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3) Investments

3 Months Ended

Mar. 31, 2021

The Company’s investments as of March 31, 2021 are summarized as follows:

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
March 31, 2021:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$ 42,427,856	$ 1,099,519	$ -	$ 43,527,375
Obligations of states and political subdivisions	5,370,754	209,554	(24,569)	5,555,739
Corporate securities including public utilities	179,026,864	21,203,792	(501,358)	199,729,298
Mortgage-backed securities	29,799,733	892,449	(236,547)	30,455,635
Redeemable preferred stock	269,214	13,267	-	282,481
Total fixed maturity securities available for sale	$ 256,894,421	$ 23,418,581	$ (762,474)	$ 279,550,528
Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$ 8,913,275	$ 2,586,343	$ (345,123)	$ 11,154,495
Total equity securities at estimated fair value	$ 8,913,275	$ 2,586,343	$ (345,123)	$ 11,154,495
Mortgage loans held for investment at amortized cost:
Residential	$ 88,266,355
Residential construction	105,450,591
Commercial	55,065,455
Less: Unamortized deferred loan fees, net	(1,223,014)
Less: Allowance for loan losses	(1,897,155)
Less: Net discounts	(710,280)
Total mortgage loans held for investment	$ 244,951,952
Real estate held for investment - net of accumulated depreciation:
Residential	$ 39,752,530
Commercial	117,288,006
Total real estate held for investment	$ 157,040,536
Real estate held for sale:
Residential	$ 1,156,313
Commercial	4,400,553
Total real estate held for sale	$ 5,556,866
Other investments and policy loans at amortized cost:
Policy loans	$ 13,946,739
Insurance assignments	54,618,319
Federal Home Loan Bank stock (1)	2,544,700
Other investments	5,242,786
Less: Allowance for doubtful accounts	(1,662,394)
Total policy loans and other investments	$ 74,690,150
Accrued investment income	$ 6,266,403
Total investments	$ 779,210,930

(1)

Includes $905,700 of Membership stock and $1,639,000 of Activity stock due to short-term borrowings.

The Company’s investments as of December 31, 2020 are summarized as follows:

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
December 31, 2020:
Fixed maturity securities, available for sale, at estimated fair value:
U.S. Treasury securities and obligations of U.S. Government agencies	$ 42,381,805	$ 1,358,562	$ -	$ 43,740,367
Obligations of states and political subdivisions	5,383,762	312,214	(1,261)	5,694,715
Corporate securities including public utilities	186,067,912	27,216,496	(681,478)	212,602,930
Mortgage-backed securities	31,047,791	1,565,377	(267,106)	32,346,062
Redeemable preferred stock	269,214	3,391	-	272,605
Total fixed maturity securities available for sale	$ 265,150,484	$ 30,456,040	$ (949,845)	$ 294,656,679
Equity securities at estimated fair value:
Common stock:
Industrial, miscellaneous and all other	$ 9,698,490	$ 2,376,156	$ (750,407)	$ 11,324,239
Total equity securities at estimated fair value	$ 9,698,490	$ 2,376,156	$ (750,407)	$ 11,324,239
Mortgage loans held for investment at amortized cost:
Residential	$ 95,822,448
Residential construction	111,111,777
Commercial	46,836,866
Less: Unamortized deferred loan fees, net	(1,161,132)
Less: Allowance for loan losses	(2,005,127)
Less: Net discounts	(1,260,896)
Total mortgage loans held for investment	$ 249,343,936
Real estate held for investment - net of accumulated depreciation:
Residential	$ 24,843,743
Commercial	106,840,710
Total real estate held for investment	$ 131,684,453
Real estate held for sale:
Residential	$ 3,478,254
Commercial	4,400,553
Total real estate held for sale	$ 7,878,807
Other investments and policy loans at amortized cost:
Policy loans	$ 14,171,589
Insurance assignments	53,231,131
Federal Home Loan Bank stock (1)	2,506,600
Other investments	5,432,816
Less: Allowance for doubtful accounts	(1,645,475)
Total policy loans and other investments	$ 73,696,661
Accrued investment income	$ 5,360,523
Total investments	$ 773,945,298

(1) Includes $866,900 of Membership stock and $1,639,700 of Activity stock due to short-term borrowings.

Fixed Maturity Securities

The following tables summarize unrealized losses on fixed maturity securities available for sale, which were carried at estimated fair value, at March 31, 2021 and December 31, 2020. The unrealized losses were primarily related to interest rate fluctuations and uncertainties relating to COVID-19. The tables set forth unrealized losses by duration with the fair value of the related fixed maturity securities:

	Unrealized Losses for Less than Twelve Months	Fair Value	Unrealized Losses for More than Twelve Months	Fair Value	Total Unrealized Loss	Fair Value
At March 31, 2021
Obligations of States and Political Subdivisions	$ 24,569	$ 778,979	$ -	$ -	$ 24,569	$ 778,979
Corporate Securities	137,661	9,760,180	363,697	9,199,818	501,358	18,959,998
Mortgage and other asset-backed securities	90,713	5,235,918	145,834	2,026,009	236,547	7,261,927
Total unrealized losses	$ 252,943	$ 15,775,077	$ 509,531	$ 11,225,827	$ 762,474	$ 27,000,904
At December 31, 2020
Obligations of States and Political Subdivisions	$ 1,261	$ 206,812	$ -	$ -	$ 1,261	$ 206,812
Corporate Securities	242,596	9,919,298	438,882	2,593,026	681,478	12,512,324
Mortgage and other asset-backed securities	266,522	3,455,574	584	51,961	267,106	3,507,535
Total unrealized losses	$ 510,379	$ 13,581,684	$ 439,466	$ 2,644,987	$ 949,845	$ 16,226,671

There were 79 securities with fair value of 97.3% of amortized cost at March 31, 2021. There were 63 securities with fair value of 94.7% of amortized cost at December 31, 2020. No credit losses have been recognized for the three months ended March 31, 2021 and 2020.

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

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 following table presents a rollforward of the Company's cumulative other than temporary credit impairments (“OTTI”) recognized in earnings on fixed maturity securities available for sale for the three months ended March 31:

	2021	2020
Balance of credit-related OTTI at January 1	$ 370,975	$ -

Additions for credit impairments recognized on:
Securities not previously impaired	-	-
Securities previously impaired	-	-

Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period (realized)	-	-
Securities due to an increase in expected cash flows	-	-

Balance of credit-related OTTI at March 31	$ 370,975	$ -

The amortized cost and estimated fair value of fixed maturity securities available for sale at March 31, 2021, 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 Cost	Estimated Fair Value
Due in 1 year	$ 21,362,110	$ 21,444,660
Due in 2-5 years	66,817,800	71,062,356
Due in 5-10 years	70,609,309	77,487,611
Due in more than 10 years	68,036,255	78,817,785
Mortgage-backed securities	29,799,733	30,455,635
Redeemable preferred stock	269,214	282,481
Total	$ 256,894,421	$ 279,550,528

The Company is a member of the Federal Home Loan Bank of Des Moines and Dallas (“FHLB”). The Company pledged a total of $40,000,000, par value, of United States Treasury fixed maturity securities with the FHLB at March 31, 2021. These securities are used as collateral on any cash borrowings from the FHLB. As of March 31, 2021, the Company did not have any amounts outstanding with the FHLB and its estimated remaining maximum borrowing capacity was $38,559,265.

Investment Related Earnings

The Company’s net realized gains and losses from sales, calls, and maturities, unrealized gains and losses on equity securities, and other than temporary impairments are summarized as follows:

	Three Months Ended March 31
	2021	2020
Fixed maturity securities:
Gross realized gains	$ 97,622	$ 95,821
Gross realized losses	(24,997)	-

Equity securities:
Gains (losses) on securities sold	106,569	(57,442)
Unrealized gains and (losses) on securities held at the end of the period	952,030	(2,761,856)

Other assets:
Gross realized gains	1,109,358	457,028
Gross realized losses	(280,469)	(945,798)
Total	$ 1,960,113	$ (3,212,247)

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

Information regarding sales of fixed maturity securities available for sale is summarized as follows:

	Three Months Ended March 31
	2021	2020
Proceeds from sales	$ 819,565	$ 645,750
Gross realized gains	59,794	79,411
Gross realized losses	-	-

Major categories of net investment income are as follows:

	Three Months Ended March 31
	2021	2020
Fixed maturity securities	$ 2,824,111	$ 2,924,714
Equity securities	128,229	92,042
Mortgage loans held for investment	6,084,417	5,653,890
Real estate	3,042,829	3,153,385
Policy loans	232,353	233,966
Insurance assignments	5,345,729	4,299,205
Other investments	13,707	25,023
Cash and cash equivalents	39,594	298,005
Gross investment income	17,710,969	16,680,230
Investment expenses	(3,417,082)	(3,279,731)
Net investment income	$ 14,293,887	$ 13,400,499

Net investment income includes income earned by the restricted assets cemeteries and mortuaries of $161,211 and $110,639 for the three months ended March 31, 2021 and 2020, respectively.

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

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

Securities on deposit with regulatory authorities as required by law amounted to $9,864,903 at March 31, 2021 and $9,684,409 at December 31, 2020. These restricted securities are included in various assets under investments on the accompanying condensed consolidated balance sheets.

There were no investments, aggregated by issuer, in excess of 10% of shareholders’ equity (before net unrealized gains and losses on equity securities and fixed maturity securities) at March 31, 2021, other than investments issued or guaranteed by the United States Government.

Real Estate Held for Investment and Held for Sale

The Company strategically deploys resources into real estate to match the income and yield durations of its primary obligations. The sources for these real estate assets come through its various business units in the form of acquisition, development and mortgage foreclosures.

Commercial Real Estate Held for Investment and Held for Sale

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

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

The Company currently owns and operates 11 commercial properties in 5 states. These properties include office buildings, a funeral home, flex office space, and includes the redevelopment and expansion of its corporate campus (“Center53”) in Salt Lake City, Utah. The Company also holds undeveloped land that may be used for future commercial developments. The Company uses bank debt in strategic cases to leverage established yields or to acquire a higher quality or different class of asset.

The aggregated net ending balance of commercial real estate that serves as collateral for bank loans was $99,547,615 and $71,517,902 as of March 31, 2021 and December 31, 2020, respectively. The associated bank loan carrying values totaled $55,831,600 and $46,153,283 as of March 31, 2021 and December 31, 2020, respectively.

During the three months ended March 31, 2021 and 2020, the Company recorded impairment losses on commercial real estate held for sale of $-0- and $31,429, respectively. These impairment losses relate to an office building held by the life insurance segment. Impairment losses are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings.

The following is a summary of the Company’s commercial real estate held for investment for the periods presented:

	Net Ending Balance		Total Square Footage
	March 31 2021	December 31 2020	March 31 2021	December 31 2020
Utah (1)	$ 111,008,057	$ 100,927,528	379,066	379,066
Louisiana	2,981,296	2,998,684	84,841	84,841
Mississippi	2,909,508	2,914,498	21,521	21,521
California	389,145	-	2,872	-

	$ 117,288,006	$ 106,840,710	488,300	485,428

(1) Includes Center53 phase 1 and phase 2 which is under construction.

The following is a summary of the Company’s commercial real estate held for sale for the periods presented:

	Net Ending Balance		Total Square Footage
	March 31 2021	December 31 2020	March 31 2021	December 31 2020
Kansas	4,000,000	4,000,000	222,679	222,679
Texas (1)	249,000	249,000	-	-
Mississippi	151,553	151,553	-	-

	$ 4,400,553	$ 4,400,553	222,679	222,679

(1) Improved commercial pad

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

Residential Real Estate Held for Investment and Held for Sale

The Company owns a small portfolio of residential homes primarily as a result of loan foreclosures. The Company has the option to sell them or to continue to hold them for cash flow and acceptable returns. The Company also invests in residential subdivision land developments.

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

As of March 31, 2021, SNRE manages 5 residential properties in 4 states across the United States.

The net ending balance of foreclosed residential real estate included in residential real estate held for investment and sale is $1,657,285 and $4,327,079 as of March 31, 2021 and December 31, 2020, respectively.

During the three months ended March 31, 2021 and 2020 the Company did not record any impairment losses on residential real estate held for investment or held for sale. Impairment losses, if any, are included in gains (losses) on investment and other assets on the condensed consolidated statements of earnings.

The following is a summary of the Company’s residential real estate held for investment for the periods presented:

	Net Ending Balance
	March 31 2021	December 31 2020
Utah (1)	39,466,349	$ 24,557,562
Washington (2)	286,181	286,181
	$ 39,752,530	$ 24,843,743

(1) Includes subdivision land developments

(2) Improved residential lots

Additional information regarding the Company’s subdivision land developments in Utah is summarized as follows:

	March 31 2021	December 31 2020
Lots available for sale	81	36
Lots to be developed	369	350
Ending Balance (1)	$ 39,251,557	$ 23,777,478

(1) The estimated remaining cost to complete the undeveloped lots is $15,613,000 and $17,354,000 as of March 31, 2021 and December 31, 2020, respectively.

The following is a summary of the Company’s residential real estate held for sale for the periods presented:

	Net Ending Balance
	March 31 2021	December 31 2020
Nevada	$ 979,640	$ 979,640
Florida	166,673	744,322
Ohio	10,000	10,000
Utah	-	1,744,292
	$ 1,156,313	$ 3,478,254

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

Real Estate Owned and Occupied by the Company

The primary business units of the Company occupy a portion of the real estate owned by the Company. As of March 31, 2021, real estate owned and occupied by the Company is summarized as follows:

Location	Business Segment	Approximate Square Footage	Square Footage Occupied by the Company
121 W. Election Rd., Draper, UT	Corporate Offices, Life Insurance and Cemetery/Mortuary Operations	78,979	18%
5201 Green Street, Salt Lake City, UT (1)	Life Insurance and Mortgage Operations	39,157	73%
1044 River Oaks Dr., Flowood, MS	Life Insurance Operations	19,694	28%
1818 Marshall Street, Shreveport, LA (1)	Life Insurance Operations	12,274	100%
909 Foisy Street, Alexandria, LA (1)	Life Insurance Sales	8,059	100%
812 Sheppard Street, Minden, LA (1)	Life Insurance Sales	1,560	100%
1550 N 3rd Street, Jena, LA (1)	Life Insurance Sales	1,737	100%

(1) Included in property and equipment on the condensed consolidated balance sheets

Mortgage Loans Held for Investment

Mortgage loans held for investment consist of first and second mortgages. The mortgage loans bear interest at rates ranging from 2.0% to 10.5%, maturity dates range from nine months to 30 years and are secured by real estate. Concentrations of credit risk arise when a number of mortgage loan debtors have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Although the Company has a diversified mortgage loan portfolio consisting of residential mortgages, commercial loans and residential construction loans and requires collateral on all real estate exposures, a substantial portion of its debtors’ ability to honor obligations is reliant on the economic stability of the geographic region in which the debtors do business. At March 31, 2021, the Company had 54%, 14%, 9%, 3%, 3% and 3% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, California, Nevada, and Arizona, respectively. At December 31, 2020, the Company had 57%, 13%, 9%, 4%, 3% and 3% of its mortgage loans from borrowers located in the states of Utah, Florida, Texas, California, Nevada and Arizona, respectively.

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

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

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

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

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

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

Residential – Secured by family dwelling units. These loans are secured by first mortgages on the unit, which are generally the primary residence of the borrower, generally at a loan-to-value ratio (“LTV”) of 80% or less.

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

The Company establishes a valuation allowance for credit losses in its mortgage loans held for investment portfolio. The following is a summary of the allowance for loan losses as a contra-asset account for the periods presented:

	Commercial	Residential	Residential Construction	Total
March 31, 2021
Allowance for credit losses:
Beginning balance - January 1, 2021	$ 187,129	$ 1,774,796	$ 43,202	$ 2,005,127
Charge-offs	-	-	-	-
Provision	-	(107,972)	-	(107,972)
Ending balance - March 31, 2021	$ 187,129	$ 1,666,824	$ 43,202	$ 1,897,155

Ending balance: individually evaluated for impairment	$ -	$ 207,578	$ -	$ 207,578

Ending balance: collectively evaluated for impairment	$ 187,129	$ 1,459,246	$ 43,202	$ 1,689,577

Mortgage loans:
Ending balance	$ 55,065,455	$ 88,266,355	$ 105,450,591	$ 248,782,401

Ending balance: individually evaluated for impairment	$ 1,068,365	$ 4,436,082	$ 200,963	$ 5,705,410

Ending balance: collectively evaluated for impairment	$ 53,997,090	$ 83,830,273	$ 105,249,628	$ 243,076,991

December 31, 2020
Allowance for credit losses:
Beginning balance	$ 187,129	$ 1,222,706	$ 43,202	$ 1,453,037
Charge-offs	-	-	-	-
Provision	-	552,090	-	552,090
Ending balance	$ 187,129	$ 1,774,796	$ 43,202	$ 2,005,127

Ending balance: individually evaluated for impairment	$ -	$ 219,905	$ -	$ 219,905

Ending balance: collectively evaluated for impairment	$ 187,129	$ 1,554,891	$ 43,202	$ 1,785,222

Mortgage loans:
Ending balance	$ 46,836,866	$ 111,111,777	$ 95,822,448	$ 253,771,091

Ending balance: individually evaluated for impairment	$ 2,148,827	$ 7,932,680	$ 200,963	$ 10,282,470

Ending balance: collectively evaluated for impairment	$ 44,688,039	$ 103,179,097	$ 95,621,485	$ 243,488,621

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

	Commercial	Residential	Residential Construction	Total
March 31, 2021
30-59 Days Past Due	$ -	$ 4,352,659	$ 301,071	$ 4,653,730
60-89 Days Past Due	2,027,048	1,317,057	-	3,344,105
Greater Than 90 Days (1)	817,429	2,522,314	-	3,339,743
In Process of Foreclosure (1)	250,936	1,913,768	200,963	2,365,667
Total Past Due	3,095,413	10,105,798	502,034	13,703,245
Current	51,970,042	78,160,557	104,948,557	235,079,156
Total Mortgage Loans	55,065,455	88,266,355	105,450,591	248,782,401
Allowance for Loan Losses	(187,129)	(1,666,824)	(43,202)	(1,897,155)
Unamortized deferred loan fees, net	(115,893)	(951,108)	(156,013)	(1,223,014)
Unamortized discounts, net	(358,587)	(351,693)	-	(710,280)
Net Mortgage Loans	$ 54,403,846	$ 85,296,730	$ 105,251,376	$ 244,951,952

December 31, 2020
30-59 Days Past Due	$ 233,200	$ 5,866,505	$ 127,191	$ 6,226,896
60-89 Days Past Due	812,780	2,048,148	-	2,860,928
Greater Than 90 Days (1)	2,148,827	5,669,583	-	7,818,410
In Process of Foreclosure (1)	-	2,263,097	200,963	2,464,060
Total Past Due	3,194,807	15,847,333	328,154	19,370,294
Current	43,642,059	79,975,115	110,783,623	234,400,797
Total Mortgage Loans	46,836,866	95,822,448	111,111,777	253,771,091
Allowance for Loan Losses	(187,129)	(1,774,796)	(43,202)	(2,005,127)
Unamortized deferred loan fees, net	(32,557)	(909,864)	(218,711)	(1,161,132)
Unamortized discounts, net	(880,721)	(380,175)	-	(1,260,896)
Net Mortgage Loans	$ 45,736,459	$ 92,757,613	$ 110,849,864	$ 249,343,936

(1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure.

Impaired Mortgage Loans Held for Investment

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

	Recorded Investment	Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
March 31, 2021
With no related allowance recorded:
Commercial	$ 1,068,365	$ 1,068,365	$ -	$ 1,068,365	$ -
Residential	3,054,262	3,054,262	-	3,054,262	-
Residential construction	200,963	200,963	-	200,963	-

With an allowance recorded:
Commercial	$ -	$ -	$ -	$ -	$ -
Residential	1,381,820	1,381,820	207,578	1,381,820	-
Residential construction	-	-	-	-	-

Total:
Commercial	$ 1,068,365	$ 1,068,365	$ -	$ 1,068,365	$ -
Residential	4,436,082	4,436,082	207,578	4,436,082	-
Residential construction	200,963	200,963	-	200,963	-

December 31, 2020
With no related allowance recorded:
Commercial	$ 2,148,827	$ 2,148,827	$ -	$ 1,866,819	$ -
Residential	6,415,419	6,415,419	-	5,010,078	-
Residential construction	200,963	200,963	-	555,278	-

With an allowance recorded:
Commercial	$ -	$ -	$ -	$ -	$ -
Residential	1,517,261	1,517,261	219,905	1,182,368	-
Residential construction	-	-	-	-	-

Total:
Commercial	$ 2,148,827	$ 2,148,827	$ -	$ 1,866,819	$ -
Residential	7,932,680	7,932,680	219,905	6,192,446	-
Residential construction	200,963	200,963	-	555,278	-

Credit Risk Profile Based on Performance Status

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

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

	Commercial		Residential		Residential Construction		Total
	March 31, 2021	December 31, 2020	March 31, 2021	December 31, 2020	March 31, 2021	December 31, 2020	March 31, 2021	December 31, 2020

Performing	$ 53,997,090	$ 44,688,039	$ 83,830,273	$ 87,889,768	$ 105,249,628	$ 110,910,814	$ 243,076,991	$ 243,488,621
Non-performing	1,068,365	2,148,827	4,436,082	7,932,680	200,963	200,963	5,705,410	10,282,470

Total	$ 55,065,455	$ 46,836,866	$ 88,266,355	$ 95,822,448	$ 105,450,591	$ 111,111,777	$ 248,782,401	$ 253,771,091

Non-Accrual Mortgage Loans Held for Investment

Once a loan is past due 90 days, it is the policy of the Company to end the accrual of interest income on the loan and write off any interest income that had been accrued. Payments received for loans on a non-accrual status are recognized on a cash basis. Interest income recognized from any payments received for loans on a non-accrual status was immaterial. Accrual of interest resumes if a loan is brought current. Interest not accrued on these loans totals approximately $321,000 and $491,000 as of March 31, 2021 and December 31, 2020, respectively.

The following is a summary of mortgage loans held for investment on a non-accrual status for the periods presented.

	As of March 31 2021	As of December 31 2020
Commercial	$ 1,068,365	$ 2,148,827
Residential	4,436,082	7,932,680
Residential construction	200,963	200,963
Total	$ 5,705,410	$ 10,282,470