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8) Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2020
Table Text Block Supplement [Abstract]  
Schedule of fair value assets and liabilities measured on a recurring basis

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at March 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  $       329,145,562    $                        -    $     325,870,236    $          3,275,326
Equity securities               8,235,945                8,235,945                              -                               -
Loans held for sale           281,052,576                              -                              -            281,052,576
Restricted assets (1)               1,031,426                              -               1,031,426                               -
Restricted assets (2)               1,684,621                1,684,621                              -                               -
Cemetery perpetual care trust investments (1)                  991,447                              -                  991,447                               -
Cemetery perpetual care trust investments (2)               1,352,782                1,352,782                              -                               -
Derivatives - loan commitments (3)               9,465,448                              -                              -                9,465,448
Total assets accounted for at fair value on a
   recurring basis		  $       632,959,807    $        11,273,348    $     327,893,109    $      293,793,350
               
Liabilities accounted for at fair value on a
   recurring basis		              
Derivatives - call options (4)  $                (8,972)    $               (8,972)    $                        -    $                         -
Derivatives - put options (4)                (944,992)                 (944,992)                              -                               -
Derivatives - loan commitments (4)             (3,699,183)                              -                              -              (3,699,183)
Total liabilities accounted for at fair value
   on a recurring basis 		 $         (4,653,147)    $           (953,964)    $                        -    $        (3,699,183)
                                            
(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    

 

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed 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 condensed consolidated balance sheets        
(4) Included in other liabilities and accrued expenses on the condensed consolidated balance sheets    
Assets and liabilities measured at fair value on a recurring basis

For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 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
    3/31/2020   Technique   Input(s)   Value Value   Average
Loans held for sale    $   281,052,576   Market approach   Investor contract pricing as a percentage of unpaid principal balance   98.4% 108.5%   103.4%
                       
Derivatives - loan commitments (net)             5,766,265   Market approach   Fall-out factor   1.0% 92.0%   80.1%
            Initial-Value   N/A N/A   N/A
            Servicing   0 bps 255 bps   57 bps
                       
Fixed maturity securities available for sale             3,275,326   Broker quotes   Pricing quotes   $    95.02  $  119.33    $   110.40

 

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   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
Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs

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

 

     Net 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 and purchases                              -            792,193,592                                   -  
Sales, maturities and paydowns                              -           (739,130,456)                        (10,300)  
Transfer to mortgage loans held for investment                              -               (8,933,676)                                   -  
Total gains (losses):              
Included in earnings               3,275,032 (1)            23,465,484 (1)                             828 (2)
Included in other comprehensive income                              -                               -                          68,416  
               
Balance - March 31, 2020    $         5,766,265    $      281,052,576    $               3,275,326  
                                        
(1) As a component of Mortgage fee income on the condensed consolidated statements of earnings  
(2) As a component of Net investment income on the condensed consolidated statements of earnings  

 

Following is a summary of changes in the condensed 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                                -        (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 condensed 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 condensed consolidated balance sheet at March 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  $     1,959,398    $                      -       $              -       $     1,959,398
Total assets accounted for at fair value on a nonrecurring basis  $     1,959,398    $                        -    $                -    $     1,959,398

 

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 condensed 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 March 31, 2020:

 

  Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value
Assets                  
Mortgage loans held for investment                  
   Residential  $     113,992,719    $                  -    $                      -    $     119,728,697    $     119,728,697
   Residential construction           92,893,579                        -                            -             92,893,579             92,893,579
   Commercial           43,518,221                        -                            -             43,108,562             43,108,562
Mortgage loans held for investment, net  $     250,404,519    $                  -    $                      -    $     255,730,838    $     255,730,838
Policy loans           14,617,151                        -                            -             14,617,151             14,617,151
Insurance assignments, net (1)           36,955,154                        -                            -             36,955,154             36,955,154
Restricted assets (2)             1,541,933                        -                            -               1,541,933               1,541,933
Cemetery perpetual care trust investments (2)                524,000                        -                            -                  524,000                  524,000
Mortgage servicing rights, net           16,777,131                        -                            -             16,976,241             16,976,241
                   
Liabilities                  
Bank and other loans payable  $   (253,965,181)    $                  -    $                      -    $   (253,965,181)    $   (253,965,181)
Policyholder account balances (3)         (44,786,643)                        -                            -           (41,477,570)           (41,477,570)
Future policy benefits - annuities (3)       (112,487,611)                        -                            -         (116,245,685)         (116,245,685)
                                                  
(1) Included in other investments and policy loans on the condensed consolidated balance sheets      
(2) Mortgage loans held for investment                  
(3) Included in future policy benefits and unpaid claims on the condensed 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 condensed consolidated balance sheets      
(2) Mortgage loans held for investment                  
(3) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets