Please see below and Note 13 to the Consolidated Financial Statements for the years ended December 31, 2014 and 2013 and as of December 31, 2014 and December 31, 2013 for additional information regarding segment information. The segment data as of December 31, 2013 and for the year ended December 31, 2013 has been restated from what was previously reported and now follows the new segmentation methodology established on January 1, 2014.
There was a $114,906 decrease in net realized investment gains for the year ended December 31, 2014.
Our benefits, claims and expenses for the years ended December 31, 2014 and 2013 are summarized as follows:
$687,770 increase in interest credited to policyholders is primarily due to an approximate $26.8 million increase in the amount of policyholders’ account balances in the consolidated statement of financial position (increased deposits and interest credited in excess of withdrawals) during 2014.
Our assets other than invested assets as of December 31, 2014 and 2013 are summarized as follows:
On March 26, 2014, we issued two notes payable totaling $4,076,473. The first note payable totaling $3,009,265 is collateralized (including assignment of the tenant leases) by three properties, located in Indiana, Oklahoma and Texas, purchased for a total of $4,940,647 in December 2013 and February 2014.
Our cash flows for the years ended December 31, 2014 and 2013 are summarized as follows:
We have audited the accompanying consolidated statements of financial position of First Trinity Financial Corporation and Subsidiaries (the Company) as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income (loss), changes in shareholders’ equity, and cash flows for the years then ended. The Company’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of First Trinity Financial Corporation and Subsidiaries as of December 31, 2014 and 2013, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
As of December 31, 2013, the Company held 154 available-for-sale fixed maturity securities with an unrealized loss of $1,596,459, fair value of $34,634,408 and amortized cost of $36,230,867. These unrealized losses were primarily due to market interest rate movements in the bond market as of December 31, 2013. The ratio of the fair value to the amortized cost of these 154 securities is 96% with all 154 securities having a fair value to amortized cost ratio above 77%.
Effective August 29, 2005, TLIC executed a lease agreement for 2,500 square feet of the Topeka, Kansas office building. The base lease period commenced on September 1, 2005 and ended on August 31, 2010. The lease automatically renewed on August 15, 2010, for another five years with a 90 day notice by the lessee to terminate the lease. The terms of the lease leave TLIC responsible for paying real estate taxes, building insurance and building and ground maintenance. The lease agreement called for minimum monthly base lease payments of $4,332 through August 31, 2010. The lease payments decreased to $3,100 per month for the period September 1, 2010 through August 31, 2015.