UTAH
|
87-0345941
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
5300
South 360 West, Suite 250 Salt Lake City, Utah
|
84123
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code:
|
(801)
264-1060
|
Title
of Each Class
|
Name
of Each Exchange on Which Registered
|
Class
A Common Stock, $2.00 Par Value
|
Nasdaq
National Market
|
Class
C Common Stock, $0.20 Par Value
|
None
|
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||
Life
Insurance
|
||||||||||||||||||||||||||||
Policy/Cert. Count
|
||||||||||||||||||||||||||||
as
of December 31
|
407,673 | 415,656 | (3 | ) | 405,224 | (2 | ) | 401,441 | 413,753 | (1 | ) | |||||||||||||||||
Insurance
in force as of
|
||||||||||||||||||||||||||||
December
31
|
||||||||||||||||||||||||||||
(omitted
000)
|
$ | 2,617,946 | $ | 2,454,409 | (3 | ) | $ | 2,434,733 | (2 | ) | $ | 2,620,694 | $ | 3,216,946 | (1 | ) | ||||||||||||
Premiums
Collected
|
||||||||||||||||||||||||||||
(omitted
000)
|
$ | 38,399 |
(3)
|
$ | 36,063 | (2 | ) | $ | 32,173 | $ | 31,619 |
(1)
|
$ | 27,275 |
|
(1)
|
Includes
the purchase of Memorial Insurance Company of America on December 29,
2005.
|
|
(2)
|
Includes
the purchase of Capital Reserve Life Insurance Company on December 17,
2007.
|
|
(3)
|
Includes
the purchase of Southern Security Life Insurance Company on December 18,
2008.
|
Age
Nearest
|
Non-Medical
|
|||
Birthday
|
Limits
|
|||
0-50
|
$75,000
|
|||
51-up
|
Medical
information
|
|||
required
(APS or exam)
|
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||
Annuities
Policy/Cert.
|
||||||||||||||||||||||||
Count
as of December 31
|
12,366 | 11,411 | (3 | ) | 11,175 | (2 | ) | 8,475 | 8,904 | (1 | ) | |||||||||||||
Deposits
Collected (omitted 000)
|
$ 6,737 | $ 8,959 | (2 | )(3) | $ 4,080 | $ 3,977 | (1 | ) | $ 2,416 |
|
(1)
|
Includes
the purchase of Memorial Insurance Company of America on December 29,
2005.
|
|
(2)
|
Includes
the purchase of Capital Reserve Life Insurance Company on December 17,
2007.
|
|
(3)
|
Includes
the purchase of Southern Security Life Insurance Company on December 18,
2008.
|
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Accident
and Health Policy/Cert.
|
||||||||||||||||||||
Count
as of December 31
|
13,436 | 14,060 | 14,845 | 15,340 | 14,934 | |||||||||||||||
Premiums
Collected (omitted 000)
|
$ 219 | $ 232 | $ 257 | $ 274 | $ 285 |
Location
|
Function
|
Owned
Leased
|
Approximate
Square
Footage
|
5300
South 360 West
|
Corporate
Headquarters
|
Owned
(1)
|
27,200
|
Salt
Lake City, Utah
|
|||
755
Rinehart Road
|
Mortgage
Sales
|
Owned
(2)
|
5,000
|
Lake
Mary, Florida
|
|||
3935
I-55 South, Frontage Road
|
Insurance
Operations
|
Owned
(3)
|
12,000
|
Jackson,
Mississippi
|
|||
175
Jester Parkway
|
Fast
Funding Operations
|
Leased
(4)
|
5,000
|
Rainbow
City, Alabama
|
|||
NEC
Glendale Avenue & 91st Avenue, Suite 110
|
Mortgage
Sales
|
Leased
(5)
|
2,050
|
Glendale,
Arizona
|
|||
4634
Town Center Blvd., Suite 314
|
Mortgage
Sales
|
Leased
(6)
|
600
|
Eldorado
Hills, California
|
|||
12150
Tributary Point Dr., Suite 140
|
Mortgage
Sales
|
Leased
(7)
|
2,400
|
Gold
River, California
|
|||
16835
West Bernardo Drive, Suite 150
|
Mortgage
Sales
|
Leased
(8)
|
2,500
|
San
Diego, California
|
|||
27433
Tourney Road, Suites 130, 220
|
Mortgage
Sales
|
Leased
(9)
|
3,600
|
Santa
Clarita, California
|
|||
550
West Cienega, Suite H
|
Mortgage
Sales
|
Leased
(10)
|
2,600
|
San
Dimas, California
|
|||
8950
Dr. MLK St. N., Suite 103
|
Mortgage
Sales
|
Leased
(11)
|
3,500
|
St.
Petersburg, Florida
|
|||
970
No. Kalaheo Ave, Suite A-214
|
Mortgage
Sales
|
Leased
(12)
|
700
|
Kailua,
Hawaii
|
|||
45
South Park Blvd., Suite 45
|
Mortgage
Sales
|
Leased
(13)
|
4,800
|
Greenwood,
Indiana
|
|||
6900
College Blvd., Suite 950
|
Mortgage
Sales
|
Leased
(14)
|
2,800
|
Overland
Park, Kansas
|
|||
4045
NW 64th
Street, Suite 500
|
Mortgage
Sales
|
Leased
(15)
|
3,500
|
Oklahoma
City, Oklahoma
|
|||
999
Southwest Disk Drive, Suite 104
|
Mortgage
Sales
|
Leased
(16)
|
1,600
|
Bend,
Oregon
|
Location
|
Function
|
Owned
Leased
|
Approximate
Square
Footage
|
4800
SW Griffith Drive, Suite 250
|
Mortgage
Sales
|
Leased
(17)
|
2,600
|
Beaverton,
Oregon
|
|||
5000
Plaza on the Lake Drive, Suite 250
|
Mortgage
Sales
|
Leased
(18)
|
9,500
|
Austin,
Texas
|
|||
6805
Capitol of Texas Highway, Suite 315
|
Mortgage
Sales
|
Leased
(19)
|
2,300
|
Austin,
Texas 78731
|
|||
12201
Merit Drive, Suite 400
|
Mortgage
Sales
|
Leased
(20)
|
4,600
|
Dallas,
Texas
|
|||
5353
W. Sam Houston Parkway N., Suite 170
|
Mortgage
Sales
|
Leased
(21)
|
5,400
|
Houston,
Texas
|
|||
613
Northwest Loop 410, Suite 685
|
Mortgage
Sales
|
Leased
(22)
|
2,300
|
San
Antonio, Texas
|
|||
6955
and 6975 South Union Park,
|
Mortgage
Sales
|
Leased
(23)
|
7,000
|
Suites
100 and 150
|
|||
Midvale,
Utah
|
|||
5247
Greenpine Drive
|
Insurance
Operations
|
Owned
(24)
|
13,400
|
Murray,
Utah
|
|||
5251
Green Street, Suite 350
|
Mortgage
Sales
|
Owned
(25)
|
5,800
|
Salt
Lake City, Utah
|
|||
6740
South 1300 East, Suite 100
|
Mortgage
Sales
|
Leased
(26)
|
3,200
|
Salt
Lake City, Utah
|
|||
970
East Murray-Holladay Rd., Suite 603
|
Mortgage
Sales
|
Leased
(27)
|
6,400
|
Salt
Lake City, Utah
|
|||
5525
South 900 East, Suite 210
|
Mortgage
Sales
|
Leased
(28)
|
2,000
|
Salt
Lake City, Utah
|
|||
474
West 800 North, Suite 102
|
Mortgage
Sales
|
Leased
(29)
|
2,000
|
Orem,
Utah
|
|||
378
East 720 South
|
Mortgage
Sales
|
Leased
(30)
|
2,000
|
Orem,
Utah
|
|||
6584
North Creekside Lane, Suite 150
|
Mortgage
Sales
|
Leased
(31)
|
200
|
Park
City, Utah
|
|||
1244
North Main Street, Suite 203
|
Mortgage
Sales
|
Leased
(32)
|
1,200
|
Tooele,
Utah
|
|||
3500-188th
Street, S.W. Suite 275
|
Mortgage
Sales
|
Leased
(33)
|
1,000
|
Lynnwood,
Washington
|
(1)
|
The
Company leases an additional 3,000 square feet of the facility to an
unrelated third party for approximately $24,000 per year, under a lease
expiring December 2014.
|
(2)
|
The
Company leases an additional 11,400 square feet of the facility to
unrelated third parties for approximately $237,000 per year, under leases
expiring at various dates after 2009.
|
(3)
|
The
building is located on 104 undeveloped acres.
|
(4)
|
The
Company leases this facility for $14,400 per year. The lease expires in
July 2010.
|
(5)
|
The
Company leases this facility for $44,300 per year. The lease expires in
May 2015.
|
(6)
|
The
Company leases this facility for $27,200 per year. The lease expires in
July 2011.
|
(7)
|
The
Company leases this facility for $49,400 per year. The lease expires in
June 2012.
|
(8)
|
The
Company leases this facility for $66,700 per year. The lease expires in
December 2011.
|
(9)
|
The
Company leases this facility for $119,000 per year. The lease expires in
April 2012.
|
(10)
|
The
Company leases this facility for $31,700 per year. The lease expires in
February 2011.
|
(11)
|
The
Company leases this facility for $86,700 per year. The lease expires in
March 2011.
|
(12)
|
The
Company leases this facility for $18,000 per year. The lease expires in
September 2012.
|
(13)
|
The
Company leases this facility for $69,800 per year, but subleases
approximately half for $30,000 per year. The lease expires in April
2012.
|
(14)
|
The
Company leases this facility for $55,100 per year. The lease expires in
January 2013.
|
(15)
|
The
Company leases this facility for $51,300 per year. The lease expires in
March 2010.
|
(16)
|
The
Company leases this facility for $42,100 per year. The lease expires in
January 2012.
|
(17)
|
The
Company leases this facility for $40,400 per year. The lease expires in
May 2009.
|
(18)
|
The
Company leases this facility for $180,600 per year. The lease expires in
July 2011.
|
(19)
|
The
Company leases this facility for $49,000 per year. The lease expires in
September 2011.
|
(20)
|
The
Company leases this facility for $80,700 per year. The lease expires in
August 2012.
|
(21)
|
The
Company leases this facility for $64,300 per year. The lease expires in
April 2013.
|
(22)
|
The
Company leases this facility for $48,500 per year. The lease expires in
October 2012.
|
(23)
|
The
Company leases these facilities for $167,900 per year. The leases expire
November 2011 and June 2010.
|
(24)
|
The
Company leases an additional 117,500 square feet of the facility to
unrelated third parties for approximately $647,000 per year, under leases
expiring at various dates after December 2009.
|
(25)
|
The
Company leases an additional 12,200 square feet of the facility to an
unrelated third party for approximately $192,000 per year, under a lease
expiring May 2014.
|
(26)
|
The
Company leases this facility for $70,900 per year. The lease expires in
August 2012.
|
(27)
|
The
Company leases this facility for $79,500 per year, with a month-to-month
lease.
|
(28)
|
The
Company leases this facility for $37,000 per year, with a month-to-month
lease.
|
(29)
|
The
Company leases this facility for $33,800 per year. The lease expires in
February 2010.
|
(30)
|
The
Company leases this facility for $30,000 per year, with a month-to-month
lease.
|
(31)
|
The
Company leases this facility for $4,800 per year, with a month-to-month
lease.
|
(32)
|
The
Company leases this facility for $26,400 per year. The lease expires in
October 2010.
|
(33)
|
The
Company leases this facility for $18,600 per year. The lease expires in
June 2010.
|
Net
Saleable Acreage
|
||||||
Name
of Cemetery
|
Location
|
Date
Acquired
|
Developed
Acreage (1)
|
Total
Acreage (1)
|
Acres
Sold as Cemetery Spaces (2)
|
Total
Available Acreage (1)
|
Memorial
Estates, Inc.
|
||||||
Lakeview
Cemetery
|
1640
East Lakeview Drive
Bountiful,
Utah
|
1973
|
7
|
40
|
6
|
34
|
Mountain
View Cemetery
|
3115
East 7800 South
Salt
Lake City, Utah
|
1973
|
15
|
54
|
14
|
40
|
Redwood
Cemetery (4)
|
6500
South Redwood Road
West
Jordan, Utah
|
1973
|
27
|
78
|
28
|
50
|
Cottonwood
Mortuary, Inc.
|
||||||
Deseret
Memorial Inc.
Lake
Hills Cemetery (3)
|
10055
South State Street
Sandy,
Utah
|
1991
|
9
|
41
|
4
|
37
|
Holladay
Memorial Park (3)(4)
|
4900
South Memory Lane
Holladay,
Utah
|
1991
|
5
|
14
|
4
|
10
|
California
Memorial Estates
|
||||||
Singing
Hills Memorial Park
|
2800
Dehesa Road
El
Cajon, California
|
1995
|
8
|
35
|
4
|
31
|
|
(1)
|
The
acreage represents estimates of acres that are based upon survey reports,
title reports, appraisal reports or the Company’s inspection of the
cemeteries.
|
|
(2)
|
Includes
spaces sold for cash and installment contract
sales.
|
|
(3)
|
As
of December 31, 2009, there were mortgages of approximately $1,110,000
collateralized by the property and facilities at Deseret Mortuary,
Cottonwood Mortuary, Holladay Memorial Park, and Lake Hills
Cemetery.
|
|
(4)
|
These
cemeteries include two granite
mausoleums.
|
Date
|
Viewing
|
Square
|
|||
Name of
Mortuary
|
Location
|
Acquired
|
Room(s)
|
Chapel(s)
|
Footage
|
Memorial
Mortuary
|
5850
South 900 East
|
||||
Murray,
Utah
|
1973
|
3
|
1
|
20,000
|
|
Memorial
Estates, Inc.:
|
|||||
Redwood
Mortuary(3)
|
6500
South Redwood Rd.
|
||||
West
Jordan, Utah
|
1973
|
2
|
1
|
10,000
|
|
Mountain
View Mortuary(3)
|
3115
East 7800 South
|
||||
Salt
Lake City, Utah
|
1973
|
2
|
1
|
16,000
|
|
Lakeview
Mortuary(3)
|
1640
East Lakeview Dr.
|
||||
Bountiful,
Utah
|
1973
|
0
|
1
|
5,500
|
|
Paradise
Chapel Funeral Home
|
3934
East Indian School Road
|
||||
Phoenix,
Arizona
|
1989
|
2
|
1
|
9,800
|
|
Deseret
Memorial, Inc.:
|
36
East 700 South
|
||||
Deseret
Mortuary(1)
|
Salt
Lake City, Utah
|
1991
|
2
|
2
|
36,300
|
Lakehills
Mortuary(3)
|
10055
South State St.
|
||||
Sandy,
Utah
|
1991
|
2
|
1
|
18,000
|
|
Cottonwood
Mortuary(1)(3)
|
4670
South Highland Dr.
|
||||
Holladay,
Utah
|
1991
|
2
|
1
|
14,500
|
|
Greer-Wilson
Funeral Home
|
5921
West Thomas Road
|
||||
Phoenix,
Arizona
|
1995
|
2
|
2
|
25,000
|
|
Crystal
Rose Funeral Home(2)
|
9155
W. VanBuren
|
||||
Tolleson,
Arizona
|
1997
|
0
|
1
|
9,000
|
|
(1)
|
As
of December 31, 2009, there were mortgages of approximately $1,110,000,
collateralized by the property and facilities at Deseret Mortuary,
Cottonwood Mortuary, Holladay Memorial Park and Lake Hills
Cemetery.
|
|
(2)
|
As
of December 31, 2009, there was a mortgage of approximately $77,000,
collateralized by the property and facilities of Crystal Rose Funeral
Home.
|
|
(3)
|
These
funeral homes also provide burial niches at their respective
locations.
|
Price Range
(1)
|
||||||||
High
|
Low
|
|||||||
Period (Calendar
Year)
|
||||||||
2008
|
||||||||
First
Quarter
|
$ | 4.20 | $ | 2.86 | ||||
Second
Quarter
|
$ | 4.02 | $ | 2.75 | ||||
Third
Quarter
|
$ | 3.73 | $ | 2.00 | ||||
Fourth
Quarter
|
$ | 2.30 | $ | 1.09 | ||||
2009
|
||||||||
First
Quarter
|
$ | 2.12 | $ | 1.19 | ||||
Second
Quarter
|
$ | 3.51 | $ | 1.14 | ||||
Third
Quarter
|
$ | 3.76 | $ | 2.16 | ||||
Fourth
Quarter
|
$ | 3.79 | $ | 2.86 | ||||
2010
|
||||||||
First
Quarter (through March 26, 2010)
|
$ | 3.75 | $ | 3.00 |
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
|
SNFC
|
100
|
121
|
183
|
142
|
64
|
138
|
S
& P 500
|
100
|
103
|
117
|
121
|
75
|
92
|
S
& P Insurance
|
100
|
113
|
123
|
113
|
46
|
52
|
2009
|
2008(1)
|
2007(2)
|
2006(3)
|
2005
|
||||||||||||||||
Revenue
|
|
|||||||||||||||||||
Premiums
|
$ | 38,413,000 | $ | 35,981,000 | $ | 32,263,000 | $ | 30,776,000 | $ | 27,170,000 | ||||||||||
Net
investment income
|
21,035,000 | 28,104,000 | 31,956,000 | 23,246,000 | 19,387,000 | |||||||||||||||
Net
mortuary and cemetery sales
|
11,974,000 | 12,726,000 | 13,189,000 | 12,123,000 | 10,839,000 | |||||||||||||||
Realized
(losses) gains on investments
|
897,000 | (1,734,000 | ) | 1,008,000 | 891,000 | 74,000 | ||||||||||||||
Mortgage
fee income
|
144,861,000 | 143,412,000 | 130,472,000 | 85,113,000 | 71,859,000 | |||||||||||||||
Other
|
1,415,000 | 1,015,000 | 860,000 | 381,000 | 621,000 | |||||||||||||||
Total
revenue
|
218,595,000 | 219,504,000 | 209,748,000 | 152,530,000 | 129,950,000 | |||||||||||||||
Expenses
|
||||||||||||||||||||
Policyholder
benefits
|
35,920,000 | 32,904,000 | 29,742,000 | 27,319,000 | 24,477,000 | |||||||||||||||
Amortization
of deferred
|
||||||||||||||||||||
policy
acquisition costs
|
7,161,000 | 6,010,000 | 5,571,000 | 4,125,000 | 3,031,000 | |||||||||||||||
Selling,
general and administrative expenses
|
163,491,000 | 169,973,000 | 155,504,000 | 105,728,000 | 90,690,000 | |||||||||||||||
Interest
expense
|
3,326,000 | 7,449,000 | 13,271,000 | 6,141,000 | 4,921,000 | |||||||||||||||
Cost
of goods and services of
|
||||||||||||||||||||
the
mortuaries and cemeteries
|
2,349,000 | 2,437,000 | 2,537,000 | 2,322,000 | 2,103,000 | |||||||||||||||
Total
benefits and expenses
|
212,247,000 | 218,773,000 | 206,625,000 | 145,635,000 | 125,222,000 | |||||||||||||||
Income
before income tax expense
|
6,348,000 | 731,000 | 3,123,000 | 6,895,000 | 4,728,000 | |||||||||||||||
Income
tax expense
|
(2,574,000 | ) | (156,000 | ) | (858,000 | ) | (1,771,000 | ) | (1,240,000 | ) | ||||||||||
Net
earnings
|
$ | 3,774,000 | $ | 575,000 | $ | 2,265,000 | $ | 5,124,000 | $ | 3,488,000 | ||||||||||
Net
earnings per common share (4)
|
$ | 0.46 | $ | 0.07 | $ | 0.27 | $ | 0.62 | $ | 0.43 | ||||||||||
Weighted
average outstanding
|
||||||||||||||||||||
common
shares (4)
|
8,214,000 | 8,620,000 | 8,470,000 | 8,268,000 | 8,194,000 | |||||||||||||||
Net
earnings per common
|
||||||||||||||||||||
share-assuming
dilution (4)
|
$ | 0.46 | $ | 0.07 | $ | 0.26 | $ | 0.61 | $ | 0.42 | ||||||||||
Weighted
average outstanding
|
||||||||||||||||||||
common
shares-assuming dilution (4)
|
8,216,000 | 8,620,000 | 8,669,000 | 8,443,000 | 8,229,000 |
December
31,
|
||||||||||||||||||||
2009
|
2008(1)
|
2007(2)
|
2006
|
2005(3)
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Investments
and restricted assets
|
$ | 302,083,000 | $ | 308,310,000 | $ | 257,410,000 | $ | 222,683,000 | $ | 211,249,000 | ||||||||||
Cash
|
39,464,000 | 19,914,000 | 5,203,000 | 10,377,000 | 16,633,000 | |||||||||||||||
Receivables
|
50,143,000 | 33,021,000 | 80,445,000 | 74,695,000 | 61,787,000 | |||||||||||||||
Other
assets
|
78,887,000 | 80,560,000 | 75,105,000 | 69,640,000 | 69,976,000 | |||||||||||||||
Total
assets
|
$ | 470,577,000 | $ | 441,805,000 | $ | 418,163,000 | $ | 377,395,000 | $ | 359,645,000 | ||||||||||
Liabilities
|
||||||||||||||||||||
Policyholder
benefits
|
$ | 341,124,000 | $ | 330,533,000 | $ | 301,064,000 | $ | 272,923,000 | $ | 263,981,000 | ||||||||||
Notes
& contracts payable
|
8,940,000 | 6,640,000 | 13,372,000 | 7,671,000 | 10,273,000 | |||||||||||||||
Cemetery
& mortuary liabilities
|
13,382,000 | 13,467,000 | 12,643,000 | 11,534,000 | 10,829,000 | |||||||||||||||
Cemetery
perpetual care obligation
|
2,756,000 | 2,648,000 | 2,474,000 | 2,278,000 | 2,173,000 | |||||||||||||||
Other
liabilities
|
44,570,000 | 34,605,000 | 32,826,000 | 30,018,000 | 26,691,000 | |||||||||||||||
Total
liabilities
|
410,772,000 | 387,893,000 | 362,379,000 | 324,424,000 | 313,947,000 | |||||||||||||||
Stockholders’
equity
|
59,805,000 | 53,912,000 | 55,784,000 | 52,971,000 | 45,698,000 | |||||||||||||||
Total
liabilities and
|
||||||||||||||||||||
stockholders’
equity
|
$ | 470,577,000 | $ | 441,805,000 | $ | 418,163,000 | $ | 377,395,000 | $ | 359,645,000 |
(1)
|
Includes
the purchase of Southern Security Life Insurance Company, effective
December 18, 2008.
|
(2)
|
Includes
the purchase of C & J Financial on July 16, 2007 and the purchase of
Capital Reserve Life Insurance Company on December 17,
2007.
|
(3)
|
Includes
the purchase of Memorial Insurance Company of America on December 29,
2005.
|
(4)
|
Earnings
per share amounts have been adjusted retroactively for the effect of
annual stock dividends.
|
|
·
|
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.
|
|
·
|
Discontinued
product and expired commitment.
|
|
·
|
Research
reasons for rejection.
|
|
·
|
Provide
additional documents.
|
|
·
|
Request
investor exceptions.
|
|
·
|
Appeal
rejection decision to purchase
committee.
|
|
·
|
Commit
to secondary investors.
|
|
·
|
For
loans that have an active market, the Company uses the market price on the
repurchased date.
|
|
·
|
For
loans where there is no market but there is a similar product, the Company
uses the market value for the similar product on the repurchased
date.
|
|
·
|
For
loans where no active market exists on the repurchased date, the Company
determines that the unpaid principal balance best approximates the market
value on the repurchased date, after considering the fair value of the
underlying real estate collateral and estimated future cash
flows.
|
Principal
|
Principal
|
Principal
|
||||||||||||||
Amounts
|
Amounts
|
Amounts
|
||||||||||||||
Due
in
|
Due
in
|
Due
|
||||||||||||||
Total
|
2010
|
2011-2014 |
Thereafter
|
|||||||||||||
Residential
|
$ | 60,863,841 | $ | 790,171 | $ | 2,343,334 | $ | 57,730,336 | ||||||||
Residential
Construction
|
25,028,081 | 25,028,081 | - | - | ||||||||||||
Commercial
|
24,206,957 | 11,020,707 | 7,510,632 | 5,675,618 | ||||||||||||
Total
|
$ | 110,098,879 | $ | 36,838,959 | $ | 9,853,966 | $ | 63,405,954 |
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
we 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 our estimates of the assumptions that market participants would
use in valuing the financial assets and financial
liabilities.
|
Quoted
Prices
|
||||||||||||||||
in
Active
|
Significant
|
Significant
|
||||||||||||||
Markets
for
|
Observable
|
Unobservable
|
||||||||||||||
Identical
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Total
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
Assets
accounted for at fair value on a
|
||||||||||||||||
recurring
basis
|
||||||||||||||||
Investment
in securities available for sale
|
$ | 6,936,137 | $ | 6,936,137 | $ | - | $ | - | ||||||||
Short-term
investments
|
7,144,349 | 7,144,349 | - | - | ||||||||||||
Restricted
assets of cemeteries and mortuaries
|
1,677,273 | 1,677,273 | - | - | ||||||||||||
Cemetery
perpetual care trust investments
|
1,104,046 | 1,104,046 | - | - | ||||||||||||
Derivatives
- interest rate lock commitments
|
1,770,193 | - | - | 1,770,193 | ||||||||||||
Total
assets accounted for at fair value on a
|
||||||||||||||||
recurring
basis
|
$ | 18,631,998 | $ | 16,861,805 | $ | - | $ | 1,770,193 | ||||||||
Liabilities
accounted for at fair value
|
||||||||||||||||
on
a recurring basis
|
||||||||||||||||
Investment-type
insurance contracts
|
$ | (115,763,748 | ) | $ | - | $ | - | $ | (115,763,748 | ) | ||||||
Derivatives -
bank loan interest rate swaps
|
$ | (101,251 | ) | - | - | (101,251 | ) | |||||||||
-
call options
|
(134,492 | ) | (134,492 | ) | ||||||||||||
-
interest rate lock commitments
|
(215,481 | ) | - | - | (215,481 | ) | ||||||||||
Total
liabilities accounted for at fair value
|
||||||||||||||||
on
a recurring basis
|
$ | (116,214,972 | ) | $ | - | $ | - | $ | (116,214,972 | ) |
Investment
Type Insurance Contracts
|
Interest
Rate Lock Commitments
|
Bank
Loan Interest Rate Swaps
|
Call
Options
|
|||||||||||||
Balance
- December 31, 2008
|
$ | (112,351,916 | ) | $ | 362,231 | $ | (167,483 | ) | $ | - | ||||||
Options
sold
|
- | - | - | (613,541 | ) | |||||||||||
Total
Losses (Gains):
|
||||||||||||||||
Included
in earnings
|
(3,411,832 | ) | - | - | 479,049 | |||||||||||
Included
in other
|
||||||||||||||||
comprehensive
income (loss)
|
- | 1,192,480 | 66,277 | - | ||||||||||||
Balance
- December 31, 2009
|
$ | (115,763,748 | ) | $ | 1,554,711 | $ | (101,206 | ) | $ | (134,492 | ) |
Quoted
Prices
|
||||||||||||||||
in
Active
|
Significant
|
Significant
|
||||||||||||||
Markets
for
|
Observable
|
Unobservable
|
||||||||||||||
Identical
Assets
|
Inputs
|
Inputs
|
||||||||||||||
Total
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
Assets
accounted for at fair value on a
|
||||||||||||||||
recurring
basis
|
||||||||||||||||
Investment
in securities available for sale
|
$ | 5,854,237 | $ | 5,854,237 | $ | - | $ | - | ||||||||
Short-term
investments
|
5,282,986 | 5,282,986 | - | - | ||||||||||||
Restricted
assets of cemeteries and mortuaries
|
1,241,038 | 1,241,038 | - | - | ||||||||||||
Cemetery
perpetual care trust investments
|
1,840,119 | 1,840,119 | - | - | ||||||||||||
Derivative-interest
rate lock commitments
|
2,372,452 | - | 2,372,452 | |||||||||||||
Total
assets accounted for at fair value on a
|
||||||||||||||||
recurring
basis
|
$ | 16,590,832 | $ | 14,218,380 | $ | - | $ | 2,372,452 | ||||||||
Liabilities
accounted for at fair value
|
||||||||||||||||
on
a recurring basis
|
||||||||||||||||
Investment-type
insurance contracts
|
$ | (112,351,916 | ) | $ | - | $ | - | $ | (112,351,916 | ) | ||||||
Derivative
- bank loan interest rate swaps
|
(167,483 | ) | (167,483 | ) | ||||||||||||
-
interest rate lock commitments
|
(2,010,221 | ) | - | - | (2,010,221 | ) | ||||||||||
Total
liabilities accounted for at fair value
|
||||||||||||||||
on
a recurring basis
|
$ | (114,529,620 | ) | $ | - | $ | - | $ | (114,529,620 | ) |
Investment
Type Insurance Contracts
|
Interest
Rate Lock Commitments
|
Bank
Loan Interest Rate Swaps
|
||||||||||
Balance
- December 31, 2007
|
$ | (106,939,120 | ) | $ | 627,116 | $ | (26,951 | ) | ||||
Total
Losses:
|
||||||||||||
Included
in earnings
|
(5,412,796 | ) | - | - | ||||||||
Included
in other
|
||||||||||||
comprehensive
income
|
- | (264,885 | ) | (140,532 | ) | |||||||
Balance
- December 31, 2008
|
$ | (112,351,916 | ) | $ | 362,231 | $ | (167,483 | ) |
-200
bps
|
-100
bps
|
+100
bps
|
+200
bps
|
|
Change
in Market Value
|
$21,918
|
$11,511
|
$(12,673)
|
$(23,948)
|
(in
thousands)
|
Less
than
1
year
|
1-3
years
|
4-5
years
|
over
5
years
|
Total
|
||||||||||||||||
Non-cancelable
operating leases
|
$ | 1,154,280 | $ | 1,181,188 | $ | 163,544 | $ | - | $ | 2,499,012 | ||||||||||
Notes
and contracts payable
|
2,404,185 | 1,975,925 | 4,040,927 | 518,952 | 8,939,989 | |||||||||||||||
$ | 3,558,465 | $ | 3,157,113 | $ | 4,204,471 | $ | 518,952 | $ | 11,439,001 |
|
·
|
Separately
disclose the amounts of significant transfers in and out of Level 1 and
Level 2 fair value measurements and describe reasons for the
transfers.
|
|
·
|
Present
separately information about purchases, sales, issuances and settlements,
on a gross basis, rather than on one net number, in the reconciliation for
fair value measurements using significant unobservable inputs (Level
3).
|
|
·
|
Provide
fair value measurement disclosures for each class of assets and
liabilities.
|
|
·
|
Provide
disclosures about the valuation techniques and inputs used to measure fair
value for both recurring and nonrecurring fair value measurements for fair
value measurements that fall in either Level 2 or Level
3.
|
Page
No.
|
|
Financial
Statements:
|
|
Report
of Independent Registered Public Accounting Firm
|
47
|
Consolidated
Balance Sheets, December 31, 2009 and 2008
|
48
|
Consolidated
Statements of Earnings for the Years Ended December 31, 2009, 2008 and
2007
|
50
|
Consolidated
Statements of Stockholders’ Equity for the Years Ended December 31, 2007,
2008 and 2009
|
51
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and
2007
|
52
|
Notes
to Consolidated Financial Statements
|
54
|
II
|
Condensed
Financial Information of Registrant
|
133
|
IV
|
Reinsurance
|
139
|
V
|
Valuation
and Qualifying Accounts
|
140
|
HANSEN, BARNETT & MAXWELL,
P.C.
|
||
A
Professional Corporation
|
Registered
with the Public Company
|
|
CERTIFIED
PUBLIC ACCOUNTANTS
|
Accounting
Oversight Board
|
|
5
Triad Center, Suite 750
|
||
Salt
Lake City, UT 84180-1128
|
||
Phone:
(801) 532-2200
Fax:
(801) 532-7944
|
||
www.hbmcpas.com
|
HANSEN,
BARNETT & MAXWELL, P.C.
|
December
31,
|
||||||||
Assets
|
2009
|
2008
|
||||||
Investments:
|
||||||||
Fixed
maturity securities, held to maturity, at amortized cost
|
$ | 115,832,300 | $ | 125,346,194 | ||||
Fixed
maturity securities, available for sale, at estimated fair
value
|
1,149,523 | 1,236,562 | ||||||
Equity
securities, available for sale, at estimated fair value
|
5,786,614 | 4,617,675 | ||||||
Mortgage
loans on real estate and construction loans held for
|
||||||||
investment,
net of allowances for losses of $6,808,803 and
|
||||||||
$4,780,467
for 2009 and 2008
|
103,290,076 | 124,592,678 | ||||||
Real
estate held for investment, net of accumulated depreciation
and
|
||||||||
allowances
for losses of $4,046,272 and $5,009,571 for 2009 and 2008
|
46,069,638 | 22,417,639 | ||||||
Policy,
student and other loans net of allowance
|
||||||||
for
doubtful accounts of $652,498 and $555,146 for 2009 and
2008
|
18,145,029 | 18,493,751 | ||||||
Short-term
investments
|
7,144,319 | 5,282,986 | ||||||
Accrued
investment income
|
2,072,495 | 2,245,201 | ||||||
Total
investments
|
299,489,994 | 304,232,686 | ||||||
Cash
and cash equivalents
|
39,463,803 | 19,914,110 | ||||||
Mortgage
loans sold to investors
|
39,269,598 | 19,885,994 | ||||||
Receivables,
net
|
10,873,207 | 13,135,080 | ||||||
Restricted
assets of cemeteries and mortuaries
|
2,593,413 | 4,077,076 | ||||||
Cemetery
perpetual care trust investments
|
1,104,046 | 1,840,119 | ||||||
Receivable
from reinsurers
|
5,776,780 | 5,823,379 | ||||||
Cemetery
land and improvements
|
10,987,833 | 10,626,296 | ||||||
Deferred
policy and pre-need contract acquisition costs
|
34,087,951 | 32,424,512 | ||||||
Property
and equipment, net
|
12,826,478 | 14,049,232 | ||||||
Value
of business acquired
|
10,252,670 | 11,377,276 | ||||||
Goodwill
|
1,075,039 | 1,075,039 | ||||||
Other
|
2,776,086 | 3,343,726 | ||||||
Total
Assets
|
$ | 470,576,898 | $ | 441,804,525 |
December
31,
|
||||||||
Liabilities
and Stockholders' Equity
|
2009
|
2008
|
||||||
Liabilities
|
||||||||
Future
life, annuity, and other benefits
|
$ | 336,343,433 | $ | 325,668,454 | ||||
Unearned
premium reserve
|
4,780,645 | 4,863,919 | ||||||
Bank
loans payable
|
8,656,245 | 6,138,202 | ||||||
Notes
and contracts payable
|
283,744 | 501,778 | ||||||
Deferred
pre-need cemetery and mortuary contract revenues
|
13,381,662 | 13,467,132 | ||||||
Cemetery
perpetual care obligation
|
2,756,174 | 2,647,984 | ||||||
Accounts
payable
|
2,601,149 | 1,941,777 | ||||||
Other
liabilities and accrued expenses
|
24,623,535 | 17,688,756 | ||||||
Income
taxes
|
17,344,869 | 14,974,244 | ||||||
Total
liabilities
|
410,771,456 | 387,892,246 | ||||||
Commitments
and Contingencies
|
-- | -- | ||||||
Stockholders’
Equity
|
||||||||
Common
Stock:
|
||||||||
Class
A: common stock - $2.00 par value; 20,000,000 shares
authorized;
|
||||||||
issued
8,730,227 shares in 2009 and 8,284,109 shares in 2008
|
17,460,454 | 16,568,218 | ||||||
Class
B: non-voting common stock - $1.00 par value; 5,000,000
|
||||||||
shares
authorized; none issued or outstanding
|
-- | -- | ||||||
Class
C: convertible common stock - $0.20 par value; 15,000,000
shares
|
||||||||
authorized;
issued 9,214,211 shares in 2009 and 8,912,315 shares in
2008
|
1,842,842 | 1,782,463 | ||||||
Additional
paid-in capital
|
19,191,606 | 17,985,848 | ||||||
Accumulated
other comprehensive income, net of taxes
|
1,593,327 | 417,101 | ||||||
Retained
earnings
|
23,178,944 | 21,023,179 | ||||||
Treasury
stock, at cost - 1,454,974 Class A shares and -0- Class C
shares
|
||||||||
in
2009; 1,598,568 Class A shares and -0- Class C shares in
2008
|
(3,461,731 | ) | (3,864,530 | ) | ||||
Total
stockholders’ equity
|
59,805,442 | 53,912,279 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 470,576,898 | $ | 441,804,525 |
Years
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Revenues:
|
||||||||||||
Insurance
premiums and other consideration
|
$ | 38,413,329 | $ | 35,981,297 | $ | 32,262,837 | ||||||
Net
investment income
|
21,035,159 | 28,103,509 | 31,956,444 | |||||||||
Net
mortuary and cemetery sales
|
11,973,676 | 12,725,930 | 13,188,655 | |||||||||
Realized
gains (losses) on investments and other assets
|
897,312 | (1,733,715 | ) | 1,007,574 | ||||||||
Mortgage
fee income
|
144,860,399 | 143,411,459 | 130,472,166 | |||||||||
Other
|
1,414,680 | 1,015,370 | 860,406 | |||||||||
Total
revenues
|
218,594,555 | 219,503,850 | 209,748,082 | |||||||||
Benefits
and expenses:
|
||||||||||||
Death
benefits
|
19,003,933 | 17,100,688 | 16,274,813 | |||||||||
Surrenders
and other policy benefits
|
1,677,335 | 2,094,482 | 2,078,415 | |||||||||
Increase
in future policy benefits
|
15,238,380 | 13,709,135 | 11,389,019 | |||||||||
Amortization
of deferred policy and pre-need acquisition
|
||||||||||||
costs
and value of business acquired
|
7,160,488 | 6,010,273 | 5,570,799 | |||||||||
Selling,
general and administrative expenses:
|
||||||||||||
Commissions
|
79,509,946 | 98,962,941 | 96,957,340 | |||||||||
Salaries
|
28,069,907 | 26,206,331 | 23,944,999 | |||||||||
Provision
for loan losses and loss reserve
|
19,547,162 | 10,552,074 | 4,640,092 | |||||||||
Other
|
36,364,355 | 34,251,508 | 29,961,459 | |||||||||
Interest
expense
|
3,326,161 | 7,448,454 | 13,270,871 | |||||||||
Cost
of goods and services sold – mortuaries and cemeteries
|
2,349,230 | 2,437,453 | 2,537,244 | |||||||||
Total
benefits and expenses
|
212,246,897 | 218,773,339 | 206,625,051 | |||||||||
Earnings
before income taxes
|
6,347,658 | 730,511 | 3,123,031 | |||||||||
Income
tax expense
|
(2,573,778 | ) | (155,658 | ) | (857,635 | ) | ||||||
Net
earnings
|
$ | 3,773,880 | $ | 574,853 | $ | 2,265,396 | ||||||
Net
earnings per Class A equivalent common share (1)
|
$ | 0.46 | $ | 0.07 | $ | 0.27 | ||||||
Net
earnings per Class A equivalent common share -
|
||||||||||||
assuming
dilution(1)
|
$ | 0.46 | $ | 0.07 | $ | 0.26 | ||||||
Weighted
average Class A equivalent common shares
|
||||||||||||
outstanding
(1)
|
8,214,128 | 8,620,024 | 8,470,237 | |||||||||
Weighted
average Class A equivalent common shares
|
||||||||||||
outstanding-assuming
dilution (1)
|
8,216,383 | 8,620,024 | 8,669,061 |
Class
A Common
Stock
|
Class
C Common
Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other Comprehensive Income
(loss)
|
Retained
Earnings
|
Treasury
Stock
|
Total
|
|||||||||||||||||||||
Balance
at January 1, 2007
|
$ | 15,066,460 | $ | 1,423,518 | $ | 17,064,488 | $ | 1,703,155 | $ | 20,495,063 | $ | (2,781,988 | ) | $ | 52,970,696 | ||||||||||||
Comprehensive
income:
|
|||||||||||||||||||||||||||
Net
earnings
|
— | — | — | — | 2,265,396 | — | 2,265,396 | ||||||||||||||||||||
Unrealized
gains (losses)
|
— | — | — | (106,364 | ) | — | — | (106,364 | ) | ||||||||||||||||||
Total
comprehensive income
|
2,159,032 | ||||||||||||||||||||||||||
Exercise
of stock options
|
(76,974 | ) | 231,525 | (55,261 | ) | — | (96,289 | ) | — | 3,001 | |||||||||||||||||
Sale
of Treasury stock
|
— | — | — | — | — | 651,423 | 651,423 | ||||||||||||||||||||
Stock
dividends
|
750,826 | 81,244 | 727,944 | — | (1,560,014 | ) | — | - | |||||||||||||||||||
Conversion
Class C to Class A
|
30,146 | (30,147 | ) | 1 | — | — | — | - | |||||||||||||||||||
Balance
at December 31, 2007
|
15,770,458 | 1,706,140 | 17,737,172 | 1,596,791 | 21,104,156 | (2,130,565 | ) | 55,784,152 | |||||||||||||||||||
Comprehensive
income:
|
|||||||||||||||||||||||||||
Net
earnings
|
— | — | — | — | 574,853 | — | 574,853 | ||||||||||||||||||||
Unrealized
gains (losses)
|
— | — | — | (3,162,279 | ) | — | — | (3,162,279 | ) | ||||||||||||||||||
Reclass
of Treasury Stock
|
— | — | — | 1,982,589 | — | (1,982,589 | ) |
|
|||||||||||||||||||
Total
comprehensive income
|
— | — | — | — | — | — | (2,587,426 | ) | |||||||||||||||||||
Grant
of stock options
|
— | — | 466,929 | — | — | — | 466,929 | ||||||||||||||||||||
Sale
of Treasury stock
|
— | — | — | — | — | 248,624 | 248,624 | ||||||||||||||||||||
Stock
dividends
|
789,354 | 84,727 | (218,251 | ) | — | (655,830 | ) | — | — | ||||||||||||||||||
Conversion
Class C to Class A
|
8,406 | (8,404 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||
Balance
at December 31, 2008
|
16,568,218 | 1,782,463 | 17,985,848 | 417,101 | 21,023,179 | (3,864,530 | ) | 53,912,279 | |||||||||||||||||||
Comprehensive
income:
|
|||||||||||||||||||||||||||
Net
earnings
|
— | — | — | — | 3,773,880 | — | 3,773,880 | ||||||||||||||||||||
Unrealized
gains (losses)
|
— | — | — | 1,176,226 | — | — | 1,176,226 | ||||||||||||||||||||
Total
comprehensive income
|
— | — | — | — | — | — | 4,950,106 | ||||||||||||||||||||
Grant
of stock options
|
— | — | 485,986 | — | — | — | 485,986 | ||||||||||||||||||||
Exercise
stock options
|
32,962 | — | (32,962 | ) | — | — | — | - | |||||||||||||||||||
Sale
of Treasury stock
|
— | — | 54,271 | — | — | 402,799 | 457,070 | ||||||||||||||||||||
Stock
dividends
|
831,736 | 87,755 | 698,524 | — | (1,618,015 | ) | — | - | |||||||||||||||||||
Odd
lot purchase
|
160 | — | (60 | ) | — | (100 | ) | — | - | ||||||||||||||||||
Conversion
Class C to Class A
|
27,377 | (27,376 | ) | (1 | ) | — | — | — | - | ||||||||||||||||||
Balance
as of December 31, 2009
|
$ | 17,460,454 | $ | 1,842,842 | $ | 19,191,606 | $ | 1,593,327 | $ | 23,178,944 | $ | (3,461,731 | ) | $ | 59,805,442 |
Years
Ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
earnings
|
$ | 3,773,880 | $ | 574,853 | $ | 2,265,396 | ||||||
Adjustments
to reconcile net earnings to
net cash provided by (used in) operating
activities:
|
||||||||||||
Realized
(gains) losses on investments and other assets
|
(897,312 | ) | 1,733,715 | (1,007,574 | ) | |||||||
Depreciation
|
2,801,417 | 2,471,201 | 2,398,330 | |||||||||
Provision
for losses on real estate accounts and loans
receivable
|
2,804,620 | 4,586,501 | 741,974 | |||||||||
Amortization
of premiums and discounts
|
(740,124 | ) | (65,224 | ) | 8,411 | |||||||
Provision
for deferred and other income taxes
|
1,570,989 | (59,230 | ) | 481,810 | ||||||||
Policy
and pre-need acquisition costs deferred
|
(7,754,706 | ) | (6,946,317 | ) | (6,974,054 | ) | ||||||
Policy
and pre-need acquisition costs amortized
|
6,035,882 | 5,110,519 | 4,609,045 | |||||||||
Value
of business acquired amortized
|
1,124,606 | 899,754 | 951,639 | |||||||||
Change
in assets and liabilities net of effects from land
and improvements held for sale:
|
(361,537 | ) | (866,255 | ) | (781,617 | ) | ||||||
Future
life and other benefits
|
15,423,587 | 9,508,769 | 13,131,652 | |||||||||
Receivables
for mortgage loans held for sale
|
(19,383,604 | ) | 35,366,791 | (6,883,446 | ) | |||||||
Stock
based compensation expense
|
485,986 | 466,929 | 3,000 | |||||||||
Benefit
plans funded with treasury stock
|
457,070 | 248,624 | 651,423 | |||||||||
Other
operating assets and liabilities
|
11,831,350 | 4,088,477 | 1,067,072 | |||||||||
Net
cash provided by operating activities
|
17,172,104 | 57,119,107 | 10,663,061 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Securities
held to maturity:
|
||||||||||||
Purchase
- fixed maturity securities
|
(12,897,225 | ) | (15,667,595 | ) | (2,206,067 | ) | ||||||
Calls
and maturities - fixed maturity securities
|
22,610,141 | 25,384,510 | 6,630,227 | |||||||||
Securities
available for sale:
|
||||||||||||
Purchase
- equity securities
|
(5,640,738 | ) | (1,740,077 | ) | (179,630 | ) | ||||||
Sales
- equity securities
|
5,788,996 | 3,600,641 | 868,371 | |||||||||
Purchases
of short-term investments
|
(20,784,977 | ) | (30,339,562 | ) | (16,946,889 | ) | ||||||
Sales
of short-term investments
|
18,923,574 | 32,012,283 | 16,196,350 | |||||||||
Sales
(Purchases) of restricted assets
|
1,552,830 | 1,528,071 | (302,114 | ) | ||||||||
Change
in assets for perpetual care trusts
|
(230,498 | ) | (291,870 | ) | (276,437 | ) | ||||||
Amount
received for perpetual care trusts
|
108,190 | 174,226 | 195,248 | |||||||||
Mortgage,
policy, and other loans made
|
(27,691,403 | ) | (79,563,741 | ) | (114,782,049 | ) | ||||||
Payments
received for mortgage, policy, and other loans
|
21,705,282 | 39,926,795 | 101,422,270 | |||||||||
Purchases
of property and equipment
|
(736,210 | ) | (1,323,849 | ) | (3,009,279 | ) | ||||||
Disposal
of property and equipment
|
2,749 | 81,352 | 880,818 | |||||||||
Purchases
of real estate
|
(801,297 | ) | (379,738 | ) | (265,668 | ) | ||||||
Cash
(paid) received for purchase of subsidiaries, net
of cash acquired
|
- | (2,928,022 | ) | (1,702,762 | ) | |||||||
Sale
of real estate
|
1,965,740 | 1,438,796 | 1,375,183 | |||||||||
Net
cash used in investing activities
|
3,875,154 | (28,087,780 | ) | (12,102,428 | ) |
Years
Ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
flows from financing activities:
|
||||||||||||
Annuity
contract receipts
|
$ | 9,101,675 | $ | 10,578,845 | $ | 6,039,988 | ||||||
Annuity
contract withdrawals
|
(13,920,526 | ) | (18,006,929 | ) | (12,961,804 | ) | ||||||
Repayment
of bank loans and notes and contracts payable
|
(3,685,330 | ) | (11,276,120 | ) | (47,751,447 | ) | ||||||
Proceeds
from borrowing on notes and contracts
|
7,006,616 | 4,383,927 | 50,939,105 | |||||||||
Net
cash used in financing activities
|
(1,497,565 | ) | (14,320,277 | ) | (3,734,158 | ) | ||||||
Net
change in cash and cash equivalents
|
19,549,693 | 14,711,050 | (5,173,525 | ) | ||||||||
Cash
and cash equivalents at beginning of year
|
19,914,110 | 5,203,060 | 10,376,585 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 39,463,803 | $ | 19,914,110 | $ | 5,203,060 | ||||||
Non
Cash Investing and Financing Activities
|
||||||||||||
Mortgage
loans foreclosed into real estate
|
$ | 24,441,490 | $ | 16,449,451 | $ | 4,368,646 |
Year
ended December 31, 2008
|
||||
Fair
value of assets acquired
|
$ | (26,193,020 | ) | |
Fair
value of liabilities assumed
|
23,264,998 | |||
Cash
paid
|
$ | (2,928,022 | ) |
Years
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Balance,
beginning of period
|
$ | 4,780,467 | $ | 1,435,131 | $ | 1,027,564 | ||||||
Provisions
for losses
|
3,166,043 | 4,338,553 | 420,000 | |||||||||
Charge-offs
|
(1,137,707 | ) | (993,217 | ) | (12,433 | ) | ||||||
Balance,
at December 31
|
$ | 6,808,803 | $ | 4,780,467 | $ | 1,435,131 |
Years
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Balance,
beginning of period
|
$ | 2,775,452 | $ | 2,356,308 | $ | 2,712,997 | ||||||
Provisions
for losses
|
17,306,471 | 7,140,270 | 4,129,301 | |||||||||
Charge-offs
|
(8,419,026 | ) | (6,721,126 | ) | (4,485,990 | ) | ||||||
Balance,
at December 31
|
$ | 11,662,897 | $ | 2,775,452 | $ | 2,356,308 |
|
·
|
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.
|
|
·
|
Discontinued
product and expired
commitment.
|
|
·
|
Research
reasons for rejection.
|
|
·
|
Provide
additional documents.
|
|
·
|
Request
investor exceptions.
|
|
·
|
Appeal
rejection decision to purchase
committee.
|
|
·
|
Commit
to secondary investors.
|
|
·
|
For
loans that have an active market the Company uses the market price on the
repurchased date.
|
|
·
|
For
loans where there is no market but there is a similar product, the Company
uses the market value for the similar product on the repurchased
date.
|
|
·
|
For
loans where no active market exists on the repurchased date, the Company
determines that the unpaid principal balance best approximates the market
value on the repurchased date, after considering the fair value of the
underlying real estate collateral and estimated future cash
flows.
|
|
·
|
Separately
disclose the amounts of significant transfers in and out of Level 1 and
Level 2 fair value measurements and describe reasons for the
transfers.
|
|
·
|
Present
separately information about purchases, sales, issuances and settlements,
on a gross basis, rather than on one net number, in the reconciliation for
fair value measurements using significant unobservable inputs (Level
3).
|
|
·
|
Provide
fair value measurement disclosures for each class of assets and
liabilities.
|
|
·
|
Provide
disclosures about the valuation techniques and inputs used to measure fair
value for both recurring and nonrecurring fair value measurements for fair
value measurements that fall in either Level 2 or Level
3.
|
$ | 3,178,901 | |||
Other
current assets
|
55,295 | |||
Office
furniture and equipment
|
18,078 | |||
Goodwill
|
391,847 | |||
Total
Assets
|
3,644,121 | |||
Note
payable to bank, current
|
(1,971,764 | ) | ||
Other
current liabilities
|
(40,857 | ) | ||
Net
Assets Acquired
|
$ | 1,631,500 |
$ | 23,146,994 | |||
Policy
and other loans
|
573,821 | |||
Accrued
investment income
|
274,370 | |||
Receivables
|
143,183 | |||
Furniture
and equipment
|
112,324 | |||
Value
of business acquired
|
619,562 | |||
Total
assets acquired
|
24,870,254 | |||
Future
life, annuity and other benefits
|
(21,888,930 | ) | ||
Checks
written in excess of cash in bank
|
(524,528 | ) | ||
Other
liabilities and accrued expenses
|
(183,857 | ) | ||
Total
Liabilities Assumed
|
(22,597,315 | ) | ||
Fair
Value of Net Assets Acquired
|
$ | 2,272,939 |
$ | 1,200,865 | |||
Policy
and mortgage loans
|
1,050,028 | |||
Cash
|
392,785 | |||
Receivable
from reinsurer -
|
||||
Security
National Life
|
22,235,131 | |||
Other
assets
|
49,369 | |||
Deferred
tax asset
|
298,418 | |||
Value
of business acquired
|
227,573 | |||
Total
assets acquired
|
25,454,169 | |||
Future
life, annuity and other benefits
|
(22,789,846 | ) | ||
Fair
Value of Net Assets Acquired
|
$ | 2,664,323 |
For
the Years Ended
December
31,
(unaudited)
|
||||||||
2008
|
2007
|
|||||||
Total
revenues
|
$ | 221,348,000 | $ | 216,492,000 | ||||
Net
earnings
|
$ | 717,000 | $ | 2,936,000 | ||||
Net
earnings per Class A equivalent common share
|
$ | 0.09 | $ | 0.37 | ||||
Net
earnings per Class A equivalent common shareassuming
dilution
|
$ | 0.09 | $ | 0.36 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31,
2009:
|
||||||||||||||||
Fixed
maturity securities held to maturity carried at amortized
cost:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S.
Treasury securities
|
||||||||||||||||
and
obligations of U.S
|
||||||||||||||||
Government
agencies
|
$ | 9,477,032 | $ | 430,783 | $ | (6,389 | ) | $ | 9,901,426 | |||||||
|
||||||||||||||||
Obligations
of states and
|
||||||||||||||||
political
subdivisions
|
2,034,784 | 95,333 | (20,722 | ) | 2,109,395 | |||||||||||
Corporate
securities including
|
||||||||||||||||
public
utilities
|
95,903,129 | 3,927,607 | (2,763,448 | ) | 97,067,288 | |||||||||||
Mortgage-backed
securities
|
6,852,072 | 182,932 | (1,338,817 | ) | 5,696,187 | |||||||||||
Redeemable
preferred stock
|
1,565,283 | - | (109,832 | ) | 1,455,451 | |||||||||||
Total
fixed maturity
|
||||||||||||||||
securities
held to maturity
|
$ | 115,832,300 | $ | 4,636,655 | $ | (4,239,208 | ) | $ | 116,229,747 | |||||||
Securities
available for sale carried at
|
||||||||||||||||
estimated
fair value:
|
Fixed
maturity securities available for sale:
|
||||||||||||||||
U.S. Treasury securities | ||||||||||||||||
and
obligations of U.S.
|
||||||||||||||||
Government
agencies
|
$ | 98,280 | $ | 21,158 | $ | - | $ | 119,438 | ||||||||
Corporate
securities including
|
||||||||||||||||
public
utilities
|
1,012,458 | 17,627 | - | 1,030,085 | ||||||||||||
Total
fixed maturity securities
|
||||||||||||||||
available
for sale
|
$ | 1,110,738 | $ | 38,785 | $ | - | $ | 1,149,523 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31,
2009:
|
||||||||||||||||
Equity
securities available for sale
|
||||||||||||||||
at
estimated fair value:
|
||||||||||||||||
Non-redeemable
preferred stock
|
$ | 20,281 | $ | - | $ | (5,061 | ) | $ | 15,220 | |||||||
Common
stock:
|
||||||||||||||||
Industrial,
miscellaneous and all other
|
5,398,320 | 682,075 | (309,001 | ) | 5,771,394 | |||||||||||
Total
equity securities available for sale
|
||||||||||||||||
at
estimated fair value
|
$ | 5,418,601 | $ | 682,075 | $ | (314,062 | ) | $ | 5,786,614 | |||||||
Total
securities available for sale
|
||||||||||||||||
carried
at estimated fair value
|
$ | 6,529,339 | $ | 720,860 | $ | (314,062 | ) | $ | 6,936,137 | |||||||
Mortgage
loans on real estate and construction
loans held for investment at
amortized cost:
|
||||||||||||||||
Residential
|
$ | 60,863,842 | ||||||||||||||
Residential
construction
|
25,028,081 | |||||||||||||||
Commercial
|
24,206,956 | |||||||||||||||
Less:
Allowance for loan losses
|
(6,808,803 | ) | ||||||||||||||
Total
mortgage loans on real estate and
|
||||||||||||||||
construction
loans held for investment
|
$ | 103,290,076 | ||||||||||||||
Real
estate at cost – net of depreciation & allowance
|
$ | 46,069,638 | ||||||||||||||
Policy,
student and other loans at
|
||||||||||||||||
amortized
cost - net of allowance for doubtful accounts
|
$ | 18,145,029 | ||||||||||||||
Short-term
investments at amortized cost
|
$ | 7,144,319 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31,
2008:
|
||||||||||||||||
Fixed
maturity securities held to maturity carried at amortized
cost:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S.
Treasury securities
|
||||||||||||||||
and
obligations of U.S
|
||||||||||||||||
Government
agencies
|
$ | 17,138,738 | $ | 1,201,488 | $ | --- | $ | 18,340,226 | ||||||||
Obligations
of states and
|
||||||||||||||||
political
subdivisions
|
1,474,934 | 59,035 | (16,347 | ) | 1,517,622 | |||||||||||
Corporate
securities including
|
||||||||||||||||
public
utilities
|
97,610,026 | 1,280,795 | (12,073,677 | ) | 86,817,144 | |||||||||||
Mortgage-backed
securities
|
7,586,553 | 68,466 | (1,580,189 | ) | 6,074,830 | |||||||||||
Redeemable
preferred stock
|
1,535,943 | 565 | (335,703 | ) | 1,200,805 | |||||||||||
Total
fixed maturity
|
||||||||||||||||
securities
held to maturity
|
||||||||||||||||
$ | 125,346,194 | $ | 2,610,349 | $ | (14,005,916 | ) | $ | 113,950,627 | ||||||||
Securities
available for sale carried at
|
||||||||||||||||
estimated
fair value:
|
Fixed
maturity securities available for sale:
|
||||||||||||||||
U.S. Treasury securities | ||||||||||||||||
and
obligations of U.S.
|
||||||||||||||||
Government
agencies
|
$ | 98,203 | $ | 38,188 | $ | --- | $ | 136,391 | ||||||||
Corporate
securities including
|
||||||||||||||||
public
utilities
|
1,045,399 | 54,772 | --- | 1,100,171 | ||||||||||||
Total
fixed maturity securities
|
||||||||||||||||
available
for sale
|
$ | 1,143,602 | $ | 92,960 | $ | --- | $ | 1,236,562 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31,
2008:
|
||||||||||||||||
Equity
securities available for sale
|
||||||||||||||||
at
estimated fair value:
|
||||||||||||||||
Non-redeemable
preferred stock
|
$ | 20,281 | $ | --- | $ | (6,092 | ) | $ | 14,189 | |||||||
|
||||||||||||||||
Common
stock:
|
||||||||||||||||
Public
utilities
|
403,249 | 220,045 | (51,105 | ) | 572,189 | |||||||||||
Banks,
trusts and insurance companies
|
479,663 | 154,313 | - | 633,976 | ||||||||||||
Industrial,
miscellaneous and all other
|
3,755,523 | 44,260 | (402,462 | ) | 3,397,321 | |||||||||||
Total
equity securities available for sale
|
||||||||||||||||
at
estimated fair value
|
$ | 4,658,716 | $ | 418,618 | $ | (459,659 | ) | $ | 4,617,675 | |||||||
Total securities available for sale | ||||||||||||||||
carried at estimated fair value | ||||||||||||||||
$ | 5,802,318 | $ | 511,578 | $ | (459,659 | ) | $ | 5,854,237 | ||||||||
Mortgage
loans on real estate and construction
loans held for investment at
amortized cost:
|
||||||||||||||||
Residential
|
$ | 70,082,011 | ||||||||||||||
Residential
construction
|
35,742,891 | |||||||||||||||
Commercial
|
23,548,243 | |||||||||||||||
Less:
Allowance for loan losses
|
(4,780,467 | ) | ||||||||||||||
Total
mortgage loans on real estate and
|
||||||||||||||||
construction
loans held for investment
|
$ | 124,592,678 | ||||||||||||||
Real
estate at cost – net of depreciation
|
$ | 22,417,639 | ||||||||||||||
Policy,
student and other loans at
|
||||||||||||||||
amortized
cost - net of allowance for doubtful accounts
|
$ | 18,493,751 | ||||||||||||||
Short-term
investments at amortized cost
|
$ | 5,282,986 |
Unrealized
Losses for Less than Twelve Months
|
No.
of Investment Positions
|
Unrealized
Losses for More than Twelve Months
|
No.
of Investment Positions
|
Total
Unrealized Loss
|
||||||||||||||||
At December 31,
2009
|
||||||||||||||||||||
Interest
rate or spread widening
|
$ | 580,244 | 37 | $ | 2,320,148 | 70 | $ | 2,900,392 | ||||||||||||
Mortgage
and other
|
||||||||||||||||||||
asset-backed
securities
|
31,337 | 3 | 1,307,479 | 5 | 1,338,816 | |||||||||||||||
Total
unrealized losses
|
$ | 611,581 | 40 | $ | 3,627,627 | 75 | $ | 4,239,208 | ||||||||||||
Fair
Value
|
$ | 17,777,172 | $ | 22,641,536 | $ | 40,418,708 | ||||||||||||||
At December 31,
2008
|
||||||||||||||||||||
Interest
rate or spread widening
|
$ | 4,425,497 | 87 | $ | 8,000,230 | 105 | $ | 12,425,727 | ||||||||||||
Mortgage
and other
|
||||||||||||||||||||
asset-backed
securities
|
- | - | 1,580,189 | 12 | 1,580,189 | |||||||||||||||
Total
unrealized losses
|
$ | 4,425,497 | 87 | $ | 9,580,419 | 117 | $ | 14,005,916 | ||||||||||||
Fair
Value
|
$ | 30,720,910 | $ | 35,178,465 | $ | 65,899,375 |
Unrealized
Losses for Less than Twelve Months
|
No.
of Investment Positions
|
Unrealized
Losses for More than Twelve Months
|
No.
of Investment Positions
|
Total
Unrealized Losses
|
||||||||||||||||
At December 31,
2009
|
||||||||||||||||||||
Non-redeemable
preferred stock
|
$ | - | - | $ | 5,061 | 2 | $ | 5,061 | ||||||||||||
Industrial,
miscellaneous and all other
|
55,287 | 23 | 253,714 | 16 | 309,001 | |||||||||||||||
Total
unrealized losses
|
$ | 55,287 | 23 | $ | 258,775 | 18 | $ | 314,062 | ||||||||||||
Fair
Value
|
$ | 1,007,525 | $ | 660,809 | $ | 1,668,334 | ||||||||||||||
At December 31,
2008
|
||||||||||||||||||||
Non-redeemable
preferred stock
|
$ | - | - | $ | 6,092 | 2 | $ | 6,092 | ||||||||||||
Banks,
trusts and insurance companies
|
51,105 | 2 | - | - | 51,105 | |||||||||||||||
Industrial,
miscellaneous and all other
|
393,666 | 10 | 8,796 | 1 | 402,462 | |||||||||||||||
Total
unrealized losses
|
$ | 444,771 | 12 | $ | 14,888 | 3 | $ | 459,659 | ||||||||||||
Fair
Value
|
$ | 675,284 | $ | 66,722 | $ | 742,006 |
Amortized
|
Estimated
Fair
|
|||||||
Cost
|
Value
|
|||||||
Held
to Maturity:
|
||||||||
Due
in 2010
|
$ | 4,299,795 | $ | 4,339,329 | ||||
Due
in 2011 through 2014
|
24,951,300 | 26,294,690 | ||||||
Due
in 2015 through 2019
|
33,773,677 | 35,300,644 | ||||||
Due
after 2019
|
44,390,173 | 43,143,446 | ||||||
Mortgage-backed
securities
|
6,852,072 | 5,696,187 | ||||||
Redeemable
preferred stock
|
1,565,283 | 1,455,451 | ||||||
Total
held to maturity
|
$ | 115,832,300 | $ | 116,229,747 |
Amortized
|
Estimated
Fair
|
|||||||
Cost
|
Value
|
|||||||
Available
for Sale:
|
||||||||
Due
in 2010
|
$ | 1,012,458 | $ | 1,030,085 | ||||
Due
in 2011 through 2014
|
- | - | ||||||
Due
in 2015 through 2019
|
- | - | ||||||
Due
after 2019
|
98,280 | 119,438 | ||||||
Non-redeemable
preferred stock
|
20,281 | 15,220 | ||||||
Common
stock
|
5,398,320 | 5,771,394 | ||||||
Total
available for sale
|
$ | 6,529,339 | $ | 6,936,137 |
2009
|
2008
|
2007
|
||||||||||
Fixed
maturity securities held
|
||||||||||||
to
maturity:
|
||||||||||||
Gross
realized gains
|
$ | 500,795 | $ | 90,243 | $ | 94,984 | ||||||
Gross
realized losses
|
(151,069 | ) | (2,343,264 | ) | (27,065 | ) | ||||||
Securities
available for sale:
|
||||||||||||
Gross
realized gains
|
1,018,217 | 1,211,932 | 175,990 | |||||||||
Gross
realized losses
|
(478,757 | ) | (560,853 | ) | (860 | ) | ||||||
Other
assets
|
8,126 | (131,773 | ) | 764,525 | ||||||||
Total
|
$ | 897,312 | $ | (1,733,715 | ) | $ | 1,007,574 |
2009
|
2008
|
2007
|
||||||||||
Fixed
maturity securities
|
$ | 7,140,920 | $ | 7,167,007 | $ | 6,045,141 | ||||||
Equity
securities
|
794,845 | 266,533 | 161,850 | |||||||||
Mortgage
loans on real estate
|
5,462,533 | 6,857,757 | 6,759,943 | |||||||||
Real
estate
|
1,561,809 | 1,563,134 | 1,273,652 | |||||||||
Policy,
student and other loans
|
811,684 | 699,592 | 707,068 | |||||||||
Short-term
investments,
principally
gains on sale of
|
||||||||||||
mortgage loans and other
|
7,896,518 | 14,265,269 | 18,898,925 | |||||||||
Gross
investment income
|
23,668,309 | 30,819,292 | 33,846,579 | |||||||||
Investment
expenses
|
(2,633,150 | ) | (2,715,783 | ) | (1,890,135 | ) | ||||||
Net
investment income
|
$ | 21,035,159 | $ | 28,103,509 | $ | 31,956,444 |
December 31 | ||||||||
2009
|
2008
|
|||||||
Trade
contracts
|
$ | 8,039,501 | $ | 10,093,271 | ||||
Advances
receivables from sales agents
|
2,282,899 | 2,438,371 | ||||||
Held
in Escrow – Capital Reserve Life/Southern Security
|
616,383 | 629,402 | ||||||
Other
|
2,117,480 | 1,957,329 | ||||||
Total
receivables
|
13,056,263 | 15,118,373 | ||||||
Allowance
for doubtful accounts
|
(2,183,056 | ) | (1,983,293 | ) | ||||
Net
receivables
|
$ | 10,873,207 | $ | 13,135,080 |
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Balance
at beginning of year
|
$ | 11,377,276 | $ | 11,686,080 | $ | 11,882,047 | ||||||
Value
of business acquired
|
246,838 | 590,950 | 765,787 | |||||||||
Imputed
interest at 7%
|
757,048 | 807,217 | 824,502 | |||||||||
Amortization
|
(2,128,492 | ) | (1,706,971 | ) | (1,786,256 | ) | ||||||
Net
amortization charged to income
|
(1,371,444 | ) | (899,754 | ) | (961,754 | ) | ||||||
Balance
at end of year
|
$ | 10,252,670 | $ | 11,377,276 | $ | 11,686,080 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Land
and buildings
|
$ | 15,901,478 | $ | 15,860,356 | ||||
Furniture
and equipment
|
16,058,583 | 15,877,294 | ||||||
31,960,061 | 31,737,650 | |||||||
Less
accumulated depreciation
|
(19,133,583 | ) | (17,688,418 | ) | ||||
Total
|
$ | 12,826,478 | $ | 14,049,232 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
6%
note payable in monthly installments of $5,693
|
||||||||
including
principal and interest, collateralized by real
|
||||||||
property,
with a book value of approximately $554,000,
|
||||||||
due
September 2010.
|
$ | 457,420 | $ | 496,994 | ||||
6.34%
note payable in monthly installments of $13,556
|
||||||||
including
principal and interest, collateralized by real
|
||||||||
property
with a book value of approximately $553,000,
|
||||||||
due
November 2017.
|
1,109,975 | 1,226,975 | ||||||
Bank
prime rate less .28% (2.97% at December 31, 2009)
|
||||||||
collateralized
by 15,000 shares of Security National Life Insurance
|
||||||||
Company
Stock, due June 2011.
|
1,192,820 | 2,003,527 | ||||||
5.75%
note payable in monthly installments of $28,271 including
|
||||||||
principal
and interest, collateralized by real property with a book
|
||||||||
value
of approximately $6,450,000 due December 2014.
|
4,000,000 | - | ||||||
Bank
prime rate less .75% (2.50% at December 31, 2009)
|
||||||||
revolving
line of credit of $7,800,000, accrued interest
|
||||||||
paid
quarterly, extended to June 2011.
|
1,375,000 | 1,675,000 | ||||||
Mark
to market of interest rate swaps (discussed below)
adjustment
|
101,251 | 167,528 | ||||||
Other
collateralized bank loans payable
|
419,779 | 568,178 | ||||||
Total
bank loans
|
8,656,245 | 6,138,202 | ||||||
Less
current installments
|
2,319,017 | 2,018,662 | ||||||
Bank
loans, excluding current installments
|
$ | 6,337,228 | $ | 4,119,540 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Unsecured
note payable due to former stockholders
|
||||||||
of Deseret
Memorial, Inc. resulting from the
|
||||||||
acquisition
of such entity. Amount represents
|
||||||||
the
present value, discounted at 8%, of monthly
|
||||||||
annuity
payments of $5,900, due September 2011.
|
$ | 109,366 | $ | 156,581 | ||||
9%
note payable in monthly installments of
|
||||||||
$10,000
including principal and
|
||||||||
interest,
collateralized by real property,
|
||||||||
with
a book value of approximately
|
||||||||
$2,908,000,
paid July 2009.
|
- | 57,636 | ||||||
5%
note payable to a former owner of C & J Financial
|
||||||||
due
in monthly installments of $16,737
|
||||||||
including
principal and interest, paid July 2009.
|
- | 94,276 | ||||||
Other
notes payable
|
174,378 | 193,285 | ||||||
Total
notes and contracts payable
|
283,744 | 501,778 | ||||||
Less
current installments
|
85,168 | 230,517 | ||||||
Notes
and contracts, excluding
|
||||||||
current installments
|
$ | 198,576 | $ | 271,261 |
2010
|
$ | 2,404,185 | ||
2011
|
1,614,141 | |||
2012
|
361,784 | |||
2013
|
352,827 | |||
2014
|
3,688,100 | |||
Thereafter
|
518,952 | |||
Total
|
$ | 8,939,989 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Trust
investments, at market value
|
$ | 1,104,046 | $ | 1,840,119 | ||||
Note
receivables from Cottonwood Mortuary
|
||||||||
Singing
Hills Cemetery and Memorial Estates - Pinehill
|
||||||||
eliminated
in consolidation
|
2,052,331 | 1,120,950 | ||||||
Total
trust assets
|
3,156,377 | 2,961,069 | ||||||
Cemetery
perpetual care obligation
|
(2,756,174 | ) | (2,647,984 | ) | ||||
Fair
value of trust assets in excess of trust obligations
|
$ | 400,203 | $ | 313,085 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Cash
and cash equivalents
|
$ | 1,175,646 | $ | 911,060 | ||||
Mutual
funds
|
416,002 | 245,285 | ||||||
Fixed
maturity securities
|
8,775 | 8,775 | ||||||
Equity
securities
|
76,850 | 75,918 | ||||||
Participating
in Mortgage loans with Security National Life
|
916,141 | 2,836,038 | ||||||
Total
|
$ | 2,593,414 | $ | 4,077,076 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Current
|
$ | 608,060 | $ | 276,096 | ||||
Deferred
|
16,223,588 | 14,415,582 | ||||||
Other
|
513,221 | 282,566 | ||||||
Total
|
$ | 17,344,869 | $ | 14,974,244 |
2009
|
2008
|
|||||||
Assets
|
||||||||
Future
policy benefits
|
$ | (6,140,507 | ) | $ | (5,693,225 | ) | ||
Loan
loss reserve
|
(2,679,449 | ) | (1,478,708 | ) | ||||
Unearned
premium
|
(1,768,838 | ) | (1,799,650 | ) | ||||
Other
|
(1,296,635 | ) | (1,209,383 | ) | ||||
Less:
Valuation allowance
|
6,214,039 | 5,498,477 | ||||||
Total
deferred tax assets
|
(5,671,390 | ) | (4,682,489 | ) | ||||
Liabilities
|
||||||||
Deferred
policy acquisition costs
|
9,146,293 | 8,756,407 | ||||||
Basis
difference in fixed assets
|
4,018,057 | 1,944,049 | ||||||
Value
of business acquired
|
3,793,488 | 4,210,547 | ||||||
Installment
sales
|
2,356,322 | 2,317,015 | ||||||
Trusts
|
1,908,905 | 1,674,321 | ||||||
Available
for sale securities
|
6,147 | (17,179 | ) | |||||
Tax
on unrealized appreciation
|
665,766 | 212,911 | ||||||
Total
deferred tax liabilities
|
21,894,978 | 19,098,071 | ||||||
Net
deferred tax liability
|
$ | 16,223,588 | $ | 14,415,582 |
2009
|
2008
|
2007
|
||||||||||
Current
|
$ | 1,002,789 | $ | 214,888 | $ | 375,825 | ||||||
Deferred
|
1,366,336 | (234,338 | ) | 456,245 | ||||||||
Other
|
204,653 | 175,108 | 25,565 | |||||||||
Total
|
$ | 2,573,778 | $ | 155,658 | $ | 857,635 | ||||||
The
reconciliation of income tax expense at the U.S. federal statutory rates
is as follows:
|
||||||||||||
2008 | 2008 | 2007 | ||||||||||
Computed
expense at statutory rate
|
$ | 2,158,204 | $ | 248,374 | $ | 1,061,831 | ||||||
Special
deductions allowed
|
||||||||||||
small
life insurance companies
|
(50,983 | ) | (20,918 | ) | (330,804 | ) | ||||||
Other,
net
|
466,557 | (71,798 | ) | 126,608 | ||||||||
Tax
expense
|
$ | 2,573,778 | $ | 155,658 | $ | 857,635 |
Years
Ending
|
|||||
December 31
|
|||||
2010
|
$ | 1,154,000 | |||
2011
|
809,000 | ||||
2012
|
372,000 | ||||
2013
|
106,000 | ||||
2014
|
58,000 | ||||
Total
|
$ | 2,499,000 |
13)
|
Capital
Stock
|
Class
A
|
Class
C
|
|||||||
Balance
at December 31, 2006
|
7,533,230 | 7,117,591 | ||||||
Exercise
of stock options
|
(38,487 | ) | 1,157,626 | |||||
Stock
dividends
|
375,413 | 406,217 | ||||||
Conversion
of Class C to Class A
|
15,073 | (150,735 | ) | |||||
Balance
at December 31, 2007
|
7,885,229 | 8,530,699 | ||||||
Exercise
of stock options
|
-- | -- | ||||||
Stock
dividends
|
394,677 | 423,635 | ||||||
Conversion
of Class C to Class A
|
4,203 | (42,019 | ) | |||||
Balance
at December 31, 2008
|
8,284,109 | 8,912,315 | ||||||
Exercise
of stock options
|
16,481 | -- | ||||||
Stock
dividends
|
415,868 | 438,776 | ||||||
Conversion
of Class C to Class A
|
13,689 | (136,880 | ) | |||||
Reinstatement
|
80 | -- | ||||||
Balance
at December 31, 2009
|
8,730,227 | 9,214,211 |
2009
|
2008
|
2007
|
||||||||||
Numerator:
|
||||||||||||
Net
earnings
|
$ | 3,773,880 | $ | 574,853 | $ | 2,265,396 | ||||||
Denominator:
|
||||||||||||
Denominator
for basic earnings
|
||||||||||||
per
share-weighted-average shares
|
8,214,128 | 8,620,024 | 8,470,237 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Employee
stock options
|
2,255 | -- | 198,824 | |||||||||
Dilutive
potential common shares
|
2,255 | -- | 198,824 | |||||||||
Denominator
for diluted earnings per
|
||||||||||||
share-adjusted
weighted-average
|
||||||||||||
shares
and assumed conversions
|
8,216,383 | 8,620,024 | 8,669,061 | |||||||||
Basic
earnings per share
|
$ | 0.46 | $ | 0.07 | $ | 0.27 | ||||||
Diluted
earnings per share
|
$ | 0.46 | $ | 0.07 | $ | 0.26 |
Number
of
|
||||||||
Class
A Shares
|
Option
Price
|
|||||||
Outstanding
at December 31, 2006
|
3,664 | $ | 2.76 | |||||
Cancelled
|
(3,664 | ) | ||||||
Outstanding
at December 31, 2007
|
-- |
Number
of Class A Shares
|
Option
Price
|
|||||||
Outstanding
at December 31, 2006
|
280,243 | $ | 1.79 - $4.86 | |||||
Adjustment
for the effect of stock dividends
|
13,891 | |||||||
Exercised --
|
-- | |||||||
Cancelled
|
(2,431 | ) | ||||||
Outstanding
at December 31, 2007
|
291,703 | $ | 1.71 - $4.62 | |||||
Adjustment
for the effect of stock dividends
|
13,466 | |||||||
Exercised
|
-- | |||||||
Cancelled
|
(22,402 | ) | ||||||
Outstanding
at December 31, 2008
|
282,767 | $ | 1.62 - $4.40 | |||||
Adjustment
for the effect of stock dividends
|
13,902 | |||||||
Exercised
|
-- | |||||||
Cancelled
|
(4,719 | ) | ||||||
Outstanding
at December 31, 2009
|
291,950 | $ | 1.54 - $4.19 | |||||
Exercisable
at end of year
|
291,950 | $ | 1.54 - $4.19 | |||||
Available
options for future grant
|
||||||||
1993
Stock Incentive Plan
|
-- | |||||||
Weighted
average contractual term of options
|
||||||||
outstanding
at December 31, 2009
|
2.7
years
|
|||||||
Aggregated
intrinsic value of options outstanding
|
||||||||
at
December 31, 2009
|
$ | -0- |
Number
of
|
||||||||
Class
A Shares
|
Option
Price
|
|||||||
Outstanding
at December 31, 2006
|
17,733 | $ | 1.90 - $4.94 | |||||
Adjustment
for the effect of stock dividends
|
695 | |||||||
Granted
|
-- | |||||||
Exercised
|
(3,828 | ) | ||||||
Outstanding
at December 31, 2007
|
14,600 | $ | 2.70 - $4.71 | |||||
Adjustment
for the effect of stock dividends
|
474 | |||||||
Granted
|
-- | |||||||
Cancelled
|
(5,104 | ) | ||||||
Outstanding
at December 31, 2008
|
9,970 | $ | 2.58 - $3.02 | |||||
Adjustment
for the effect of stock dividends
|
244 | |||||||
Granted
|
-- | |||||||
Cancelled
|
(5,110 | ) | ||||||
Outstanding
at December 31, 2009
|
5,104 | $ | 2.45 | |||||
Exercisable
at end of year
|
5,104 | $ | 2.45 | |||||
Available
options for future
|
||||||||
grant
2000 Director Plan
|
-0- | |||||||
Weighted
average contractual term of options
|
||||||||
outstanding
at December 31, 2009
|
.83
years
|
|||||||
Aggregated
intrinsic value of options outstanding
|
||||||||
at
December 31, 2009
|
$ | 4,934 |
Number
of
|
Number
of
|
Option
|
||||
Class
A Shares
|
Class
C Shares(1)
|
Price(1)
|
||||
Outstanding
at December 31, 2006
|
479,296
|
1,157,625
|
$2.79
- $3.50
|
|||
Adjustment
for the effect of stock dividends
|
21,674
|
--
|
||||
Granted
|
--
|
--
|
||||
Exercised
|
(44,650)
|
(1,157,625)
|
||||
Cancelled
|
(1,158)
|
--
|
||||
Outstanding
at December 31, 2007
|
455,162
|
--
|
$2.66
- $3.33
|
|||
Adjustment
for the effect of stock dividends
|
41,952
|
55,538
|
||||
Granted
|
389,923
|
1,110,770
|
||||
Exercised
|
--
|
--
|
||||
Cancelled
|
(6,032)
|
--
|
||||
Outstanding
at December 31, 2008
|
881,005
|
1,166,308
|
$1.43
- $4.03
|
|||
Adjustment
for the effect of stock dividends
|
47,994
|
108,316
|
||||
Granted
|
206,500
|
1,000,000
|
||||
Exercised
|
(63,814)
|
--
|
||||
Cancelled
|
(63,814)
|
--
|
||||
Outstanding
at December 31, 2009
|
1,007,871
|
2,274,624
|
$1.36
- $3.84
|
|||
Exercisable
at end of year
|
791,047
|
1,224,624
|
$1.36
- $3.84
|
|||
Available
options for future grant
|
||||||
2003
Stock Incentive Plan
|
500,150
|
5
|
||||
Weighted
average contractual term of options
|
||||||
outstanding
at December 31, 2009
|
5.5
years
|
|||||
Aggregated
intrinsic value of options
|
||||||
outstanding
at December 31, 2009
|
$777,670
|
Number
of
|
||||||||
Class
A Shares
|
Option
Price
|
|||||||
Outstanding
at December 31, 2006
|
4,200 | $ | 5.06 | |||||
Granted
|
4,000 | |||||||
Adjustment
for the effect of stock dividends
|
410 | |||||||
Outstanding
at December 31, 2007
|
8,610 | $ | 3.57 - $4.82 | |||||
Granted
|
34,000 | |||||||
Adjustment
for the effect of stock dividends
|
2,131 | |||||||
Outstanding
at December 31, 2008
|
44,741 | $ | 1.34 - $4.59 | |||||
Granted
|
24,000 | |||||||
Adjustment
for the effect of stock dividends
|
3,437 | |||||||
Outstanding
at December 31, 2009
|
72,178 | $ | 1.28 - $4.37 | |||||
Exercisable
at end of year
|
46,978 | $ | 1.28 - $4.37 | |||||
Available
options for future grant
|
||||||||
2006
Stock Incentive Plan
|
49,373 | |||||||
Weighted
average contractual term of options
|
||||||||
outstanding
at December 31, 2009
|
8.7
years
|
|||||||
Aggregated
intrinsic value of options
|
||||||||
outstanding at
December 31, 2009
|
$ | 51,907 |
2009
|
||||||||||||||||||||
Life
|
Cemetery/
|
Reconciling
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Items
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From
external sources:
|
||||||||||||||||||||
Revenue
from customers
|
$ | 38,413,329 | $ | 11,973,676 | $ | 144,860,399 | $ | -- | $ | 195,247,404 | ||||||||||
Net
investment income
|
15,040,367 | 688,406 | 5,306,386 | -- | 21,035,159 | |||||||||||||||
Realized
gains on
|
||||||||||||||||||||
investments
and other assets
|
897,312 | -- | -- | -- | 897,312 | |||||||||||||||
Other
revenues
|
778,107 | 174,357 | 462,216 | 1,414,680 | ||||||||||||||||
Intersegment
revenues:
|
||||||||||||||||||||
Net
investment income
|
5,040,934 | 1,092,056 | 216,110 | (6,349,100 | ) | -- | ||||||||||||||
Total
revenues
|
60,170,049 | 13,928,495 | 150,845,111 | (6,349,100 | ) | 218,594,555 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Death
and other policy benefits
|
20,681,268 | -- | -- | -- | 20,681,268 | |||||||||||||||
Increase
in future policy benefits
|
15,238,380 | -- | -- | -- | 15,238,380 | |||||||||||||||
Amortization
of deferred policy
and
preneed acquisition costs and
|
||||||||||||||||||||
value of business acquired
|
6,756,531 | 403,957 | -- | -- | 7,160,488 | |||||||||||||||
Depreciation
|
628,783 | 780,253 | 547,179 | -- | 1,956,215 | |||||||||||||||
General,
administrative and
|
||||||||||||||||||||
other
costs:
|
||||||||||||||||||||
Intersegment
|
24,000 | 65,064 | 236,487 | (325,551 | ) | -- | ||||||||||||||
Provision
for loan losses
|
-- | -- | 19,547,162 | -- | 19,547,162 | |||||||||||||||
Other
|
16,110,335 | 11,539,185 | 116,687,703 | -- | 144,337,223 | |||||||||||||||
Interest
expense:
|
||||||||||||||||||||
Intersegment
|
764,554 | 1,019,828 | 4,239,167 | (6,023,549 | ) | -- | ||||||||||||||
Other
|
400,299 | 247,954 | 2,677,908 | -- | 3,326,161 | |||||||||||||||
Total
benefits and expenses
|
60,604,150 | 14,056,241 | 143,935,606 | (6,349,100 | ) | 212,246,897 | ||||||||||||||
Earnings
(losses) before income taxes
|
$ | (434,101 | ) | $ | (127,746 | ) | $ | 6,909,505 | $ | -- | $ | 6,347,658 | ||||||||
Identifiable
assets
|
$ | 435,412,810 | $ | 101,357,826 | $ | 39,480,787 | $ | (105,674,525 | ) | $ | 470,576,898 | |||||||||
Expenditures
for long-lived assets
|
$ | 134,948 | $ | 139,259 | $ | 462,003 | $ | -- | $ | 736,210 |
2008
|
||||||||||||||||||||
Life
|
Cemetery/
|
Reconciling
|
||||||||||||||||||
Insurance
|
Mortuary
|
Mortgage
|
Items
|
Consolidated
|
||||||||||||||||
Revenues:
|
||||||||||||||||||||
From
external sources:
|
||||||||||||||||||||
Revenue
from customers
|
$ | 35,981,297 | $ | 12,725,930 | $ | 143,411,459 | $ | -- | $ | 192,118,686 | ||||||||||
Net
investment income
|
15,931,523 | 953,284 | 11,218,702 | -- | 28,103,509 | |||||||||||||||
Realized
gains on
|
||||||||||||||||||||
investments
and other assets
|
(1,642,636 | ) | (91,079 | ) | -- | -- | (1,733,715 | ) | ||||||||||||
Other
revenues
|
386,354 | 177,997 | 451,019 | 1,015,370 | ||||||||||||||||
Intersegment
revenues:
|
||||||||||||||||||||
Net
investment income
|
4,818,907 | 120,771 | 358,455 | (5,298,133 | ) | -- | ||||||||||||||
Total
revenues
|
55,475,445 | 13,886,903 | 155,439,635 | (5,298,133 | ) | 219,503,850 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Death
and other policy benefits
|
19,195,170 | -- | -- | -- | 19,195,170 | |||||||||||||||
Increase
in future policy benefits
|
13,709,135 | -- | -- | -- | 13,709,135 | |||||||||||||||
Amortization
of deferred policy
and
preneed acquisition costs and
|
||||||||||||||||||||
value of business acquired
|
5,586,848 | 423,425 | -- | -- | 6,010,273 | |||||||||||||||
Depreciation
|
663,600 | 863,163 | 534,539 | -- | 2,061,302 | |||||||||||||||
General,
administrative and
|
||||||||||||||||||||
other
costs:
|
||||||||||||||||||||
Intersegment
|
24,000 | 65,064 | 257,409 | (346,473 | ) | -- | ||||||||||||||
Other
|
17,766,109 | 12,231,653 | 140,351,243 | -- | 170,349,005 | |||||||||||||||
Interest
expense:
|
||||||||||||||||||||
Intersegment
|
279,489 | 171,057 | 4,501,114 | (4,951,660 | ) | -- | ||||||||||||||
Other
|
191,927 | 256,728 | 6,999,799 | -- | 7,448,454 | |||||||||||||||
Total
benefits and expenses
|
57,416,278 | 14,011,090 | 152,644,104 | (5,298,133 | ) | 218,773,339 | ||||||||||||||
Earnings
(losses) before income taxes
|
$ | (1,940,833 | ) | $ | (124,187 | ) | $ | 2,795,531 | $ | -- | $ | 730,511 | ||||||||
Identifiable
assets
|
$ | 421,550,749 | $ | 64,737,730 | $ | 26,145,713 | $ | (70,629,667 | ) | $ | 441,804,525 | |||||||||
Expenditures
for long-lived assets
|
$ | 308,226 | $ | 372,511 | $ | 643,112 | $ | -- | $ | 1,323,849 |
2007
|
||||||||||||||||||||
Life
|
Cemetery/
|
Reconciling
|
||||||||||||||||||
Revenues:
|
Insurance
|
Mortuary
|
Mortgage
|
Items
|
Consolidated
|
|||||||||||||||
From
external sources:
|
||||||||||||||||||||
Revenue
from customers
|
$ | 32,262,837 | $ | 13,188,655 | $ | 130,472,166 | $ | -- | $ | 175,923,658 | ||||||||||
Net
investment income
|
14,575,311 | 942,637 | 16,438,496 | -- | 31,956,444 | |||||||||||||||
Realized
gains on
|
||||||||||||||||||||
investments
and other assets
|
193,109 | 814,465 | -- | -- | 1,007,574 | |||||||||||||||
Other
revenues
|
157,670 | 349,789 | 352,947 | -- | 860,406 | |||||||||||||||
Intersegment
revenues:
|
||||||||||||||||||||
Net
investment income
|
6,866,489 | 116,004 | 472,785 | (7,455,278 | ) | -- | ||||||||||||||
Total
revenues
|
54,055,416 | 15,411,550 | 147,736,394 | (7,455,278 | ) | 209,748,082 | ||||||||||||||
Expenses:
|
||||||||||||||||||||
Death
and other policy benefits
|
18,353,228 | -- | -- | -- | 18,353,228 | |||||||||||||||
Increase
in future policy benefits
|
11,389,019 | -- | -- | -- | 11,389,019 | |||||||||||||||
Amortization
of deferred policy
|
||||||||||||||||||||
and
pre-need acquisition costs
and
value of business acquired
|
5,195,549 | 375,250 | -- | -- | 5,570,799 | |||||||||||||||
Depreciation
|
715,478 | 829,196 | 537,976 | -- | 2,082,650 | |||||||||||||||
General,
administration and other costs:
|
||||||||||||||||||||
Intersegment
|
24,000 | 62,869 | 287,864 | (374,733 | ) | -- | ||||||||||||||
Other
|
14,136,583 | 12,581,767 | 129,240,135 | -- | 155,958,485 | |||||||||||||||
Interest
expense:
|
||||||||||||||||||||
Intersegment
|
498,272 | 172,683 | 6,409,590 | (7,080,545 | ) | -- | ||||||||||||||
Other
|
253,720 | 280,506 | 12,736,644 | -- | 13,270,870 | |||||||||||||||
Total
benefits and expenses
|
50,565,849 | 14,302,271 | 149,212,209 | (7,455,278 | ) | 206,625,051 | ||||||||||||||
Earnings
(losses) before income taxes
|
$ | 3,489,567 | $ | 1,109,279 | $ | (1,475,815 | ) | $ | -- | $ | 3,123,031 | |||||||||
Identifiable
assets
|
$ | 397,295,306 | $ | 61,102,244 | $ | 24,181,819 | $ | (64,416,724 | ) | $ | 418,162,645 | |||||||||
Expenditures
for long-lived assets
|
$ | 850,270 | $ | 1,248,701 | $ | 910,308 | $ | -- | $ | 3,009,279 |
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
|
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
|
||||||||||||||||
Investment
in securities available for sale
|
$ | 6,936,137 | $ | 6,936,137 | $ | - | $ | - | ||||||||
Short-term
investments
|
7,144,349 | 7,144,349 | - | - | ||||||||||||
Restricted
assets of cemeteries and mortuaries
|
1,677,273 | 1,677,273 | - | - | ||||||||||||
Cemetery
perpetual care trust investments
|
1,104,046 | 1,104,046 | - | - | ||||||||||||
Derivatives
- interest rate lock commitments
|
1,770,193 | - | - | 1,770,193 | ||||||||||||
Total
assets accounted for at fair value on a recurring basis
|
$ | 18,631,998 | $ | 16,861,805 | $ | - | $ | 1,770,193 | ||||||||
Liabilities
accounted for at fair value on a recurring
basis
|
||||||||||||||||
Investment
type insurance contracts
|
$ | (115,763,748 | ) | $ | - | $ | - | $ | (115,763,748 | ) | ||||||
Derivatives
- bank loan interest rate swaps
|
(101,251 | ) | - | - | (101,251 | ) | ||||||||||
-
call options
|
(134,492 | ) | (134,492 | ) | ||||||||||||
-
interest rate lock commitments
|
(215,481 | ) | - | - | (215,481 | ) | ||||||||||
Total
liabilities accounted for at fair value on a recurring
basis
|
$ | (116,214,972 | ) | $ | - | $ | - | $ | (116,214,972 | ) |
Investment
Type Insurance Contracts
|
Interest
Rate Lock Commitments
|
Bank
Loan Interest Rate Swaps
|
Call
Options
|
|||||||||||||
Balance
- December 31, 2008
|
$ | (112,351,916 | ) | $ | 362,231 | $ | (167,483 | ) | $ | - | ||||||
Options
sold
|
- | - | - | (613,541 | ) | |||||||||||
Total
Losses (Gains):
|
||||||||||||||||
Included
in earnings
|
(3,411,832 | ) | - | - | 479,049 | |||||||||||
Included
in other
|
||||||||||||||||
comprehensive
income (loss)
|
- | 1,192,480 | 66,277 | - | ||||||||||||
Balance
- December 31, 2009
|
$ | (115,763,748 | ) | $ | 1,554,711 | $ | (101,206 | ) | $ | (134,492 | ) |
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
|
||||||||||||||||
Investment
in securities available for sale
|
$ | 5,854,237 | $ | 5,854,237 | $ | - | $ | - | ||||||||
Short-term
investments
|
5,282,986 | 5,282,986 | - | - | ||||||||||||
Restricted
assets of cemeteries and mortuaries
|
1,241,038 | 1,241,038 | - | - | ||||||||||||
Cemetery
perpetual care trust investments
|
1,840,119 | 1,840,119 | - | - | ||||||||||||
Derivatives
- interest rate lock commitments
|
2,372,452 | - | - | 2,372,452 | ||||||||||||
Total
assets accounted for at fair value on a recurring basis
|
$ | 16,590,832 | $ | 14,218,380 | $ | - | $ | 2,372,452 | ||||||||
Liabilities
accounted for at fair value on a recurring
basis
|
||||||||||||||||
Investment
type insurance contracts
|
$ | (112,351,916 | ) | $ | - | $ | - | $ | (112,351,916 | ) | ||||||
Derivatives
- bank loan interest rate swaps
|
(167,483 | ) | - | - | (167,483 | ) | ||||||||||
- interest rate lock commitments
|
(2,010,221 | ) | - | - | (2,010,221 | ) | ||||||||||
Total
liabilities accounted for at fair value on a recurring
basis
|
$ | (114,529,620 | ) | $ | - | $ | - | $ | (114,529,620 | ) |
Investment
Type Insurance Contracts
|
Interest
Rate Lock Commitments
|
Bank
Loan Interest Rate Swaps
|
||||||||||
Balance
- December 31, 2007
|
$ | (106,939,120 | ) | $ | 627,116 | $ | (26,951 | ) | ||||
Total
Losses:
|
||||||||||||
Included
in earnings
|
(5,412,796 | ) | - | - | ||||||||
Included
in other
|
||||||||||||
comprehensive
income
|
- | (264,885 | ) | (140,532 | ) | |||||||
Balance
- December 31, 2008
|
$ | (112,351,916 | ) | $ | 362,231 | $ | (167,483 | ) |
December
31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Unrealized
gains (losses) on available
|
||||||||||||
for-sale
securities
|
$ | (275,211 | ) | $ | (4,125,253 | ) | $ | 245,447 | ||||
Reclassification
adjustment for net realized
|
||||||||||||
gains
in net income
|
660,354 | 759,870 | 175,130 | |||||||||
Net
unrealized gains (losses) before taxes
|
385,143 | (3,365,383 | ) | 420,577 | ||||||||
Tax
(expense) benefit
|
(39,697 | ) | 490,790 | (57,046 | ) | |||||||
Net
|
345,446 | (2,874,593 | ) | 363,531 | ||||||||
Potential
unrealized gains (losses) for
|
||||||||||||
derivative
bank loans (interest rate swaps)
|
||||||||||||
before
taxes
|
66,277 | (140,577 | ) | (160,021 | ) | |||||||
Tax
(expense) benefit
|
(22,534 | ) | 47,804 | 54,407 | ||||||||
Net
|
43,743 | (92,773 | ) | (105,614 | ) | |||||||
Potential
unrealized gains (losses) for derivative
|
||||||||||||
mortgage
loans before taxes
|
1,192,481 | (264,885 | ) | (582,425 | ) | |||||||
Tax
(expense) benefit
|
(405,444 | ) | 90,061 | 198,024 | ||||||||
Net
|
787,037 | (174,824 | ) | (384,401 | ) | |||||||
Other
items:
|
||||||||||||
Company
stock held in escrow transferred
|
||||||||||||
to
treasury stock
|
- | 1,982,620 | - | |||||||||
Other
|
- | (20,120 | ) | 20,120 | ||||||||
- | 1,962,500 | 20,120 | ||||||||||
Other
comprehensive income
|
$ | 1,139,075 | $ | (1,179,690 | ) | $ | (106,364 | ) |
Beginning
Balance December 31,
2008
|
Change
for the period
|
Ending
Balance December 31,
2009
|
||||||||||
Unrealized
net gains on available-
|
||||||||||||
for-sale
securities and trust investments
|
$ | 288,583 | $ | 345,446 | $ | 634,029 | ||||||
Unrealized
gains on derivative
|
||||||||||||
mortgage
loans
|
239,072 | 787,037 | 1,026,109 | |||||||||
Unrealized
gains ( losses)
|
||||||||||||
on derivative
bank
|
||||||||||||
loan
interest rate swaps
|
(110,554 | ) | 43,743 | (66,811 | ) | |||||||
Other
comprehensive income
|
$ | 417,101 | $ | 1,176,226 | $ | 1,593,327 |
Beginning
Balance December 31, 2007
|
Change
for the period
|
Ending
Balance December 31, 2008
|
||||||||||
Unrealized
net gains on available-
|
||||||||||||
for-sale
securities and trust investments
|
$ | 3,163,176 | $ | (2,874,593 | ) | $ | 288,583 | |||||
Unrealized
gains on derivative
|
||||||||||||
mortgage
loans
|
413,896 | (174,824 | ) | 239,072 | ||||||||
Unrealized
gains ( losses)
|
||||||||||||
on derivative
bank
|
||||||||||||
loan
interest rate swaps
|
(17,781 | ) | (92,773 | ) | (110,554 | ) | ||||||
Other
comprehensive income
|
3,559,291 | (3,142,190 | ) | 417,101 | ||||||||
Other
items:
|
||||||||||||
Acquisitions
of company stock
|
||||||||||||
held
in escrow
|
(1,982,620 | ) | 1,982,620 | -- | ||||||||
Other
|
20,120 | (20,120 | ) | -- | ||||||||
Total
other comprehensive income
|
||||||||||||
and
other items
|
$ | 1,596,791 | $ | (1,179,690 | ) | $ | 417,101 |
Beginning
Balance December 31, 2006
|
Change
for the period
|
Ending
Balance December 31, 2007
|
||||||||||
Unrealized
gains on available-
|
||||||||||||
for-sale
securities
|
$ | 2,799,645 | $ | 363,531 | $ | 3,163,176 | ||||||
Unrealized
gains on derivative
|
||||||||||||
mortgage
loans
|
798,297 | (384,401 | ) | 413,896 | ||||||||
Unrealized
gains ( losses)
|
||||||||||||
on derivative
bank
|
||||||||||||
loan
interest rate swaps
|
87,833 | (105,614 | ) | (17,781 | ) | |||||||
Other
comprehensive income
|
3,685,775 | (126,484 | ) | 3,559,291 | ||||||||
Other
items:
|
||||||||||||
Acquisitions
of company stock
|
||||||||||||
held
in escrow
|
(1,982,620 | ) | 20,120 | (1,962,500 | ) | |||||||
Total
other comprehensive income
|
||||||||||||
and
other items
|
$ | 1,703,155 | $ | (106,364 | ) | $ | 1,596,791 |
20)
|
Derivative
Commitments
|
20)
|
Derivative
Commitments (Continued)
|
Fair
Value of Derivative Instruments
|
|||||||||||||||
Asset
Derivatives
|
Liability
Derivatives
|
||||||||||||||
December
31, 2009
|
December
31, 2008
|
December
31, 2009
|
December
31, 2008
|
||||||||||||
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
||||||||
Derivatives
designated as hedging instruments:
|
|||||||||||||||
Interest
rate lock and forward sales commitments
|
other
assets
|
$1,770,193
|
other
assets
|
$2,372,452
|
Other
liabilities
|
$215,481
|
Other
liabilities
|
$2,010,221
|
|||||||
Call
Options
|
--
|
--
|
--
|
--
|
Other
liabilities
|
134,492
|
Other
liabilities
|
--
|
|||||||
Interest
rate swaps
|
--
|
--
|
--
|
--
|
Bank
loans payable
|
101,206
|
Bank
loans payable
|
167,483
|
|||||||
Total
|
$1,770,193
|
$2,372,452
|
$451,179
|
$2,177,704
|
Gross
Amount Gain (Loss) Recognized in OCI
|
||||||||||||
Years
ended December 31,
|
||||||||||||
Derivative - Cash Flow
Hedging Relationships:
|
2009
|
2008
|
2007
|
|||||||||
Interest
Rate Lock Commitments
|
$ | 1,192,481 | $ | (264,885 | ) | $ | (582,425 | ) | ||||
Interest
Rate Swaps
|
66,277 | (140,577 | ) | (160,021 | ) | |||||||
Call
Options
|
(42,999 | ) | - | - | ||||||||
Total
|
$ | 1,215,759 | $ | (405,462 | ) | $ | (742,446 | ) |
2009
|
||||||||||||||||
Three
Months Ended
|
||||||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||||||
Revenues
|
$ | 59,492,097 | $ | 58,009,932 | $ | 48,654,667 | $ | 52,437,859 | ||||||||
Benefits
and expenses
|
54,552,194 | 53,525,563 | 48,588,181 | 55,580,959 | ||||||||||||
Earnings
before income taxes
|
4,939,903 | 4,484,369 | 66,486 | (3,143,100 | ) | |||||||||||
Income
tax expense
|
1,706,893 | 1,393,980 | 3,437 | (530,532 | ) | |||||||||||
Net
earnings
|
3,233,010 | 3,090,389 | 63,049 | (2,612,568 | ) | |||||||||||
Net
earnings per common share
|
$ | 0.40 | $ | 0.38 | $ | 0.01 | $ | (0.33 | ) | |||||||
Net
earnings per common share
|
||||||||||||||||
assuming
dilution
|
$ | 0.40 | $ | 0.38 | $ | 0.01 | $ | (0.33 | ) |
2008
|
||||||||||||||||
Three
Months Ended
|
||||||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||||||
Revenues
|
$ | 53,221,500 | $ | 60,402,195 | $ | 53,083,935 | $ | 52,796,220 | ||||||||
Benefits
and expenses
|
51,276,565 | 57,314,947 | 53,812,100 | 56,369,727 | ||||||||||||
Earnings
before income taxes
|
1,944,935 | 3,087,248 | (728,165 | ) | (3,573,507 | ) | ||||||||||
Income
tax expense
|
569,479 | 986,615 | 39,877 | (1,440,313 | ) | |||||||||||
Net
earnings
|
1,375,456 | 2,100,633 | (768,042 | ) | (2,133,194 | ) | ||||||||||
Net
earnings per common share
|
$ | 0.17 | $ | 0.26 | $ | (0.09 | ) | $ | (0.27 | ) | ||||||
Net
earnings per common share
|
||||||||||||||||
assuming
dilution
|
$ | 0.17 | $ | 0.26 | $ | (0.09 | ) | $ | (0.27 | ) |
2007
|
||||||||||||||||
Three
Months Ended
|
||||||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||||||
Revenues
|
$ | 49,046,152 | $ | 54,315,888 | $ | 51,663,941 | $ | 54,722,101 | ||||||||
Benefits
and expenses
|
47,988,774 | 52,956,038 | 52,801,454 | 52,878,785 | ||||||||||||
Earnings
before income taxes
|
1,057,378 | 1,359,850 | (1,137,513 | ) | 1,843,316 | |||||||||||
Income
tax expense
|
312,837 | 328,822 | (475,069 | ) | 691,045 | |||||||||||
Net
earnings
|
744,541 | 1,031,028 | (662,444 | ) | 1,152,271 | |||||||||||
Net
earnings per common share
|
$ | 0.09 | $ | 0.13 | $ | (0.08 | ) | $ | 0.13 | |||||||
Net
earnings per common share
|
||||||||||||||||
assuming
dilution
|
$ | 0.09 | $ | 0.12 | $ | (0.08 | ) | $ | 0.13 |
|
·
|
Pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of assets of the
Company,
|
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures are being made
only in accordance with authorizations of management and the board of
directors of the Company, and
|
|
·
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Company's assets that
could have a material effect on the financial
statements.
|
Age
|
Position with the
Company
|
|||
George
R. Quist
|
89
|
Chairman
of the Board and Chief Executive Officer
|
||
Scott
M. Quist
|
56
|
President,
Chief Operating Officer and Director
|
||
Stephen
M. Sill
|
64
|
Vice
President, Treasurer and Chief Financial Officer
|
||
J.
Lynn Beckstead, Jr.
|
56
|
Vice
President Mortgage Operations and Director
|
||
Christie
Q. Overbaugh
|
61
|
Senior
Vice President of Internal Operations
|
||
Jeffrey
R. Stephens
|
56
|
General
Counsel and Corporate Secretary
|
||
Charles
L. Crittenden
|
89
|
Director
|
||
Robert
G. Hunter
|
50
|
Director
|
||
H.
Craig Moody
|
58
|
Director
|
||
Norman
G. Wilbur
|
71
|
Director
|
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Options
Awards
($)
|
Non-Equity
Incentive Plan Compen-sation
($)
|
Change
in Pension Value Non-qualified Deferred Compensation Earnings
(2)
($)
|
All
Other Compen-sation (3)
($)
|
Total
($)
|
|||||||||||||||||||||||||
George
R. Quist(1)
|
2009
|
$ | 252,513 | $ | 51,580 | -- | -- | -- | $ | - | $ | 11,252 | $ | 315,345 | ||||||||||||||||||||
Chairman
of the
|
2008
|
236,013 | 50,755 | -- | -- | -- | - | 10,959 | 297,727 | |||||||||||||||||||||||||
Board
and Chief
|
2007
|
219,513 | - | -- | -- | -- | 24,200 | 10,760 | 254,473 | |||||||||||||||||||||||||
Executive
Officer
|
||||||||||||||||||||||||||||||||||
Scott
M. Quist(1)
|
2009
|
$ | 357,317 | $ | 92,650 | -- | -- | -- | $ | - | $ | 32,846 | $ | 482,813 | ||||||||||||||||||||
President
and Chief
|
2008
|
332,400 | 91,350 | -- | -- | -- | - | 32,791 | 456,541 | |||||||||||||||||||||||||
Operating
Officer
|
2007
|
303,900 | - | -- | -- | -- | 25,300 | 33,172 | 362,372 | |||||||||||||||||||||||||
Stephen
M. Sill
|
2009
|
$ | 138,000 | $ | 11,413 | -- | -- | -- | $ | - | $ | 17,035 | $ | 166,448 | ||||||||||||||||||||
Vice
President,
|
2008
|
131,969 | 11,113 | -- | -- | -- | - | 17,074 | 160,156 | |||||||||||||||||||||||||
Treasurer
and Chief
|
2007
|
125,292 | 6,000 | -- | -- | -- | 14,179 | 15,878 | 161,349 | |||||||||||||||||||||||||
Financial
Officer
|
||||||||||||||||||||||||||||||||||
J.
Lynn Beckstead, Jr.
|
2009
|
$ | 227,583 | $ | 137,221 | -- | -- | -- | $ | - | $ | 21,667 | $ | 386,471 | ||||||||||||||||||||
Vice
President of
|
2008
|
217,583 | 119,741 | -- | -- | -- | - | 21,528 | 358,852 | |||||||||||||||||||||||||
Mortgage
Operations
|
2007
|
207,500 | 46,888 | -- | -- | -- | 21,166 | 21,140 | 296,694 | |||||||||||||||||||||||||
Jeffrey
R. Stephens
|
2009
|
$ | 140,708 | $ | 8,000 | -- | -- | -- | $ | - | $ | 11,235 | $ | 159,943 | ||||||||||||||||||||
General
Counsel
|
2008
|
133,417 | 8,000 | -- | -- | -- | - | 11,335 | 152,752 | |||||||||||||||||||||||||
and
Corporate Secretary
|
2007
|
120,000 | - | -- | -- | -- | - | 10,202 | 130,202 |
(1)
|
George
R. Quist is the father of Scott M.
Quist.
|
(2)
|
The
amounts indicated under “Change in Pension Value and Non-qualified
Deferred Compensation Earnings” consist of amounts contributed by the
Company into a trust for the benefit of the Named Executive Officers under
the Company’s Deferred Compensation
Plan
|
(3)
|
The
amounts indicated under “All Other Annual Compensation” consist of the
following amounts paid by the Company for the benefit of the named
executive officers:
|
|
a)
|
payments
related to the operation of automobiles were for George R. Quist
($2,400 for each of the years 2009, 2008 and 2007); Scott M.
Quist ($7,200 for each of the years 2009, 2008 and 2007); Stephen M. Sill
($5,700 for 2009 and 2008, and $4,275 for 2007); and Jeffrey R. Stephens
($-0- for 2009). However, such payments do not include the furnishing of
an automobile by the Company to George R. Quist, Scott M. Quist and J.
Lynn Beckstead Jr., nor the payment of insurance and property taxes with
respect to the automobiles operated by the such executive
officers;
|
|
b)
|
group
life insurance premiums paid by the Company to a group life insurance plan
for George R. Quist ($125, 154 and $9 for 2009, 2008 and 2007,
respectively); Scott M. Quist, Stephen M. Sill, and J. Lynn Beckstead Jr.
($211, $218 and $250 each for 2009, 2008 and 2007, respectively); and
Jeffrey R. Stephens ($109, $99 and $42 for 2009, 2008 and 2007,
respectively);
|
|
c)
|
life
insurance premiums paid by the Company for the benefit of George R. Quist
($4,644 for each of the years 2009, 2008 and 2007); Scott M. Quist
($14,056 for 2009 and 2008, and $14,340 for 2007); Stephen M. Sill ($2,976
for each of the years 2009, 2008 and 2007); J. Lynn Beckstead Jr. ($4,200
for each of the years 2009, 2008 and 2007); and Jeffrey R. Stephens ($-0-
for each of the years 2009, 2008 and
2007);
|
|
d)
|
medical
insurance premiums paid by the Company to a medical insurance plan; George
R. Quist ($3,795 for 2009, $3,491 for 2008, and $3,419 for 2007); Scott M.
Quist and J. Lynn Beckstead Jr. ($11,091 each for 2009, $11,047 each for
2008, and $11,094 each for 2007); Stephen M. Sill ($7,860 for 2009, $7,910
for 2008 and $8,089 for 2007); and Jeffrey R. Stephens ($10,838 for 2009,
$11,047 for 2008, and $10,199 for
2007);
|
|
e)
|
long
term disability insurance paid by the Company to a provider of such
insurance; George R. Quist, Scott M. Quist, Stephen M, Sill, J. Lynn
Beckstead Jr., and Jeffrey R. Stephens ($288 for each of years 2009, 2008
and 2007);
|
|
f)
|
membership
dues paid by the Company to Alpine Country Club for the benefit of J. Lynn
Beckstead Jr. ($5,877 for 2009, $5,793 for 2008, and $5,308 for
2007);
|
Registrant
|
||||||||||||||||||||||||||||||||||
Contribu-
|
Dividends
|
|||||||||||||||||||||||||||||||||
Perks
|
tions
to
|
or
|
||||||||||||||||||||||||||||||||
and
|
Payments/
|
Defined
|
Earnings
|
|||||||||||||||||||||||||||||||
Other
|
Tax
|
Discounted
|
Accruals
|
Contribu-
|
on
Stock
|
|||||||||||||||||||||||||||||
Name of |
Personal
|
Reimburse-
|
Securities
|
on
Termin-
|
tion
|
Insurance
|
or
Option
|
|||||||||||||||||||||||||||
Executive Officer
|
Year
|
Benefits
|
ments
|
Purchases
|
ation Plans
|
Plans
|
Premiums
|
Awards
|
Other(1)
|
|||||||||||||||||||||||||
George
R. Quist
|
2009
|
$ | 2,400 | -- | -- | -- | -- | $ | 8,852 | -- | -- | |||||||||||||||||||||||
2008
|
2,400 | -- | -- | -- | -- | 8,559 | -- | -- | ||||||||||||||||||||||||||
2007
|
2,400 | -- | -- | -- | -- | 8,360 | -- | -- | ||||||||||||||||||||||||||
Scott
M. Quist
|
2009
|
$ | 7,200 | -- | -- | -- | -- | $ | 25,646 | -- | -- | |||||||||||||||||||||||
2008
|
7,200 | -- | -- | -- | -- | 25,591 | -- | -- | ||||||||||||||||||||||||||
2007
|
7,200 | -- | -- | -- | -- | 25,972 | -- | -- | ||||||||||||||||||||||||||
Stephen
M. Sill
|
2009
|
$ | 5,700 | -- | -- | -- | -- | $ | 11,335 | -- | -- | |||||||||||||||||||||||
2008
|
5,700 | -- | -- | -- | -- | 11,374 | -- | -- | ||||||||||||||||||||||||||
2007
|
4,275 | -- | -- | -- | -- | 11,603 | -- | -- | ||||||||||||||||||||||||||
J.
Lynn Beckstead Jr.
|
2009
|
$ | 5,877 | -- | -- | -- | -- | $ | 15,790 | -- | -- | |||||||||||||||||||||||
2008
|
5,793 | -- | -- | -- | -- | 15,735 | -- | -- | ||||||||||||||||||||||||||
2007
|
5,308 | -- | -- | -- | -- | 15,832 | -- | -- | ||||||||||||||||||||||||||
Jeffrey
R. Stephens
|
2009
|
$ | - | -- | -- | -- | -- | $ | 11,235 | -- | -- | |||||||||||||||||||||||
2008
|
- | -- | -- | -- | -- | 11,335 | -- | -- | ||||||||||||||||||||||||||
2007
|
- | -- | -- | -- | -- | 10,202 | -- | -- |
Estimated
Future Payouts
Under
Equity Incentive Plan Awards
|
All Other Awards: Number of Securities Underlying | Exercise or Base Price of Option | Closing Price | Grant Date Fair Value of Stock and Option | ||||||||||||||||||||||||||
Name of Executive Officer |
Grant
Date
|
Threshold
($)
|
Target
($)
|
Maximum
($)
|
Options
(#)
|
Awards
($/Sh)
|
on Grant Date ($/Sh) | Awards
($)
|
||||||||||||||||||||||
George
R. Quist
|
12/4/09
|
-- | -- | -- | 100,000 | $ | 3.872 | $ | 3.520 | $ | 170,000 | |||||||||||||||||||
Scott
M. Quist
|
12/4/09
|
-- | -- | -- | 100,000 | (1 | ) | 3.872 | 3.520 | 170,000 | ||||||||||||||||||||
Stephen
M. Sill
|
12/4/09
|
-- | -- | -- | 7,500 | 3.520 | 3.520 | 11,625 | ||||||||||||||||||||||
J.
Lynn Beckstead, Jr.
|
12/4/09
|
-- | -- | -- | 20,000 | 3.520 | 3.520 | 31,000 | ||||||||||||||||||||||
Jeffrey
R. Stephens
|
12/4/09
|
-- | -- | -- | 5,000 | 3.520 | 3.520 | 7,750 |
|
(1)
|
This
reflects the equivalent of Class A common shares. On December 4, 2009, Mr.
Quist was granted stock options to purchase 1,000,000 shares of Class C
common stock at an exercise price of $.3872 per share which is equivalent
to options to purchase 100,000 shares of Class A common stock at an
exercise price of $3.782 per
share.
|
Option
Awards
|
Stock
Awards
|
|||||||||||||||||||||
Name
of Executive Officer
|
Option
Grant Date
|
Number
of Securities Underlying Unexercised Options Exercisable (1)
(#)
|
Number
of Securities Underlying Unexercised Options Unexercisable
(#)
|
Option
Exercise Price
($)
|
Option
Expiration Date
|
Stock
Award Grant
Date
|
Number
of Shares or Units of Stock That Have Not Vested
(#)
|
Market
Value of Shares or Units of Stock That Have Not Vested
($)
|
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights
That Have Not Vested
(#)
|
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or
Other Rights That Have Not Vested
($)
|
||||||||||||
George
R. Quist
|
03/25/05
|
85,085
|
(4)
|
--
|
$3.18
|
03/25/10
|
03/25/05
|
--
|
--
|
--
|
--
|
|||||||||||
03/31/08
|
52,500
|
(5)
|
--
|
4.03
|
03/31/13
|
03/31/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/05/08
|
105,000
|
(6)
|
--
|
1.57
|
12/05/13
|
12/05/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/04/09
|
--
|
100,000
|
(7)
|
3.87
|
12/04/14
|
12/04/09
|
100,000
|
$358,990
|
--
|
--
|
||||||||||||
Scott
M. Quist
|
03/21/03
|
94,030
|
(2)
|
--
|
$4.40
|
03/21/13
|
03/21/03
|
--
|
--
|
--
|
--
|
|||||||||||
03/25/05
|
85,086
|
(4)
|
--
|
2.89
|
03/25/15
|
03/25/05
|
--
|
--
|
--
|
--
|
||||||||||||
03/31/08
|
52,500
|
(8)
|
--
|
4.03
|
03/31/13
|
03/31/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/05/08
|
105,000
|
(6)(9)
|
--
|
1.57
|
12/05/13
|
12/05/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/04/09
|
--
|
100,000
|
(10)
|
3.87
|
12/04/14
|
12/04/09
|
100,000
|
$358,990
|
--
|
--
|
||||||||||||
Stephen
M. Sill
|
03/31/08
|
7,875
|
(5)
|
--
|
$3.67
|
03/31/18
|
03/31/08
|
--
|
--
|
--
|
--
|
|||||||||||
12/05/08
|
7,875
|
(6)
|
--
|
1.43
|
12/05/18
|
12/05/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/04/09
|
--
|
7,500
|
(7)
|
3.52
|
12/04/19
|
12/04/09
|
7,500
|
$26,924
|
--
|
--
|
||||||||||||
J.
Lynn Beckstead Jr.
|
03/21/03
|
20,102
|
(2)
|
--
|
$4.40
|
03/21/13
|
03/21/03
|
--
|
--
|
--
|
--
|
|||||||||||
12/10/04
|
6,381
|
(3)
|
--
|
2.53
|
12/10/14
|
12/10/04
|
--
|
--
|
--
|
--
|
||||||||||||
03/25/08
|
42,543
|
(4)
|
--
|
2.89
|
03/25/15
|
03/25/05
|
--
|
--
|
--
|
--
|
||||||||||||
12/05/08
|
8,400
|
(5)
|
--
|
3.67
|
03/31/18
|
03/31/08
|
--
|
--
|
--
|
--
|
||||||||||||
12/04/09
|
21,000
|
(6)
|
--
|
1.43
|
12/05/18
|
12/05/08
|
--
|
--
|
--
|
--
|
||||||||||||
--
|
20,000
|
(7)
|
3.52
|
12/04/19
|
12/04/09
|
20,000
|
$71,798
|
--
|
--
|
|||||||||||||
Jeffrey
R. Stephens
|
12/05/08
|
1,050
|
(6)
|
--
|
$1.43
|
12/05/18
|
12/05/08
|
--
|
--
|
--
|
--
|
|||||||||||
12/04/09
|
--
|
5,000
|
(7)
|
3.52
|
12/04/19
|
12/04/09
|
5,000
|
$17,950
|
--
|
--
|
|
(1)
|
Except
for option granted George R. Quist and options granted to Scott M. Quist
after May 31, 2007, which have a five year term, such grants have ten year
terms. The vesting of any unvested shares is subject to the recipient’s
continuous employment. This reflects the equivalent of Class A common
shares.
|
|
(2)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on June 30, 2003 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(3)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on March 31, 2005 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(4)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on June 30, 2005 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(5)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on June 30, 2008 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(6)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on March 31, 2009 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(7)
|
Stock
options vest at the rate of 25% of the total number of shares subject to
the options on March 31, 2010 and 25% of the total number of shares on the
last day of each three month period
thereafter.
|
|
(8)
|
On
March 31, 2008, Scott M. Quist was granted stock options to purchase
500,000 shares of Class c common stock at an exercise price of $.424 per
share, which is equivalent to options to purchase 50,000 shares of Class A
common stock at an exercise price of $4.24 per
share.
|
|
(9)
|
On
December 5, 2008, Mr. Quist was granted stock options to purchase 610,770
shares of Class C common stock at an exercise price of $.165 per share,
which is equivalent to options to purchase 61,077 shares of Class A common
stock at an exercise price of $1.65 per share, and to purchase 38,923
shares of Class A common stock at an exercise price of $1.65 per
share.
|
|
(10)
|
On
December 4, 2009, Mr. Quist was granted stock options to purchase
1,000,000 shares of Class C common stock at an exercise price of $.3872
per share, which is equivalent to options to purchase 100,000 shares of
Class A common stock at an exercise price of $3.872 per
share.
|
Grant
Date
|
Vesting
|
||
03/21/03
|
These
options vested on the grant date.
|
||
12/10/04
|
These
options vested on the grant date.
|
||
03/25/05
|
These
options vested on the grant date.
|
||
03/31/08
|
These
options vested 25% per quarter over a one year period after the grant
date.
|
||
12/05/08
|
These
options vested 25% per quarter over a one year period after the grant
date.
|
||
12/04/09
|
These
options vest 25% per quarter over a one year period after the grant
date.
|
Option
Awards
|
Stock
Awards
|
|||||||||||||||
Number
of
|
Number
of
|
|||||||||||||||
Shares
Acquired
|
Value
Realized
|
Shares
Acquired
|
Value
Realized
|
|||||||||||||
on
Exercise
|
on
Exercise
|
on
Vesting
|
on
Vesting
|
|||||||||||||
Name
of Executive Officer
|
(#) |
($)
|
(#) |
($)
|
||||||||||||
George
R. Quist
|
16,481 | $ | 61,804 | -- | -- | |||||||||||
Scott
M. Quist
|
-- | -- | -- | -- | ||||||||||||
Stephen
M. Sill
|
-- | -- | -- | -- | ||||||||||||
J.
Lynn Beckstead, Jr.
|
-- | -- | -- | -- | ||||||||||||
Jeffrey
R. Stephens
|
-- | -- | -- | -- |
Number
of
|
Present
|
Payments
|
||||||||||||
Years
|
Value
of
|
During
|
||||||||||||
Credited
|
Accumulated
|
Last
Fiscal
|
||||||||||||
Service
|
Benefit
|
Year
|
||||||||||||
Name
of Executive Officer
|
Plan Name
|
(#) |
($)
|
($)
|
||||||||||
George
R. Quist
|
None
|
-- | -- | -- | ||||||||||
Scott
M. Quist
|
None
|
-- | -- | -- | ||||||||||
Stephen
M. Sill
|
None
|
-- | -- | -- | ||||||||||
J.
Lynn Beckstead, Jr.
|
None
|
-- | -- | -- | ||||||||||
Jeffrey
R.Stephens
|
None
|
-- | -- | -- |
Change
in
|
||||||||||||||||||||||||||||
Pension
Value
|
||||||||||||||||||||||||||||
Fees
|
and
|
|||||||||||||||||||||||||||
Earned
or
|
Non-Equity
|
Nonqualified
|
||||||||||||||||||||||||||
Paid
In
|
Stock
|
Option
|
Incentive
Plan
|
Deferred
|
All
Other
|
|||||||||||||||||||||||
Cash
|
Awards
|
Awards
|
Compensation
|
Compensation
|
Compensation
|
Total
|
||||||||||||||||||||||
Name
|
($)
|
($)
|
($)
|
($)
|
Earnings
|
($)
|
($)
|
|||||||||||||||||||||
Charles
L. Crittenden
|
$ | 19,050 | -- | $ | 8,148 | -- | -- | -- | $ | 27,198 | ||||||||||||||||||
Robert
G. Hunter
|
16,800 | -- | 8,148 | -- | -- | -- | 24,948 | |||||||||||||||||||||
H.
Craig Moody
|
19,050 | -- | 8,148 | -- | -- | -- | 27,198 | |||||||||||||||||||||
Norman
G. Wilbur
|
19,050 | -- | 8,148 | -- | -- | -- | 27,198 |
Executive
|
Registrant
|
Aggregate
|
Aggregate
|
Aggregate
|
||||||||||||||||
Contributions
|
Contributions
|
Earnings
in Last
|
Withdrawals
|
Balance
at Last
|
||||||||||||||||
In
Last FY
|
In
Last FY
|
FY
|
Distributions
|
FYE
|
||||||||||||||||
Name
|
($)
|
($)
|
($)
|
($)
|
($)
|
|||||||||||||||
George
R. Quist
|
-- | -- | -- | -- | $ | 192,819 | ||||||||||||||
Scott
M. Quist
|
-- | -- | -- | -- | 213,379 | |||||||||||||||
Stephen
M. Sill
|
-- | -- | -- | -- | 67,470 | |||||||||||||||
J.
Lynn Beckstead, Jr.
|
-- | -- | -- | -- | 107,987 | |||||||||||||||
Jeffrey
R. Stephens
|
-- | -- | -- | -- | - |
Class
A
Common
Stock
|
Class
C
Common
Stock
|
Class
A and
Class
C
Common
Stock
|
||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||
Beneficially
|
of
|
Beneficially
|
of
|
Beneficially
|
of
|
|||||||
Name and Address
(1)
|
Owned
|
Class
|
Owned
|
Class
|
Owned
|
Class
|
||||||
George
R. and Shirley C. Quist
|
||||||||||||
Family
Partnership, Ltd. (2)
|
614,556
|
8.1%
|
4,286,632
|
50.2%
|
4,901,188
|
30.5%
|
||||||
Employee
Stock
|
||||||||||||
Ownership
Plan (3)
|
636,375
|
8.4%
|
1,982,118
|
23.2%
|
2,618,492
|
16.3%
|
||||||
George
R. Quist (4)(5)(7)(8)
|
671,739
|
8.9%
|
598,834
|
7.0%
|
1,270,574
|
7.9%
|
||||||
Scott
M. Quist (4)(7)(9)
|
564,315
|
7.5%
|
3,192,522
|
37.4%
|
3,756,837
|
23.4%
|
||||||
Associated
Investors (10)
|
90,362
|
1.2%
|
836,746
|
9.8%
|
927,108
|
5.8%
|
||||||
J.
Lynn Beckstead, Jr., (6)(12)
|
268,940
|
3.6%
|
-
|
-
|
268,940
|
1.7%
|
||||||
Stephen
M. Sill (6)(13)
|
97,732
|
1.3%
|
-
|
-
|
97,732
|
*
|
||||||
Christie
Q. Overbaugh (14)
|
147,598
|
2.0%
|
144,080
|
1.7%
|
291,678
|
1.8%
|
||||||
Jeffrey
R. Stephens (11)
|
13,599
|
*
|
-
|
-
|
13,599
|
*
|
||||||
Robert
G. Hunter, M.D., (4)(15)
|
20,986
|
*
|
-
|
-
|
20,986
|
*
|
||||||
Norman
G. Wilbur (16)
|
18,457
|
*
|
-
|
-
|
18,457
|
*
|
||||||
Charles
L. Crittenden (17)
|
20,747
|
*
|
-
|
-
|
20,747
|
*
|
||||||
H.
Craig Moody (18)
|
19,681
|
*
|
-
|
-
|
19,681
|
*
|
||||||
All
directors and executive officers
|
||||||||||||
(10
persons)
(4)(5)(6)(7)
|
2,458,350
|
29.3%
|
8,222,069
|
76.8%
|
10,680,418
|
56.0%
|
(1)
|
Unless
otherwise indicated, the address of each listed stockholder is c/o
Security National Financial Corporation, 5300 South 360 West, Suite 250,
Salt Lake City, Utah 84123.
|
(2)
|
This
stock is owned by the George R. and Shirley C. Quist Family Partnership,
Ltd., of which Scott M. Quist is the managing general
partner.
|
(3)
|
The
trustees of the Employee Stock Ownership Plan (ESOP) are George R. Quist,
Scott M. Quist, and Robert G. Hunter who exercise shared voting and
investment powers.
|
(4)
|
Does
not include 636,375 shares of Class A common stock and 1,982,118 shares of
Class C common stock owned by the Company’s Employee Stock Ownership Plan
(ESOP), of which George R Quist, Scott M. Quist and Robert G. Hunter are
the trustees and accordingly, exercise shared voting and investment powers
with respect to such shares.
|
(5)
|
Does
not include 90,362 shares of Class A common stock and 836,746 shares of
Class C common stock owned by Associated Investors, a Utah general
partnership, of which George R. Quist is the managing partner and,
accordingly, exercises sole voting and investment powers with respect to
such shares.
|
(6)
|
Does
not include 763,747 shares of Class A common stock owned by the Company’s
401(k) Retirement Savings Plan, of which Scott M. Quist, J. Lynn
Beckstead, and Stephen M. Sill are members of the Investment Committee
and, accordingly, exercise shared voting and investment powers with
respect to such shares.
|
(7)
|
Does
not include 424,655 shares of Class A common stock owned by the Company’s
Deferred Compensation Plan, of which George R. Quist and Scott M. Quist
are members of the Investment Committee and, accordingly, exercise shared
voting and investment powers with respect to such
shares.
|
(8)
|
Includes
options to purchase 191,625 shares of Class A common stock granted to
George R. Quist that are currently exercisable or will become exercisable
within 60 days of March 31, 2010.
|
(9)
|
Includes
options to purchase 230,750 shares of Class A common stock and 1,487,124
shares of Class C common stock granted to Scott M. Quist that are
currently exercisable or will become exercisable within 60 days of March
31, 2010.
|
(10)
|
The
managing partner of Associated Investors is George R. Quist, who exercises
sole voting and investment
powers.
|
(11)
|
Includes
options to purchase 2,486 shares of Class A common stock granted to
Jeffrey R. Stephens that are currently exercisable or will become
exercisable within 60 days of March 31, 2010.
|
(12)
|
Includes
options to purchase 108,597 shares of Class A common stock granted to Mr.
Beckstead that are currently exercisable or will become exercisable within
60 days of March 31, 2010.
|
(13)
|
Includes
options to purchase 10,238 shares of Class A common stock grant to Mr.
Sill that are currently exercisable or will become exercisable within 60
days of March 31, 2010.
|
(14)
|
Includes
options to purchase 60,252 shares of Class A common stock granted to Ms.
Overbaugh that are currently exercisable or will become exercisable within
60 days of March 31, 2010.
|
(15)
|
Includes
options to purchase 14,597 shares of Class A common stock granted to Mr.
Hunter that are currently exercisable or will become exercisable within 60
days of March 31, 2010.
|
(16)
|
Includes
options to purchase 14,597 shares of Class A common stock granted to Mr.
Wilbur that are currently exercisable or will become exercisable within 60
days of March 31, 2010.
|
(17)
|
Includes
options to purchase 14,597 shares of Class A common stock granted to Mr.
Crittenden that are currently exercisable or will become exercisable
within 60 days of March 31, 2010.
|
(18)
|
Includes
options to purchase 14,597 shares of Class A common stock granted to Mr.
Moody that are currently exercisable or will become exercisable within 60
days of March 31, 2010.
|
Fee
Category
|
2009
|
2008
|
||||||
Audit
Fees (1)
|
$ | 373,300 | $ | 364,000 | ||||
Audit-Related
Fees (2)
|
53,700 | 44,700 | ||||||
Tax
Fees (3)
|
80,400 | 93,100 | ||||||
All
Other Fees (4)
|
24,000 | 2,800 | ||||||
$ | 531,400 | $ | 504,600 |
|
(1)
|
Audit
fees consist of aggregate fees billed for professional services rendered
for the audit of the Company’s annual financial statements and review of
the interim financial statements included in quarterly reports or services
that are normally provided by the independent auditor in connection with
statutory and regulatory filings for the years ended December 31, 2009 and
2008.
|
|
(2)
|
Audit
related fees consist of aggregate fees billed for assurance and related
services that are reasonably related to the performance of the audit or
review of the Company’s financial statements and are not reported under
“Audit Fees”. These fees include review of registration statements, and
audits of the Company’s ESOP and 401(k)
Plans.
|
|
(3)
|
Tax
fees consist of aggregate fees billed for professional services for tax
compliance, tax advice, and tax
planning.
|
|
(4)
|
All
other fees consist of aggregate fees billed for products and services by
the independent auditor, other than those disclosed
above.
|
3.1
|
Articles
of Restatement of Articles of Incorporation (4)
|
3.2
|
Amended
Bylaws (6)
|
4.1
|
Specimen
Class A Stock Certificate (1)
|
4.2
|
Specimen
Class C Stock Certificate (1)
|
4.3
|
Specimen
Preferred Stock Certificate and Certificate of Designation of Preferred
Stock (1)
|
10.1
|
Restated
and Amended Employee Stock Ownership Plan and Trust Agreement
(1)
|
10.2
|
2003
Stock Option Plan (5)
|
10.3
|
2006
Director Stock Option Plan (12)
|
10.4
|
Deferred
Compensation Agreement with George R. Quist (2)
|
10.5
|
Deferred
Compensation Plan (3)
|
10.6
|
Employment
agreement with J. Lynn Beckstead, Jr. (7)
|
10.7
|
Employment
agreement with Scott M. Quist (8)
|
10.8
|
Indemnification
Agreement among Security National Life Insurance Company, Capital Reserve
Life Insurance Company, and the shareholders of Capital Reserve Life
Insurance Company (9)
|
10.9
|
Escrow
Agreement among Security National Insurance Company, Capital Reserve Life
Insurance Company, the shareholders of Capital Reserve Life Insurance
Company, and Mackey Price Thompson & Ostler as Escrow Agent
(9)
|
10.10
|
Reinsurance
Agreement between Security National Life Insurance Company and Capital
Reserve Life Insurance Company (9)
|
10.11
|
Stock
Purchase Agreement among Security National Life Insurance Company,
Southern Security Life Insurance Company, and the shareholders of Southern
Security Life Insurance Company (10)
|
10.12
|
Reinsurance
Agreement among Security National Life Insurance Company, Southern
Security Life Insurance Company, and the shareholders of Southern Security
Life Insurance Company (11)
|
10.13
|
Escrow
Agreement among Security National Life Insurance Company, Southern
Security Life Insurance Company, the shareholders of Southern Security
Life Insurance Company, and Mackey Price Thompson & Ostler, as escrow
agent (12)
|
10.14
|
Indemnification
Agreement among SecurityNational Mortgage Company, Lehman Brothers Bank,
and Aurora Loan Services (13)
|
10.15
|
Agreement
and Plan of Complete Liquidation of Security National Life Insurance
Company of Louisiana into Security National Life Insurance Company
(14)
|
10.16
|
Assumption
Reinsurance Agreement between Security National Life Insurance Company of
Louisiana and Security National Life Insurance Company
(14)
|
10.17
|
Assignment
between Security National Life Insurance Company of Louisiana and Security
National Life Insurance Company (14)
|
10.18
|
Agreement
and Plan of Complete Liquidation of Capital Reserve Life Insurance Company
into Security National Life Insurance Company (14)
|
10.19
|
Assignment
between Capital Reserve Life Insurance Company and Security National Life
Insurance Company (14)
|
21
|
Subsidiaries
of the Registrant
|
31.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the
Sarbanes-Oxley Act of 2002
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
(1)
|
Incorporated
by reference from Registration Statement on Form S-1, as filed on
September 29, 1987
|
|
(2)
|
Incorporated
by reference from Annual Report on Form 10-K, as filed on March 31,
1989
|
|
(3)
|
Incorporated
by reference from Annual Report on Form 10-K, as filed on April 3,
2002
|
|
(4)
|
Incorporated
by reference from Report on Form 8-K/A as filed on January 8,
2003
|
|
(5)
|
Incorporated
by reference from Schedule 14A Definitive Proxy Statement, Filed
on
|
|
(6)
|
September
5, 2003, relating to the Company’s Annual Meeting of
Shareholders
|
|
Incorporated
by reference from Report on Form 10-Q, as filed on November 14,
2003
|
||
(7)
|
Incorporated
by reference from Report on Form 10-K, as filed on March 30,
2004
|
|
(8)
|
Incorporated
by reference from Report on Form 10-Q, as filed on August 13,
2004
|
|
(9)
|
Incorporated
by reference from Report on Form 8-K, as filed on January 14,
2008
|
|
(10)
|
Incorporated
by reference from Report on Form 8-K, as filed on August 25,
2008
|
|
(11)
|
Incorporated
by reference from Report on Form 8-K/A, as filed on September 17,
2008
|
|
(12)
|
Incorporated
by reference from Report on Form 8-K, as filed on January 7,
2009
|
|
(13)
|
Incorporated
by reference from Report on Form 10-K, as filed on March 31,
2009
|
|
(14)
|
Incorporated
by reference from Report on Form 8-K, as filed on January 12,
2010
|
|
(b)
|
Reports
on Form 8-K:
|
Dated:
March 31, 2010
|
By:
|
s/s George R.
Quist
|
|
|
George
R. Quist
|
||
|
Chairman
of the Board and Chief Executive Officer
|
SIGNATURE
|
TITLE
|
DATE
|
||
s/s George R.
Quist
|
Chairman
of the Board and
|
|||
George
R. Quist
|
Chief
Executive Officer
|
|||
(Principal
Executive Officer)
|
March
31, 2010
|
|||
s/s Scott M.
Quist
|
President,
Chief Operating
|
|||
Scott
M. Quist
|
Officer
and Director
|
March
31, 2010
|
||
s/s Stephen M.
Sill
|
|
Vice
President, Treasurer
|
||
Stephen
M. Sill
|
and
Chief Financial Officer
|
|||
(Principal
Financial and
|
||||
Accounting
Officer)
|
March
31, 2010
|
|||
s/s J. Lynn Beckstead,
Jr.
|
Vice
President and Director
|
March
31, 2010
|
||
J.
Lynn Beckstead, Jr.
|
||||
s/s Charles L.
Crittenden
|
Director
|
March
31, 2010
|
||
Charles
L. Crittenden
|
||||
s/s H. Craig
Moody
|
Director
|
March
31, 2010
|
||
H.
Craig Moody
|
||||
s/s Norman G.
Wilbur
|
Director
|
March
31, 2010
|
||
Norman
G. Wilbur
|
||||
s/s Robert G.
Hunter
|
|
Director
|
March
31, 2010
|
|
Robert
G. Hunter
|
December
31,
|
||||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash
|
$ | 1,712,983 | $ | 768,630 | ||||
Real
estate net of accumulated depreciation
of
$-0- for 2009 and $1,439 for 2008
|
-- | 31,599 | ||||||
Investment
in subsidiaries (equity method)
|
73,617,659 | 68,282,943 | ||||||
Receivables:
|
||||||||
Receivable
from affiliates
|
5,548,649 | 6,694,918 | ||||||
Other
|
93,597 | 338,678 | ||||||
Allowance
for doubtful accounts
|
-- | -- | ||||||
Total
receivables
|
5,642,246 | 7,033,596 | ||||||
Property
and equipment, at cost,
|
||||||||
net
of accumulated depreciation
|
||||||||
of
$1,571,658 for 2009 and
|
||||||||
$1,425,822
for 2008
|
245,449 | 381,729 | ||||||
Other
assets
|
48,122 | 53,166 | ||||||
Total
assets
|
$ | 81,266,459 | $ | 76,551,663 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Liabilities
and Stockholders’ Equity Liabilities
|
||||||||
Bank
loans payable:
|
||||||||
Current
installments
|
$ | 1,385,698 | $ | 1,361,182 | ||||
Long-term
|
1,182,122 | 2,317,345 | ||||||
Notes
and contracts payable:
|
||||||||
Current
installments
|
961 | 95,237 | ||||||
Long-term
|
-- | -- | ||||||
Advances
from affiliated companies
|
9,006,276 | 8,974,568 | ||||||
Other
liabilities and accrued expenses
|
1,438,175 | 1,696,934 | ||||||
Income
taxes
|
8,447,785 | 8,194,118 | ||||||
Total
liabilities
|
21,461,017 | 22,639,384 | ||||||
Stockholders’
Equity
|
||||||||
Class
A common stock $2.00 par value;
|
||||||||
20,000,000
shares authorized;
|
||||||||
issued
8,730,227 shares in 2009
|
||||||||
8,284,109
shares in 2008
|
17,460,454 | 16,568,218 | ||||||
Class
B non-voting common stock-$1.00 par value;
|
||||||||
5,000,000
shares authorized; none issued or
|
||||||||
outstanding
|
-- | -- | ||||||
Class
C convertible common stock, $0.20 par value;
|
||||||||
15,000,000
shares authorized; issued 9,214,211
|
||||||||
shares
in 2009 and 8,912,315 shares in 2008
|
1,842,842 | 1,782,463 | ||||||
Additional
paid-in capital
|
19,191,606 | 17,985,848 | ||||||
Accumulated
other comprehensive income
|
1,593,327 | 417,101 | ||||||
Retained
earnings
|
23,178,944 | 21,023,179 | ||||||
Treasury
stock at cost- (1,454,974 Class A shares
|
||||||||
and
-0- Class C shares in 2009; 1,598,568
|
||||||||
Class
A shares and -0- Class C shares
|
||||||||
in
2008, held by affiliated companies)
|
(3,461,731 | ) | (3,864,530 | ) | ||||
Total
stockholders’ equity
|
59,805,442 | 53,912,279 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 81,266,459 | $ | 76,551,663 |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Revenue
|
||||||||||||
Net
investment income
|
$ | 89,466 | $ | 161 | $ | 772 | ||||||
Fees
from affiliates
|
867,859 | 2,543,907 | 4,098,718 | |||||||||
Other
Income
|
81,912 | - | - | |||||||||
Net
realized gains and losses
|
5,615 | - | - | |||||||||
Total
revenue
|
1,044,852 | 2,544,068 | 4,099,490 | |||||||||
Benefits
and Expenses:
|
||||||||||||
General
and administrative expenses
|
946,476 | 2,253,673 | 2,007,974 | |||||||||
Interest
expense
|
105,144 | 149,355 | 234,743 | |||||||||
Expenses
to affiliates
|
- | 61,204 | 131,133 | |||||||||
Total
benefits and expenses
|
1,051,620 | 2,464,232 | 2,373,850 | |||||||||
Earnings
before income taxes, and
earnings
of subsidiaries
|
(6,768 | ) | 79,836 | 1,725,640 | ||||||||
Income
tax expense
|
(253,667 | ) | 78,595 | (605,099 | ) | |||||||
Equity
in earnings of subsidiaries
|
4,034,315 | 416,422 | 1,144,855 | |||||||||
Net
earnings
|
$ | 3,773,880 | $ | 574,853 | $ | 2,265,396 |
Year
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
earnings
|
$ | 3,773,880 | $ | 574,853 | $ | 2,265,396 | ||||||
Adjustments
to reconcile net earningsto net cash provided by operating activities:
|
||||||||||||
Depreciation
and amortization
|
150,009 | 194,116 | 268,942 | |||||||||
Undistributed
earnings of affiliates
|
(4,034,315 | ) | (1,406,214 | ) | (1,144,855 | ) | ||||||
Provision
for income taxes
|
253,667 | 918,044 | 605,099 | |||||||||
Provision
for losses on loans & real estate
|
-- | 500,000 | -- | |||||||||
Stock
based compensation expense
|
485,986 | 378,227 | 3,000 | |||||||||
Benefit
plans funded with treasury stock
|
457,070 | 204,990 | -- | |||||||||
Change
in assets and liabilities:
|
||||||||||||
Accrued
Investment Income from Affiliates
|
(655 | ) | 287,135 | (286,480 | ) | |||||||
Accounts
receivable
|
-- | (187,000 | ) | 16,586 | ||||||||
Other
assets
|
5,699 | (14,821 | ) | -- | ||||||||
Other
liabilities
|
(340,600 | ) | 158,568 | 265,675 | ||||||||
Net
cash provided by operating activities
|
750,741 | 1,607,898 | 1,993,363 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Purchase
of real estate
|
(186,271 | ) | -- | -- | ||||||||
Sale
of Real Estate
|
463,695 | -- | -- | |||||||||
Purchase
of equipment
|
(9,554 | ) | (2,685 | ) | (349,215 | ) | ||||||
Mortgage,
policy loans made
|
(2,506,913 | ) | (715,606 | ) | -- | |||||||
Payments,
mortgage loans
|
2,501,994 | 30,889 | -- | |||||||||
Dividend
received from subidiary
|
1,125,000 | -- | -- | |||||||||
Investment
in subsidiaries
|
(1,167,333 | ) | -- | -- | ||||||||
Net
cash (used in) provided by investing activities
|
220,618 | (687,402 | ) | (349,215 | ) | |||||||
Cash
flows from financing activities:
|
||||||||||||
Checks
written in excess of cash in bank
|
-- | -- | -- | |||||||||
Advances
from (to) affiliates
|
1,177,977 | (187,341 | ) | 78,001 | ||||||||
Payments
of notes and contracts payable
|
(1,204,983 | ) | (1,662,223 | ) | (1,515,590 | ) | ||||||
Proceeds
from borrowings on notes and contracts payable
|
-- | 1,500,000 | 631,500 | |||||||||
Purchase
of treasury stock
|
-- | -- | (800,000 | ) | ||||||||
Net
cash used in financing activities
|
(27,006 | ) | (349,564 | ) | (1,606,089 | ) | ||||||
Net
change in cash
|
944,353 | 570,932 | 38,059 | |||||||||
Cash
at beginning of year
|
768,630 | 197,698 | 159,639 | |||||||||
Cash
at end of year
|
$ | 1,712,983 | $ | 768,630 | $ | 197,698 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Bank
prime rate less .28% (2.97% at December 31, 2009),
|
||||||||
collateralized
by 15,000 shares of
|
||||||||
Security
National Life Insurance Company
|
||||||||
stock,
due June 2011.
|
$ | 1,192,820 | $ | 2,003,527 | ||||
Bank
prime rate less .75% (2.50% at December 31, 2009)
|
||||||||
revolving
line of credit of $7,800,000, accrued interest
|
||||||||
paid
quarterly, extended to June 2011
|
1,375,000 | 1,675,000 | ||||||
Total
bank loans
|
2,567,820 | 3,678,527 | ||||||
Less
current installments
|
1,385,698 | 1,361,182 | ||||||
Bank
loans, excluding current installments
|
$ | 1,182,122 | $ | 2,317,345 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
5%
note payable to a former owner of C & J Financial
|
||||||||
due in
monthly installments of $16,737
|
||||||||
including principal
and interest, paid July 2009
|
$ | - | $ | 94,276 | ||||
Other
|
961 | 961 | ||||||
Total
notes and contracts
|
961 | 95,237 | ||||||
Less
current installments
|
961 | 95,237 | ||||||
Notes
and contracts, excluding current installments
|
$ | -0- | $ | -0- |
2010
|
$ | 1,386,659 | ||
2011
|
1,182,122 | |||
2012
|
- | |||
2013
|
- | |||
2014
|
- | |||
Thereafter
|
- | |||
Total
|
$ | 2,568,781 |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Non-interest
bearing advances from affiliates:
|
||||||||
Cemetery
and Mortuary
|
||||||||
subsidiary
|
$ | 1,459,841 | $ | 1,459,841 | ||||
Life
insurance subsidiaries
|
7,502,452 | 7,470,744 | ||||||
Mortgage
subsidiary
|
43,983 | 43,983 | ||||||
$ | 9,006,276 | $ | 8,974,568 |
Percentage
|
||||||||||||||||||||
Ceded
to
|
Assumed
|
of
Amount
|
||||||||||||||||||
Direct
|
Other
|
from
Other
|
Net
|
Assumed
|
||||||||||||||||
Amount
|
Companies
|
Companies
|
Amount
|
to
Net
|
||||||||||||||||
2009
|
||||||||||||||||||||
Life
Insurance in force ($000)
|
$ | 1,271,014 | $ | 93,603 | $ | 1,346,932 | $ | 2,524,343 | 53.4 | % | ||||||||||
Premiums:
|
||||||||||||||||||||
Life
Insurance
|
$ | 37,410,889 | $ | 646,318 | $ | 1,418,707 | $ | 38,183,278 | 3.7 | % | ||||||||||
Accident
and Health Insurance
|
231,386 | 1,335 | - | 230,051 | - | |||||||||||||||
Total
premiums
|
$ | 37,642,275 | $ | 647,653 | $ | 1,418,707 | $ | 38,413,329 | 3.7 | % | ||||||||||
2008
|
||||||||||||||||||||
Life
Insurance in force ($000)
|
$ | 1,303,722 | $ | 125,065 | $ | 1,150,687 | $ | 2,329,344 | 49.4 | % | ||||||||||
Premiums:
|
||||||||||||||||||||
Life
Insurance
|
$ | 35,133,624 | $ | 649,964 | $ | 1,269,658 | $ | 35,753,318 | 3.6 | % | ||||||||||
Accident
and Health Insurance
|
227,908 | 162 | 233 | 227,979 | 0.1 | % | ||||||||||||||
Total
premiums
|
$ | 35,361,532 | $ | 650,126 | $ | 1,269,891 | $ | 35,981,297 | 3.5 | % | ||||||||||
2007
|
||||||||||||||||||||
Life
Insurance in force ($000)
|
$ | 1,243,906 | $ | 114,155 | $ | 1,190,843 | $ | 2,320,594 | 51.3 | % | ||||||||||
Premiums:
|
||||||||||||||||||||
Life
Insurance
|
$ | 30,886,927 | $ | 586,877 | $ | 1,713,765 | $ | 32,013,815 | 5.4 | % | ||||||||||
Accident
and Health Insurance
|
248,702 | 189 | 509 | 249,022 | 0.2 | % | ||||||||||||||
Total
premiums
|
$ | 31,135,629 | $ | 587,066 | $ | 1,714,274 | $ | 32,262,837 | 5.3 | % |
Additions
|
Deductions
|
|||||||||||||||
Balance
at
|
Charged
to
|
Disposals
|
Balance
|
|||||||||||||
Beginning
|
Costs
and
|
and
|
at
End of
|
|||||||||||||
of
Year
|
Expenses
|
Write-offs
|
Year
|
|||||||||||||
For the Year Ended
December 31, 2009
|
||||||||||||||||
Accumulated
depreciation on real estate
|
$ | 5,009,571 | $ | 1,076,412 | $ | (2,146,711 | ) | $ | 3,939,272 | |||||||
Allowance
for losses on mortgage loans
|
||||||||||||||||
on
real estate and construction loans
|
||||||||||||||||
held
for investment.
|
4,780,467 | 3,166,043 | (1,137,707 | ) | 6,808,803 | |||||||||||
Accumulated
depreciation
|
||||||||||||||||
on
property and equipment
|
17,688,418 | 1,722,446 | (277,281 | ) | 19,133,583 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
receivables
|
1,983,293 | 1,229,668 | (1,029,905 | ) | 2,183,056 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
real estate
|
- | 107,000 | - | 107,000 | ||||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
collateral loans
|
555,146 | 128,778 | (31,426 | ) | 652,498 | |||||||||||
For the Year Ended
December 31, 2008
|
||||||||||||||||
Accumulated
depreciation on real estate
|
$ | 4,340,390 | $ | 672,721 | $ | (3,540 | ) | $ | 5,009,571 | |||||||
Allowance
for losses on mortgage loans
|
||||||||||||||||
on
real estate and construction loans
|
||||||||||||||||
held
for investment.
|
1,435,131 | 4,338,553 | (993,217 | ) | 4,780,467 | |||||||||||
Accumulated
depreciation
|
||||||||||||||||
on
property and equipment
|
15,664,046 | 2,052,019 | (27,647 | ) | 17,688,418 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
receivables
|
1,293,185 | 1,034,202 | (344,094 | ) | 1,983,293 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
collateral loans
|
492,089 | 166,000 | (102,943 | ) | 555,146 | |||||||||||
For the Year Ended
December 31, 2007
|
||||||||||||||||
Accumulated
depreciation on real estate
|
$ | 4,024,710 | $ | 315,680 | $ | -- | $ | 4,340,390 | ||||||||
Allowance
for losses on mortgage loans
|
||||||||||||||||
on
real estate and construction loans
|
1,026,576 | 420,000 | (11,445 | ) | 1,435,131 | |||||||||||
Accumulated
depreciation
|
||||||||||||||||
on
property and equipment
|
13,522,715 | 2,232,928 | (91,597 | ) | 15,664,046 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
receivables
|
866,392 | 653,905 | (227,112 | ) | 1,293,185 | |||||||||||
Allowance
for doubtful accounts
|
||||||||||||||||
on
collateral loans
|
435,726 | 57,070 | (707 | ) | 492,089 |
|
21
|
Subsidiaries
of the Registrant
|
|
31.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
31.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period covered in which this report is
being prepared;
|
|
(b)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
(c)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
By:
|
s/s George R.
Quist
|
|
George
R. Quist
|
||
Chairman
of the Board and
|
||
Chief
Executive Officer
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period covered in which this report is
being prepared;
|
|
(b)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
(c)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
By:
|
s/s Stephen M.
Sill
|
|
Stephen
M. Sill
|
||
Vice
President, Treasurer and
|
||
Chief
Financial Officer
|
|
(1)
|
the
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
(2)
|
the
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
By:
|
s/s George R.
Quist
|
George
R. Quist
|
|
Chairman
of the Board and
|
|
Chief
Executive Officer
|
|
March
31, 2010
|
|
(1)
|
the
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
|
(2)
|
the
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
By:
|
s/s Stephen M.
Sill
|
Stephen
M. Sill
|
|
Vice
President, Treasurer
|
|
and
Chief Financial Officer
|
|
March
31, 2010
|