XML 34 R22.htm IDEA: XBRL DOCUMENT v3.22.1
Business Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segment Information

15) 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 pre-sold loans before the funds are received from financial institutional investors.

 

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. 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 Consolidated Financial Statements

Years Ended December 31, 2021 and 2020

 

15) Business Segment Information (Continued)

 

   Year Ended December 31, 2021 
   Life   Cemetery/       Intercompany     
   Insurance   Mortuary   Mortgage   Eliminations   Consolidated 
Revenues:                    
From external sources:                         
Revenue from customers  $100,254,573   $23,997,313   $263,418,230    -   $387,670,116 
Net investment income   56,091,725    1,653,940    519,018    -    58,264,683 
Gains on investments and other assets   4,554,528    1,511,965    198,641    -    6,265,134 
Other than temporary impairments   (39,502)   -    -    -    (39,502)
Other revenues   2,152,531    100,255    16,282,325    -    18,535,111 
Intersegment revenues:                         
Net investment income   7,569,875    314,001    599,115    (8,482,991)   - 
Total revenues   170,583,730    27,577,474    281,017,329    (8,482,991)   470,695,542 
Expenses:                         
Death, surrenders and other policy benefits   67,218,455    -    -    -    67,218,455 
Increase in future policy benefits   26,263,312    -    -    -    26,263,312 
Amortization of deferred policy and pre-need acquisition costs and value of business acquired   15,611,374    531,596    -    -    16,142,970 
Selling, general and administrative expenses:                         
Commissions   3,514,498    1,917,899    112,854,072    -    118,286,469 
Personnel   25,009,096    6,850,617    68,880,448    -    100,740,161 
Advertising   1,160,640    570,924    4,894,854    -    6,626,418 
Rent and rent related   733,726    109,318    6,399,243    -    7,242,287 
Depreciation on property and equipment   806,543    479,005    650,065    -    1,935,613 
Provision for loan loss reserve   -    -    -    -    - 
Cost related to funding mortgage loans   -    -    10,541,570    -    10,541,570 
Intersegment   497,113    113,062    671,107    (1,281,282)   - 
Other   12,075,374    5,224,178    35,766,430    -    53,065,982 
Interest expense:                         
Intersegment   392,003    97,195    6,712,511    (7,201,709)   - 
Other   2,328,868    54,620    4,744,028    -    7,127,516 
Costs of goods and services sold-mortuaries and cemeteries   -    3,704,014    -    -    3,704,014 
Total benefits and expenses   155,611,002    19,652,428    252,114,328    (8,482,991)   418,894,767 
Earnings before income taxes  $14,972,728   $7,925,046   $28,903,001   $-   $51,800,775 
Income tax benefit (expense)   (2,943,715)   (1,975,787)   (7,362,283)   -    (12,281,785)
Net earnings  $12,029,013   $5,949,259   $21,540,718   $-   $39,518,990 
                          
Identifiable assets  $

1,236,406,557

   $73,432,116   $328,600,841   $(96,099,992)  $

1,542,339,522

 
                          
Goodwill  $2,765,570   $2,488,213   $-   $-   $5,253,783 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020

 

15) Business Segment Information (Continued)

 

   Year Ended December 31, 2020 
   Life   Cemetery/       Intercompany     
   Insurance   Mortuary   Mortgage   Eliminations   Consolidated 
Revenues:                    
From external sources:                         
Revenue from customers  $93,020,617   $20,307,435   $298,933,110   $-   $412,261,162 
Net investment income   54,811,486    807,695    710,622    -    56,329,803 
Gains on investments and other assets   2,088,541    (162,652)   (39)   -    1,925,850 
Other than temporary impairments   (370,975)   -    -    -    (370,975)
Other revenues   1,491,585    94,349    9,731,548    -    11,317,482 
Intersegment revenues:                         
Net investment income   8,022,503    351,505    716,240    (9,090,248)   - 
Total revenues   159,063,757    21,398,332    310,091,481    (9,090,248)   481,463,322 
Expenses:                         
Death, surrenders and other policy benefits   62,841,360    -    -    -    62,841,360 
Increase in future policy benefits   23,568,650    -    -    -    23,568,650 
Amortization of deferred policy and pre-need acquisition costs and value of business acquired   13,618,204    689,221    -    -    14,307,425 
Selling, general and administrative expenses:                         
Commissions   4,149,241    1,506,320    118,770,736    -    124,426,297 
Personnel   25,449,100    5,669,367    53,871,504    -    84,989,971 
Advertising   614,114    391,836    4,374,946    -    5,380,896 
Rent and rent related   861,602    89,253    5,922,706    -    6,873,561 
Depreciation on property and equipment   843,335    488,570    746,833    -    2,078,738 
Provision for loan loss reserve   -    -    16,506,030    -    16,506,030 
Cost related to funding mortgage loans   -    -    9,877,700    -    9,877,700 
Intersegment   621,161    142,999    580,976    (1,345,136)   - 
Other   11,808,818    4,417,805    31,104,479    -    47,331,102 
Interest expense:                         
Intersegment   410,024    152,175    7,182,913    (7,745,112)   - 
Other   2,354,760    198,968    6,025,082    -    8,578,810 
Costs of goods and services sold-mortuaries and cemeteries   -    3,252,655    -    -    3,252,655 
Total benefits and expenses   147,140,369    16,999,169    254,963,905    (9,090,248)   410,013,195 
Earnings before income taxes  $11,923,388   $4,399,163   $55,127,576   $-   $71,450,127 
Income tax benefit (expense)   (1,433,901)   (1,009,137)   (13,410,476)   -    (15,853,514)
Net earnings  $10,489,487   $3,390,026   $41,717,100   $-   $55,596,613 
                          
Identifiable assets  $

1,171,158,235

   $56,335,498   $408,325,196   $(90,398,039)  $

1,545,420,890

 
                          
Goodwill  $2,765,570   $754,018   $-   $-   $3,519,588 

 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2021 and 2020