XML 33 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Bank and Other Loans Payable
 12 Months Ended
Dec. 31, 2011
Debt  
Schedule of Long-term Debt Instruments [Table Text Block]
6)      Bank and Other Loans Payable


Bank loans payable are summarized as follows:


   
December 31,
 
   
2011
  
2010
 
 6% note payable in monthly installments of $5,693 including principal and interest paid off in May 2011.
 $-  $412,860 
          
 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.
  877,707   997,546 
          
Bank prime rate less .28% (2.97% at December 31, 2010) collateralized by shares of Security National Life Insurance Company Stock, paid off in June 2011.
  -   357,336 
          
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.
  3,769,012   3,887,818 
          
Bank prime rate less .75% (2.50% at December 31, 2011) collateralized by shares of Security National Life Insurance Company Stock, due June 2012.
  525,000   825,000 
          
Mark to market of interest rate swaps (discussed below) adjustment
  117,812   116,533 
          
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.
  3,105,965   - 
          
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.
  15,000,000   - 
          
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.
  1,400,000   - 
          
Other collateralized bank loans payable
  222,662   269,345 
Other notes payable
  961   199,537 
Total bankand other loans
  25,019,119   7,065,975 
          
Less current installments
  18,018,145   1,777,967 
Bank and other loans, excluding current installments
 $7,000,974  $5,288,008 
 
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, 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.


At December 31, 2010, the fair value of the interest rate swap was an unrealized loss of $116,533 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 $116,533 and has been reflected in accumulated other comprehensive income. The change in accumulated other comprehensive income from the interest rate swap in 2010 was $15,281. 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 $2,500,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75% (2.50% at December 31, 2011), secured by the capital stock of Security National Life and maturing June 30, 2012, renewable annually. As of December 31, 2011, there was $1,400,000 outstanding under the revolving line-of-credit. As of December 31, 2011, $135,886 was available and $439,114 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, 2011 has a balance of $525,000. 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, 2011), secured by bond investments of the Company and maturing June 30, 2012. As of December 31, 2011 there was $15,000,000 outstanding 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, 2011), secured by the capital stock of Security National Life and maturing June 30, 2012. As of December 31, 2011 $1,250,000 was reserved for an outstanding letter of credit. As of December 31, 2011 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:


2012
 $18,018,145 
2013
  1,449,007 
2014
  4,592,717 
2015
  638,969 
2016
  173,190 
Thereafter
  147,091 
Total
 $25,019,119 


Interest paid approximated interest expense in 2011, 2010 and 2009 which was $1,961,249, $2,778,920 and $3,326,161 respectively.