7) Business Segments

3 Months Ended

Mar. 31, 2013

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, 2012. 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
March 31, 2013
Revenues from external customers	$  17,243,892	$   2,980,031	$   34,628,311	$                -	$   54,852,234
Intersegment revenues	2,587,833	358,490	57,162	(3,003,485)	-
Segment profit before income taxes	814,331	76,765	2,336,527	-	3,227,623
Identifiable Assets	559,158,299	112,258,461	55,573,503	(125,819,039)	601,171,224
Goodwill	391,848	285,191	-	-	677,039
For the Three Months Ended
March 31, 2012
Revenues from external customers	$  17,627,349	$   2,959,640	$   26,736,234	$                -	$   47,323,223
Intersegment revenues	2,079,099	376,993	75,407	(2,531,499)	-
Segment profit before income taxes	837,564	226,555	1,264,473	-	2,328,592
Identifiable Assets	500,893,911	112,061,353	31,680,160	(119,825,702)	524,809,722
Goodwill	391,848	285,191	-	-	677,039