10q10k10q10k.net

What changed in SECURITY NATIONAL FINANCIAL CORP's 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of SECURITY NATIONAL FINANCIAL CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+164 added−211 removedSource: 10-K (2025-03-31) vs 10-K (2024-03-29)

Top changes in SECURITY NATIONAL FINANCIAL CORP's 2024 10-K

164 paragraphs added · 211 removed · 135 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

43 edited+2 added−2 removed38 unchanged
Biggest changeUnder The Tax Cuts and Jobs Act (the “Tax Act”), December 31, 2017 policyholder surplus account balances result in taxable income over a period of eight years. Security National Life, First Guaranty and Kilpatrick calculate their life insurance taxable income after establishing a provision representing a portion of the costs of acquisition of such life insurance business.
Biggest changeLife insurance company taxable income is gross income less general business deductions and reserves for future policyholder benefits (with modifications). Under The Tax Cuts and Jobs Act (the “Tax Act”), December 31, 2017 policyholder surplus account balances result in taxable income over a period of eight years.
Upon receipt of a satisfactory (non-funeral plan insurance) application, which contains pertinent medical questions, the Company issues insurance based upon its medical limits and requirements subject to the following general non-medical limits: Age Nearest Birthday Non-Medical Limits 0-50 $100,000 51-up Medical information required (APS or exam) When underwriting life insurance, the Company will sometimes issue policies with higher premium rates for substandard risks.
Upon receipt of a satisfactory (non-funeral plan insurance) application, which contains pertinent medical questions, the Company issues insurance based upon its medical limits and requirements subject to the following general non-medical limits: Non-Medical Age Nearest Limits Birthday 0-50 $100,000 51-up Medical information required (APS or exam) When underwriting life insurance, the Company will sometimes issue policies with higher premium rates for substandard risks.
The premiums paid by the Company are based on a number of factors, primarily including the age of the insured and the risk ceded to the reinsurer. It is the Company’s policy to retain no more than $100,000 of ordinary insurance per insured life, with the excess risk being reinsured.
The premiums paid by the Company are based on a number of factors, primarily including the age of the insured and the risk ceded to the reinsurer. It is the Company’s policy to retain no more than $100,000 of ordinary insurance per life insured, with the excess risk being reinsured.
The Company is limited in its geographic distribution of these products to areas lying within an approximate 20-mile radius of its mortuaries and cemeteries. The Company’s at-need sales are similarly limited in geographic area. The Company actively seeks to sell its cemetery and funeral products to customers on a pre-need basis.
The Company is limited in its geographic distribution of these products to areas lying within an approximate 20-mile radius of its mortuaries and cemeteries. The Company’s at-need sales are similarly limited in the geographic area. The Company actively seeks to sell its cemetery and funeral products to customers on a pre-need basis.
The Company plans to initiate future phases of the Center53 Development for additional Class A office space in the central valley of Salt Lake City. Regulation The Company’s insurance subsidiaries are subject to comprehensive regulation in the jurisdictions in which they do business under statutes and regulations administered by state insurance commissioners.
The Company plans to initiate future phases of the Center53 Development for additional Class A office space in the central valley of Salt Lake City. Regulation The Company’s insurance subsidiaries are subject to comprehensive regulations in the jurisdictions in which they do business under statutes and regulations administered by state insurance commissioners.
The Company believes that its policies and rates for the markets it serves are generally competitive. The cemetery and mortuary industry is highly competitive. In the Utah, California, and New Mexico markets where the Company competes, there are several cemeteries and mortuaries which have longer business histories, more established positions in the community, and stronger financial positions than the Company.
The Company believes that its policies and rates for the markets it serves are generally competitive. The cemetery and mortuary industry are highly competitive. In the Utah, California, and New Mexico markets where the Company competes, there are several cemeteries and mortuaries which have longer business histories, more established positions in the community, and stronger financial positions than the Company.
The Company plans to continue its development endeavors as based upon its assessment of the market demand. 7 Center53 Development Center53 Development is an office development project comprising nearly 20 acres of land that is currently owned by the Company in the central valley of Salt Lake City.
The Company plans to continue its development endeavors based upon its assessment of the market demand. 7 Center53 Development Center53 Development is an office development project comprising nearly 20 acres of land that is currently owned by the Company in the central valley of Salt Lake City.
For the Company to make a profit on an annuity product, the Company must maintain an interest rate spread between its investment income and the interest rate credited to the annuities. Commissions, issuance expenses, and general and administrative expenses are deducted from this interest rate spread.
For the Company to make a profit on an annuity product, the Company must maintain an interest rate spread between its investment income and the interest rates credited to the annuities. Commissions, issuance expenses, and general and administrative expenses are deducted from this interest rate spread.
The Company’s insurance subsidiaries are subject to this type of regulation in any state in which they conduct relevant business. Such regulation may cause unforeseen costs and operational restrictions, and delay implementation of the Company’s business plans.
The Company’s insurance subsidiaries are subject to this type of regulation in any state in which they conduct relevant business. Such regulations may cause unforeseen costs and operational restrictions, and delay implementation of the Company’s business plans.
Annuities have guaranteed interest rates that range from 1% to 6.5% per annum. Rates above the guaranteed interest rate credited are periodically modified by the Board of Directors at its discretion.
Annuities have guaranteed interest rates that range from 1% to 6.5% per annum. Rates above the guaranteed interest rate credited are periodically modified by the Company’s Board of Directors at its discretion.
Markets and Distribution The general market for the Company’s annuities is middle to older age individuals. A major source of annuity sales come from direct agents and are sold in conjunction with other insurance sales. If an individual does not qualify for a funeral plan, the agent will often sell that individual an annuity to fund final expenses.
Markets and Distribution The general market for the Company’s annuities is middle to older age individuals. A major source of annuity sales comes from direct agents and are sold in conjunction with other insurance sales. If an individual does not qualify for a funeral plan, the agent will often sell that individual an annuity to fund final expenses.
The commissions on life insurance products range from approximately 50% to 120% of first year premiums. In those cases where the Company utilizes its direct agents in selling such policies, those agents customarily receive advances against future commissions. In some instances, funeral plan insurance is marketed in conjunction with the Company’s cemetery and mortuary sales force.
The commissions on life insurance products range from approximately 50% to 150% of first year premiums. In those cases where the Company utilizes its direct agents in selling such policies, those agents customarily receive advances against future commissions. In some instances, funeral plan insurance is marketed in conjunction with the Company’s cemetery and mortuary sales force.
(“Southern Security”) and Trans-Western Life Insurance Company (“Trans-Western”), do not actively write policies, but service and maintain policies that were purchased prior to their acquisition by Security National Life. 3 A funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000.
(“Southern Security”) and Trans-Western Life Insurance Company (“Trans-Western”), do not actively write policies, but service and maintain policies that were issued prior to their acquisition by Security National Life. 3 A funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000.
The Company has a mortuary at each of its cemeteries, other than Holladay Memorial Park and Singing Hills Memorial Park, and has six separate stand-alone mortuary facilities. Markets and Distribution The Company’s pre-need cemetery and mortuary sales are marketed to persons of all ages but are generally purchased by persons 45 years of age and older.
The Company has a mortuary at each of its cemeteries, other than Holladay Memorial Park and Singing Hills Memorial Park, and has ten separate stand-alone mortuary facilities. Markets and Distribution The Company’s pre-need cemetery and mortuary sales are marketed to persons of all ages but are generally purchased by persons 45 years of age and older.
The Company places specific marketing emphasis on funeral plans through pre-need planning. The Company’s insurance subsidiaries, Southern Security Life Insurance Company, Inc.
The Company places specific marketing emphasis on funeral plans through pre-need planning. The Company’s insurance subsidiaries, Kilpatrick, Southern Security Life Insurance Company, Inc.
Markets and Distribution The Company is licensed to sell insurance in 40 states. The Company, in marketing its life insurance products, seeks to locate, develop and service specific niche markets. The Company’s funeral plan policies are sold primarily to people who range in age from 45 to 85 and have low to moderate income.
Markets and Distribution The Company is licensed to sell insurance in 42 states. In marketing its life insurance products, the Company seeks to locate, develop and service specific niche markets. The Company’s funeral plan policies are sold primarily to people who range in age from 45 to 85 and have low to moderate income.
The retirement plans qualify under section 401(k) of the Internal Revenue Code and, if approved by the board of directors, the Company makes a matching contribution in Company stock based on the employee’s contribution amount. The Company provides other time off benefits such as paid sick and paid vacation time.
These retirement plans qualify under section 401(k) of the Internal Revenue Code and, if approved by the Company’s Board of Directors, the Company makes a matching contribution in Company stock based on the employee’s contribution amount. The Company provides other time off benefits such as paid sick time and paid vacation time.
In 2015, the Company broke ground and commenced development on the first phase which included a six-story building of nearly 200,000 square feet and a parking garage with 748 parking stalls. The first phase of the project was completed in July 2017 and is currently 93% leased.
In 2015, the Company broke ground and commenced development on the first phase which included a six-story building of nearly 200,000 square feet and a parking garage with 748 parking stalls. The first phase of the project was completed in July 2017 and is currently 88% leased.
The cemetery and mortuary segment consists of eight mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in the state of New Mexico. The Company also engages in pre-need selling of funeral, cemetery, mortuary, and cremation services through its cemetery and mortuary locations.
The cemetery and mortuary segment consists of eleven mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in the state of New Mexico. The Company also engages in pre-need selling of funeral, cemetery, mortuary, and cremation services through its cemetery and mortuary locations.
The Company’s life insurance subsidiaries are currently subject to regulation in Utah, Louisiana, Mississippi and Texas under insurance holding company legislation, and other states where applicable. Generally, intercompany transfers of assets and dividend payments from insurance subsidiaries are subject to prior notice of approval from the relevant state insurance department where they are deemed “extraordinary” under relevant state law.
The Company’s life insurance subsidiaries are currently subject to regulations in Utah, Louisiana, Mississippi and Texas under insurance holding company legislation, and other states where applicable. Generally, intercompany transfers of assets and dividend payments from insurance subsidiaries are subject to prior notice of approval from the relevant state insurance department when they are deemed “extraordinary” under relevant state law.
These products are marketed in 40 states through a commissioned sales force of independent licensed insurance agents who may also sell insurance products of other companies.
These products are marketed in 42 states through a commissioned sales force of independent licensed insurance agents who may also sell insurance products of other companies.
Life Insurance Products The Company, through Security National Life, First Guaranty Insurance Company (“First Guaranty”), and Kilpatrick Life Insurance Company (“Kilpatrick”), issues and distributes selected lines of life insurance and annuities. The Company’s life insurance business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance products.
Life Insurance Products The Company, through Security National Life, First Guaranty Insurance Company (“First Guaranty”), and Kilpatrick Life Insurance Company (“Kilpatrick”), issues and administers selected lines of life insurance and annuities. The Company’s life insurance business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and limited health insurance products.
The mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects. The mortgage segment operates through 100 retail offices in 23 states and is an approved mortgage lender in several other states.
The mortgage segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes, and other real estate projects. The mortgage segment operates through 97 retail offices in 26 states and is an approved mortgage lender in several other states.
The insurance subsidiaries are required, under state insurance laws, to file detailed annual reports with the supervisory agencies in each of the states in which they do business. Their business and accounts are also subject to examination by these agencies.
The insurance subsidiaries are required, under state insurance laws, to file detailed annual reports with the supervisory agencies in each of the states in which they do business. Their business and accounts are also subject to examination by these agencies every three to five years.
Further, the Company competes with mutual insurance companies which may have a competitive advantage because all profits accrue to policyholders. Because the Company is smaller by industry standards and lacks broad diversification of risk, it may be more vulnerable to losses than larger, better-established companies.
In addition, such companies generally have larger sales forces. Further, the Company competes with mutual insurance companies which may have a competitive advantage because all profits accrue to policyholders. Because the Company is smaller by industry standards and lacks broad diversification of risk, it may be more vulnerable to losses than larger, better-established companies.
The mortgage industry in general is sensitive to changes in interest rates and the refinancing market is particularly vulnerable to changes in interest rates. Seasonality The Company’s business is generally not subject to seasonal fluctuations. 9 Human Capital Management As of December 31, 2023, the Company employed 1,227 full-time and 246 part-time employees.
The mortgage industry in general is sensitive to changes in interest rates and the refinancing market is particularly vulnerable to changes in interest rates. Seasonality The Company’s business is generally not subject to seasonal fluctuations. 9 Human Capital Management As of December 31, 2024, the Company employed 1,186 full-time and 235 part-time employees.
The following table summarizes the annuity business for the five years ended December 31, 2023: 2023 2022 2021 2020 2019 Annuities Policy/Cert Count as of December 31 24,924 24,225 24,901 25,476 26,565 Deposits Collected (in thousands) $ 10,946 $ 9,972 $ 9,719 $ 9,637 $ 10,400 5 Accident and Health Products Through its various acquisitions, the Company occasionally acquires small blocks of accident and health insurance policies, which it continues to service.
The following table summarizes the annuity business for the five years ended December 31, 2024: 2024 2023 2022 2021 2020 Annuities Policy/Certificate Count as of December 31 24,296 24,924 24,225 24,901 25,476 Deposits Collected (in thousands) $ 11,740 $ 10,946 $ 9,972 $ 9,719 $ 9,637 5 Accident and Health Products Through its various acquisitions, the Company occasionally acquires small blocks of accident and health insurance policies, which it continues to service.
Of the full-time employees, 729 were employed by the mortgage segment, 373 by the life insurance segment, and 125 by the cemetery and mortuary segment. The Company requires monthly acknowledgement of its anti-discrimination and anti-harassment policies and communicates to its employees how to report concerns that relate to their employment experience.
Of the full-time employees, 678 were employed by the mortgage segment, 388 by the life insurance segment, and 120 by the cemetery and mortuary segment. The Company requires monthly acknowledgement of its anti-discrimination and anti-harassment policies and communicates to its employees how to report concerns that relate to their employment experience.
The following table summarizes the accident and health insurance business for the five years ended December 31, 2023: 2023 2022 2021 2020 2019 Accident and Health Policy/Cert Count as of December 31 9,379 11,132 12,494 13,735 15,133 Premiums Collected (in thousands) $ 216 $ 543 $ 353 $ 296 $ 110 Reinsurance The primary purpose of reinsurance is to enable an insurance company to issue an insurance policy in an amount larger than the risk the insurance company is willing to assume for itself.
The following table summarizes the accident and health insurance business for the five years ended December 31, 2024: 2024 2023 2022 2021 2020 Accident and Health Policy/Certificate Count as of December 31 7,592 9,379 11,132 12,494 13,735 Premiums Collected (in thousands) $ 188 $ 216 $ 543 $ 353 $ 296 Reinsurance The primary purpose of reinsurance is to enable an insurance company to issue an insurance policy in an amount larger than the risk the insurance company is willing to assume for itself.
The following table summarizes the life insurance business for the five years ended December 31, 2023: 2023 2022 2021 2020 2019 Life Insurance Policy/Cert Count as of December 31 714,953 646,296 653,450 659,237 669,064 Insurance in force as of December 31 (in thousands) $ 3,552,554 $ 3,446,836 (1) $ 3,415,368 (1) $ 3,379,921 (1) $ 3,303,061 (1) Premiums Collected (in thousands) $ 113,584 $ 103,304 $ 99,006 $ 92,058 $ 78,253 (1) Prior years have been adjusted to include accidental death benefit insurance in force that was inadvertently excluded. 4 Underwriting The factors considered in evaluating an application for ordinary life insurance coverage can include the applicant’s age, occupation, general health condition, and medical history.
The following table summarizes the life insurance business for the five years ended December 31, 2024: 2024 2023 2022 2021 2020 Life Insurance Policy/Certificate Count as of December 31 635,791 640,970 646,296 653,450 659,237 Insurance in force as of December 31 (in thousands) $ 3,947,671 $ 3,552,554 $ 3,446,836 (1) $ 3,415,368 (1) $ 3,379,921 (1) Premiums Collected (in thousands) $ 118,151 $ 113,584 $ 103,304 $ 99,006 $ 92,058 (1) Prior years have been adjusted to include accidental death benefit insurance in force that was inadvertently excluded. 4 Underwriting The factors considered in evaluating an application for ordinary life insurance coverage can include the applicant’s age, occupation, general health condition, and medical history.
The subsidiaries are required to keep annual reports on file including financial information concerning the number of spaces sold and, where applicable, funds provided to the Endowment Care Trust Fund. Licenses are issued annually based on such reports. The cemeteries maintain city or county licenses where they conduct business.
The subsidiaries are required to keep annual reports on file including financial information concerning the number of spaces sold and, where applicable, funds provided to the Endowment Care Trust Fund. Licenses are issued annually based on such reports.
Employee Benefits All eligible employees may elect coverage under the Company’s group health (including health savings and flexible spending), retirement, supplemental life and voluntary benefit programs. As of December 31, 2023, 756 employees had elected to participate in the Company’s group health insurance plans. The Company has an employee safe harbor retirement plan for each business segment.
Employee Benefits All eligible employees may elect coverage under the Company’s group health (including health savings and flexible spending), retirement, supplemental life and voluntary benefit programs. As of December 31, 2024, 757 employees had elected to participate in the Company’s group health insurance plans. The Company sponsors a 401(k) retirement plan for each business segment.
The Company’s mortgage subsidiaries are subject to the rules and regulations of the U.S. Department of Housing and Urban Development (HUD), and to various state licensing acts and regulations and the Consumer Financial Protection Bureau (CFPB).
The cemeteries maintain city or county licenses where they conduct business. 8 The Company’s mortgage subsidiaries are subject to the rules and regulations of the U.S. Department of Housing and Urban Development (HUD), and to various state licensing acts and regulations and the Consumer Financial Protection Bureau (CFPB).
The Company offers a low-cost comprehensive diver’s accident insurance policy that provides worldwide coverage for medical expense reimbursement in the event of a diving accident. Markets and Distribution The Company currently markets its diver’s accident insurance policies through the internet.
The Company offered a low-cost comprehensive diver’s accident insurance policy that provided worldwide coverage for medical expense reimbursement in the event of a diving accident. This product was discontinued in March 2024. Markets and Distribution The Company marketed its diver’s accident insurance policies through the internet.
The Company’s non-life insurance company subsidiaries are taxed in general under the regular corporate tax provisions. The Company’s subsidiaries Southern Security and Trans-Western are regulated as life insurance companies but do not meet the Internal Revenue Code definition of a life insurance company, so they are taxed as insurance companies other than life insurance companies.
The Company’s subsidiaries Southern Security and Trans-Western are regulated as life insurance companies but do not meet the Internal Revenue Code definition of a life insurance company, so they are taxed as insurance companies other than life insurance companies. Competition The life insurance industry is highly competitive.
The Company maintains a diversified investment portfolio consisting of common stocks, preferred stocks, municipal bonds, corporate bonds, mortgage loans, real estate, and other securities and investments.
A significant portion of the Company’s investments must meet statutory requirements governing the nature and quality of permitted investments by its insurance subsidiaries. The Company maintains a diversified investment portfolio consisting of common stocks, preferred stocks, municipal bonds, corporate bonds, mortgage loans, real estate, and other securities and investments.
Each year, the Company is required to have an audit completed for each mortgage subsidiary by an independent registered public accounting firm to verify compliance with the relevant regulations.
Each year, the Company is required to have an audit completed for its mortgage subsidiary by an independent registered public accounting firm to verify compliance with the relevant regulations. In addition to the government regulations, the Company must meet loan requirements, and underwriting guidelines of various investors who purchase the loans.
The total policy amount of life insurance reinsured by other companies as of December 31, 2023, was $333,211,000, which represented approximately 9.3% of the Company’s total life insurance policy amount in force on that date. See “Management’s Discussion and Analysis of Results of Operations and Financial Condition” and “Notes to Consolidated Financial Statements” for additional disclosure and discussion regarding reinsurance.
The total policy amount of life insurance reinsured by other companies as of December 31, 2024 and 2023, was $325,189,000 and $333,211,000, which represented approximately 9.4% and 9.3% of the Company’s total life insurance policy amount in force on that date, respectively.
Competition The life insurance industry is highly competitive. There are approximately 800 legal reserve life insurance companies in business in the United States. These insurance companies differentiate themselves through marketing techniques, product features, pricing, and customer service.
There are approximately 700 legal reserve life insurance companies in business in the United States. These insurance companies differentiate themselves through marketing techniques, product features, pricing, and customer service. The Company’s insurance subsidiaries compete with many insurance companies, many of which have greater financial resources, longer business histories, and more diversified lines of insurance products than the Company.
In addition to the government regulations, the Company must meet loan requirements, and underwriting guidelines of various investors who purchase the loans. 8 Income Taxes The Company’s insurance subsidiaries, Security National Life, First Guaranty and Kilpatrick are taxed under the Life Insurance Company Tax Act of 1984.
Income Taxes The Company’s insurance subsidiaries, Security National Life, First Guaranty and Kilpatrick are taxed under the Life Insurance Company Tax Act of 1984. Under the act, life insurance companies are taxed at standard corporate rates on life insurance company taxable income.
The effect of the provision is that a certain percentage of the Company’s premium income is characterized as deferred expenses and recognized over a five or ten-year period. The Tax Act changed this recognition period for amounts deferred after December 31, 2017 to a five or fifteen-year period.
Security National Life, First Guaranty and Kilpatrick calculate their life insurance taxable income after establishing a provision representing a portion of the costs of acquisition of such life insurance business. The effect of the provision is that a certain percentage of the Company’s premium income is characterized as deferred expenses and recognized over a five or ten-year period.
The Company was last examined in 2021 (First Guaranty Insurance), 2022 (Security National Life, Southern Security and Trans-Western) and 2021 (Kilpatrick Life). Its most recent final examination reports have been approved by the insurance departments and are public records. The Texas Department of Banking also audits pre-need insurance policies that are issued in the state of Texas.
Security National Life, First Guaranty, Kilpatrick, and Southern Security have received notice of a regularly scheduled multi-year examination for the years 2021-2024 that will commence in the second quarter of 2025. The Texas Department of Banking also audits pre-need insurance policies that are issued in the state of Texas.
Investments The investments that support the Company’s life insurance and annuity obligations are determined by the investment committees of the Company’s subsidiaries and ratified by the full boards of directors of the respective subsidiaries. A significant portion of the Company’s investments must meet statutory requirements governing the nature and quality of permitted investments by its insurance subsidiaries.
See “Management’s Discussion and Analysis of Results of Operations and Financial Condition” and “Notes to Consolidated Financial Statements” for additional disclosure and discussion regarding reinsurance. Investments The investments that support the Company’s life insurance and annuity obligations are determined by the investment committees of the Company’s subsidiaries and ratified by the full boards of directors of the respective subsidiaries.
Removed
Under the act, life insurance companies are taxed at standard corporate rates on life insurance company taxable income. Life insurance company taxable income is gross income less general business deductions and reserves for future policyholder benefits (with modifications).
Added
The Company’s life insurance subsidiaries completed their last examinations in 2021 and 2022 for the period ending December 31, 2020 and the resulting final examination reports were approved by the insurance departments and are public records.
Removed
The Company’s insurance subsidiaries compete with a large number of insurance companies, many of which have greater financial resources, longer business histories, and more diversified lines of insurance products than the Company. In addition, such companies generally have larger sales forces.
Added
The Tax Act changed this recognition period for amounts deferred after December 31, 2017 to a five or fifteen-year period. The Company’s non-life insurance company subsidiaries are taxed in general under the regular corporate tax provisions.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−0 removed13 unchanged
Biggest changeDuring the last three years, the Company has not experienced a material security breach and, as a result, the Company has not incurred any material expenses from such a breach. Furthermore, during such time, the Company has not been penalized or paid any amount under any information security breach settlement. 11
Biggest changeDuring the last three years, the Company has not experienced a material security breach and, as a result, the Company has no t incurred any material expenses from such a breach. Furthermore, during such time, the Company has not been penalized or paid any amount under any information security breach settlement. 11
The CIS controls are designed based on real-world data about cyber-attacks, to ensure that the measures are effective against current threats. The framework provides a prioritized set of actions, which enables the Company to focus its efforts on the most effective defensive measures first. This prioritization helps in optimizing the use of resources for maximum impact on security.
CIS controls are designed based on real-world data about cyber-attacks, to ensure that the measures are effective against current threats. The framework provides a prioritized set of actions, which enables the Company to focus its efforts on the most effective defensive measures first. This prioritization helps in optimizing the use of resources for maximum impact on security.

Item 2. Properties

Properties — owned and leased real estate

17 edited+13 added−12 removed7 unchanged
Biggest changeWest Lake Kiowa TX Mortgage Sales Leased 150 $ 495 / mo month to month 23227 Red River Drive Katy TX Mortgage Sales Leased 144 $ 750 / mo month to month 5707 Cold Springs Drive San Antonio TX Mortgage Sales Leased 100 $ - / mo month to month 4500 1-40 West, Suite B Amarillo TX Mortgage Sales Leased 1,238 $ 1,700 / mo 12/31/2024 30417 Fifth Street Suite B Fulshear TX Mortgage Sales Leased 1,000 $ 1,273 / mo month to month 4908 North Midkiff Road Midland TX Mortgage Sales Leased 1,550 $ 2,500 / mo month to month 462 Mid Cities Boulevard Hurst TX Mortgage Sales Leased 1,640 $ 2,500 / mo month to month 18525 West Lake Houston Parkway, Suite 222 Humble TX Mortgage Sales Leased 1,390 $ 2,612 / mo 9/30/2025 2600 South Shore Boulevard, Suite 300 League City TX Mortgage Sales Leased 94 $ 785 / mo 4/24/2024 106 Decker Court Suite 310 Irving TX Mortgage Sales Leased 1,664 $ 4,160 / mo 4/24/2024 1600 Lee Travino, Suite A-1 El Paso TX Mortgage Sales Leased 1,535 $ 2,110 / mo month to month 23702 IH-10 West, Suite 105-D San Antonio TX Mortgage Sales Leased 100 $ 470 / mo month to month 1777 NE Loop 410, Suite 600 San Antonio TX Mortgage Sales Leased 100 $ 1,070 / mo month to month 299 South Columbia, Stephenville TX Mortgage Sales Leased 3,417 $ 5,700 / mo month to month 18756 Stone Oak Parkway Ste 200 San Antonio TX Mortgage Sales Leased 100 $ 1,908 / mo month to month 10000 Central Expressway Ste 428 Dallas TX Mortgage Sales Leased 200 $ 1,400 / mo 12/31/2024 602 S Main St Weatherford TX Mortgage Sales Leased 1,250 $ 1,282 / mo 12/31/2024 5757 Flewellen Oaks Ln #104 Fulshear TX Mortgage Sales Leased 100 $ 800 / mo month to month 126 W.
Biggest changeWest Lake Kiowa TX Mortgage Sales Leased 150 $ - / mo month to month 23227 Red River Drive Katy TX Mortgage Sales Leased 144 $ 750 / mo month to month 4500 1-40 West, Suite B Amarillo TX Mortgage Sales Leased 1,238 $ 1,700 / mo 12/31/2025 30417 Fifth Street Suite B Fulshear TX Mortgage Sales Leased 1,000 $ 1,311 / mo month to month 4908 North Midkiff Road Midland TX Mortgage Sales Leased 1,550 $ 2,500 / mo month to month 462 Mid Cities Boulevard Hurst TX Mortgage Sales Leased 1,640 $ 2,500 / mo month to month 2600 South Shore Boulevard, Suite 300 League City TX Mortgage Sales Leased 94 $ 823 / mo 4/30/2025 1600 Lee Travino, Suite A-1 El Paso TX Mortgage Sales Leased 1,535 $ 2,110 / mo month to month 1777 NE Loop 410, Suite 600 San Antonio TX Mortgage Sales Leased 100 $ 1,140 / mo month to month 299 South Columbia, Stephenville TX Mortgage Sales Leased 3,417 $ 6,500 / mo month to month 10000 Central Expressway Ste 428 Dallas TX Mortgage Sales Leased 200 $ 1,400 / mo 12/31/2025 5757 Flewellen Oaks Ln #104 Fulshear TX Mortgage Sales Leased 100 $ 800 / mo month to month 2100 Kramer Ln. #900 Austin TX Mortgage Sales Leased 5,634 $ 10,329 / mo 7/31/2029 10024 County Rd. 1016 Burleson TX Mortgage Sales Leased 100 $ - / mo month to month 2001 Timberloch Pl. #500-31 The Woodlands TX Mortgage Sales Leased 100 $ 1,000 / mo 7/1/2025 1526 Katy Gap Rd. #802 Katy TX Mortgage Sales Leased 1,237 $ 3,500 / mo month to month 14090 SW Freeway Suite 300 #374 Sugar Land TX Mortgage Sales Leased 140 $ 1,077 / mo month to month 800 Town & Country Blvd., Suite 500 #369 Austin TX Mortgage Sales Leased 100 $ 793 / mo month to month 800 Town & Country Blvd., Suite 500 #370 Austin TX Mortgage Sales Leased 100 $ 793 / mo month to month 801 Town & Country Blvd., Suite 500 #371 Austin TX Mortgage Sales Leased 100 $ 793 / mo month to month 126 W.
Suite 302A Mandeville LA Insurance Sales Leased 1,335 $ 2,400 / mo 6/30/2024 79 E. Main Street Midway UT Funeral Service Sales Leased 4,476 $ 6,233 / mo 10/31/2025 4387 S. 500 W. Salt Lake City UT Funeral Service Sales Leased 2,168 $ 1,895 / mo 7/31/2025 1627A Central Ave.
Main Street Midway UT Funeral Service Sales Leased 4,476 $ 6,233 / mo 10/31/2025 4387 S. 500 W. Salt Lake City UT Funeral Service Sales Leased 2,168 $ 1,895 / mo 7/31/2025 1627A Central Ave.
Los Alamos NM Funeral Service Sales Leased 1,400 $ 1,600 / mo 12/30/2024 200 Market Way Rainbow City AL Fast Funding Operations Leased 12,850 $ 10,490 / mo 1/31/2025 5100 N. 99th Ave., Suite 101/103 Phoenix AZ Mortgage Sales Sub-Leased 3,940 $ 3,369 / mo month to month 10609 N.
Los Alamos NM Funeral Service Sales Leased 1,400 $ 1,600 / mo month to month 200 Market Way Rainbow City AL Fast Funding Operations Leased 12,850 $ 10,910 / mo 1/31/2027 500 W Main St. #106 Russellville AR Fast Funding Operations Leased 198 $ 1,000 / mo month to month 5100 N. 99th Ave., Suite 101/103 Phoenix AZ Mortgage Sales Sub-Leased 3,940 $ 3,586 / mo month to month 1490 S.
Redwood Cemetery 6500 South Redwood Road West Jordan, Utah 1973 40 71 35 36 Deseret Memorial Inc. Lake Hills Cemetery 10055 South State Street Sandy, Utah 1991 9 28 6 22 Holladay Memorial Park, Inc. Holladay Memorial Park 4900 South Memory Lane Holladay, Utah 1991 12 14 8 6 California Memorial Estates, Inc.
Lake Hills Cemetery 10055 South State Street Sandy, Utah 1991 9 28 6 22 Holladay Memorial Park, Inc. Holladay Memorial Park 4900 South Memory Lane Holladay, Utah 1991 12 16 8 8 California Memorial Estates, Inc.
Sego Lily Dr., Suite 126 Sandy UT Mortgage Sales Leased 2,794 $ 6,933 / mo 1/31/2027 497 S. Main Ephraim UT Mortgage Sales Leased 1,884 $ 1,600 / mo 4/30/2025 11240 S. River Heights Dr. South Jordan UT Mortgage Sales Leased 3,403 $ 8,458 / mo 11/30/2024 500 East Village Blvd.
Sego Lily Dr., Suite 126 Sandy UT Mortgage Sales Leased 2,794 $ 7,090 / mo 1/31/2027 497 S. Main Ephraim UT Mortgage Sales Leased 1,884 $ 1,600 / mo 4/30/2025 11240 S. River Heights Dr.
Item 2. Properties The tables below set forth the location of the Company’s office facilities and certain other information relating to these properties.
Item 2. Properties The tables below set forth the location of the Company’s office facilities and certain other information relating to these properties. Street City State Function Owned / Leased Approximate Square Footage Lease Amount Expiration 433 W.
Parleys Way, Suites 120 & 150 Salt Lake City UT Mortgage Sales Leased 5,256 $ 8,962 / mo 7/31/2030 859 W South Jordan Pkwy, Suite 101, South Jordan UT Mortgage Sales Leased 3,376 $ 6,175 / mo 5/30/2025 768 S. 1600 W., Suite B Mapleton UT Mortgage Sales Leased 1,500 $ 4,120 / mo month to month UT ( ) 998 N 1200 W, Suite 104 Orem Orem UT Mortgage Sales Leased 2,162 $ 5,648 / mo month to month 21430 Cedar Dr., Suite 200-202 Sterling VA Mortgage Sales Leased 6,850 $ 16,360 / mo 3/9/2024 15650 NE Fourth Blvd Ste 101 Vancouver WA Mortgage Sales Leased 200 $ 485 / mo 11/30/2024 1508 24th Ave., Suite 23 Kenosha WI Mortgage Sales Leased 250 $ 150 / mo month to month 27903 99th St.
Parleys Way, Suites 120 & 150 Salt Lake City UT Mortgage Sales Leased 5,256 $ 9,186 / mo 7/31/2030 859 W South Jordan Pkwy, Suite 101, South Jordan UT Mortgage Sales Leased 3,376 $ 6,360 / mo 5/30/2025 768 S. 1600 W., Suite B Mapleton UT Mortgage Sales Leased 1,500 $ 4,240 / mo month to month 998 N 1200 W, Suite 104 Orem Orem UT Mortgage Sales Leased 2,162 $ 5,648 / mo month to month 162 N 400 E #C205 St.
Covington LA Mortgage Sales Leased 150 $ 750 / mo month to month 81 Boulder Drive, Elizabethtown KY Mortgage Sales Leased 100 $ - / mo month to month 8684 Veterans Hwy, Ste 101 Millersville MD Mortgage Sales Leased 4,018 $ 6,927 / mo 7/31/2026 860 Blue Gentian Road Suite 205 Eagan NM Mortgage Sales Leased 100 $ 383 / mo month to month 12 Item 2.
Suite 609 Honolulu HI Mortgage Sales Leased 716 $ 2,270 / mo 1/31/2025 802 West Bartlett Road Bartlett IL Mortgage Sales Leased 2,300 $ 6,000 / mo 12/31/2025 81 Boulder Drive Elizabethtown KY Mortgage Sales Leased 100 $ - / mo month to month 8684 Veterans Hwy, Ste 101 Millersville MD Mortgage Sales Leased 4,018 $ 7,135 / mo 7/31/2026 860 Blue Gentian Road Suite 205 Eagan MN Mortgage Sales Leased 100 $ 383 / mo month to month 4987 Fall Creek Rd.
Net Saleable Acreage Name of Cemetery Location Date Acquired Developed Acreage Total Acreage Acres Sold as Cemetery Spaces (1) Total Available Acreage Memorial Estates, Inc. Lakeview Cemetery 1640 East Lakeview Drive Bountiful, Utah 1973 9 39 8 31 Memorial Estates, Inc. Mountain View Cemetery 3115 East 7800 South Salt Lake City, Utah 1973 26 54 20 34 Memorial Estates, Inc.
Lakeview Cemetery 1640 East Lakeview Drive Bountiful, Utah 1973 9 39 8 31 Memorial Estates, Inc. Mountain View Cemetery 3115 East 7800 South Salt Lake City, Utah 1973 26 54 20 34 Memorial Estates, Inc. Redwood Cemetery 6500 South Redwood Road West Jordan, Utah 1973 40 74 35 39 Deseret Memorial Inc.
Suite 1 Branson MO Mortgage Sales Leased 700 $ 1,000 / mo month to month 4700 Homewood Ct #260 Raleigh NC Mortgage Sales Leased 2,339 $ 5,353 / mo 2/28/2025 110 North Center Street, Suite 203 Hickory NC Mortgage Sales Leased 100 $ 680 / mo 5/14/2024 2015 Ayrsley Town Blvd, Suite 247 Charlotte NC Mortgage Sales Leased 100 $ 1,644 / mo month to month 1980 Festival Plaza Dr., Suite 850 Las Vegas NV Mortgage Sales Leased 12,866 $ 46,446 / mo 3/31/2027 840 Pinnacle Ct., Suite 3 Mesquite NV Mortgage Sales Leased 900 $ 720 / mo 3/12/2022 2635 St.
SE Hickory NC Mortgage Sales Leased 1,000 $ 900 / mo 5/31/2025 1980 Festival Plaza Dr., Suite 850 Las Vegas NV Mortgage Sales Leased 12,866 $ 47,862 / mo 3/31/2027 840 Pinnacle Ct., Suite 3 Mesquite NV Mortgage Sales Leased 900 $ 720 / mo month to month 2635 St.
Properties (Continued) The following table summarizes the location and acreage of the seven Company owned cemeteries, each of which includes one or more mausoleums. The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports, or the Company’s inspection of the cemeteries. The Company estimates that there are approximately 1,200 spaces per developed acre.
The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports, or the Company’s inspection of the cemeteries. The Company estimates that there are approximately 1,200 spaces per developed acre. Net Saleable Acreage Name of Cemetery Location Date Acquired Developed Acreage Total Acreage Acres Sold as Cemetery Spaces (1) Total Available Acreage Memorial Estates, Inc.
Street City State Function Owned / Leased Approximate Square Footage Lease Amount Expiration 433 Ascension Way, Floors 4, 5 and 6 Salt Lake City UT Corporate Headquarters, Insurance Operations, Cemetery and Mortuary Operations, Mortgage Operations and Sales Owned 221,000 N/A N/A 1044 River Oaks Dr. (1) Flowood MS Insurance Operations Owned 5,522 N/A N/A 1818 Marshall St.
Ascension Way, Floors 4, 5 and 6 Salt Lake City UT Corporate Headquarters, Insurance Operations, Cemetery and Mortuary Operations, Mortgage Operations and Sales Owned 221,000 N/A N/A 1818 Marshall St. Shreveport LA Insurance Operations Owned 12,274 N/A N/A 812 Sheppard St. Minden LA Insurance Sales Owned 1,560 N/A N/A 4901 S.
Price Road, Suite 318 Chandler AZ Mortgage Sales Leased 1,600 $ 3,050 / mo 6/30/2024 5100 N. 99th Ave., Suite 111 Phoenix AZ Mortgage Sales Sub-Leased 720 $ 2,382 / mo month to month 1951 West Camelback Rd, Ste 200 Phoenix AZ Mortgage Sales Leased 2,446 $ 3,771 / mo month to month 2636 Hwy 95 Suite 2 Bullhead City AZ Mortgage Sales Leased 1,000 $ 1,225 / mo month to month 2220 S.
Price Road, Suite 318 Chandler AZ Mortgage Sales Leased 1,600 $ 3,840 / mo 6/30/2025 1951 West Camelback Rd, Ste 200 Phoenix AZ Mortgage Sales Leased 2,446 $ 4,077 / mo 1/31/2026 2220 S.
Stansbury Park UT Mortgage Sales Leased 1,950 $ 3,475 / mo 10/31/2024 1350 E. 300 S. 3rd Floor Lehi UT Mortgage Sales Leased 15,446 $ 38,396 / mo 12/22/2026 2455 E.
South Jordan UT Mortgage Sales Leased 3,403 $ 8,468 / mo 11/30/2026 1350 E. 300 S. 3rd Floor Lehi UT Mortgage Sales Leased 15,446 $ 39,542 / mo 12/22/2026 2455 E.
Union Ave., Suite 550 Denver CO Mortgage Sales Sub-Leased 4,656 $ 11,640 / mo 2/28/2026 5982 s Zeno Ct Aurora CO Mortgage Sales Leased 50 $ - / mo month to month 5475 Tech Center Drive #201-A Colorado Springs CO Mortgage Sales Leased 790 $ 1,218 / mo 9/30/2024 1145 Town Park Ave., Suite 2215 Lake Mary FL Mortgage Sales Leased 5,901 $ 12,294 / mo 2/29/2024 8191 College Parkway, Suite 201 Ft Myers FL Mortgage Sales Leased 4,676 $ 4,505 / mo 8/21/2024 2350 Fruitville Rd Ste, Ste 101 Sarasota FL Mortgage Sales Leased 2,455 $ 5,266 / mo 3/14/2026 921 Club House Blvd, New Smyrna Beach, FL Mortgage Sales Leased 50 $ - / mo month to month 9123 N.
Union Ave., Suite 550 Denver CO Mortgage Sales Sub-Leased 4,656 $ 11,834 / mo 2/28/2026 5982 s Zeno Ct Aurora CO Mortgage Sales Leased 50 $ - / mo month to month 5475 Tech Center Drive #201-A Colorado Springs CO Mortgage Sales Leased 790 $ 1,185 / mo 12/31/2027 447 Naubuc Ave. #110 Glasonbury CT Mortgage Sales Leased 1420 2367 / mo 3/31/2027 84 Broad St. 2nd Fl #6 Milford CT Mortgage Sales Leased 200 $ 600 / mo 5/31/2025 8191 College Parkway, Suite 201 Ft Myers FL Mortgage Sales Leased 4,676 $ 4,871 / mo 8/21/2025 2350 Fruitville Rd Ste, Ste 101 Sarasota FL Mortgage Sales Leased 2,455 $ 5,424 / mo 3/14/2026 970 Island Grove Drive Deland FL Mortgage Sales Leased 100 $ - / mo month to month 10293 61st Ct N Pinellas Park FL Mortgage Sales Leased 100 $ - / mo month to month 250 International Pkwy #118 Lake Mary FL Mortgage Sales Leased 3,068 $ 3,630 / mo 3/31/2027 5666 Seminole Blvd. #128 Seminole FL Mortgage Sales Leased 136 785.00 / mo 6/30/2025 900 Cricle 75 Parkway, Ste 175 Atlanta GA Mortgage Sales Leased 3,020 $ 6,531 / mo 6/30/2026 6600 Peachtree Dunwoody Rd, Ste 135 Atlanta GA Mortgage Sales Leased 2,129 $ 5,138 / mo 3/31/2026 2570 Stonevalley Ln Cumming Atlanta GA Mortgage Sales Leased 100 $ - / mo month to month 3330 Cumberland Blvd.
Highway 101 Suite 7 Solana Beach CA Mortgage Sales Leased 2,000 $ 7,426 / mo 7/31/2026 44441 West 16th Street #101 Lancaster CA Mortgage Sales Leased 2,115 $ 2,057 / mo 1/31/2024 1420 Magnolia Ave Oxnard CA Mortgage Sales Leased 100 $ 6,392 / mo 3/30/2024 625 The City Drive, Suite 450 Orange CA Mortgage Sales Leased 2,485 $ 6,655 / mo 12/31/2024 27 Main St., Suite C-104B Edwards CO Mortgage Sales Leased 680 $ 1,950 / mo month to month 4501 Mohawk Dr.
Highway 101 Suite 7 Solana Beach CA Mortgage Sales Leased 2,000 $ 7,649 / mo 7/31/2026 2455 Bennett Valley Rd. #C107 Santa Rosa CA Mortgage Sales Leased 849 $ 1,729 / mo 7/31/2025 78-065 Main St. #205C La Quinta CA Mortgage Sales Leased 125 $ 550 / mo month to month 27 Main St., Suite C-104B Edwards CO Mortgage Sales Leased 680 $ 1,950 / mo month to month 4501 Mohawk Dr.
Johnson City TN Mortgage Sales Sub-Leased 1,521 $ 800 / mo month to month 4646 Poplar Avenue, #317 Memphis TN Mortgage Sales Leased 477 $ 845 / mo 3/31/2024 115 W.
Johnson City TN Mortgage Sales Sub-Leased 1,521 $ 1,000 / mo 1/31/2025 1607 Solitude Ct. Spring Hill TN Mortgage Sales Leased 100 $ - / mo month to month 3292 Winbrook Dr.
Removed
Shreveport LA Insurance Operations Owned 12,274 N/A N/A 812 Sheppard St. Minden LA Insurance Sales Owned 1,560 N/A N/A 909 Foisy Ave. (2) Alexandria LA Insurance Sales Owned 8,059 N/A N/A 1550 N. Third St. (1) Jena LA Insurance Sales Owned 1,737 N/A N/A 1 Sanctuary Blvd.
Added
Memory Lane Holladay UT Funeral Service Sales Owned 1,200 N/A N/A 1080 River Oaks Drive Suite #B204 Flowood MS Insurance Sales Leased 2,685 $ 3,916 / mo 8/31/2028 1 Sanctuary Blvd #302 Manderville LA Insurance Sales Leased 1,335 $ 2,146 / mo 6/30/2025 79 E.
Removed
Hayden Rd., Suite 100 Scottsdale AZ Mortgage Sales Leased 3,585 $ 8,650 / mo month to month 1490 S.
Added
Country Club Drive Suite 101 Mesa AZ Mortgage Sales Leased 3,274 $ 5,500 / mo 2/14/2028 6751 N Sunset Blvd. #E260 Glendale AZ Mortgage Sales Leased 1,496 $ 5,319 / mo 04/30/25 7014 E Camelback Rd. #B100A Scottsdale AZ Mortgage Sales Leased 100 $ 1,538 / mo month to month 1360 N Bullard Ave. #I-207 & #J-208 Goodyear AZ Mortgage Sales Leased 280 $ 3,610 / mo 8/31/2025 40977 Oak Dr.
Removed
Country Club Drive Suite 101 Mesa AZ Mortgage Sales Leased 3,274 $ 5,339 / mo 2/14/2028 350 West 16th Street #209 Yum AZ Mortgage Sales Leased 1,731 $ 4,284 / mo 6/30/2024 102 North Cortez St.
Added
Suite 500 #62 Atlanta GA Mortgage Sales Leased 100 $ 1,190 / mo month to month 3330 Cumberland Blvd. Suite 500 #63 Atlanta GA Mortgage Sales Leased 50 $ 860 / mo month to month 3330 Cumberland Blvd.
Removed
Prescott AZ Mortgage Sales Leased 100 $ 600 / mo month to month 15169 North Scottsdale Road, #205 - office 3012 & 3013 Scottsdale AZ Mortgage Sales Leased Unknown $ 3,400 / mo month to month 10265 W. Camelback Road, #100 Phoenix AZ Mortgage Sales Leased 1,647 $ 3,817 / mo 2/27/2024 40977 Oak Dr.
Added
Suite 500 #65 Atlanta GA Mortgage Sales Leased 100 $ 1,190 / mo month to month 4370 Kukui Grove St., Suite 201 Lihue HI Mortgage Sales Leased 864 $ 1,589 / mo 2/28/2025 1001 Kamokila Blvd. Kapolei HI Mortgage Sales Leased 737 $ 1,865 / mo 12/31/2025 677 Ala Moana Blvd.
Removed
Military Trail, #104B Palm Beach Gardens FL Mortgage Sales Leased 150 $ 800 / mo month to month 970 Island Grove Drive Deland FL Mortgage Sales Leased 100 $ - / mo month to month 10293 61st Ct N Pinellas Park FL Mortgage Sales Leased 100 $ - / mo month to month 5666 Seminole Blvd, Suite 106 & 111 Seminole FL Mortgage Sales Leased 210 $ 1,170 / mo 7/31/2024 2033 Main Street, Suite 407 Sarasota FL Mortgage Sales Leased 2,410 $ 2,812 / mo 10/31/2024 265 E Marion Ave Punta Gorda FL Mortgage Sales Leased - $ 99 / mo month to month 900 Cricle 75 Parkway, Ste 175 Atlanta GA Mortgage Sales Leased 3,020 $ 6,341 / mo 6/30/2026 6600 Peachtree Dunwoody Rd, Ste 135 Atlanta GA Mortgage Sales Leased 2,129 $ 4,988 / mo 3/31/2026 4370 Kukui Grove St., Suite 201 Lihue HI Mortgage Sales Leased 864 $ 1,542 / mo 2/28/2025 1001 Kamokila Blvd.
Added
Suite 1 Branson MO Mortgage Sales Leased 700 $ 1,400 / mo month to month 960 S 24th St. West Suite I Billings MT Mortgage Sales Leased 200 $ 750 / mo month to month 739 11th Avenue Blvd.
Removed
Kapolei HI Mortgage Sales Leased 737 $ 1,813 / mo 12/31/2025 32 Kinoole St. Suite 101, Hilo HI Hilo HI Mortgage Sales Leased 730 $ 2,373 / mo 5/31/2024 1885 Main Street #108 Wailuku HI Mortgage Sales Leased 1,092 $ 1,602 / mo 5/14/2024 677 Ala Moana Blvd.
Added
Rose Pkwy, Suites D 100, 110, 120 Hendeson NV Mortgage Sales Leased 5,788 $ 13,029 / mo 9/30/2025 2546 Findlater Henderson NV Mortgage Sales Leased 120 $ - / mo month to month 1180 N Town Center Dr. #265 Las Vegas NV Mortgage Sales Leased 2,638 $ 7,650 / mo 9/30/2027 12 Item 2.
Removed
Suite 609 Honolulu HI Mortgage Sales Leased 716 $ 2,141 / mo 1/31/2024 970 No Kalaheo Ave, Kailua, Suite A307, HI 96734 Kailua HI Mortgage Sales Leased 510 $ 1,245 / mo 5/31/2024 70 Kanoa Street Suite #140 Wailuku HI Mortgage Sales Sub-Leased Unknown $ 300 / mo month to month 315 Cece Way Mccall ID Mortgage Sales Leased 100 $ - / mo month to month 802 West Bartlett Road Bartlett IL Mortgage Sales Leased 2,300 $ 6,000 / mo 12/31/2024 568 Greenluster Dr.
Added
Properties (Continued) Street City State Function Owned / Leased Approximate Square Footage Lease Amount Expiration 630 S 4th St. #100C Las Vegas NV Mortgage Sales Leased 1,100 $ 2,195 / mo month to month 401 S Frontage Rd. #1 Pahrump NV Mortgage Sales Leased 2,200 $ 3,000 / mo 8/31/2025 670 Meridian Way, Suite 146 Westerville OH Mortgage Sales Leased 100 $ 644 / mo month to month 1000 W Wilshire Blvd. #220 Oklahoma City OK Mortgage Sales Leased 200 $ 550 / mo month to month 11592 SW Roundup Place Terrebonne OR Mortgage Sales Leased 100 $ - / mo month to month 709 Pacific Ave Tillamook OR Mortgage Sales Leased 120 $ - / mo month to month 323 NW 13th Ave. #403 Portland OR Mortgage Sales Leased 580 $ 1,160 / mo 9/30/2027 3970 Post Rd. #2PH Warwick RI Mortgage Sales Leased 391 $ 850 / mo 3/31/2025 144 Alf Taylor Rd.
Removed
Properties (Continued) Street City State Function Owned / Leased Approximate Square Footage Lease Amount Expiration 4987 Fall Creek Rd.
Added
Memphis TN Mortgage Sales Leased 169 $ 200 / mo month to month 1213 East Alton Gloor Blvd., Suite H Brownsville TX Mortgage Sales Leased 2,000 $ 2,400 / mo 2/28/2025 722 Kiowa Dr.
Removed
Rose Pkwy, Suites D 100, 110, 120 Hendeson NV Mortgage Sales Leased 5,788 $ 12,649 / mo 9/30/2025 2250 East Postal Drive, Suite 1 Pahrump NV Mortgage Sales Sub-Leased 1,500 $ 1,743 / mo month to month 2546 Findlater Henderson NV Mortgage Sales Leased 120 $ - / mo month to month 670 Meridian Way, Suite 146 Westerville OH Mortgage Sales Leased 100 $ 599 / mo month to month 10365 SE Sunnyside Rd., Suite 310 Clackamus OR Mortgage Sales Leased 1,288 $ 2,899 / mo 11/30/2024 11592 SW Roundup Place Terrebonne OR Mortgage Sales Leased 100 $ - / mo month to month 709 Pacific Ave Tillamook OR Mortgage Sales Leased 120 $ - / mo month to month 144 Alf Taylor Rd.
Added
George UT Mortgage Sales Leased 1,177 $ 2,297 / mo 4/30/2026 500 E Village Blvd. #108 Stansbury Park UT Mortgage Sales Leased 200 $ 600 / mo 4/30/2025 15650 NE Fourth Blvd Ste 101 Vancouver WA Mortgage Sales Leased 200 $ 485 / mo month to month 1508 24th Ave., Suite 23 Kenosha WI Mortgage Sales Leased 250 $ 150 / mo month to month 27903 99th St.
Removed
New Street Kingsport TN Mortgage Sales Leased 100 $ 650 / mo month to month 11550 Fuqua, Suite 200 Houston TX Mortgage Sales Leased 1,865 $ 3,341 / mo 4/30/2024 17347 Village Green Dr., Suite 102 Houston TX Mortgage Sales Sub-Leased 3,300 $ 5,995 / mo 12/1/2024 9737 Great Hills Trail, Suites 150, 200, 220 Austin TX Mortgage Sales Leased 19,891 $ 40,196 / mo month to month 1213 East Alton Gloor Blvd., Suite H Brownsville TX Mortgage Sales Leased 2,000 $ 2,310 / mo 2/28/2024 5020 Collinwood Ave., Suite 100 Fort Worth TX Mortgage Sales Leased 2,687 $ 5,500 / mo 1/31/2025 722 Kiowa Dr.
Added
Trevor WI Mortgage Sales Leased 300 $ 150 / mo month to month 645 3rd St. #7 Beloit WI Mortgage Sales Leased 110 $ 567 / mo month to month 2527 S Business Dr. Sheboygan WI Mortgage Sales Leased 980 $ 1,200 / mo month to month 14775 W National Ave.
Removed
Trevor WI Mortgage Sales Leased 300 $ 150 / mo month to month (1) These two properties were sold during the first quarter of 2024. (2) This property is currently listed for sale and under contract. The Company believes the office facilities it occupies are in good operating condition and adequate for current operations.
Added
New Berlin WI Mortgage Sales Leased 2,390 $ 2,000 / mo 9/1/2026 255 E 2nd St. #1 Powell WY Mortgage Sales Leased 200 $ 300 / mo month to month 288 Scrub Oak Dr.
Removed
The Company plans to enter into additional leases or modify existing leases based on its assessments of market demand. Those leases are expected to be month to month where possible. As leases expire, the Company plans to either renew or find comparable leases or acquire additional office space. 13 Item 2.
Added
Star Valley Ranch WY Mortgage Sales Leased 100 $ - / mo month to month The Company believes the office facilities it occupies are in good operating condition and adequate for current operations. The Company will generally enter into additional leases, modify existing leases or extend current leases based on its assessments of current market demand for its services.
Added
Those leases are expected to be month to month where possible. 13 Item 2. Properties (Continued) The following table summarizes the location and acreage of the seven Company owned cemeteries, each of which includes one or more mausoleums.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

1 edited+1 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures 16 Part II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16 Item 6. [Reserved] 18 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 19 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 31 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 16 Part II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16 Item 6. [Reserved] 18 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 19 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 27 Item 8.
Added
Financial Statements and Supplementary Data 28 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 118 Item 9A. Controls and Procedures 118 Item 9B. Other Information 118 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 119 Part III

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

11 edited+0 added−0 removed5 unchanged
Biggest changeThe following were the high and low market closing stock prices for the Class A common stock by quarter as reported by NASDAQ since January 1, 2022: Price Range (1) High Low Period (Calendar Year) 2022 First Quarter $ 9.39 $ 8.13 Second Quarter $ 9.40 $ 7.46 Third Quarter $ 8.20 $ 5.93 Fourth Quarter $ 7.21 $ 5.81 2023 First Quarter $ 7.19 $ 5.71 Second Quarter $ 8.45 $ 6.03 Third Quarter $ 8.83 $ 7.58 Fourth Quarter $ 9.60 $ 6.89 2024 First Quarter (through March 26, 2024) $ 9.04 $ 7.62 (1) Stock prices have been adjusted retroactively for the effect of annual stock dividends.
Biggest changeThe following were the high and low market closing stock prices for the Class A Common Stock by quarter as reported by NASDAQ since January 1, 2023: Price Range (1) High Low Period (Calendar Year) 2023 First Quarter $ 6.85 $ 5.44 Second Quarter $ 8.05 $ 5.74 Third Quarter $ 8.41 $ 7.22 Fourth Quarter $ 9.14 $ 6.56 2024 First Quarter $ 9.04 $ 7.26 Second Quarter $ 8.00 $ 6.19 Third Quarter $ 9.20 $ 7.45 Fourth Quarter $ 13.42 $ 9.12 2025 First Quarter (through March 27, 2025) $ 13.46 $ 11.31 (1) Stock prices have been adjusted retroactively for the effect of annual stock dividends.
Any future determination as to cash dividends will depend upon the earnings and financial position of the Company and such other factors as the Board of Directors may deem appropriate.
Any future determination as to cash dividends will depend upon the earnings and financial position of the Company and such other factors as its Board of Directors may deem appropriate.
Any repurchased shares of Class A common stock are to be held as treasury shares to be used as the Company’s employer matching contribution to the Employee 401(k) Retirement Savings Plan and for shares held in the Deferred Compensation Plan. 17 The graph below compares the cumulative total stockholder return of the Company’s Class A common stock with the cumulative total return on the Standard & Poor’s 500 Stock Index and the Standard & Poor’s Insurance Index for the period from December 31, 2019 through December 31, 2023.
Any repurchased shares of Class A Common Stock are to be held as treasury shares to be used as the Company’s employer matching contribution to the Employee 401(k) Retirement Savings Plan and for shares held in the Deferred Compensation Plan. 17 The graph below compares the cumulative total stockholder return of the Company’s Class A Common Stock with the cumulative total return on the Standard & Poor’s 500 Stock Index and the Standard & Poor’s Insurance Index for the period from December 31, 2020 through December 31, 2024.
The graph assumes that the value of the investment in the Company’s Class A common stock and in each of the indexes was $100 as of December 31, 2019 and that all dividends were reinvested.
The graph assumes that the value of the investment in the Company’s Class A Common Stock and in each of the indexes was $100 as of December 31, 2020 and that all dividends were reinvested.
The following table shows the Company’s repurchase activity of its common stock during the three-month period ended December 31, 2023 under the 10b5-1 agreement.
The following table shows the Company’s repurchase activity of its common stock during the three-month period ended December 31, 2024, under the 10b5-1 agreement.
Period (a) Total Number of Class A Shares Purchased (b) Average Price Paid per Class A Share (1) (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program (d) Maximum Number of Class A Shares that May Yet Be Purchased Under the Plan or Program (2) 10/1/2023-10/31/2023 - $ - - 318,043 11/1/2023-11/30/2023 - $ - - 318,043 12/1/2023-12/31/2023 - $ - - 318,043 Total - $ - - 318,043 (1) Includes fees and commissions paid on stock repurchases.
Period (a) Total Number of Class A Shares Purchased (b) Average Price Paid per Class A Share (1) (c) Total Number of Class A Shares Purchased as Part of Publicly Announced Plan or Program (d) Maximum Number of Class A Shares that May Yet Be Purchased Under the Plan or Program (2) 10/1/2024-10/31/2024 - $ - - 194,612 11/1/2024-11/30/2024 - - - 194,612 12/1/2024-12/31/2024 - - - 194,612 Total - $ - - 194,612 (1) Includes fees and commissions paid on stock repurchases.
The Company paid a 5% stock dividend on Class A and Class C common stock each year from 1990 through 2019, a 7.5% stock dividend for the year 2020, and a 5.0% stock dividend for the years 2021 through 2023. 16 On December 27, 2022, the Company executed a 10b5-1 agreement with a broker to repurchase shares of the Company’s Class A Common Stock.
The Company paid a 5% stock dividend on Class A and Class C Common Stock each year from 1990 through 2019, a 7.5% stock dividend for the year 2020, and a 5.0% stock dividend for the years 2021 through 2024. 16 On April 15, 2024, the Company executed a 10b5-1 agreement with a broker to repurchase shares of the Company’s Class A Common Stock.
The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of the Company’s Class A common stock. 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 SNFC 100 153 177 148 191 S & P 500 100 116 148 119 148 S & P Insurance 100 126 158 171 183 The stock performance graph set forth above is required by the Securities and Exchange Commission and shall not be deemed to be incorporated by reference by any general statement incorporating by reference this Form 10-K into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates this information by reference, and shall not otherwise be deemed soliciting material or filed under such acts.
The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of the Company’s Class A Common Stock. 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 SNFC 100 116 96 125 175 S & P 500 100 128 103 128 158 S & P Insurance 100 125 135 145 181 The stock performance graph set forth above is required by the Securities and Exchange Commission and shall not be deemed to be incorporated by reference by any general statement incorporating by reference this Form 10-K into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates this information by reference, and shall not otherwise be deemed soliciting material or filed under such acts.
Item 5. Market for the Registrant’s Common Stock, Related Stockholder Matters, and Issuer Purchases of Equity Securities The Company’s Class A common stock trades on The Nasdaq Global Select Market under the symbol “SNFCA.” As of March 26, 2024, the closing stock price of the Class A common stock was $7.62 per share.
Item 5. Market for the Registrant’s Common Stock, Related Stockholder Matters, and Issuer Purchases of Equity Securities The Company’s Class A Common Stock trades on The Nasdaq Global Select Market under the symbol “SNFCA.” As of March 27, 2025, the closing stock price of the Class A Common Stock was $12.61 per share.
Under the terms of the agreement, the broker is permitted to repurchase up to 1,000,000 shares of the Company’s Class A Common Stock. The agreement is subject to the daily time, price, and volume conditions of Rule 10b-18. The agreement expired December 31, 2023.
Under the terms of the agreement, the broker is permitted to repurchase up to $1,000,000 of the Company’s Class A Common Stock. Purchases commenced May 15, 2024. The agreement is subject to the daily time, price and volume conditions of Rule 10b-18. The agreement expired on December 31, 2024.
As of March 26, 2024, there were 1,747 registered stockholders of record of the Company’s Class A common stock and 42 registered stockholders of record of the Company’s Class C common stock.
As of March 27, 2025, there were 1,605 registered stockholders of record of the Company’s Class A Common Stock and 45 registered stockholders of record of the Company’s Class C Common Stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

61 edited+13 added−62 removed31 unchanged
Biggest changeProfitability in 2023 decreased due to (a) an $85,300,000 decrease in secondary gains from investors, (b) a $15,004,000 decrease in other revenues due to the sale of certain MSRs in October 2022, (c) a $1,535,000 increase in intersegment interest expense and other expenses, (d) a $1,527,000 decrease in income from loan originations, and (e) a $241,000 decrease in gains on investments and other assets, which were partially offset by (i) a $23,662,000 decrease in commissions, (ii) a $17,871,000 decrease in personnel expenses, (iii) a $13,180,000 decrease in other expenses, (iv) an $8,356,000 increase in the fair value of loans held for sale, (v) a $3,185,000 increase in the fair value of loan commitments, (vi) a $3,077,000 decrease in interest expense, (vii) a $1,100,000 decrease in costs related to funding mortgage loans, (viii) a $1,011,000 decrease in advertising expenses, (ix) a $392,000 increase in net investment income, (x) a $175,000 increase in intersegment revenues, (xi) a $42,000 decrease in depreciation on property and equipment, and (xii) a $52,000 decrease in rent and rent related expenses.
Biggest changeYears ended December 31 (in thousands of dollars) 2024 2023 2024 vs 2023 % Increase (Decrease) Revenues from external customers: Secondary gains from investors $ 70,355 $ 68,428 3 % Income from loan originations 33,604 31,245 8 % Change in fair value of loans held for sale 2,870 (478 ) 700 % Change in fair value of loan commitments 730 (1,124 ) 165 % Net investment income 902 1,580 (43 %) Gains on investments and other assets (986 ) 157 (728 %) Other revenues 2,497 1,576 58 % Intersegment revenues 573 531 8 % Total segment revenues $ 110,545 $ 101,915 8 % Segment net loss $ (4,949 ) $ (13,435 ) 63 % 20 Losses in 2024 compared to 2023 decreased due to (a) a $4,251,000 decrease in other expenses, (b) a $3,348,000 increase in the fair value of loans held for sale, (c) a $2,359,000 increase in income from loan originations, (d) a $2,177,000 decrease in personnel expenses, (e) a $1,927,000 increase in secondary gains from investors, (f) a $1,854,000 increase in the fair value of loan commitments, (g) a $1,729,000 decrease in rent and rent related expenses, (h) a $921,000 increase in other revenues, (i) a $904,000 decrease in intersegment interest expense and other expenses, (j) a $330,000 decrease in advertising expenses, (k) a $306,000 decrease in costs related to funding mortgage loans, (l) a $257,000 decrease in interest expense, (m) a $42,000 increase in intersegment revenues, and (n) a $29,000 decrease in depreciation on property and equipment, which were partially offset by (i) a $7,410,000 increase in commissions, (ii) a $2,717,000 increase in income tax expense, (iii) a $1,143,000 decrease in gains on investments and other assets, and (iv) a $678,000 decrease in net investment income.
Such anticipated premium revenues are estimated using the same assumption used for computing liabilities for future policy benefits and are generally “locked in” at the date the policies are issued. Value of Business Acquired Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized like deferred acquisition costs.
Such anticipated premium revenues are estimated using the same assumption used for computing liabilities for future policy benefits and are generally “locked in” at the date the policies are issued. Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized like deferred acquisition costs.
Mortgage loans originated or refinanced by SecurityNational Mortgage are funded through loan purchase agreements with Security National Life, Kilpatrick Life and unaffiliated financial institutions. SecurityNational Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from third party investors that purchase the mortgage loans.
Mortgage loans originated or refinanced by SecurityNational Mortgage are funded through loan purchase agreements with the Company, Security National Life, Kilpatrick Life, and unaffiliated financial institutions. SecurityNational Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from third party investors that purchase the mortgage loans.
The Company’s actuarial assumptions differing from actual mortality and morbidity experienced may mean that the Company’s relevant products sold were underpriced, may require the Company to liquidate insurance or other claims earlier than planned, and have other potentially adverse consequences to the business.
The Company’s actuarial assumptions differing from actual mortality and morbidity experienced may mean that the Company’s relevant products sold were underpriced, may require the Company to liquidate insurance or make other claims earlier than planned, and have other potentially adverse consequences to the business.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview The Company’s operations over the last several years generally reflect three strategies which the Company expects to continue: (i) increased attention to “niche” insurance products, such as the Company’s funeral plan policies and traditional whole life products; (ii) increased emphasis on cemetery and mortuary business; and (iii) capitalizing on an improving housing market by originating mortgage loans.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview The Company’s operations over the last several years generally reflect three strategies which the Company expects to continue: (i) increased attention to “niche” insurance products, such as the Company’s funeral plan policies and traditional whole life products; (ii) increased emphasis on cemetery and mortuary business; and (iii) capitalizing on the housing market by originating mortgage loans.
As of December 31, 2023, the Company’s subsidiary SecurityNational Mortgage was not in compliance with the net income covenants under its warehouse lines of credit and its operating cash flow covenant for its standby letter of credit with its primary bank. SecurityNational Mortgage has received or is in the process of receiving waivers from the warehouse banks.
As of December 31, 2024, the Company’s subsidiary SecurityNational Mortgage was not in compliance with the net income covenants under its warehouse lines of credit and its operating cash flow covenant for its standby letter of credit with its primary bank. SecurityNational Mortgage has received or is in the process of receiving waivers from the warehouse banks.
The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company could realize in the future on mortgage loans sold to third-party investors.
The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company will realize in the future on mortgage loans sold to third-party investors.
Insurance Operations The following table shows the condensed financial results for the Company’s insurance operations for 2023 and 2022. See Note 15 of the Notes to Consolidated Financial Statements.
Insurance Operations The following table shows the condensed financial results for the Company’s insurance operations for 2024 and 2023. See Note 15 of the Notes to Consolidated Financial Statements.
The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities. During 2023 and 2022 the Company decreased its loan loss reserve by $1,178,000 and increased its loan loss reserve by $1,079,000, respectively, for loan originations, and the charges have been included in mortgage fee income.
The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities. During 2024 and 2023 the Company increased its loan loss reserve by $150,000 and decreased its loan loss reserve by $1,178,000, respectively, for loan originations, and the charges have been included in mortgage fee income.
The allowances for credit losses on the Company’s mortgage loans held for investment portfolio as of December 31, 2023 and 2022 were $3,819,000 and $1,970,000, respectively. Interest Rate Risk .
The allowances for credit losses on the Company’s mortgage loans held for investment portfolio as of December 31, 2024 and 2023 were $1,885,000 and $3,819,000, respectively. Interest Rate Risk .
The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2023 and 2022, the balances were $547,000 and $1,726,000, respectively. The Company believes the loan loss reserve represents probable loan losses incurred as of December 31, 2023.
The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2024 and 2023, the balances were $697,000 and $547,000, respectively. The Company believes the loan loss reserve represents probable loan losses incurred as of December 31, 2024.
In the unlikely event SecurityNational Mortgage is required to repay the outstanding advances of approximately $7,732,000 on the warehouse line of credit that has not provided a covenant waiver, SecurityNational Mortgage has sufficient cash and borrowing capacity on the warehouse lines of credit that have provided covenant waivers to fund its origination activities.
In the unlikely event SecurityNational Mortgage is required to repay the outstanding advances of approximately $10,587,449 on the warehouse line of credit that has not provided a covenant waiver, SecurityNational Mortgage has sufficient cash and borrowing capacity on the warehouse lines of credit that have provided covenant waivers to fund its origination activities.
This increase was due to an increase of $9,238,000 in first year premiums because of increased preneed insurance sales and an increase of $419,000 in renewal premiums due to the growth of the Company in recent years, particularly in whole life products, which resulted in more premium paying policies in force.
This increase was due to an increase of $2,555,000 in first year premiums because of increased preneed insurance sales and an increase of $2,442,000 in renewal premiums due to the growth of the Company in recent years, particularly in whole life products, which resulted in more premium paying policies in force.
As of December 31, 2023, 1.8% (or $6,954,000) and as of December 31, 2022, 2.2% (or $7,833,000) of the insurance subsidiaries’ total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade.
As of December 31, 2024, 2.4% (or $8,431,000) and as of December 31, 2023, 1.8% (or $6,954,000) of the insurance subsidiaries’ total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade.
The life insurance subsidiaries cannot pay a dividend to their parent company without the approval of state insurance regulatory authorities.
The life insurance subsidiaries cannot pay dividends to their parent company without the approval of state insurance regulatory authorities.
As of December 31, 2023 and 2022, the life insurance subsidiaries were in compliance with the regulatory criteria. The Company’s total capitalization of stockholders’ equity, and bank loans and other loans payable was $418,450,000 as of December 31, 2023, as compared to $454,499,000 as of December 31, 2022.
As of December 31, 2024 and 2023, the life insurance subsidiaries were in compliance with the regulatory criteria. The Company’s total capitalization of stockholders’ equity, and bank loans and other loans payable was $445,758,000 as of December 31, 2024, as compared to $418,450,000 as of December 31, 2023.
The Company has not received or recognized any interest income on the $6,149,000 in mortgage loans with delinquencies exceeding 90 days. During 2023 and 2022, the Company increased its allowance for credit losses by $1,184,000 and by $270,000, respectively, which was charged to bad debt expense and included in selling, general and administrative expenses for the period.
The Company has not received or recognized any interest income on the $11,400,000 in mortgage loans with delinquencies exceeding 90 days. During 2024 and 2023, the Company decreased its allowance for credit losses by $1,934,000 and increased it by $1,184,000, respectively, which was charged to bad debt expense and included in selling, general and administrative expenses for the period.
The business in which the Company is engaged involves changing and competitive markets, which may involve a high degree of risk, and there can be no assurance that forward-looking statements and projections will prove accurate. 30 Factors that may cause the Company’s actual results to differ materially from those contemplated or projected, forecast, estimated or budgeted in such forward looking statements include among others, the following possibilities: (i) heightened competition, including the intensification of price competition, the entry of new competitors, and the introduction of new products by new and existing competitors; (ii) adverse state and federal legislation or regulation, including decreases in rates, limitations on premium levels, increases in minimum capital and reserve requirements, benefit mandates and tax treatment of insurance products; (iii) fluctuations in interest rates causing a reduction of investment income or increase in interest expense and in the market value of interest rate sensitive investment; (iv) failure to obtain new customers, retain existing customers or reductions in policies in force by existing customers; (v) higher service, administrative, or general expenses due to the need for additional advertising, marketing, administrative or management information systems expenditures; (vi) loss or retirement of key executives or employees; (vii) increases in medical costs; (viii) changes in the Company’s liquidity due to changes in asset and liability matching; (ix) restrictions on insurance underwriting based on genetic testing and other criteria; (x) adverse changes in the ratings obtained by independent rating agencies; (xi) failure to maintain adequate reinsurance; (xii) possible claims relating to sales practices for insurance products and claim denials; (xiii) adverse trends in mortality and morbidity; (xiv) deterioration of real estate markets; and (xv) lawsuits in the ordinary course of business.
Factors that may cause the Company’s actual results to differ materially from those contemplated or projected, forecast, estimated or budgeted in such forward looking statements include among others, the following possibilities: (i) heightened competition, including the intensification of price competition, the entry of new competitors, and the introduction of new products by new and existing competitors; (ii) adverse state and federal legislation or regulation, including decreases in rates, limitations on premium levels, increases in minimum capital and reserve requirements, benefit mandates and tax treatment of insurance products; (iii) fluctuations in interest rates causing a reduction of investment income or increase in interest expense and in the market value of interest rate sensitive investment; (iv) failure to obtain new customers, retain existing customers or reductions in policies in force by existing customers; (v) higher service, administrative, or general expenses due to the need for additional advertising, marketing, administrative or management information systems expenditures; (vi) loss or retirement of key executives or employees; (vii) increases in medical costs; (viii) changes in the Company’s liquidity due to changes in asset and liability matching; (ix) restrictions on insurance underwriting based on genetic testing and other criteria; (x) adverse changes in the ratings obtained by independent rating agencies; (xi) failure to maintain adequate reinsurance; (xii) possible claims relating to sales practices for insurance products and claim denials; (xiii) adverse trends in mortality and morbidity; (xiv) deterioration of real estate markets; and (xv) lawsuits in the ordinary course of business. 26 Off-Balance Sheet Agreements The Company has commitments to fund existing construction and land development loans pursuant to the various loan agreements.
Mortgage loans are generally sold with mortgage servicing rights (“MSRs”) released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the MSRs on approximately 4% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer. On October 31, 2022, the Company sold certain of its MSRs.
Mortgage loans are generally sold with mortgage servicing rights (“MSRs”) released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the MSRs on approximately 0.44% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer.
There is a risk, however, that future loan losses may exceed the loan loss reserve. As of December 31, 2023, the Company’s mortgage loans held for investment portfolio consisted of mortgage loans in an aggregate principal amount of $6,149,000 with delinquencies exceeding 90 days. Of this amount, loans with an aggregate principal amount of $2,263,000 were in foreclosure proceedings.
There is a risk, however, that future loan losses may exceed the loan loss reserve. As of December 31, 2024, the Company’s mortgage loans held for investment portfolio consisted of mortgage loans in an aggregate principal amount of $11,400,000 with delinquencies exceeding 90 days. Of this amount, loans with an aggregate principal amount of $4,134,000 were in foreclosure proceedings.
The Company has done an internal analysis of the funding capacities of both internal and external sources and has determined that there are sufficient funds to continue its business model. The Company continues to negotiate other warehouse lines of credit with other lenders. During 2023 and 2022, the Company’s operations provided cash of $54,008,000 and of $130,450,000, respectively.
The Company has done an internal analysis of the funding capacities of both internal and external sources and has determined that there are sufficient funds to continue its business model. The Company continues to negotiate other warehouse lines of credit with other lenders. During 2024 and 2023, the Company’s operations provided cash of $57,320,000 and of $53,875,000, respectively.
See Note 2 of the Notes to Consolidated Financial Statements for the schedule of the maturity of fixed maturity securities available for sale and for the schedule of principal payments for mortgage loans held for investment. See Note 7 of the Notes to Consolidated Financial Statements for a description of the Company’s sources of liquidity.
See Note 2 of the Notes to Consolidated Financial Statements for the schedule of the maturity of fixed maturity securities available for sale and for the schedule of principal payments for mortgage loans held for investment.
The following is a summary of our significant accounting estimates, and critical issues that impact them: Loan Commitments The Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed security (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment net of estimated commission expense.
Loan Commitments The Company estimates the fair value of a mortgage loan commitment based on the change in estimated fair value of the underlying mortgage loan, quoted mortgage-backed security (“MBS”) prices, estimates of the fair value of mortgage servicing rights, and an estimate of the probability that the mortgage loan will fund within the terms of the commitment net of estimated commission expense.
These assumptions are made based upon historical experience, industry standards and a best estimate of future results and, for traditional life products, include a provision for adverse deviation.
These assumptions are made based upon historical experience, industry standards and a best estimate of future results and, for traditional life products, include a provision for adverse deviation. For traditional life insurance, once established for a particular series of products, these assumptions are generally held constant.
The Company aims to mitigate these risks by offering a wide range of products and by diversifying its operations, thus reducing its exposure to any single product or jurisdiction, and also by employing underwriting practices that identify and minimize the adverse impact of such risks. 27 Mortgage Industry Risks .
Also, the Company may be subject to further regulations in the cemetery and mortuary business. The Company aims to mitigate these risks by offering a wide range of products and by diversifying its operations, thus reducing its exposure to any single product or jurisdiction, and by employing underwriting practices that identify and minimize the adverse impact of such risks.
The Company’s lapse rate for life insurance was 4.4% for 2023 as compared to a rate of 4.3% for 2022. The combined statutory capital and surplus of the Company’s life insurance subsidiaries was $107,385,000 and $94,254,000 as of December 31, 2023 and 2022, respectively.
The Company’s lapse rate for life insurance was 7.0% for 2024 as compared to a rate of 4.4% for 2023. The combined statutory capital and surplus of the Company’s life insurance subsidiaries was $120,216,000 and $107,385,000 as of December 31, 2024 and 2023, respectively.
The same issues that impact deferred acquisition costs apply to unearned revenue. Premium Deficiency and Loss Recognition Testing At least annually, the Company tests the adequacy of the net benefit reserves (liability for future policy benefits, net of DAC and VOBA) recorded for life insurance and annuity products.
The critical issues explained for deferred acquisition costs would also apply for value of business acquired. Premium Deficiency and Loss Recognition Testing At least annually, the Company tests the adequacy of the net benefit reserves (liability for future policy benefits, net of DAC and VOBA) recorded for life insurance and annuity products.
The decrease in cash provided by operations was due primarily to decreased proceeds from the sale of loans held for sale. The Company expects to pay out liabilities under its funeral plans over the long term given the nature of those plans.
The increase in cash provided by operations was due primarily to the increase in net earnings. The Company expects to pay out liabilities under its funeral plans over the long term given the nature of those plans.
If market conditions were to cause interest rates to change, the fair value of the Company’s fixed income portfolio (of approximately $657,153,000), which includes bonds, preferred stocks and mortgage loans held for investment, could change by the following amounts based on the respective basis point swing (the change in the fair values were calculated using a modeling technique): -200 bps -100 bps +100 bps +200 bps Change in Fair Value $ 44,352 $ 20,873 $ (19,034 ) $ (39,027 ) (in thousands) The Company’s life insurance subsidiaries are subject to risk-based capital guidelines established by statutory regulators requiring minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk.
See Note 7 of the Notes to Consolidated Financial Statements for a description of the Company’s sources of liquidity. 25 If market conditions were to cause interest rates to change, the fair value of the Company’s fixed income portfolio (of approximately $668,293,000), which includes bonds, preferred stocks and mortgage loans held for investment, could change by the following amounts based on the respective basis point swing (the change in the fair values were calculated using a modeling technique): -200 bps -100 bps +100 bps +200 bps Change in Fair Value $ 46,923 $ 21,650 $ (22,661 ) $ (45,101 ) (in thousands) The Company’s life insurance subsidiaries are subject to risk-based capital guidelines established by statutory regulators requiring minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk.
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 or sale; 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 the value of loans held for sale; those used in determining allowances for credit losses; those used in determining loan loss reserve; and those used in determining deferred tax assets and liabilities.
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 liability for future policy benefits; those used in determining the value of loans held for sale; and those used in determining loan loss reserve.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
The Company aims to minimize this risk through sound underwriting practices, asset and liability duration matching, and sound actuarial practices. Estimates . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Maturities range between six and eighteen months. Contractual Obligations In the ordinary course of the Company’s operations, the Company enters into certain contractual obligations. Such obligations include operating leases for office space, agreements with respect to borrowed funds and future policy benefits. See Notes 7, 22, 24 of the Notes to Consolidated Financial Statements for more information about these obligations.
Such obligations include operating leases for office space, agreements with respect to borrowed funds and future policy benefits. See Notes 7, 22, 24 of the Notes to Consolidated Financial Statements for more information about these obligations.
The Company’s investment philosophy is intended to provide a rate of return for the expected duration of its cemetery and mortuary policies that will exceed the accruing of liabilities under those policies regardless of future interest rate movements. 29 The Company’s investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing of mortgage loans held for sale.
The Company’s investment philosophy is intended to provide a rate of return for the expected duration of its cemetery and mortuary policies that will exceed the accruing of liabilities under those policies regardless of future interest rate movements.
This increase in gains on investments and other assets was primarily due to a $4,157,000 increase in gains on equity securities mostly attributable to increases in the fair value of these equity securities.
This increase in gains on investments and other assets was primarily due to a $614,000 increase in gains on real estate held for investment, a $234,000 increase in gains on other assets, a $210,000 increase in gains on equity securities mostly attributable to increases in the fair value of these equity securities, and a $208,000 increase in gains on fixed maturity securities.
Liquidity and Capital Resources The Company’s life insurance subsidiaries and cemetery and mortuary subsidiaries realize cash flow from premiums, contract payments and sales on personal services rendered for cemetery and mortuary business, from interest and dividends on invested assets, and from the proceeds from the sale or maturity of investments.
Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects. 24 Liquidity and Capital Resources The Company’s life insurance subsidiaries and cemetery and mortuary subsidiaries realize cash flow from premiums, contract payments and sales on personal services rendered for cemetery and mortuary business, from interest and dividends on invested assets, and from the proceeds from the sale or maturity of investments.
This decrease was primarily due to a decrease of $56,158,000 in bank loans and other loans payable which was partially offset by a $20,108,000 increase in stockholders’ equity. Stockholders’ equity as a percent of total capitalization was 74.8% and 64.4% as of December 31, 2023 and 2022, respectively. Lapse rates measure the amount of insurance terminated during a particular period.
This increase was primarily due to a $26,122,000 increase in stockholders’ equity and an increase of $1,185,000 in bank loans and other loans payable. Stockholders’ equity as a percentage of total capitalization was 76.1% and 74.8% as of December 31, 2024 and 2023, respectively. Lapse rates measure the amount of insurance terminated during a particular period.
This increase was partially offset by a $878,000 decrease in cemetery at-need sales and a $447,000 decrease in mortuary at-need sales. Gains on investments and other assets increased by $2,695,000, or 314.3%, to $1,837,000 in gains for 2023, from $858,000 in losses for 2022.
This increase was partially offset by a $228,000 decrease in cemetery at-need sales. 22 Gains on investments and other assets increased by $105,000, or 5.7%, to $1,942,000 for 2024, from $1,837,000 for 2023.
This represented 38.7% and 36.4% of the total investments of the Company as of December 31, 2023, and 2022, respectively. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners. Under this rating system, there are six categories used for rating bonds.
Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners. Under this rating system, there are six categories used for rating bonds.
Developments in the mortgage industry and credit markets can adversely affect the Company’s ability to sell its mortgage loans to investors, which can impact the Company’s financial results by requiring it to assume the risk of holding and servicing any unsold loans.
Developments in the mortgage industry and credit markets can adversely affect the Company’s ability to sell its mortgage loans to investors, which can impact the Company’s financial results by requiring it to assume the risk of holding and servicing any unsold loans. 23 The mortgage loan loss reserve is an estimate of probable losses at the balance sheet date that the Company could realize in the future on mortgage loans sold to third-party investors.
This decrease was primarily due to an $85,366,000 decrease in secondary gains from mortgage loans sold to third-party investors into the secondary market, and a $2,579,000 decrease in loan fees and interest income.
This increase was primarily due to a $5,202,000 increase in the fair value of loans held for sale and loan commitments, a $3,264,000 increase in loan fees and interest income, a $1,850,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market.
Critical Accounting Policies and Estimates The following is a summary of the Company’s significant accounting policies and a review of the Company’s most critical accounting estimates. See Note 1 of the Notes to Consolidated Financial Statements.
See Note 1 – Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements for further information.
This decrease in mortgage fee income was partially offset by a $11,541,000 increase in the fair value of loans held for sale and loan commitments and a $1,052,000 decrease in the provision for loan loss reserve. Insurance premiums and other considerations increased by $9,657,000, or 9.2%, to $114,658,000 for 2023, from $105,002,000 for 2022.
This increase in mortgage fee income was partially offset by a $905,000 increase in the provision for loan loss reserve. Insurance premiums and other considerations increased by $4,997,000, or 4.4%, to $119,656,000 for 2024, from $114,659,000 for 2023.
The Company advances funds in accordance with the loan agreements once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value. The Company receives fees and interest for these loans and the interest rate is generally fixed at 5.25% to 8.50% per annum.
As of December 31, 2024, the Company’s commitments were approximately $216,368,000 for these loans, of which $152,361,000 had been funded. The Company advances funds in accordance with the loan agreements once the work has been completed and an independent inspection is made. The maximum loan commitment ranges between 50% and 80% of appraised value.
This increase was partially offset by a $1,708,000 decrease in mortgage loan interest and a $116,000 decrease in policy loan income. 26 Net mortuary and cemetery sales increased by $871,000, or 3.2%, to $27,865,000 for 2023, from $26,994,000 for 2022. This increase was primarily due to a $2,196,000 increase in cemetery pre-need sales.
Net mortuary and cemetery sales increased by $1,172,000, or 4.2%, to $29,037,000 for 2024, from $27,865,000 for 2023. This increase was primarily due to a $1,140,000 increase in cemetery pre-need sales and a $260,000 increase in mortuary at-need sales.
Years ended December 31 (in thousands of dollars) 2023 2022 2023 vs 2022 % Increase (Decrease) Revenues from external customers: Cemetery revenues $ 15,189 $ 13,871 10 % Mortuary revenues 12,676 13,123 (3 %) Net investment income 2,952 2,445 21 % Gains (losses) on investments and other assets 717 (796 ) 190 % Other 404 305 32 % Total $ 31,938 $ 28,948 10 % Earnings before income taxes $ 8,445 $ 6,094 39 % Profitability in 2023 increased due to (a) a $2,196,000 increase in cemetery pre-need sales, (b) a $1,513,000 increase in gains on investments and other assets (primarily attributable to an increase in the fair value of equity securities classified as restricted assets and cemetery perpetual care trust investments), (c) a $507,000 increase in net investment income, (d) a $99,000 increase in other revenues, (e) a $59,000 decrease in amortization of deferred policy acquisition costs, and (f) a $44,000 decrease in intersegment interest expense and other expenses, which were partially offset by (i) a $878,000 decrease in cemetery at-need sales, (ii) a $546,000 increase in selling, general and administrative expenses, (iii) a $447,000 decrease in mortuary at-need sales, (iv) a $111,000 decrease in intersegment revenues, and (v) a $85,000 increase in costs of goods sold.
Years ended December 31 (in thousands of dollars) 2024 2023 2024 vs 2023 % Increase (Decrease) Revenues from external customers: Cemetery revenues $ 16,101 $ 15,189 6 % Mortuary revenues 12,936 12,676 2 % Net investment income 2,569 2,952 (13 %) Gains on investments and other assets 873 717 22 % Other revenues 543 404 34 % Intersegment revenues 341 340 0 % Total segment revenues $ 33,363 $ 32,278 3 % Segment net earnings $ 6,634 $ 6,313 5 % 19 Profitability in 2024 increased due to (a) a $1,140,000 increase in cemetery pre-need sales, (b) a $260,000 increase in mortuary at-need sales, (c) a $156,000 increase in gains on investments and other assets, (d) a $139,000 increase in other revenues, and (e) a $26,000 decrease in intersegment interest expense and other expenses, which were partially offset by (i) a $458,000 increase in selling, general and administrative expenses, (ii) a $383,000 decrease in net investment income, (iii) a $239,000 increase in amortization of deferred policy acquisition costs, (iv) a $228,000 decrease in cemetery at-need sales, and (v) a $96,000 increase in income tax expense.
Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will be funded within the terms of the commitments. 23 Deferred Acquisition Costs Amortization of deferred policy acquisition costs (“DAC”) for interest sensitive products is dependent upon estimates of current and future gross profits or margins on this business.
Deferred Acquisition Costs and Value of Business Acquired Amortization of deferred policy acquisition costs (“DAC”) for interest sensitive products is dependent upon estimates of current and future gross profits or margins on this business.
Interest expense decreased by $2,965,000, or 37.9%, to $4,865,000 for 2023, from $7,830,000 for 2022. This decrease was primarily due to a decrease of $3,077,000 in interest expense on mortgage warehouse lines of credit for loans held for sale, which was partially offset by a $112,000 increase in interest expense on bank loans.
This decrease was primarily due to a decrease of $354,000 in interest expense on bank loans and a decrease of $257,000 in interest expense on mortgage warehouse lines of credit for loans held for sale. Income tax expense increased by $5,763,000, or 319.2%, to $7,568,000 for 2024, from $1,805,000 for 2023.
The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the Company’s life insurance subsidiaries. Bonds owned by the insurance subsidiaries amounted to $362,663,000 (at estimated fair value) and $345,598,000 (at estimated fair value) as of December 31, 2023 and 2022, respectively.
The Company’s investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing of mortgage loans held for sale. The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the Company’s life insurance subsidiaries.
Years ended December 31 (in thousands of dollars) 2023 2022 2023 vs 2022 % Increase (Decrease) Revenues from external customers: Insurance premiums $ 114,658 $ 105,002 9 % Net investment income 67,812 62,565 8 % Mortgage fee income 77 143 (46 %) Gains (losses) on investments and other assets 963 (459 ) 310 % Other 1,666 1,932 (14 %) Total $ 185,176 $ 169,183 9 % Intersegment revenue $ 8,203 $ 6,601 24 % Earnings before income taxes $ 25,272 $ 14,196 78 % Profitability for 2023 increased due to (a) a $9,656,000 increase in insurance premiums and other considerations, (b) a $5,247,000 increase in net investment income, (c) a $1,602,000 increase in intersegment revenue, (d) a $1,422,000 increase in gains on investments and other assets primarily due to an increase in the fair value of equity securities, and (e) a $987,000 decrease in selling, general and administrative expenses, which were partially offset by (i) a $5,150,000 increase in future policy benefits, (ii) a $1,936,000 increase in death, surrenders and other policy benefits, (iii) a $266,000 decrease in other revenues, (iv) a $176,000 increase in intersegment interest expense and other expenses, (v) a $133,000 increase in amortization of deferred policy acquisition costs primarily due to an increase in the average outstanding balance of deferred policy and pre-need acquisition costs, (vi) a $111,000 increase in interest expense, and (vii) a $66,000 decrease in mortgage fee income. 19 Cemetery and Mortuary Operations The following table shows the condensed financial results for the Company’s cemetery and mortuary operations for 2023 and 2022.
Years ended December 31 (in thousands of dollars) 2024 2023 2024 vs 2023 % Increase (Decrease) Revenues from external customers: Insurance premiums $ 119,656 $ 114,658 4 % Net investment income 68,255 67,812 1 % Mortgage fee income 0 77 (100 %) Gains on investments and other assets 2,055 963 113 % Other revenues 1,564 1,666 (6 %) Intersegment revenues 7,272 8,203 (11 %) Total segment revenues $ 198,802 $ 193,379 3 % Segment net earnings $ 24,851 $ 21,617 15 % Profitability for 2024 increased due to (a) a $4,998,000 increase in insurance premiums and other considerations, (b) a $3,301,000 decrease in death, surrenders and other policy benefits, (c) a $2,323,000 decrease in amortization of deferred policy acquisition costs, (d) a $1,092,000 increase in gains on investments and other assets, (e) a $443,000 increase in net investment income, and (f) a $354,000 decrease in interest expense, which were partially offset by (i) a $2,949,000 increase in income tax expense, (ii) a $2,929,000 increase in selling, general and administrative expenses, (iii) a $2,245,000 increase in future policy benefits, (iv) a $931,000 decrease in intersegment revenue, (v) a $102,000 decrease in other revenues, (vi) a $77,000 decrease in mortgage fee income, and (vii) a $42,000 increase in intersegment interest expense and other expenses.
This increase was partially offset by a $76,000 decrease in surrender and other policy benefits. Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $74,000, or 0.4%, to $18,024,000 for 2023, from $17,950,000 for 2022.
Amortization of deferred policy and pre-need acquisition costs and value of business acquired decreased by $2,084,000, or 11.6%, to $15,940,000 for 2024, from $18,024,000 for 2023. This decrease was primarily due to increased payment consistency from premium-paying products along with a decrease in new business.
For 2023 and 2022, SecurityNational Mortgage originated 7,185 loans ($2,173,081,000 total volume) and 10,663 loans ($3,373,554,000 total volume), respectively. 20 The following table shows the condensed financial results for the Company’s mortgage operations for 2023 and 2022. See Note 15 of the Notes to Consolidated Financial Statements.
Cemetery and Mortuary Operations The following table shows the condensed financial results for the Company’s cemetery and mortuary operations for 2024 and 2023. See Note 15 of the Notes to Consolidated Financial Statements.
Mortgage Allowance for Credit Losses and Loan Loss Reserve The Company provides for losses on its mortgage loans held for investment through an allowance for credit losses (a contra-asset account) and through the mortgage loan loss reserve (a liability account).
The present values are calculated using the best estimate of the after-tax net investment earned rate. 21 Loan Loss Reserve The Company provides for losses on its mortgage loans held for sale through the mortgage loan loss reserve (a liability account).
This decrease in total revenues was offset by a $9,657,000 increase in insurance premiums and other considerations, a $6,145,000 increase in net investment income, a $2,695,000 increase in gains on investments and other assets, and an $871,000 increase in net cemetery and mortuary sales. Mortgage fee income decreased by $75,352,000, or 43.4%, to $98,148,000 for 2023, from $173,500,000 for 2022.
Contributing to this increase in total revenues was primarily a $9,411,000 increase in mortgage fee income, a $4,997,000 increase in insurance premiums and other considerations, a $1,172,000 increase in net cemetery and mortuary sales, a $958,000 increase in other revenues, and a $105,000 increase in gains on investments and other assets.
Income tax expense decreased by $6,881,000, or 79.2%, to $1,805,000 for 2023, from $8,687,000 for 2022. This decrease was primarily due to a decrease in earnings before income taxes for 2023 compared to 2022.
This increase was primarily due to an increase in earnings before income taxes for 2024 compared to 2023. The Company’s overall effective tax rate increased from 11.1% for 2023 to 22.2% in 2024, a 11.1% increase in the effective tax rate or a 100.6% change.
The estimated liability for indemnification losses is included in other liabilities and accrued expenses. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities require various estimates and judgments and may be affected favorably or unfavorably by various internal and external factors.
The estimated liability for indemnification losses is included in other liabilities and accrued expenses.
This increase was primarily attributable to a $4,476,000 increase in fixed maturity securities income, a $2,583,000 increase in interest on cash and cash equivalents, a $477,000 decrease in investment expenses, a $223,000 increase in rental income from real estate held for investment, a $106,000 increase in equity securities income, a $99,000 increase in income in other investments, and a $5,000 increase in insurance assignment income.
This decrease was partially offset by a $2,427,000 increase in interest on cash and cash equivalents, a $1,853,000 increase in insurance assignment income, a $941,000 decrease in investment expenses, a $461,000 increase in fixed maturity securities income, a $189,000 increase in income in other investments, a $137,000 increase in policy loan income, and an $82,000 increase in equity securities income.
This increase was primarily due to an increase in the average outstanding balance of deferred policy and pre-need acquisition costs. Selling, general and administrative expenses decreased by an aggregate of $57,358,000, or 24.7%, to $174,490,000 for 2023, from $231,848,000 for 2022.
Selling, general and administrative expenses increased by an aggregate of $1,975,000, or 1.1%, to $176,465,000 for 2024, from $174,490,000 for 2023. This increase was primarily the result of a $7,043,000 increase in commissions, a $1,943,000 increase in personnel expenses, and a $32,000 increase in depreciation on property and equipment.
Death benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $7,086,000, or 7.6%, to $100,012,000 for 2023, from $92,926,000 for 2022. This increase was primarily the result of a $5,150,000 increase in future policy benefits and a $2,012,000 increase in death benefits.
This decrease was primarily the result of a $3,274,000 decrease in death benefits and a $27,000 decrease in surrender and other policy benefits. This decrease was partially offset by a $2,245,000 increase in future policy benefits.
This increase was partially offset by a $527,000 decrease in gains on fixed maturity securities, a $485,000 decrease in gains on other assets, and a $450,000 decrease in gains on real estate held for investment. Other revenues decreased by $15,171,000, or 80.6%, to $3,646,000 for 2023 from $18,817,000 for 2022.
This increase was partially offset by a $1,161,000 decrease in gains on mortgage loans held for investment. Other revenues increased by $958,000, or 26.3%, to $4,604,000 for 2024 from $3,646,000 for 2023. This increase was primarily attributable to a $1,350,000 legal settlement, which was partially offset by a decrease of $392,000 in other miscellaneous revenues.
Mortgage rates have followed the US Treasury yields up in response to the higher-than-expected inflation and the expectation that the Federal Reserve will continue to raise rates in the near term. As expected, the rapid increase in mortgage rates has resulted in a decrease in loan originations classified as ‘refinance’.
US Treasury rates continue to remain elevated despite the downward trend in inflation data and the Federal Reserve’s action to reduce rates. This has resulted in higher-than-expected mortgage rates, which in turn has further decreased the demand for loan originations classified as refinance.
The Company’s overall effective tax rate decreased from 25.3% for 2022 to 11.1% in 2023, a 14.2% decrease in the effective tax rate or a 56.1% change. Risks The following is a description of the material risks facing the Company and how it mitigates those risks: Legal and Regulatory Risks .
This increase was partially due to the prior period reducing the valuation allowance to zero and no valuation allowance adjustment in the current period. Risks The following is a description of the material risks facing the Company and how it mitigates those risks: Legal and Regulatory Risks .
Removed
The MSRs related to mortgage loans previously originated by the Company in aggregate unpaid principal amount of approximately $7.02 billion. As a result of the sale, the book value of the Company’s MSRs decreased $51,185,906.
Added
The higher-than-expected mortgage rates have also continued to have a negative effect on loan originations classified as purchases. For 2024 and 2023, SecurityNational Mortgage originated 7,269 loans ($2,295,830,000 total volume) and 7,185 loans ($2,173,081,000 total volume), respectively. The following table shows the condensed financial results for the Company’s mortgage operations for 2024 and 2023.
Removed
Higher mortgage rates have also had a negative effect on loan originations classified as ‘purchases’, although not as significant as those in the refinance classification.
Added
Critical Accounting Policies and Estimates The Company’s significant accounting policies are fundamental to understanding its results of operations and financial condition as they require that the Company use estimates and assumptions that may affect the value of its assets or liabilities and financial results.
Removed
Years ended December 31 (in thousands of dollars) 2023 2022 2023 vs 2022 % Increase (Decrease) Revenues from external customers: Secondary gains from investors $ 68,428 $ 153,728 (55 %) Income from loan originations 31,245 32,772 (5 %) Change in fair value of loans held for sale (478 ) (8,835 ) (95 %) Change in fair value of loan commitments (1,124 ) (4,309 ) (74 %) Net investment income 1,580 1,188 33 % Gains on investments and other assets 157 398 (61 %) Other 1,576 16,580 (90 %) Total $ 101,384 $ 191,522 (47 %) Earnings (loss) before income taxes $ (17,416 ) $ 14,088 (224 %) Included in other revenues is service fee income.
Added
Five of these policies, discussed below, relate to critical estimates because they require management to make difficult, subjective and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Actual results could differ from those estimates.
Removed
Insurance Operations In accordance with generally accepted accounting principles in the United States of America (“GAAP”), premiums and other considerations received for interest sensitive products are reflected as increases in liabilities for policyholder account balances and not as revenues.
Added
The Company’s Management and the Audit Committee of the Board of Directors have reviewed and approved the accounting policies associated with these critical estimates.
Removed
Revenues reported for these products consist of policy charges for the cost of insurance, administration charges, amortization of policy initiation fees and surrender charges assessed against policyholder account balances. Surrender benefits paid relating to these products are reflected as decreases in liabilities for policyholder account balances and not as expenses.
Added
Fallout rates and other factors from the Company’s recent historical data are used to estimate the quantity and value of mortgage loans that will be funded within the terms of the commitments. Results of Consolidated Operations 2024 Compared to 2023 Total revenues increased by $16,025,000, or 5.0%, to $334,522,000 for 2024 from $318,497,000 for 2023.
Removed
The Company receives investment income earned from the funds deposited into account balances, a portion of which is passed through to the policyholders in the form of interest credited. Interest credited to policyholder account balances and benefit claims more than policyholder account balances are reported as expenses in the consolidated financial statements.
Added
This increase in total revenues was offset by a $618,000 decrease in net investment income. Mortgage fee income increased by $9,411,000, or 9.6%, to $107,559,000 for 2024, from $98,148,000 for 2023.
Removed
Premiums and other considerations received for traditional life insurance products are recognized as revenues when due. Future policy benefits are recognized as expenses over the life of the policy by means of the provision for future policy benefits.
Added
Net investment income decreased by $618,000, or 0.9%, to $71,725,000 for 2024, from $72,343,000 for 2023. This decrease was primarily attributable to a $3,416,000 decrease in rental income from real estate held for investment and a $3,290,000 decrease in mortgage loan interest.
Removed
The costs related to acquiring new business, including certain costs of issuing policies and other variable selling expenses (principally commissions), defined as deferred policy acquisition costs, are capitalized, and amortized into expenses.
Added
Total benefits and expenses were $300,419,000, or 89.8% of total revenues for 2024, as compared to $302,197,000, or 94.9% of total revenues for 2023. Death benefits, surrenders and other policy benefits, and future policy benefits decreased by an aggregate of $1,056,000, or 1.1%, to $98,956,000 for 2024, from $100,012,000 for 2023.
Removed
Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits and are generally “locked in” at the date the policies are issued. For interest sensitive products, these costs are amortized generally in proportion to expected gross profits from surrender charges and investment, mortality, and expense margins.
Added
This increase was partially offset by a $4,432,000 decrease in other expenses, a $1,710,000 decrease in rent and rent related expenses, a $595,000 decrease in advertising expenses, and a $306,000 decrease in costs related to funding mortgage loans. Interest expense decreased by $611,000, or 12.6%, to $4,254,000 for 2024, from $4,865,000 for 2023.
Removed
This amortization is adjusted when the Company revises the estimate of current or future gross profits or margins.

… 56 more changes not shown on this page.

Other SNFCA 10-K year-over-year comparisons