Mortgage Sales
|
Leased
|
500
|
$
|
350
|
/
|
mo
|
5/31/2017
|
|||||
11314 4th Ave. W.
|
Everett
|
WA
|
Mortgage Sales
|
Leased
|
1,793
|
$
|
2,308
|
/
|
mo
|
10/31/2018
|
|||||
1604 Hewitt Ave., Suite 703
|
Everett
|
WA
|
Mortgage Sales
|
Leased
|
2,038
|
$
|
4,650
|
/
|
mo
|
month to month
|
|||||
5002 7th Ave.
|
Kenosha
|
WI
|
Mortgage Sales
|
Leased
|
1,450
|
$
|
1,200
|
/
|
mo
|
10/31/2019
|
(1)
|
The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports or the Company's inspection of the cemeteries.
|
|
(2)
|
Includes spaces sold for cash and installment contract sales.
|
|
(3)
|
As of December 31, 2016, there were mortgages of approximately $147,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park, and Lake Hills Cemetery.
|
|
(4)
|
These cemeteries include two granite mausoleums.
|
Date | Viewing | Square | ||||||||||||
Name of Mortuary
|
Location
|
Acquired
|
Room(s)
|
Chapel(s)
|
Footage
|
|||||||||
Memorial Mortuary, Inc.
|
||||||||||||||
Memorial Mortuary
|
5850 South 900 East
|
|||||||||||||
Murray, Utah
|
1973
|
3
|
1
|
20,000
|
||||||||||
Affordable Funerals and
Cremations, St. George |
157 East Riverside Dr., No. 3A
|
2016
|
1
|
1
|
2,360
|
|||||||||
St. George, Utah
|
||||||||||||||
Memorial Estates, Inc.
|
||||||||||||||
Redwood Mortuary(2)
|
6500 South Redwood Rd.
|
|||||||||||||
West Jordan, Utah
|
1973
|
2
|
1
|
10,000
|
||||||||||
Mountain View Mortuary(2)
|
3115 East 7800 South
|
|||||||||||||
Salt Lake City, Utah
|
1973
|
2
|
1
|
16,000
|
||||||||||
Lakeview Mortuary(2)
|
1640 East Lakeview Dr.
|
|||||||||||||
Bountiful, Utah
|
1973
|
0
|
1
|
5,500
|
||||||||||
Deseret Memorial, Inc.
|
||||||||||||||
Deseret Mortuary(1)
|
36 East 700 South
|
|||||||||||||
Salt Lake City, Utah
|
1991
|
2
|
2
|
36,300
|
||||||||||
Lakehills Mortuary(2)
|
10055 South State St.
|
|||||||||||||
Sandy, Utah
|
1991
|
2
|
1
|
18,000
|
||||||||||
Cottonwood Mortuary, Inc.
|
||||||||||||||
Cottonwood Mortuary(1)(2)
|
4670 South Highland Dr.
|
|||||||||||||
Holladay, Utah
|
1991
|
2
|
1
|
14,500
|
(1)
|
As of December 31, 2016, there were mortgages of approximately $147,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park and Lake Hills Cemetery.
|
(2)
|
These funeral homes also provide burial niches at their respective locations.
|
Price Range (1)
|
||||||||
High
|
Low
|
|||||||
Period (Calendar Year)
|
||||||||
2015
|
||||||||
First Quarter
|
$
|
5.66
|
$
|
4.82
|
||||
Second Quarter
|
$
|
6.34
|
$
|
4.75
|
||||
Third Quarter
|
$
|
7.38
|
$
|
5.90
|
||||
Fourth Quarter
|
$
|
6.20
|
$
|
5.34
|
||||
2016
|
||||||||
First Quarter
|
$
|
6.17
|
$
|
4.85
|
||||
Second Quarter
|
$
|
4.88
|
$
|
4.23
|
||||
Third Quarter
|
$
|
5.62
|
$
|
4.59
|
||||
Fourth Quarter
|
$
|
7.04
|
$
|
5.45
|
||||
2017
|
||||||||
First Quarter (through March 27, 2017)
|
$
|
7.30
|
$
|
6.24
|
(1)
|
Sales prices have been adjusted retroactively for the effect of annual stock dividends.
|
12/31/11
|
12/31/12
|
12/31/13
|
12/31/14
|
12/31/15
|
12/31/16
|
|
SNFC
|
100
|
564
|
325
|
408
|
487
|
507
|
S & P 500
|
100
|
113
|
147
|
164
|
163
|
178
|
S & P Insurance
|
100
|
117
|
170
|
180
|
181
|
208
|
Year Ended December 31
|
||||||||||||||||||||
2016(3)
|
2015(2)
|
2014
|
2013
|
2012(1)
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Insurance premiums and other considerations
|
$
|
64,501,000
|
$
|
56,410,000
|
$
|
53,009,000
|
$
|
50,472,000
|
$
|
48,216,000
|
||||||||||
Net investment income
|
37,582,000
|
34,008,000
|
28,304,000
|
20,354,000
|
21,916,000
|
|||||||||||||||
Net mortuary and cemetery sales
|
12,267,000
|
11,502,000
|
11,426,000
|
12,000,000
|
10,865,000
|
|||||||||||||||
Realized gains on investments and other assets
|
(176,000
|
)
|
2,401,000
|
1,918,000
|
1,418,000
|
1,425,000
|
||||||||||||||
Other than temporary impairments
|
(270,000
|
)
|
(605,000
|
)
|
(164,000
|
)
|
(336,000
|
)
|
(1,208,000
|
)
|
||||||||||
Mortgage fee income
|
186,416,000
|
175,726,000
|
129,139,000
|
127,327,000
|
153,154,000
|
|||||||||||||||
Other
|
6,888,000
|
5,122,000
|
3,747,000
|
2,606,000
|
1,159,000
|
|||||||||||||||
Total revenues
|
307,208,000
|
284,564,000
|
227,379,000
|
213,841,000
|
235,527,000
|
|||||||||||||||
Expenses
|
||||||||||||||||||||
Policyholder benefits
|
54,864,000
|
50,762,000
|
47,850,000
|
48,130,000
|
45,681,000
|
|||||||||||||||
Amortization of deferred policy acquisition costs
|
8,003,000
|
5,641,000
|
6,893,000
|
5,182,000
|
5,450,000
|
|||||||||||||||
Selling, general and administrative expenses
|
216,702,000
|
200,674,000
|
154,866,000
|
147,406,000
|
156,310,000
|
|||||||||||||||
Interest expense
|
5,112,000
|
4,459,000
|
2,994,000
|
2,854,000
|
3,744,000
|
|||||||||||||||
Cost of goods and services of the mortuaries and cemeteries
|
1,787,000
|
1,803,000
|
1,853,000
|
1,919,000
|
1,724,000
|
|||||||||||||||
Total benefits and expenses
|
286,468,000
|
263,339,000
|
214,456,000
|
205,491,000
|
212,909,000
|
|||||||||||||||
Earnings before income taxes
|
20,740,000
|
21,225,000
|
12,923,000
|
8,350,000
|
22,618,000
|
|||||||||||||||
Income tax expense
|
(6,461,000
|
)
|
(7,746,000
|
)
|
(4,899,000
|
)
|
(1,811,000
|
)
|
(5,070,000
|
)
|
||||||||||
Net earnings
|
$
|
14,279,000
|
$
|
13,479,000
|
$
|
8,024,000
|
$
|
6,539,000
|
$
|
17,548,000
|
||||||||||
Net earnings per common share (4)
|
$
|
0.96
|
$
|
0.93
|
$
|
0.58
|
$
|
0.48
|
$
|
1.37
|
||||||||||
Weighted average outstanding common shares (4)
|
14,806,000
|
14,439,000
|
13,893,000
|
13,740,000
|
12,802,000
|
|||||||||||||||
Net earnings per common share-assuming dilution (4)
|
$
|
0.94
|
$
|
0.90
|
$
|
0.56
|
$
|
0.45
|
$
|
1.30
|
||||||||||
Weighted average outstanding common shares-assuming dilution (4)
|
15,127,000
|
14,952,000
|
14,343,000
|
14,419,000
|
13,462,000
|
December 31
|
||||||||||||||||||||
2016(3)
|
2015(2)
|
2014
|
2013
|
2012(1)
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Investments and restricted assets
|
$
|
571,762,000
|
$
|
449,801,000
|
$
|
446,249,000
|
$
|
391,523,000
|
$
|
356,446,000
|
||||||||||
Cash
|
38,988,000
|
40,053,000
|
30,855,000
|
38,203,000
|
33,494,000
|
|||||||||||||||
Receivables
|
101,361,000
|
131,313,000
|
82,079,000
|
88,832,000
|
111,157,000
|
|||||||||||||||
Other assets
|
141,894,000
|
128,766,000
|
111,887,000
|
100,199,000
|
96,120,000
|
|||||||||||||||
Total assets
|
$
|
854,005,000
|
$
|
749,933,000
|
$
|
671,070,000
|
$
|
618,757,000
|
$
|
597,217,000
|
||||||||||
Liabilities
|
||||||||||||||||||||
Policyholder benefits
|
$
|
590,080,000
|
$
|
521,915,000
|
$
|
481,689,000
|
$
|
457,304,000
|
$
|
443,388,000
|
||||||||||
Bank & other loans payable
|
53,719,000
|
40,909,000
|
29,020,000
|
18,289,000
|
11,910,000
|
|||||||||||||||
Cemetery & mortuary liabilities
|
12,360,000
|
12,816,000
|
13,242,000
|
13,176,000
|
13,412,000
|
|||||||||||||||
Cemetery perpetual care obligation
|
3,598,000
|
3,466,000
|
3,407,000
|
3,266,000
|
3,153,000
|
|||||||||||||||
Other liabilities
|
66,068,000
|
59,581,000
|
46,621,000
|
38,971,000
|
45,542,000
|
|||||||||||||||
Total liabilities
|
725,825,000
|
638,687,000
|
573,979,000
|
531,006,000
|
517,405,000
|
|||||||||||||||
Stockholders' equity
|
128,180,000
|
111,246,000
|
97,091,000
|
87,751,000
|
79,812,000
|
|||||||||||||||
Total liabilities and stockholders' equity
|
$
|
854,005,000
|
$
|
749,933,000
|
$
|
671,070,000
|
$
|
618,757,000
|
$
|
597,217,000
|
||||||||||
__________________ | ||||||||||||||||||||
(1) Includes the coinsurance with Mothe Life Insurance Company and DLE Life Insurance Company.
|
||||||||||||||||||||
(2) Includes the coinsurance with American Republic Life Insurance Company.
|
||||||||||||||||||||
(3) Includes the acquistion of First Guaranty Insurance Company.
|
||||||||||||||||||||
(4) Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.
|
Years ended December 31
(in thousands of dollars) |
||||||||||||||||||||
2016
|
2015
|
2016 vs 2015 % Increase
(Decrease)
|
2014
|
2015 vs 2014 % Increase
(Decrease)
|
||||||||||||||||
Revenues from external customers
|
||||||||||||||||||||
Insurance premiums
|
$
|
64,501
|
$
|
56,410
|
14
|
%
|
$
|
53,009
|
6
|
%
|
||||||||||
Net investment income
|
28,618
|
25,297
|
13
|
%
|
23,008
|
10
|
%
|
|||||||||||||
Revenues from loan originations
|
2,401
|
2,474
|
(3
|
%)
|
4,029
|
(39
|
%)
|
|||||||||||||
Other
|
85
|
2,744
|
(97
|
%)
|
1,727
|
59
|
%
|
|||||||||||||
Total
|
$
|
95,605
|
$
|
86,925
|
10
|
%
|
$
|
81,773
|
6
|
%
|
||||||||||
Intersegment revenue
|
$
|
7,120
|
$
|
7,615
|
(7
|
%)
|
$
|
6,128
|
24
|
%
|
||||||||||
Earnings before income taxes
|
$
|
7,704
|
$
|
8,465
|
(9
|
%)
|
$
|
8,472
|
0
|
%
|
Years ended December 31
(in thousands of dollars) |
||||||||||||||||||||
2016
|
2015
|
2016 vs 2015 % Increase
(Decrease)
|
2014
|
2015 vs 2014 % Increase
(Decrease)
|
||||||||||||||||
Revenues from external customers
|
||||||||||||||||||||
Mortuary revenues
|
$
|
4,848
|
$
|
4,628
|
5
|
%
|
$
|
4,801
|
(4
|
%)
|
||||||||||
Cemetery revenues
|
7,420
|
6,874
|
8
|
%
|
6,625
|
4
|
%
|
|||||||||||||
Realized gains on investments and other assets
|
211
|
387
|
(45
|
%)
|
586
|
(34
|
%)
|
|||||||||||||
Other
|
401
|
598
|
(33
|
%)
|
445
|
34
|
%
|
|||||||||||||
Total
|
$
|
12,880
|
$
|
12,487
|
3
|
%
|
$
|
12,457
|
0
|
%
|
||||||||||
Earnings before income taxes
|
$
|
1,219
|
$
|
914
|
33
|
%
|
$
|
663
|
38
|
%
|
Years ended December 31
(in thousands of dollars) |
||||||||||||||||||||
2016
|
2015
|
2016 vs 2015 % Increase
(Decrease)
|
2014
|
2015 vs 2014 % Increase
(Decrease)
|
||||||||||||||||
Revenues from external customers:
|
||||||||||||||||||||
Revenues from loan originations
|
$
|
149,338
|
$
|
139,042
|
7
|
%
|
$
|
103,248
|
35
|
%
|
||||||||||
Secondary gains from investors
|
34,677
|
34,211
|
1
|
%
|
21,862
|
56
|
%
|
|||||||||||||
Total
|
$
|
184,015
|
$
|
173,253
|
6
|
%
|
$
|
125,110
|
38
|
%
|
||||||||||
Earnings before income taxes
|
$
|
11,817
|
$
|
11,846
|
0
|
%
|
$
|
3,788
|
213
|
%
|
·
|
Failure to deliver original documents specified by the investor,
|
·
|
The existence of misrepresentation or fraud in the origination of the loan,
|
·
|
The loan becomes delinquent due to nonpayment during the first several months after it is sold,
|
·
|
Early pay-off of a loan, as defined by the agreements,
|
·
|
Excessive time to settle a loan,
|
·
|
Investor declines purchase, and
|
·
|
Discontinued product and expired commitment.
|
·
|
Research reasons for rejection,
|
·
|
Provide additional documents,
|
·
|
Request investor exceptions,
|
·
|
Appeal rejection decision to purchase committee, and
|
·
|
Commit to secondary investors.
|
·
|
For loans that have an active market, the Company uses the market price on the repurchase date.
|
·
|
For loans where there is no market but there is a similar product, the Company uses the market value for the similar product on the repurchase date.
|
·
|
For loans where no active market exists on the repurchase date, the Company determines that the unpaid principal balance best approximates the market value on the repurchase date, after considering the fair value of the underlying real estate collateral and estimated future cash flows.
|
-200 bps
|
-100 bps
|
+100 bps
|
+200 bps
|
|||||||||||||
Change in Market Value
|
$
|
28,572
|
$
|
13,491
|
$
|
(17,119
|
)
|
$
|
(30,069
|
)
|
||||||
(in thousands) |
Less than
1 year |
1-3 years
|
4-5 years
|
over
5 years |
Total
|
||||||||||||||||
Non-cancelable operating leases
|
$
|
6,556,093
|
$
|
7,857,212
|
$
|
534,151
|
$
|
37,438
|
$
|
14,984,894
|
||||||||||
Bank and other loans payable
|
2,755,443
|
37,668,543
|
4,502,845
|
8,791,717
|
53,718,548
|
|||||||||||||||
$
|
9,311,536
|
$
|
45,525,755
|
$
|
5,036,996
|
$
|
8,829,155
|
$
|
68,703,442
|
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
|
||
Page No.
|
||
Financial Statements:
|
||
Report of Independent Registered Public Accounting Firm
|
33
|
|
Consolidated Balance Sheets, December 31, 2016 and 2015
|
34
|
|
Consolidated Statements of Earnings for the Years Ended December 31, 2016, 2015 and 2014
|
36
|
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016, 2015 and 2014
|
37
|
|
Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2016, 2015 and 2014
|
38
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014
|
39
|
|
Notes to Consolidated Financial Statements
|
41
|
December 31
|
||||||||
Assets
|
2016
|
2015
|
||||||
Investments:
|
||||||||
Fixed maturity securities, held to maturity, at amortized cost
|
$
|
184,979,644
|
$
|
145,558,425
|
||||
Equity securities, available for sale, at estimated fair value
|
10,573,356
|
8,431,090
|
||||||
Mortgage loans on real estate and construction loans held for investment, net of allowances for loan losses of $1,748,783 and $1,848,120 for 2016 and 2015
|
149,181,578
|
112,546,905
|
||||||
Real estate held for investment, net of accumulated depreciation of $16,138,439 and $12,210,346 for 2016 and 2015
|
145,165,921
|
114,852,432
|
||||||
Policy loans and other investments, net of allowances for doubtful accounts of $1,119,630 and $906,616 for 2016 and 2015
|
40,937,146
|
39,582,421
|
||||||
Short-term investments
|
27,560,040
|
16,915,808
|
||||||
Accrued investment income
|
2,972,596
|
2,553,819
|
||||||
Total investments
|
561,370,281
|
440,440,900
|
||||||
Cash and cash equivalents
|
38,987,430
|
40,053,242
|
||||||
Mortgage loans sold to investors
|
82,491,091
|
115,286,455
|
||||||
Receivables, net
|
18,870,119
|
16,026,100
|
||||||
Restricted assets
|
10,391,394
|
9,359,802
|
||||||
Cemetery perpetual care trust investments
|
4,131,885
|
2,848,759
|
||||||
Receivable from reinsurers
|
13,079,668
|
13,400,527
|
||||||
Cemetery land and improvements
|
10,672,836
|
10,780,996
|
||||||
Deferred policy and pre-need contract acquisition costs
|
69,118,745
|
59,004,909
|
||||||
Mortgage servicing rights, net
|
18,872,362
|
12,679,755
|
||||||
Property and equipment, net
|
8,791,522
|
11,441,660
|
||||||
Value of business acquired
|
7,570,300
|
8,743,773
|
||||||
Goodwill
|
2,765,570
|
2,765,570
|
||||||
Other
|
6,891,468
|
7,100,869
|
||||||
Total Assets
|
$
|
854,004,671
|
$
|
749,933,317
|
December 31
|
||||||||
Liabilities and Stockholders' Equity
|
2016
|
2015
|
||||||
Liabilities
|
||||||||
Future life, annuity, and other benefits
|
$
|
585,610,063
|
$
|
517,177,388
|
||||
Unearned premium reserve
|
4,469,771
|
4,737,305
|
||||||
Bank and other loans payable
|
53,718,548
|
40,908,915
|
||||||
Deferred pre-need cemetery and mortuary contract revenues
|
12,360,249
|
12,816,227
|
||||||
Cemetery perpetual care obligation
|
3,598,580
|
3,465,771
|
||||||
Accounts payable
|
4,213,109
|
3,502,046
|
||||||
Other liabilities and accrued expenses
|
33,950,503
|
31,027,381
|
||||||
Income taxes
|
27,904,294
|
25,052,059
|
||||||
Total liabilities
|
725,825,117
|
638,687,092
|
||||||
Stockholders' Equity
|
||||||||
Preferred Stock:
|
||||||||
Preferred stock - non-voting-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common Stock:
|
||||||||
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 13,819,006 shares in 2016 and 13,109,100 shares in 2015
|
27,638,012
|
26,218,200
|
||||||
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 1,902,229 shares in 2016 and 1,709,640 shares in 2015
|
3,804,458
|
3,419,280
|
||||||
Additional paid-in capital
|
34,813,246
|
30,232,582
|
||||||
Accumulated other comprehensive income, net of taxes
|
264,822
|
(499,358
|
)
|
|||||
Retained earnings
|
63,029,627
|
54,054,950
|
||||||
Treasury stock, at cost - 704,122 Class A shares and -0- Class C shares in 2016; 930,546 Class A shares and -0- Class C shares in 2015
|
(1,370,611
|
)
|
(2,179,429
|
)
|
||||
Total stockholders' equity
|
128,179,554
|
111,246,225
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
854,004,671
|
$
|
749,933,317
|
Years Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Revenues
:
|
||||||||||||
Insurance premiums and other considerations
|
$
|
64,501,017
|
$
|
56,409,863
|
$
|
53,008,679
|
||||||
Net investment income
|
37,582,444
|
34,007,904
|
28,303,740
|
|||||||||
Net mortuary and cemetery sales
|
12,267,640
|
11,502,045
|
11,426,308
|
|||||||||
Realized gains on investments and other assets
|
(176,387
|
)
|
2,401,359
|
1,918,176
|
||||||||
Other than temporary impairments
|
(270,358
|
)
|
(605,430
|
)
|
(164,240
|
)
|
||||||
Mortgage fee income
|
186,416,311
|
175,726,692
|
129,138,941
|
|||||||||
Other
|
6,887,749
|
5,121,807
|
3,747,013
|
|||||||||
Total revenues
|
307,208,416
|
284,564,240
|
227,378,617
|
|||||||||
Benefits and expenses:
|
||||||||||||
Death benefits
|
31,033,222
|
31,158,281
|
27,100,278
|
|||||||||
Surrenders and other policy benefits
|
2,354,158
|
2,391,612
|
2,689,686
|
|||||||||
Increase in future policy benefits
|
21,476,432
|
17,212,001
|
18,060,151
|
|||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
|
8,003,175
|
5,641,293
|
6,892,978
|
|||||||||
Selling, general and administrative expenses:
|
||||||||||||
Commissions
|
87,762,583
|
81,935,623
|
59,876,675
|
|||||||||
Personnel
|
70,254,479
|
60,860,275
|
49,360,406
|
|||||||||
Advertising
|
6,425,277
|
5,730,197
|
4,584,436
|
|||||||||
Rent and rent related
|
8,061,598
|
7,850,776
|
6,135,876
|
|||||||||
Depreciation on property and equipment
|
2,182,724
|
2,183,496
|
2,177,165
|
|||||||||
Provision for loan loss reserve
|
4,688,754
|
6,295,043
|
3,053,403
|
|||||||||
Costs related to funding mortgage loans
|
8,756,791
|
8,864,404
|
6,877,069
|
|||||||||
Other
|
28,569,949
|
26,954,378
|
22,800,066
|
|||||||||
Interest expense
|
5,111,868
|
4,458,612
|
2,994,429
|
|||||||||
Cost of goods and services sold – mortuaries and cemeteries
|
1,787,043
|
1,803,444
|
1,853,103
|
|||||||||
Total benefits and expenses
|
286,468,053
|
263,339,435
|
214,455,721
|
|||||||||
Earnings before income taxes
|
20,740,363
|
21,224,805
|
12,922,896
|
|||||||||
Income tax expense
|
(6,460,859
|
)
|
(7,745,948
|
)
|
(4,898,663
|
)
|
||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
||||||
Net earnings per Class A equivalent common share (1)
|
$
|
0.96
|
$
|
0.93
|
$
|
0.58
|
||||||
Net earnings per Class A equivalent common share - assuming dilution(1)
|
$
|
0.94
|
$
|
0.90
|
$
|
0.56
|
||||||
Weighted average Class A equivalent common shares outstanding (1)
|
14,806,290
|
14,439,274
|
13,893,260
|
|||||||||
Weighted average Class A equivalent common shares outstanding-assuming dilution (1)
|
15,127,204
|
14,951,833
|
14,344,475
|
Years Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
||||||
Other comprehensive income:
|
||||||||||||
Changes in:
|
||||||||||||
Net unrealized gains on derivative instruments
|
6,490
|
10,628
|
16,433
|
|||||||||
Net unrealized gains (losses) on available for sale securities
|
757,690
|
(771,343
|
)
|
(65,848
|
)
|
|||||||
Other comprehensive gain (loss)
|
764,180
|
(760,715
|
)
|
(49,415
|
)
|
|||||||
Comprehensive income
|
$
|
15,043,684
|
$
|
12,718,142
|
$
|
7,974,818
|
Class A
Common
Stock
|
Class C
Common
Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive Income (Loss)
|
Retained
Earnings
|
Treasury
Stock
|
Total
|
||||||||||||||||||||||
Balance at January 1, 2014
|
$
|
23,614,574
|
$
|
2,660,382
|
$
|
23,215,875
|
$
|
310,772
|
$
|
40,574,211
|
$
|
(2,624,625
|
)
|
$
|
87,751,189
|
|||||||||||||
.
|
||||||||||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
8,024,233
|
-
|
8,024,233
|
|||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
(49,415
|
)
|
-
|
-
|
(49,415
|
)
|
|||||||||||||||||||
Stock based compensation
|
-
|
-
|
391,220
|
-
|
-
|
391,220
|
||||||||||||||||||||||
Reverse stock split true up
|
-
|
30
|
-
|
-
|
(30
|
)
|
-
|
-
|
||||||||||||||||||||
Exercise of stock options
|
108,824
|
-
|
(34,800
|
)
|
-
|
-
|
-
|
74,024
|
||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
361,679
|
-
|
-
|
538,171
|
899,850
|
|||||||||||||||||||||
Stock dividends
|
1,190,040
|
132,767
|
1,997,147
|
-
|
(3,319,954
|
)
|
-
|
-
|
||||||||||||||||||||
Conversion Class C to Class A
|
5,042
|
(5,041
|
)
|
(2
|
)
|
-
|
1
|
-
|
-
|
|||||||||||||||||||
Balance at December 31, 2014
|
24,918,480
|
2,788,138
|
25,931,119
|
261,357
|
45,278,461
|
(2,086,454
|
)
|
97,091,101
|
||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
13,478,857
|
-
|
13,478,857
|
|||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
(760,715
|
)
|
-
|
-
|
(760,715
|
)
|
|||||||||||||||||||
Stock based compensation
|
-
|
-
|
387,608
|
-
|
-
|
-
|
387,608
|
|||||||||||||||||||||
Exercise of stock options
|
47,922
|
483,304
|
(55,717
|
)
|
-
|
-
|
(441,832
|
)
|
33,677
|
|||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
666,840
|
-
|
-
|
530,396
|
1,197,236
|
|||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(181,539
|
)
|
(181,539
|
)
|
|||||||||||||||||||
Stock dividends
|
1,248,966
|
150,670
|
3,302,732
|
-
|
(4,702,368
|
)
|
-
|
-
|
||||||||||||||||||||
Conversion Class C to Class A
|
2,832
|
(2,832
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance at December 31, 2015
|
26,218,200
|
3,419,280
|
30,232,582
|
(499,358
|
)
|
54,054,950
|
(2,179,429
|
)
|
111,246,225
|
|||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
14,279,504
|
-
|
14,279,504
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
764,180
|
-
|
-
|
764,180
|
|||||||||||||||||||||
Stock based compensation
|
-
|
-
|
343,577
|
-
|
-
|
-
|
343,577
|
|||||||||||||||||||||
Exercise of stock options
|
85,268
|
209,950
|
(179,112
|
)
|
-
|
-
|
-
|
116,106
|
||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
621,144
|
-
|
-
|
808,818
|
1,429,962
|
|||||||||||||||||||||
Stock dividends
|
1,315,838
|
193,934
|
3,795,055
|
-
|
(5,304,827
|
)
|
-
|
-
|
||||||||||||||||||||
Conversion Class C to Class A
|
18,706
|
(18,706
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance at December 31, 2016
|
$
|
27,638,012
|
$
|
3,804,458
|
$
|
34,813,246
|
$
|
264,822
|
$
|
63,029,627
|
$
|
(1,370,611
|
)
|
$
|
128,179,554
|
Years Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||||||
Realized losses (gains) on investments and other assets
|
176,387
|
(2,401,359
|
)
|
(1,918,176
|
)
|
|||||||
Other than temporary impairments
|
270,358
|
605,430
|
164,240
|
|||||||||
Depreciation
|
5,579,259
|
5,023,985
|
4,389,472
|
|||||||||
Provision for loan losses and doubtful accounts
|
1,188,599
|
524,237
|
743,386
|
|||||||||
Amortization of premiums and discounts
|
653,761
|
269,681
|
238,687
|
|||||||||
Provision for deferred and other income taxes
|
5,076,899
|
4,909,927
|
3,245,004
|
|||||||||
Policy and pre-need acquisition costs deferred
|
(16,943,538
|
)
|
(13,061,573
|
)
|
(10,159,895
|
)
|
||||||
Policy and pre-need acquisition costs amortized
|
6,829,702
|
4,364,167
|
5,590,332
|
|||||||||
Value of business acquired amortized
|
1,173,473
|
1,277,126
|
1,302,646
|
|||||||||
Servicing asset at amortized cost, additions
|
(8,603,154
|
)
|
(6,217,551
|
)
|
(3,741,381
|
)
|
||||||
Amortization of mortgage servicing rights
|
2,410,547
|
1,372,543
|
750,735
|
|||||||||
Stock based compensation expense
|
343,577
|
387,608
|
391,220
|
|||||||||
Benefit plans funded with treasury stock
|
1,429,962
|
1,197,236
|
899,850
|
|||||||||
Change in assets and liabilities:
|
||||||||||||
Land and improvements held for sale
|
108,160
|
67,089
|
(216,512
|
)
|
||||||||
Future life and other benefits
|
18,143,832
|
15,232,634
|
14,084,894
|
|||||||||
Receivables for mortgage loans sold
|
20,216,621
|
(47,752,055
|
)
|
7,362,353
|
||||||||
Other operating assets and liabilities
|
(8,473,503
|
)
|
4,890,770
|
(135,279
|
)
|
|||||||
Net cash provided by (used in) operating activities
|
43,860,446
|
(15,831,248
|
)
|
31,015,809
|
||||||||
Cash flows from investing activities:
|
||||||||||||
Securities held to maturity:
|
||||||||||||
Purchase - fixed maturity securities
|
(11,386,383
|
)
|
(22,604,453
|
)
|
(3,449,187
|
)
|
||||||
Calls and maturities - fixed maturity securities
|
15,343,488
|
11,952,402
|
11,850,864
|
|||||||||
Securities available for sale:
|
||||||||||||
Purchase - equity securities
|
(4,980,320
|
)
|
(9,336,175
|
)
|
(5,996,993
|
)
|
||||||
Sales - equity securities
|
4,523,034
|
6,559,555
|
3,851,664
|
|||||||||
Purchases of short-term investments
|
(18,228,912
|
)
|
(47,160,050
|
)
|
(18,587,022
|
)
|
||||||
Sales of short-term investments
|
12,943,083
|
57,188,522
|
3,663,246
|
|||||||||
Sales (purchases) of restricted assets
|
(981,433
|
)
|
(40,763
|
)
|
(2,628,764
|
)
|
||||||
Change in assets for perpetual care trusts
|
(1,215,778
|
)
|
(267,717
|
)
|
(230,921
|
)
|
||||||
Amount received for perpetual care trusts
|
132,809
|
59,053
|
140,587
|
|||||||||
Mortgage, policy, and other loans made
|
(469,593,661
|
)
|
(372,334,883
|
)
|
(286,974,069
|
)
|
||||||
Payments received for mortgage, policy, and other loans
|
446,242,429
|
371,254,833
|
267,763,998
|
|||||||||
Purchases of property and equipment
|
(3,566,511
|
)
|
(3,632,690
|
)
|
(1,520,443
|
)
|
||||||
Disposal of property and equipment
|
47,293
|
2,899,322
|
894,805
|
|||||||||
Purchases of real estate held for investment
|
(26,634,840
|
)
|
(16,725,475
|
)
|
(19,317,567
|
)
|
||||||
Sale of real estate held for investment
|
6,093,308
|
13,540,913
|
7,269,475
|
|||||||||
Cash received from reinsurance
|
-
|
24,020,215
|
13,553,864
|
|||||||||
Cash paid for purchase of subsidiaries, net of cash acquired
|
(4,328,520
|
)
|
-
|
(15,011,193
|
)
|
|||||||
Net cash provided by (used in) investing activities
|
(55,590,914
|
)
|
15,372,609
|
(44,727,656
|
)
|
Years Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Cash flows from financing activities:
|
||||||||||||
Annuity contract receipts
|
$
|
11,349,276
|
$
|
10,172,170
|
$
|
10,051,662
|
||||||
Annuity contract withdrawals
|
(13,620,998
|
)
|
(12,273,707
|
)
|
(14,519,563
|
)
|
||||||
Proceeds from stock options exercised
|
116,106
|
33,677
|
74,024
|
|||||||||
Purchase of treasury stock
|
-
|
(181,539
|
)
|
-
|
||||||||
Repayment of bank and other loans payable
|
(1,680,678
|
)
|
(1,967,197
|
)
|
(2,357,468
|
)
|
||||||
Proceeds from bank borrowings
|
14,500,950
|
13,873,157
|
13,115,348
|
|||||||||
Net cash provided by financing activities
|
10,664,656
|
9,656,561
|
6,364,003
|
|||||||||
Net change in cash and cash equivalents
|
(1,065,812
|
)
|
9,197,922
|
(7,347,844
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
40,053,242
|
30,855,320
|
38,203,164
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
38,987,430
|
$
|
40,053,242
|
$
|
30,855,320
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest (net of amount capitalized)
|
$
|
5,119,459
|
$
|
4,347,062
|
$
|
2,901,492
|
||||||
Income taxes
|
2,667,918
|
2,716,161
|
408,939
|
|||||||||
Non Cash Investing and Financing Activities:
|
||||||||||||
Mortgage loans foreclosed into real estate
|
$
|
2,075,714
|
$
|
3,246,712
|
$
|
981,820
|
||||||
See Note 19 regarding non cash transactions included in the acquisitions of First Guaranty Insurance Company and American Funeral Financial.
|
·
|
Failure to deliver original documents specified by the investor,
|
·
|
The existence of misrepresentation or fraud in the origination of the loan,
|
·
|
The loan becomes delinquent due to nonpayment during the first several months after it is sold,
|
·
|
Early pay-off of a loan, as defined by the agreements,
|
·
|
Excessive time to settle a loan,
|
·
|
Investor declines purchase, and
|
·
|
Discontinued product and expired commitment.
|
·
|
Research reasons for rejection,
|
·
|
Provide additional documents,
|
·
|
Request investor exceptions,
|
·
|
Appeal rejection decision to purchase committee, and
|
·
|
Commit to secondary investors.
|
·
|
For loans that have an active market the Company uses the market price on the repurchased date.
|
·
|
For loans where there is no market but there is a similar product, the Company uses the market value for the similar product on the repurchased date.
|
·
|
For loans where no active market exists on the repurchased date, the Company determines that the unpaid principal balance best approximates the market value on the repurchased date, after considering the fair value of the underlying real estate collateral and estimated future cash flows.
|
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||||||
December 31, 2016:
|
||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
4,475,065
|
$
|
249,028
|
$
|
(66,111
|
)
|
$
|
4,657,982
|
|||||||
Obligations of states and political subdivisions
|
6,017,225
|
153,514
|
(133,249
|
)
|
6,037,490
|
|||||||||||
Corporate securities including public utilities
|
164,375,636
|
10,440,989
|
(3,727,013
|
)
|
171,089,612
|
|||||||||||
Mortgage-backed securities
|
9,488,083
|
221,400
|
(280,871
|
)
|
9,428,612
|
|||||||||||
Redeemable preferred stock
|
623,635
|
13,418
|
-
|
637,053
|
||||||||||||
Total fixed maturity securities held to maturity
|
$
|
184,979,644
|
$
|
11,078,349
|
$
|
(4,207,244
|
)
|
$
|
191,850,749
|
|||||||
Equity securities available for sale at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
10,985,338
|
$
|
447,110
|
$
|
(859,092
|
)
|
$
|
10,573,356
|
|||||||
Total securities available for sale carried at estimated fair value
|
$
|
10,985,338
|
$
|
447,110
|
$
|
(859,092
|
)
|
$
|
10,573,356
|
|||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
58,593,622
|
||||||||||||||
Residential construction
|
40,800,117
|
|||||||||||||||
Commercial
|
51,536,622
|
|||||||||||||||
Less: Allowance for loan losses
|
(1,748,783
|
)
|
||||||||||||||
Total mortgage loans on real estate and construction loans held for investment
|
$
|
149,181,578
|
||||||||||||||
Real estate held for investment - net of depreciation
|
$
|
145,165,921
|
||||||||||||||
Policy loans and other investments are shown at amortized cost except for other investments that are shown at estimated fair value:
|
||||||||||||||||
Policy loans
|
$
|
6,694,148
|
||||||||||||||
Insurance assignments
|
33,548,079
|
|||||||||||||||
Promissory notes
|
48,797
|
|||||||||||||||
Other investments at estimated fair value
|
1,765,752
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(1,119,630
|
)
|
||||||||||||||
Total policy loans and other investments
|
$
|
40,937,146
|
||||||||||||||
Short-term investments at amortized cost
|
$
|
27,560,040
|
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||||||
December 31, 2015:
|
||||||||||||||||
Fixed maturity securities held to maturity carried at amortized cost:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
3,560,579
|
$
|
292,869
|
$
|
(4,743
|
)
|
$
|
3,848,705
|
|||||||
Obligations of states and political subdivisions
|
1,805,828
|
182,073
|
(1,040
|
)
|
1,986,861
|
|||||||||||
Corporate securities including public utilities
|
134,488,108
|
9,836,355
|
(5,501,743
|
)
|
138,822,720
|
|||||||||||
Mortgage-backed securities
|
5,091,887
|
190,867
|
(75,580
|
)
|
5,207,174
|
|||||||||||
Redeemable preferred stock
|
612,023
|
29,675
|
-
|
641,698
|
||||||||||||
Total fixed maturity securities held to maturity
|
$
|
145,558,425
|
$
|
10,531,839
|
$
|
(5,583,106
|
)
|
$
|
150,507,158
|
|||||||
Equity securities available for sale at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
9,891,500
|
$
|
213,684
|
$
|
(1,674,094
|
)
|
$
|
8,431,090
|
|||||||
Total securities available for sale carried at estimated fair value
|
$
|
9,891,500
|
$
|
213,684
|
$
|
(1,674,094
|
)
|
$
|
8,431,090
|
|||||||
Mortgage loans on real estate and construction loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
46,020,490
|
||||||||||||||
Residential construction
|
34,851,557
|
|||||||||||||||
Commercial
|
33,522,978
|
|||||||||||||||
Less: Allowance for loan losses
|
(1,848,120
|
)
|
||||||||||||||
Total mortgage loans on real estate and construction loans held for investment
|
$
|
112,546,905
|
||||||||||||||
Real estate held for investment - net of depreciation
|
$
|
114,852,432
|
||||||||||||||
Policy loans and other investments are shown at amortized cost except for other investments that are shown at estimated fair value:
|
||||||||||||||||
Policy loans
|
$
|
6,896,457
|
||||||||||||||
Insurance assignments
|
32,369,014
|
|||||||||||||||
Promissory notes
|
48,797
|
|||||||||||||||
Other investments at estimated fair value
|
1,174,769
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(906,616
|
)
|
||||||||||||||
Total policy loans and other investments
|
$
|
39,582,421
|
||||||||||||||
Short-term investments at amortized cost
|
$
|
16,915,808
|
Unrealized
Losses for
Less than
Twelve
Months
|
Fair Value
|
Unrealized
Losses for
More
than Twelve
Months
|
Fair Value
|
Total
Unrealized
Loss
|
Fair Value
|
|||||||||||||||||||
At December 31, 2016
|
||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies
|
$
|
66,111
|
$
|
1,342,088
|
$
|
-
|
$
|
-
|
$
|
66,111
|
$
|
1,342,088
|
||||||||||||
Obligations of States and Political Subdivisions
|
133,249
|
3,686,856
|
-
|
-
|
133,249
|
3,686,856
|
||||||||||||||||||
Corporate Securities
|
1,728,312
|
41,796,016
|
1,998,701
|
12,969,135
|
3,727,013
|
54,765,151
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
176,715
|
4,176,089
|
104,156
|
940,278
|
280,871
|
5,116,367
|
||||||||||||||||||
Total unrealized losses
|
$
|
2,104,387
|
$
|
51,001,049
|
$
|
2,102,857
|
$
|
13,909,413
|
$
|
4,207,244
|
$
|
64,910,462
|
||||||||||||
At December 31, 2015
|
||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies
|
$
|
4,743
|
$
|
2,191,782
|
$
|
-
|
$
|
-
|
$
|
4,743
|
$
|
2,191,782
|
||||||||||||
Obligations of States and Political Subdivisions
|
-
|
-
|
1,040
|
86,388
|
1,040
|
86,388
|
||||||||||||||||||
Corporate Securities
|
3,701,572
|
30,109,114
|
1,800,171
|
3,723,569
|
5,501,743
|
33,832,683
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
75,580
|
1,775,505
|
-
|
-
|
75,580
|
1,775,505
|
||||||||||||||||||
Total unrealized losses
|
$
|
3,781,895
|
$
|
34,076,401
|
$
|
1,801,211
|
$
|
3,809,957
|
$
|
5,583,106
|
$
|
37,886,358
|
Unrealized
Losses for
Less than
Twelve
Months
|
No. of
Investment
Positions
|
Unrealized
Losses for
More than
Twelve
Months
|
No. of
Investment
Positions
|
Total
Unrealized
Losses
|
||||||||||||||||
At December 31, 2016
|
||||||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
215,563
|
124
|
$
|
643,529
|
104
|
$
|
859,092
|
||||||||||||
Total unrealized losses
|
$
|
215,563
|
124
|
$
|
643,529
|
104
|
$
|
859,092
|
||||||||||||
Fair Value
|
$
|
2,063,144
|
$
|
1,685,874
|
$
|
3,749,018
|
||||||||||||||
At December 31, 2015
|
||||||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
997,862
|
222
|
$
|
676,232
|
74
|
$
|
1,674,094
|
||||||||||||
Total unrealized losses
|
$
|
997,862
|
222
|
$
|
676,232
|
74
|
$
|
1,674,094
|
||||||||||||
Fair Value
|
$
|
4,177,709
|
$
|
760,860
|
$
|
4,938,569
|
Amortized
|
Estimated Fair
|
|||||||
Cost
|
Value
|
|||||||
Held to Maturity:
|
||||||||
Due in 2017
|
$
|
6,148,334
|
$
|
6,232,674
|
||||
Due in 2018 through 2021
|
42,886,637
|
44,879,897
|
||||||
Due in 2022 through 2026
|
42,090,383
|
43,288,035
|
||||||
Due after 2026
|
83,742,572
|
87,324,617
|
||||||
Mortgage-backed securities
|
9,488,083
|
9,488,473
|
||||||
Redeemable preferred stock
|
623,635
|
637,053
|
||||||
Total held to maturity
|
$
|
184,979,644
|
$
|
191,850,749
|
Estimated Fair
|
||||||||
Cost
|
Value
|
|||||||
Available for Sale:
|
||||||||
Common stock
|
$
|
10,985,338
|
$
|
10,573,356
|
||||
Total available for sale
|
$
|
10,985,338
|
$
|
10,573,356
|
2016
|
2015
|
2014
|
||||||||||
Fixed maturity securities held to maturity:
|
||||||||||||
Gross realized gains
|
$
|
389,558
|
$
|
387,162
|
$
|
390,203
|
||||||
Gross realized losses
|
(132,124
|
)
|
(82,166
|
)
|
(71,800
|
)
|
||||||
Other than temporary impairments
|
(100,000
|
)
|
(120,000
|
)
|
(120,000
|
)
|
||||||
Securities available for sale:
|
||||||||||||
Gross realized gains
|
221,817
|
180,602
|
349,207
|
|||||||||
Gross realized losses
|
(61,242
|
)
|
(66,850
|
)
|
(55,222
|
)
|
||||||
Other than temporary impairments
|
(170,358
|
)
|
(293,714
|
)
|
(44,240
|
)
|
||||||
Other assets:
|
||||||||||||
Gross realized gains
|
349,252
|
2,067,438
|
1,445,596
|
|||||||||
Gross realized losses
|
(943,648
|
)
|
(84,827
|
)
|
(139,808
|
)
|
||||||
Other than temporary impairments
|
-
|
(191,716
|
)
|
-
|
||||||||
Total
|
$
|
(446,745
|
)
|
$
|
1,795,929
|
$
|
1,753,936
|
2016
|
2015
|
2014
|
||||||||||
Fixed maturity securities
|
$
|
8,972,877
|
$
|
8,168,441
|
$
|
8,229,451
|
||||||
Equity securities
|
270,942
|
269,795
|
212,917
|
|||||||||
Mortgage loans on real estate
|
8,963,105
|
7,696,533
|
7,550,110
|
|||||||||
Real estate
|
10,969,828
|
9,454,567
|
8,433,895
|
|||||||||
Policy loans
|
781,188
|
749,917
|
741,220
|
|||||||||
Insurance assignments
|
11,876,836
|
8,915,655
|
7,324,964
|
|||||||||
Other investments
|
25,122
|
6,533
|
-
|
|||||||||
Short-term investments, principally gains on sale of mortgage loans
|
4,976,180
|
7,594,014
|
5,072,418
|
|||||||||
Gross investment income
|
46,836,078
|
42,855,455
|
37,564,975
|
|||||||||
Investment expenses
|
(9,253,634
|
)
|
(8,847,551
|
)
|
(9,261,235
|
)
|
||||||
Net investment income
|
$
|
37,582,444
|
$
|
34,007,904
|
$
|
28,303,740
|
Net Ending Balance
|
||||||||
December 31
|
||||||||
2016
|
2015
|
|||||||
Arizona
|
$
|
742,259
|
$
|
944,614
|
||||
California
|
5,848,389
|
6,158,253
|
||||||
Colorado
|
364,489
|
553,230
|
||||||
Florida
|
8,327,355
|
9,203,624
|
||||||
Illinois
|
-
|
165,800
|
||||||
Oklahoma
|
46,658
|
99,862
|
||||||
Oregon
|
-
|
120,000
|
||||||
South Carolina
|
-
|
823,872
|
||||||
Texas
|
1,091,188
|
1,198,860
|
||||||
Utah
|
59,485,466
|
62,117,738
|
||||||
Washington
|
286,181
|
286,182
|
||||||
$
|
76,191,985
|
$
|
81,672,035
|
Location
|
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
|
5,522
|
27
|
%
|
|||||
________________ | |||||||||
(1) This asset is included in property and equipment on the Consolidated Balance Sheet
|
Allowance for Credit Losses and Recorded Investment in Mortgage Loans
|
||||||||||||||||
Years Ended December 31
|
||||||||||||||||
Commercial
|
Residential
|
Residential Construction
|
Total
|
|||||||||||||
2016
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance
|
$
|
187,129
|
$
|
1,560,877
|
$
|
100,114
|
$
|
1,848,120
|
||||||||
Charge-offs
|
-
|
(420,135
|
)
|
-
|
(420,135
|
)
|
||||||||||
Provision
|
-
|
320,798
|
-
|
320,798
|
||||||||||||
Ending balance
|
$
|
187,129
|
$
|
1,461,540
|
$
|
100,114
|
$
|
1,748,783
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
187,470
|
$
|
-
|
$
|
187,470
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,274,070
|
$
|
100,114
|
$
|
1,561,313
|
||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
51,536,622
|
$
|
58,593,622
|
$
|
40,800,117
|
$
|
150,930,361
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
202,992
|
$
|
2,916,538
|
$
|
64,895
|
$
|
3,184,425
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
51,333,630
|
$
|
55,677,084
|
$
|
40,735,222
|
$
|
147,745,936
|
||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
2015
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance
|
$
|
187,129
|
$
|
1,715,812
|
$
|
100,114
|
$
|
2,003,055
|
||||||||
Charge-offs
|
-
|
(123,942
|
)
|
-
|
(123,942
|
)
|
||||||||||
Provision
|
-
|
(30,993
|
)
|
-
|
(30,993
|
)
|
||||||||||
Ending balance
|
$
|
187,129
|
$
|
1,560,877
|
$
|
100,114
|
$
|
1,848,120
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
305,962
|
$
|
-
|
$
|
305,962
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,254,915
|
$
|
100,114
|
$
|
1,542,158
|
||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
33,522,978
|
$
|
46,020,490
|
$
|
34,851,557
|
$
|
114,395,025
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
3,087,161
|
$
|
93,269
|
$
|
3,180,430
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
33,522,978
|
$
|
42,933,329
|
$
|
34,758,287
|
$
|
111,214,594
|
||||||||
Ending balance: loans acquired with deteriorated credit quality
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Age Analysis of Past Due Mortgage Loans
Years Ended December 31
|
||||||||||||||||||||||||||||||||||||
30-59 Days
Past
Due
|
60-89 Days
Past
Due
|
Greater
Than 90
Days 1)
|
In Process
of
Foreclosure 1)
|
Total
Past
Due
|
Current
|
Total
Mortgage
Loans
|
Allowance
for
Loan
Losses
|
Net
Mortgage
Loans
|
||||||||||||||||||||||||||||
2016
|
||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
202,992
|
$
|
202,992
|
$
|
51,333,630
|
$
|
51,536,622
|
$
|
(187,129
|
)
|
$
|
51,349,493
|
|||||||||||||||||
Residential
|
964,960
|
996,779
|
1,290,355
|
1,626,183
|
4,878,277
|
53,715,345
|
58,593,622
|
(1,461,540
|
)
|
57,132,082
|
||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
64,895
|
-
|
64,895
|
40,735,222
|
40,800,117
|
(100,114
|
)
|
40,700,003
|
||||||||||||||||||||||||||
Total
|
$
|
964,960
|
$
|
996,779
|
$
|
1,355,250
|
$
|
1,829,175
|
$
|
5,146,164
|
$
|
145,784,197
|
$
|
150,930,361
|
$
|
(1,748,783
|
)
|
$
|
149,181,578
|
|||||||||||||||||
2015
|
||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
33,522,978
|
$
|
33,522,978
|
$
|
(187,129
|
)
|
$
|
33,335,849
|
|||||||||||||||||
Residential
|
1,162,102
|
884,143
|
2,212,993
|
3,087,161
|
7,346,399
|
38,674,091
|
46,020,490
|
(1,560,877
|
)
|
44,459,613
|
||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
64,895
|
93,269
|
158,164
|
34,693,393
|
34,851,557
|
(100,114
|
)
|
34,751,443
|
||||||||||||||||||||||||||
Total
|
$
|
1,162,102
|
$
|
884,143
|
$
|
2,277,888
|
$
|
3,180,430
|
$
|
7,504,563
|
$
|
106,890,462
|
$
|
114,395,025
|
$
|
(1,848,120
|
)
|
$
|
112,546,905
|
|||||||||||||||||
1) There was not any interest income recognized on loans past due greater than 90 days or in foreclosure.
|
Impaired Loans
|
||||||||||||||||||||
Years Ended December 31
|
||||||||||||||||||||
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||||||
2016
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
202,992
|
$
|
202,992
|
$
|
-
|
$
|
202,992
|
$
|
-
|
||||||||||
Residential
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Residential construction
|
64,895
|
64,895
|
-
|
64,895
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
2,916,538
|
2,916,538
|
374,501
|
2,916,538
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
202,992
|
$
|
202,992
|
$
|
-
|
$
|
202,992
|
$
|
-
|
||||||||||
Residential
|
2,916,538
|
2,916,538
|
374,501
|
2,916,538
|
-
|
|||||||||||||||
Residential construction
|
64,895
|
64,895
|
-
|
64,895
|
-
|
|||||||||||||||
2015
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Residential construction
|
93,269
|
93,269
|
-
|
93,269
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
3,087,161
|
3,087,161
|
305,962
|
3,087,161
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
3,087,161
|
3,087,161
|
305,962
|
3,087,161
|
-
|
|||||||||||||||
Residential construction
|
93,269
|
93,269
|
-
|
93,269
|
-
|
Mortgage Loan Credit Exposure
|
||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity
|
||||||||||||||||||||||||||||||||
Years Ended December 31
|
||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Residential Construction
|
Total
|
|||||||||||||||||||||||||||||
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||||||||||||||
Performing
|
$
|
51,333,630
|
$
|
33,522,978
|
$
|
55,677,084
|
$
|
40,720,336
|
$
|
40,735,222
|
$
|
34,693,393
|
$
|
147,745,936
|
$
|
108,936,707
|
||||||||||||||||
Non-performing
|
202,992
|
-
|
2,916,538
|
5,300,154
|
64,895
|
158,164
|
3,184,425
|
5,458,318
|
||||||||||||||||||||||||
Total
|
$
|
51,536,622
|
$
|
33,522,978
|
$
|
58,593,622
|
$
|
46,020,490
|
$
|
40,800,117
|
$
|
34,851,557
|
$
|
150,930,361
|
$
|
114,395,025
|
Mortgage Loans on
Non-accrual Status
|
||||||||
Years Ended December 31
|
||||||||
2016
|
2015
|
|||||||
Commercial
|
$
|
202,992
|
$
|
-
|
||||
Residential
|
2,916,538
|
5,300,154
|
||||||
Residential construction
|
64,895
|
158,164
|
||||||
Total
|
$
|
3,184,425
|
$
|
5,458,318
|
Principal
|
Principal
|
Principal
|
||||||||||||||
Amounts
|
Amounts
|
Amounts
|
||||||||||||||
Due in
|
Due in
|
Due
|
||||||||||||||
Total
|
2017
|
2018-2021
|
Thereafter
|
|||||||||||||
Residential
|
$
|
58,593,622
|
$
|
6,115,360
|
$
|
11,916,728
|
$
|
40,561,534
|
||||||||
Residential Construction
|
40,800,117
|
32,504,143
|
8,295,974
|
-
|
||||||||||||
Commercial
|
51,536,622
|
26,697,442
|
20,682,311
|
4,156,869
|
||||||||||||
Total
|
$
|
150,930,361
|
$
|
65,316,945
|
$
|
40,895,013
|
$
|
44,718,403
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Balance, beginning of period
|
$
|
2,805,900
|
$
|
1,718,150
|
||||
Provisions for losses
|
4,688,754
|
6,295,043
|
||||||
Charge-offs and settlements
|
(6,866,921
|
)
|
(5,207,293
|
)
|
||||
Balance, at December 31
|
$
|
627,733
|
$
|
2,805,900
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Trade contracts
|
$
|
15,978,930
|
$
|
12,855,595
|
||||
Receivables from sales agents
|
4,016,393
|
3,280,423
|
||||||
Held in Escrow – Southern Security
|
107,388
|
245,088
|
||||||
Other
|
1,122,890
|
1,345,690
|
||||||
Total receivables
|
21,225,601
|
17,726,796
|
||||||
Allowance for doubtful accounts
|
(2,355,482
|
)
|
(1,700,696
|
)
|
||||
Net receivables
|
$
|
18,870,119
|
$
|
16,026,100
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Balance at beginning of year
|
$
|
8,743,773
|
$
|
8,547,627
|
||||
Value of business acquired
|
-
|
1,473,272
|
||||||
Imputed interest at 7%
|
45,762
|
590,108
|
||||||
Amortization
|
(1,219,235
|
)
|
(1,867,234
|
)
|
||||
Net amortization charged to income
|
(1,173,473
|
)
|
(1,277,126
|
)
|
||||
Balance at end of year
|
$
|
7,570,300
|
$
|
8,743,773
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Balance at beginning of year
|
$
|
2,765,570
|
$
|
2,765,570
|
||||
Goodwill acquired
|
-
|
-
|
||||||
Other
|
-
|
-
|
||||||
Balance at end of year
|
$
|
2,765,570
|
$
|
2,765,570
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Land and buildings
|
$
|
9,155,665
|
$
|
13,126,195
|
||||
Furniture and equipment
|
19,548,521
|
16,613,862
|
||||||
28,704,186
|
29,740,057
|
|||||||
Less accumulated depreciation
|
(19,912,664
|
)
|
(18,298,397
|
)
|
||||
Total
|
$
|
8,791,522
|
$
|
11,441,660
|
December 31
|
||||||||
2016
|
2015
|
|||||||
1.65% above the monthly LIBOR rate (0.625% at December 31, 2016) note payable in monthly installments of $13,741 including principal and interest, collateralized by real property with a book value of approximately $498,000, due November 2017.
|
$
|
147,346
|
$
|
312,240
|
||||
Mark to market of interest rate swaps (discussed below) adjustment
|
3,308
|
13,947
|
||||||
6.50% note payable in monthly installments of $1,702 including principal and interest, collateralized by real property with a book value of approximately $278,000, due October 2041.
|
251,072
|
-
|
||||||
2.25% above the monthly LIBOR rate (0.625% at December 31, 2016) plus 1/16th of the monthly LIBOR rate note payable in monthly principal payments of $13,167 plus interest, collateralized by real property with a book value of approximately $4,564,000, due October 2021.
|
3,133,787
|
3,260,266
|
||||||
3.85% note payable in monthly installments of $86,059 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due January
2018.
|
1,093,349
|
2,062,512
|
||||||
4.27% note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due November 2021.
|
2,904,354
|
-
|
||||||
4.40% note payable in monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,060,000, due January 2026.
|
7,927,526
|
8,135,438
|
||||||
4.329% note payable in monthly installments of $9,775 including principal and interest, collateralized by real property with a book value of approximately $3,048,000, due September 2025.
|
1,992,056
|
2,020,993
|
||||||
2.5% above the monthly LIBOR rate (0.625% at December 31, 2016) plus 1/16th of the monthly LIBOR rate construction loan payable, collateralized by real property with a book value of approximately $31,835,000, due August 2019.
|
8,777,941
|
-
|
||||||
2.60% above 90 day LIBOR rate (0.99789% at December 31, 2016) note payable in monthly installments of approximately $123,800, collateralized by real property with a book value of approximately $35,798,000, due October 2019.
|
27,377,114
|
24,933,346
|
||||||
Other collateralized bank loans payable
|
109,734
|
169,212
|
||||||
Other notes payable
|
961
|
961
|
||||||
Total bank and other loans
|
53,718,548
|
40,908,915
|
||||||
Less current installments
|
2,755,443
|
29,638,052
|
||||||
Bank and other loans, excluding current installments
|
$
|
50,963,105
|
$
|
11,270,863
|
2017
|
$
|
2,755,443
|
||
2018
|
1,539,638
|
|||
2019
|
36,128,905
|
|||
2020
|
1,066,254
|
|||
2021
|
3,436,591
|
|||
Thereafter
|
8,791,717
|
|||
Total
|
$
|
53,718,548
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Trust investments, at market value
|
$
|
4,131,885
|
$
|
2,848,759
|
||||
Note receivables from Cottonwood Mortuary
|
||||||||
Singing Hills Cemetery and Memorial Estates eliminated in consolidation
|
1,725,714
|
1,780,618
|
||||||
Total trust assets
|
5,857,599
|
4,629,377
|
||||||
Cemetery perpetual care obligation
|
(3,598,580
|
)
|
(3,465,771
|
)
|
||||
Fair value of trust assets in excess of trust obligations
|
$
|
2,259,019
|
$
|
1,163,606
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Cash and cash equivalents
|
$
|
8,070,972
|
$
|
7,206,863
|
||||
Mutual funds
|
645,241
|
596,994
|
||||||
Fixed maturity securities
|
8,775
|
8,775
|
||||||
Equity securities
|
91,362
|
89,450
|
||||||
Participating in mortgage loans with Security National Life
|
1,575,044
|
1,457,720
|
||||||
Total
|
$
|
10,391,394
|
$
|
9,359,802
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Current
|
$
|
(1,511,762
|
)
|
$
|
(215,366
|
)
|
||
Deferred
|
29,416,056
|
25,267,425
|
||||||
Total
|
$
|
27,904,294
|
$
|
25,052,059
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Future policy benefits
|
$
|
(10,243,465
|
)
|
$
|
(8,023,302
|
)
|
||
Loan loss reserve
|
(288,590
|
)
|
(1,163,700
|
)
|
||||
Unearned premium
|
(1,519,722
|
)
|
(1,610,684
|
)
|
||||
Available for sale securities
|
(51,266
|
)
|
(150,984
|
)
|
||||
Net operating loss
|
(1,531,160
|
)
|
(588,537
|
)
|
||||
Deferred compensation
|
(2,225,208
|
)
|
(1,994,927
|
)
|
||||
Deposit obligations
|
(1,033,580
|
)
|
(1,026,984
|
)
|
||||
Other
|
(1,805,260
|
)
|
(2,242,029
|
)
|
||||
Less: Valuation allowance
|
4,262,549
|
5,276,431
|
||||||
Total deferred tax assets
|
(14,435,702
|
)
|
(11,524,716
|
)
|
||||
Liabilities
|
||||||||
Deferred policy acquisition costs
|
18,150,517
|
14,838,604
|
||||||
Basis difference in property and equipment
|
10,749,036
|
9,375,146
|
||||||
Value of business acquired
|
2,573,902
|
2,972,883
|
||||||
Deferred gains
|
9,290,123
|
6,902,888
|
||||||
Trusts
|
1,599,657
|
1,599,657
|
||||||
Tax on unrealized appreciation
|
1,488,523
|
1,102,963
|
||||||
Total deferred tax liabilities
|
43,851,758
|
36,792,141
|
||||||
Net deferred tax liability
|
$
|
29,416,056
|
$
|
25,267,425
|
2016
|
2015
|
2014
|
||||||||||
Current
|
||||||||||||
Federal
|
$
|
1,138,196
|
$
|
2,423,846
|
$
|
1,532,539
|
||||||
State
|
245,764
|
412,175
|
121,124
|
|||||||||
1,383,960
|
2,836,021
|
1,653,663
|
||||||||||
Deferred
|
||||||||||||
Federal
|
4,573,337
|
4,478,974
|
2,827,580
|
|||||||||
State
|
503,562
|
430,953
|
417,420
|
|||||||||
5,076,899
|
4,909,927
|
3,245,000
|
||||||||||
Total
|
$
|
6,460,859
|
$
|
7,745,948
|
$
|
4,898,663
|
Years Ending
|
||||
December 31
|
||||
2017
|
$
|
6,556,093
|
||
2018
|
4,121,399
|
|||
2019
|
2,583,941
|
|||
2020
|
1,151,873
|
|||
2021
|
496,713
|
|||
Total
|
$
|
14,910,019
|
Class A
|
Class C (1)
|
|||||||
Balance at December 31, 2013
|
11,807,287
|
1,330,191
|
||||||
Exercise of stock options
|
54,412
|
-
|
||||||
Stock dividends
|
595,020
|
66,384
|
||||||
Reverse stock split true up
|
-
|
15
|
||||||
Conversion of Class C to Class A
|
2,521
|
(2,521
|
)
|
|||||
Balance at December 31, 2014
|
12,459,240
|
1,394,069
|
||||||
Exercise of stock options
|
23,961
|
241,652
|
||||||
Stock dividends
|
624,483
|
75,335
|
||||||
Conversion of Class C to Class A
|
1,416
|
(1,416
|
)
|
|||||
Balance at December 31, 2015
|
13,109,100
|
1,709,640
|
||||||
Exercise of stock options
|
42,634
|
104,975
|
||||||
Stock dividends
|
657,919
|
96,967
|
||||||
Conversion of Class C to Class A
|
9,353
|
(9,353
|
)
|
|||||
Balance at December 31, 2016
|
13,819,006
|
1,902,229
|
2016
|
2015
|
2014
|
||||||||||
Numerator:
|
||||||||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
||||||
Denominator:
|
||||||||||||
Denominator for basic earnings per share-weighted-average shares
|
14,806,290
|
14,439,274
|
13,893,260
|
|||||||||
Effect of dilutive securities
|
||||||||||||
Employee stock options
|
320,914
|
512,559
|
451,215
|
|||||||||
Dilutive potential common shares
|
320,914
|
512,559
|
451,215
|
|||||||||
Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions
|
15,127,204
|
14,951,833
|
14,344,475
|
|||||||||
Basic earnings per share
|
$
|
0.96
|
$
|
0.93
|
$
|
0.58
|
||||||
Diluted earnings per share
|
$
|
0.94
|
$
|
0.90
|
$
|
0.56
|
Activity of the stock option plans is summarized as follows:
|
||||||||||||||||
Number of
Class A
Shares
|
Weighted
Average
Exercise
Price
|
Number of
Class C
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Outstanding at December 31, 2013
|
405,133
|
$
|
2.41
|
508,657
|
$
|
2.00
|
||||||||||
Adjustment for the effect of stock dividends
|
24,446
|
32,934
|
||||||||||||||
Granted
|
173,500
|
150,000
|
||||||||||||||
Exercised
|
(59,713
|
)
|
-
|
|||||||||||||
Cancelled
|
(30,571
|
)
|
-
|
|||||||||||||
Outstanding at December 31, 2014
|
512,795
|
$
|
3.20
|
691,591
|
$
|
2.54
|
||||||||||
Adjustment for the effect of stock dividends
|
29,335
|
27,497
|
||||||||||||||
Granted
|
133,500
|
100,000
|
||||||||||||||
Exercised
|
(26,850
|
)
|
(241,652
|
)
|
||||||||||||
Cancelled
|
(30,519
|
)
|
-
|
|||||||||||||
Outstanding at December 31, 2015
|
618,261
|
$
|
3.89
|
577,436
|
$
|
3.54
|
||||||||||
Adjustment for the effect of stock dividends
|
35,346
|
26,491
|
||||||||||||||
Granted
|
133,500
|
80,000
|
||||||||||||||
Exercised
|
(42,634
|
)
|
(127,629
|
)
|
||||||||||||
Cancelled
|
(2,500
|
)
|
-
|
|||||||||||||
Outstanding at December 31, 2016
|
741,973
|
$
|
4.33
|
556,298
|
$
|
4.52
|
||||||||||
Exercisable at end of year
|
601,731
|
$
|
3.78
|
472,298
|
$
|
4.02
|
||||||||||
Available options for future grant
|
253,432
|
-
|
||||||||||||||
Weighted average contractual term of options outstanding at December 31, 2016
|
7.37 years
|
2.67 years
|
||||||||||||||
Weighted average contractual term of options exercisable at December 31, 2016
|
6.77 years
|
2.27 years
|
||||||||||||||
Aggregated intrinsic value of options outstanding at December 31, 2016 (1)
|
$
|
1,452,902
|
$
|
1,079,136
|
||||||||||||
Aggregated intrinsic value of options exercisable at December 31, 2016 (1)
|
$
|
1,452,574
|
$
|
1,079,136
|
||||||||||||
____________________ | ||||||||||||||||
(1) The Company used a stock price of $6.19 as of December 31, 2016 to derive intrinsic value.
|
Net Income
|
Capital and Surplus
|
|||||||||||||||||||
2016
|
2015
|
2014
|
2016
|
2015
|
||||||||||||||||
Amounts by insurance subsidiary:
|
||||||||||||||||||||
Security National Life Insurance Company
|
$
|
2,601,408
|
$
|
3,478,338
|
$
|
5,137,208
|
$
|
36,789,358
|
$
|
32,771,066
|
||||||||||
First Guaranty Insurance Company
|
174,562
|
-
|
-
|
4,091,847
|
-
|
|||||||||||||||
Memorial Insurance Company of America
|
460
|
49
|
415
|
1,081,319
|
1,082,059
|
|||||||||||||||
Southern Security Life Insurance Company, Inc.
|
889
|
491
|
467
|
1,592,440
|
1,590,605
|
|||||||||||||||
Trans-Western Life Insurance Company
|
1,203
|
(52
|
)
|
1,304
|
500,333
|
499,130
|
||||||||||||||
Total
|
$
|
2,778,522
|
$
|
3,478,826
|
$
|
5,139,394
|
$
|
44,055,297
|
$
|
35,942,860
|
2016
|
||||||||||||||||||||
Life
|
Cemetery/
|
Intercompany
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From external sources:
|
||||||||||||||||||||
Revenue from customers
|
$
|
66,902,126
|
$
|
12,267,640
|
$
|
184,015,202
|
$
|
-
|
$
|
263,184,968
|
||||||||||
Net investment income
|
28,618,485
|
312,494
|
8,651,465
|
-
|
37,582,444
|
|||||||||||||||
Realized gains (losses) on investments and other assets
|
(277,040
|
)
|
211,429
|
(110,776
|
)
|
-
|
(176,387
|
)
|
||||||||||||
Other than temporary impairments
|
(270,358
|
)
|
-
|
-
|
-
|
(270,358
|
)
|
|||||||||||||
Other revenues
|
632,260
|
88,676
|
6,166,813
|
-
|
6,887,749
|
|||||||||||||||
Intersegment revenues:
|
||||||||||||||||||||
Net investment income
|
7,119,692
|
691,876
|
327,778
|
(8,139,346
|
)
|
-
|
||||||||||||||
Total revenues
|
102,725,165
|
13,572,115
|
199,050,482
|
(8,139,346
|
)
|
307,208,416
|
||||||||||||||
Expenses:
|
||||||||||||||||||||
Death and other policy benefits
|
33,387,380
|
-
|
-
|
-
|
33,387,380
|
|||||||||||||||
Increase in future policy benefits
|
21,476,432
|
-
|
-
|
-
|
21,476,432
|
|||||||||||||||
Amortization of deferred policy and preneed acquisition costs and value of business acquired
|
7,647,097
|
356,078
|
-
|
-
|
8,003,175
|
|||||||||||||||
Depreciation
|
596,827
|
390,362
|
1,195,535
|
-
|
2,182,724
|
|||||||||||||||
General, administrative and other costs:
|
||||||||||||||||||||
Intersegment
|
-
|
148,025
|
219,974
|
(367,999
|
)
|
-
|
||||||||||||||
Provision for loan losses
|
-
|
-
|
4,688,754
|
-
|
4,688,754
|
|||||||||||||||
Costs related to funding mortgage loans
|
-
|
-
|
8,756,791
|
-
|
8,756,791
|
|||||||||||||||
Other
|
29,478,156
|
10,524,535
|
162,858,237
|
1
|
202,860,929
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Intersegment
|
781,078
|
651,046
|
6,339,224
|
(7,771,348
|
)
|
-
|
||||||||||||||
Other
|
1,654,264
|
282,878
|
3,174,726
|
-
|
5,111,868
|
|||||||||||||||
Total benefits and expenses
|
95,021,234
|
12,352,924
|
187,233,241
|
(8,139,346
|
)
|
286,468,053
|
||||||||||||||
Earnings before income taxes
|
$
|
7,703,931
|
$
|
1,219,191
|
$
|
11,817,241
|
$
|
-
|
$
|
20,740,363
|
||||||||||
Income tax expense
|
(1,953,167
|
)
|
-
|
(4,507,692
|
)
|
-
|
(6,460,859
|
)
|
||||||||||||
Net earnings
|
$
|
5,750,764
|
$
|
1,219,191
|
$
|
7,309,549
|
$
|
-
|
$
|
14,279,504
|
||||||||||
Identifiable assets
|
$
|
821,097,220
|
$
|
99,611,263
|
$
|
74,170,647
|
$
|
(140,874,459
|
)
|
$
|
854,004,671
|
|||||||||
Goodwill
|
$
|
2,765,570
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,765,570
|
||||||||||
Expenditures for long-lived assets
|
$
|
532,958
|
$
|
723,445
|
$
|
2,310,108
|
$
|
-
|
$
|
3,566,511
|
2015
|
||||||||||||||||||||
Life
|
Cemetery/
|
Intercompany
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From external sources:
|
||||||||||||||||||||
Revenue from customers
|
$
|
58,883,721
|
$
|
11,502,045
|
$
|
173,252,834
|
$
|
-
|
$
|
243,638,600
|
||||||||||
Net investment income
|
25,297,486
|
450,854
|
8,259,564
|
-
|
34,007,904
|
|||||||||||||||
Realized gains (losses) on investments and other assets
|
2,332,456
|
387,316
|
(318,413
|
)
|
-
|
2,401,359
|
||||||||||||||
Other than temporary impairments
|
(413,714
|
)
|
-
|
(191,716
|
)
|
-
|
(605,430
|
)
|
||||||||||||
Other revenues
|
824,759
|
146,831
|
4,150,217
|
-
|
5,121,807
|
|||||||||||||||
Intersegment revenues:
|
||||||||||||||||||||
Net investment income
|
7,615,338
|
1,155,180
|
326,822
|
(9,097,340
|
)
|
-
|
||||||||||||||
Total revenues
|
94,540,046
|
13,642,226
|
185,479,308
|
(9,097,340
|
)
|
284,564,240
|
||||||||||||||
Expenses:
|
||||||||||||||||||||
Death and other policy benefits
|
33,549,893
|
-
|
-
|
-
|
33,549,893
|
|||||||||||||||
Increase in future policy benefits
|
17,212,001
|
-
|
-
|
-
|
17,212,001
|
|||||||||||||||
Amortization of deferred policy and preneed acquisition costs and value of business acquired
|
5,306,781
|
334,512
|
-
|
-
|
5,641,293
|
|||||||||||||||
Depreciation
|
710,733
|
403,066
|
1,069,697
|
-
|
2,183,496
|
|||||||||||||||
General, administrative and other costs:
|
||||||||||||||||||||
Intersegment
|
-
|
156,777
|
199,244
|
(356,021
|
)
|
-
|
||||||||||||||
Provision for loan losses
|
-
|
-
|
6,295,043
|
-
|
6,295,043
|
|||||||||||||||
Costs related to funding mortgage loans
|
-
|
-
|
8,864,404
|
-
|
8,864,404
|
|||||||||||||||
Other
|
27,416,860
|
10,117,012
|
147,600,822
|
(1
|
)
|
185,134,693
|
||||||||||||||
Interest expense:
|
||||||||||||||||||||
Intersegment
|
726,919
|
1,379,668
|
6,634,731
|
(8,741,318
|
)
|
-
|
||||||||||||||
Other
|
1,151,860
|
337,632
|
2,969,120
|
-
|
4,458,612
|
|||||||||||||||
Total benefits and expenses
|
86,075,047
|
12,728,667
|
173,633,061
|
(9,097,340
|
)
|
263,339,435
|
||||||||||||||
Earnings before income taxes
|
$
|
8,464,999
|
$
|
913,559
|
$
|
11,846,247
|
$
|
-
|
$
|
21,224,805
|
||||||||||
Income tax expense
|
(3,138,929
|
)
|
-
|
(4,607,019
|
)
|
-
|
(7,745,948
|
)
|
||||||||||||
Net earnings
|
$
|
5,326,070
|
$
|
913,559
|
$
|
7,239,228
|
$
|
-
|
$
|
13,478,857
|
||||||||||
Identifiable assets
|
$
|
721,362,741
|
$
|
101,935,898
|
$
|
66,743,342
|
$
|
(140,108,664
|
)
|
$
|
749,933,317
|
|||||||||
Goodwill
|
$
|
2,765,570
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,765,570
|
||||||||||
Expenditures for long-lived assets
|
$
|
3,024,223
|
$
|
154,226
|
$
|
454,241
|
$
|
-
|
$
|
3,632,690
|
2014
|
||||||||||||||||||||
Life
|
Cemetery/
|
Intercompany
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From external sources:
|
||||||||||||||||||||
Revenue from customers
|
$
|
57,037,623
|
$
|
11,426,308
|
$
|
125,109,997
|
$
|
-
|
$
|
193,573,928
|
||||||||||
Net investment income
|
23,008,489
|
275,324
|
5,019,927
|
-
|
28,303,740
|
|||||||||||||||
Realized gains (losses) on investments and other assets
|
1,208,391
|
585,543
|
124,242
|
-
|
1,918,176
|
|||||||||||||||
Other than temporary impairments
|
(164,240
|
)
|
-
|
-
|
-
|
(164,240
|
)
|
|||||||||||||
Other revenues
|
682,682
|
169,464
|
2,894,867
|
-
|
3,747,013
|
|||||||||||||||
Intersegment revenues:
|
||||||||||||||||||||
Net investment income
|
6,128,389
|
1,288,856
|
642,880
|
(8,060,125
|
)
|
-
|
||||||||||||||
Total revenues
|
87,901,334
|
13,745,495
|
133,791,913
|
(8,060,125
|
)
|
227,378,617
|
||||||||||||||
Expenses:
|
||||||||||||||||||||
Death and other policy benefits
|
29,789,964
|
-
|
-
|
-
|
29,789,964
|
|||||||||||||||
Increase in future policy benefits
|
18,060,151
|
-
|
-
|
-
|
18,060,151
|
|||||||||||||||
Amortization of deferred policy and preneed acquisition costs and value of business acquired
|
6,561,589
|
331,389
|
-
|
-
|
6,892,978
|
|||||||||||||||
Depreciation
|
644,510
|
436,390
|
1,096,265
|
-
|
2,177,165
|
|||||||||||||||
General, administrative and other costs:
|
||||||||||||||||||||
Intersegment
|
24,000
|
166,079
|
208,513
|
(398,592
|
)
|
-
|
||||||||||||||
Provision for loan losses
|
-
|
-
|
3,053,403
|
-
|
3,053,403
|
|||||||||||||||
Costs related to funding mortgage loans
|
-
|
-
|
6,877,069
|
-
|
6,877,069
|
|||||||||||||||
Other
|
23,045,928
|
10,245,144
|
111,319,492
|
(2
|
)
|
144,610,562
|
||||||||||||||
Interest expense:
|
||||||||||||||||||||
Intersegment
|
725,354
|
1,481,317
|
5,454,860
|
(7,661,531
|
)
|
-
|
||||||||||||||
Other
|
578,083
|
421,920
|
1,994,426
|
-
|
2,994,429
|
|||||||||||||||
Total benefits and expenses
|
79,429,579
|
13,082,239
|
130,004,028
|
(8,060,125
|
)
|
214,455,721
|
||||||||||||||
Earnings before income taxes
|
$
|
8,471,755
|
$
|
663,256
|
$
|
3,787,885
|
$
|
-
|
$
|
12,922,896
|
||||||||||
Income tax expense
|
(3,427,254
|
)
|
-
|
(1,471,409
|
)
|
-
|
(4,898,663
|
)
|
||||||||||||
Net earnings
|
$
|
5,044,501
|
$
|
663,256
|
$
|
2,316,476
|
$
|
-
|
$
|
8,024,233
|
||||||||||
Identifiable assets
|
$
|
652,348,803
|
$
|
109,114,226
|
$
|
52,349,204
|
$
|
(142,742,671
|
)
|
$
|
671,069,562
|
|||||||||
Goodwill
|
$
|
2,765,570
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,765,570
|
||||||||||
Expenditures for long-lived assets
|
$
|
660,830
|
$
|
121,677
|
$
|
737,936
|
$
|
-
|
$
|
1,520,443
|
Level 1:
|
Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.
|
|
Level 2:
|
Financial assets and financial liabilities whose values are based on the following:
|
|
a)
|
Quoted prices for similar assets or liabilities in active markets;
|
|
b)
|
Quoted prices for identical or similar assets or liabilities in non-active markets; or
|
|
c)
|
Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.
|
|
Level 3: | Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect the Company's estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities. |
Total
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
Significant
Observable
Inputs
(Level 2) |
Significant Unobservable
Inputs
(Level 3) |
|||||||||||||
Assets accounted for at fair value on a recurring basis
|
||||||||||||||||
Common stock
|
$
|
10,573,356
|
$
|
10,573,356
|
$
|
-
|
$
|
-
|
||||||||
Total securities available for sale
|
10,573,356
|
10,573,356
|
-
|
-
|
||||||||||||
Restricted assets of cemeteries and mortuaries
|
736,603
|
736,603
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments
|
698,202
|
698,202
|
-
|
-
|
||||||||||||
Derivatives - loan commitments
|
3,389,618
|
-
|
-
|
3,389,618
|
||||||||||||
Other investments
|
1,765,752
|
-
|
-
|
1,765,752
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
17,163,531
|
$
|
12,008,161
|
$
|
-
|
$
|
5,155,370
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Policyholder account balances
|
$
|
(49,421,125
|
)
|
$
|
-
|
$
|
-
|
$
|
(49,421,125
|
)
|
||||||
Future policy benefits - annuities
|
(99,388,662
|
)
|
-
|
-
|
(99,388,662
|
)
|
||||||||||
Derivatives - bank loan interest rate swaps
|
(3,308
|
)
|
-
|
-
|
(3,308
|
)
|
||||||||||
- call options
|
(109,474
|
)
|
(109,474
|
)
|
-
|
-
|
||||||||||
- put options
|
(26,494
|
)
|
(26,494
|
)
|
-
|
-
|
||||||||||
- loan commitments
|
(102,212
|
)
|
-
|
-
|
(102,212
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(149,051,275
|
)
|
$
|
(135,968
|
)
|
$
|
-
|
$
|
(148,915,307
|
)
|
Policyholder
Account
Balances
|
Future
Policy
Benefits -
Annuities
|
Loan
Commitments
|
Bank
Loan
Interest
Rate
Swaps
|
Other
Investments
|
||||||||||||||||
Balance - December 31, 2015
|
$
|
(50,694,953
|
)
|
$
|
(69,398,617
|
)
|
$
|
3,333,091
|
$
|
(13,947
|
)
|
$
|
1,174,769
|
|||||||
Purchases
|
(30,294,480
|
)
|
600,000
|
|||||||||||||||||
Total Losses (Gains):
|
||||||||||||||||||||
Included in earnings
|
1,273,828
|
304,435
|
(45,685
|
)
|
-
|
|||||||||||||||
Included in other
|
||||||||||||||||||||
comprehensive income (loss)
|
-
|
-
|
-
|
10,639
|
(9,017
|
)
|
||||||||||||||
Balance - December 31, 2016
|
$
|
(49,421,125
|
)
|
$
|
(99,388,662
|
)
|
$
|
3,287,406
|
$
|
(3,308
|
)
|
$
|
1,765,752
|
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 nonrecurring basis
|
||||||||||||||||
Mortgage loans on real estate
|
$
|
2,809,925
|
$
|
-
|
$
|
-
|
$
|
2,809,925
|
||||||||
Mortgage servicing rights
|
8,603,154
|
-
|
-
|
8,603,154
|
||||||||||||
Real estate held for investment
|
2,347,820
|
-
|
-
|
2,347,820
|
||||||||||||
Total assets accounted for at fair value on a nonrecurring basis
|
$
|
13,760,899
|
$
|
-
|
$
|
-
|
$
|
13,760,899
|
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
|
||||||||||||||||
Non-redeemable preferred stock Common stock
|
$
|
8,431,090
|
$
|
8,431,090
|
$
|
-
|
$
|
-
|
||||||||
Total securities available for sale
|
8,431,090
|
8,431,090
|
-
|
-
|
||||||||||||
Restricted assets of cemeteries and mortuaries
|
686,444
|
686,444
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments
|
630,854
|
630,854
|
-
|
-
|
||||||||||||
Derivatives - loan commitments
|
3,440,758
|
-
|
-
|
3,440,758
|
||||||||||||
Other investments
|
1,174,769
|
-
|
-
|
1,174,769
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
14,363,915
|
$
|
9,748,388
|
$
|
-
|
$
|
4,615,527
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Policyholder account balances
|
$
|
(50,694,953
|
)
|
$
|
-
|
$
|
-
|
$
|
(50,694,953
|
)
|
||||||
Future policy benefits - annuities
|
(69,398,617
|
)
|
-
|
-
|
(69,398,617
|
)
|
||||||||||
Derivatives - bank loan interest rate swaps
|
(13,947
|
)
|
-
|
-
|
(13,947
|
)
|
||||||||||
- call options
|
(16,342
|
)
|
(16,342
|
)
|
-
|
-
|
||||||||||
- put options
|
(28,829
|
)
|
(28,829
|
)
|
-
|
-
|
||||||||||
- loan commitments
|
(107,667
|
)
|
-
|
-
|
(107,667
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(120,260,355
|
)
|
$
|
(45,171
|
)
|
$
|
-
|
$
|
(120,215,184
|
)
|
Policyholder
Account
Balances
|
Future
Policy
Benefits -
Annuities
|
Loan
Commitments
|
Bank Loan
Interest
Rate Swaps
|
Other
Investments
|
||||||||||||||||
Balance - December 31, 2014
|
$
|
(45,310,699
|
)
|
$
|
(65,540,985
|
)
|
$
|
1,929,851
|
$
|
(31,370
|
)
|
$
|
-
|
|||||||
Purchases
|
1,200,000
|
|||||||||||||||||||
Total Losses (Gains):
|
||||||||||||||||||||
Included in earnings
|
(5,384,254
|
)
|
(3,857,632
|
)
|
1,403,240
|
-
|
||||||||||||||
Included in other comprehensive income (loss)
|
-
|
-
|
-
|
17,423
|
(25,231
|
)
|
||||||||||||||
Balance - December 31, 2015
|
$
|
(50,694,953
|
)
|
$
|
(69,398,617
|
)
|
$
|
3,333,091
|
$
|
(13,947
|
)
|
$
|
1,174,769
|
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total
Estimated
Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Residential
|
$
|
57,132,082
|
$
|
-
|
$
|
-
|
$
|
61,357,393
|
$
|
61,357,393
|
||||||||||
Residential construction
|
40,700,003
|
-
|
-
|
40,700,003
|
40,700,003
|
|||||||||||||||
Commercial
|
51,349,493
|
-
|
-
|
53,299,800
|
53,299,800
|
|||||||||||||||
Mortgage loans, net
|
$
|
149,181,578
|
$
|
-
|
$
|
-
|
$
|
155,357,196
|
$
|
155,357,196
|
||||||||||
Policy loans
|
6,694,148
|
-
|
-
|
6,694,148
|
6,694,148
|
|||||||||||||||
Insurance assignments, net
|
32,477,246
|
-
|
-
|
32,477,246
|
32,477,246
|
|||||||||||||||
Short-term investments
|
27,560,040
|
-
|
-
|
27,560,040
|
27,560,040
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(53,715,240
|
)
|
$
|
-
|
$
|
-
|
$
|
(53,715,240
|
)
|
$
|
(53,715,240
|
)
|
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total
Estimated
Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Mortgage loans:
|
||||||||||||||||||||
Residential
|
$
|
44,459,613
|
$
|
-
|
$
|
-
|
$
|
47,193,950
|
$
|
47,193,950
|
||||||||||
Residential construction
|
34,751,443
|
-
|
-
|
34,751,443
|
34,751,443
|
|||||||||||||||
Commercial
|
33,335,849
|
-
|
-
|
34,778,136
|
34,778,136
|
|||||||||||||||
Mortgage loans, net
|
$
|
112,546,905
|
$
|
-
|
$
|
-
|
$
|
116,723,529
|
$
|
116,723,529
|
||||||||||
Policy loans
|
6,896,457
|
-
|
-
|
6,896,457
|
6,896,457
|
|||||||||||||||
Insurance assignments, net
|
31,511,195
|
-
|
-
|
31,511,195
|
31,511,195
|
|||||||||||||||
Short-term investments
|
16,915,808
|
-
|
-
|
16,915,808
|
16,915,808
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(40,894,968
|
)
|
$
|
-
|
$
|
-
|
$
|
(40,894,968
|
)
|
$
|
(40,894,968
|
)
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Unrealized gains (losses) on available for-sale securities
|
$
|
996,343
|
$
|
(1,289,508
|
)
|
|||
Reclassification adjustment for net realized gains in net income
|
160,575
|
113,751
|
||||||
Net unrealized gains (losses) before taxes
|
1,156,918
|
(1,175,757
|
)
|
|||||
Tax (expense) benefit
|
(399,228
|
)
|
404,414
|
|||||
Net
|
757,690
|
(771,343
|
)
|
|||||
Potential unrealized gains for derivative bank loans (interest rate swaps) before taxes
|
10,639
|
17,423
|
||||||
Tax expense
|
(4,149
|
)
|
(6,795
|
)
|
||||
Net
|
6,490
|
10,628
|
||||||
Other comprehensive income (loss) changes
|
$
|
764,180
|
$
|
(760,715
|
)
|
Beginning
Balance
December 31,
2015
|
Change
for the
period
|
Ending
Balance
December 31,
2016 |
||||||||||
Unrealized net gains (losses) on available-for-sale securities and trust investments
|
$
|
(490,850
|
)
|
$
|
757,690
|
$
|
266,840
|
|||||
Unrealized gains (losses) on derivative bank loan interest rate swaps
|
(8,508
|
)
|
6,490
|
(2,018
|
)
|
|||||||
Other comprehensive income (loss)
|
$
|
(499,358
|
)
|
$
|
764,180
|
$
|
264,822
|
Beginning
Balance
December 31,
2014
|
Change
for the
period
|
Ending
Balance
December 31,
2015 |
||||||||||
Unrealized net gains (losses) on available-for-sale securities and trust investments
|
$
|
280,493
|
$
|
(771,343
|
)
|
$
|
(490,850
|
)
|
||||
Unrealized gains (losses) on derivative bank loan interest rate swaps
|
(19,136
|
)
|
10,628
|
(8,508
|
)
|
|||||||
Other comprehensive income (loss)
|
$
|
261,357
|
$
|
(760,715
|
)
|
$
|
(499,358
|
)
|
Beginning
Balance
December 31,
2013
|
Change
for the
period
|
Ending
Balance
December 31,
2014 |
||||||||||
Unrealized net gains (losses) on available-for-sale securities and trust investments
|
$
|
346,341
|
$
|
(65,848
|
)
|
$
|
280,493
|
|||||
Unrealized gains (losses) on derivative bank loan interest rate swaps
|
(35,569
|
)
|
16,433
|
(19,136
|
)
|
|||||||
Other comprehensive income (loss)
|
$
|
310,772
|
$
|
(49,415
|
)
|
$
|
261,357
|
18) |
Derivative Instruments
|
Fair Value of Derivative Instruments | ||||||||||||||||||||
Asset Derivatives |
Liability Derivatives
|
|||||||||||||||||||
December 31, 2016 |
December 31, 2015
|
December 31, 2016
|
December 31, 2015
|
|||||||||||||||||
Balance
Sheet
Location
|
Fair Value
|
Balance
Sheet
Location
|
Fair Value
|
Balance
Sheet
Location
|
Fair Value
|
Balance
Sheet
Location
|
Fair Value
|
|||||||||||||
Derivatives designated as hedging instruments:
|
||||||||||||||||||||
Loan commitments
|
other assets
|
$
|
3,389,618
|
other assets
|
$
|
3,440,758
|
Other liabilities
|
$
|
102,212
|
Other liabilities
|
$
|
107,667
|
||||||||
Call Options
|
-
|
-
|
Other liabilities
|
109,474
|
Other liabilities
|
16,342
|
||||||||||||||
Put Options
|
-
|
-
|
Other liabilities
|
26,494
|
Other liabilities
|
28,829
|
||||||||||||||
Interest rate swaps
|
-
|
-
|
Bank loans payable
|
3,308
|
Bank loans payable
|
13,947
|
||||||||||||||
Total
|
$
|
3,389,618
|
$
|
3,440,758
|
$
|
241,488
|
$
|
166,785
|
Net Amount Gain (Loss) Recognized in OCI
|
||||||||
Years ended December 31
|
||||||||
Derivative - Cash Flow Hedging Relationships:
|
2016
|
2015
|
||||||
Interest Rate Swaps
|
$
|
10,639
|
$
|
17,423
|
||||
Sub Total
|
10,639
|
17,423
|
||||||
Tax Effect
|
4,149
|
6,795
|
||||||
Total
|
$
|
6,490
|
$
|
10,628
|
Fixed maturity securities, held to maturity
|
$
|
43,878,084
|
||
Equity securities, available for sale
|
646,335
|
|||
Mortgage loans on real estate
|
4,528,582
|
|||
Real estate held for investment
|
528,947
|
|||
Policy loans
|
145,953
|
|||
Short-term investments
|
5,358,403
|
|||
Accrued investment income
|
585,985
|
|||
Cash and cash equivalents
|
2,424,480
|
|||
Receivables
|
73,347
|
|||
Property and equipment
|
21,083
|
|||
Deferred tax asset
|
1,190,862
|
|||
Receivable from reinsurers
|
34,948
|
|||
Other
|
57,768
|
|||
Total assets acquired
|
59,474,777
|
|||
Future life, annuity, and other benefits
|
(52,648,838
|
)
|
||
Accounts payable
|
(6,953
|
)
|
||
Other liabilities and accrued expenses
|
(65,986
|
)
|
||
Total liabilities assumed
|
(52,721,777
|
)
|
||
Fair value of net assets acquired/consideration paid
|
$
|
6,753,000
|
For the Year Ended December 31 (unaudited)
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Total revenues
|
$
|
309,345,285
|
$
|
289,022,238
|
$
|
231,815,114
|
||||||
Net earnings
|
$
|
14,014,530
|
$
|
12,755,125
|
$
|
7,851,883
|
||||||
Net earnings per Class A equivalent common share
|
$
|
0.95
|
$
|
0.88
|
$
|
0.57
|
||||||
Net earnings per Class A equivalent common share assuming dilution
|
$
|
0.93
|
$
|
0.85
|
$
|
0.55
|
Other loans, net
|
$
|
11,866,193
|
||
Property and equipment
|
760,120
|
|||
Goodwill
|
2,373,722
|
|||
Other
|
1,379,158
|
|||
Total assets acquired
|
16,379,193
|
|||
Other liabilities and accrued expenses
|
(1,368,000
|
)
|
||
Total liabilities assumed
|
(1,368,000
|
)
|
||
Fair value of net assets acquired
|
$
|
15,011,193
|
For the Year Ended December 31 (unaudited)
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Total revenues
|
$
|
307,208,416
|
$
|
284,564,240
|
$
|
229,710,596
|
||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,265,990
|
||||||
Net earnings per Class A equivalent common share
|
$
|
0.96
|
$
|
0.93
|
$
|
0.59
|
||||||
Net earnings per Class A equivalent common share assuming dilution
|
$
|
0.94
|
$
|
0.90
|
$
|
0.58
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Amortized cost:
|
||||||||
Balance before valuation allowance at beginning of year
|
$
|
12,679,755
|
$
|
7,834,747
|
||||
MSRs received as proceeds from loan sales
|
8,603,154
|
6,217,551
|
||||||
Amortization
|
(2,410,547
|
)
|
(1,372,543
|
)
|
||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance before valuation allowance at year end
|
$
|
18,872,362
|
$
|
12,679,755
|
||||
Valuation allowance for impairment of MSRs:
|
||||||||
Balance at beginning of year
|
$
|
-
|
$
|
-
|
||||
Additions
|
-
|
-
|
||||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance at year end
|
$
|
-
|
$
|
-
|
||||
Mortgage servicing rights, net
|
$
|
18,872,362
|
$
|
12,679,755
|
||||
Estimated fair value of MSRs at year end
|
$
|
25,496,832
|
$
|
13,897,160
|
Estimated MSR Amortization
|
||||
2017
|
$
|
2,696,052
|
||
2018
|
2,696,052
|
|||
2019
|
2,696,052
|
|||
2020
|
2,696,052
|
|||
2021
|
2,696,052
|
|||
Thereafter
|
5,392,104
|
|||
Total
|
$
|
18,872,364
|
2016
|
2015
|
2014
|
||||||||||
Contractual servicing fees
|
$
|
5,661,699
|
$
|
3,864,454
|
$
|
2,641,234
|
||||||
Late fees
|
203,509
|
120,241
|
123,399
|
|||||||||
Total
|
$
|
5,865,207
|
$
|
3,984,695
|
$
|
2,764,633
|
Years Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Servicing UPB
|
2,720,441,340
|
1,861,835,430
|
1,227,249,143
|
Prepayment
Speeds |
Average
Life(Years) |
Discount
Rate |
||||||||||
December 31, 2016
|
3.77
|
%
|
6.52
|
10.01
|
||||||||
December 31, 2015
|
3.02
|
%
|
5.24
|
10.00
|
||||||||
December 31, 2014
|
2.87
|
%
|
4.96
|
10.00
|
Year Ended December 31, 2015
|
Year Ended December 31, 2014
|
|||||||||||||||||||||||
As Filed
|
Adjustments
|
Restated
|
As Filed
|
Adjustments
|
Restated
|
|||||||||||||||||||
Mortgage fee income
|
$
|
174,323,452
|
$
|
1,403,240
|
$
|
175,726,692
|
$
|
128,696,998
|
$
|
441,943
|
$
|
129,138,941
|
||||||||||||
Total revenues
|
283,161,000
|
1,403,240
|
284,564,240
|
226,936,674
|
441,943
|
227,378,617
|
||||||||||||||||||
Earnings before income taxes
|
19,821,565
|
1,403,240
|
21,224,805
|
12,480,953
|
441,943
|
12,922,896
|
||||||||||||||||||
Income tax expense
|
(7,198,685
|
)
|
(547,263
|
)
|
(7,745,948
|
)
|
(4,726,305
|
)
|
(172,358
|
)
|
(4,898,663
|
)
|
||||||||||||
Net earnings
|
12,622,880
|
855,977
|
13,478,857
|
7,754,648
|
269,585
|
8,024,233
|
||||||||||||||||||
Net earnings per common share (1)
|
$
|
0.87
|
$
|
0.06
|
$
|
0.93
|
$
|
0.56
|
$
|
0.02
|
$
|
0.58
|
||||||||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.84
|
$
|
0.06
|
$
|
0.90
|
$
|
0.54
|
$
|
0.02
|
$
|
0.56
|
||||||||||||
Year Ended December 31, 2015
|
Year Ended December 31, 2014
|
|||||||||||||||||||||||
As Filed
|
Adjustments
|
Restated
|
As Filed
|
Adjustments
|
Restated
|
|||||||||||||||||||
Net earnings
|
$
|
12,622,880
|
$
|
855,977
|
$
|
13,478,857
|
$
|
7,754,648
|
$
|
269,585
|
$
|
8,024,233
|
||||||||||||
Net unrealized gains (losses) on derivative instruments
|
866,605
|
(855,977
|
)
|
10,628
|
286,018
|
(269,585
|
)
|
16,433
|
||||||||||||||||
Other comprehensive gain (loss)
|
95,262
|
(855,977
|
)
|
(760,715
|
)
|
220,170
|
(269,585
|
)
|
(49,415
|
)
|
||||||||||||||
As of December 31, 2015
|
As of December 31, 2014
|
|||||||||||||||||||||||
As Filed
|
Adjustments
|
Restated
|
As Filed
|
Adjustments
|
Restated
|
|||||||||||||||||||
Accumulated other comprehensive income, net of taxes
|
$
|
1,533,828
|
$
|
(2,033,186
|
)
|
$
|
(499,358
|
)
|
$
|
1,438,566
|
$
|
(1,177,209
|
)
|
$
|
261,357
|
|||||||||
Retained earnings
|
52,021,764
|
2,033,186
|
54,054,950
|
44,101,252
|
1,177,209
|
45,278,461
|
||||||||||||||||||
As of January 1, 2014
|
||||||||||||||||||||||||
As Filed
|
Adjustments
|
Restated
|
||||||||||||||||||||||
Accumulated other comprehensive income, net of taxes
|
$
|
1,218,396
|
$
|
(907,624
|
)
|
$
|
310,772
|
|||||||||||||||||
Retained earnings
|
39,666,587
|
907,624
|
40,574,211
|
(1)
|
Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.
|
2016 (2)
|
||||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||||
March 31
(As Filed) |
March 31
(Restated) |
June 30
(As Filed) |
June 30
(Restated) |
September 30
(As Filed) |
September 30
(Restated) |
December 31
|
||||||||||||||||||||||
Revenues
|
$
|
66,014,315
|
$
|
67,355,307
|
$
|
81,739,601
|
$
|
81,312,192
|
$
|
85,239,768
|
$
|
84,393,427
|
$
|
74,147,490
|
||||||||||||||
Benefits and expenses
|
63,163,550
|
63,163,550
|
73,758,739
|
73,758,739
|
77,427,792
|
77,427,792
|
72,117,972
|
|||||||||||||||||||||
Earnings before income taxes
|
2,850,765
|
4,191,757
|
7,980,862
|
7,553,453
|
7,811,976
|
6,965,635
|
2,029,518
|
|||||||||||||||||||||
Income tax expense
|
(1,057,233
|
)
|
(1,580,220
|
)
|
(2,623,575
|
)
|
(2,456,885
|
)
|
(2,520,279
|
)
|
(2,190,206
|
)
|
(233,548
|
)
|
||||||||||||||
Net earnings
|
1,793,532
|
2,611,537
|
5,357,287
|
5,096,568
|
5,291,697
|
4,775,429
|
1,795,970
|
|||||||||||||||||||||
Net earnings per common share (1)
|
$
|
0.12
|
$
|
0.18
|
$
|
0.36
|
$
|
0.35
|
$
|
0.36
|
$
|
0.32
|
$
|
0.12
|
||||||||||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.12
|
$
|
0.17
|
$
|
0.35
|
$
|
0.34
|
$
|
0.31
|
$
|
0.31
|
$
|
0.12
|
2015 (2)
|
||||||||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||||||||
March 31
(As Filed)
|
March 31
(Restated)
|
June 30
(As Filed)
|
June 30
(Restated)
|
September 30
(As Filed)
|
September 30
(Restated)
|
December 31
(As Filed)
|
December 31
(Restated)
|
|||||||||||||||||||||||||
Revenues
|
$
|
64,049,632
|
$
|
66,537,523
|
$
|
76,040,615
|
$
|
77,292,625
|
$
|
75,494,686
|
$
|
74,062,877
|
$
|
67,576,067
|
$
|
66,671,215
|
||||||||||||||||
Benefits and expenses
|
61,051,248
|
61,051,248
|
69,808,663
|
69,808,663
|
67,700,286
|
67,700,286
|
64,779,238
|
64,779,238
|
||||||||||||||||||||||||
Earnings before income taxes
|
2,998,384
|
5,486,275
|
6,231,952
|
7,483,962
|
7,794,400
|
6,362,591
|
2,796,829
|
1,891,977
|
||||||||||||||||||||||||
Income tax expense
|
(1,134,681
|
)
|
(2,104,958
|
)
|
(2,379,673
|
)
|
(2,867,957
|
)
|
(2,904,615
|
)
|
(2,346,210
|
)
|
(779,716
|
)
|
(426,823
|
)
|
||||||||||||||||
Net earnings
|
1,863,703
|
3,381,317
|
3,852,279
|
4,616,005
|
4,889,785
|
4,016,381
|
2,017,113
|
1,465,154
|
||||||||||||||||||||||||
Net earnings per common share (1)
|
$
|
0.13
|
$
|
0.24
|
$
|
0.27
|
$
|
0.32
|
$
|
0.34
|
$
|
0.28
|
$
|
0.14
|
$
|
0.10
|
||||||||||||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.13
|
$
|
0.23
|
$
|
0.26
|
$
|
0.31
|
$
|
0.32
|
$
|
0.26
|
$
|
0.13
|
$
|
0.10
|
2014 (2)
|
||||||||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||||||||
March 31
(As Filed)
|
March 31
(Restated)
|
June 30
(As Filed)
|
June 30
(Restated)
|
September 30
(As Filed)
|
September 30
(Restated)
|
December 31
(As Filed)
|
December 31
(Restated)
|
|||||||||||||||||||||||||
Revenues
|
$
|
45,053,276
|
$
|
45,502,539
|
$
|
59,411,730
|
$
|
60,200,879
|
$
|
61,725,792
|
$
|
61,012,516
|
$
|
60,745,876
|
$
|
60,662,683
|
||||||||||||||||
Benefits and expenses
|
44,887,289
|
44,887,289
|
55,224,633
|
55,224,633
|
58,348,652
|
58,348,652
|
55,995,147
|
55,995,147
|
||||||||||||||||||||||||
Earnings before income taxes
|
165,987
|
615,250
|
4,187,097
|
4,976,246
|
3,377,140
|
2,663,864
|
4,750,729
|
4,667,536
|
||||||||||||||||||||||||
Income tax expense
|
(27,139
|
)
|
(202,352
|
)
|
(1,563,034
|
)
|
(1,870,803
|
)
|
(1,239,318
|
)
|
(961,140
|
)
|
(1,896,814
|
)
|
(1,864,368
|
)
|
||||||||||||||||
Net earnings
|
138,848
|
412,898
|
2,624,063
|
3,105,443
|
2,137,822
|
1,702,724
|
2,853,915
|
2,803,168
|
||||||||||||||||||||||||
Net earnings per common share (1)
|
$
|
0.01
|
$
|
0.03
|
$
|
0.19
|
$
|
0.22
|
$
|
0.15
|
$
|
0.12
|
$
|
0.20
|
$
|
0.20
|
||||||||||||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.01
|
$
|
0.03
|
$
|
0.18
|
$
|
0.22
|
$
|
0.15
|
$
|
0.12
|
$
|
0.20
|
$
|
0.19
|
(1)
|
Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.
|
(2)
|
Earnings restated – See Note 21 of the Notes to Consolidated Financial Statements for additional information regarding immaterial error in accounting for loan commitments.
|
·
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company,
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors of the Company, and
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.
|
Name
|
Age
|
Position with the Company
|
||
Scott M. Quist
|
63
|
Chairman of the Board, President, Chief Executive Officer and Director
|
||
Garrett S. Sill
|
46
|
Chief Financial Officer and Treasurer
|
||
Jason G. Overbaugh
|
42
|
Vice President, National Marketing Director of Life Insurance and Director
|
||
S. Andrew Quist
|
36
|
Vice President, Associate General Counsel and Director
|
||
Jeffrey R. Stephens
|
63
|
General Counsel and Corporate Secretary
|
||
Stephen C. Johnson
|
60
|
Vice President of Mortgage Operations
|
||
Christie Q. Overbaugh
|
68
|
Senior Vice President of Internal Operations
|
||
John L. Cook
|
62
|
Director
|
||
Gilbert A. Fuller
|
76
|
Director
|
||
Robert G. Hunter
|
57
|
Director
|
||
H. Craig Moody
|
65
|
Director
|
||
Norman G. Wilbur
|
78
|
Director
|
Name and
Principal Position |
Year
|
Salary
($) |
Bonus ($)
|
Options Awards
($) |
Non-Equity
Incentive Plan
Compensation
($) |
Change in
Pension
Value
Non-qualified
Deferred
Compensation
Earnings (1)
($) |
All Other
Compensation (2)
($) |
Total
($) |
|||||||||||||||||||||
Scott M. Quist Chairman of the Board, President and Chief Executive Officer
|
2016
|
$
|
463,572
|
$
|
173,000
|
--
|
--
|
--
|
$
|
41,521
|
$
|
678,093
|
|||||||||||||||||
2015
|
462,700
|
123,000
|
--
|
--
|
--
|
43,148
|
628,848
|
||||||||||||||||||||||
2014
|
429,400
|
21,200
|
--
|
--
|
--
|
40,066
|
490,666
|
||||||||||||||||||||||
Garrett S. Sill Chief Financial Officer and Treasurer
|
2016
|
$
|
194,725
|
$
|
19,307
|
--
|
--
|
--
|
$
|
22,800
|
$
|
236,832
|
|||||||||||||||||
2015
|
182,844
|
13,707
|
--
|
--
|
--
|
16,453
|
213,004
|
||||||||||||||||||||||
2014
|
173,903
|
13,250
|
--
|
--
|
--
|
16,180
|
203,333
|
||||||||||||||||||||||
Stephen C. Johnson Vice President of Mortgage Operations
|
2016
|
$
|
238,331
|
$
|
201,682
|
--
|
--
|
--
|
$
|
19,920
|
$
|
459,933
|
|||||||||||||||||
2015
|
197,750
|
117,299
|
--
|
--
|
--
|
25,676
|
340,725
|
||||||||||||||||||||||
2014
|
191,750
|
68,626
|
--
|
--
|
--
|
24,701
|
285,077
|
||||||||||||||||||||||
S. Andrew Quist Vice President and Associate General Counsel
|
2016
|
$
|
192,292
|
$
|
9,625
|
--
|
--
|
--
|
$
|
23,953
|
$
|
225,870
|
|||||||||||||||||
2015
|
178,240
|
38,925
|
--
|
--
|
--
|
22,426
|
239,591
|
||||||||||||||||||||||
2014
|
166,388
|
54,325
|
--
|
--
|
--
|
21,771
|
242,484
|
||||||||||||||||||||||
Jeffrey R. Stephens General Counsel and Corporate Secretary
|
2016
|
$
|
177,750
|
$
|
12,900
|
--
|
--
|
--
|
$
|
23,743
|
$
|
214,393
|
|||||||||||||||||
2015
|
171,792
|
12,600
|
--
|
--
|
--
|
22,089
|
206,481
|
||||||||||||||||||||||
2014
|
167,957
|
12,350
|
--
|
--
|
--
|
19,788
|
200,095
|
(1)
|
The amounts indicated under "Change in Pension Value and Non-qualified Deferred Compensation Earnings" consist of amounts contributed by the Company into a trust for the benefit of the Named Executive Officers under the Company's Deferred Compensation Plan.
|
(2)
|
The amounts indicated under "All Other Compensation" consist of the following amounts paid by the Company for the benefit of the Named Executive Officers:
|
a)
|
payments related to the operation of automobiles were for Scott M. Quist ($7,200 for each of the years 2016, 2015 and 2014); and Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($-0- for each of the years 2016, 2015 and 2014). However, such payments do not include the furnishing of an automobile by the Company to Scott M. Quist, nor the payment of insurance and property taxes with respect to the automobiles operated by the such executive officers;
|
b)
|
group life insurance premiums paid by the Company to a group life insurance plan for Scott M. Quist, Stephen C. Johnson, Garrett S. Sill, S. Andrew Quist, and Jeffrey R. Stephens ($178 for 2016, $183 for 2015, and $191 for 2014);
|
c)
|
life insurance premiums paid by the Company for the benefit of Scott M. Quist ($12,390 for each of the years 2016, 2015 and 2014); and Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($-0- for each of the years 2016, 2015 and 2014);
|
d)
|
medical insurance premiums paid by the Company to a medical insurance plan: Scott M. Quist ($10,902 for 2016, $9,792 for 2015, and $9,625 for 2014); Garrett S. Sill ($13,447 for 2016, $7,369 for 2015, and $7,243 for 2014); Stephen C. Johnson ($8,691 for 2016, $14,091 for 2015, and $13,850 for 2014); S. Andrew Quist ($15,688 for 2016, $14,091 for 2015, and $13,154 for 2014); and Jeffrey R. Stephens ($15,688 for 2016, $14,091 for 2015, and $11,725 for 2014);
|
e)
|
long term disability insurance paid by the Company to a provider of such insurance: Scott M. Quist ($251 for 2016, $2,983 for 2015 and $260 for 2014); and Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($251 for 2016, $439 for 2015 and $260 for 2014);
|
f)
|
contributions to defined contribution plans paid by the Company: Scott M. Quist ($10,600 for 2016, 10,600 for 2015, and $10,400 for 2014); Garrett S. Sill ($8,561 for 2016, $7,862 for 2015, and $7,486 for 2014); Stephen C. Johnson ($10,600 for 2016, $10,600 for 2015, and $10,400 for 2014); S. Andrew Quist ($7,836 for 2016, $7,713 for 2015, and $7,470 for 2014); and Jeffrey R. Stephens ($7,626 for 2016, $7,376 for 2015, and $7,212 for 2014);
|
g)
|
contributions to health savings accounts paid by the Company: Scott M. Quist ($-0- for each of the years 2016, 2015 and 2014); Garrett S. Sill ($363 for 2016, $600 for 2015, and $1,000 for 2014); Stephen C. Johnson ($200 for 2016, $363 for 2015, and $-0- for 2014); S. Andrew Quist ($-0- for each of the years 2016, 2015 and 2014); and Jeffrey R. Stephens ($-0- for 2016, $-0- for 2015, and $400 for 2014)
|
Name of Executive Officer
|
Year
|
Perks
and Other
Personal
Benefits
|
Tax
Reimburse-
ments
|
Discounted
Securities
Purchases
|
Payments/
Accruals on Termination
Plans
|
Registrant Contributions to Defined
Contribution
Plans
|
Insurance
Premiums
|
Dividends
or Earnings
1 on Stock or
Option
Awards
|
Other (1)
|
||||||||||||||||||||||||||
Scott M. Quist
|
2016 |
$
|
7,200
|
-
|
-
|
-
|
$
|
10,600
|
$
|
23,721
|
-
|
-
|
|||||||||||||||||||||||
|
2015 |
7,200
|
-
|
-
|
-
|
10,600
|
25,348
|
-
|
-
|
||||||||||||||||||||||||||
|
2014 |
7,200
|
-
|
-
|
-
|
10,400
|
22,466
|
-
|
-
|
||||||||||||||||||||||||||
Garrett S. Sill
|
2016 |
$
|
-
|
-
|
-
|
-
|
$
|
8,561
|
$
|
14,239
|
-
|
-
|
|||||||||||||||||||||||
|
2015 |
-
|
-
|
-
|
-
|
7,862
|
8,591
|
-
|
-
|
||||||||||||||||||||||||||
|
2014 |
-
|
-
|
-
|
-
|
7,486
|
8,694
|
-
|
-
|
||||||||||||||||||||||||||
Stephen C. Johnson
|
2016 |
$
|
-
|
-
|
-
|
-
|
$
|
10,600
|
$
|
9,320
|
-
|
-
|
|||||||||||||||||||||||
|
2015 |
-
|
-
|
-
|
-
|
10,600
|
15,075
|
-
|
-
|
||||||||||||||||||||||||||
|
2014 |
-
|
-
|
-
|
-
|
10,400
|
14,302
|
-
|
-
|
||||||||||||||||||||||||||
S. Andrew Quist
|
2016 |
$
|
-
|
-
|
-
|
-
|
$
|
7,836
|
$
|
16,117
|
-
|
-
|
|||||||||||||||||||||||
|
2015 |
-
|
-
|
-
|
-
|
7,713
|
14,713
|
-
|
-
|
||||||||||||||||||||||||||
|
2014 |
-
|
-
|
-
|
-
|
7,470
|
14,301
|
-
|
-
|
||||||||||||||||||||||||||
Jeffrey R. Stephens
|
2016 |
$
|
-
|
-
|
-
|
-
|
$
|
7,626
|
$
|
16,117
|
-
|
-
|
|||||||||||||||||||||||
|
2015 |
-
|
-
|
-
|
-
|
7,376
|
14,713
|
-
|
-
|
||||||||||||||||||||||||||
|
2014 |
-
|
-
|
-
|
-
|
7,212
|
12,576
|
-
|
-
|
Name of |
Estimated Future Payouts Under Equity Incentive Plan Awards
|
All Other
Awards: Number of Securities Underlying
|
Exercise or Base Price of Option
|
Closing Price on Grant Date |
Grant Date Fair Value of
Stock and Option
|
||||||||||||||||||||||||||
Executive
Officer
|
Grant Date
|
Threshold
($) |
Target
($) |
Maximum
($) |
Options
(#)
|
Awards
($/Sh) (2)
|
($/Sh)
(2)
|
Awards
($) |
|||||||||||||||||||||||
Scott M. Quist
|
12/2/16
|
--
|
--
|
--
|
84,000
|
(1
|
)
|
$
|
7.35
|
$
|
6.70
|
$
|
104,160
|
||||||||||||||||||
Garrett S. Sill
|
12/2/16
|
--
|
--
|
--
|
10,500
|
(1
|
)
|
6.68
|
6.70
|
24,238
|
|||||||||||||||||||||
Stephen C. Johnson
|
12/2/16
|
--
|
--
|
--
|
5,250
|
(1
|
)
|
6.68
|
6.70
|
12,119
|
|||||||||||||||||||||
S. Andrew Quist
|
12/2/16
|
--
|
--
|
--
|
21,000
|
(1
|
)
|
6.68
|
6.70
|
48,475
|
|||||||||||||||||||||
Jeffrey R. Stephens
|
12/2/16
|
--
|
--
|
--
|
5,250
|
(1
|
)
|
6.68
|
6.70
|
12,119
|
(1)
|
The stock options have been adjusted for the 5% annual stock dividend declared on December 2, 2016.
|
(2)
|
Prices have been adjusted for the effect of the 5% annual stock dividend declared on December 2, 2016.
|
Option Awards
|
Stock Awards | ||||||||||||||||||||||||||||||||||||
Name of Executive Officer
|
Option
Grant Date
|
Number
of Securities
Underlying
Unexercised
Options
Exercisable (1)
(#)
|
Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)
|
Option
Exercise
Price (2)
($)
|
Option
Expiration
Date
|
Stock
Award
Grant
Date
|
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)
|
Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested
(#)
|
Equity Incentive Plan
Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
($)
|
|||||||||||||||||||||||||||
Scott M. Quist
|
4/13/12 |
127,629
|
(3
|
)
|
--
|
$
|
1.31
|
04/13/17
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||
12/6/13 |
60,775
|
(4
|
)
|
--
|
4.32
|
12/06/18
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
7/2/14 |
57,881
|
(5
|
)
|
--
|
4.05
|
07/02/19
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
12/5/14 |
115,763
|
(6
|
)
|
--
|
4.73
|
12/05/19
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
12/4/15 |
110,250
|
(7
|
)
|
--
|
6.67
|
12/04/20
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
12/2/16 |
--
|
84,000
|
(8
|
)(9)
|
7.35
|
12/02/21
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
Garrett S. Sill
|
12/6/13 |
4,863
|
--
|
$
|
3.95
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
7/2/14 |
4,631
|
--
|
3.69
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/5/14 |
9,261
|
--
|
4.30
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/4/15 |
11,025
|
--
|
6.06
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/2/16 |
--
|
10,500
|
(9
|
)
|
6.68
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
Stephen C. Johnson
|
4/13/12 |
3,829
|
--
|
$
|
1.21
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
12/6/13 |
3,647
|
--
|
3.95
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
7/2/14 |
3,473
|
--
|
3.69
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/5/14 |
6,946
|
--
|
4.30
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/4/15 |
11,025
|
--
|
6.06
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/2/16 |
--
|
5,250
|
(9
|
)
|
6.68
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
S. Andrew Quist
|
12/2/11 |
20,102
|
--
|
$
|
0.96
|
12/02/21
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
4/13/12 |
19,145
|
--
|
1.21
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/6/13 |
12,155
|
--
|
3.95
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
7/2/14 |
11,576
|
--
|
3.69
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/5/14 |
23,153
|
--
|
4.30
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/4/15 |
22,050
|
--
|
6.06
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/2/16 |
--
|
21,000
|
(9
|
)
|
6.68
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
Jeffrey R. Stephens
|
4/13/12 |
3,191
|
--
|
$
|
1.21
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||
12/6/13 |
3,039
|
--
|
3.95
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
|
7/2/14 |
2,894
|
--
|
3.69
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||||||||||
12/5/14 |
5,789
|
--
|
4.30
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/4/15 |
5,513
|
--
|
6.06
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||||||||
12/2/16 |
--
|
5,250
|
(9
|
)
|
6.68
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
_________ | |
(1)
|
Except for options granted to Scott M. Quist, which have a five year term, such grants have ten year terms. The vesting of any unvested shares is subject to the recipient's continuous employment. This reflects the equivalent of Class A common shares.
|
(2)
|
Exercise prices have been adjusted for the effect of annual stock dividends.
|
(3)
|
On April 13, 2012, Scott Quist was granted stock options to purchase 100,000 shares of Class A common stock at an exercise price of $1.31 per share or 100,000 shares of Class C common stock at an exercise price of $1.31 per share, or any combination thereof.
|
(4)
|
On December 6, 2013, Scott Quist was granted stock options to purchase 50,000 shares of Class A common stock at an exercise price of $4.32 per share or 50,000 shares of Class C common stock at an exercise price of $4.32 per share, or any combination thereof.
|
(5)
|
On July 2, 2014, Scott Quist was granted stock options to purchase 50,000 shares of Class A common stock at an exercise price of $4.05 per share or 50,000 shares of Class C common stock at an exercise price of $4.05 per share, or any combination thereof.
|
(6)
|
On December 5, 2014, Scott Quist was granted stock options to purchase 100,000 shares of Class A common stock at an exercise price of $4.30 per share or 100,000 shares of Class C common stock at an exercise price of $4.30 per share, or any combination thereof.
|
(7)
|
On December 4, 2015, Scott Quist was granted stock options to purchase 100,000 shares of Class A common stock at an exercise price of $6.67 per share or 100,000 shares of Class C common stock at an exercise price of $6.67 per share, or any combination thereof.
|
(8)
|
On December 2, 2016, Scott Quist was granted stock options to purchase 80,000 shares of Class A common stock at an exercise price of $6.68 per share or 80,000 shares of Class C common stock at an exercise price of $6.68 per share, or any combination thereof.
|
(9)
|
Stock options vest at the rate of 25% of the total number of shares subject to the options on March 2, 2017 and 25% of the total number of shares on the last day of each three month period thereafter.
|
Grant Date
|
Vesting
|
|
12/02/11
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
4/13/12
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/06/13
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
07/02/14
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/05/14
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/04/15
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/02/16
|
These options vest 25% per quarter over a one year period after the grant date.
|
Option Awards
|
Stock Awards
|
|||||||||||||||
Number of
Shares
Acquired
on Exercise
|
Value
Realized
on Exercise
|
Number of
Shares
Acquired
on Vesting
|
Value
Realized on
Vesting
|
|||||||||||||
Name of Executive Officer
|
(#)
|
|
($)
|
(#)
|
|
($)
|
||||||||||
Scott M. Quist
|
104,975
|
$
|
544,820
|
--
|
--
|
|||||||||||
Garrett S. Sill
|
--
|
--
|
--
|
--
|
||||||||||||
Stephen C. Johnson
|
--
|
--
|
--
|
--
|
||||||||||||
S. Andrew Quist
|
--
|
--
|
--
|
--
|
||||||||||||
Jeffrey R. Stephens
|
--
|
--
|
--
|
--
|
Name of
Executive Officer |
Plan Name
|
Number of Years
Credited Service
(#) |
Present Value of
Accumulated Benefit
($) |
Payments
During Last
Fiscal Year
($) |
Scott M. Quist
|
None
|
--
|
--
|
--
|
Garrett S. Sill
|
None
|
--
|
--
|
--
|
Stephen C. Johnson
|
None
|
--
|
--
|
--
|
S. Andrew Quist
|
None
|
--
|
--
|
--
|
Jeffrey R.Stephens
|
None
|
--
|
--
|
--
|
·
|
All compensation plans previously approved by security holders; and
|
·
|
All compensation plans not previously approved by security holders.
|
[1]
This reflects the the 2003 Stock Option Plan (the "2003 Plan"), the 2006 Director Stock Option Plan (the "2006 Director Plan"), the 2013 Stock Option Plan (the "2013 Plan") and the 2014 Director Stock Option Plan (the "2014 Director Plan"). The 2003 Plan was approved by stockholders at the annual stockholders meeting held on July 11, 2003, which reserved 500,000 shares of Class A common stock and 100,000 shares of Class C common stock for issuance thereunder. The 2006 Director Plan was approved by stockholders at the annual stockholders meeting held on December 7, 2006, which reserved 100,000 shares of Class A common stock for issuance thereunder. The 2013 Plan was approved by stockholders at the annual stockholders meeting held on July 12, 2013, which reserved 450,000 shares of Class A common stock of which 150,000 shares of Class A common stock could be issued in place of up to 150,000 shares of Class C common stock for issuance thereunder. As a result of the stockholder approval of the 2013 Plan, the Company terminated the 2003 Plan. The 2014 Director Plan was approved by stockholders at the annual stockholders meeting held on July 2, 2014, which reserved 150,000 shares of Class A common stock for issuance thereunder. As a result of the stockholder approval of the 2014 Director Plan, the Company terminated the 2006 Director Plan.
|
[2]
The weighted average exercise prices reflect solely the shares of Class A common stock that will be issued upon exercise of outstanding options.
|
[3]
This number includes 177,438 shares of Class A common stock available for future issuance under the 2013 Plan, and 75,994 shares of Class A common stock available for future issuance under the 2014 Director Plan.
|
Name
|
Fees
Earned or
Paid in Cash
($) |
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity
Incentive
Plan
Compensation
($)
|
Change in Pension Value and Nonqualified
Deferred Compensation
Earnings
|
All Other Compensation
($)
|
Total
($) |
|||||||||||||||||||||
John L. Cook (1)
|
$
|
21,600
|
--
|
$
|
14,647
|
--
|
--
|
--
|
$
|
36,247
|
||||||||||||||||||
Robert G. Hunter (2)
|
21,600
|
--
|
14,647
|
--
|
--
|
--
|
36,247
|
|||||||||||||||||||||
Gilbert A. Fuller (3)
|
23,850
|
--
|
14,647
|
--
|
--
|
--
|
38,497
|
|||||||||||||||||||||
H. Craig Moody (4)
|
23,850
|
--
|
14,647
|
--
|
--
|
--
|
38,497
|
|||||||||||||||||||||
Norman G. Wilbur (5)
|
23,850
|
--
|
14,647
|
--
|
--
|
--
|
38,497
|
(1)
|
Mr. Cook has options to purchase 26,964 shares of the Company's Class A common stock.
|
(2)
|
Dr. Hunter has options to purchase 74,794 shares of the Company's Class A common stock.
|
(3)
|
Mr. Fuller has options to purchase 28,241 shares of the Company's Class A common stock.
|
(4)
|
Mr. Moody has options to purchase 74,794 shares of the Company's Class A common stock.
|
(5)
|
Mr. Wilbur has options to purchase 25,091 shares of the Company's Class A common stock.
|
Executive
|
Registrant
|
Aggregate
|
Aggregate
|
Aggregate
|
||||||||||||||||
Contributions
|
Contributions
|
Earnings
|
Withdrawals
|
Balance
|
||||||||||||||||
In Last FY
|
In Last FY
|
in last FY
|
Distributions
|
at last FYE
|
||||||||||||||||
Name
|
($)
|
($)
|
($)
|
($)
|
($)
|
|||||||||||||||
Scott M. Quist
|
--
|
--
|
--
|
--
|
$
|
543,573
|
||||||||||||||
Garrett S. Sill
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Stephen C. Johnson
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
S. Andrew Quist
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Jeffrey R. Stephens
|
--
|
--
|
--
|
--
|
--
|
Class A
Common Stock |
Class C
Common Stock |
Class A and
Class C Common Stock |
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
Beneficially
|
of
|
Beneficially
|
of
|
Beneficially
|
of
|
|||||||||||||||||||
Name and Address
(1)
|
Owned
|
Class
|
Owned
|
Class
|
Owned
|
Class
|
||||||||||||||||||
George R. and Shirley C. Quist Family Partnership, Ltd. (2)
|
1,531,806
|
11.6
|
%
|
603,126
|
31.7
|
%
|
2,134,932
|
14.2
|
%
|
|||||||||||||||
Scott M. Quist
(3)(5)(6)(7)(8)
|
385,106
|
2.9
|
%
|
1,446,437
|
60.4
|
%
|
1,831,543
|
11.8
|
%
|
|||||||||||||||
401(k) Retirement Savings Plan
(4)
|
1,825,303
|
13.9
|
%
|
-
|
-
|
1,825,303
|
12.1
|
%
|
||||||||||||||||
Jordan Capital Partners, L.P. (9)
|
1,216,899
|
9.2
|
%
|
-
|
-
|
1,216,899
|
8.1
|
%
|
||||||||||||||||
Employee Stock Ownership Plan (ESOP) (10)
|
522,384
|
4.0
|
%
|
278,904
|
14.7
|
%
|
801,288
|
5.3
|
%
|
|||||||||||||||
Non-Qualified Deferred Compensation Plan
(11)
|
798,146
|
6.1
|
%
|
-
|
-
|
798,146
|
5.3
|
%
|
||||||||||||||||
Christie Q. Overbaugh
(12)
|
278,838
|
2.1
|
%
|
23,664
|
1.2
|
%
|
302,502
|
2.0
|
%
|
|||||||||||||||
Jason G. Overbaugh
(13)
|
230,441
|
1.7
|
%
|
-
|
-
|
230,441
|
1.5
|
%
|
||||||||||||||||
Associated Investors
(14)
|
74,883
|
*
|
117,739
|
6.2
|
%
|
192,622
|
1.3
|
%
|
||||||||||||||||
Estate of George R. Quist
|
113,502
|
*
|
70,095
|
3.7
|
%
|
183,597
|
1.2
|
%
|
||||||||||||||||
S. Andrew Quist
(3)(15)
|
168,404
|
1.3
|
%
|
-
|
-
|
168,404
|
1.1
|
%
|
||||||||||||||||
Jeffrey R. Stephens
(16)
|
95,716
|
*
|
-
|
-
|
95,716
|
*
|
||||||||||||||||||
Garrett S. Sill
(6)(7)(17)
|
83,023
|
*
|
-
|
-
|
83,023
|
*
|
||||||||||||||||||
Robert G. Hunter, M.D.
(3)(18)
|
80,769
|
*
|
-
|
-
|
80,769
|
*
|
||||||||||||||||||
H. Craig Moody
(19)
|
78,940
|
*
|
-
|
-
|
78,940
|
*
|
||||||||||||||||||
Stephen C. Johnson(20)
|
54,036
|
*
|
-
|
-
|
54,036
|
*
|
||||||||||||||||||
Gilbert A. Fuller
(21)
|
24,123
|
*
|
-
|
-
|
24,123
|
*
|
||||||||||||||||||
John L. Cook
(22)
|
22,238
|
*
|
-
|
-
|
22,238
|
*
|
||||||||||||||||||
Norman G. Wilbur
(23)
|
22,150
|
*
|
-
|
-
|
22,150
|
*
|
||||||||||||||||||
All directors and executive officers(12 persons)
(3)(5)(6)(7)
|
1,523,784
|
11.1
|
%
|
1,470,101
|
61.4
|
%
|
2,993,885
|
18.6
|
%
|
(1) |
Unless otherwise indicated, the address of each listed stockholder is c/o Security National Financial Corporation, 5300 South 360 West, Suite 250, Salt Lake City, Utah 84123.
|
(2) |
This stock is owned by the George R. and Shirley C. Quist Family Partnership, Ltd., of which Scott M. Quist is the managing general partner and, accordingly, exercises sole voting and investment powers with respect to such shares.
|
(3) |
Does not include 522,384 shares of Class A common stock and 278,904 shares of Class C common stock owned by the Company's Employee Stock Ownership Plan (ESOP), of which Scott M. Quist, S. Andrew Quist and Robert G. Hunter are the trustees and accordingly, exercise shared voting and investment powers with respect to such shares.
|
(4) |
The investment committee of the Company's 401(k) retirement savings plan consists of Scott Quist and Garrett S. Sill and, accordingly, exercise shared voting and investment powers with respect to such shares.
|
(5) |
Does not include 74,883 shares of Class A common stock and 117,739 shares of Class C common stock owned by Associated Investors, a Utah general partnership, of which Scott M. Quist is the managing partner and, accordingly, exercises sole voting and investment powers with respect to such shares.
|
(6) |
Does not include 1,825,303 shares of Class A common stock owned by the Company's 401(k) Retirement Savings Plan, of which Scott M. Quist and Garrett S. Sill are members of the investment committee and, accordingly, exercise shared voting and investment powers with respect to such shares.
|
(7) |
Does not include 798,146 shares of Class A common stock owned by the Company's Deferred Compensation Plan, of which Scott M. Quist and Garrett S. Sill are members of the investment committee and, accordingly, exercise shared voting and investment powers with respect to such shares.
|
(8) |
Includes options to purchase 493,298 shares of Class C common stock granted to Scott M. Quist that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(9) |
Jordan Capital Partners, L.P. and its affiliates and subsidiaries have beneficial ownership of an aggregate of 1,216,899 shares of the Company's Class A common stock. Jordan Capital Partners, L.P. has sole power to vote 1,216,899 shares of the Company's Class A common stock and sole power to dispose of 1,216,899 shares of the Company's common stock. The address for Jordan Capital Partners, L.P. is 6001 River Road, Suite 100, Columbus, Georgia 31904.
|
(10) |
The trustees of the Employee Stock Ownership Plan (ESOP) consist of Scott M. Quist, S. Andrew Quist and Robert G. Hunter who exercise shared voting and investment powers.
|
(11) |
The investment committee of the Company's Non-Qualified Deferred Compensation Plan consists of Scott M. Quist and Garrett S. Sill and, accordingly, exercised shared voting and investment powers with respect to such shares.
|
(12) |
Includes options to purchase 32,473 shares of Class A common stock granted to Ms. Overbaugh that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(13) |
Includes options to purchase 74,184 shares of Class A common stock granted to Mr. Overbaugh that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(14) |
The managing partner of Associated Investors is Scott M. Quist, who exercises sole voting and investment powers.
|
(15) |
Includes options to purchase 113,431 shares of Class A common stock granted to Mr. Andrew Quist that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(16) |
Includes options to purchase 21,738 shares of Class A common stock granted to Mr. Stephens that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(17) |
Includes options to purchase 32,405 shares of Class A common stock granted to Mr. Sill that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(18) |
Includes options to purchase 70,068 shares of Class A common stock granted to Mr. Hunter that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(19) |
Includes options to purchase 70,068 shares of Class A common stock granted to Mr. Moody that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(20) |
Includes options to purchase 30,232 shares of Class A common stock granted to Mr. Johnson that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(21) |
Includes options to purchase 23,515 shares of Class A common stock granted to Mr. Fuller that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(22) |
Includes options to purchase 22,238 shares of Class A common stock granted to Mr. Cook that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
(23) |
Includes options to purchase 20,365 shares of Class A common stock granted to Mr. Wilbur that are currently exercisable, or will become exercisable within 60 days of March 31, 2017.
|
Fee Category
|
2016
|
2015
|
||||||
Audit Fees (1)
|
$
|
345,583
|
$
|
333,531
|
||||
Audit-Related Fees (2)
|
41,200
|
34,000
|
||||||
Tax Fees (3)
|
79,622
|
78,933
|
||||||
All Other Fees (4)
|
-
|
-
|
||||||
$
|
459,205
|
$
|
446,464
|
(1)
|
Audit fees consist of aggregate fees billed for professional services rendered for the audit of the Company's annual financial statements and review of the interim financial statements included in quarterly reports or services that are normally provided by the independent auditor in connection with statutory and regulatory filings for the years ended December 31, 2016 and 2015.
|
(2)
|
Audit related fees consist of aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements and are not reported under "Audit Fees". These fees include review of registration statements, and audits of the Company's ESOP and 401(k) Plans.
|
(3)
|
Tax fees consist of aggregate fees billed for professional services for tax compliance, tax advice, and tax planning.
|
(4)
|
All other fees consist of aggregate fees billed for products and services by the independent auditors, other than those disclosed above.
|
3.1
|
Articles of Amendment to Articles of Incorporation
|
3.2
|
Amended Bylaws (4)
|
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 Employee Stock Ownership Plan (ESOP) and Trust Agreement (1)
|
10.2
|
2003 Stock Option Plan (3)
|
10.3
|
2006 Director Stock Option Plan (6)
|
10.4
|
2013 Amended Stock Option and Other Equity Incentive Awards Plan (12)
|
10.5
|
2014 Director Stock Option Plan (9)
|
10.6
|
Deferred Compensation Plan (2)
|
10.7
|
Employment agreement with Scott M. Quist (11)
|
10.8
|
Indemnification Agreement among SecurityNational Mortgage Company, Lehman Brothers Bank, and Aurora Loan Services (6)
|
10.9
|
Agreement and Plan of Reorganization among Security National Financial Corporation and certain subsidiaries (7)
|
10.10
|
Purchase Agreement among Security National Financial Corporation, SNFC Subsidiary, LLC, American Funeral Financial, LLC, and Hypershop, LLC (8)
|
10.11
|
Stock Purchase Agreement among Security National Financial Corporation, Christi Babb and Jack Madden, Jr. to purchase First Guaranty Insurance Company (13)
|
21
|
Subsidiaries of the Registrant
|
23.1
|
Consent of Eide Bailly LLP (10)
|
23.2
|
Consent of Mackey Price & Mecham (10)
|
31.1
|
Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.xml
|
Instance Document
|
101.xsd
|
Taxonomy Extension Schema Document
|
101.cal
|
Taxonomy Extension Calculation Linkbase Document
|
101.def
|
Taxonomy Extension Definition Linkbase Document
|
101.lab
|
Taxonomy Extension Label Linkbase Document
|
101.pre
|
Taxonomy Extension Presentation Linkbase Document
|
(1)
|
Incorporated by reference from Registration Statement on Form S‑1, as filed on September 29, 1987
|
(2)
|
Incorporated by reference from Annual Report on Form 10-K, as filed on April 3, 2002
|
(3)
|
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September 5, 2003, relating to the Company's Annual Meeting of Stockholders
|
(4)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 14, 2003
|
(5)
|
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September 1, 2007, relating to the Company's Annual Meeting of Stockholders
|
(6)
|
Incorporated by reference from Report on Form 10-K, as filed on September 30, 2009
|
(7)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2013
|
(8)
|
Incorporated by reference from Report on Form 8-K, as filed on September 13, 2014
|
(9)
|
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September 2, 2014, related to Company's Annual Meeting of Stockholders
|
(10)
|
Incorporated by reference from Registration Statement on Form S-8, as filed on October 20, 2015
|
(11)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2015
|
(12)
|
Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016
|
(13)
|
Incorporated by reference from Report on Form 8-K, as filed on July 19, 2016
|
Dated: March 31, 2017
|
By:
|
/s/ Scott M. Quist
|
Scott M. Quist
|
||
Chairman of the Board, President and Chief Executive Officer
|
SIGNATURE
|
TITLE
|
DATE
|
/s/ Scott M. Quist
|
Chairman of the Board, President
|
|
Scott M. Quist
|
and Chief Executive Officer
|
|
(Principal Executive Officer)
|
March 31, 2017
|
|
/s/ Garrett S. Sill
|
Chief Financial Officer and
|
|
Garrett S. Sill
|
Treasurer (Principal Financialand Accounting Officer)
|
March 31, 2017
|
/s/ Jason G. Overbaugh
|
Vice President and Director
|
March 31, 2017
|
Jason G. Overbaugh
|
||
/s/ S. Andrew Quist
|
Vice President and Director
|
March 31, 2017
|
S. Andrew Quist
|
||
/s/ John L. Cook
|
Director
|
March 31, 2017
|
John L. Cook
|
||
/s/ Gilbert A. Fuller
|
Director
|
March 31, 2017
|
Gilbert A. Fuller
|
||
/s/ Robert G. Hunter
|
Director
|
March 31, 2017
|
Robert G. Hunter
|
||
/s/ H. Craig Moody
|
Director
|
March 31, 2017
|
H. Craig Moody
|
||
/s/ Norman G. Wilbur
|
Director
|
March 31, 2017
|
Norman G. Wilbur
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Mortgage loans on real estate
|
$
|
2,300,000
|
$
|
-
|
||||
Cash
|
1,252,653
|
2,054,192
|
||||||
Investment in subsidiaries (equity method)
|
139,791,469
|
125,252,945
|
||||||
Receivables:
|
||||||||
Receivable from affiliates
|
13,028,057
|
11,088,597
|
||||||
Total receivables
|
13,028,057
|
11,088,597
|
||||||
Restricted assets
|
2,612,672
|
-
|
||||||
Property and equipment, at cost, net of accumulated depreciation of $1,663,396 for 2016 and $1,663,396 for 2015
|
-
|
-
|
||||||
Other assets
|
2,803
|
2,803
|
||||||
Total assets
|
$
|
158,987,654
|
$
|
138,398,537
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Liabilities and Stockholders' Equity Liabilities
|
||||||||
Bank and other loans payable:
|
||||||||
Current installments
|
$
|
1,625,974
|
$
|
969,755
|
||||
Long-term
|
2,372,690
|
1,093,718
|
||||||
Advances from affiliated companies
|
9,074,311
|
9,069,338
|
||||||
Other liabilities and accrued expenses
|
672,638
|
976,394
|
||||||
Income taxes
|
17,062,487
|
15,043,107
|
||||||
Total liabilities
|
30,808,100
|
27,152,312
|
||||||
Stockholders' Equity
|
||||||||
Preferred stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class A common stock $2.00 par value; 20,000,000 shares authorized; issued 13,819,006 shares in 2016 and 13,109,100 shares in 2015
|
27,638,012
|
26,218,200
|
||||||
Class B non-voting common stock-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class C convertible common stock, $2.00 par value; 3,000,000 shares authorized; issued 1,902,229 shares in 2016 and 1,709,640 shares in 2015
|
3,804,458
|
3,419,280
|
||||||
Additional paid-in capital
|
34,813,246
|
30,232,582
|
||||||
Accumulated other comprehensive income, net of taxes
|
264,822
|
(499,358
|
)
|
|||||
Retained Earnings
|
63,029,627
|
54,054,950
|
||||||
Treasury stock at cost - 704,122 Class A shares and -0- Class C shares in 2016; 930,546 Class A shares and -0- Class C shares in 2015, held by affiliated companies
|
(1,370,611
|
)
|
(2,179,429
|
)
|
||||
Total stockholders' equity
|
128,179,554
|
111,246,225
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
158,987,654
|
$
|
138,398,537
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Revenue
|
||||||||||||
Net investment income
|
$
|
9,059
|
$
|
86,829
|
$
|
91,748
|
||||||
Fees from affiliates
|
1,119,272
|
976,146
|
1,009,552
|
|||||||||
Other Income
|
23,464
|
-
|
-
|
|||||||||
Total revenue
|
1,151,795
|
1,062,975
|
1,101,300
|
|||||||||
Benefits and Expenses:
|
||||||||||||
General and administrative expenses
|
616,356
|
673,491
|
728,929
|
|||||||||
Interest expense
|
78,950
|
105,614
|
173,362
|
|||||||||
Total benefits and expenses
|
695,306
|
779,105
|
902,291
|
|||||||||
Earnings before income taxes, and earnings of subsidiaries
|
456,489
|
283,870
|
199,009
|
|||||||||
Income tax expense
|
(2,160,187
|
)
|
(3,223,341
|
)
|
(3,519,697
|
)
|
||||||
Equity in earnings of subsidiaries
|
15,983,202
|
16,418,328
|
11,344,921
|
|||||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
14,279,504
|
$
|
13,478,857
|
$
|
8,024,233
|
||||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
-
|
-
|
309
|
|||||||||
Undistributed earnings of affiliates
|
15,983,202
|
16,418,328
|
11,344,921
|
|||||||||
Provision for income taxes
|
2,019,380
|
3,222,819
|
4,817,720
|
|||||||||
Stock based compensation expense
|
343,577
|
387,608
|
391,220
|
|||||||||
Benefit plans funded with treasury stock
|
1,429,962
|
1,197,236
|
899,850
|
|||||||||
Change in assets and liabilities:
|
||||||||||||
Other assets
|
(2
|
)
|
(1
|
)
|
13,296
|
|||||||
Other liabilities
|
(303,754
|
)
|
(94,068
|
)
|
(199,052
|
)
|
||||||
Net cash provided by operating activities
|
33,751,869
|
34,610,779
|
25,292,497
|
|||||||||
-
|
-
|
-
|
||||||||||
Cash flows from investing activities:
|
||||||||||||
Purchases of restricted assets
|
(2,612,672
|
)
|
-
|
-
|
||||||||
Investment in subsidiaries
|
(29,757,546
|
)
|
(31,138,339
|
)
|
(22,209,379
|
)
|
||||||
Mortgage loans made
|
(2,300,000
|
)
|
-
|
-
|
||||||||
Cash paid for purchase of subsidiaries, net of cash acquired
|
-
|
-
|
(3,000,000
|
)
|
||||||||
Net cash used in investing activities
|
(34,670,218
|
)
|
(31,138,339
|
)
|
(25,209,379
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Advances from (to) affiliates
|
(1,934,487
|
)
|
259,513
|
(1,919,022
|
)
|
|||||||
Purchase of treasury stock
|
-
|
(181,539
|
)
|
-
|
||||||||
Proceeds from stock options exercised
|
116,106
|
33,677
|
74,024
|
|||||||||
Repayment of bank and other loans payable
|
(969,163
|
)
|
(1,394,376
|
)
|
(1,812,964
|
)
|
||||||
Proceeds from bank borrowings
|
2,904,354
|
-
|
-
|
|||||||||
Net cash provided by (used in) financing activities
|
116,810
|
(1,282,725
|
)
|
(3,657,962
|
)
|
|||||||
Net change in cash
|
(801,539
|
)
|
2,189,715
|
(3,574,844
|
)
|
|||||||
Cash at beginning of year
|
2,054,192
|
(135,523
|
)
|
3,439,321
|
||||||||
Cash at end of year
|
$
|
1,252,653
|
$
|
2,054,192
|
$
|
(135,523
|
)
|
December 31
|
||||||||
2016
|
2015
|
|||||||
4.27% note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due November 2021.
|
$
|
2,904,354
|
$
|
-
|
||||
3.85% note payable in monthly installments of $86,059 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due January 2018.
|
1,093,349
|
2,062,512
|
||||||
Other notes payable
|
961
|
961
|
||||||
Total bank and other loans
|
3,998,664
|
2,063,473
|
||||||
Less current installments
|
1,625,974
|
969,755
|
||||||
Bank and other loans, excluding current installments
|
$
|
2,372,690
|
$
|
1,093,718
|
2017
|
$
|
1,625,974
|
||
2018
|
554,785
|
|||
2019
|
579,286
|
|||
2020
|
604,729
|
|||
2021
|
633,890
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
3,998,664
|
December 31
|
||||||||
2015
|
2015
|
|||||||
Non-interest bearing advances from affiliates:
|
||||||||
Cemetery and Mortuary subsidiary
|
$
|
1,459,841
|
$
|
1,459,841
|
||||
Life insurance subsidiaries
|
7,614,470
|
7,609,497
|
||||||
$
|
9,074,311
|
$
|
9,069,338
|
Percentage
|
||||||||||||||||||||
Ceded to
|
Assumed
|
of Amount
|
||||||||||||||||||
Direct
|
Other
|
from Other
|
Net
|
Assumed
|
||||||||||||||||
Amount
|
Companies
|
Companies
|
Amount
|
to Net
|
||||||||||||||||
2016
|
||||||||||||||||||||
Life Insurance in force ($000)
|
$
|
1,562,335
|
$
|
60,972
|
$
|
109,746
|
$
|
1,611,109
|
6.8
|
%
|
||||||||||
Premiums:
|
||||||||||||||||||||
Life Insurance
|
$
|
64,002,795
|
$
|
600,412
|
$
|
985,555
|
$
|
64,387,938
|
1.5
|
%
|
||||||||||
Accident and Health Insurance
|
113,063
|
-
|
16
|
113,079
|
0.0
|
%
|
||||||||||||||
Total premiums
|
$
|
64,115,858
|
$
|
600,412
|
$
|
985,571
|
$
|
64,501,017
|
1.5
|
%
|
||||||||||
2015
|
||||||||||||||||||||
Life Insurance in force ($000)
|
$
|
1,393,868
|
$
|
61,655
|
$
|
1,468,935
|
$
|
2,801,148
|
52.4
|
%
|
||||||||||
Premiums:
|
||||||||||||||||||||
Life Insurance
|
$
|
54,978,702
|
$
|
798,483
|
$
|
2,110,480
|
$
|
56,290,699
|
3.7
|
%
|
||||||||||
Accident and Health Insurance
|
119,153
|
-
|
11
|
119,164
|
0.0
|
%
|
||||||||||||||
Total premiums
|
$
|
55,097,855
|
$
|
798,483
|
$
|
2,110,491
|
$
|
56,409,863
|
3.7
|
%
|
||||||||||
2014
|
||||||||||||||||||||
Life Insurance in force ($000)
|
$
|
1,301,156
|
$
|
63,457
|
$
|
1,462,340
|
$
|
2,700,039
|
54.2
|
%
|
||||||||||
Premiums:
|
||||||||||||||||||||
Life Insurance
|
$
|
51,938,012
|
$
|
855,266
|
$
|
1,792,910
|
$
|
52,875,656
|
3.4
|
%
|
||||||||||
Accident and Health Insurance
|
133,002
|
-
|
21
|
133,023
|
0.0
|
%
|
||||||||||||||
Total premiums
|
$
|
52,071,014
|
$
|
855,266
|
$
|
1,792,931
|
$
|
53,008,679
|
3.4
|
%
|
Additions
|
Deductions
|
|||||||||||||||
Balance at
|
Charged to
|
Disposals
|
Balance
|
|||||||||||||
Beginning
|
Costs and
|
and
|
at End of
|
|||||||||||||
of Year
|
Expenses
|
Write-offs
|
Year
|
|||||||||||||
For the Year Ended December 31, 2016
|
||||||||||||||||
Accumulated depreciation on real estate
|
$
|
12,210,346
|
$
|
4,873,478
|
$
|
(945,385
|
)
|
$
|
16,138,439
|
|||||||
Allowance for losses on mortgage loans on real estate and construction loans held for investment
|
1,848,120
|
320,798
|
(420,135
|
)
|
1,748,783
|
|||||||||||
Accumulated depreciation on property and equipment
|
18,298,397
|
2,182,724
|
(568,457
|
)
|
19,912,664
|
|||||||||||
Allowance for doubtful accounts on receivables
|
1,700,696
|
920,354
|
(265,568
|
)
|
2,355,482
|
|||||||||||
Allowance for doubtful accounts on collateral loans
|
906,616
|
610,656
|
(397,642
|
)
|
1,119,630
|
|||||||||||
For the Year Ended December 31, 2015
|
||||||||||||||||
Accumulated depreciation on real estate
|
$
|
10,875,419
|
$
|
2,840,489
|
$
|
(1,505,562
|
)
|
$
|
12,210,346
|
|||||||
Allowance for losses on mortgage loans on real estate and construction loans held for investment
|
2,003,055
|
(30,993
|
)
|
(123,942
|
)
|
1,848,120
|
||||||||||
Accumulated depreciation on property and equipment
|
16,419,343
|
2,183,496
|
(304,442
|
)
|
18,298,397
|
|||||||||||
Allowance for doubtful accounts on receivables
|
1,280,859
|
673,743
|
(253,906
|
)
|
1,700,696
|
|||||||||||
Allowance for doubtful accounts on collateral loans
|
693,413
|
545,372
|
(332,169
|
)
|
906,616
|
|||||||||||
For the Year Ended December 31, 2014
|
||||||||||||||||
Accumulated depreciation on real estate
|
$
|
9,658,599
|
$
|
2,009,521
|
$
|
(792,701
|
)
|
$
|
10,875,419
|
|||||||
Allowance for losses on mortgage loans on real estate and construction loans held for investment
|
1,652,090
|
389,409
|
(38,444
|
)
|
2,003,055
|
|||||||||||
Accumulated depreciation on property and equipment
|
15,260,635
|
2,177,165
|
(1,018,457
|
)
|
16,419,343
|
|||||||||||
Allowance for doubtful accounts on receivables
|
1,248,633
|
403,146
|
(370,920
|
)
|
1,280,859
|
|||||||||||
Allowance for doubtful accounts on collateral loans
|
269,175
|
524,192
|
(99,954
|
)
|
693,413
|
SecurityNational Mortgage Company
|
Security National Life Insurance Company
|
Southern Security Life Insurance Company, Inc.
|
Trans-Western Life Insurance Company
|
Memorial Insurance Company of America
|
Reppond Holding Company
|
First Guaranty Insurance Company
|
C & J Financial, LLC
|
SNFC Subsidiary, LLC
|
American Funeral Financial, LLC
|
FFC Acquisition Co., LLC dba Funeral Funding Center
|
Mortician's Choice, LLC
|
Canadian Funeral Financial, LLC
|
Insuradyne Corporation
|
EverLEND Mortgage Company
|
Marketing Source Center, Inc. dba Security National Travel Services
|
California Memorial Estates, Inc.
|
Cottonwood Mortuary, Inc.
|
Deseret Memorial, Inc.
|
Greer-Wilson Funeral Home, Inc.
|
Holladay Cottonwood Memorial Foundation
|
Holladay Memorial Park, Inc.
|
Memorial Estates, Inc.
|
SN Midway, LLC
|
SN Mapleton, LLC
|
Memorial Mortuary, Inc.
|
Paradise Chapel Funeral Home
|
Dry Creek Property Development, Inc.
|
New York Land Holdings, Inc.
|
Security National Funding Company
|
Select Appraisal Management, Inc.
|
Security National Real Estate Services, Inc.
|
5300 Development LLC
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period covered in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
By:
|
/s/ Scott M. Quist
|
|
Scott M. Quist
|
||
Chairman of the Board, President and
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period covered in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
By:
|
/s/ Garrett S. Sill
|
|
Garrett S. Sill
|
||
Chief Financial Officer and Treasurer
|
||
(Principal Financial Officer)
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
By:
|
/s/ Scott M. Quist
|
Scott M. Quist
|
|
Chairman of the Board, 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; and
|
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
By:
|
/s/ Garrett S. Sill
|
Garrett S. Sill
|
|
Chief Financial Officer and Treasurer
|
|
(Principal Financial Officer)
|