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8) Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30, 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  $       348,628,792    $                        -    $     346,407,400    $          2,221,392
Equity securities             11,791,511              11,791,511                              -                               -
Loans held for sale           356,949,958                              -                              -            356,949,958
Restricted assets (1)               1,041,792                              -               1,041,792                               -
Restricted assets (2)               1,987,801                1,987,801                              -                               -
Cemetery perpetual care trust investments (1)               1,003,687                              -               1,003,687                               -
Cemetery perpetual care trust investments (2)               1,668,029                1,668,029                              -                               -
Derivatives - loan commitments (3)             12,702,945                              -                              -              12,702,945
Total assets accounted for at fair value on a
   recurring basis		  $       735,774,515    $        15,447,341    $     348,452,879    $      371,874,295
               
Liabilities accounted for at fair value on a
   recurring basis		              
Derivatives - call options (4)  $              (73,451)    $             (73,451)    $                        -    $                         -
Derivatives - put options (4)                  (49,136)                   (49,136)                              -                               -
Derivatives - loan commitments (4)             (1,658,581)                              -                              -              (1,658,581)
Total liabilities accounted for at fair value
   on a recurring basis 		 $         (1,781,168)    $           (122,587)    $                        -    $        (1,658,581)
                                            
(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, 2019.

 

  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  $       355,977,820    $                        -    $     352,761,438    $          3,216,382
Equity securities               7,271,165                7,271,165                              -                               -
Loans held for sale           213,457,632                              -                              -            213,457,632
Restricted assets (1)               1,008,867                              -               1,008,867                               -
Restricted assets (2)               1,976,480                1,976,480                              -                               -
Cemetery perpetual care trust investments (1)                  975,673                              -                  975,673                               -
Cemetery perpetual care trust investments (2)               1,605,451                1,605,451                              -                               -
Derivatives - loan commitments (3)               2,722,580                              -                              -                2,722,580
Total assets accounted for at fair value on a
   recurring basis		  $       584,995,668    $        10,853,096    $     354,745,978    $      219,396,594
               
Liabilities accounted for at fair value on a
   recurring basis		              
Derivatives - call options (4)  $              (62,265)    $             (62,265)    $                        -    $                         -
Derivatives - put options (4)                  (22,282)                   (22,282)                              -                               -
Derivatives - loan commitments (4)                (231,347)                              -                              -                 (231,347)
Total liabilities accounted for at fair value
   on a recurring basis 		 $            (315,894)    $             (84,547)    $                        -    $           (231,347)
                                            
(1) Fixed maturity securities available for sale              
(2) Mutual funds and equity securities              
(3) Included in other assets on the condensed consolidated balance sheets        
(4) Included in other liabilities and accrued expenses on the condensed 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 June 30, 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
    6/30/2020   Technique   Input(s)   Value Value   Average
Loans held for sale    $   356,949,958   Market approach   Investor contract pricing as a percentage of unpaid principal balance   99.0% 109.0%   104.0%
                       
Derivatives - loan commitments (net)           11,044,365   Market approach   Fall-out factor   1.0% 92.0%   80.0%
            Initial-Value   N/A N/A   N/A
            Servicing   0 bps 190 bps   58 bps
                       
Fixed maturity securities available for sale             2,221,392   Broker quotes   Pricing quotes    $    91.49  $  119.33    $   113.29

 

For Level 3 assets and liabilities measured at fair value on a recurring basis as of December 31, 2019, 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
    12/31/2019   Technique   Input(s)   Value Value   Average
Loans held for sale    $   213,457,632   Market approach   Investor contract pricing as a percentage of unpaid principal balance   98.0% 109.0%   103.0%
                       
Derivatives - loan commitments (net)             2,491,233   Market approach   Fall-out factor   1.0% 92.0%   81.0%
            Initial-Value   N/A N/A   N/A
            Servicing   0 bps 318 bps   79 bps
                       
Fixed maturity securities available for sale             3,216,382   Broker quotes   Pricing quotes   $    95.02 $  115.80    $   107.98
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, 2019    $         2,491,233    $      213,457,632    $               3,216,382  
Originations and purchases                              -         2,105,048,030                                   -  
Sales, maturities and paydowns                              -        (2,017,976,791)                   (1,020,800)  
Transfer to mortgage loans held for investment                              -               (8,933,676)                                   -  
Total gains (losses):              
Included in earnings               8,553,132 (1)            65,354,763 (1)                          1,672 (2)
Included in other comprehensive income                              -                               -                          24,138  
               
Balance - June 30, 2020    $       11,044,365    $      356,949,958    $               2,221,392  
                                        
(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 Derivatives Loan Commitments    Loans Held for Sale    Fixed Maturity Securities Available for Sale
             
Balance - December 31, 2018    $           1,591,816    $      136,210,853    $                             -
Originations/purchases                                -         2,606,839,175                                   -
Sales                                -        (2,580,875,055)                                   -
Transfer to mortgage loans held for investment                                -             (31,881,851)                                   -
Transfer from fixed maturity securities held to maturity                                -                               -                    3,216,382
Total gains (losses):            
Included in earnings (1)                    899,417              83,164,510                                   -
             
Balance - December 31, 2019    $           2,491,233    $      213,457,632    $              3,216,382
                                          
(1) As a component of mortgage fee 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 June 30, 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  $     1,995,521    $                      -       $              -       $     1,995,521
Total assets accounted for at fair value on a nonrecurring basis  $     1,995,521    $                        -    $                -    $     1,995,521

 

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, 2019.

 

  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  $        1,302,025    $                        -    $                -    $        1,302,025
Impaired real estate held for investment            8,375,884                              -                      -              8,375,884
Total assets accounted for at fair value on
   a nonrecurring basis		  $        9,677,909    $                        -    $                -    $        9,677,909
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 June 30, 2020:

 

  Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value
Assets                  
Mortgage loans held for investment                  
   Residential  $     105,466,412    $                  -    $                      -    $     110,991,353    $     110,991,353
   Residential construction         106,386,812                        -                            -           106,386,812           106,386,812
   Commercial           48,564,780                        -                            -             48,187,935             48,187,935
Mortgage loans held for investment, net  $     260,418,004    $                  -    $                      -    $     265,566,100    $     265,566,100
Policy loans           14,450,587                        -                            -             14,450,587             14,450,587
Insurance assignments, net (1)           41,742,986                        -                            -             41,742,986             41,742,986
Restricted assets (2)             3,422,731                        -                            -               3,422,731               3,422,731
Cemetery perpetual care trust investments (2)                524,000                        -                            -                  524,000                  524,000
Mortgage servicing rights, net           21,695,123                        -                            -             22,921,824             22,921,824
                   
Liabilities                  
Bank and other loans payable  $   (347,139,008)    $                  -    $                      -    $   (347,139,008)    $   (347,139,008)
Policyholder account balances (3)         (44,656,276)                        -                            -           (41,469,707)           (41,469,707)
Future policy benefits - annuities (3)       (111,726,731)                        -                            -         (115,708,414)         (115,708,414)
                                                  
(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, 2019:

 

  Carrying Value   Level 1   Level 2   Level 3   Total Estimated Fair Value
Assets                  
Mortgage loans held for investment                  
   Residential  $     110,253,678    $                  -    $                      -    $     115,320,638    $     115,320,638
   Residential construction           88,651,967                        -                            -             88,651,967             88,651,967
   Commercial           37,788,901                        -                            -             39,289,462             39,289,462
Mortgage loans held for investment, net  $     236,694,546    $                  -    $                      -    $     243,262,067    $     243,262,067
Policy loans           14,762,805                        -                            -             14,762,805             14,762,805
Insurance assignments, net (1)           39,614,939                        -                            -             39,614,939             39,614,939
Restricted assets (2)             2,275,756                        -                            -               2,289,679               2,289,679
Cemetery perpetual care trust investments (2)                524,000                        -                            -                  536,553                  536,553
Mortgage servicing rights, net           17,155,529                        -                            -             22,784,571             22,784,571
                   
Liabilities                  
Bank and other loans payable  $   (217,572,612)    $                  -    $                      -    $   (217,572,612)    $   (217,572,612)
Policyholder account balances (3)         (45,154,180)                        -                            -           (41,828,469)           (41,828,469)
Future policy benefits - annuities (3)       (113,579,830)                        -                            -         (117,304,614)         (117,304,614)
                                                  
(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