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Business Segment Information
 6 Months Ended
Jun. 30, 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

June 30, 2022 (Unaudited)

 

7) Business Segment Information (Continued)

 

   Life Insurance   Cemetery/
Mortuary		   Mortgage  

Intercompany

Eliminations

   Consolidated 
For the Three Months Ended                         
June 30, 2022                         
Revenues from external customers  $41,166,269   $7,291,018   $47,109,367   $-   $95,566,654 
Intersegment revenues   2,075,987    85,151    77,826    (2,238,964)   - 
Segment profit (loss) before income taxes   3,931,784    1,485,938    (687,876)   -    4,729,846 
                          
For the Six Months Ended                         
June 30, 2022                         
Revenues from external customers  $82,668,078   $14,754,212   $100,570,271   $-   $197,992,561 
Intersegment revenues   3,771,766    267,740    152,535    (4,192,041)   - 
Segment profit before income taxes   4,748,269    3,506,255    918,838    -    9,173,362 
                          
Identifiable Assets   1,229,780,002    78,739,030    250,312,796    (91,917,796)   1,466,914,032 
Goodwill   2,765,570    2,488,213    -    -    5,253,783 
Total Assets   1,232,545,572    81,227,243    250,312,796    (91,917,796)   1,472,167,815 
                          
For the Three Months Ended                         
June 30, 2021                         
Revenues from external customers  $40,657,393   $6,807,922   $69,285,000   $-   $116,750,315 
Intersegment revenues   1,750,929    78,302    156,016    (1,985,247)   - 
Segment profit before income taxes   4,694,177    2,269,325    7,713,850    -    14,677,352 
                          
For the Six Months Ended                         
June 30, 2021                         
Revenues from external customers  $79,601,227   $13,807,187   $146,000,507   $-   $239,408,921 
Intersegment revenues   3,652,981    155,809    317,032    (4,125,822)   - 
Segment profit before income taxes   7,389,205    4,970,270    18,672,932    -    31,032,407 
                          
Identifiable Assets   1,193,893,855    59,621,349    317,945,282    (72,923,887)   1,498,536,599 
Goodwill   2,765,570    754,018    -    -    3,519,588 
Total Assets   1,196,659,425    60,375,367    317,945,282    (72,923,887)   1,502,056,187 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2022 (Unaudited)