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15) Business Segment Information
 12 Months Ended
Dec. 31, 2020
Disclosure Text Block [Abstract]  
15) Business Segment Information

15)       Business Segment Information

 

Description of Products and Services by Segment

 

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

 

Measurement of Segment Profit or Loss and Segment Assets

 

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

 

Factors Management Used to Identify the Enterprise’s Reportable Segments

 

The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported.

 

  2020
  Life   Cemetery/     Intercompany  
  Insurance   Mortuary   Mortgage   Eliminations   Consolidated
Revenues:                  
From external sources:                  
Revenue from customers  $       93,020,617    $       20,307,435    $     298,933,110    $                         -    $     412,261,162
Net investment income           54,811,486                  807,695                  710,622                               -             56,329,803
Gains on investments and other assets             2,088,541                (162,652)                         (39)                               -               1,925,850
Other than temporary impairments              (370,975)                              -                              -                               -                (370,975)
Other revenues             1,491,585                    94,349               9,731,548                               -             11,317,482
Intersegment revenues:                  
Net investment income             8,022,503                  351,505                  716,240               (9,090,248)                              -
Total revenues         159,063,757             21,398,332           310,091,481               (9,090,248)           481,463,322
Expenses:                  
Death, surrenders and other policy benefits           62,841,360                              -                              -                               -             62,841,360
Increase in future policy benefits           23,568,650                              -                              -                               -             23,568,650
Amortization of deferred policy and pre-need acquisition costs and value of business acquired           13,618,204                  689,221                              -                               -             14,307,425
Selling, general and administrative expenses:                  
Commissions             4,149,241               1,506,320           118,770,736                               -           124,426,297
Personnel           25,449,100               5,669,367             53,871,504                               -             84,989,971
Advertising                614,114                  391,836               4,374,946                               -               5,380,896
Rent and rent related                861,602                    89,253               5,922,706                               -               6,873,561
Depreciation on property and equipment                843,335                  488,570                  746,833                               -               2,078,738
Provision for loan loss reserve                            -                              -             16,506,030                               -             16,506,030
Cost related to funding mortgage loans                            -                              -               9,877,700                               -               9,877,700
Intersegment                621,161                  142,999                  580,976               (1,345,136)                              -
Other           11,808,818               4,417,805             31,104,479                               -             47,331,102
Interest expense:                  
Intersegment                410,024                  152,175               7,182,913               (7,745,112)                              -
Other             2,354,760                  198,968               6,025,082                               -               8,578,810
Costs of goods and services sold-mortuaries and cemeteries                            -               3,252,655                              -                               -               3,252,655
Total benefits and expenses         147,140,369             16,999,169           254,963,905               (9,090,248)           410,013,195
Earnings before income taxes  $       11,923,388    $         4,399,163    $       55,127,576    $                         -    $       71,450,127
Income tax benefit (expense)           (1,433,901)             (1,009,137)           (13,410,476)                               -           (15,853,514)
Net earnings  $       10,489,487    $         3,390,026    $       41,717,100    $                         -    $       55,596,613
                   
Identifiable assets  $  1,171,158,235    $       56,335,498    $     408,325,196    $       (90,398,039)    $  1,545,420,890
                   
Goodwill  $         2,765,570    $            754,018    $                        -    $                         -    $         3,519,588

 

  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