Quarterly Report



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2017, or

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from   _____ to ________

Commission file number:   000-09341

SECURITY NATIONAL FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)

UTAH
87-0345941
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
5300 South 360 West, Suite 250, Salt Lake City, Utah
84123
(Address of principal executive offices)
(Zip Code)
   
 (801) 264-1060
(Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 
Large accelerated filer [  ]
Accelerated filer [  ]
 
Non-accelerated filer [  ] (Do not check if a smaller reporting company)
Smaller reporting company [X]
 
  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No[X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class A Common Stock, $2.00 par value
13,820,079
Title of Class
Number of Shares Outstanding as of
 
May 11, 2017
   
Class C Common Stock, $2.00 par value
2,005,026
Title of Class
Number of Shares Outstanding as of
 
May 11, 2017



SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
FORM 10-Q

QUARTER ENDED MARCH 31, 2017

Table of Contents


   
Page No.
 
Part I  - Financial Information
 
Item 1.
Financial Statements
 
     
 
Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (unaudited)
3-4
     
 
Condensed Consolidated Statements of Earnings for the Three Months Ended March 31, 2017 and 2016 (unaudited)
5
     
 
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2017 and 2016 (unaudited)
6
     
 
Condensed Consolidated Statements of Stockholders' Equity as of March 31, 2017 and March 31, 2016 (unaudited)
7
     
 
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016 (unaudited)
8
     
 
Notes to Condensed Consolidated Financial Statements (unaudited)
9
     
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
38
     
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
42
     
Item 4.
Controls and Procedures
42
 
Part II - Other Information
 
     
Item 1.
Legal Proceedings
43
     
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
44
     
Item 3.
Defaults Upon Senior Securities
44
     
Item 4.
Mine Safety Disclosures
44
     
Item 5.
Other Information
44
     
Item 6.
Exhibits
45
     
 
Signature Page
46

2


SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

Part I - Financial Information

Item 1.  Financial Statements.

Assets
 
March 31
2017
   
December 31
2016
 
Investments:
 
(Unaudited)
       
Fixed maturity securities, held to maturity, at amortized cost
 
$
186,445,498
   
$
184,979,644
 
Equity securities, available for sale, at estimated fair value
   
10,735,239
     
10,573,356
 
Mortgage loans on real estate and construction loans, held for investment net of allowances for loan losses of $1,955,443 and $1,748,783 for 2017 and 2016
   
134,123,773
     
149,181,578
 
Real estate held for investment, net of accumulated depreciation of $16,732,122 and $16,138,439 for 2017 and 2016
   
151,417,470
     
145,165,921
 
Policy loans and other investments, net of allowances for doubtful accounts of $1,050,111 and $1,119,630 for 2017 and 2016
   
41,773,152
     
40,937,146
 
Short-term investments
   
28,346,922
     
27,560,040
 
Accrued investment income
   
3,008,839
     
2,972,596
 
Total investments
   
555,850,893
     
561,370,281
 
Cash and cash equivalents
   
85,069,717
     
38,987,430
 
Mortgage loans sold to investors
   
54,401,522
     
82,491,091
 
Receivables, net
   
15,736,045
     
18,870,119
 
Restricted assets
   
10,230,360
     
10,391,394
 
Cemetery perpetual care trust investments
   
4,211,337
     
4,131,885
 
Receivable from reinsurers
   
13,227,385
     
13,079,668
 
Cemetery land and improvements
   
10,641,141
     
10,672,836
 
Deferred policy and pre-need contract acquisition costs
   
71,643,040
     
69,118,745
 
Mortgage servicing rights, net
   
19,432,993
     
18,872,362
 
Property and equipment, net
   
8,478,347
     
8,791,522
 
Value of business acquired
   
7,375,084
     
7,570,300
 
Goodwill
   
2,765,570
     
2,765,570
 
Other
   
8,141,683
     
6,891,468
 
                 
Total Assets
 
$
867,205,117
   
$
854,004,671
 

See accompanying notes to condensed consolidated financial statements (unaudited).
3


SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

   
March 31
2017
   
December 31
2016
 
Liabilities and Stockholders' Equity
 
(Unaudited)
       
Liabilities
           
Future life, annuity, and other benefits
 
$
589,405,726
   
$
585,610,063
 
Unearned premium reserve
   
4,405,472
     
4,469,771
 
Bank and other loans payable
   
61,548,686
     
53,718,548
 
Deferred pre-need cemetery and mortuary contract revenues
   
12,350,470
     
12,360,249
 
Cemetery perpetual care obligation
   
3,624,895
     
3,598,580
 
Accounts payable
   
3,113,519
     
4,213,109
 
Other liabilities and accrued expenses
   
34,128,938
     
33,950,503
 
Income taxes
   
28,717,508
     
27,904,294
 
Total liabilities
   
737,295,214
     
725,825,117
 
                 
Stockholders' Equity
               
Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
   
-
     
-
 
Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 13,820,078 shares in 2017 and 13,819,006 shares in 2016
   
27,640,156
     
27,638,012
 
Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
   
-
     
-
 
Class C: convertible common stock - $2.00 par value; 3,000,000 shares authorized; issued 1,901,624 shares in 2017 and 1,902,229 shares in 2016
   
3,803,248
     
3,804,458
 
Additional paid-in capital
   
35,095,594
     
34,813,246
 
Accumulated other comprehensive income, net of taxes
   
286,114
     
264,822
 
Retained earnings
   
64,494,807
     
63,029,627
 
Treasury stock at cost - 686,549 Class A shares in 2017 and 704,122 Class A shares in 2016
   
(1,410,016
)
   
(1,370,611
)
                 
Total stockholders' equity
   
129,909,903
     
128,179,554
 
                 
Total Liabilities and Stockholders' Equity
 
$
867,205,117
   
$
854,004,671
 

See accompanying notes to condensed consolidated financial statements (unaudited).
4


SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

   
Three Months Ended
March 31
 
   
2017
   
2016
 
Revenues:
           
Insurance premiums and other considerations
 
$
17,357,124
   
$
14,451,575
 
Net investment income
   
9,563,282
     
8,992,191
 
Net mortuary and cemetery sales
   
3,358,973
     
3,245,856
 
Realized gains on investments and other assets
   
145,330
     
97,922
 
Other than temporary impairments on investments
   
(52,139
)
   
(73,630
)
Mortgage fee income
   
37,050,926
     
39,110,967
 
Other
   
2,028,873
     
1,530,426
 
Total revenues
   
69,452,369
     
67,355,307
 
                 
Benefits and expenses:
               
Death benefits
   
8,794,598
     
7,824,001
 
Surrenders and other policy benefits
   
857,531
     
518,321
 
Increase in future policy benefits
   
5,182,449
     
4,160,260
 
Amortization of deferred policy and pre-need acquisition costs and value of business acquired
   
2,264,039
     
2,212,836
 
Selling, general and administrative expenses:
               
Commissions
   
15,721,074
     
16,842,270
 
Personnel
   
18,589,687
     
17,197,372
 
Advertising
   
1,310,674
     
1,078,010
 
Rent and rent related
   
2,139,538
     
2,064,325
 
Depreciation on property and equipment
   
625,812
     
521,455
 
Provision for loan loss reserve
   
426,634
     
586,778
 
Costs related to funding mortgage loans
   
2,065,134
     
2,154,397
 
Other
   
7,430,951
     
6,480,711
 
Interest expense
   
1,254,039
     
1,064,195
 
Cost of goods and services sold-mortuaries and cemeteries
   
521,919
     
458,619
 
Total benefits and expenses
   
67,184,079
     
63,163,550
 
                 
Earnings before income taxes
   
2,268,290
     
4,191,757
 
Income tax expense
   
(799,826
)
   
(1,580,220
)
                 
Net earnings
 
$
1,468,464
   
$
2,611,537
 
                 
Net earnings per Class A Equivalent common share (1)
 
$
0.10
   
$
0.18
 
                 
Net earnings per Class A Equivalent common share-assuming dilution (1)
 
$
0.09
   
$
0.17
 
                 
Weighted-average Class A equivalent common share outstanding (1)
   
15,058,153
     
14,656,450
 
                 
Weighted-average Class A equivalent common shares outstanding-assuming dilution (1)
   
15,527,996
     
15,112,278
 


(1)   Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.

See accompanying notes to condensed consolidated financial statements (unaudited).
5

SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

   
Three Months Ended
March 31
 
   
2017
   
2016
 
Net earnings
 
$
1,468,464
   
$
2,611,537
 
Other comprehensive income:
               
  Net unrealized gains on derivative instruments
   
973
     
1,669
 
  Net unrealized gains on available for sale securities
   
20,319
     
297,897
 
Other comprehensive income
   
21,292
     
299,566
 
Comprehensive income
 
$
1,489,756
   
$
2,911,103
 

See accompanying notes to condensed consolidated financial statements (unaudited).
6

SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
 
   
Class A
Common Stock
   
Class C
Common Stock
   
Additional
Paid-in Capital
   
Accumulated
Other
 Comprehensive
Income
   
Retained
 Earnings
   
Treasury
Stock
   
Total
 
                                           
Balance at December 31, 2015
 
$
26,218,200
   
$
3,419,280
   
$
30,232,582
   
$
(499,358
)
 
$
54,054,950
   
$
(2,179,429
)
 
$
111,246,225
 
                                                         
Net earnings
   
-
     
-
     
-
     
-
     
2,611,537
     
-
     
2,611,537
 
Other comprehensive income
   
-
     
-
     
-
     
299,566
     
-
     
-
     
299,566
 
Grant of stock options
   
-
     
-
     
84,452
     
-
     
-
     
-
     
84,452
 
Exercise of stock options
   
56,920
     
-
     
4,367
     
-
     
-
     
-
     
61,287
 
Sale of treasury stock
   
-
     
-
     
136,826
     
-
     
-
     
149,639
     
286,465
 
Stock Dividends
   
274
     
12,768
     
30,779
     
-
     
(43,821
)
   
-
     
-
 
Balance at March 31, 2016
 
$
26,275,394
   
$
3,432,048
   
$
30,489,006
   
$
(199,792
)
 
$
56,622,666
   
$
(2,029,790
)
 
$
114,589,532
 
                                                         
Balance at December 31, 2016
 
$
27,638,012
   
$
3,804,458
   
$
34,813,246
   
$
264,822
   
$
63,029,627
   
$
(1,370,611
)
 
$
128,179,554
 
                                                         
Net earnings
   
-
     
-
     
-
     
-
     
1,468,464
     
-
     
1,468,464
 
Other comprehensive income
   
-
     
-
     
-
     
21,292
     
-
     
-
     
21,292
 
Grant of stock options
   
-
     
-
     
101,996
     
-
     
-
     
-
     
101,996
 
Sale of treasury stock
   
-
     
-
     
178,002
     
-
     
-
     
146,065
     
324,067
 
Purchase of treasury stock
   
-
     
-
     
-
     
-
     
-
     
(185,470
)
   
(185,470
)
Stock Dividends
   
930
     
4
     
2,350
     
-
     
(3,284
)
   
-
     
-
 
Conversion Class C to Class A
   
1,214
     
(1,214
)
   
-
     
-
     
-
     
-
     
-
 
Balance at March 31, 2017
 
$
27,640,156
   
$
3,803,248
   
$
35,095,594
   
$
286,114
   
$
64,494,807
   
$
(1,410,016
)
 
$
129,909,903
 

See accompanying notes to condensed consolidated financial statements (unaudited).
7

SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

   
Three Months Ended
March 31
 
   
2017
   
2016
 
Cash flows from operating activities:
           
     Net cash provided by operating activities
 
$
24,054,637
   
$
25,863,034
 
                 
Cash flows from investing activities:
               
Securities held to maturity:
               
        Purchase-fixed maturity securities
   
(2,575,997
)
   
(4,481,397
)
        Calls and maturities - fixed maturity securities
   
830,595
     
2,470,005
 
Securities available for sale:
               
       Purchase - equity securities
   
(4,190,458
)
   
(1,651,302
)
       Sales - equity securities
   
4,092,734
     
1,487,110
 
Purchase of short-term investments
   
(3,053,797
)
   
(3,258,070
)
Sales of short-term investments
   
2,266,915
     
2,364,571
 
Purchase of restricted assets
   
174,197
     
1,242,342
 
Changes in assets for perpetual care trusts
   
(104,731
)
   
(51,461
)
Amount received for perpetual care trusts
   
26,315
     
11,735
 
Mortgage loans, policy loans, and other investments made
   
(108,649,435
)
   
(112,920,364
)
Payments received for mortgage loans, policy loans and other investments
   
127,506,014
     
99,348,725
 
Purchase of property and equipment
   
(312,640
)
   
(1,084,975
)
Purchase of real estate
   
(3,103,471
)
   
(3,432,051
)
Sale of real estate
   
2,891,887
     
843,701
 
      Net cash provided by (used in) investing activities
   
15,798,128
     
(19,111,431
)
                 
Cash flows from financing activities:
               
Annuity contract receipts
   
3,051,883
     
2,516,596
 
Annuity contract withdrawals
   
(4,468,624
)
   
(3,025,833
)
Proceeds from stock options exercised
   
-
     
61,287
 
Purchase of treasury stock
   
(185,470
)
   
-
 
Repayment of bank loans on notes and contracts
   
(673,454
)
   
(390,168
)
Proceeds from borrowing on bank loans
   
7,255,187
     
737,232
 
Change in line of credit borrowings
   
1,250,000
     
-
 
      Net cash provided by (used in) financing activities
   
6,229,522
     
(100,886
)
                 
Net change in cash and cash equivalents
   
46,082,287
     
6,650,717
 
                 
Cash and cash equivalents at beginning of period
   
38,987,430
     
40,053,242
 
                 
Cash and cash equivalents at end of period
 
$
85,069,717
   
$
46,703,959
 
                 
Supplemental Disclosure of Cash Flow Information:
               
Cash paid during the year for:
               
Interest (net of amount capitalized)
 
$
1,234,420
   
$
1,079,891
 
Income taxes (net of refunds)
   
(3,215
)
   
12,321
 
                 
Non Cash Investing and Financing Activities:
               
Mortgage loans foreclosed into real estate
 
$
204,839
   
$
87,000
 

See accompanying notes to condensed consolidated financial statements (unaudited).
8

 
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)


1)   Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10‑Q and Articles 8 and 10 of Regulation S‑X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto for the year ended December 31, 2016, included in the Company's Annual Report on Form 10-K (file number 000-09341). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The presentation of certain amounts in the prior year have been reclassified to conform to the 2017 presentation. See additional discussion regarding restatement of mortgage banking derivatives in the financial statements Note 21 and 22 included in the Company's Form 10-K.
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant changes in the near term are those used in determining the value of derivative assets and liabilities, those used in determining deferred acquisition costs and the value of business acquired, those used in determining the value of mortgage loans foreclosed to real estate held for investment, those used in determining the liability for future policy benefits and unearned revenue, those used in determining the estimated future costs for pre-need sales, those used in determining the value of mortgage servicing rights, those used in determining allowances for loan losses for mortgage loans on real estate, those used in determining loan loss reserve, and those used in determining deferred tax assets and liabilities. Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects.

2)   Recent Accounting Pronouncements

ASU No. 2016-13: "Financial Instruments – Credit Losses (Topic 326)" – Issued in June 2016, ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current generally accepted accounting principles ("GAAP") and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is in the process of evaluating the potential impact of this standard.

ASU No. 2016-02: "Leases (Topic 842)" - Issued in February 2016, ASU 2016-02 supersedes the leases requirements in ASC Topic 840, "Leases", and was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is in the process of evaluating the potential impact of this standard.

ASU No. 2016-01: "Financial Instruments – Overall (Topic 825-10)" – Issued in January 2016, ASU 2016-01 changes the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income. Under current guidance, changes in fair value for investments of this nature are recognized in accumulated other comprehensive income as a component of stockholders' equity.  Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments.  The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017. The Company is in the process of evaluating the potential impact of this standard.
9

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

2)   Recent Accounting Pronouncements (Continued)

ASU No. 2014-09: "Revenue from Contracts with Customers (Topic 606)" - Issued in May 2014, ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, "Revenue Recognition", and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Insurance contracts are excluded from the scope of this new guidance. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017. The Company is in the process of evaluating the potential impact of this standard, which is not expected to be material to the Company's results of operations or financial position.

The Company has reviewed other recent accounting pronouncements and has determined that they will not significantly impact the Company's results of operations or financial position.

3)   Investments

The Company's investments in fixed maturity securities held to maturity and equity securities available for sale as of March 31, 2017 are summarized as follows:
 
   

Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Estimated
Fair
Value
 
March 31, 2017
                       
Fixed maturity securities held to maturity carried at amortized cost:
                       
Bonds:
                       
U.S. Treasury securities and obligations of U.S. Government agencies
 
$
4,357,040
   
$
244,853
   
$
(57,240
)
 
$
4,544,653
 
Obligations of states and political subdivisions
   
5,995,384
     
146,273
     
(132,140
)
   
6,009,517
 
Corporate securities including public utilities
   
165,716,233
     
11,763,828
     
(2,443,238
)
   
175,036,823
 
Mortgage-backed securities
   
9,753,206
     
246,004
     
(233,586
)
   
9,765,624
 
Redeemable preferred stock
   
623,635
     
14,954
     
(8,627
)
   
629,962
 
Total fixed maturity securities held to maturity
 
$
186,445,498
   
$
12,415,912
   
$
(2,874,831
)
 
$
195,986,579
 
                                 
Equity securities available for sale at estimated fair value:
                               
                                 
Common stock:
                               
                                 
Industrial, miscellaneous and all other
 
$
11,139,482
   
$
412,535
   
$
(816,778
)
 
$
10,735,239
 
                                 
Total equity securities available for sale at estimated fair value
 
$
11,139,482
   
$
412,535
   
$
(816,778
)
 
$
10,735,239
 
                                 
Mortgage loans on real estate and construction loans held for investment at amortized cost:
                               
Residential
 
$
64,629,906
                         
Residential construction
   
33,917,309
                         
Commercial
   
37,532,001
                         
Less: Allowance for loan losses
   
(1,955,443
)
                       
Total mortgage loans on real estate and construction loans held for investment
 
$
134,123,773
                         
                                 
Real estate held for investment - net of depreciation
 
$
151,417,470
                         
                                 
Policy loans and other investments are shown at amortized cost:
                               
Policy loans
 
$
6,666,500
                         
Insurance assignments
   
33,857,966
                         
Promissory notes
   
48,797
                         
Other investments
   
2,250,000
                         
Less: Allowance for doubtful accounts
   
(1,050,111
)
                       
                                 
Total policy loans and other investments
 
$
41,773,152
                         
                                 
Short-term investments at amortized cost
 
$
28,346,922
                         


10

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)

The Company's investments in fixed maturity securities held to maturity and equity securities available for sale as of December 31, 2016 are summarized as follows:

   
Cost
   
Gross
Unrealized
Gains
   
Gross
 Unrealized
 Losses
   
Estimated
 Fair
Value
 
December 31, 2016 :
                       
                         
Fixed maturity securities held to maturity carried at amortized cost:
                       
Bonds:
                       
U.S. Treasury securities and obligations of U.S. Government agencies
 
$
4,475,065
   
$
249,028
   
$
(66,111
)
 
$
4,657,982
 
Obligations of states and political subdivisions
   
6,017,225
     
153,514
     
(133,249
)
   
6,037,490
 
Corporate securities including public utilities
   
164,375,636
     
10,440,989
     
(3,727,013
)
   
171,089,612
 
Mortgage-backed securities
   
9,488,083
     
221,400
     
(280,871
)
   
9,428,612
 
Redeemable preferred stock
   
623,635
     
13,418
     
-
     
637,053
 
Total fixed maturity securities held to maturity
 
$
184,979,644
   
$
11,078,349
   
$
(4,207,244
)
 
$
191,850,749
 
                                 
Equity securities available for sale at estimated fair value:
                               
                                 
Common stock:
                               
                                 
Industrial, miscellaneous and all other
 
$
10,985,338
   
$
447,110
   
$
(859,092
)
 
$
10,573,356
 
                                 
Total securities available for sale carried at estimated fair value
 
$
10,985,338
   
$
447,110
   
$
(859,092
)
 
$
10,573,356
 
                                 
Mortgage loans on real estate and construction loans held for investment at amortized cost:
                               
Residential
 
$
58,593,622
                         
Residential construction
   
40,800,117
                         
Commercial
   
51,536,622
                         
Less: Allowance for loan losses
   
(1,748,783
)
                       
                                 
Total mortgage loans on real estate and construction loans held for investment
 
$
149,181,578
                         
                                 
Real estate held for investment - net of depreciation
 
$
145,165,921
                         
                                 
Policy loans and other investments are shown at amortized cost:
                               
Policy loans
 
$
6,694,148
                         
Insurance assignments
   
33,548,079
                         
Promissory notes
   
48,797
                         
Other investments
   
1,765,752
                         
Less: Allowance for doubtful accounts
   
(1,119,630
)
                       
                                 
Total policy loans and other investments
 
$
40,937,146
                         
                                 
Short-term investments at amortized cost
 
$
27,560,040
                         

11

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
 
Fixed Maturity Securities

The following tables summarize unrealized losses on fixed maturity securities, which are carried at amortized cost, at March 31, 2017 and December 31, 2016. The unrealized losses were primarily related to interest rate fluctuations. 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, 2017
                                   
U.S. Treasury Securities and Obligations of U.S. Government Agencies
 
$
57,240
   
$
1,345,231
   
$
-
   
$
-
   
$
57,240
   
$
1,345,231
 
Obligations of states and political subdivisions
   
132,140
     
3,270,595
     
-
     
-
     
132,140
     
3,270,595
 
Corporate securities
   
1,094,907
     
29,075,748
     
1,348,331
     
12,362,900
     
2,443,238
     
41,438,648
 
Mortgage-backed securities
   
126,828
     
1,745,284
     
106,758
     
1,470,559
     
233,586
     
3,215,843
 
Redeemable preferred stock
   
8,627
     
98,110
     
-
     
-
     
8,627
     
98,110
 
Total unrealized losses
 
$
1,419,742
   
$
35,534,968
   
$
1,455,089
   
$
13,833,459
   
$
2,874,831
   
$
49,368,427
 
                                                 
At December 31, 2016
                                               
U.S. Treasury Securities and Obligations of U.S. Government Agencies
 
$
66,111
   
$
1,342,088
   
$
-
   
$
-
   
$
66,111
   
$
1,342,088
 
Obligations of states and political subdivisions
   
133,249
     
3,686,856
     
-
     
-
     
133,249
     
3,686,856
 
Corporate securities
   
1,728,312
     
41,796,016
     
1,998,701
     
12,969,135
     
3,727,013
     
54,765,151
 
Mortgage-backed securities
   
176,715
     
4,176,089
     
104,156
     
940,278
     
280,871
     
5,116,367
 
Total unrealized losses
 
$
2,104,387
   
$
51,001,049
   
$
2,102,857
   
$
13,909,413
   
$
4,207,244
   
$
64,910,462
 

There were 195 securities with unrealized losses of 94.5% of amortized cost at March 31, 2017. There were 250 securities with unrealized losses of 93.9% of amortized cost at December 31, 2016. During the three months ended March 31, 2017 and 2016 an other than temporary decline in fair value resulted in the recognition of credit losses on fixed maturity securities of $52,139 and $30,000, respectively.

On a quarterly basis, the Company reviews its available for sale and held to maturity 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.
12

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)

Equity Securities

The following tables summarize unrealized losses on equity securities that were carried at estimated fair value based on quoted trading prices at March 31, 2017 and December 31, 2016. The unrealized losses were primarily the result of decreases in fair 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 March 31, 2017
                             
Industrial, miscellaneous and all other
 
$
178,006
     
149
   
$
638,772
     
105
   
$
816,778
 
Total unrealized losses
 
$
178,006
     
149
   
$
638,772
     
105
   
$
816,778
 
Fair Value
 
$
3,955,133
           
$
1,154,812
           
$
5,109,945
 
                                         
At December 31, 2016
                                       
Industrial, miscellaneous and all other
 
$
215,563
     
124
   
$
643,529
     
104
   
$
859,092
 
Total unrealized losses
 
$
215,563
     
124
   
$
643,529
     
104
   
$
859,092
 
Fair Value
 
$
2,063,144
           
$
1,685,874
           
$
3,749,018
 
 
The average market value of the equity securities available for sale was 86.2% and 81.4% of the original investment as of March 31, 2017 and December 31, 2016, respectively. 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 the three months ended March 31, 2017 and 2016, an other than temporary decline in the fair value resulted in the recognition of an impairment loss on equity securities of $-0- and $43,630, 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.
13

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
       
The amortized cost and estimated fair value of fixed maturity securities at March 31, 2017, 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
 
Held to Maturity:
           
Due in 2017
 
$
5,625,049
   
$
5,677,028
 
Due in 2018 through 2021
   
42,733,718
     
44,794,103
 
Due in 2022 through 2026
   
43,263,792
     
45,020,917
 
Due after 2026
   
84,446,098
     
90,098,945
 
Mortgage-backed securities
   
9,753,206
     
9,765,624
 
Redeemable preferred stock
   
623,635
     
629,962
 
Total held to maturity
 
$
186,445,498
   
$
195,986,579
 

The cost and estimated fair value of available for sale securities at March 31, 2017, 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.

   

Cost
   
Estimated Fair
Value
 
Available for Sale:
           
Common stock
 
$
11,139,482
   
$
10,735,239
 
Total available for sale
 
$
11,139,482
   
$
10,735,239
 

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

   
Three Months Ended
 Mar 31
 
   
2017
   
2016
 
Fixed maturity securities held to maturity:
           
Gross realized gains
 
$
2,434
   
$
-
 
Gross realized losses
   
-
     
(24,795
)
Other than temporary impairments
   
(52,139
)
   
(30,000
)
                 
Securities available for sale:
               
Gross realized gains
   
60,978
     
63,495
 
Gross realized losses
   
(4,556
)
   
(23,878
)
Other than temporary impairments
   
-
     
(43,630
)
                 
Other assets:
               
Gross realized gains
   
456,275
     
84,768
 
Gross realized losses
   
(369,801
)
   
(1,668
)
Total
 
$
93,191
   
$
24,292
 

The net carrying amount of held to maturity securities sold was $28,073 and $-0- for the three months ended March 31, 2017 and 2016, respectively.  The net realized gain related to these sales was $2,434 and $-0- for the three months ended March 31, 2017 and 2016, respectively. Although the intent is to buy and hold a bond to maturity the Company will sell a bond prior to maturity if conditions have changed within the entity that issued the bond to increase the risk of default to an unacceptable level.

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 March 31, 2017, other than investments issued or guaranteed by the United States Government.
14

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
Major categories of net investment income are as follows:
   
Three Months Ended
Mar 31
 
   
2017
   
2016
 
Fixed maturity securities
 
$
2,368,710
   
$
2,050,569
 
Equity securities
   
54,786
     
71,041
 
Mortgage loans on real estate
   
2,223,139
     
2,026,515
 
Real estate
   
2,894,331
     
2,838,484
 
Policy loans
   
193,734
     
182,206
 
Insurance assignments
   
3,364,642
     
3,104,788
 
Other investments
   
7,543
     
-
 
Short-term investments,  principally interest on sale of mortgage loans and other
   
1,804,746
     
1,863,144
 
Gross investment income
   
12,911,631
     
12,136,747
 
Investment expenses
   
(3,348,349
)
   
(3,144,556
)
Net investment income
 
$
9,563,282
   
$
8,992,191
 
Net investment income includes income earned by the restricted assets of the cemeteries and mortuaries of $115,501 and $87,976 for the three months ended March 31, 2017 and 2016, 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 for regulatory authorities as required by law amounted to $9,268,330 at March 31, 2017 and $9,269,121 at December 31, 2016. The restricted securities are included in various assets under investments on the accompanying condensed consolidated balance sheets.
Real Estate
The Company continues to strategically deploy 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 mortgage foreclosures.
Commercial Real Estate Held for Investment
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 13 commercial properties in 7 states. These properties include industrial warehouses, office buildings, retail centers, undeveloped land and includes the redevelopment and expansion of its corporate campus in Salt Lake City Utah. The assets are primarily held without debt; however, the Company does use debt in strategic cases to leverage established yields or to acquire higher quality or different class of asset.
15

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
The following is a summary of the Company's investment in commercial real estate for the periods presented:
   
Net Ending Balance
       
Total Square Footage
 
   
March 31
       
December 31
       
March 31
   
December 31
 
   
2017
       
2016
       
2017
   
2016
 
Arizona
 
$
447,229
 
(1
)
 
$
450,538
   
(1
)
   
16,270
     
16,270
 
Arkansas
   
99,319
         
100,369
           
3,200
     
3,200
 
Kansas
   
12,512,451
         
12,450,297
           
222,679
     
222,679
 
Louisiana
   
512,324
         
518,700
           
7,063
     
7,063
 
Mississippi
   
3,795,355
         
3,818,985
           
33,821
     
33,821
 
New Mexico
   
7,000
 
(1
)
   
7,000
   
(1
)
   
-
     
-
 
Texas
   
3,760,499
         
3,734,974
           
23,470
     
23,470
 
Utah
   
57,104,854
 
(2
)
   
47,893,073
   
(2
)
   
433,244
     
433,244
 
                                           
   
$
78,239,031
       
$
68,973,936
           
739,747
     
739,747
 
_____________                                           
(1) Includes undeveloped land
                               
                                           
(2) Includes 53rd Center to be completed in July 2017
         
 
Residential Real Estate Held for Investment

The Company owns a portfolio of residential homes primarily as a result of loan foreclosures.  The strategy has been to lease these homes to produce cash flow, and allow time for the economic fundamentals to return to the various markets. As an orderly and active market for these homes returns, the Company has the option to dispose or to continue and hold them for cash flow and acceptable returns.
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, 2017, SNRE manages   124 residential properties in 9 states across the United States which includes a newly constructed apartment complex, Dry Creek at East Village, in Sandy Utah.
The following is a summary of the Company's investment in residential real estate for the periods presented:
   
Net Ending Balance
 
   
March 31
   
December 31
 
   
2017
   
2016
 
Arizona
 
$
739,333
   
$
742,259
 
California
   
5,404,417
     
5,848,389
 
Colorado
   
204,538
     
364,489
 
Florida
   
8,273,416
     
8,327,355
 
Ohio
   
46,658
     
46,658
 
Oklahoma
   
17,500
     
-
 
Texas
   
777,843
     
1,091,188
 
Utah
   
57,428,553
     
59,485,466
 
Washington
   
286,181
     
286,181
 
   
$
73,178,439
   
$
76,191,985
 

16

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
 
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.  Currently, the Company occupies nearly 80,000 square feet, or 10% of the overall commercial real estate holdings.

As of March 31, 2017, real estate owned and occupied by the company is summarized as follows:

Location
Business Segment
 
Approximate
Square
 Footage
   
Square
 Footage
Occupied
by the
Company
 
5300 South 360 West, Salt Lake City, UT (1)
Corporate Offices, Life Insurance and Cemetery/Mortuary Operations
   
36,000
     
100
%
5201 Green Street, Salt Lake City, UT
Mortgage Operations
   
36,899
     
34
%
1044 River Oaks Dr., Flowood, MS
Life Insurance Operations
   
5,522
     
27
%
_____________                   
(1) This asset is included in property and equipment on the Condensed Consolidated Balance Sheet
         
 
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 March 31, 2017, the Company had 42%, 15%, 10%, 8%, 5% and 3% of its mortgage loans from borrowers located in the states of Utah, California, Texas, Florida, Oregon, and Nevada, respectively. The mortgage loans on real estate balances on the Condensed Consolidated Balance Sheet are reflected net of an allowance for loan losses of $1,955,443 and $1,748,783 at March 31, 2017 and December 31, 2016, respectively.
17

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
 
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
 
                         
   
Commercial
   
Residential
   
Residential Construction
   
Total
 
March 31, 2017
                       
Allowance for credit losses:
                       
Beginning balance - January 1, 2017
 
$
187,129
   
$
1,461,540
   
$
100,114
   
$
1,748,783
 
   Charge-offs
   
-
     
(16,226
)
   
-
     
(16,226
)
   Provision
   
-
     
222,886
     
-
     
222,886
 
Ending balance -March 31, 2017
 
$
187,129
   
$
1,668,200
   
$
100,114
   
$
1,955,443
 
                                 
Ending balance: individually evaluated for impairment
 
$
-
   
$
423,487
   
$
-
   
$
423,487
 
                                 
Ending balance: collectively evaluated for impairment
 
$
187,129
   
$
1,244,713
   
$
100,114
   
$
1,531,956
 
                                 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
   
$
-
   
$
-
   
$
-
 
                                 
Mortgage loans:
                               
Ending balance
 
$
37,532,001
   
$
64,629,906
   
$
33,917,309
   
$
136,079,216
 
                                 
Ending balance: individually evaluated for impairment
 
$
203,264
   
$
4,842,306
   
$
484,196
   
$
5,529,766
 
                                 
Ending balance: collectively evaluated for impairment
 
$
37,328,737
   
$
59,787,600
   
$
33,433,113
   
$
130,549,450
 
                                 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
   
$
-
   
$
-
   
$
-
 
                                 
December 31, 2016
                               
Allowance for credit losses:
                               
Beginning balance - January 1, 2016
 
$
187,129
   
$
1,560,877
   
$
100,114
   
$
1,848,120
 
   Charge-offs
   
-
     
(420,135
)
   
-
     
(420,135
)
   Provision
   
-
     
320,798
     
-
     
320,798
 
Ending balance - December 31, 2016
 
$
187,129
   
$
1,461,540
   
$
100,114
   
$
1,748,783
 
                                 
Ending balance: individually evaluated for impairment
 
$
-
   
$
374,501
   
$
-
   
$
374,501
 
                                 
Ending balance: collectively evaluated for impairment
 
$
187,129
   
$
1,087,039
   
$
100,114
   
$
1,374,282
 
                                 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
   
$
-
   
$
-
   
$
-
 
                                 
Mortgage loans:
                               
Ending balance
 
$
51,536,622
   
$
58,593,622
   
$
40,800,117
   
$
150,930,361
 
                                 
Ending balance: individually evaluated for impairment
 
$
202,992
   
$
2,916,538
   
$
64,895
   
$
3,184,425
 
                                 
Ending balance: collectively evaluated for impairment
 
$
51,333,630
   
$
55,677,084
   
$
40,735,222
   
$
147,745,936
 
                                 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
   
$
-
   
$
-
   
$
-
 

18

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 2017 (Unaudited)

3)   Investments (Continued)
 
The following is a summary of the aging of mortgage loans for the periods presented:

Age Analysis of Past Due Mortgage Loans
 
                                                       
   
30-59 Days
Past Due
   
60-89 Days
Past Due
   
Greater Than
90 Days (1)
   
In Process of Foreclosure (1)
   
Total
Past Due
   
Current
   
Total
Mortgage
 Loans
   
Allowance
 for
Loan
Losses
   
Net
 Mortgage
Loans
 
March 31, 2017
                                                 
Commercial
 
$
1,547,419
   
$
-
   
$
-
   
$
203,264
   
$
1,750,683
   
$
35,781,318
   
$
37,532,001
   
$
(187,129
)
 
$
37,344,872
 
Residential
   
733,374
     
91,433
     
1,451,582
     
3,390,724
     
5,667,113
     
58,962,793
     
64,629,906
     
(1,668,200
)
   
62,961,706
 
Residential
  Construction
   
-
     
-
     
64,895
     
419,301
     
484,196
     
33,433,113
     
33,917,309
     
(100,114
)
   
33,817,195
 
                                                                         
Total
 
$
2,280,793
   
$
91,433
   
$
1,516,477
   
$
4,013,289
   
$
7,901,992
   
$
128,177,224
   
$
136,079,216
   
$
(1,955,443
)
 
$
134,123,773
 
                                                                         
December 31, 2016
                                                                 
Commercial
 
$
-
   
$
-
   
$
-
   
$
202,992
   
$
202,992
   
$
51,333,630
   
$
51,536,622
   
$
(187,129
)
 
$
51,349,493
 
Residential
   
964,960
     
996,779
     
1,290,355
     
1,626,183
     
4,878,277
     
53,715,345
     
58,593,622
     
(1,461,540
)
   
57,132,082
 
Residential
  Construction
   
-
     
-
     
64,895
     
-
     
64,895
     
40,735,222
     
40,800,117
     
(100,114
)
   
40,700,003
 
                                                                         
Total
 
$
964,960
   
$
996,779
   
$
1,355,250
   
$
1,829,175
   
$
5,146,164
   
$
145,784,197
   
$
150,930,361
   
$
(1,748,783
)
 
$
149,181,578
 
______________