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8) Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Table Text Block Supplement [Abstract]

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

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at March 31, 2021.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$ 279,550,528		$ -		$ 277,359,435		$ 2,191,093
Equity securities	11,154,495		11,154,495		-		-
Loans held for sale	304,030,372		-		-		304,030,372
Restricted assets (1)	1,456,017		-		1,456,017		-
Restricted assets (2)	2,704,704		2,704,704		-		-
Cemetery perpetual care trust investments (1)	738,979		-		738,979		-
Cemetery perpetual care trust investments (2)	2,208,138		2,208,138		-		-
Derivatives - loan commitments (3)	10,671,623		-		-		10,671,623
Total assets accounted for at fair value on a recurring basis	$ 612,514,856		$ 16,067,337		$ 279,554,431		$ 316,893,088
Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (4)	$ (79,567)		$ (79,567)		$ -		$ -
Derivatives - loan commitments (4)	(228,547)		-		-		(228,547)
Total liabilities accounted for at fair value on a recurring basis	$ (308,114)		$ (79,567)		$ -		$ (228,547)

(1) Fixed maturity securities available for sale

(2) Equity securities

(3) Included in other assets on the consolidated balance sheets

(4) Included in other liabilities and accrued expenses on the consolidated balance sheets

The following tables summarize Level 1, 2 and 3 financial assets and financial liabilities measured at fair value on a recurring basis by their classification in the condensed consolidated balance sheet at December 31, 2020.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturity securities available for sale	$ 294,656,679		$ -		$ 292,455,504		$ 2,201,175
Equity securities	11,324,239		11,324,239		-		-
Loans held for sale	422,772,418		-		-		422,772,418
Restricted assets (1)	1,473,637		-		1,473,637		-
Restricted assets (2)	2,515,778		2,515,778		-		-
Cemetery perpetual care trust investments (1)	747,767		-		747,767		-
Cemetery perpetual care trust investments (2)	2,062,303		2,062,303		-		-
Derivatives - loan commitments (3)	12,592,672		-		-		12,592,672
Total assets accounted for at fair value on a recurring basis	$ 748,145,493		$ 15,902,320		$ 294,676,908		$ 437,566,265
Liabilities accounted for at fair value on a recurring basis
Derivatives - call options (4)	$ (43,097)		$ (43,097)		$ -		$ -
Derivatives - loan commitments (4)	(2,464,062)		-		-		(2,464,062)
Total liabilities accounted for at fair value on a recurring basis	$ (2,507,159)		$ (43,097)		$ -		$ (2,464,062)

(1) Fixed maturity securities available for sale

(2) Equity securities

(3) Included in other assets on the consolidated balance sheets

(4) Included in other liabilities and accrued expenses on the consolidated balance sheets

Assets and liabilities measured at fair value on a recurring basis

For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

						Significant		Range of Inputs
		Fair Value at		Valuation		Unobservable		Minimum	Maximum		Weighted
		3/31/2021		Technique		Input(s)		Value	Value		Average
Loans held for sale		$ 304,030,372		Market approach		Investor contract pricing as a percentage of unpaid principal balance		95.0%	109.0%		103.0%
Derivatives - loan commitments (net)		10,443,076		Market approach		Pull-through rate		61.0%	92.0%		82.0%
						Initial-Value		N/A	N/A		N/A
						Servicing		0 bps	129 bps		55 bps
Fixed maturity securities available for sale		2,191,093		Broker quotes		Pricing quotes		$ 90.83	$ 119.33		$ 113.57

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:

						Significant		Range of Inputs
		Fair Value at		Valuation		Unobservable		Minimum	Maximum		Weighted
		12/31/2020		Technique		Input(s)		Value	Value		Average
Loans held for sale		$ 422,772,418		Market approach		Investor contract pricing as a percentage of unpaid principal balance		99.0%	110.0%		104.0%
Derivatives - loan commitments (net)		10,128,610		Market approach		Pull-through rate		52.0%	92.0%		81.0%
						Initial-Value		N/A	N/A		N/A
						Servicing		0 bps	184 bps		58 bps
Fixed maturity securities available for sale		2,201,175		Broker quotes		Pricing quotes		$ 90.83	$ 119.33		$ 113.47

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

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

		Net Loan Commitments		Loans Held for Sale		Fixed Maturity Securities Available for Sale
Balance - December 31, 2020		$ 10,128,610		$ 422,772,418		$ 2,201,175
Originations and purchases		-		1,449,841,009		-
Sales, maturities and paydowns		-		(1,614,880,058)		(11,100)
Transfer to mortgage loans held for investment		-		(201,951)		-
Total gains (losses):
Included in earnings		314,466	(1)	46,498,954	(1)	893	(2)
Included in other comprehensive income		-		-		125
Balance - March 31, 2021		$ 10,443,076		$ 304,030,372		$ 2,191,093

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

(2) As a component of Net investment income on the condensed consolidated statements of earnings

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

		Net Loan Commitments		Loans Held for Sale		Fixed Maturity Securities Available for Sale
Balance - December 31, 2019		$ 2,491,233		$ 213,457,632		$ 3,216,382
Originations and purchases		-		792,193,592		-
Sales, maturities and paydowns		-		(739,130,456)		(10,300)
Transfer to mortgage loans held for investment		-		(8,933,676)		-
Total gains (losses):
Included in earnings		3,275,032	(1)	23,465,484	(1)	828	(2)
Included in other comprehensive income		-		-		68,416
Balance - March 31, 2020		$ 5,766,265		$ 281,052,576		$ 3,275,326

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

(2) As a component of Net investment income on the condensed consolidated statements of earnings

Fair Value Assets Measured on a Nonrecurring Basis

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 condensed consolidated balance sheet at March 31, 2021.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Impaired mortgage loans held for investment	$ 1,174,242		$ -		$ -		$ 1,174,242
Total assets accounted for at fair value on a nonrecurring basis	$ 1,174,242		$ -		$ -		$ 1,174,242

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 condensed consolidated balance sheet at December 31, 2020.

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a nonrecurring basis
Impaired mortgage loans held for investment	$ 1,297,356		$ -		$ -		$ 1,297,356
Impaired real estate held for sale	4,249,000		-		-		4,249,000
Total assets accounted for at fair value on a nonrecurring basis	$ 5,546,356		$ -		$ -		$ 5,546,356

Schedule of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of March 31, 2021:

	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$ 85,296,730		$ -		$ -		$ 90,940,077		$ 90,940,077
Residential construction	105,251,376		-		-		105,251,376		105,251,376
Commercial	54,403,846		-		-		55,014,500		55,014,500
Mortgage loans held for investment, net	$ 244,951,952		$ -		$ -		$ 251,205,953		$ 251,205,953
Policy loans	13,946,739		-		-		13,946,739		13,946,739
Insurance assignments, net (1)	52,955,925		-		-		52,955,925		52,955,925
Restricted assets (2)	3,076,760		-		-		3,076,760		3,076,760
Cemetery perpetual care trust investments (2)	1,450,600		-		-		1,450,600		1,450,600
Mortgage servicing rights, net	42,779,361		-		-		55,087,150		55,087,150
Liabilities
Bank and other loans payable	$ (245,973,378)		$ -		$ -		$ (245,973,378)		$ (245,973,378)
Policyholder account balances (3)	(43,728,587)		-		-		(42,141,870)		(42,141,870)
Future policy benefits - annuities (3)	(108,202,268)		-		-		(112,119,227)		(112,119,227)

(1) Included in other investments and policy loans on the condensed consolidated balance sheets

(2) Mortgage loans held for investment

(3) Included in future policy benefits and unpaid claims on the condensed consolidated balance sheets

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows as of December 31, 2020:

	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Assets
Mortgage loans held for investment
Residential	$ 92,757,613		$ -		$ -		$ 100,384,283		$ 100,384,283
Residential construction	110,849,864		-		-		110,849,864		110,849,864
Commercial	45,736,459		-		-		45,259,425		45,259,425
Mortgage loans held for investment, net	$ 249,343,936		$ -		$ -		$ 256,493,572		$ 256,493,572
Policy loans	14,171,589		-		-		14,171,589		14,171,589
Insurance assignments, net (1)	51,585,656		-		-		51,585,656		51,585,656
Restricted assets (2)	3,317,877		-		-		3,317,877		3,317,877
Cemetery perpetual care trust investments (2)	1,468,600		-		-		1,468,600		1,468,600
Mortgage servicing rights, net	35,210,516		-		-		38,702,358		38,702,358
Liabilities
Bank and other loans payable	$ (297,824,368)		$ -		$ -		$ (297,824,368)		$ (297,824,368)
Policyholder account balances (3)	(44,026,809)		-		-		(42,220,725)		(42,220,725)
Future policy benefits - annuities (3)	(106,522,113)		-		-		(112,354,186)		(112,354,186)

(1) Included in other investments and policy loans on the consolidated balance sheets

(2) Mortgage loans held for investment

(3) Included in future policy benefits and unpaid claims on the consolidated balance sheets

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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