Investors Heritage Capital Corp

CIK:0000055362|SEC Filings

Condensed Consolidated Income Statements (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
REVENUE
Premiums and other considerations	$ 12,531,336	$ 13,836,244	$ 38,210,867	$ 39,545,191
Premiums ceded	(2,646,279)	(2,935,363)	(7,429,219)	(8,195,013)
Net premiums	9,885,057	10,900,881	30,781,648	31,350,178
Investment income, net of expenses	5,003,475	5,330,853	14,989,671	16,330,658
Net realized gains (losses) on investments:
Total other-than-temporary impairment losses		(118,267)		(118,267)
Other net realized investment gains	424,795	1,046,183	673,483	1,620,472
Total net realized gains on investments	424,795	927,916	673,483	1,502,205
Other income	605,538	409,186	1,730,672	1,142,095
Total revenue	15,918,865	17,568,836	48,175,474	50,325,136
BENEFITS AND EXPENSES
Death and other benefits	10,988,211	10,363,008	35,577,458	32,324,120
Guaranteed annual endowments	88,966	91,569	294,174	304,657
Dividends to policyholders	69,040	73,603	226,465	230,792
Increase in benefit reserves and unearned premiums	312,181	1,652,885	122,245	3,550,345
Acquisition costs deferred	(1,159,772)	(1,256,830)	(3,454,821)	(3,621,389)
Amortization of deferred acquisition costs	1,416,947	1,497,933	4,037,243	4,410,013
Commissions	756,128	829,201	2,391,201	2,356,672
Other general and administrative expenses	2,438,558	2,658,821	8,094,348	8,407,300
Total benefits and expenses	14,910,259	15,910,190	47,288,313	47,962,510
INCOME BEFORE FEDERAL INCOME TAXES	1,008,606	1,658,646	887,161	2,362,626
PROVISION (BENEFIT) FOR FEDERAL INCOME TAXES
Current	12,745	347,532	89,843	544,151
Deferred	239,407	(287,264)	131,948	(307,888)
Total federal income taxes	252,152	60,268	221,791	236,263
NET INCOME	$ 756,454	$ 1,598,378	$ 665,370	$ 2,126,363
BASIC AND DILUTED NET INCOME PER SHARE (in dollars per share)	$ 0.68	$ 1.44	$ 0.60	$ 1.91
DIVIDENDS PER SHARE (in dollars per share)			$ 0.25	$ 0.21

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 825,486	$ 3,916,385
INVESTING ACTIVITIES
Purchases of available-for-sale securities	(33,336,816)	(19,875,700)
Sales of available-for-sale securities	6,300,505	55,563,518
Maturities of available-for-sale securities	21,182,849	17,111,207
Acquisitions of mortgage loans on real estate	(6,934,650)	(17,126,902)
Payments of mortgage loans on real estate	8,898,402	9,875,929
Purchases of state-guaranteed receivables		(2,753,509)
Payments of state-guaranteed receivables	793,530	629,530
Purchases of convertible options	(278,631)	(62,185)
Sales and exchanges of convertible options	324,557	10,536
Net change in payable (receivable) for securities	1,778,840	20,541
Net reductions of other investments	944,394	644,141
Net additions to property and equipment	(156,887)	(40,459)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(483,907)	43,996,647
FINANCING ACTIVITIES
Policyholder account deposits	1,755,599	3,428,616
Policyholder account withdrawals	(1,886,772)	(6,318,742)
Payments on notes payable	(2,398,673)	(2,065,106)
Proceeds from notes payable	1,744,330	1,790,974
Dividends paid	(279,271)	(234,706)
Repurchases of common stock, net		(222,103)
NET CASH USED IN FINANCING ACTIVITIES	(1,064,787)	(3,621,067)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(723,208)	44,291,965
Cash and cash equivalents at beginning of period	3,297,917	3,619,663
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 2,574,709	$ 47,911,628

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Fixed maturities (amortized cost: $355,672,429 and $350,196,848)	$ 374,330,586	$ 365,949,349
Equity securities (cost: $9,081,785 and $8,080,073)	10,681,755	9,154,718
Mortgage loans on real estate	39,216,439	41,302,392
Policy loans	6,386,451	6,336,277
State-guaranteed receivables	11,367,127	11,584,681
Investments in convertible options	1,323,070	983,950
Other invested assets	957,262	1,951,830
Total investments	444,262,690	437,263,197
Cash and cash equivalents	2,574,709	3,297,917
Accrued investment income	4,066,419	4,433,680
Due premiums	2,798,969	2,768,774
Deferred acquisition costs	15,100,954	15,712,181
Value of business acquired	109,535	155,264
Leased property under capital leases	51,285	75,841
Property and equipment, net	971,505	915,494
Cash value of company-owned life insurance	14,587,713	13,855,560
Other assets	2,469,489	2,435,867
Amounts recoverable from reinsurers	93,008,718	98,444,173
Total assets	580,001,986	579,357,948
LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES
Benefit reserves	487,920,368	492,963,963
Unearned premium reserves	7,840,825	8,100,042
Policy claims	2,207,664	2,637,220
Liability for deposit-type contracts	3,344,562	3,351,107
Reserves for dividends and endowments and other	368,361	384,401
Total policy liabilities	501,681,780	507,436,733
Deferred federal income tax liability	4,718,218	3,256,943
Obligations under capital leases	45,595	72,209
Notes payable	317,508	971,851
Accrued pension liability	5,699,728	6,021,264
Deferred revenue on reinsurance ceded	1,315,759	1,431,647
Other liabilities	7,071,897	3,982,356
Total liabilities	520,850,485	523,173,003
STOCKHOLDERS' EQUITY
Common stock (shares issued: 1,109,666 and 1,106,351)	1,109,666	1,106,351
Paid-in surplus	8,913,360	8,913,360
Accumulated other comprehensive income	8,074,349	5,493,892
Retained earnings	41,054,126	40,671,342
Total stockholders' equity	59,151,501	56,184,945
Total liabilities and stockholders' equity	$ 580,001,986	$ 579,357,948