UTAH
|
87-0345941
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
123 West Election Road, Draper, Utah
|
84020
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(801) 264-1060
|
Title of each class
|
Trading symbol
|
Name of exchange on which registered
|
Class A Common Stock
|
SNFCA
|
The Nasdaq Global Select Market
|
Large accelerated filer [ ]
|
Accelerated filer [ ]
|
Non-accelerated filer [ ]
|
Smaller reporting company [X]
|
Emerging growth company [ ]
|
Page
|
||
Part I
|
||
Item 1.
|
Business
|
3
|
Item 2.
|
Properties
|
11
|
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
|
16
|
Item 6.
|
Selected Financial Data
|
18
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
18
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
29
|
Item 8.
|
Financial Statements and Supplementary Data
|
30
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
110
|
Item 9A.
|
Controls and Procedures
|
110
|
Item 9B.
|
Other Information
|
111
|
Part III
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
112
|
Item 11.
|
Executive Compensation
|
116
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
126
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
128
|
Item 14.
|
Principal Accounting Fees and Services
|
129
|
Part IV
|
||
Item 15.
|
Exhibits, Financial Statement Schedules
|
129
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||||
Life Insurance
|
||||||||||||||||||||||||
Policy/Cert Count as of December 31
|
669,064
|
(1
|
)
|
531,831
|
533,065
|
531,775
|
(2
|
)
|
509,058
|
|||||||||||||||
Insurance in force as of December 31 (omitted 000)
|
$
|
2,877,402
|
(1
|
)
|
$
|
1,838,488
|
$
|
1,759,148
|
$
|
1,672,081
|
(2
|
)
|
$
|
2,862,803
|
||||||||||
Premiums Collected (omitted 000)
|
$
|
78,253
|
(1
|
)
|
$
|
74,965
|
$
|
69,565
|
$
|
65,220
|
(2
|
)
|
$
|
55,780
|
(1)
|
Includes the acquisition of Kilpatrick
|
(2)
|
Includes the acquisition of First Guaranty and the termination of the reinsurance assumed from Servicemembers’ Group Life Insurance (“SGLI”)
|
Age Nearest
|
Non‑Medical
|
|||
Birthday
|
Limits
|
|||
0‑50
|
$
|
100,000
|
||
51‑up
|
Medical information
|
|||
required (APS or exam)
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||||
Annuities Policy/Cert Count as of December 31
|
26,565
|
(1
|
)
|
22,313
|
22,729
|
21,364
|
(2
|
)
|
12,022
|
|||||||||||||||
Deposits Collected (omitted 000)
|
$
|
10,400
|
(1
|
)
|
$
|
9,644
|
$
|
10,353
|
$
|
11,019
|
(2
|
)
|
$
|
8,069
|
(1)
|
Includes the acquisition of Kilpatrick
|
(2)
|
Includes the acquisition of First Guaranty
|
2019
|
2018
|
2017
|
2016
|
2015
|
||||||||||||||||||
Accident and Health Policy/Cert Count as of December 31
|
15,133
|
(1
|
)
|
3,763
|
4,069
|
4,761
|
5,185
|
|||||||||||||||
Premiums Collected (omitted 000)
|
$
|
110
|
(1
|
)
|
$
|
98
|
$
|
104
|
$
|
113
|
$
|
119
|
(1)
|
Includes the acquisition of Kilpatrick
|
Street
|
City
|
State
|
Function
|
Owned / Leased
|
Approximate
Square
Footage |
Lease
Amount |
Expiration
|
|||||||||||||
121 W. Election Rd., Suite 100
|
Draper
|
UT
|
Corporate Headquarters (1)
|
Owned
|
14,145
|
N/A
|
N/A
|
|||||||||||||
5300 S. 360 W.
|
Salt Lake City
|
UT
|
Corporate Headquarters (1)
|
Owned
|
36,000
|
N/A
|
N/A
|
|||||||||||||
5201 S. Green St.
|
Salt Lake City
|
UT
|
Mortgage and Insurance Operations
|
Owned
|
28,448
|
N/A
|
N/A
|
|||||||||||||
1044 River Oaks Dr.
|
Flowood
|
MS
|
Insurance Operations
|
Owned
|
5,522
|
N/A
|
N/A
|
|||||||||||||
5239 Greenpine Dr.
|
Murray
|
UT
|
Funeral Service Operations
|
Owned
|
1,642
|
N/A
|
N/A
|
|||||||||||||
1818 Marshall St.
|
Shreveport
|
LA
|
Insurance Operations
|
Owned
|
12,274
|
N/A
|
N/A
|
|||||||||||||
812 Sheppard St.
|
Minden
|
LA
|
Insurance Sales
|
Owned
|
1,560
|
N/A
|
N/A
|
|||||||||||||
909 Foisy Ave.
|
Alexandria
|
LA
|
Insurance Sales
|
Owned
|
8,059
|
N/A
|
N/A
|
|||||||||||||
1550 N. Third St.
|
Jena
|
LA
|
Insurance Sales
|
Owned
|
1,737
|
N/A
|
N/A
|
|||||||||||||
4455 South 700 East
|
Salt Lake City
|
UT
|
Insurance Operations
|
Leased
|
16,134
|
$
|
22,520
|
/
|
mo
|
6/30/2021
|
||||||||||
1 Sanctuary Blvd. Suite 302A
|
Mandeville
|
LA
|
Insurance Sales
|
Leased
|
867
|
$
|
1,382
|
/
|
mo
|
6/30/2020
|
||||||||||
79 E. Main Street
|
Midway
|
UT
|
Funeral Service Sales
|
Leased
|
4,476
|
$
|
3,460
|
/
|
mo
|
10/31/2022
|
||||||||||
200 Market Way
|
Rainbow City
|
AL
|
Fast Funding Operations
|
Leased
|
12,850
|
$
|
10,490
|
/
|
mo
|
12/31/2025
|
||||||||||
6000 Pelham Rd.
|
Greenville
|
SC
|
Fast Funding Operations
|
Leased
|
4,483
|
$
|
4,109
|
/
|
mo
|
8/31/2022
|
||||||||||
4007 Seaboard Court, Suite 1
|
Portsmouth
|
VA
|
Fast Funding Operations
|
Leased
|
N/A
|
$
|
3,000
|
/
|
mo
|
5/31/2020
|
||||||||||
1819 S. Dobson Rd., Suite 202/203
|
Mesa
|
AZ
|
Mortgage Sales
|
Leased
|
2,397
|
$
|
2,447
|
/
|
mo
|
7/31/2021
|
||||||||||
17015 N. Scottsdale Rd., Suite 125
|
Scottsdale
|
AZ
|
Mortgage Sales
|
Leased
|
6,070
|
$
|
13,415
|
/
|
mo
|
4/30/2020
|
||||||||||
1930 S Alma School Rd., Suite B-201
|
Mesa
|
AZ
|
Mortgage Sales
|
Leased
|
1,762
|
$
|
1,909
|
/
|
mo
|
9/14/2020
|
||||||||||
4725 N. 19th Ave.
|
Phoenix
|
AZ
|
Mortgage Sales
|
Leased
|
600
|
$
|
250
|
/
|
mo
|
month to month
|
||||||||||
77 E. Weldon Ave., Suite 220
|
Phoenix
|
AZ
|
Mortgage Sales
|
Leased
|
1,500
|
$
|
2,000
|
/
|
mo
|
month to month
|
||||||||||
5100 N. 99th Ave., Suite 101/103
|
Phoenix
|
AZ
|
Mortgage Sales
|
Leased
|
2,540
|
$
|
3,175
|
/
|
mo
|
month to month
|
||||||||||
2828 N. Central Ave., Suite 1006/1018
|
Phoenix
|
AZ
|
Mortgage Sales
|
Leased
|
245
|
$
|
2,075
|
/
|
mo
|
month to month
|
||||||||||
2999 Douglas Blvd.
|
Roseville
|
CA
|
Mortgage Sales
|
Leased
|
1,515
|
$
|
3,485
|
/
|
mo
|
6/30/2020
|
||||||||||
1855 Gladys Ave., Suite 2
|
Signal Hill
|
CA
|
Mortgage Sales
|
Leased
|
200
|
$
|
100
|
/
|
mo
|
month to month
|
||||||||||
22775 Pine Lake Dr.
|
Colfax
|
CA
|
Mortgage Sales
|
Leased
|
200
|
$
|
20
|
/
|
mo
|
month to month
|
||||||||||
40977 Oak Dr.
|
Forest Falls
|
CA
|
Mortgage Sales
|
Leased
|
250
|
$
|
-
|
/
|
mo
|
month to month
|
||||||||||
5475 Tech Center Dr., Suite 100
|
Colorado Springs
|
CO
|
Mortgage Sales
|
Leased
|
3,424
|
$
|
3,852
|
/
|
mo
|
7/31/2020
|
||||||||||
8480 E. Orchard Rd., Suite 4200
|
Greenwood Village
|
CO
|
Mortgage Sales
|
Leased
|
4,631
|
$
|
9,841
|
/
|
mo
|
5/31/2021
|
||||||||||
1120 W. 122nd Ave., Suite 104
|
Denver
|
CO
|
Mortgage Sales
|
Leased
|
2,088
|
$
|
3,654
|
/
|
mo
|
10/31/2021
|
||||||||||
27 Main St., Suite C-104B
|
Edwards
|
CO
|
Mortgage Sales
|
Leased
|
680
|
$
|
1,600
|
/
|
mo
|
month to month
|
||||||||||
1145 Town Park Ave., Suite 2215
|
Lake Mary
|
FL
|
Mortgage Sales
|
Leased
|
9,390
|
$
|
19,829
|
/
|
mo
|
2/29/2020
|
||||||||||
8191 College Parkway, Suite 201
|
Ft Myers
|
FL
|
Mortgage Sales
|
Leased
|
4,676
|
$
|
3,917
|
/
|
mo
|
8/21/2021
|
||||||||||
1545 S. Belcher Rd., Suite B
|
Clearwater
|
FL
|
Mortgage Sales
|
Leased
|
N/A
|
$
|
3,073
|
/
|
mo
|
month to month
|
||||||||||
3689 Tampa Rd., Suite 324
|
Oldsmar
|
FL
|
Mortgage Sales
|
Leased
|
2,553
|
$
|
2,708
|
/
|
mo
|
2/28/2020
|
||||||||||
113th St. N. and 82nd Ave. N.
|
Seminole
|
FL
|
Mortgage Sales
|
Leased
|
N/A
|
$
|
2,100
|
/
|
mo
|
8/30/2020
|
||||||||||
136 Parliament Loop
|
Lake Mary
|
FL
|
Mortgage Sales
|
Leased
|
1,527
|
$
|
3,100
|
/
|
mo
|
11/30/2022
|
||||||||||
4370 Kukui Grove St., Suite 201
|
Lihue
|
HI
|
Mortgage Sales
|
Leased
|
864
|
$
|
1,331
|
/
|
mo
|
2/28/2020
|
||||||||||
116 N. 3rd St., Suite 12
|
Mccall
|
ID
|
Mortgage Sales
|
Leased
|
480
|
$
|
400
|
/
|
mo
|
month to month
|
||||||||||
7225-27 West Madison St.
|
Forest Park
|
IL
|
Mortgage Sales
|
Leased
|
1,800
|
$
|
2,200
|
/
|
mo
|
6/30/2020
|
||||||||||
9963 Crosspoint Blvd Suites 101/102
|
Indianapolis
|
IN
|
Mortgage Sales
|
Leased
|
N/A
|
$
|
1,350
|
/
|
mo
|
month to month
|
||||||||||
568 Greenluster Dr.
|
Covington
|
LA
|
Mortgage Sales
|
Leased
|
150
|
$
|
750
|
/
|
mo
|
month to month
|
||||||||||
4987 Fall Creek Rd. Suite 1
|
Branson
|
MO
|
Mortgage Sales
|
Leased
|
700
|
$
|
1,000
|
/
|
mo
|
month to month
|
||||||||||
7930 West Kenton Circle
|
Huntersville
|
NC
|
Mortgage Sales
|
Sub-Leased
|
951
|
$
|
1,918
|
/
|
mo
|
2/29/2020
|
||||||||||
801 Cascade Pointe Lane, Suite 101
|
Raleigh
|
NC
|
Mortgage Sales
|
Sub-Leased
|
2,000
|
$
|
2,961
|
/
|
mo
|
4/30/2020
|
||||||||||
1980 Festival Plaza Dr., Suite 850
|
Las Vegas
|
NV
|
Mortgage Sales
|
Leased
|
12,866
|
$
|
43,615
|
/
|
mo
|
5/31/2021
|
||||||||||
2370 Corporate Circle, Suite 200/270
|
Henderson
|
NV
|
Mortgage Sales
|
Leased
|
10,261
|
$
|
18,297
|
/
|
mo
|
4/30/2020
|
||||||||||
8720 Orion Place, Suite 160
|
Colombus
|
OH
|
Mortgage Sales
|
Leased
|
1,973
|
$
|
1,726
|
/
|
mo
|
6/30/2023
|
||||||||||
10610 SE Washington
|
Portland
|
OR
|
Mortgage Sales
|
Leased
|
506
|
$
|
600
|
/
|
mo
|
month to month
|
||||||||||
3311 NE MLK Jr Blvd., Suite 203
|
Portland
|
OR
|
Mortgage Sales
|
Leased
|
1,400
|
$
|
875
|
/
|
mo
|
month to month
|
||||||||||
10365 SE Sunnyside Rd., Suite 310
|
Clackamus
|
OR
|
Mortgage Sales
|
Leased
|
1,288
|
$
|
2,420
|
/
|
mo
|
11/30/2022
|
||||||||||
213 E. Butler, Suite E-1
|
Mauldin
|
SC
|
Mortgage Sales
|
Leased
|
250
|
$
|
-
|
/
|
mo
|
month to month
|
||||||||||
6263 Poplar Ave., Suite 900
|
Memphis
|
TN
|
Mortgage Sales
|
Leased
|
1,680
|
$
|
2,476
|
/
|
mo
|
3/31/2020
|
||||||||||
6640 Carothers Parkway, Suite 150
|
Franklin
|
TN
|
Mortgage Sales
|
Leased
|
3,229
|
$
|
8,199
|
/
|
mo
|
3/31/2020
|
||||||||||
208 Sunset Dr., Suites 403/404
|
Knoxville
|
TN
|
Mortgage Sales
|
Leased
|
2,476
|
$
|
3,817
|
/
|
mo
|
10/31/2022
|
||||||||||
6640 Carothers Parkway, Suite 110
|
Franklin
|
TN
|
Mortgage Sales
|
Leased
|
2,102
|
$
|
4,668
|
/
|
mo
|
4/30/2020
|
||||||||||
602 S Main St., Suite 200
|
Weatherford
|
TX
|
Mortgage Sales
|
Leased
|
1,000
|
$
|
1,865
|
/
|
mo
|
3/1/2020
|
||||||||||
52 Sugar Creek Center, Suite 150
|
Sugarland
|
TX
|
Mortgage Sales
|
Leased
|
1,788
|
$
|
3,994
|
/
|
mo
|
3/31/2020
|
||||||||||
1 Chisholm Trail Rd., Suite 210
|
Round Rock
|
TX
|
Mortgage Sales
|
Leased
|
3,402
|
$
|
4,961
|
/
|
mo
|
12/31/2020
|
||||||||||
3027 Marina Bay Dr., Suite 200
|
League City
|
TX
|
Mortgage Sales
|
Leased
|
1,225
|
$
|
2,118
|
/
|
mo
|
3/31/2020
|
||||||||||
11550 Fuqua, Suite 200
|
Houston
|
TX
|
Mortgage Sales
|
Leased
|
1,865
|
$
|
3,341
|
/
|
mo
|
4/30/2020
|
||||||||||
24668 Kingsland Blvd.
|
Katy
|
TX
|
Mortgage Sales
|
Leased
|
144
|
$
|
500
|
/
|
mo
|
month to month
|
||||||||||
1848 Norwood Plaza, Suite 213
|
Hurst
|
TX
|
Mortgage Sales
|
Leased
|
1,596
|
$
|
1,031
|
/
|
mo
|
month to month
|
||||||||||
17347 Village Green Dr., Suite 102
|
Houston
|
TX
|
Mortgage Sales
|
Leased
|
4,395
|
$
|
8,970
|
/
|
mo
|
12/1/2024
|
||||||||||
4100 Alpha Rd., Suite 650
|
Farmers Branch
|
TX
|
Mortgage Sales
|
Leased
|
2,935
|
$
|
4,158
|
/
|
mo
|
3/31/2020
|
||||||||||
1626 Lee Trevino, Suite A
|
El Paso
|
TX
|
Mortgage Sales
|
Leased
|
4,200
|
$
|
7,799
|
/
|
mo
|
12/31/2022
|
||||||||||
9737 Great Hills Trail, Suites 150, 200, 220
|
Austin
|
TX
|
Mortgage Sales
|
Sub-Leased
|
19,891
|
$
|
36,052
|
/
|
mo
|
8/31/2024
|
||||||||||
1213 East Alton Gloor Blvd., Suite H
|
Brownsville
|
TX
|
Mortgage Sales
|
Leased
|
2,000
|
$
|
2,200
|
/
|
mo
|
3/31/2020
|
||||||||||
7920 Belt Line Rd., Suite 720
|
Dallas
|
TX
|
Mortgage Sales
|
Leased
|
1,714
|
$
|
2,143
|
/
|
mo
|
month to month
|
||||||||||
5020 Collinwood Ave., Suite 100
|
Fort Worth
|
TX
|
Mortgage Sales
|
Leased
|
2,687
|
$
|
5,150
|
/
|
mo
|
1/31/2021
|
||||||||||
240 North Adams St., Suite 4
|
Eagle Pass
|
TX
|
Mortgage Sales
|
Leased
|
275
|
$
|
1,015
|
/
|
mo
|
12/31/2020
|
||||||||||
3000 Joe DiMaggio Blvd., Bldg 12 Suite 42
|
Round Rock
|
TX
|
Mortgage Sales
|
Leased
|
920
|
$
|
1,750
|
/
|
mo
|
5/15/2021
|
||||||||||
2408 Jacaman Road, Suite F
|
Laredo
|
TX
|
Mortgage Sales
|
Leased
|
N/A
|
$
|
900
|
/
|
mo
|
6/1/2020
|
||||||||||
1900 Country Club Dr., Suite 150
|
Mansfield
|
TX
|
Mortgage Sales
|
Leased
|
175
|
$
|
325
|
/
|
mo
|
month to month
|
||||||||||
3220 Gus Thomasson Rd.
|
Mesquite
|
TX
|
Mortgage Sales
|
Leased
|
130
|
$
|
1,000
|
/
|
mo
|
month to month
|
||||||||||
722 Kiowa Dr. West
|
Lake Kiowa
|
TX
|
Mortgage Sales
|
Leased
|
150
|
$
|
-
|
/
|
mo
|
month to month
|
||||||||||
1224 S. River Rd., Suites E3/B4
|
Saint George
|
UT
|
Mortgage Sales
|
Leased
|
1,900
|
$
|
1,869
|
/
|
mo
|
5/31/2020
|
||||||||||
1111 Brickyard Rd., Suite 107
|
Salt Lake City
|
UT
|
Mortgage Sales
|
Leased
|
4,857
|
$
|
4,408
|
/
|
mo
|
1/31/2020
|
||||||||||
170 S Interstate Plaza, Suite 230
|
Lehi
|
UT
|
Mortgage Sales
|
Leased
|
1,927
|
$
|
3,453
|
/
|
mo
|
7/31/2021
|
||||||||||
590 W. State Street
|
Pleasant Grove
|
UT
|
Mortgage Sales
|
Leased
|
250
|
$
|
500
|
/
|
mo
|
month to month
|
||||||||||
5965 S. Redwood Rd.
|
Taylorsville
|
UT
|
Mortgage Sales
|
Leased
|
2,000
|
$
|
600
|
/
|
mo
|
month to month
|
||||||||||
6575 S. Redwood Rd.
|
Taylorsville
|
UT
|
Mortgage Sales
|
Leased
|
3,323
|
$
|
5,221
|
/
|
mo
|
12/31/2022
|
||||||||||
126 W. Sego Lily Dr., Suite 260
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
2,794
|
$
|
5,672
|
/
|
mo
|
8/31/2020
|
||||||||||
75 Towne Ridge Parkway, Suite 100
|
Sandy
|
UT
|
Mortgage Sales
|
Leased
|
6,867
|
$
|
15,737
|
/
|
mo
|
8/31/2023
|
||||||||||
1145 S. 800 E.
|
Orem
|
UT
|
Mortgage Sales
|
Leased
|
2,581
|
$
|
4,431
|
/
|
mo
|
1/31/2020
|
||||||||||
1133 North Main St., Suite 150
|
Layton
|
UT
|
Mortgage Sales
|
Sub-Leased
|
300
|
$
|
1,000
|
/
|
mo
|
month to month
|
||||||||||
497 S. Main
|
Ephraim
|
UT
|
Mortgage Sales
|
Leased
|
953
|
$
|
765
|
/
|
mo
|
9/30/2021
|
||||||||||
6965 S. Union Park, Suites 100, 190, 260, 300, 460, 470, & 480
|
Midvale
|
UT
|
Mortgage Sales
|
Leased
|
39,649
|
$
|
77,726
|
/
|
mo
|
6/30/2021
|
||||||||||
11240 S. River Heights Dr.
|
South Jordan
|
UT
|
Mortgage Sales
|
Leased
|
3,403
|
$
|
7,515
|
/
|
mo
|
11/30/2024
|
||||||||||
500 East Village Blvd.
|
Stansbury Park
|
UT
|
Mortgage Sales
|
Leased
|
1,950
|
$
|
3,088
|
/
|
mo
|
10/31/2024
|
||||||||||
1350 E. 300 S. 3rd Floor
|
Lehi
|
UT
|
Mortgage Sales
|
Leased
|
15,446
|
$
|
34,110
|
/
|
mo
|
12/22/2026
|
||||||||||
21430 Cedar Dr., Suite 200-202
|
Sterling
|
VA
|
Mortgage Sales
|
Leased
|
4,000
|
$
|
7,700
|
/
|
mo
|
10/31/2022
|
||||||||||
15640 NE Fourth Plain Blvd., Suite 220/221
|
Vancouver
|
WA
|
Mortgage Sales
|
Leased
|
360
|
$
|
425
|
/
|
mo
|
9/30/2020
|
||||||||||
5816 Ledgemont Ct.
|
Fitchburg
|
WI
|
Mortgage Sales
|
Leased
|
200
|
$
|
250
|
/
|
mo
|
month to month
|
||||||||||
1508 24th Ave., Suite 23
|
Kenosha
|
WI
|
Mortgage Sales
|
Leased
|
250
|
$
|
150
|
/
|
mo
|
month to month
|
||||||||||
27903 99th St.
|
Trevor
|
WI
|
Mortgage Sales
|
Leased
|
300
|
$
|
150
|
/
|
mo
|
month to month
|
||||||||||
(1)
|
The Company temporarily relocated its Corporate Headquarters from 5300 South 360 West, Salt Lake City, Utah to 121 W. Election Rd., Draper, Utah. The building at 5300 South 360 West was demolished in March
2020 as part of the second phase of the Center53 corporate campus development. The existing land will be used as the site to construct a building, which the Company anticipates occupying a part of the building in June 2021 as its new
Corporate Headquarters.
|
Net Saleable Acreage
|
||||||
Name of Cemetery
|
Location
|
Date Acquired
|
Developed
Acreage (1)
|
Total Acreage (1)
|
Acres Sold
as Cemetery
Spaces (2)
|
Total Available
Acreage (1)
|
Memorial Estates, Inc.
|
||||||
Lakeview Cemetery
|
1640 East Lakeview Drive
Bountiful, Utah |
1973
|
9
|
39
|
7
|
32
|
Mountain View Cemetery
|
3115 East 7800 South
Salt Lake City, Utah |
1973
|
26
|
54
|
20
|
34
|
Redwood Cemetery (3)
|
6500 South Redwood Road
West Jordan, Utah |
1973
|
28
|
71
|
35
|
36
|
Deseret Memorial Inc.
Lake Hills Cemetery (3)(6) |
||||||
Lake Hills Cemetery
|
10055 South State Street
Sandy, Utah |
1991
|
9
|
28
|
6
|
22
|
Holladay Memorial Park, Inc.
|
||||||
Holladay Memorial Park (3)
|
4900 South Memory Lane
Holladay, Utah |
1991
|
12
|
14
|
7
|
7
|
California Memorial Estates, Inc.
|
||||||
Singing Hills Memorial Park (4)
|
2800 Dehesa Road
El Cajon, California |
1995
|
8
|
97
|
6
|
91
|
The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports, or the Company’s inspection of the cemeteries. The Company estimates that there are approximately
1,200 spaces per developed acre.
|
|
(2)
|
Includes both reserved and occupied spaces.
|
(3)
|
Includes two granite mausoleums.
|
Includes an open easement.
|
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 (1)
|
6500 South Redwood Rd.
|
||||
West Jordan, Utah
|
1973
|
2
|
1
|
10,000
|
|
Mountain View Mortuary (1)
|
3115 East 7800 South
|
||||
Salt Lake City, Utah
|
1973
|
2
|
1
|
16,000
|
|
Lakeview Mortuary (1)
|
1640 East Lakeview Dr.
|
||||
Bountiful, Utah
|
1973
|
0
|
1
|
5,500
|
|
Lakehills Mortuary (1)
|
10055 South State St.
|
||||
Sandy, Utah
|
1991
|
2
|
1
|
18,000
|
|
Cottonwood Mortuary, Inc.
|
|||||
Cottonwood Mortuary (1)
|
4670 South Highland Dr.
|
||||
Holladay, Utah
|
1991
|
2
|
1
|
14,500
|
|
SN Probst LLC
|
|||||
Heber Valley Funeral Home
|
288 North Main St.
|
||||
Heber City, Utah
|
2019
|
1
|
1
|
5,900
|
(1)
|
These funeral homes also provide burial niches at their respective locations.
|
Price Range (1)
|
||||||||
High
|
Low
|
|||||||
Period (Calendar Year)
|
||||||||
2018
|
||||||||
First Quarter
|
$
|
4.90
|
$
|
3.92
|
||||
Second Quarter
|
$
|
4.99
|
$
|
4.67
|
||||
Third Quarter
|
$
|
5.03
|
$
|
4.58
|
||||
Fourth Quarter
|
$
|
5.35
|
$
|
4.68
|
||||
2019
|
||||||||
First Quarter
|
$
|
5.34
|
$
|
4.50
|
||||
Second Quarter
|
$
|
5.38
|
$
|
4.53
|
||||
Third Quarter
|
$
|
5.20
|
$
|
4.55
|
||||
Fourth Quarter
|
$
|
5.74
|
$
|
4.58
|
||||
2020
|
||||||||
First Quarter (through March 27, 2020)
|
$
|
6.25
|
$
|
3.77
|
(1)
|
Stock prices have been adjusted retroactively for the effect of annual 5% stock dividends.
|
Period
|
(a) Total
Number of
Class A
Shares
Purchased
|
(b) Average
Price Paid
per Class
A Share
|
(c) Total
Number of
Class A Shares Purchased as Part of Publicly Announced Plan or Program |
(d) Maximum
Number of Class A Shares that May Yet Be Purchased Under the Plan or Program |
||||||||||||
10/1/2019-10/31/2019
|
8,790
|
$
|
5.01
|
-
|
182,007
|
|||||||||||
11/1/2019-11/30/2019
|
10,000
|
$
|
5.36
|
-
|
172,007
|
|||||||||||
12/1/2019-12/31/2019
|
10,000
|
$
|
5.73
|
-
|
162,007
|
|||||||||||
Total
|
28,790
|
$
|
5.41
|
-
|
162,007
|
12/31/15
|
12/31/16
|
12/31/17
|
12/31/18
|
12/31/19
|
|
SNFC
|
100
|
104
|
88
|
91
|
109
|
S & P 500
|
100
|
110
|
131
|
123
|
158
|
S & P Insurance
|
100
|
115
|
131
|
113
|
143
|
Years ended December 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
2019 vs 2018 % Increase (Decrease)
|
||||||||||
Revenues from external customers:
|
||||||||||||
Insurance premiums
|
$
|
81,861
|
$
|
75,929
|
8
|
%
|
||||||
Net investment income
|
41,611
|
38,720
|
7
|
%
|
||||||||
Gains (losses) on investments and other assets
|
138
|
21,396
|
(99
|
%)
|
||||||||
Other
|
2,129
|
1,637
|
30
|
%
|
||||||||
Total
|
$
|
125,739
|
$
|
137,682
|
(9
|
%)
|
||||||
Intersegment revenue
|
$
|
4,455
|
$
|
3,973
|
12
|
%
|
||||||
Earnings before income taxes
|
$
|
6,565
|
$
|
30,124
|
(78
|
%)
|
Years ended December 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
2019 vs 2018 % Increase (Decrease)
|
||||||||||
Revenues from external customers:
|
||||||||||||
Mortuary revenues
|
$
|
6,541
|
$
|
5,514
|
19
|
%
|
||||||
Cemetery revenues
|
8,755
|
8,213
|
7
|
%
|
||||||||
Net investment income
|
580
|
283
|
105
|
%
|
||||||||
Gains on investments and other assets
|
530
|
2,301
|
(77
|
%)
|
||||||||
Other
|
95
|
129
|
(26
|
%)
|
||||||||
Total
|
$
|
16,501
|
$
|
16,440
|
0
|
%
|
||||||
Earnings before income taxes
|
$
|
2,660
|
$
|
3,916
|
(32
|
%)
|
Years ended December 31
(in thousands of dollars) |
||||||||||||
2019
|
2018
|
2019 vs 2018 % Increase (Decrease)
|
||||||||||
Revenues from external customers:
|
||||||||||||
Income from loan originations
|
$
|
38,394
|
$
|
35,769
|
7
|
%
|
||||||
Secondary gains from investors
|
93,582
|
80,417
|
16
|
%
|
||||||||
Net investment income
|
829
|
910
|
(9
|
%)
|
||||||||
Gains on investments and other assets
|
60
|
243
|
(75
|
%)
|
||||||||
Other
|
7,956
|
8,157
|
(2
|
%)
|
||||||||
Total
|
$
|
140,821
|
$
|
125,496
|
12
|
%
|
||||||
Earnings before income taxes
|
$
|
4,718
|
$
|
(7,860
|
)
|
160
|
%
|
•
|
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 are committed, the Company uses the commitment price.
|
•
|
For loans that are non-committed that have an active market, the Company uses the market price.
|
•
|
For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.
|
•
|
For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying
real estate collateral, estimated future cash flows, and loan interest rate.
|
-200 bps
|
-100 bps
|
+100 bps | +200 bps | |||||||||||||
Change in Fair Value (in thousands)
|
$
|
52,282
|
$
|
23,017
|
$
|
(14,014
|
)
|
$
|
4,386
|
Less than
1 year |
1-3 years
|
4-5 years
|
over
5 years |
Total
|
||||||||||||||||
Bank and other loans payable
|
192,985,602
|
5,408,387
|
2,466,203
|
16,712,420
|
217,572,612
|
|||||||||||||||
Non-cancelable operating leases
|
4,241,547
|
4,712,587
|
2,445,058
|
2,919,074
|
14,318,266
|
|||||||||||||||
Future policy benefits (1)
|
8,630,570
|
36,211,003
|
50,924,810
|
718,220,779
|
813,987,162
|
|||||||||||||||
$
|
205,857,719
|
$
|
46,331,977
|
$
|
55,836,071
|
$
|
737,852,273
|
$
|
1,045,878,040
|
(1)
|
Amounts represent the present value of future policy benefits, net of estimated future premiums.
|
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
|
||
Page No.
|
||
Financial Statements:
|
||
Report of Independent Registered Public Accounting Firm
|
31
|
|
Consolidated Balance Sheets, December 31, 2019 and 2018
|
32
|
|
Consolidated Statements of Earnings for the Years Ended December 31, 2019 and 2018
|
34
|
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2019 and 2018
|
35
|
|
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2019 and 2018
|
36
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019 and 2018
|
37
|
|
Notes to Consolidated Financial Statements
|
39
|
December 31
|
||||||||
Assets
|
2019
|
2018
|
||||||
Investments:
|
||||||||
Fixed maturity securities, available for sale, at estimated fair value
|
$
|
355,977,820
|
$
|
-
|
||||
Fixed maturity securities, held to maturity, at amortized cost
|
-
|
232,078,723
|
||||||
Equity securities, available for sale, at estimated fair value
|
7,271,165
|
5,558,611
|
||||||
Mortgage loans held for investment (net of allowances for loan losses of $1,453,037 and $1,347,972 for 2019 and 2018)
|
236,694,546
|
186,465,069
|
||||||
Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)
|
102,756,946
|
121,558,222
|
||||||
Real estate held for sale
|
14,097,627
|
-
|
||||||
Other investments and policy loans (net of allowances for doubtful accounts of $1,448,026 and $1,092,528 for 2019 and 2018)
|
60,245,269
|
46,617,655
|
||||||
Accrued investment income
|
4,833,232
|
3,566,146
|
||||||
Total investments
|
781,876,605
|
595,844,426
|
||||||
Cash and cash equivalents
|
127,754,719
|
142,199,942
|
||||||
Loans held for sale at estimated fair value
|
213,457,632
|
136,210,853
|
||||||
Receivables (net of allowances for doubtful accounts of $1,724,156 and $1,519,842 for 2019 and 2018)
|
9,236,330
|
8,935,343
|
||||||
Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)
|
13,935,317
|
10,981,562
|
||||||
Cemetery perpetual care trust investments (including $2,581,124 and $483,353 for 2019 and 2018 at estimated fair value)
|
4,411,864
|
4,335,869
|
||||||
Receivable from reinsurers
|
15,747,768
|
10,820,102
|
||||||
Cemetery land and improvements
|
9,519,950
|
9,878,427
|
||||||
Deferred policy and pre-need contract acquisition costs
|
94,701,920
|
89,362,096
|
||||||
Mortgage servicing rights, net
|
17,155,529
|
20,016,822
|
||||||
Property and equipment, net
|
14,600,394
|
7,010,778
|
||||||
Value of business acquired
|
9,876,647
|
5,765,190
|
||||||
Goodwill
|
3,519,588
|
2,765,570
|
||||||
Other
|
18,649,812
|
6,684,143
|
||||||
Total Assets
|
$
|
1,334,444,075
|
$
|
1,050,811,123
|
December 31
|
||||||||
Liabilities and Stockholders' Equity
|
2019
|
2018
|
||||||
Liabilities
|
||||||||
Future policy benefits and unpaid claims
|
$
|
825,600,918
|
$
|
620,399,714
|
||||
Unearned premium reserve
|
3,621,697
|
3,920,473
|
||||||
Bank and other loans payable
|
217,572,612
|
187,521,188
|
||||||
Deferred pre-need cemetery and mortuary contract revenues
|
12,607,978
|
12,508,625
|
||||||
Cemetery perpetual care obligation
|
3,933,719
|
3,821,979
|
||||||
Accounts payable
|
5,056,983
|
2,883,349
|
||||||
Other liabilities and accrued expenses
|
50,652,591
|
31,821,624
|
||||||
Income taxes
|
18,686,972
|
16,122,998
|
||||||
Total liabilities
|
1,137,733,470
|
878,999,950
|
||||||
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 16,107,779 shares in 2019 and 15,304,798 shares in 2018
|
32,215,558
|
30,609,596
|
||||||
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 2,500,887 shares in 2019 and 2,193,643 shares in 2018
|
5,001,774
|
4,387,286
|
||||||
Additional paid-in capital
|
46,091,112
|
41,821,778
|
||||||
Accumulated other comprehensive income, net of taxes
|
13,726,514
|
(2,823
|
)
|
|||||
Retained earnings
|
101,256,229
|
95,201,732
|
||||||
Treasury stock, at cost - 490,823 Class A shares and -0- Class C shares in 2019; 302,541 Class A shares and -0- Class C shares in 2018
|
(1,580,582
|
)
|
(206,396
|
)
|
||||
Total stockholders’ equity
|
196,710,605
|
171,811,173
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
1,334,444,075
|
$
|
1,050,811,123
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Revenues:
|
||||||||
Insurance premiums and other considerations
|
$
|
81,860,610
|
$
|
75,928,910
|
||||
Net investment income
|
43,019,473
|
39,913,267
|
||||||
Net mortuary and cemetery sales
|
15,296,235
|
13,726,518
|
||||||
Gains on investments and other assets
|
728,367
|
23,941,179
|
||||||
Mortgage fee income
|
131,976,082
|
116,185,853
|
||||||
Other
|
10,180,163
|
9,923,000
|
||||||
Total revenues
|
283,060,930
|
279,618,727
|
||||||
Benefits and expenses:
|
||||||||
Death benefits
|
41,591,057
|
36,298,789
|
||||||
Surrenders and other policy benefits
|
3,320,748
|
2,886,298
|
||||||
Increase in future policy benefits
|
23,568,497
|
24,332,088
|
||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
|
14,634,577
|
11,631,346
|
||||||
Selling, general and administrative expenses:
|
||||||||
Commissions
|
56,762,891
|
50,291,352
|
||||||
Personnel
|
64,221,270
|
67,368,952
|
||||||
Advertising
|
4,784,558
|
4,602,591
|
||||||
Rent and rent related
|
7,055,456
|
7,605,375
|
||||||
Depreciation on property and equipment
|
1,711,369
|
1,867,001
|
||||||
Costs related to funding mortgage loans
|
6,278,954
|
6,423,944
|
||||||
Other
|
34,922,761
|
31,014,999
|
||||||
Interest expense
|
7,386,688
|
6,956,707
|
||||||
Cost of goods and services sold – cemeteries and mortuaries
|
2,878,169
|
2,158,895
|
||||||
Total benefits and expenses
|
269,116,995
|
253,438,337
|
||||||
Earnings before income taxes
|
13,943,935
|
26,180,390
|
||||||
Income tax expense
|
(3,050,416
|
)
|
(4,494,311
|
)
|
||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
||||
Net earnings per Class A equivalent common share (1)
|
$
|
0.60
|
$
|
1.21
|
||||
Net earnings per Class A equivalent common share - assuming dilution (1)
|
$
|
0.60
|
$
|
1.19
|
||||
Weighted average Class A equivalent common shares outstanding (1)
|
18,104,681
|
17,968,062
|
||||||
Weighted average Class A equivalent common shares outstanding-assuming dilution (1)
|
18,229,116
|
18,188,665
|
(1)
|
Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the
weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share.
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
||||
Other comprehensive income:
|
||||||||
Unrealized gains on fixed maturity securities available for sale
|
17,315,770
|
-
|
||||||
Unrealized gains on restricted assets
|
35,550
|
-
|
||||||
Unrealized gains on cemetery perpetual care trust investments
|
29,904
|
|||||||
Foreign currency translation adjustments
|
972
|
(3,761
|
)
|
|||||
Other comprehensive income, before income tax
|
17,382,196
|
(3,761
|
)
|
|||||
Income tax benefit (expense)
|
(3,652,859
|
)
|
938
|
|||||
Other comprehensive income (loss), net of income tax
|
13,729,337
|
(2,823
|
)
|
|||||
Comprehensive income
|
$
|
24,622,856
|
$
|
21,683,256
|
Class A
Common Stock
|
Class C
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Retained
Earnings |
Treasury
Stock |
Total
|
||||||||||||||||||||||
Balance at December 31, 2017
|
29,071,154
|
4,178,748
|
38,125,042
|
603,170
|
77,520,951
|
(931,075
|
)
|
148,567,990
|
||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)
|
(603,170
|
)
|
603,170
|
-
|
||||||||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
21,686,079
|
-
|
21,686,079
|
|||||||||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
(2,823
|
)
|
-
|
-
|
(2,823
|
)
|
|||||||||||||||||||
Stock based compensation expense
|
-
|
-
|
237,123
|
-
|
-
|
-
|
237,123
|
|||||||||||||||||||||
Exercise of stock options
|
76,946
|
-
|
(19,534
|
)
|
-
|
-
|
-
|
57,412
|
||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
540,713
|
-
|
-
|
940,200
|
1,480,913
|
|||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(215,521
|
)
|
(215,521
|
)
|
|||||||||||||||||||
Stock dividends
|
1,461,120
|
208,914
|
2,938,434
|
-
|
(4,608,468
|
)
|
-
|
-
|
||||||||||||||||||||
Conversion Class C to Class A
|
376
|
(376
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance at December 31, 2018
|
30,609,596
|
4,387,286
|
41,821,778
|
(2,823
|
)
|
95,201,732
|
(206,396
|
)
|
171,811,173
|
|||||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
10,893,519
|
-
|
10,893,519
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
13,729,337
|
-
|
-
|
13,729,337
|
|||||||||||||||||||||
Stock based compensation expense
|
-
|
-
|
256,996
|
-
|
-
|
-
|
256,996
|
|||||||||||||||||||||
Exercise of stock options
|
65,034
|
382,886
|
415,990
|
-
|
-
|
-
|
863,910
|
|||||||||||||||||||||
Sale of treasury stock
|
-
|
-
|
529,858
|
-
|
-
|
165,702
|
695,560
|
|||||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
-
|
-
|
(1,539,888
|
)
|
(1,539,888
|
)
|
|||||||||||||||||||
Stock dividends
|
1,534,356
|
238,174
|
3,066,490
|
-
|
(4,839,022
|
)
|
-
|
(2
|
)
|
|||||||||||||||||||
Conversion Class C to Class A
|
6,572
|
(6,572
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Balance at December 31, 2019
|
$
|
32,215,558
|
$
|
5,001,774
|
$
|
46,091,112
|
$
|
13,726,514
|
$
|
101,256,229
|
$
|
(1,580,582
|
)
|
$
|
196,710,605
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
|
||||||||
Gains on investments and other assets
|
(728,367
|
)
|
(23,941,179
|
)
|
||||
Depreciation
|
5,183,658
|
5,456,185
|
||||||
Provision for loan losses and doubtful accounts
|
1,202,688
|
377,683
|
||||||
Net amortization of deferred fees and costs, premiums and discounts
|
(887,605
|
)
|
(1,110,363
|
)
|
||||
Provision for deferred income taxes
|
(1,857,897
|
)
|
(2,605,401
|
)
|
||||
Policy and pre-need acquisition costs deferred
|
(19,176,531
|
)
|
(19,544,569
|
)
|
||||
Policy and pre-need acquisition costs amortized
|
13,787,037
|
10,807,777
|
||||||
Value of business acquired amortized
|
847,540
|
823,569
|
||||||
Mortgage servicing rights, additions
|
(4,194,502
|
)
|
(3,922,816
|
)
|
||||
Amortization of mortgage servicing rights
|
7,055,795
|
5,282,931
|
||||||
Stock based compensation expense
|
256,996
|
237,123
|
||||||
Benefit plans funded with treasury stock
|
695,560
|
1,480,913
|
||||||
Net change in fair value of loans held for sale
|
(2,498,097
|
)
|
(3,736,209
|
)
|
||||
Originations of loans held for sale
|
(2,606,839,175
|
)
|
(2,194,607,543
|
)
|
||||
Proceeds from sales of loans held for sale
|
2,580,875,055
|
2,259,145,473
|
||||||
Net gains on sales of loans held for sale
|
(80,666,413
|
)
|
(74,426,183
|
)
|
||||
Change in assets and liabilities:
|
||||||||
Land and improvements held for sale
|
358,477
|
64,506
|
||||||
Future policy benefits and unpaid claims
|
18,394,928
|
21,710,347
|
||||||
Other operating assets and liabilities
|
1,695,259
|
3,830,947
|
||||||
Net cash provided by (used in) operating activities
|
(75,602,075
|
)
|
7,009,270
|
|||||
Cash flows from investing activities:
|
||||||||
Purchases of fixed maturity securities
|
(110,601,438
|
)
|
(37,488,774
|
)
|
||||
Calls and maturities of fixed maturity securities
|
26,624,182
|
32,993,161
|
||||||
Purchase of equity securities
|
(3,264,028
|
)
|
(3,354,274
|
)
|
||||
Sales of equity securities
|
2,639,729
|
2,886,492
|
||||||
Net changes in restricted assets
|
(1,254,991
|
)
|
(241,665
|
)
|
||||
Net changes in cemetery perpetual care trust investments
|
299,897
|
1,207,622
|
||||||
Mortgage loans held for investment, other investments and policy loans made
|
(572,171,590
|
)
|
(505,060,464
|
)
|
||||
Payments received for mortgage loans held for investment, other investments and policy loans
|
556,352,676
|
535,354,544
|
||||||
Purchases of property and equipment
|
(1,839,293
|
)
|
(1,282,704
|
)
|
||||
Sales of property and equipment
|
54,496
|
2,016,156
|
||||||
Purchases of real estate held for investment
|
(8,572,556
|
)
|
(29,193,332
|
)
|
||||
Sales of real estate held for investment
|
11,614,927
|
68,875,269
|
||||||
Cash received for reinsurance assumed
|
158,358,594
|
-
|
||||||
Cash paid for purchase of subsidiaries, net of cash acquired
|
(20,141,074
|
)
|
(3,405,783
|
)
|
||||
Net cash provided by investing activities
|
38,099,531
|
63,306,248
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Cash flows from financing activities:
|
||||||||
Investment contract receipts
|
$
|
12,141,627
|
$
|
11,571,551
|
||||
Investment contract withdrawals
|
(16,911,841
|
)
|
(15,356,571
|
)
|
||||
Proceeds from stock options exercised
|
863,910
|
57,412
|
||||||
Purchase of treasury stock
|
(1,539,888
|
)
|
(215,521
|
)
|
||||
Repayment of bank loans
|
(236,790,722
|
)
|
(133,123,024
|
)
|
||||
Proceeds from bank borrowings
|
196,610,127
|
162,653,177
|
||||||
Net change in warehouse line borrowings for loans held for sale
|
69,928,331
|
(717,792
|
)
|
|||||
Net change in line of credit borrowings
|
-
|
1,250,000
|
||||||
Net cash provided by financing activities
|
24,301,544
|
26,119,232
|
||||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
|
(13,201,000
|
)
|
96,434,750
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
150,936,673
|
54,501,923
|
||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
$
|
137,735,673
|
$
|
150,936,673
|
||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest (net of amount capitalized)
|
$
|
7,284,078
|
$
|
6,878,048
|
||||
Income taxes
|
4,861,318
|
5,701,565
|
||||||
Non Cash Investing and Financing Activities:
|
||||||||
Transfer of loans held for sale to mortgage loans held for investment
|
$
|
31,881,851
|
$
|
10,827,797
|
||||
Right-of-use assets obtained in exchange for operating lease liabilities
|
16,544,406
|
-
|
||||||
Transfer of real estate held for investment to property and equipment
|
3,261,259
|
-
|
||||||
Mortgage loans held for investment foreclosed into real estate held for investment
|
1,704,015
|
670,601
|
||||||
Accrued real estate construction costs and retainage
|
590,256
|
214,200
|
||||||
Right-of-use assets obtained in exchange for finance lease liabilities
|
252,763
|
-
|
||||||
Mortgage loans held for investment foreclosed into receivables
|
155,347
|
-
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Cash and cash equivalents
|
$
|
127,754,719
|
$
|
142,199,942
|
||||
Restricted assets
|
8,674,214
|
7,179,225
|
||||||
Cemetery perpetual care trust investments
|
1,306,740
|
1,557,506
|
||||||
Total cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
137,735,673
|
$
|
150,936,673
|
•
|
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 are committed, the Company uses the commitment price.
|
•
|
For loans that are non-committed that have an active market, the Company uses the market price.
|
•
|
For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.
|
•
|
For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying
real estate collateral, estimated future cash flows, and the loan interest rate.
|
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized Losses |
Estimated
Fair Value |
|||||||||||||
December 31, 2019:
|
||||||||||||||||
Fixed maturity securities available for sale at estimated fair value:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
142,740,641
|
$
|
632,185
|
$
|
(25,215
|
)
|
$
|
143,347,611
|
|||||||
Obligations of states and political subdivisions
|
7,450,366
|
87,812
|
(9,026
|
)
|
7,529,152
|
|||||||||||
Corporate securities including public utilities
|
156,599,184
|
16,768,449
|
(463,413
|
)
|
172,904,220
|
|||||||||||
Mortgage-backed securities
|
31,475,280
|
597,395
|
(240,177
|
)
|
31,832,498
|
|||||||||||
Redeemable preferred stock
|
364,339
|
-
|
-
|
364,339
|
||||||||||||
Total fixed maturity securities available for sale
|
$
|
338,629,810
|
$
|
18,085,841
|
$
|
(737,831
|
)
|
$
|
355,977,820
|
|||||||
Equity securities at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
6,900,537
|
$
|
1,139,799
|
$
|
(769,171
|
)
|
$
|
7,271,165
|
|||||||
Total equity securities at estimated fair value
|
$
|
6,900,537
|
$
|
1,139,799
|
$
|
(769,171
|
)
|
$
|
7,271,165
|
|||||||
Mortgage loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
113,043,965
|
||||||||||||||
Residential construction
|
89,430,237
|
|||||||||||||||
Commercial
|
38,718,220
|
|||||||||||||||
Less: Unamortized deferred loan fees, net
|
(2,391,567
|
)
|
||||||||||||||
Less: Allowance for loan losses
|
(1,453,037
|
)
|
||||||||||||||
Less: Net discounts
|
(653,272
|
)
|
||||||||||||||
Total mortgage loans held for investment
|
$
|
236,694,546
|
||||||||||||||
Real estate held for investment - net of accumulated depreciation:
|
||||||||||||||||
Residential
|
$
|
12,530,306
|
||||||||||||||
Commercial
|
90,226,640
|
|||||||||||||||
Total real estate held for investment
|
$
|
102,756,946
|
||||||||||||||
Real estate held for sale:
|
||||||||||||||||
Residential
|
$
|
8,021,306
|
||||||||||||||
Commercial
|
6,076,321
|
|||||||||||||||
Total real estate held for sale
|
$
|
14,097,627
|
||||||||||||||
Other investments and policy loans at amortized cost:
|
||||||||||||||||
Policy loans
|
$
|
14,762,805
|
||||||||||||||
Insurance assignments
|
41,062,965
|
|||||||||||||||
Federal Home Loan Bank stock (1)
|
894,300
|
|||||||||||||||
Other investments
|
4,973,225
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(1,448,026
|
)
|
||||||||||||||
Total policy loans and other investments
|
$
|
60,245,269
|
||||||||||||||
Accrued investment income
|
$
|
4,833,232
|
||||||||||||||
Total investments
|
$
|
781,876,605
|
(1)
|
Includes $894,300 of Membership stock and $-0- of Activity stock due to short-term borrowings.
|
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
|||||||||||||
December 31, 2018:
|
||||||||||||||||
Fixed maturity securities held to maturity at amortized cost:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies
|
$
|
52,017,683
|
$
|
264,891
|
$
|
(727,798
|
)
|
$
|
51,554,776
|
|||||||
Obligations of states and political subdivisions
|
6,959,237
|
32,274
|
(111,271
|
)
|
6,880,240
|
|||||||||||
Corporate securities including public utilities
|
157,639,860
|
7,002,864
|
(3,704,137
|
)
|
160,938,587
|
|||||||||||
Mortgage-backed securities
|
15,358,746
|
227,398
|
(308,864
|
)
|
15,277,280
|
|||||||||||
Redeemable preferred stock
|
103,197
|
1,903
|
(5,125
|
)
|
99,975
|
|||||||||||
Total fixed maturity securities held to maturity
|
$
|
232,078,723
|
$
|
7,529,330
|
$
|
(4,857,195
|
)
|
$
|
234,750,858
|
|||||||
Equity securities at estimated fair value:
|
||||||||||||||||
Common stock:
|
||||||||||||||||
Industrial, miscellaneous and all other
|
$
|
6,312,158
|
$
|
422,528
|
$
|
(1,176,075
|
)
|
$
|
5,558,611
|
|||||||
Total equity securities at estimated fair value
|
$
|
6,312,158
|
$
|
422,528
|
$
|
(1,176,075
|
)
|
$
|
5,558,611
|
|||||||
Mortgage loans held for investment at amortized cost:
|
||||||||||||||||
Residential
|
$
|
89,935,600
|
||||||||||||||
Residential construction
|
71,366,544
|
|||||||||||||||
Commercial
|
27,785,927
|
|||||||||||||||
Less: Unamortized deferred loan fees, net
|
(1,275,030
|
)
|
||||||||||||||
Less: Allowance for loan losses
|
(1,347,972
|
)
|
||||||||||||||
Total mortgage loans held for investment
|
$
|
186,465,069
|
||||||||||||||
Real estate held for investment - net of accumulated depreciation:
|
||||||||||||||||
Residential
|
$
|
29,507,431
|
||||||||||||||
Commercial
|
92,050,791
|
|||||||||||||||
Total real estate held for investment
|
$
|
121,558,222
|
||||||||||||||
Other investments and policy loans at amortized cost:
|
||||||||||||||||
Policy loans
|
$
|
6,424,325
|
||||||||||||||
Insurance assignments
|
35,239,396
|
|||||||||||||||
Federal Home Loan Bank stock (1)
|
2,548,700
|
|||||||||||||||
Other investments
|
3,497,762
|
|||||||||||||||
Less: Allowance for doubtful accounts
|
(1,092,528
|
)
|
||||||||||||||
Total policy loans and other investments
|
$
|
46,617,655
|
||||||||||||||
Accrued investment income
|
$
|
3,566,146
|
||||||||||||||
Total investments
|
$
|
595,844,426
|
(1)
|
Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings.
|
Unrealized
Losses for
Less than
Twelve Months
|
Fair Value
|
Unrealized
Losses for
More than
Twelve Months
|
Fair Value
|
Total
Unrealized
Loss
|
Fair Value
|
|||||||||||||||||||
At December 31, 2019
|
||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies
|
$
|
20,211
|
$
|
30,629,288
|
$
|
5,004
|
$
|
10,000,400
|
$
|
25,215
|
$
|
40,629,688
|
||||||||||||
Obligations of States and Political Subdivisions
|
9,026
|
3,062,889
|
-
|
-
|
9,026
|
3,062,889
|
||||||||||||||||||
Corporate Securities
|
118,746
|
7,184,311
|
344,667
|
3,950,509
|
463,413
|
11,134,820
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
205,470
|
13,266,443
|
34,707
|
502,769
|
240,177
|
13,769,212
|
||||||||||||||||||
Total unrealized losses
|
$
|
353,453
|
$
|
54,142,931
|
$
|
384,378
|
$
|
14,453,678
|
$
|
737,831
|
$
|
68,596,609
|
||||||||||||
At December 31, 2018
|
||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. Government Agencies
|
$
|
10,519
|
$
|
695,863
|
$
|
717,279
|
$
|
39,930,052
|
$
|
727,798
|
$
|
40,625,915
|
||||||||||||
Obligations of States and Political Subdivisions
|
6,643
|
1,791,257
|
104,628
|
2,889,517
|
111,271
|
4,680,774
|
||||||||||||||||||
Corporate Securities
|
2,514,549
|
61,090,431
|
1,189,588
|
11,767,349
|
3,704,137
|
72,857,780
|
||||||||||||||||||
Mortgage and other asset-backed securities
|
79,896
|
1,705,296
|
228,968
|
2,690,065
|
308,864
|
4,395,361
|
||||||||||||||||||
Redeemable preferred stock
|
5,125
|
90,000
|
-
|
-
|
5,125
|
90,000
|
||||||||||||||||||
Total unrealized losses
|
$
|
2,616,732
|
$
|
65,372,847
|
$
|
2,240,463
|
$
|
57,276,983
|
$
|
4,857,195
|
$
|
122,649,830
|
Amortized
|
Estimated Fair
|
|||||||
Cost
|
Value
|
|||||||
Due in 1 year
|
$
|
104,805,927
|
$
|
104,845,243
|
||||
Due in 2-5 years
|
67,412,618
|
69,126,500
|
||||||
Due in 5-10 years
|
71,110,341
|
76,249,550
|
||||||
Due in more than 10 years
|
63,461,305
|
73,559,690
|
||||||
Mortgage-backed securities
|
31,475,280
|
31,832,498
|
||||||
Redeemable preferred stock
|
364,339
|
364,339
|
||||||
Total held to maturity
|
$
|
338,629,810
|
$
|
355,977,820
|
2019
|
2018
|
|||||||||
Fixed maturity securities held to maturity:
|
||||||||||
Gross realized gains
|
$
|
459,286
|
$
|
522,937
|
||||||
Gross realized losses
|
(162,649
|
)
|
(669,303
|
)
|
||||||
Equity securities:
|
||||||||||
Gains (losses) on securities sold
|
256,520
|
(173,413
|
)
|
|||||||
Unrealized gains (losses) on securities held at the end of the period
|
1,086,116
|
(1,053,756
|
)
|
|||||||
Other assets:
|
||||||||||
Gross realized gains
|
2,844,673
|
26,553,814
|
(1
|
)
|
||||||
Gross realized losses
|
(3,755,579
|
)
|
(1,239,100
|
)
|
||||||
Total
|
$
|
728,367
|
$
|
23,941,179
|
(1)
|
Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments.
|
2019
|
2018
|
|||||||
Fixed maturity securities
|
$
|
10,372,559
|
$
|
10,041,349
|
||||
Equity securities
|
309,918
|
233,555
|
||||||
Mortgage loans held for investment
|
18,405,010
|
18,716,226
|
||||||
Real estate held for investment and sale
|
8,782,959
|
8,375,257
|
||||||
Policy loans
|
554,969
|
409,589
|
||||||
Insurance assignments
|
16,086,059
|
14,771,336
|
||||||
Other investments
|
184,439
|
227,930
|
||||||
Cash and cash equivalents
|
1,824,443
|
1,264,611
|
||||||
Gross investment income
|
56,520,356
|
54,039,853
|
||||||
Investment expenses
|
(13,500,883
|
)
|
(14,126,586
|
)
|
||||
Net investment income
|
$
|
43,019,473
|
$
|
39,913,267
|
Net Ending Balance
|
Total Square Footage
|
|||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||
Arizona
|
$
|
-
|
$
|
4,000
|
(1
|
)
|
-
|
-
|
||||||||||||
Kansas
|
-
|
6,861,898
|
-
|
222,679
|
||||||||||||||||
Louisiana
|
6,009,079
|
467,694
|
125,114
|
7,063
|
||||||||||||||||
Mississippi
|
2,951,478
|
3,329,948
|
21,521
|
33,821
|
||||||||||||||||
New Mexico
|
-
|
7,000
|
(1
|
)
|
-
|
-
|
||||||||||||||
Texas
|
-
|
300,000
|
(2
|
)
|
-
|
-
|
||||||||||||||
Utah
|
81,266,083
|
(3
|
)
|
81,080,251
|
465,230
|
502,129
|
||||||||||||||
$
|
90,226,640
|
$
|
92,050,791
|
611,865
|
765,692
|
(1)
|
Undeveloped Land
|
(2) |
Improved commercial pad
|
(3) |
Includes Center53 phase 1 completed in July 2017
|
Net Ending Balance
|
Total Square Footage
|
|||||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||||
Arizona
|
$
|
2,500
|
(1
|
)
|
$
|
-
|
-
|
-
|
||||||||||
Kansas
|
4,800,000
|
-
|
222,679
|
-
|
||||||||||||||
Mississippi
|
318,322
|
-
|
12,300
|
-
|
||||||||||||||
Nevada
|
655,499
|
-
|
4,800
|
-
|
||||||||||||||
Texas
|
300,000
|
(2
|
)
|
-
|
-
|
-
|
||||||||||||
$
|
6,076,321
|
$
|
-
|
239,779
|
-
|
(1)
|
Undeveloped Land
|
(2) |
Improved commercial pad
|
Net Ending Balance
|
||||||||||||
2019
|
2018
|
|||||||||||
California
|
$
|
-
|
$
|
2,644,321
|
||||||||
Florida
|
2,487,723
|
6,534,277
|
||||||||||
Nevada
|
293,516
|
-
|
||||||||||
Ohio
|
-
|
10,000
|
||||||||||
Oklahoma
|
-
|
-
|
||||||||||
Tennessee
|
-
|
105,260
|
||||||||||
Texas
|
-
|
139,174
|
||||||||||
Utah
|
9,462,886
|
(1
|
)
|
19,598,218
|
(1
|
)
|
||||||
Washington
|
286,181
|
476,181
|
||||||||||
$
|
12,530,306
|
$
|
29,507,431
|
(1)
|
Includes subdivision developments
|
Net Ending Balance
|
||||||||
2019
|
2018
|
|||||||
California
|
640,452
|
-
|
||||||
Florida
|
1,300,641
|
-
|
||||||
Ohio
|
10,000
|
-
|
||||||
Utah
|
5,880,213
|
-
|
||||||
Washington
|
190,000
|
-
|
||||||
$
|
8,021,306
|
$
|
-
|
Location
|
Business Segment
|
Approximate
Square Footage
|
Square
Footage
Occupied
by the Company |
|||
121 W. Election Rd., Draper, UT
|
Corporate Offices, Life Insurance and Cemetery/Mortuary Operations
|
78,979
|
18%
|
|||
5201 Green Street, Salt Lake City, UT (1)
|
Life Insurance and Mortgage Operations
|
39,157
|
73%
|
|||
1044 River Oaks Dr., Flowood, MS
|
Life Insurance Operations
|
19,694
|
28%
|
|||
1818 Marshall Street, Shreveport, LA (1)(2)
|
Life Insurance Operations
|
12,274
|
100%
|
|||
909 Foisy Street, Alexandria, LA (1)(2)
|
Life Insurance Sales
|
8,059
|
100%
|
|||
812 Sheppard Street, Minden, LA (1)(2)
|
Life Insurance Sales
|
1,560
|
100%
|
|||
1550 N 3rd Street, Jena, LA (1)(2)
|
Life Insurance Sales
|
1,737
|
100%
|
(1) |
Included in property and equipment on the consolidated balance sheets
|
(2) |
See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company.
|
Allowance for Credit Losses and Recorded Investment in Mortgage Loans Held for Investment
|
||||||||||||||||
Years Ended December 31
|
||||||||||||||||
Commercial
|
Residential
|
Residential
Construction
|
Total
|
|||||||||||||
2019
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance
|
$
|
187,129
|
$
|
1,125,623
|
$
|
35,220
|
$
|
1,347,972
|
||||||||
Charge-offs
|
-
|
(32,692
|
)
|
-
|
(32,692
|
)
|
||||||||||
Provision
|
-
|
129,775
|
7,982
|
137,757
|
||||||||||||
Ending balance
|
$
|
187,129
|
$
|
1,222,706
|
$
|
43,202
|
$
|
1,453,037
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
195,993
|
$
|
-
|
$
|
195,993
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,026,713
|
$
|
43,202
|
$
|
1,257,044
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
38,718,220
|
$
|
113,043,965
|
$
|
89,430,237
|
$
|
241,192,422
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
4,488,719
|
$
|
3,752,207
|
$
|
655,000
|
$
|
8,895,926
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
34,229,501
|
$
|
109,291,758
|
$
|
88,775,237
|
$
|
232,296,496
|
2018
|
||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||
Beginning balance
|
$
|
187,129
|
$
|
1,546,447
|
$
|
35,220
|
$
|
1,768,796
|
||||||||
Charge-offs
|
-
|
(5,725
|
)
|
-
|
(5,725
|
)
|
||||||||||
Provision
|
-
|
(415,099
|
)
|
-
|
(415,099
|
)
|
||||||||||
Ending balance
|
$
|
187,129
|
$
|
1,125,623
|
$
|
35,220
|
$
|
1,347,972
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
-
|
$
|
74,185
|
$
|
-
|
$
|
74,185
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
187,129
|
$
|
1,051,438
|
$
|
35,220
|
$
|
1,273,787
|
||||||||
Mortgage loans:
|
||||||||||||||||
Ending balance
|
$
|
27,785,927
|
$
|
89,935,600
|
$
|
71,366,544
|
$
|
189,088,071
|
||||||||
Ending balance: individually evaluated for impairment
|
$
|
196,182
|
$
|
2,939,651
|
$
|
502,991
|
$
|
3,638,824
|
||||||||
Ending balance: collectively evaluated for impairment
|
$
|
27,589,745
|
$
|
86,995,949
|
$
|
70,863,553
|
$
|
185,449,247
|
Age Analysis of Past Due Mortgage Loans Held for Investment
|
||||||||||||||||||||||||||||||||||||||||||||
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 |
Unamortized deferred
loan fees,
net
|
Unamortized discounts, net
|
Net Mortgage Loans
|
||||||||||||||||||||||||||||||||||
2019
|
||||||||||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
1,872,000
|
$
|
-
|
$
|
4,488,719
|
$
|
-
|
$
|
6,360,719
|
$
|
32,357,501
|
$
|
38,718,220
|
$
|
(187,129
|
)
|
$
|
(88,918
|
)
|
$
|
(653,272
|
)
|
$
|
37,788,901
|
|||||||||||||||||||
Residential
|
10,609,296
|
4,085,767
|
2,100,742
|
1,651,465
|
18,447,270
|
94,596,695
|
113,043,965
|
(1,222,706
|
)
|
(1,567,581
|
)
|
-
|
110,253,678
|
|||||||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
655,000
|
-
|
655,000
|
88,775,237
|
89,430,237
|
(43,202
|
)
|
(735,068
|
)
|
-
|
88,651,967
|
|||||||||||||||||||||||||||||||
Total
|
$
|
12,481,296
|
$
|
4,085,767
|
$
|
7,244,461
|
$
|
1,651,465
|
$
|
25,462,989
|
$
|
215,729,433
|
$
|
241,192,422
|
$
|
(1,453,037
|
)
|
$
|
(2,391,567
|
)
|
$
|
(653,272
|
)
|
$
|
236,694,546
|
|||||||||||||||||||
2018
|
||||||||||||||||||||||||||||||||||||||||||||
Commercial
|
$
|
4,588,424
|
$
|
-
|
$
|
196,182
|
$
|
-
|
$
|
4,784,606
|
$
|
23,001,321
|
$
|
27,785,927
|
$
|
(187,129
|
)
|
$
|
32,003
|
$
|
-
|
$
|
27,630,801
|
|||||||||||||||||||||
Residential
|
9,899,380
|
2,312,252
|
1,715,362
|
1,224,289
|
15,151,283
|
74,784,317
|
89,935,600
|
(1,125,623
|
)
|
(862,411
|
)
|
-
|
87,947,566
|
|||||||||||||||||||||||||||||||
Residential
Construction |
-
|
-
|
-
|
502,991
|
502,991
|
70,863,553
|
71,366,544
|
(35,220
|
)
|
(444,622
|
)
|
-
|
70,886,702
|
|||||||||||||||||||||||||||||||
Total
|
$
|
14,487,804
|
$
|
2,312,252
|
$
|
1,911,544
|
$
|
1,727,280
|
$
|
20,438,880
|
$
|
168,649,191
|
$
|
189,088,071
|
$
|
(1,347,972
|
)
|
$
|
(1,275,030
|
)
|
$
|
-
|
$
|
186,465,069
|
(1)
|
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
|
||||||||||||||||
2019
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
4,488,719
|
$
|
4,488,719
|
$
|
-
|
$
|
1,499,043
|
$
|
-
|
||||||||||
Residential
|
2,254,189
|
2,254,189
|
-
|
3,367,151
|
-
|
|||||||||||||||
Residential construction
|
655,000
|
655,000
|
-
|
1,457,278
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
1,498,018
|
1,498,018
|
195,993
|
665,270
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
4,488,719
|
$
|
4,488,719
|
$
|
-
|
$
|
1,499,043
|
$
|
-
|
||||||||||
Residential
|
3,752,207
|
3,752,207
|
195,993
|
4,032,421
|
-
|
|||||||||||||||
Residential construction
|
655,000
|
655,000
|
-
|
1,457,278
|
-
|
|||||||||||||||
2018
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
196,182
|
$
|
196,182
|
$
|
-
|
$
|
98,023
|
$
|
-
|
||||||||||
Residential
|
1,612,164
|
1,612,164
|
-
|
2,423,135
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
675,950
|
-
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Residential
|
1,327,487
|
1,327,487
|
74,185
|
1,543,416
|
-
|
|||||||||||||||
Residential construction
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total:
|
||||||||||||||||||||
Commercial
|
$
|
196,182
|
$
|
196,182
|
$
|
-
|
$
|
98,023
|
$
|
-
|
||||||||||
Residential
|
2,939,651
|
2,939,651
|
74,185
|
3,966,551
|
-
|
|||||||||||||||
Residential construction
|
502,991
|
502,991
|
-
|
675,950
|
-
|
Mortgage Loans Held for Investment Credit Exposure
|
||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity
|
||||||||||||||||||||||||||||||||
Years Ended December 31
|
||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Residential Construction
|
Total
|
|||||||||||||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||||||||||
Performing
|
$
|
34,229,501
|
$
|
27,589,745
|
$
|
109,291,758
|
$
|
86,995,949
|
$
|
88,775,237
|
$
|
70,863,553
|
$
|
232,296,496
|
$
|
185,449,247
|
||||||||||||||||
Non-performing
|
4,488,719
|
196,182
|
3,752,207
|
2,939,651
|
655,000
|
502,991
|
8,895,926
|
3,638,824
|
||||||||||||||||||||||||
Total
|
$
|
38,718,220
|
$
|
27,785,927
|
$
|
113,043,965
|
$
|
89,935,600
|
$
|
89,430,237
|
$
|
71,366,544
|
$
|
241,192,422
|
$
|
189,088,071
|
Mortgage Loans on
Non-accrual
Status Years
Ended December 31
|
||||||||
2019
|
2018
|
|||||||
Commercial
|
$
|
4,488,719
|
$
|
196,182
|
||||
Residential
|
3,752,207
|
2,939,651
|
||||||
Residential construction
|
655,000
|
502,991
|
||||||
Total
|
$
|
8,895,926
|
$
|
3,638,824
|
Principal
|
Principal
|
Principal
|
||||||||||||||
Amounts
|
Amounts
|
Amounts
|
||||||||||||||
Due in
|
Due in
|
Due
|
||||||||||||||
Total
|
1 Year
|
2-5 Years
|
Thereafter
|
|||||||||||||
Residential
|
$
|
113,043,965
|
$
|
6,234,913
|
$
|
27,161,628
|
$
|
79,647,424
|
||||||||
Residential Construction
|
89,430,237
|
$
|
60,376,688
|
$
|
29,053,549
|
-
|
||||||||||
Commercial
|
38,718,220
|
24,175,464
|
4,020,999
|
10,521,757
|
||||||||||||
Total
|
$
|
241,192,422
|
$
|
90,787,065
|
$
|
60,236,176
|
$
|
90,169,181
|
As of
December 31
2019
|
As of
December 31
2018
|
|||||||
Aggregate fair value
|
$
|
213,457,632
|
$
|
136,210,853
|
||||
Unpaid principal balance
|
206,417,122
|
131,663,946
|
||||||
Unrealized gain
|
7,040,510
|
4,546,907
|
2019
|
2018
|
|||||||
Loan fees
|
$
|
28,660,966
|
$
|
27,429,237
|
||||
Interest income
|
6,978,930
|
6,156,796
|
||||||
Secondary gains
|
93,581,956
|
80,416,718
|
||||||
Change in fair value of loan commitments
|
899,417
|
(404,773
|
)
|
|||||
Change in fair value of loans held for sale
|
2,498,097
|
3,736,209
|
||||||
Provision for loan loss reserve
|
(643,284
|
)
|
(1,148,334
|
)
|
||||
Mortgage fee income
|
$
|
131,976,082
|
$
|
116,185,853
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Balance, beginning of period
|
$
|
3,604,869
|
$
|
2,571,524
|
||||
Provision for current loan originations (1)
|
643,284
|
1,148,334
|
||||||
Charge-offs, net of recaptured amounts
|
(201,865
|
)
|
(114,989
|
)
|
||||
Balance, at December 31
|
$
|
4,046,288
|
$
|
3,604,869
|
(1)
|
Included in Mortgage fee income
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Trade contracts
|
$
|
2,795,471
|
$
|
2,816,225
|
||||
Receivables from sales agents
|
2,962,571
|
3,079,688
|
||||||
Other
|
5,202,444
|
4,559,272
|
||||||
Total receivables
|
10,960,486
|
10,455,185
|
||||||
Allowance for doubtful accounts
|
(1,724,156
|
)
|
(1,519,842
|
)
|
||||
Net receivables
|
$
|
9,236,330
|
$
|
8,935,343
|
December 31
|
||||||||||
2019
|
2018
|
|||||||||
Balance at beginning of year
|
$
|
5,765,190
|
$
|
6,588,759
|
||||||
Value of business acquired
|
4,962,831
|
(1
|
)
|
-
|
||||||
Imputed interest at 7% included in earnings
|
472,916
|
421,122
|
||||||||
Amortization included in earnings
|
(1,320,456
|
)
|
(1,244,691
|
)
|
||||||
Shadow amortization included in other comprehensive income
|
(3,834
|
)
|
-
|
|||||||
Net amortization
|
(851,374
|
)
|
(823,569
|
)
|
||||||
Balance at end of year
|
$
|
9,876,647
|
$
|
5,765,190
|
(1)
|
See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company
|
December 31
|
|||||||||||||
2019 |
2018 |
||||||||||||
Intangible asset - customer lists
|
15 years
|
$
|
890,000
|
(1
|
)
|
$
|
890,000
|
(1
|
)
|
||||
Intangible asset - trade name
|
15 years
|
$
|
610,000
|
(2
|
)
|
$
|
-
|
||||||
Less accumulated amortization
|
(98,222
|
)
|
(34,611
|
)
|
|||||||||
Balance at end of year
|
$
|
1,401,778
|
$
|
855,389
|
(1) |
See Note 20 regarding the acquisition of Beta Capital Corp.
|
(2) |
See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company
|
Life Insurance
|
Cemetery/Mortuary
|
Total
|
||||||||||||
Balance at January 1, 2018:
|
||||||||||||||
Goodwill
|
$
|
2,765,570
|
$
|
-
|
$
|
2,765,570
|
||||||||
Accumulated impairment
|
-
|
-
|
-
|
|||||||||||
Total goodwill, net
|
2,765,570
|
-
|
2,765,570
|
|||||||||||
Balance at December 31, 2018:
|
||||||||||||||
Goodwill
|
2,765,570
|
-
|
2,765,570
|
|||||||||||
Accumulated impairment
|
-
|
-
|
-
|
|||||||||||
Total goodwill, net
|
2,765,570
|
-
|
2,765,570
|
|||||||||||
Acquisition
|
-
|
754,018
|
(1
|
)
|
754,018
|
|||||||||
Balance at December 31, 2019:
|
||||||||||||||
Goodwill
|
2,765,570
|
754,018
|
3,519,588
|
|||||||||||
Accumulated impairment
|
-
|
-
|
-
|
|||||||||||
Total goodwill, net
|
$
|
2,765,570
|
$
|
754,018
|
$
|
3,519,588
|
(1)
|
See Note 20 regarding the acquisition of Probst Family Funerals and Cremations and Heber Valley Funeral Home
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Land and buildings
|
$
|
15,131,301
|
$
|
7,775,922
|
||||
Furniture and equipment
|
18,987,984
|
16,731,457
|
||||||
34,119,285
|
24,507,379
|
|||||||
Less accumulated depreciation
|
(19,518,891
|
)
|
(17,496,601
|
)
|
||||
Total
|
$
|
14,600,394
|
$
|
7,010,778
|
December 31
|
||||||||
2019
|
2018
|
|||||||
2.25% above the monthly LIBOR rate 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 $4,244,000, due September 2021.
|
$
|
2,659,769
|
$
|
2,817,775
|
||||
4.27% fixed note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2021.
|
1,238,619
|
1,817,905
|
||||||
Prime rate note payable in monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2024.
|
4,000,000
|
-
|
||||||
4.40% fixed note payable in monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,923,000, due January 2026.
|
7,247,651
|
7,492,140
|
||||||
4.329% fixed note payable in monthly installments of $9,775 including principal and interest, collateralized by real property with a book value of approximately $3,261,000, due September
2025.
|
1,896,450
|
1,929,725
|
||||||
2.5% above the monthly LIBOR rate plus 1/16th of the monthly LIBOR rate construction loan payable in monthly principal payments of $113,000 plus interest, collateralized by real property with
a book value of approximately $49,378,000, due August 2020.
|
33,811,559
|
30,796,861
|
||||||
4.7865% fixed interest only note payable in monthly installments, collateralized by real property with a book value of approximately $18,009,000, due June 2028.
|
9,200,000
|
9,200,000
|
||||||
1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures June 2020.
|
88,509,536
|
60,438,156
|
||||||
1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures September 2020.
|
67,537,600
|
25,680,649
|
||||||
Other short-term borrowings (1)
|
1,250,000
|
47,250,000
|
||||||
Finance lease liabilities
|
153,439
|
-
|
||||||
Other loans payable
|
67,989
|
97,977
|
||||||
Total bank and other loans
|
217,572,612
|
187,521,188
|
||||||
Less current installments
|
192,985,602
|
165,219,632
|
||||||
Bank and other loans, excluding current installments
|
$
|
24,587,010
|
$
|
22,301,556
|
(1)
|
Federal Home Loan Bank and Revolving Lines of Credit
|
2019
|
$
|
192,985,602
|
||
2020
|
4,256,684
|
|||
2021
|
1,151,703
|
|||
2022
|
1,218,742
|
|||
2023
|
1,247,461
|
|||
Thereafter
|
16,712,420
|
|||
Total
|
$
|
217,572,612
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Cash and cash equivalents
|
$
|
1,306,740
|
$
|
1,557,506
|
||||
Fixed maturity securities, available for sale, at estimated fair value
|
975,673
|
990,390
|
||||||
Equity securities, at estimated fair value
|
1,605,451
|
483,353
|
||||||
Commerical mortgage loans held for investment
|
524,000
|
-
|
||||||
Real estate held for investment
|
-
|
1,304,620
|
||||||
Note receivables from Cottonwood Mortuary, Singing Hills
|
||||||||
Cemetery and Memorial Estates eliminated in consolidation
|
1,541,120
|
1,606,155
|
||||||
Total cemetery perpetual care trust investments
|
5,952,984
|
5,942,024
|
||||||
Cemetery perpetual care obligation
|
(3,933,719
|
)
|
(3,821,979
|
)
|
||||
Trust investments in excess of trust obligations
|
$
|
2,019,265
|
$
|
2,120,045
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Cash and cash equivalents (1)
|
$
|
8,674,214
|
$
|
7,179,225
|
||||
Mutual funds, at estimated fair value
|
-
|
677,795
|
||||||
Fixed maturity securities, available for sale, at estimated fair value
|
1,008,867
|
1,258,397
|
||||||
Equity securities, at estimated fair value
|
1,976,480
|
66,878
|
||||||
Participating interests in mortgage loans held for investment with Security National Life
|
2,275,756
|
1,799,267
|
||||||
Total
|
$
|
13,935,317
|
$
|
10,981,562
|
(1)
|
Including cash and cash equivalents of $7,170,092 and $5,668,580 as of December 31, 2019 and 2018, respectively, for the life insurance and mortgage segments.
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Current
|
$
|
1,410,153
|
$
|
473,800
|
||||
Deferred
|
17,276,819
|
15,649,198
|
||||||
Total
|
$
|
18,686,972
|
$
|
16,122,998
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Assets
|
||||||||
Future policy benefits
|
$
|
(12,450,229
|
)
|
$
|
(8,293,592
|
)
|
||
Loan loss reserve
|
(1,053,256
|
)
|
(938,496
|
)
|
||||
Unearned premium
|
(760,556
|
)
|
(823,299
|
)
|
||||
Available for sale securities
|
-
|
(366,279
|
)
|
|||||
Net operating loss
|
(438,420
|
)
|
(593,272
|
)
|
||||
Deferred compensation
|
(1,996,865
|
)
|
(1,677,118
|
)
|
||||
Deposit obligations
|
(619,633
|
)
|
(610,769
|
)
|
||||
Other
|
(1,020,718
|
)
|
(185,557
|
)
|
||||
Less: Valuation allowance
|
2,439,394
|
- |
||||||
Total deferred tax assets
|
(15,900,283
|
)
|
(13,488,382
|
)
|
||||
Liabilities
|
||||||||
Deferred policy acquisition costs
|
15,536,717
|
15,255,960
|
||||||
Basis difference in property and equipment
|
3,638,512
|
4,309,162
|
||||||
Value of business acquired
|
2,074,096
|
1,210,690
|
||||||
Deferred gains
|
5,169,104
|
6,267,373
|
||||||
Trusts
|
1,064,387
|
1,064,387
|
||||||
Tax on unrealized appreciation
|
5,694,286
|
1,030,008
|
||||||
Total deferred tax liabilities
|
33,177,102
|
29,137,580
|
||||||
Net deferred tax liability
|
$
|
17,276,819
|
$
|
15,649,198
|
2019
|
2018
|
|||||||
Current
|
||||||||
Federal
|
$
|
4,404,041
|
$
|
6,933,145
|
||||
State
|
504,272
|
166,567
|
||||||
4,908,313
|
7,099,712
|
|||||||
Deferred
|
||||||||
Federal
|
(1,551,725
|
)
|
(1,838,947
|
)
|
||||
State
|
(306,172
|
)
|
(766,454
|
)
|
||||
(1,857,897
|
)
|
(2,605,401
|
)
|
|||||
Total
|
$
|
3,050,416
|
$
|
4,494,311
|
2019
|
2018
|
|||||||
Computed expense at statutory rate
|
$
|
2,928,226
|
$
|
5,497,882
|
||||
State tax expense, net of federal tax benefit
|
156,499
|
(473,911
|
)
|
|||||
Change in valuation allowance
|
194,364
|
-
|
||||||
Other, net
|
(228,673
|
)
|
(529,660
|
)
|
||||
Income tax expense
|
$
|
3,050,416
|
$
|
4,494,311
|
Year of Expiration
|
||||
2020
|
$
|
114,601
|
||
2021
|
17,101
|
|||
2022
|
-
|
|||
2023
|
-
|
|||
2024
|
-
|
|||
Thereafter up through 2037
|
1,701,126
|
|||
$
|
1,832,828
|
Class A
|
Class C
|
|||||||
Outstanding shares at December 31, 2017
|
14,535,577
|
2,089,374
|
||||||
Exercise of stock options
|
38,473
|
-
|
||||||
Stock dividends
|
730,560
|
104,457
|
||||||
Conversion of Class C to Class A
|
188
|
(188
|
)
|
|||||
Outstanding shares at December 31, 2018
|
15,304,798
|
2,193,643
|
||||||
Exercise of stock options
|
32,517
|
191,443
|
||||||
Stock dividends
|
767,178
|
119,087
|
||||||
Conversion of Class C to Class A
|
3,286
|
(3,286
|
)
|
|||||
Outstanding shares at December 31, 2019
|
16,107,779
|
2,500,887
|
2019
|
2018
|
|||||||
Numerator:
|
||||||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
||||
Denominator:
|
||||||||
|
||||||||
Denominator for basic earnings per share-weighted-average shares
|
18,104,681
|
17,968,062
|
||||||
Effect of dilutive securities
|
||||||||
Employee stock options
|
124,435
|
220,603
|
||||||
Dilutive potential common shares
|
124,435
|
220,603
|
||||||
|
||||||||
Denominator for diluted earnings per share-adjusted weighted-average shares and assumed conversions
|
18,229,116
|
18,188,665
|
||||||
Basic earnings per share
|
$
|
0.60
|
$
|
1.21
|
||||
Diluted earnings per share
|
$
|
0.60
|
$
|
1.19
|
Assumptions
|
|||||||||||||||||||||||||
Grant Date
|
Plan
|
Weighted-Average
Fair Value
of Each Option
|
Expected
Dividend Yield
|
Underlying
stock FMV
|
Weighted-Average
Volatility
|
Weighted-Average
Risk-Free Interest Rate |
Weighted-Average
Expected Life
(years)
|
||||||||||||||||||
December 6, 2019
|
All Plans
|
$
|
0.96
|
5
|
%
|
$
|
5.19
|
32.79
|
%
|
1.64
|
%
|
4.83
|
|||||||||||||
January 17, 2019
|
All Plans
|
$
|
1.12
|
5
|
%
|
$
|
4.98
|
36.04
|
%
|
2.56
|
%
|
5.31
|
|||||||||||||
November 30, 2018
|
All Plans
|
$
|
1.12
|
5
|
%
|
$
|
4.91
|
34.61
|
%
|
2.86
|
%
|
4.56
|
Number of
Class A Shares |
Weighted
Average
Exercise Price
|
Number of
Class C Shares |
Weighted
Average
Exercise Price
|
|||||||||||||
Outstanding at January 1, 2018
|
880,426
|
$
|
4.35
|
523,603
|
$
|
5.24
|
||||||||||
Adjustment for the effect of stock dividends
|
48,168
|
27,491
|
||||||||||||||
Granted
|
142,000
|
90,000
|
||||||||||||||
Exercised
|
(42,211
|
)
|
-
|
|||||||||||||
Cancelled
|
(17,109
|
)
|
(63,814
|
)
|
||||||||||||
Outstanding at December 31, 2018
|
1,011,274
|
$
|
4.49
|
577,280
|
$
|
5.15
|
||||||||||
Adjustment for the effect of stock dividends
|
51,018
|
28,295
|
||||||||||||||
Granted
|
81,000
|
180,000
|
||||||||||||||
Exercised
|
(45,834
|
)
|
(191,443
|
)
|
||||||||||||
Cancelled
|
(11,405
|
)
|
-
|
|||||||||||||
Outstanding at December 31, 2019
|
1,086,053
|
$
|
4.41
|
594,132
|
$
|
5.36
|
||||||||||
Exercisable at end of year
|
1,002,603
|
$
|
4.34
|
405,132
|
$
|
5.40
|
||||||||||
Available options for future grant
|
205,664
|
-
|
||||||||||||||
|
||||||||||||||||
Weighted average contractual term of options outstanding at December 31, 2019
|
5.62 years
|
5.82 years
|
||||||||||||||
|
||||||||||||||||
Weighted average contractual term of options exercisable at December 31, 2019
|
5.26 years
|
4.54 years
|
||||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options outstanding at December 31, 2019 (1)
|
$
|
1,291,602
|
$
|
2,177,223
|
||||||||||||
|
||||||||||||||||
Aggregated intrinsic value of options exercisable at December 31, 2019 (1)
|
$
|
1,259,786
|
$
|
159,028
|
(1)
|
The Company used a stock price of $5.57 as of December 31, 2019 to derive intrinsic value.
|
Statutory Net Income
|
Statutory Capital and Surplus
|
|||||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||||
Amounts by insurance subsidiary:
|
||||||||||||||||||
Security National Life Insurance Company
|
$
|
3,589,552
|
$
|
17,963,528
|
$
|
49,390,181
|
$
|
47,184,064
|
||||||||||
Kilpatrick Life Insurance Company
|
12,752,100
|
(1
|
)
|
-
|
15,208,071
|
-
|
||||||||||||
First Guaranty Insurance Company
|
1,078,733
|
1,042,683
|
6,352,670
|
5,786,369
|
||||||||||||||
Memorial Insurance Company of America
|
(107
|
)
|
94
|
1,088,559
|
1,088,880
|
|||||||||||||
Southern Security Life Insurance Company, Inc.
|
87
|
68
|
1,588,396
|
1,586,915
|
||||||||||||||
Trans-Western Life Insurance Company
|
3,773
|
5,460
|
512,163
|
508,390
|
||||||||||||||
Total
|
$
|
17,424,138
|
$
|
19,011,833
|
$
|
74,140,040
|
$
|
56,154,618
|
(1)
|
Includes 12 months even though Kilpatrick Life Insurance Company wasn't acquired by the Company until December 2019.
|
2019
|
||||||||||||||||||||
Life
|
Cemetery/
|
Intercompany
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From external sources:
|
||||||||||||||||||||
Revenue from customers
|
$
|
81,860,610
|
$
|
15,296,235
|
$
|
131,976,082
|
$
|
-
|
$
|
229,132,927
|
||||||||||
Net investment income
|
41,610,831
|
579,995
|
828,647
|
-
|
43,019,473
|
|||||||||||||||
Gains on investments and other assets
|
138,330
|
530,098
|
59,939
|
-
|
728,367
|
|||||||||||||||
Other revenues
|
2,128,961
|
95,197
|
7,956,005
|
-
|
10,180,163
|
|||||||||||||||
Intersegment revenues:
|
||||||||||||||||||||
Net investment income
|
4,455,034
|
443,548
|
508,637
|
(5,407,219
|
)
|
-
|
||||||||||||||
Total revenues
|
130,193,766
|
16,945,073
|
141,329,310
|
(5,407,219
|
)
|
283,060,930
|
||||||||||||||
Expenses:
|
||||||||||||||||||||
Death, surrenders and other policy benefits
|
44,911,805
|
-
|
-
|
-
|
44,911,805
|
|||||||||||||||
Increase in future policy benefits
|
23,568,497
|
-
|
-
|
-
|
23,568,497
|
|||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
|
14,199,152
|
435,425
|
-
|
-
|
14,634,577
|
|||||||||||||||
Selling, general and administrative expenses:
|
||||||||||||||||||||
Commissions
|
3,632,780
|
1,084,079
|
52,046,032
|
-
|
56,762,891
|
|||||||||||||||
Personnel
|
20,311,591
|
5,177,810
|
38,731,869
|
-
|
64,221,270
|
|||||||||||||||
Advertising
|
595,118
|
368,173
|
3,821,267
|
-
|
4,784,558
|
|||||||||||||||
Rent and rent related
|
451,380
|
47,525
|
6,556,551
|
-
|
7,055,456
|
|||||||||||||||
Depreciation on property and equipment
|
477,247
|
428,633
|
805,489
|
-
|
1,711,369
|
|||||||||||||||
Cost related to funding mortgage loans
|
-
|
-
|
6,278,954
|
-
|
6,278,954
|
|||||||||||||||
Intersegment
|
412,853
|
180,594
|
544,463
|
(1,137,910
|
)
|
-
|
||||||||||||||
Other
|
11,769,097
|
3,241,023
|
19,912,641
|
-
|
34,922,761
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Intersegment
|
490,756
|
154,615
|
3,623,938
|
(4,269,309
|
)
|
-
|
||||||||||||||
Other
|
2,808,081
|
288,768
|
4,289,839
|
-
|
7,386,688
|
|||||||||||||||
Costs of goods and services sold-mortuaries and cemeteries
|
-
|
2,878,169
|
-
|
-
|
2,878,169
|
|||||||||||||||
Total benefits and expenses
|
123,628,357
|
14,284,814
|
136,611,043
|
(5,407,219
|
)
|
269,116,995
|
||||||||||||||
Earnings before income taxes
|
$
|
6,565,409
|
$
|
2,660,259
|
$
|
4,718,267
|
$
|
-
|
$
|
13,943,935
|
||||||||||
Income tax benefit (expense)
|
(1,085,848
|
)
|
(649,144
|
)
|
(1,315,424
|
)
|
-
|
(3,050,416
|
)
|
|||||||||||
Net earnings
|
$
|
5,479,561
|
$
|
2,011,115
|
$
|
3,402,843
|
$
|
-
|
$
|
10,893,519
|
||||||||||
Identifiable assets
|
$
|
1,110,641,526
|
$
|
81,014,182
|
$
|
249,970,323
|
$
|
(110,701,544
|
)
|
$
|
1,330,924,487
|
|||||||||
Goodwill
|
$
|
2,765,570
|
$
|
754,018
|
$
|
-
|
$
|
-
|
$
|
3,519,588
|
2018
|
||||||||||||||||||||
Life
|
Cemetery/
|
Intercompany
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Eliminations
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From external sources:
|
||||||||||||||||||||
Revenue from customers
|
$
|
75,928,910
|
$
|
13,726,518
|
$
|
116,185,853
|
$
|
-
|
$
|
205,841,281
|
||||||||||
Net investment income
|
38,720,365
|
283,343
|
909,559
|
-
|
39,913,267
|
|||||||||||||||
Gains on investments and other assets
|
21,396,282
|
2,301,342
|
243,555
|
-
|
23,941,179
|
|||||||||||||||
Other revenues
|
1,636,901
|
128,797
|
8,157,302
|
-
|
9,923,000
|
|||||||||||||||
Intersegment revenues:
|
||||||||||||||||||||
Net investment income
|
3,972,532
|
429,312
|
503,794
|
(4,905,638
|
)
|
-
|
||||||||||||||
Total revenues
|
141,654,990
|
16,869,312
|
126,000,063
|
(4,905,638
|
)
|
279,618,727
|
||||||||||||||
Expenses:
|
||||||||||||||||||||
Death, surrenders and other policy benefits
|
39,185,087
|
-
|
-
|
-
|
39,185,087
|
|||||||||||||||
Increase in future policy benefits
|
24,332,088
|
-
|
-
|
-
|
24,332,088
|
|||||||||||||||
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
|
11,270,579
|
360,767
|
-
|
-
|
11,631,346
|
|||||||||||||||
Selling, general and administrative expenses:
|
||||||||||||||||||||
Commissions
|
3,242,745
|
1,222,642
|
45,825,965
|
-
|
50,291,352
|
|||||||||||||||
Personnel
|
18,489,063
|
4,773,866
|
44,106,023
|
-
|
67,368,952
|
|||||||||||||||
Advertising
|
566,154
|
333,852
|
3,702,585
|
-
|
4,602,591
|
|||||||||||||||
Rent and rent related
|
321,701
|
33,138
|
7,250,536
|
-
|
7,605,375
|
|||||||||||||||
Depreciation on property and equipment
|
400,686
|
372,469
|
1,093,846
|
-
|
1,867,001
|
|||||||||||||||
Cost related to funding mortgage loans
|
-
|
-
|
6,423,944
|
-
|
6,423,944
|
|||||||||||||||
Intersegment
|
402,213
|
182,009
|
531,370
|
(1,115,592
|
)
|
-
|
||||||||||||||
Other
|
10,094,626
|
3,046,902
|
17,873,471
|
-
|
31,014,999
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Intersegment
|
481,587
|
173,807
|
3,134,652
|
(3,790,046
|
)
|
-
|
||||||||||||||
Other
|
2,744,841
|
294,535
|
3,917,331
|
-
|
6,956,707
|
|||||||||||||||
Costs of goods and services sold-mortuaries and cemeteries
|
-
|
2,158,895
|
-
|
-
|
2,158,895
|
|||||||||||||||
Total benefits and expenses
|
111,531,370
|
12,952,882
|
133,859,723
|
(4,905,638
|
)
|
253,438,337
|
||||||||||||||
Earnings before income taxes
|
$
|
30,123,620
|
$
|
3,916,430
|
$
|
(7,859,660
|
)
|
$
|
-
|
$
|
26,180,390
|
|||||||||
Income tax benefit (expense)
|
(5,275,662
|
)
|
(946,820
|
)
|
1,728,171
|
-
|
(4,494,311
|
)
|
||||||||||||
Net earnings
|
$
|
24,847,958
|
$
|
2,969,610
|
$
|
(6,131,489
|
)
|
$
|
-
|
$
|
21,686,079
|
|||||||||
Identifiable assets
|
$
|
928,251,387
|
$
|
90,639,130
|
$
|
159,680,649
|
$
|
(130,525,613
|
)
|
$
|
1,048,045,553
|
|||||||||
Goodwill
|
$
|
2,765,570
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,765,570
|
a)
|
Quoted prices for similar assets or liabilities in active markets;
|
b)
|
Quoted prices for identical or similar assets or liabilities in non-active markets; or
|
c)
|
Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.
|
Total
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
Assets accounted for at fair value on a recurring basis
|
||||||||||||||||
Fixed maturity securities available for sale
|
$
|
355,977,820
|
$
|
-
|
$
|
352,761,438
|
$
|
3,216,382
|
||||||||
Equity securities
|
7,271,165
|
7,271,165
|
-
|
-
|
||||||||||||
Loans held for sale
|
213,457,632
|
-
|
-
|
213,457,632
|
||||||||||||
Restricted assets (1)
|
1,008,867
|
-
|
1,008,867
|
-
|
||||||||||||
Restricted assets (2)
|
1,976,480
|
1,976,480
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments (1)
|
975,673
|
-
|
975,673
|
-
|
||||||||||||
Cemetery perpetual care trust investments (2)
|
1,605,451
|
1,605,451
|
-
|
-
|
||||||||||||
Derivatives - loan commitments (3)
|
2,722,580
|
-
|
-
|
2,722,580
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
584,995,668
|
$
|
10,853,096
|
$
|
354,745,978
|
$
|
219,396,594
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Derivatives - call options (4)
|
$
|
(62,265
|
)
|
$
|
(62,265
|
)
|
$
|
-
|
$
|
-
|
||||||
Derivatives - put options (4)
|
(22,282
|
)
|
(22,282
|
)
|
-
|
-
|
||||||||||
Derivatives - loan commitments (4)
|
(231,347
|
)
|
-
|
-
|
(231,347
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(315,894
|
)
|
$
|
(84,547
|
)
|
$
|
-
|
$
|
(231,347
|
)
|
(1) |
Fixed maturity securities available for sale
|
(2) |
Mutual funds and equity securities
|
(3) |
Included in other assets on the consolidated balance sheets
|
(4) |
Included in other liabilities and accrued expenses on the consolidated balance sheets
|
Fair |
Significant
|
Range of Inputs
|
||||||||||||||||
Value at
|
Valuation
|
Unobservable
|
Minimum
|
Maximum
|
Weighted
|
|||||||||||||
12/31/2019
|
Technique
|
Input(s)
|
Value
|
Value
|
Average
|
|||||||||||||
Loans held for sale
|
$
|
213,457,632
|
Market approach
|
Investor contract pricing as a percentage of unpaid principal balance
|
98.0
|
%
|
109.0
|
%
|
103.0
|
%
|
||||||||
Derivatives - loan commitments (net)
|
2,491,233
|
Market approach
|
Fall-out factor
|
1.0
|
%
|
92.0
|
%
|
81.0
|
%
|
|||||||||
Initial-Value
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Servicing
|
0 bps
|
318 bps
|
79 bps
|
|||||||||||||||
Fixed maturity securities available for sale
|
3,216,382
|
Broker quotes
|
Pricing quotes
|
$
|
95.02
|
$
|
115.80
|
$
|
107.98
|
Net Derivatives
Loan
Commitments
|
Loans Held
for Sale
|
Fixed
Maturity
Securities
Available for
Sale
|
||||||||||
Balance - December 31, 2018
|
$
|
1,591,816
|
$
|
136,210,853
|
$
|
-
|
||||||
Originations/purchases
|
-
|
2,606,839,175
|
-
|
|||||||||
Sales
|
-
|
(2,580,875,055
|
)
|
-
|
||||||||
Transfer to mortgage loans held for investment
|
-
|
(31,881,851
|
)
|
-
|
||||||||
Transfer from fixed maturity securities held to maturity
|
-
|
3,216,382
|
||||||||||
Total gains (losses):
|
||||||||||||
Included in earnings (1)
|
899,417
|
83,164,510
|
-
|
|||||||||
Balance - December 31, 2019
|
$
|
2,491,233
|
$
|
213,457,632
|
$
|
3,216,382
|
(1)
|
As a component of mortgage fee income on the consolidated statements of earnings
|
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
|
||||||||||||||||
Impaired mortgage loans held for investment
|
$
|
1,302,025
|
$
|
-
|
$
|
-
|
$
|
1,302,025
|
||||||||
Impaired real estate held for investment
|
8,375,884
|
-
|
-
|
8,375,884
|
||||||||||||
Total assets accounted for at fair value on a nonrecurring basis
|
$
|
9,677,909
|
$
|
-
|
$
|
-
|
$
|
9,677,909
|
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
|
||||||||||||||||
Equity securities
|
$
|
5,558,611
|
$
|
5,558,611
|
$
|
-
|
$
|
-
|
||||||||
Loans held for sale
|
136,210,853
|
-
|
-
|
136,210,853
|
||||||||||||
Restricted assets (1)
|
744,673
|
744,673
|
-
|
-
|
||||||||||||
Cemetery perpetual care trust investments (1)
|
483,353
|
483,353
|
-
|
-
|
||||||||||||
Derivatives - loan commitments (2)
|
1,969,967
|
-
|
-
|
1,969,967
|
||||||||||||
Total assets accounted for at fair value on a recurring basis
|
$
|
144,967,457
|
$
|
6,786,637
|
$
|
-
|
$
|
138,180,820
|
||||||||
Liabilities accounted for at fair value on a recurring basis
|
||||||||||||||||
Derivatives - call options (3)
|
$
|
(4,629
|
)
|
$
|
(4,629
|
)
|
$
|
-
|
$
|
-
|
||||||
Derivatives - put options (3)
|
(296,053
|
)
|
(296,053
|
)
|
-
|
-
|
||||||||||
Derivatives - loan commitments (3)
|
(378,151
|
)
|
-
|
-
|
(378,151
|
)
|
||||||||||
Total liabilities accounted for at fair value on a recurring basis
|
$
|
(678,833
|
)
|
$
|
(300,682
|
)
|
$
|
-
|
$
|
(378,151
|
)
|
(1) |
Mutual funds and equity securities
|
(2) |
Included in other assets on the consolidated balance sheets
|
(3) |
Included in other liabilities and accrued expenses on the consolidated balance sheets
|
Net Derivatives
Loan
Commitments
|
Loans Held
for Sale
|
|||||||
Balance - December 31, 2017
|
$
|
1,996,589
|
$
|
133,414,188
|
||||
Originations
|
2,194,607,543
|
|||||||
Sales
|
(2,259,145,473
|
)
|
||||||
Transfer to mortgage loans held for investment
|
(10,827,797
|
)
|
||||||
Total gains (losses):
|
||||||||
Included in earnings (1)
|
(404,773
|
)
|
78,162,392
|
|||||
Balance - December 31, 2018
|
$
|
1,591,816
|
$
|
136,210,853
|
(1)
|
As a component of mortgage fee income on the consolidated statements of earnings
|
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
|
||||||||||||||||
Impaired mortgage loans held for investment
|
$
|
1,253,302
|
$
|
-
|
$
|
-
|
$
|
1,253,302
|
||||||||
Impaired real estate held for investment
|
1,611,384
|
-
|
-
|
1,611,384
|
||||||||||||
Total assets accounted for at fair value on a nonrecurring basis
|
$
|
2,864,686
|
$
|
-
|
$
|
-
|
$
|
2,864,686
|
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total
Estimated
Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Mortgage loans held for investment
|
||||||||||||||||||||
Residential
|
$
|
110,253,678
|
$
|
-
|
$
|
-
|
$
|
115,320,638
|
$
|
115,320,638
|
||||||||||
Residential construction
|
88,651,967
|
-
|
-
|
88,651,967
|
88,651,967
|
|||||||||||||||
Commercial
|
37,788,901
|
-
|
-
|
39,289,462
|
39,289,462
|
|||||||||||||||
Mortgage loans held for investment, net
|
$
|
236,694,546
|
$
|
-
|
$
|
-
|
$
|
243,262,067
|
$
|
243,262,067
|
||||||||||
Policy loans
|
14,762,805
|
-
|
-
|
14,762,805
|
14,762,805
|
|||||||||||||||
Insurance assignments, net (1)
|
39,614,939
|
-
|
-
|
39,614,939
|
39,614,939
|
|||||||||||||||
Restricted assets (2)
|
2,275,756
|
-
|
-
|
2,289,679
|
2,289,679
|
|||||||||||||||
Cemetery perpetual care trust investments (2)
|
524,000
|
-
|
-
|
536,553
|
536,553
|
|||||||||||||||
Mortgage servicing rights, net
|
17,155,529
|
-
|
-
|
22,784,571
|
22,784,571
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(217,572,612
|
)
|
$
|
-
|
$
|
-
|
$
|
(217,572,612
|
)
|
$
|
(217,572,612
|
)
|
|||||||
Policyholder account balances (3)
|
(45,154,180
|
)
|
-
|
-
|
(41,828,469
|
)
|
(41,828,469
|
)
|
||||||||||||
Future policy benefits - annuities (3)
|
(113,579,830
|
)
|
-
|
-
|
(117,304,614
|
)
|
(117,304,614
|
)
|
(1)
|
Included in other investments and policy loans on the consolidated balance sheets
|
(2) | Mortgage loans held for investment |
(3) | Included in future policy benefits and unpaid claims on the consolidated balance sheets |
Carrying Value
|
Level 1
|
Level 2
|
Level 3
|
Total
Estimated
Fair Value
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Fixed maturity securities, held to maturity
|
$
|
232,078,723
|
$
|
-
|
$
|
229,668,844
|
$
|
5,082,014
|
$
|
234,750,858
|
||||||||||
Mortgage loans held for investment
|
||||||||||||||||||||
Residential
|
87,947,566
|
-
|
-
|
92,503,553
|
92,503,553
|
|||||||||||||||
Residential construction
|
70,886,702
|
-
|
-
|
70,886,702
|
70,886,702
|
|||||||||||||||
Commercial
|
27,630,801
|
-
|
-
|
28,359,205
|
28,359,205
|
|||||||||||||||
Mortgage loans held for investment, net
|
$
|
186,465,069
|
$
|
-
|
$
|
-
|
$
|
191,749,460
|
$
|
191,749,460
|
||||||||||
Policy loans
|
6,424,325
|
-
|
-
|
6,424,325
|
6,424,325
|
|||||||||||||||
Insurance assignments, net (1)
|
34,146,868
|
-
|
-
|
34,168,868
|
34,168,868
|
|||||||||||||||
Restricted assets (2)
|
1,258,397
|
-
|
1,271,687
|
-
|
1,271,687
|
|||||||||||||||
Restricted assets (3)
|
1,799,268
|
-
|
-
|
1,810,185
|
1,810,185
|
|||||||||||||||
Cemetery perpetual care trust investments (2)
|
990,390
|
-
|
983,410
|
-
|
983,410
|
|||||||||||||||
Mortgage servicing rights, net
|
20,016,822
|
-
|
-
|
28,885,316
|
28,885,316
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Bank and other loans payable
|
$
|
(187,521,188
|
)
|
$
|
-
|
$
|
-
|
$
|
(187,521,188
|
)
|
$
|
(187,521,188
|
)
|
|||||||
Policyholder account balances (4)
|
(46,479,853
|
)
|
-
|
-
|
(37,348,289
|
)
|
(37,348,289
|
)
|
||||||||||||
Future policy benefits - annuities (4)
|
(98,137,615
|
)
|
-
|
-
|
(97,641,146
|
)
|
(97,641,146
|
)
|
(1)
|
Included in other investments and policy loans on the consolidated balance sheets
|
(2) | Fixed maturity securities held to maturity |
(3) | Participation in mortgage loans held for investment |
(4) |
Included in future policy benefits and unpaid claims on the consolidated balance sheets |
December 31
|
||||||||
2019
|
2018
|
|||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) for equity securities
|
$
|
-
|
$
|
(603,170
|
)
|
|||
Unrealized gains on fixed maturity securities available for sale
|
17,315,770
|
-
|
||||||
Reclassification adjustment for net realized gains in net income
|
-
|
-
|
||||||
Net unrealized gains before taxes
|
17,315,770
|
-
|
||||||
Tax expense
|
(3,636,311
|
)
|
-
|
|||||
Net
|
13,679,459
|
-
|
||||||
Unrealized gains on restricted assets (1)
|
35,550
|
-
|
||||||
Tax expense
|
(8,856
|
)
|
-
|
|||||
Net
|
26,694
|
-
|
||||||
Unrealized gains on cemetery perpetual care trust investments (1)
|
29,904
|
-
|
||||||
Tax expense
|
(7,449
|
)
|
-
|
|||||
Net
|
22,455
|
-
|
||||||
Unrealized gains for foreign currency translations adjustments
|
972
|
(3,761
|
)
|
|||||
Tax expense
|
(243
|
)
|
938
|
|||||
Net
|
729
|
(2,823
|
)
|
|||||
Other comprehensive income changes
|
$
|
13,729,337
|
$
|
(605,993
|
)
|
(1)
|
Fixed maturity securities available for sale
|
Beginning Balance December 31,
2018
|
Change for
the period
|
Ending Balance December 31,
2019 |
||||||||||
Unrealized gains on fixed maturity securities available for sale
|
$
|
-
|
$
|
13,679,459
|
$
|
13,679,459
|
||||||
Unrealized gains on restricted assets (1)
|
-
|
26,694
|
26,694
|
|||||||||
Unrealized gains on cemetery perpetual care trust investments (1)
|
-
|
22,455
|
22,455
|
|||||||||
Foreign currency translation adjustments
|
(2,823
|
)
|
729
|
(2,094
|
)
|
|||||||
Other comprehensive income (loss)
|
$
|
(2,823
|
)
|
$
|
13,729,337
|
$
|
13,726,514
|
(1)
|
Fixed maturity securities available for sale
|
Beginning Balance December 31,
2017
|
Change for
the period
|
Ending Balance December 31,
2018 |
|||||||||||||
Unrealized gains on equity securities, restricted assets and cemetery perpetual care trust investments
|
$
|
603,170
|
$
|
(603,170
|
)
|
(1
|
)
|
$
|
-
|
||||||
Foreign currency translation adjustments
|
-
|
(2,823
|
)
|
(2,823
|
)
|
||||||||||
Other comprehensive income (loss)
|
$
|
603,170
|
$
|
(605,993
|
)
|
$
|
(2,823
|
)
|
(1)
|
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)
|
Fair Values and Notional Amounts of Derivative Instruments
|
|||||||||||||||||||||||||
December 31, 2019
|
December 31, 2018
|
||||||||||||||||||||||||
Balance
Sheet Location
|
Notional Amount
|
Asset Fair Value
|
Liability
Fair Value
|
Notional Amount
|
Asset
Fair Value
|
Liability
Fair Value
|
|||||||||||||||||||
Derivatives not designated as hedging instruments:
|
|||||||||||||||||||||||||
Loan commitments
|
Other assets and Other liabilities
|
$
|
224,202,514
|
$
|
2,722,580
|
$
|
231,347
|
$
|
93,758,218
|
$
|
1,969,967
|
$
|
378,151
|
||||||||||||
Call options
|
Other liabilities
|
1,813,500
|
--
|
62,265
|
805,500
|
--
|
4,629
|
||||||||||||||||||
Put options
|
Other liabilities
|
1,573,100
|
--
|
22,282
|
4,861,700
|
--
|
296,053
|
||||||||||||||||||
Total
|
$
|
225,326,654
|
$
|
2,722,580
|
$
|
315,894
|
$
|
99,425,418
|
$
|
1,969,967
|
$
|
678,833
|
Net Amount Gain (Loss)
|
|||||||||
Years ended
December 31
|
|||||||||
Derivative
|
Classification
|
2019
|
2018
|
||||||
Loan commitments
|
Mortgage fee income
|
$
|
899,417
|
$
|
(404,773
|
)
|
|||
Call and put options
|
Gains on investments and other assets
|
$
|
626,208
|
$
|
187,786
|
Other investments and policy loans
|
$
|
9,124,459
|
||
Real estate held for investment
|
2,850,000
|
|||
Mortgage loans held for investment
|
200,000
|
|||
Receivables
|
131,258
|
|||
Total assets acquired
|
12,305,717
|
|||
Future policy benefits and unpaid claims
|
(165,404,970
|
)
|
||
Other liabilities and accrued expenses
|
(5,259,341
|
)
|
||
Total liabilities assumed
|
(170,664,311
|
)
|
||
Cash received for reinsurance assumed
|
$
|
158,358,594
|
Fixed maturity securities, available for sale
|
$
|
22,766,520
|
||||
Fixed maturity securities, held to maturity
|
16,436
|
|||||
Mortgage loans held for investment
|
8,011,660
|
|||||
Real estate held for investment
|
2,708,557
|
|||||
Other investments
|
446,655
|
|||||
Accrued investment income
|
183,527
|
|||||
Total investments
|
34,133,355
|
|||||
Cash and cash equivalents
|
6,900,654
|
|||||
Receivables, net
|
5,407,736
|
(1
|
)
|
|||
Receivables from reinsurers
|
168,105,064
|
(1
|
)
|
|||
Property and equipment, net
|
1,498,245
|
|||||
Value of business acquired
|
4,962,831
|
|||||
Deferred taxes
|
167,344
|
|||||
Other
|
712,323
|
|||||
Total assets acquired
|
221,887,552
|
|||||
Future policy benefits and unpaid claims
|
(189,071,407
|
)
|
||||
Accounts payable
|
(283,304
|
)
|
||||
Other liabilities and accrued expenses
|
(7,870,944
|
)
|
||||
Income taxes
|
(881,957
|
)
|
||||
Total liabilities assumed
|
(198,107,612
|
)
|
||||
Fair value of net assets acquired/consideration paid
|
$
|
23,779,940
|
||||
Fair value of net assets acquired/consideration paid, net of cash acquired
|
$
|
16,879,286
|
(1)
|
Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life.
|
Cash
|
$
|
53,859
|
||
Property and equipment
|
2,475,526
|
|||
Receivables
|
13,620
|
|||
Goodwill
|
754,018
|
|||
Other
|
21,800
|
|||
Total assets acquired
|
3,318,823
|
|||
Bank and other loans payable
|
(3,176
|
)
|
||
Total liabilities assumed
|
(3,176
|
)
|
||
Fair value of net assets acquired/consideration paid
|
$
|
3,315,647
|
||
Fair value of net assets acquired/consideration paid, net of cash acquired
|
$
|
3,261,788
|
Other investments - insurance assignments
|
$
|
2,515,783
|
||
Other - customer list intangible asset
|
890,000
|
|||
Total assets acquired
|
3,405,783
|
|||
Fair value of net assets acquired/consideration paid
|
$
|
3,405,783
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Amortized cost:
|
||||||||
Balance before valuation allowance at beginning of year
|
$
|
20,016,822
|
$
|
21,376,937
|
||||
MSR additions resulting from loan sales
|
4,194,502
|
3,922,816
|
||||||
Amortization (1)
|
(7,055,795
|
)
|
(5,282,931
|
)
|
||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance before valuation allowance at year end
|
$
|
17,155,529
|
$
|
20,016,822
|
||||
Valuation allowance for impairment of MSRs:
|
||||||||
Balance at beginning of year
|
$
|
-
|
$
|
-
|
||||
Additions
|
-
|
-
|
||||||
Application of valuation allowance to write down MSRs with other than temporary impairment
|
-
|
-
|
||||||
Balance at year end
|
$
|
-
|
$
|
-
|
||||
Mortgage servicing rights, net
|
$
|
17,155,529
|
$
|
20,016,822
|
||||
Estimated fair value of MSRs at year end
|
$
|
22,784,571
|
$
|
28,885,316
|
(1)
|
Included in other expenses on the consolidated statements of earnings
|
Estimated MSR Amortization
|
||||
2020
|
$
|
2,999,452
|
||
2021
|
2,376,277
|
|||
2022
|
1,971,249
|
|||
2023
|
1,631,010
|
|||
2024
|
1,359,492
|
|||
Thereafter
|
6,818,049
|
|||
Total
|
$
|
17,155,529
|
2019
|
2018
|
|||||||
Contractual servicing fees
|
$
|
7,212,164
|
$
|
7,561,226
|
||||
Late fees
|
365,477
|
319,244
|
||||||
Total
|
$
|
7,577,641
|
$
|
7,880,470
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Servicing UPB
|
$
|
2,804,139,415
|
$
|
2,941,231,563
|
Prepayment
Speeds |
Average
Life(Years) |
Discount
Rate |
|
December 31, 2019
|
15.30
|
5.27
|
9.51
|
December 31, 2018
|
11.70
|
6.33
|
9.51
|
Years Ended
September 30 |
||||||||
2019
|
2018
|
|||||||
Life
|
$
|
654,585,723
|
$
|
466,232,621
|
||||
Annuities
|
113,579,831
|
98,137,615
|
||||||
Policyholder account balances
|
45,154,180
|
46,479,853
|
||||||
Accident and health
|
667,428
|
482,693
|
||||||
Other policyholder funds
|
4,530,227
|
4,431,296
|
||||||
Reported but unpaid claims
|
4,891,922
|
3,365,872
|
||||||
Incurred but not reported claims
|
2,191,607
|
1,269,764
|
||||||
Gross future policy benefits and unpaid claims
|
$
|
825,600,918
|
$
|
620,399,714
|
||||
Receivable from reinsurers
|
||||||||
Life
|
11,040,398
|
6,702,328
|
||||||
Annuities
|
4,038,007
|
4,078,666
|
||||||
Accident and health
|
90,113
|
-
|
||||||
Reported but unpaid claims
|
569,250
|
33,108
|
||||||
Incurred but not reported claims
|
10,000
|
6,000
|
||||||
Total receivable from reinsurers
|
15,747,768
|
10,820,102
|
||||||
Net future policy benefits and unpaid claims
|
$
|
809,853,150
|
$
|
609,579,612
|
Contract Balances
|
||||||||||||
Receivables (1)
|
Contract Asset
|
Contract Liability
|
||||||||||
Opening (1/1/2019)
|
$
|
2,816,225
|
$
|
-
|
$
|
12,508,625
|
||||||
Closing (12/31/2019)
|
2,778,879
|
-
|
12,607,978
|
|||||||||
Increase/(decrease)
|
(37,346
|
)
|
-
|
99,353
|
||||||||
Contract Balances
|
||||||||||||
Receivables (1)
|
Contract Asset
|
Contract Liability
|
||||||||||
Opening (1/1/2018)
|
$
|
3,608,379
|
$
|
-
|
$
|
12,873,068
|
||||||
Closing (12/31/2018)
|
2,816,225
|
-
|
12,508,625
|
|||||||||
Increase/(decrease)
|
(792,154
|
)
|
-
|
(364,443
|
)
|
(1)
|
Included in Receivables, net on the consolidated balance sheets
|
Contract Balances
|
||||||||
Contract
Asset
|
Contract
Liability
|
|||||||
Pre-need merchandise and services
|
$
|
-
|
$
|
12,175,943
|
||||
At-need specialty merchandise
|
-
|
327,302
|
||||||
Pre-need land sales
|
-
|
5,380
|
||||||
Opening (1/1/2019)
|
$
|
-
|
$
|
12,508,625
|
||||
Pre-need merchandise and services
|
$
|
-
|
$
|
12,325,437
|
||||
At-need specialty merchandise
|
-
|
282,541
|
||||||
Pre-need land sales
|
-
|
-
|
||||||
Closing (12/31/2019)
|
$
|
-
|
$
|
12,607,978
|
||||
Contract Balances
|
||||||||
Contract
Asset
|
Contract
Liability
|
|||||||
Pre-need merchandise and services
|
$
|
-
|
$
|
12,620,596
|
||||
At-need specialty merchandise
|
-
|
236,572
|
||||||
Pre-need land sales
|
-
|
15,900
|
||||||
Opening (1/1/2018)
|
$
|
-
|
$
|
12,873,068
|
||||
Pre-need merchandise and services
|
$
|
-
|
$
|
12,175,943
|
||||
At-need specialty merchandise
|
-
|
327,302
|
||||||
Pre-need land sales
|
-
|
5,380
|
||||||
Closing (12/31/2018)
|
$
|
-
|
$
|
12,508,625
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Major goods/service lines
|
||||||||
At-need
|
$
|
12,334,777
|
$
|
10,391,976
|
||||
Pre-need
|
2,961,458
|
3,334,542
|
||||||
$
|
15,296,235
|
$
|
13,726,518
|
|||||
Timing of Revenue Recognition
|
||||||||
Goods transferred at a point in time
|
$
|
10,133,723
|
$
|
9,100,851
|
||||
Services transferred at a point in time
|
5,162,512
|
4,625,667
|
||||||
$
|
15,296,235
|
$
|
13,726,518
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Pre-need merchandise and services
|
$
|
3,590,266
|
$
|
3,575,032
|
||||
At-need specialty merchandise
|
10,688
|
15,926
|
||||||
Pre-need land sales
|
-
|
1,237
|
||||||
$
|
3,600,954
|
$
|
3,592,195
|
Year
Ended
December 31
|
||||
2019
|
||||
Lease Cost
|
||||
Finance lease cost:
|
||||
Amortization of right-of-use assets (1)
|
$
|
38,351
|
||
Interest on lease liabilities (2)
|
9,001
|
|||
Operating lease cost (3)
|
5,706,490
|
|||
Short-term lease cost (3)(4)
|
233,318
|
|||
Sublease income (3)
|
(663,242
|
)
|
||
Total lease cost
|
$
|
5,323,918
|
||
Other Information
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||
Operating cash flows from operating leases
|
$
|
5,567,761
|
||
Operating cash flows from finance leases
|
9,001
|
|||
Financing cash flows from finance leases
|
95,931
|
|||
Right-of-use assets obtained in exchange for lease liabilities:
|
||||
Operating leases
|
$
|
16,544,406
|
||
Finance leases
|
252,763
|
|||
Weighted-average remaining lease term (in years)
|
||||
Finance leases
|
3.23
|
|||
Operating leases
|
4.67
|
|||
Weighted-average discount rate
|
||||
Finance leases
|
5.47
|
%
|
||
Operating leases
|
5.06
|
%
|
(1)
|
Included in Depreciation on property and equipment on the consolidated statements of earnings
|
(2) | Included in Interest expense on the consolidated statements of earnings |
(3) | Included in Rent and rent related expenses on the consolidated statements of earnings |
(4) |
Includes leases with a term of 12 months or less |
Finance
Leases
|
Operating
Leases
|
|||||||
Lease payments due in:
|
||||||||
2020
|
$
|
62,756
|
$
|
4,241,547
|
||||
2021
|
45,086
|
2,932,404
|
||||||
2022
|
32,646
|
1,780,183
|
||||||
2023
|
25,408
|
1,383,538
|
||||||
2024
|
2,542
|
1,061,520
|
||||||
Thereafter
|
-
|
2,919,074
|
||||||
Total undiscounted lease payments
|
168,438
|
14,318,266
|
||||||
Less: Discount on cash flows
|
(14,999
|
)
|
(2,912,290
|
)
|
||||
Present value of lease liabilities
|
$
|
153,439
|
$
|
11,405,976
|
|
Year Ended December 31
|
||||
Balance Sheet Location
|
2019 | ||||
Operating Leases
|
|||||
Right-of-use assets
|
Other assets
|
$
|
11,267,247
|
||
Lease liabilities
|
Other liabilities and accrued expenses
|
$
|
11,405,976
|
||
Finance Leases
|
|||||
Right-of-use assets
|
$
|
248,565
|
|||
Accumulated amortization
|
(98,351
|
)
|
|||
Right-of-use assets, net
|
Property and equipment, net
|
$
|
150,214
|
||
Lease liabilities
|
Bank and other loans payable
|
$
|
153,439
|
2019
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
|||||||||||||
Revenues
|
$
|
61,493,835
|
$
|
68,445,182
|
$
|
75,379,659
|
$
|
77,742,254
|
||||||||
Benefits and expenses
|
59,061,676
|
63,821,339
|
70,619,837
|
75,614,143
|
||||||||||||
Earnings before income taxes
|
2,432,159
|
4,623,843
|
4,759,822
|
2,128,111
|
||||||||||||
Income tax expense
|
(501,841
|
)
|
(1,143,789
|
)
|
(1,142,408
|
)
|
(262,378
|
)
|
||||||||
Net earnings
|
1,930,318
|
3,480,054
|
3,617,414
|
1,865,733
|
||||||||||||
Net earnings per common share (1)
|
$
|
0.11
|
$
|
0.19
|
$
|
0.20
|
$
|
0.10
|
||||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.11
|
$
|
0.19
|
$
|
0.20
|
$
|
0.10
|
2018
|
||||||||||||||||
Three Months Ended
|
||||||||||||||||
March 31
|
June 30
|
September 30
|
December 31
|
|||||||||||||
Revenues
|
$
|
82,076,109
|
$
|
68,865,126
|
$
|
67,223,093
|
$
|
61,454,399
|
||||||||
Benefits and expenses
|
60,888,928
|
64,702,895
|
65,011,295
|
62,835,219
|
||||||||||||
Earnings before income taxes
|
21,187,181
|
4,162,231
|
2,211,798
|
(1,380,820
|
)
|
|||||||||||
Income tax expense
|
(4,261,258
|
)
|
(924,014
|
)
|
(198,052
|
)
|
889,013
|
|||||||||
Net earnings
|
16,925,923
|
3,238,217
|
2,013,746
|
(491,807
|
)
|
|||||||||||
Net earnings per common share (1)
|
$
|
0.95
|
$
|
0.18
|
$
|
0.11
|
$
|
(0.03
|
)
|
|||||||
Net earnings per common share assuming dilution (1)
|
$
|
0.94
|
$
|
0.18
|
$
|
0.11
|
$
|
(0.03
|
)
|
(1)
|
Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.
|
•
|
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 GAAP, 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.
|
•
|
Execution of a formal consultant agreement with the former system developer.
|
•
|
Creation of unique login credentials for system users.
|
•
|
Implementation of system change control processes, including the installation of a third-party database logging software.
|
Name
|
Age
|
Position with the Company
|
||
|
||||
Scott M. Quist
|
66 |
Chairman of the Board, President, Chief Executive Officer, and Director
|
||
Garrett S. Sill
|
49
|
Chief Financial Officer and Treasurer
|
||
Jason G. Overbaugh
|
45 |
Vice President, National Marketing Director of Life Insurance and Director
|
||
S. Andrew Quist
|
39
|
Vice President, General Counsel, and Director
|
||
Jeffrey R. Stephens
|
66
|
Senior General Counsel and Secretary
|
||
Stephen C. Johnson
|
63
|
Vice President - Mortgage Operations
|
||
Adam G. Quist
|
34
|
Vice President - Memorial Services, Assistant Secretary, and General Counsel
|
||
John L. Cook
|
65
|
Director
|
||
Gilbert A. Fuller
|
79
|
Director
|
||
Robert G. Hunter
|
60
|
Director
|
||
H. Craig Moody
|
68
|
Director
|
||
Norman G. Wilbur
|
81
|
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 |
2019
|
$
|
528,498
|
$
|
151,300
|
--
|
--
|
--
|
$
|
48,012
|
$
|
727,810
|
|||||||||||||||||
Board, President and Chief Executive Officer |
2018
|
489,174
|
124,500
|
--
|
--
|
--
|
47,221
|
660,895
|
|||||||||||||||||||||
Garrett S. Sill Chief Financial |
2019
|
$
|
223,373
|
$
|
36,200
|
--
|
--
|
--
|
$
|
31,534
|
$
|
291,107
|
|||||||||||||||||
Officer and Treasurer
|
2018
|
214,165
|
25,457
|
--
|
--
|
--
|
27,107
|
266,729
|
|||||||||||||||||||||
Stephen C. Johnson
Vice President of
|
2019
|
$
|
325,841
|
$
|
87,617
|
--
|
--
|
--
|
$
|
8,279
|
$
|
421,737
|
|||||||||||||||||
Mortgage Operations |
2018
|
361,284
|
17,900
|
--
|
--
|
--
|
18,257
|
397,441
|
|||||||||||||||||||||
S. Andrew Quist Vice President and |
2019
|
$
|
245,440
|
$
|
92,325
|
--
|
--
|
--
|
$
|
31,279
|
$
|
369,044
|
|||||||||||||||||
General Counsel |
2018
|
221,228
|
41,075
|
--
|
--
|
--
|
27,163
|
289,466
|
|||||||||||||||||||||
Jeffrey R. Stephens Senior General |
2019
|
$
|
197,205
|
$
|
15,875
|
--
|
--
|
--
|
$
|
23,201
|
$
|
236,281
|
|||||||||||||||||
Counsel and Secretary |
2018
|
190,250
|
13,525
|
--
|
--
|
--
|
24,434
|
228,209
|
(1)
|
The amounts indicated under “Change in Pension Value and Non-Qualified Deferred Compensation Earnings” consist of amounts that the Company contributed into a trust for the benefit of the Named Executive
Officers under the Company’s Non-Qualified Deferred Compensation Plan.
|
|
(2)
|
The amounts indicated under “All Other Compensation” consist of the following amounts that the Company paid for the benefit of the Named Executive Officers:
|
|
a)
|
payments related to the operation of automobiles for Scott M. Quist ($7,200 for each of the years 2019 and 2018); and Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($-0- for each
of the years 2019 and 2018). 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 automobile operated by such executive
officer;
|
|
b)
|
group life insurance premiums that the Company paid to a group life insurance plan for Scott M. Quist, Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($176 for 2019 and $178 for
2018);
|
|
c)
|
life insurance premiums that the Company paid for the benefit of Scott M. Quist ($14,934 for each of the years 2019 and 2018); and Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens
($-0- for each of the years 2019 and 2018);
|
|
d)
|
medical insurance premiums that the Company paid to a medical insurance plan for Scott M. Quist ($14,251 for 2019 and $13,658 for 2018); Garrett S. Sill ($20,508 for 2019 and $19,657 for 2018); Stephen C.
Johnson ($7,652 for 2019 and $6,790 for 2018); S. Andrew Quist ($20,508 for 2019 and $19,654 for 2018); and Jeffrey R. Stephens ($14,251 for 2019 and $18,140 for 2018);
|
|
e)
|
long term disability insurance premiums that the Company paid to a provider of such insurance for Scott M. Quist, Garrett S. Sill, Stephen C. Johnson, S. Andrew Quist, and Jeffrey R. Stephens ($251 for each of
the years 2019 and 2018);
|
|
f)
|
contributions that the Company made to defined contribution plans for Scott M. Quist ($11,200 for 2019 and $11,000 for 2018); Garrett S. Sill ($10,599 for 2019 and $9,248 for 2018); Stephen C. Johnson ($-0- for
2019 and $10,838 for 2018); S. Andrew Quist ($10,344 for 2019 and $7,080 for 2018); and Jeffrey R. Stephens ($8,523 for 2019 and $5,865 for 2018); and
|
|
g)
|
contributions that the Company made to health savings accounts for Scott M. Quist, Garrett S. Sill, S. Andrew Quist and Jeffrey R. Stephens ($-0- for each of the years 2019 and 2018); and Stephen C. Johnson
($200 for each of the years 2019 and 2018);
|
Name of Executive Officer
|
Year |
Perks and Other Personal
Benefits |
Tax
Reimbursements
|
Discounted Securities
Purchases
|
Payments/ Accruals on Termination Plans
|
Registrant Contributions to Defined Contribution
Plans
|
Insurance
Premiums
|
Dividends or Earnings on
Stock or Option Awards
|
Other (1)
|
|||||||||||||||||||||||||
Scott M. Quist
|
2019 |
$
|
7,200
|
-
|
-
|
-
|
$
|
11,200
|
$
|
29,612
|
-
|
-
|
||||||||||||||||||||||
|
2018 |
7,200
|
-
|
-
|
-
|
11,000
|
29,021
|
-
|
-
|
|||||||||||||||||||||||||
Garrett S. Sill
|
2019 |
-
|
-
|
-
|
-
|
$
|
10,599
|
$
|
20,935
|
-
|
-
|
|||||||||||||||||||||||
|
2018 |
-
|
-
|
-
|
-
|
7,021
|
20,086
|
-
|
-
|
|||||||||||||||||||||||||
Stephen C. Johnson
|
2019 |
-
|
-
|
-
|
-
|
$
|
-
|
$
|
8,279
|
-
|
-
|
|||||||||||||||||||||||
|
2018 |
-
|
-
|
-
|
-
|
10,838
|
7,419
|
-
|
-
|
|||||||||||||||||||||||||
S. Andrew Quist
|
2019 |
-
|
-
|
-
|
-
|
$
|
1,034
|
$
|
20,935
|
-
|
-
|
|||||||||||||||||||||||
|
2018 |
-
|
-
|
-
|
-
|
7,080
|
20,083
|
-
|
-
|
|||||||||||||||||||||||||
Jeffrey R. Stephens
|
2019 |
-
|
-
|
-
|
-
|
$
|
8,523
|
$
|
14,678
|
-
|
-
|
|||||||||||||||||||||||
|
2018 |
-
|
-
|
-
|
-
|
5,865
|
18,569
|
-
|
-
|
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 | Grant Date Fair Value of Stock and Option | ||||||||||||||||||||||||||||||
Executive
Officer
|
Grant Date
|
Threshold
($) |
Target
($) |
Maximum
($) |
Options
(#) |
Awards
($/Sh) |
Date
($/Sh)
|
Awards
($) |
|||||||||||||||||||||||||||
Scott M. Quist
|
12/6/19
|
--
|
--
|
--
|
52,500
|
(1
|
)
|
$
|
5.44
|
(2
|
)
|
5.19
|
(2
|
)
|
$
|
40,006
|
|||||||||||||||||||
Garrett S. Sill
|
12/6/19
|
--
|
--
|
--
|
26,250
|
(1
|
)
|
5.19
|
(2
|
)
|
5.19
|
(2
|
)
|
24,900
|
|||||||||||||||||||||
Stephen C. Johnson
|
12/6/19
|
--
|
--
|
--
|
10,500
|
(1
|
)
|
5.19
|
(2
|
)
|
5.19
|
(2
|
)
|
9,960
|
|||||||||||||||||||||
S. Andrew Quist
|
12/6/19
|
--
|
--
|
--
|
42,000
|
(1
|
)
|
5.19
|
(2
|
)
|
5.19
|
(2
|
)
|
39,839
|
|||||||||||||||||||||
Jeffrey R. Stephens
|
12/6/19
|
--
|
--
|
--
|
7,875
|
(1
|
)
|
5.19
|
(2
|
)
|
5.19
|
(2
|
)
|
7,470
|
(1)
|
The stock options have been adjusted for the 5% annual stock dividend declared on December 6, 2019 and paid on February 7, 2020.
|
(2)
|
Prices have been adjusted for the effect of the 5% annual stock dividend declared on December 6, 2019 and paid on February 7, 2020.
|
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 (1)
(#) |
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
|
12/4/15
|
127,629
|
(3
|
)
|
--
|
5.72
|
12/04/20
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||
12/2/16
|
97,241
|
(4
|
)
|
--
|
6.30
|
12/02/21
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/1/17
|
86,822
|
--
|
4.77
|
12/02/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
11/30/18
|
77,175
|
--
|
5.48
|
11/30/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/6/19
|
--
|
52,500
|
(7)(8)
|
|
5.44
|
12/06/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
Garrett S. Sill
|
12/6/13
|
5,629
|
--
|
$
|
3.38
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
7/2/14
|
5,361
|
--
|
3.16
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/5/14
|
10,721
|
--
|
3.70
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/4/15
|
12,763
|
--
|
5.20
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/2/16
|
12,155
|
--
|
5.73
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/1/17
|
17,365
|
(5
|
)
|
--
|
4.33
|
12/01/27
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
11/30/18
|
22,050
|
(6
|
)
|
--
|
4.98
|
11/30/28
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/6/19
|
--
|
26,250
|
(7)(8)
|
|
5.19
|
12/06/29
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
Stephen C. Johnson
|
4/13/12
|
4,432
|
--
|
$
|
1.04
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/6/13
|
4,221
|
--
|
3.38
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
7/2/14
|
4,020
|
--
|
3.16
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/5/14
|
8,041
|
--
|
3.70
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/4/15
|
12,763
|
--
|
5.20
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/2/16
|
6,078
|
--
|
5.73
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/1/17
|
11,576
|
--
|
4.33
|
12/01/27
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/6/19
|
--
|
10,500
|
(8
|
)
|
5.19
|
12/06/29
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
S. Andrew Quist
|
4/13/12
|
22,162
|
--
|
$
|
1.04
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/6/13
|
14,071
|
--
|
3.38
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
7/2/14
|
13,401
|
--
|
3.16
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/5/14
|
26,803
|
--
|
3.70
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/4/15
|
25,527
|
--
|
5.20
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/2/16
|
24,311
|
--
|
5.73
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/1/17
|
23,153
|
(5
|
)
|
--
|
4.33
|
12/01/27
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
11/30/18
|
27,563
|
(6
|
)
|
--
|
4.98
|
11/30/28
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/6/19
|
--
|
42,000
|
(7)(8)
|
|
5.19
|
12/06/29
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
Jeffrey R. Stephens
|
4/13/12
|
3,695
|
--
|
$
|
1.04
|
04/13/22
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||
12/6/13
|
3,519
|
--
|
3.38
|
12/06/23
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
7/2/14
|
3,351
|
--
|
3.16
|
07/02/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/5/14
|
6,701
|
--
|
3.70
|
12/05/24
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/4/15
|
6,382
|
--
|
5.20
|
12/04/25
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/2/16
|
6,078
|
--
|
5.73
|
12/02/26
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/1/17
|
5,789
|
--
|
4.33
|
12/01/27
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
11/30/18
|
8,269
|
--
|
4.98
|
11/30/28
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||||||
12/6/19
|
--
|
7,875
|
(8
|
)
|
5.19
|
12/06/29
|
--
|
--
|
--
|
--
|
--
|
(1)
|
Except for options granted to Scott M. Quist that have five-year terms, 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 December 4, 2015, Scott Quist was granted stock options to purchase 100,000 shares of Class A common stock at an exercise price of $5.72 per share or 100,000 shares of Class C common stock at an exercise
price of $5.72 per share, or any combination thereof.
|
(4)
|
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 $6.30 per share or 80,000 shares of Class C common stock at an exercise price
of $6.30 per share, or any combination thereof.
|
(5)
|
On December 1, 2017, Garrett S. Sill was granted stock options to purchase 15,000 shares of Class A common stock at an exercise price of $4.33 per share or 15,000 shares of Class C common stock at an exercise
price of $4.33 per share, or any combination thereof. Also, on December 1, 2017, S. Andrew Quist was granted stock options to purchase 20,000 shares of Class A common stock at an exercise price of $4.33 per share or 20,000 shares of Class C
common stock at an exercise price of $4.33 per share, or any combination thereof.
|
(6)
|
On November 30, 2018, Garrett S. Sill was granted stock options to purchase 20,000 shares of Class A common stock at an exercise price of $4.98 per share or 20,000 shares of Class C common stock at an exercise
price of $4.98 per share, or any combination thereof. Also, on November 30, 2018, S. Andrew Quist was granted stock options to purchase 25,000 shares of Class A common stock at an exercise price of $4.98 per share or 20,000 shares of Class C
common stock at an exercise price of $4.98 per share, or any combination thereof.
|
(7)
|
On December 6, 2019, Scott M. Quist was granted stock options to purchase 50,000 shares of Class A common stock at an exercise price of $5.44 per share or 50,000 shares of Class C common stock at an exercise
price of $5.44 per share, or any combination thereof. Also, on December 6, 2019, Garrett S. Sill was granted stock options to purchase 25,000 shares of Class A common stock at an exercise price of $5.19 per share or 25,000 shares of Class C
common stock at an exercise price of $5.19 per share, or any combination thereof. Also, on December 6, 2019, S. Andrew Quist was granted stock options to purchase 40,000 shares of Class A common stock at an exercise price of $5.19 per share
or 40,000 shares of Class C common stock at an exercise price of $5.19 per share, or any combination thereof.
|
(8)
|
Stock options vest at the rate of 25% of the total number of shares subject to the options on March 1, 2020 and 25% of the total number of shares on the last day of each three month period thereafter.
|
Grant Date
|
Vesting
|
|
4/13/12
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/06/13
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
07/02/14
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/05/14
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/04/15
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/02/16
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/01/17
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
11/30/18
|
These options vested 25% per quarter over a one year period after the grant date.
|
|
12/06/19
|
These options vest 25% per quarter over a one year period after the grant date.
|
Option Awards
|
Stock Awards
|
|||||||||||||||
Number of Shares Acquired on Exercise
|
Value Realized on Exercise
|
Number of Shares Acquired on Vesting
|
Value Realized on Vesting
|
|||||||||||||
Name of Executive Officer
|
(#)
|
|
($)
|
(#)
|
|
($)
|
||||||||||
Scott M. Quist
|
191,443
|
$
|
208,673
|
--
|
--
|
|||||||||||
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 previously approved by security holders; and
|
A |
|
B |
|
C |
|
|||||||
Plan Category
|
Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights
|
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights
|
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column A)
|
|||||||||
Equity compensation plans approved by stockholders (1)
|
1,680,185
|
(2)
|
$
|
4.41
|
(2)
|
205,664
|
(3)
|
|||||
Equity compensation plans not approved by stockholders
|
0
|
-
|
0
|
(1)
|
This reflects the 2013 Stock Option Plan (the "2013 Plan") and the 2014 Director Stock Option Plan (the "2014 Director Plan"). The 2013 Plan was approved by the 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. 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. The 2013 Plan was amended by the stockholders at the annual stockholders
meeting held on July 1, 2015 to authorize an additional 450,000 shares of Class A common stock to be available for issuance under the Plan, of which up to 200,000 Class A common shares may be issued as up to 200,000 shares of Class C common
stock. The 2013 Plan was further amended by the stockholders at the annual stockholders meeting held on June 29, 2017 to authorize an additional 500,000 shares of Class A common stock to be available for issuance under the Plan, of which up
to 250,000 Class A common shares may be issued in place of up to 250,000 shares of Class C common stock.
|
(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 188,054 shares of Class A common stock available for future issuance under the 2013 Plan, and 17,610 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)
|
$
|
23,850
|
--
|
$
|
5,976
|
--
|
--
|
--
|
$
|
29,826
|
||||||||||||||||||
Gilbert A. Fuller (2)
|
23,850
|
--
|
5,976
|
--
|
--
|
--
|
29,826
|
|||||||||||||||||||||
Robert G. Hunter, M.D. (3)
|
21,600
|
--
|
5,976
|
--
|
--
|
--
|
27,576
|
|||||||||||||||||||||
H. Craig Moody (4)
|
23,850
|
--
|
5,976
|
--
|
--
|
--
|
29,826
|
|||||||||||||||||||||
Norman G. Wilbur (5)
|
23,850
|
--
|
5,976
|
--
|
--
|
--
|
29,826
|
(1)
|
Mr. Cook has options to purchase 45,289 shares of the Company’s Class A common stock.
|
(2)
|
Mr. Fuller has options to purchase 46,767 shares of the Company’s Class A common stock.
|
(3)
|
Dr. Hunter has options to purchase 73,239 shares of the Company’s Class A common stock.
|
(4)
|
Mr. Moody has options to purchase 72,773 shares of the Company’s Class A common stock.
|
(5)
|
Mr. Wilbur has options to purchase 30,505 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
|
--
|
--
|
--
|
--
|
$
|
566,241
|
||||||||||||||
Garrett S. Sill
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||
Stephen C. Johnson
|
--
|
--
|
--
|
--
|
$
|
37,319
|
||||||||||||||
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)
|
1,443,659
|
9.2
|
%
|
856,553
|
34.4
|
%
|
2,300,212
|
12.6
|
%
|
|||||||||||||||
401(k) Retirement Savings Plan (3)
|
2,132,195
|
13.6
|
%
|
-
|
-
|
2,132,195
|
11.7
|
%
|
||||||||||||||||
Scott M. Quist (4)(5)(6)(7)(8)
|
517,812
|
3.3
|
%
|
1,495,547
|
54.8
|
%
|
2,013,359
|
10.8
|
%
|
|||||||||||||||
M3 Funds, LLC (9)
|
1,073,409
|
6.7
|
%
|
-
|
-
|
1,073,409
|
5.8
|
%
|
||||||||||||||||
Non-Qualified Deferred Compensation Plan (10)
|
931,140
|
5.9
|
%
|
-
|
-
|
931,140
|
5.1
|
%
|
||||||||||||||||
Employee Stock Ownership Plan (ESOP) (11)
|
520,399
|
3.3
|
%
|
322,866
|
13.0
|
%
|
843,265
|
4.6
|
%
|
|||||||||||||||
Jason G. Overbaugh (12)
|
270,581
|
1.7
|
%
|
58,591
|
2.3
|
%
|
329,172
|
1.8
|
%
|
|||||||||||||||
S. Andrew Quist (6)(13)
|
207,657
|
1.3
|
%
|
61,216
|
2.4
|
%
|
268,873
|
1.5
|
%
|
|||||||||||||||
Associated Investors (14)
|
85,087
|
*
|
132,853
|
5.3
|
%
|
217,940
|
1.2
|
%
|
||||||||||||||||
Estate of George R. Quist
|
128,061
|
*
|
79,539
|
3.2
|
%
|
207,600
|
1.2
|
%
|
||||||||||||||||
Garrett S. Sill (5)(7)(15)
|
120,079
|
*
|
45,977
|
1.8
|
%
|
166,056
|
*
|
|||||||||||||||||
Jeffrey R. Stephens (16)
|
136,755
|
*
|
-
|
-
|
136,755
|
*
|
||||||||||||||||||
Adam G. Quist (17)
|
57,624
|
*
|
48,602
|
1.9
|
%
|
106,226
|
*
|
|||||||||||||||||
H. Craig Moody (18)
|
104,481
|
*
|
-
|
-
|
104,481
|
*
|
||||||||||||||||||
Stephen C. Johnson(5)(7)(19)
|
85,722
|
*
|
-
|
-
|
85,722
|
*
|
||||||||||||||||||
Robert G. Hunter, M.D. (6)(20)
|
80,901
|
*
|
-
|
-
|
80,901
|
*
|
||||||||||||||||||
Gilbert A. Fuller (21)
|
42,745
|
*
|
-
|
-
|
42,745
|
*
|
||||||||||||||||||
John L. Cook (22)
|
40,563
|
*
|
-
|
-
|
40,563
|
*
|
||||||||||||||||||
Norman G. Wilbur (23)
|
26,462
|
*
|
-
|
-
|
26,462
|
*
|
||||||||||||||||||
All directors and executive officers (12 persons)
|
1,691,382
|
10.3
|
%
|
1,709,933
|
59.4
|
%
|
3,401,315
|
17.5
|
%
|
(1)
|
Unless otherwise indicated, the address of each listed stockholder is c/o Security National Financial Corporation, 121 West Election Road, Suite 100, Draper, Utah 84020.
|
(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)
|
The investment committee of the 401(k) Retirement Savings Plan consists of Scott M. Quist, Stephen C. Johnson and Garrett S. Sill, who exercise shared voting and investment powers with respect to such shares.
|
(4)
|
Mr. Scott Quist is the Company’s Chairman of the Board, President, and Chief Executive Officer. Includes options to purchase 163,997 shares of Class A common stock and 237,995 shares of Class C common stock
that are currently exercisable or will become exercisable within 60 days of March 31, 2020. Mr. Quist’s options to purchase 237,995 shares of Class C common stock may also, at Mr. Quist’s election, consist of options to purchase 237,995
shares of Class A common stock, or any combination thereof. Mr. Quist has elected to purchase Class C common shares with such options to the extent there are sufficient authorized but unissued Class C common shares available for issuance with
respect to such options. Otherwise, Mr. Quist will elect to purchase shares of Class A common stock with respect to such options.
|
(5)
|
Does not include 2,132,195 shares of Class A common stock owned by the Company’s 401(k) Retirement Savings Plan, of which Scott M. Quist, Stephen C. Johnson and Garrett S. Sill are members of the investment
committee and, accordingly, exercise shared voting and investment powers with respect to such shares.
|
(6)
|
Does not include 520,399 shares of Class A common stock and 322,866 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.
|
(7)
|
Does not include 931,140 shares of Class A common stock owned by the Company’s Non-Qualified Deferred Compensation Plan, of which Scott M. Quist, Stephen C. Johnson and Garrett S. Sill are members of the
investment committee and, accordingly, exercise shared voting and investment powers with respect to such shares.
|
(8)
|
Does not include 85,087 shares of Class A common stock and 132,853 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.
|
(9)
|
Based solely on the Schedule 13G/A filed on February 12, 2020, Jason A. Stock, Manager of M3 Partners, LP, a Delaware limited partnership, and M3 Funds, LLC, a Delaware limited liability company, General
Partner of M3 Partners, LP; Jason A. Stock, Manager of M3 Funds, LLC; Jason A. Stock, Managing Director of M3F, Inc., a Utah corporation; Jason A. Stock, individually, and William C. Waller, individually, exercise shared voting and
investment powers with respect to 1,073,409 shares of the Company’s Class A common stock, or 6.7% of the outstanding shares of the Company’s Class A common stock. The address of all entities and individuals filing the Schedule 13G/A is 10
Exchange Place, Suite 510, Salt Lake City, Utah 84111.
|
(10)
|
The investment committee of the Company’s Non-Qualified Deferred Compensation Plan consists of Scott M. Quist, Stephen C. Johnson, and Garrett S. Sill, who exercise shared voting and investment powers with
respect to such shares.
|
(11)
|
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 with respect to such shares.
|
(12)
|
Mr. Overbaugh is the Company’s Vice President, National Marketing Director of Life Insurance, and a director. Includes options to purchase 104,113 shares of Class A common stock and options to purchase 58,591
shares of Class C common stock that are currently exercisable or will become exercisable within 60 days of March 31, 2020. The options to purchase 58,591 shares of Class C common stock may also, at Mr. Overbaugh’s election, consist of options
to purchase 58,591 shares of Class A common stock, or any combination thereof. Mr. Overbaugh has elected to purchase Class C common shares with such options to the extent there are sufficient authorized but unissued Class C common shares
available for issuance with respect to such options. Otherwise, Mr. Overbaugh will elect to purchase shares of Class A common stock with respect to such options.
|
(13)
|
Mr. Andrew Quist is the Company’s Vice President, General Counsel, and a director. Includes options to purchase 126,275 shares of Class A common stock and options to purchase 61,216 shares of Class C common
stock that are currently exercisable or will become exercisable within 60 days of March 31, 2020. The options to purchase 61,216 shares of Class C common stock may also, at Mr. Quist’s election, consist of options to purchase 61,216 shares of
Class A common stock, or any combination thereof. Mr. Andrew Quist has elected to purchase Class C common shares with such options to the extent there are sufficient authorized but unissued Class C common shares available for issuance with
respect to such options. Otherwise, Mr. Quist will elect to purchase shares of Class A common stock with respect to such options.
|
(14)
|
The managing general partner of Associated Investors is Scott M. Quist, who exercises sole voting and investment powers with respect to such shares.
|
(15)
|
Mr. Sill is the Company’s Chief Financial Officer and Treasurer. Includes options to purchase 46,629 shares of Class A common stock and options to purchase 45,977 shares of Class C common stock that are
currently exercisable or will become exercisable within 60 days of March 31, 2020. The options to purchase 45,977 shares of Class C common stock may also, at Mr. Sill’s election, consist of options to purchase 45,977 shares of Class A common
stock, or any combination thereof. Mr. Sill has elected to purchase Class C common shares with such options to the extent there are sufficient authorized but unissued Class C common shares available for issuance with respect to such options.
Otherwise, Mr. Sill will elect to purchase shares of Class A common stock with respect to such options.
|
(16)
|
Mr. Stephens is the Company’s Senior General Counsel and Secretary. Includes options to purchase 45,752 shares of Class A common stock granted to Mr. Stephens that are currently exercisable or will become
exercisable within 60 days of March 31, 2020.
|
(17)
|
Mr. Adam Quist is the Vice President – Memorial Services, Assistant Secretary, and General Counsel of the Company. Includes options to purchase 23,770 shares of Class A common stock and options to purchase
48,602 shares of Class C common stock that are currently exercisable or will become exercisable within 60 days of March 31, 2020. The options to purchase 48,602 shares of Class C common stock may also, at Mr. Quist’s election, consist of
options to purchase 48,602 shares of Class A common stock, or any combination thereof. Mr. Adam Quist has elected to purchase Class C common shares with such options to the extent there are sufficient authorized but unissued Class C common
shares available for issuance with respect to such options. Otherwise, Mr. Quist will elect to purchase shares of Class A common stock with respect to such options.
|
(18)
|
Mr. Moody is a director of the Company. Includes options to purchase 58,738 shares of Class A common stock granted to Mr. Moody that are currently exercisable or will become exercisable within 60 days of March
31, 2020.
|
(19)
|
Mr. Johnson is the Company’s Vice President of Mortgage Operations. Includes options to purchase 53,756 shares of Class A common stock granted to Mr. Johnson that are currently exercisable or will become
exercisable within 60 days of March 31, 2020.
|
(20)
|
Dr. Hunter is a director of the Company. Includes options to purchase 68,513 shares of Class A common stock granted to Dr. Hunter that are currently exercisable or will become exercisable within 60 days of
March 31, 2020.
|
(21)
|
Mr. Fuller is a director of the Company. Includes options to purchase 42,041 shares of Class A common stock granted to Mr. Fuller that are currently exercisable or will become exercisable within 60 days of
March 31, 2020.
|
(22)
|
Mr. Cook is a director of the Company. Includes options to purchase 40,563 shares of Class A common stock granted to Mr. Cook that are currently exercisable or will become exercisable within 60 days of March
31, 2020.
|
(23)
|
Mr. Wilbur is a director of the Company. Includes options to purchase 25,779 shares of Class A common stock granted to Mr. Wilbur that are currently exercisable or will become exercisable within 60 days of
March 31, 2020.
|
Fee Category
|
2019
|
2018
|
||||||
Audit Fees (1)
|
$
|
917,200
|
$
|
778,738
|
||||
Audit-Related Fees (2)
|
26,250
|
25,500
|
||||||
Tax Fees (3)
|
92,350
|
90,800
|
||||||
All Other Fees (4)
|
-
|
-
|
||||||
$
|
1,035,800
|
$
|
895,038
|
(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, 2019 and 2018.
|
(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
|
|
3.2
|
|
4.1
|
Specimen Class A Stock Certificate (1)
|
4.2
|
Specimen Class C Stock Certificate (1)
|
4.3
|
Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1)
|
10.1
|
Employee Stock Ownership Plan, as amended and restated (ESOP) and Trust Agreement (1)
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
|
10.10
|
14
|
|
21
|
|
23.1
|
|
23.2
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.xml
|
Instance Document
|
101.xsd
|
Taxonomy Extension Schema Document
|
101.cal
|
Taxonomy Extension Calculation Linkbase Document
|
101.def
|
Taxonomy Extension Definition Linkbase Document
|
101.lab
|
Taxonomy Extension Label Linkbase Document
|
101.pre
|
Taxonomy Extension Presentation Linkbase Document
|
(1)
|
Incorporated by reference from Registration Statement on Form S‑1, as filed on June 29, 1987
|
(2)
|
Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on June 2, 2014, related to Company’s Annual Meeting of Stockholders
|
(3)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2015
|
(4)
|
Incorporated by reference from Report on Form 10-Q, as filed on August 15, 2016
|
(5)
|
Incorporated by reference from Registration Statement on Form S-8, as filed on September 7, 2016
|
Incorporated by reference from Report on Form 10-K, as filed on March 31, 2017
|
|
(7)
|
Incorporated by reference from Report on Form 8-K, as filed on June 6, 2018
|
(8)
|
Incorporated by reference from Report on Form 10-Q, as filed on November 13, 2018
|
(9)
|
Incorporated by reference from Report on Form 8-K, as filed on February 28, 2019
|
(10)
|
Incorporated by reference from Report on Form 10-Q, as filed on May 15, 2019
|
(11)
|
Incorporated by reference from Report on Form 8-K, as filed on November 12, 2019
|
(12)
|
Incorporated by reference from Report on Form 8-K/A, as filed on February 26, 2020
|
SECURITY NATIONAL FINANCIAL CORPORATION
|
||
Dated: March 30, 2020
|
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 30, 2020
|
|
/s/ Garrett S. Sill
|
Chief Financial Officer and
|
|
Garrett S. Sill
|
Treasurer (Principal Financial
|
|
and Accounting Officer)
|
March 30, 2020
|
|
/s/ Jason G. Overbaugh
|
Vice President and Director
|
March 30, 2020
|
Jason G. Overbaugh
|
||
/s/ S. Andrew Quist
|
Vice President and Director
|
March 30, 2020
|
S. Andrew Quist
|
||
/s/ John L. Cook
|
Director
|
March 30, 2020
|
John L. Cook
|
||
/s/ Gilbert A. Fuller
|
Director
|
March 30, 2020
|
Gilbert A. Fuller
|
||
/s/ Robert G. Hunter
|
Director
|
March 30, 2020
|
Robert G. Hunter
|
||
/s/ H. Craig Moody
|
Director
|
March 30, 2020
|
H. Craig Moody
|
||
/s/ Norman G. Wilbur
|
Director
|
March 30, 2020
|
Norman G. Wilbur
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Assets
|
||||||||
Mortgage loans held for investment
|
$
|
2,952,000
|
$
|
2,179,000
|
||||
Accrued investment income
|
192,608
|
-
|
||||||
Cash
|
1,432,830
|
6,217,897
|
||||||
Investment in subsidiaries (equity method)
|
188,187,440
|
166,020,225
|
||||||
Receivable from affiliates
|
13,190,260
|
13,136,647
|
||||||
Restricted cash
|
3,180,382
|
3,265,075
|
||||||
Property and equipment, at cost, net of accumulated depreciation of $1,659,613 for 2019 and $1,659,613 for 2018
|
-
|
-
|
||||||
Other
|
2,422
|
-
|
||||||
Total assets
|
$
|
209,137,942
|
$
|
190,818,844
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Liabilities and Stockholders’ Equity Liabilities
|
||||||||
Bank and other loans payable:
|
||||||||
Current installments
|
$
|
1,334,798
|
$
|
579,286
|
||||
Long-term
|
3,903,821
|
1,238,619
|
||||||
Advances from affiliated companies
|
640,774
|
9,089,255
|
||||||
Other liabilities and accrued expenses
|
1,847,705
|
1,892,261
|
||||||
Income taxes
|
4,700,239
|
6,208,250
|
||||||
Total liabilities
|
12,427,337
|
19,007,671
|
||||||
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 16,107,779 shares in 2019 and 15,304,798 shares in 2018
|
32,215,558
|
30,609,596
|
||||||
Class B non-voting common stock-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Class C convertible common stock, $2.00 par value; 3,000,000 shares authorized; issued 2,500,887 shares in 2019 and 2,193,643 shares in 2018
|
5,001,774
|
4,387,286
|
||||||
Additional paid-in capital
|
46,091,112
|
41,821,778
|
||||||
Accumulated other comprehensive income, net of taxes
|
13,726,514
|
(2,823
|
)
|
|||||
Retained Earnings
|
101,256,229
|
95,201,732
|
||||||
Treasury stock at cost - 490,823 Class A shares and -0- Class C shares in 2019; 302,541 Class A shares and -0- Class C shares in 2018, held by affiliated companies
|
(1,580,582
|
)
|
(206,396
|
)
|
||||
Total stockholders’ equity
|
196,710,605
|
171,811,173
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
209,137,942
|
$
|
190,818,844
|
Years Ended
December 31
|
||||||||
2019
|
2018
|
|||||||
Revenue
|
||||||||
Net investment income
|
$
|
260,022
|
$
|
186,464
|
||||
Fees from affiliates
|
1,152,480
|
1,151,763
|
||||||
Other Income
|
23,864
|
48,219
|
||||||
Total revenue
|
1,436,366
|
1,386,446
|
||||||
Benefits and Expenses:
|
||||||||
General and administrative expenses
|
1,100,010
|
570,869
|
||||||
Interest expense
|
68,821
|
90,793
|
||||||
Total benefits and expenses
|
1,168,831
|
661,662
|
||||||
Earnings before income taxes, and earnings of subsidiaries
|
267,535
|
724,784
|
||||||
Income tax benefit
|
304,548
|
20,793
|
||||||
Equity in earnings of subsidiaries
|
10,321,436
|
20,940,502
|
||||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
Years Ended December 31
|
||||||||
2019
|
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
10,893,519
|
$
|
21,686,079
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Undistributed earnings of affiliates
|
10,321,436
|
20,940,502
|
||||||
Provision for deferred and other income taxes
|
(1,508,011
|
)
|
(21,034
|
)
|
||||
Stock based compensation expense
|
256,996
|
237,123
|
||||||
Benefit plans funded with treasury stock
|
695,560
|
1,480,913
|
||||||
Change in assets and liabilities:
|
||||||||
Other assets
|
(2,422
|
)
|
-
|
|||||
Other liabilities
|
(44,558
|
)
|
752,154
|
|||||
Net cash provided by operating activities
|
20,612,520
|
45,075,737
|
||||||
-
|
-
|
|||||||
Cash flows from investing activities:
|
||||||||
Investment in subsidiaries
|
(18,759,314
|
)
|
(40,644,827
|
)
|
||||
Mortgage loans held for investment made
|
(2,593,000
|
)
|
(3,893,000
|
)
|
||||
Payments received for mortgage loans held for investment
|
1,820,000
|
3,439,000
|
||||||
Net cash used in investing activities
|
(19,532,314
|
)
|
(41,098,827
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Advances to affiliates
|
(8,694,702
|
)
|
1,889,398
|
|||||
Purchase of treasury stock
|
(1,539,888
|
)
|
(215,521
|
)
|
||||
Proceeds from stock options exercised
|
863,910
|
57,412
|
||||||
Repayment of bank loans
|
(579,286
|
)
|
(640,204
|
)
|
||||
Proceeds from borrowing on bank loans
|
4,000,000
|
-
|
||||||
Net cash provided by (used in) financing activities
|
(5,949,966
|
)
|
1,091,085
|
|||||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
|
(4,869,760
|
)
|
5,067,995
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
9,482,972
|
4,414,977
|
||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
$
|
4,613,212
|
$
|
9,482,972
|
December 31
|
||||||||
2019
|
2018
|
|||||||
4.27% fixed note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2021.
|
$
|
1,238,619
|
$
|
1,817,905
|
||||
Prime rate note payable in monthly installements of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2024
|
4,000,000
|
-
|
||||||
Total bank and other loans
|
5,238,619
|
1,817,905
|
||||||
Less current installments
|
1,334,798
|
579,286
|
||||||
Bank and other loans, excluding current installments
|
$
|
3,903,821
|
$
|
1,238,619
|
2020
|
$
|
1,334,798
|
||
2021
|
1,394,369
|
|||
2022
|
797,923
|
|||
2023
|
837,210
|
|||
2024
|
874,319
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
5,238,619
|
December 31
|
||||||||
2019
|
2018
|
|||||||
Non-interest bearing advances from affiliates:
|
||||||||
Cemetery and Mortuary subsidiary
|
$
|
638,418
|
$
|
1,459,841
|
||||
Life insurance subsidiaries
|
2,356
|
7,629,414
|
||||||
$
|
640,774
|
$
|
9,089,255
|
Percentage
|
||||||||||||||||||||
Ceded to
|
Assumed
|
of Amount
|
||||||||||||||||||
Direct
|
Other
|
from Other
|
Net
|
Assumed
|
||||||||||||||||
Amount
|
Companies
|
Companies
|
Amount
|
to Net
|
||||||||||||||||
2019
|
||||||||||||||||||||
Life Insurance in force ($000)
|
$
|
2,778,103
|
$
|
465,460
|
$
|
99,299
|
$
|
2,411,942
|
4.1
|
%
|
||||||||||
Premiums:
|
||||||||||||||||||||
Life Insurance
|
$
|
81,825,194
|
$
|
547,762
|
$
|
472,886
|
$
|
81,750,318
|
0.6
|
%
|
||||||||||
Accident and Health Insurance
|
110,282
|
-
|
10
|
110,292
|
0.0
|
%
|
||||||||||||||
Total premiums
|
$
|
81,935,476
|
$
|
547,762
|
$
|
472,896
|
$
|
81,860,610
|
0.6
|
%
|
||||||||||
2018
|
||||||||||||||||||||
Life Insurance in force ($000)
|
$
|
1,735,888
|
$
|
56,707
|
$
|
102,600
|
$
|
1,781,781
|
5.8
|
%
|
||||||||||
Premiums:
|
||||||||||||||||||||
Life Insurance
|
$
|
75,754,594
|
$
|
432,647
|
$
|
510,514
|
$
|
75,832,461
|
0.7
|
%
|
||||||||||
Accident and Health Insurance
|
96,437
|
-
|
12
|
96,449
|
0.0
|
%
|
||||||||||||||
Total premiums
|
$
|
75,851,031
|
$
|
432,647
|
$
|
510,526
|
$
|
75,928,910
|
0.7
|
%
|
Additions
|
Deductions
|
|||||||||||||||||||
Balance at
|
Charged to
|
Disposals
|
Balance
|
|||||||||||||||||
Beginning
|
Costs and
|
and
|
at End of
|
|||||||||||||||||
of Year
|
Expenses
|
Write-offs
|
Reclassifications
|
Year
|
||||||||||||||||
For the Year Ended December 31, 2019
|
||||||||||||||||||||
|
||||||||||||||||||||
Accumulated depreciation on real estate held for investment
|
$
|
16,739,578
|
$
|
3,472,289
|
$
|
(2,093,633
|
)
|
$
|
(5,329,495
|
)
|
$
|
12,788,739
|
||||||||
|
||||||||||||||||||||
Allowance for losses on mortgage loans held for investment
|
1,347,972
|
137,757
|
(32,692
|
)
|
-
|
1,453,037
|
||||||||||||||
Accumulated depreciation on property and equipment
|
17,496,601
|
1,711,369
|
(69,878
|
)
|
380,799
|
19,518,891
|
||||||||||||||
|
||||||||||||||||||||
Allowance for doubtful accounts on receivables
|
1,519,842
|
267,374
|
(63,060
|
)
|
-
|
1,724,156
|
||||||||||||||
Allowance for doubtful accounts on other investments
|
1,092,528
|
797,557
|
(442,059
|
)
|
-
|
1,448,026
|
||||||||||||||
For the Year Ended December 31, 2018
|
||||||||||||||||||||
|
||||||||||||||||||||
Accumulated depreciation on real estate held for investment
|
$
|
18,788,869
|
$
|
3,589,184
|
$
|
(5,638,475
|
)
|
$
|
-
|
$
|
16,739,578
|
|||||||||
|
||||||||||||||||||||
Allowance for losses on mortgage loans held for investment
|
1,768,796
|
(415,099
|
)
|
(5,725
|
)
|
-
|
1,347,972
|
|||||||||||||
Accumulated depreciation on property and equipment
|
17,572,326
|
1,867,001
|
(1,942,726
|
)
|
-
|
17,496,601
|
||||||||||||||
|
||||||||||||||||||||
Allowance for doubtful accounts on receivables
|
1,544,518
|
71,326
|
(96,002
|
)
|
-
|
1,519,842
|
||||||||||||||
|
||||||||||||||||||||
Allowance for doubtful accounts on other investments
|
846,641
|
721,456
|
(475,569
|
)
|
-
|
1,092,528
|
Life Insurance Segment
|
Security National Life Insurance Company
|
Reppond Holding Company
|
First Guaranty Insurance Company
|
Kilpatrick Life Insurance Company
|
Care Management Group, LLC
|
Bluebonnet Properties, LLC
|
Kilpatrick Financial, Inc.
|
KLIC Properties Texas, LLC
|
Arbor Terrace, LLC
|
Memorial Insurance Company of America
|
Southern Security Life Insurance Company, Inc.
|
Trans-Western Life Insurance Company
|
SN Farmington LLC
|
New York Land Holdings, Inc.
|
Dry Creek Property Development, Inc.
|
SN Nevada LLC
|
5300 Development LLC
|
Ascension 433 LLC
|
SN Diamond LLC
|
Security National Funding Company
|
Security National Real Estate Services, Inc. also dba Security National Commercial Capital
|
Marketing Source Center, Inc. dba Security National Travel Services
|
SNFC Subsidiary, LLC
|
American Funeral Financial, LLC
|
FFC Acquisition Co., LLC dba Funeral Funding Center
|
Canadian Funeral Financial, LLC
|
Mortician's Choice, LLC
|
C & J Financial, LLC
|
Beta Capital Corp.
|
Mortgage Segment
|
SecurityNational Mortgage Company
|
EverLEND Mortgage Company
|
SN Sunset LLC
|
Cemetery/Mortuary Segment
|
California Memorial Estates, Inc.
|
Paradise Chapel Funeral Home
|
Holladay Memorial Park, Inc.
|
Greer-Wilson Funeral Home, Inc.
|
Cottonwood Mortuary, Inc.
|
Deseret Memorial, Inc.
|
Holladay Cottonwood Memorial Foundation
|
Memorial Estates, Inc.
|
SN Mapleton, LLC
|
SN Shadow Cliffs, LLC
|
SN Grasslands, LLC
|
SN Midway, LLC
|
Memorial Mortuary, Inc.
|
Affordable Funerals and Cremations of America, Inc.
|
SN Probst 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
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to
record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
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
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to
record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
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)
|
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