0001096906-20-000127 | 10-K | XBRL Viewer | Security National Financial Corp

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Document and Entity Information - USD ($)		12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2019	Dec. 31, 2019	Mar. 24, 2020
Registrant CIK		0000318673
Fiscal Year End		--12-31
Registrant Name		SECURITY NATIONAL FINANCIAL CORPORATION
SEC Form		10-K
Period End date		Dec. 31, 2019
Tax Identification Number (TIN)		87-0345941
Public Float	$ 26,000,000
Filer Category		Non-accelerated Filer
Current with reporting		Yes
Interactive Data Current		Yes
Voluntary filer		No
Well-known Seasoned Issuer		No
Shell Company		false
Small Business		true
Emerging Growth Company		false
Document Annual Report		true
Document Transition Report		false
Entity File Number		000-09341
Entity Incorporation, State or Country Code		UT
Entity Address, Address Line One		123 West Election Road
Entity Address, City or Town		Draper
Entity Address, State or Province		UT
Entity Address, Postal Zip Code		84020
City Area Code		(801)
Local Phone Number		264-1060
Entity Listing, Par Value Per Share	$ 4.78
Amendment Flag		false
Document Fiscal Year Focus		2019
Document Fiscal Period Focus		FY
Common Class A
Number of common stock shares outstanding			16,142,513
Common Class C
Number of common stock shares outstanding			2,489,215

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Investments:
Available-for-sale Securities	$ 355,977,820	$ 0
Fixed maturity securities, held to maturity, at amortized cost	0	232,078,723
Equity securities at estimated fair value	7,271,165	5,558,611
Mortgage loans held for investment (net of allowances for loan losses of $1,453,037 and $1,347,972 for 2019 and 2018)	236,694,546	186,465,069
Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)	102,756,946	121,558,222
Real estate held for sale	14,097,627	0
Other investments and policy loans (net of allowances for doubtful accounts of $1,448,026 and $1,092,528 for 2019 and 2018)	60,245,269	46,617,655
Accrued investment income	4,833,232	3,566,146
Total investments	781,876,605	595,844,426
Cash and cash equivalents	127,754,719	142,199,942
Loans held for sale at estimated fair value	213,457,632	136,210,853
Receivables (net of allowances for doubtful accounts of $1,724,156 and $1,519,842 for 2019 and 2018)	9,236,330	8,935,343
Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)	13,935,317	10,981,562
Cemetery perpetual care trust investments (including $2,581,124 and $483,353 for 2019 and 2018 at estimated fair value)	4,411,864	4,335,869
Receivable from reinsurers	15,747,768	10,820,102
Cemetery land and improvements	9,519,950	9,878,427
Deferred plicy and pre-need contract acquisition costs	94,701,920	89,362,096
Mortgage servicing rights, net	17,155,529	20,016,822
Property and equipment, net	14,600,394	7,010,778
Value of business acquired	9,876,647	5,765,190
Goodwill	3,519,588	2,765,570
Other	18,649,812	6,684,143
Total Assets	1,334,444,075	1,050,811,123
Liabilities
Future policy benefits and unpaid claims	825,600,918	620,399,714
Unearned premium reserve	3,621,697	3,920,473
Bank and other loans payable	217,572,612	187,521,188
Deferred pre-need cemetery and mortuary contract revenues	12,607,978	12,508,625
Cemetery Perpetual Care Trust Obligation	3,933,719	3,821,979
Accounts payable	5,056,983	2,883,349
Other liabilities and accrued expenses	50,652,591	31,821,624
Income Taxes	18,686,972	16,122,998
Total liabilities	1,137,733,470	878,999,950
Stockholders' Equity
Preferred stock - non-voting-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding	0	0
Additional paid-in capital	46,091,112	41,821,778
Accumulated other comprehensive income, net of taxes	13,726,514	(2,823)
Retained earnings	101,256,229	95,201,732
Treasury stock, at cost - 490,823 Class A shares and -0- Class C shares in 2019; 302,541 Class A shares and -0- Class C shares in 2018	(1,580,582)	(206,396)
Total stockholders' equity	196,710,605	171,811,173
Total Liabilities and Stockholders' Equity	1,334,444,075	1,050,811,123
Common Class A
Stockholders' Equity
Common Stock, Value, Issued	32,215,558	30,609,596
Common Class B
Stockholders' Equity
Common Stock, Value, Issued	0	0
Common Class C
Stockholders' Equity
Common Stock, Value, Issued	$ 5,001,774	$ 4,387,286

Condensed Consolidated Balance Sheets - Parenthetical - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Allowance for Loan and Lease Losses, Real Estate	$ 1,453,037	$ 1,347,972
Real Estate Investment Property, Accumulated Depreciation	12,788,739	16,739,578
Allowance for Doubtful Accounts, Premiums and Other Receivables	1,448,026	1,092,528
Accounts Receivable, Allowance for Credit Loss	1,724,156	1,519,842
Aggregate Fair Value, Restricted Assets	2,985,347	744,673
Aggregate Fair Value, Cemetary Perpetual Care Trust Investments	$ 2,581,124	$ 483,353
Preferred Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Class A
Common Stock, Par or Stated Value Per Share	$ 2.00	$ 2.00
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	16,107,779	15,304,798
Common Stock, Shares, Outstanding	16,107,779	15,304,798
Common Class B
Common Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Common Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Shares, Issued	0	0
Common Stock, Shares, Outstanding	0	0
Common Class C
Common Stock, Par or Stated Value Per Share	$ 2.00	$ 2.00
Common Stock, Shares Authorized	3,000,000	3,000,000
Common Stock, Shares, Issued	2,500,887	2,193,643
Common Stock, Shares, Outstanding	2,500,887	2,193,643
Treasury Class A
Treasury Stock, Shares	490,823	302,541
Treasury Class C
Treasury Stock, Shares	0	0

Condensed Consolidated Statements of Income - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Revenues:

Insurance premiums and other considerations

$ 81,860,610

$ 75,928,910

Net investment income

43,019,473

39,913,267

Net mortuary and cemetery sales

15,296,235

13,726,518

Gains on investments and other assets

728,367

23,941,179

Mortgage fee income

131,976,082

116,185,853

Other Revenues

10,180,163

9,923,000

Total revenues

283,060,930

279,618,727

Benefits and expenses:

Death benefits

41,591,057

36,298,789

Surrenders and other policy benefits

3,320,748

2,886,298

Increase in future policy benefits

23,568,497

24,332,088

Amortization of deferred policy and pre-need acquisition costs and value of business acquired

14,634,577

11,631,346

Selling, general and administrative expenses:

Commissions

56,762,891

50,291,352

Personnel

64,221,270

67,368,952

Advertising

4,784,558

4,602,591

Rent and rent related

7,055,456

7,605,375

Depreciation on property and equipment

1,711,369

1,867,001

Costs related to funding mortgage loans

6,278,954

6,423,944

Other

34,922,761

31,014,999

Interest expense

7,386,688

6,956,707

Cost of goods and services sold - cemeteries and mortuaries

2,878,169

2,158,895

Total benefits and expenses

269,116,995

253,438,337

Earnings before income taxes

13,943,935

26,180,390

Income tax expense

(3,050,416)

(4,494,311)

Net earnings

$ 10,893,519

$ 21,686,079

Earnings Per Share, Basic

^[1]

$ 0.60

$ 1.21

Earnings Per Share, Diluted

^[1]

$ 0.60

$ 1.19

Weighted Average Number of Shares Outstanding, Basic

^[1]

18,104,681

17,968,062

Weighted Average Number of Shares Outstanding, Diluted

^[1]

18,229,116

18,188,665

[1]

Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share

Condensed Consolidated Statement of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Details
Net earnings	$ 10,893,519	$ 21,686,079
Other comprehensive income:
Unrealized gains on fixed maturity securities available for sale	17,315,770	0
Unrealized gains on restricted assets	35,550	0
Unrealized gains on cemetery perpetual care trust investments	29,904	0
Foreign currency translation adjustments	972	(3,761)
Other comprehensive income, before income tax	17,382,196	(3,761)
Income tax benefit (expense)	(3,652,859)	938
Other comprehensive income (loss), net of income tax	13,729,337	(2,823)
Comprehensive income	$ 24,622,856	$ 21,683,256

Statements of changes in Stockholders' Equity (Deficit) - USD ($)	Common Stock Common Class A	Common Stock Common Class C	Additional Paid-in Capital	AOCI Attributable to Parent	Retained Earnings	Treasury Stock	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2017	$ 29,071,154	$ 4,178,748	$ 38,125,042	$ 603,170	$ 77,520,951	$ (931,075)	$ 148,567,990
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)	0	0	0	(603,170)	603,170	0	0
Net earnings	0	0	0	0	21,686,079	0	21,686,079
Other comprehensive income (loss), net of income tax	0	0	0	(2,823)	0	0	(2,823)
Share-based Payment Arrangement, Amount Capitalized	0	0	237,123	0	0	0	237,123
Exercise of stock options	76,946	0	(19,534)	0	0	0	57,412
Benefit plans funded with treasury stock	0	0	540,713	0	0	940,200	1,480,913
Payments to acquire treasury stock	0	0	0	0	0	(215,521)	(215,521)
Stock dividends	1,461,120	208,914	2,938,434	0	(4,608,468)	0	0
Conversion Class C to Class A	376	(376)	0	0	0	0	0
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2018	30,609,596	4,387,286	41,821,778	(2,823)	95,201,732	(206,396)	171,811,173
Net earnings	0	0	0	0	10,893,519	0	10,893,519
Other comprehensive income (loss), net of income tax	0	0	0	13,729,337	0	0	13,729,337
Share-based Payment Arrangement, Amount Capitalized	0	0	256,996	0	0	0	256,996
Exercise of stock options	65,034	382,886	415,990	0	0	0	863,910
Benefit plans funded with treasury stock	0	0	529,858	0	0	165,702	695,560
Payments to acquire treasury stock	0	0	0	0	0	(1,539,888)	(1,539,888)
Stock dividends	1,534,356	238,174	3,066,490	0	(4,839,022)	0	(2)
Conversion Class C to Class A	6,572	(6,572)	0	0	0	0	0
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2019	$ 32,215,558	$ 5,001,774	$ 46,091,112	$ 13,726,514	$ 101,256,229	$ (1,580,582)	$ 196,710,605

Condensed Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net earnings	$ 10,893,519	$ 21,686,079
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Gains on investments and other assets	(728,367)	(23,941,179)
Depreciation	5,183,658	5,456,185
Provision for loan losses and doubtful accounts	1,202,688	377,683
Net amortization of deferred fees and costs, premiums and discounts	(887,605)	(1,110,363)
Provision for deferred income taxes	(1,857,897)	(2,605,401)
Policy and pre-need acquisition costs deferred	(19,176,531)	(19,544,569)
Policy and pre-need acquisition costs amortized	13,787,037	10,807,777
Value of business acquired amortized	847,540	823,569
Mortgage servicing rights, additions	(4,194,502)	(3,922,816)
Amortization of mortgage servicing rights	7,055,795	5,282,931
Stock based compensation expense	256,996	237,123
Benefit plans funded with treasury stock	695,560	1,480,913
Change in fair value of loans held for sale	(2,498,097)	(3,736,209)
Originations of loans held for sale	(2,606,839,175)	(2,194,607,543)
Proceeds from sales of loans held for sale	2,580,875,055	2,259,145,473
Net gains on sales of loans held for sale	(80,666,413)	(74,426,183)
Change in assets and liabilities:
Increase (Decrease) in Assets Held-for-sale	358,477	64,506
Future policy benefits and unpaid claims	18,394,928	21,710,347
Increase (Decrease) in Other Current Assets and Liabilities, Net	1,695,259	3,830,947
Net cash provided by (used in) operating activities	(75,602,075)	7,009,270
Cash flows from investing activities:
Purchases of fixed maturity securities	(110,601,438)	(37,488,774)
Calls and maturities of fixed maturity securities	26,624,182	32,993,161
Purchase of equity securities	(3,264,028)	(3,354,274)
Sales of equity securities	2,639,729	2,886,492
Net changes in restricted assets	(1,254,991)	(241,665)
Net changes in cemetery perpetual care trust investments	299,897	1,207,622
Mortgage loans held for investment, other investments and policy loans made	(572,171,590)	(505,060,464)
Payments received for mortgage loans held for investment, other investments and policy loans	556,352,676	535,354,544
Purchases of property and equipment	(1,839,293)	(1,282,704)
Sales of property and equipment	54,496	2,016,156
Purchases of real estate held for investment	(8,572,556)	(29,193,332)
Sales of real estate held for investment	11,614,927	68,875,269
Cash received for reinsurance assumed	158,358,594	0
Cash paid for purchase of subsidiaries, net of cash acquired	(20,141,074)	(3,405,783)
Net cash provided by investing activities	38,099,531	63,306,248
Cash flows from financing activities:
Investment contract receipts	12,141,627	11,571,551
Investment contract withdrawals	(16,911,841)	(15,356,571)
Proceeds from stock options exercised	863,910	57,412
Payments to acquire treasury stock	(1,539,888)	(215,521)
Repayment of bank loans	(236,790,722)	(133,123,024)
Proceeds from bank borrowings	196,610,127	162,653,177
Net change in warehouse line borrowings for loans held for sale	69,928,331	(717,792)
Net change in line of credit borrowings	0	1,250,000
Net cash provided by financing activities	24,301,544	26,119,232
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents	(13,201,000)	96,434,750
Restricted Cash and Cash Equivalents, Current	150,936,673	54,501,923
Restricted Cash and Cash Equivalents, Current	137,735,673	150,936,673
Supplemental Cash Flow Information
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	7,284,078	6,878,048
Income Taxes Paid, Net	4,861,318	5,701,565
Non Cash Investing and Financing Activities:
Transfer of loans held for sale to mortgage loans held for investment	31,881,851	10,827,797
Right-of-use assets obtained in exchange for operating lease liabilities	16,544,406	0
Transfer of Cemetery Land and Improvements to Property and Equipment	3,261,259	0
Mortgage loans held for investment foreclosed into real estate held for investment	1,704,015	670,601
Accrued real estate construction costs and retainage	590,256	214,200
Right-of-use assets obtained in exchange for finance lease liabilities	252,763	0
Mortgage loans held for investment foreclosed into receivables	$ 155,347	$ 0

Condensed Consolidated Statement of Cash Flows (Continued) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Details
Cash and cash equivalents	$ 127,754,719	$ 142,199,942
Restricted assets	8,674,214	7,179,225
Cemetery perpetual care trust investments	1,306,740	1,557,506
Total cash, cash equivalents, restricted cash and restricted cash equivalents	$ 137,735,673	$ 150,936,673

1) Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Notes

1) Significant Accounting Policies

1)Significant Accounting Policies

General Overview of Business

Security National Financial Corporation and its wholly owned subsidiaries (the “Company”) operate in three main business segments: life insurance, cemetery and mortuary, and mortgages. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products and accident and health insurance marketed primarily in the Intermountain West, California and eleven southern states. The cemetery and mortuary segment of the Company consists of eight mortuaries and five cemeteries in Utah and one cemetery in California. The mortgage segment is an approved government and conventional lender that originates and underwrites residential and commercial loans for new construction, existing homes and real estate projects primarily in Florida, Nevada, Texas, and Utah.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP).

Principles of Consolidation

These consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates

Management of the Company has made a number of estimates and assumptions related to the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with GAAP. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities; those used in determining deferred acquisition costs and the value of business acquired; those used in determining the value of mortgage loans foreclosed to real estate held for investment; those used in determining the liability for future policy benefits; those used in determining the value of mortgage servicing rights; those used in determining allowances for loan losses for mortgage loans held for investment; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects.

Investments

The Company’s management determines the appropriate classifications of investments in fixed maturity securities and equity securities at the acquisition date and re-evaluates the classifications at each balance sheet date.

Fixed maturity securities available for sale are carried at estimated fair value. Changes in fair values are reported as unrealized gains or losses and are recorded in accumulated other comprehensive income. On December 31, 2019, the Company changed the classification of its bond and preferred stock investments to available for sale from held to maturity. As a result, securities available for sale are carried at estimated fair value instead of amortized cost.

Fixed maturity securities held to maturity are carried at cost, adjusted for amortization of premium or accretion of discount. Although the Company has the ability and intent to hold these investments to maturity, infrequent and unusual conditions could occur under which it would sell certain of these securities. Those conditions include unforeseen changes in asset quality, significant changes in tax laws, and changes in regulatory capital requirements or permissible investments.

Equity securities are carried at estimated fair value. Changes in fair values are reported as unrealized gains or losses and are recorded through net earnings.

Mortgage loans held for investment are carried at their unpaid principal balances adjusted for net deferred fees, net discounts, charge-offs and the related allowance for loan losses. Interest income is included in net investment income on the consolidated statements of earnings and is recognized when earned. The Company defers related material loan origination fees, net of related direct loan origination costs, and amortizes the net fees over the term of the loans. Origination fees are included in net investment income on the consolidated statements of earnings.

Mortgage loans are secured by the underlying property and require an appraisal at the time of underwriting and funding. Generally, the Company will fund a loan not to exceed 80% of the loan’s collateral fair market value. Amounts over 80% will require additional collateral or mortgage insurance by an approved third-party insurer.

Real estate held for investment is carried at cost, less accumulated depreciation provided on a straight-line basis over the estimated useful lives of the properties, or is adjusted to a new basis for impairment in value, if any. Included are foreclosed properties which the Company intends to hold for investment purposes. These properties are recorded at the lower of cost or fair value upon foreclosure.

Real estate held for sale is carried at lower of cost or fair value. Depreciation is not recognized on real estate classified as held for sale.

Other investments and policy loans are carried at the aggregate unpaid balances, less allowances for losses.

Gains and losses on investments (except for equity securities carried at fair value through net earnings) arise when investments are sold (as determined on a specific identification basis) or are other than temporarily impaired. If in management’s judgment a decline in the value of an investment below cost is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in judging whether an impairment is other than temporary include: the financial condition, business prospects and credit worthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of the decline, and the Company’s ability and intent to hold the investment until the fair value recovers, which is not assured.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Loans Held for Sale

Accounting Standards Codification (“ASC”) No. 825, “Financial Instruments”, allows for the option to report certain financial assets and liabilities at fair value initially and at subsequent measurement dates with changes in fair value included in earnings. The option may be applied instrument by instrument, but it is irrevocable. The Company elected the fair value option for loans held for sale. The Company believes the fair value option most closely aligns the timing of the recognition of gains and costs. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Electing fair value also reduces certain timing differences and better matches changes in the fair value of these assets with changes in the fair value of the related derivatives used for these assets. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

Mortgage Fee Income

Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination of mortgage loans held for sale. All revenues and costs are recognized when the mortgage loan is funded and any changes in fair value are shown as a component of mortgage fee income. See Note 3 and Note 17 to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

The Company, through its mortgage subsidiaries, sells mortgage loans to third-party investors without recourse unless defects are identified in the representations and warranties made at loan sale. It may be required, however, to repurchase a loan or pay a fee instead of repurchase under certain events, which include the following:

·Failure to deliver original documents specified by the investor,

·The existence of misrepresentation or fraud in the origination of the loan,

·The loan becomes delinquent due to nonpayment during the first several months after it is sold,

·Early pay-off of a loan, as defined by the agreements,

·Excessive time to settle a loan,

·Investor declines purchase, and

·Discontinued product and expired commitment.

Loan purchase commitments generally specify a date 30 to 45 days after delivery upon which the underlying loans should be settled. Depending on market conditions, these commitment settlement dates can be extended at a cost to the Company.

It is the Company's policy to cure any documentation problems regarding such loans at a minimal cost for up to a six-month time period and to pursue efforts to enforce loan purchase commitments from third-party investors concerning the loans. The Company believes that six months allows adequate time to remedy any documentation issues, to enforce purchase commitments, and to exhaust other alternatives. Remedial methods include the following:

·Research reasons for rejection,

·Provide additional documents,

·Request investor exceptions,

·Appeal rejection decision to purchase committee, and

·Commit to secondary investors.

Once purchase commitments have expired and other alternatives to remedy are exhausted, which could be earlier than the six-month time period, the loans are repurchased and transferred to the long-term investment portfolio at the lower of cost or fair value and previously recorded mortgage fee income that was to be received from a third-party investor is written off against the loan loss reserve.

Determining Lower of Cost or Fair Value

Cost for loans held for sale is equal to the amount paid to the warehouse bank and the amount originally funded by the Company. Fair value is often difficult to determine, but is based on the following:

·For loans that are committed, the Company uses the commitment price.

·For loans that are non-committed that have an active market, the Company uses the market price.

·For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.

·For loans that are non-committed where no active market exists, the Company determines that the unpaid principal balance best approximates the market value, after considering the fair value of the underlying real estate collateral, estimated future cash flows, and the loan interest rate.

The appraised value of the real estate underlying the original mortgage loan adds support to the Company’s determination of fair value because if the loan becomes delinquent, the Company has sufficient value to collect the unpaid principal balance or the carrying value of the loan, thus minimizing credit losses.

The majority of loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale.

Loan Loss Reserve

The loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on loans sold. The Company may be required to reimburse third-party investors for costs associated with early payoff of loans within the first six months of such loans and to repurchase loans where there is a default in any of the first four monthly payments to the investors or, in lieu of repurchase, to pay a negotiated fee to the investors. The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities.

Upon completion of a transfer that satisfies the conditions to be accounted for as a sale, the Company initially measures at fair value liabilities incurred in a sale relating to any guarantee or recourse provisions. The Company accrues a monthly allowance for indemnification losses to investors based on total production. This estimate is based on the Company’s historical experience and is included as a component of mortgage fee income. Subsequent updates to the recorded liability from changes in assumptions are recorded in selling, general and administrative expenses. The estimated liability for indemnification losses is included in other liabilities and accrued expenses.

The loan loss reserve analysis involves mortgage loans that have been sold to third-party investors, which were believed to have met investor underwriting guidelines at the time of sale, where the Company has received a demand from the investor. There are generally three types of demands: make whole, repurchase, or indemnification. These types of demands are more particularly described as follows:

Make whole demand – A make whole demand occurs when an investor forecloses on a property and then sells the property. The make whole amount is calculated as the difference between the original unpaid principal balance, accrued interest and fees, less the sale proceeds.

Repurchase demand – A repurchase demand usually occurs when there is a significant payment default, error in underwriting or detected loan fraud.

Indemnification demand – On certain loans the Company has negotiated a set fee that is to be paid in lieu of repurchase. The fee varies by investor and by loan product type.

The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date.

Additional information related to the Loan Loss Reserve is included in Note 3.

Restricted Assets

Restricted assets are assets held in a trust account for future mortuary services and merchandise and consist of cash and cash equivalents; participations in mortgage loans held for investment with Security National Life Insurance Company (“Security National Life”); mutual funds carried at estimated fair value; equity securities carried at estimated fair value; and a surplus note with Security National Life (which is eliminated in consolidation). Restricted assets also represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to fund its medical benefit safe-harbor limit based on the qualified direct costs, and has included this amount as a component of restricted cash.

Cemetery Perpetual Care Trust Investments

Cemetery endowment care trusts have been set up for four of the six cemeteries owned by the Company. Of the six cemeteries owned by the Company, four cemeteries are endowment care properties. Under endowment care arrangements a portion of the price for each lot sold is withheld and invested in a portfolio of investments similar to those described in the prior paragraph. The earnings stream from the investments is designed to fund future maintenance and upkeep of the cemetery.

Cemetery Land and Improvements

The development of a cemetery involves not only the initial acquisition of raw land but the installation of roads, water lines, landscaping and other costs to establish a marketable cemetery lot. The costs of developing the cemetery are shown as an asset on the balance sheet. The amount on the balance sheet is reduced by the total cost assigned to the development of a particular lot when the criterion for recognizing a sale of that lot is met.

Deferred Policy Acquisition Costs and Value of Business Acquired

Commissions and other costs, net of commission and expense allowances for reinsurance ceded, that vary with and are primarily related to the production of new insurance business have been deferred. Deferred policy acquisition costs (“DAC”) for traditional life insurance are amortized over the premium paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves. For interest-sensitive insurance products, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges, investment, mortality and expense margins. This amortization is adjusted when estimates of current or future gross profits to be realized from a group of products are reevaluated. Deferred acquisition costs are written off when policies lapse or are surrendered.

When accounting for DAC, the Company considers internal replacements of insurance and investment contracts. An internal replacement is a modification in product benefits, features, rights or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to contract, or by the election of a feature or coverage within a contract. Modifications that result in a replacement contract that is substantially changed from the replaced contract are accounted for as an extinguishment of the replaced contract. Unamortized DAC, unearned revenue liabilities and deferred sales inducements from the replaced contract are written-off. Modifications that result in a contract that is substantially unchanged from the replaced contract are accounted for as a continuation of the replaced contract.

Value of business acquired is the present value of estimated future profits of the acquired business and is amortized similar to deferred policy acquisition costs.

Mortgage Servicing Rights

Mortgage Servicing Rights (“MSR”) arise from contractual agreements between the Company and third-party investors (or their agents) when mortgage loans are sold. Under these contracts, the Company is obligated to retain and provide loan servicing functions on loans sold, in exchange for fees and other remuneration. The servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impound) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising the acquisition of real estate owned and property dispositions.

The total residential mortgage loans serviced for others consist primarily of agency conforming fixed-rate mortgage loans. The value of MSRs is derived from the net cash flows associated with the servicing contracts. The Company receives a servicing fee of generally about 0.250% annually on the remaining outstanding principal balances of the loans. Based on the result of the cash flow analysis, an asset or liability is recorded for mortgage servicing rights. The servicing fees are collected from the monthly payments made by the mortgagors. The Company generally receives other remuneration including rights to various mortgagor-contracted fees such as late charges, and collateral reconveyance charges and the Company is generally entitled to retain the interest earned on funds held pending remittance of mortgagor principal, interest, tax and insurance payments. Contractual servicing fees and late fees are included in other revenues on the consolidated statements of earnings.

The Company’s subsequent accounting for MSRs is based on the class of MSRs. The Company has identified two classes of MSRs: MSRs backed by mortgage loans with initial term of 30 years and MSRs backed by mortgage loans with initial term of 15 years. The Company distinguishes between these classes of MSRs due to their differing sensitivities to change in value as the result of changes in market. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. Amortization expense is included in other expenses on the consolidated statements of earnings. MSR amortization is determined by amortizing the MSR balance in proportion to, and over the period of the estimated future net servicing income of the underlying financial assets.

Interest rate risk, prepayment risk, and default risk are inherent risks in MSR valuation. Interest rate changes largely drive prepayment rates. Refinance activity generally increases as rates decline. A significant decrease in rates beyond expectation could cause a decline in the value of the MSR. On the contrary, if rates increase borrowers are less likely to refinance or prepay their mortgage, which extends the duration of the loan and MSR values are likely to rise. Because of these risks, discount rates and prepayment speeds are used to estimate the fair value.

The Company periodically assesses MSRs for impairment. Impairment occurs when the current fair value of the MSR falls below the asset’s carrying value (carrying value is the amortized cost reduced by any related valuation allowance). If MSRs are impaired, the impairment is recognized in current period earnings and the carrying value of the MSRs is adjusted through a valuation allowance.

Management periodically reviews the various loan strata to determine whether the value of the MSRs in a given stratum is impaired and likely to recover. When management deems recovery of the value to be unlikely in the foreseeable future, a write-down of the cost of the MSRs for that stratum to its estimated recoverable value is charged to the valuation allowance.

Property and Equipment

Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets which range from three to forty years. Leasehold improvements paid for by the Company as a lessee are amortized over the lesser of the useful life or remaining lease terms.

Long-lived Assets

Long-lived assets to be held and used, including property and equipment and real estate held for investment, are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset, and long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of long-lived assets has been recognized in the accompanying financial statements except for certain impairments of real estate held for investment as disclosed in Note 2.

Derivative Instruments

Mortgage Banking Derivatives

Loan Commitments

The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of loan commitments from the time a loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of loan commitments that will be exercised (i.e., the number of loans that will be funded) fluctuates. The probability that a loan will not be funded or the loan application is denied or withdrawn within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the issuance of the loan commitment.

In general, the probability of funding increases if mortgage rates rise and decreases if mortgage rates fall. This is due primarily to the relative attractiveness of current mortgage rates compared to the applicant’s committed rate. The probability that a loan will not be funded within the terms of the mortgage loan commitment also is influenced by the source of the applications (retail, broker or correspondent channels), proximity to rate lock expiration, purpose for the loan (purchase or refinance), product type and the application approval status. The Company has developed fallout estimates using historical data that take into account all of the variables, as well as renegotiations of rate and point commitments that tend to occur when mortgage rates fall. These fallout estimates are used to estimate the number of loans that the Company expects to be funded within the terms of the loan commitments and are updated periodically to reflect the most current data.

The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued and is shown net of expenses. Following issuance, the value of a loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans.

Forward Sale Commitments

The Company utilizes forward commitments to economically hedge the price risk associated with its outstanding mortgage loan commitments. A forward commitment protects the Company from losses on sales of the loans arising from exercise of the loan commitments. Management expects these types of commitments will experience changes in fair value opposite to changes in fair value of the loan commitments, thereby reducing earnings volatility related to the recognition in earnings of changes in the values of the commitments.

The net changes in fair value of loan commitments and forward sale commitments are shown in current earnings as a component of mortgage fee income on the consolidated statements of earnings. Mortgage banking derivatives are shown in other assets and other liabilities and accrued expenses on the consolidated balance sheets.

Call and Put Option Derivatives

The Company uses a strategy of selling “out of the money” call options on its equity securities as a source of revenue. The options give the purchaser the right to buy from the Company specified equity securities at a set price up to a pre-determined date in the future. The Company uses the strategy of selling put options as a means of generating cash or purchasing equity securities at lower than current market prices. The Company receives an immediate payment of cash for the value of the option and establishes a liability for the fair value of the option. The liability for options is adjusted to fair value at each reporting date. In the event a call option is exercised, the Company sells the equity security at a favorable price enhanced by the value of the option that was sold. If the option expires unexercised, the Company recognizes a gain from the expired option. In the event a put option is exercised, the Company acquires an equity security at the strike price of the option reduced by the value received from the sale of the put option. The equity security is then treated as a normal equity security in the Company’s portfolio. The net changes in the fair value of call and put options are shown in current earnings as a component of realized gains (losses) on investments and other assets. Call and put options are shown in other liabilities and accrued expenses on the consolidated balance sheets.

Allowance for Doubtful Accounts and Loan Losses and Impaired Loans

The Company records an allowance and recognizes an expense for potential losses from mortgage loans held for investment, other investments and receivables in accordance with GAAP.

Receivables are the result of cemetery and mortuary operations, mortgage loan operations and life insurance operations. The allowance is based upon the Company’s historical experience for collectively evaluated impairment. Other allowances are based upon receivables individually evaluated for impairment. Collectability of the cemetery and mortuary receivables is significantly influenced by current economic conditions. The critical issues that impact recovery of mortgage loan operations are interest rate risk, loan underwriting, new regulations and the overall economy.

The Company provides for losses on its mortgage loans held for investment through an allowance for loan losses (a contra-asset account). The allowance is comprised of two components. The first component is an allowance for collectively evaluated impairment that is based upon the Company’s historical experience in collecting similar receivables. The second component is based upon individual evaluation of loans that are determined to be impaired. Upon determining impairment, the Company establishes an individual impairment allowance based upon an assessment of the fair value of the underlying collateral. See the schedules in Note 2 for additional information. In addition, when a mortgage loan is past due more than 90 days, the Company does not accrue any interest income. When a loan becomes delinquent, the Company proceeds to foreclose on the real estate and all expenses for foreclosure are expensed as incurred. Once foreclosed, an adjustment for the lower of cost or fair value is made, if necessary, and the amount is classified as real estate held for investment. The Company will rent the properties until it is deemed desirable to sell them.

The allowance for losses on mortgage loans held for investment could change based on changes in the value of the underlying collateral, the performance status of the loans, or the Company’s actual collection experience. The actual losses could change, in the near term, from the established allowance, based upon the occurrence or non-occurrence of these events.

For purposes of determining the allowance for losses, the Company has segmented its mortgage loans held for investment by loan type. The Company’s loan types are commercial, residential, and residential construction. The inherent risks within the portfolio vary depending upon the loan type as follows:

Commercial - Underwritten in accordance with the Company’s policies to determine the borrower’s ability to repay the obligation as agreed. Commercial loans are made primarily based on the underlying collateral supporting the loan. Accordingly, the repayment of a commercial loan depends primarily on the collateral and its ability to generate income and secondary on the borrower’s (or guarantors) ability to repay.

Residential – Secured by family dwelling units. These loans are secured by first and second mortgages on the unit. The borrower’s ability to repay is sensitive to the life events and general economic condition of the region. Where loan to values exceed 80%, the loan is generally guaranteed by private mortgage insurance, FHA or VA.

Residential construction (including land acquisition and development) – Underwritten in accordance with the Company’s underwriting policies which include a financial analysis of the builders, borrowers (guarantors), construction cost estimates, and independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation estimates may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project and the ability of the borrower to secure long-term financing. Additionally, land is underwritten according to the Company’s policies, which include independent appraisal valuations as well as the estimated value associated with the land upon completion of development into finished lots. These cost and valuation estimates may be inaccurate. These loans are considered to be of a higher risk than other mortgage loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term or construction financing, and interest rate sensitivity.

Future Policy Benefits and Unpaid Claims

Future policy benefit reserves for traditional life insurance are computed using a net level method, including assumptions as to investment yields, mortality, morbidity, withdrawals, and other assumptions based on the life insurance subsidiaries’ experience, modified as necessary to give effect to anticipated trends and to include provisions for possible unfavorable deviations. Such liabilities are, for some plans, graded to equal statutory values or cash values at or prior to maturity, which are deemed a reasonable equivalent for GAAP. The range of assumed interest rates for all traditional life insurance policy reserves was 4% to 10%. Benefit reserves for traditional limited-payment life insurance policies include the deferred portion of the premiums received during the premium-paying period. Deferred premiums are recognized as income over the life of the policies. Policy benefit claims are charged to expense in the period the claims are incurred. Increases in future policy benefits are charged to expense.

Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 3% to 6.5%.

The Company records an unpaid claims liability for claims in the course of settlement equal to the death benefit amount less any reinsurance recoverable amount for claims reported. There is also an unpaid claims liability for claims incurred but not reported. This liability is based on the historical experience of the net amount of claims that were reported in reporting periods subsequent to the reporting period when claims were incurred.

Participating Insurance

Participating business constituted 2% of insurance in force for the years ended 2019 and 2018. The provision for policyholders’ dividends included in policyholder obligations is based on dividend scales anticipated by management. Amounts to be paid are determined by the Board of Directors.

Recognition of Insurance Premiums and Other Considerations

Premiums and other consideration for traditional life insurance products (which include those products with fixed and guaranteed premiums and benefits and consist principally of whole life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies) are recognized as revenues when due from policyholders. Premiums and other consideration for interest-sensitive insurance policies (which include universal life policies, interest-sensitive life policies, deferred annuities, and annuities without life contingencies) are recognized when earned and consist of amounts assessed against policyholder account balances during the period for policy administration charges and surrender charges.

Reinsurance

The Company follows the procedure of reinsuring risks in excess of $100,000 to provide for greater diversification of business to allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. The Company remains liable for amounts ceded in the event the reinsurers are unable to meet their obligations.

The Company entered into coinsurance agreements with unaffiliated insurance companies under which the Company assumed 100% of the risk for certain life insurance policies and certain other policy-related liabilities of the insurance company.

Reinsurance premiums, commissions, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Expense allowances received in connection with reinsurance ceded are accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly.

Pre-need Sales and Costs

Pre-need contract sales of funeral services and caskets - revenue and costs associated with the sales of pre-need funeral services and caskets are deferred until the performance obligations are fulfilled (services are performed or the caskets are delivered).

Sales of cemetery interment rights (cemetery burial property) - revenue and costs associated with the sale of cemetery interment rights are recognized in accordance with the retail land sales provisions based on GAAP. Under GAAP, recognition of revenue and associated costs from constructed cemetery property must be deferred until 10% of the sales price has been collected.

Pre-need contract sales of cemetery merchandise (primarily markers and vaults) - revenue and costs associated with the sale of pre-need cemetery merchandise is deferred until the merchandise is delivered.

Pre-need contract sales of cemetery services (primarily merchandise delivery, installation fees and burial opening and closing fees) - revenue and costs associated with the sales of pre-need cemetery services are deferred until the services are performed.

Prearranged funeral and pre-need cemetery customer acquisition costs - costs incurred related to obtaining new pre-need contract cemetery and prearranged funeral services are accounted for under the guidance of the provisions based on GAAP. Obtaining costs, which include only costs that vary with and are primarily related to the acquisition of new pre-need cemetery and prearranged funeral services, are deferred until the merchandise is delivered or services are performed.

Revenues and costs for at-need sales are recorded when a valid contract exists, the services are performed, collection is reasonably assured and there are no significant obligations remaining.

The Company, through its cemetery and mortuary operations, provides guaranteed funeral arrangements wherein a prospective customer can receive future goods and services at guaranteed prices. To accomplish this, the Company, through its life insurance operations, sells to the customer an increasing benefit life insurance policy that is assigned to the mortuaries. If, at the time of need, the policyholder/potential mortuary customer utilizes one of the Company’s facilities, the guaranteed funeral arrangement contract that has been assigned will provide the funeral goods and services at the contracted price. The increasing life insurance policy will cover the difference between the original contract prices and current prices. Risks may arise if the difference cannot be fully met by the life insurance policy. However, management believes that given current inflation rates and related price increases of goods and services, the risk of exposure is minimal.

Goodwill

Previous acquisitions have been accounted for as purchases under which assets acquired and liabilities assumed were recorded at their fair values with the excess purchase price recognized as goodwill. The Company evaluates annually or when changes in circumstances warrant the recoverability of goodwill and if there is a decrease in value, the related impairment is recognized as a charge against income. No impairment of goodwill has been recognized in the accompanying financial statements.

Other Intangibles (trade name and customer lists)

Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. The Company engaged a valuation firm to analyze the value of the Kilpatrick Life name in conjunction with its acquisition. The value of the trade name is included in Other Assets and was determined using the income approach, relying on a relief from the royalty method.

Income Taxes

Income taxes include taxes currently payable plus deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the temporary differences in the financial reporting basis and tax basis of assets and liabilities and operating loss carry-forwards. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled.

Liabilities are established for uncertain tax positions expected to be taken in income tax returns when such positions are judged to meet the “more-likely-than-not” threshold based on the technical merits of the positions. Estimated interest and penalties related to uncertain tax penalties are included as a component of other expenses.

Earnings Per Common Share

The Company computes earnings per share which requires presentation of basic and diluted earnings per share. Basic earnings per equivalent Class A common share are computed by dividing net earnings by the weighted-average number of Class A common shares outstanding during each year presented, after the effect of the assumed conversion of Class C common stock to Class A common stock. Diluted earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding during the year used to compute basic earnings per share plus dilutive potential incremental shares. Basic and diluted earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.

Stock Based Compensation

The cost of employee services received in exchange for an award of equity instruments is recognized in the financial statements and is measured based on the fair value on the grant date of the award. The fair value of stock options is calculated using the Black Scholes Option Pricing Model. Stock option compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award and is included in personnel expenses on the consolidated statements of earnings.

Concentration of Credit Risk

For a description of the geographic concentration risk regarding mortgage loans held for investment and real estate held for investment, refer to Note 2 of the Notes to Consolidated Financial Statements.

Advertising

The Company expenses advertising costs as incurred.

Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

ASU No. 2016-02: “Leases (Topic 842)” - Issued in February 2016, ASU 2016-02 supersedes the requirements in Accounting Standards Codification (“ASC”) Topic 840, “Leases”, and was issued to increase transparency and comparability among organizations. The new standard sets forth the principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record on the balance sheet right-of-use assets and lease liabilities, equal to the present value of the remaining lease payments. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or a straight-line basis over the term of the leases. The FASB further clarified ASU 2016-02 and provided targeted improvements by issuing ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20.

The Company adopted this standard on January 1, 2019 using the modified retrospective transition method with no cumulative-effect adjustment to the opening balance of retained earnings. Under this transition method, the application date was the beginning of the reporting period, January 1, 2019, in which the Company first applied the standard. Under this transition option, the Company will apply the legacy guidance in ASC 840, “Leases”, including its disclosure requirements, in the comparative periods presented in the year of adoption. The Company has made an accounting policy election not to apply the recognition requirements to short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying assets that the lessee is reasonably certain to exercise. The new authoritative guidance allows for certain practical expedients to be utilized to assist with the implementation of the new standard. The Company has elected the transition package of practical expedients which allows the Company to not reassess whether any expired or existing contracts are or contain leases, to not reassess the lease classification for any expired or existing leases and to not reassess initial direct costs for any existing leases.

The Company implemented a third-party lease accounting system to assist with the measurement of the lease liabilities and the related right-of-use assets. The Company compiled an inventory of its leases, determined the appropriate discount rates and has determined the impact of this standard which is not material to the Company’s results of operations, but has an effect on the balance sheet presentation for leased assets and obligations. The Company recognized a right-of-use asset and related lease liability for approximately $12,076,000 on January 1, 2019. This standard did not impact the Company’s accounting for leases where the Company is the lessor.

Accounting Standards Issued But Not Yet Adopted

ASU No. 2016-13: “Financial Instruments – Credit Losses (Topic 326)” – Issued in September 2016, ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis (such as mortgage loans and held to maturity debt securities) and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. In October 2019, the FASB proposed an update to ASU No. 2016-13 that would make the ASU effective for the Company on January 1, 2023. The Company is in the process of evaluating the potential impact of this standard, especially as it relates to mortgage loans held for investment.

ASU No. 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” – Issued in August 2018, ASU 2018-13 modifies the disclosure requirements of Topic 820 by removing, modifying or adding certain disclosures. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 does not change the fair value measurements already required or permitted by existing standards. This new authoritative guidance will be effective for the Company on January 1, 2020. The adoption of this standard will not materially impact the Company’s financial statements.

ASU No. 2018-12: “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” – Issued in August 2018, ASU 2018-12 is intended to improve the timeliness of recognizing changes in the liability for future policy benefits on traditional long-duration contracts by requiring that assumptions be updated after contract inception and by modifying the rate used to discount future cash flows. The ASU will simplify and improve the accounting for certain market-based options or guarantees associated with deposit or account balance contracts, simplify amortization of deferred acquisition costs while improving and expanding required disclosures. In October 2019, the FASB proposed an update to ASU No. 2018-12 that would make the ASU effective for the Company on January 1, 2024. The Company is in the process of evaluating the potential impact of this standard.

The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position.

2) Investments

12 Months Ended

Dec. 31, 2019

Notes

2) Investments

2) Investments

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.

The Company’s investments as of December 31, 2018 are summarized as follows:

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
December 31, 2018:
Fixed maturity securities held to maturity at amortized cost:
U.S. Treasury securities and obligations of U.S. Government agencies	$ 52,017,683	$ 264,891	$ (727,798)	$ 51,554,776

Obligations of states and political subdivisions	6,959,237	32,274	(111,271)	6,880,240

Corporate securities including public utilities	157,639,860	7,002,864	(3,704,137)	160,938,587

Mortgage-backed securities	15,358,746	227,398	(308,864)	15,277,280

Redeemable preferred stock	103,197	1,903	(5,125)	99,975

Total fixed maturity securities held to maturity	$ 232,078,723	$ 7,529,330	$ (4,857,195)	$ 234,750,858


Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$ 6,312,158	$ 422,528	$ (1,176,075)	$ 5,558,611

Total equity securities at estimated fair value	$ 6,312,158	$ 422,528	$ (1,176,075)	$ 5,558,611

Mortgage loans held for investment at amortized cost:
Residential		$ 89,935,600
Residential construction		71,366,544
Commercial		27,785,927
Less: Unamortized deferred loan fees, net		(1,275,030)
Less: Allowance for loan losses		(1,347,972)

Total mortgage loans held for investment		$ 186,465,069

Real estate held for investment - net of accumulated depreciation:
Residential		$ 29,507,431
Commercial		92,050,791

Total real estate held for investment		$ 121,558,222

Other investments and policy loans at amortized cost:
Policy loans		$ 6,424,325
Insurance assignments		35,239,396
Federal Home Loan Bank stock (1)		2,548,700
Other investments		3,497,762
Less: Allowance for doubtful accounts		(1,092,528)

Total policy loans and other investments		$ 46,617,655

Accrued investment income		$ 3,566,146

Total investments		$ 595,844,426


(1) Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings.

Fixed Maturity Securities

On December 31, 2019, the Company changed the classification of its bond and preferred stock investments from held to maturity to available for sale based on the Company’s need to be able to respond proactively to market risks in managing its portfolio. Such investments are carried at fair value with any unrealized gains and losses reported as a component of other accumulated comprehensive income or loss. At the date of the transfer, the carrying value of the Company’s held to maturity securities was $338,629,810, and net unrealized gains of $17,315,770 were recognized in accumulated other comprehensive income.

The following tables summarize unrealized losses on fixed maturities securities that were carried at estimated fair value at December 31, 2019 and carried at amortized cost at December 31, 2018. The unrealized losses were primarily related to interest rate fluctuations. 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, 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


At December 31, 2018
U.S. Treasury Securities and Obligations
of U.S. Government Agencies	$ 10,519	$ 695,863	$ 717,279	$ 39,930,052	$ 727,798	$ 40,625,915
Obligations of States and Political Subdivisions	6,643	1,791,257	104,628	2,889,517	111,271	4,680,774
Corporate Securities	2,514,549	61,090,431	1,189,588	11,767,349	3,704,137	72,857,780
Mortgage and other asset-backed securities	79,896	1,705,296	228,968	2,690,065	308,864	4,395,361
Redeemable preferred stock	5,125	90,000	-	-	5,125	90,000
Total unrealized losses	$ 2,616,732	$ 65,372,847	$ 2,240,463	$ 57,276,983	$ 4,857,195	$ 122,649,830

There were 93 securities with fair value of 98.9% of amortized cost at December 31, 2019. There were 361 securities with fair value of 96.2% of amortized cost at December 31, 2018. No credit losses have been recognized for the years ended December 31, 2019 and 2018.

On a quarterly basis, the Company evaluates its fixed maturity securities classified as available for sale or held to maturity. This evaluation includes a review of current ratings by the National Association of Insurance Commissions (“NAIC”). Securities with a rating of 1 or 2 are considered investment grade and are not reviewed for impairment. Securities with ratings of 3 to 5 are evaluated for impairment. Securities with a rating of 6 are automatically determined to be impaired and are written down. The evaluation involves an analysis of the securities in relation to historical values, interest payment history, projected earnings and revenue growth rates as well as a review of the reason for a downgrade in the NAIC rating. Based on the analysis of a security that is rated 3 to 5, a determination is made whether the security will likely make interest and principal payments in accordance with the terms of the financial instrument. If it is unlikely that the security will meet contractual obligations, the loss is considered to be other than temporary, the security is written down to the new anticipated market value and an impairment loss is recognized. Impairment losses are treated as credit losses as the Company holds fixed maturity securities to maturity unless the underlying conditions have changed in the financial instrument to require an impairment.

The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments.

The amortized cost and estimated fair value of fixed maturity securities at December 31, 2019, by contractual maturity, are shown below. 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	$ 104,805,927	$ 104,845,243
Due in 2-5 years	67,412,618	69,126,500
Due in 5-10 years	71,110,341	76,249,550
Due in more than 10 years	63,461,305	73,559,690
Mortgage-backed securities	31,475,280	31,832,498
Redeemable preferred stock	364,339	364,339
Total held to maturity	$ 338,629,810	$ 355,977,820

The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). The Company pledged a total of $60,000,000, par value, of United States Treasury fixed maturity securities with the FHLB at December 31, 2019. These securities are used as collateral on any cash borrowings from the FHLB. As of December 31, 2019, the Company did not have any outstanding amounts owed to the FHLB and its estimated maximum borrowing capacity was $57,727,738.

Investment Related Earnings

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

	2019	2018
Fixed maturity securities held to maturity:
Gross realized gains	$ 459,286	$ 522,937
Gross realized losses	(162,649)	(669,303)

Equity securities:
Gains (losses) on securities sold	256,520	(173,413)
Unrealized gains (losses) on securities held at the end of the period	1,086,116	(1,053,756)

Other assets:
Gross realized gains	2,844,673	26,553,814	(1)
Gross realized losses	(3,755,579)	(1,239,100)
Total	$ 728,367	$ 23,941,179

(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments.

The net realized gains and losses on the sale of securities are recorded on the trade date, and the cost of the securities sold is determined using the specific identification method.

The carrying amount of held to maturity securities sold was $4,950,041 and $5,808,244, for the years ended December 31, 2019 and 2018, respectively. The net realized gain related to these sales was $43,039, for the year ended December 31, 2019, and the net realized loss related to these sales was $268,823, for the year ended December 31, 2018.

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

	2019	2018
Fixed maturity securities	$ 10,372,559	$ 10,041,349
Equity securities	309,918	233,555
Mortgage loans held for investment	18,405,010	18,716,226
Real estate held for investment and sale	8,782,959	8,375,257
Policy loans	554,969	409,589
Insurance assignments	16,086,059	14,771,336
Other investments	184,439	227,930
Cash and cash equivalents	1,824,443	1,264,611
Gross investment income	56,520,356	54,039,853
Investment expenses	(13,500,883)	(14,126,586)
Net investment income	$ 43,019,473	$ 39,913,267

Net investment income includes net investment income earned by the restricted assets of the cemeteries and mortuaries of $448,754 and $386,659 for the years ended December 31, 2019 and 2018, respectively.

Net investment income on real estate consists primarily of rental revenue.

Investment expenses consist primarily of depreciation, property taxes, operating expenses of real estate and an estimated portion of administrative expenses relating to investment activities.

Securities on deposit for regulatory authorities as required by law amounted to $9,633,818 and $9,220,520 at December 31, 2019 and 2018, respectively. The restricted securities are included in various assets under investments on the accompanying consolidated balance sheets.

There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses on equity securities) at December 31, 2019, other than investments issued or guaranteed by the United States Government.

Real Estate Held for Investment and Held for Sale

The Company continues to strategically deploy resources into real estate to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business segments in the form of acquisition, development and mortgage foreclosures. The Company reports real estate held for investment and held for sale pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

Commercial Real Estate Held for Investment and Held for Sale

The Company owns and manages commercial real estate assets as a means of generating investment income. These assets are acquired in accordance with the Company’s goals and objectives for risk-adjusted returns. Due diligence is conducted on each asset using internal and third-party reports. Geographic locations and asset classes of the investment activity is determined by senior management under the direction of the Board of Directors.

The Company employs full-time employees to attend to the day-to-day operations of those assets within the greater Salt Lake area and close surrounding markets. The Company utilizes third-party property managers when the geographic boundary does not warrant full-time staff or through strategic lease-up periods. The Company generally looks to acquire assets in regions that are high growth regions for employment and population and assets that provide operational efficiencies.

The Company currently owns and operates 16 commercial properties in 5 states. These properties include industrial warehouses, office buildings, retail centers, and includes the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company also holds undeveloped land that may be used for future commercial developments. The Company does use debt in strategic cases to leverage established yields or to acquire a higher quality or different class of asset. See Note 20 regarding commercial real estate held for investment in Louisiana acquired with the acquisition of Kilpatrick Life Insurance Company.

The aggregated net ending balance of commercial real estate that serves as collateral for bank borrowings was approximately $87,815,000 and $84,880,000 as of December 31, 2019 and 2018, respectively. The associated bank loan carrying values totaled approximately $54,917,000 and $52,237,000 as of December 31, 2019 and 2018, respectively.

During the years ended December 31, 2019 and 2018, the Company recorded impairment losses on commercial real estate held for investment of $2,768,979 and $-0-, respectively. The impairment loss of $2,768,979 recognized relates to an office building in Kansas held by the life insurance segment for which the Company received an unsolicited bid from a potential buyer that was significantly below the building’s carrying value. Although management did not consider the offer as representative of fair value, the Company evaluated the unsolicited bid as a potential impairment indicator. The Company performed an impairment analysis internally and obtained an independent appraisal from an outside commercial real estate valuation firm, concluding that the fair value of the building was less than its carrying value. This office building was recently listed for sale and is included in commercial real estate held for sale. This impairment loss is included in gains (losses) on investments and other assets on the consolidated statements of earnings.

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
	2019		2018		2019	2018
Arizona	$ -		$ 4,000	(1)	-	-
Kansas	-		6,861,898		-	222,679
Louisiana	6,009,079		467,694		125,114	7,063
Mississippi	2,951,478		3,329,948		21,521	33,821
New Mexico	-		7,000	(1)	-	-
Texas	-		300,000	(2)	-	-
Utah	81,266,083	(3)	81,080,251		465,230	502,129

	$ 90,226,640		$ 92,050,791		611,865	765,692

(1) Undeveloped Land
(2) Improved commercial pad
(3) Includes Center53 phase 1 completed in July 2017

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
	2019		2018	2019	2018
Arizona	$ 2,500	(1)	$ -	-	-
Kansas	4,800,000		-	222,679	-
Mississippi	318,322		-	12,300	-
Nevada	655,499		-	4,800	-
Texas	300,000	(2)	-	-	-

	$ 6,076,321		$ -	239,779	-

(1) Undeveloped land
(2) Improved commercial pad

These properties are all actively being marketed with the assistance of commercial real estate brokers in the markets where the properties are located. The Company expects these properties to sell within the coming 12 months.

Residential Real Estate Held for Investment and Held for Sale

The Company owns a portfolio of residential homes primarily as a result of loan foreclosures. The strategy has been to lease these homes to produce cash flow, and allow time for the economic fundamentals to return to the various markets. As an orderly and active market for these homes returns, the Company has the option to dispose or to continue and hold them for cash flow and acceptable returns. The Company also invests in residential subdivision developments.

The Company established Security National Real Estate Services (“SNRE”) to manage the residential portfolio. SNRE cultivates and maintains the preferred vendor relationships necessary to manage costs and quality of work performed on the portfolio of homes across the country.

As of December 31, 2019, SNRE manages 38 residential properties in 6 states across the United States.

During the years ended December 31, 2019 and 2018, the Company recorded impairment losses on residential real estate held for investment of $700,134 and $486,457, respectively. These impairment losses are included in gains (losses) on investments and other assets on the consolidated statements of earnings.

The net ending balance of foreclosed residential real estate included in residential real estate held for investment is approximately $12,434,000 and $23,532,000 as of December 31, 2019 and 2018, respectively.

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

	Net Ending Balance
	2019		2018
California	$ -		$ 2,644,321
Florida	2,487,723		6,534,277
Nevada	293,516		-
Ohio	-		10,000
Oklahoma	-		-
Tennessee	-		105,260
Texas	-		139,174
Utah	9,462,886	(1)	19,598,218	(1)
Washington	286,181		476,181
	$ 12,530,306		$ 29,507,431

(1) Includes subdivision developments

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

	Net Ending Balance
	2019	2018
California	640,452	-
Florida	1,300,641	-
Ohio	10,000	-
Utah	5,880,213	-
Washington	190,000	-
	$ 8,021,306	$ -

These properties are all actively being marketed with the assistance of residential real estate brokers in the markets where the properties are located. The Company expects these properties to sell within the coming 12 months.

Real Estate Owned and Occupied by the Company

The primary business units of the Company occupy a portion of the commercial real estate owned by the Company. As of December 31, 2019, 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%

Mortgage Loans Held for Investment

The Company reports mortgage loans held for investment pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

Mortgage loans consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0 % to 10.5%, maturity dates range from nine months to 30 years and are secured by real estate. Concentrations of credit risk arise when a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of its debtors’ ability to honor obligations is reliant on the economic stability of the geographic region in which the debtors do business. At December 31, 2019, the Company had 48%, 16%, 10%, 6%, 6% and 5% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, California, Nevada and Arizona, respectively.

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
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

2018
Allowance for credit losses:
Beginning balance	$ 187,129	$ 1,546,447	$ 35,220	$ 1,768,796
Charge-offs	-	(5,725)	-	(5,725)
Provision	-	(415,099)	-	(415,099)
Ending balance	$ 187,129	$ 1,125,623	$ 35,220	$ 1,347,972

Ending balance: individually evaluated for impairment	$ -	$ 74,185	$ -	$ 74,185

Ending balance: collectively evaluated for impairment	$ 187,129	$ 1,051,438	$ 35,220	$ 1,273,787

Mortgage loans:
Ending balance	$ 27,785,927	$ 89,935,600	$ 71,366,544	$ 189,088,071

Ending balance: individually evaluated for impairment	$ 196,182	$ 2,939,651	$ 502,991	$ 3,638,824

Ending balance: collectively evaluated for impairment	$ 27,589,745	$ 86,995,949	$ 70,863,553	$ 185,449,247

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

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
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

2018
Commercial	$ 4,588,424	$ -	$ 196,182	$ -	$ 4,784,606	$ 23,001,321	$ 27,785,927	$ (187,129)	$ 32,003	$ -	$ 27,630,801
Residential	9,899,380	2,312,252	1,715,362	1,224,289	15,151,283	74,784,317	89,935,600	(1,125,623)	(862,411)	-	87,947,566
Residential Construction	-	-	-	502,991	502,991	70,863,553	71,366,544	(35,220)	(444,622)	-	70,886,702

Total	$ 14,487,804	$ 2,312,252	$ 1,911,544	$ 1,727,280	$ 20,438,880	$ 168,649,191	$ 189,088,071	$ (1,347,972)	$ (1,275,030)	$ -	$ 186,465,069

(1) There was not any interest income recognized on loans past due greater than 90 days or in foreclosure.

Impaired Mortgage Loans Held for Investment

Impaired mortgage loans held for investment include loans with a related specific valuation allowance or loans whose carrying amount has been reduced to the expected collectible amount because the impairment has been considered other than temporary. 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
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	-

2018
With no related allowance recorded:
Commercial	$ 196,182	$ 196,182	$ -	$ 98,023	$ -
Residential	1,612,164	1,612,164	-	2,423,135	-
Residential construction	502,991	502,991	-	675,950	-

With an allowance recorded:
Commercial	$ -	$ -	$ -	$ -	$ -
Residential	1,327,487	1,327,487	74,185	1,543,416	-
Residential construction	-	-	-	-	-

Total:
Commercial	$ 196,182	$ 196,182	$ -	$ 98,023	$ -
Residential	2,939,651	2,939,651	74,185	3,966,551	-
Residential construction	502,991	502,991	-	675,950	-

Credit Risk Profile Based on Performance Status

The Company’s mortgage loan held for investment portfolio is monitored based on performance of the loans. Monitoring a mortgage loan increases when the loan is delinquent or earlier if there is an indication of impairment. The Company defines non-performing mortgage loans as loans 90 days or greater delinquent or on non-accrual 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
	2019	2018	2019	2018	2019	2018	2019	2018

Performing	$ 34,229,501	$ 27,589,745	$ 109,291,758	$ 86,995,949	$ 88,775,237	$ 70,863,553	$ 232,296,496	$ 185,449,247
Non-performing	4,488,719	196,182	3,752,207	2,939,651	655,000	502,991	8,895,926	3,638,824

Total	$ 38,718,220	$ 27,785,927	$ 113,043,965	$ 89,935,600	$ 89,430,237	$ 71,366,544	$ 241,192,422	$ 189,088,071

Non-Accrual Mortgage Loans Held for Investment

Once a loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and write off any income that had been accrued. Payments received for loans on a non-accrual status are recognized on a cash basis. Interest income recognized from any payments received for loans on a non-accrual status was immaterial. Accrual of interest resumes if a loan is brought current. Interest not accrued on these loans totals approximately $203,000 and $151,000 as of December 31, 2019 and 2018, respectively.

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
	2019	2018
Commercial	$ 4,488,719	$ 196,182
Residential	3,752,207	2,939,651
Residential construction	655,000	502,991
Total	$ 8,895,926	$ 3,638,824

Principal Amounts Due

The amortized cost and contractual payments on mortgage loans held for investment by category as of December 31, 2019 are shown below. 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	$ 113,043,965	$ 6,234,913	$ 27,161,628	$ 79,647,424
Residential Construction	89,430,237	$ 60,376,688	$ 29,053,549	-
Commercial	38,718,220	24,175,464	4,020,999	10,521,757
Total	$ 241,192,422	$ 90,787,065	$ 60,236,176	$ 90,169,181

3) Loans Held For Sale

12 Months Ended

Dec. 31, 2019

Notes

3) Loans Held For Sale

3)Loans Held for Sale

The Company has elected the fair value option for loans held for sale as disclosed in Note 1. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on mortgage loans held for investment and is included in mortgage fee income on the consolidated statement of earnings. There are five loans with an aggregate unpaid principal balance of $1,130,028 that are 90 or more days past due and on a nonaccrual status as of December 31, 2019. See Note 17 of the Notes to Consolidated Financial Statements for additional disclosures regarding loans held for sale.

The following is a summary of the aggregate fair value and the aggregate unpaid principal balance of loans held for sale for the periods presented:

	As of December 31 2019	As of December 31 2018

Aggregate fair value	$ 213,457,632	$ 136,210,853
Unpaid principal balance	206,417,122	131,663,946
Unrealized gain	7,040,510	4,546,907

Mortgage Fee Income

Mortgage fee income consists of origination fees, processing fees, interest income and certain other income related to the origination and sale of mortgage loans held for sale.

Major categories of mortgage fee income for loans held for sale for the years ended December 31, were as follows:

	2019	2018
Loan fees	$ 28,660,966	$ 27,429,237
Interest income	6,978,930	6,156,796
Secondary gains	93,581,956	80,416,718
Change in fair value of loan commitments	899,417	(404,773)
Change in fair value of loans held for sale	2,498,097	3,736,209
Provision for loan loss reserve	(643,284)	(1,148,334)
Mortgage fee income	$ 131,976,082	$ 116,185,853

Loan Loss Reserve

When a repurchase demand corresponding to a mortgage loan previously held for sale and sold to a third-party investor is received from a third-party investor, the relevant data is reviewed and captured so that an estimated future loss can be calculated. The key factors that are used in the estimated loss calculation are as follows: (i) lien position, (ii) payment status, (iii) claim type, (iv) unpaid principal balance, (v) interest rate, and (vi) validity of the demand. Other data is captured and is useful for management purposes; the actual estimated loss is generally based on these key factors. The Company conducts its own review upon the receipt of a repurchase demand. In many instances, the Company is able to resolve the issues relating to the repurchase demand by the third-party investor without having to make any payments to the investor.

The following is a summary of the loan loss reserve which is included in other liabilities and accrued expenses:

	December 31
	2019	2018
Balance, beginning of period	$ 3,604,869	$ 2,571,524
Provision for current loan originations (1)	643,284	1,148,334
Charge-offs, net of recaptured amounts	(201,865)	(114,989)
Balance, at December 31	$ 4,046,288	$ 3,604,869

(1) Included in Mortgage fee income

The Company maintains reserves for estimated losses on current production volumes. The Company also retains loss reserves for loans that the Company originated between 2005 and 2007, in which the possibility of an investor claim or potential settlement may still exist. During 2019, reserves were added at a rate of 2.5 basis points per loan originated, the equivalent of $250 per $1,000,000 in loans originated. During 2018, reserves were added at an average rate of 5.0 basis points per loan originated.

Based on the Company’s best estimate for potential loan losses and considering published industry data, loss reserve basis points are established to create an adequate reserve. The reserve is intended to cover both expected losses on recent period loan production and possible losses on earlier loans that were sold. The strong housing market over the last several years has reduced the Company’s exposure to losses on more recent loan production, but exposure still remains on older loans.

During the period from 2006 to 2019, over $60 million has been reserved for loan losses. A large majority of that reserve has been used to settle investor claims or potential claims on alternative documentation loans originated between 2005 to 2007. As the time since the origination of these loans has increased, estimating the potential of a claim being made, when it might be made, the validity of the claim, and the amount of such claim becomes more difficult. However, because some loans remain from the original 2005 to 2007 time period that have not been settled, the Company still includes a reserve for the potential of future loan demands and potential settlements of such loans. As of December 31, 2019, the loan loss reserve includes an estimate of approximately $3,000,000 for remaining losses still to be settled on loans from this time period with a general reserve for more recent loan production. Thus, the Company believes that the final loan loss reserve as of December 31, 2019, represents its best estimate for adequate loss reserves on loans sold.

The Company believes that actual loan loss experience could change in the near-term from the established reserve based upon claims that could be asserted by a third-party investor. The Company believes there is potential to resolve any alleged claims by a third-party investor on acceptable terms. If the Company is unable to resolve such claims on acceptable terms, legal action may ensue. In the event of legal action by any third-party investor, the Company believes it has significant defenses to any such action and intends to vigorously defend itself against such action.

4) Receivables

12 Months Ended

Dec. 31, 2019

Notes

4) Receivables

4)Receivables

Receivables consist of the following:

	December 31
	2019	2018
Trade contracts	$ 2,795,471	$ 2,816,225
Receivables from sales agents	2,962,571	3,079,688
Other	5,202,444	4,559,272
Total receivables	10,960,486	10,455,185
Allowance for doubtful accounts	(1,724,156)	(1,519,842)
Net receivables	$ 9,236,330	$ 8,935,343

5) Value of Business Acquired, Instangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Notes

5) Value of Business Acquired, Instangible Assets and Goodwill

5) Value of Business Acquired, Intangible Assets and Goodwill

Information with regard to value of business acquired was as follows:

	December 31
	2019		2018
Balance at beginning of year	$ 5,765,190		$ 6,588,759
Value of business acquired	4,962,831	(1)	-
Imputed interest at 7% included in earnings	472,916		421,122
Amortization included in earnings	(1,320,456)		(1,244,691)
Shadow amortization included in other comprehensive income	(3,834)		-
Net amortization	(851,374)		(823,569)
Balance at end of year	$ 9,876,647		$ 5,765,190

(1) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

Presuming no additional acquisitions, net amortization charged to income is expected to approximate $1,194,000, $1,065,000, $985,000, $916,000, and $845,000 for the years 2020 through 2025 . Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2019, value of business acquired is being amortized over a weighted average life of 6.8 years.

The carrying value of the Company’s intangible assets were as follows:

		December 31
	Useful Life	2019		2018
Intangible asset - customer lists	15 years	$ 890,000	(1)	$ 890,000	(1)
Intangible asset - trade name	15 years	$ 610,000	(2)	$ -
Less accumulated amortization		(98,222)		(34,611)
Balance at end of year		$ 1,401,778		$ 855,389

(1) See Note 20 regarding the acquisition of Beta Capital Corp.
(2) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

Information regarding goodwill by segment was as follows:

	Life Insurance	Cemetery/Mortuary		Total
Balance at January 1, 2018:
Goodwill	$ 2,765,570	$ -		$ 2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570

Balance at December 31, 2018:
Goodwill	2,765,570	-		2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570

Acquisition	-	754,018	(1)	754,018

Balance at December 31, 2019:
Goodwill	2,765,570	754,018		3,519,588
Accumulated impairment	-	-		-
Total goodwill, net	$ 2,765,570	$ 754,018		$ 3,519,588

(1) See Note 20 regarding the acquisition of Probst Family Funerals and Cremations and Heber Valley Funeral Home

Goodwill of $3,519,588 is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for the years ended December 31, 2019 and 2018.

6) Property and Equipment

12 Months Ended

Dec. 31, 2019

Notes

6) Property and Equipment

6) Property and Equipment

The cost of property and equipment is summarized below:

	December 31
	2019	2018
Land and buildings	$ 15,131,301	$ 7,775,922
Furniture and equipment	18,987,984	16,731,457
	34,119,285	24,507,379
Less accumulated depreciation	(19,518,891)	(17,496,601)
Total	$ 14,600,394	$ 7,010,778

Depreciation expense for the years ended December 31, 2019 and 2018 was $1,711,369 and $1,867,001, respectively. During 2019, the Company transferred $3,261,259 from real estate held for investment to property and equipment. This transfer is shown as a non cash item on the consolidated statements of cash flows. See Note 20 for additional information regarding property and equipment acquired through acquisitions.

7) Bank and Other Loans Payable

12 Months Ended

Dec. 31, 2019

Notes

7) Bank and Other Loans Payable

7)Bank and Other Loans Payable

Bank and other loans payable are summarized as follows:

	December 31
	2019	2018
2.25% above the monthly LIBOR rate plus 1/16th of the monthly LIBOR rate note payable in monthly principal payments of $13,167 plus interest, collateralized by real property with a book value of approximately $4,244,000, due September 2021.	$ 2,659,769	$ 2,817,775

4.27% fixed note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2021.	1,238,619	1,817,905

Prime rate note payable in monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2024.	4,000,000	-

4.40% fixed note payable in monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,923,000, due January 2026.	7,247,651	7,492,140

4.329% fixed note payable in monthly installments of $9,775 including principal and interest, collateralized by real property with a book value of approximately $3,261,000, due September 2025.	1,896,450	1,929,725

2.5% above the monthly LIBOR rate plus 1/16th of the monthly LIBOR rate construction loan payable in monthly principal payments of $113,000 plus interest, collateralized by real property with a book value of approximately $49,378,000, due August 2020.	33,811,559	30,796,861

4.7865% fixed interest only note payable in monthly installments, collateralized by real property with a book value of approximately $18,009,000, due June 2028.	9,200,000	9,200,000

1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures June 2020.	88,509,536	60,438,156

1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures September 2020.	67,537,600	25,680,649

Other short-term borrowings (1)	1,250,000	47,250,000

Finance lease liabilities	153,439	-

Other loans payable	67,989	97,977
Total bank and other loans	217,572,612	187,521,188

Less current installments	192,985,602	165,219,632
Bank and other loans, excluding current installments	$ 24,587,010	$ 22,301,556

(1) Federal Home Loan Bank and Revolving Lines of Credit

Sources of Liquidity

Federal Home Loan Bank Membership

The Federal Home Loan Banks (“the FHLBs”) are a group of cooperatives that lending institutions use to finance housing and economic development in local communities. The Company is a member of the FHLB based in Des Moines, Iowa and based in Dallas, Texas. As a member of the FHLB, the Company is required to maintain a minimum investment in capital stock of the FHLB and may pledge collateral to the bank for advances of funds to be used in its operations.

Federal Home Loan Bank of Des Moines

At December 31, 2019, the amount available for borrowings from the FHLB of Des Moines was approximately $57,727,738, compared with $534,579 at December 31, 2018. United States Treasury fixed maturity securities with an estimated fair value of $59,877,900 at December 31, 2019 have been pledged at the FHLB of Des Moines as collateral for current and potential borrowings compared with $49,342,210 at December 31, 2018. At December 31, 2019, the Company had no outstanding FHLB borrowings. At December 31, 2019, the Company’s total investment in FHLB stock was $806,500 compared with $2,548,700 at December 31, 2018. The Company’s decreased investment in FHLB stock was a result of its decrease in short-term FHLB borrowings during 2019.

Federal Home Loan Bank of Dallas

The membership of the FHLB of Dallas was acquired with the acquisition of Kilpatrick Life Insurance Company. See Note 20 regarding this acquisition. At December 31, 2019, the Company’s total investment in FHLB stock was $87,800. The Company does not have any collateral pledged at the FHLB of Dallas or any outstanding borrowings.

Revolving Lines of Credit

The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75%, secured by the capital stock of Security National Life and maturing September 30, 2020, renewable annually. At December 31, 2019, the Company was contingently liable under a standby letter of credit aggregating $625,405, to be used as collateral to cover any contingency related to additional risk assessments pertaining to the Company's captive insurance program. The Company does not expect any material losses to result from the issuance of the standby letter of credit. The standby letter of credit will draw on the line of credit if necessary. The Company does not expect any material losses to result from the issuance of the standby letter of credit because claims are not expected to exceed premiums paid. As of December 31, 2019, there were no amounts outstanding under the revolving line-of-credit.

The Company also has a $2,500,000 revolving line-of-credit with a bank with interest payable at the overnight LIBOR rate plus 2.25% maturing September 30, 2020. As of December 31, 2019, there was $1,250,000 outstanding under the revolving line-of-credit.

Debt Covenants for Mortgage Warehouse Lines of Credit

The Company, through its subsidiary SecurityNational Mortgage, has a $100,000,000 line of credit with Wells Fargo Bank N.A. The agreement charges interest at the 1-Month LIBOR rate plus 2.1% and matures on June 16, 2020. SecurityNational Mortgage is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, the ratio of indebtedness to adjusted tangible net worth, and the liquidity overhead coverage ratio, and a quarterly gross profit of at least $1.

The Company, through its subsidiary SecurityNational Mortgage, also uses a line of credit with Texas Capital Bank N.A. This agreement with the bank allows SecurityNational Mortgage to borrow up to $100,000,000 for the sole purpose of funding mortgage loans. SecurityNational Mortgage is currently approved to borrow $30,000,000 of the $100,000,000 available. The agreement charges interest at the 1-Month LIBOR rate plus 3% and matures on September 9, 2020. The Company is required to comply with covenants for adjusted tangible net worth, unrestricted cash balance, and minimum combined pre-tax income (excluding any changes in the fair value of mortgage servicing rights) of at least $1 on a rolling four-quarter basis.

The agreements for both warehouse lines include cross default provisions in that a covenant violation under one agreement constitutes a covenant violation under the other agreement. As of December 31, 2019, the Company had approximately $67,538,000 and $88,510,000 outstanding on the Texas Capital Bank and Wells Fargo warehouse lines, respectively, and was in compliance with all debt covenants.

The following tabulation shows the combined maturities of bank and other loans payable:

2019	$ 192,985,602
2020	4,256,684
2021	1,151,703
2022	1,218,742
2023	1,247,461
Thereafter	16,712,420
Total	$ 217,572,612

Interest expense in 2019 and 2018 was $7,386,688 and $6,956,707, respectively. Interest paid in 2019 and 2018 was $7,284,078 and $6,878,048, respectively.

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

12 Months Ended

Dec. 31, 2019

Notes

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets

State law requires the Company to pay into endowment care trusts a portion of the proceeds from the sale of certain cemetery property interment rights for cemeteries that have established an endowment care trust. These endowment care trusts are defined as variable interest entities pursuant to GAAP. Also, management has determined that the Company is the primary beneficiary of these trusts, as it absorbs both a majority of the losses and returns associated with the trusts. The Company has consolidated cemetery endowment care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets.

The components of the cemetery perpetual care investments and obligation are as follows:

	December 31
	2019	2018
Cash and cash equivalents	$ 1,306,740	$ 1,557,506
Fixed maturity securities, available for sale, at estimated fair value	975,673	990,390
Equity securities, at estimated fair value	1,605,451	483,353
Commerical mortgage loans held for investment	524,000	-
Real estate held for investment	-	1,304,620
Note receivables from Cottonwood Mortuary, Singing Hills
Cemetery and Memorial Estates eliminated in consolidation	1,541,120	1,606,155
Total cemetery perpetual care trust investments	5,952,984	5,942,024
Cemetery perpetual care obligation	(3,933,719)	(3,821,979)
Trust investments in excess of trust obligations	$ 2,019,265	$ 2,120,045

The Company has also established certain restricted assets to provide for future merchandise and service obligations incurred in connection with its pre-need sales for its cemetery and mortuary segment.

Restricted cash also represents escrows held for borrowers and investors under servicing and appraisal agreements relating to mortgage loans, funds held by warehouse banks in accordance with loan purchase agreements and funds held in escrow for certain real estate construction development projects. Additionally, the Company elected to fund its medical benefit safe-harbor limit based on 35% of the qualified direct costs for the preceding year, and has included this amount as a component of restricted cash. These restricted cash items are for the Company’s life insurance and mortgage segments.

Restricted assets are summarized as follows:

	December 31
	2019	2018
Cash and cash equivalents (1)	$ 8,674,214	$ 7,179,225
Mutual funds, at estimated fair value	-	677,795
Fixed maturity securities, available for sale, at estimated fair value	1,008,867	1,258,397
Equity securities, at estimated fair value	1,976,480	66,878
Participating interests in mortgage loans held for investment with Security National Life	2,275,756	1,799,267
Total	$ 13,935,317	$ 10,981,562

(1) Including cash and cash equivalents of $7,170,092 and $5,668,580 as of December 31, 2019 and 2018, respectively, for the life insurance and mortgage segments.

A surplus note receivable in the amount of $4,000,000 at December 31, 2019 and 2018, from Security National Life, was eliminated in consolidation.

See Notes 1 and 17 for additional information regarding restricted assets.

9) Income Taxes

12 Months Ended

Dec. 31, 2019

Notes

9) Income Taxes

9)Income Taxes

The Company’s income tax liability is summarized as follows:

	December 31
	2019	2018
Current	$ 1,410,153	$ 473,800
Deferred	17,276,819	15,649,198
Total	$ 18,686,972	$ 16,122,998

Significant components of the Company’s deferred tax (assets) and liabilities are approximately as follows:

	December 31
	2019	2018
Assets
Future policy benefits	$ (12,450,229)	$ (8,293,592)
Loan loss reserve	(1,053,256)	(938,496)
Unearned premium	(760,556)	(823,299)
Available for sale securities	-	(366,279)
Net operating loss	(438,420)	(593,272)
Deferred compensation	(1,996,865)	(1,677,118)
Deposit obligations	(619,633)	(610,769)
Other	(1,020,718)	(185,557)
Less: Valuation allowance	2,439,394	-
Total deferred tax assets	(15,900,283)	(13,488,382)

Liabilities
Deferred policy acquisition costs	15,536,717	15,255,960
Basis difference in property and equipment	3,638,512	4,309,162
Value of business acquired	2,074,096	1,210,690
Deferred gains	5,169,104	6,267,373
Trusts	1,064,387	1,064,387
Tax on unrealized appreciation	5,694,286	1,030,008
Total deferred tax liabilities	33,177,102	29,137,580
Net deferred tax liability	$ 17,276,819	$ 15,649,198

The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. For the year ended December 31, 2019, the Company has recorded a valuation allowance related to Kilpatrick Life Insurance Company that was acquired in December 2019. See Note 20 regarding the acquisition.

The Company paid $4,861,318 and $5,701,565 in income taxes for the years ended December 31, 2019 and 2018, respectively.

The Company’s income tax expense is summarized as follows for the years ended December 31:

	2019	2018
Current
Federal	$ 4,404,041	$ 6,933,145
State	504,272	166,567
	4,908,313	7,099,712

Deferred
Federal	(1,551,725)	(1,838,947)
State	(306,172)	(766,454)
	(1,857,897)	(2,605,401)

Total	$ 3,050,416	$ 4,494,311

The reconciliation of income tax expense (benefit) at the U.S. federal statutory rates is as follows:

	2019	2018
Computed expense at statutory rate	$ 2,928,226	$ 5,497,882
State tax expense, net of federal tax benefit	156,499	(473,911)
Change in valuation allowance	194,364	-
Other, net	(228,673)	(529,660)
Income tax expense	$ 3,050,416	$ 4,494,311

The Company’s overall effective tax rate for the years ended December 31, 2019 and 2018 was 21.9% and 17.2%, respectively. The Company’s effective tax rates differ from the U.S. federal statutory corporate income tax rate of 21% partially due to its provision for state income taxes and an increase to the valuation allowance related to Kilpatrick Life Insurance Company that increased the effective income tax rate when compared to the prior year.

At December 31, 2019, the Company had no significant unrecognized tax benefits. As of December 31, 2019, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2016 through 2019 are subject to examination by taxing authorities.

Net Operating Losses and Tax Credit Carryforwards:

Year of Expiration
2020	$ 114,601
2021	17,101
2022	-
2023	-
2024	-
Thereafter up through 2037	1,701,126

	$ 1,832,828

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

10) Reinsurance, Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Notes

10) Reinsurance, Commitments and Contingencies

10)Reinsurance, Commitments and Contingencies

Reinsurance

The Company follows the procedure of reinsuring risks in excess of a specified limit, which ranged from $25,000 to $100,000 during the years 2019 and 2018. The Company is liable for these amounts in the event such reinsurers are unable to pay their portion of the claims. The Company has also assumed insurance from other companies having insurance in force amounting to approximately $99,000,000 and approximately $103,000,000 at December 31, 2019 and 2018, respectively.

Mortgage Loan Loss Settlements

Future loan losses can be extremely difficult to estimate. However, the Company believes that its reserve methodology and its current practice of property preservation allow it to estimate potential losses on loans sold. The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2019 and 2018, the balances were $4,046,000 and $3,605,000, respectively.

Mortgage Loan Loss Litigation

Lehman Brothers Holdings Litigation – Delaware and New York

In January 2014, Lehman Brothers Holdings Inc. (“Lehman Holdings”) entered into a settlement with the Federal National Mortgage Association (Fannie Mae) concerning the mortgage loan claims that Fannie Mae had asserted against Lehman Holdings, which were based on alleged breaches of certain representations and warranties by Lehman Holdings in the mortgage loans it had sold to Fannie Mae. Lehman Holdings had acquired these loans from Aurora Bank, FSB, formerly known as Lehman Brothers Bank, FSB, which in turn purchased the loans from residential mortgage loan originators, including SecurityNational Mortgage Company (“SecurityNational Mortgage”). A settlement based on similar circumstances was entered into between Lehman Holdings and the Federal Home Loan Mortgage Corporation (Freddie Mac) in February 2014.

Lehman Holdings filed a motion in May 2014 with the U.S. Bankruptcy Court of the Southern District of New York to require the mortgage loan originators, including SecurityNational Mortgage, to engage in non-binding mediations of the alleged indemnification claims against the mortgage loan originators relative to the Fannie Mae and Freddie Mac settlements with Lehman Holdings. The mediation was not successful in resolving any issues between SecurityNational Mortgage and Lehman Holdings.

On January 26, 2016, SecurityNational Mortgage filed a declaratory judgment action against Lehman Holdings in the Superior Court for the State of Delaware. In the Delaware action, SecurityNational Mortgage asserted its right

to obtain a declaration of rights in that there are allegedly millions of dollars in dispute with Lehman Holdings pertaining to approximately 136 mortgage loans. SecurityNational Mortgage sought a declaratory judgment as to its rights as it contends that it has no liability to Lehman Holdings as a result of Lehman Holdings’ settlements with Fannie Mae and Freddie Mac. Lehman Holdings filed a motion in the Delaware court seeking to stay or dismiss the declaratory judgment action. On August 24, 2016, the Court ruled that it would exercise its discretion to decline jurisdiction over the action and granted Lehman Holdings’ motion to dismiss.

On February 3, 2016, Lehman Holdings filed an adversary proceeding against approximately 150 mortgage loan originators, including SecurityNational Mortgage, in the U.S. Bankruptcy Court of the Southern District of New York seeking a declaration of rights similar in nature to the declaration that SecurityNational Mortgage sought in its Delaware lawsuit, and for damages relating to the alleged obligations of the defendants under indemnification provisions of the alleged agreements, in amounts to be determined at trial, including interest, attorneys’ fees and costs incurred by Lehman Holdings in enforcing the obligations of the defendants. No response was required to be filed relative to the Complaint or the Amended Complaint dated March 7, 2016. A Case Management Order was entered on November 1, 2016.

On December 27, 2016, pursuant to the Case Management Order, Lehman Holdings filed a Second Amended Complaint against SecurityNational Mortgage, which eliminates the declaratory judgment claim but retains a similar claim for damages as in the Complaint. Many of the defendants, including SecurityNational Mortgage, filed a joint motion in the case asserting that the Bankruptcy Court does not have subject matter jurisdiction concerning the matter and that venue is improper. Lehman Holdings’ response memorandum was filed on May 31, 2017 and a reply memorandum of the defendants filing the motion was filed on July 14, 2017. A hearing on the motion was held on June 12, 2018.

On August 13, 2018, the Court issued its Memorandum Decision and Order (“Decision”) denying the motion. On August 27, 2018, a number of the defendants, including SecurityNational Mortgage, filed a joint motion with the United States District Court (Case No. 18-mc-00392(VEC)) requesting that the Bankruptcy Court’s Decision be treated as findings of fact and conclusions of law, and for the District Court to review the Decision de novo as to jurisdiction. Included with the motion were proposed objections to the Bankruptcy Court’s Decision. On September 18, 2018, Lehman Holdings filed its response to the joint motion, and defendants’ reply was filed on October 2, 2018.

On September 17, 2018, certain defendants, including SecurityNational Mortgage, also filed a notice of appeal, and thereafter a motion for leave to file an interlocutory appeal as to the Bankruptcy Court’s Decision pertaining to jurisdiction and improper venue as a “protective” appeal should the District Court decide not to treat the Decision as findings of fact and conclusions of law. Separately, certain other defendants also filed a notice of appeal and motion for leave to file an interlocutory appeal with respect to the Bankruptcy Court’s Decision concerning improper venue. Lehman Holdings filed its response on October 22, 2018, and defendants filed a joint reply to Lehman Holdings’ response on November 26, 2018. The motions to file appeals were consolidated before Valerie Caproni, U.S. District Court Judge, Case No. 18-cv-08986 (VEC). Case No. 18-mc-00392 (VEC) was also before Judge Caproni.

On October 1, 2018, Lehman Holdings filed a motion for leave to file Third Amended Complaints against numerous defendants including SecurityNational Mortgage. In addition to the Fannie Mae and Freddie Mac related loans, the amendments and supplements include additional mortgage loans sold to Lehman Holdings that were packaged for securitization (“RMBS loans”). The RMBS loans had allegedly been sold by defendants to Lehman Bank that, in turn, sold them to Lehman Holdings. The allegations pertaining to the RMBS loans include, e.g., purported breaches of representations and warranties made to the securitization trusts by Lehman Holdings. Lehman Holdings asserts that it made representations and warranties purportedly based in part by representations and warranties made to Lehman Bank by loan originators, including SecurityNational Mortgage.

On May 8, 2019, Judge Caproni issued her Opinion and Order denying the motion for an interlocutory appeal of the bankruptcy court’s ruling relative to jurisdiction and venue. Further, the judge denied the motion for immediate de novo review of the bankruptcy court’s ruling indicating that de novo review can be left for the future.

The alleged RMBS loans in dispute with SecurityNational Mortgage allegedly involve millions of dollars pertaining to approximately 577 mortgage loans in addition to the Fannie Mae and Freddie Mac related loans. Lehman Holdings also moved the Court to simultaneously allow alternative dispute resolution procedures to take place including potential mediation. Over objections, at a hearing on October 29, 2018, the Court granted Lehman Holdings’ motion to amend or supplement its complaints adding the RMBS loans, and also to mandate alternative dispute resolution procedures affecting many defendants, including SecurityNational Mortgage.

Instead of filing a Third Amended Complaint to include the RMBS loans referenced above, Lehman Holdings filed the matter against SecurityNational Mortgage as a new complaint ("RMBS Complaint") (United States Bankruptcy Court, Southern District of New York, Adversary Proceeding 18-01819) pertaining to the approximately 577 RMBS loans, in addition to the Second Amended Complaint already on file. The RMBS Complaint seeks alleged damages relating to obligations under alleged contractual indemnification provisions in an amount to be determined at trial, interest, costs and expenses incurred by LBHI in enforcing alleged obligations, including attorneys' fees and costs and any expert witness fees incurred in litigation; and such other relief as the Court deems just and proper. SecurityNational Mortgage denies any liability to Lehman Holdings and intends to vigorously protect and defend its position.

In response to a Court order, certain defendants referenced in the Second Amended Complaint and the RMBS Complaints negotiated with Lehman Holdings concerning an amended case management order pertaining to certain case procedures and management for both lawsuits including, but not limited to, timing for filing motions and answering the complaints, and provisions concerning discovery such as document production, taking depositions, and use of experts. At a hearing held on March 7, 2019, the Court considered differences of the parties as to the content of an amended case management order, and thereafter signed an amended case management order dated March 13, 2019. SecurityNational Mortgage filed an answer and amended answer in the Fannie Mae and Freddie Mac case, and in the RMBS case. Discovery is in process.

Lehman Holdings sent an Indemnification Alternative Dispute Resolution Notice to SecurityNational Mortgage dated August 1, 2019. SecurityNational Mortgage sent its Statement of Position to Lehman Brothers Holdings dated September 3, 2019 in response to the notice. Thereafter, Lehman Holdings sent its Reply dated October 2, 2019 to SecurityNational Mortgage. On January 9, 2020, SecurityNational Mortgage submitted further information to the mediator. Mediation was set to take place on January 23, 2020 in New York.

On January 15, 2020, SecurityNational Mortgage filed a motion to dismiss Lehman Holdings’ RMBS action in the Bankruptcy Court for lack of subject matter jurisdiction and standing. It was not filed in the Bankruptcy Court but in the United States District Court for the Southern District of New York. The District Court referred the matter to a magistrate judge for general pretrial, which “includes scheduling, discovery, non-dispositive pretrial motions, and settlement,” as well as for “a Report and Recommendation” as to the pending motion. The final disposition of the motion will be with the District Court judge. Lehman Holdings has asked the District Court to transfer the case to one of two other judges allegedly due to related matters. No action has been taken by the District Court on the request.

However, a briefing schedule is in place before the original assigned magistrate judge. Lehman Holdings’ response brief to SecurityNational Mortgage’s motion is due March 6, 2020, and SecurityNational Mortgage’s reply brief is due April 6, 2020. In view of SecurityNational Mortgage’s motion to dismiss, Lehman Holdings requested that the mediation set for January 23, 2020 be adjourned “pending resolution of your [SecurityNational Mortgage] motion by the court.” On January 17, 2020, the mediator adjourned the scheduled mediation without a date.

Non-Cancelable Leases

The Company leases office space and equipment under various non-cancelable agreements. See Note 24 regarding leases.

Other Contingencies and Commitments

The Company has entered into commitments to fund construction and land development loans and has also provided financing for land acquisition and development. As of December 31, 2019, the Company’s commitments were approximately $123,601,000, for these loans of which $90,566,000 had been funded. The Company will advance funds once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees and interest for these loans and the interest rate is generally fixed 5.50% to 8.00% per annum. Maturities range between six and eighteen months.

The Company belongs to a captive insurance group for certain casualty insurance, worker compensation and liability programs. Insurance reserves are maintained relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the insurance liabilities and related reserves, the captive insurance management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required. The estimation process contains uncertainty since captive insurance management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date.

The Company is a defendant in various other legal actions arising from the normal conduct of business. Management believes that none of the actions will have a material effect on the Company’s financial position or results of operations. Based on management’s assessment and legal counsel’s representations concerning the likelihood of unfavorable outcomes, no amounts have been accrued for the above claims in the consolidated financial statements.

The Company is not a party to any other material legal proceedings outside the ordinary course of business or to any other legal proceedings, which, if adversely determined, would have a material adverse effect on its financial condition or results of operations.

11) Retirement Plans

12 Months Ended

Dec. 31, 2019

Notes

11) Retirement Plans

11)Retirement Plans

The Company and its subsidiaries have a noncontributory Employee Stock Ownership Plan (“ESOP”) for all eligible employees. Eligible employees are primarily those with more than one year of service, who work in excess of 1,000 hours per year. Contributions, which may be in cash or stock of the Company, are determined annually by the Board of Directors.

The Company’s contributions are allocated to eligible employees based on the ratio of each eligible employee’s compensation to total compensation for all eligible employees during each year. The Company did not make any contributions for the years ended December 31, 2019 and 2018. On November 25, 2019, the Company distributed a “Notice of Intent to Terminate” the ESOP Plan to all current plan participants. The Company also filed Form 5310 “Application for Determination for Terminating Plan”, with the IRS on December 6, 2019. The Company is awaiting approval of its application from the IRS prior to its final distribution of the ESOP Plan assets to the participants. At December 31, 2019, the ESOP held 495,618 shares of Class A and 307,491 shares of Class C common stock of the Company. All shares held by the ESOP have been allocated to the participating employees and all shares held by the ESOP are considered outstanding for purposes of computing earnings per share.

The Company has three 401(k) savings plans covering all eligible employees, as defined above, which includes employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plans allow participants to make pretax contributions up to a maximum of $19,000 and $18,500 for the years 2019 and 2018, respectively or the statutory limits.

Beginning January 1, 2008, the Company elected to be a “Safe Harbor” Plan for its matching 401(k) contributions. The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation. The match was in Company stock. The Company’s contribution for the years ended December 31, 2019 and 2018 was $695,560 and $1,480,913, respectively under the “Safe Harbor” plan.

In 2001, the Company’s Board of Directors adopted a Non-Qualified Deferred Compensation Plan, and this plan was amended in 2005. Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan. The Company may contribute into the plan at the discretion of the Company’s Board of Directors. The Company did not make any contributions for 2019 and 2018.

Effective December 4, 2018, the Board members approved a motion to extend Mr. Quist’s employment agreement, dated December 4, 2012, for an additional four-year term ending December 2022. In the event of disability, Mr. Quist’s salary would be continued for up to five years at 75% of its current level of compensation.

In the event of a sale or merger of the Company and Mr. Quist is not retained in his current position, the Company would be obligated to continue paying Mr. Quist’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that Mr. Quist is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current level of compensation. In the event that Mr. Quist dies prior to receiving all retirement benefits thereunder, the remaining benefits are to be paid to his heirs. The Company expensed $660,000 and $660,000 during the years ended December 31, 2019 and 2018, respectively, to cover the present value of anticipated retirement benefits under the employment agreement. The liability accrued was $5,722,837 and $5,191,670 as of December 31, 2019 and 2018, respectively.

The Company, through its wholly owned subsidiary, SecurityNational Mortgage, also has an employment agreement with its former Vice President of Mortgage Operations and President of SecurityNational Mortgage, who retired from the Company on December 31, 2015. Under the terms of the employment agreement, this individual is entitled to receive retirement benefits from the Company for a period of ten years in an amount equal to 50% of his rate of compensation at the time of his retirement, which was $267,685 for the year ended December 31, 2015. Such retirement payments are paid monthly during the ten-year period. In the event that this individual dies prior to receiving all of his retirement benefits under his employment agreement, the remaining benefits will be made to his heirs. The company paid $133,843 and $133,843 in retirement compensation to this individual during the years ended December 31, 2019 and 2018, respectively. The liability accrued was $803,055 and $841,591 as of December 31, 2019 and 2018, respectively and is included in Other liabilities and accrued expenses on the consolidated balance sheets.

- Definition

The entire disclosure for retirement benefits.

+ References

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-Name Accounting Standards Codification
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+ Details

12) Capital Stock

12 Months Ended

Dec. 31, 2019

Notes

12) Capital Stock

12)Capital Stock

The Company has one class of preferred stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. The preferred stock is non-voting.

The Company has two classes of common stock with shares outstanding, Class A common shares and Class C common shares. Class C shares have 10 votes per share on all matters except for the election of one third of the directors who are elected solely by the Class A shares. Class C shares are convertible into Class A shares at any time on a one to one ratio. The decrease in treasury stock was the result of treasury stock being used to fund the company’s 401(k) Plans.

Stockholders of both Class A and Class C common stock have received 5% stock dividends in the years 1990 through 2019, as authorized by the Company’s Board of Directors.

The Company has Class B common stock of $1.00 par value, 5,000,000 shares authorized, of which none are issued. Class B shares are non-voting stock except to any proposed amendment to the Articles of Incorporation which would affect Class B common stock.

The following table summarizes the activity in shares of capital stock for the two-year period ended December 31, 2019:

	Class A	Class C
Outstanding shares at December 31, 2017	14,535,577	2,089,374

Exercise of stock options	38,473	-
Stock dividends	730,560	104,457
Conversion of Class C to Class A	188	(188)

Outstanding shares at December 31, 2018	15,304,798	2,193,643

Exercise of stock options	32,517	191,443
Stock dividends	767,178	119,087
Conversion of Class C to Class A	3,286	(3,286)

Outstanding shares at December 31, 2019	16,107,779	2,500,887

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with GAAP, the basic and diluted earnings per share amounts were calculated as follows:

	2019	2018
Numerator:
Net earnings	$ 10,893,519	$ 21,686,079

Denominator:
Denominator for basic earnings
per share-weighted-average shares	18,104,681	17,968,062

Effect of dilutive securities
Employee stock options	124,435	220,603
Dilutive potential common shares	124,435	220,603

Denominator for diluted earnings
per share-adjusted weighted-average
shares and assumed conversions	18,229,116	18,188,665

Basic earnings per share	$0.60	$1.21
Diluted earnings per share	$0.60	$1.19

For the years ended December 31, 2019 and 2018, there were 382,289 and 862,915 of anti-dilutive employee stock option shares, respectively, that were not included in the computation of diluted net earnings per common share as their effect would be anti-dilutive.

13) Stock Compensation Plans

12 Months Ended

Dec. 31, 2019

Notes

13) Stock Compensation Plans

13)Stock Compensation Plans

The Company has two fixed option plans (the “2013 Plan” and the “2014 Director Plan”). Compensation expense for options issued of $256,996 and $237,123 has been recognized under these plans for the years ended December 31, 2019 and 2018, respectively, and is included in personnel expenses on the consolidated statements of earnings. As of December 31, 2019, the total unrecognized compensation expense related to the options issued in December 2019 was $230,446, which is expected to be recognized over the vesting period of one year.

The fair value of each option granted is estimated on the date of grant using the Black Scholes Option Pricing Model. The Company estimates the expected life of the options using the simplified method. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock over a period equal to the expected life of the options. The risk-free interest rate for the expected life of the options is based upon the Federal Reserve Board’s daily interest rates in effect at the time of the grant.

The following table summarizes the assumptions used in estimating the fair value of each option granted along with the weighted-average fair value of the options granted:

			Assumptions
Grant Date	Plan	Weighted-Average Fair Value of Each Option	Expected Dividend Yield	Underlying stock FMV	Weighted-Average Volatility	Weighted-Average Risk-Free Interest Rate	Weighted-Average Expected Life (years)
December 6, 2019	All Plans	$ 0.96	5%	$ 5.19	32.79%	1.64%	4.83

January 17, 2019	All Plans	$ 1.12	5%	$ 4.98	36.04%	2.56%	5.31

November 30, 2018	All Plans	$ 1.12	5%	$ 4.91	34.61%	2.86%	4.56

Activity of the stock option plans is summarized as follows:

	Number ofClass A Shares	Weighted Average Exercise Price	Number ofClass C Shares	Weighted Average Exercise Price
Outstanding at January 1, 2018	880,426	$ 4.35	523,603	$ 5.24
Adjustment for the effect of stock dividends	48,168		27,491
Granted	142,000		90,000
Exercised	(42,211)		-
Cancelled	(17,109)		(63,814)

Outstanding at December 31, 2018	1,011,274	$ 4.49	577,280	$ 5.15
Adjustment for the effect of stock dividends	51,018		28,295
Granted	81,000		180,000
Exercised	(45,834)		(191,443)
Cancelled	(11,405)		-

Outstanding at December 31, 2019	1,086,053	$ 4.41	594,132	$ 5.36

Exercisable at end of year	1,002,603	$ 4.34	405,132	$ 5.40

Available options for future grant	205,664		-

Weighted average contractual term of options
outstanding at December 31, 2019	5.62 years		5.82 years

Weighted average contractual term of options
exercisable at December 31, 2019	5.26 years		4.54 years

Aggregated intrinsic value of options outstanding
at December 31, 2019 (1)	$1,291,602		$2,177,223

Aggregated intrinsic value of options exercisable
at December 31, 2019 (1)	$1,259,786		$159,028

(1) The Company used a stock price of $5.57 as of December 31, 2019 to derive intrinsic value.

The total intrinsic value (which is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date) of stock options exercised during the years ended December 31, 2019 and 2018 was $271,220 and $123,154, respectively.

14) Statutory Financial Information and Dividend Limitations

12 Months Ended

Dec. 31, 2019

Notes

14) Statutory Financial Information and Dividend Limitations

14)Statutory Financial Information and Dividend Limitations

The Company’s insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed.

All states require domiciled insurance companies to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis.

Statutory net income and capital and surplus of the Company’s insurance subsidiaries, determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities are as follows:

	Statutory Net Income			Statutory Capital and Surplus
	2019		2018	2019	2018
Amounts by insurance subsidiary:
Security National Life Insurance Company	$ 3,589,552		$17,963,528	$ 49,390,181	$ 47,184,064
Kilpatrick Life Insurance Company	12,752,100	(1)	-	15,208,071	-
First Guaranty Insurance Company	1,078,733		1,042,683	6,352,670	5,786,369
Memorial Insurance Company of America	(107)		94	1,088,559	1,088,880
Southern Security Life Insurance Company, Inc.	87		68	1,588,396	1,586,915
Trans-Western Life Insurance Company	3,773		5,460	512,163	508,390
Total	$ 17,424,138		$19,011,833	$ 74,140,040	$ 56,154,618

(1) Includes 12 months even though Kilpatrick Life Insurance Company wasn't acquired by the Company until December 2019.

The Utah, Arkansas, Louisiana, Mississippi and Texas Insurance Departments impose minimum risk-based capital (RBC) requirements that were developed by the NAIC on insurance enterprises. The formulas for determining the RBC specify various factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio (the Ratio) of the enterprise’s regulatory total adjusted capital, as defined by the NAIC, to its authorized control level, as defined by the NAIC. Enterprises below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The life insurance subsidiaries each have a ratio that is greater than the first level of regulatory action as of December 31, 2019.

Generally, the net assets of the life insurance subsidiaries available for transfer to the Company are limited to the amounts of the life insurance subsidiaries net assets, as determined in accordance with statutory accounting practices, that exceed minimum statutory capital requirements. Additional requirements must be met depending on the state, and payments of such amounts as dividends are subject to approval by regulatory authorities.

Under the Utah Insurance Code, Security National Life Insurance Company is permitted to pay a stockholder dividend to the Company as long as the Company provides the Utah Insurance Commissioner (the “Utah Commissioner”) with at least 30 days notice and the aggregate amount of all such dividends in any 12 month period does not exceed the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) net gain from operations, not including realized capital gains, for the immediately preceding calendar year, not including pro rata distributions of the Company’s own securities. In determining whether a dividend is extraordinary, the Company may include carryforward net income from the previous two calendar years, excluding realized capital gains less dividends paid in the second and immediately preceding calendar years. Security National Life Insurance Company will be permitted to pay a dividend to the Company in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the Utah Commissioner and the Utah Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In all cases, a dividend may not be paid that would reduce the insurer’s total adjusted capital below the insurer’s company action level risk-based capital, as defined for statutory reporting purposes. Amounts available to be paid as dividends in the next 12 months totals approximately $4,795,000.

Under the Louisiana Insurance Code, First Guaranty Insurance Company and Kilpatrick Life Insurance Company are permitted to pay a stockholder dividend to Security National Life as long as their capital has been (i) fully paid in cash, (ii) is unimpaired, (iii) has a surplus beyond its capital stock and (iv) has a surplus beyond its minimum required surplus. In 2018, First Guaranty Insurance Company paid to Security National Life a cash dividend of $500,000 and Kilpatrick Life Insurance Company paid a cash dividend of $3,000,000. Amounts available to be paid as dividends at December 31, 2019 totaled approximately $2,453,000 for First Guaranty Insurance Company and totaled approximately $11,508,000 for Kilpatrick Life Insurance Company.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

15) Business Segment Information

12 Months Ended

Dec. 31, 2019

Notes

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.

	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

	2018
	Life	Cemetery/		Intercompany
	Insurance	Mortuary	Mortgage	Eliminations	Consolidated
Revenues:
From external sources:
Revenue from customers	$ 75,928,910	$ 13,726,518	$ 116,185,853	$ -	$ 205,841,281
Net investment income	38,720,365	283,343	909,559	-	39,913,267
Gains on investments and other assets	21,396,282	2,301,342	243,555	-	23,941,179
Other revenues	1,636,901	128,797	8,157,302	-	9,923,000
Intersegment revenues:
Net investment income	3,972,532	429,312	503,794	(4,905,638)	-
Total revenues	141,654,990	16,869,312	126,000,063	(4,905,638)	279,618,727
Expenses:
Death, surrenders and other policy benefits	39,185,087	-	-	-	39,185,087
Increase in future policy benefits	24,332,088	-	-	-	24,332,088
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	11,270,579	360,767	-	-	11,631,346
Selling, general and administrative expenses:
Commissions	3,242,745	1,222,642	45,825,965	-	50,291,352
Personnel	18,489,063	4,773,866	44,106,023	-	67,368,952
Advertising	566,154	333,852	3,702,585	-	4,602,591
Rent and rent related	321,701	33,138	7,250,536	-	7,605,375
Depreciation on property and equipment	400,686	372,469	1,093,846	-	1,867,001
Cost related to funding mortgage loans	-	-	6,423,944	-	6,423,944
Intersegment	402,213	182,009	531,370	(1,115,592)	-
Other	10,094,626	3,046,902	17,873,471	-	31,014,999
Interest expense:
Intersegment	481,587	173,807	3,134,652	(3,790,046)	-
Other	2,744,841	294,535	3,917,331	-	6,956,707
Costs of goods and services sold-mortuaries and cemeteries	-	2,158,895	-	-	2,158,895
Total benefits and expenses	111,531,370	12,952,882	133,859,723	(4,905,638)	253,438,337
Earnings before income taxes	$ 30,123,620	$ 3,916,430	$ (7,859,660)	$ -	$ 26,180,390
Income tax benefit (expense)	(5,275,662)	(946,820)	1,728,171	-	(4,494,311)
Net earnings	$ 24,847,958	$ 2,969,610	$ (6,131,489)	$ -	$ 21,686,079

Identifiable assets	$ 928,251,387	$ 90,639,130	$ 159,680,649	$ (130,525,613)	$ 1,048,045,553

Goodwill	$ 2,765,570	$ -	$ -	$ -	$ 2,765,570

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

16) Related Party Transactions

12 Months Ended

Dec. 31, 2019

Notes

16) Related Party Transactions

16)Related Party Transactions

The Company’s Board of Directors has a written procedure, which requires disclosure to the Board of any material interest or any affiliation on the part of any of its officers, directors or employees that is in conflict or may be in conflict with the interests of the Company. The Company and its Board of Directors is unaware of any related party transactions that require disclosure as of December 31, 2019.

17) Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2019

Notes

17) Fair Value of Financial Instruments

17)Fair Value of Financial Instruments

GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. Fair value measurements are classified under the following hierarchy:

Level 1:Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Financial assets and financial liabilities whose values are based on the following:

a) Quoted prices for similar assets or liabilities in active markets;

b) Quoted prices for identical or similar assets or liabilities in non-active markets; or

c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3:Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect the Company’s estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities.

The Company utilizes a combination of third-party valuation service providers, brokers, and internal valuation models to determine fair value.

The following methods and assumptions were used by the Company in estimating the fair value disclosures related to significant financial instruments:

The items shown under Level 1 and Level 2 are valued as follows:

Fixed Maturity Securities Available for Sale: The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements (considered Level 3 investments), are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments.

Equity Securities: The fair values for equity securities are based on quoted market prices.

Loans Held for Sale: The Company elected the fair value option for loans held for sale. The fair value is based on quoted market prices, when available. When a quoted market price is not readily available, the Company uses the market price from its last sale of similar assets.

Restricted Assets: A portion of these assets include mutual funds, equity securities and fixed maturity securities that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents and participations in mortgage loans. The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature.

Cemetery Perpetual Care Trust Investments: A portion of these assets include equity securities and fixed maturity securities that have quoted market prices that are used to determine fair value. Also included are cash and cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to their short-term nature

Loan Commitments and Forward Sale Commitments: The Company’s mortgage segment enters into loan commitments with potential borrowers and forward sale commitments to sell loans to third-party investors. The Company also uses a hedging strategy for these transactions. A loan commitment binds the Company to lend funds to a qualified borrower at a specified interest rate and within a specified period of time, generally up to 30 days after issuance of the loan commitment. Loan commitments are defined to be derivatives under GAAP and are recognized at fair value on the consolidated balance sheets with changes in their fair values recorded in current earnings.

The Company estimates the fair value of a loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted MBS prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the loan commitment is issued. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will fund within the terms of the commitments.

Call and Put Options: The Company uses quoted market prices to value its call and put options.

Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy.

The items shown under Level 3 are valued as follows:

Impaired Mortgage Loans Held for Investment: The Company believes that the fair value of these nonperforming loans will approximate the unpaid principal balance expected to be recovered based on the fair value of the underlying collateral. For residential and commercial properties, the collateral value is estimated by obtaining an independent appraisal. The appraisal typically considers area comparables and property condition as well as potential rental income that could be generated (particularly for commercial properties). For residential construction loans, the collateral is typically incomplete, so fair value is estimated as the replacement cost using data from a provider of building cost information to the real estate construction.

Impaired Real Estate Held for Investment: The Company believes that in an orderly market, fair value will approximate the replacement cost of a home and the rental income provides a cash flow stream for investment analysis. The Company believes the highest and best use of the properties are as income producing assets since it is the Company’s intent to hold the properties as rental properties, matching the income from the investment in rental properties with the funds required for future estimated policy claims.

It should be noted that for replacement cost, when determining the fair value of real estate held for investment, the Company uses a provider of building cost information to the real estate construction industry. For the investment analysis, the Company used market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company also considers area comparables and property condition when determining fair value.

In addition to this analysis performed by the Company, the Company depreciates Real Estate Held for Investment. This depreciation reduces the book value of these properties and lessens the exposure to the Company from further deterioration in real estate values.

Mortgage Servicing Rights: The Company initially recognizes MSRs at their estimated fair values derived from the net cash flows associated with the servicing contracts, where the Company assumes the obligation to service the loan in the sale transaction.

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

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

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	-	(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

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

	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
Equity securities	$ 5,558,611	$ 5,558,611	$ -	$ -
Loans held for sale	136,210,853	-	-	136,210,853
Restricted assets (1)	744,673	744,673	-	-
Cemetery perpetual care trust investments (1)	483,353	483,353	-	-
Derivatives - loan commitments (2)	1,969,967	-	-	1,969,967
Total assets accounted for at fair value on a recurring basis	$ 144,967,457	$ 6,786,637	$ -	$ 138,180,820

Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (3)	$ (4,629)	$ (4,629)	$ -	$ -
Derivatives - put options (3)	(296,053)	(296,053)	-	-
Derivatives - loan commitments (3)	(378,151)	-	-	(378,151)
Total liabilities accounted for at fair value on a recurring basis	$ (678,833)	$ (300,682)	$ -	$ (378,151)

(1) Mutual funds and equity securities
(2) Included in other assets on the consolidated balance sheets
(3) Included in other liabilities and accrued expenses on the consolidated balance sheets

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

Balance - December 31, 2017	$ 1,996,589	$ 133,414,188
Originations		2,194,607,543
Sales		(2,259,145,473)
Transfer to mortgage loans held for investment		(10,827,797)
Total gains (losses):
Included in earnings (1)	(404,773)	78,162,392

Balance - December 31, 2018	$ 1,591,816	$ 136,210,853

(1) As a component of mortgage fee income on the consolidated statements of earnings

	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	$ 1,253,302	$ -	$ -	$ 1,253,302
Impaired real estate held for investment	1,611,384	-	-	1,611,384
Total assets accounted for at fair value on a nonrecurring basis	$ 2,864,686	$ -	$ -	$ 2,864,686

Fair Value of Financial Instruments Carried at Other Than Fair Value

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 and 2018.

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

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, 2018:

	Carrying Value	Level 1	Level 2	Level 3	Total Estimated Fair Value
Assets
Fixed maturity securities, held to maturity	$ 232,078,723	$ -	$ 229,668,844	$ 5,082,014	$ 234,750,858
Mortgage loans held for investment
Residential	87,947,566	-	-	92,503,553	92,503,553
Residential construction	70,886,702	-	-	70,886,702	70,886,702
Commercial	27,630,801	-	-	28,359,205	28,359,205
Mortgage loans held for investment, net	$ 186,465,069	$ -	$ -	$ 191,749,460	$ 191,749,460
Policy loans	6,424,325	-	-	6,424,325	6,424,325
Insurance assignments, net (1)	34,146,868	-	-	34,168,868	34,168,868
Restricted assets (2)	1,258,397	-	1,271,687	-	1,271,687
Restricted assets (3)	1,799,268	-	-	1,810,185	1,810,185
Cemetery perpetual care trust investments (2)	990,390	-	983,410	-	983,410
Mortgage servicing rights, net	20,016,822	-	-	28,885,316	28,885,316

Liabilities
Bank and other loans payable	$ (187,521,188)	$ -	$ -	$ (187,521,188)	$ (187,521,188)
Policyholder account balances (4)	(46,479,853)	-	-	(37,348,289)	(37,348,289)
Future policy benefits - annuities (4)	(98,137,615)	-	-	(97,641,146)	(97,641,146)

(1) Included in other investments and policy loans on the consolidated balance sheets
(2) Fixed maturity securities held to maturity
(3) Participation in mortgage loans held for investment
(4) Included in future policy benefits and unpaid claims on the consolidated balance sheets

The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows:

Fixed Maturity Securities Held to Maturity: The fair values of fixed maturity securities are based on quoted market prices, when available. For fixed maturity securities not actively traded, fair values are estimated using values obtained from independent pricing services, or in the case of private placements, are estimated by discounting expected future cash flows using a current market value applicable to the coupon rate, credit and maturity of the investments.

Mortgage Loans Held for Investment: The estimated fair value of the Company’s mortgage loans held for investment is determined using various methods. The Company’s mortgage loans are grouped into three categories: Residential, Residential Construction and Commercial. When estimating the expected future cash flows, it is assumed that all loans will be held to maturity, and any loans that are non-performing are evaluated individually for impairment.

Residential – The estimated fair value of mortgage loans is determined through a combination of discounted cash flows (estimating expected future cash flows of interest payments and discounting them using current interest rates from single family mortgages) and considering pricing of similar loans that were sold recently.

Residential Construction – These loans are primarily short in maturity. Accordingly, the estimated fair value is determined to be the carrying value.

Commercial – The estimated fair value is determined by estimating expected future cash flows of interest payments and discounting them using current interest rates for commercial mortgages.

Policy Loans: The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values because they are fully collateralized by the cash surrender value of the underlying insurance policies.

Insurance Assignments, Net: These investments are short in maturity. Accordingly, the carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values.

Bank and Other Loans Payable: The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values due to their relatively short-term maturities and variable interest rates.

Policyholder Account Balances and Future Policy Benefits-Annuities: Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 1.5% to 6.5%. The fair values for these investment-type insurance contracts are estimated based on the present value of liability cash flows.

The fair values for the Company’s insurance contracts other than investment-type contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

18) Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

Notes

18) Accumulated Other Comprehensive Income

18)Accumulated Other Comprehensive Income

The following summarizes the changes in accumulated other comprehensive income:

	December 31
	2019	2018
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) for equity securities	$ -	$ (603,170)

Unrealized gains on fixed maturity securities available for sale	17,315,770	-
Reclassification adjustment for net realized gains in net income	-	-
Net unrealized gains before taxes	17,315,770	-
Tax expense	(3,636,311)	-
Net	13,679,459	-
Unrealized gains on restricted assets (1)	35,550	-
Tax expense	(8,856)	-
Net	26,694	-
Unrealized gains on cemetery perpetual care trust investments (1)	29,904	-
Tax expense	(7,449)	-
Net	22,455	-
Unrealized gains for foreign currency translations adjustments	972	(3,761)
Tax expense	(243)	938
Net	729	(2,823)
Other comprehensive income changes	$ 13,729,337	$ (605,993)
_______________
(1) Fixed maturity securities available for sale

The following is the accumulated balances of other comprehensive income as of December 31, 2019:

	Beginning Balance December 31, 2018	Change for the period	Ending Balance December 31,2019
Unrealized gains on fixed maturity securities available for sale	$ -	$ 13,679,459	$ 13,679,459
Unrealized gains on restricted assets (1)	-	26,694	26,694
Unrealized gains on cemetery perpetual care trust investments (1)	-	22,455	22,455
Foreign currency translation adjustments	(2,823)	729	(2,094)
Other comprehensive income (loss)	$ (2,823)	$ 13,729,337	$ 13,726,514

(1) Fixed maturity securities available for sale

The following is the accumulated balances of other comprehensive income as of December 31, 2018:

	Beginning Balance December 31, 2017	Change for the period		Ending Balance December 31,2018
Unrealized gains on equity securities, restricted assets and cemetery perpetual care trust investments	$ 603,170	$ (603,170)	(1)	$ -
Foreign currency translation adjustments	-	(2,823)		(2,823)
Other comprehensive income (loss)	$ 603,170	$ (605,993)		$ (2,823)

(1) Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)

19) Derivative Instruments

12 Months Ended

Dec. 31, 2019

Notes

19) Derivative Instruments

19)Derivative Instruments

The following table shows the fair value and notional amounts of derivative instruments as of December 31, 2019 and 2018.

	Fair Values and Notional Amounts of Derivative Instruments
		December 31, 2019			December 31, 2018
	Balance Sheet Location	Notional Amount	Asset Fair Value	Liability Fair Value	Notional Amount	Asset Fair Value	Liability Fair Value
Derivatives not designated as hedging instruments:
Loan commitments	Other assets and Other liabilities	$224,202,514	$2,722,580	$231,347	$ 93,758,218	$1,969,967	$378,151
Call options	Other liabilities	1,813,500	--	62,265	805,500	--	4,629
Put options	Other liabilities	1,573,100	--	22,282	4,861,700	--	296,053
Total		$225,326,654	$2,722,580	$315,894	$ 99,425,418	$1,969,967	$678,833

The following table shows the gain (loss) on derivatives for the periods presented. There were no gains or losses reclassified from accumulated other comprehensive income into income or gains or losses recognized in income on derivatives ineffective portion or any amounts excluded from effective testing.

		Net Amount Gain (Loss)
		Years ended December 31
Derivative	Classification	2019	2018
Loan commitments	Mortgage fee income	$ 899,417	$ (404,773)

Call and put options	Gains on investments and other assets	$ 626,208	$ 187,786

20) Acquisitions

12 Months Ended

Dec. 31, 2019

Notes

20) Acquisitions

20)Acquisitions

Kilpatrick Life Insurance Company

On December 13, 2019, the Company, through its wholly owned subsidiary, Security National Life Insurance Company (“Security National Life”) completed a stock purchase transaction with Kilpatrick Life Insurance Company, a Louisiana domiciled life insurance company (“Kilpatrick Life”) and its shareholders, which resulted in the purchase of all the outstanding shares of common stock of Kilpatrick Life. The closing of the transaction was subject to approval by the Louisiana Department of Insurance of the change of control of Kilpatrick Life, which was received on December 12, 2019. Under the terms of the transaction, the total Purchase Price that Security National Life paid for all the shares held by the Kilpatrick shareholders was $23,779,940 subject to a $1,400,000 holdback, as agreed with the shareholders.

Kilpatrick Life has been in operation since 1932 and provides life insurance products and services through insurance plans such as permanent and term life insurance, asset protection plans, graded whole life insurance, and annuities. Additionally, it provides insurance services for emergencies and pre‐arranged funeral services. Kilpatrick Life is based in Shreveport, Louisiana with additional offices in Jena, Alexandria, Minden, and Arcadia, Louisiana.

Kilpatrick Life employs a staff of almost 120 associates in four offices in Louisiana and is licensed to operate in Louisiana, Texas, Arkansas, Oklahoma, and Mississippi with the home office located in Shreveport, LA. It is the mission of Kilpatrick Life to continue providing the utmost service and protection for its policyholders for generations to come.

Prior to the stock purchase transaction, Security National life and Kilpatrick Life entered into a coinsurance agreement, effective October 1, 2019. After the effective date, Security National Life, as coinsurer, agreed to be responsible for and was obligated with respect to 100% of the contractual liabilities under the Kilpatrick Life’s life insurance policies in accordance with the terms and conditions of the policies and applicable law. Unless otherwise directed by Security National Life, as coinsurer, Kilpatrick Life continued to administer the policies on behalf of Security National Life, as coinsurer, for the duration of the coinsurance agreement.

As part of the coinsurance agreement, effective October 1, 2019, Security National Life acquired the following assets and assumed the following contractual liabilities.

Other investments and policy loans	$ 9,124,459
Real estate held for investment	2,850,000
Mortgage loans held for investment	200,000
Receivables	131,258
Total assets acquired	12,305,717

Future policy benefits and unpaid claims	(165,404,970)
Other liabilities and accrued expenses	(5,259,341)
Total liabilities assumed	(170,664,311)
Cash received for reinsurance assumed	$ 158,358,594

Contemporaneous with the stock purchase transaction, both Kilpatrick Life and Security National Life, as coinsurer, agreed terminate the coinsurance agreement, to require the recapture of the life insurance policies by Kilpatrick Life and provided notification to the Louisiana Department of Insurance. The final settlement and transfer of the coinsurance trust assets from Security National Life back to Kilpatrick Life occurred shortly thereafter.

The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition, on December 13, 2019, are shown in the following table. At the time of acquisition some of these assets and liabilities became intercompany items, and the Company has eliminated them for consolidation.

Fixed maturity securities, available for sale	$ 22,766,520
Fixed maturity securities, held to maturity	16,436
Mortgage loans held for investment	8,011,660
Real estate held for investment	2,708,557
Other investments	446,655
Accrued investment income	183,527
Total investments	34,133,355

Cash and cash equivalents	6,900,654
Receivables, net	5,407,736	(1)
Receivables from reinsurers	168,105,064	(1)
Property and equipment, net	1,498,245
Value of business acquired	4,962,831
Deferred taxes	167,344
Other	712,323
Total assets acquired	221,887,552

Future policy benefits and unpaid claims	(189,071,407)
Accounts payable	(283,304)
Other liabilities and accrued expenses	(7,870,944)
Income taxes	(881,957)
Total liabilities assumed	(198,107,612)
Fair value of net assets acquired/consideration paid	$ 23,779,940

Fair value of net assets acquired/consideration paid, net of cash acquired	$ 16,879,286


(1) Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life.

Kilpatrick Life’s revenues and net loss since the date of acquisition were $1,461,011 and $848,031, respectively.

Probst Family Funerals and Cremations and Heber Valley Funeral Home

On February 15, 2019, the Company, through its wholly-owned subsidiary, Memorial Mortuary Inc., completed an asset purchase transaction with Probst Family Funerals and Cremations, LLC. (“Probst Family Funerals”) and Heber Valley Funeral Home, Inc. (“Heber Valley Funeral Home”). These funeral homes are both located in Heber Valley, a community situated about 45 miles southeast of Salt Lake City.

Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated February 15, 2019, Memorial Mortuary Inc. paid a net purchase price of $3,315,647 for the business and assets of Probst Family Funerals and Heber Valley Funeral Home, subject to a $150,000 holdback. In August 2019, this escrow account was settled and $137,550 was paid to the prior owners.

The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows:

Cash	$ 53,859
Property and equipment	2,475,526
Receivables	13,620
Goodwill	754,018
Other	21,800
Total assets acquired	3,318,823

Bank and other loans payable	(3,176)
Total liabilities assumed	(3,176)
Fair value of net assets acquired/consideration paid	$ 3,315,647

Fair value of net assets acquired/consideration paid, net of cash acquired	$ 3,261,788

Probst Family Funerals and Heber Valley Funeral Home’s revenues and net earnings since the date of acquisition were $796,992 and $97,400, respectively.

Beta Capital Corp.

On June 1, 2018, the Company completed a stock purchase transaction with Beta Capital Corp. ("Beta Capital") and Ronald D. Maxson ("Maxson"), the sole owner of all the outstanding shares of common stock of Beta Capital, to purchase all of the outstanding shares of common stock of Beta Capital. Beta Capital is engaged in the operation of a factoring business with the principal purpose of providing funding for funeral homes and mortuaries.

Under the terms of the transaction, as set forth in the Stock Purchase Agreement, dated June 1, 2018, by and among the Company, Beta Capital and Maxson, the Company paid Maxson the purchase consideration at the closing of the transaction equal to the sum of (i) $890,000 in cash plus (ii) the accounts receivable value of $2,515,783, representing the total amount of the Company's outstanding receivables as of the closing date of June 1, 2018, for a total closing payment of $3,405,783. From the $3,405,783 closing payment, a holdback amount equal to $175,000 was deposited into an interest bearing escrow account. In November 2019, this escrow account was settled and $169,190 was paid to the prior owner.

The estimated fair values of the assets acquired at the date of acquisition were as follows:

Other investments - insurance assignments	$ 2,515,783
Other - customer list intangible asset	890,000
Total assets acquired	3,405,783
Fair value of net assets acquired/consideration paid	$ 3,405,783

21) Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2019

Notes

21) Mortgage Servicing Rights

21)Mortgage Servicing Rights

The Company reports MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table presents the MSR activity for the periods presented.

	December 31
	2019	2018
Amortized cost:
Balance before valuation allowance at beginning of year	$ 20,016,822	$ 21,376,937
MSR additions resulting from loan sales	4,194,502	3,922,816
Amortization (1)	(7,055,795)	(5,282,931)
Application of valuation allowance to write down MSRs with other than temporary impairment	-	-
Balance before valuation allowance at year end	$ 17,155,529	$ 20,016,822

Valuation allowance for impairment of MSRs:
Balance at beginning of year	$ -	$ -
Additions	-	-
Application of valuation allowance to write down MSRs with other than temporary impairment	-	-
Balance at year end	$ -	$ -

Mortgage servicing rights, net	$ 17,155,529	$ 20,016,822

Estimated fair value of MSRs at year end	$ 22,784,571	$ 28,885,316

(1) Included in other expenses on the consolidated statements of earnings

The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2019 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management.

		Estimated MSR Amortization
2020		$ 2,999,452
2021		2,376,277
2022		1,971,249
2023		1,631,010
2024		1,359,492
Thereafter		6,818,049
Total		$ 17,155,529

During the years ended December 31, 2019 and 2018, the Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings:

	2019	2018
Contractual servicing fees	$ 7,212,164	$ 7,561,226
Late fees	365,477	319,244
Total	$ 7,577,641	$ 7,880,470

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented:

	Years Ended December 31
	2019	2018
Servicing UPB	$ 2,804,139,415	$ 2,941,231,563

The following key assumptions were used in determining MSR value:

	PrepaymentSpeeds	AverageLife(Years)	DiscountRate
December 31, 2019	15.30	5.27	9.51
December 31, 2018	11.70	6.33	9.51

22) Future Policy Benefits and Unpaid Claims

12 Months Ended

Dec. 31, 2019

Notes

22) Future Policy Benefits and Unpaid Claims

22)Future Policy Benefits and Unpaid Claims

The Company reports future policy benefits and unpaid claims pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

The following table provides information regarding future policy benefits and unpaid claims and the related receivable from reinsurers.

	Years Ended September 30
	2019	2018
Life	$ 654,585,723	$466,232,621
Annuities	113,579,831	98,137,615
Policyholder account balances	45,154,180	46,479,853
Accident and health	667,428	482,693
Other policyholder funds	4,530,227	4,431,296
Reported but unpaid claims	4,891,922	3,365,872
Incurred but not reported claims	2,191,607	1,269,764

Gross future policy benefits and unpaid claims	$ 825,600,918	$620,399,714

Receivable from reinsurers

Life	11,040,398	6,702,328
Annuities	4,038,007	4,078,666
Accident and health	90,113	-
Reported but unpaid claims	569,250	33,108
Incurred but not reported claims	10,000	6,000

Total receivable from reinsurers	15,747,768	10,820,102

Net future policy benefits and unpaid claims	$ 809,853,150	$609,579,612

23) Revenues From Contracts With Customers

12 Months Ended

Dec. 31, 2019

Notes

23) Revenues From Contracts With Customers

23) Revenues from Contracts with Customers

The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers.

Contracts with Customers

Information about Performance Obligations and Contract Balances

The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The total contract liability for future obligations is included in deferred pre-need cemetery and mortuary contract revenues on the consolidated balance sheets and, as of December 31, 2019 and 2018, the balances were $12,607,978 and 12,508,625, respectively.

The Company’s three types of future obligations are as follows:

Pre-need Merchandise and Service Revenue: All pre-need merchandise and service revenue is deferred and the funds are placed in trust until the need arises, the merchandise is received or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. As of December 31, 2019 and 2018, the balances were $12,325,437 and $12,175,943, respectively.

At-need Specialty Merchandise Revenue: At-need specialty merchandise revenue consists of customizable merchandise ordered from a manufacturer such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received. As of December 31, 2019 and 2018, the balances were $282,541 and $327,302, respectively. Deferred revenue for at-need specialty revenue is not placed in trust.

Deferred Pre-need Land Revenue: Deferred pre-need revenue and corresponding commissions are deferred until 10% of the funds are received from the customer through regular monthly payments. As of December 31, 2019 and 2018, the balances were $-0- and $5,380, respectively. Deferred pre-need land revenue is not placed in trust.

Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. A transfer of goods and services does not fulfill an obligation and revenue remains deferred.

The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows:

	Contract Balances
	Receivables (1)	Contract Asset	Contract Liability
Opening (1/1/2019)	$ 2,816,225	$ -	$ 12,508,625
Closing (12/31/2019)	2,778,879	-	12,607,978
Increase/(decrease)	(37,346)	-	99,353

	Contract Balances
	Receivables (1)	Contract Asset	Contract Liability
Opening (1/1/2018)	$ 3,608,379	$ -	$ 12,873,068
Closing (12/31/2018)	2,816,225	-	12,508,625
Increase/(decrease)	(792,154)	-	(364,443)

(1) Included in Receivables, net on the consolidated balance sheets

The following table disaggregates the opening and closing balances of the Company’s contract balances.

	Contract Balances
	Contract Asset	Contract Liability
Pre-need merchandise and services	$ -	$ 12,175,943
At-need specialty merchandise	-	327,302
Pre-need land sales	-	5,380
Opening (1/1/2019)	$ -	$ 12,508,625

Pre-need merchandise and services	$ -	$ 12,325,437
At-need specialty merchandise	-	282,541
Pre-need land sales	-	-
Closing (12/31/2019)	$ -	$ 12,607,978

	Contract Balances
	Contract Asset	Contract Liability
Pre-need merchandise and services	$ -	$ 12,620,596
At-need specialty merchandise	-	236,572
Pre-need land sales	-	15,900
Opening (1/1/2018)	$ -	$ 12,873,068

Pre-need merchandise and services	$ -	$ 12,175,943
At-need specialty merchandise	-	327,302
Pre-need land sales	-	5,380
Closing (12/31/2018)	$ -	$ 12,508,625

The amount of revenue recognized for the years ended December 31, 2019 and 2018 that was included in the opening contract liability balance was $3,558,103 and $2,623,903, respectively.

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment.

Disaggregation of Revenue

The following table disaggregates revenue for the Company’s cemetery and mortuary contracts.

	Years Ended December 31
	2019	2018
Major goods/service lines
At-need	$ 12,334,777	$ 10,391,976
Pre-need	2,961,458	3,334,542
	$ 15,296,235	$ 13,726,518

Timing of Revenue Recognition
Goods transferred at a point in time	$ 10,133,723	$ 9,100,851
Services transferred at a point in time	5,162,512	4,625,667
	$ 15,296,235	$ 13,726,518

Significant Judgments and Estimates

The Company's cemetery and mortuary segment recognizes revenue on future performance obligations when goods are delivered and when services are performed and is not determined by the terms or payments of the contract as long as any good or service is paid in full prior to delivery. Prices are determined based on the market at the time a contract is created. Goods or services are not partially completed. There are no significant judgements, estimations or allocation methods when revenue should be recognized.

Practical Expedients

The Company has not elected to use any of the practical expedients under ASC 606.

Contract Costs

The Company's cemetery and mortuary segment defers certain costs associated with obtaining a contract on future obligations.

Pre-need Merchandise and Service Revenue: Pre-need merchandise and service revenues are deferred until the goods or services are delivered. Recognition can be years until the obligations are satisfied. Commissions and other costs are capitalized and deferred until the obligation is satisfied. Other costs include rent on pre-need offices and training rooms, and call center costs. Costs that are allocated based on a percentage include family service advisor compensation, bonuses, utilities and supplies that are all used to procure a pre-need sale.

At-need Specialty Merchandise Revenue: At-need specialty merchandise is ordered from a third-party manufacturer. Generally, at-need specialty merchandise is ordered and received within 90 days of order. These orders are also short-term in nature and are deferred until the product is received from the manufacturer and the obligation is satisfied.

Deferred Pre-need Land Revenue: Revenue is recognized on pre-need land sales when the customer has paid at least 10% toward the land price. In cases, where customers pay less than 10%, the revenue and associated commissions are deferred until such time when 10% of the contract price is received.

The following table disaggregates contract costs that are included in deferred policy and pre-need contract acquisition costs on the consolidated balances sheets.

	Years Ended December 31
	2019	2018
Pre-need merchandise and services	$ 3,590,266	$ 3,575,032
At-need specialty merchandise	10,688	15,926
Pre-need land sales	-	1,237
	$ 3,600,954	$ 3,592,195

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

24. Leases

12 Months Ended

Dec. 31, 2019

Notes

24. Leases

24)Leases

On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 regarding Leases ASC Topic 842. See Note 1 regarding the adoption of this standard.

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines if a contract is a lease at the inception of the contract. At the commencement date of a lease, the Company measures the lease liability at the present value of the lease payments over the lease term, discounted using the discount rate for the lease. The Company uses the rate implicit in the lease, if available, otherwise the Company uses its incremental borrowing rate. Also, at the commencement date of a lease, the Company measures the cost of the related right-of-use asset which consists of the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct costs incurred by the Company.

Information about the Nature of Leases and Subleases

The Company leases office space and equipment from third-parties under various non-cancelable agreements. The Company has operating leases for office space for its segments in areas where it conducts business. The Company subleases some of this office space. The Company also has finance leases for certain equipment, such as copy machines and postage machines. The Company does not have any lease agreements with variable lease payments. The Company has not included any options to extend or terminate leases in the recognition of the right-of-use assets or lease liabilities because of the uncertainty that they will be exercised. No residual value guarantees have been provided to the Company. The Company does not have any restrictions or covenants imposed by leases.

Leases that have not Commenced

The Company does not have any leases that have not commenced that create significant rights or obligations for the Company.

Related Party Lease Transactions

The Company does not have any related party lease transactions that require disclosure as of December 31, 2019.

Short-term Leases

The Company made an accounting policy election not to apply the recognition requirements of ASC 842 to short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying assets that the lessee is reasonably certain to exercise.

Significant Judgments and Assumptions

The Company does not use any significant judgments or assumptions regarding the determination of whether a contract contains a lease; the allocation of the consideration in a contract between lease and nonlease components; or the determination of the discount rates for the leases.

The following table presents the Company’s total lease cost recognized in earnings, amounts capitalized as right-of- use assets and cash flows from lease transactions for the period presented:

	Year Ended December 31
	2019
Lease Cost
Finance lease cost:
Amortization of right-of-use assets (1)	$ 38,351
Interest on lease liabilities (2)	9,001
Operating lease cost (3)	5,706,490
Short-term lease cost (3)(4)	233,318
Sublease income (3)	(663,242)
Total lease cost	$ 5,323,918

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,567,761
Operating cash flows from finance leases	9,001
Financing cash flows from finance leases	95,931

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 16,544,406
Finance leases	252,763

Weighted-average remaining lease term (in years)
Finance leases	3.23
Operating leases	4.67

Weighted-average discount rate
Finance leases	5.47%
Operating leases	5.06%

(1) Included in Depreciation on property and equipment on the consolidated statements of earnings
(2) Included in Interest expense on the consolidated statements of earnings
(3) Included in Rent and rent related expenses on the consolidated statements of earnings
(4) Includes leases with a term of 12 months or less

The following table presents the maturity analysis of the Company’s lease liabilities.

	Finance Leases	Operating Leases
Lease payments due in:
2020	$ 62,756	$ 4,241,547
2021	45,086	2,932,404
2022	32,646	1,780,183
2023	25,408	1,383,538
2024	2,542	1,061,520
Thereafter	-	2,919,074
Total undiscounted lease payments	168,438	14,318,266
Less: Discount on cash flows	(14,999)	(2,912,290)
Present value of lease liabilities	$ 153,439	$ 11,405,976

The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:

	Balance Sheet Location	Year Ended December 31 2019
Operating Leases
Right-of-use assets	Other assets	$ 11,267,247

Lease liabilities	Other liabilities and accrued expenses	$ 11,405,976

Finance Leases
Right-of-use assets		$ 248,565
Accumulated amortization		(98,351)
Right-of-use assets, net	Property and equipment, net	$ 150,214

Lease liabilities	Bank and other loans payable	$ 153,439

The Company is also a lessor and has operating lease agreements with various tenants that lease its commercial and residential properties. See Note 2 for information about the Company’s real estate held for investment.

25) Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2019

Notes

25) Quarterly Financial Data (unaudited)

25)Quarterly Financial Data (Unaudited)

	2019
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 61,493,835	$ 68,445,182	$ 75,379,659	$ 77,742,254
Benefits and expenses	59,061,676	63,821,339	70,619,837	75,614,143
Earnings before income taxes	2,432,159	4,623,843	4,759,822	2,128,111
Income tax expense	(501,841)	(1,143,789)	(1,142,408)	(262,378)
Net earnings	1,930,318	3,480,054	3,617,414	1,865,733
Net earnings per common share (1)	$0.11	$0.19	$0.20	$0.10
Net earnings per common share assuming dilution (1)	$0.11	$0.19	$0.20	$0.10

	2018
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 82,076,109	$ 68,865,126	$ 67,223,093	$ 61,454,399
Benefits and expenses	60,888,928	64,702,895	65,011,295	62,835,219
Earnings before income taxes	21,187,181	4,162,231	2,211,798	(1,380,820)
Income tax expense	(4,261,258)	(924,014)	(198,052)	889,013
Net earnings	16,925,923	3,238,217	2,013,746	(491,807)
Net earnings per common share (1)	$0.95	$0.18	$0.11	($0.03)
Net earnings per common share assuming dilution (1)	$0.94	$0.18	$0.11	($0.03)

_______________________

(1)Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.

26) Subsequent Events

12 Months Ended

Dec. 31, 2019

Notes

26) Subsequent Events

26)Subsequent Events

COVID-19

Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as "COVID-19", has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Corporation and its operating subsidiaries in future periods. Further, these uncertainties have the potential to negatively affect the risk of credit default for the issuers of the Company’s debt securities and individual borrowers with mortgage loans held for the Company.

1) Significant Accounting Policies: General Overview of Business (Policies)

12 Months Ended

Dec. 31, 2019

Policies

General Overview of Business

General Overview of Business

1) Significant Accounting Policies: Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP).

1) Significant Accounting Policies: Principles of Consolidation (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Principles of Consolidation

Principles of Consolidation

1) Significant Accounting Policies: Use of Estimates (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Use of Estimates

Use of Estimates

1) Significant Accounting Policies: Investments (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Investments

Investments

Equity securities are carried at estimated fair value. Changes in fair values are reported as unrealized gains or losses and are recorded through net earnings.

Real estate held for sale is carried at lower of cost or fair value. Depreciation is not recognized on real estate classified as held for sale.

Other investments and policy loans are carried at the aggregate unpaid balances, less allowances for losses.

1) Significant Accounting Policies: Cash and Cash Equivalents (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

1) Significant Accounting Policies: Loans Held For Sale (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Loans Held For Sale

Loans Held for Sale

1) Significant Accounting Policies: Mortgage Fee Income (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Mortgage Fee Income

Mortgage Fee Income

·Failure to deliver original documents specified by the investor,

·The existence of misrepresentation or fraud in the origination of the loan,

·The loan becomes delinquent due to nonpayment during the first several months after it is sold,

·Early pay-off of a loan, as defined by the agreements,

·Excessive time to settle a loan,

·Investor declines purchase, and

·Discontinued product and expired commitment.

·Research reasons for rejection,

·Provide additional documents,

·Request investor exceptions,

·Appeal rejection decision to purchase committee, and

·Commit to secondary investors.

Determining Lower of Cost or Fair Value

·For loans that are committed, the Company uses the commitment price.

·For loans that are non-committed that have an active market, the Company uses the market price.

·For loans that are non-committed where there is no market but there is a similar product, the Company uses the market value for the similar product.

The majority of loans originated are sold to third-party investors. The amounts expected to be sold to investors are shown on the consolidated balance sheets as loans held for sale.

1) Significant Accounting Policies: Loan Loss Reserve (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Loan Loss Reserve

Loan Loss Reserve

Repurchase demand – A repurchase demand usually occurs when there is a significant payment default, error in underwriting or detected loan fraud.

Indemnification demand – On certain loans the Company has negotiated a set fee that is to be paid in lieu of repurchase. The fee varies by investor and by loan product type.

The Company believes the allowance for loan losses and the loan loss reserve represent probable loan losses incurred as of the balance sheet date.

Additional information related to the Loan Loss Reserve is included in Note 3.

1) Significant Accounting Policies: Restricted Assets (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Restricted Assets

Restricted Assets

1) Significant Accounting Policies: Cemetery Perpetual Care Trust Investments (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Cemetery Perpetual Care Trust Investments

Cemetery Perpetual Care Trust Investments

1) Significant Accounting Policies: Cemetery Land and Improvements (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Cemetery Land and Improvements

Cemetery Land and Improvements

1) Significant Accounting Policies: Deferred Policy Acquisition Costs and Value of Business Acquired (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs and Value of Business Acquired

Value of business acquired is the present value of estimated future profits of the acquired business and is amortized similar to deferred policy acquisition costs.

1) Significant Accounting Policies: Mortgage Servicing Rights (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Mortgage Servicing Rights

Mortgage Servicing Rights

1) Significant Accounting Policies: Property and Equipment (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Property and Equipment

Property and Equipment

1) Significant Accounting Policies: Long-lived Assets (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Long-lived Assets

1) Significant Accounting Policies: Derivative Instruments (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Derivative Instruments

Derivative Instruments

Mortgage Banking Derivatives

Loan Commitments

Forward Sale Commitments

Call and Put Option Derivatives

1) Significant Accounting Policies: Allowance For Doubtful Accounts and Loan Losses and Impaired Loans (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Allowance For Doubtful Accounts and Loan Losses and Impaired Loans

Allowance for Doubtful Accounts and Loan Losses and Impaired Loans

The Company records an allowance and recognizes an expense for potential losses from mortgage loans held for investment, other investments and receivables in accordance with GAAP.

1) Significant Accounting Policies: Future Policy Benefits and Unpaid Claims (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Future Policy Benefits and Unpaid Claims

1) Significant Accounting Policies: Participating Insurance (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Participating Insurance

Participating Insurance

1) Significant Accounting Policies: Recognition of Insurance Premiums and Other Considerations (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Recognition of Insurance Premiums and Other Considerations

Recognition of Insurance Premiums and Other Considerations

1) Significant Accounting Policies: Reinsurance (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Reinsurance

Reinsurance

1) Significant Accounting Policies: Pre-need Sales and Costs (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Pre-need Sales and Costs

Pre-need Sales and Costs

Revenues and costs for at-need sales are recorded when a valid contract exists, the services are performed, collection is reasonably assured and there are no significant obligations remaining.

1) Significant Accounting Policies: Goodwill (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Goodwill

Goodwill

1) Significant Accounting Policies: Income Taxes (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Income Taxes

Income Taxes

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=120406818&loc=d3e32247-109318

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32847-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 954
-SubTopic 740
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=116657188&loc=SL116659661-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=120406818&loc=d3e32280-109318

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319

+ Details

1) Significant Accounting Policies: Earnings Per Common Share (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Earnings Per Common Share

Earnings Per Common Share

1) Significant Accounting Policies: Stock Based Compensation (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Stock Based Compensation

Stock Based Compensation

1) Significant Accounting Policies: Concentration of Credit Risk (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Concentration of Credit Risk

1) Significant Accounting Policies: Advertising (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Advertising

Advertising

The Company expenses advertising costs as incurred.

1) Significant Accounting Policies: Recent Accounting Pronouncements (Policies)

12 Months Ended

Dec. 31, 2019

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

Accounting Standards Issued But Not Yet Adopted

The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company’s results of operations or financial position.

1) Significant Accounting Policies: Other Intangibles (trade name and customer lists) (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Other Intangibles (trade name and customer lists)

Other Intangibles (trade name and customer lists)

2) Investments: Held-to-maturity Securities (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Held-to-maturity Securities

	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.

As of December 2018

Held-to-maturity Securities

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
December 31, 2018:
Fixed maturity securities held to maturity at amortized cost:
U.S. Treasury securities and obligations of U.S. Government agencies	$ 52,017,683	$ 264,891	$ (727,798)	$ 51,554,776

Obligations of states and political subdivisions	6,959,237	32,274	(111,271)	6,880,240

Corporate securities including public utilities	157,639,860	7,002,864	(3,704,137)	160,938,587

Mortgage-backed securities	15,358,746	227,398	(308,864)	15,277,280

Redeemable preferred stock	103,197	1,903	(5,125)	99,975

Total fixed maturity securities held to maturity	$ 232,078,723	$ 7,529,330	$ (4,857,195)	$ 234,750,858


Equity securities at estimated fair value:

Common stock:

Industrial, miscellaneous and all other	$ 6,312,158	$ 422,528	$ (1,176,075)	$ 5,558,611

Total equity securities at estimated fair value	$ 6,312,158	$ 422,528	$ (1,176,075)	$ 5,558,611

Mortgage loans held for investment at amortized cost:
Residential		$ 89,935,600
Residential construction		71,366,544
Commercial		27,785,927
Less: Unamortized deferred loan fees, net		(1,275,030)
Less: Allowance for loan losses		(1,347,972)

Total mortgage loans held for investment		$ 186,465,069

Real estate held for investment - net of accumulated depreciation:
Residential		$ 29,507,431
Commercial		92,050,791

Total real estate held for investment		$ 121,558,222

Other investments and policy loans at amortized cost:
Policy loans		$ 6,424,325
Insurance assignments		35,239,396
Federal Home Loan Bank stock (1)		2,548,700
Other investments		3,497,762
Less: Allowance for doubtful accounts		(1,092,528)

Total policy loans and other investments		$ 46,617,655

Accrued investment income		$ 3,566,146

Total investments		$ 595,844,426


(1) Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings.

2) Investments: Schedule of Unrealized Loss on Investments (Tables)

12 Months Ended

Dec. 31, 2019

Fixed Maturities

Schedule of Unrealized Loss on Investments

	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, 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


At December 31, 2018
U.S. Treasury Securities and Obligations
of U.S. Government Agencies	$ 10,519	$ 695,863	$ 717,279	$ 39,930,052	$ 727,798	$ 40,625,915
Obligations of States and Political Subdivisions	6,643	1,791,257	104,628	2,889,517	111,271	4,680,774
Corporate Securities	2,514,549	61,090,431	1,189,588	11,767,349	3,704,137	72,857,780
Mortgage and other asset-backed securities	79,896	1,705,296	228,968	2,690,065	308,864	4,395,361
Redeemable preferred stock	5,125	90,000	-	-	5,125	90,000
Total unrealized losses	$ 2,616,732	$ 65,372,847	$ 2,240,463	$ 57,276,983	$ 4,857,195	$ 122,649,830

2) Investments: Investments Classified by Contractual Maturity Date (Tables)

12 Months Ended

Dec. 31, 2019

Held-to-maturity Securities

Investments Classified by Contractual Maturity Date

	Amortized	Estimated Fair
	Cost	Value
Due in 1 year	$ 104,805,927	$ 104,845,243
Due in 2-5 years	67,412,618	69,126,500
Due in 5-10 years	71,110,341	76,249,550
Due in more than 10 years	63,461,305	73,559,690
Mortgage-backed securities	31,475,280	31,832,498
Redeemable preferred stock	364,339	364,339
Total held to maturity	$ 338,629,810	$ 355,977,820

2) Investments: Gain (Loss) on Investments (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Gain (Loss) on Investments

	2019	2018
Fixed maturity securities held to maturity:
Gross realized gains	$ 459,286	$ 522,937
Gross realized losses	(162,649)	(669,303)

Equity securities:
Gains (losses) on securities sold	256,520	(173,413)
Unrealized gains (losses) on securities held at the end of the period	1,086,116	(1,053,756)

Other assets:
Gross realized gains	2,844,673	26,553,814	(1)
Gross realized losses	(3,755,579)	(1,239,100)
Total	$ 728,367	$ 23,941,179

(1) Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments.

2) Investments: Schedule of Major categories of net investment income (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Major categories of net investment income

	2019	2018
Fixed maturity securities	$ 10,372,559	$ 10,041,349
Equity securities	309,918	233,555
Mortgage loans held for investment	18,405,010	18,716,226
Real estate held for investment and sale	8,782,959	8,375,257
Policy loans	554,969	409,589
Insurance assignments	16,086,059	14,771,336
Other investments	184,439	227,930
Cash and cash equivalents	1,824,443	1,264,611
Gross investment income	56,520,356	54,039,853
Investment expenses	(13,500,883)	(14,126,586)
Net investment income	$ 43,019,473	$ 39,913,267

2) Investments: Commercial Real Estate Investment (Tables)

12 Months Ended

Dec. 31, 2019

Commercial Real Estate, Held-for-Investment

Commercial Real Estate Investment

	Net Ending Balance				Total Square Footage
	2019		2018		2019	2018
Arizona	$ -		$ 4,000	(1)	-	-
Kansas	-		6,861,898		-	222,679
Louisiana	6,009,079		467,694		125,114	7,063
Mississippi	2,951,478		3,329,948		21,521	33,821
New Mexico	-		7,000	(1)	-	-
Texas	-		300,000	(2)	-	-
Utah	81,266,083	(3)	81,080,251		465,230	502,129

	$ 90,226,640		$ 92,050,791		611,865	765,692

(1) Undeveloped Land
(2) Improved commercial pad
(3) Includes Center53 phase 1 completed in July 2017

Commercial Real Estate, Held-for-Sale

Commercial Real Estate Investment

	Net Ending Balance			Total Square Footage
	2019		2018	2019	2018
Arizona	$ 2,500	(1)	$ -	-	-
Kansas	4,800,000		-	222,679	-
Mississippi	318,322		-	12,300	-
Nevada	655,499		-	4,800	-
Texas	300,000	(2)	-	-	-

	$ 6,076,321		$ -	239,779	-

(1) Undeveloped land
(2) Improved commercial pad

2) Investments: Residential Real Estate Investment (Tables)

12 Months Ended

Dec. 31, 2019

Residential Real Estate, Held-for-Investment

Residential Real Estate Investment

	Net Ending Balance
	2019		2018
California	$ -		$ 2,644,321
Florida	2,487,723		6,534,277
Nevada	293,516		-
Ohio	-		10,000
Oklahoma	-		-
Tennessee	-		105,260
Texas	-		139,174
Utah	9,462,886	(1)	19,598,218	(1)
Washington	286,181		476,181
	$ 12,530,306		$ 29,507,431

(1) Includes subdivision developments

Residential Real Estate, Held-for-Sale

Residential Real Estate Investment

	Net Ending Balance
	2019	2018
California	640,452	-
Florida	1,300,641	-
Ohio	10,000	-
Utah	5,880,213	-
Washington	190,000	-
	$ 8,021,306	$ -

2) Investments: Real Estate Owned and Occupied by the Company (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Real Estate Owned and Occupied by the Company

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%

2) Investments: Schedule of Allowance for loan losses as a contra-asset account (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

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

Allowance for Credit Losses and Recorded Investment in Mortgage Loans Held for Investment
Years Ended December 31

	Commercial	Residential	Residential Construction	Total
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

2018
Allowance for credit losses:
Beginning balance	$ 187,129	$ 1,546,447	$ 35,220	$ 1,768,796
Charge-offs	-	(5,725)	-	(5,725)
Provision	-	(415,099)	-	(415,099)
Ending balance	$ 187,129	$ 1,125,623	$ 35,220	$ 1,347,972

Ending balance: individually evaluated for impairment	$ -	$ 74,185	$ -	$ 74,185

Ending balance: collectively evaluated for impairment	$ 187,129	$ 1,051,438	$ 35,220	$ 1,273,787

Mortgage loans:
Ending balance	$ 27,785,927	$ 89,935,600	$ 71,366,544	$ 189,088,071

Ending balance: individually evaluated for impairment	$ 196,182	$ 2,939,651	$ 502,991	$ 3,638,824

Ending balance: collectively evaluated for impairment	$ 27,589,745	$ 86,995,949	$ 70,863,553	$ 185,449,247

2) Investments: Schedule of aging of mortgage loans (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

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
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

2018
Commercial	$ 4,588,424	$ -	$ 196,182	$ -	$ 4,784,606	$ 23,001,321	$ 27,785,927	$ (187,129)	$ 32,003	$ -	$ 27,630,801
Residential	9,899,380	2,312,252	1,715,362	1,224,289	15,151,283	74,784,317	89,935,600	(1,125,623)	(862,411)	-	87,947,566
Residential Construction	-	-	-	502,991	502,991	70,863,553	71,366,544	(35,220)	(444,622)	-	70,886,702

Total	$ 14,487,804	$ 2,312,252	$ 1,911,544	$ 1,727,280	$ 20,438,880	$ 168,649,191	$ 189,088,071	$ (1,347,972)	$ (1,275,030)	$ -	$ 186,465,069

(1) There was not any interest income recognized on loans past due greater than 90 days or in foreclosure.

2) Investments: Schedule of Impaired Mortgage Loans (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Impaired Mortgage Loans

Impaired Loans
Years Ended December 31
	Recorded Investment	Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
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	-

2018
With no related allowance recorded:
Commercial	$ 196,182	$ 196,182	$ -	$ 98,023	$ -
Residential	1,612,164	1,612,164	-	2,423,135	-
Residential construction	502,991	502,991	-	675,950	-

With an allowance recorded:
Commercial	$ -	$ -	$ -	$ -	$ -
Residential	1,327,487	1,327,487	74,185	1,543,416	-
Residential construction	-	-	-	-	-

Total:
Commercial	$ 196,182	$ 196,182	$ -	$ 98,023	$ -
Residential	2,939,651	2,939,651	74,185	3,966,551	-
Residential construction	502,991	502,991	-	675,950	-

2) Investments: Schedule Of Credit Risk Of Mortgage Loans Based On Performance Status (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

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

Mortgage Loans Held for Investment Credit Exposure
Credit Risk Profile Based on Payment Activity
Years Ended December 31

	Commercial		Residential		Residential Construction		Total
	2019	2018	2019	2018	2019	2018	2019	2018

Performing	$ 34,229,501	$ 27,589,745	$ 109,291,758	$ 86,995,949	$ 88,775,237	$ 70,863,553	$ 232,296,496	$ 185,449,247
Non-performing	4,488,719	196,182	3,752,207	2,939,651	655,000	502,991	8,895,926	3,638,824

Total	$ 38,718,220	$ 27,785,927	$ 113,043,965	$ 89,935,600	$ 89,430,237	$ 71,366,544	$ 241,192,422	$ 189,088,071

2) Investments: Schedule of Mortgage loans on a nonaccrual status (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Mortgage loans on a nonaccrual status

	Mortgage Loans on Non-accrual Status
	Years Ended December 31
	2019	2018
Commercial	$ 4,488,719	$ 196,182
Residential	3,752,207	2,939,651
Residential construction	655,000	502,991
Total	$ 8,895,926	$ 3,638,824

2) Investments: Schedule of Principal amounts due on mortgage loans held for investment by category (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Principal amounts due on mortgage loans held for investment by category

		Principal	Principal	Principal
		Amounts	Amounts	Amounts
		Due in	Due in	Due
	Total	1 Year	2-5 Years	Thereafter
Residential	$ 113,043,965	$ 6,234,913	$ 27,161,628	$ 79,647,424
Residential Construction	89,430,237	$ 60,376,688	$ 29,053,549	-
Commercial	38,718,220	24,175,464	4,020,999	10,521,757
Total	$ 241,192,422	$ 90,787,065	$ 60,236,176	$ 90,169,181

3) Loans Held For Sale: Aggregate fair value - Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Aggregate fair value - Loans Held for Sale

	As of December 31 2019	As of December 31 2018

Aggregate fair value	$ 213,457,632	$ 136,210,853
Unpaid principal balance	206,417,122	131,663,946
Unrealized gain	7,040,510	4,546,907

3) Loans Held For Sale: Schedule of Mortgage Fee Income for Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Mortgage Fee Income for Loans Held for Sale

	2019	2018
Loan fees	$ 28,660,966	$ 27,429,237
Interest income	6,978,930	6,156,796
Secondary gains	93,581,956	80,416,718
Change in fair value of loan commitments	899,417	(404,773)
Change in fair value of loans held for sale	2,498,097	3,736,209
Provision for loan loss reserve	(643,284)	(1,148,334)
Mortgage fee income	$ 131,976,082	$ 116,185,853

3) Loans Held For Sale: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of loan loss reserve which is included in other liabilities and accrued expenses

	December 31
	2019	2018
Balance, beginning of period	$ 3,604,869	$ 2,571,524
Provision for current loan originations (1)	643,284	1,148,334
Charge-offs, net of recaptured amounts	(201,865)	(114,989)
Balance, at December 31	$ 4,046,288	$ 3,604,869

(1) Included in Mortgage fee income

4) Receivables: Schedule of Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Receivables

	December 31
	2019	2018
Trade contracts	$ 2,795,471	$ 2,816,225
Receivables from sales agents	2,962,571	3,079,688
Other	5,202,444	4,559,272
Total receivables	10,960,486	10,455,185
Allowance for doubtful accounts	(1,724,156)	(1,519,842)
Net receivables	$ 9,236,330	$ 8,935,343

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Value of Business Acquired (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Value of Business Acquired

	December 31
	2019		2018
Balance at beginning of year	$ 5,765,190		$ 6,588,759
Value of business acquired	4,962,831	(1)	-
Imputed interest at 7% included in earnings	472,916		421,122
Amortization included in earnings	(1,320,456)		(1,244,691)
Shadow amortization included in other comprehensive income	(3,834)		-
Net amortization	(851,374)		(823,569)
Balance at end of year	$ 9,876,647		$ 5,765,190

(1) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Carrying Value of Intangible Asset (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Carrying Value of Intangible Asset

		December 31
	Useful Life	2019		2018
Intangible asset - customer lists	15 years	$ 890,000	(1)	$ 890,000	(1)
Intangible asset - trade name	15 years	$ 610,000	(2)	$ -
Less accumulated amortization		(98,222)		(34,611)
Balance at end of year		$ 1,401,778		$ 855,389

(1) See Note 20 regarding the acquisition of Beta Capital Corp.
(2) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Goodwill by Segment (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Goodwill by Segment

	Life Insurance	Cemetery/Mortuary		Total
Balance at January 1, 2018:
Goodwill	$ 2,765,570	$ -		$ 2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570

Balance at December 31, 2018:
Goodwill	2,765,570	-		2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570

Acquisition	-	754,018	(1)	754,018

Balance at December 31, 2019:
Goodwill	2,765,570	754,018		3,519,588
Accumulated impairment	-	-		-
Total goodwill, net	$ 2,765,570	$ 754,018		$ 3,519,588

(1) See Note 20 regarding the acquisition of Probst Family Funerals and Cremations and Heber Valley Funeral Home

6) Property and Equipment: Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Property, Plant and Equipment

	December 31
	2019	2018
Land and buildings	$ 15,131,301	$ 7,775,922
Furniture and equipment	18,987,984	16,731,457
	34,119,285	24,507,379
Less accumulated depreciation	(19,518,891)	(17,496,601)
Total	$ 14,600,394	$ 7,010,778

7) Bank and Other Loans Payable: Summary of Bank Loans Payable (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Summary of Bank Loans Payable

	December 31
	2019	2018
2.25% above the monthly LIBOR rate plus 1/16th of the monthly LIBOR rate note payable in monthly principal payments of $13,167 plus interest, collateralized by real property with a book value of approximately $4,244,000, due September 2021.	$ 2,659,769	$ 2,817,775

4.27% fixed note payable in monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2021.	1,238,619	1,817,905

Prime rate note payable in monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2024.	4,000,000	-

4.40% fixed note payable in monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,923,000, due January 2026.	7,247,651	7,492,140

4.329% fixed note payable in monthly installments of $9,775 including principal and interest, collateralized by real property with a book value of approximately $3,261,000, due September 2025.	1,896,450	1,929,725

2.5% above the monthly LIBOR rate plus 1/16th of the monthly LIBOR rate construction loan payable in monthly principal payments of $113,000 plus interest, collateralized by real property with a book value of approximately $49,378,000, due August 2020.	33,811,559	30,796,861

4.7865% fixed interest only note payable in monthly installments, collateralized by real property with a book value of approximately $18,009,000, due June 2028.	9,200,000	9,200,000

1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures June 2020.	88,509,536	60,438,156

1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures September 2020.	67,537,600	25,680,649

Other short-term borrowings (1)	1,250,000	47,250,000

Finance lease liabilities	153,439	-

Other loans payable	67,989	97,977
Total bank and other loans	217,572,612	187,521,188

Less current installments	192,985,602	165,219,632
Bank and other loans, excluding current installments	$ 24,587,010	$ 22,301,556

(1) Federal Home Loan Bank and Revolving Lines of Credit

7) Bank and Other Loans Payable: Schedule of combined maturities of bank loans payable, lines of credit and notes and contracts payable (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of combined maturities of bank loans payable, lines of credit and notes and contracts payable

2019	$ 192,985,602
2020	4,256,684
2021	1,151,703
2022	1,218,742
2023	1,247,461
Thereafter	16,712,420
Total	$ 217,572,612

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets: Schedule of the components of the cemetery perpetual care obligation (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of the components of the cemetery perpetual care obligation

	December 31
	2019	2018
Cash and cash equivalents	$ 1,306,740	$ 1,557,506
Fixed maturity securities, available for sale, at estimated fair value	975,673	990,390
Equity securities, at estimated fair value	1,605,451	483,353
Commerical mortgage loans held for investment	524,000	-
Real estate held for investment	-	1,304,620
Note receivables from Cottonwood Mortuary, Singing Hills
Cemetery and Memorial Estates eliminated in consolidation	1,541,120	1,606,155
Total cemetery perpetual care trust investments	5,952,984	5,942,024
Cemetery perpetual care obligation	(3,933,719)	(3,821,979)
Trust investments in excess of trust obligations	$ 2,019,265	$ 2,120,045

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

	December 31
	2019	2018
Cash and cash equivalents (1)	$ 8,674,214	$ 7,179,225
Mutual funds, at estimated fair value	-	677,795
Fixed maturity securities, available for sale, at estimated fair value	1,008,867	1,258,397
Equity securities, at estimated fair value	1,976,480	66,878
Participating interests in mortgage loans held for investment with Security National Life	2,275,756	1,799,267
Total	$ 13,935,317	$ 10,981,562

(1) Including cash and cash equivalents of $7,170,092 and $5,668,580 as of December 31, 2019 and 2018, respectively, for the life insurance and mortgage segments.

9) Income Taxes: Summary of Income Tax Liability (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Summary of Income Tax Liability

	December 31
	2019	2018
Current	$ 1,410,153	$ 473,800
Deferred	17,276,819	15,649,198
Total	$ 18,686,972	$ 16,122,998

9) Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	December 31
	2019	2018
Assets
Future policy benefits	$ (12,450,229)	$ (8,293,592)
Loan loss reserve	(1,053,256)	(938,496)
Unearned premium	(760,556)	(823,299)
Available for sale securities	-	(366,279)
Net operating loss	(438,420)	(593,272)
Deferred compensation	(1,996,865)	(1,677,118)
Deposit obligations	(619,633)	(610,769)
Other	(1,020,718)	(185,557)
Less: Valuation allowance	2,439,394	-
Total deferred tax assets	(15,900,283)	(13,488,382)

Liabilities
Deferred policy acquisition costs	15,536,717	15,255,960
Basis difference in property and equipment	3,638,512	4,309,162
Value of business acquired	2,074,096	1,210,690
Deferred gains	5,169,104	6,267,373
Trusts	1,064,387	1,064,387
Tax on unrealized appreciation	5,694,286	1,030,008
Total deferred tax liabilities	33,177,102	29,137,580
Net deferred tax liability	$ 17,276,819	$ 15,649,198

9) Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)

	2019	2018
Current
Federal	$ 4,404,041	$ 6,933,145
State	504,272	166,567
	4,908,313	7,099,712

Deferred
Federal	(1,551,725)	(1,838,947)
State	(306,172)	(766,454)
	(1,857,897)	(2,605,401)

Total	$ 3,050,416	$ 4,494,311

9) Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

	2019	2018
Computed expense at statutory rate	$ 2,928,226	$ 5,497,882
State tax expense, net of federal tax benefit	156,499	(473,911)
Change in valuation allowance	194,364	-
Other, net	(228,673)	(529,660)
Income tax expense	$ 3,050,416	$ 4,494,311

9) Income Taxes: Summary of Operating Loss Carryforwards (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Summary of Operating Loss Carryforwards

Year of Expiration
2020	$ 114,601
2021	17,101
2022	-
2023	-
2024	-
Thereafter up through 2037	1,701,126

	$ 1,832,828

12) Capital Stock: Share-based Payment Arrangement, Option, Activity (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Share-based Payment Arrangement, Option, Activity

	Class A	Class C
Outstanding shares at December 31, 2017	14,535,577	2,089,374

Exercise of stock options	38,473	-
Stock dividends	730,560	104,457
Conversion of Class C to Class A	188	(188)

Outstanding shares at December 31, 2018	15,304,798	2,193,643

Exercise of stock options	32,517	191,443
Stock dividends	767,178	119,087
Conversion of Class C to Class A	3,286	(3,286)

Outstanding shares at December 31, 2019	16,107,779	2,500,887

12) Capital Stock: Schedule of Earnings Per Share, Basic and Diluted (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Earnings Per Share, Basic and Diluted

	2019	2018
Numerator:
Net earnings	$ 10,893,519	$ 21,686,079

Denominator:
Denominator for basic earnings
per share-weighted-average shares	18,104,681	17,968,062

Effect of dilutive securities
Employee stock options	124,435	220,603
Dilutive potential common shares	124,435	220,603

Denominator for diluted earnings
per share-adjusted weighted-average
shares and assumed conversions	18,229,116	18,188,665

Basic earnings per share	$0.60	$1.21
Diluted earnings per share	$0.60	$1.19

13) Stock Compensation Plans: Schedule of Assumptions Used (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Assumptions Used

			Assumptions
Grant Date	Plan	Weighted-Average Fair Value of Each Option	Expected Dividend Yield	Underlying stock FMV	Weighted-Average Volatility	Weighted-Average Risk-Free Interest Rate	Weighted-Average Expected Life (years)
December 6, 2019	All Plans	$ 0.96	5%	$ 5.19	32.79%	1.64%	4.83

January 17, 2019	All Plans	$ 1.12	5%	$ 4.98	36.04%	2.56%	5.31

November 30, 2018	All Plans	$ 1.12	5%	$ 4.91	34.61%	2.86%	4.56

13) Stock Compensation Plans: Schedule of Activity of Stock Option Plans (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Activity of Stock Option Plans

	Number ofClass A Shares	Weighted Average Exercise Price	Number ofClass C Shares	Weighted Average Exercise Price
Outstanding at January 1, 2018	880,426	$ 4.35	523,603	$ 5.24
Adjustment for the effect of stock dividends	48,168		27,491
Granted	142,000		90,000
Exercised	(42,211)		-
Cancelled	(17,109)		(63,814)

Outstanding at December 31, 2018	1,011,274	$ 4.49	577,280	$ 5.15
Adjustment for the effect of stock dividends	51,018		28,295
Granted	81,000		180,000
Exercised	(45,834)		(191,443)
Cancelled	(11,405)		-

Outstanding at December 31, 2019	1,086,053	$ 4.41	594,132	$ 5.36

Exercisable at end of year	1,002,603	$ 4.34	405,132	$ 5.40

Available options for future grant	205,664		-

Weighted average contractual term of options
outstanding at December 31, 2019	5.62 years		5.82 years

Weighted average contractual term of options
exercisable at December 31, 2019	5.26 years		4.54 years

Aggregated intrinsic value of options outstanding
at December 31, 2019 (1)	$1,291,602		$2,177,223

Aggregated intrinsic value of options exercisable
at December 31, 2019 (1)	$1,259,786		$159,028

(1) The Company used a stock price of $5.57 as of December 31, 2019 to derive intrinsic value.

14) Statutory Financial Information and Dividend Limitations: Schedule of statutory accounting practices (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of statutory accounting practices

	Statutory Net Income			Statutory Capital and Surplus
	2019		2018	2019	2018
Amounts by insurance subsidiary:
Security National Life Insurance Company	$ 3,589,552		$17,963,528	$ 49,390,181	$ 47,184,064
Kilpatrick Life Insurance Company	12,752,100	(1)	-	15,208,071	-
First Guaranty Insurance Company	1,078,733		1,042,683	6,352,670	5,786,369
Memorial Insurance Company of America	(107)		94	1,088,559	1,088,880
Southern Security Life Insurance Company, Inc.	87		68	1,588,396	1,586,915
Trans-Western Life Insurance Company	3,773		5,460	512,163	508,390
Total	$ 17,424,138		$19,011,833	$ 74,140,040	$ 56,154,618

(1) Includes 12 months even though Kilpatrick Life Insurance Company wasn't acquired by the Company until December 2019.

15) Business Segment Information: Schedule of Segment Reporting Information, by Segment (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Segment Reporting Information, by Segment

	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

	2018
	Life	Cemetery/		Intercompany
	Insurance	Mortuary	Mortgage	Eliminations	Consolidated
Revenues:
From external sources:
Revenue from customers	$ 75,928,910	$ 13,726,518	$ 116,185,853	$ -	$ 205,841,281
Net investment income	38,720,365	283,343	909,559	-	39,913,267
Gains on investments and other assets	21,396,282	2,301,342	243,555	-	23,941,179
Other revenues	1,636,901	128,797	8,157,302	-	9,923,000
Intersegment revenues:
Net investment income	3,972,532	429,312	503,794	(4,905,638)	-
Total revenues	141,654,990	16,869,312	126,000,063	(4,905,638)	279,618,727
Expenses:
Death, surrenders and other policy benefits	39,185,087	-	-	-	39,185,087
Increase in future policy benefits	24,332,088	-	-	-	24,332,088
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	11,270,579	360,767	-	-	11,631,346
Selling, general and administrative expenses:
Commissions	3,242,745	1,222,642	45,825,965	-	50,291,352
Personnel	18,489,063	4,773,866	44,106,023	-	67,368,952
Advertising	566,154	333,852	3,702,585	-	4,602,591
Rent and rent related	321,701	33,138	7,250,536	-	7,605,375
Depreciation on property and equipment	400,686	372,469	1,093,846	-	1,867,001
Cost related to funding mortgage loans	-	-	6,423,944	-	6,423,944
Intersegment	402,213	182,009	531,370	(1,115,592)	-
Other	10,094,626	3,046,902	17,873,471	-	31,014,999
Interest expense:
Intersegment	481,587	173,807	3,134,652	(3,790,046)	-
Other	2,744,841	294,535	3,917,331	-	6,956,707
Costs of goods and services sold-mortuaries and cemeteries	-	2,158,895	-	-	2,158,895
Total benefits and expenses	111,531,370	12,952,882	133,859,723	(4,905,638)	253,438,337
Earnings before income taxes	$ 30,123,620	$ 3,916,430	$ (7,859,660)	$ -	$ 26,180,390
Income tax benefit (expense)	(5,275,662)	(946,820)	1,728,171	-	(4,494,311)
Net earnings	$ 24,847,958	$ 2,969,610	$ (6,131,489)	$ -	$ 21,686,079

Identifiable assets	$ 928,251,387	$ 90,639,130	$ 159,680,649	$ (130,525,613)	$ 1,048,045,553

Goodwill	$ 2,765,570	$ -	$ -	$ -	$ 2,765,570

17) Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a recurring basis (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Schedule of fair value assets and liabilities measured on a recurring basis

	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

As of December 2018

Schedule of fair value assets and liabilities measured on a recurring basis

	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
Equity securities	$ 5,558,611	$ 5,558,611	$ -	$ -
Loans held for sale	136,210,853	-	-	136,210,853
Restricted assets (1)	744,673	744,673	-	-
Cemetery perpetual care trust investments (1)	483,353	483,353	-	-
Derivatives - loan commitments (2)	1,969,967	-	-	1,969,967
Total assets accounted for at fair value on a recurring basis	$ 144,967,457	$ 6,786,637	$ -	$ 138,180,820

Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (3)	$ (4,629)	$ (4,629)	$ -	$ -
Derivatives - put options (3)	(296,053)	(296,053)	-	-
Derivatives - loan commitments (3)	(378,151)	-	-	(378,151)
Total liabilities accounted for at fair value on a recurring basis	$ (678,833)	$ (300,682)	$ -	$ (378,151)

(1) Mutual funds and equity securities
(2) Included in other assets on the consolidated balance sheets
(3) Included in other liabilities and accrued expenses on the consolidated balance sheets

17) Fair Value of Financial Instruments: Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

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

			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

17) Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Schedule 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	-	(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

As of December 2018

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

	Net Derivatives Loan Commitments	Loans Held for Sale

Balance - December 31, 2017	$ 1,996,589	$ 133,414,188
Originations		2,194,607,543
Sales		(2,259,145,473)
Transfer to mortgage loans held for investment		(10,827,797)
Total gains (losses):
Included in earnings (1)	(404,773)	78,162,392

Balance - December 31, 2018	$ 1,591,816	$ 136,210,853

(1) As a component of mortgage fee income on the consolidated statements of earnings

17) Fair Value of Financial Instruments: Fair Value Assets Measured on a Nonrecurring Basis (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Fair Value Assets Measured on a Nonrecurring Basis

	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

As of December 2018

Fair Value Assets Measured on a Nonrecurring Basis

	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	$ 1,253,302	$ -	$ -	$ 1,253,302
Impaired real estate held for investment	1,611,384	-	-	1,611,384
Total assets accounted for at fair value on a nonrecurring basis	$ 2,864,686	$ -	$ -	$ 2,864,686

17) Fair Value of Financial Instruments: Schedule of Financial Instruments Carried at Other Than Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Schedule of Financial Instruments Carried at Other Than Fair Value

	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

As of December 2018

Schedule of Financial Instruments Carried at Other Than Fair Value

	Carrying Value	Level 1	Level 2	Level 3	Total Estimated Fair Value
Assets
Fixed maturity securities, held to maturity	$ 232,078,723	$ -	$ 229,668,844	$ 5,082,014	$ 234,750,858
Mortgage loans held for investment
Residential	87,947,566	-	-	92,503,553	92,503,553
Residential construction	70,886,702	-	-	70,886,702	70,886,702
Commercial	27,630,801	-	-	28,359,205	28,359,205
Mortgage loans held for investment, net	$ 186,465,069	$ -	$ -	$ 191,749,460	$ 191,749,460
Policy loans	6,424,325	-	-	6,424,325	6,424,325
Insurance assignments, net (1)	34,146,868	-	-	34,168,868	34,168,868
Restricted assets (2)	1,258,397	-	1,271,687	-	1,271,687
Restricted assets (3)	1,799,268	-	-	1,810,185	1,810,185
Cemetery perpetual care trust investments (2)	990,390	-	983,410	-	983,410
Mortgage servicing rights, net	20,016,822	-	-	28,885,316	28,885,316

Liabilities
Bank and other loans payable	$ (187,521,188)	$ -	$ -	$ (187,521,188)	$ (187,521,188)
Policyholder account balances (4)	(46,479,853)	-	-	(37,348,289)	(37,348,289)
Future policy benefits - annuities (4)	(98,137,615)	-	-	(97,641,146)	(97,641,146)

(1) Included in other investments and policy loans on the consolidated balance sheets
(2) Fixed maturity securities held to maturity
(3) Participation in mortgage loans held for investment
(4) Included in future policy benefits and unpaid claims on the consolidated balance sheets

18) Accumulated Other Comprehensive Income: Schedule of Changes in accumulated other comprehensive income (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Changes in accumulated other comprehensive income

	December 31
	2019	2018
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01) for equity securities	$ -	$ (603,170)

Unrealized gains on fixed maturity securities available for sale	17,315,770	-
Reclassification adjustment for net realized gains in net income	-	-
Net unrealized gains before taxes	17,315,770	-
Tax expense	(3,636,311)	-
Net	13,679,459	-
Unrealized gains on restricted assets (1)	35,550	-
Tax expense	(8,856)	-
Net	26,694	-
Unrealized gains on cemetery perpetual care trust investments (1)	29,904	-
Tax expense	(7,449)	-
Net	22,455	-
Unrealized gains for foreign currency translations adjustments	972	(3,761)
Tax expense	(243)	938
Net	729	(2,823)
Other comprehensive income changes	$ 13,729,337	$ (605,993)
_______________
(1) Fixed maturity securities available for sale

18) Accumulated Other Comprehensive Income: Accumulated Balances of Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

Accumulated Balances of Other Comprehensive Income

	Beginning Balance December 31, 2018	Change for the period	Ending Balance December 31,2019
Unrealized gains on fixed maturity securities available for sale	$ -	$ 13,679,459	$ 13,679,459
Unrealized gains on restricted assets (1)	-	26,694	26,694
Unrealized gains on cemetery perpetual care trust investments (1)	-	22,455	22,455
Foreign currency translation adjustments	(2,823)	729	(2,094)
Other comprehensive income (loss)	$ (2,823)	$ 13,729,337	$ 13,726,514

(1) Fixed maturity securities available for sale

As of December 2018

Accumulated Balances of Other Comprehensive Income

	Beginning Balance December 31, 2017	Change for the period		Ending Balance December 31,2018
Unrealized gains on equity securities, restricted assets and cemetery perpetual care trust investments	$ 603,170	$ (603,170)	(1)	$ -
Foreign currency translation adjustments	-	(2,823)		(2,823)
Other comprehensive income (loss)	$ 603,170	$ (605,993)		$ (2,823)

(1) Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)

19) Derivative Instruments: Schedule of Fair Values and Notional Amounts of Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Fair Values and Notional Amounts of Derivative Instruments

	Fair Values and Notional Amounts of Derivative Instruments
		December 31, 2019			December 31, 2018
	Balance Sheet Location	Notional Amount	Asset Fair Value	Liability Fair Value	Notional Amount	Asset Fair Value	Liability Fair Value
Derivatives not designated as hedging instruments:
Loan commitments	Other assets and Other liabilities	$224,202,514	$2,722,580	$231,347	$ 93,758,218	$1,969,967	$378,151
Call options	Other liabilities	1,813,500	--	62,265	805,500	--	4,629
Put options	Other liabilities	1,573,100	--	22,282	4,861,700	--	296,053
Total		$225,326,654	$2,722,580	$315,894	$ 99,425,418	$1,969,967	$678,833

19) Derivative Instruments: Schedule of Gains and Losses on Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Gains and Losses on Derivatives

		Net Amount Gain (Loss)
		Years ended December 31
Derivative	Classification	2019	2018
Loan commitments	Mortgage fee income	$ 899,417	$ (404,773)

Call and put options	Gains on investments and other assets	$ 626,208	$ 187,786

20) Acquisitions: Estimated Fair Values of Assets Acquired and Liabilities Assumed (Tables)

12 Months Ended

Dec. 31, 2019

Coinsurance Agreement

Estimated Fair Values of Assets Acquired and Liabilities Assumed

Other investments and policy loans	$ 9,124,459
Real estate held for investment	2,850,000
Mortgage loans held for investment	200,000
Receivables	131,258
Total assets acquired	12,305,717

Future policy benefits and unpaid claims	(165,404,970)
Other liabilities and accrued expenses	(5,259,341)
Total liabilities assumed	(170,664,311)
Cash received for reinsurance assumed	$ 158,358,594

Kilpatrick Life Insurance Co

Estimated Fair Values of Assets Acquired and Liabilities Assumed

Fixed maturity securities, available for sale	$ 22,766,520
Fixed maturity securities, held to maturity	16,436
Mortgage loans held for investment	8,011,660
Real estate held for investment	2,708,557
Other investments	446,655
Accrued investment income	183,527
Total investments	34,133,355

Cash and cash equivalents	6,900,654
Receivables, net	5,407,736	(1)
Receivables from reinsurers	168,105,064	(1)
Property and equipment, net	1,498,245
Value of business acquired	4,962,831
Deferred taxes	167,344
Other	712,323
Total assets acquired	221,887,552

Future policy benefits and unpaid claims	(189,071,407)
Accounts payable	(283,304)
Other liabilities and accrued expenses	(7,870,944)
Income taxes	(881,957)
Total liabilities assumed	(198,107,612)
Fair value of net assets acquired/consideration paid	$ 23,779,940

Fair value of net assets acquired/consideration paid, net of cash acquired	$ 16,879,286


(1) Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life.

Probst Family Funerals and Cremations and Heber Valley Funeral Home

Estimated Fair Values of Assets Acquired and Liabilities Assumed

Cash	$ 53,859
Property and equipment	2,475,526
Receivables	13,620
Goodwill	754,018
Other	21,800
Total assets acquired	3,318,823

Bank and other loans payable	(3,176)
Total liabilities assumed	(3,176)
Fair value of net assets acquired/consideration paid	$ 3,315,647

Fair value of net assets acquired/consideration paid, net of cash acquired	$ 3,261,788

Beta Capital Corp

Estimated Fair Values of Assets Acquired and Liabilities Assumed

Other investments - insurance assignments	$ 2,515,783
Other - customer list intangible asset	890,000
Total assets acquired	3,405,783
Fair value of net assets acquired/consideration paid	$ 3,405,783

21) Mortgage Servicing Rights: Schedule of mortgage servicing rights (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of mortgage servicing rights

	December 31
	2019	2018
Amortized cost:
Balance before valuation allowance at beginning of year	$ 20,016,822	$ 21,376,937
MSR additions resulting from loan sales	4,194,502	3,922,816
Amortization (1)	(7,055,795)	(5,282,931)
Application of valuation allowance to write down MSRs with other than temporary impairment	-	-
Balance before valuation allowance at year end	$ 17,155,529	$ 20,016,822

Valuation allowance for impairment of MSRs:
Balance at beginning of year	$ -	$ -
Additions	-	-
Application of valuation allowance to write down MSRs with other than temporary impairment	-	-
Balance at year end	$ -	$ -

Mortgage servicing rights, net	$ 17,155,529	$ 20,016,822

Estimated fair value of MSRs at year end	$ 22,784,571	$ 28,885,316

(1) Included in other expenses on the consolidated statements of earnings

21) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights, Future Amortization Expense (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Mortgage Servicing Rights, Future Amortization Expense

		Estimated MSR Amortization
2020		$ 2,999,452
2021		2,376,277
2022		1,971,249
2023		1,631,010
2024		1,359,492
Thereafter		6,818,049
Total		$ 17,155,529

21) Mortgage Servicing Rights: Schedule of Other Revenues (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Other Revenues

	2019	2018
Contractual servicing fees	$ 7,212,164	$ 7,561,226
Late fees	365,477	319,244
Total	$ 7,577,641	$ 7,880,470

21) Mortgage Servicing Rights: Summary of Unpaid Principal Balances of the Servicing Portfolio (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Summary of Unpaid Principal Balances of the Servicing Portfolio

	Years Ended December 31
	2019	2018
Servicing UPB	$ 2,804,139,415	$ 2,941,231,563

21) Mortgage Servicing Rights: Assumptions used in determining MSR value (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Assumptions used in determining MSR value

	PrepaymentSpeeds	AverageLife(Years)	DiscountRate
December 31, 2019	15.30	5.27	9.51
December 31, 2018	11.70	6.33	9.51

22) Future Policy Benefits and Unpaid Claims: Schedule of Liability for Future Policy Benefits, by Product Segment (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Liability for Future Policy Benefits, by Product Segment

	Years Ended September 30
	2019	2018
Life	$ 654,585,723	$466,232,621
Annuities	113,579,831	98,137,615
Policyholder account balances	45,154,180	46,479,853
Accident and health	667,428	482,693
Other policyholder funds	4,530,227	4,431,296
Reported but unpaid claims	4,891,922	3,365,872
Incurred but not reported claims	2,191,607	1,269,764

Gross future policy benefits and unpaid claims	$ 825,600,918	$620,399,714

Receivable from reinsurers

Life	11,040,398	6,702,328
Annuities	4,038,007	4,078,666
Accident and health	90,113	-
Reported but unpaid claims	569,250	33,108
Incurred but not reported claims	10,000	6,000

Total receivable from reinsurers	15,747,768	10,820,102

Net future policy benefits and unpaid claims	$ 809,853,150	$609,579,612

23) Revenues From Contracts With Customers: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities

	Contract Balances
	Receivables (1)	Contract Asset	Contract Liability
Opening (1/1/2019)	$ 2,816,225	$ -	$ 12,508,625
Closing (12/31/2019)	2,778,879	-	12,607,978
Increase/(decrease)	(37,346)	-	99,353

	Contract Balances
	Receivables (1)	Contract Asset	Contract Liability
Opening (1/1/2018)	$ 3,608,379	$ -	$ 12,873,068
Closing (12/31/2018)	2,816,225	-	12,508,625
Increase/(decrease)	(792,154)	-	(364,443)

(1) Included in Receivables, net on the consolidated balance sheets

23) Revenues From Contracts With Customers: Opening and Closing Balances of the Contract Assets and Contract Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Opening and Closing Balances of the Contract Assets and Contract Liabilities

	Contract Balances
	Contract Asset	Contract Liability
Pre-need merchandise and services	$ -	$ 12,175,943
At-need specialty merchandise	-	327,302
Pre-need land sales	-	5,380
Opening (1/1/2019)	$ -	$ 12,508,625

Pre-need merchandise and services	$ -	$ 12,325,437
At-need specialty merchandise	-	282,541
Pre-need land sales	-	-
Closing (12/31/2019)	$ -	$ 12,607,978

	Contract Balances
	Contract Asset	Contract Liability
Pre-need merchandise and services	$ -	$ 12,620,596
At-need specialty merchandise	-	236,572
Pre-need land sales	-	15,900
Opening (1/1/2018)	$ -	$ 12,873,068

Pre-need merchandise and services	$ -	$ 12,175,943
At-need specialty merchandise	-	327,302
Pre-need land sales	-	5,380
Closing (12/31/2018)	$ -	$ 12,508,625

23) Revenues From Contracts With Customers: Revenues of the Cemetery and Mortuary Contracts (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Revenues of the Cemetery and Mortuary Contracts

	Years Ended December 31
	2019	2018
Major goods/service lines
At-need	$ 12,334,777	$ 10,391,976
Pre-need	2,961,458	3,334,542
	$ 15,296,235	$ 13,726,518

Timing of Revenue Recognition
Goods transferred at a point in time	$ 10,133,723	$ 9,100,851
Services transferred at a point in time	5,162,512	4,625,667
	$ 15,296,235	$ 13,726,518

23) Revenues From Contracts With Customers: Schedule of Contract Costs Included in Deferred Policy and Pre-Need Contract Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Contract Costs Included in Deferred Policy and Pre-Need Contract Acquisition Costs

	Years Ended December 31
	2019	2018
Pre-need merchandise and services	$ 3,590,266	$ 3,575,032
At-need specialty merchandise	10,688	15,926
Pre-need land sales	-	1,237
	$ 3,600,954	$ 3,592,195

24. Leases: Schedule of Lease Cost Recognized in Earnings (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Lease Cost Recognized in Earnings

	Year Ended December 31
	2019
Lease Cost
Finance lease cost:
Amortization of right-of-use assets (1)	$ 38,351
Interest on lease liabilities (2)	9,001
Operating lease cost (3)	5,706,490
Short-term lease cost (3)(4)	233,318
Sublease income (3)	(663,242)
Total lease cost	$ 5,323,918

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,567,761
Operating cash flows from finance leases	9,001
Financing cash flows from finance leases	95,931

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 16,544,406
Finance leases	252,763

Weighted-average remaining lease term (in years)
Finance leases	3.23
Operating leases	4.67

Weighted-average discount rate
Finance leases	5.47%
Operating leases	5.06%

(1) Included in Depreciation on property and equipment on the consolidated statements of earnings
(2) Included in Interest expense on the consolidated statements of earnings
(3) Included in Rent and rent related expenses on the consolidated statements of earnings
(4) Includes leases with a term of 12 months or less

24. Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Schedule of Future Minimum Rental Payments for Operating Leases

	Finance Leases	Operating Leases
Lease payments due in:
2020	$ 62,756	$ 4,241,547
2021	45,086	2,932,404
2022	32,646	1,780,183
2023	25,408	1,383,538
2024	2,542	1,061,520
Thereafter	-	2,919,074
Total undiscounted lease payments	168,438	14,318,266
Less: Discount on cash flows	(14,999)	(2,912,290)
Present value of lease liabilities	$ 153,439	$ 11,405,976

24. Leases: Right-of-Use Assets and Lease Liabilities TextBlock (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Right-of-Use Assets and Lease Liabilities TextBlock

	Balance Sheet Location	Year Ended December 31 2019
Operating Leases
Right-of-use assets	Other assets	$ 11,267,247

Lease liabilities	Other liabilities and accrued expenses	$ 11,405,976

Finance Leases
Right-of-use assets		$ 248,565
Accumulated amortization		(98,351)
Right-of-use assets, net	Property and equipment, net	$ 150,214

Lease liabilities	Bank and other loans payable	$ 153,439

25) Quarterly Financial Data (unaudited): Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Tables/Schedules

Quarterly Financial Information

	2019
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 61,493,835	$ 68,445,182	$ 75,379,659	$ 77,742,254
Benefits and expenses	59,061,676	63,821,339	70,619,837	75,614,143
Earnings before income taxes	2,432,159	4,623,843	4,759,822	2,128,111
Income tax expense	(501,841)	(1,143,789)	(1,142,408)	(262,378)
Net earnings	1,930,318	3,480,054	3,617,414	1,865,733
Net earnings per common share (1)	$0.11	$0.19	$0.20	$0.10
Net earnings per common share assuming dilution (1)	$0.11	$0.19	$0.20	$0.10

	2018
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 82,076,109	$ 68,865,126	$ 67,223,093	$ 61,454,399
Benefits and expenses	60,888,928	64,702,895	65,011,295	62,835,219
Earnings before income taxes	21,187,181	4,162,231	2,211,798	(1,380,820)
Income tax expense	(4,261,258)	(924,014)	(198,052)	889,013
Net earnings	16,925,923	3,238,217	2,013,746	(491,807)
Net earnings per common share (1)	$0.95	$0.18	$0.11	($0.03)
Net earnings per common share assuming dilution (1)	$0.94	$0.18	$0.11	($0.03)

_______________________

(1)Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.

2) Investments: Held-to-maturity Securities (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Available-for-sale Securities, Amortized Cost Basis

$ 338,629,810

Available-for-sale Securities

355,977,820

$ 0

Equity securities at estimated fair value

7,271,165

5,558,611

Mortgage loans on real estate and construction

236,694,546

186,465,069

Mortgage loans on real estate and construction, unamortized deferred loan fees, net

(2,391,567)

(1,275,030)

Mortgage loans on real estate and construction, allowance for losses

(1,453,037)

(1,347,972)

Mortgage loans on real estate and construction, Discount

(653,272)

Real estate held for investment, net of depreciation

102,756,946

121,558,222

Real estate held for sale

14,097,627

Policy loans

14,762,805

6,424,325

Insurance assignments

41,062,965

35,239,396

Federal Home Loan Bank stock

894,300

^[1]

2,548,700

^[2]

Other investments

4,973,225

3,497,762

Allowance for doubtful accounts

(1,448,026)

(1,092,528)

Total other investments and policy loans

60,245,269

46,617,655

Accrued investment income

4,833,232

3,566,146

Total investments

781,876,605

595,844,426

Total

Available-for-sale Securities, Amortized Cost Basis

338,629,810

232,078,723

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

18,085,841

7,529,330

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(737,831)

(4,857,195)

Available-for-sale Securities

355,977,820

234,750,858

US Treasury Securities

Available-for-sale Securities, Amortized Cost Basis

142,740,641

52,017,683

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

632,185

264,891

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(25,215)

(727,798)

Available-for-sale Securities

143,347,611

51,554,776

US States and Political Subdivisions Debt Securities

Available-for-sale Securities, Amortized Cost Basis

7,450,366

6,959,237

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

87,812

32,274

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(9,026)

(111,271)

Available-for-sale Securities

7,529,152

6,880,240

Corporate Debt Securities

Available-for-sale Securities, Amortized Cost Basis

156,599,184

157,639,860

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

16,768,449

7,002,864

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(463,413)

(3,704,137)

Available-for-sale Securities

172,904,220

160,938,587

Mortgage-backed Securities, Issued by US Government Sponsored Enterprises

Available-for-sale Securities, Amortized Cost Basis

31,475,280

15,358,746

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

597,395

227,398

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(240,177)

(308,864)

Available-for-sale Securities

31,832,498

15,277,280

Redeemable Preferred Stock

Available-for-sale Securities, Amortized Cost Basis

364,339

103,197

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

1,903

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(5,125)

Available-for-sale Securities

364,339

99,975

Industrial, miscellaneous and all other

Available-for-sale Equity Securities, Amortized Cost Basis

6,900,537

6,312,158

Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax

1,139,799

422,528

Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax

(769,171)

(1,176,075)

Equity securities at estimated fair value

7,271,165

5,558,611

Equity Securities

Available-for-sale Equity Securities, Amortized Cost Basis

6,900,537

6,312,158

Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax

1,139,799

422,528

Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax

(769,171)

(1,176,075)

Equity securities at estimated fair value

7,271,165

5,558,611

Residential Mortgage

Mortgage loans on real estate and construction

113,043,965

89,935,600

Real estate held for investment, net of depreciation

12,530,306

29,507,431

Real estate held for sale

8,021,306

Residential construction

Mortgage loans on real estate and construction

89,430,237

71,366,544

Commercial

Mortgage loans on real estate and construction

38,718,220

27,785,927

Commercial Loan

Real estate held for investment, net of depreciation

90,226,640

$ 92,050,791

Real estate held for sale

$ 6,076,321

[1]	Includes $894,300 of Membership stock and $-0- of Activity stock due to short-term borrowings
[2]	Includes $708,700 of Membership stock and $1,840,000 of Activity stock due to short-term borrowings

2) Investments (Details) - USD ($)	12 Months Ended
2) Investments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment	$ 338,629,810
Unrealized gains on fixed maturity securities available for sale	$ 17,315,770	$ 0
Average market value over amortized cost	98.90%	96.20%
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Period Increase (Decrease)	$ 0	$ 0
Debt Instrument, Unused Borrowing Capacity, Amount	57,727,738
Impairment losses on commercial real estate held for investment	2,768,979	0
Impairment losses on residential real estate held for investment	700,134	486,457
Residential Real Estate, Held-for-Investment
Foreclosed Residential Real Estate included in Residential Real Estate Held for Investment	$ 12,434,000	$ 23,532,000

2) Investments: Schedule of Unrealized Loss on Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
US Treasury Securities
Debt Securities, Held-to-maturity, Fair Value	$ 40,629,688	$ 40,625,915
US States and Political Subdivisions Debt Securities
Debt Securities, Held-to-maturity, Fair Value	3,062,889	4,680,774
Corporate Debt Securities
Debt Securities, Held-to-maturity, Fair Value	11,134,820	72,857,780
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Debt Securities, Held-to-maturity, Fair Value	13,769,212	4,395,361
Total unrealized losses
Debt Securities, Held-to-maturity, Fair Value	68,596,609	122,649,830
Redeemable Preferred Stock
Debt Securities, Held-to-maturity, Fair Value		90,000
Less Than 12 Months \| US Treasury Securities
Held-to-maturity Securities, Unrecognized Holding Loss	20,211	10,519
Debt Securities, Held-to-maturity, Fair Value	30,629,288	695,863
Less Than 12 Months \| US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	9,026	6,643
Debt Securities, Held-to-maturity, Fair Value	3,062,889	1,791,257
Less Than 12 Months \| Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	118,746	2,514,549
Debt Securities, Held-to-maturity, Fair Value	7,184,311	61,090,431
Less Than 12 Months \| Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Held-to-maturity Securities, Unrecognized Holding Loss	205,470	79,896
Debt Securities, Held-to-maturity, Fair Value	13,266,443	1,705,296
Less Than 12 Months \| Total unrealized losses
Held-to-maturity Securities, Unrecognized Holding Loss	353,453	2,616,732
Debt Securities, Held-to-maturity, Fair Value	54,142,931	65,372,847
Less Than 12 Months \| Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss		5,125
Debt Securities, Held-to-maturity, Fair Value		90,000
More Than 12 Months \| US Treasury Securities
Held-to-maturity Securities, Unrecognized Holding Loss	5,004	717,279
Debt Securities, Held-to-maturity, Fair Value	10,000,400	39,930,052
More Than 12 Months \| US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	0	104,628
Debt Securities, Held-to-maturity, Fair Value	0	2,889,517
More Than 12 Months \| Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	344,667	1,189,588
Debt Securities, Held-to-maturity, Fair Value	3,950,509	11,767,349
More Than 12 Months \| Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Held-to-maturity Securities, Unrecognized Holding Loss	34,707	228,968
Debt Securities, Held-to-maturity, Fair Value	502,769	2,690,065
More Than 12 Months \| Total unrealized losses
Held-to-maturity Securities, Unrecognized Holding Loss	384,378	2,240,463
Debt Securities, Held-to-maturity, Fair Value	14,453,678	57,276,983
More Than 12 Months \| Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss		0
Debt Securities, Held-to-maturity, Fair Value		0
Total \| US Treasury Securities
Held-to-maturity Securities, Unrecognized Holding Loss	25,215	727,798
Total \| US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	9,026	111,271
Total \| Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	463,413	3,704,137
Total \| Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Held-to-maturity Securities, Unrecognized Holding Loss	240,177	308,864
Total \| Total unrealized losses
Held-to-maturity Securities, Unrecognized Holding Loss	$ 737,831	4,857,195
Total \| Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss		$ 5,125

2) Investments: Investments Classified by Contractual Maturity Date (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale Securities, Amortized Cost Basis	$ 338,629,810
Available-for-sale Securities	355,977,820	$ 0
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Available-for-sale Securities, Amortized Cost Basis	31,475,280	15,358,746
Available-for-sale Securities	31,832,498	15,277,280
Redeemable Preferred Stock
Available-for-sale Securities, Amortized Cost Basis	364,339	103,197
Available-for-sale Securities	364,339	$ 99,975
Due in 2017
Available-for-sale Securities, Amortized Cost Basis	104,805,927
Available-for-sale Securities	104,845,243
Due in 2018 Through 2021
Available-for-sale Securities, Amortized Cost Basis	67,412,618
Available-for-sale Securities	69,126,500
Due in 2022 Through 2026
Available-for-sale Securities, Amortized Cost Basis	71,110,341
Available-for-sale Securities	76,249,550
Due After 2026
Available-for-sale Securities, Amortized Cost Basis	63,461,305
Available-for-sale Securities	$ 73,559,690

2) Investments: Gain (Loss) on Investments (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Fixed maturity securities held to maturity:

$ 728,367

$ 23,941,179

Held-to-maturity Securities

Gross Realized Gains

459,286

522,937

Gross Realized Losses

(162,649)

(669,303)

Equity Securities

Gains on securities sold

256,520

(173,413)

Unrealized Gains and Losses on securities held at end of period

1,086,116

(1,053,756)

Other Assets

Gross Realized Gains

^[1]

2,844,673

26,553,814

Gross Realized Losses

$ (3,755,579)

$ (1,239,100)

[1]	Includes a one-time gain of $22,252,000 from the sale of Dry Creek at East Village Apartments

2) Investments: Net carrying amount of held to maturity securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Held-to-maturity Securities
Net carrying amount for sales of securities	$ 4,950,041	$ 5,808,244

2) Investments: Schedule of Major categories of net investment income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Gross investment income	$ 56,520,356	$ 54,039,853
Investment Income, Investment Expense	(13,500,883)	(14,126,586)
Net investment income	43,019,473	39,913,267
Fixed Maturities
Gross investment income	10,372,559	10,041,349
Equity Securities
Gross investment income	309,918	233,555
Mortgage Loans Real Estate
Gross investment income	18,405,010	18,716,226
Real Estate
Gross investment income	8,782,959	8,375,257
Policy Student and Other Loans
Gross investment income	554,969	409,589
Insurance Assignments
Gross investment income	16,086,059	14,771,336
Other Investments
Gross investment income	184,439	227,930
Cash and Cash Equivalents
Gross investment income	$ 1,824,443	$ 1,264,611

2) Investments: Net Investment Income - Additional (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net investment income	$ 43,019,473	$ 39,913,267
Securities on deposit for regulatory authorities	9,633,818	$ 9,220,520
Cemeteries And Mortuaries
Net investment income	$ 448,754		$ 386,659

2) Investments: Commercial Real Estate Held for Investment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Bank and other loans payable	$ 217,572,612	$ 187,521,188
Commercial Real Estate
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Gross	87,815,000	84,880,000
Bank and other loans payable	$ 54,917,000	$ 52,237,000

2) Investments: Commercial Real Estate Investment (Details)

Dec. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 102,756,946

$ 121,558,222

Real estate held for sale

14,097,627

Commercial Real Estate, Held-for-Investment

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 90,226,640

$ 92,050,791

Square Footage

611,865

765,692

Commercial Real Estate, Held-for-Investment | Arizona

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

^[1]

$ 4,000

Commercial Real Estate, Held-for-Investment | Kansas

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 6,861,898

Square Footage

222,679

Commercial Real Estate, Held-for-Investment | Louisiana

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 6,009,079

$ 467,694

Square Footage

125,114

7,063

Commercial Real Estate, Held-for-Investment | Mississippi

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 2,951,478

$ 3,329,948

Square Footage

21,521

33,821

Commercial Real Estate, Held-for-Investment | New Mexico

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

^[1]

$ 7,000

Commercial Real Estate, Held-for-Investment | Texas

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

^[2]

300,000

Commercial Real Estate, Held-for-Investment | Utah

Real estate held for investment (net of accumulated depreciation of $12,788,739 and $16,739,578 for 2019 and 2018)

$ 81,266,083

^[3]

$ 81,080,251

Square Footage

465,230

502,129

Commercial Real Estate, Held-for-Sale

Square Footage

239,779

Real estate held for sale

$ 6,076,321

$ 0

Commercial Real Estate, Held-for-Sale | Arizona

Square Footage

Real estate held for sale

^[4]

$ 2,500

Commercial Real Estate, Held-for-Sale | Kansas

Square Footage

222,679

Real estate held for sale

$ 4,800,000

Commercial Real Estate, Held-for-Sale | Mississippi

Square Footage

12,300

Real estate held for sale

$ 318,322

Commercial Real Estate, Held-for-Sale | Texas

Square Footage

Real estate held for sale

^[2]

$ 300,000

Commercial Real Estate, Held-for-Sale | Nevada

Square Footage

4,800

Real estate held for sale

$ 655,499

[1]	Undeveloped Land
[2]	Improved commercial pad
[3]	Includes Center53 phase 1 completed in July 2017
[4]	Undeveloped land

2) Investments: Real Estate Owned and Occupied by the Company (Details)	Dec. 31, 2019
Corporate Offices, Life Insurance and Cemetery/Mortuary Operations
Approximate Square Footage	78,979
Square Footage Occupied by the Company	18.00%
Life Insurance and Mortgage Operations
Approximate Square Footage	39,157
Square Footage Occupied by the Company	73.00%
Life Insurance Operations, Flowood, MS
Approximate Square Footage	19,694
Square Footage Occupied by the Company	28.00%
Life Insurance Operations, Shreveport, LA
Approximate Square Footage	12,274
Square Footage Occupied by the Company	100.00%
Life Insurance Sales, Alexandria, LA
Approximate Square Footage	8,059
Square Footage Occupied by the Company	100.00%
Life Insurance Sales, Minden, LA
Approximate Square Footage	1,560
Square Footage Occupied by the Company	100.00%
Life Insurance Sales, Jena, LA
Approximate Square Footage	1,737
Square Footage Occupied by the Company	100.00%

2) Investments: Schedule of Allowance for loan losses as a contra-asset account (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss	$ 1,453,037	$ 1,347,972	$ 1,768,796
Allowance for credit losses, Charge-offs	(32,692)	(5,725)
Allowance for Credit Losses, Provision	137,757	(415,099)
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	195,993	74,185
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,257,044	1,273,787
Mortgage loans	241,192,422	189,088,071
Financing Receivable, Individually Evaluated for Impairment	8,895,926	3,638,824
Financing Receivable, Collectively Evaluated for Impairment	232,296,496	185,449,247
Commercial Loan
Financing Receivable, Allowance for Credit Loss	187,129	187,129	187,129
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	187,129	187,129
Mortgage loans	38,718,220	27,785,927
Financing Receivable, Individually Evaluated for Impairment	4,488,719	196,182
Financing Receivable, Collectively Evaluated for Impairment	34,229,501	27,589,745
Residential Mortgage
Financing Receivable, Allowance for Credit Loss	1,222,706	1,125,623	1,546,447
Allowance for credit losses, Charge-offs	(32,692)	(5,725)
Allowance for Credit Losses, Provision	129,775	(415,099)
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	195,993	74,185
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,026,713	1,051,438
Mortgage loans	113,043,965	89,935,600
Financing Receivable, Individually Evaluated for Impairment	3,752,207	2,939,651
Financing Receivable, Collectively Evaluated for Impairment	109,291,758	86,995,949
Residential construction
Financing Receivable, Allowance for Credit Loss	43,202	35,220	$ 35,220
Allowance for credit losses, Charge-offs		0
Allowance for Credit Losses, Provision	7,982
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	43,202	35,220
Mortgage loans	89,430,237	71,366,544
Financing Receivable, Individually Evaluated for Impairment	655,000	502,991
Financing Receivable, Collectively Evaluated for Impairment	$ 88,775,237	$ 70,863,553

2) Investments: Schedule of aging of mortgage loans (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Mortgage Loans during period

$ 241,192,422

$ 189,088,071

Mortgage Loans, Allowance for Loan Losses

(1,453,037)

(1,347,972)

Mortgage Loans, Unamortized deferred loan fees, net

(2,391,567)

(1,275,030)

Mortgage Loans, Unamortized deferred loan fees, net

(653,272)

Commercial Loan

Mortgage Loans during period

38,718,220

27,785,927

Mortgage Loans, Allowance for Loan Losses

(187,129)

Mortgage Loans, Unamortized deferred loan fees, net

(88,918)

32,003

Mortgage Loans, Unamortized deferred loan fees, net

(653,272)

Residential Mortgage

Mortgage Loans during period

113,043,965

89,935,600

Mortgage Loans, Allowance for Loan Losses

(1,222,706)

(1,125,623)

Mortgage Loans, Unamortized deferred loan fees, net

(1,567,581)

(862,411)

Mortgage Loans, Unamortized deferred loan fees, net

Residential construction

Mortgage Loans during period

89,430,237

71,366,544

Mortgage Loans, Allowance for Loan Losses

(43,202)

(35,220)

Mortgage Loans, Unamortized deferred loan fees, net

(735,068)

(444,622)

Mortgage Loans, Unamortized deferred loan fees, net

Past Due 30 to 59 Days

Mortgage Loans during period

12,481,296

14,487,804

Past Due 30 to 59 Days | Commercial Loan

Mortgage Loans during period

1,872,000

4,588,424

Past Due 30 to 59 Days | Residential Mortgage

Mortgage Loans during period

10,609,296

9,899,380

Past Due 30 to 59 Days | Residential construction

Mortgage Loans during period

Past Due 60 to 89 Days

Mortgage Loans during period

4,085,767

2,312,252

Past Due 60 to 89 Days | Commercial Loan

Mortgage Loans during period

Past Due 60 to 89 Days | Residential Mortgage

Mortgage Loans during period

4,085,767

2,312,252

Past Due 60 to 89 Days | Residential construction

Mortgage Loans during period

Past Due 90 or More Days

Mortgage Loans during period

^[1]

7,244,461

1,911,544

Past Due 90 or More Days | Commercial Loan

Mortgage Loans during period

^[1]

4,488,719

196,182

Past Due 90 or More Days | Residential Mortgage

Mortgage Loans during period

^[1]

2,100,742

1,715,362

Past Due 90 or More Days | Residential construction

Mortgage Loans during period

^[1]

655,000

In Foreclosure

Mortgage Loans during period

^[1]

1,651,465

1,727,280

In Foreclosure | Commercial Loan

Mortgage Loans during period

^[1]

In Foreclosure | Residential Mortgage

Mortgage Loans during period

^[1]

1,651,465

1,224,289

In Foreclosure | Residential construction

Mortgage Loans during period

^[1]

502,991

Total Past Due

Mortgage Loans during period

25,462,989

20,438,880

Total Past Due | Commercial Loan

Mortgage Loans during period

6,360,719

4,784,606

Total Past Due | Residential Mortgage

Mortgage Loans during period

18,447,270

15,151,283

Total Past Due | Residential construction

Mortgage Loans during period

655,000

502,991

Current

Mortgage Loans during period

215,729,433

168,649,191

Current | Commercial Loan

Mortgage Loans during period

32,357,501

23,001,321

Current | Residential Mortgage

Mortgage Loans during period

94,596,695

74,784,317

Current | Residential construction

Mortgage Loans during period

88,775,237

70,863,553

Net Mortgage Loans

Mortgage Loans during period

236,694,546

186,465,069

Net Mortgage Loans | Commercial Loan

Mortgage Loans during period

37,788,901

27,630,801

Net Mortgage Loans | Residential Mortgage

Mortgage Loans during period

110,253,678

87,947,566

Net Mortgage Loans | Residential construction

Mortgage Loans during period

$ 88,651,967

$ 70,886,702

[1]	There was not any interest income recognized on loans past due greater than 90 days or in foreclosure.

2) Investments: Schedule of Impaired Mortgage Loans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commercial Loan
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 4,488,719	$ 196,182
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	1,499,043	98,023
Commercial Loan \| Total
Impaired Financing Receivable, with Related Allowance, Recorded Investment	4,488,719	196,182
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	4,488,719	196,182
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,499,043	98,023
Residential Mortgage
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	2,254,189	1,612,164
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,367,151	2,423,135
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,498,018	1,327,487
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,498,018	1,327,487
Impaired Financing Receivable, Related Allowance	195,993	74,185
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	665,270	1,543,416
Residential Mortgage \| Total
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,752,207	2,939,651
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	3,752,207	2,939,651
Impaired Financing Receivable, Related Allowance	195,993	74,185
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	4,032,421	3,966,551
Residential construction
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	655,000	502,991
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	1,457,278	675,950
Residential construction \| Total
Impaired Financing Receivable, with Related Allowance, Recorded Investment	655,000	502,991
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	655,000	502,991
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	$ 1,457,278	$ 675,950

2) Investments: Schedule Of Credit Risk Of Mortgage Loans Based On Performance Status (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Mortgage loans	$ 241,192,422	$ 189,088,071
Performing Financing Receivable
Mortgage loans	232,296,496	185,449,247
Nonperforming Financing Receivable
Mortgage loans	8,895,926	3,638,824
Commercial Loan
Mortgage loans	38,718,220	27,785,927
Commercial Loan \| Performing Financing Receivable
Mortgage loans	34,229,501	27,589,745
Commercial Loan \| Nonperforming Financing Receivable
Mortgage loans	4,488,719	196,182
Residential Mortgage
Mortgage loans	113,043,965	89,935,600
Residential Mortgage \| Performing Financing Receivable
Mortgage loans	109,291,758	86,995,949
Residential Mortgage \| Nonperforming Financing Receivable
Mortgage loans	3,752,207	2,939,651
Residential construction
Mortgage loans	89,430,237	71,366,544
Residential construction \| Performing Financing Receivable
Mortgage loans	88,775,237	70,863,553
Residential construction \| Nonperforming Financing Receivable
Mortgage loans	$ 655,000	$ 502,991

2) Investments: Summary of Interest not accrued on non-performing mortgage loans (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Interest not accrued on non-performing loans	$ 203,000	$ 151,000

2) Investments: Schedule of Mortgage loans on a nonaccrual status (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 8,895,926	$ 3,638,824
Commercial
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	4,488,719	196,182
Residential Mortgage
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	3,752,207	2,939,651
Residential construction
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 655,000	$ 502,991

2) Investments: Schedule of Principal amounts due on mortgage loans held for investment by category (Details)	Dec. 31, 2019 USD ($)
Mortgage Loans Principal Amount due	$ 241,192,422
Residential Mortgage
Mortgage Loans Principal Amount due	113,043,965
Residential construction
Mortgage Loans Principal Amount due	89,430,237
Commercial Loan
Mortgage Loans Principal Amount due	38,718,220
Due in 1 Year
Mortgage Loans Principal Amount due	90,787,065
Due in 1 Year \| Residential Mortgage
Mortgage Loans Principal Amount due	6,234,913
Due in 1 Year \| Residential construction
Mortgage Loans Principal Amount due	60,376,688
Due in 1 Year \| Commercial Loan
Mortgage Loans Principal Amount due	24,175,464
Due in 2-5 Years
Mortgage Loans Principal Amount due	60,236,176
Due in 2-5 Years \| Residential Mortgage
Mortgage Loans Principal Amount due	27,161,628
Due in 2-5 Years \| Residential construction
Mortgage Loans Principal Amount due	29,053,549
Due in 2-5 Years \| Commercial Loan
Mortgage Loans Principal Amount due	4,020,999
Due Thereafter
Mortgage Loans Principal Amount due	90,169,181
Due Thereafter \| Residential Mortgage
Mortgage Loans Principal Amount due	79,647,424
Due Thereafter \| Residential construction
Mortgage Loans Principal Amount due	0
Due Thereafter \| Commercial Loan
Mortgage Loans Principal Amount due	$ 10,521,757

3) Loans Held For Sale: Aggregate fair value - Loans Held for Sale (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Aggregate Fair Value - Loans Held For Sale	$ 213,457,632	$ 136,210,853
Aggregate unpaid principal balance - Loans Held for Sale	206,417,122	131,663,946
Unrealized gain - Loans Held for Sale	$ 7,040,510	$ 4,546,907

3) Loans Held For Sale: Schedule of Mortgage Fee Income for Loans Held for Sale (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Change in fair value of loans held for sale	$ (2,498,097)	$ (3,736,209)
Mortgage fee income	131,976,082	116,185,853
Loans Held For Sale
Loan fees	28,660,966	27,429,237
Interest and Other Income	6,978,930	6,156,796
Secondary gains	93,581,956	80,416,718
Change in fair value of loan commitments	899,417	(404,773)
Change in fair value of loans held for sale	2,498,097	3,736,209
Provision for loan loss reserve	(643,284)	(1,148,334)
Mortgage fee income	$ 131,976,082	$ 116,185,853

3) Loans Held For Sale: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Details

Loan loss reserve, balance at start of period

$ 3,604,869

$ 2,571,524

Provision for current loan originations

^[1]

643,284

1,148,334

Loan loss reserve, Charge-offs and settlements

(201,865)

(114,989)

Loan loss reserve, balance at end of period

$ 4,046,288

$ 3,604,869

[1]	Included in Mortgage fee income

4) Receivables: Schedule of Receivables (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Trade contracts	$ 2,795,471	$ 2,816,225
Receivables from sales agents	2,962,571	3,079,688
Other Receivables	5,202,444	4,559,272
Accounts Receivable, before Allowance for Credit Loss	10,960,486	10,455,185
Accounts Receivable, Allowance for Credit Loss	1,724,156	1,519,842
Receivables (net of allowances for doubtful accounts of $1,724,156 and $1,519,842 for 2019 and 2018)	$ 9,236,330	$ 8,935,343

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Value of Business Acquired (Details) - USD ($)

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Details

Value of business acquired, balance at start of period

$ 9,876,647

$ 5,765,190

$ 6,588,759

Increase (Decrease) in value of business acquired

^[1]

4,962,831

Imputed interest on value of business acquired

^[2]

472,916

421,122

Value of business acquired - amortization

(1,320,456)

(1,244,691)

Shadow amortization included in other comprehensive income

(3,834)

Value of business acquired - net amortization charged to income

$ (845,000)

$ (916,000)

$ (985,000)

$ (1,065,000)

$ (1,194,000)

(851,374)

(823,569)

Value of business acquired, balance at start of period

$ 9,876,647

$ 5,765,190

[1]	See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company
[2]	Imputed interest at 7%.

5) Value of Business Acquired, Instangible Assets and Goodwill: Net amortization charged to income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Details
Value of business acquired - net amortization charged to income	$ 845,000	$ 916,000	$ 985,000	$ 1,065,000	$ 1,194,000	$ 851,374	$ 823,569

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Carrying Value of Intangible Asset (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Finite-Lived Intangible Assets, Accumulated Amortization

$ (98,222)

$ (34,611)

Finite-Lived Intangible Assets, Net

$ 1,401,778

855,389

Customer Lists

Finite-Lived Intangible Asset, Useful Life

15 years

Finite-Lived Intangible Assets, Gross

^[1]

$ 890,000

890,000

Trade Names

Finite-Lived Intangible Asset, Useful Life

15 years

Finite-Lived Intangible Assets, Gross

$ 610,000

^[2]

$ 0

[1]	See Note 20 regarding the acquisition of Beta Capital Corp
[2]	See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

5) Value of Business Acquired, Instangible Assets and Goodwill: Schedule of Goodwill by Segment (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Goodwill, Gross

$ 3,519,588

$ 2,765,570

Goodwill

3,519,588

2,765,570

Business Acquisition, Goodwill, Expected Tax Deductible Amount

754,018

Life Insurance Product Line

Goodwill, Gross

2,765,570

Goodwill

2,765,570

$ 2,765,570

Cemetery and Mortuary

Goodwill, Gross

754,018

Goodwill

$ 754,018

Business Acquisition, Goodwill, Expected Tax Deductible Amount

^[1]

$ 754,018

[1]	See Note 20 regarding the acquisition of Probst Family Funerals and Cremations and Heber Valley Funeral Home

5) Value of Business Acquired, Instangible Assets and Goodwill (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Details
Goodwill	$ 3,519,588	$ 2,765,570	$ 2,765,570

6) Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment, Gross	$ 34,119,285	$ 24,507,379
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(19,518,891)	(17,496,601)
Property and equipment, net	14,600,394	7,010,778
Land and Building
Property, Plant and Equipment, Gross	15,131,301	7,775,922
Office Equipment
Property, Plant and Equipment, Gross	$ 18,987,984	$ 16,731,457

6) Property and Equipment (Details) - USD ($)	12 Months Ended
6) Property and Equipment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Property, Plant and Equipment, Other, Accumulated Depreciation	$ 1,711,369	$ 1,867,001
Transfer of Cemetery Land and Improvements to Property and Equipment	$ 3,261,259	$ 0

7) Bank and Other Loans Payable: Summary of Bank Loans Payable (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Finance lease liabilities

$ 153,439

$ 0

Current Installment

165,219,632

Bank and other loans, excluding current installments

22,301,556

2.25A Note Payable

Bank loans payable

^[1]

2,659,769

2,817,775

4.27 Note Payable

Bank loans payable

^[2]

1,238,619

1,817,905

Prime Rate Note Payable

Bank loans payable

^[3]

4,000,000

4.40 Note Payable

Bank loans payable

^[4]

7,247,651

7,492,140

4.329 Note Payable

Bank loans payable

^[5]

1,896,450

1,929,725

2.5 Note Payable

Bank loans payable

^[6]

33,811,559

30,796,861

4.7865 Note Payable

Bank loans payable

^[7]

9,200,000

3.0A Loan Purchase Agreement

Bank loans payable

^[8]

88,509,536

60,438,156

3.0B Loan Purchase Agreement

Bank loans payable

^[9]

67,537,600

25,680,649

Other short-term borrowings

Bank loans payable

^[10]

1,250,000

47,250,000

Other loans payable

Bank loans payable

$ 67,989

$ 97,977

[1]	monthly principal payments of $13,167 plus interest, collateralized by real property with a book value of approximately $4,244,000, due September 2021
[2]	Monthly installments of $53,881 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2021
[3]	Monthly installments of $75,108 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2024
[4]	Monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,923,000, due January 2026
[5]	Monthly installments of $9,775 including principal and interest, collateralized by real property with a book value of approximately $3,261,000, due September 2025
[6]	Monthly LIBOR rate construction loan payable, collateralized by real property with a book value of approximately $49,378,000, due August 2020
[7]	Monthly iinstallments, collateralized by real property with a book value of approximately $18,009,000, due June 2028
[8]	1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures June 2020
[9]	1 month LIBOR rate plus 3% loan purchase agreement with a warehouse line availability of $100,000,000, matures September 2020
[10]	Federal Home Loan Bank and Revolving Lines of Credit

7) Bank and Other Loans Payable (Details) - USD ($)	12 Months Ended
7) Bank and Other Loans Payable (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Interest expense	$ 7,386,688	$ 6,956,707
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 7,284,078	$ 6,878,048
Revolving Line of Credit 1
Line of Credit Facility, Description	The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75%, secured by the capital stock of Security National Life and maturing September 30, 2020, renewable annually
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000
Revolving Line of Credit 2
Line of Credit Facility, Description	The Company also has a $2,500,000 revolving line-of-credit with a bank with interest payable at the overnight LIBOR rate plus 2.25% maturing September 30, 2020
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,500,000
Mortgage Warehouse Line of Credit 1
Line of Credit Facility, Description	The Company, through its subsidiary SecurityNational Mortgage, has a $100,000,000 line of credit with Wells Fargo Bank N.A. The agreement charges interest at the 1-Month LIBOR rate plus 2.1% and matures on June 16, 2020
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000,000
Mortgage Warehouse Line of Credit 2
Line of Credit Facility, Description	The Company, through its subsidiary SecurityNational Mortgage, also uses a line of credit with Texas Capital Bank N.A. This agreement with the bank allows SecurityNational Mortgage to borrow up to $100,000,000 for the sole purpose of funding mortgage loans. SecurityNational Mortgage is currently approved to borrow $30,000,000 of the $100,000,000 available. The agreement charges interest at the 1-Month LIBOR rate plus 3% and matures on September 9, 2020
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000,000

7) Bank and Other Loans Payable: Schedule of combined maturities of bank loans payable, lines of credit and notes and contracts payable (Details)	Dec. 31, 2019 USD ($)
Bank loans payable, lines of credit and notes and contracts payable	$ 217,572,612
Due in Year One
Bank loans payable, lines of credit and notes and contracts payable	192,985,602
Due in Year Two
Bank loans payable, lines of credit and notes and contracts payable	4,256,684
Due in Year Three
Bank loans payable, lines of credit and notes and contracts payable	1,151,703
Due in Year Four
Bank loans payable, lines of credit and notes and contracts payable	1,218,742
Due in Year Five
Bank loans payable, lines of credit and notes and contracts payable	1,247,461
Due Thereafter
Bank loans payable, lines of credit and notes and contracts payable	$ 16,712,420

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets: Schedule of the components of the cemetery perpetual care obligation (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Total Cemetery Perpetual Care Trust Investments	$ 5,952,984	$ 5,942,024
Cemetery Perpetual Care Trust Obligation	3,933,719	3,821,979
Trust investments in excess of trust obligations	2,019,265	2,120,045
Cash and Cash Equivalents
Total Cemetery Perpetual Care Trust Investments	1,306,740	1,557,506
Fixed Maturities
Total Cemetery Perpetual Care Trust Investments	975,673	990,390
Equity Securities
Total Cemetery Perpetual Care Trust Investments	1,605,451	483,353
Commercial Mortgage Loans Held for Investment
Total Cemetery Perpetual Care Trust Investments	524,000	0
Real Estate
Total Cemetery Perpetual Care Trust Investments	0	1,304,620
Note Receivables Eliminated in Consolidation
Total Cemetery Perpetual Care Trust Investments	$ 1,541,120	$ 1,606,155

8) Cemetery Perpetual Care Trust Investments and Obligation and Restricted Assets: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

$ 13,935,317

$ 10,981,562

Restricted Assets, Cash and Cash Equivalents

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

^[1]

8,674,214

7,179,225

Restricted Assets, Mutual Funds

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

677,795

Restricted Assets, Fixed Maturity Securities, Available for Sale

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

1,008,867

1,258,397

Restricted Assets, Equity Securities

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

1,976,480

66,878

Restricted Assets, Participating Interests in Mortgage Loans Held for Investment

Restricted assets (including $2,985,347 and $744,673 for 2019 and 2018 at estimated fair value)

$ 2,275,756

$ 1,799,267

[1]	Including cash and cash equivalents of $7,170,092 and $5,668,580 as of December 31, 2019 and 2018, respectively, for the life insurance and mortgage segments

9) Income Taxes: Summary of Income Tax Liability (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Current Income Tax Liability	$ 1,410,153	$ 473,800
Income Tax Liability	17,276,819	15,649,198
Income Taxes	$ 18,686,972	$ 16,122,998

9) Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Tax Liability	$ 17,276,819	$ 15,649,198
Approximate
Deferred Tax, Future policy benefits	(12,450,229)	(8,293,592)
Deferred Tax, Loan Loss Reserve	(1,053,256)	(938,496)
Deferred Tax, Unearned premium	(760,556)	(823,299)
Deferred Tax, Available for sale Securities	0	(366,279)
Deferred Tax Net Operating Loss	(438,420)	(593,272)
Deferred Tax, Deferred Compensation	(1,996,865)	(1,677,118)
Deferred Tax, Deposit Obligations	(619,633)	(610,769)
Deferred Tax, Other assets	(1,020,718)	(185,557)
Deferred Tax Assets, Valuation Allowance	2,439,394	0
Deferred Tax Assets, Net of Valuation Allowance	(15,900,283)	(13,488,382)
Deferred Tax, Deferred policy acquisition costs	15,536,717	15,255,960
Deferred Tax, Basis difference in property and equipment	3,638,512	4,309,162
Deferred Tax, Value of business acquired	2,074,096	1,210,690
Deferred Tax, Deferred Gains	5,169,104	6,267,373
Deferred Tax, Trusts	1,064,387	1,064,387
Deferred Tax, Tax on Unrealized Appreciation	5,694,286	1,030,008
Deferred Tax Liabilities, Net	33,177,102	29,137,580
Income Tax Liability	$ 17,276,819	$ 15,649,198

9) Income Taxes (Details) - USD ($)	12 Months Ended
9) Income Taxes (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Income Taxes Paid	$ 4,861,318	$ 5,701,565
Effective Income Tax Rate Reconciliation, Percent	21.90%	17.20%

9) Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Details
Federal Income Tax Expense (Benefit), Continuing Operations									$ 4,404,041	$ 6,933,145
State and Local Income Tax Expense (Benefit), Continuing Operations									504,272	166,567
Current Income Tax Expense (Benefit)									4,908,313	7,099,712
Deferred Federal Income Tax Expense (Benefit)									(1,551,725)	(1,838,947)
Deferred State and Local Income Tax Expense (Benefit)									(306,172)	(766,454)
Provision for deferred income taxes									(1,857,897)	(2,605,401)
Income Tax Expense (Benefit)	$ 262,378	$ 1,142,408	$ 1,143,789	$ 501,841	$ (889,013)	$ 198,052	$ 924,014	$ 4,261,258	$ 3,050,416	$ 4,494,311

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

9) Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount									$ 2,928,226	$ 5,497,882
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount									156,499	(473,911)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount									194,364	0
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount									(228,673)	(529,660)
Income Tax Expense (Benefit)	$ 262,378	$ 1,142,408	$ 1,143,789	$ 501,841	$ (889,013)	$ 198,052	$ 924,014	$ 4,261,258	$ 3,050,416	$ 4,494,311

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

9) Income Taxes: Unrecognized tax benefits, interest and penalties (Details)	Dec. 31, 2019 USD ($)
Details
Unrecognized Tax Benefits	$ 0

9) Income Taxes: Summary of Operating Loss Carryforwards (Details)	Dec. 31, 2019 USD ($)
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 1,832,828
Year of Expiration 2020
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	114,601
Year of Expiration 2021
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	17,101
Year of Expiration 2022
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	0
Year of Expiration 2023
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	0
Year of Expiration 2024
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	0
Year of Expiration Thereafter up through 2037
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	$ 1,701,126

10) Reinsurance, Commitments and Contingencies: Reinsurance (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Unaudited
Insurance assumed from other companies	$ 99,000,000	$ 103,000,000

10) Reinsurance, Commitments and Contingencies: Mortgage Loan Loss Settlements (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Amounts accrued for loan losses	$ 4,046,000	$ 3,605,000

10) Reinsurance, Commitments and Contingencies: Other Contingencies and Commitments (Details)	Dec. 31, 2019 USD ($)
Details
Commitments to fund new residential construction loans	$ 123,601,000
Commitments to fund new residential construction loans funded	$ 90,566,000

11) Retirement Plans: Noncontributory Employee Stock Ownership Plan (ESOP) (Details) - Employee Stock Ownership Plan ESOP	12 Months Ended
	Dec. 31, 2019 shares
Employee Stock Ownership Plan (ESOP), Plan Description	The Company and its subsidiaries have a noncontributory Employee Stock Ownership Plan (“ESOP”) for all eligible employees. Eligible employees are primarily those with more than one year of service, who work in excess of 1,000 hours per year. Contributions, which may be in cash or stock of the Company, are determined annually by the Board of Directors.
Common Class A
Employee Stock Ownership Plan (ESOP), Shares in ESOP	495,618
Common Class C
Employee Stock Ownership Plan (ESOP), Shares in ESOP	307,491

11) Retirement Plans: 401(k) Plans (Details) - USD ($)	12 Months Ended
11) Retirement Plans: 401(k) Plans (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Defined Contribution Plan, Description	The Company has three 401(k) savings plans covering all eligible employees, as defined above, which includes employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plans allow participants to make pretax contributions up to a maximum of $19,000 and $18,500 for the years 2019 and 2018, respectively or the statutory limits.
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount	$ 19,000	$ 18,500
Benefit plans funded with treasury stock	695,560	1,480,913
Safe Harbor Plan
Benefit plans funded with treasury stock	$ 695,560	$ 1,480,913

11) Retirement Plans: Deferred Compensation Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Scott M Quist
Present value of anticipated benefits	$ 660,000	$ 660,000
Deferred Compensation Arrangement with Individual, Recorded Liability	5,722,837	5,191,670
Former VP of Mortgage Operations and Pres of SecurityNational Mortgage
Present value of anticipated benefits	133,843	133,843
Deferred Compensation Arrangement with Individual, Recorded Liability	$ 803,055	$ 841,591
Deferred Compensation Plan
Deferred Compensation Arrangements, Overall, Description	Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan.

12) Capital Stock: Share-based Payment Arrangement, Option, Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Common Class A
Common Stock, Shares, Outstanding	16,107,779	15,304,798	14,535,577
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	32,517	38,473
Dividends	$ 767,178	$ 730,560
Conversion of Stock, Shares Issued	3,286	188
Common Class C
Common Stock, Shares, Outstanding	2,500,887	2,193,643	2,089,374
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	191,443	0
Dividends	$ 119,087	$ 104,457
Conversion of Stock, Shares Issued	(3,286)	(188)

12) Capital Stock: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2019

^[1]

Sep. 30, 2019

^[1]

Jun. 30, 2019

^[1]

Mar. 31, 2019

^[1]

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Details

Net Earnings (Loss)

$ 10,893,519

$ 21,686,079

Weighted Average Number of Shares Outstanding, Basic and Diluted

18,104,681

17,968,062

Employee stock options

$ 124,435

$ 220,603

Pro Forma Weighted Average Shares Outstanding, Diluted

124,435

220,603

Adjustedweighted average shares and assumed conversions

18,229,116

18,188,665

Earnings Per Share, Basic

$ 0.10

$ 0.20

$ 0.19

$ 0.11

$ (0.03)

^[1]

$ 0.11

^[1]

$ 0.18

^[1]

$ 0.95

^[1]

$ 0.60

^[2]

$ 1.21

^[2]

Earnings Per Share, Diluted

$ 0.10

$ 0.20

$ 0.19

$ 0.11

$ (0.03)

$ 0.11

$ 0.18

$ 0.94

$ 0.60

^[2]

$ 1.19

^[2]

[1]	Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends
[2]	Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

12) Capital Stock (Details) - shares	12 Months Ended
12) Capital Stock (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	382,289	862,915

13) Stock Compensation Plans (Details) - USD ($)	12 Months Ended
13) Stock Compensation Plans (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Share-based Payment Arrangement, Amount Capitalized	$ 256,996	$ 237,123
Unrecognized Compensation Expense	230,446
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 271,220	$ 123,154

13) Stock Compensation Plans: Schedule of Assumptions Used (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares
All Plans - December 6 2019
Weighted Average Fair Value of Each Option	$ 0.96
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend \| $	$ 0.0500
Underlying stock FMV	$ 5.19
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	32.79%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.64%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 9 months 29 days
All Plans - January 17 2019
Weighted Average Fair Value of Each Option	$ 1.12
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend \| $	$ 0.0500
Underlying stock FMV	$ 4.98
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	36.04%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.56%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 3 months 22 days
All Plans - December 1 2017
Weighted Average Fair Value of Each Option	$ 1.12
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend \| $	$ 0.0500
Underlying stock FMV	$ 4.91
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	34.61%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.86%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 6 months 22 days

13) Stock Compensation Plans: Schedule of Activity of Stock Option Plans (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Common Class A

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number

1,086,053

1,011,274

880,426

Adjustment for the effect of stock dividends

51,018

48,168

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted

81,000

142,000

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised

(45,834)

(42,211)

Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period

(11,405)

(17,109)

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number

1,002,603

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

205,664

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

^[1]

$ 1,291,602

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

$ 1,259,786

Common Class C

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number

594,132

577,280

523,603

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price

$ 5.36

$ 5.15

^[1]

Adjustment for the effect of stock dividends

28,295

27,491

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted

180,000

90,000

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised

(191,443)

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price

$ (5.36)

$ (5.15)

^[1]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period

(63,814)

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number

405,132

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price

$ 5.40

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

5 years 9 months 25 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term

4 years 6 months 14 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

^[1]

$ 2,177,223

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

$ 159,028

[1]	The Company used a stock price of $5.57 as of December 31, 2019 to derive intrinsic value

14) Statutory Financial Information and Dividend Limitations: Schedule of statutory accounting practices (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Statutory Accounting Practices, Statutory Net Income Amount

$ 17,424,138

$ 19,011,833

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

74,140,040

56,154,618

Security National Life Insurance

Statutory Accounting Practices, Statutory Net Income Amount

3,589,552

17,963,528

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

49,390,181

47,184,064

Kilpatrick Life Insurance Company

Statutory Accounting Practices, Statutory Net Income Amount

^[1]

12,752,100

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

15,208,071

First Guaranty Insurance Company

Statutory Accounting Practices, Statutory Net Income Amount

1,078,733

1,042,683

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

6,352,670

5,786,369

Memorial Insurance Company of America

Statutory Accounting Practices, Statutory Net Income Amount

(107)

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

1,088,559

1,088,880

Southern Security Life Insurance Company Inc

Statutory Accounting Practices, Statutory Net Income Amount

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

1,588,396

1,586,915

Trans-Western Life Insurance Company

Statutory Accounting Practices, Statutory Net Income Amount

3,773

5,460

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

$ 512,163

$ 508,390

[1]	Includes 12 months even though Kilpatrick Life Insurance Company wasn't acquired by the Company until December 2019

14) Statutory Financial Information and Dividend Limitations (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)
First Guaranty Insurance Company
Cash dividend paid	$ 500,000
Kilpatrick Life Insurance Company
Cash dividend paid	$ 3,000,000

15) Business Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net investment income									$ 43,019,473	$ 39,913,267
Total revenues	$ 77,742,254	$ 75,379,659	$ 68,445,182	$ 61,493,835	$ 61,454,399	$ 67,223,093	$ 68,865,126	$ 82,076,109	283,060,930	279,618,727
Commissions									56,762,891	50,291,352
Personnel									64,221,270	67,368,952
Advertising									4,784,558	4,602,591
Rent and rent related									7,055,456	7,605,375
Depreciation on property and equipment									1,711,369	1,867,001
Costs related to funding mortgage loans									6,278,954	6,423,944
Cost of goods and services sold - cemeteries and mortuaries									2,878,169	2,158,895
Benefits and Expenses	75,614,143	70,619,837	63,821,339	59,061,676	62,835,219	65,011,295	64,702,895	60,888,928
Income tax expense	(262,378)	$ (1,142,408)	$ (1,143,789)	$ (501,841)	889,013	$ (198,052)	$ (924,014)	$ (4,261,258)	(3,050,416)	(4,494,311)
Net Earnings (Loss)									10,893,519	21,686,079
Goodwill	3,519,588				2,765,570				3,519,588	2,765,570	$ 2,765,570
Life Insurance Product Line
Revenue from customers									81,860,610	75,928,910
Investment Income, Net									41,610,831	38,720,365
Gain (Loss) on Investments									138,330	21,396,282
Other Income									2,128,961	1,636,901
Net investment income									4,455,034	3,972,532
Total revenues									130,193,766	141,654,990
Death, surrenders and other policy benefits									44,911,805	39,185,087
Increase (Decrease) in Future Policy Benefit Reserves									23,568,497	24,332,088
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	14,199,152				11,270,579				14,199,152	11,270,579
Commissions									3,632,780	3,242,745
Personnel									20,311,591	18,489,063
Advertising									595,118	566,154
Rent and rent related									451,380	321,701
Depreciation on property and equipment									477,247	400,686
Costs related to funding mortgage loans									0	0
Administrative costs, intersegment									412,853	402,213
Other General Expense									11,769,097	10,094,626
Interest Expense, intersegment									490,756	481,587
Interest Expense, Other									2,808,081	2,744,841
Cost of goods and services sold - cemeteries and mortuaries									0	0
Benefits and Expenses									123,628,357	111,531,370
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									6,565,409	30,123,620
Income tax expense									(1,085,848)	(5,275,662)
Net Earnings (Loss)									5,479,561	24,847,958
Identifiable Assets	1,110,641,526				928,251,387				1,110,641,526	928,251,387
Goodwill	2,765,570				2,765,570				2,765,570	2,765,570
Cemetery and Mortuary
Revenue from customers									15,296,235	13,726,518
Investment Income, Net									579,995	283,343
Gain (Loss) on Investments									530,098	2,301,342
Other Income									95,197	128,797
Net investment income									443,548	429,312
Total revenues									16,945,073	16,869,312
Death, surrenders and other policy benefits									0	0
Increase (Decrease) in Future Policy Benefit Reserves									0	0
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	435,425				360,767				435,425	360,767
Commissions									1,084,079	1,222,642
Personnel									5,177,810	4,773,866
Advertising									368,173	333,852
Rent and rent related									47,525	33,138
Depreciation on property and equipment									428,633	372,469
Costs related to funding mortgage loans									0	0
Administrative costs, intersegment									180,594	182,009
Other General Expense									3,241,023	3,046,902
Interest Expense, intersegment									154,615	173,807
Interest Expense, Other									288,768	294,535
Cost of goods and services sold - cemeteries and mortuaries									2,878,169	2,158,895
Benefits and Expenses									14,284,814	12,952,882
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									2,660,259	3,916,430
Income tax expense									(649,144)	(946,820)
Net Earnings (Loss)									2,011,115	2,969,610
Identifiable Assets	81,014,182				90,639,130				81,014,182	90,639,130
Goodwill	754,018				0				754,018	0
Mortgage
Revenue from customers									131,976,082	116,185,853
Investment Income, Net									828,647	909,559
Gain (Loss) on Investments									59,939	243,555
Other Income									7,956,005	8,157,302
Net investment income									508,637	503,794
Total revenues									141,329,310	126,000,063
Death, surrenders and other policy benefits									0	0
Increase (Decrease) in Future Policy Benefit Reserves									0	0
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	0				0				0	0
Commissions									52,046,032	45,825,965
Personnel									38,731,869	44,106,023
Advertising									3,821,267	3,702,585
Rent and rent related									6,556,551	7,250,536
Depreciation on property and equipment									805,489	1,093,846
Costs related to funding mortgage loans									6,278,954	6,423,944
Administrative costs, intersegment									544,463	531,370
Other General Expense									19,912,641	17,873,471
Interest Expense, intersegment									3,623,938	3,134,652
Interest Expense, Other									4,289,839	3,917,331
Cost of goods and services sold - cemeteries and mortuaries									0	0
Benefits and Expenses									136,611,043	133,859,723
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									4,718,267	(7,859,660)
Income tax expense									(1,315,424)	1,728,171
Net Earnings (Loss)									3,402,843	(6,131,489)
Identifiable Assets	249,970,323				159,680,649				249,970,323	159,680,649
Goodwill	0				0				0	0
Intercompany Eliminations
Revenue from customers									0	0
Investment Income, Net									0	0
Gain (Loss) on Investments									0	0
Other Income									0	0
Net investment income									(5,407,219)	(4,905,638)
Total revenues									(5,407,219)	(4,905,638)
Death, surrenders and other policy benefits									0	0
Increase (Decrease) in Future Policy Benefit Reserves									0	0
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	0				0				0	0
Commissions									0	0
Personnel									0	0
Advertising									0	0
Rent and rent related									0	0
Depreciation on property and equipment									0	0
Costs related to funding mortgage loans									0	0
Administrative costs, intersegment									(1,137,910)	(1,115,592)
Other General Expense									0	0
Interest Expense, intersegment									(4,269,309)	(3,790,046)
Interest Expense, Other									0	0
Cost of goods and services sold - cemeteries and mortuaries									0	0
Benefits and Expenses									(5,407,219)	(4,905,638)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									0	0
Income tax expense									0	0
Net Earnings (Loss)									0	0
Identifiable Assets	(110,701,544)				(130,525,613)				(110,701,544)	(130,525,613)
Goodwill	0				0				0	0
Consolidated
Revenue from customers									229,132,927	205,841,281
Investment Income, Net									43,019,473	39,913,267
Gain (Loss) on Investments									728,367	23,941,179
Other Income									10,180,163	9,923,000
Net investment income									0	0
Total revenues									283,060,930	279,618,727
Death, surrenders and other policy benefits									44,911,805	39,185,087
Increase (Decrease) in Future Policy Benefit Reserves									23,568,497	24,332,088
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	14,634,577				11,631,346				14,634,577	11,631,346
Commissions									56,762,891	50,291,352
Personnel									64,221,270	67,368,952
Advertising									4,784,558	4,602,591
Rent and rent related									7,055,456	7,605,375
Depreciation on property and equipment									1,711,369	1,867,001
Costs related to funding mortgage loans									6,278,954	6,423,944
Administrative costs, intersegment									0	0
Other General Expense									34,922,761	31,014,999
Interest Expense, intersegment									0	0
Interest Expense, Other									7,386,688	6,956,707
Cost of goods and services sold - cemeteries and mortuaries									2,878,169	2,158,895
Benefits and Expenses									269,116,995	253,438,337
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest									13,943,935	26,180,390
Income tax expense									(3,050,416)	(4,494,311)
Net Earnings (Loss)									10,893,519	21,686,079
Identifiable Assets	1,330,924,487				1,048,045,553				1,330,924,487	1,048,045,553
Goodwill	$ 3,519,588				$ 2,765,570				$ 3,519,588	$ 2,765,570

17) Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a recurring basis (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Fair Value, Inputs, Level 1

Available-for-sale Securities

$ 0

Equity securities at estimated fair value

7,271,165

$ 5,558,611

Loans Held-for-sale, Fair Value Disclosure

Restricted assets of cemeteries and mortuaries

^[1]

Restricted assets of cemeteries and mortuaries

^[2]

1,976,480

Cemetery perpetual care trust investments

^[1]

483,353

^[2]

Cemetery perpetual care trust investments

^[2]

1,605,451

Derivatives - interest rate lock commitments

^[3]

Assets, Fair Value Disclosure, Recurring

10,853,096

6,786,637

Derivatives - bank loan interest rate swaps, Call Options

^[4]

(62,265)

(4,629)

Derivatives - bank loan interest rate swaps, Put Options

^[4]

(22,282)

(296,053)

Derivatives - bank loan interest rate swaps, Interest rate lock commitments

^[4]

Obligations, Fair Value Disclosure

(84,547)

(300,682)

Restricted assets

^[2]

744,673

Fair Value, Inputs, Level 2

Available-for-sale Securities

352,761,438

Equity securities at estimated fair value

Loans Held-for-sale, Fair Value Disclosure

Restricted assets of cemeteries and mortuaries

^[1]

1,008,867

Restricted assets of cemeteries and mortuaries

^[2]

Cemetery perpetual care trust investments

975,673

^[1]

^[2]

Cemetery perpetual care trust investments

^[2]

Derivatives - interest rate lock commitments

^[3]

Assets, Fair Value Disclosure, Recurring

354,745,978

Derivatives - bank loan interest rate swaps, Call Options

^[4]

Derivatives - bank loan interest rate swaps, Put Options

^[4]

Derivatives - bank loan interest rate swaps, Interest rate lock commitments

^[4]

Obligations, Fair Value Disclosure

Restricted assets

^[2]

Fair Value, Inputs, Level 3

Available-for-sale Securities

3,216,382

Equity securities at estimated fair value

Loans Held-for-sale, Fair Value Disclosure

213,457,632

Restricted assets of cemeteries and mortuaries

^[1]

Restricted assets of cemeteries and mortuaries

^[2]

Cemetery perpetual care trust investments

^[1]

^[2]

Cemetery perpetual care trust investments

^[2]

Derivatives - interest rate lock commitments

^[3]

2,722,580

1,969,967

Assets, Fair Value Disclosure, Recurring

219,396,594

138,180,820

Derivatives - bank loan interest rate swaps, Call Options

^[4]

Derivatives - bank loan interest rate swaps, Put Options

^[4]

Derivatives - bank loan interest rate swaps, Interest rate lock commitments

^[4]

(231,347)

(378,151)

Obligations, Fair Value Disclosure

(231,347)

(378,151)

Restricted assets

^[2]

Available-for-sale Securities

355,977,820

Equity securities at estimated fair value

7,271,165

5,558,611

Loans Held-for-sale, Fair Value Disclosure

213,457,632

Restricted assets of cemeteries and mortuaries

^[1]

1,008,867

Restricted assets of cemeteries and mortuaries

^[2]

1,976,480

Cemetery perpetual care trust investments

975,673

^[1]

483,353

^[2]

Cemetery perpetual care trust investments

^[2]

1,605,451

Derivatives - interest rate lock commitments

^[3]

2,722,580

1,969,967

Assets, Fair Value Disclosure, Recurring

584,995,668

144,967,457

Derivatives - bank loan interest rate swaps, Call Options

^[4]

(62,265)

(4,629)

Derivatives - bank loan interest rate swaps, Put Options

^[4]

(22,282)

(296,053)

Derivatives - bank loan interest rate swaps, Interest rate lock commitments

^[4]

(231,347)

(378,151)

Obligations, Fair Value Disclosure

$ (315,894)

(678,833)

Restricted assets

^[2]

$ 744,673

[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

17) Fair Value of Financial Instruments: Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)
Loans Held For Sale
Fair Value Balance	$ 213,457,632
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average	103.00%
Loans Held For Sale \| Minimum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	98.00%
Loans Held For Sale \| Maximum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	109.00%
Net Derivatives Loan Commitments
Fair Value Balance	$ 2,491,233
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average	81.00%
Net Derivatives Loan Commitments \| Minimum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	1.00%
Net Derivatives Loan Commitments \| Maximum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	92.00%
Fixed maturity securities available for sale
Fair Value Balance	$ 3,216,382
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Weighted Average	107.98%
Fixed maturity securities available for sale \| Minimum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	95.02%
Fixed maturity securities available for sale \| Maximum
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Asset And Liability, Range of Inputs	115.80%

17) Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Transfer of loans held for sale to mortgage loans held for investment

$ 31,881,851

$ 10,827,797

Net Derivatives Loan Commitments

Fair Value Balance

2,491,233

1,591,816

$ 1,996,589

Originations

Sales

Transfer of loans held for sale to mortgage loans held for investment

Transfer from fixed maturity securities held to maturity

Fair Value, Gains (Losses) included in earnings

^[1]

899,417

(404,773)

Loans Held For Sale

Fair Value Balance

213,457,632

136,210,853

$ 133,414,188

Originations

2,606,839,175

2,194,607,543

Sales

(2,580,875,055)

(2,259,145,473)

Transfer of loans held for sale to mortgage loans held for investment

(31,881,851)

(10,827,797)

Fair Value, Gains (Losses) included in earnings

^[1]

83,164,510

78,162,392

Fixed maturity securities available for sale

Fair Value Balance

3,216,382

$ 0

Originations

Sales

Transfer of loans held for sale to mortgage loans held for investment

Transfer from fixed maturity securities held to maturity

3,216,382

Fair Value, Gains (Losses) included in earnings

^[1]

$ 0

[1]	As a component of mortgage fee income on the consolidated statements of earnings

17) Fair Value of Financial Instruments: Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Inputs, Level 1
Impaired mortgage loans held for investment	$ 0	$ 0
Impaired real estate held for investment	0	0
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2
Impaired mortgage loans held for investment	0	0
Impaired real estate held for investment	0	0
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 3
Impaired mortgage loans held for investment	1,302,025	1,253,302
Impaired real estate held for investment	8,375,884	1,611,384
Assets, Fair Value Disclosure, Nonrecurring	9,677,909	2,864,686
Impaired mortgage loans held for investment	1,302,025	1,253,302
Impaired real estate held for investment	8,375,884	1,611,384
Assets, Fair Value Disclosure, Nonrecurring	$ 9,677,909	$ 2,864,686

17) Fair Value of Financial Instruments: Schedule of Financial Instruments Carried at Other Than Fair Value (Details) - USD ($)

Dec. 31, 2019

Dec. 31, 2018

Residential Mortgage

Carrying Value

$ 110,253,678

$ 87,947,566

Estimated Carrying Value

115,320,638

92,503,553

Residential construction

Carrying Value

88,651,967

70,886,702

Estimated Carrying Value

88,651,967

70,886,702

Commercial Loan

Carrying Value

37,788,901

27,630,801

Estimated Carrying Value

39,289,462

28,359,205

Mortgage Loans Net

Carrying Value

236,694,546

186,465,069

Estimated Carrying Value

243,262,067

191,749,460

Policy Loan

Carrying Value

14,762,805

6,424,325

Estimated Carrying Value

14,762,805

6,424,325

Insurance Assignments

Carrying Value

^[1]

39,614,939

34,146,868

Estimated Carrying Value

^[1]

39,614,939

34,168,868

Restricted Assets 1

Carrying Value

2,275,756

^[2]

1,258,397

^[3]

Estimated Carrying Value

2,289,679

^[2]

1,271,687

^[3]

Cemetery Perpetual Care Trust Investments

Carrying Value

524,000

^[2]

990,390

^[3]

Estimated Carrying Value

536,553

^[2]

983,410

^[3]

Mortgage Servicing Rights

Carrying Value

17,155,529

20,016,822

Estimated Carrying Value

22,784,571

28,885,316

Bank And Other Loans Payable

Carrying Value

(217,572,612)

(187,521,188)

Estimated Carrying Value

(217,572,612)

(187,521,188)

Policyholder Account Balances

Carrying Value

^[4]

(45,154,180)

(46,479,853)

Estimated Carrying Value

^[4]

(41,828,469)

(37,348,289)

Future Policy Benefits Annuities

Carrying Value

^[4]

(113,579,830)

(98,137,615)

Estimated Carrying Value

^[4]

(117,304,614)

(97,641,146)

Fixed Maturity Securities Held To Maturity

Carrying Value

232,078,723

Estimated Carrying Value

234,750,858

Restricted Assets 2

Carrying Value

^[5]

1,799,268

Estimated Carrying Value

^[5]

1,810,185

Fair Value, Inputs, Level 1 | Residential Mortgage

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Residential construction

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Commercial Loan

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Mortgage Loans Net

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Policy Loan

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Insurance Assignments

Estimated Carrying Value

^[1]

Fair Value, Inputs, Level 1 | Restricted Assets 1

Estimated Carrying Value

^[2]

^[3]

Fair Value, Inputs, Level 1 | Cemetery Perpetual Care Trust Investments

Estimated Carrying Value

^[2]

^[3]

Fair Value, Inputs, Level 1 | Mortgage Servicing Rights

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Bank And Other Loans Payable

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Policyholder Account Balances

Estimated Carrying Value

^[4]

Fair Value, Inputs, Level 1 | Future Policy Benefits Annuities

Estimated Carrying Value

^[4]

Fair Value, Inputs, Level 1 | Fixed Maturity Securities Held To Maturity

Estimated Carrying Value

Fair Value, Inputs, Level 1 | Restricted Assets 2

Estimated Carrying Value

^[5]

Fair Value, Inputs, Level 2 | Residential Mortgage

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Residential construction

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Commercial Loan

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Mortgage Loans Net

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Policy Loan

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Insurance Assignments

Estimated Carrying Value

^[1]

Fair Value, Inputs, Level 2 | Restricted Assets 1

Estimated Carrying Value

^[2]

1,271,687

^[3]

Fair Value, Inputs, Level 2 | Cemetery Perpetual Care Trust Investments

Estimated Carrying Value

^[2]

983,410

^[3]

Fair Value, Inputs, Level 2 | Mortgage Servicing Rights

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Bank And Other Loans Payable

Estimated Carrying Value

Fair Value, Inputs, Level 2 | Policyholder Account Balances

Estimated Carrying Value

^[4]

Fair Value, Inputs, Level 2 | Future Policy Benefits Annuities

Estimated Carrying Value

^[4]

Fair Value, Inputs, Level 2 | Fixed Maturity Securities Held To Maturity

Estimated Carrying Value

229,668,844

Fair Value, Inputs, Level 2 | Restricted Assets 2

Estimated Carrying Value

^[5]

Fair Value, Inputs, Level 3 | Residential Mortgage

Estimated Carrying Value

115,320,638

92,503,553

Fair Value, Inputs, Level 3 | Residential construction

Estimated Carrying Value

88,651,967

70,886,702

Fair Value, Inputs, Level 3 | Commercial Loan

Estimated Carrying Value

39,289,462

28,359,205

Fair Value, Inputs, Level 3 | Mortgage Loans Net

Estimated Carrying Value

243,262,067

191,749,460

Fair Value, Inputs, Level 3 | Policy Loan

Estimated Carrying Value

14,762,805

6,424,325

Fair Value, Inputs, Level 3 | Insurance Assignments

Estimated Carrying Value

^[1]

39,614,939

34,168,868

Fair Value, Inputs, Level 3 | Restricted Assets 1

Estimated Carrying Value

2,289,679

^[2]

^[3]

Fair Value, Inputs, Level 3 | Cemetery Perpetual Care Trust Investments

Estimated Carrying Value

536,553

^[2]

^[3]

Fair Value, Inputs, Level 3 | Mortgage Servicing Rights

Estimated Carrying Value

22,784,571

28,885,316

Fair Value, Inputs, Level 3 | Bank And Other Loans Payable

Estimated Carrying Value

(217,572,612)

(187,521,188)

Fair Value, Inputs, Level 3 | Policyholder Account Balances

Estimated Carrying Value

^[4]

(41,828,469)

(37,348,289)

Fair Value, Inputs, Level 3 | Future Policy Benefits Annuities

Estimated Carrying Value

^[4]

$ (117,304,614)

(97,641,146)

Fair Value, Inputs, Level 3 | Fixed Maturity Securities Held To Maturity

Estimated Carrying Value

5,082,014

Fair Value, Inputs, Level 3 | Restricted Assets 2

Estimated Carrying Value

^[5]

$ 1,810,185

[1]	Included in other investments and policy loans on the consolidated balance sheets
[2]	Mortgage loans held for investment
[3]	Fixed maturity securities held to maturity
[4]	Included in future policy benefits and unpaid claims on the consolidated balance sheets
[5]	Participation in mortgage loans held for investment

18) Accumulated Other Comprehensive Income: Schedule of Changes in accumulated other comprehensive income (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Details

Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)

$ 0

$ (603,170)

Unrealized gains on fixed maturity securities available for sale

17,315,770

Reclassification adjustment for net realized gains in net income

Net unrealized gains before taxes

17,315,770

Tax expense

(3,636,311)

Net Unrealized Gain (Loss)

13,679,459

Unrealized gains on restricted assets

^[1]

35,550

Potential Tax Expense

(8,856)

Net Unrealized Gain (Loss) including Derivatie Bank Loans and Tax benefit

26,694

Unrealized gains on restricted assets

^[1]

29,904

Unrealized gains for foreign currency translation adjustments

972

(3,761)

Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax

(243)

938

Other comprehensive income balance, net

729

(2,823)

Other comprehensive income changes

$ 13,729,337

$ (605,993)

[1]	Fixed maturity securities available for sale

18) Accumulated Other Comprehensive Income: Accumulated Balances of Other Comprehensive Income (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Details

Increase (Decrease) in Unrealized gains on fixed maturity securities available-for-sale

$ 13,679,459

Unrealized gains on fix maturity securities available-for-sale

13,679,459

Increase Dececrease in Unrealized gains on restricted assets

^[1]

26,694

Unrealized gains on restricted assets

^[1]

26,694

Increase Dececrease in Unrealized gains on cemetery perpetual care trust investments

^[1]

22,455

Unrealized gains on cemetery perpetual care trust investments

^[1]

22,455

Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax

(2,094)

$ (2,823)

Foreign currency translation adjustments

729

(2,823)

Other comprehensive income (loss), Balance

13,726,514

(2,823)

$ 603,170

Increase (Decrease) in Other comprehensive income (loss), Balance

$ 13,729,337

(605,993)

Unrealized net gains on available-for-sale securities and trust investments

$ 603,170

Increase (Decrease) in Unrealized net gains on available- for-sale securities and trust investments

^[2]

$ (603,170)

[1]	Fixed maturity securities available for sale
[2]	Cumulative effect adjustment upon adoption of new accounting standard (ASU 2016-01)

19) Derivative Instruments: Schedule of Fair Values and Notional Amounts of Derivative Instruments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Loan Commitments
Derivative, Notional Amount	$ 224,202,514	$ 93,758,218
Derivative Asset, Notional Amount	2,722,580	1,969,967
Derivative Liability, Notional Amount	231,347	378,151
Call Options
Derivative, Notional Amount	1,813,500	805,500
Derivative Asset, Notional Amount	0	0
Derivative Liability, Notional Amount	62,265	4,629
Put Options
Derivative, Notional Amount	1,573,100	4,861,700
Derivative Asset, Notional Amount	0	0
Derivative Liability, Notional Amount	22,282	296,053
Derivative, Notional Amount	225,326,654	99,425,418
Derivative Asset, Notional Amount	2,722,580	1,969,967
Derivative Liability, Notional Amount	$ 315,894	$ 678,833

19) Derivative Instruments: Schedule of Gains and Losses on Derivatives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Details
Gain (Loss) on Derivatives, Loan Commitments	$ 899,417	$ (404,773)
Gain (Loss) on Derivatives, Call and put options	$ 626,208	$ 187,786

20) Acquisitions: Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Cash received for reinsurance assumed

$ 158,358,594

$ 0

Coinsurance Agreement

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other investments and policy loans

9,124,459

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Real estate held for investment

2,850,000

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Mortgage loans held for investment

200,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

12,305,717

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Future policy benefits and unpaid claims

(165,404,970)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other

(5,259,341)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities

(170,664,311)

Cash received for reinsurance assumed

158,358,594

Kilpatrick Life Insurance Co

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Real estate held for investment

2,708,557

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Mortgage loans held for investment

8,011,660

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

221,887,552

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Future policy benefits and unpaid claims

(189,071,407)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other

(7,870,944)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities

(198,107,612)

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Fixed maturity securities, available for sale

22,766,520

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Fixed maturity securities, held to maturity

16,436

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other investments

446,655

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Accrued investment income

183,527

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Investments

34,133,355

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

6,900,654

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables

^[1]

5,407,736

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Receivables from reinsurers

^[1]

168,105,064

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment

1,498,245

Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Value of business acquired

4,962,831

Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets

167,344

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other

712,323

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable

(283,304)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities

(881,957)

Fair Value of Assets Acquired

23,779,940

Fair Value of Net Assets Acquired / Consideration Paid, Net of Cash Acquired

16,879,286

Probst Family Funerals and Cremations and Heber Valley Funeral Home

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

3,318,823

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities

(3,176)

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

53,859

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables

13,620

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment

2,475,526

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other

21,800

Fair Value of Assets Acquired

3,315,647

Fair Value of Net Assets Acquired / Consideration Paid, Net of Cash Acquired

3,261,788

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net

754,018

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt

(3,176)

Beta Capital Corp

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets

3,405,783

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other

890,000

Fair Value of Assets Acquired

3,405,783

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Investments - Insurance Assignments

$ 2,515,783

[1]	Receivable from reinsurers of $162,907,008 and receivables, net of $5,000,000 were settled with the recapture of the coinsurance agreement by Kilpatrick Life from Security National Life

20) Acquisitions (Details) - USD ($)	3 Months Ended								12 Months Ended
20) Acquisitions (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Total revenues	$ 77,742,254	$ 75,379,659	$ 68,445,182	$ 61,493,835	$ 61,454,399	$ 67,223,093	$ 68,865,126	$ 82,076,109	$ 283,060,930	$ 279,618,727
Net earnings									10,893,519	$ 21,686,079
Kilpatrick Life Insurance Co
Total revenues									1,461,011
Net earnings									848,031
Probst Family Funerals and Cremations and Heber Valley Funeral Home
Total revenues									796,992
Net earnings									$ 97,400

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

21) Mortgage Servicing Rights: Schedule of mortgage servicing rights (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Details

Mortgage servicing rights, net

$ 17,155,529

$ 20,016,822

$ 21,376,937

Mortgage servicing rights, additions resulting from loan sales

4,194,502

3,922,816

Amortization of MSR's

^[1]

(7,055,795)

(5,282,931)

Mortgage Servicing Rights

17,155,529

20,016,822

Estimated fair value of MSRs

$ 22,784,571

$ 28,885,316

[1]	Included in other expenses on the consolidated statements of earnings

21) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights, Future Amortization Expense (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
2020	$ 2,999,452
2021	2,376,277
2022	1,971,249
2023	1,631,010
2024	1,359,492
Thereafter	6,818,049
Mortgage Servicing Rights	$ 17,155,529	$ 20,016,822

21) Mortgage Servicing Rights: Schedule of Other Revenues (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Revenue, Net	$ 7,577,641	$ 7,880,470
Contractual Servicing Fees
Other Revenue, Net	7,212,164	7,561,226
Late Fees
Other Revenue, Net	$ 365,477	$ 319,244

21) Mortgage Servicing Rights: Summary of Unpaid Principal Balances of the Servicing Portfolio (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Details
Servicing Unpaid Principal Balance	$ 2,804,139,415	$ 2,941,231,563

21) Mortgage Servicing Rights: Assumptions used in determining MSR value (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Details
Prepayment Speeds	15.30%	11.70%
Average Life in Years of MSR	5.27	6.33
Discount Rate	9.51	9.51

22) Future Policy Benefits and Unpaid Claims: Schedule of Liability for Future Policy Benefits, by Product Segment (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Future policy benefits and unpaid claims	$ 825,600,918	$ 620,399,714
Receivable from Reinsurers	15,747,768	10,820,102
Net future policy benefits and unpaid claims	809,853,150	609,579,612
Life Insurance Product Line
Future policy benefits and unpaid claims	654,585,723	466,232,621
Receivable from Reinsurers	11,040,398	6,702,328
Fixed Annuity
Future policy benefits and unpaid claims	113,579,831	98,137,615
Receivable from Reinsurers	4,038,007	4,078,666
Policyholder Account Balances
Future policy benefits and unpaid claims	45,154,180	46,479,853
Accident and Health Insurance Product Line
Future policy benefits and unpaid claims	667,428	482,693
Receivable from Reinsurers	90,113	0
Other Policyholder Funds
Future policy benefits and unpaid claims	4,530,227	4,431,296
Reported but unpaid claims
Future policy benefits and unpaid claims	4,891,922	3,365,872
Receivable from Reinsurers	569,250	33,108
Incurred but not reported claims
Future policy benefits and unpaid claims	2,191,607	1,269,764
Receivable from Reinsurers	$ 10,000	$ 6,000

23) Revenues From Contracts With Customers (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred pre-need cemetery and mortuary contract revenues	$ 12,607,978	$ 12,508,625
Revenue Included in Opening Contract Liability	3,558,103	2,623,903
Contract Liability
Deferred pre-need cemetery and mortuary contract revenues	12,607,978	12,508,625	$ 12,873,068
Pre-need merchandise and services	12,325,437	12,175,943	12,620,596
At-need specialty merchandise	282,541	327,302	236,572
Pre-need land sales	$ 0	$ 5,380	$ 15,900

23) Revenues From Contracts With Customers: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Receivables (net of allowances for doubtful accounts of $1,724,156 and $1,519,842 for 2019 and 2018)

$ 9,236,330

$ 8,935,343

Deferred pre-need cemetery and mortuary contract revenues

12,607,978

12,508,625

Receivables

Receivables (net of allowances for doubtful accounts of $1,724,156 and $1,519,842 for 2019 and 2018)

^[1]

2,778,879

2,816,225

$ 3,608,379

Increase (Decrease) in Accounts Receivable

^[1]

(37,346)

(792,154)

Contract Asset

Deferred pre-need cemetery and mortuary contract revenues

Increase (Decrease) in Deferred Revenue

Contract Liability

Deferred pre-need cemetery and mortuary contract revenues

12,607,978

12,508,625

$ 12,873,068

Increase (Decrease) in Deferred Revenue

$ 99,353

$ (364,443)

[1]	Included in Receivables, net on the consolidated balance sheets

23) Revenues From Contracts With Customers: Opening and Closing Balances of the Contract Assets and Contract Liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred pre-need cemetery and mortuary contract revenues	$ 12,607,978	$ 12,508,625
Contract Liability
Pre-need merchandise and services	12,325,437	12,175,943	$ 12,620,596
At-need specialty merchandise	282,541	327,302	236,572
Pre-need land sales	0	5,380	15,900
Deferred pre-need cemetery and mortuary contract revenues	$ 12,607,978	12,508,625	12,873,068
Contract Asset
Pre-need merchandise and services		0	0
Deferred pre-need cemetery and mortuary contract revenues		$ 0	$ 0

23) Revenues From Contracts With Customers: Revenues of the Cemetery and Mortuary Contracts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net mortuary and cemetery sales	$ 15,296,235	$ 13,726,518
Major Goods Or Services Lines, at Need
Net mortuary and cemetery sales	12,334,777	10,391,976
Major Goods Or Services Lines, Pre Need
Net mortuary and cemetery sales	2,961,458	3,334,542
Timing Of Revenue Recognition, Goods Transferred At A Point In Time
Net mortuary and cemetery sales	10,133,723	9,100,851
Timing Of Revenue Recognition, Services Transferred At A Point In Time
Net mortuary and cemetery sales	$ 5,162,512	$ 4,625,667

23) Revenues From Contracts With Customers: Schedule of Contract Costs Included in Deferred Policy and Pre-Need Contract Acquisition Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred plicy and pre-need contract acquisition costs	$ 94,701,920	$ 89,362,096
Contract Costs
Pre-need merchandise and services	3,590,266	3,575,032
At-need specialty merchandise	10,688	15,926
Pre-need land sales	0	1,237
Deferred plicy and pre-need contract acquisition costs	$ 3,600,954	$ 3,592,195

24. Leases: Schedule of Lease Cost Recognized in Earnings (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Details

Finance Lease, Right-of-Use Asset, Amortization

^[1]

$ 38,351

Finance Lease, Interest Expense

^[2]

9,001

Operating Lease, Cost

^[3]

5,706,490

Short-term Lease, Cost

^[3],[4]

233,318

Sublease Income

^[3]

(663,242)

Lease, Cost

5,323,918

Operating Cash Flows from Operating Leases

5,567,761

Operating Cash Flows from Finance Leases

9,001

Financing Cash Flows from Finance Leases

95,931

Right-of-use assets obtained in exchange for operating lease liabilities

16,544,406

$ 0

Right-of-use assets obtained in exchange for finance lease liabilities

$ 252,763

$ 0

[1]	Included in Depreciation on property and equipment on the consolidated statements of earnings
[2]	Included in Interest expense on the consolidated statements of earnings
[3]	Included in Rent and rent related expenses on the consolidated statements of earnings
[4]	Includes leases with a term of 12 months or less

24. Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2019 USD ($)
Present value of lease liabilities	$ 11,405,976
Finance Leases
2020	62,756
2021	45,086
2022	32,646
2023	25,408
2024	2,542
Thereafter	0
Total undiscounted lease payments	168,438
Less: Discount on cash flows	(14,999)
Present value of lease liabilities	153,439
Operating Leases
2020	4,241,547
2021	2,932,404
2022	1,780,183
2023	1,383,538
2024	1,061,520
Thereafter	2,919,074
Total undiscounted lease payments	14,318,266
Less: Discount on cash flows	(2,912,290)
Present value of lease liabilities	$ 11,405,976

24. Leases: Right-of-Use Assets and Lease Liabilities TextBlock (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Details
Operating Lease, Right-of-Use Asset	$ 11,267,247
Present value of lease liabilities	11,405,976
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	248,565
Finance Lease, Right-of-Use Asset, Accumulated Amortization	(98,351)
Right-of-Use Assets, Gross	150,214
Finance lease liabilities	$ 153,439	$ 0

25) Quarterly Financial Data (unaudited): Quarterly Financial Information (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Details

Total revenues

$ 77,742,254

$ 75,379,659

$ 68,445,182

$ 61,493,835

$ 61,454,399

$ 67,223,093

$ 68,865,126

$ 82,076,109

$ 283,060,930

$ 279,618,727

Benefits and Expenses

75,614,143

70,619,837

63,821,339

59,061,676

62,835,219

65,011,295

64,702,895

60,888,928

Earnings (loss) before income taxes

2,128,111

4,759,822

4,623,843

2,432,159

(1,380,820)

2,211,798

4,162,231

21,187,181

Income tax expense

(262,378)

(1,142,408)

(1,143,789)

(501,841)

889,013

(198,052)

(924,014)

(4,261,258)

$ (3,050,416)

$ (4,494,311)

Net Earnings

$ 1,865,733

$ 3,617,414

$ 3,480,054

$ 1,930,318

$ (491,807)

$ 2,013,746

$ 3,238,217

$ 16,925,923

Earnings Per Share, Basic

$ 0.10

^[1]

$ 0.20

^[1]

$ 0.19

^[1]

$ 0.11

^[1]

$ (0.03)

^[1]

$ 0.11

^[1]

$ 0.18

^[1]

$ 0.95

^[1]

$ 0.60

^[2]

$ 1.21

^[2]

Earnings Per Share, Diluted

$ 0.10

^[1]

$ 0.20

^[1]

$ 0.19

^[1]

$ 0.11

^[1]

$ (0.03)

$ 0.11

$ 0.18

$ 0.94

$ 0.60

^[2]

$ 1.19

^[2]

[1]	Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends
[2]	Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

+ References

+ Details