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Business Segment Information
 3 Months Ended
Mar. 31, 2022
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, 2021. 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

March 31, 2022 (Unaudited)

 

7) Business Segment Information (Continued)

     Life Insurance     Cemetery/
Mortuary		     Mortgage  

 

Intercompany

Eliminations

     Consolidated 
   Life Insurance   Cemetery/
Mortuary		   Mortgage  

Intercompany

Eliminations

   Consolidated 
For the Three Months Ended                         
March 31, 2022                         
Revenues from external customers  $41,501,809   $7,463,194   $53,460,904   $-   $102,425,907 
Intersegment revenues   1,695,779    182,589    74,709    (1,953,077)   - 
Segment profit before income taxes   816,485    2,020,317    1,606,714    -    4,443,516 
                          
Identifiable Assets   1,241,160,139    77,002,286    295,671,662    (99,284,078)   1,514,550,009 
Goodwill   2,765,570    2,488,213    -    -    5,253,783 
Total Assets   1,243,925,709    79,490,499    295,671,662    (99,284,078)   1,519,803,792 
                          
For the Three Months Ended                         
March 31, 2021                         
Revenues from external customers  $38,943,834   $6,999,265   $76,715,507   $-   $122,658,606 
Intersegment revenues   1,902,052    77,507    161,016    (2,140,575)   - 
Segment profit before income taxes   2,695,028    2,700,945    10,959,082    -    16,355,055 
                          
Identifiable Assets   1,174,305,180    57,269,639    337,524,300    (84,391,181)   1,484,707,938 
Goodwill   2,765,570    754,018    -    -    3,519,588 
Total Assets   1,177,070,750    58,023,657    337,524,300    (84,391,181)   1,488,227,526 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2022 (Unaudited)