SECURITY NATIONAL FINANCIAL CORP
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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.
Jun 30, 2025 · Filed Aug 14, 2025
SNFCA$9.48+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001641172-25-010568
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001641172-25-023791
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 60 current paragraphs.
19 unchanged; 25 reworded; 15 added; 1 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Mortgage fee income decreased by $134,000, or 0.5%, to $29,485,000, for the three month period ended June 30, 2025, from $29,619,000 for the comparable period in 2024. This decrease was primarily due to a $1,511,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market, which was partially offset by a $889,000 decrease in the fair value of loans held for sale, a $459,000 decrease in loan fees, interest income, and the provision for loan loss reserve, and a $297,000 decrease in the fair value of loan commitments.
Current report
Net mortuary and cemetery sales decreased by $511,000, or 6.6%, to $7,258,000 for the three month period ended June 30, 2025, from $7,769,000 for the comparable period in 2024. This decrease was primarily due to a $388,000 decrease in cemetery pre-need sales and a $163,000 decrease in cemetery at-need sales, which were partially offset by a $40,000 increase in mortuary at-need sales.
Current report
Cost of goods and services sold-mortuaries and cemeteries decreased by $76,000, or 6.2%, to $1,159,000 for the three month period ended June 30, 2025, from $1,235,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $63,000 in at-need sales and a decrease of $13,000 in pre-need sales.
Current report
Six month period ended June 30, 2025, Compared to Six month period ended June 30, 2024
Current report
Total revenues increased by $5,301,000, or 3.2%, to $172,281,000 for the six month period ended June 30, 2025, from $166,980,000 for the comparable period in 2024. Contributing to this increase in total revenues was a $2,843,000 increase in mortgage fee income, a $1,792,000 increase in net investment income, a $437,000 increase in gains on investments and other assets, a $236,000 increase in other revenues, and a $153,000 increase in insurance premiums and other considerations, which were partially offset by a $160,000 decrease in net mortuary and cemetery sales.
Current report
Insurance premiums and other considerations increased by $153,000, or 0.3%, to $59,965,000 for the six month period ended June 30, 2025, from $59,812,000 for the comparable period in 2024. This increase was primarily due to an increase of $847,000 in renewal premiums, which was partially offset by a decrease of $694,000 in first year premiums.
Current report
Net investment income increased by $1,792,000, or 4.7%, to $39,783,000 for the six month period ended June 30, 2025, from $37,991,000 for the comparable period in 2024. This increase was primarily attributable to a $4,586,000 increase in mortgage loan interest, a $908,000 increase in insurance assignment income, a $666,000 increase in fixed maturity securities income, and a $95,000 increase in equity securities income, which were partially offset by a $2,278,000 increase in investment expenses, a $1,051,000 decrease in interest on cash and cash equivalents, a $968,000 decrease in real estate income, a $156,000 decrease in other investment income, and a $10,000 decrease in policy loan interest.
Current report
Net mortuary and cemetery sales decreased by $160,000, or 1.1%, to $14,558,000 for the six month period ended June 30, 2025, from $14,718,000 for the comparable period in 2024. This decrease was primarily due to a $243,000 decrease in cemetery pre-need sales and a $132,000 decrease in cemetery at-need sales, which were partially offset by a $216,000 increase in mortuary at-need sales.
Current report
Gains (losses) on investments and other assets increased by $437,000, or 33.8% to $1,729,000 for the six month period ended June 30, 2025, from $1,292,000 for the comparable period in 2024. This increase in gains on investments and other assets was primarily due to a $308,000 increase in gains on real estate, a $96,000 increase in gains on equity securities, a $17,000 increase in gains on other assets, and a $16,000 increase in gains on fixed maturity securities.
Current report
Other revenues increased by $236,000, or 13.8%, to $1,951,000 for the six month period ended June 30, 2025, from $1,715,000 for the comparable period in 2024. This increase was primarily due to an increase of $324,000 in other miscellaneous revenues and a decrease of $88,000 in servicing fee revenue due to a decrease in the retention of mortgage servicing rights.
Current report
Death benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $687,000 or 1.4%, to $51,288,000 for the six month period ended June 30, 2025, from $50,601,000 for the comparable period in 2024. This increase was primarily the result of a $1,283,000 increase in death benefits and a $175,000 increase in surrender and other policy benefits, which were partially offset by $771,000 decrease in future policy benefits.
Current report
Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $1,389,000, or 15.4%, to $10,434,000 for the six month period ended June 30, 2025, from $9,045,000 for the comparable period in 2024. This increase was primarily due to an increase in the average outstanding balance of deferred policy and pre-need acquisition costs and primarily due to an increase in the termination rate for deaths and lapses.
Current report
Selling, general and administrative expenses increased by $8,112,000, or 9.7%, to $91,825,000 for the six month period ended June 30, 2025, from $83,713,000 for the comparable period in 2024. This increase was primarily the result of a $3,696,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, a $2,469,000 increase in commissions, a $2,071,000 increase in other expenses, a $324,000 increase in costs related to funding mortgage loans, a $291,000 increase in advertising expense, and a $34,000 increase in depreciation on property and equipment, which were partially offset by a $773,000 decrease in rent and rent related expenses.
Current report
Interest expense increased by $312,000, or 14.8%, to $2,413,000 for the six month period ended June 30, 2025, from $2,101,000 for the comparable period in 2024. This increase was primarily due to an increase of $270,000 in interest expense on mortgage warehouse lines of credit for loans held for sale and an increase of $42,000 in interest expense on bank loans.
Current report
The One Big Beautiful Bill Act (“OBBBA”), which was signed into law on July 4, 2025, significantly affected U.S. income tax law. The Company is currently assessing its impact, however the Company does not expect a material impact to its consolidated financial statements.
Removed paragraphs (1)
Previous report
Net mortuary and cemetery sales increased by $352,000, or 5.1%, to $7,300,000 for the three month period ended March 31, 2025, from $6,948,000 for the comparable period in 2024. This increase was primarily due to a $146,000 increase in cemetery pre-need sales, a $176,000 increase in mortuary at-need sales, and a $30,000 increase in cemetery at-need sales.
Reworded paragraphs (25)
Previous wording
The following table shows the condensed financial results of the insurance operations for the three month periods ended March 31, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Current wording
The following table shows the condensed financial results of the insurance operations for the three and six month periods ended June 30, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Previous wording
Profitability for the three month period ended March 31, 2025 decreased due to (a) a $2,536,000 increase in selling, general and administrative expenses, (b) a $798,000 decrease in gains on investments and other assets, (c) a $332,000 increase in death benefits, (d) a $73,000 decrease in insurance premiums and other considerations, (e) a $60,000 decrease in intersegment revenue, and (f) a $13,000 increase in amortization of deferred policy acquisition costs, which were partially offset by (i) a $636,000 decrease in income tax expense, (ii) a $358,000 decrease in future policy benefits, (iii) a $168,000 increase in other revenues, (iv) a $26,000 decrease in intersegment expenses, (v) a $25,000 decrease in interest expense, (vi) a $19,000 increase in net investment income, and (vii) a $14,000 decrease in surrenders and other policy benefits.
Current wording
Profitability for the six month period ended June 30, 2025 decreased due to (a) a $3,493,000 increase in selling, general and administrative expenses, primarily attributable to a $2,407,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, (b) a $1,492,000 increase in amortization of deferred policy acquisition costs, (c) a $1,283,000 increase in death benefits, (d) a $174,000 increase in surrenders and other policy benefits (e) a $137,000 decrease in intersegment revenue, and (f) a $42,000 increase in interest expense, which were partially offset by (i) a $2,834,000 increase in net investment income, (ii) a $771,000 decrease in future policy benefits, (iii) a $373,000 decrease in income tax expense, (iv) a $330,000 increase in other revenues, (v) a $286,000 increase in gains on investments and other assets, (vi) a $153,000 increase in insurance premiums and other considerations, and (vii) a $95,000 decrease in intersegment expenses.
Previous wording
The following table shows the condensed financial results of the cemetery and mortuary operations for the three month periods ended March 31, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Current wording
The following table shows the condensed financial results of the cemetery and mortuary operations for the three and six month periods ended June 30, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Previous wording
Profitability in the three month period ended March 31, 2025 decreased due to (a) a $663,000 decrease in net investment income, (b) a $372,000 decrease in gains on investments and other assets, (c) a $234,000 increase in selling, general and administrative expenses, and (d) a $1,000 decrease in intersegment revenues, which were partially offset by (i) a $252,000 decrease in income tax expense, (ii) a $176,000 increase in mortuary at-need sales, (iii) a $146,000 increase in cemetery pre-need sales, (iv) a $60,000 decrease in amortization of deferred policy acquisition costs, (v) a $30,000 increase in cemetery at-need sales, (vi) a $21,000 decrease in cost of goods and services sold, (vii) a $15,000 increase in other revenues, and (viii) a $6,000 decrease in intersegment expenses.
Current wording
Profitability in the six month period ended June 30, 2025 decreased due to (a) a $772,000 decrease in net investment income, (b) a $520,000 increase in selling, general and administrative expenses, primarily attributable to a $349,000 increase in personnel expenses, (c) a $243,000 decrease in cemetery pre-need sales, (d) a $132,000 decrease in cemetery at-need sales, and (e) a $1,000 decrease in intersegment revenues, which were partially offset by (i) a $344,000 decrease in income tax expense, (ii) a $216,000 increase in mortuary at-need sales, (iii) a $103,000 decrease in amortization of deferred policy acquisition costs, (iv) a $102,000 increase in gains on investments and other assets, (v) a $97,000 decrease in cost of goods and services sold, (vi) a $25,000 increase in other revenues, and (vii) a $14,000 decrease in intersegment expenses.
Previous wording
SecurityNational Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from third party investors that purchase the mortgage loans. Mortgage loans are generally sold with mortgage servicing rights (“MSRs”) released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the mortgage servicing rights on approximately 0.10% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer.
Current wording
SecurityNational Mortgage receives fees from borrowers that are involved in mortgage loan originations and refinancings, and secondary fees earned from third party investors that purchase the mortgage loans. Mortgage loans are generally sold with mortgage servicing rights (“MSRs”) released to third-party investors or retained by SecurityNational Mortgage. SecurityNational Mortgage currently retains the mortgage servicing rights on approximately 0.79% of its loan origination volume. These mortgage loans are serviced by either SecurityNational Mortgage or an approved third-party sub-servicer.
Previous wording
For the three month periods ended March 31, 2025 and 2024, SecurityNational Mortgage originated 1,508 loans ($517,886,000 total volume) and 1,486 loans ($465,605,000 total volume), respectively.
Current wording
For the six month periods ended June 30, 2025 and 2024, SecurityNational Mortgage originated 3,375 loans ($1,134,783,000 total volume) and 3,494 loans ($1,089,824,000 total volume), respectively.
Previous wording
The following table shows the condensed financial results of the mortgage operations for the three month periods ended March 31, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Current wording
The following table shows the condensed financial results of the mortgage operations for the three and six month periods ended June 30, 2025 and 2024. See Note 7 to the condensed consolidated financial statements.
Previous wording
Losses for the three month period ended March 31, 2025 increased due to (a) a $2,025,000 increase in commissions, (b) a $804,000 increase in personnel expenses, (c) a $332,000 increase in other expenses, (d) a $120,000 increase in advertising expenses, (e) a $117,000 increase in interest expense, (f) a $102,000 decrease in income from loan originations, (g) a $99,000 decrease in net investment income, (h) a $87,000 decrease in the fair value of loan commitments, (i) a $61,000 decrease in other revenues, (j) a $25,000 decrease in intersegment revenues, and (k) a $3,000 increase in depreciation on property and equipment, which were partially offset by (i) a $2,224,000 increase in secondary gains from investors, (ii) a $942,000 increase in the fair value of loans held for sale, (iii) a $404,000 decrease in rent and rent related expenses, (iv) a $87,000 increase in gains on investments and other assets, (v) a $53,000 decrease in intersegment expenses, (vi) a $34,000 decrease in costs related to funding mortgage loans, and (vii) a $24,000 increase in income tax benefit.
Current wording
Losses for the six month period ended June 30, 2025 increased due to (a) a $2,384,000 increase in commissions, (b) a $941,000 increase in personnel expenses, (c) a $895,000 increase in other expenses, (d) a $560,000 decrease in income from loan originations, (e) a $385,000 decrease in the fair value of loan commitments, (f) a $324,000 increase in costs related to funding mortgage loans, (g) a $272,000 increase in advertising expenses, (h) a $270,000 increase in interest expense, (i) a $270,000 decrease in net investment income, (j) a $119,000 decrease in other revenues, and (k) a $95,000 decrease in intersegment revenues, which were partially offset by (i) a $3,735,000 increase in secondary gains from investors, (ii) a $717,000 decrease in rent and rent related expenses, (iii) a $483,000 increase in income tax benefit, (iv) a $124,000 decrease in intersegment expenses, (v) a $53,000 increase in the fair value of loans held for sale, and (vi) a $49,000 increase in gains on investments and other assets.
Previous wording
Total revenues increased by $1,552,000, or 1.9%, to $82,740,000 for the three month period ended March 31, 2025, from $81,188,000 for the comparable period in 2024. Contributing to this increase in total revenues was a $2,977,000 increase in mortgage fee income, a $352,000 increase in net mortuary and cemetery sales, and a $122,000 increase in other revenues, which were partially offset by a $1,083,000 decrease in gains on investments and other assets, a $744,000 decrease in net investment income, and a $72,000 decrease in insurance premiums and other considerations.
Current wording
Total revenues increased by $3,750,000, or 4.4%, to $89,541,000 for the three month period ended June 30, 2025, from $85,791,000 for the comparable period in 2024. Contributing to this increase in total revenues was a $2,536,000 increase in net investment income, a $1,520,000 increase in gains on investments and other assets, a $225,000 increase in insurance premiums and other considerations, and a $114,000 increase in other revenues, which were partially offset by a $511,000 decrease in net mortuary and cemetery sales and a $134,000 decrease in mortgage fee income.
Previous wording
Insurance premiums and other considerations decreased by $72,000, or 0.2%, to $29,780,000 for the three month period ended March 31, 2025, from $29,852,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $350,000 in first year premiums, which was partially offset by an increase of $278,000 in renewal premiums.
Current wording
Insurance premiums and other considerations increased by $225,000, or 0.8%, to $30,186,000 for the three month period ended June 30, 2025, from $29,961,000 for the comparable period in 2024. This increase was primarily due to an increase of $587,000 in renewal premiums, which was partially offset by a decrease of $362,000 in first year premiums.
Previous wording
Net investment income decreased by $744,000, or 3.7%, to $19,203,000 for the three month period ended March 31, 2025, from $19,947,000 for the comparable period in 2024. This decrease was primarily attributable to a $850,000 decrease in mortgage loan interest, a $555,000 decrease in real estate income, a $288,000 decrease in interest on cash and cash equivalents, a $57,000 decrease in policy loan interest, and a $37,000 decrease in other investment income, which were partially offset by a $656,000 increase in insurance assignment income, a $261,000 increase in fixed maturity securities income, a $102,000 decrease in investment expenses, and a $24,000 increase in equity securities income.
Current wording
Net investment income increased by $2,536,000, or 14.1%, to $20,581,000 for the three month period ended June 30, 2025, from $18,045,000 for the comparable period in 2024. This increase was primarily attributable to a $5,436,000 increase in mortgage loan interest, a $404,000 increase in fixed maturity securities income, a $252,000 increase in insurance assignment income, a $71,000 increase in equity securities income, and a $46,000 increase in policy loan interest, which were partially offset by a $2,380,000 increase in investment expenses, a $762,000 decrease in interest on cash and cash equivalents, a $412,000 decrease in real estate income, and a $119,000 decrease in other investment income.
Previous wording
Gains (losses) on investments and other assets decreased by $1,083,000 to $586,000 for the three month period ended March 31, 2025, from $1,669,000 for the comparable period in 2024. This decrease in gains on investments and other assets was primarily due to a $1,094,000 decrease in gains on equity securities, primarily attributable to decreases in the fair value of these equity securities, a $103,000 decrease in gains on other assets, and a $31,000 decrease in gains on fixed maturity securities, which were partially offset by a $145,000 increase in gains on real estate.
Current wording
Gains (losses) on investments and other assets increased by $1,520,000 to $1,143,000 in net gains for the three month period ended June 30, 2025, from $377,000 in net losses for the comparable period in 2024. This increase in gains on investments and other assets was primarily due to a $1,190,000 increase in gains on equity securities, primarily attributable to increases in the fair value of these equity securities, a $164,000 increase in gains on real estate, a $119,000 increase in gains on other assets, and a $47,000 increase in gains on fixed maturity securities.
Previous wording
Other revenues increased by $122,000, or 13.0%, to $1,062,000 for the three month period ended March 31, 2025, from $940,000 for the comparable period in 2024. This increase was primarily due to an increase of $147,000 in other miscellaneous revenues and a decrease of $25,000 in servicing fee revenue due to a decrease in the retention of mortgage servicing rights.
Current wording
Other revenues increased by $114,000, or 14.7%, to $889,000 for the three month period ended June 30, 2025, from $775,000 for the comparable period in 2024. This increase was primarily due to an increase of $174,000 in other miscellaneous revenues and a decrease of $60,000 in servicing fee revenue due to a decrease in the retention of mortgage servicing rights.
Previous wording
Death benefits, surrenders and other policy benefits, and future policy benefits decreased by an aggregate of $40,000 or 0.2%, to $26,235,000 for the three month period ended March 31, 2025, from $26,275,000 for the comparable period in 2024. This decrease was primarily the result of a $358,000 decrease in future policy benefits and a $14,000 decrease in surrender and other policy benefits which were partially offset by a $332,000 increase in death benefits.
Current wording
Death benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $727,000 or 3.0%, to $25,053,000 for the three month period ended June 30, 2025, from $24,326,000 for the comparable period in 2024. This increase was primarily the result of a $951,000 increase in death benefits and a $189,000 increase in surrender and other policy benefits, which were partially offset by a $413,000 decrease in future policy benefits.
Previous wording
Amortization of deferred policy and pre-need acquisition costs and value of business acquired decreased by $47,000, or 1.0%, to $4,697,000 for the three month period ended March 31, 2025, from $4,744,000 for the comparable period in 2024. This decrease was primarily due to increased payment consistency from premium-paying products.
Current wording
Amortization of deferred policy and pre-need acquisition costs and value of business acquired increased by $1,436,000, or 33.4%, to $5,737,000 for the three month period ended June 30, 2025, from $4,301,000 for the comparable period in 2024. This increase was primarily due to an increase in the average outstanding balance of deferred policy and pre-need acquisition costs and primarily due to an increase in the termination rate for deaths and lapses.
Previous wording
Selling, general and administrative expenses increased by $5,616,000, or 14.7%, to $43,864,000 for the three month period ended March 31, 2025, from $38,248,000 for the comparable period in 2024. This increase was primarily the result of a $2,457,000 increase in commissions, a $2,327,000 increase in personnel expenses, a $1,115,000 increase in other expenses, a $136,000 increase in advertising expense, and a $28,000 increase in depreciation on property and equipment, which were partially offset by a $413,000 decrease in rent and rent related expenses and a $34,000 decrease in costs related to funding mortgage loans.
Current wording
Selling, general and administrative expenses increased by $2,496,000, or 5.5%, to $47,961,000 for the three month period ended June 30, 2025, from $45,465,000 for the comparable period in 2024. This increase was primarily the result of a $1,369,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, a $956,000 increase in other expenses, a $358,000 increase in costs related to funding mortgage loans, a $154,000 increase in advertising expense, a $13,000 increase in commissions, and a $6,000 increase in depreciation on property and equipment, which were partially offset by a $360,000 decrease in rent and rent related expenses.
Previous wording
Interest expense increased by $92,000, or 9.0%, to $1,119,000 for the three month period ended March 31, 2025, from $1,027,000 for the comparable period in 2024. This increase was primarily due to an increase of $117,000 in interest expense on mortgage warehouse lines of credit for loans held for sale, which was partially offset by a decrease of $25,000 in interest expense on bank loans.
Current wording
Interest expense increased by $220,000, or 20.5%, to $1,293,000 for the three month period ended June 30, 2025, from $1,073,000 for the comparable period in 2024. This increase was primarily due to an increase of $153,000 in interest expense on mortgage warehouse lines of credit for loans held for sale and an increase of $67,000 in interest expense on bank loans.
Previous wording
In summary total benefits and expenses were $77,169,000, or 93.3% of total revenues, for the three month period ended March 31, 2025, as compared to $71,569,000, or 88.2% of total revenues, for the comparable period in 2024.
Current wording
In summary, total benefits and expenses were $81,205,000, or 90.7% of total revenues, for the three month period ended June 30, 2025, as compared to $76,402,000, or 89.1% of total revenues, for the comparable period in 2024.
Previous wording
Mortgage fee income increased by $2,977,000, or 13.6%, to $24,809,000, for the three month period ended March 31, 2025, from $21,832,000 for the comparable period in 2024. This increase was primarily due to a $2,224,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market and a $942,000 increase in the fair value of loans held for sale, which were partially offset by a $102,000 decrease in loan fees and interest income net of an increase in the provision for loan loss reserve and an $87,000 decrease in the fair value of loan commitments.
Current wording
Mortgage fee income increased by $2,843,000, or 5.5%, to $54,294,000, for the six month period ended June 30, 2025, from $51,451,000 for the comparable period in 2024. This increase was primarily due to a $3,735,000 increase in secondary gains from mortgage loans sold to third-party investors into the secondary market and a $53,000 increase in the fair value of loans held for sale, which were partially offset by a $560,000 decrease in loan fees, interest income, and the provision for loan loss reserve and an $385,000 decrease in the fair value of loan commitments.
Previous wording
Cost of goods and services sold-mortuaries and cemeteries decreased by $21,000, or 1.6%, to $1,253,000 for the three month period ended March 31, 2025, from $1,274,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $40,000 in at-need sales, which was partially offset by an increase of $19,000 in pre-need sales.
Current wording
Cost of goods and services sold-mortuaries and cemeteries decreased by $97,000, or 3.9%, to $2,413,000 for the six month period ended June 30, 2025, from $2,510,000 for the comparable period in 2024. This decrease was primarily due to a decrease of $103,000 in at-need sales, which was partially offset by an increase of $6,000 in pre-need sales.
Previous wording
As of March 31, 2025, the Company’s subsidiary SecurityNational Mortgage was in compliance with all covenants under its warehouse lines of credit. The Company has also performed an 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.
Current wording
As of June 30, 2025, SecurityNational Mortgage was not in compliance with the net income covenant of Western Alliance Bank’s warehouse line of credit. SecurityNational Mortgage is in the process of receiving waivers. In the unlikely event the Company is required to repay the outstanding advances of approximately $12,751,822 on the warehouse lines of credit, the Company has sufficient cash to do so. The Company has also performed an analysis of its funding capacities of 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.
Previous wording
During the three month periods ended March 31, 2025 and 2024, the Company’s operations provided cash of approximately $9,586,000 and of approximately $25,077,000, respectively. The decrease in cash provided by operations was due primarily to the decrease in net earnings and in loans held for sale.
Current wording
During the six month periods ended June 30, 2025 and 2024, the Company’s operations provided cash of approximately $1,905,000 and of approximately $8,104,000, respectively. The decrease in cash provided by operations was due primarily to the decrease in net earnings.
Previous wording
The Company’s investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing of mortgage loans. The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the Company’s life insurance subsidiaries. Bonds owned by the insurance subsidiaries amounted to $353,780,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of March 31, 2025 and December 31, 2024, respectively. This represented 35.5% and 38.0% of the total investments of the Company as of March 31, 2025 and December 31, 2024, respectively. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners. Under this rating system, there are six categories used for the rating of bonds. As of March 31, 2025, 1.8% (or $6,473,000) and as of December 31, 2024, 2.4% (or $8,431,000) of the Company’s total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade.
Current wording
The Company’s investment policy is also to invest predominantly in fixed maturity securities, real estate, mortgage loans, and warehousing of mortgage loans. The warehoused mortgage loans are typically held for sale on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the Company’s life insurance subsidiaries. Bonds owned by the insurance subsidiaries amounted to $372,354,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of June 30, 2025 and December 31, 2024, respectively. This represented 35.7% and 38.0% of the total investments of the Company as of June 30, 2025 and December 31, 2024, respectively. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners. Under this rating system, there are six categories used for the rating of bonds. As of June 30, 2025, 2.0% (or $7,314,000) and as of December 31, 2024, 2.4% (or $8,431,000) of the Company’s total bond investments were invested in bonds in rating categories three through six, which are considered non-investment grade.
Previous wording
The Company’s total capitalization of stockholders’ equity, bank and other loans payable was $469,317,000 as of March 31, 2025, as compared to $445,758,000 as of December 31, 2024. This increase was primarily due to an increase of $7,711,000 in stockholders’ equity and an increase of $16,083,000 in bank loans and other loans payable. Stockholders’ equity as a percent of total capitalization was 73.8% and 76.1% as of March 31, 2025 and December 31, 2024, respectively.
Current wording
The Company’s total capitalization of stockholders’ equity, bank and other loans payable was $477,687,000 as of June 30, 2025, as compared to $445,758,000 as of December 31, 2024. This increase was primarily due to an increase of $15,972,000 in stockholders’ equity and an increase of $16,192,000 in bank loans and other loans payable. Stockholders’ equity as a percent of total capitalization was 74.3% and 76.1% as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
The combined statutory capital and surplus of the Company’s life insurance subsidiaries was approximately $121,485,000 and $120,216,000 as of March 31, 2025, and December 31, 2024, respectively. The life insurance subsidiaries cannot pay a dividend to their parent company without the approval of state insurance regulatory authorities.
Current wording
The combined statutory capital and surplus of the Company’s life insurance subsidiaries was approximately $127,098,000 and $120,216,000 as of June 30, 2025, and December 31, 2024, respectively. The life insurance subsidiaries cannot pay a dividend to their parent company without the approval of state insurance regulatory authorities.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In summary, total benefits and expenses were $158,373,000, or 91.9% of total revenues, for the six month period ended June 30, 2025, as compared to $147,971,000, or 88.6% of total revenues, for the comparable period in 2024.