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Business Segment Information
 6 Months Ended
Jun. 30, 2024
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 policyholders 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 origination 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, 2023. 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, 2024 (Unaudited)

 

7) Business Segment Information (Continued)

 

   Life Insurance   Cemetery/
Mortuary		   Mortgage   Intercompany
Eliminations		   Consolidated 
For the Three Months Ended                         
June 30, 2024                         
Revenues from external customers  $47,237,315   $8,277,868   $30,276,153   $-   $85,791,336 
Intersegment revenues   1,905,973    84,767    144,989    (2,135,729)   - 
Segment profit (loss) before income taxes   7,164,715    2,090,520    134,358    -    9,389,593 
                          
For the Six Months Ended                         
June 30, 2024                         
Revenues from external customers  $97,207,950   $17,065,446   $52,706,138        $166,979,534 
Intersegment revenues   3,285,548    169,535    291,595    (3,746,678)   - 
Segment profit (loss) before income taxes   15,694,224    5,143,941    (1,829,261)        19,008,904 
                          
Identifiable Assets  $1,356,015,599   $102,122,157   $96,262,785   $(98,929,803)  $1,455,470,738 
Goodwill   2,765,570    2,488,213    -    -    5,253,783 
Total Assets  $1,358,781,169   $104,610,370   $96,262,785   $(98,929,803)  $1,460,724,521 
                          
For the Three Months Ended                         
June 30, 2023                         
Revenues from external customers  $48,071,089   $8,812,508   $26,962,562   $-   $83,846,159 
Intersegment revenues   2,517,490    84,767    135,807    (2,738,064)   - 
Segment profit (loss) before income taxes   9,158,186    2,828,159    (3,837,012)   -    8,149,333 
                          
For the Six Months Ended                         
June 30, 2023                         
Revenues from external customers  $93,486,386   $16,010,904   $53,849,603        $163,346,893 
Intersegment revenues   4,027,518    168,603    259,506    (4,455,627)   - 
Segment profit (loss) before income taxes   12,841,921    4,612,751    (7,720,451)        9,734,221 
                          
Identifiable Assets  $1,284,084,674   $89,589,716   $114,402,197   $(89,723,622)  $1,398,352,965 
Goodwill   2,765,570    2,488,213    -    -    5,253,783 
Total Assets  $1,286,850,244   $92,077,929   $114,402,197   $(89,723,622)  $1,403,606,748 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2024 (Unaudited)