What changed in SECURITY NATIONAL FINANCIAL CORP's 10-K — 2024 vs 2025
vs
Paragraph-level year-over-year comparison of SECURITY NATIONAL FINANCIAL CORP's 2024 and 2025 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 2025 report.
+123 added−136 removedSource: 10-K (2026-03-16) vs 10-K (2025-03-31)
Top changes in SECURITY NATIONAL FINANCIAL CORP's 2025 10-K
123 paragraphs added · 136 removed · 97 edited across 5 sections
- Item 7. Management's Discussion & Analysis+66 / −73 · 52 edited
- Item 2. Properties+26 / −27 · 15 edited
- Item 1. Business+21 / −22 · 20 edited
- Item 5. Market for Registrant's Common Equity+10 / −13 · 10 edited
- Item 4. Mine Safety Disclosures+0 / −1
Item 1. Business
Business — how the company describes what it does
20 edited+1 added−2 removed61 unchanged
Item 1. Business
Business — how the company describes what it does
20 edited+1 added−2 removed61 unchanged
2024 filing
2025 filing
Biggest changePre-need policies include the life and annuity products sold as the funding mechanism for funeral plans through funeral homes by Security National agents. The Company is required to send the Texas Department of Banking an annual report that summarizes the number of policies in force and the face amount or death benefit for each policy.
Biggest changeThe Texas Department of Banking also audits pre-need insurance policies that are issued in the state of Texas. Pre-need policies include the life and annuity products sold as the funding mechanism for funeral plans through funeral homes by Security National agents.
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.
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 Non-Medical Birthday 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.
(“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.
(“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. A funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000.
Most of the Company’s funeral plan premiums come from the states of Arkansas, California, Florida, Georgia, Louisiana, Mississippi, Texas, and Utah. The Company sells its life insurance products through direct agents, brokers, and independent licensed agents who may also sell insurance products of other companies.
Most of the Company’s funeral plan premiums come from the states of Arkansas, California, Florida, Georgia, Louisiana, Mississippi, Tennessee, Texas, and Utah. The Company sells its life insurance products through direct agents, brokers, and independent licensed agents who may also sell insurance products of other companies.
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.
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.
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 premiums paid by the Company are based on several 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.
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.
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, 2025, 677 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 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 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 85 retail offices in 25 states and is an approved mortgage lender in several other states.
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.
The following table summarizes the annuity business for the five years ended December 31, 2025: 2025 2024 2023 2022 2021 Annuities Policy/Certificate Count as of December 31 23,864 24,296 24,924 24,225 24,901 Deposits Collected (in thousands) $ 10,564 $ 11,740 $ 10,946 $ 9,972 $ 9,719 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 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 accident and health insurance business for the five years ended December 31, 2025: 2025 2024 2023 2022 2021 Accident and Health Policy/Certificate Count as of December 31 6,886 7,592 9,379 11,132 12,494 Premiums Collected (in thousands) $ 171 $ 188 $ 216 $ 543 $ 353 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, 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 following table summarizes the life insurance business for the five years ended December 31, 2025: 2025 2024 2023 2022 2021 Life Insurance Policy/Certificate Count as of December 31 629,476 635,791 640,970 646,296 653,450 Insurance in force as of December 31 (in thousands) $ 3,933,254 $ 3,947,671 $ 3,552,554 $ 3,446,836 (1) $ 3,415,368 (1) Premiums Collected (in thousands) $ 118,519 $ 118,151 $ 113,584 $ 103,304 $ 99,006 (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 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 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, 2025, the Company employed 1,035 full-time and 208 part-time employees.
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.
Of the full-time employees, 652 were employed by the mortgage segment, 386 by the life insurance segment, and 205 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 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.
The total policy amount of life insurance reinsured by other companies as of December 31, 2025 and 2024, was $316,251,000 and $325,189,000, which represented approximately 8.0% and 8.2% of the Company’s total life insurance policy amount in force on that date, respectively.
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.
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. Security National Life, First Guaranty, Kilpatrick, Southern Security, and Trans-Western are currently under examination by the insurance departments for the years 2021-2024.
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.
Similarly, the mortuaries and cemeteries are governed and licensed by state statutes and city ordinances in Utah, California, and New Mexico. 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.
(2019), Rivera Funerals, Cremations and Memorial Gardens (2021), and Holbrook Mortuary (2021). In 1993, the Company formed SecurityNational Mortgage Company (“SecurityNational Mortgage”) to originate and refinance residential mortgage loans. See Note 15 of the Notes to Consolidated Financial Statements for additional information regarding the business segments of the Company.
(2019), Rivera Funerals, Cremations and Memorial Gardens (2021), and Holbrook Mortuary (2021). In 1993, the Company formed SecurityNational Mortgage Company (“SecurityNational Mortgage”) to originate and refinance residential mortgage loans.
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.
The Company’s life insurance business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, limited-payment life, accident, and limited health insurance products. 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.
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.
See Note 20 of the Notes to Consolidated Financial Statements for additional information regarding the business segments of the Company. 3 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.
This annual report is also required to indicate the number of new policies issued for that year, all death claims paid that year, and all premiums received. The Company’s cemetery and mortuary subsidiaries are subject to the Federal Trade Commission’s comprehensive funeral industry rules and to state regulations in the various states where such operations are domiciled.
The Company’s cemetery and mortuary subsidiaries are subject to the Federal Trade Commission’s comprehensive funeral industry rules and to state regulations in the various states where such operations are domiciled. The morticians must be licensed by the respective state in which they provide their services.
Removed
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.
Added
The Company is required to send the Texas Department of Banking an annual report that summarizes the number of policies in force and the face amount or death benefit for each policy. This annual report is also required to indicate the number of new policies issued for that year, all death claims paid that year, and all premiums received.
Removed
The morticians must be licensed by the respective state in which they provide their services. Similarly, the mortuaries and cemeteries are governed and licensed by state statutes and city ordinances in Utah, California, and New Mexico.
Item 2. Properties
Properties — owned and leased real estate
15 edited+11 added−12 removed10 unchanged
Item 2. Properties
Properties — owned and leased real estate
15 edited+11 added−12 removed10 unchanged
2024 filing
2025 filing
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.
Biggest changeHurst TX Mortgage Sales Leased 1,640 $ 2,500 / mo month to month 1600 Lee Travino #A-1 El Paso TX Mortgage Sales Leased 1,535 $ 2,110 / mo month to month 10000 Central Expressway #428 Dallas TX Mortgage Sales Leased 200 $ 1,450 / mo 12/31/2026 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 $ 10,719 / 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 $ 1,043 / mo 3/1/2026 1526 Katy Gap Rd #802 Katy TX Mortgage Sales Leased 1,237 $ 3,500 / mo month to month 14090 SW Freeway STE 300 #374 Sugarland TX Mortgage Sales Leased 140 $ 1,246 / mo month to month 800 Town & Country Blvd STE 500 #369 Houston TX Mortgage Sales Leased 100 $ 1,239 / mo month to month 800 Town & Country Blvd STE 500 #370 Houston TX Mortgage Sales Leased 100 $ 1,239 / mo month to month 25329 Budde Rd #1001 Spring TX Mortgage Sales Leased 1,200 $ 1,800 / mo month to month 402 E.
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.
Memphis TN Mortgage Sales Leased 169 $ 300 / mo month to month 1213 East Alton Gloor Blvd. #H Brownsville TX Mortgage Sales Leased 2,000 $ 2,400 / mo 2/28/2026 722 Kiowa Dr.
Forest Falls CA Mortgage Sales Leased 250 $ - / mo month to month 2934 E. Garvey Ave. South, Suite 250 West Covina CA Mortgage Sales Leased 500 $ 1,100 / mo month to month 7398 Fox Trail Unit B Yucca Valley CA Mortgage Sales Leased 900 $ 550 / mo month to month 155 S.
South, #250 West Covina CA Mortgage Sales Leased 500 $ 1,100 / mo month to month 7398 Fox Trail #B Yucca Valley CA Mortgage Sales Leased 900 $ 550 / mo month to month 155 S.
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.
Afton WY Mortgage Sales Leased 183 $ 650 / mo 2/28/2026 The Company believes the office facilities it occupies are in good operating condition and adequate for current operations. The Company may enter into additional leases, modify existing leases or extend current leases based on its assessments of current market demand for its services.
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.
Rose Pkwy #D100 Henderson NV Mortgage Sales Leased 5,788 $ 13,775 / mo 11/30/2030 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 $ 7,888 / mo 9/30/2027 650 S.
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.
Highway 101 #7 Solana Beach CA Mortgage Sales Leased 2,000 $ 7,879 / mo 8/22/2026 2455 Bennett Valley Rd. #C107 Santa Rosa CA Mortgage Sales Leased 849 $ 1,750 / mo 7/31/2026 27 Main St., #C104B Edwards CO Mortgage Sales Leased 680 $ 1,950 / mo month to month 5982 S.
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.
Parleys Way #150 Salt Lake City UT Mortgage Sales Leased 5,256 $ 2,917 / mo 7/31/2030 998 N. 1200 W. #104 Orem UT Mortgage Sales Leased 2,162 $ 5,992 / mo month to month 162 N. 400 E #C205 St. George UT Mortgage Sales Leased 1,177 $ 2,439 / mo 4/30/2026 500 E.
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.
Higgins Ave. Missoula MT Mortgage Sales Leased 800 $ 2,266 / mo 6/28/2026 1980 Festival Plaza Dr. #850 Las Vegas NV Mortgage Sales Leased 12,866 $ 49,277 / mo 3/31/2027 840 Pinnacle Ct. #3B Mesquite NV Mortgage Sales Leased 900 $ 720 / mo month to month 2635 St.
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.
Main #E Ephraim UT Mortgage Sales Leased 1,884 $ 2,200 / mo 5/31/2027 1350 E. 300 S. 3rd Floor Lehi UT Mortgage Sales Leased 15,446 $ 40,726 / mo 12/22/2026 2455 E.
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.
Village Blvd. #108 Stansbury Park UT Mortgage Sales Leased 200 $ 600 / mo month to month 15650 NE Fourth Blvd. #101 Vancouver WA Mortgage Sales Leased 200 $ 495 / mo month to month 402 E.
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.
Ascension Way 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 Street Shreveport LA Insurance Operations Owned 12,274 N/A N/A 1080 River Oaks Drive Suite #B204 Flowood MS Insurance Sales Leased 2,685 $ 3,994 / mo 8/31/2028 9440 Viscount Blvd.
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.
Union Ave. #930 Denver CO Mortgage Sales Leased 2,062 $ - / mo 3/31/2027 447 Naubuc Ave. #110 Glastonbury CT Mortgage Sales Leased 1,420 2485 / mo 3/31/2027 84 Broad Street 2nd Floor, #6 Milford CT Mortgage Sales Leased 200 $ 650 / mo month to month 8191 College Parkway, #201 Fort Myers FL Mortgage Sales Leased 4,676 $ 5,112 / mo 7/31/2026 2350 Fruitville Rd. #101 Sarasota FL Mortgage Sales Leased 2,455 $ 5,587 / mo 3/14/2026 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 $ 3,812 / mo 3/31/2027 5666 Seminole Blvd. #128 Seminole FL Mortgage Sales Leased 136 816.40 / mo 6/30/2026 2326 Del Prado Blvd. #18C Cape Coral FL Mortgage Sales Leased 200 400.00 / mo 4/30/2026 132 W.
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.
Edgewood DR STE A Friendswood TX Mortgage Sales Leased 2,500 $ 2,500 / mo month to month 23302 W. Fernhurst Dr. #300 Katy TX Mortgage Sales Leased 100 $ - / mo month to month 126 W. Sego Lily Dr. #130 Sandy UT Mortgage Sales Leased 2,794 $ 7,251 / mo 1/31/2027 497 S.
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.
Main Street #130-#140-#150 Vancouver WA Mortgage Sales Leased 1,200 $ 4,231 / mo 9/30/2026 1508 24th Ave. #23 Kenosha WI Mortgage Sales Leased 250 $ - / mo month to month 27903 99th Street Trevor WI Mortgage Sales Leased 300 $ - / mo month to month 2527 S. Business Dr.
Larkspur CO Mortgage Sales Leased 250 $ 50 / mo month to month 7800 E.
Zenos Ct Aurora CO Mortgage Sales Leased 50 $ - / mo month to month 5475 Tech Center Drive #215 Colorado Springs CO Mortgage Sales Leased 790 $ 1,218 / mo 12/31/2027 7800 E.
Removed
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.
Added
Suite 230 El Paso TX Insurance Sales Leased 2,270 $ 3,405 / mo 11/30/2028 79 E. Main Street Midway UT Funeral Service Sales Leased 4,476 $ 6,774 / mo 12/31/2030 200 Market Way Rainbow City AL Fast Funding Operations Leased 20,140 $ 10,490 / mo 1/31/2030 3612 W.
Removed
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.
Added
Southern Hills Blvd. #5 Rogers AR Mortgage Sales Leased 1,560 $ 2,600 / mo 8/31/2028 5100 N. 99th Ave., #101 Phoenix AZ Mortgage Sales Sub-Leased 3,940 $ 3,575 / mo month to month 1951 W. Camelback Rd. #200 Phoenix AZ Mortgage Sales Leased 2,446 $ 4,281 / mo 1/31/2026 1360 N.
Removed
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.
Added
Bullard Ave., #I-207 & J-208 Goodyear AZ Mortgage Sales Leased 280 $ 3,718 / mo 8/31/2026 1630 S. Stapley Dr. #206 Mesa AZ Mortgage Sales Leased 5,197 $ 9,095 / mo 4/30/2026 705 E. Coronado Rd. Phoenix AZ Mortgage Sales Leased 1,287 $ 4,950 / mo month to month 2301 S.
Removed
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.
Added
Stearman Dr. #3 Chandler AZ Mortgage Sales Leased 144 $ 1,200 / mo month to month 15150 W. Park Place #2041 Goodyear AZ Mortgage Sales Leased 300 $ 1,099 / mo 10/31/2026 40977 Oak Dr. Forest Falls CA Mortgage Sales Leased 250 $ - / mo month to month 2934 E. Garvey Ave.
Removed
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.
Added
International Speedway Blvd. #15 Daytona Beach FL Mortgage Sales Leased 60 500.00 / mo 3/31/2026 1800 Phoenix Blvd. #128-25 Atlanta GA Mortgage Sales Leased 235 $ 850 / mo month to month 3344 Peachtree Rd. NE #17 Atlanta GA Mortgage Sales Leased 150 $ 1,294 / mo month to month 3344 Peachtree Rd.
Removed
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.
Added
NE #18 Atlanta GA Mortgage Sales Leased 150 $ 1,294 / mo month to month 4370 Kukui Grove St. #201 Lihue HI Mortgage Sales Leased 864 $ 1,650 / mo 2/29/2028 677 Ala Moana Blvd. #609 Honolulu HI Mortgage Sales Leased 716 $ 2,399 / mo 1/31/2026 1955 Main Street #301 Wailuku HI Mortgage Sales Leased 500 1523.56 / mo month to month 1350 Lake Street #6 Roselle IL Mortgage Sales Leased 192 749.17 / mo 11/30/2026 1350 Lake Street #7 Roselle IL Mortgage Sales Leased 192 749.17 / mo 11/30/2026 450 E. 96th Street #5008 Indianapolis IN Mortgage Sales Leased 100 900 / mo 7/31/2026 450 E. 96th Street #5009 Indianapolis IN Mortgage Sales Leased 100 900 / mo 7/31/2026 81 Boulder Drive, Elizabethtown KY Mortgage Sales Leased 100 $ - / mo month to month 9300 SHELBYVILLE RD #1205 Louisville KY Mortgage Sales Leased 2,453 $ 4,000 / mo 4/30/2026 8684 Veterans Hwy. #101 Millersville MD Mortgage Sales Leased 4,018 $ 7,349 / mo 7/31/2026 960 S. 24th Street West Suite 1 Billings MT Mortgage Sales Leased 200 $ 1,613 / mo month to month 534 N.
Removed
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.
Added
Green Valley Pkway #130 Henderson NV Mortgage Sales Leased 215 $ 600 / mo month to month 100 S. Juniper 3rd Floor #A05 Philadelphia PA Mortgage Sales Leased 100 $ 141 / mo month to month 670 Meridian Way #146 Westerville OH Mortgage Sales Leased 100 $ 669 / mo month to month 1000 W.
Removed
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.
Added
Wilshire Blvd. #220 Oklahoma City OK Mortgage Sales Leased 200 $ 550 / mo month to month 3115 NE Sandy Blvd #227 Portland OR Mortgage Sales Leased 580 $ 1,195 / mo 9/30/2027 12 Item 2.
Removed
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.
Added
Properties (Continued) Street City State Function Owned / Leased Approximate Square Footage Lease Amount Expiration 3970 Post Rd. #2PH Warwick RI Mortgage Sales Leased 391 $ 875 / mo month to month 3292 Winbrook Dr.
Removed
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.
Added
West Lake Kiowa TX Mortgage Sales Leased 150 $ - / mo month to month 30417 Fifth Street #B Fulshear TX Mortgage Sales Leased 1,000 $ 1,351 / mo month to month 4908 North Midkiff Rd. Midland TX Mortgage Sales Leased 1,550 $ 3,000 / mo month to month 462 Mid Cities Blvd.
Removed
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.
Added
Sheboygan WI Mortgage Sales Leased 980 $ 1,230 / mo month to month 15430 Neuberry Ct. Brookfield WI Mortgage Sales Leased 100 $ - / mo month to month 80 East 1st Ave.
Removed
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.
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
0 edited+0 added−1 removed1 unchanged
Item 4. Mine Safety Disclosures
Mine Safety Disclosures — required of mining issuers
0 edited+0 added−1 removed1 unchanged
2024 filing
2025 filing
Removed
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
10 edited+0 added−3 removed3 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
10 edited+0 added−3 removed3 unchanged
2024 filing
2025 filing
Biggest changePeriod (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.
Biggest changePeriod (a) Total Number of Class A Shares Purchased (b) Average Price Paid per Class A Share (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 10/1/2025-10/31/2025 - $ - - 94,565 11/1/2025-11/30/2025 - - - 94,565 12/1/2025-12/31/2025 - - - 94,565 Total - $ - - 94,565 See Note 21 to Notes to the Consolidated Financial Statements for information about the Company’s equity compensation plans approved by security holders. 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, 2021 through December 31, 2025.
The Class C Common Stock is not registered or traded on a national exchange. See Note 12 of the Notes to Consolidated Financial Statements. The Company has never paid a cash dividend on its Class A or Class C Common Stock.
The Class C Common Stock is not registered or traded on a national exchange. See Note 18 of the Notes to Consolidated Financial Statements. The Company has never paid a cash dividend on its Class A or Class C Common Stock.
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 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, 2021 and that all dividends were reinvested.
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.
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 12, 2026, the closing stock price of the Class A Common Stock was $8.67 per share.
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.
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. 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 SNFC 100 83 108 151 119 S & P 500 100 81 100 123 144 S & P Insurance 100 108 116 145 148 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.
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.
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 may commence on March 16, 2026. The agreement is subject to the daily time, price, and volume conditions of Rule 10b-18. The agreement expires on December 31, 2026.
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.
As of March 12, 2026, there were 1,521 registered stockholders of record of the Company’s Class A Common Stock and 43 registered stockholders of record of the Company’s Class C Common Stock.
The 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.
The 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, 2024: Price Range (1) High Low Period (Calendar Year) 2024 First Quarter $ 8.20 $ 6.91 Second Quarter $ 7.62 $ 5.90 Third Quarter $ 8.76 $ 7.10 Fourth Quarter $ 12.78 $ 8.69 2025 First Quarter $ 12.82 $ 10.77 Second Quarter $ 10.81 $ 8.53 Third Quarter $ 9.91 $ 8.35 Fourth Quarter $ 9.44 $ 7.76 2026 First Quarter (through March 12, 2026) $ 9.36 $ 8.53 (1) Stock prices have been adjusted retroactively for the effect of annual stock dividends.
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 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 2025. 16 The Company did not have any share repurchases during the three-month period ended December 31, 2025.
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.
The Company did not have a 10b5-1 share repurchase plan in effect during the three-month period ended December 31, 2025. On February 16, 2026, the Company executed a 10b5-1 agreement with a broker to repurchase shares of the Company’s Class A Common Stock.
Removed
(2) In September 2018, the Board of Directors of the Company approved a Stock Repurchase Plan that authorized the repurchase of 300,000 shares of the Company’s Class A Common Stock in the open market. The Company amended the Stock Repurchase Plan on December 4, 2020.
Removed
The amendment authorized the repurchase of a total of 1,000,000 shares of the Company’s Class A Common Stock in the open market.
Removed
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.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
52 edited+14 added−21 removed32 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
52 edited+14 added−21 removed32 unchanged
2024 filing
2025 filing
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.
Biggest changeYears ended December 31 (in thousands of dollars) 2025 2024 2025 vs 2024 % Increase (Decrease) Revenues from external customers: Secondary gains from investors $ 75,817 $ 70,355 8 % Income from loan originations 32,609 33,604 (3 )% Change in fair value of loans held for sale 616 2,870 (79 )% Change in fair value of loan commitments (833 ) 730 (214 )% Net investment income 614 902 (32 )% Gains (losses) on investments and other assets 60 (986 ) 106 % Other revenues 1,118 2,497 (55 )% Intersegment revenues 354 573 (38 )% Total segment revenues $ 110,355 $ 110,545 0 % Segment net loss $ (3,871 ) $ (4,949 ) 22 % Losses in 2025 compared to 2024 decreased due to (a) a $5,462,000 increase in secondary gains from investors, (b) a $3,076,000 decrease in personnel expenses, (c) a $1,302,000 decrease in rent and rent related expenses, (d) a $1,046,000 increase in gains on investments and other assets, (e) a $248,000 decrease in intersegment expenses, and (f) a $13,000 decrease in depreciation on property and equipment, which were partially offset by (i) a $2,254,000 decrease in the fair value of loans held for sale, (ii) a $1,563,000 decrease in the fair value of loan commitments, (iii) a $1,379,000 decrease in other revenues, (iv) a $994,000 decrease in income from loan originations, (v) an $845,000 increase in commissions, (vi) an $833,000 increase in other expenses, (vii) a $488,000 increase in costs related to funding mortgage loans, (viii) a $390,000 increase in advertising expenses, (iv) a $374,000 increase in income tax expense, (x) a $287,000 decrease in net investment income, (xi) a $255,000 increase in interest expense, (xii) a $220,000 decrease in intersegment revenues, and (xiii) a $187,000 increase in data processing and IT related expenses.
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 the rating of bonds.
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.
Two 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.
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.
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 0.85% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer.
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.
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 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.
The estimated liability for indemnification losses is included in other liabilities and accrued expenses and, as of December 31, 2025 and 2024, the balances were $384,000 and $697,000, respectively. The Company believes the loan loss reserve represents probable loan losses incurred as of December 31, 2025.
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 15, 16, and 24 of the Notes to Consolidated Financial Statements for more information about these obligations.
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 Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities. During 2025 and 2024 the Company decreased its loan loss reserve by $312,000 and increased its loan loss reserve by $150,000, respectively, for loan originations, and the charges have been included in mortgage fee income.
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.
As of December 31, 2025, 1.6% (or $5,825,000) and as of December 31, 2024, 2.4% (or $8,431,000) of the insurance subsidiaries’ total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade.
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.
Actual results could differ from those estimates. 24 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 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.
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.
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 Company has not received or recognized any interest income on the $6,516,000 in mortgage loans with delinquencies exceeding 90 days. During 2025 and 2024, the Company increased its allowance for credit losses by $704,000 and decreased it by $1,934,000, respectively, which was charged to bad debt expense and included in selling, general and administrative expenses for the period.
See Note 15 of the Notes to Consolidated Financial Statements.
See Note 20 of the Notes to Consolidated Financial Statements.
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 allowances for credit losses on the Company’s mortgage loans held for investment portfolio as of December 31, 2025 and 2024 were $2,589,000 and $1,885,000, respectively. Interest Rate Risk .
See Note 10, “Reinsurance, Commitments and Contingencies,” for additional discussion of commitments associated with the insurance program. The Company has been a member of the Captive since 2006 and does not expect any material losses to result from the issuance of the standby letter of credit given the Company’s past performance.
See Note 24 of the Notes to Consolidated Financial Statements for additional discussion of commitments associated with the insurance program. The Company has been a member of the Captive since 2006 and does not expect any material losses to result from the issuance of the standby letter of credit given the Company’s past performance.
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.
There is a risk, however, that future loan losses may exceed the loan loss reserve. As of December 31, 2025, the Company’s mortgage loans held for investment portfolio consisted of mortgage loans in an aggregate principal amount of $6,516,000 with delinquencies exceeding 90 days. Of this amount, loans with an aggregate principal amount of $1,204,000 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 2024 and 2023, the Company’s operations provided cash of $57,320,000 and of $53,875,000, respectively.
The Company has also performed an analysis of its funding capacities from both internal and external sources and has determined that there are sufficient funds to continue its current business model. The Company continues to negotiate other warehouse lines of credit with other lenders. During 2025 and 2024, the Company’s operations provided cash of $45,540,000 and of $57,320,000, 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 Company’s lapse rate for life insurance was 7.2% for 2025 as compared to a rate of 7.0% for 2024. The combined statutory capital and surplus of the Company’s life insurance subsidiaries was $139,068,000 and $120,216,000 as of December 31, 2025 and 2024, respectively.
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.
As of December 31, 2025, the Company’s commitments were approximately $201,220,000 for these loans, of which $158,908,000 had been drawn. 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.
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 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. 25 See Note 15 of the Notes to Consolidated Financial Statements for a description of the Company’s sources of liquidity.
Bonds owned by the insurance subsidiaries amounted to $348,774,000 (at estimated fair value) and $362,663,000 (at estimated fair value) as of December 31, 2024 and 2023, respectively. This represented 38.0% and 38.7% of the total investments of the Company as of December 31, 2024, and 2023, respectively.
Bonds owned by the insurance subsidiaries amounted to $365,986,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of December 31, 2025, and 2024, respectively. This represented 35.2% and 38.0% of the total investments of the Company as of December 31, 2025, and 2024, respectively.
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.
This increase was primarily due to an increase in earnings before income taxes for 2025 compared to 2024. The Company’s overall effective tax rate increased from 22.1% for 2024 to 22.4% in 2025, a 0.3% increase in the effective tax rate or a 1.4% change.
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.
If market conditions were to cause interest rates to change, the fair value of the Company’s fixed income portfolio (of approximately $705,213,000), 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 $ 50,112 $ 22,837 $ (23,334 ) $ (47,001 ) (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.
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.
The decrease in cash provided by operations was due primarily to a decrease in proceeds from 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.
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.
This increase in gains on investments and other assets was primarily due to a $1,167,000 increase in gains on mortgage loans held for investment, an $864,000 increase in gains on real estate held for investment and sale, and an $856,000 increase in gains on equity securities mostly attributable to increases in the fair value of these equity securities.
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.
Insurance Operations The following table shows the condensed financial results for the Company’s insurance operations for 2025, and 2024. See Note 20 of the Notes to Consolidated Financial Statements. See Note 1 of the Notes to Consolidated Financial Statements regarding the adoption of ASU 2018-12.
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.
As of December 31, 2025 and 2024, 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 were $508,757,000 and $488,639,000 as of December 31, 2025 and 2024, respectively.
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.
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 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 .
This increase was partially due to an increase in non-deductible items. 23 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 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 primarily due to a $28,470,000 increase in stockholders’ equity, which was partially offset by a decrease of $8,352,000 in bank loans and other loans payable. Stockholders’ equity as a percentage of total capitalization was 80.7% and 78.2% as of December 31, 2025 and 2024, respectively. Lapse rates measure the amount of insurance terminated during a particular period.
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 decrease was partially offset by a $526,000 increase in mortuary at-need sales and a $29,000 increase in cemetery at-need sales. Gains on investments and other assets increased by $2,695,000, or 138.8%, to $4,636,000 for 2025, from $1,942,000 for 2024.
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.
Years ended December 31 (in thousands of dollars) 2025 2024 2025 vs 2024 % Increase (Decrease) Revenues from external customers: Cemetery revenues $ 15,243 $ 16,101 (5 )% Mortuary revenues 13,462 12,936 4 % Net investment income 2,345 2,569 (9 )% Gains on investments and other assets 1,347 873 54 % Other revenues 920 543 69 % Intersegment revenues 340 341 0 % Total segment revenues $ 33,657 $ 33,363 1 % Segment net earnings $ 6,584 $ 6,634 (1 )% Profitability in 2025 decreased due to (a) a $888,000 decrease in cemetery pre-need sales, (b) a $570,000 increase in selling, general and administrative expenses, (c) a $223,000 decrease in net investment income, (d) an $8,000 increase in income tax expense, and (e) a $2,000 increase in interest expense, which were partially offset by (i) a $526,000 increase in mortuary at-need sales, (ii) a $474,000 increase in gains on investments and other assets, (iii) a $377,000 increase in other revenues, (iv) a $143,000 decrease in costs of goods and services sold, (v) a $63,000 decrease in amortization of deferred policy acquisition costs, (vi) a $29,000 increase in cemetery at-need sales, and (vii) a $29,000 decrease in intersegment expenses.
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.
This increase was primarily due to an increase of $256,000 in interest expense on mortgage warehouse lines of credit for loans held for sale and an increase of $9,000 in interest expense on bank loans. Income tax expense increased by $1,002,000, or 12.1%, to $9,257,000 for 2025, from $8,255,000 for 2024.
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.
Mortgage Industry Risks . 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.
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.
Insurance premiums and other considerations increased by $101,000, or 0.1%, to $119,757,000 for 2025, from $119,656,000 for 2024. This increase was primarily due to an increase of $2,564,000 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.
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.
Contributing to this increase in total revenues was primarily a $7,613,000 increase in net investment income, a $2,695,000 increase in gains on investments and other assets, a $651,000 increase in mortgage fee income, and a $101,000 increase in insurance premiums and other considerations.
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.
This increase was primarily due to a $5,462,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market.
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.
This increase was partially offset by a $1,386,000 decrease in rent and rent related expenses. Interest expense increased by $265,000, or 6.2%, to $4,519,000 for 2025, from $4,254,000 for 2024.
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.
Years ended December 31 (in thousands of dollars) 2025 2024 2025 vs 2024 % Increase (Decrease) Revenues from external customers: Insurance premiums $ 119,757 $ 119,656 0 % Net investment income 76,379 68,255 12 % Gains on investments and other assets 3,229 2,055 57 % Other revenues 1,904 1,564 22 % Intersegment revenues 6,996 7,272 (4 )% Total segment revenues $ 208,265 $ 198,802 5 % Segment net earnings $ 29,439 $ 27,435 7 % Profitability for 2025 increased due to (a) a $8,124,000 increase in net investment income, (b) a $1,174,000 increase in gains on investments and other assets, (c) a $340,000 increase in other revenues, (d) a $219,000 decrease in intersegment expenses, and (e) a $101,000 increase in insurance premiums and other considerations, which were partially offset by (i) a $6,134,000 increase in selling, general and administrative expenses, (ii) a $711,000 increase in amortization of deferred policy acquisition costs, (iii) a $621,000 increase in income tax expense, (iv) a $276,000 decrease in intersegment revenue, (v) a $205,000 increase in policyholder benefits and claims, and (vi) a $7,000 increase in interest expense. 19 Cemetery and Mortuary Operations The following table shows the condensed financial results for the Company’s cemetery and mortuary operations for 2025, and 2024.
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.
This increase in total revenues was offset by a $662,000 decrease in other revenues and a $333,000 decrease in net cemetery and mortuary sales. Mortgage fee income increased by $651,000, or 0.6%, to $108,209,000 for 2025, from $107,558,000 for 2024.
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.
Policyholder benefits and claims increased by an aggregate of $205,000, or 0.2%, to $100,818,000 for 2025, from $100,613,000 for 2024. This increase was primarily the result of a $2,306,000 increase in death benefits and a $485,000 increase in surrender and other policy benefits. This increase was partially offset by a $2,586,000 decrease in future policy benefits.
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.
This increase was partially offset by a $2,773,000 increase in investment expenses and a $2,635,000 decrease in interest on cash and cash equivalents. Net mortuary and cemetery sales decreased by $333,000, or 1.1%, to $28,704,000 for 2025, from $29,037,000 for 2024. This decrease was primarily due to an $888,000 decrease in cemetery pre-need sales.
The main reasons for the decrease in 2024 when compared to 2023 were due to a decrease in the commercial loan held for investment portfolio, further refinement of the Company’s quantitative loss analysis and general market improvements related to the residential mortgage loan held for investment single family portfolio.
The main reasons for the increase in 2025 when compared to 2024 were due to an increase in the commercial loan held for investment portfolio and in the residential construction loan held for investment portfolio.
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.
For 2025, and 2024, SecurityNational Mortgage originated 6,844 loans ($2,296,055,000 total volume) and 7,269 loans ($2,295,830,000 total volume), respectively. 20 The following table shows the condensed financial results for the Company’s mortgage operations for 2025, and 2024. See Note 20 of the Notes to Consolidated Financial Statements.
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.
In the unlikely event the Company is required to repay the outstanding advances of approximately $4,173,449 on the warehouse lines of credit, the Company has sufficient cash to do so.
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.
As of December 31, 2025, SecurityNational Mortgage was not in compliance with the net income covenant of the US Bank, Western Alliance Bank and JP Morgan Chase Bank warehouse lines of credit. SecurityNational Mortgage has since received waivers from each of these lenders with respect to this covenant.
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.
Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $648,000, or 5.9%, to $11,661,000 for 2025, from $11,013,000 for 2024. This increase is due to a $689,000 increase in the amortization of deferred policy and pre-need acquisition costs due to an increase in the average outstanding balance.
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.
This decrease was primarily attributable to a $1,350,000 legal settlement that was received in 2024, which was partially offset by an increase in other miscellaneous revenues in 2025. Total benefits and expenses were $303,178,000, or 88.0% of total revenues for 2025, as compared to $297,149,000, or 88.8% of total revenues for 2024.
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 attributable to a $9,875,000 increase in mortgage loan interest, a $1,603,000 increase in fixed maturity securities income, a $928,000 increase in insurance assignment income, $258,000 increase in rental income from real estate held for investment, a $189,000 increase in income in other investments, a $156,000 increase in equity securities income, and a $12,000 increase in policy loan income.
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.
This increase in mortgage fee income was partially offset by a $3,817,000 decrease in the fair value of loans held for sale and loan commitments and a $994,000 decrease in loan fees and interest income net of the provision for loan loss reserve.
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.
For policyholder account balance insurance products, DAC is amortized using the policy counts for annuities and units in-force for interest sensitive life products. Deferred acquisition costs are written off when policies terminate. Value of business acquired (“VOBA”) is the present value of estimated future profits of the acquired business and is amortized the same way as DAC.
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.
This increase was partially offset by a $41,000 decrease in the amortization of value of business acquired due to no new deferrals and a decreasing average outstanding balance. Selling, general and administrative expenses increased by an aggregate of $5,055,000, or 2.9%, to $181,520,000 for 2025, from $176,465,000 for 2024.
Removed
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.
Added
Mortgage rates have followed the US Treasury yields in response to inflation and slowing new home sales.
Removed
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.
Added
As expected, the lack of mortgage rate reductions has resulted in a decrease in loan originations classified as ‘refinance.’ Higher than anticipated mortgage rates have also had a negative effect on loan originations classified as ‘purchases’ although not as significant as those in the refinance classification.
Removed
Future Policy Benefits Reserves for future policy benefits for traditional life insurance products requires the use of many assumptions, including the duration of the policies, mortality experience, expenses, investment yield, lapse rates, surrender rates, and dividend crediting rates.
Added
Future Policy Benefits A liability for future policy benefits is accrued as premium revenue is recognized, which is the present value of expected future policy benefits to be paid to or on behalf of policyholders less the present value of expected future net premiums to be collected from policyholders.
Removed
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.
Added
This liability is calculated using a discount rate assumption that is an upper-medium grade fixed-income instrument yield as provided by Bloomberg’s Evaluated Pricing (“BVAL”) methodology.
Removed
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.
Added
This discount rate for a particular cohort is locked-in when that cohort is closed to new contracts and is used for purposes of interest accretion for the future policy benefits liability and is reflected in policyholder benefits and claims on the consolidated statements of earnings.
Removed
Key assumptions used include the following: yield on investments supporting the liabilities, amount of interest or dividends credited to the policies, amount of policy fees and charges, amount of expenses necessary to maintain the policies, amount of death and surrender benefits, and the length of time the policies will stay in force.
Added
The current rate as of each reporting date is used to calculate an adjusted future policy benefit liability and is recognized through accumulated other comprehensive income (“AOCI”). Other assumptions include best-estimate mortality and lapse rates that are based on the company’s historical experience, industry data, and other factors; also estimates of expected non-level costs, such as termination or settlement costs.
Removed
For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies in proportion to the ratio of annual premium revenues to total anticipated premium revenues.
Added
Routine policy maintenance costs are not included. These assumptions are reviewed at least annually. Any changes to these assumptions will be reflected in policyholder benefits and claims on the consolidated statements of earnings.
Removed
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.
Added
The DPL equals accumulated deferrals (prior to and including the valuation date) minus accumulated amortization, where “deferrals” equals the difference between gross and net premium, and “amortization” equals the product of the measure of in force policies (units in force) and an amortization ratio which is updated at the same time as the net premium ratio. 21 Deferred Acquisition Costs and Value of Business Acquired Commissions and other acquisition costs, net of commission and expense allowances for reinsurance ceded, that vary with and are primarily related to the production of new insurance business that have been incurred are deferred.
Removed
The Company tests for recoverability by using the Company’s current best-estimate assumptions as to policyholder mortality, persistency, maintenance expenses and invested asset returns. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized DAC and VOBA assets. These cash flows consist primarily of premium income, less benefits, and expenses.
Added
For traditional long-duration life insurance products, deferred policy acquisition costs (“DAC”) are amortized on a constant-level basis established on a cohort-grouped contract basis over the expected term of the related contracts, with the amortization basis being units in force using assumptions consistent with those used in computing the liability for future policy benefits.
Removed
If the current contract liabilities plus the present value of future premiums is greater than the sum of the present values of future policy benefits, commissions, and expenses plus the current DAC and VOBA less unearned premium reserve balances, then the capitalized assets are deemed recoverable.
Added
Results of Consolidated Operations 2025 Compared to 2024 Total revenues increased by $10,065,000, or 3.0%, to $344,588,000 for 2025 from $334,523,000 for 2024.
Removed
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).
Added
This increase was partially offset by a decrease of $2,463,000 in first year premiums because of decreased preneed insurance sales. 22 Net investment income increased by $7,613,000, or 10.6%, to $79,338,000 for 2025, from $71,725,000 for 2024.
Removed
The Company may be required to reimburse third-party investors for costs associated with early payoff of loans within six months of origination of such loans and to repurchase loans where there is a default in any of the first four monthly payments to the investors or, in lieu of repurchase, to pay a negotiated fee to the investors.
Added
This increase was partially offset by a $101,000 decrease in gains on fixed maturity securities and a $91,000 decrease in gains on other investments and assets. Other revenues decreased by $662,000, or 14.4%, to $3,942,000 for 2025 from $4,604,000 for 2024.
Removed
The Company’s estimates are based upon historical loss experience and the best estimate of the probable loan loss liabilities.
Added
This increase was primarily the result of a $3,370,000 increase in other expenses, a $2,067,000 increase in personnel expenses, a $488,000 increase in costs related to funding mortgage loans, a $400,000 increase in advertising expenses, a $76,000 increase in commissions, and a $42,000 increase in depreciation on property and equipment.
Removed
Upon completion of a transfer that satisfies the conditions to be accounted for as a sale, the Company initially measures at fair value liabilities incurred in a sale relating to any guarantee or recourse provisions in the event of defects in the representations and warranties made at loan sale.
Added
Although some variability is inherent in these estimates, management believes the amounts provided are fairly stated in all material respects.
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