XML 59 R46.htm IDEA: XBRL DOCUMENT v3.21.1
17) Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Table Text Block Supplement [Abstract]  
Schedule of fair value assets and liabilities measured on a recurring basis

The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2020.

 

  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  $       294,656,679    $                        -    $     292,455,504    $          2,201,175
Equity securities             11,324,239              11,324,239                              -                               -
Loans held for sale           422,772,418                              -                              -            422,772,418
Restricted assets (1)               1,473,637                              -               1,473,637                               -
Restricted assets (2)               2,515,778                2,515,778                              -                               -
Cemetery perpetual care trust investments (1)                  747,767                              -                  747,767                               -
Cemetery perpetual care trust investments (2)               2,062,303                2,062,303                              -                               -
Derivatives - loan commitments (3)             12,592,672                              -                              -              12,592,672
Total assets accounted for at fair value on a
   recurring basis		  $       748,145,493    $        15,902,320    $     294,676,908    $      437,566,265
               
Liabilities accounted for at fair value on a
   recurring basis		              
Derivatives - call options (4)  $              (43,097)    $             (43,097)    $                        -    $                         -
Derivatives - loan commitments (4)             (2,464,062)                              -                              -              (2,464,062)
Total liabilities accounted for at fair value
   on a recurring basis 		 $         (2,507,159)    $             (43,097)    $                        -    $        (2,464,062)
                                            
(1) Fixed maturity securities available for sale              
(2) 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    

 

The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2019.

 

  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    
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:

 

            Significant   Range of Inputs    
    Fair Value at   Valuation   Unobservable   Minimum Maximum   Weighted
    12/31/2020   Technique   Input(s)   Value Value   Average
Loans held for sale   $422,772,418   Market approach   Investor contract pricing as a percentage of unpaid principal balance   99.0% 110.0%   104.0%
                       
Derivatives - loan commitments (net)      10,128,610   Market approach   Pull-through rate   52.0% 92.0%   81.0%
            Initial-Value   N/A N/A   N/A
            Servicing   0 bps 184 bps   58 bps
                       
Fixed maturity securities available for sale        2,201,175   Broker quotes   Pricing quotes    $    90.83  $  119.33    $   113.47

 

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:

 

            Significant   Range of Inputs    
    Fair 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   Pull-through rate   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
Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs

Following is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

 

     Net Derivatives Loan Commitments    Loans Held for Sale    Fixed Maturity Securities Available for Sale  
               
Balance - December 31, 2019    $           2,491,233    $      213,457,632    $              3,216,382  
Originations/purchases                                -         5,627,013,749                                   -  
Sales, maturities and paydowns                                -        (5,600,045,285)                   (1,042,400)  
Transfer to mortgage loans held for investment                                -             (16,960,549)                                   -  
Total gains (losses):              
Included in earnings                 7,637,377 (1)          199,306,871 (1)                         3,408 (2)
Included in other comprehensive income                                -                               -                         23,785  
               
Balance - December 31, 2020    $         10,128,610    $      422,772,418    $              2,201,175  
               
(1) As a component of mortgage fee income on the consolidated statements of earnings  
(2) As a component of net investment income on the consolidated statements of earnings  

 

Following is a summary of changes in the consolidated balance sheet line items measured using level 3 inputs:

 

     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, maturities and paydowns                                -        (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
Fair Value Assets Measured on a Nonrecurring Basis

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at December 31, 2020.

 

  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  $        1,297,356    $                        -    $                -    $        1,297,356
Impaired real estate held for sale            4,249,000                              -                      -              4,249,000
Total assets accounted for at fair value on
   a nonrecurring basis		  $        5,546,356    $                        -    $                -    $        5,546,356

 

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at December 31, 2019.

 

  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
Schedule of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2020:

 

  Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value
Assets                  
Mortgage loans held for investment                  
   Residential  $     92,757,613    $                -    $                    -    $   100,384,283    $   100,384,283
   Residential construction      110,849,864                     -                          -        110,849,864        110,849,864
   Commercial        45,736,459                     -                          -          45,259,425          45,259,425
Mortgage loans held for investment, net  $   249,343,936    $                -    $                    -    $   256,493,572    $   256,493,572
Policy loans        14,171,589                     -                          -          14,171,589          14,171,589
Insurance assignments, net (1)        51,585,656                     -                          -          51,585,656          51,585,656
Restricted assets (2)          3,317,877                     -                          -            3,317,877             3,317,877
Cemetery perpetual care trust investments (2)           1,468,600                     -                          -            1,468,600            1,468,600
Mortgage servicing rights, net        35,210,516                     -                          -          38,702,358          38,702,358
                   
Liabilities                  
Bank and other loans payable  $(297,824,368)    $                -    $                    -    $ (297,824,368)    $ (297,824,368)
Policyholder account balances (3)      (44,026,809)                     -                          -        (42,220,725)        (42,220,725)
Future policy benefits - annuities (3)    (106,522,113)                     -                          -      (112,354,186)      (112,354,186)
                                                  
(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        

 

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2019:

 

  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