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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Mar. 27, 2013	Jun. 30, 2012
Document and Entity Information
Entity Registrant Name	SECURITY NATIONAL FINANCIAL CORP
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Entity Central Index Key	0000318673
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		22,344,876
Entity Public Float			$ 7,057,000

Balance Sheet - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Investments:
Fixed maturity securities, held to maturity, at amortized cost	$ 129,449,410	$ 127,579,087
Equity securities, available for sale, at estimated fair value	5,405,112	6,299,392
Mortgage loans on real estate and construction loans held for investment, net of allowances for losses of $4,239,861 and $4,881,173 for 2012 and 2011	84,462,205	115,155,967
Real estate held for investment, net of accumulated depreciation of $4,499,705 and $4,189,641 for 2012 and 2011	3,543,751	3,786,780
Other real estate owned held for investment, net of accumulated depreciation of $2,941,713 and $1,810,238 for 2012 and 2011	55,027,669	46,398,095
Other real estate owned held for sale	5,682,610	5,793,900
Policy, student and other loans net of allowance for doubtful accounts of $505,030 and $427,136 for 2012 and 2011	20,188,516	18,463,277
Short-term investments	40,925,390	6,932,023
Accrued investment income	2,393,941	2,323,080
Total investments	347,078,604	332,731,601
Cash and cash equivalents	38,906,115	17,083,604
Mortgage loans sold to investors	94,597,969	77,339,445
Receivables, net	16,559,277	9,911,961
Restricted assets of cemeteries and mortuaries	3,955,127	3,392,497
Cemetery perpetual care trust investments	2,090,111	1,810,185
Receivable from reinsurers	14,529,144	7,678,119
Cemetery land and improvements	11,079,755	11,105,809
Deferred policy and pre-need contract acquisition costs	39,913,465	38,001,833
Mortgage servicing rights	2,797,470
Property and equipment, net	11,033,957	9,300,185
Value of business acquired	9,829,082	10,996,050
Goodwill	677,039	677,039
Other assets	4,169,508	3,022,113
Total Assets	597,216,623	523,050,441
Liabilities
Future life, annuity, and other benefits	438,003,813	383,507,087
Unearned premium reserve	5,383,800	5,030,443
Bank and other loans payable	11,910,343	25,019,119
Deferred pre-need cemetery and mortuary contract revenues	13,412,339	13,140,483
Cemetery perpetual care obligation	3,153,001	2,983,077
Accounts payable	2,715,834	2,672,479
Other liabilities and accrued expenses	24,902,086	14,456,887
Income taxes	17,923,298	15,010,279
Total liabilities	517,404,514	461,819,854
Commitments and Contingencies
Stockholders' Equity
Additional paid-in capital	21,262,140	19,487,565
Accumulated other comprehensive income, net of taxes	1,934,359	654,443
Retained earnings	35,114,072	22,546,623
Treasury stock, at cost - 1,097,416 Class A shares and -0- Class C shares in 2012; 1,198,167 Class A shares and -0- Class C shares in 2011	(2,380,434)	(2,762,835)
Total stockholders' equity	79,812,109	61,230,587
Total Liabilities and Stockholders' Equity	597,216,623	523,050,441
Class A Common Stock
Stockholders' Equity
Common stock	21,687,152	19,277,596
Class C Common Stock
Stockholders' Equity
Common stock	$ 2,194,820	$ 2,027,195

Balance Sheet Parenthetical - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Allowance for losses on mortgage loans on real estate and construction loans, held for investment	$ 4,239,861	$ 4,881,173
Accumulated depreciation on real estate held for investment	4,499,705	4,189,641
Accumulated depreciation on other real estate owned held for investment	2,941,713	1,810,238
Allowance for doubtful accounts on policy and other loans	$ 505,030	$ 427,136
Class A Common Stock
Common Stock Par Value	$ 2.00	$ 2.00
Common Stock Authorized	20,000,000	20,000,000
Common Stock Issued	10,843,576	9,638,798
Treasury Stock	1,097,416	1,198,057
Class B Common Stock
Common Stock Par Value	$ 1.00	$ 1.00
Common Stock Authorized	5,000,000	5,000,000
Common Stock Issued
Common Stock Outstanding
Class C Common Stock
Common Stock Par Value	$ 0.20	$ 0.20
Common Stock Authorized	15,000,000	15,000,000
Common Stock Issued	10,974,101	10,135,976

Income Statement - USD ($)	12 Months Ended
Income Statement - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues:
Insurance premiums and other considerations	$ 48,216,327	$ 48,457,405	$ 38,509,198
Net investment income	23,250,154	20,010,704	18,615,984
Net mortuary and cemetery sales	10,864,497	10,761,469	11,520,369
Realized gains on investments and other assets	1,424,510	2,464,353	1,615,418
Other than temporary impairments	(1,207,632)	(840,735)	(673,981)
Mortgage fee income	150,553,261	77,605,105	97,342,215
Other income	1,159,052	1,108,969	1,581,115
Total revenues	234,260,169	159,567,270	168,510,318
Benefits and expenses:
Death benefits	22,277,037	22,184,112	19,350,176
Surrenders and other policy benefits	1,969,051	1,761,608	1,575,812
Increase in future policy benefits	21,435,191	22,258,241	17,020,086
Amortization of deferred policy and pre-need acquisition costs and value of business acquired	5,449,429	5,769,348	4,431,076
Selling, general and administrative expenses:
Commissions	83,840,427	47,514,804	58,439,664
Salaries	28,889,112	23,531,407	26,406,153
Provision for loan losses and loss reserve	4,239,418	2,070,399	5,404,645
Costs related to funding mortgage loans	6,931,045	4,240,377	6,044,020
Other expenses	32,409,918	25,156,515	25,923,413
Interest expense	3,744,293	1,961,249	2,778,920
Cost of goods and services sold - mortuaries and cemeteries	1,723,955	1,882,657	2,225,773
Total benefits and expenses	212,908,876	158,330,717	169,599,738
Earnings (loss) before income taxes	21,351,293	1,236,553	(1,089,420)
Income tax benefit (expense)	(4,638,775)	62,205	658,796
Net earnings (loss)	$ 16,712,518	$ 1,298,758	$ (430,624)
Net earnings (loss) per Class A equivalent common share (1)	$ 1.65	$ 0.13	$ (0.04)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)	$ 1.57	$ 0.13	$ (0.04)
Weighted average Class A equivalent common shares outstanding (1)	10,134,728	9,893,962	9,688,067
Weighted average Class A equivalent common shares outstanding-assuming dilution (1)	10,678,294	10,001,909	9,688,067

Comprehensive Income Statement - USD ($)	12 Months Ended
Comprehensive Income Statement - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net earnings	$ 16,712,518	$ 1,298,758	$ (430,624)
Changes in:
Net unrealized gains (losses) on derivative instruments	852,168	541,335	(452,430)
Net unrealized gains (losses) on available for sale securities	427,748	(1,075,138)	47,349
Other comprehensive gain (loss)	1,279,916	(533,803)	(405,081)
Comprehensive income (loss)	$ 17,992,434	$ 764,955	$ (835,705)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

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+ Details

- Definition

Net of tax amount, before reclassification adjustments, of the change in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Also includes an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

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+ Details

Statements of Stockholders' Equity - USD ($)	Class A Common Stock	Class C Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2009	$ 17,460,454	$ 1,842,842	$ 19,191,606	$ 1,593,327	$ 23,178,944	$ (3,461,731)	$ 59,805,442
Net loss					(430,624)		(430,624)
Other comprehensive loss				(405,081)			(405,081)
Grant of stock options			520,457				520,457
Exercise stock options	20,348		(20,348)
Sale of treasury stock			123,814			314,460	438,274
Stock dividends	874,276	92,002	(125,537)		(840,741)
Conversion Class C to Class A	2,812	(2,813)	1
Balance at Dec. 31, 2010	18,357,890	1,932,031	19,689,993	1,188,246	21,907,579	(3,147,271)	59,928,468
Net loss					1,298,758		1,298,758
Other comprehensive loss				(533,803)			(533,803)
Grant of stock options			253,934				253,934
Sale of treasury stock			(101,206)			384,436	283,230
Stock dividends	918,336	96,535	(355,157)		(659,714)
Conversion Class C to Class A	1,370	(1,371)	1
Balance at Dec. 31, 2011	19,277,596	2,027,195	19,487,565	654,443	22,546,623	(2,762,835)	61,230,587
Net loss					16,712,518		16,712,518
Other comprehensive loss				1,279,916			1,279,916
Grant of stock options			251,031				251,031
Exercise stock options	1,371,506	63,782	(1,416,982)				18,306
Sale of treasury stock			(62,650)			382,401	319,751
Stock dividends	1,037,404	104,488	3,003,177		(4,145,069)
Conversion Class C to Class A	646	(645)	(1)
Balance at Dec. 31, 2012	$ 21,687,152	$ 2,194,820	$ 21,262,140	$ 1,934,359	$ 35,114,072	$ (2,380,434)	$ 79,812,109

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

+ Details

- Definition

The cash inflow associated with the amount received from holders exercising their stock options. This item inherently excludes any excess tax benefit, which the entity may have realized and reported separately.

+ References

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- Definition

Equity impact of the value of treasury stock (units) reissued during the period, excluding reissuance of shares (units) held in treasury used to satisfy equity-based compensation obligations exercised by the holders of such rights. Upon reissuance of shares (units) from treasury, either the common or preferred stock (unit) reissued is outstanding.

+ References + Details

Statement of Cash Flows - USD ($)	12 Months Ended
Statement of Cash Flows - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net earnings (loss)	$ 16,712,518	$ 1,298,758	$ (430,624)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Realized gains on investments and other assets	(1,424,510)	(2,464,353)	(1,615,418)
Other than temporary impairments	1,207,632	840,735	673,981
Depreciation and amortization	2,877,743	2,814,585	2,917,513
Provision for losses on real estate accounts and loans receivable	(963,169)	1,644,171	(198,062)
Amortization of premiums and discounts	(762,301)	(539,896)	(19,505)
Provision for deferred and other income taxes	953,394	524,868	(1,197,023)
Policy and pre-need acquisition costs deferred	(7,885,882)	(6,806,486)	(6,956,154)
Policy and pre-need acquisition costs amortized	4,234,271	4,624,148	3,710,602
Value of business acquired amortized	1,215,158	1,145,200	720,474
Servicing asset at amortized cost, additions	(2,797,470)
Stock based compensation expense	251,031	253,934	520,457
Benefit plans funded with treasury stock	319,751	283,230	438,274
Change in assets and liabilities:
Land and improvements held for sale	26,054	(9,680)	(108,296)
Future life and other benefits	20,508,725	22,262,508	18,357,044
Receivables for mortgage loans sold	(18,807,956)	(15,144,933)	(23,957,088)
Other operating assets and liabilities	6,751,217	(3,860,964)	(7,107,055)
Net cash provided by (used in) operating activities	22,416,206	6,865,825	(14,250,880)
Securities held to maturity:
Purchase - fixed maturity securities	(11,365,269)	(50,566,004)	(8,251,365)
Calls and maturities - fixed maturity securities	9,601,320	21,631,908	27,878,797
Securities available for sale:
Purchase - equity securities	(1,685,983)	(4,574,717)	(5,462,028)
Sales - equity securities	3,028,509	4,161,140	5,014,194
Purchases of short-term investments	(51,823,941)	(70,895,829)	(9,590,929)
Sales of short-term investments	17,830,574	66,582,155	14,115,870
Sales (purchases) of restricted assets	(525,978)	(338,310)	(441,441)
Change in assets for perpetual care trusts	(265,435)	(266,056)	(282,605)
Amount received for perpetual care trusts	169,924	129,350	97,553
Mortgage, policy, and other loans made	(117,135,836)	(127,867,064)	(102,328,203)
Payments received for mortgage, policy, and other loans	131,565,100	103,865,163	97,675,289
Purchases of property and equipment	(3,022,393)	(765,633)	(859,988)
Disposal of property and equipment	30,524	2,296,247
Purchases of real estate	(143,278)	(441,444)	(1,813,784)
Sale of real estate	6,886,821	2,605,454	6,424,961
Cash received from reinsurance	34,485,224	12,990,444
Cash paid for purchase of subsidiaries, net of cash acquired	(180,591)
Net cash provided by (used in) investing activities	17,449,292	(41,453,196)	22,176,321
Cash flows from financing activities:
Annuity contract receipts	8,939,017	7,967,701	8,428,798
Annuity contract withdrawals	(13,915,777)	(13,910,925)	(14,372,244)
Proceeds from stock options exercised	18,306
Repayment of bank loans and notes and contracts payable	(1,534,612)	(1,957,389)	(1,889,295)
Proceeds from bank borrowings	241,875	3,615,085
Change in line of credit borrowings	(11,791,796)	16,400,000
Net cash provided by (used in) financing activities	(18,042,987)	12,114,472	(7,832,741)
Net change in cash and cash equivalents	21,822,511	(22,472,899)	92,700
Cash and cash equivalents at beginning of year	17,083,604	39,556,503	39,463,803
Cash and cash equivalents at end of year	17,083,604	39,556,503	39,463,803
Non Cash Investing and Financing Activities
Mortgage loans foreclosed into real estate	$ 17,019,870	$ 9,228,249	$ 12,985,041

Note 1: Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Notes

Note 1: Significant Accounting Policies

1) Significant Accounting Policies

General Overview of Business

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

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The presentation of certain amounts in prior years has been reclassified to conform to the 2012 presentation.

Principles of Consolidation

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

Investments

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

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

Fixed maturity and equity securities available for sale are carried at estimated fair value. Changes in fair values net of income taxes are reported as unrealized appreciation or depreciation and recorded as an adjustment directly to stockholders’ equity and, accordingly, have no effect on net income.

Mortgage loans on real estate, and construction loans are carried at their principal balances adjusted for charge-offs, the related allowance for loan losses, and net deferred fees or costs on originated loans. The Company defers related material loan origination fees, net of related direct loan origination costs, and amortizes the net fees over the term of the loans.

Mortgage loans are collateral dependent and require an appraisal at the time of underwriting and funding. Generally the Company will fund a loan not to exceed 80% of the loan’s collateral fair market value. Amounts over 80% will require mortgage insurance by an approved third party insurer. Once a loan is deemed to be impaired the Company will review the market value of the collateral and provide an allowance for any impairment.

Mortgage loans sold to investors are carried at the amount due from third party investors, which is the estimated fair value at the balance sheet date since these amounts are generally collected within a short period of time.

Real estate held for investment is carried at cost, less accumulated depreciation provided on a straight line basis over the estimated useful lives of the properties, or is adjusted to a new basis for impairment in value, if any.

Other real estate owned held for investment are foreclosed properties which the Company intends to hold for investment purposes. These properties are recorded at the lower of cost or market value upon foreclosure. Deprecation is provided on a straight line basis over the estimated useful life of the properties. These properties are analyzed for impairment periodically in accordance with our policy for long-lived assets.

Other real estate owned held for sale are foreclosed properties which the Company intends to sell. These properties are carried at the lower of cost or fair value, less cost to sell.

Policy and other loans are carried at the aggregate unpaid balances, less allowances for possible losses.

Short-term investments are carried at cost and consist of certificates of deposit and commercial paper with maturities of up to one year.

Restricted assets of cemeteries and mortuaries are assets held in a trust account for future mortuary services and merchandise and consist of cash; participations in mortgage loans with Security National Life; mutual funds carried at cost; equity securities carried at fair market value; and a surplus note with Security National Life.

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

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

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

Cemetery Land and Improvements

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

Property and Equipment

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

Recognition of Insurance Premiums and Other Considerations

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

Deferred Policy Acquisition Costs and Value of Business Acquired

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

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

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

Mortgage Servicing Rights

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

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

The Company’s subsequent accounting for MSRs is based on the class of MSRs. The Company has identified two classes of MSRs: MSRs backed by mortgage loans with initial term of 30 years and MSRs backed by mortgage loans with initial term of 15 years. The Company distinguishes between these classes of MSRs due to their differing sensitivities to change in value as the result of changes in market. After being initially recorded at fair value, MSRs backed by mortgage loans are accounted for using the amortization method. MSR amortization is determined by amortizing the balance straight-line over an estimated nine year life.

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

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

Allowance for Doubtful Accounts and Loan Losses and Impaired Loans

The Company records an allowance and recognizes an expense for potential losses from mortgage loans, other loans and receivables in accordance with FASB Codification Topic 450.

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

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

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

Loan Loss Reserve

The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on mortgage loans sold to third party investors.

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

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

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

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

Additional information related to the Loan Loss Reserve is included in Note 2.

Future Life, Annuity and Other Policy Benefits

Future policy benefit reserves for traditional life insurance are computed using a net level method, including assumptions as to investment yields, mortality, morbidity, withdrawals, and other assumptions based on the life insurance subsidiaries’ experience, modified as necessary to give effect to anticipated trends and to include provisions for possible unfavorable deviations. Such liabilities are, for some plans, graded to equal statutory values or cash values at or prior to maturity. The range of assumed interest rates for all traditional life insurance policy reserves was 4.5% to 10%. Benefit reserves for traditional limited-payment life insurance policies include the deferred portion of the premiums received during the premium-paying period. Deferred premiums are recognized as income over the life of the policies. Policy benefit claims are charged to expense in the period the claims are incurred. Increases in future policy benefits are charged to expense.

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

Participating Insurance

Participating business constituted 2%, 2%, and 2% of insurance in force for 2012, 2011 and 2010, respectively. The provision for policyholders’ dividends included in policyholder obligations is based on dividend scales anticipated by management. Amounts to be paid are determined by the Board of Directors.

Reinsurance

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

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

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

Cemetery and Mortuary Operations

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

Sales of cemetery interment rights (cemetery burial property) - revenue and costs associated with the sale of cemetery interment rights are recognized in accordance with the retail land sales provisions based on accounting principles generally accepted in the United States of America. Under accounting principles generally accepted in the United States of America, recognition of revenue and associated costs from constructed cemetery property must be deferred until a minimum percentage of the sales price has been collected.

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

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

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

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

Mortgage Fee Income

Mortgage fee income consists of origination fees, processing fees and certain other income related to the origination and sale of mortgage loans. For mortgage loans sold to third party investors, mortgage fee income and related expenses are recognized pursuant to generally accepted accounting principles at the time the sales of mortgage loans comply with the sales criteria for the transfer of financial assets, which are: (i) the transferred assets have been isolated from the Company and its creditors, (ii) the transferee has the right to pledge or exchange the mortgage, and (iii) the Company does not maintain effective control over the transferred mortgage. The Company must determine that all three criteria are met at the time a loan is funded. All rights and title to the mortgage loans are assigned to unrelated financial institution investors, including investor commitments for the loans, prior to warehouse banks purchasing the loans under the purchase commitments.

The Company, through SecurityNational Mortgage, sells all mortgage loans to third party investors without recourse. However, it may be required to repurchase a loan or pay a fee instead of repurchase under certain events, which include the following:

· Failure to deliver original documents specified by the investor.

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

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

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

· Excessive time to settle a loan.

· Investor declines purchase.

· Discontinued product and expired commitment.

Loan purchase commitments generally specify a date 30 to 45 days after delivery upon which the underlying loans should be settled. Depending on market conditions, these commitment settlement dates can be extended at a cost to the Company. Generally, a ten day extension will cost .125% (12.5 basis points) of the loan amount. The Company’s historical data shows that 99% of all loans originated by SecurityNational Mortgage are generally settled by the investors as agreed within 20 days after delivery. There are situations, however, when the Company determines that it is unable to enforce the settlement of loans rejected by the third-party investors and that it is in its best interest to repurchase those loans from the warehouse banks. It is the Company's policy to cure any documentation problems regarding such loans at a minimal cost for up to a six-month time period and to pursue efforts to enforce loan purchase commitments from third-party investors concerning the loans. The Company believes that six months allows adequate time to remedy any documentation issues, to enforce purchase commitments, and to exhaust other alternatives. Remedial methods include the following:

· Research reasons for rejection.

· Provide additional documents.

· Request investor exceptions.

· Appeal rejection decision to purchase committee.

· Commit to secondary investors.

Once purchase commitments have expired and other alternatives to remedy are exhausted, which could be earlier than the six month time period, the loans are repurchased and transferred to the long term investment portfolio at the lower of cost or market value and previously recorded sales revenue is reversed. Any loan that later becomes delinquent is evaluated by the Company at that time and any impairment is adjusted accordingly.

Determining lower of cost or market: Cost is equal to the amount paid to the warehouse bank and the amount originally funded by the Company. Market value is often difficult to determine, but is based on the following:

· 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.

The appraised value of the real estate underlying the original mortgage loan adds significance to the Company’s determination of fair value because if the loan becomes delinquent, the Company has sufficient value to collect the unpaid principal balance or the carrying value of the loan. In determining the market value on the date of repurchase, the Company considers the total value of all of the loans because any sale of loans would be made as a pool.

For mortgages originated and held for investment, mortgage fee income and related expenses are recognized when the loan is originated.

The Company’s current policy is to not lend more than 80% of the appraised market value at the time of funding unless third party mortgage insurance is obtained to insure the amount in excess of the 80% limitation. New appraisals are not obtained on mortgages in a current payment status.

The Company provides an allowance for loan losses on its mortgage loans held for investment. The allowance is comprised of two components. The first component is an allowance for collectively evaluated impairment that is based upon the Company’s historical experience in collecting similar receivables. The second component is based upon individual evaluation of loans that are determined to be impaired.

Commercial Loans

Each quarter, management reviews the current commercial loans and determines if an allowance is required based on the Company’s actual experience of losses on impaired commercial loans. To date, the Company has not incurred any significant losses. As a result, management has determined that no allowance is required on current commercial loans in its portfolio. The carrying value of all commercial loans is supported by appraisals and cash flow analysis of revenue received. Also, the Company has not accrued any interest income or capitalized any of the foreclosure costs on the impaired commercial loans.

Residential and Construction Loans

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

It should be noted that for replacement cost, when determining the fair value of mortgage properties, the Company uses Marshall and Swift, a provider of building cost information to the real estate construction industry. For the investment analysis, the Company used market data based upon its real estate operation experience and projected the present value of the net rental income over seven years. The Company used 60% of the projected cash flow analysis and 40% of the replacement cost to approximate fair value of the collateral.

Each quarter the Company also analyzes its current loan portfolio and determines the level of allowance needed for loans that are listed as current in the portfolio. The basis of the analysis places a higher weight on loans with high loan to value ratios, those that lack mortgage insurance, and certain loan types that have a higher percentage of default based on the Company’s experience.

Each quarter the Company makes further analysis of the foreclosed properties to determine if any additional allowances are necessary by comparing national indexes of loan to value ratios by region to the Company’s loan to value ratios. Based upon the above procedures, the Company’s management believes that residential and construction loans are reflected in the Company’s financial statements at the lower of cost or market in accordance with GAAP requirements.

Self-Insurance

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

Goodwill

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

Long-lived Assets

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

Income Taxes

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

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

Earnings Per Common Share

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

Stock Based Compensation

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

Concentration of Credit Risk

The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Advertising Expense

The Company expenses advertising costs as incurred.

The total amount charged to advertising expense for 2012, 2011 and 2010 was $4,065,000, $2,237,000 and $2,122,000, respectively.

Recent Accounting Pronouncements

Disclosures about Offsetting Assets and Liabilities – In December 2011, the Financial Accounting Standards Board ("FASB") issued authoritative guidance related to balance sheet offsetting. The new guidance requires disclosures about assets and liabilities that are offset or have the potential to be offset. These disclosures are intended to address differences in the asset and liability offsetting requirements under U.S. GAAP and International Financial Reporting Standards (“IFRS”). This new guidance will be effective for the Company for interim and annual reporting periods beginning January 1, 2013, with retrospective application required. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations or financial position.

Note 2: Investments

12 Months Ended

Dec. 31, 2012

Notes

Note 2: Investments

2) Investments

The Company’s investments in fixed maturity securities held to maturity and equity securities available for sale as of December 31, 2012 are summarized as follows:

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2012:
Fixed maturity securities held to maturity
carried at amortized cost:
Bonds:
U.S. Treasury securities
and obligations of U.S
Government agencies	$	2,602,589	$	514,572	$	-	$	3,117,161

Obligations of states and
political subdivisions		2,040,277		285,241		(3,982)		2,321,536

Corporate securities including
public utilities		118,285,147		16,230,468		(607,322)		133,908,293

Mortgage-backed securities		5,010,519		327,871		(76,056)		5,262,334

Redeemable preferred stock		1,510,878		98,087		(1,200)		1,607,765
Total fixed maturity
securities held to maturity	$	129,449,410	$	17,456,239	$	(688,560)	$	146,217,089

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2012:

Equity securities available for sale
at estimated fair value:

Non-redeemable preferred stock	$	20,281	$	-	$	(1,486)	$	18,795

Common stock:

Industrial, miscellaneous and all other		6,047,474		309,752		(970,909)		5,386,317

Total equity securities available for sale
at estimated fair value	$	6,067,755	$	309,752	$	(972,395)	$	5,405,112

Total securities available for sale
carried at estimated fair value	$	6,067,755	$	309,752	$	(972,395)	$	5,405,112

Mortgage loans on real estate and construction loans held for investment at amortized cost:
Residential	$	50,584,923
Residential construction		3,161,112
Commercial		34,956,031
Less: Allowance for loan losses		(4,239,861)
Total mortgage loans on real estate and
construction loans held for investment	$	84,462,205

Real estate held for investment - net of depreciation	$	3,543,751
Other real estate owned held for investment - net of
depreciation		55,027,669
Other real estate owned held for sale		5,682,610
Total real estate	$	64,254,030

Policy, student and other loans at
amortized cost - net of allowance for doubtful accounts	$	20,188,516

Short-term investments at amortized cost	$	40,925,390

The Company’s investments in fixed maturity securities held to maturity and equity securities available for sale as of December 31, 2011 are summarized as follows:

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2011:
Fixed maturity securities held to maturity
carried at amortized cost:
Bonds:
U.S. Treasury securities
and obligations of U.S
Government agencies	$	2,820,159	$	551,740	$	-	$	3,371,899

Obligations of states and
political subdivisions		3,024,425		309,986		(13,156)		3,321,255

Corporate securities including
public utilities		113,648,447		10,075,071		(2,268,146)		121,455,372

Mortgage-backed securities		6,575,178		354,286		(356,899)		6,572,565

Redeemable preferred stock		1,510,878		72,639		(129,200)		1,454,317
Total fixed maturity
securities held to maturity	$	127,579,087	$	11,363,722	$	(2,767,401)	$	136,175,408

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2011:

Equity securities available for sale
at estimated fair value:

Non-redeemable preferred stock	$	20,281	$	-	$	(1,843)	$	18,438

Common stock:

Industrial, miscellaneous and all other		7,250,991		363,387		(1,333,424)		6,280,954

Total equity securities available for sale
at estimated fair value	$	7,271,272	$	363,387	$	(1,335,267)	$	6,299,392

Total securities available for sale
carried at estimated fair value	$	7,271,272	$	363,387	$	(1,335,267)	$	6,299,392

Mortgage loans on real estate and construction loans held for investment at amortized cost:
Residential	$	54,344,327
Residential construction		17,259,666
Commercial		48,433,147
Less: Allowance for loan losses		(4,881,173)
Total mortgage loans on real estate and
construction loans held for investment	$	115,155,967

Real estate held for investment - net of depreciation	$	3,786,780
Other real estate owned held for investment - net of
depreciation		46,398,095
Other real estate owned held for sale		5,793,900
Total real estate	$	55,978,775

Policy, student and other loans at
amortized cost - net of allowance for doubtful accounts	$	18,463,277

Short-term investments at amortized cost	$	6,932,023

Fixed Maturity Securities

The following tables summarize unrealized losses on fixed maturities securities, which are carried at amortized cost, at December 31, 2012 and 2011. The unrealized losses were primarily related to interest rate fluctuations. The tables set forth unrealized losses by duration and number of investment positions, together with the fair value of the related fixed maturity securities:

		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, 2012
Redeemable Preferred Stock	$	1,200	1	$	-	-	$	1,200
Obligations of States and
Political Subdivisions		-	-		3,982	2		3,982
Corporate Securities		191,662	16		415,660	9		607,322
Mortgage and other
asset-backed securities		-	-		76,056	3		76,056
Total unrealized losses	$	192,862	17	$	495,698	14	$	688,560
Fair Value	$	4,609,268		$	3,972,091		$	8,581,359

At December 31, 2011
Redeemable Preferred Stock	$	800	1		128,400	1	$	129,200
Obligations of States and
Political Subdivisions		-	-		13,156	2		13,156
Corporate Securities		1,544,224	47		723,922	12		2,268,146
Mortgage and other
asset-backed securities		161,300	3		195,599	1		356,899
Total unrealized losses	$	1,706,324	51	$	1,061,077	16	$	2,767,401
Fair Value	$	24,249,533		$	3,762,892		$	28,012,425

As of December 31, 2012, the average market value of the related fixed maturities was 92.6% of amortized cost and the average market value was 91.0% of amortized cost as of December 31, 2011. During 2012, 2011 and 2010, an other than temporary decline in market value resulted in the recognition of credit losses on fixed maturity securities of $165,000, $125,129 and $150,059, respectively.

On a quarterly basis, the Company reviews its available for sale fixed investment securities related to corporate securities and other public utilities, consisting of bonds and preferred stocks that are in a loss position. The review involves an analysis of the securities in relation to historical values, and projected earnings and revenue growth rates. Based on the analysis, a determination is made whether a security will likely recover from the loss position within a reasonable period of time. If it is unlikely that the investment will recover from the loss position, the loss is considered to be other-than-temporary, the security is written down to the impaired value and an impairment loss is recognized.

Equity Securities

The following tables summarize unrealized losses on equity securities that were carried at estimated fair value based on quoted trading prices at December 31, 2012 and 2011. The unrealized losses were primarily the result of decreases in market value due to overall equity market declines. The tables set forth unrealized losses by duration and number of investment positions, together with the fair value of the related equity securities available for sale in a loss position:

		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, 2012
Non-redeemable preferred stock	$	686	1	$	800	1	$	1,486
Industrial, miscellaneous and all other		236,293	39		734,616	44		970,909
Total unrealized losses	$	236,979	40	$	735,416	45	$	972,395
Fair Value	$	1,422,436		$	1,493,538		$	2,915,974

At December 31, 2011
Non-redeemable preferred stock	$	-	-	$	1,843	2	$	1,843
Industrial, miscellaneous and all other		955,400	79		378,024	14		1,333,424
Total unrealized losses	$	955,400	79	$	379,868	16	$	1,335,266
Fair Value	$	2,857,082		$	560,529		$	3,417,611

As of December 31, 2012, the average market value of the equity securities available for sale was 75.0% of the original investment and the average market value was 71.9% of the original investment as of December 31, 2011. The intent of the Company is to retain equity securities for a period of time sufficient to allow for the recovery in fair value. However, the Company may sell equity securities during a period in which the fair value has declined below the amount of the original investment. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. During 2012, 2011, and 2010, an other than temporary decline in the market value resulted in the recognition of an impairment loss on equity securities of $247,317, $52,775 and $23,922, respectively.

On a quarterly basis, the Company reviews its investment in industrial, miscellaneous and all other equity securities that are in a loss position. The review involves an analysis of the securities in relation to historical values, price earnings ratios, projected earnings and revenue growth rates. Based on the analysis a determination is made whether a security will likely recover from the loss position within a reasonable period of time. If it is unlikely that the investment will recover from the loss position, the loss is considered to be other than temporary, the security is written down to the impaired value and an impairment loss is recognized.

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

The amortized cost and estimated fair value of fixed maturity securities at December 31, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Amortized		Estimated Fair
		Cost		Value
Held to Maturity:
Due in 2013	$	1,700,455	$	1,768,905
Due in 2014 through 2017		20,923,480		23,120,438
Due in 2018 through 2022		45,399,136		51,113,794
Due after 2022		54,904,942		63,343,853
Mortgage-backed securities		5,010,519		5,262,334
Redeemable preferred stock		1,510,878		1,607,765
Total held to maturity	$	129,449,410	$	146,217,089

The amortized cost and estimated fair value of available for sale securities at December 31, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Equities are valued using the specific identification method.

		Amortized		Estimated Fair
		Cost		Value
Available for Sale:
Due in 2013	$	-	$	-
Due in 2014 through 2017		-		-
Due in 2018 through 2022		-		-
Due after 2022		-		-
Non-redeemable preferred stock		20,281		18,795
Common stock		6,047,474		5,386,317
Total available for sale	$	6,067,755	$	5,405,112

The Company’s realized gains and losses and other than temporary impairments from investments and other assets are summarized as follows:

		2012		2011		2010
Fixed maturity securities held
to maturity:
Gross realized gains	$	470,874	$	939,672	$	1,300,187
Gross realized losses		(3,875)		(162,716)		(494,678)
Other than temporary impairments		(165,000)		(125,129)		(150,059)

Securities available for sale:
Gross realized gains		392,033		590,455		686,788
Gross realized losses		(5,705)		(118,417)		(61,530)
Other than temporary impairments		(247,317)		(52,775)		(23,922)

Other assets:
Gross realized gains		794,346		1,295,217		393,943
Gross realized losses		(223,163)		(79,858)		(209,292)
Other than temporary impairments		(795,315)		(662,831)		(500,000)
Total	$	216,878	$	1,623,618	$	941,437

The net carrying amount for sales of securities classified as held to maturity was $2,174,300, $12,341,156 and $16,220,943, for the years ended December 31, 2012, 2011 and 2010, respectively. The net realized gain related to these sales was $271,364, $530,637 and $346,225, for the years ended December 31, 2012, 2011 and 2010, respectively. Certain circumstances lead to these decisions to sell. In 2012, 2011 and 2010, the Company sold certain held to maturity bonds in gain positions to reduce its risk in certain industries or companies.

There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses on available-for-sale securities) at December 31, 2012, other than investments issued or guaranteed by the United States Government.

Major categories of net investment income are as follows:

		2012		2011		2010
Fixed maturity securities	$	7,731,051	$	7,762,894	$	6,761,254
Equity securities		264,063		272,011		238,929
Mortgage loans on real estate		6,878,354		6,863,026		6,154,760
Real estate		4,927,128		3,741,263		3,040,864
Policy, student and other loans		830,683		835,312		897,945
Short-term investments, principally gains on sale of mortgage loans		8,716,257		6,255,581		7,215,927
Gross investment income		29,347,536		25,730,087		24,309,679
Investment expenses		(6,097,382)		(5,719,383)		(5,693,695)
Net investment income	$	23,250,154	$	20,010,704	$	18,615,984

Net investment income includes net investment income earned by the restricted assets of the cemeteries and mortuaries of $643,283, $626,688 and $635,652 for 2012, 2011 and 2010, respectively.

Net investment income on real estate consists primarily of rental revenue received under short-term leases.

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

Securities on deposit for regulatory authorities as required by law amounted to $9,190,012 at December 31, 2012 and $9,593,318 at December 31, 2011. The restricted securities are included in various assets under investments on the accompanying consolidated balance sheets.

Mortgage Loans

Mortgage loans consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0 % to 10.5%, maturity dates range from three months to 30 years and are secured by real estate. Concentrations of credit risk arise when a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of its debtors’ ability to honor obligations is reliant on the economic stability of the geographic region in which the debtors do business. At December 31, 2012, the Company has 26%, 19%, 12% and 12% of its mortgage loans from borrowers located in the states of Utah, California, Florida and Texas, respectively. The mortgage loans on real estate balances on the consolidated balance sheet are reflected net of an allowance for loan losses of $4,239,861 and $4,881,173 at December 31, 2012 and 2011, respectively.

The Company establishes a valuation allowance for credit losses in its portfolio.

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

Allowance for Credit Losses and Recorded Investment in Mortgage Loans
For the Years Ended December 31, 2012, and 2011

		Commercial		Residential		Residential Construction		Total
2012
Allowance for credit losses:
Beginning balance	$	-	$	4,338,805	$	542,368	$	4,881,173
Charge-offs		-		(560,699)		(514,442)		(1,075,141)
Provision		-		415,568		18,261		433,829
Ending balance	$	-	$	4,193,674	$	46,187	$	4,239,861

Ending balance: individually evaluated for impairment	$	-	$	692,199	$	-	$	692,199

Ending balance: collectively evaluated for impairment	$	-	$	3,501,475	$	46,187	$	3,547,662

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

Mortgage loans:
Ending balance	$	34,956,031	$	50,584,923	$	3,161,112	$	88,702,066

Ending balance: individually evaluated for impairment	$	-	$	4,692,517	$	1,346,126	$	6,038,643

Ending balance: collectively evaluated for impairment	$	34,956,031	$	45,892,406	$	1,814,986	$	82,663,423

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

2011
Allowance for credit losses:
Beginning balance	$	-	$	6,212,072	$	858,370	$	7,070,442
Charge-offs		-		(2,994,715)		(430,274)		(3,424,989)
Provision		-		1,121,448		114,272		1,235,720
Ending balance	$	-	$	4,338,805	$	542,368	$	4,881,173

Ending balance: individually evaluated for impairment	$	-	$	738,975	$	250,524	$	989,499

Ending balance: collectively evaluated for impairment	$	-	$	3,599,830	$	291,844	$	3,891,674

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

Mortgage loans:
Ending balance	$	48,433,147	$	54,344,327	$	17,259,666	$	120,037,140

Ending balance: individually evaluated for impairment	$	2,758,235	$	4,611,995	$	5,645,865	$	13,016,095

Ending balance: collectively evaluated for impairment	$	45,674,912	$	49,732,332	$	11,613,801	$	107,021,045

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

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

Age Analysis of Past Due Mortgage Loans
Years Ended December 31, 2012 and 2011

	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days 1)	In Foreclosure 1)	Total Past Due	Current	Total Mortgage Loans	Allowance for Loan Losses	Net Mortgage Loans
2012
Commercial	$581,984	$0	$143,252	$0	$725,236	$34,230,795	$34,956,031	$0	$34,956,031
Residential	2,963,259	1,345,247	5,208,742	4,692,517	14,209,765	36,375,158	50,584,923	(4,193,674)	46,391,249
Residential Construction	-	-	288,468	1,346,126	1,634,594	1,526,518	3,161,112	(46,187)	3,114,925

Total	$3,545,243	$1,345,247	$5,640,462	$6,038,643	$16,569,595	$72,132,471	$88,702,066	$(4,239,861)	$84,462,205

2011
Commercial	$0	$0	$1,053,500	$2,758,235	$3,811,735	$44,621,412	$48,433,147	$0	$48,433,147
Residential	2,478,084	2,058,261	5,500,340	4,611,995	14,648,680	39,695,647	54,344,327	(4,338,805)	50,005,522
Residential Construction	859,651	682,532	309,651	5,645,865	7,497,699	9,761,967	17,259,666	(542,368)	16,717,298

Total	$3,337,735	$2,740,793	$6,863,491	$13,016,095	$25,958,114	$94,079,026	$120,037,140	$(4,881,173)	$115,155,967

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

Impaired Mortgage Loans

Impaired mortgage loans include loans with a related specific valuation allowance or loans whose carrying amount has been reduced to the expected collectible amount because the impairment has been considered other than temporary. The recorded investment in and unpaid principal balance of impaired loans along with the related loan specific allowance for losses, if any, for each reporting period and the average recorded investment and interest income recognized during the time the loans were impaired were as follows:

Impaired Loans
For the Years Ended December 31, 2012, and 2011

		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
2012
With no related allowance recorded:
Commercial	$	143,252	$	143,252	$	-	$	143,252	$	-
Residential		5,208,742		5,208,742		-		5,208,742		-
Residential construction		1,634,594		1,634,594		-		1,634,594		-

With an allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-
Residential		4,692,517		4,692,517		692,199		4,692,517		-
Residential construction		-		-		-		-		-

Total:
Commercial	$	143,252	$	143,252	$	-	$	143,252	$	-
Residential		9,901,259		9,901,259		692,199		9,901,259		-
Residential construction		1,634,594		1,634,594		-		1,634,594		-

2011
With no related allowance recorded:
Commercial	$	3,811,735	$	3,811,735	$	-	$	3,811,735	$	-
Residential		5,500,340		5,500,340		-		5,500,340		-
Residential construction		309,651		309,651		-		309,651		-

With an allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-
Residential		4,611,995		4,611,995		738,975		4,611,995		-
Residential construction		5,645,865		5,645,865		250,524		5,645,865		-

Total:
Commercial	$	3,811,735	$	3,811,735	$	-	$	3,811,735	$	-
Residential		10,112,335		10,112,335		738,975		10,112,335		-
Residential construction		5,955,516		5,955,516		250,524		5,955,516		-

Credit Risk Profile Based on Performance Status

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

The Company’s performing and non-performing mortgage loans were as follows:

Mortgage Loan Credit Exposure
Credit Risk Profile Based on Payment Activity
As of December 31, 2012, and 2011

		Commercial				Residential				Residential Construction				Total
		2012		2011		2012		2011		2012		2011		2012		2011

Performing	$	34,812,779	$	44,621,412	$	40,683,664	$	44,231,992	$	1,526,518	$	11,304,150	$	77,022,961	$	100,157,554
Nonperforming		143,252		3,811,735		9,901,259		10,112,335		1,634,594		5,955,516		11,679,105		19,879,586

Total	$	34,956,031	$	48,433,147	$	50,584,923	$	54,344,327	$	3,161,112	$	17,259,666	$	88,702,066	$	120,037,140

Non-Accrual Mortgage Loans

Once a loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and write off any income that had been accrued. Interest not accrued on these loans totals $1,925,000 and $2,023,000 as of December 31, 2012 and 2011, respectively.

The following is a summary of mortgage loans on a nonaccrual status for the periods presented.

		Mortgage Loans on Nonaccrual Status
		As of December 31, 2012, and 2011


		2012		2011
Commercial	$	143,252	$	3,811,735
Residential		9,901,259		10,112,335
Residential construction		1,634,594		5,955,516

Total	$	11,679,105	$	19,879,586

Principal Amounts Due

The amortized cost and contractual payments on mortgage loans on real estate and construction loans held for investment by category as of December 31, 2012 are shown below. Expected principal payments may differ from contractual obligations because certain borrowers may elect to pay off mortgage obligations with or without early payment penalties.

				Principal		Principal		Principal
				Amounts		Amounts		Amounts
				Due in		Due in		Due
		Total		2013		2014-2017		Thereafter
Residential	$	50,584,923	$	2,247,732	$	6,699,546	$	41,637,645
Residential Construction		3,161,112		3,161,112		-		-
Commercial		34,956,031		22,612,642		7,214,630		5,128,758
Total	$	88,702,066	$	28,021,486	$	13,914,176	$	46,766,403

Loan Loss Reserve

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

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

		Years Ended December 31
		2012		2011
Balance, beginning of period	$	2,337,875	$	5,899,025
Provisions for losses		4,053,051		1,667,805
Charge-offs		(355,631)		(5,228,955)
Balance, at December 31	$	6,035,295	$	2,337,875

The Company believes the loan loss reserve represents probable loan losses incurred as of the balance sheet date. The loan loss reserve may not be adequate, however, for claims asserted by third party investors. Actual loan loss experience could change, in the near-term, from the established reserve based upon claims asserted by third party investors. If SecurityNational Mortgage is unable to negotiate acceptable terms with the third party investors, legal action may ensue in an effort to obtain amounts that the third party investors claim are allegedly due. In the event of legal action, if SecurityNational Mortgage is not successful in its defenses against claims asserted by these third party investors to the extent that a substantial judgment is entered against SecurityNational Mortgage which is beyond its capacity to pay, SecurityNational Mortgage may be required to curtail or cease operations.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 3: Receivables

12 Months Ended

Dec. 31, 2012

Notes

Note 3: Receivables

3) Receivables

Receivables consist of the following:

		December 31
		2012		2011
Trade contracts	$	14,968,859	$	8,409,206
Receivables from sales agents		649,739		1,623,025
Held in Escrow – Southern Security		342,377		369,968
Other		1,788,894		1,788,731
Total receivables		17,749,869		12,190,930
Allowance for doubtful accounts		(1,190,592)		(2,278,969)
Net receivables	$	16,559,277	$	9,911,961

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

+ Details

Note 4: Value of Business Acquired

12 Months Ended

Dec. 31, 2012

Notes

Note 4: Value of Business Acquired

4) Value of Business Acquired

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

		December 31
		2012		2011		2010
Balance at beginning of year	$	10,996,050	$	8,996,134	$	10,231,755
Value of business acquired		48,190		3,145,116		(515,147)
Imputed interest at 7%		728,880		701,349		674,463
Amortization		(1,944,038)		(1,846,549)		(1,394,937)
Net amortization charged to income		(1,215,158)		(1,145,200)		(720,474)
Balance at end of year	$	9,829,082	$	10,996,050	$	8,996,134

Presuming no additional acquisitions, net amortization charged to income is expected to approximate $1,104,000, $1,038,000, $855,000, $789,000, and $727,000 for the years 2013 through 2017. Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2012, value of business acquired is being amortized over a weighted average life of 7.6 years.

Note 5: Property and Equipment

12 Months Ended

Dec. 31, 2012

Notes

Note 5: Property and Equipment

5) Property and Equipment

The cost of property and equipment is summarized below:

		December 31
		2012		2011
Land and buildings	$	14,782,646	$	12,503,230
Furniture and equipment		13,226,209		12,900,261
		28,008,855		25,403,491
Less accumulated depreciation		(16,974,898)		(16,103,306)
Total	$	11,033,957	$	9,300,185

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 was $1,258,097, $1,499,038 and $1,811,931 respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Note 6: Bank and Other Loans Payable

12 Months Ended

Dec. 31, 2012

Notes

Note 6: Bank and Other Loans Payable

6) Bank and Other Loans Payable

Bank loans payable are summarized as follows:

		December 31
		2012		2011
6.34% note payable in monthly installments of $13,556 including principal and interest, collateralized by real property with a book value of approximately $498,000, due November 2017.		748,612		877,707

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.		3,643,192		3,769,012

Bank prime rate less .75% (2.50% at December 31, 2012) note payable in quarterly installments of $75,000 plus interest collateralized by shares of Security National Life Insurance Company Stock, due September 2013.		225,000		525,000

Mark to market of interest rate swaps (discussed below) adjustment		93,572		117,812

3.85% note payable in monthly installments of $79,468 including principal and interest, collateralized by shares of Security National Life Insurance Company Stock, due June 2015.		2,258,968		3,105,965

Revolving line-of-credit, interest payable at the variable overnight Libor rate plus 2% (2.1875% as of December 31, 2012), secured by bond investments of the Company, matures June 2013.		-		15,000,000

Revolving line-of-credit, interest payable at the prime rate minus .75% (2.5% as of December 31, 2012) secured by shares of Security National Life Insurance Company Stock, matures June 2013.		4,608,204		1,400,000

Other collateralized bank loans payable		331,834		222,662
Other notes payable		961		961
Total bank and other loans		11,910,343		25,019,119

Less current installments		6,266,765		18,018,145
Bank and other loans, excluding current installments	$	5,643,578	$	7,000,974

During 2001, the Company entered into a $2,000,000 note payable to a bank with interest due at a variable interest rate of the Libor rate plus 1.65%. During 2001, the Company also entered into an interest rate swap instrument that effectively fixed the interest rate on the note payable at 6.34% per annum. Management considers the interest rate swap instrument an effective cash flow hedge against the variable interest rate on the bank note since the interest rate swap mirrors the term of the note payable and expires on the maturity date of the bank loan it hedges. The interest rate swap is a derivative financial instrument carried at its fair value.

In the event the swap is terminated, any resulting gain or loss would be deferred and amortized to interest expense over the remaining life of the bank loan it hedged. In the event of early extinguishment of the hedged bank loan, any realized or unrealized gain or loss from the hedging swap would be recognized in income coincident with the extinguishment.

At December 31, 2012, the fair value of the interest rate swap was an unrealized loss of $93,572 and was computed based on the underlying variable Libor rate plus 1.65%, or 2.65% per annum. The unrealized loss resulted in a derivative liability of $93,572 and has been reflected in accumulated other comprehensive income. The change in accumulated other comprehensive income from the interest rate swap in 2012 was $24,240. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable.

At December 31, 2011, the fair value of the interest rate swap was an unrealized loss of $117,812 and was computed based on the underlying variable Libor rate plus 1.65%, or 2.65% per annum. The unrealized loss resulted in a derivative liability of $117,812 and has been reflected in accumulated other comprehensive income. The change in accumulated other comprehensive income from the interest rate swap in 2011 was $1,279. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable.

The Company has a $6,000,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75% (2.50% at December 31, 2012), secured by the capital stock of Security National Life and maturing June 15, 2013, renewable annually. As of December 31, 2012, there was $4,608,204 outstanding under the revolving line-of-credit. As of December 31, 2012, $652,572 was available and $514,224 was reserved for two outstanding letters of credit. $1,500,000 was carved out for a loan in September 2008 that as of December 31, 2012 has a balance of $225,000. As the principal payments on the loan are made the line of credit amount increases in availability.

The Company has a $15,000,000 revolving line-of-credit with a bank with interest payable at the variable overnight Libor rate plus 2% (2.1875% at December 31, 2012), secured by bond investments of the Company and maturing June 30, 2013. As of December 31, 2012 there was $15,000,000 available under the revolving line-of-credit.

The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the prime rate plus 1.25% (4.5% at December 31, 2012), secured by the capital stock of Security National Life and maturing June 30, 2013. As of December 31, 2012 $1,250,000 was reserved for an outstanding letter of credit. As of December 31, 2012 there were no amounts outstanding under the revolving line-of-credit.

The following tabulation shows the combined maturities of bank loans payable, lines of credit and notes and contracts payable:

2013	$	6,266,765
2014		4,636,015
2015		598,975
2016		200,949
2017		161,704
Thereafter		45,935
Total	$	11,910,343

Interest paid approximated interest expense in 2012, 2011 and 2010 which was $3,744,293, $1,961,249 and $2,778,920 respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

12 Months Ended

Dec. 31, 2012

Notes

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

7) Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds

The Company is required by state law to pay into perpetual care trusts a portion of the proceeds from the sale of cemetery property interment rights. The related cemetery perpetual care trusts are defined as variable interest entities pursuant to generally accepted accounting principles. Also, management has determined that the Company is the primary beneficiary of these trusts, as it absorbs both a majority of the losses and returns associated with the trusts. The Company has consolidated cemetery perpetual care trust investments with a corresponding amount recorded as Cemetery Perpetual Care Obligation in the accompanying consolidated balance sheets.

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

		December 31
		2012		2011
Trust investments, at market value	$	2,090,111	$	1,810,185
Note receivables from Cottonwood Mortuary
Singing Hills Cemetery and Memorial Estates - Pinehill
eliminated in consolidation		1,927,926		1,971,750
Total trust assets		4,018,037		3,781,935
Cemetery perpetual care obligation		(3,153,001)		(2,983,077)
Fair value of trust assets in excess of trust obligations	$	865,036	$	798,858

The Company has established and maintains certain restricted trust investments to provide for future merchandise and service obligations incurred in connection with its pre-need sales. Such amounts are reported as restricted assets of cemeteries and mortuaries in the accompanying consolidated balance sheets.

Assets in the restricted asset account are summarized as follows:

		December 31
		2012		2011
Cash and cash equivalents	$	2,205,312	$	1,765,415
Mutual funds		504,170		470,049
Fixed maturity securities		8,775		8,775
Equity securities		81,242		78,712
Participating in Mortgage loans with Security National Life		1,155,628		1,069,546
Total	$	3,955,127	$	3,392,497

A surplus note receivable and interest, at December 31, 2012 and December 31, 2011 in the amount of $4,000,000 from Security National Life was eliminated in consolidation.

Note 8: Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

Note 8: Income Taxes

8) Income Taxes

The Company’s income tax liability (benefit) at December 31 is summarized as follows:

		December 31
		2012		2011
Current	$	613,328	$	(977,420)
Deferred		17,309,970		15,987,699
Total	$	17,923,298	$	15,010,279

Significant components of the Company’s deferred tax (assets) and liabilities at December 31 are approximately as follows:

		December 31
		2012		2011
Assets
Future policy benefits	$	(4,160,489)	$	(4,597,137)
Loan loss reserve		(2,353,765)		(1,210,791)
Unearned premium		(1,830,492)		(1,861,264)
Available for sale securities		(599,528)		(116,501)
Net operating loss		(1,099,500)		(1,235,365)
Deferred compensation		(1,238,270)		(766,503)
Deposit obligations		(1,060,205)		-
Other		(1,090,409)		(603,447)
Less: Valuation allowance		6,328,931		3,640,327
Total deferred tax assets		(7,103,727)		(6,750,681)

Liabilities
Deferred policy acquisition costs		9,945,683		9,526,785
Basis difference in property and equipment		5,739,272		3,917,124
Value of business acquired		3,341,888		4,077,709
Deferred gains		2,790,709		1,996,967
Trusts		1,599,657		2,385,770
Tax on unrealized appreciation		996,488		834,025
Total deferred tax liabilities		24,413,697		22,738,380
Net deferred tax liability	$	17,309,970	$	15,987,699

Life insurance companies with combined total assets less than $500 million receive a special deduction that lowers their effective tax rate. The Company’s combined tax assets exceed $500 million at December 31, 2012. Therefore, the Company’s valuation allowance related to the small life insurance company deduction has decreased. The remaining valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization.

The valuation allowance increased $2,688,604 during 2012 and decreased $2,464,848 during 2011.

The Company paid $1,900,000, $174,811, and $108,522 in income taxes for 2012, 2011 and 2010, respectively.

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


		2012		2011		2010
Current	$	2,707,962	$	130,526	$	171,133
Deferred		1,930,813		(192,731)		(829,929)
Total	$	4,638,775	$	(62,205)	$	(658,796)

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

		2012		2011		2010
Computed expense at statutory rate	$	7,472,953	$	410,225	$	(370,403)
Special deductions allowed
small life insurance companies		-		(503,672)		(351,847)
Other, net		(2,834,178)		31,242		63,454
Tax expense (benefit)	$	4,638,775	$	(62,205)	$	(658,796)

At December 31, 2012, the Company had $376,799 of unrecognized tax benefits principally relating to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. At December 31, 2012, the Company had $22,006 in interest and penalties related to unrecognized tax benefits. The Company accounts for interest expense and penalties for unrecognized tax benefits as part of its income tax provision. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. As of December 31, 2012, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2009 through 2012 are subject to examination by taxing authorities.

- Definition

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

+ References

+ Details

Note 9: Reinsurance, Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Notes

Note 9: Reinsurance, Commitments and Contingencies

9) Reinsurance, Commitments and Contingencies

Reinsurance

The Company follows the procedure of reinsuring risks in excess of a specified limit, which ranged from $25,000 to $100,000 during the years 2012 and 2011. The Company is liable for these amounts in the event such reinsurers are unable to pay their portion of the claims. The Company has also assumed insurance from other companies having insurance in force amounting to approximately $1,665,573,000 (unaudited) at December 31, 2012 and approximately $1,732,120,000] (unaudited) at December 31, 2011.

Reinsurance with Mothe Life Insurance Company and DLE Life Insurance Company

On December 19, 2012, the Company, through its wholly owned subsidiary, Security National Life, entered into a Coinsurance Agreement with Mothe Life Insurance Company, a Louisiana domiciled insurance company, and a subsidiary, DLE Life Insurance Company, also a Louisiana domiciled life insurance company (collectively referred to as “Mothe Life”). The effective date of the Coinsurance Agreement was November 1, 2012. Under the terms of the Coinsurance Agreement, Security National Life agreed to reinsure certain insurance policies of Mothe Life in exchange for the settlement amount of $34,485,000. In addition, the Coinsurance Agreement provides that effective November 1, 2012, Mothe Life ceded and transferred to Security National Life, and Security National Life accepted and coinsured all of Mothe Life’s contractual liabilities under the coinsured policies by means of indemnity reinsurance. On December 18, 2012, the Louisiana Department of Insurance approved the Coinsurance Agreement.

The Coinsurance Agreement further provides that on and after the effective date of November 1, 2012, Security National Life is entitled to exercise all contractual rights of Mothe Life under the coinsured policies in accordance with the terms and provisions of such policies. Moreover, after the closing date of December 19, 2012, the Company agreed to be responsible for all the contractual liabilities under the coinsured policies, including the administration of the coinsured policies at its sole expense in accordance with the terms and conditions of a Service Agreement between Security National Life and Mothe Life. Pursuant to the terms of the Coinsurance Agreement, Security National Life paid a ceding commission to Mothe Life in the amount of $4,684,000. As a result of the ceding commission, Mothe Life transferred $34,485,000 in assets and $39,169,000 in statutory reserves, or liabilities, to Security National Life.

Reinsurance with North America Life Insurance Company

On March 30, 2011, the Company, through its wholly owned subsidiary, Security National Life, completed a Coinsurance Agreement with North America Life Insurance Company (“North America Life”), a Texas domiciled insurance company. Under the terms of the Coinsurance Agreement, Security National Life agreed to reinsure certain insurance policies of North America Life in exchange for the settlement amount of $15,703,000. Effective as of December 1, 2010, North America Life ceded or transferred to Security National Life, and Security National Life accepted and coinsured all of North America Life’s contractual liabilities under the coinsured policies by means of indemnity reinsurance. The Coinsurance Agreement was approved by the Texas Department of Insurance.

The Coinsurance Agreement also provides that on and after the effective date of December 1, 2010, Security National Life is entitled to exercise all contractual rights of North America Life under the coinsured policies in accordance with the terms and provisions of such policies. Moreover, after the closing date of March 30, 2011, the Company agreed to be responsible for all the contractual liabilities under the coinsured policies, including the administration of the coinsured policies at its sole expense in accordance with the terms and conditions of a services agreement. Pursuant to the terms of the Coinsurance Agreement, Security National Life paid a ceding commission to North America Life in the amount of $3,526,000. In addition, North America Life transferred $15,703,000 in assets and $19,230,000 in statutory reserves, or liabilities net of due and deferred premiums, to Security National Life. The $15,703,000 in assets included $12,990,000 in cash, $9,000 in policy loans, and $2,704,000 in promissory notes secured by real estate properties located in Bexar, Liberty, Travis and Wilson Counties in the State of Texas. The promissory notes are also guaranteed by business entities and an individual.

On September 1, 2011 Security National Life with the approval of the Texas Department of Insurance assumed all of the policies that were issued by North America Life previously assumed and coinsured pursuant to the terms of the Coinsurance Agreement. Security National Life has assumed the same terms and conditions as set forth in each policy and certificates of assumptions were sent to all policyholders.

On May 2, 2012 as part of Stock Purchase Agreement with North America Life, as discussed in Note 19 of the Notes to Consolidated Statements, the Company recaptured the 47% of insurance in force that had previously been ceded by Trans-Western Life to North America Life.

Mortgage Loan Loss Settlements

The mortgage industry has seen potential loan losses increase. Future loan losses are extremely difficult to estimate, especially in the current market. However, management believes that the Company’s reserve methodology and its current practice of property preservation allow it to estimate its losses on loans sold. The amounts accrued for loan losses in years ended December 31, 2012 and 2011 were $4,053,000 and $1,668,000, respectively. The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2012 and 2011, the balances were $6,035,000 and $2,338,000, respectively.

Settlement with Wells Fargo

On April 7, 2011, SecurityNational Mortgage entered into a settlement agreement with Wells Fargo Funding, Inc. (“Wells Fargo”). The settlement agreement provides that it is intended to be a pragmatic commercial accommodation between SecurityNational Mortgage and Wells Fargo and is not to be construed as an admission of responsibility, liability or fault for either party’s claims. Under the terms of the settlement agreement, SecurityNational Mortgage paid an initial settlement amount to Wells Fargo in the amount of $4,300,000, of which $1,000,000 had already been paid to Wells Fargo in January 2011, leaving a balance of $3,300,000. The $3,300,000 balance was paid shortly after the parties executed the settlement agreement.

In addition, under the terms of the settlement agreement, Wells Fargo has the right to deduct 10 basis points (.0010) from the purchase proceeds of each loan that SecurityNational Mortgage sells to Wells Fargo during the period from April 8, 2011 to March 31, 2017. The amounts deducted by Wells Fargo for years ended December 31, 2012 and 2011 were $2,674,269 and $928,075, respectively, representing 10 basis points from the purchase proceeds of the loans that SecurityNational Mortgage sold to Wells Fargo during that period.

SecurityNational Mortgage is also required under the settlement agreement to set aside 10 basis points (.0010) during the period from April 8, 2011 to March 31, 2017 from the purchase proceeds of any loans that it sells to any mortgage loan purchaser other than Wells Fargo and pay such amounts to Wells Fargo. The amounts deducted by Wells Fargo for the years ended December 31, 2012 and 2011 were $617,740 and $80,554, respectively, representing 10 basis points from the purchase proceeds of the loans it sold to mortgage loan purchasers other than Wells Fargo during that period.

Finally, SecurityNational Mortgage is required under the settlement agreement to set aside 50% from the net proceeds that it receives from any sale, liquidation or other transfer of certain real estate properties that it owns, after subtracting taxes, commissions, recording fees and other transaction costs. These real estate properties consist of 27 real estate properties with a total book value of $5,404,900 as of December 31, 2012. Thus far, none of these real estate properties have been sold, liquidated or transferred.

In consideration for SecurityNational Mortgage making the initial settlement payment to Wells Fargo, Wells Fargo and related parties, including Wells Fargo Bank, released SecurityNational Mortgage and related parties, including the Company and Security National Life, from any claims, demands, damages, obligations, liabilities, or causes of action relating to residential mortgage loans that Wells Fargo purchased from SecurityNational Mortgage prior to December 31, 2009. Similarly, SecurityNational Mortgage released Wells Fargo and its related parties from any claims, demands, damages, obligations, liabilities, or causes of actions relating to residential mortgage loans that Wells Fargo purchased from SecurityNational Mortgage prior to December 31, 2009.

Mortgage Loan Loss Demands

Third Party Investors

There have been assertions in third party investor correspondence that SecurityNational Mortgage sold mortgage loans that allegedly contained misrepresentations or experienced early payment defaults, or that were otherwise allegedly defective or not in compliance with agreements between SecurityNational Mortgage and the third party investors consisting principally of financial institutions. As a result of these claims, third party investors have made demands that SecurityNational Mortgage repurchase certain alleged defective mortgage loans that were sold to such investors or indemnify them against any losses related to such loans.

As of December 31, 2012, third party investors had asserted total potential claims and notices of potential claims relating to mortgage loan repurchases, indemnifications and other issues that are substantially greater than $25,000,000. Additional potential claims and notices of potential claims from third party investors have been made since December 31, 2012. The Company has reserved and accrued $6,035,000 as of December 31, 2012 to settle all such investor related claims.

The total amount of potential claims and notices of potential claims are greater than the net asset value of SecurityNational Mortgage, which was $26,835,000 on December 31, 2012, and its reserve for mortgage loan loss, which was $6,035,000 on December 31, 2012. SecurityNational Mortgage disagrees with the claims and notices of potential claims asserted by third party investors against it and believes it has significant defenses to these claims. Any additional losses in excess of the current loan loss reserve cannot be estimated as SecurityNational Mortgage is currently in the process of reviewing repurchase demands and notices of potential claims from third party investors.

If SecurityNational Mortgage is unable to resolve demands by the third party investors on acceptable terms, legal action may ensue in an effort to obtain amounts that the third party investors claim are allegedly due. In the event of legal action, if SecurityNational Mortgage is not successful in its defenses against claims asserted by these third party investors to the extent that a substantial judgment is entered against SecurityNational Mortgage which is beyond its capacity to pay, SecurityNational Mortgage may be required to curtail or cease operations.

JP Morgan Chase Indemnification Demand

The Company and its wholly-owned subsidiary, SecurityNational Mortgage, received a notice of claim for indemnification dated December 21, 2011 relating to mortgage loans that EMC Mortgage, LLC (“EMC Mortgage”) allegedly purchased as a third party investor from SecurityNational Mortgage. The notice was from JP Morgan Chase & Co. (“JP Morgan Chase”) on behalf of EMC Mortgage. According to the notice, the alleged indemnification claim relates to mortgage loans that SecurityNational Mortgage sold to EMC Mortgage under a Mortgage Loan Purchase Agreement, dated December 5, 2005, between SecurityNational Mortgage and EMC. The notice also referenced an Agreement of Guaranty, dated February 23, 2006, by the Company relative to EMC Mortgage. The notice states that EMC Mortgage allegedly purchased mortgage loans from SecurityNational Mortgage, which were later securitized by means of mortgage pass-through certificates.

The notice of indemnification claim from JP Morgan Chase also states that EMC Mortgage has been named in a lawsuit by the Bear Stearns Mortgage Funding Trust 2007-AR2 (the “Trust”), which was filed on September 13, 2011 in the Delaware Court of Chancery. A copy of the complaint and the amended complaint was provided to the Company by JP Morgan Chase. The amended complaint contends that more than 800 residential mortgage loans that EMC Mortgage sold to the Trust contained breaches of representations and warranties concerning the mortgage loans. The amended complaint also contends that despite EMC Mortgage’s assurance to the Trust that the mortgage loans met certain minimum quality standards, there have been defaults and foreclosures in many of such loans. As a result of the alleged defaults and foreclosures, the amended complaint asserts that EMC Mortgage is required to repurchase from the Trust any loans in which it breached its representations and warranties, in the amount of the mortgage loans’ outstanding principal balance and all accrued but unpaid interest.

The notice from JP Morgan Chase further states that the Company and SecurityNational Mortgage are required to indemnify EMC Mortgage for any losses arising from the lawsuit against EMC based upon alleged untrue statements of material fact related to information that was provided by SecurityNational Mortgage. The amended complaint includes the loan numbers of the alleged non-complying mortgage loans that EMC Mortgage sold to the Trust. In a letter dated February 7, 2012 from JP Morgan Chase accompanying a copy of the amended complaint, JP Morgan Chase asserted that 21 mortgage loans originated by SecurityNational Mortgage were included in the lawsuit as part of the alleged non-complying mortgage loans that EMC allegedly sold to the Trust. Thus, it appears that only a very small percentage of the alleged non-complying mortgage loans that EMC Mortgage sold to the Trust were mortgage loans that SecurityNational Mortgage had sold to EMC.

Moreover, to the extent the claims by the Trust against EMC Mortgage relate to mortgage loans that SecurityNational Mortgage sold to EMC, the Company believes it has defenses to such claims with respect to EMC. For example, neither the Company nor SecurityNational Mortgage is a party to any agreement involving the Trust, nor are they privy to any agreements between EMC Mortgage and the Trust. The Company intends to vigorously defend itself and SecurityNational Mortgage in the event that JP Morgan Chase were to bring any legal action to require the Company or SecurityNational Mortgage to indemnify it for any loss, liability or expense in connection with the lawsuit that the Trust has brought against EMC Mortgage.

Mortgage Loan Loss Litigation

Lehman Brothers - Aurora Loan Services Litigation

On April 15, 2005, SecurityNational Mortgage entered into a loan purchase agreement with Lehman Brothers Bank, FSB (“Lehman Bank”). Under the terms of the loan purchase agreement, Lehman Bank agreed to purchase mortgage loans from time to time from SecurityNational Mortgage. During 2007, Lehman Bank and its wholly owned subsidiary, Aurora Loan Services LLC (“Aurora Loan Services”), purchased a total of 1,490 mortgage loans in the aggregate amount of $352,774,000 from SecurityNational Mortgage. Lehman Bank asserted that certain of the mortgage loans that it purchased from SecurityNational Mortgage during 2007 contained alleged misrepresentations and early payment defaults. As a result of these alleged breaches in the mortgage loans, Lehman Bank contended it had the right to require SecurityNational Mortgage to repurchase certain loans or be liable for losses related to such loans under the loan purchase agreement. SecurityNational Mortgage disagrees with these claims.

On December 17, 2007, SecurityNational Mortgage entered into an Indemnification Agreement with Lehman Bank and Aurora Loan Services. Under the terms of the Indemnification Agreement, SecurityNational Mortgage agreed to indemnify Lehman Bank and Aurora Loan Services for 75% of all losses that Lehman Bank and Aurora Loan Services may incur relative to breaches by mortgagors pertaining to 54 mortgage loans that were purchased from SecurityNational Mortgage. SecurityNational Mortgage was released from any obligation to pay the remaining 25% of such losses. The Indemnification Agreement also required SecurityNational Mortgage to indemnify Lehman Bank and Aurora Loan Services for 100% of any future losses incurred on mortgage loans with breaches that were not among the 54 mortgage loans.

Pursuant to the Indemnification Agreement, SecurityNational Mortgage paid $395,000 to Aurora Loan Services as a deposit into a reserve account, to secure any obligations of SecurityNational Mortgage under the Indemnification Agreement. This deposit was in addition to a $250,000 deposit that SecurityNational Mortgage previously made into the reserve account for a total of $645,000. Losses from mortgage loans with alleged breaches were payable from the reserve account. However, Lehman Bank and Aurora Loan Services were not to apply any funds from the reserve account to a particular mortgage loan until an actual loss had occurred. Under the Indemnification Agreement SecurityNational Mortgage was to pay to Aurora Loan Services each calendar month the difference between the reserve account balance and $645,000, but in no event would SecurityNational Mortgage be required to make payments into the reserve account in excess of $125,000 for any calendar month.

Since the reserve account was established, funds had been paid from the account to indemnify $4,281,000 in alleged losses from 31 mortgage loans that were among 54 mortgage loans with alleged breaches that were covered by the Indemnification Agreement and ten other mortgage loans with alleged breaches. In the last monthly billing statement dated April 24, 2011 to SecurityNational Mortgage, Lehman Brothers Holdings Inc. (“Lehman Holdings”) claimed that SecurityNational Mortgage owed approximately $3,745,000 for mortgage loan losses under the Indemnification Agreement.

During 2010 and 2011, the Company recognized alleged losses of $1,289,000 and $-0-, respectively. However, management cannot fully determine the total losses because there may be potential claims for losses that have not yet been determined. As of December 31, 2012, the Company had not accrued for any losses under the Indemnification Agreement. SecurityNational Mortgage was involved in discussions with Lehman Bank and Lehman Holdings concerning issues under the Indemnification Agreement. During the discussion period, monthly payments for December 2010 and January, February, March and April of 2011 totaling $625,000 were abated or deferred.

On May 11, 2011, SecurityNational Mortgage filed a complaint against Aurora Bank FSB, formerly known as Lehman Bank, and Aurora Loan Services in the United States District Court for the District of Utah because it had been unable to resolve certain issues under the Indemnification Agreement. The complaint alleges, among other things, material breach of the Indemnification Agreement, including a claim that neither Lehman Bank nor Aurora Loan Services owned mortgage loans sold by SecurityNational to justify the amount of payments demanded from, and made by SecurityNational Mortgage. As a result, SecurityNational Mortgage claims it is entitled to judgment of approximately $4,000,000 against Lehman Bank, as well as Aurora Loan Services to the extent of its involvement and complicity with Lehman Bank. The complaint also alleges a second claim for material breach of a section of the Indemnification Agreement that contains an alleged “sunset” provision and that the amount of the requested payments made was not justified under the “sunset” provision.

On June 8, 2011, Lehman Holdings, which had filed for bankruptcy in September 2008, filed a complaint against SecurityNational Mortgage in the United States District Court for the District of Utah. A Lehman Holdings’ subsidiary owns Lehman Bank. The complaint alleges that SecurityNational Mortgage sold loans to Lehman Bank, which were then sold to Lehman Holdings. The complaint additionally alleges that Lehman Bank and Aurora Loan Services assigned their rights and remedies under the loan purchase agreement, as well as the Indemnification Agreement to Lehman Holdings, which latter assignment purportedly took place on March 28, 2011. Lehman Holdings declared in a letter dated June 2, 2011 that the Indemnification Agreement was null and void, which is disputed by SecurityNational Mortgage.

Lehman Holdings’ alleged claims are for damages for breach of contract and breach of warranty pursuant to a loan purchase agreement and Seller’s Guide. Based on claiming that the Indemnification Agreement is null and void pursuant to its lawsuit, Lehman Holdings has initially claimed damages in excess of $5,000,000. Prior to declaring the Indemnification Agreement null and void, Lehman Holdings claimed in a then recent billing statement under the terms of the Indemnification Agreement, that SecurityNational Mortgage owed approximately $3,745,000 for mortgage loan losses under the Indemnification Agreement. SecurityNational Mortgage strongly disagrees with the position of Lehman Holdings and, as set forth in its May 11, 2011 complaint, seeks affirmative relief of approximately $4,000,000 from Lehman Bank and Aurora Loan Services, which are related to Lehman Holdings.

On September 4, 2012, SecurityNational Mortgage filed a motion for summary judgment in its action against Lehman Bank and Aurora Loan Services on certain material issues, as well as against Lehman Holdings regarding its claims against SecurityNational Mortgage. Lehman Bank and Aurora Loan Services filed a cross motion for summary judgment as to the issues in SecurityNational Mortgage’s motion and, in the Lehman Holdings case, Lehman Holdings has requested that the Court allow a cross motion on the issues which are the subject of SecurityNational Mortgage’s September 4, 2012 motion. The cases are before two different federal judges.

On February 27, 2013, SecurityNational Mortgage’s motion for summary judgment against Lehman Bank and Aurora Loan Services and the related cross motion were heard by Judge David Nuffer of the United States District Court for the District of Utah. After an extensive hearing, Judge Nuffer requested that the parties prepare findings of fact in accordance with the Court’s earlier promulgated findings as modified at the hearing, and that each party submit proposed conclusions of law related to the motions. Judge Nuffer also said that he may request a further hearing on the matter. SecurityNational Mortgage’s motion in the Lehman Holdings case is presently set for hearing on May 30, 2013 before Judge Ted Stewart of the United States District Court for the District of Utah.

Non-Cancelable Leases

The Company leases office space and equipment under various non-cancelable agreements, with remaining terms up to five years. Minimum lease payments under these non-cancelable operating leases as of December 31, 2012, are approximately as follows:

Years Ending
December 31
2013	$	2,242,899
2014		1,756,656
2015		1,224,330
2016		1,032,881
2017		944,135
Total	$	7,200,901

Total rent expense related to non-cancelable operating leases for the years ended December 31, 2012, 2011, and 2010 was approximately $3,425,000, $2,595,000, and $2,086,000, respectively.

Other Contingencies and Commitments

The Company has entered into commitments to fund new residential construction loans. As of December 31, 2012, the Company’s commitments were $3,592,513 for these loans of which $3,161,112 had been funded. The Company will advance funds once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees from the borrowers and the interest rate is generally 2% to 6.75% over the bank prime rate (3.25% as of December 31, 2012). Maturities range between six and twelve months.

At December 31, 2012, SecurityNational Mortgage was contingently liable under a standby letter of credit aggregating $1,250,000, to be used as collateral to cover any contingency relating to claims filed in states where SecurityNational Mortgage is licensed. SecurityNational Mortgage does not expect any material losses to result from the issuance of the standby letter of credit. Accordingly, the estimated fair value of these instruments is zero.

At December 31, 2012, the Company was contingently liable under a standby letter of credit aggregating $458,224, to be used as collateral to cover any contingency related to additional risk assessments pertaining to the Company's self-insurance casualty program. The Company does not expect any material losses to result from the issuance of the standby letter of credit because claims are not expected to exceed premiums paid. Accordingly, the estimated fair value of these instruments is zero.

The Company is self-insured for certain casualty insurance, worker compensation and liability programs. Self-Insurance reserves are maintained relative to these programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party administrators and actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occurs and exceed these estimates, additional reserves may be required. The estimation process contains uncertainty since management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. At December 31, 2012, $589,661 of reserves was established related to such insurance programs versus $623,135 at December 31, 2011.

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

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

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
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+ Details

Note 10: Retirement Plans

12 Months Ended

Dec. 31, 2012

Notes

Note 10: Retirement Plans

10) Retirement Plans

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

The Company’s contributions are allocated to eligible employees based on the ratio of each eligible employee’s compensation to total compensation for all eligible employees during each year. The Company did not make any contributions for 2012, 2011 and 2010. At December 31, 2012 the ESOP held 599,250 shares of Class A and 2,294,549 shares of Class C common stock of the Company. All shares held by the ESOP have been allocated to the participating employees and all shares held by the ESOP are considered outstanding for purposes of computing earnings per share.

The Company has three 401(k) savings plans covering all eligible employees, as defined above, which includes employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plans allow participants to make pretax contributions up to a maximum of 17,000, $16,500 and $16,500 for the years 2012, 2011 and 2010, respectively or the statutory limits.

Beginning January 1, 2008, the Company elected to be a “Safe Harbor” Plan for its matching 401(k) contributions. The Company matched 100% of up to 3% of an employee’s total annual compensation and matched 50% of 4% to 5% of an employee’s annual compensation. The match was in Company Stock. The Company’s contribution for 2012, 2011 and 2010 was 222,719, $208,206 and $344,772, respectively under the “Safe Harbor” plan.

In 2001, the Company’s Board of Directors adopted a Deferred Compensation Plan. Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan. The Company may contribute into the plan at the discretion of the Company’s Board of Directors. The Company did not make any contributions for 2012, 2011 and 2010.

The Company has a deferred compensation agreement with its past Chief Executive Officer. The deferred compensation is payable on the retirement or death of this individual either in annual installments over 10 years or in a lump sum settlement, if approved by the Board of Directors. The amount payable is $60,000 per year with cost of living adjustments each anniversary. The compensation agreement also provides that any remaining balance will be payable to his heirs in the event of his death. In addition, the agreement provides that the Company will pay the Group Health coverage for this individual and/or his spouse. In 2012, the Company decreased its liability for these future obligations by $1,349 and in 2011 decreased its liability by $57,125. The current balance as of December 31, 2012 is $598,426.

On July 16, 2004, the Company entered into an employment agreement with Scott M. Quist, its Chairman of the Board, President and Chief Executive Officer. The agreement is effective as of December 4, 2003 and has a five-year term, but the Company has agreed to renew the agreement on December 4, 2008 and 2013 for additional five-year terms, provided Mr. Quist performs his duties with usual and customary care and diligence. Under the terms of the agreement, Mr. Quist is to devote his full time to the Company serving as its Chairman of the Board, President, and Chief Executive Officer at not less than his current salary and benefits. The Company also agrees to maintain a group term life insurance policy of not less than $1,000,000 on Mr. Quist’s life and a whole life insurance policy in the amount of $500,000 on Mr. Quist’s life. In the event of disability, Mr. Quist’s salary would be continued for up to five years at 75% of its current level.

In the event of a sale or merger of the Company and Mr. Quist is not retained in his current position, the Company would be obligated to continue Mr. Quist’s current compensation and benefits for seven years following the merger or sale. The agreement further provides that Mr. Quist is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 65), (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of twenty years in annual installments in the amount equal to 75% of his then current rate of compensation. However, in the event that Mr. Quist dies prior to receiving all retirement benefits there under, the remaining benefits are to be paid to his heirs. The Company expensed 87,467 and $145,036 in fiscal 2012 and 2011, respectively, to cover the present value of anticipated retirement benefits under the employment agreement. The liability accrued is $1,173,242 and $1,121,162 as of December 31, 2012 and 2011, respectively.

On December 4, 2003, the Company, through its subsidiary SecurityNational Mortgage Company, entered into an employment agreement with J. Lynn Beckstead, Jr., Vice President of Mortgage Operations and President of SecurityNational Mortgage Company. The agreement has a five-year term, but the Company has agreed to renew the agreement on December 4, 2008 and 2013 for additional five-year terms, provided Mr. Beckstead performs his duties with usual and customary care and diligence. Under the terms of the agreement, Mr. Beckstead is to devote his full time to the Company serving as President of SecurityNational Mortgage Company at not less than his current salary and benefits, and to include $350,000 of life insurance protection. In the event of disability, Mr. Beckstead’s salary would be continued for up to five years at 50% of its current level.

In the event of a sale or merger of the Company and Mr. Beckstead is not retained in his current position, the Company would be obligated to continue Mr. Beckstead’s current compensation and benefits for five years following the merger or sale. The agreement further provides that Mr. Beckstead is entitled to receive annual retirement benefits beginning (i) one month from the date of his retirement (to commence no sooner than age 62½) (ii) five years following complete disability, or (iii) upon termination of his employment without cause. These retirement benefits are to be paid for a period of ten years in annual installments in the amount equal to one-half of his then current annual salary. However, in the event that Mr. Beckstead dies prior to receiving all retirement benefits there under, the remaining benefits are to be paid to his heirs. The Company expensed $44,533 and $58,964 in fiscal 2012 and 2011, respectively, to cover the present value of the retirement benefit of the agreement. The liability accrued is $613,403 and $533,483, as of December 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 11: Capital Stock

12 Months Ended

Dec. 31, 2012

Notes

Note 11: Capital Stock

11)Capital Stock

The Company has two classes of common stock with shares outstanding, Class A and Class C. Class C shares vote share for share with the Class A shares on all matters except election of one third of the directors who are elected solely by the Class A shares, but generally are entitled to a lower dividend participation rate. Class C shares are convertible into Class A shares at any time on a ten to one ratio. The decrease in treasury stock was the result of treasury stock being used to fund the company’s 401-K and Deferred Compensation Plans.

Stockholders of both classes of common stock have received 5% stock dividends in the years 1990 through 2012, as authorized by the Company’s Board of Directors.

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

The following table summarizes the activity in shares of capital stock for the three-year period ended December 31, 2012:

	Class A	Class C
Balance at December 31, 2009	8,730,227	9,214,211

Exercise of stock options	10,174	-
Stock dividends	437,138	460,005
Conversion of Class C to Class A	1,406	(14,064)

Balance at December 31, 2010	9,178,945	9,660,152

Exercise of stock options	-	-
Stock dividends	459,168	482,675
Conversion of Class C to Class A	685	(6,851)

Balance at December 31, 2011	9,638,798	10,135,976

Exercise of stock options	685,753	318,912
Stock dividends	518,702	522,440
Conversion of Class C to Class A	323	(3,227)

Balance at December 31, 2012	10,843,576	10,974,101

Earnings per share amounts have been retroactively adjusted for the effect of annual stock dividends. In accordance with accounting principles generally accepted in the United States of America, the basic and diluted earnings per share amounts were calculated as follows:

	2012	2011	2010
Numerator:
Net earnings (loss)	$ 16,712,518	$ 1,298,758	$ (430,624)

Denominator:
Denominator for basic earnings
per share-weighted-average shares	10,134,728	9,893,962	9,688,067

Effect of dilutive securities
Employee stock options	543,566	107,947	-
Dilutive potential common shares	543,566	107,947	-

Denominator for diluted earnings (loss)
per share-adjusted weighted-average
shares and assumed conversions	10,678,294	10,001,909	9,688,067

Basic earnings (loss) per share	$1.65	$0.13	($0.04)
Diluted earnings (loss) per share	$1.57	$0.13	($0.04)

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 4
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Topic 310
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-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 2
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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-Number 210
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-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Note 12: Stock Compensation Plans

12 Months Ended

Dec. 31, 2012

Notes

Note 12: Stock Compensation Plans

12) Stock Compensation Plans

The Company has four fixed option plans (the “1993 Plan,” the “2000 Plan”, the “2003 Plan” and the “2006 Plan”). Compensation expense for options issued of $251,031, $253,934 and $520,457 has been recognized under these plans for 2012, 2011 and 2010, respectively.

The weighted-average fair value of each option granted in 2012 under the 2006 Plan, is estimated at $3.18 for the December 7, 2012 options as of the grant date using the Black Scholes Option Pricing Model with the following weighted-average assumptions: dividend yield of 5%, volatility of 73.89%, risk-free interest rate of 0.70%, and an expected term of 5.31 years.

The weighted-average fair value of each option granted in 2012 under the 2003 Plan and the 2006 Plan, is estimated at $0.64 and $0.66, respectively for the April 13, 2012 options as of the grant date using the Black Scholes Option Pricing Model with the following weighted-average assumptions: dividend yield of 5% and 5%, volatility of 70.26% and 72.58%, risk-free interest rate of 0.84% and 1.04%, and an expected term of 4.53 to 5.32 years, respectively.

The weighted-average fair value of each option granted in 2011 under the 2003 Plan and the 2006 Plan, is estimated at $0.52 and $0.71 for the December 2, 2011 options as of the grant date using the Black Scholes Option Pricing Model with the following assumptions: dividend yield of 5%, volatility of 59%, risk-free interest rate of 3.4%, and an expected life of five to ten years.

The weighted-average fair value of each option granted during 2010 under the 2003 Plan and the 2006 Plan, is estimated at $0.77 and $0.71 for the December 3, 2010 options as of the grant date using the Black Scholes Option Pricing Model with the following assumptions: dividend yield of 5%, volatility of 65%, risk-free interest rate of 3.4%, and an expected life of five to ten years.

The Company generally estimates the expected life of the options based upon the contractual term of the options adjusted for actual experience. Future volatility is estimated based upon the weighted historical volatility of the Company’s Class A common stock and three peer company stocks over a period equal to the estimated life of the options. Common stock issued upon exercise of stock options are generally new share issuances rather than from treasury shares.

Description and activity for each Plan is summarized as follows:

1993 Stock Incentive Plan

On June 21, 1993, the Company adopted the Security National Financial Corporation 1993 Stock Incentive Plan (the “1993 Plan”), which reserved 300,000 shares of Class A Common Stock for issuance there under. The 1993 Plan allows the Company to grant options and issue shares as a means of providing equity incentives to key personnel, giving them a proprietary interest in the Company and its success and progress.

The 1993 Plan provides for the grant of options and the award or sale of stock to officers, directors, and employees of the Company. Both “incentive stock options,” as defined under Section 422A of the Internal Revenue Code of 1986 (the “Code”), and “non-qualified options” may be granted pursuant to the 1993 Plan. Options intended as incentive stock options may be issued only to employees, and must meet certain conditions imposed by the Code, including a requirement that the option exercise price be not less than the fair market value of the option shares on the date of grant. The 1993 Plan provides that the exercise price for non qualified options will be not less than at least 50% of the fair market value of the stock subject to such option as of the date of grant of such options, as determined by the Company’s Board of Directors.

The options were granted to reward certain officers and key employees who have been employed by the Company for a number of years and to help the Company retain these officers and key employees by providing them with an additional incentive to contribute to the success of the Company.

The 1993 Plan is administered by the Board of Directors or by a committee designated by the Board. The options shall be either fully exercisable on the grant date or shall become exercisable thereafter in such installments as the Board or the committee may specify. The 1993 Plan provides that if the shares of Common Stock shall be

subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of options shall be increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend. No options may be exercised for a term of more than ten years from the date of grant.

On November 7, 1996, the Company amended the Plan as follows: (i) to increase the number of shares of Class A Common Stock reserved for issuance under the plan from 300,000 Class A shares to 600,000 Class A shares; and (ii) to provide that the stock subject to options, awards and purchases may include Class C Common Stock.

On October 14, 1999, the Company amended the 1993 Plan to increase the number of shares of Class A Common Stock reserved for issuance under the plan from 600,000 Class A shares to 1,046,126 Class A shares. The Plan had a term of ten years and was terminated in 2003 and options granted there under are non-transferable.

Activity of the 1993 Plan is summarized as follows:
	Number of Class A Shares		Option Price
Outstanding at December 31, 2009		291,950	$1.54 - $4.19
Adjustment for the effect of stock dividends		14,598
Exercised		-
Cancelled		-

Outstanding at December 31, 2010		306,548	$1.47 - $3.99
Adjustment for the effect of stock dividends		14,228
Exercised		-
Cancelled		(21,990)

Outstanding at December 31, 2011		298,786	$2.62 - $3.80
Adjustment for the effect of stock dividends		582
Exercised		(238,755)
Cancelled		(17,368)

Outstanding at December 31, 2012		43,245	$3.61 - $3.80

Exercisable at end of year		43,245	$3.61 - $3.80

Available options for future grant
1993 Stock Incentive Plan		-0-

Weighted average contractual term of options
outstanding at December 31, 2012		.22 years

Aggregated intrinsic value of options outstanding
at December 31, 2012		$199,519

2000 Director Stock Option Plan

On October 16, 2000, the Company adopted the Security National Financial Corporation 2000 Director Stock Option Plan (the “2000 Plan”), which reserved 50,000 shares of Class A Common Stock for issuance there under. Effective November 1, 2000, and on each anniversary date thereof during the term of the 2000 Plan, each outside Director who shall first join the Board after the effective date shall be granted an option to purchase 1,000 shares upon the date which such person first becomes an outside Director and an annual grant of an option to purchase 1,000 shares on each anniversary date thereof during the term of the 2000 Plan. The options granted to outside Directors shall vest in their entirety on the first anniversary date of the grant.

The primary purposes of the 2000 Plan are to enhance the Company’s ability to attract and retain well-qualified persons for service as directors and to provide incentives to such directors to continue their association with the Company.

The 2000 Plan provides that if the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of options shall be increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivisions, combination or stock dividend.

The 2000 Plan terminated in 2006 and options granted are non-transferable. Options granted and outstanding under the 2000 Plan include Stock Appreciation Rights which permit the holder of the option to elect to receive cash, amounting to the difference between the option price and the fair market value of the stock at the time of the exercise, or a lesser amount of stock without payment, upon exercise of the option.

Activity of the 2000 Plan is summarized as follows:
	Number of
	Class A Shares		Option Price
Outstanding at December 31, 2009		5,104	$2.45
Adjustment for the effect of stock dividends		-
Granted		-
Cancelled		(5,104)
Outstanding at December 31, 2010		-

Adjustment for the effect of stock dividends		-
Granted		-
Cancelled		-
Outstanding at December 31, 2011		-
Exercisable at end of year		-

Available options for future
grant 2000 Director Plan		-0-

Weighted average contractual term of options
outstanding at December 31, 2012		0

Aggregated intrinsic value of options outstanding
at December 31, 2012		$ -0-

2003 Stock Option Plan

On July 11, 2003, the Company adopted the Security National Financial Corporation 2003 Stock Option Plan (the “2003 Plan”), which reserved 500,000 shares of Class A Common Stock and 1,000,000 shares of Class C Common Stock for issuance there under.

On July 13, 2007, the Company amended the 2003 Plan to authorize an additional 400,000 shares of Class A Common Stock and an additional 1,000,000 shares of Class C common stock to be made available for issuance under the Plan. On July 10, 2009 the Company amended the 2003 Plan to authorize an additional 500,000 shares of Class A common stock and an additional 1,000,000 share of Class C common stock to be made available for issuance under the Plan. On July 9, 2010 the Company amended the 2003 Plan authorizing an additional 500,000 shares of Class A common stock and an additional 1,000,000 shares of Class C common stock to be made available for issuance under the Plan. On July 8, 2011 the Company amended the 2003 Plan authorizing an additional 400,000 shares of Class A common stock and an additional 1,000,000 shares of Class C common stock to be made available for issuance under the Plan. On July 6, 2012 the Company amended the 2003 Plan authorizing an additional 250,000 shares of Class A common stock and an additional 2,000,000 shares of Class C common stock to be made available for issuance under the Plan. The 2003 Plan allows the Company to grant options and issue shares as a means of providing equity incentives to key personnel, giving them a proprietary interest in the Company and its success and progress.

The 2003 Plan provides for the grant of options and the award or sale of stock to officers, directors, and employees of the Company. Both “incentive stock options”, as defined under Section 422A of the Internal Revenue Code of 1986 (the “Code”) and “non-qualified options” may be granted under the 2003 Plan.

The 2003 Plan is to be administered by the Board of Directors or by a committee designated by the Board. The terms of options granted or stock awards or sales affected under the 2003 Plan are to be determined by the Board of Directors or its committee. No options may be exercised for a term of more than ten years from the date of the grant. Options intended as incentive stock options may be issued only to employees, and must meet certain conditions imposed by the Internal Revenue Code, including a requirement that the option exercise price be no less than the fair market value of the option shares on the date of grant. The 2003 Plan provides that the exercise price for non-qualified options will not be less than at least 50% of the fair market value of the stock subject to such option as of the date of grant of such options, as determined by the Company’s Board of Directors.

The 2003 Plan has a term of ten years. The Board of Directors may amend or terminate the 2003 Plan at any time, from time to time, subject to approval of certain modifications to the 2003 Plan by the shareholders of the Company as may be required by law or the 2003 Plan.

Activity of the 2003 Plan is summarized as follows:

	Number of Class A Shares		Number of Class C Shares(1)		Option Price(1)

Outstanding at December 31, 2009		1,007,971		2,274,624	$1.36 - $3.84
Adjustment for the effect of stock dividends		56,598		163,731
Granted		221,600		1,000,000
Exercised		(97,609)		-
Cancelled		-		-

Outstanding at December 31, 2010		1,188,560		3,438,355	$1.30 - $3.66
Adjustment for the effect of stock dividends		74,596		171,920
Granted		322,500		-
Exercised		-		-
Cancelled		(19,135)		-

Outstanding at December 31, 2011		1,566,521		3,610,275	$1.23 - $3.48
Adjustment for the effect of stock dividends		35,948		245,145
Granted		322,000		-
Exercised		(794,144)		(525,000)
Cancelled		(105,766)		-
Reclass from A to C		(250,808)		2,508,085

Outstanding at December 31, 2012		773,751		5,838,505	$1.17 - $3.31
					0
Exercisable at end of year		658,510		5,838,505	$1.17 - $3.31

Available options for future grant
2003 Stock Incentive Plan		1,443,579		782,924

Weighted average contractual term of options
outstanding at December 31, 2012		4.50 years		2.03 years

Aggregated intrinsic value of options
outstanding at December 31, 2012		$4,948,223		$3,598,618

(1) Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Option Price is based on Class A Common shares.

2006 Director Stock Option Plan

On December 7, 2006, the Company adopted the 2006 Director Stock Option Plan (the “Director Plan”) effective December 7, 2006. The Director Plan provides for the grant by the Company of options to purchase up to an aggregate of 100,000 shares of Class A Common Stock for issuance there under and adjusted for stock dividends if any. The Director Plan provides that each member of the Company’s Board of Directors who is not an employee or paid consultant of the Company automatically is eligible to receive options to purchase the Company’s Class A Common Stock under the Director Plan. On July 6, 2012 the Company amended the Director Plan authorizing an additional 50,000 shares of Class A common stock to be made available for issuance under the Plan.

Effective as of December 7, 2006, and on each anniversary date thereof during the term of the Director Plan, each outside director shall automatically receive an option to purchase 1,000 shares of Class A Common Stock. In addition, each new outside director who shall first join the Board after the effective date shall be granted an option to purchase 1,000 shares upon the date which such person first becomes an outside director and an annual grant of an option to purchase 1,000 shares on each anniversary date thereof during the term of the Director Plan. The options granted to outside directors shall vest in four equal quarterly installments over a one year period from the date of grant, until such shares are fully vested. The primary purposes of the Director Plan are to enhance the Company’s ability to attract and retain well-qualified persons for service as directors and to provide incentives to such directors to continue their association with the Company.

In the event of a merger of the Company with or into another company, or a consolidation, acquisition of stock or assets or other change in control transaction involving the Company, each option becomes exercisable in full, unless such option is assumed by the successor corporation. In the event the transaction is not approved by a majority of the “Continuing Directors” (as defined in the Director Plan), each option becomes fully vested and exercisable in full immediately prior to the consummation of such transaction, whether or not assumed by the successor corporation.

Activity of the 2006 Plan is summarized as follows:

	Number of
	Class A Shares		Option Price
Outstanding at December 31, 2009		72,178	$1.28 - $4.37
Granted		24,000
Adjustment for the effect of stock dividends		4,809

Outstanding at December 31, 2010		100,987	$1.22 - $4.16
Granted		24,000
Adjustment for the effect of stock dividends		6,249

Outstanding at December 31, 2011		131,236	$1.16 - $3.96
Granted		25,000
Exercised		(8,377)
Adjustment for the effect of stock dividends		7,398

Outstanding at December 31, 2012		155,257	$1.10 - $7.05

Exercisable at end of year		139,507

Available options for future grant
2006 Stock Incentive Plan		29,214

Weighted average contractual term of options
outstanding at December 31, 2012	7.40 years

Aggregated intrinsic value of options
outstanding at December 31, 2012		$971,058

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

13) Statutory Financial Information and Dividend Limitations

12 Months Ended

Dec. 31, 2012

Notes

13) Statutory Financial Information and Dividend Limitations

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

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

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

	Net Income			Capital and Surplus
	2012	2011	2010	2012	2011
Amounts by insurance subsidiary:
Security National Life Insurance Company	$391,533	$(34,795)	$1,050,328	$29,828,732	$24,257,274

Memorial Insurance Company of America	159	(1,994)	22,274	1,084,067	1,084,635

Southern Security Life Insurance Company, Inc.	184	971	2,667	1,583,524	1,581,199

Trans-Western Life Insurance Company	2,113	-	-	495,972	-

Total	$393,989	$(35,818)	$1,075,269	$32,992,295	$26,923,108

The Utah, Arkansas, Mississippi and Texas Insurance Departments impose minimum risk-based capital requirements (“RBC”) that were developed by the NAIC on insurance enterprises. The formulas for determining the RBC specify various factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio (the “Ratio”) of the enterprise’s regulatory total adjusted capital, as defined by the NAIC, to its authorized control level, as defined by the NAIC. Enterprises below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The life insurance subsidiaries have a combined weighted Ratio that is greater than the first level of regulatory action as of December 31, 2012.

Generally, the net assets of the life insurance subsidiaries available for transfer to the Company are limited to the amounts of the life insurance subsidiaries net assets, as determined in accordance with statutory accounting practices, which were $32,992,295 at December 31, 2012, exceed minimum statutory capital requirements; however, payments of such amounts as dividends are subject to approval by regulatory authorities.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.23(c))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 60
-Paragraph 60
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-5
-Paragraph 8, 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 14: Business Segment Information

12 Months Ended

Dec. 31, 2012

Notes

Note 14: Business Segment Information

14) Business Segment Information

Description of Products and Services by Segment

The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage loan segment consists of loan originations fee income and expenses from the originations of residential and commercial mortgage loans and interest earned and interest expenses from warehousing pre-sold loans before the funds are received from financial institutional investors.

Measurement of Segment Profit or Loss and Segment Assets

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

Factors Management Used to Identify the Enterprise’s Reportable Segments

The Company’s reportable segments are business units that offer different products and are managed separately due to the different products and the need to report to the various regulatory jurisdictions.

	2012
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$48,216,327	$10,864,497	$150,553,261	$-	$209,634,085
Net investment income	17,951,118	333,625	4,965,411	-	23,250,154
Realized gains (losses) on
investments and other assets	1,415,556	8,954	-	-	1,424,510
Other than temporary impairments	(1,207,632)	-	-	-	(1,207,632)
Other revenues	482,325	136,189	540,538	-	1,159,052
Intersegment revenues:
Net investment income	7,570,979	1,435,891	294,980	(9,301,850)	-
Total revenues	74,428,673	12,779,156	156,354,190	(9,301,850)	234,260,169
Expenses:
Death and other policy benefits	24,246,088	-	-	-	24,246,088
Increase in future policy benefits	21,435,191	-	-	-	21,435,191
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	5,137,586	311,843	-	-	5,449,429
Depreciation	315,960	426,006	516,131	-	1,258,097
General, administrative and
other costs:
Intersegment	24,000	102,726	137,696	(264,422)	-
Provision for loan losses	-	-	4,239,418	-	4,239,418
Costs related to funding mortgage
loans	-	-	6,931,045	-	6,931,045
Other	17,824,800	9,582,499	118,198,014	2	145,605,315
Interest expense:
Intersegment	694,442	1,681,987	6,661,001	(9,037,430)	-
Other	159,659	455,449	3,129,185	-	3,744,293
Total benefits and expenses	69,837,726	12,560,510	139,812,490	(9,301,850)	212,908,876
Earnings (losses) before income taxes	$4,590,947	$218,646	$16,541,700	$-	$21,351,293
Income tax (expense) benefit	1,755,258	-	(6,394,033)	-	(4,638,775)
Net earnings (losses)	$6,346,205	$218,646	$10,147,667	$-	$16,712,518

Identifiable assets	$558,845,424	$116,368,747	$55,613,678	$(133,611,226)	$597,216,623

Goodwill	$391,848	$285,191	$-	$-	$677,039

Expenditures for long-lived assets	$400,605	$689,154	$2,131,861	$-	$3,221,620

	2011
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$48,457,405	$10,761,469	$77,605,105	$-	$136,823,979
Net investment income	17,295,982	159,186	2,555,536	-	20,010,704
Realized gains (losses) on
investments and other assets	1,596,127	868,226	-	-	2,464,353
Other than temporary impairments	(840,735)	-	-	-	(840,735)
Other revenues	712,400	147,830	248,739	-	1,108,969
Intersegment revenues:
Net investment income	5,832,691	1,691,197	258,062	(7,781,950)	-
Total revenues	73,053,870	13,627,908	80,667,442	(7,781,950)	159,567,270
Expenses:
Death and other policy benefits	23,945,720	-	-	-	23,945,720
Increase in future policy benefits	22,258,241	-	-	-	22,258,241
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	5,396,016	373,332	-	-	5,769,348
Depreciation	479,634	520,015	499,389	-	1,499,038
General, administrative and
other costs:
Intersegment	24,000	103,494	130,011	(257,505)	-
Provision for loan losses	-	-	2,070,399	-	2,070,399
Costs related to funding mortgage
loans	-	-	4,240,377	-	4,240,377
Other	17,472,713	9,827,197	69,286,435	-	96,586,345
Interest expense:
Intersegment	668,047	1,905,559	4,950,839	(7,524,445)	-
Other	111,221	437,736	1,412,292	-	1,961,249
Total benefits and expenses	70,355,592	13,167,333	82,589,742	(7,781,950)	158,330,717
Earnings (losses) before income taxes	$2,698,278	$460,575	$(1,922,300)	$-	$1,236,553
Income tax (expense) benefit	(734,626)	-	796,831	-	62,205
Net earnings (losses)	$1,963,652	$460,575	$(1,125,469)	$-	$1,298,758

Identifiable assets	$504,744,743	$116,453,434	$27,913,480	$(126,061,216)	$523,050,441

Goodwill	$391,848	$285,191	$-	$-	$677,039

Expenditures for long-lived assets	$136,742	$255,116	$373,775	$-	$765,633

	2010
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$38,509,198	$11,520,369	$97,342,215	$-	$147,371,782
Net investment income	14,738,200	63,574	3,814,210	-	18,615,984
Realized gains on
investments and other assets	1,642,174	(26,756)	-	-	1,615,418
Other than temporary impairments	(673,981)	-	-	-	(673,981)
Other revenues	1,039,016	256,862	285,237	-	1,581,115
Intersegment revenues:
Net investment income	6,817,008	1,678,096	244,578	(8,739,682)	-
Total revenues	62,071,615	13,492,145	101,686,240	(8,739,682)	168,510,318
Expenses:
Death and other policy benefits	20,925,988	-	-	-	20,925,988
Increase in future policy benefits	17,020,086	-	-	-	17,020,086
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	4,058,514	372,562	-	-	4,431,076
Depreciation	559,999	631,281	620,652	-	1,811,932
General, administrative and
other costs:
Intersegment	24,000	109,128	185,147	(318,275)	-
Provision for loan losses	-	-	5,404,645	-	5,404,645
Costs related to funding mortgage
loans	-	-	6,044,020	-	6,044,020
Other	16,756,255	11,097,302	83,329,514	-	111,183,071
Interest expense:
Intersegment	686,384	1,792,479	5,942,544	(8,421,407)	-
Other	179,891	475,372	2,123,657	-	2,778,920
Total benefits and expenses	60,211,117	14,478,124	103,650,179	(8,739,682)	169,599,738
Earnings (losses) before income taxes	$1,860,498	$(985,979)	$(1,963,939)	$-	$(1,089,420)
Income tax (expense) benefit	(97,410)	-	756,206	-	658,796
Net earnings (losses)	$1,763,088	$(985,979)	$(1,207,733)	$-	$(430,624)

Identifiable assets	$441,751,653	$111,798,118	$30,323,496	$(116,860,777)	$467,012,490

Goodwill	$391,848	$683,191	$-	$-	$1,075,039

Expenditures for long-lived assets	$220,417	$275,904	$363,667	$-	$859,988

- Definition

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

+ References

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

15) Related Party Transactions

12 Months Ended

Dec. 31, 2012

Notes

15) Related Party Transactions

The Company’s Board of Directors has a written procedure, which requires disclosure to the Board of any material interest or any affiliation on the part of any of its officers, directors or employees that is in conflict or may be in conflict with the interests of the Company.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details

16) Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Notes

16) Fair Value of Financial Instruments

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

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

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

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

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

Securities Available for Sale and Held to Maturity: The fair values of investments in fixed maturity and equity securities along with methods used to estimate such values are disclosed in Note 2 of the Notes to Consolidated Statements.

Restricted Assets of the Cemeteries and Mortuaries: A portion of these assets include mutual funds and equity securities that have quoted market prices. Also included are cash and cash equivalents and participations in mortgage loans. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values.

Cemetery Perpetual Care Trust Investments: A portion of these assets include equity securities that have quoted market prices. Also included are cash and cash equivalents. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values.

Call Options: The fair values along with methods used to estimate such values are disclosed in Note 2 of the Notes to Consolidated Statements.

The items shown under Level 3 are valued as follows:

Investment-Type Insurance Contracts: Future policy benefit reserves for interest-sensitive insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances. Interest crediting rates for interest-sensitive insurance products ranged from 4% to 6.5%. The fair values for the Company’s liabilities under investment-type insurance contracts (disclosed as policyholder account balances and future policy benefits – annuities) are estimated based on the contracts’ cash surrender values.

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

Interest Rate Lock Commitments: The Company’s mortgage banking activities enters into interest rate lock commitments with potential borrowers and forward commitments to sell loans to third-party investors. The Company also implements a hedging strategy for these transactions. A mortgage loan commitment binds the Company to lend funds to a qualified borrower at a specified interest rate and within a specified period of time, generally up to 30 days after inception of the mortgage loan commitment. Mortgage loan commitments are defined to be derivatives under generally accepted accounting principles and are recognized at fair value on the consolidated balance sheet with changes in their fair values recorded as part of other comprehensive income from mortgage banking operations.

Bank Loan Interest Rate Swaps: Management considers the interest rate swap instruments to be an effective cash flow hedge against the variable interest rate on bank borrowings since the interest rate swap mirrors the term of the note payable and expires on the maturity date of the bank loan it hedges. The interest rate swaps are a derivative financial instruments carried at its fair value. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable.

Mortgage Loans on Real Estate: The fair values are estimated using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. The carrying amounts reported in the accompanying consolidated balance sheet for these financial instruments approximate their fair values.

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

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

Mortgage Servicing Rights: The Company initially recognizes MSRs at their estimated fair values derived from the net cash flows associated with the servicing contracts, where the Company assumes the obligation to service the loan in the sale transaction. The precise fair value of MSRs cannot be readily determined because MSRs are not actively traded in stand-alone markets. Considerable judgment is required to estimate the fair values of these assets and the exercise of such judgment can significantly affect the Company’s earnings.

The following table summarizes Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the consolidated balance sheet at December 31, 2012.

	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
Non-redeemable preferred stock	$18,795	$18,795	$-	$-
Common stock	5,386,317	5,386,317	-	-
Total securities available for sale	5,405,112	5,405,112	-	-
Restricted assets of cemeteries and mortuaries	585,412	585,412
Cemetery perpetual care trust investments	626,048	626,048	-	-
Derivatives - interest rate lock commitments	3,127,689	-	-	3,127,689
Total assets accounted for at fair value on a recurring basis	$9,744,261	$6,616,572	$-	$3,127,689

Liabilities accounted for at fair value on a recurring basis
Policyholder account balances	$(49,746,337)	$-	$-	$(49,746,337)
Future policy benefits - annuities	(65,171,687)	-	-	(65,171,687)
Derivatives - bank loan interest rate swaps	(93,572)	-	-	(93,572)
- call options	(126,215)	(126,215)	-	-
- interest rate lock commitments	(166,224)	-	-	(166,224)
Total liabilities accounted for at fair value on a recurring basis	$(115,304,035)	$(126,215)	$-	$(115,177,820)

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

	Policyholder Account Balances	Future Policy Benefits - Annuities	Interest Rate Lock Commitments	Bank Loan Interest Rate Swaps

Balance - December 31, 2011	$(50,926,020)	$(65,281,586)	$1,694,541	$(117,812)

Total Losses (Gains):

Included in earnings	1,179,683	109,899	-	-

Included in other
comprehensive income (loss)	-	-	1,266,924	24,240

Balance - December 31, 2012	$(49,746,337)	$(65,171,687)	$2,961,465	$(93,572)

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a nonrecurring basis by their classification in the consolidated balance sheet at December 31, 2012.

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Mortgage servicing rights	$2,797,470			$2,797,470
Mortgage loans on real estate	4,621,500	-	-	4,621,500
Other real estate owned held for investment	985,219	-	-	985,219
Total assets accounted for at fair value on a nonrecurring basis	$8,404,189	$-	$-	$8,404,189

	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
Non-redeemable preferred stock	$18,438	$18,438	$-	$-
Common stock	6,280,954	6,280,954	-	-
Total securities available for sale	6,299,392	6,299,392	-	-
Restricted assets of cemeteries and mortuaries	548,761	548,761
Cemetery perpetual care trust investments	617,107	617,107	-	-
Derivatives - interest rate lock commitments	1,904,901	-	-	1,904,901
Total assets accounted for at fair value on a recurring basis	$9,370,161	$7,465,260	$-	$1,904,901

Liabilities accounted for at fair value on a recurring basis
Policyholder account balances	$(50,926,020)	$-	$-	$(50,926,020)
Future policy benefits - annuities	(65,281,586)	-	-	(65,281,586)
Derivatives - bank loan interest rate swaps	(117,812)	-	-	(117,812)
- call options	(80,102)	(80,102)	-	-
- interest rate lock commitments	(210,360)	-	-	(210,360)
Total liabilities accounted for at fair value on a recurring basis	$(116,615,880)	$(80,102)	$-	$(116,535,778)

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

	Policyholder Account Balances	Future Policy Benefits - Annuities	Interest Rate Lock Commitments	Bank Loan Interest Rate Swaps

Balance - December 31, 2010	$(52,340,807)	$(65,936,445)	$873,059	$(116,533)

Total Losses (Gains):

Included in earnings	1,414,787	654,859	-	-

Included in other comprehensive income (loss)	-	-	821,482	(1,279)

Balance - December 31, 2011	$(50,926,020)	$(65,281,586)	$1,694,541	$(117,812)

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Mortgage loans on real estate	$5,354,600	-	-	$5,354,600
Other real estate ownd held for investment	5,419,103	-	-	5,419,103
Other real estate owned held for sale	514,000	-	-	514,000
Total assets accounted for at fair value on a nonrecurring basis	$11,287,703	$-	$-	$11,287,703

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

17) Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2012

Notes

17) Accumulated Other Comprehensive Income

The following summarizes the changes in accumulated other comprehensive income:

	December 31
	2012	2011
Unrealized gains (losses) on available for-sale securities	$ (28,700)	$ (1,698,175)
Reclassification adjustment for net realized gains in net income	386,328	472,038
Net unrealized gains (losses) before taxes	357,628	(1,226,137)
Tax (expense) benefit	70,120	150,999
Net	427,748	(1,075,138)
Potential unrealized gains (losses) for derivative bank loans (interest rate swaps) before taxes	24,240	(1,279)
Tax (expense) benefit	(8,242)	435
Net	15,998	(844)
Potential unrealized gains (losses) for derivative mortgage loans before taxes	1,266,924	821,483
Tax (expense) benefit	(430,754)	(279,304)
Net	836,170	542,179
Other comprehensive income changes	$ 1,279,916	$ (533,803)

The following is the accumulated balances of other comprehensive income as of December 31, 2012:

	Beginning Balance December 31, 2011	Change for the period	Ending Balance December 31, 2012
Unrealized net gains on available-for-sale securities and trust investments	$ (386,198)	$ 427,748	$ 41,550

Unrealized gains on derivative mortgage loans	1,118,397	836,170	1,954,567

Unrealized gains ( losses) on derivative bank loan interest rate swaps	(77,756)	15,998	(61,758)
Other comprehensive income	$ 654,443	$ 1,279,916	$ 1,934,359

The following is the accumulated balances of other comprehensive income as of December 31, 2011:

	Beginning Balance December 31, 2010	Change for the period	Ending Balance December 31, 2011
Unrealized net gains on available-for-sale securities and trust investments	$ 688,940	$ (1,075,138)	$ (386,198)

Unrealized gains on derivative mortgage loans	576,218	542,179	1,118,397

Unrealized gains ( losses) on derivative bank loan interest rate swaps	(76,912)	(844)	(77,756)
Other comprehensive income	$ 1,188,246	$ (533,803)	$ 654,443

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 18: Derivative Commitments

12 Months Ended

Dec. 31, 2012

Notes

Note 18: Derivative Commitments

18) Derivative Commitments

The Company is exposed to price risk due to the potential impact of changes in interest rates on the values of mortgage loan commitments from the time a derivative loan commitment is made to an applicant to the time the loan that would result from the exercise of that loan commitment is funded. Managing price risk is complicated by the fact that the ultimate percentage of derivative loan commitments that will be exercised (i.e., the number of loan commitments that will be funded) fluctuates. The probability that a loan will not be funded within the terms of the commitment is driven by a number of factors, particularly the change, if any, in mortgage rates following the inception of the interest rate lock. However, many borrowers continue to exercise derivative loan commitments even when interest rates have fallen.

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

The Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage loan and the probability that the mortgage loan will fund within the terms of the commitment. The change in fair value of the underlying mortgage loan is measured from the date the mortgage loan commitment is issued. Therefore, at the time of issuance, the estimated fair value is zero. Following issuance, the value of a mortgage loan commitment can be either positive or negative depending upon the change in value of the underlying mortgage loans. Fallout rates derived from the Company’s recent historical empirical data are used to estimate the quantity of mortgage loans that will fund within the terms of the commitments.

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

The Company has adopted a strategy of selling “out of the money” call options on its available for sale equity securities as a source of revenue. The options give the purchaser the right to buy from the Company specified equity securities at a set price up to a pre-determined date in the future. The Company receives an immediate payment of cash for the value of the option and establishes a liability for the market value of the option. The liability for call options is adjusted to market value at each reporting date. The market value of outstanding call options as of December 31, 2012 and December 31, 2011 was $126,215 and $80,102, respectively. In the event an option is exercised, the Company recognizes a gain on the sale of the equity security and a gain from the sale of the option. If the option expires unexercised, the Company recognizes a gain from the sale of the option and retains the underlying equity security.

The following table shows the fair value of derivatives as of December 31, 2012 and December 31, 2011.

Fair Value of Derivative Instruments

Asset Derivatives

Liability Derivatives

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

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

$3,127,689

other assets

$ 1,904,901

Other liabilities

$166,224

Other liabilities

$210,360

Call Options

Other liabilities

126,215

Other liabilities

80,102

Interest rate swaps

Bank loans payable

93,572

Bank loans payable

117,812

Total

$3,127,689

$ 1,904,901

$386,011

$408,274

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

	Net Amount Gain (Loss) Recognized in OCI
	Years ended December 31
Derivative - Cash Flow Hedging Relationships:	2012	2011
Interest Rate Lock Commitments	$ 1,266,924	$ 821,482
Interest Rate Swaps	24,240	(1,279)
Sub Total	1,291,164	820,203
Tax Effect	438,996	278,868
Total	$ 852,168	$ 541,335

19) Acquisitions

12 Months Ended

Dec. 31, 2012

Notes

19) Acquisitions

On August 31, 2011 the Company entered into a Stock Purchase Agreement with North America Life to purchase all of the outstanding shares of common stock of Trans-Western Life Insurance Company (“Trans-Western”), a Texas domiciled insurance company and a wholly-owned subsidiary of North America Life. The Company completed the Stock Purchase Agreement on May 2, 2012. Purchase consideration paid was $494,207 which was the capital and surplus of Trans-Western at May 2, 2012. The Stock Purchase Agreement was approved by the Texas Insurance Department on March 20, 2012. All of Trans-Western’s insurance business had been ceded to North America Life, of which approximately 47% of the insurance in force had been assumed by the Company under the Coinsurance Agreement explained in Note 9 of the Notes to Consolidated Statements. As part of the stock purchase transaction, the Company recaptured the 47% of insurance in force.

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

Cash	$ 313,616
Receivables, net	186,487
Receivable from reinsurers	7,422,999
Total assets acquired	7,923,102
Future life, annuity, and other benefits	(7,422,999)
Other liabilities and accrued expenses	(5,896)
Total liabilities assumed	(7,428,895)
Fair value of net assets acquired	$ 494,207

The following unaudited pro forma information has been prepared to present the results of operations of the Company assuming the acquisition of Trans-Western had occurred at the beginning of the years ended December 31, 2012, 2011 and 2010, respectively. This pro forma information is supplemental and does not necessarily present the operations of the Company that would have occurred had the acquisition occurred on those dates and may not reflect the operations that will occur in the future:

	For the Year Ended, December 31 (unaudited)
	2012	2011	2010
Total revenues	$ 234,268,496	$ 159,620,617	$ 168,615,765
Net earnings	$ 16,713,955	$ 1,314,026	$ (402,460)
Net earnings per Class A equivalent common share	$ 1.65	$ 0.13	$ (0.04)
Net earnings per Class A equivalent common share
assuming dilution	$ 1.57	$ 0.13	$ (0.04)

20) Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2012

Notes

20) Mortgage Servicing Rights

The Company did not have MSRs before the year ended December 31, 2012. The following table presents the MSR activity for 2012.

	December 31, 2012
Amortized cost:
Balance before valuation allowance at beginning of year	$ -
MSRs received as proceeds from loan sales	2,797,470
Amortization	-
Application of valuation allowance to write down MSRs with other than temporary impairment	-
Balance before valuation allowance at year end	$ 2,797,470

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

Mortgage servicing rights, net	$ 2,797,470

Estimated fair value of MSRs at year end	$ 2,797,470

Amortization for 2012 was immaterial, and has not been recorded. The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2012 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management.

		Estimated MSR Amortization
2013		$ 310,830
2014		310,830
2015		310,830
2016		310,830
2017		310,830
Thereafter		$ 1,243,320
Total		$ 2,797,470

The Company began to retain MSRs in the second quarter of 2012. Since the retained MSRs were relatively small, they were determined to be immaterial. However, the Company substantially increased its MSR retention in the fourth quarter and began to report these MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements.

21) Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2012

Notes

21) Quarterly Financial Data (unaudited)

21) Quarterly Financial Data (Unaudited)

	2012
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 47,323,223	$ 56,528,210	$ 63,747,903	$ 66,660,832
Benefits and expenses	44,994,631	51,491,833	57,615,608	58,806,804
Earnings (loss) before income taxes	2,328,592	5,036,377	6,132,295	7,854,029
Income tax benefit (expense)	(666,409)	(1,443,345)	(2,142,249)	(386,772)
Net earnings (loss)	1,662,183	3,593,032	3,990,046	7,467,257
Net earnings (loss) per common share	$0.18	$0.38	$0.42	$0.76
Net earnings (loss) per common share assuming dilution	$0.17	$0.36	$0.38	$0.69

	2011
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 34,172,180	$ 36,466,418	$ 41,324,687	$ 47,603,985
Benefits and expenses	35,494,762	36,325,240	40,490,197	46,020,518
Earnings (loss) before income taxes	(1,322,582)	141,178	834,490	1,583,467
Income tax benefit (expense)	804,109	63,689	(64,168)	(741,425)
Net earnings (loss)	(518,473)	204,867	770,322	842,042
Net earnings (loss) per common share	($0.06)	$0.02	$0.09	$0.09
Net earnings (loss) per common share assuming dilution	($0.06)	$0.02	$0.09	$0.09

	2010
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 37,967,127	$ 43,048,988	$ 45,974,697	$ 41,519,506
Benefits and expenses	39,640,041	42,964,207	45,161,511	41,833,979
Earnings (loss) before income taxes	(1,672,914)	84,781	813,186	(314,473)
Income tax benefit (expense)	721,681	334,638	(309,757)	(87,766)
Net earnings (loss)	(951,233)	419,419	503,429	(402,239)
Net earnings (loss) per common share	($0.11)	$0.05	$0.06	($0.05)
Net earnings (loss) per common share assuming dilution	($0.11)	$0.05	$0.06	($0.05)

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

12 Months Ended

Dec. 31, 2012

Policies

General Overview of Business

General Overview of Business

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

12 Months Ended

Dec. 31, 2012

Policies

Basis of Presentation

Basis of Presentation

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

12 Months Ended

Dec. 31, 2012

Policies

Principles of Consolidation

Principles of Consolidation

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 40
-Section 45
-URI http://asc.fasb.org/section&trid=2197723

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.3A-02)
-URI http://asc.fasb.org/extlink&oid=6959686&loc=d3e355033-122828

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33801-111570

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 96-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph a(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 97-2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph k
-Article 1

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02, 03
-Article 3A

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 1: Significant Accounting Policies: Investments (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Investments

Investments

Other real estate owned held for sale are foreclosed properties which the Company intends to sell. These properties are carried at the lower of cost or fair value, less cost to sell.

Policy and other loans are carried at the aggregate unpaid balances, less allowances for possible losses.

Short-term investments are carried at cost and consist of certificates of deposit and commercial paper with maturities of up to one year.

- Definition

Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (a)(2)
-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.2,12)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6872867&loc=d3e40691-111596

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section M

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 7-18
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 2, 12
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 7-16
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10, 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Dec. 31, 2012

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4273-108586

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 305
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122427

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Financial Reporting Release (FRR)
-Number 203
-Paragraph 02-03

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Technical Practice Aid (TPA)
-Number 2110
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7, 8, 9, 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Dec. 31, 2012

Policies

Cemetery Land and Improvements

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

12 Months Ended

Dec. 31, 2012

Policies

Property and Equipment

Property and Equipment

- Definition

Disclosure of accounting policy for property, plant and equipment which may include the basis of such assets, depreciation methods used and estimated useful lives, the entity's capitalization policy, including its accounting treatment for costs incurred for repairs and maintenance activities, whether such asset balances include capitalized interest and the method by which such is calculated, how disposals of such assets are accounted for and how impairment of such assets is assessed and recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2155824

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.13(a))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 34
-Paragraph 8, 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section C
-Paragraph 5
-Chapter 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 5
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 12, 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 13
-Subparagraph a
-Article 5

+ Details

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

12 Months Ended

Dec. 31, 2012

Policies

Recognition of Insurance Premiums and Other Considerations

Recognition of Insurance Premiums and Other Considerations

- Definition

Disclosure of accounting policy for determining revenue and timing of recognition as revenue of premiums received from policyholders, insureds and other insurance entities (the effects of ceding and assuming insurance policy risks) for the entity's insurance products.

+ References + Details

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

12 Months Ended

Dec. 31, 2012

Policies

Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs and Value of Business Acquired

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

- Definition

Disclosure of accounting policy for capitalizing costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. This disclosure addresses the nature, type, and amount of capitalized costs incurred to write or acquire insurance contracts.

+ References + Details

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

12 Months Ended

Dec. 31, 2012

Policies

Mortgage Servicing Rights

Mortgage Servicing Rights

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

12 Months Ended

Dec. 31, 2012

Policies

Allowance For Doubtful Accounts and Loan Losses and Impaired Loans

Allowance for Doubtful Accounts and Loan Losses and Impaired Loans

The Company records an allowance and recognizes an expense for potential losses from mortgage loans, other loans and receivables in accordance with FASB Codification Topic 450.

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

12 Months Ended

Dec. 31, 2012

Policies

Loan Loss Reserve

Loan Loss Reserve

The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on mortgage loans sold to third party investors.

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

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

Additional information related to the Loan Loss Reserve is included in Note 2.

Note 1: Significant Accounting Policies: Future Life, Annuity and Other Policy Benefits (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Future Life, Annuity and Other Policy Benefits

- Definition

Disclosure of accounting policy for an insurance entity's net liability for future benefits (for example, death, cash surrender value) to be paid to or on behalf of policyholders, describing the bases, methodologies and components of the reserve, and assumptions regarding estimates of expected investment yields, mortality, morbidity, terminations and expenses.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.13(b))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6482852&loc=d3e14931-158439

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 13
-Subparagraph b
-Article 7

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-LHI
-Section Appendix C
-Paragraph C-13
-IssueDate 2006-05-01
-Chapter 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-5
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-PLI
-Paragraph 2, 34, 132, 133
-IssueDate 2006-09-01
-Chapter 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 60
-Paragraph 60
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 1: Significant Accounting Policies: Participating Insurance (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Participating Insurance

Participating Insurance

Note 1: Significant Accounting Policies: Reinsurance (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Reinsurance

Reinsurance

- Definition

Disclosure of accounting policy for ceded reinsurance transactions on the financial statements, and description of the methodologies and assumptions underlying determination of reinsurance recoverables and reinsurance payables. If applicable, the assumptions pertaining to foreign-based reinsurance, and the nature and effect of material nonrecurring reinsurance transactions. May also state that the ceding insurer is not relieved of its primary obligation to policyholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6816-158387

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6588590&loc=d3e27758-158548

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6588590&loc=d3e27830-158548

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.13(c))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6811-158387

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-URI http://asc.fasb.org/topic&trid=2303980

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 113
-Paragraph 27, 120
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 13
-Subparagraph c
-Article 7

+ Details

Note 1: Significant Accounting Policies: Cemetery and Mortuary Operations (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Cemetery and Mortuary Operations

Cemetery and Mortuary Operations

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

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

12 Months Ended

Dec. 31, 2012

Policies

Mortgage Fee Income

Mortgage Fee Income

· Failure to deliver original documents specified by the investor.

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

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

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

· Excessive time to settle a loan.

· Investor declines purchase.

· 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 mortgages originated and held for investment, mortgage fee income and related expenses are recognized when the loan is originated.

Commercial Loans

Residential and Construction Loans

Note 1: Significant Accounting Policies: Self Insurance (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Self Insurance

Self-Insurance

Note 1: Significant Accounting Policies: Goodwill (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Goodwill

Goodwill

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

12 Months Ended

Dec. 31, 2012

Policies

Long-lived Assets

Note 1: Significant Accounting Policies: Income Taxes (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Income Taxes

Income Taxes

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32840-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=2144749

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 954
-SubTopic 740
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2144681

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 17
-Subparagraph (b)
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32280-109318

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 6-34, 43, 47, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 4
-Paragraph 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Dec. 31, 2012

Policies

Earnings Per Common Share

Earnings Per Common Share

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

+ References + Details

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

12 Months Ended

Dec. 31, 2012

Policies

Stock Based Compensation

Stock Based Compensation

- Definition

Disclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.

+ References + Details

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

12 Months Ended

Dec. 31, 2012

Policies

Concentration of Credit Risk

- Definition

Disclosure of accounting policy for credit risk.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6480020&loc=d3e61082-112788

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-Name Accounting Standards Codification
-Topic 942
-SubTopic 825
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6480020&loc=d3e61044-112788

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-Publisher FASB
-Name FASB Staff Position (FSP)
-Number SOP94-6-1
-Paragraph 7, 11
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 113
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 14
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 1: Significant Accounting Policies: Advertising Expense (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Advertising Expense

Advertising Expense

The Company expenses advertising costs as incurred.

The total amount charged to advertising expense for 2012, 2011 and 2010 was $4,065,000, $2,237,000 and $2,122,000, respectively.

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

12 Months Ended

Dec. 31, 2012

Policies

Recent Accounting Pronouncements

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

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

Held-to-maturity Securities

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2012:
Fixed maturity securities held to maturity
carried at amortized cost:
Bonds:
U.S. Treasury securities
and obligations of U.S
Government agencies	$	2,602,589	$	514,572	$	-	$	3,117,161

Obligations of states and
political subdivisions		2,040,277		285,241		(3,982)		2,321,536

Corporate securities including
public utilities		118,285,147		16,230,468		(607,322)		133,908,293

Mortgage-backed securities		5,010,519		327,871		(76,056)		5,262,334

Redeemable preferred stock		1,510,878		98,087		(1,200)		1,607,765
Total fixed maturity
securities held to maturity	$	129,449,410	$	17,456,239	$	(688,560)	$	146,217,089

as of December 31, 2011

Tables/Schedules

Held-to-maturity Securities

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2011:
Fixed maturity securities held to maturity
carried at amortized cost:
Bonds:
U.S. Treasury securities
and obligations of U.S
Government agencies	$	2,820,159	$	551,740	$	-	$	3,371,899

Obligations of states and
political subdivisions		3,024,425		309,986		(13,156)		3,321,255

Corporate securities including
public utilities		113,648,447		10,075,071		(2,268,146)		121,455,372

Mortgage-backed securities		6,575,178		354,286		(356,899)		6,572,565

Redeemable preferred stock		1,510,878		72,639		(129,200)		1,454,317
Total fixed maturity
securities held to maturity	$	127,579,087	$	11,363,722	$	(2,767,401)	$	136,175,408

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 9
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-SubTopic 10
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5086-111524

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 2: Investments: Available-for-sale Securities (Tables)

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

Available-for-sale Securities

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2012:

Equity securities available for sale
at estimated fair value:

Non-redeemable preferred stock	$	20,281	$	-	$	(1,486)	$	18,795

Common stock:

Industrial, miscellaneous and all other		6,047,474		309,752		(970,909)		5,386,317

Total equity securities available for sale
at estimated fair value	$	6,067,755	$	309,752	$	(972,395)	$	5,405,112

Total securities available for sale
carried at estimated fair value	$	6,067,755	$	309,752	$	(972,395)	$	5,405,112

Mortgage loans on real estate and construction loans held for investment at amortized cost:
Residential	$	50,584,923
Residential construction		3,161,112
Commercial		34,956,031
Less: Allowance for loan losses		(4,239,861)
Total mortgage loans on real estate and
construction loans held for investment	$	84,462,205

Real estate held for investment - net of depreciation	$	3,543,751
Other real estate owned held for investment - net of
depreciation		55,027,669
Other real estate owned held for sale		5,682,610
Total real estate	$	64,254,030

Policy, student and other loans at
amortized cost - net of allowance for doubtful accounts	$	20,188,516

Short-term investments at amortized cost	$	40,925,390

as of December 31, 2011

Tables/Schedules

Available-for-sale Securities

				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
December 31, 2011:

Equity securities available for sale
at estimated fair value:

Non-redeemable preferred stock	$	20,281	$	-	$	(1,843)	$	18,438

Common stock:

Industrial, miscellaneous and all other		7,250,991		363,387		(1,333,424)		6,280,954

Total equity securities available for sale
at estimated fair value	$	7,271,272	$	363,387	$	(1,335,267)	$	6,299,392

Total securities available for sale
carried at estimated fair value	$	7,271,272	$	363,387	$	(1,335,267)	$	6,299,392

Mortgage loans on real estate and construction loans held for investment at amortized cost:
Residential	$	54,344,327
Residential construction		17,259,666
Commercial		48,433,147
Less: Allowance for loan losses		(4,881,173)
Total mortgage loans on real estate and
construction loans held for investment	$	115,155,967

Real estate held for investment - net of depreciation	$	3,786,780
Other real estate owned held for investment - net of
depreciation		46,398,095
Other real estate owned held for sale		5,793,900
Total real estate	$	55,978,775

Policy, student and other loans at
amortized cost - net of allowance for doubtful accounts	$	18,463,277

Short-term investments at amortized cost	$	6,932,023

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

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-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Staff Position (FSP)
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-Subparagraph a, b
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Dec. 31, 2012

Fixed Maturities

Tables/Schedules

Schedule of Unrealized Loss on Investments

		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, 2012
Redeemable Preferred Stock	$	1,200	1	$	-	-	$	1,200
Obligations of States and
Political Subdivisions		-	-		3,982	2		3,982
Corporate Securities		191,662	16		415,660	9		607,322
Mortgage and other
asset-backed securities		-	-		76,056	3		76,056
Total unrealized losses	$	192,862	17	$	495,698	14	$	688,560
Fair Value	$	4,609,268		$	3,972,091		$	8,581,359

At December 31, 2011
Redeemable Preferred Stock	$	800	1		128,400	1	$	129,200
Obligations of States and
Political Subdivisions		-	-		13,156	2		13,156
Corporate Securities		1,544,224	47		723,922	12		2,268,146
Mortgage and other
asset-backed securities		161,300	3		195,599	1		356,899
Total unrealized losses	$	1,706,324	51	$	1,061,077	16	$	2,767,401
Fair Value	$	24,249,533		$	3,762,892		$	28,012,425

Equity Securities

Tables/Schedules

Schedule of Unrealized Loss on Investments

		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, 2012
Non-redeemable preferred stock	$	686	1	$	800	1	$	1,486
Industrial, miscellaneous and all other		236,293	39		734,616	44		970,909
Total unrealized losses	$	236,979	40	$	735,416	45	$	972,395
Fair Value	$	1,422,436		$	1,493,538		$	2,915,974

At December 31, 2011
Non-redeemable preferred stock	$	-	-	$	1,843	2	$	1,843
Industrial, miscellaneous and all other		955,400	79		378,024	14		1,333,424
Total unrealized losses	$	955,400	79	$	379,868	16	$	1,335,266
Fair Value	$	2,857,082		$	560,529		$	3,417,611

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

12 Months Ended

Dec. 31, 2012

Held-to-maturity Securities

Tables/Schedules

Investments Classified by Contractual Maturity Date

		Amortized		Estimated Fair
		Cost		Value
Held to Maturity:
Due in 2013	$	1,700,455	$	1,768,905
Due in 2014 through 2017		20,923,480		23,120,438
Due in 2018 through 2022		45,399,136		51,113,794
Due after 2022		54,904,942		63,343,853
Mortgage-backed securities		5,010,519		5,262,334
Redeemable preferred stock		1,510,878		1,607,765
Total held to maturity	$	129,449,410	$	146,217,089

Available-for-sale Securities

Tables/Schedules

Investments Classified by Contractual Maturity Date

		Amortized		Estimated Fair
		Cost		Value
Available for Sale:
Due in 2013	$	-	$	-
Due in 2014 through 2017		-		-
Due in 2018 through 2022		-		-
Due after 2022		-		-
Non-redeemable preferred stock		20,281		18,795
Common stock		6,047,474		5,386,317
Total available for sale	$	6,067,755	$	5,405,112

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Gain (Loss) on Investments

		2012		2011		2010
Fixed maturity securities held
to maturity:
Gross realized gains	$	470,874	$	939,672	$	1,300,187
Gross realized losses		(3,875)		(162,716)		(494,678)
Other than temporary impairments		(165,000)		(125,129)		(150,059)

Securities available for sale:
Gross realized gains		392,033		590,455		686,788
Gross realized losses		(5,705)		(118,417)		(61,530)
Other than temporary impairments		(247,317)		(52,775)		(23,922)

Other assets:
Gross realized gains		794,346		1,295,217		393,943
Gross realized losses		(223,163)		(79,858)		(209,292)
Other than temporary impairments		(795,315)		(662,831)		(500,000)
Total	$	216,878	$	1,623,618	$	941,437

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (c)-(e)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 5.M)
-URI http://asc.fasb.org/extlink&oid=6784337&loc=d3e87990-122713

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 7, 13, 16, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 12
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 21
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section M

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Major categories of net investment income

		2012		2011		2010
Fixed maturity securities	$	7,731,051	$	7,762,894	$	6,761,254
Equity securities		264,063		272,011		238,929
Mortgage loans on real estate		6,878,354		6,863,026		6,154,760
Real estate		4,927,128		3,741,263		3,040,864
Policy, student and other loans		830,683		835,312		897,945
Short-term investments, principally gains on sale of mortgage loans		8,716,257		6,255,581		7,215,927
Gross investment income		29,347,536		25,730,087		24,309,679
Investment expenses		(6,097,382)		(5,719,383)		(5,693,695)
Net investment income	$	23,250,154	$	20,010,704	$	18,615,984

Note 2: Investments: The Following Is A Summary of The Allowance For Loan Losses As A Contra-asset Account For The Periods Presented (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

The Following Is A Summary of The Allowance For Loan Losses As A Contra-asset Account For The Periods Presented:

Allowance for Credit Losses and Recorded Investment in Mortgage Loans
For the Years Ended December 31, 2012, and 2011

		Commercial		Residential		Residential Construction		Total
2012
Allowance for credit losses:
Beginning balance	$	-	$	4,338,805	$	542,368	$	4,881,173
Charge-offs		-		(560,699)		(514,442)		(1,075,141)
Provision		-		415,568		18,261		433,829
Ending balance	$	-	$	4,193,674	$	46,187	$	4,239,861

Ending balance: individually evaluated for impairment	$	-	$	692,199	$	-	$	692,199

Ending balance: collectively evaluated for impairment	$	-	$	3,501,475	$	46,187	$	3,547,662

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

Mortgage loans:
Ending balance	$	34,956,031	$	50,584,923	$	3,161,112	$	88,702,066

Ending balance: individually evaluated for impairment	$	-	$	4,692,517	$	1,346,126	$	6,038,643

Ending balance: collectively evaluated for impairment	$	34,956,031	$	45,892,406	$	1,814,986	$	82,663,423

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

2011
Allowance for credit losses:
Beginning balance	$	-	$	6,212,072	$	858,370	$	7,070,442
Charge-offs		-		(2,994,715)		(430,274)		(3,424,989)
Provision		-		1,121,448		114,272		1,235,720
Ending balance	$	-	$	4,338,805	$	542,368	$	4,881,173

Ending balance: individually evaluated for impairment	$	-	$	738,975	$	250,524	$	989,499

Ending balance: collectively evaluated for impairment	$	-	$	3,599,830	$	291,844	$	3,891,674

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

Mortgage loans:
Ending balance	$	48,433,147	$	54,344,327	$	17,259,666	$	120,037,140

Ending balance: individually evaluated for impairment	$	2,758,235	$	4,611,995	$	5,645,865	$	13,016,095

Ending balance: collectively evaluated for impairment	$	45,674,912	$	49,732,332	$	11,613,801	$	107,021,045

Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of aging of mortgage loans

Age Analysis of Past Due Mortgage Loans
Years Ended December 31, 2012 and 2011

	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days 1)	In Foreclosure 1)	Total Past Due	Current	Total Mortgage Loans	Allowance for Loan Losses	Net Mortgage Loans
2012
Commercial	$581,984	$0	$143,252	$0	$725,236	$34,230,795	$34,956,031	$0	$34,956,031
Residential	2,963,259	1,345,247	5,208,742	4,692,517	14,209,765	36,375,158	50,584,923	(4,193,674)	46,391,249
Residential Construction	-	-	288,468	1,346,126	1,634,594	1,526,518	3,161,112	(46,187)	3,114,925

Total	$3,545,243	$1,345,247	$5,640,462	$6,038,643	$16,569,595	$72,132,471	$88,702,066	$(4,239,861)	$84,462,205

2011
Commercial	$0	$0	$1,053,500	$2,758,235	$3,811,735	$44,621,412	$48,433,147	$0	$48,433,147
Residential	2,478,084	2,058,261	5,500,340	4,611,995	14,648,680	39,695,647	54,344,327	(4,338,805)	50,005,522
Residential Construction	859,651	682,532	309,651	5,645,865	7,497,699	9,761,967	17,259,666	(542,368)	16,717,298

Total	$3,337,735	$2,740,793	$6,863,491	$13,016,095	$25,958,114	$94,079,026	$120,037,140	$(4,881,173)	$115,155,967

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

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Impaired Mortgage Loans

Impaired Loans
For the Years Ended December 31, 2012, and 2011

		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
2012
With no related allowance recorded:
Commercial	$	143,252	$	143,252	$	-	$	143,252	$	-
Residential		5,208,742		5,208,742		-		5,208,742		-
Residential construction		1,634,594		1,634,594		-		1,634,594		-

With an allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-
Residential		4,692,517		4,692,517		692,199		4,692,517		-
Residential construction		-		-		-		-		-

Total:
Commercial	$	143,252	$	143,252	$	-	$	143,252	$	-
Residential		9,901,259		9,901,259		692,199		9,901,259		-
Residential construction		1,634,594		1,634,594		-		1,634,594		-

2011
With no related allowance recorded:
Commercial	$	3,811,735	$	3,811,735	$	-	$	3,811,735	$	-
Residential		5,500,340		5,500,340		-		5,500,340		-
Residential construction		309,651		309,651		-		309,651		-

With an allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-
Residential		4,611,995		4,611,995		738,975		4,611,995		-
Residential construction		5,645,865		5,645,865		250,524		5,645,865		-

Total:
Commercial	$	3,811,735	$	3,811,735	$	-	$	3,811,735	$	-
Residential		10,112,335		10,112,335		738,975		10,112,335		-
Residential construction		5,955,516		5,955,516		250,524		5,955,516		-

Note 2: Investments: The Company's Performing and Non-performing Mortgage Loans Were As Follows (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

The Company's Performing and Non-performing Mortgage Loans Were As Follows:

The Company’s performing and non-performing mortgage loans were as follows:

Mortgage Loan Credit Exposure
Credit Risk Profile Based on Payment Activity
As of December 31, 2012, and 2011

		Commercial				Residential				Residential Construction				Total
		2012		2011		2012		2011		2012		2011		2012		2011

Performing	$	34,812,779	$	44,621,412	$	40,683,664	$	44,231,992	$	1,526,518	$	11,304,150	$	77,022,961	$	100,157,554
Nonperforming		143,252		3,811,735		9,901,259		10,112,335		1,634,594		5,955,516		11,679,105		19,879,586

Total	$	34,956,031	$	48,433,147	$	50,584,923	$	54,344,327	$	3,161,112	$	17,259,666	$	88,702,066	$	120,037,140

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Mortgate loans on a nonaccrual status

		Mortgage Loans on Nonaccrual Status
		As of December 31, 2012, and 2011


		2012		2011
Commercial	$	143,252	$	3,811,735
Residential		9,901,259		10,112,335
Residential construction		1,634,594		5,955,516

Total	$	11,679,105	$	19,879,586

Note 2: Investments: Schedule of Principal amounts due on mortgage loans on real estate and construction loans held for investment by category (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Principal amounts due on mortgage loans on real estate and construction loans held for investment by category

				Principal		Principal		Principal
				Amounts		Amounts		Amounts
				Due in		Due in		Due
		Total		2013		2014-2017		Thereafter
Residential	$	50,584,923	$	2,247,732	$	6,699,546	$	41,637,645
Residential Construction		3,161,112		3,161,112		-		-
Commercial		34,956,031		22,612,642		7,214,630		5,128,758
Total	$	88,702,066	$	28,021,486	$	13,914,176	$	46,766,403

Note 2: Investments: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

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

		Years Ended December 31
		2012		2011
Balance, beginning of period	$	2,337,875	$	5,899,025
Provisions for losses		4,053,051		1,667,805
Charge-offs		(355,631)		(5,228,955)
Balance, at December 31	$	6,035,295	$	2,337,875

Note 3: Receivables: Schedule of Receivables (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Receivables

Receivables consist of the following:

		December 31
		2012		2011
Trade contracts	$	14,968,859	$	8,409,206
Receivables from sales agents		649,739		1,623,025
Held in Escrow – Southern Security		342,377		369,968
Other		1,788,894		1,788,731
Total receivables		17,749,869		12,190,930
Allowance for doubtful accounts		(1,190,592)		(2,278,969)
Net receivables	$	16,559,277	$	9,911,961

Note 4: Value of Business Acquired: Schedule of Value of Business Acquired (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Value of Business Acquired

		December 31
		2012		2011		2010
Balance at beginning of year	$	10,996,050	$	8,996,134	$	10,231,755
Value of business acquired		48,190		3,145,116		(515,147)
Imputed interest at 7%		728,880		701,349		674,463
Amortization		(1,944,038)		(1,846,549)		(1,394,937)
Net amortization charged to income		(1,215,158)		(1,145,200)		(720,474)
Balance at end of year	$	9,829,082	$	10,996,050	$	8,996,134

Note 5: Property and Equipment: Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Property, Plant and Equipment

		December 31
		2012		2011
Land and buildings	$	14,782,646	$	12,503,230
Furniture and equipment		13,226,209		12,900,261
		28,008,855		25,403,491
Less accumulated depreciation		(16,974,898)		(16,103,306)
Total	$	11,033,957	$	9,300,185

Note 6: Bank and Other Loans Payable: Summary of Bank Loans Payable (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Summary of Bank Loans Payable

		December 31
		2012		2011
6.34% note payable in monthly installments of $13,556 including principal and interest, collateralized by real property with a book value of approximately $498,000, due November 2017.		748,612		877,707

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.		3,643,192		3,769,012

Bank prime rate less .75% (2.50% at December 31, 2012) note payable in quarterly installments of $75,000 plus interest collateralized by shares of Security National Life Insurance Company Stock, due September 2013.		225,000		525,000

Mark to market of interest rate swaps (discussed below) adjustment		93,572		117,812

3.85% note payable in monthly installments of $79,468 including principal and interest, collateralized by shares of Security National Life Insurance Company Stock, due June 2015.		2,258,968		3,105,965

Revolving line-of-credit, interest payable at the variable overnight Libor rate plus 2% (2.1875% as of December 31, 2012), secured by bond investments of the Company, matures June 2013.		-		15,000,000

Revolving line-of-credit, interest payable at the prime rate minus .75% (2.5% as of December 31, 2012) secured by shares of Security National Life Insurance Company Stock, matures June 2013.		4,608,204		1,400,000

Other collateralized bank loans payable		331,834		222,662
Other notes payable		961		961
Total bank and other loans		11,910,343		25,019,119

Less current installments		6,266,765		18,018,145
Bank and other loans, excluding current installments	$	5,643,578	$	7,000,974

Note 6: Bank and Other Loans Payable: Schedule of combined maturities of bank loans payable, lines of credit and notes and contracts payable (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

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

2013	$	6,266,765
2014		4,636,015
2015		598,975
2016		200,949
2017		161,704
Thereafter		45,935
Total	$	11,910,343

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds: Schedule of the components of the cemetery perpetual care obligation (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of the components of the cemetery perpetual care obligation

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

		December 31
		2012		2011
Trust investments, at market value	$	2,090,111	$	1,810,185
Note receivables from Cottonwood Mortuary
Singing Hills Cemetery and Memorial Estates - Pinehill
eliminated in consolidation		1,927,926		1,971,750
Total trust assets		4,018,037		3,781,935
Cemetery perpetual care obligation		(3,153,001)		(2,983,077)
Fair value of trust assets in excess of trust obligations	$	865,036	$	798,858

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

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

		December 31
		2012		2011
Cash and cash equivalents	$	2,205,312	$	1,765,415
Mutual funds		504,170		470,049
Fixed maturity securities		8,775		8,775
Equity securities		81,242		78,712
Participating in Mortgage loans with Security National Life		1,155,628		1,069,546
Total	$	3,955,127	$	3,392,497

Note 8: Income Taxes: Summary of Income Tax Liability (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Summary of Income Tax Liability

		December 31
		2012		2011
Current	$	613,328	$	(977,420)
Deferred		17,309,970		15,987,699
Total	$	17,923,298	$	15,010,279

Note 8: Income Taxes: Schedule of components of Deferred Tax Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of components of Deferred Tax Liabilities

		December 31
		2012		2011
Assets
Future policy benefits	$	(4,160,489)	$	(4,597,137)
Loan loss reserve		(2,353,765)		(1,210,791)
Unearned premium		(1,830,492)		(1,861,264)
Available for sale securities		(599,528)		(116,501)
Net operating loss		(1,099,500)		(1,235,365)
Deferred compensation		(1,238,270)		(766,503)
Deposit obligations		(1,060,205)		-
Other		(1,090,409)		(603,447)
Less: Valuation allowance		6,328,931		3,640,327
Total deferred tax assets		(7,103,727)		(6,750,681)

Liabilities
Deferred policy acquisition costs		9,945,683		9,526,785
Basis difference in property and equipment		5,739,272		3,917,124
Value of business acquired		3,341,888		4,077,709
Deferred gains		2,790,709		1,996,967
Trusts		1,599,657		2,385,770
Tax on unrealized appreciation		996,488		834,025
Total deferred tax liabilities		24,413,697		22,738,380
Net deferred tax liability	$	17,309,970	$	15,987,699

Note 8: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)


		2012		2011		2010
Current	$	2,707,962	$	130,526	$	171,133
Deferred		1,930,813		(192,731)		(829,929)
Total	$	4,638,775	$	(62,205)	$	(658,796)

Note 8: Income Taxes: Schedule Of Reconciliation Of Income Tax Expense At The US Federal Statutory Rates (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule Of Reconciliation Of Income Tax Expense At The US Federal Statutory Rates

		2012		2011		2010
Computed expense at statutory rate	$	7,472,953	$	410,225	$	(370,403)
Special deductions allowed
small life insurance companies		-		(503,672)		(351,847)
Other, net		(2,834,178)		31,242		63,454
Tax expense (benefit)	$	4,638,775	$	(62,205)	$	(658,796)

Note 9: Reinsurance, Commitments and Contingencies: Schedule of Non-Cancelable Leases (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Non-Cancelable Leases

Years Ending
December 31
2013	$	2,242,899
2014		1,756,656
2015		1,224,330
2016		1,032,881
2017		944,135
Total	$	7,200,901

Note 11: Capital Stock: Schedule of Activity in shares of capital stock (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Activity in shares of capital stock

	Class A	Class C
Balance at December 31, 2009	8,730,227	9,214,211

Exercise of stock options	10,174	-
Stock dividends	437,138	460,005
Conversion of Class C to Class A	1,406	(14,064)

Balance at December 31, 2010	9,178,945	9,660,152

Exercise of stock options	-	-
Stock dividends	459,168	482,675
Conversion of Class C to Class A	685	(6,851)

Balance at December 31, 2011	9,638,798	10,135,976

Exercise of stock options	685,753	318,912
Stock dividends	518,702	522,440
Conversion of Class C to Class A	323	(3,227)

Balance at December 31, 2012	10,843,576	10,974,101

Note 11: Capital Stock: Schedule of Basic and diluted earnings per share (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Basic and diluted earnings per share

	2012	2011	2010
Numerator:
Net earnings (loss)	$ 16,712,518	$ 1,298,758	$ (430,624)

Denominator:
Denominator for basic earnings
per share-weighted-average shares	10,134,728	9,893,962	9,688,067

Effect of dilutive securities
Employee stock options	543,566	107,947	-
Dilutive potential common shares	543,566	107,947	-

Denominator for diluted earnings (loss)
per share-adjusted weighted-average
shares and assumed conversions	10,678,294	10,001,909	9,688,067

Basic earnings (loss) per share	$1.65	$0.13	($0.04)
Diluted earnings (loss) per share	$1.57	$0.13	($0.04)

Note 12: Stock Compensation Plans: Schedule of Activity of the 1993 Plan (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Activity of the 1993 Plan

Activity of the 1993 Plan is summarized as follows:
	Number of Class A Shares		Option Price
Outstanding at December 31, 2009		291,950	$1.54 - $4.19
Adjustment for the effect of stock dividends		14,598
Exercised		-
Cancelled		-

Outstanding at December 31, 2010		306,548	$1.47 - $3.99
Adjustment for the effect of stock dividends		14,228
Exercised		-
Cancelled		(21,990)

Outstanding at December 31, 2011		298,786	$2.62 - $3.80
Adjustment for the effect of stock dividends		582
Exercised		(238,755)
Cancelled		(17,368)

Outstanding at December 31, 2012		43,245	$3.61 - $3.80

Exercisable at end of year		43,245	$3.61 - $3.80

Available options for future grant
1993 Stock Incentive Plan		-0-

Weighted average contractual term of options
outstanding at December 31, 2012		.22 years

Aggregated intrinsic value of options outstanding
at December 31, 2012		$199,519

Note 12: Stock Compensation Plans: Schedule of Activity of the 2000 Plan (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Activity of the 2000 Plan

Activity of the 2000 Plan is summarized as follows:
	Number of
	Class A Shares		Option Price
Outstanding at December 31, 2009		5,104	$2.45
Adjustment for the effect of stock dividends		-
Granted		-
Cancelled		(5,104)
Outstanding at December 31, 2010		-

Adjustment for the effect of stock dividends		-
Granted		-
Cancelled		-
Outstanding at December 31, 2011		-
Exercisable at end of year		-

Available options for future
grant 2000 Director Plan		-0-

Weighted average contractual term of options
outstanding at December 31, 2012		0

Aggregated intrinsic value of options outstanding
at December 31, 2012		$ -0-

Note 12: Stock Compensation Plans: Schedule of Activity of the 2003 Plan (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Activity of the 2003 Plan

	Number of Class A Shares		Number of Class C Shares(1)		Option Price(1)

Outstanding at December 31, 2009		1,007,971		2,274,624	$1.36 - $3.84
Adjustment for the effect of stock dividends		56,598		163,731
Granted		221,600		1,000,000
Exercised		(97,609)		-
Cancelled		-		-

Outstanding at December 31, 2010		1,188,560		3,438,355	$1.30 - $3.66
Adjustment for the effect of stock dividends		74,596		171,920
Granted		322,500		-
Exercised		-		-
Cancelled		(19,135)		-

Outstanding at December 31, 2011		1,566,521		3,610,275	$1.23 - $3.48
Adjustment for the effect of stock dividends		35,948		245,145
Granted		322,000		-
Exercised		(794,144)		(525,000)
Cancelled		(105,766)		-
Reclass from A to C		(250,808)		2,508,085

Outstanding at December 31, 2012		773,751		5,838,505	$1.17 - $3.31
					0
Exercisable at end of year		658,510		5,838,505	$1.17 - $3.31

Available options for future grant
2003 Stock Incentive Plan		1,443,579		782,924

Weighted average contractual term of options
outstanding at December 31, 2012		4.50 years		2.03 years

Aggregated intrinsic value of options
outstanding at December 31, 2012		$4,948,223		$3,598,618

(1) Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Option Price is based on Class A Common shares.

Note 12: Stock Compensation Plans: Schedule of Activity of the 2006 Plan (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Activity of the 2006 Plan

	Number of
	Class A Shares		Option Price
Outstanding at December 31, 2009		72,178	$1.28 - $4.37
Granted		24,000
Adjustment for the effect of stock dividends		4,809

Outstanding at December 31, 2010		100,987	$1.22 - $4.16
Granted		24,000
Adjustment for the effect of stock dividends		6,249

Outstanding at December 31, 2011		131,236	$1.16 - $3.96
Granted		25,000
Exercised		(8,377)
Adjustment for the effect of stock dividends		7,398

Outstanding at December 31, 2012		155,257	$1.10 - $7.05

Exercisable at end of year		139,507

Available options for future grant
2006 Stock Incentive Plan		29,214

Weighted average contractual term of options
outstanding at December 31, 2012	7.40 years

Aggregated intrinsic value of options
outstanding at December 31, 2012		$971,058

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of statutory accounting practices

	Net Income			Capital and Surplus
	2012	2011	2010	2012	2011
Amounts by insurance subsidiary:
Security National Life Insurance Company	$391,533	$(34,795)	$1,050,328	$29,828,732	$24,257,274

Memorial Insurance Company of America	159	(1,994)	22,274	1,084,067	1,084,635

Southern Security Life Insurance Company, Inc.	184	971	2,667	1,583,524	1,581,199

Trans-Western Life Insurance Company	2,113	-	-	495,972	-

Total	$393,989	$(35,818)	$1,075,269	$32,992,295	$26,923,108

Note 14: Business Segment Information: Schedule of Revenues and Expenses by Reportable Segment (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Revenues and Expenses by Reportable Segment

	2012
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$48,216,327	$10,864,497	$150,553,261	$-	$209,634,085
Net investment income	17,951,118	333,625	4,965,411	-	23,250,154
Realized gains (losses) on
investments and other assets	1,415,556	8,954	-	-	1,424,510
Other than temporary impairments	(1,207,632)	-	-	-	(1,207,632)
Other revenues	482,325	136,189	540,538	-	1,159,052
Intersegment revenues:
Net investment income	7,570,979	1,435,891	294,980	(9,301,850)	-
Total revenues	74,428,673	12,779,156	156,354,190	(9,301,850)	234,260,169
Expenses:
Death and other policy benefits	24,246,088	-	-	-	24,246,088
Increase in future policy benefits	21,435,191	-	-	-	21,435,191
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	5,137,586	311,843	-	-	5,449,429
Depreciation	315,960	426,006	516,131	-	1,258,097
General, administrative and
other costs:
Intersegment	24,000	102,726	137,696	(264,422)	-
Provision for loan losses	-	-	4,239,418	-	4,239,418
Costs related to funding mortgage
loans	-	-	6,931,045	-	6,931,045
Other	17,824,800	9,582,499	118,198,014	2	145,605,315
Interest expense:
Intersegment	694,442	1,681,987	6,661,001	(9,037,430)	-
Other	159,659	455,449	3,129,185	-	3,744,293
Total benefits and expenses	69,837,726	12,560,510	139,812,490	(9,301,850)	212,908,876
Earnings (losses) before income taxes	$4,590,947	$218,646	$16,541,700	$-	$21,351,293
Income tax (expense) benefit	1,755,258	-	(6,394,033)	-	(4,638,775)
Net earnings (losses)	$6,346,205	$218,646	$10,147,667	$-	$16,712,518

Identifiable assets	$558,845,424	$116,368,747	$55,613,678	$(133,611,226)	$597,216,623

Goodwill	$391,848	$285,191	$-	$-	$677,039

Expenditures for long-lived assets	$400,605	$689,154	$2,131,861	$-	$3,221,620

	2011
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$48,457,405	$10,761,469	$77,605,105	$-	$136,823,979
Net investment income	17,295,982	159,186	2,555,536	-	20,010,704
Realized gains (losses) on
investments and other assets	1,596,127	868,226	-	-	2,464,353
Other than temporary impairments	(840,735)	-	-	-	(840,735)
Other revenues	712,400	147,830	248,739	-	1,108,969
Intersegment revenues:
Net investment income	5,832,691	1,691,197	258,062	(7,781,950)	-
Total revenues	73,053,870	13,627,908	80,667,442	(7,781,950)	159,567,270
Expenses:
Death and other policy benefits	23,945,720	-	-	-	23,945,720
Increase in future policy benefits	22,258,241	-	-	-	22,258,241
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	5,396,016	373,332	-	-	5,769,348
Depreciation	479,634	520,015	499,389	-	1,499,038
General, administrative and
other costs:
Intersegment	24,000	103,494	130,011	(257,505)	-
Provision for loan losses	-	-	2,070,399	-	2,070,399
Costs related to funding mortgage
loans	-	-	4,240,377	-	4,240,377
Other	17,472,713	9,827,197	69,286,435	-	96,586,345
Interest expense:
Intersegment	668,047	1,905,559	4,950,839	(7,524,445)	-
Other	111,221	437,736	1,412,292	-	1,961,249
Total benefits and expenses	70,355,592	13,167,333	82,589,742	(7,781,950)	158,330,717
Earnings (losses) before income taxes	$2,698,278	$460,575	$(1,922,300)	$-	$1,236,553
Income tax (expense) benefit	(734,626)	-	796,831	-	62,205
Net earnings (losses)	$1,963,652	$460,575	$(1,125,469)	$-	$1,298,758

Identifiable assets	$504,744,743	$116,453,434	$27,913,480	$(126,061,216)	$523,050,441

Goodwill	$391,848	$285,191	$-	$-	$677,039

Expenditures for long-lived assets	$136,742	$255,116	$373,775	$-	$765,633

	2010
	Life	Cemetery/		Reconciling
	Insurance	Mortuary	Mortgage	Items	Consolidated
Revenues:
From external sources:
Revenue from customers	$38,509,198	$11,520,369	$97,342,215	$-	$147,371,782
Net investment income	14,738,200	63,574	3,814,210	-	18,615,984
Realized gains on
investments and other assets	1,642,174	(26,756)	-	-	1,615,418
Other than temporary impairments	(673,981)	-	-	-	(673,981)
Other revenues	1,039,016	256,862	285,237	-	1,581,115
Intersegment revenues:
Net investment income	6,817,008	1,678,096	244,578	(8,739,682)	-
Total revenues	62,071,615	13,492,145	101,686,240	(8,739,682)	168,510,318
Expenses:
Death and other policy benefits	20,925,988	-	-	-	20,925,988
Increase in future policy benefits	17,020,086	-	-	-	17,020,086
Amortization of deferred policy and preneed acquisition costs and
value of business acquired	4,058,514	372,562	-	-	4,431,076
Depreciation	559,999	631,281	620,652	-	1,811,932
General, administrative and
other costs:
Intersegment	24,000	109,128	185,147	(318,275)	-
Provision for loan losses	-	-	5,404,645	-	5,404,645
Costs related to funding mortgage
loans	-	-	6,044,020	-	6,044,020
Other	16,756,255	11,097,302	83,329,514	-	111,183,071
Interest expense:
Intersegment	686,384	1,792,479	5,942,544	(8,421,407)	-
Other	179,891	475,372	2,123,657	-	2,778,920
Total benefits and expenses	60,211,117	14,478,124	103,650,179	(8,739,682)	169,599,738
Earnings (losses) before income taxes	$1,860,498	$(985,979)	$(1,963,939)	$-	$(1,089,420)
Income tax (expense) benefit	(97,410)	-	756,206	-	658,796
Net earnings (losses)	$1,763,088	$(985,979)	$(1,207,733)	$-	$(430,624)

Identifiable assets	$441,751,653	$111,798,118	$30,323,496	$(116,860,777)	$467,012,490

Goodwill	$391,848	$683,191	$-	$-	$1,075,039

Expenditures for long-lived assets	$220,417	$275,904	$363,667	$-	$859,988

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

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

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

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Non-redeemable preferred stock	$18,795	$18,795	$-	$-
Common stock	5,386,317	5,386,317	-	-
Total securities available for sale	5,405,112	5,405,112	-	-
Restricted assets of cemeteries and mortuaries	585,412	585,412
Cemetery perpetual care trust investments	626,048	626,048	-	-
Derivatives - interest rate lock commitments	3,127,689	-	-	3,127,689
Total assets accounted for at fair value on a recurring basis	$9,744,261	$6,616,572	$-	$3,127,689

Liabilities accounted for at fair value on a recurring basis
Policyholder account balances	$(49,746,337)	$-	$-	$(49,746,337)
Future policy benefits - annuities	(65,171,687)	-	-	(65,171,687)
Derivatives - bank loan interest rate swaps	(93,572)	-	-	(93,572)
- call options	(126,215)	(126,215)	-	-
- interest rate lock commitments	(166,224)	-	-	(166,224)
Total liabilities accounted for at fair value on a recurring basis	$(115,304,035)	$(126,215)	$-	$(115,177,820)

as of December 31, 2011

Tables/Schedules

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

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Non-redeemable preferred stock	$18,438	$18,438	$-	$-
Common stock	6,280,954	6,280,954	-	-
Total securities available for sale	6,299,392	6,299,392	-	-
Restricted assets of cemeteries and mortuaries	548,761	548,761
Cemetery perpetual care trust investments	617,107	617,107	-	-
Derivatives - interest rate lock commitments	1,904,901	-	-	1,904,901
Total assets accounted for at fair value on a recurring basis	$9,370,161	$7,465,260	$-	$1,904,901

Liabilities accounted for at fair value on a recurring basis
Policyholder account balances	$(50,926,020)	$-	$-	$(50,926,020)
Future policy benefits - annuities	(65,281,586)	-	-	(65,281,586)
Derivatives - bank loan interest rate swaps	(117,812)	-	-	(117,812)
- call options	(80,102)	(80,102)	-	-
- interest rate lock commitments	(210,360)	-	-	(210,360)
Total liabilities accounted for at fair value on a recurring basis	$(116,615,880)	$(80,102)	$-	$(116,535,778)

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

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

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

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

	Policyholder Account Balances	Future Policy Benefits - Annuities	Interest Rate Lock Commitments	Bank Loan Interest Rate Swaps

Balance - December 31, 2011	$(50,926,020)	$(65,281,586)	$1,694,541	$(117,812)

Total Losses (Gains):

Included in earnings	1,179,683	109,899	-	-

Included in other
comprehensive income (loss)	-	-	1,266,924	24,240

Balance - December 31, 2012	$(49,746,337)	$(65,171,687)	$2,961,465	$(93,572)

as of December 31, 2011

Tables/Schedules

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

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

	Policyholder Account Balances	Future Policy Benefits - Annuities	Interest Rate Lock Commitments	Bank Loan Interest Rate Swaps

Balance - December 31, 2010	$(52,340,807)	$(65,936,445)	$873,059	$(116,533)

Total Losses (Gains):

Included in earnings	1,414,787	654,859	-	-

Included in other comprehensive income (loss)	-	-	821,482	(1,279)

Balance - December 31, 2011	$(50,926,020)	$(65,281,586)	$1,694,541	$(117,812)

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

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

Fair Value Assets Measured on a Nonrecurring Basis

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Mortgage servicing rights	$2,797,470			$2,797,470
Mortgage loans on real estate	4,621,500	-	-	4,621,500
Other real estate owned held for investment	985,219	-	-	985,219
Total assets accounted for at fair value on a nonrecurring basis	$8,404,189	$-	$-	$8,404,189

as of December 31, 2011

Tables/Schedules

Fair Value Assets Measured on a Nonrecurring Basis

	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Mortgage loans on real estate	$5,354,600	-	-	$5,354,600
Other real estate ownd held for investment	5,419,103	-	-	5,419,103
Other real estate owned held for sale	514,000	-	-	514,000
Total assets accounted for at fair value on a nonrecurring basis	$11,287,703	$-	$-	$11,287,703

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Changes in accumulated other comprehensive income

	December 31
	2012	2011
Unrealized gains (losses) on available for-sale securities	$ (28,700)	$ (1,698,175)
Reclassification adjustment for net realized gains in net income	386,328	472,038
Net unrealized gains (losses) before taxes	357,628	(1,226,137)
Tax (expense) benefit	70,120	150,999
Net	427,748	(1,075,138)
Potential unrealized gains (losses) for derivative bank loans (interest rate swaps) before taxes	24,240	(1,279)
Tax (expense) benefit	(8,242)	435
Net	15,998	(844)
Potential unrealized gains (losses) for derivative mortgage loans before taxes	1,266,924	821,483
Tax (expense) benefit	(430,754)	(279,304)
Net	836,170	542,179
Other comprehensive income changes	$ 1,279,916	$ (533,803)

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

12 Months Ended

Dec. 31, 2012

AsOfDecember312012Member

Tables/Schedules

Accumulated Balances of Other Comprehensive Income

	Beginning Balance December 31, 2011	Change for the period	Ending Balance December 31, 2012
Unrealized net gains on available-for-sale securities and trust investments	$ (386,198)	$ 427,748	$ 41,550

Unrealized gains on derivative mortgage loans	1,118,397	836,170	1,954,567

Unrealized gains ( losses) on derivative bank loan interest rate swaps	(77,756)	15,998	(61,758)
Other comprehensive income	$ 654,443	$ 1,279,916	$ 1,934,359

as of December 31, 2011

Tables/Schedules

Accumulated Balances of Other Comprehensive Income

	Beginning Balance December 31, 2010	Change for the period	Ending Balance December 31, 2011
Unrealized net gains on available-for-sale securities and trust investments	$ 688,940	$ (1,075,138)	$ (386,198)

Unrealized gains on derivative mortgage loans	576,218	542,179	1,118,397

Unrealized gains ( losses) on derivative bank loan interest rate swaps	(76,912)	(844)	(77,756)
Other comprehensive income	$ 1,188,246	$ (533,803)	$ 654,443

Note 18: Derivative Commitments: Schedule of Derivative Assets at Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Derivative Assets at Fair Value

Fair Value of Derivative Instruments

Asset Derivatives

Liability Derivatives

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

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

$3,127,689

other assets

$ 1,904,901

Other liabilities

$166,224

Other liabilities

$210,360

Call Options

Other liabilities

126,215

Other liabilities

80,102

Interest rate swaps

Bank loans payable

93,572

Bank loans payable

117,812

Total

$3,127,689

$ 1,904,901

$386,011

$408,274

Note 18: Derivative Commitments: Schedule of Gains and Losses on Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Gains and Losses on Derivatives

	Net Amount Gain (Loss) Recognized in OCI
	Years ended December 31
Derivative - Cash Flow Hedging Relationships:	2012	2011
Interest Rate Lock Commitments	$ 1,266,924	$ 821,482
Interest Rate Swaps	24,240	(1,279)
Sub Total	1,291,164	820,203
Tax Effect	438,996	278,868
Total	$ 852,168	$ 541,335

19) Acquisitions: The Estimated Fair Values of The Assets Acquired and The Liabilities Assumed At The Date of Acquisition Were As Follows (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

The Estimated Fair Values of The Assets Acquired and The Liabilities Assumed At The Date of Acquisition Were As Follows:

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

Cash	$ 313,616
Receivables, net	186,487
Receivable from reinsurers	7,422,999
Total assets acquired	7,923,102
Future life, annuity, and other benefits	(7,422,999)
Other liabilities and accrued expenses	(5,896)
Total liabilities assumed	(7,428,895)
Fair value of net assets acquired	$ 494,207

19) Acquisitions: Acquisition of Trans-Western Pro Forma (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Acquisition of Trans-Western Pro Forma

	For the Year Ended, December 31 (unaudited)
	2012	2011	2010
Total revenues	$ 234,268,496	$ 159,620,617	$ 168,615,765
Net earnings	$ 16,713,955	$ 1,314,026	$ (402,460)
Net earnings per Class A equivalent common share	$ 1.65	$ 0.13	$ (0.04)
Net earnings per Class A equivalent common share
assuming dilution	$ 1.57	$ 0.13	$ (0.04)

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

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of mortgage servicing rights

The Company did not have MSRs before the year ended December 31, 2012. The following table presents the MSR activity for 2012.

	December 31, 2012
Amortized cost:
Balance before valuation allowance at beginning of year	$ -
MSRs received as proceeds from loan sales	2,797,470
Amortization	-
Application of valuation allowance to write down MSRs with other than temporary impairment	-
Balance before valuation allowance at year end	$ 2,797,470

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

Mortgage servicing rights, net	$ 2,797,470

Estimated fair value of MSRs at year end	$ 2,797,470

20) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights Amortization (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Mortgage Servicing Rights Amortization

		Estimated MSR Amortization
2013		$ 310,830
2014		310,830
2015		310,830
2016		310,830
2017		310,830
Thereafter		$ 1,243,320
Total		$ 2,797,470

21) Quarterly Financial Data (unaudited): Schedule of quarterly financial data (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of quarterly financial data

	2012
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 47,323,223	$ 56,528,210	$ 63,747,903	$ 66,660,832
Benefits and expenses	44,994,631	51,491,833	57,615,608	58,806,804
Earnings (loss) before income taxes	2,328,592	5,036,377	6,132,295	7,854,029
Income tax benefit (expense)	(666,409)	(1,443,345)	(2,142,249)	(386,772)
Net earnings (loss)	1,662,183	3,593,032	3,990,046	7,467,257
Net earnings (loss) per common share	$0.18	$0.38	$0.42	$0.76
Net earnings (loss) per common share assuming dilution	$0.17	$0.36	$0.38	$0.69

	2011
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 34,172,180	$ 36,466,418	$ 41,324,687	$ 47,603,985
Benefits and expenses	35,494,762	36,325,240	40,490,197	46,020,518
Earnings (loss) before income taxes	(1,322,582)	141,178	834,490	1,583,467
Income tax benefit (expense)	804,109	63,689	(64,168)	(741,425)
Net earnings (loss)	(518,473)	204,867	770,322	842,042
Net earnings (loss) per common share	($0.06)	$0.02	$0.09	$0.09
Net earnings (loss) per common share assuming dilution	($0.06)	$0.02	$0.09	$0.09

	2010
	Three Months Ended
	March 31	June 30	September 30	December 31
Revenues	$ 37,967,127	$ 43,048,988	$ 45,974,697	$ 41,519,506
Benefits and expenses	39,640,041	42,964,207	45,161,511	41,833,979
Earnings (loss) before income taxes	(1,672,914)	84,781	813,186	(314,473)
Income tax benefit (expense)	721,681	334,638	(309,757)	(87,766)
Net earnings (loss)	(951,233)	419,419	503,429	(402,239)
Net earnings (loss) per common share	($0.11)	$0.05	$0.06	($0.05)
Net earnings (loss) per common share assuming dilution	($0.11)	$0.05	$0.06	($0.05)

Note 1: Significant Accounting Policies: Advertising Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Advertising Expense	$ 4,065,000	$ 2,237,000	$ 2,122,000

Note 2: Investments: Held-to-maturity Securities (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 129,449,410	$ 127,579,087
Held-to-maturity Securities, Unrecognized Holding Gain	17,456,239	11,363,722
Held-to-maturity Securities, Unrecognized Holding Loss	(688,560)	(2,767,401)
HeldToMaturitySecuritiesEstimatedFairValue	146,217,089	136,175,408
US Treasury and Government
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,602,589	2,820,159
Held-to-maturity Securities, Unrecognized Holding Gain	514,572	551,740
HeldToMaturitySecuritiesEstimatedFairValue	3,117,161	3,371,899
US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,040,277	3,024,425
Held-to-maturity Securities, Unrecognized Holding Gain	285,241	309,986
Held-to-maturity Securities, Unrecognized Holding Loss	(3,982)	(13,156)
HeldToMaturitySecuritiesEstimatedFairValue	2,321,536	3,321,255
Corporate Debt Securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	118,285,147	113,648,447
Held-to-maturity Securities, Unrecognized Holding Gain	16,230,468	10,075,071
Held-to-maturity Securities, Unrecognized Holding Loss	(607,322)	(2,268,146)
HeldToMaturitySecuritiesEstimatedFairValue	133,908,293	121,455,372
Collateralized Mortgage Backed Securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	5,010,519	6,575,178
Held-to-maturity Securities, Unrecognized Holding Gain	327,871	354,286
Held-to-maturity Securities, Unrecognized Holding Loss	(76,056)	(356,899)
HeldToMaturitySecuritiesEstimatedFairValue	5,262,334	6,572,565
Redeemable Preferred Stock
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	1,510,878	1,510,878
Held-to-maturity Securities, Unrecognized Holding Gain	98,087	72,639
Held-to-maturity Securities, Unrecognized Holding Loss	(1,200)	(129,200)
HeldToMaturitySecuritiesEstimatedFairValue	$ 1,607,765	$ 1,454,317

Note 2: Investments: Available-for-sale Securities (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Available-for-sale Securities, Amortized Cost Basis	$ 6,067,755	$ 7,271,272
Available-for-sale Securities, Gross Unrealized Gains	309,752	363,387
Available-for-sale Securities, Gross Unrealized Loss	(972,395)	(1,335,267)
AvailableForSaleSecuritiesEstimatedFairValue	5,405,112	6,299,392
Mortgage loans on real estate and construction	84,462,205	115,155,967
Mortgage loans on real estate and construction, allowance for losses	(4,239,861)	(4,881,173)
Real estate held for investment, net of depreciation	3,543,751	3,786,780
Other real estate owned, held for investment, net of depreciation	55,027,669	46,398,095
Other real estate owned held for sale	5,682,610	5,793,900
Real estate held	64,254,030	55,978,775
Loans Held-for-sale, Consumer, Installment, Student	20,188,516	18,463,277
Short-term investments at amortized cost	40,925,390	6,932,023
Residential Mortgage
Mortgage loans on real estate and construction	50,584,923	54,344,327
Residential Construction
Mortgage loans on real estate and construction	3,161,112	17,259,666
Commercial Loan
Mortgage loans on real estate and construction	34,956,031	48,433,147
Nonredeemable Preferred Stock
Available-for-sale Securities, Amortized Cost Basis	20,281	20,281
Available-for-sale Securities, Gross Unrealized Loss	(1,486)	(1,843)
AvailableForSaleSecuritiesEstimatedFairValue	18,795	18,438
Common Stock
Available-for-sale Securities, Amortized Cost Basis	6,047,474
AvailableForSaleSecuritiesEstimatedFairValue	5,386,317
Industrial, miscellaneous and all other equity securities
Available-for-sale Securities, Amortized Cost Basis	6,047,474	7,250,991
Available-for-sale Securities, Gross Unrealized Gains	309,752	363,387
Available-for-sale Securities, Gross Unrealized Loss	(970,909)	(1,333,424)
AvailableForSaleSecuritiesEstimatedFairValue	5,386,317	6,280,954
Equity Securities
Available-for-sale Securities, Amortized Cost Basis	6,067,755	7,271,272
Available-for-sale Securities, Gross Unrealized Gains	309,752	363,387
Available-for-sale Securities, Gross Unrealized Loss	(972,395)	(1,335,266)
AvailableForSaleSecuritiesEstimatedFairValue	$ 5,405,112	$ 6,299,392

Note 2: Investments: Schedule of Unrealized Loss on Investments (Details)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Held-to-maturity Securities, Unrecognized Holding Loss	$ 688,560	$ 2,767,401
Held-to-maturity Securities, Fair Value	8,581,359	28,012,425
Available-for-sale Securities, Gross Unrealized Loss	972,395	1,335,267
Available-for-sale Securities, Fair Value Disclosure	2,915,974	3,417,611
Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss	1,200	129,200
US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	3,982	13,156
Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	607,322	2,268,146
Collateralized Mortgage Backed Securities
Held-to-maturity Securities, Unrecognized Holding Loss	76,056	356,899
Nonredeemable Preferred Stock
Available-for-sale Securities, Gross Unrealized Loss	1,486	1,843
Industrial, miscellaneous and all other equity securities
Available-for-sale Securities, Gross Unrealized Loss	970,909	1,333,424
Equity Securities
Available-for-sale Securities, Gross Unrealized Loss	972,395	1,335,266
Less than 12 months
Held-to-maturity Securities, Unrecognized Holding Loss	$ 192,862	$ 1,706,324
No. of Investment Positions	17	51
Held-to-maturity Securities, Fair Value	$ 4,609,268	$ 24,249,533
Available-for-sale Securities, Fair Value Disclosure	1,422,436	2,857,082
Less than 12 months \| Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss	$ 1,200	$ 800
No. of Investment Positions	1	1
Less than 12 months \| Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	$ 191,662	$ 1,544,224
No. of Investment Positions	16	47
Less than 12 months \| Collateralized Mortgage Backed Securities
Held-to-maturity Securities, Unrecognized Holding Loss		$ 161,300
No. of Investment Positions		3
Less than 12 months \| Nonredeemable Preferred Stock
No. of Investment Positions	1
Available-for-sale Securities, Gross Unrealized Loss	$ 686
Less than 12 months \| Industrial, miscellaneous and all other equity securities
No. of Investment Positions	39	79
Available-for-sale Securities, Gross Unrealized Loss	$ 236,293	$ 955,400
Less than 12 months \| Equity Securities
No. of Investment Positions	40	79
Available-for-sale Securities, Gross Unrealized Loss	$ 236,979	$ 955,400
More than 12 months
Held-to-maturity Securities, Unrecognized Holding Loss	$ 495,698	$ 1,061,077
No. of Investment Positions	14	16
Held-to-maturity Securities, Fair Value	$ 3,972,091	$ 3,762,892
Available-for-sale Securities, Fair Value Disclosure	1,493,538	560,529
More than 12 months \| Redeemable Preferred Stock
Held-to-maturity Securities, Unrecognized Holding Loss		$ 128,400
No. of Investment Positions		1
More than 12 months \| US States and Political Subdivisions Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	$ 3,982	$ 13,156
No. of Investment Positions	2	2
More than 12 months \| Corporate Debt Securities
Held-to-maturity Securities, Unrecognized Holding Loss	$ 415,660	$ 723,922
No. of Investment Positions	9	12
More than 12 months \| Collateralized Mortgage Backed Securities
Held-to-maturity Securities, Unrecognized Holding Loss	$ 76,056	$ 195,599
No. of Investment Positions	3	1
More than 12 months \| Nonredeemable Preferred Stock
No. of Investment Positions	1	2
Available-for-sale Securities, Gross Unrealized Loss	$ 800	$ 1,843
More than 12 months \| Industrial, miscellaneous and all other equity securities
No. of Investment Positions	44	14
Available-for-sale Securities, Gross Unrealized Loss	$ 734,616	$ 378,024
More than 12 months \| Equity Securities
No. of Investment Positions	45	16
Available-for-sale Securities, Gross Unrealized Loss	$ 735,416	$ 379,868

Note 2: Investments: Fixed Maturity Securities - Additional (Details) - Fixed Maturities - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Average market value over amortized cost	92.60%	91.00%
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities	$ 165,000	$ 125,129	$ 150,059

- Definition

The amount of other than temporary impairment losses on investments in debt and equity securities categorized as Available-for-sale which have been recognized in earnings during the period. Such impairment losses consist of other than temporary impairments (OTTI) on equity securities, credit losses on investments in debt securities, and when the entity intends to sell an impaired debt security or it is more likely than not that the entity will be required to sell the impaired debt security before recovery of its amortized cost basis.

+ References + Details

Note 2: Investments: Equity Securities - Additional (Details) - Equity Securities - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Average Market Value of Security over initial investment	75.00%	71.90%
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities	$ 247,317	$ 52,775	$ 23,922

- Definition

+ References + Details

Note 2: Investments: Investments Classified by Contractual Maturity Date (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 129,449,410	$ 127,579,087
HeldToMaturitySecuritiesEstimatedFairValue	146,217,089	136,175,408
Available-for-sale Securities, Amortized Cost Basis	6,067,755	7,271,272
AvailableForSaleSecuritiesEstimatedFairValue	5,405,112	6,299,392
Collateralized Mortgage Backed Securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	5,010,519	6,575,178
HeldToMaturitySecuritiesEstimatedFairValue	5,262,334	6,572,565
Redeemable Preferred Stock
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	1,510,878	1,510,878
HeldToMaturitySecuritiesEstimatedFairValue	1,607,765	1,454,317
Nonredeemable Preferred Stock
Available-for-sale Securities, Amortized Cost Basis	20,281	20,281
AvailableForSaleSecuritiesEstimatedFairValue	18,795	$ 18,438
Common Stock
Available-for-sale Securities, Amortized Cost Basis	6,047,474
AvailableForSaleSecuritiesEstimatedFairValue	5,386,317
Due in 2013
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	1,700,455
HeldToMaturitySecuritiesEstimatedFairValue	1,768,905
DueIn2014Through2017Member
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	20,923,480
HeldToMaturitySecuritiesEstimatedFairValue	23,120,438
DueIn2018Through2022Member
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	45,399,136
HeldToMaturitySecuritiesEstimatedFairValue	51,113,794
DueAfter2022Member
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	54,904,942
HeldToMaturitySecuritiesEstimatedFairValue	$ 63,343,853

Note 2: Investments: Gain (Loss) on Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Categories of Investments, Marketable Securities, Held-to-maturity Securities
Gross Realized Gains	$ 470,874	$ 939,672	$ 1,300,187
Gross Realized Losses	(3,875)	(162,716)	(494,678)
Other than Temporary Impairments	(165,000)	(125,129)	(150,059)
Categories of Investments, Marketable Securities, Available-for-sale Securities
Gross Realized Gains	392,033	590,455	686,788
Gross Realized Losses	(5,705)	(118,417)	(61,530)
Other than Temporary Impairments	(247,317)	(52,775)	(23,922)
Other Assets
Gross Realized Gains	794,346	1,295,217	393,943
Gross Realized Losses	(223,163)	(79,858)	(209,292)
Other than Temporary Impairments	$ (795,315)	$ (662,831)	$ (500,000)

Note 2: Investments: Fixed Maturity Securities - Carrying Amount and Net Realized Gain (Details) - Categories of Investments, Marketable Securities, Held-to-maturity Securities - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net carrying amount for sales of securities	$ 2,174,300	$ 12,341,156	$ 16,220,943
Net realized gain related to sales of securities	$ 271,364	$ 530,637	$ 346,225

Note 2: Investments: Schedule of Major categories of net investment income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Gross Investment Income	$ 29,347,536	$ 25,730,087	$ 24,309,679
Investment Income, Investment Expense	(6,097,382)	(5,719,383)	(5,693,695)
Net Investment Income	23,250,154	20,010,704	18,615,984
Fixed Maturities
Gross Investment Income	7,731,051	7,762,894	6,761,254
Equity Securities
Gross Investment Income	264,063	272,011	238,929
Collateralized Mortgage Backed Securities
Gross Investment Income	6,878,354	6,863,026	6,154,760
Real Estate
Gross Investment Income	4,927,128	3,741,263	3,040,864
Policy, Student and other loans
Gross Investment Income	830,683	835,312	897,945
Short-term investments, principally gains on sale of mortgage loans
Gross Investment Income	$ 8,716,257	$ 6,255,581	$ 7,215,927

Note 2: Investments: Net Investment Income - Additional (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net Investment Income	$ 23,250,154	$ 20,010,704	$ 18,615,984
Securities on deposit for regulatory authorities	9,190,012	9,593,318
Cemeteries and mortuaries
Net Investment Income	$ 643,283	$ 626,688	$ 635,652

Note 2: Investments: Mortgage Loans - Additional (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Mortgage loans on real estate balances, net of allowance for losses	$ 4,239,861	$ 4,881,173
Minimum
Mortgage Loan, Interest Rate	2.00%
Maximum
Mortgage Loan, Interest Rate	10.50%

Note 2: Investments: The Following Is A Summary of The Allowance For Loan Losses As A Contra-asset Account For The Periods Presented (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses, Beginning Balance	$ 4,881,173	$ 7,070,442
Allowance for credit losses, Charge-offs	(1,075,141)	(3,424,989)
Allowance for credit losses, Provision	433,829
Financing Receivable, Allowance for Credit Losses, Ending Balance	4,239,861	4,881,173
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	692,199	989,499
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,547,662	3,891,674
Mortgage loans	88,702,066	120,037,140
Financing Receivable, Individually Evaluated for Impairment	6,038,643	13,016,095
Financing Receivable, Collectively Evaluated for Impairment	82,663,423	107,021,045
Allowance fo Credit losses, other charge-offs		1,235,720
Commercial Loan
Mortgage loans	34,956,031	48,433,147
Financing Receivable, Individually Evaluated for Impairment		2,758,235
Financing Receivable, Collectively Evaluated for Impairment	34,956,031	45,674,912
Residential Mortgage
Financing Receivable, Allowance for Credit Losses, Beginning Balance	4,338,805	6,212,072
Allowance for credit losses, Charge-offs	(560,699)	(2,994,715)
Allowance for credit losses, Provision	415,568
Financing Receivable, Allowance for Credit Losses, Ending Balance	4,193,674	4,338,805
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	692,199	738,975
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,501,475	3,599,830
Mortgage loans	50,584,923	54,344,327
Financing Receivable, Individually Evaluated for Impairment	4,692,517	4,611,995
Financing Receivable, Collectively Evaluated for Impairment	45,892,406	49,732,332
Allowance fo Credit losses, other charge-offs		1,121,448
Residential Construction
Financing Receivable, Allowance for Credit Losses, Beginning Balance	542,368	858,370
Allowance for credit losses, Charge-offs	(514,442)	(430,274)
Allowance for credit losses, Provision	18,261
Financing Receivable, Allowance for Credit Losses, Ending Balance	46,187	542,368
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		250,524
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	46,187	291,844
Mortgage loans	3,161,112	17,259,666
Financing Receivable, Individually Evaluated for Impairment	1,346,126	5,645,865
Financing Receivable, Collectively Evaluated for Impairment	$ 1,814,986	11,613,801
Allowance fo Credit losses, other charge-offs		$ 114,272

Note 2: Investments: Schedule of aging of mortgage loans (Details) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Mortgage Loans during period

$ 88,702,066

$ 120,037,140

Mortgage Loans, Allowance for Loan Losses

(4,239,861)

(4,881,173)

Mortgage Loans, Net

84,462,205

115,155,967

Commercial Loan

Mortgage Loans during period

34,956,031

48,433,147

Mortgage Loans, Allowance for Loan Losses

Mortgage Loans, Net

34,956,031

48,433,147

Residential Mortgage

Mortgage Loans during period

50,584,923

54,344,327

Mortgage Loans, Allowance for Loan Losses

(4,193,674)

(4,338,805)

Mortgage Loans, Net

46,391,249

50,005,522

Residential Construction

Mortgage Loans during period

3,161,112

17,259,666

Mortgage Loans, Allowance for Loan Losses

(46,187)

(542,368)

Mortgage Loans, Net

3,114,925

16,717,298

Past due 30 to 59 days

Mortgage Loans during period

3,545,243

3,337,735

Past due 30 to 59 days | Commercial Loan

Mortgage Loans during period

581,984

Past due 30 to 59 days | Residential Mortgage

Mortgage Loans during period

2,963,259

2,478,084

Past due 30 to 59 days | Residential Construction

Mortgage Loans during period

859,651

Past due 60 to 89 days

Mortgage Loans during period

1,345,247

2,740,793

Past due 60 to 89 days | Commercial Loan

Mortgage Loans during period

Past due 60 to 89 days | Residential Mortgage

Mortgage Loans during period

1,345,247

2,058,261

Past due 60 to 89 days | Residential Construction

Mortgage Loans during period

682,532

Past due 90 or more days

Mortgage Loans during period

^[1]

5,640,462

6,863,491

Past due 90 or more days | Commercial Loan

Mortgage Loans during period

^[1]

143,252

1,053,500

Past due 90 or more days | Residential Mortgage

Mortgage Loans during period

^[1]

5,208,742

5,500,340

Past due 90 or more days | Residential Construction

Mortgage Loans during period

^[1]

288,468

309,651

In Foreclosure

Mortgage Loans during period

^[1]

6,038,643

13,016,095

In Foreclosure | Commercial Loan

Mortgage Loans during period

^[1]

2,758,235

In Foreclosure | Residential Mortgage

Mortgage Loans during period

^[1]

4,692,517

4,611,995

In Foreclosure | Residential Construction

Mortgage Loans during period

^[1]

1,346,126

5,645,865

Total Past Due

Mortgage Loans during period

16,569,595

25,958,114

Total Past Due | Commercial Loan

Mortgage Loans during period

725,236

3,811,735

Total Past Due | Residential Mortgage

Mortgage Loans during period

14,209,765

14,648,680

Total Past Due | Residential Construction

Mortgage Loans during period

1,634,594

7,497,699

Current

Mortgage Loans during period

72,132,471

94,079,026

Current | Commercial Loan

Mortgage Loans during period

34,230,795

44,621,412

Current | Residential Mortgage

Mortgage Loans during period

36,375,158

39,695,647

Current | Residential Construction

Mortgage Loans during period

$ 1,526,518

$ 9,761,967

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

Note 2: Investments: Schedule of Impaired Mortgage Loans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Commercial Loan
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 143,252	$ 3,811,735
Impaired Financing Receivable, Average Recorded Investment	143,252	3,811,735
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		3,811,735
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		3,811,735
Impaired Financing Receivable, Unpaid Principal Balance		3,811,735
Residential Mortgage
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	5,208,742	5,500,340
Impaired Financing Receivable, with Related Allowance, Recorded Investment	4,692,517	4,611,995
Impaired Financing Receivable, Average Recorded Investment	9,901,259	10,112,335
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		5,500,340
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		5,500,340
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		4,611,995
Impaired Financing Receivable, Related Allowance		738,975
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		4,611,995
Impaired Financing Receivable, Unpaid Principal Balance		10,112,335
Residential Construction
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,634,594	309,651
Impaired Financing Receivable, with Related Allowance, Recorded Investment		5,645,865
Impaired Financing Receivable, Average Recorded Investment	$ 1,634,594	5,955,516
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		309,651
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		309,651
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		5,645,865
Impaired Financing Receivable, Related Allowance		250,524
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		5,645,865
Impaired Financing Receivable, Unpaid Principal Balance		$ 5,955,516

Note 2: Investments: The Company's Performing and Non-performing Mortgage Loans Were As Follows (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Mortgage loans	$ 88,702,066	$ 120,037,140
Performing Financing Receivable
Mortgage loans	77,022,961	100,157,554
Nonperforming Financing Receivable
Mortgage loans	11,679,105	19,879,586
Commercial Loan
Mortgage loans	34,956,031	48,433,147
Commercial Loan \| Performing Financing Receivable
Mortgage loans	34,812,779	44,621,412
Commercial Loan \| Nonperforming Financing Receivable
Mortgage loans	143,252	3,811,735
Residential Mortgage
Mortgage loans	50,584,923	54,344,327
Residential Mortgage \| Performing Financing Receivable
Mortgage loans	40,683,664	44,231,992
Residential Mortgage \| Nonperforming Financing Receivable
Mortgage loans	9,901,259	10,112,335
Residential Construction
Mortgage loans	3,161,112	17,259,666
Residential Construction \| Performing Financing Receivable
Mortgage loans	1,526,518	11,304,150
Residential Construction \| Nonperforming Financing Receivable
Mortgage loans	$ 1,634,594	$ 5,955,516

Note 2: Investments: Summary of Interest not accrued on non-performing mortgage loans (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Interest not acrued on non-performing loans	$ 1,925,000	$ 2,023,000

Note 2: Investments: Schedule of Mortgate loans on a nonaccrual status (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 11,679,105	$ 19,879,586
Commercial Loan
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	143,252	3,811,735
Residential Mortgage
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	9,901,259	10,112,335
Residential Construction
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 1,634,594	$ 5,955,516

Note 2: Investments: Schedule of Principal amounts due on mortgage loans on real estate and construction loans held for investment by category (Details)	Dec. 31, 2012 USD ($)
Mortgage Loans Principal Amount due	$ 88,702,066
Residential Mortgage
Mortgage Loans Principal Amount due	50,584,923
Residential Construction
Mortgage Loans Principal Amount due	3,161,112
Commercial Loan
Mortgage Loans Principal Amount due	34,956,031
Due in 2013
Mortgage Loans Principal Amount due	28,021,486
Due in 2013 \| Residential Mortgage
Mortgage Loans Principal Amount due	2,247,732
Due in 2013 \| Residential Construction
Mortgage Loans Principal Amount due	3,161,112
Due in 2013 \| Commercial Loan
Mortgage Loans Principal Amount due	22,612,642
DueIn2014To2017Member
Mortgage Loans Principal Amount due	13,914,176
DueIn2014To2017Member \| Residential Mortgage
Mortgage Loans Principal Amount due	6,699,546
DueIn2014To2017Member \| Commercial Loan
Mortgage Loans Principal Amount due	7,214,630
DueIn2018OrLaterMember
Mortgage Loans Principal Amount due	46,766,403
DueIn2018OrLaterMember \| Residential Mortgage
Mortgage Loans Principal Amount due	41,637,645
DueIn2018OrLaterMember \| Commercial Loan
Mortgage Loans Principal Amount due	$ 5,128,758

Note 2: Investments: Schedule of loan loss reserve which is included in other liabilities and accrued expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Loan loss reserve, balance at start of period	$ 2,337,875	$ 5,899,025
Loan loss reserve, Provisions for losses	4,053,051	1,667,805
Loan loss reserve, Charge-offs	(355,631)	(5,228,955)
Loan loss reserve, balance at end of period	$ 6,035,295	$ 2,337,875

Note 3: Receivables: Schedule of Receivables (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Trade contracts	$ 14,968,859	$ 8,409,206
Receivables from sales agents	649,739	1,623,025
Receivables held in escrow	342,377	369,968
Other Receivables	1,788,894	1,788,731
Accounts Receivable, Gross	17,749,869	12,190,930
Allowance for Doubtful Accounts Receivable	(1,190,592)	(2,278,969)
Receivables, net	$ 16,559,277	$ 9,911,961

Note 4: Value of Business Acquired: Schedule of Value of Business Acquired (Details) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Value of business acquired, balance at start of period

$ 10,996,050

$ 8,996,134

$ 10,231,755

Increase (Decrease) in value of business acquired

48,190

3,145,116

(515,147)

Imputed interest on value of business acquired

^[1]

728,880

701,349

674,463

Value of business acquired - amortization

(1,944,038)

(1,846,549)

(1,394,937)

Value of business acquired - net amortization charged to income

(1,215,158)

(1,145,200)

(720,474)

Value of business acquired, balance at start of period

$ 9,829,082

$ 10,996,050

$ 8,996,134

[1]	Imputed interest at 7%.

Note 5: Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Land and buildings	$ 14,782,646	$ 12,503,230
Furniture and equipment	13,226,209	12,900,261
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(16,974,898)	(16,103,306)
Property and equipment, net	$ 11,033,957	$ 9,300,185

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Note 5: Property and Equipment (Details) - USD ($)	12 Months Ended
Note 5: Property and Equipment (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Depreciation Expense	$ 1,258,097	$ 1,499,038	$ 1,811,931

Note 6: Bank and Other Loans Payable: Summary of Bank Loans Payable (Details) - USD ($)

Dec. 31, 2012

Dec. 31, 2011

Bank loans payable

$ 11,910,343

$ 25,019,119

Current Installment

6,266,765

18,018,145

Bank and other loans, excluding current installments

5,643,578

7,000,974

6.34% note payable

Bank loans payable

^[1]

748,612

877,707

5.75% note payable

Bank loans payable

^[2]

3,643,192

3,769,012

Bank prime rate less .75%

Bank loans payable

^[3]

225,000

525,000

Mark to market of interest rate swaps

Bank loans payable

93,572

117,812

3.85% note payable

Bank loans payable

^[4]

2,258,968

3,105,965

Revolving line-of-credit, interest payable at the variable overnight Libor rate

Bank loans payable

^[5]

15,000,000

Revolving line-of-credit, interest payable at the prime rate minus .75%

Bank loans payable

^[6]

4,608,204

1,400,000

Other collateralized bank loans payable

Bank loans payable

331,834

222,662

Other notes payable

Bank loans payable

$ 961

[1]	Payable in monthly installments of $13,556 including principal and interest, collateralized by real property with a book value of approximately $498,000, due November 2017.
[2]	5.75% note payable in monthly installments of $28,271 including principal and interest, collateralized by real property with a book value of approximately $6,183,000 due December 2014.
[3]	Bank prime rate less .75% (2.50% at December 31, 2011) collateralized by shares of Security National Life Insurance Company Stock, due June 2012.
[4]	3.85% note payable in monthly installments of $79,468 including principal and interest, collateralized by shares of Security National Life Insurance Company Stock, due June 2015.
[5]	Revolving line-of-credit, interest payable at the variable overnight Libor rate plus 2% (2.187% as of December 31, 2011), secured by bond investments of the Company, matures June 2012.
[6]	Revolving line-of-credit, interest payable at the prime rate minus .75% (2.5% as of December 31, 2011) secured by shares of Security National Life Insurance Company Stock, matures June 2012.

Note 6: Bank and Other Loans Payable: Loan Agreements (Details) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Note payable to a bank

Debt Instrument, Description

During 2001, the Company entered into a $2,000,000 note payable to a bank with interest due at a variable interest rate of the Libor rate plus 1.65%.

Debt Instrument, Face Amount

$ 2,000,000

Debt Instrument, Interest Rate Terms

variable interest rate of the Libor rate plus 1.65%

Interest Rate Swap Instrument

Debt Instrument, Description

During 2001, the Company also entered into an interest rate swap instrument that effectively fixed the interest rate on the note payable at 6.34% per annum.

Debt Instrument, Interest Rate Terms

effectively fixed the interest rate on the note payable at 6.34% per annum

Long-term Debt, Fair Value

$ 93,572

$ 117,812

Debt Instrument, Interest Rate, Effective Percentage

2.65%

Derivative Liabilities

$ 93,572

$ 117,812

Change in accumulated other comprehensive income

$ 24,240

$ 1,279

Revolving Line of Credit 1

Line of Credit Facility, Description

The Company has a $6,000,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75%

Line of Credit Facility, Maximum Borrowing Capacity

$ 6,000,000

Line of Credit Facility, Interest Rate at Period End

2.50%

Line of Credit Facility, Collateral

secured by the capital stock of Security National Life

Line of Credit Facility, Amount Outstanding

$ 4,608,204

Line of Credit Facility, Remaining Borrowing Capacity

652,572

Line of credit, amount reserved

^[1]

$ 514,224

Revolving Line of Credit 2

Line of Credit Facility, Description

The Company has a $15,000,000 revolving line-of-credit with a bank with interest payable at the variable overnight Libor rate plus 2%

Line of Credit Facility, Interest Rate at Period End

2.19%

Line of Credit Facility, Collateral

secured by bond investments of the Company

Line of Credit Facility, Amount Outstanding

$ 15,000,000

Revolving Line of Credit 3

Line of Credit Facility, Description

The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the prime rate plus 1.25%

Line of Credit Facility, Maximum Borrowing Capacity

$ 2,000,000

Line of Credit Facility, Interest Rate at Period End

4.50%

Line of Credit Facility, Collateral

secured by the capital stock of Security National Life

Line of Credit Facility, Amount Outstanding

$ 0

Line of credit, amount reserved

^[2]

$ 1,250,000

[1]	Reserved for two outstanding letters of credit.
[2]	Reserved for an outstanding letter of credit.

Note 6: Bank and Other Loans Payable: Schedule of combined maturities of bank loans payable, lines of credit and notes and contracts payable (Details)	Dec. 31, 2012 USD ($)
Bank loans payable, lines of credit and notes and contracts payable	$ 11,910,343
Due in 2013
Bank loans payable, lines of credit and notes and contracts payable	6,266,765
Due in 2014
Bank loans payable, lines of credit and notes and contracts payable	4,636,015
Due in 2015
Bank loans payable, lines of credit and notes and contracts payable	598,975
Due in 2016
Bank loans payable, lines of credit and notes and contracts payable	200,949
Due in 2017 or later
Bank loans payable, lines of credit and notes and contracts payable	161,704
DueIn2018OrLaterMember
Bank loans payable, lines of credit and notes and contracts payable	$ 45,935

Note 6: Bank and Other Loans Payable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Interest Paid	$ 3,744,293	$ 1,961,249	$ 2,778,920

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds: Schedule of the components of the cemetery perpetual care obligation (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Cemetery perpetual care obligation, trust investments at market value	$ 2,090,111	$ 1,810,185
Cemetery perpetual care obligation, note receivables eliminated in consolidation	1,927,926	1,971,750
Cemetery perpetual care obligation, trust assets	4,018,037	3,781,935
Cemetery perpetual care obligation	(3,153,001)	(2,983,077)
Cemetery perpetual care obligation, fair value of trust assets in excess of trust obligations	$ 865,036	$ 798,858

Note 7: Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds: Schedule of Restricted Assets in Cemetery and Mortuary Endowment Care and Pre need Merchandise Funds (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Restricted Cash and Investments	$ 3,955,127	$ 3,392,497
Cash and Cash Equivalents
Restricted Cash and Investments	2,205,312	1,765,415
Mutual Funds
Restricted Cash and Investments	504,170	470,049
Fixed Maturity Securities
Restricted Cash and Investments	8,775	8,775
Equity Securities
Restricted Cash and Investments	81,242	78,712
Participating in Mortgage loans with Security National Life
Restricted Cash and Investments	$ 1,155,628	$ 1,069,546

Note 8: Income Taxes: Summary of Income Tax Liability (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Current Income Tax Liability	$ 613,328	$ (977,420)
Income Tax Liability	17,309,970	15,987,699
Income taxes	$ 17,923,298	$ 15,010,279

Note 8: Income Taxes: Schedule of components of Deferred Tax Liabilities (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Liabilities
Income Tax Liability	$ 17,309,970	$ 15,987,699
Approximate
Assets
Deferred Tax, Future policy benefits	(4,160,489)	(4,597,137)
Deferred Tax, Loan Loss Reserve	(2,353,765)	(1,210,791)
Deferred Tax, Unearned premium	(1,830,492)	(1,861,264)
Deferred Tax, Available for sale Securities	(599,528)	(116,501)
Deferred Tax Net Operating Loss	(1,099,500)	(1,235,365)
Deferred Tax Deferred Compensation	(1,238,270)	(766,503)
Deferred Tax Deposit Obligations	(1,060,205)
Deferred Tax, Other assets	(1,090,409)	(603,447)
Deferred Tax, Valuation Allowance	6,328,931	3,640,327
Deferred Tax Assets, Net of Valuation Allowance	(7,103,727)	(6,750,681)
Liabilities
Deferred Tax, Deferred policy acquisition costs	9,945,683	9,526,785
Deferred Tax, Basis difference in property and equipment	5,739,272	3,917,124
Deferred Tax, Value of business acquired	3,341,888	4,077,709
Deferred Tax, Installment sales	2,790,709	1,996,967
Deferred Tax, Trusts	1,599,657	2,385,770
Tax on unrealized appreciation	996,488	834,025
Deferred Tax Liabilities, Net	24,413,697	22,738,380
Income Tax Liability	$ 17,309,970	$ 15,987,699

Note 8: Income Taxes: Deferred taxes, taxes paid and changes in valuation allowance (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
DeferredTaxesIncreaseInTheValuationAllowance	$ 2,688,604
Deferred taxes, decrease in the valuation allowance		$ 2,464,848
Income Taxes Paid	$ 1,900,000	$ 174,811	$ 108,522

Note 8: Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current Income Tax Expense (Benefit)	$ 2,707,962	$ 130,526	$ 171,133
Deferred income tax expense	$ 1,930,813	$ (192,731)	$ (829,929)

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 8: Income Taxes: Schedule Of Reconciliation Of Income Tax Expense At The US Federal Statutory Rates (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income tax expense reconciliation, Computed expense at statutory rate	$ 7,472,953	$ 410,225	$ (370,403)
Income tax expense reconciliation, Special deductions allowed for small life insurance companies		(503,672)	(351,847)
Income tax expense reconciliation, Other, Net	(2,834,178)	31,242	63,454
Income Tax Expense (Benefit), Continuing Operations	$ 4,638,775	$ (62,205)	$ (658,796)

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to pretax Income or Loss from continuing operations; income tax expense or benefit may include interest and penalties on tax uncertainties based on the entity's accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45, 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 15, 16, 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Note 8: Income Taxes: Unrecognized tax benefits, interest and penalties (Details)	Dec. 31, 2012 USD ($)
Unrecognized Tax Benefits	$ 376,799
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 22,006

Note 9: Reinsurance, Commitments and Contingencies: Reinsurance (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Unaudited
Insurance assumed from other companies	$ 1,665,573,000	$ 1,732,120,000

Note 9: Reinsurance, Commitments and Contingencies: Reinsurance with Mothe Life Insurance Company and DLE Life Insurance Company (Details) - MotheLifeMember	12 Months Ended
	Dec. 31, 2012 USD ($)
Ceding commission paid	$ 4,684,000
Assets transferred	34,485,000
Statutory reserves transferred	$ 39,169,000

Note 9: Reinsurance, Commitments and Contingencies: Reinsurance with North America Life Insurance Company (Details) - North America Life Insurance Company	12 Months Ended
	Dec. 31, 2012 USD ($)
Ceding commission paid	$ 3,526,000
Assets transferred	15,703,000
Statutory reserves transferred	19,230,000
Assets transferred, cash	12,990,000
Assets transferred, Policy loans	9,000
Assets transferred, promissory notes	$ 2,704,000

Note 9: Reinsurance, Commitments and Contingencies: Mortgage Loan Loss Settlements (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Amounts accrued for loan losses	$ 6,035,000	$ 2,338,000

Note 9: Reinsurance, Commitments and Contingencies: Settlement with Wells Fargo (Details) - Wells Fargo - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Initial Settlement Amount Paid	$ 4,300,000
Deduction from Purchase Proceeds	2,674,269	$ 928,075
Deduction from Purchase Proceeds of other loans	617,740	$ 80,554
Book value of certain real estate properties set aside	$ 5,404,900

Note 9: Reinsurance, Commitments and Contingencies: Third Party Investors (Details) - Third Party Investors	Dec. 31, 2012 USD ($)
Funds reserved and accrued to settle investor related claims	$ 6,035,000
Funds reserved and accrued to settle mortgage loan loss	$ 6,035,000

Note 9: Reinsurance, Commitments and Contingencies: Lehman Brothers - Aurora Loan Services Litigation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Recognized alleged losses	$ 1,289,000
Aurora Loan Services
Deposit to secure obligations	645,000
Funds paid from deposit account	4,281,000
Alleged amount owed	$ 3,745,000
Recognized alleged losses		$ (0)	$ 1,289,000

Note 9: Reinsurance, Commitments and Contingencies: Schedule of Non-Cancelable Leases (Details)	Dec. 31, 2012 USD ($)
Minimum lease payments under these non-cancelable operating leases	$ 7,200,901
2013
Minimum lease payments under these non-cancelable operating leases	2,242,899
2014
Minimum lease payments under these non-cancelable operating leases	1,756,656
2015
Minimum lease payments under these non-cancelable operating leases	1,224,330
2016
Minimum lease payments under these non-cancelable operating leases	1,032,881
N2017Member
Minimum lease payments under these non-cancelable operating leases	$ 944,135

Note 9: Reinsurance, Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Rent expense related to non-cancelable operating leases	$ 3,425,000	$ 2,595,000	$ 2,086,000

Note 9: Reinsurance, Commitments and Contingencies: Other Contingencies and Commitments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Reserve related to Insurance programs	$ 589,661	$ 623,135
Financial Standby Letter of Credit
Loss Contingency, Management's Assessment and Process	At December 31, 2012, SecurityNational Mortgage was contingently liable under a standby letter of credit aggregating $1,250,000, to be used as collateral to cover any contingency relating to claims filed in states where SecurityNational Mortgage is licensed. SecurityNational Mortgage does not expect any material losses to result from the issuance of the standby letter of credit.
Loss Contingency, Estimate of Possible Loss	$ 1,250,000
Contingently liable under a standby letter of credit	$ 458,224

Note 10: Retirement Plans: Noncontributory Employee Stock Ownership Plan (ESOP) (Details) - Employee Stock Ownership Plan (ESOP)	12 Months Ended
	Dec. 31, 2012 shares
Employee Stock Ownership Plan (ESOP), Plan Description	The Company and its subsidiaries have a noncontributory Employee Stock Ownership Plan (ESOP) for all eligible employees. Eligible employees are primarily those with more than one year of service, who work in excess of 1,000 hours per year. Contributions, which may be in cash or stock of the Company, are determined annually by the Board of Directors. The Company’s contributions are allocated to eligible employees based on the ratio of each eligible employee’s compensation to total compensation for all eligible employees during each year.
Class A Common Stock
Employee Stock Ownership Plan (ESOP), Shares in ESOP	599,250
Class C Common Stock
Employee Stock Ownership Plan (ESOP), Shares in ESOP	2,294,549

Note 10: Retirement Plans: 401(k) Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Description of Defined Contribution Pension and Other Postretirement Plans	The Company has three 401(k) savings plans covering all eligible employees, as defined above, which includes employer participation in accordance with the provisions of Section 401(k) of the Internal Revenue Code.
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount	$ 17,000	$ 16,500	$ 16,500
SafeHarborPlanMember
Contribution to Retirement Plan	$ 222,719	$ 208,206	$ 344,772

- Definition

Description of the terms and benefits provided by the employer's defined contribution plans. A defined contribution plan provides benefits in return for services rendered, provides an individual account for each participant, and has terms that specify how contributions to the individual's account are to be determined rather than the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments of those contributions, and forfeitures of other participants' benefits that may be allocated to such participant's account. A description of the plan(s) including employee groups covered, the basis for determining contributions, and the nature and effects of significant matters affecting comparability of information for all periods presented.

+ References + Details

Note 10: Retirement Plans: Deferred Compensation Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
CEO, and past senior VP
Increase (decrease) in liability for future obligations	$ 1,349	$ 57,125
Deferred Compensation Arrangement with Individual, Recorded Liability	598,426
Scott M. Quist
Deferred Compensation Arrangement with Individual, Recorded Liability	1,173,242	1,121,162
Present value of anticipated benefits	87,467	145,036
Deferred Tax Credits related to compensation expense
Deferred Compensation Arrangement with Individual, Recorded Liability	613,403	533,483
Present value of anticipated benefits	$ 44,533	$ 58,964
Deferred Compensation Plan
Deferred Compensation Arrangements, Overall, Description	Under the terms of the Plan, the Company will provide deferred compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Board has appointed a Committee of the Company to be the Plan Administrator and to determine the employees who are eligible to participate in the plan. The employees who participate may elect to defer a portion of their compensation into the plan.

Note 11: Capital Stock: Schedule of Activity in shares of capital stock (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Class A Common Stock
Common Stock Outstanding	10,843,576	9,638,798	9,178,945	8,730,227
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	685,753		10,174
Dividends	$ 518,702	$ 459,168	$ 437,138
Conversion of Stock, Shares Issued	323	685	1,406
Class C Common Stock
Common Stock Outstanding	10,974,101	10,135,976	9,660,152	9,214,211
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	318,912
Dividends	$ 522,440	$ 482,675	$ 460,005
Conversion of Stock, Shares Issued	(3,227)	(6,851)	(14,064)

Note 11: Capital Stock: Schedule of Basic and diluted earnings per share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net Earnings (Loss)	$ 16,712,518	$ 1,298,758	$ (430,624)
Weighted Average Number of Shares Outstanding, Basic and Diluted	10,134,728	9,893,962	9,688,067
Employee stock options	$ 543,566	$ 107,947
Pro Forma Weighted Average Shares Outstanding, Diluted	543,566	107,947
Adjustedweighted average shares and assumed conversions	10,678,294	10,001,909	9,688,067
Net earnings (loss) per Class A equivalent common share (1)	$ 1.65	$ 0.13	$ (0.04)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)	$ 1.57	$ 0.13	$ (0.04)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 20
-Article 5

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

Note 12: Stock Compensation Plans (Details) - USD ($)	12 Months Ended
Note 12: Stock Compensation Plans (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 251,031	$ 253,934	$ 520,457

Note 12: Stock Compensation Plans: Schedule of Activity of the 1993 Plan (Details) - 1993 Stock Incentive Plan - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Minimum
Option Price	$ 3.61	$ 2.62	$ 1.47	$ 1.54
Maximum
Option Price	$ 3.80	$ 3.80	$ 3.99	$ 4.19

Note 12: Stock Compensation Plans: Schedule of Activity of the 2003 Plan (Details) - 2003 Stock Option Plan - $ / shares

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Minimum

Option Price

^[1]

$ 1.17

$ 1.23

$ 1.30

$ 1.36

Maximum

Option Price

^[1]

$ 3.31

$ 3.48

$ 3.66

$ 3.84

[1]	Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Option Price is based on Class A Common shares.

Note 12: Stock Compensation Plans: Schedule of Activity of the 2006 Plan (Details) - 2006 Director Stock Option Plan - $ / shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Minimum
Option Price	$ 1.10	$ 1.16	$ 1.22	$ 1.28
Maximum
Option Price	$ 7.05	$ 3.96	$ 4.16	$ 4.37

13) Statutory Financial Information and Dividend Limitations: Schedule of statutory accounting practices (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
SecurityNationalLifeInsuranceMember
Statutory Accounting Practices, Statutory Net Income Amount	$ 391,533	$ (34,795)	$ 1,050,328
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	29,828,732	24,257,274
MemorialInsuranceCompanyOfAmericaMember
Statutory Accounting Practices, Statutory Net Income Amount	159	(1,994)	22,274
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	1,084,067	1,084,635
SouthernSecurityLifeInsuranceCompanyIncMember
Statutory Accounting Practices, Statutory Net Income Amount	184	971	$ 2,667
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	1,583,524	$ 1,581,199
TransWesternLifeInsuranceCompanyMember
Statutory Accounting Practices, Statutory Net Income Amount	2,113
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	$ 495,972

- Definition

The amount of statutory capital and surplus (stockholders' equity) as of the balance sheet date using prescribed or permitted statutory accounting practices (rather than GAAP, if different) of the state or country.

+ References + Details

Note 14: Business Segment Information: Schedule of Revenues and Expenses by Reportable Segment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information, Revenue for Reportable Segment
Revenue from customers	$ 209,634,085	$ 136,823,979	$ 147,371,782
Net investment income	23,250,154	20,010,704	18,615,984
Gain (Loss) on Investments	1,424,510	2,464,353	1,615,418
Other than Temporary Impairment Losses, Investments	(1,207,632)	(840,735)	(673,981)
Other Revenue, Net	1,159,052	1,108,969	1,581,115
Net Investment Income	23,250,154	20,010,704	18,615,984
Segment Reporting Information, Revenue for Reportable Segment	234,260,169	159,567,270	168,510,318
Death and other policy benefits	24,246,088	23,945,720	20,925,988
Increase (Decrease) in Future Policy Benefit Reserves	21,435,191	22,258,241	17,020,086
Amortization of deferred policy and preneed acquisition costs and Value of Business Acquired	5,449,429	5,769,348	4,431,076
Depreciation	1,258,097	1,499,038	1,811,932
Provision for Loan and Lease Losses	4,239,418	2,070,399	5,404,645
Costs related to funding mortgage loans	6,931,045	4,240,377	6,044,020
Other General Expense	145,605,315	96,586,345	111,183,071
Interest Expense, Other	3,744,293	1,961,249	2,778,920
Benefits and Expenses	212,908,876	158,330,717	169,599,738
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	21,351,293	1,236,553	(1,089,420)
Income tax expemse (benefit)	(4,638,775)	62,205	658,796
Net Earnings (Loss)	16,712,518	1,298,758	(430,624)
Identifiable Assets	3,221,620	765,633	859,988
Goodwill	677,039	677,039	1,075,039
Life Insurance Segment
Segment Reporting Information, Revenue for Reportable Segment
Revenue from customers	48,216,327	48,457,405	38,509,198
Net investment income	17,951,118	17,295,982	14,738,200
Gain (Loss) on Investments	1,415,556	1,596,127	1,642,174
Other than Temporary Impairment Losses, Investments	(1,207,632)	(840,735)	(673,981)
Other Revenue, Net	482,325	712,400	1,039,016
Net Investment Income	7,570,979	5,832,691	6,817,008
Segment Reporting Information, Revenue for Reportable Segment	74,428,673	73,053,870	62,071,615
Death and other policy benefits	24,246,088	23,945,720	20,925,988
Increase (Decrease) in Future Policy Benefit Reserves	21,435,191	22,258,241	17,020,086
Amortization of deferred policy and preneed acquisition costs and Value of Business Acquired	5,137,586	5,396,016	4,058,514
Depreciation	315,960	479,634	559,999
Administrative costs, intersegment	24,000	24,000	24,000
Other General Expense	17,824,800	17,472,713	16,756,255
Interest Expense, intersegment	694,442	668,047	686,384
Interest Expense, Other	159,659	111,221	179,891
Benefits and Expenses	69,837,726	70,355,592	60,211,117
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	4,590,947	2,698,278	1,860,498
Income tax expemse (benefit)	1,755,258	(734,626)	(97,410)
Net Earnings (Loss)	6,346,205	1,963,652	1,763,088
Identifiable Assets	400,605	136,742	220,417
Goodwill	391,848	391,848	391,848
Cemetery and Mortuary
Segment Reporting Information, Revenue for Reportable Segment
Revenue from customers	10,864,497	10,761,469	11,520,369
Net investment income	333,625	159,186	63,574
Gain (Loss) on Investments	8,954	868,226	(26,756)
Other Revenue, Net	136,189	147,830	256,862
Net Investment Income	1,435,891	1,691,197	1,678,096
Segment Reporting Information, Revenue for Reportable Segment	12,779,156	13,627,908	13,492,145
Amortization of deferred policy and preneed acquisition costs and Value of Business Acquired	311,843	373,332	372,562
Depreciation	426,006	520,015	631,281
Administrative costs, intersegment	102,726	103,494	109,128
Other General Expense	9,582,499	9,827,197	11,097,302
Interest Expense, intersegment	1,681,987	1,905,559	1,792,479
Interest Expense, Other	455,449	437,736	475,372
Benefits and Expenses	12,560,510	13,167,333	14,478,124
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	218,646	460,575	(985,979)
Net Earnings (Loss)	218,646	460,575	(985,979)
Identifiable Assets	689,154	255,116	275,904
Goodwill	285,191	285,191	683,191
Mortgage
Segment Reporting Information, Revenue for Reportable Segment
Revenue from customers	150,553,261	77,605,105	97,342,215
Net investment income	4,965,411	2,555,536	3,814,210
Other Revenue, Net	540,538	248,739	285,237
Net Investment Income	294,980	258,062	244,578
Segment Reporting Information, Revenue for Reportable Segment	156,354,190	80,667,442	101,686,240
Depreciation	516,131	499,389	620,652
Administrative costs, intersegment	137,696	130,011	185,147
Provision for Loan and Lease Losses	4,239,418	2,070,399	5,404,645
Costs related to funding mortgage loans	6,931,045		6,044,020
Other General Expense	118,198,014	69,286,435	83,329,514
Interest Expense, intersegment	6,661,001	4,950,839	5,942,544
Interest Expense, Other	3,129,185	1,412,292	2,123,657
Benefits and Expenses	139,812,490	82,589,742	103,650,179
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	16,541,700	(1,922,300)	(1,963,939)
Income tax expemse (benefit)	(6,394,033)	796,831	756,206
Net Earnings (Loss)	10,147,667	(1,125,469)	(1,207,733)
Identifiable Assets	2,131,861	373,775	363,667
Significant Reconciling Items
Segment Reporting Information, Revenue for Reportable Segment
Net Investment Income	(9,301,850)	(7,781,950)	(8,739,682)
Segment Reporting Information, Revenue for Reportable Segment	(9,301,850)	(7,781,950)	(8,739,682)
Administrative costs, intersegment	(264,422)	(257,505)	(318,275)
Other General Expense	2
Interest Expense, intersegment	(9,037,430)	(7,524,445)	(8,421,407)
Benefits and Expenses	$ (9,301,850)	$ (7,781,950)	$ (8,739,682)

16) Fair Value of Financial Instruments: Schedule of fair value assets and liabilities measured on a recurring basis (Details)	Dec. 31, 2012 USD ($)
Non-redeemable preferred stock	$ 18,438
Trading Securities, Equity	6,280,954
Available-for-sale Securities	6,299,392
Restricted assets of cemeteries and mortuaries	548,761
Cemetery perpetual care trust investments	617,107
Derivatives - interest rate lock commitments	1,904,901
Assets, Fair Value Disclosure	9,370,161
Policyholder account balances	(50,926,020)
Future policy benefits - annuities	(65,281,586)
Derivatives - bank loan interest rate swaps	(117,812)
Derivatives - bank loan interest rate swaps, Call Options	(80,102)
Derivatives - bank loan interest rate swaps, Interest rate lock commitments	(210,360)
Liabilities accounted for at fair value	(116,615,880)
Fair Value, Inputs, Level 1
Non-redeemable preferred stock	18,438
Trading Securities, Equity	6,280,954
Available-for-sale Securities	6,299,392
Restricted assets of cemeteries and mortuaries	548,761
Cemetery perpetual care trust investments	617,107
Assets, Fair Value Disclosure	7,465,260
Derivatives - bank loan interest rate swaps, Call Options	(80,102)
Liabilities accounted for at fair value	(80,102)
Fair Value, Inputs, Level 3
Derivatives - interest rate lock commitments	1,904,901
Assets, Fair Value Disclosure	1,904,901
Policyholder account balances	(50,926,020)
Future policy benefits - annuities	(65,281,586)
Derivatives - bank loan interest rate swaps	(117,812)
Derivatives - bank loan interest rate swaps, Interest rate lock commitments	(210,360)
Liabilities accounted for at fair value	$ (116,535,778)

16) Fair Value of Financial Instruments: Schedule of Changes in the consolidated balance sheet line items measured using level 3 inputs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Policyholder Account Balances
Fair Value Balance	$ (50,926,020)	$ (52,340,807)
Fair Value, Losses (Gains) included in earnings	1,179,683	1,414,787
Fair Value Balance	(49,746,337)	(50,926,020)
Future Policy Benefits - Annuities
Fair Value Balance	(65,281,586)	(65,936,445)
Fair Value, Losses (Gains) included in earnings	109,899	654,859
Fair Value Balance	(65,171,687)	(65,281,586)
Interest Rate Lock Commitments
Fair Value Balance	1,694,541	873,059
Fair Value, Losses (Gains) included in other comprehensive income	1,266,924	821,482
Fair Value Balance	2,961,465	1,694,541
Bank Loan Interest Rate Swaps
Fair Value Balance	(117,812)	(116,533)
Fair Value, Losses (Gains) included in other comprehensive income	24,240	(1,279)
Fair Value Balance	$ (93,572)	$ (117,812)

16) Fair Value of Financial Instruments: Fair Value Assets Measured on a Nonrecurring Basis (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Mortgage servicing rights	$ 2,797,470
Mortgage loans on real estate	4,621,500	$ 5,354,600
Other real estate owned held for investment	985,219
Assets accounted for at fair value on non-recurring basis
Other real estate held for investment		5,419,103
Other real estate owned held for sale		514,000
Assets, Fair Value Disclosure, Nonrecurring		11,287,703
Fair Value, Inputs, Level 3
Mortgage servicing rights	2,797,470
Mortgage loans on real estate	4,621,500	5,354,600
Other real estate owned held for investment	$ 985,219
Assets accounted for at fair value on non-recurring basis
Other real estate held for investment		5,419,103
Other real estate owned held for sale		514,000
Assets, Fair Value Disclosure, Nonrecurring		$ 11,287,703

17) Accumulated Other Comprehensive Income: Schedule of Changes in accumulated other comprehensive income (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Accumulated other comprehensive income, Unrealized gains (losses) on Available for Sale Securities	$ (28,700)	$ (1,698,175)
Reclassification adjustment for net realized gains in net income	386,328	472,038
Net unrealized gains (losses) before taxes	357,628	(1,226,137)
Tax (expense) benefit	70,120	150,999
Net Unrealized Gain (Loss)	427,748	(1,075,138)
Net Potential unrealized gains (losses) for derivative mortgage loans before taxes	24,240	(1,279)
Potential Tax Expense Benefit	(8,242)	435
Net Unrealized Gain (Loss) including Derivatie Bank Loans and Tax benefit	15,998	(844)
Potential unrealized gains (losses) for derivative mortgage loans before taxes	1,266,924	821,483
Tax (expense) benefit on Derivative Mortgage Loans	(430,754)	(279,304)
Net Unrealized Gain (Loss) including Derivatie Bank Loans, Mortgage Loans and Tax Benefits	836,170	542,179
Other comprehensive income changes	$ 1,279,916	$ (533,803)

17) Accumulated Other Comprehensive Income: Accumulated Balances of Other Comprehensive Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Unrealized net gains on available- for-sale securities and trust investments	$ (386,198)	$ 688,940
Increase (Decrease) in Unrealized net gains on available- for-sale securities and trust investments	427,748	(1,075,138)
Unrealized net gains on available- for-sale securities and trust investments	41,550	(386,198)
Unrealized gains on derivative mortgage loans	1,118,397	576,218
Increase (Decrease) in Unrealized gains on derivative mortgage loans		542,179
Unrealized gains on derivative mortgage loans		1,118,397
Unrealized gains (losses) on derivative bank loan interest rate swaps	(77,756)	(76,912)
Increase (Decrease) in Unrealized gains (losses) on derivative bank loan interest rate swaps	15,998	(844)
Unrealized gains (losses) on derivative bank loan interest rate swaps	(61,758)	(77,756)
Other comprehensive income, Balance	654,443	1,188,246
Increase (Decrease) in Other comprehensive income, Balance	1,279,916	(533,803)
Other comprehensive income, Balance	$ 1,934,359	$ 654,443

Note 18: Derivative Commitments (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Market value of outstanding call options	$ 126,215	$ 80,102

Note 18: Derivative Commitments: Schedule of Derivative Assets at Fair Value (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Fair Value of Asset Derivatives, Interest rate lock and forward sales commitments	$ 3,127,689	$ 1,904,901
Fair Value of Liability Derivatives, Interest rate lock and forward sales commitments	166,224	210,360
Fair Value of Liability Derivatives, Call Options	126,215	80,102
Fair Value of Liability Derivatives, Interest Rate Swaps	93,572	117,812
Fair Value of Asset Derivatives, Total	3,127,689	1,904,901
Fair Value of Liability Derivatives, Total	$ 386,011	$ 408,274

Note 18: Derivative Commitments: Schedule of Gains and Losses on Derivatives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Gain (Loss) on Derivatives, Interest Rate Lock Commitments	$ 1,266,924	$ 821,482
Gain (Loss) on Derivatives, Interest Rate Swaps	24,240	(1,279)
Sub total Gain on Derivatives	1,291,164	820,203
Tax Effect Gain on Derivatives	438,996	278,868
Gain (Loss) on Derivatives, Total	$ 852,168	$ 541,335

19) Acquisitions: The Estimated Fair Values of The Assets Acquired and The Liabilities Assumed At The Date of Acquisition Were As Follows (Details)	May 02, 2012 USD ($)
Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents	$ 313,616
Business Acquisition, Purchase Price Allocation, Current Assets, Receivables	186,487
Business Acquisition, Purchase Price Allocation, Other Assets	7,422,999
Business Acquisition, Purchase Price Allocation, Assets Acquired	7,923,102
BusinessAcquisitionPurchasePriceAllocationFutureLifeAnnuityandOtherBenefits	(7,422,999)
Business Acquisition, Purchase Price Allocation, Other Liabilities	(5,896)
Business Acquisition, Purchase Price Allocation, Liabilities Assumed	(7,428,895)
Business Acquisition, Cost of Acquired Entity, Purchase Price	$ 494,207

19) Acquisitions: Acquisition of Trans-Western Pro Forma (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Total revenues	$ 234,260,169	$ 159,567,270	$ 168,510,318
Net loss	$ 16,712,518	$ 1,298,758	$ (430,624)
Net earnings (loss) per Class A equivalent common share (1)	$ 1.65	$ 0.13	$ (0.04)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)	$ 1.57	$ 0.13	$ (0.04)
ProForma1Member
Total revenues	$ 234,268,496	$ 159,620,617	$ 168,615,765
Net loss	$ 16,713,955	$ 1,314,026	$ (402,460)
Net earnings (loss) per Class A equivalent common share (1)	$ 1.65	$ 0.13	$ (0.04)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)	$ 1.57	$ 0.13	$ (0.04)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

20) Mortgage Servicing Rights: Schedule of mortgage servicing rights (Details)	Dec. 31, 2012 USD ($)
Mortgage servicing rights	$ 2,797,470

20) Mortgage Servicing Rights: Schedule of Mortgage Servicing Rights Amortization (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortization of Mortgage Servicing Rights (MSRs)	$ 310,830	$ 310,830	$ 310,830	$ 310,830	$ 310,830

21) Quarterly Financial Data (unaudited): Schedule of quarterly financial data (Details) - USD ($)	3 Months Ended												12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Total revenues													$ 234,260,169	$ 159,567,270	$ 168,510,318
Benefits and Expenses													212,908,876	158,330,717	169,599,738
Income tax benefit (expense)													(4,638,775)	62,205	658,796
Net Earnings (Loss)													$ 16,712,518	$ 1,298,758	$ (430,624)
Net earnings (loss) per Class A equivalent common share (1)													$ 1.65	$ 0.13	$ (0.04)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)													$ 1.57	$ 0.13	$ (0.04)
Unaudited
Total revenues	$ 66,660,832	$ 63,747,903	$ 56,528,210	$ 47,323,223	$ 47,603,985	$ 41,324,687	$ 36,466,418	$ 34,172,180	$ 41,519,506	$ 45,974,697	$ 43,048,988	$ 37,967,127
Benefits and Expenses	58,806,804	57,615,608	51,491,833	44,994,631	46,020,518	40,490,197	36,325,240	35,494,762	41,833,979	45,161,511	42,964,207	39,640,041
Earnings (loss) before income taxes	7,854,029	6,132,295	5,036,377	2,328,592	1,583,467	834,490	141,178	(1,322,582)	(314,473)	813,186	84,781	(1,672,914)
Income tax benefit (expense)	(386,772)	(2,142,249)	(1,443,345)	(666,409)	(741,425)	(64,168)	63,689	804,109	(87,766)	(309,757)	334,638	721,681
Net Earnings (Loss)	$ 7,467,257	$ 3,990,046	$ 3,593,032	$ 1,662,183	$ 842,042	$ 770,322	$ 204,867	$ (518,473)	$ (402,239)	$ 503,429	$ 419,419	$ (951,233)
Net earnings (loss) per Class A equivalent common share (1)	$ 0.76	$ 0.42	$ 0.38	$ 0.18	$ 0.09	$ 0.09	$ 0.02	$ (0.06)	$ (0.05)	$ 0.06	$ 0.05	$ (0.11)
Net earnings (loss) per Class A equivalent common share - assuming dilution(1)	$ 0.69	$ 0.38	$ 0.36	$ 0.17	$ 0.09	$ 0.09	$ 0.02	$ (0.06)	$ (0.05)	$ 0.06	$ 0.05	$ (0.11)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

+ References + Details

Label

Element

Value

Cash and cash equivalents at beginning of year

us-gaap_CashAndCashEquivalentsAtCarryingValue

$ 38,906,115

Statutory Accounting Practices, Statutory Net Income Amount

us-gaap_StatutoryAccountingPracticesStatutoryNetIncomeAmount

393,989

Statutory Accounting Practices, Statutory Net Income Amount

us-gaap_StatutoryAccountingPracticesStatutoryNetIncomeAmount

(35,818)

Statutory Accounting Practices, Statutory Net Income Amount

us-gaap_StatutoryAccountingPracticesStatutoryNetIncomeAmount

1,075,269

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

us-gaap_StatutoryAccountingPracticesStatutoryCapitalAndSurplusBalance

32,992,295

Statutory Accounting Practices, Statutory Capital and Surplus, Balance

us-gaap_StatutoryAccountingPracticesStatutoryCapitalAndSurplusBalance

$ 26,923,108

2000 Director Stock Option Plan

Option Price

fil_OptionPrice

$ 2.45

2003 Stock Option Plan

Option Price

fil_OptionPrice

$ 0

^[1]

Class C Common Stock {1} | 2003 Stock Option Plan

Shares exercised

fil_SharesExercised

(525,000)

Shares, Outstanding

us-gaap_SharesOutstanding

2,274,624

Shares, Outstanding

us-gaap_SharesOutstanding

3,438,355

Shares, Outstanding

us-gaap_SharesOutstanding

3,610,275

Shares, Outstanding

us-gaap_SharesOutstanding

5,838,505

Available for future grants

fil_AvailableForFutureGrants

782,924

Shares Exercisable

fil_SharesExercisable

5,838,505

Aggregated intrinsic value of options outstanding

fil_AggregatedIntrinsicValueOfOptionsOutstanding

3,598,618

Shares Reclassifies

fil_SharesReclassifies

2,508,085

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

163,731

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

171,920

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

245,145

Shares Granted

fil_SharesGranted

1,000,000

Weighted average contractual term of options, years

fil_WeightedAverageContractualTermOfOptionsYears

2.03

Class A Common Stock {1} | 1993 Stock Incentive Plan

Shares exercised

fil_SharesExercised

(238,755)

Shares, Outstanding

us-gaap_SharesOutstanding

291,950

Shares, Outstanding

us-gaap_SharesOutstanding

306,548

Shares, Outstanding

us-gaap_SharesOutstanding

298,786

Shares, Outstanding

us-gaap_SharesOutstanding

43,245

Shares cancelled

fil_SharesCancelled

21,990

Shares cancelled

fil_SharesCancelled

17,368

Shares Exercisable

fil_SharesExercisable

43,245

Aggregated intrinsic value of options outstanding

fil_AggregatedIntrinsicValueOfOptionsOutstanding

199,519

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

14,598

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

14,228

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

582

Weighted average contractual term of options, years

fil_WeightedAverageContractualTermOfOptionsYears

1.2

Class A Common Stock {1} | 2000 Director Stock Option Plan

Shares, Outstanding

us-gaap_SharesOutstanding

5,104

Shares cancelled

fil_SharesCancelled

5,104

Weighted average contractual term of options, years

fil_WeightedAverageContractualTermOfOptionsYears

Class A Common Stock {1} | 2006 Director Stock Option Plan

Shares exercised

fil_SharesExercised

(8,377)

Shares, Outstanding

us-gaap_SharesOutstanding

72,178

Shares, Outstanding

us-gaap_SharesOutstanding

100,987

Shares, Outstanding

us-gaap_SharesOutstanding

131,236

Shares, Outstanding

us-gaap_SharesOutstanding

155,257

Available for future grants

fil_AvailableForFutureGrants

29,214

Shares Exercisable

fil_SharesExercisable

139,507

Aggregated intrinsic value of options outstanding

fil_AggregatedIntrinsicValueOfOptionsOutstanding

971,058

Stock Granted During Period, Shares, Share-based Compensation

us-gaap_StockGrantedDuringPeriodSharesSharebasedCompensation

24,000

Stock Granted During Period, Shares, Share-based Compensation

us-gaap_StockGrantedDuringPeriodSharesSharebasedCompensation

24,000

Stock Granted During Period, Shares, Share-based Compensation

us-gaap_StockGrantedDuringPeriodSharesSharebasedCompensation

25,000

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

4,809

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

6,249

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

7,398

Weighted average contractual term of options, years

fil_WeightedAverageContractualTermOfOptionsYears

7.9

Class A Common Stock {1} | 2003 Stock Option Plan

Shares exercised

fil_SharesExercised

(97,609)

Shares exercised

fil_SharesExercised

(794,144)

Shares, Outstanding

us-gaap_SharesOutstanding

1,007,971

Shares, Outstanding

us-gaap_SharesOutstanding

1,188,560

Shares, Outstanding

us-gaap_SharesOutstanding

1,566,521

Shares, Outstanding

us-gaap_SharesOutstanding

773,751

Shares cancelled

fil_SharesCancelled

19,135

Shares cancelled

fil_SharesCancelled

105,766

Available for future grants

fil_AvailableForFutureGrants

1,443,579

Shares Exercisable

fil_SharesExercisable

658,510

Aggregated intrinsic value of options outstanding

fil_AggregatedIntrinsicValueOfOptionsOutstanding

4,948,223

Shares Reclassifies

fil_SharesReclassifies

(250,808)

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

56,598

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

74,596

Adjustment for the effect of stock dividends

fil_AdjustmentForTheEffectOfStockDividends

35,948

Shares Granted

fil_SharesGranted

221,600

Shares Granted

fil_SharesGranted

322,500

Shares Granted

fil_SharesGranted

322,000

Weighted average contractual term of options, years

fil_WeightedAverageContractualTermOfOptionsYears

4.7

[1]	Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Option Price is based on Class A Common shares.