2) Investments (Tables)

12 Months Ended

Dec. 31, 2020

Table Text Block Supplement [Abstract]

Available for sale

The Company’s investments as of December 31, 2020 are summarized as follows:

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
December 31, 2020:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$    42,381,805	$     1,358,562	$                    -	$    43,740,367
Obligations of states and political subdivisions	5,383,762	312,214	(1,261)	5,694,715
Corporate securities including public utilities	186,067,912	27,216,496	(681,478)	212,602,930
Mortgage-backed securities	31,047,791	1,565,377	(267,106)	32,346,062
Redeemable preferred stock	269,214	3,391	-	272,605
Total fixed maturity securities available for sale	$  265,150,484	$   30,456,040	$      (949,845)	$  294,656,679
Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$      9,698,490	$     2,376,156	$       (750,407)	$    11,324,239
Total equity securities at estimated fair value	$      9,698,490	$     2,376,156	$       (750,407)	$    11,324,239
Mortgage loans held for investment at amortized cost:
Residential	$    95,822,448
Residential construction	111,111,777
Commercial	46,836,866
Less: Unamortized deferred loan fees, net	(1,161,132)
Less: Allowance for loan losses	(2,005,127)
Less: Net discounts	(1,260,896)
Total mortgage loans held for investment	$  249,343,936
Real estate held for investment - net of accumulated depreciation:
Residential	$    24,843,743
Commercial	106,840,710
Total real estate held for investment	$  131,684,453
Real estate held for sale:
Residential	$      3,478,254
Commercial	4,400,553
Total real estate held for sale	$      7,878,807
Other investments and policy loans at amortized cost:
Policy loans	$    14,171,589
Insurance assignments	53,231,131
Federal Home Loan Bank stock (1)	2,506,600
Other investments	5,432,816
Less: Allowance for doubtful accounts	(1,645,475)
Total policy loans and other investments	$    73,696,661
Accrued investment income	$      5,360,523
Total investments	$  773,945,298
(1) Includes $866,900 of Membership stock and $1,639,700 of Activity stock due to short-term borrowings.

The Company’s investments as of December 31, 2019 are summarized as follows:

	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.

Schedule of Unrealized Loss on Investments

The unrealized losses were primarily related to interest rate fluctuations and uncertainties relating to COVID-19. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

	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, 2020
Obligations of States and Political Subdivisions	$        1,261	$    206,812	$               -	$               -	$        1,261	$    206,812
Corporate Securities	242,596	9,919,298	438,882	2,593,026	681,478	12,512,324
Mortgage and other asset-backed securities	266,522	3,455,574	584	51,961	267,106	3,507,535
Total unrealized losses	$    510,379	$13,581,684	$   439,466	2,644,987	$    949,845	$16,226,671
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

Schedule of earnings on fixed maturity securities

The following table presents a rollforward of the Company's cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale for the years ended December 31:

	2020	2019
Balance of credit-related OTTI at January 1	$                        -	$                       -
Additions for credit impairments recognized on:
Securities not previously impaired	370,975	-
Securities previously impaired	-	-
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period (realized)	-	-
Securities due to an increase in expected cash flows	-	-
Balance of credit-related OTTI at December 31	$            370,975	$                       -

Investments Classified by Contractual Maturity Date

Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized	Estimated Fair
	Cost	Value
Due in 1 year	$      28,634,042	$        28,831,983
Due in 2-5 years	66,183,907	70,910,775
Due in 5-10 years	70,162,166	78,592,046
Due in more than 10 years	68,853,364	83,703,208
Mortgage-backed securities	31,047,791	32,346,062
Redeemable preferred stock	269,214	272,605
Total	$    265,150,484	$      294,656,679

Gain (Loss) on Investments

The Company’s net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments from investments and other assets for the years ended December 31 are summarized as follows:

	2020	2019
Fixed maturity securities available for sale:
Gross realized gains	$         445,749	$         459,286
Gross realized losses	(77,546)	(162,649)
Other than temporary impairments	(370,975)	-
Equity securities:
Gains on securities sold	74,836	256,520
Unrealized gains on securities held at the end of the period	1,125,304	1,086,116
Other assets:
Gross realized gains	2,342,418	2,844,673
Gross realized losses	(1,984,911)	(3,755,579)
Total	$      1,554,875	$         728,367

Schedule of Major categories of net investment income

Major categories of net investment income for the years ended December 31, were as follows:

	2020	2019
Fixed maturity securities available for sale	$ 12,233,394	$ 10,372,559
Equity securities	642,433	309,918
Mortgage loans held for investment	25,672,746	18,405,010
Real estate held for investment and sale	11,945,401	8,782,959
Policy loans	1,025,179	554,969
Insurance assignments	17,837,578	16,086,059
Other investments	126,013	184,439
Cash and cash equivalents	426,623	1,824,443
Gross investment income	69,909,367	56,520,356
Investment expenses	(13,579,564)	(13,500,883)
Net investment income	$ 56,329,803	$ 43,019,473

Commercial Real Estate Investment

The Company’s commercial real estate held for investment for the years ended December 31, is summarized as follows:

	Net Ending Balance		Total Square Footage
	2020	2019	2020	2019
Louisiana	$    2,998,684	$  6,009,079	84,841	125,114
Mississippi	2,914,498	2,951,478	21,521	21,521
Utah (1)	100,927,528	81,266,083	379,066	465,230
	$ 106,840,710	$ 90,226,640	485,428	611,865
(1) Includes Center53 phase 1 and phase 2 which is under construction.

The Company’s commercial real estate held for sale for the years ended December 31, is summarized as follows:

	Net Ending Balance		Total Square Footage
	2020	2019	2020	2019
Arizona (1)	$               -	$        2,500	-	-
Kansas	4,000,000	4,800,000	222,679	222,679
Mississippi	151,553	318,322	12,300	12,300
Nevada	-	655,499	-	4,800
Texas (2)	249,000	300,000	-	-
	$  4,400,553	$  6,076,321	234,979	239,779
(1) Undeveloped land
(2) Improved commercial pad

Residential Real Estate Investment

The Company’s residential real estate held for investment for the years ended December 31, is summarized as follows:

	Net Ending Balance
	2020	2019
Florida	-	2,487,723
Nevada	-	293,516
Utah (1)	24,557,562	9,462,886
Washington (2)	286,181	286,181
	$   24,843,743	$ 12,530,306
(1) Including subdivision land developments
(2) Improved residential lots

The Company’s residential real estate held for sale for the years ended December 31, is summarized as follows:

	Net Ending Balance
	2020	2019
California	-	640,452
Florida	744,322	1,300,641
Nevada	979,640	-
Ohio	10,000	10,000
Utah	1,744,292	5,880,213
Washington	-	190,000
	$    3,478,254	$  8,021,306

Schedule of subdivision land development

Additional information regarding the Company’s subdivision land developments in Utah for the years ended December 31, is summarized as follows:

	2020	2019
Lots available for sale	36	48
Lots to be developed	350	174
Ending Balance (1)	$   23,777,478	$  7,889,576
(1) The estimated remaining cost to complete the undeveloped lots is $17,354,000 and $1,900,000 as of December 31, 2020 and 2019, respectively.

Real Estate Owned and Occupied by the Company

As of December 31, 2020, real estate owned and occupied by the Company is summarized as follows:

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

Schedule of Allowance for loan losses as a contra-asset account

The Company establishes a valuation allowance for credit losses in its portfolio. The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented:

Allowance for Credit Losses and Recorded Investment in Mortgage Loans Held for Investment
Years Ended December 31
	Commercial	Residential	Residential Construction	Total
2020
Allowance for credit losses:
Beginning balance	$      187,129	$     1,222,706	$        43,202	$     1,453,037
Charge-offs	-	-	-	-
Provision	-	552,090	-	552,090
Ending balance	$      187,129	$     1,774,796	$        43,202	$     2,005,127
Ending balance: individually evaluated for impairment	$                  -	$        219,905	$                  -	$        219,905
Ending balance: collectively evaluated for impairment	$      187,129	$     1,554,891	$        43,202	$     1,785,222
Mortgage loans:
Ending balance	$ 46,836,866	$ 111,111,777	$ 95,822,448	$ 253,771,091
Ending balance: individually evaluated for impairment	$   2,148,827	$     7,932,680	$      200,963	$   10,282,470
Ending balance: collectively evaluated for impairment	$ 44,688,039	$ 103,179,097	$ 95,621,485	$ 243,488,621
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

Schedule of aging of mortgage loans

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
2020
Commercial	$   233,200	$     812,780	$   2,148,827	$                    -	$  3,194,807	$  43,642,059	$       46,836,866	$    (187,129)	$       (32,557)	$    (880,721)	$  45,736,459
Residential	5,866,505	2,048,148	5,669,583	2,263,097	15,847,333	79,975,115	95,822,448	(1,774,796)	(909,864)	(380,175)	92,757,613
Residential  Construction	127,191	-	-	200,963	328,154	110,783,623	111,111,777	(43,202)	(218,711)	-	110,849,864
Total	$ 6,226,896	$ 2,860,928	$   7,818,410	$     2,464,060	$ 19,370,294	$ 234,400,797	$       253,771,091	$ (2,005,127)	$  (1,161,132)	$  (1,260,896)	$ 249,343,936
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
(1)  There was not any interest income recognized on loans past due greater than 90 days or in foreclosure.

Schedule of Impaired Mortgage Loans

The recorded investment in and unpaid principal balance of impaired loans along with the related loan specific allowance for losses, if any, for each reporting period and the average recorded investment and interest income recognized during the time the loans were impaired were as follows:

Impaired Loans
Years Ended December 31
	Recorded Investment	Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
2020
With no related allowance recorded:
Commercial	$ 2,148,827	$   2,148,827	$                -	$       1,866,819	$                -
Residential	6,415,419	6,415,419	-	5,010,078	-
Residential construction	200,963	200,963	-	555,278	-
With an allowance recorded:
Commercial	$                -	$                  -	$                -	$                      -	$                -
Residential	1,517,261	1,517,261	219,905	1,182,368	-
Residential construction	-	-	-	-	-
Total:
Commercial	$ 2,148,827	$   2,148,827	$                -	$       1,866,819	$                -
Residential	7,932,680	7,932,680	219,905	6,192,446	-
Residential construction	200,963	200,963	-	555,278	-
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	-

Schedule Of Credit Risk Of Mortgage Loans Based On Performance Status:

The Company’s performing and non-performing mortgage loans held for investment were as follows:

Mortgage Loans Held for Investment Credit Exposure
Credit Risk Profile Based on Payment Activity
Years Ended December 31
	Commercial		Residential		Residential Construction		Total
	2020	2019	2020	2019	2020	2019	2020	2019
Performing	$ 44,688,039	$ 34,229,501	$   87,889,768	$109,291,758	$   110,910,814	$  88,775,237	$     243,488,621	$ 232,296,496
Non-performing	2,148,827	4,488,719	7,932,680	3,752,207	200,963	655,000	10,282,470	8,895,926
Total	$ 46,836,866	$ 38,718,220	$   95,822,448	$113,043,965	$   111,111,777	$  89,430,237	$     253,771,091	$ 241,192,422

Schedule of Mortgage loans on a nonaccrual status

The following is a summary of mortgage loans held for investment on a non-accrual status for the periods presented.

	Mortgage Loans on Non-accrual Status
	Years Ended December 31
	2020	2019
Commercial	$           2,148,827	$            4,488,719
Residential	7,932,680	3,752,207
Residential construction	200,963	655,000
Total	$         10,282,470	$            8,895,926

Schedule of principal payments

Expected principal payments may differ from contractual obligations because certain borrowers may elect to pay off mortgage obligations with or without early payment penalties.

		Principal	Principal	Principal
		Amounts	Amounts	Amounts
		Due in	Due in	Due
	Total	1 Year	2-5 Years	Thereafter
Residential	$      95,822,448	$  11,202,899	$ 17,774,238	$   66,845,311
Residential Construction	111,111,777	$ 103,391,044	$   7,720,733	-
Commercial	46,836,866	27,111,325	11,101,138	8,624,403
Total	$    253,771,091	$ 141,705,268	$ 36,596,109	$   75,469,714