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Business Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Business Segment Information

7) Business Segment Information

 

Description of Products and Services by Segment

 

The Company has three reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment consists of life insurance premiums and operating expenses from the sale of insurance products sold by the Company’s independent agency force and net investment income derived from investing policyholder and segment surplus funds. The Company’s cemetery and mortuary segment consists of revenues and operating expenses from the sale of at-need cemetery and mortuary merchandise and services at its mortuaries and cemeteries, pre-need sales of cemetery spaces after collection of 10% or more of the purchase price and the net investment income from investing segment surplus funds. The Company’s mortgage segment consists of fee income and expenses from the originations of residential mortgage loans and interest earned and interest expenses from warehousing loans held for sale.

 

Measurement of Segment Profit or Loss and Segment Assets

 

The accounting policies of the reportable segments are the same as those described in the Significant Accounting Principles of the Form 10-K for the year ended December 31, 2020. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit, and are eliminated upon consolidation.

 

Factors Management Used to Identify the Enterprise’s Reportable Segments

 

The Company’s reportable segments are business units that are managed separately due to the different products provided and the need to report separately to the various regulatory jurisdictions. The Company regularly reviews the quantitative thresholds and other criteria to determine when other business segments may need to be reported.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 30, 2021 (Unaudited)

 

7) Business Segment Information (Continued)

   Life Insurance   Cemetery/
Mortuary		   Mortgage   Intercompany
Eliminations		   Consolidated 
For the Three Months Ended                         
September 30, 2021                         
Revenues from external customers  $42,039,638   $6,705,347   $70,764,146   $—   $119,509,131 
Intersegment revenues   1,756,860    79,096    153,502    (1,989,458)   — 
Segment profit before income taxes   3,721,220    1,747,493    8,674,680    —    14,143,393 
                          
For the Three Months Ended                         
September 30, 2020                         
Revenues from external customers  $39,261,044   $5,495,990   $101,447,531   $—   $146,204,565 
Intersegment revenues   2,952,836    79,096    168,890    (3,200,822)   — 
Segment profit before income taxes   4,807,280    1,322,303    32,454,348    —    38,583,931 
                          
For the Nine Months Ended                         
September 30, 2021                         
Revenues from external customers  $121,640,865   $20,512,534   $216,764,653   $—   $358,918,052 
Intersegment revenues   5,409,841    234,905    470,534    (6,115,280)   — 
Segment profit before income taxes   11,110,425    6,717,763    27,347,612         45,175,800 
                          
Identifiable Assets   1,241,514,729    63,265,518    328,274,954    (78,248,809)   1,554,806,392 
Goodwill   2,765,729    754,018    —         3,519,588 
Total Assets   1,244,280,299    64,019,536    328,274,954    (78,248,809)   1,558,325,980 
                          
For the Nine Months Ended                         
September 30, 2020                         
Revenues from external customers  $110,255,399   $14,815,991   $219,403,866    —   $344,475,256 
Intersegment revenues   5,677,189    272,409    559,923    (6,509,521)   — 
Segment profit before income taxes   5,408,482    2,975,556    58,867,883    —    67,251,921 
                          
Identifiable Assets   1,232,786,760    55,339,760    443,756,079    (88,204,200)   1,643,678,399 
Goodwill   2,765,570    754,018    —    —    3,519,588 
Total Assets   1,235,552,330    56,093,778    443,756,079    (88,204,200)   1,647,197,987 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

September 30, 2021 (Unaudited)