7) Business Segments

3 Months Ended

Sep. 30, 2012

Notes

7) Business Segments

7)    Business Segments

Description of Products and Services by Segment

The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage loan segment consists of loan originations fee income and expenses from the originations of residential and commercial mortgage loans and interest earned and interest expenses from warehousing pre-sold loans before the funds are received from financial institutional investors.

Measurement of Segment Profit or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the form 10K for the year ended December 31, 2011. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

Factors Management Used to Identify the Enterprise’s Reportable Segments

The Company’s reportable segments are business units that offer different products and are managed separately due to the different products and the need to report to the various regulatory jurisdictions.

	Life Insurance	Cemetery/ Mortuary	Mortgage	Reconciling Items	Consolidated
For the Three Months Ended
September 30, 2012
Revenues from external customers	$  16,346,046	$   2,704,020	$   44,697,838	$                -	$   63,747,904
Intersegment revenues	2,793,644	386,681	71,689	(3,252,014)	-
Segment profit (loss) before income taxes	938,437	(91,975)	5,285,834	-	6,132,296
For the Three Months Ended
September 30, 2011
Revenues from external customers	$  16,680,600	$   2,446,424	$   22,197,663	$                -	$   41,324,687
Intersegment revenues	1,716,135	425,273	66,597	(2,208,005)	-
Segment profit (loss) before income taxes	773,361	(318,408)	379,537	-	834,490
For the Nine Months Ended
September 30, 2012
Revenues from external customers	$  51,454,932	$   8,394,177	$ 107,750,228		$ 167,599,337
Intersegment revenues	6,954,477	1,144,239	222,978	(8,321,694)	-
Segment profit before income taxes	3,830,298	57,117	9,609,850	-	13,497,265
Identifiable Assets	521,561,273	112,312,210	46,079,386	(119,191,969)	560,760,900
Goodwill	391,848	285,191	-	-	677,039
For the Nine Months Ended
September 30, 2011
Revenues from external customers	$  50,427,591	$   9,203,043	$   52,332,651	$                -	$ 111,963,285
Intersegment revenues	5,415,233	1,373,879	187,683	(6,976,795)	-
Segment profit (loss) before income taxes	2,190,884	495,960	(3,033,758)	-	(346,914)
Identifiable Assets	484,974,971	114,386,085	28,157,555	(121,435,242)	506,083,369
Goodwill	391,848	285,191	-	-	677,039