SECURITY NATIONAL FINANCIAL CORP
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
SNFCA$9.48+1.4%Stored close · as of Nov 6, 2026
Contents
Financial Statements
Item 1. Financial Statements.
| September 30, 2024 | December 31, 2023 | |
|---|---|---|
| Assets | ||
| Investments: | ||
| Fixed maturity securities, available for sale, at estimated fair value (amortized cost of $347,143,698 and $390,884,441 for 2024 and 2023, respectively; net of allowance for credit losses of $414,602 and $314,549 for 2024 and 2023, respectively) | $346,513,336 | $381,535,986 |
| Equity securities at estimated fair value (cost of $11,357,095 and $10,571,505 for 2024 and 2023, respectively) | 16,385,571 | 13,636,071 |
| Mortgage loans held for investment (net of allowance for credit losses of $1,579,746 and $3,818,653 for 2024 and 2023, respectively) | 281,734,182 | 275,616,837 |
| Real estate held for investment (net of accumulated depreciation of $30,005,134 and $29,307,791 for 2024 and 2023, respectively) | 200,490,556 | 183,419,292 |
| Real estate held for sale | 1,001,453 | 3,028,973 |
| Other investments and policy loans (net of allowance for credit losses of $1,540,835 and $1,553,836 for 2024 and 2023, respectively) | 70,219,649 | 69,404,617 |
| Accrued investment income | 7,860,824 | 10,170,790 |
| Total investments | 924,205,571 | 936,812,566 |
| Cash and cash equivalents | 170,706,542 | 126,941,658 |
| Loans held for sale at estimated fair value | 142,897,741 | 126,549,190 |
| Receivables (net of allowance for credit losses of $1,566,150 and $1,897,887 for 2024 and 2023, respectively) | 16,451,703 | 15,335,315 |
| Restricted assets (including $11,608,495 and $9,239,063 for 2024 and 2023 respectively, at estimated fair value) | 27,957,336 | 20,028,976 |
| Cemetery perpetual care trust investments (including $5,844,356 and $4,969,005 for 2024 and 2023, respectively, at estimated fair value) | 8,945,781 | 8,082,917 |
| Receivable from reinsurers | 14,299,734 | 14,857,059 |
| Cemetery land and improvements | 9,786,769 | 9,163,691 |
| Deferred policy and pre-need contract acquisition costs | 121,827,365 | 116,351,067 |
| Mortgage servicing rights, net | 3,051,805 | 3,461,146 |
| Property and equipment, net | 17,745,106 | 19,175,099 |
| Value of business acquired | 7,643,791 | 8,467,613 |
| Goodwill | 5,253,783 | 5,253,783 |
| Other | 24,051,168 | 20,072,195 |
| Total Assets | $1,494,824,195 | $1,430,552,275 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
| September 30, 2024 | December 31, 2023 | |
|---|---|---|
| Liabilities and Stockholders’ Equity | ||
| Liabilities | ||
| Future policy benefits and unpaid claims | $937,811,456 | $916,038,616 |
| Unearned premium reserve | 2,054,164 | 2,543,822 |
| Bank and other loans payable | 106,989,925 | 105,555,137 |
| Deferred pre-need cemetery and mortuary contract revenues | 19,493,005 | 18,237,246 |
| Cemetery perpetual care obligation | 5,565,003 | 5,326,196 |
| Accounts payable | 3,245,452 | 2,936,968 |
| Other liabilities and accrued expenses | 56,994,869 | 53,266,090 |
| Income taxes | 16,348,255 | 13,752,981 |
| Total liabilities | 1,148,502,129 | 1,117,657,056 |
| Stockholders’ Equity | ||
| Preferred Stock - non-voting - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - |
| Class A: common stock - $2.00 par value; 40,000,000 shares authorized; 21,117,986 shares issued and outstanding as of September 30, 2024 and 21,052,883 (1) shares issued and outstanding as of December 31, 2023 | 42,235,972 | 40,096,004 |
| Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | - | - |
| Class C: convertible common stock - $2.00 par value; 6,000,000 shares authorized; 3,120,166 shares issued and outstanding as of September 30, 2024 and 3,120,432 (1) shares issued and outstanding as of December 31, 2023 | 6,240,332 | 5,943,708 |
| Additional paid-in capital | 78,977,933 | 72,424,429 |
| Accumulated other comprehensive loss, net of taxes | (42,545) | (6,885,558) |
| Retained earnings | 225,400,933 | 206,978,373 |
| Treasury stock at cost - 938,919 Class A shares and 37,503 Class C shares as of September 30, 2024; and 852,338 (1) Class A shares and 37,503 (1) Class C shares as of December 31, 2023 | (6,490,559) | (5,661,737) |
| Total stockholders’ equity | 346,322,066 | 312,895,219 |
| Total Liabilities and Stockholders’ Equity | $1,494,824,195 | $1,430,552,275 |
| (1) | Issued and outstanding shares have been adjusted retroactively for the effect of annual stock dividends. |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenues: | ||||
| Mortgage fee income | $30,224,092 | $24,936,019 | $81,675,278 | $77,003,778 |
| Insurance premiums and other considerations | 30,011,081 | 28,906,803 | 89,823,732 | 85,687,394 |
| Net investment income | 17,799,096 | 19,248,463 | 55,790,472 | 57,195,320 |
| Net mortuary and cemetery sales | 6,814,331 | 7,234,031 | 21,531,769 | 20,874,174 |
| Gains (losses) on investments and other assets | 1,347,656 | (932,414) | 2,639,843 | (4,676) |
| Other | 2,077,431 | 848,825 | 3,792,127 | 2,832,630 |
| Total revenues | 88,273,687 | 80,241,727 | 255,253,221 | 243,588,620 |
| Benefits and expenses: | ||||
| Death benefits | 13,570,336 | 14,678,251 | 43,354,254 | 46,811,922 |
| Surrenders and other policy benefits | 1,194,692 | 1,467,066 | 3,453,425 | 3,550,416 |
| Increase in future policy benefits | 8,589,354 | 9,476,678 | 27,148,178 | 26,031,421 |
| Amortization of deferred policy and pre-need acquisition costs and value of business acquired | 2,287,003 | 4,480,457 | 11,332,305 | 13,615,359 |
| Selling, general and administrative expenses: | ||||
| Commissions | 13,204,406 | 10,467,796 | 34,638,464 | 30,877,232 |
| Personnel | 21,249,554 | 20,234,106 | 61,907,265 | 62,705,033 |
| Advertising | 907,528 | 994,433 | 2,381,400 | 2,863,597 |
| Rent and rent related | 1,380,076 | 1,677,701 | 4,078,792 | 5,285,492 |
| Depreciation on property and equipment | 611,475 | 590,168 | 1,791,823 | 1,765,797 |
| Costs related to funding mortgage loans | 1,694,791 | 1,563,172 | 4,677,767 | 5,246,881 |
| Other | 6,191,624 | 7,124,347 | 19,476,918 | 22,308,291 |
| Interest expense | 1,060,653 | 1,151,534 | 3,161,943 | 4,019,669 |
| Cost of goods and services sold-mortuaries and cemeteries | 1,117,513 | 1,177,328 | 3,627,101 | 3,614,599 |
| Total benefits and expenses | 73,059,005 | 75,083,037 | 221,029,635 | 228,695,709 |
| Earnings before income taxes | 15,214,682 | 5,158,690 | 34,223,586 | 14,892,911 |
| Income tax expense | (3,383,238) | (1,117,397) | (7,646,071) | (3,258,740) |
| Net earnings | $11,831,444 | $4,041,293 | $26,577,515 | $11,634,171 |
| Net earnings per Class A Equivalent common share (1) | $0.51 | $0.17 | $1.14 | $0.50 |
| Net earnings per Class A Equivalent common share-assuming dilution (1) | $0.49 | $0.17 | $1.11 | $0.49 |
| Weighted-average Class A equivalent common shares outstanding (1) | 23,240,725 | 23,169,141 | 23,287,707 | 23,171,889 |
| Weighted-average Class A equivalent common shares outstanding-assuming dilution (1) | 24,053,486 | 23,975,784 | 23,984,233 | 23,837,693 |
| (1) | Net earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. The weighted-average shares outstanding includes the weighted-average Class A common shares and the weighted-average Class C common shares determined on an equivalent Class A common stock basis. Net earnings per common share represent net earnings per equivalent Class A common share. |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net earnings | $11,831,444 | $4,041,293 | $26,577,515 | $11,634,171 |
| Other comprehensive income: | ||||
| Unrealized gains (losses) on fixed maturity securities available for sale | $10,443,490 | (6,805,602) | $8,661,351 | (6,580,750) |
| Unrealized gains (losses) on restricted assets (1) | 9,353 | (12,284) | 5,770 | (14,340) |
| Unrealized gains (losses) on cemetery perpetual care trust investments (1) | 4,263 | (2,487) | 2,438 | (3,299) |
| Other comprehensive income (loss), before income tax | 10,457,106 | (6,820,373) | 8,669,559 | (6,598,389) |
| Income tax (expense) benefit | (2,201,866) | 1,432,846 | (1,826,546) | 1,386,368 |
| Other comprehensive income (loss), net of income tax | 8,255,240 | (5,387,527) | 6,843,013 | (5,212,021) |
| Comprehensive income (loss) | $20,086,684 | $(1,346,234) | $33,420,528 | $6,422,150 |
| (1) | Fixed maturity securities available for sale |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.