3) Investments (Tables)

3 Months Ended

Mar. 31, 2021

Table Text Block Supplement [Abstract]

Available for sale

The Company’s investments as of March 31, 2021 are summarized as follows:

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
March 31, 2021:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$ 42,427,856	$ 1,099,519	$ -	$ 43,527,375
Obligations of states and political subdivisions	5,370,754	209,554	(24,569)	5,555,739
Corporate securities including public utilities	179,026,864	21,203,792	(501,358)	199,729,298
Mortgage-backed securities	29,799,733	892,449	(236,547)	30,455,635
Redeemable preferred stock	269,214	13,267	-	282,481
Total fixed maturity securities available for sale	$ 256,894,421	$ 23,418,581	$ (762,474)	$ 279,550,528
Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$ 8,913,275	$ 2,586,343	$ (345,123)	$ 11,154,495
Total equity securities at estimated fair value	$ 8,913,275	$ 2,586,343	$ (345,123)	$ 11,154,495
Mortgage loans held for investment at amortized cost:
Residential	$ 88,266,355
Residential construction	105,450,591
Commercial	55,065,455
Less: Unamortized deferred loan fees, net	(1,223,014)
Less: Allowance for loan losses	(1,897,155)
Less: Net discounts	(710,280)
Total mortgage loans held for investment	$ 244,951,952
Real estate held for investment - net of accumulated depreciation:
Residential	$ 39,752,530
Commercial	117,288,006
Total real estate held for investment	$ 157,040,536
Real estate held for sale:
Residential	$ 1,156,313
Commercial	4,400,553
Total real estate held for sale	$ 5,556,866
Other investments and policy loans at amortized cost:
Policy loans	$ 13,946,739
Insurance assignments	54,618,319
Federal Home Loan Bank stock (1)	2,544,700
Other investments	5,242,786
Less: Allowance for doubtful accounts	(1,662,394)
Total policy loans and other investments	$ 74,690,150
Accrued investment income	$ 6,266,403
Total investments	$ 779,210,930

(1) Includes $905,700 of Membership stock and $1,639,000 of Activity stock due to short-term borrowings.

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.

Schedule of Unrealized Loss on Investments

The following tables summarize unrealized losses on fixed maturity securities available for sale, which were carried at estimated fair value, at March 31, 2021 and December 31, 2020. 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 March 31, 2021
Obligations of States and Political Subdivisions	$ 24,569	$ 778,979	$ -	$ -	$ 24,569	$ 778,979
Corporate Securities	137,661	9,760,180	363,697	9,199,818	501,358	18,959,998
Mortgage and other asset-backed securities	90,713	5,235,918	145,834	2,026,009	236,547	7,261,927
Total unrealized losses	$ 252,943	$ 15,775,077	$ 509,531	$ 11,225,827	$ 762,474	$ 27,000,904
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

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 three months ended March 31:

	2021	2020
Balance of credit-related OTTI at January 1	$ 370,975	$ -
Additions for credit impairments recognized on:
Securities not previously impaired	-	-
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 March 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 Cost	Estimated Fair    Value
Due in 1 year	$ 21,362,110	$ 21,444,660
Due in 2-5 years	66,817,800	71,062,356
Due in 5-10 years	70,609,309	77,487,611
Due in more than 10 years	68,036,255	78,817,785
Mortgage-backed securities	29,799,733	30,455,635
Redeemable preferred stock	269,214	282,481
Total	$ 256,894,421	$ 279,550,528

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 are summarized as follows:

	Three Months Ended March 31
	2021	2020
Fixed maturity securities:
Gross realized gains	$ 97,622	$ 95,821
Gross realized losses	(24,997)	-
Equity securities:
Gains (losses) on securities sold	106,569	(57,442)
Unrealized gains and (losses) on securities held at the end of the period	952,030	(2,761,856)
Other assets:
Gross realized gains	1,109,358	457,028
Gross realized losses	(280,469)	(945,798)
Total	$ 1,960,113	$ (3,212,247)

Schedule of Major categories of net investment income

Information regarding sales of fixed maturity securities available for sale is summarized as follows:

	Three Months Ended March 31
	2021	2020
Proceeds from sales	$ 819,565	$ 645,750
Gross realized gains	59,794	79,411
Gross realized losses	-	-

Major categories of net investment income are as follows:

	Three Months Ended March 31
	2021	2020
Fixed maturity securities	$ 2,824,111	$ 2,924,714
Equity securities	128,229	92,042
Mortgage loans held for investment	6,084,417	5,653,890
Real estate	3,042,829	3,153,385
Policy loans	232,353	233,966
Insurance assignments	5,345,729	4,299,205
Other investments	13,707	25,023
Cash and cash equivalents	39,594	298,005
Gross investment income	17,710,969	16,680,230
Investment expenses	(3,417,082)	(3,279,731)
Net investment income	$ 14,293,887	$ 13,400,499

Commercial Real Estate Investment

The following is a summary of the Company’s commercial real estate held for investment for the periods presented:

	Net Ending Balance		Total Square Footage
	March 31 2021	December 31 2020	March 31 2021	December 31 2020
Utah (1)	$ 111,008,057	$ 100,927,528	379,066	379,066
Louisiana	2,981,296	2,998,684	84,841	84,841
Mississippi	2,909,508	2,914,498	21,521	21,521
California	389,145	-	2,872	-
	$ 117,288,006	$ 106,840,710	488,300	485,428

(1) Includes Center53 phase 1 and phase 2 which is under construction.

The following is a summary of the Company’s commercial real estate held for sale for the periods presented:

	Net Ending Balance		Total Square Footage
	March 31 2021	December 31 2020	March 31 2021	December 31 2020
Kansas	4,000,000	4,000,000	222,679	222,679
Texas (1)	249,000	249,000	-	-
Mississippi	151,553	151,553	-	-
	$ 4,400,553	$ 4,400,553	222,679	222,679

(1) Improved commercial pad

Residential Real Estate Investment

The following is a summary of the Company’s residential real estate held for investment for the periods presented:

	Net Ending Balance
	March 31 2021	December 31 2020
Utah (1)	39,466,349	$ 24,557,562
Washington (2)	286,181	286,181
	$ 39,752,530	$ 24,843,743

(1) Includes subdivision land developments

(2) Improved residential lots

Additional information regarding the Company’s subdivision land developments in Utah is summarized as follows:

	March 31 2021	December 31 2020
Lots available for sale	81	36
Lots to be developed	369	350
Ending Balance (1)	$ 39,251,557	$ 23,777,478

(1) The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively.

The following is a summary of the Company’s residential real estate held for sale for the periods presented:

	Net Ending Balance
	March 31 2021	December 31 2020
Nevada	$ 979,640	$ 979,640
Florida	166,673	744,322
Ohio	10,000	10,000
Utah	-	1,744,292
	$ 1,156,313	$ 3,478,254

Real Estate Owned and Occupied by the Company

As of March 31, 2021, 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)	Life Insurance Operations	12,274	100%
909 Foisy Street, Alexandria, LA (1)	Life Insurance Sales	8,059	100%
812 Sheppard Street, Minden, LA (1)	Life Insurance Sales	1,560	100%
1550 N 3rd Street, Jena, LA (1)	Life Insurance Sales	1,737	100%

(1) Included in property and equipment on the condensed consolidated balance sheets

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

The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented:

	Commercial	Residential	Residential Construction	Total
March 31, 2021
Allowance for credit losses:
Beginning balance - January 1, 2021	$ 187,129	$ 1,774,796	$ 43,202	$ 2,005,127
Charge-offs	-	-	-	-
Provision	-	(107,972)	-	(107,972)
Ending balance - March 31, 2021	$ 187,129	$ 1,666,824	$ 43,202	$ 1,897,155
Ending balance: individually evaluated for impairment	$ -	$ 207,578	$ -	$ 207,578
Ending balance: collectively evaluated for impairment	$ 187,129	$ 1,459,246	$ 43,202	$ 1,689,577
Mortgage loans:
Ending balance	$ 55,065,455	$ 88,266,355	$ 105,450,591	$ 248,782,401
Ending balance: individually evaluated for impairment	$ 1,068,365	$ 4,436,082	$ 200,963	$ 5,705,410
Ending balance: collectively evaluated for impairment	$ 53,997,090	$ 83,830,273	$ 105,249,628	$ 243,076,991
December 31, 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

Schedule of aging of mortgage loans

The following is a summary of the aging of mortgage loans held for investment for the periods presented:

	Commercial	Residential	Residential   Construction	Total
March 31, 2021
30-59 Days Past Due	$ -	$ 4,352,659	$ 301,071	$ 4,653,730
60-89 Days Past Due	2,027,048	1,317,057	-	3,344,105
Greater Than 90 Days (1)	817,429	2,522,314	-	3,339,743
In Process of Foreclosure (1)	250,936	1,913,768	200,963	2,365,667
Total Past Due	3,095,413	10,105,798	502,034	13,703,245
Current	51,970,042	78,160,557	104,948,557	235,079,156
Total Mortgage Loans	55,065,455	88,266,355	105,450,591	248,782,401
Allowance for Loan Losses	(187,129)	(1,666,824)	(43,202)	(1,897,155)
Unamortized deferred loan fees, net	(115,893)	(951,108)	(156,013)	(1,223,014)
Unamortized discounts, net	(358,587)	(351,693)	-	(710,280)
Net Mortgage Loans	$ 54,403,846	$ 85,296,730	$ 105,251,376	$ 244,951,952
December 31, 2020
30-59 Days Past Due	$ 233,200	$ 5,866,505	$ 127,191	$ 6,226,896
60-89 Days Past Due	812,780	2,048,148	-	2,860,928
Greater Than 90 Days (1)	2,148,827	5,669,583	-	7,818,410
In Process of Foreclosure (1)	-	2,263,097	200,963	2,464,060
Total Past Due	3,194,807	15,847,333	328,154	19,370,294
Current	43,642,059	79,975,115	110,783,623	234,400,797
Total Mortgage Loans	46,836,866	95,822,448	111,111,777	253,771,091
Allowance for Loan Losses	(187,129)	(1,774,796)	(43,202)	(2,005,127)
Unamortized deferred loan fees, net	(32,557)	(909,864)	(218,711)	(1,161,132)
Unamortized discounts, net	(880,721)	(380,175)	-	(1,260,896)
Net Mortgage Loans	$ 45,736,459	$ 92,757,613	$ 110,849,864	$ 249,343,936

(1) Interest income is not 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:

	Recorded Investment	Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
March 31, 2021
With no related allowance recorded:
Commercial	$ 1,068,365	$ 1,068,365	$ -	$ 1,068,365	$ -
Residential	3,054,262	3,054,262	-	3,054,262	-
Residential construction	200,963	200,963	-	200,963	-
With an allowance recorded:
Commercial	$ -	$ -	$ -	$ -	$ -
Residential	1,381,820	1,381,820	207,578	1,381,820	-
Residential construction	-	-	-	-	-
Total:
Commercial	$ 1,068,365	$ 1,068,365	$ -	$ 1,068,365	$ -
Residential	4,436,082	4,436,082	207,578	4,436,082	-
Residential construction	200,963	200,963	-	200,963	-
December 31, 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	-

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:

	Commercial		Residential		Residential Construction		Total
	March   31, 2021	December 31, 2020	March   31, 2021	December 31, 2020	March   31, 2021	December 31, 2020	March   31, 2021	December 31, 2020
Performing	$ 53,997,090	$ 44,688,039	$ 83,830,273	$ 87,889,768	$ 105,249,628	$ 110,910,814	$ 243,076,991	$ 243,488,621
Non-performing	1,068,365	2,148,827	4,436,082	7,932,680	200,963	200,963	5,705,410	10,282,470
Total	$ 55,065,455	$ 46,836,866	$ 88,266,355	$ 95,822,448	$ 105,450,591	$ 111,111,777	$ 248,782,401	$ 253,771,091

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.

	As of March 31 2021	As of December 31 2020
Commercial	$ 1,068,365	$ 2,148,827
Residential	4,436,082	7,932,680
Residential construction	200,963	200,963
Total	$ 5,705,410	$ 10,282,470