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Business Segment Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Business Segment Information | 7) Business Segment Information Description of Products and Services by Segment The Company has three operating and reportable business segments: life insurance, cemetery and mortuary, and mortgage. The Company’s life insurance segment’s revenue consists of life insurance premiums, fees earned on factored life insurance policies and net investment income derived from investing policyholder and surplus funds. Its expenses include operating expenses to collect insurance premiums and insurance policy receivables, and administer claims, and commissions payable related to the sale of insurance products sold by the Company’s independent agency force. The Company’s cemetery and mortuary segment’s revenue consists of fees from the sale of at-need cemetery and mortuary merchandise, 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 surplus cash. Its expenses include operating expenses to maintain mortuary and cemetery operations and commissions related to the sale of insurance products sold by the Company’s agents. The Company’s mortgage segment’s revenue consists of residential mortgage origination fee income and mortgage interest income. Its expenses include normal operating expenses related to the origination and sale of residential mortgage loans, loan servicing and warehouse interest and fee expenses. Services and Cost Sharing Policies The accounting policies of the Company’s operating and reportable segments are the same as those described in Part II, Item 8, Note 1 - Significant Accounting Policies of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Intersegment revenues are recorded at cost plus an agreed upon intercompany profit and are eliminated upon consolidation. In addition to revenues, the reportable segments share in business services and costs including personnel expenses, rent, information technology, software, interest expense, and other similar operating costs. These shared services and costs are allocated between the segments using prevailing market rates and other agreed upon allocation methods. Factors Management Used to Identify the Company’s Operating and Reportable Segments The Company’s operating and 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. Chief Operating Decision Maker (“CODM”) The Company’s CODM is the Chief Executive Officer. The following table summarizes significant segment expenses. The significant expenses are based on the information that the CODM is regularly provided to assess segment performance. The CODM reviews the regularly provided information for each segment monthly and gives added emphasis on month over month and year over year comparative results. The CODM considers these comparative results when making decisions about the allocation of the Company’s resources to each segment. The measure of segment profit or loss for the Company’s three operating and reportable business segments is net earnings. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements March 31, 2025 (Unaudited) 7) Business Segment Information (Continued) Schedule of Revenues and Expenses by Reportable Segment
|  | Insurance |  |  | Mortuary |  |  | Mortgage |  |  | Total |
|  | For the Three Months Ended March 31, 2025 |
|  | Life |  |  | Cemetery/ |  |  |  |  |  |  |
|  | Insurance |  |  | Mortuary |  |  | Mortgage |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
From external sources: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 29,779,525 |  |  | $ | 7,300,221 |  |  | $ | 24,809,241 |  |  | $ | 61,888,987 |
Net investment income |  |  | 18,630,945 |  |  |  | 421,253 |  |  |  | 150,426 |  |  |  | 19,202,624 |
Gains on investments and other assets |  |  | 290,534 |  |  |  | 209,970 |  |  |  | 85,517 |  |  |  | 586,021 |
Other revenues |  |  | 585,598 |  |  |  | 187,850 |  |  |  | 288,643 |  |  |  | 1,062,091 |
Intersegment revenues |  |  | 1,319,923 |  |  |  | 83,836 |  |  |  | 121,868 |  |  |  | 1,525,627 |
Total segment revenues |  |  | 50,606,525 |  |  |  | 8,203,130 |  |  |  | 25,455,695 |  |  |  | 84,265,350 |
Elimination of intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,525,627 | )
Total consolidated revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 82,739,723 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Death benefits |  |  | 16,045,465 |  |  |  | - |  |  |  | - |  |  |  |  |
Surrenders and other policy benefits |  |  | 1,201,555 |  |  |  | - |  |  |  | - |  |  |  |  |
Increase in future policy benefits |  |  | 8,988,057 |  |  |  | - |  |  |  | - |  |  |  |  |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired |  |  | 4,522,570 |  |  |  | 173,965 |  |  |  | - |  |  |  |  |
Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions |  |  | 862,343 |  |  |  | 208,420 |  |  |  | 9,367,618 |  |  |  |  |
Personnel |  |  | 8,526,188 |  |  |  | 2,538,026 |  |  |  | 11,118,194 |  |  |  |  |
Advertising |  |  | 99,976 |  |  |  | 151,609 |  |  |  | 572,360 |  |  |  |  |
Rent and rent related |  |  | 99,790 |  |  |  | 38,038 |  |  |  | 850,783 |  |  |  |  |
Depreciation on property and equipment |  |  | 242,812 |  |  |  | 212,361 |  |  |  | 159,962 |  |  |  |  |
Cost related to funding mortgage loans |  |  | - |  |  |  | - |  |  |  | 1,415,252 |  |  |  |  |
Data processing and IT related (1) |  |  | 235,788 |  |  |  | 70,526 |  |  |  | 878,110 |  |  |  |  |
Premium taxes on insurance premiums and other considerations (1) |  |  | 718,071 |  |  |  | - |  |  |  | - |  |  |  |  |
Other segment items (1)(2) |  |  | 2,624,538 |  |  |  | 1,231,210 |  |  |  | 1,642,444 |  |  |  |  |
Intersegment expenses (3) |  |  | 205,558 |  |  |  | 87,441 |  |  |  | 1,232,628 |  |  |  |  |
Interest expense |  |  | 906,447 |  |  |  | 163 |  |  |  | 212,918 |  |  |  |  |
Costs of goods and services sold-mortuaries and cemeteries |  |  | - |  |  |  | 1,253,270 |  |  |  | - |  |  |  |  |
Income tax expense (benefit) |  |  | 1,181,211 |  |  |  | 534,844 |  |  |  | (483,453 | ) |  |  |  |
Segment net earnings (loss) |  |  | 4,146,156 |  |  |  | 1,703,257 |  |  |  | (1,511,121 | ) |  |  | 4,338,292 |
Net earnings |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,338,292 |
Segment assets |  | $ | 1,406,921,748 |  |  | $ | 108,399,058 |  |  | $ | 100,755,930 |  |  | $ | 1,616,076,736 |
Elimination of intersegment assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (91,826,406 | )
Total consolidated assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,524,250,330 |
Expenditures for long-lived assets |  | $ | 16,717,670 |  |  | $ | 257,933 |  |  | $ | 109,134 |  |  | $ | 17,084,737 |
(1) | Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees.
(2) | For each reportable segment, other segment items includes:
Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses.
(3) | For each reportable segment, intersegment expenses includes:
Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements March 31, 2025 (Unaudited) 7) Business Segment Information (Continued)
|  | Insurance |  |  | Mortuary |  |  | Mortgage |  |  | Total |
|  | For the Three Months Ended March 31, 2024 |
|  | Life |  |  | Cemetery/ |  |  |  |  |  |  |
|  | Insurance |  |  | Mortuary |  |  | Mortgage |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
From external sources: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 29,852,093 |  |  | $ | 6,948,491 |  |  | $ | 21,831,670 |  |  | $ | 58,632,254 |
Net investment income |  |  | 18,612,363 |  |  |  | 1,084,192 |  |  |  | 250,013 |  |  |  | 19,946,568 |
Gains (losses) on investments and other assets |  |  | 1,088,493 |  |  |  | 582,162 |  |  |  | (1,229 | ) |  |  | 1,669,426 |
Other revenues |  |  | 417,686 |  |  |  | 172,733 |  |  |  | 349,531 |  |  |  | 939,950 |
Intersegment revenues |  |  | 1,379,575 |  |  |  | 84,768 |  |  |  | 146,606 |  |  |  | 1,610,949 |
Total segment revenues |  |  | 51,350,210 |  |  |  | 8,872,346 |  |  |  | 22,576,591 |  |  |  | 82,799,147 |
Elimination of intersegment revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,610,949 | )
Total consolidated revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 81,188,198 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Death benefits |  |  | 15,713,753 |  |  |  | - |  |  |  | - |  |  |  |  |
Surrenders and other policy benefits |  |  | 1,215,793 |  |  |  | - |  |  |  | - |  |  |  |  |
Increase in future policy benefits |  |  | 9,345,887 |  |  |  | - |  |  |  | - |  |  |  |  |
Amortization of deferred policy and pre-need acquisition costs and value of business acquired |  |  | 4,509,432 |  |  |  | 234,481 |  |  |  | - |  |  |  |  |
Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions |  |  | 406,498 |  |  |  | 231,785 |  |  |  | 7,342,934 |  |  |  |  |
Personnel |  |  | 7,231,308 |  |  |  | 2,309,726 |  |  |  | 10,314,101 |  |  |  |  |
Advertising |  |  | 107,496 |  |  |  | 127,677 |  |  |  | 452,482 |  |  |  |  |
Rent and rent related |  |  | 106,560 |  |  |  | 40,281 |  |  |  | 1,254,636 |  |  |  |  |
Depreciation on property and equipment |  |  | 224,077 |  |  |  | 206,605 |  |  |  | 156,767 |  |  |  |  |
Cost related to funding mortgage loans |  |  | - |  |  |  | - |  |  |  | 1,449,095 |  |  |  |  |
Data processing and IT related (1) |  |  | 206,299 |  |  |  | 66,800 |  |  |  | 952,222 |  |  |  |  |
Premium taxes on insurance premiums and other considerations (1) |  |  | 760,959 |  |  |  | - |  |  |  | - |  |  |  |  |
Other segment items (1)(2) |  |  | 1,830,106 |  |  |  | 1,233,177 |  |  |  | 1,236,347 |  |  |  |  |
Intersegment expenses (3) |  |  | 231,374 |  |  |  | 94,024 |  |  |  | 1,285,551 |  |  |  |  |
Interest expense |  |  | 931,159 |  |  |  | 240 |  |  |  | 96,075 |  |  |  |  |
Costs of goods and services sold-mortuaries and cemeteries |  |  | - |  |  |  | 1,274,129 |  |  |  | - |  |  |  |  |
Income tax expense (benefit) |  |  | 1,817,069 |  |  |  | 786,854 |  |  |  | (459,134 | ) |  |  |  |
Segment net earnings (loss) |  |  | 6,712,440 |  |  |  | 2,266,567 |  |  |  | (1,504,485 | ) |  |  | 7,474,522 |
Net earnings |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,474,522 |
Segment assets |  | $ | 1,341,500,414 |  |  | $ | 99,346,510 |  |  | $ | 94,563,032 |  |  | $ | 1,535,409,956 |
Elimination of intersegment assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (94,161,443 | )
Total consolidated assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,441,248,513 |
Expenditures for long-lived assets |  | $ | 17,835,137 |  |  | $ | 140,367 |  |  | $ | 21,406 |  |  | $ | 17,996,910 |
(1) | Included in other expenses on the condensed consolidated statements of earnings. Data processing and IT related expenses includes various software subscriptions, maintenance, consulting, support and storage fees.
(2) | For each reportable segment, other segment items includes:
Life Insurance - bad debt, insurance expenses, professional service expenses, state insurance department fees, amortization of intangible assets, and certain overhead expenses. Cemetery/Mortuary - bad debt, insurance expenses, professional service expenses, maintenance and utility expenses, property taxes, amortization of intangible assets, and certain overhead expenses. Mortgage - bad debt, insurance expenses, professional service expenses, business license and registration fees, dues and subscriptions, amortization expense of mortgage servicing rights, and certain overhead expenses.
(3) | For each reportable segment, intersegment expenses includes:
Life Insurance - mortgage servicing fees and interest expense. Cemetery/Mortuary - rent expense, data processing and IT related expenses, and interest expense. Mortgage - rent expense and interest expense. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements March 31, 2025 (Unaudited)

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