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Value of Business Acquired, Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Value of Business Acquired, Goodwill and Other Intangible Assets

5) Value of Business Acquired, Goodwill and Other Intangible Assets

 

Information regarding value of business acquired was as follows:

 

   2023   2022 
   December 31, 
   2023   2022 
Balance at beginning of year  $9,803,736   $8,421,432 
Value of business acquired   -    2,136,085 
Imputed interest at 7% included in earnings   626,666(1)   642,919(1)
Amortization included in earnings   (1,926,668)(1)   (1,907,250)(1)
Shadow amortization included in other
comprehensive income		   (36,121)   510,550 
Net amortization   (1,336,123)   (753,781)
Balance at end of year  $8,467,613   $9,803,736 

 

 

(1)Included in Amortization of deferred policy and pre-need acquisition costs and value of business acquired on the consolidated statements of earnings

 

Presuming no additional acquisitions, net amortization charged to income is expected to approximate the following:

 

      
2024  $1,219,496 
2025   1,112,965 
2026   1,030,635 
2027   957,074 
2028   833,216 
Thereafter   3,314,227 
Total  $8,467,613 

 

Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2023, value of business acquired is being amortized over a weighted average life of 5.1 years.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

 

5) Value of Business Acquired, Goodwill and Other Intangible Assets (Continued)

 

Information regarding goodwill by segment was as follows:

 

   Life Insurance   Cemetery/
Mortuary		   Total 
Balance at January 1, 2022:               
Goodwill  $2,765,570   $2,488,213   $5,253,783 
Accumulated impairment   -    -    - 
Total goodwill, net   2,765,570    2,488,213    5,253,783 
                
Acquisition   -    -    - 
                
Balance at December 31, 2022:               
Goodwill   2,765,570    2,488,213    5,253,783 
Accumulated impairment   -    -    - 
Total goodwill, net   2,765,570    2,488,213    5,253,783 
               
Acquisition   -    -    - 
                
Balance at December 31, 2023:               
Goodwill   2,765,570    2,488,213    5,253,783 
Accumulated impairment   -    -    - 
Total goodwill, net  $2,765,570   $2,488,213   $5,253,783

 

Goodwill is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for 2023 and 2022.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022

 

5) Value of Business Acquired, Goodwill and Other Intangible Assets (Continued)

 

The carrying value of the Company’s other intangible assets were as follows which is included in other assets:

 

      December 31, 
   Useful Life  2023   2022 
Intangible asset - trade name (1)  15 years  $2,100,000   $2,100,000 
Intangible assets - other (1)  15 years   210,000    210,000 
Intangible asset - trade name (2)  15 years   610,000    610,000 
Intangible asset - customer lists (3)  15 years   890,000    890,000 
Less accumulated amortization      (807,333)   (553,333)
Balance at end of year     $3,002,667   $3,256,667 

 

 

(1)Rivera Funerals, Cremations and Memorial Gardens
(2)Kilpatrick Life
(3)Beta Capital Corp

 

Amortization expense for 2023 and 2022 was $254,000 and $256,000, respectively, and is included in other expenses on the consolidated statements of earnings.

 

The following table summarizes the Company’s estimate of future amortization for the other intangible assets:

 Schedule of Estimate of Future Amortization for Other Intangible Assets

      
2024  $254,000 
2025   254,000 
2026   254,000 
2027   254,000 
2028   254,000 
Thereafter   1,732,667 
Total  $3,002,667 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2023 and 2022