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Value of Business Acquired, Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
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 the value of business acquired was as follows:

 

   2024   2023 
   December 31, 
   2024   2023 
Balance at beginning of year  $8,467,613   $9,803,736 
Value of business acquired   -    - 
Imputed interest at 7% included in earnings   558,569(1)   626,666(1)
Amortization included in earnings   (1,466,527)(1)   (1,926,668)(1)
Shadow amortization included in other
comprehensive income		   (68,055)   (36,121)
Net amortization   (976,013)   (1,336,123)
Balance at end of year  $7,491,600   $8,467,613 

 

 

(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:

 

      
2025  $867,499 
2026   827,016 
2027   774,850 
2028   713,969 
2029   647,332 
Thereafter   3,660,934 
Total  $7,491,600 

 

Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2024, value of business acquired is being amortized over a weighted average life of 6.1 years.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023

 

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, 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 
                
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 
                
Acquisition   -    -    - 
                
Balance at December 31, 2024:               
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 2024 and 2023.

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023

 

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 are included in other assets on the consolidated balance sheets:

 

      December 31, 
   Useful Life  2024   2023 
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 (2)  15 years   2,290,000    890,000 
Less accumulated amortization      (1,131,333)   (807,333)
Balance at end of year     $4,078,667   $3,002,667 

 

 

(1)Cemetery/Mortuary Segment
(2)Life Insurance Segment

 

Amortization expense for 2024 and 2023 was $324,000 and $254,000, respectively, and is amortized over the estimated useful life using the straight-line method. Amortization expense 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:

 

      
2025  $347,333 
2026   347,333 
2027   347,333 
2028   347,333 
2029   347,333 
Thereafter   2,342,002 
Total  $4,078,667 

 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2024 and 2023